N-CSR
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21333
Nuveen Multi-Strategy Income and Growth Fund 2
 
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
 
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
 
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 917-7700
Date of fiscal year end: December 31
Date of reporting period: December 31, 2008
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR 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 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. ss. 3507.
 
 

 


 

 
ITEM 1. REPORTS TO SHAREHOLDERS
 
 
       
Annual Report
December 31, 2008
    Nuveen Investments
Closed-End Funds
 
     
COVER PHOTO  



NUVEEN
MULTI-STRATEGY
INCOME AND GROWTH FUND
JPC

NUVEEN
MULTI-STRATEGY
INCOME AND
GROWTH FUND 2
JQC
 
Attractive Distributions from a Portfolio of
Preferred and Convertible Securities,
Domestic and Foreign Equities, and Debt Instruments
 
     
     
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Chairman’s
LETTER TO SHAREHOLDERS
 

             
(ROBERT P. BREMNER PHOTO)     ï Robert P. Bremner            ï            Chairman of the Board
Dear Shareholders,
 
I write this letter in a time of continued uncertainty about the current state of the U.S. financial system and pessimism about the future of the global economy. Many have observed that the conditions that led to the crisis have built up over time and will complicate and extend the course of recovery. At the same time, government officials in the U.S. and abroad have implemented a wide range of programs to restore stability to the financial system and encourage economic recovery. History teaches us that these efforts will moderate the extent of the downturn and hasten the inevitable recovery, even though it is hard to envision that outcome in the current environment.
 
As you will read in this report, the continuing financial and economic problems are weighing heavily on the values of equities real estate and fixed-income assets and unfortunately the performance of your Nuveen Fund has been similarly affected. In addition to the financial statements, I hope that you will carefully review the Portfolio Manager’s Comments, the Common Share Distribution and Share Price Information and the Performance Overview sections of this report. These comments highlight each manager’s pursuit of investment strategies that depend on thoroughly researched securities, diversified portfolio holdings and well established investment disciplines to achieve your Fund’s investment goals. The Fund Board believes that a consistent focus on long-term investment goals provides the basis for successful investment over time and we monitor your Fund with that objective in mind.
 
Nuveen continues to work on resolving the auction rate preferred shares situation, but the unsettled conditions in the credit markets have slowed progress. Nuveen is actively pursuing a number of solutions, all with the goal of providing liquidity for preferred shareholders while preserving the potential benefits of leverage for common shareholders. We appreciate the patience you have shown as we have worked through the many issues involved. Please consult the Nuveen website: www.nuveen.com, for the most recent information.
 
On behalf of myself and the other members of your Fund’s Board, we look forward to continuing to earn your trust in the months and years ahead.
 
Sincerely,
 
(ROBERT P. BREMNER SIG)
Robert P. Bremner
Chairman of the Board
February 23, 2009


 

 
 Portfolio Managers’ COMMENTS
 

 
       
Nuveen Investments Closed-End Funds
    JPC, JQC
 
These Funds are advised by Nuveen Asset Management (NAM), which determines and oversees the Funds’ asset allocations. NAM uses a team of sub-advisers with specialties in different asset classes to manage the Funds’ portfolios. These sub-advisers include Spectrum Asset Management, Inc., Symphony Asset Management, LLC, and Tradewinds Global Investors, LLC. Symphony and Tradewinds are affiliates of Nuveen Investments.
 
Spectrum, an affiliate of Principal Capitalsm, manages preferred securities positions within the income-oriented portion of each Fund’s portfolio. Mark Lieb, Bernie Sussman and Phil Jacoby, who have more than 75 years of combined experience in the preferred securities and other debt markets, lead the team at Spectrum.
 
Symphony had primary responsibility for the Funds investments in convertible, high yield and senior loan securities, and for domestic and international equity investments. The team at Symphony managing the convertible, high yield and senior loan portions of each portfolio is led by Gunther Stein and Lenny Mason, who have more than 25 years of combined investment management experience. The Symphony team responsible for managing domestic equity investments is led by Praveen Gottipalli and David Wang, while the group overseeing the Funds’ international equity exposure is led by Eric Olson. On a combined basis, these three equity portfolio managers have more than 25 years of investment management experience.
 
Tradewinds manages the portion of the Funds’ assets invested in global equities. The Tradewinds team is led by Dave Iben, who has more than 25 years of investment management experience.
 
Here representatives from Spectrum, Symphony and Tradewinds talk about their management strategies and the performance of both Funds for the twelve-month period ended December 31, 2008.
 
WHAT WERE THE GENERAL ECONOMIC CONDITIONS AND MARKET TRENDS DURING THE TWELVE-MONTH PERIOD?
 
The period was dominated by fears of an economic recession, triggered or exacerbated by several significant developments. The cascading effects of sub-prime mortgage defaults, constrained liquidity in the capital markets and limited lending by many financial institutions caused many investors to seek refuge in U.S. Treasury securities. These events forced some financial firms to merge, restructure or go out of business. At the same time, the U.S. government

 
Certain statements in this report are forward-looking statements. Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking statements and other views expressed herein are those of the portfolio managers as of the date of this report. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements and the views expressed herein are subject to change at any time, due to numerous market and other factors. The Funds disclaim any obligation to update publicly or revise any forward-looking statements or views expressed herein.

         
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essentially took over Fannie Mae and Freddie Mac, and also intervened on behalf of the giant insurer AIG. By the end of 2008, the U.S. Treasury had disbursed approximately $350 billion of capital to financial institutions and others under the Troubled Assets Relief Program, with indications that a like amount would be distributed in 2009.
 
Another indicator of economic weakness was the U.S. unemployment rate, which soared to 7.2% as of December 31, 2008, compared with 4.9% one year earlier. Practically all segments of the economy showed signs of slowing by the end of the period. During the third quarter of 2008, gross domestic product contracted to an annual rate of 0.5%, the biggest decrease since 2001. Preliminary reports for the fourth quarter showed a contraction of 3.8%, the worst showing in more than 25 years. This was mainly the result of the first decline in consumer spending since 1991 and an 18% drop in residential investment. Fortunately, inflation was not a significant factor as the Consumer Price Index rose just 0.1% in 2008. The Federal Reserve cut the widely followed short-term fed funds rate seven times during 2008, lowering the rate from 4.25% to 0-0.25% as of year end.
 
During the first three quarters of 2008, equity markets across the globe were highly volatile, while liquidity in the credit markets was severely contracted. In the U.S., the dollar slid to an all time low against most major currencies and housing and retail sales continued to decline. These events led to fiscal and monetary policy actions intended to avert a recession. The administration and Congress promptly passed a tax rebate package and the Federal Reserve took aggressive steps to stabilize the housing and credit markets. In further efforts to increase liquidity, the Fed, in collaboration with other central banks, injected $200 billion into a lending program for cash-strapped financial institutions. While each time the government acted the markets reacted favorably, the exuberance was short-lived.
 
Equity markets ended 2008 with the worst annual performance in several decades. Markets across the globe, from the most developed nations like the U.S. and U.K. to developing nations like India and China, witnessed unprecedented sell-offs resulting in equity returns last seen during The Great Depression. As the ability of corporations to access attractive financing evaporated, global economic activity, and in particular the economies of the U.S., Japan and Europe, entered their first simultaneous recessions since World War II. As economies weakened, commodities came under immense pressure. In particular, crude oil, after hitting an all time high of $147 in the middle of the year fell roughly 70 percent and ended the year at levels last seen in 2004. The only exceptions were gold and a few agricultural products such as sugar and cocoa. Volatility, as measured in the U.S. by the Chicago Board Options Exchange Volatility Index, broke several records during the year and hit an all time high of 80.86 in November. In the closing weeks of the year, global equity markets rallied from very low bases.
 
JPC and JQC invest across asset classes, but at all times has long exposure to corporate loans, many of which are rated below investment grade. Throughout late 2007 these assets were under a significant amount of price pressure. Initially, this was catalyzed by the sub-prime mortgage contagion which virtually shut down much of the credit market. This left the market fragile coming into 2008, with the average price leveraged loans at roughly 94% of par. Credit spreads drifted wider throughout the next several months, with most of the price pressure prior to the Lehman

         
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Brothers collapse in mid-September attributable to the oversupply of debt relative to a growing risk aversion, rather than to defaults or fundamental deterioration. Following the bankruptcy filing of Lehman and the subsequent near-collapse of the financial system, the market saw fundamental deterioration and volatility begin to accelerate. The S&P 500 Index declined 16.8% in October, the largest post-war decline ever except for the October 1987 crash, with eight days in which the Dow Jones Industrial Average saw price moves greater than 400 points; high-yield bonds fell by 17%, double the largest move ever seen to the downside; and leveraged loans fell by 16.5%, doubling that market’s worst-ever return, which was the month before. Meanwhile, convertible bonds (which are sensitive to both equity valuations and credit spreads) got hit from both sides as the Merrill Lynch Convertible Bond Index fell 19% in fourth quarter.
 
The systematic deleveraging which followed the Lehman Brothers bankruptcy was primarily responsible for most of the weak pricing in the senior loan market during the fourth quarter of 2008. Although the fundamental backdrop was clearly weakening, forced selling of assets as a result of margin calls and mutual fund redemptions combined with deteriorating fundamentals to put continued stress on the market.
 
The financial services sector volatility caused by the sub-prime mortgage crisis and the subsequent liquidity crisis and credit concerns also severely impacted the preferred securities market over this period. Over 70% of preferred securities come from issuers in the financial services sector, and many of these issues experienced rapid and unprecedented price declines, especially in the second half of the year.
 
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING THIS REPORTING PERIOD?
 
The Funds seek to maintain a strategic exposure target of approximately 70% income-oriented debt securities (preferred securities and fixed- and floating-rate debt including high yield debt and senior loans), and 30% equities and equity-like securities (convertibles and domestic and international equities). The exact portfolio composition of each Fund will vary over time as a result of market changes as well as Nuveen’s view of the portfolio composition that might best enable the Funds to achieve their investment objectives consistent with a strategic 70%/30% income/equity mix.
 
In response to general illiquidity in the credit markets, we employed several risk management techniques in an effort to protect Fund shareholders from extreme market moves and the impact of leveraging within each Fund. For example, we invested in highly liquid securities such as U.S. Treasuries when the capital risk of being invested 100% in preferred securities became temporarily unwise.
 
For the Funds’ convertible bond, high yield and senior loan investments, we continued to focus on fundamental asset selection in positioning our credit portfolios for the longer-term. On this fundamental basis, we saw relative value in senior secured bank loans as one of the more attractive areas of the corporate credit market. In many cases, the market saw senior bank loans trading at a higher implied yield than subordinated debt of a single issuer. We believe these types of relative value situations can create attractive investment opportunities longer-term.

         
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Throughout the last year, we preferred to own the debt of larger businesses that are less-cyclical in nature, particularly those that are able to generate cash flow through market troughs. These include hospital operators and utility and cable companies, as well as others that are not directly dependent on consumer discretionary spending. Given the destruction of wealth both through the housing and stock market collapse, we believe that the U.S. consumer will continue to feel the impact of the weak economy and spend accordingly. To manage the core domestic equity portion of both Funds, we used both quantitative and qualitative methods to evaluate securities. The quantitative screening process served as the starting point for the decision-making process. The qualitative process then provided a systematic way of researching companies form a broad perspective, ensuring the stocks selected for the portfolio were attractive in all important respects.
 
The global equity portion of the Funds continued to focus on buying good or improving business franchises around the globe whose securities were selling below their intrinsic value. In 2008, we found that the best value opportunities were in the securities of those businesses that were the most associated with the growth of the global economy. We continue to like the materials, food, agriculture and energy sectors, which all benefit from increased global demand. Conversely, we were rewarded for not holding financial and retail stocks in the developed markets, especially during the second half of the year, as these sectors experienced sizable corrections.
 
HOW DID THE FUNDS PERFORM OVER THIS TWELVE-MONTH PERIOD?
 
The performance of JPC and JQC, as well as a comparative benchmark, is presented in the accompanying table.
 
Past performance does not guarantee future results. Current performance may be higher or lower than the data shown.
 
Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report.
 
Average Annual Total Returns on Common Share Net Asset Value
For the twelve-month period ended 12/31/08
 
                 
    1-Year   5-Year
 
JPC     -49.27%       -10.34%  
JQC     -45.84%       -9.02%  
Comparative Benchmark1     -28.15%       -1.89%  
 
 
 
 
 
 
 
 
 
1 Comparative benchmark performance is a blended return consisting of: 1) 33% of the Merrill Lynch Preferred Stock Hybrid Securities Index, an unmanaged index of investment-grade, exchange traded preferred issues with outstanding market values of at least $30 million and at least one year to maturity; 2) 27% of the Lehman Tier 1 Capital Securities Index, an unmanaged index that includes securities that can generally be viewed as hybrid fixed-income securities that either receive regulatory capital treatment or a degree of “equity credit” from a rating agency; 3) 30% of the Merrill Lynch All U.S. Convertibles Index consisting of
 
For the twelve-month period ended December 31, 2008, JPC and JQC underperformed their comparative benchmark. As noted earlier, most of the types of securities in which the Funds invest performed poorly in 2008. This unfavorable environment is reflected in the returns of the Funds and the comparative benchmark shown above. Additionally, the major factor in the significant relative underperformance of these Funds, compared to that of the unleveraged benchmark, was the Funds’ use of financial leverage (see below).
 
Also negatively impacting performance was the high concentration of preferred securities managed by Spectrum in the financial service sector, which generally performed poorly. We also owned small positions in Fannie Mae and Freddie Mac when these entities went into federal conservatorship. We were able to reduce our Washington Mutual position, but did continue to own securities of that institution when it went into receivership. We also owned a small position of Lehman Brothers securities when that firm went into bankruptcy.

 

 

         
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approximately 575 securities with par value greater than $50 million that were issued by U.S. companies or non-U.S. based issuers that have a significant business presence in the U.S.; and 4) 10% of the CSFB High Yield Index, which includes approximately $375 billion of $U.S.-denominated high yield debt with a minimum of $75 million in par value and at least one rating below investment-grade. Index returns do not include the effects of any management fees or fund expenses. It is not possible to invest directly in an index.
 
On the positive side, Spectrum avoided Bear Stearns completely and were able to reduce positions in Capital One, Pulte Homes, National City Bank, Lehman Brothers, Royal Bank of Scotland, Merrill Lynch, and Morgan Stanley, thereby avoiding some of the losses experienced by the securities issued by each of these firms.
 
The Funds’ exposure to core domestic equities managed by Symphony detracted from total returns due to the broad-based decline in the equity markets. However, the relative impact of these holdings was mitigated to a degree by the comparatively strong returns of our holdings in the financial, consumer services and commercial services sectors. One of the strongest individual contributors was Apollo Group, a diversified consumer services provider. Underperforming sectors included basic materials, energy and industrials, with computer maker Apple, Inc. proving to be one of the weakest relative performers.
 
The Funds’ international equity exposure managed by Symphony also detracted from the overall Fund returns as the international market declined in concert with the turmoil in the U.S. markets. Relative to the MSCI EAFE benchmark, the Funds’ international equities managed by Symphony underperformed due in part to exposure to non-EAFE countries such as Canada and Mexico, and exposure to more volatile equities. Our positions in defensive equities such as NTT DOCOMO, Nippon Telegraph & Telephone and Shinogi & Co Ltd contributed the most relative positive performance. Our worst contributions were from DNB NOR ASA, AMEC Plc, and Deutsche Boerse AG.
 
The global equities held by the Funds and managed by Tradewinds also were negatively impacted by the turmoil in the U.S. and worldwide markets. Nevertheless, our holdings in the materials sector were the largest contributors to positive relative performance. In particular, our overweight exposure to the materials sector, and more specifically, the gold industry, relative to the MSCI All Country World Index, enhanced the Funds’ returns. Generally, gold companies were aided by strengthening gold prices and a slowly returning level of normalcy to equity markets by the end of the year.
 
Amgen, Inc. also contributed positively to relative returns in the period. The biotechnology company performed well after it announced earnings that beat Wall Street’s expectations and disclosed positive results from an osteoporosis clinical trial in July.
 
Despite the relatively good performance of the Funds’ materials sector, Apex Silver Mines Limited was one of the worst detractors from the Funds’ performance. Apex is a base metal mining company engaged in the exploration and development of silver and other mineral properties in Latin America. The company’s underperformance in 2008 was due to several factors: a decline in zinc prices as a result of increased global supply, the company’s production ramp-up was slower than expected due to water salinity problems, and the threat of nationalization after the Bolivian Government’s move to nationalize the nation’s oil and gas reserves exacerbated the company’s woes. In November, Sumitomo Corporation announced a letter of intent to fully acquire the company’s interest in its San Cristobal mine, the world’s largest development in silver and zinc. On January 13th, 2009, after the close of this reporting period, Apex Silver filed for Chapter 11 bankruptcy.

 

         
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The consumer staples sector was Tradewinds’ worst performing sector during the period, primarily due to protein providers Smithfield Foods, Inc. and Tyson Foods. Share prices dropped in the latter half of the year because of strained credit markets and investor concerns regarding potential breaches of the companies’ debt covenants. As product pricing, credit concerns, and supply-demand dynamics appeared to be on an improving trend line, share price declines started to stabilize or reverse their course by the end of 2008. We continue to believe these commodity food companies are strong long-term business franchises and the Funds continued to hold their positions in the companies at year end.
 
After the price of oil retreated from its mid-year high point, the energy sector incurred one of its worst periods on record in the fourth quarter of the year. Leading worldwide pressure pumping and oilfield services provider BJ Services and multinational energy company Royal Dutch Shell were holdings that significantly detracted from absolute performance. In our opinion, long-term supply side fundamentals for oil are as compelling as ever—even as the market has shifted its near-term focus to slowing global demand.
 
For the senior loan sleeve managed by Symphony, we were able to select some positions which had short-term catalysts that had the potential to generate price appreciation in spite of the market’s general direction. These not only included positive earnings announcements, but also debt repayments and acquisitions.
 
More generally, we were able to focus on companies with defensive business positions in less-cyclical industries. On a relative basis, these names tended to outperform the broader markets as fundamental deterioration in the economy began to run its course.
 
Deleveraging in the financial markets created forced selling across asset classes and was painful for investors forced to sell assets or mark them to the market. In many cases this deleveraging was funded through the sale of assets which had relative liquidity, putting significant price pressure on many of the Funds’ larger, more liquid credit positions. Although the current economic environment is clearly challenging, in many cases the relative oversupply and simultaneous sale of this debt have created what we believe are attractive levels to own these assets for the longer-term. In the short-run, however, senior loans, which are mostly non-investment grade and which have floating-rate coupons that are based off short-term interest rates, have struggled. As the market deteriorated, many investors sold senior loans in order to raise cash to fund redemptions or to reduce leverage. The resulting price pressure constrained the overall performance of the Funds. Although we continue to have conviction within this area of the market, this exposure did not benefit returns in the short-run.
 
The Funds also continue to have exposure to high-yield bonds, which outperformed both senior loans and convertible bonds on a relative basis. We believe that much of this outperformance was technical in nature, and we continue to be more constructive overall on senior loans with their traditional high-yield capital structures relative to high-yield bonds.

         
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IMPACT OF THE FUNDS’ CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
 
In this generally unfavorable investment environment, the most significant factor impacting the returns of these Funds relative to those of their comparative benchmark was the Funds’ use of financial leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total returns for common shareholders. However, the use of leverage also can expose common shareholders to additional risk—especially when market conditions are as unfavorable as they were during this period. As the prices of most securities held by the Funds declined during the year, the negative impact of these valuation changes on common share net asset value and common shareholder total return was magnified by the use of leverage.
 
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
 
As noted in the last shareholder report, beginning in February 2008, more shares were submitted for sale in the regularly scheduled auctions for the auction rate preferred shares issued by these Funds than there were offers to buy. This meant that these auctions “failed to clear,” and that many or all of the Funds’ auction rate preferred shareholders who wanted to sell their shares in these auctions were unable to do so. This decline in liquidity in auction rate preferred shares did not lower the credit quality of these shares, and auction rate preferred shareholders unable to sell their shares received distributions at the “maximum rate” applicable to failed auctions, as calculated in accordance with the pre-established terms of the auction rate preferred shares.
 
These developments generally have not affected the portfolio management or investment policies of these Funds. However, one continuing implication for common shareholders of these auction failures is that the Funds’ cost of leverage will likely be higher, at least temporarily, than it otherwise would have been had the auctions continued to be successful. As a result, the Funds’ future common share earnings may be lower than they otherwise might have been.
 
As noted in the last shareholder report, the Funds’ Board of Trustees has authorized a program to redeem portions of the Funds’ auction rate preferred and replace the FundPreferred shares in each Fund’s capital structure with bank borrowings.
 
As of December 31, 2008, JPC and JQC had redeemed and/or noticed for redemption $589,350,000 and $799,200,000 FundPreferred shares, respectively, (83.2% and 82.8%, respectively, of their original outstanding FundPreferred shares of $708,000,000 and $965,000,000, respectively), and had $118,650,000 and $165,800,000, respectively, of FundPreferred shares still outstanding. While the Funds’ Board and management continue to work to resolve this situation, the Fund cannot provide any assurance on when the remaining outstanding auction rate preferred shares might be redeemed.
 
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.

         
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Common Share
Distribution and Share Price
INFORMATION
 

 
The information below regarding your Fund’s distributions is current as of December 31, 2008, and likely will vary over time based on the Fund’s investment activities and portfolio investment value changes.
 
Each Fund reduced its quarterly distribution to common shareholders twice over the course of 2008. Some of the important factors affecting the amount and composition of these distributions are summarized below.
 
The Funds employ financial leverage through the issuance of FundPreferred shares, as well as through bank borrowings. Financial leverage provides the potential for higher earnings (net investment income), total returns and distributions over time, but – as noted earlier – also increases the variability of common shareholders’ net asset value per share in response to changing market conditions. Over the reporting period, the impact of financial leverage on the Fund’s net asset value per share contributed positively to the income return and detracted from the price return. The overall impact of financial leverage detracted from the Fund’s total return.
 
Each Fund has a managed distribution program. The goal of this program is to provide common shareholders with relatively consistent and predictable cash flow by systematically converting the Fund’s expected long-term return potential into regular distributions. As a result, regular common share distributions throughout the year are likely to include a portion of expected long-term gains (both realized and unrealized), along with net investment income.
 
Important points to understand about the managed distribution program are:
 
•  Each Fund seeks to establish a relatively stable common share distribution rate that roughly corresponds to the projected total return from its investment strategy over an extended period of time. However, you should not draw any conclusions about a Fund’s past or future investment performance from its current distribution rate.
 
•  Actual common share returns will differ from projected long-term returns (and therefore a Fund’s distribution rate), at least over shorter time periods. Over a specific timeframe, the difference between actual returns and total distributions will be reflected in an increasing (returns exceed distributions) or a decreasing (distributions exceed returns) Fund net asset value.
 
•  Each distribution is expected to be paid from some or all of the following sources:
 
  •  net investment income (regular interest and dividends),
 
  •  realized capital gains, and
 
  •  unrealized gains, or, in certain cases, a return of principal (non-taxable distributions).
 
•  A non-taxable distribution is a payment of a portion of a Fund’s capital. When a Fund’s returns exceed distributions, it may represent portfolio gains generated, but not realized as a taxable capital gain. In periods when a Fund’s return falls short of distributions, the shortfall will represent

         
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a portion of your original principal, unless the shortfall is offset during other time periods over the life of your investment (previous or subsequent) when a Fund’s total return exceeds distributions.
 
•  Because distribution source estimates are updated during the year based on a Fund’s performance and forecast for its current fiscal year (which is the calendar year for each Fund), estimates on the nature of your distributions provided at the time distributions are paid may differ from both the tax information reported to you in your Fund’s IRS Form 1099 statement provided at year end, as well as the ultimate economic sources of distributions over the life of your investment.
 
The following table provides information regarding each Fund’s common share distributions and total return performance for the fiscal year ended December 31, 2008. This information is intended to help you better understand whether the Fund’s returns for the specified time period were sufficient to meet each Fund’s distributions.
 
                 
 As of 12/31/08 (Common Shares)   JPC     JQC  
                 
                 
Inception date
    3/26/03       6/25/03  
Calendar year ended December 31, 2008:
               
Per share distribution:
               
From net investment income
    $0.69       $0.72  
From short-term capital gains
    0.00       0.00  
From long-term capital gains
    0.00       0.00  
From return of capital
    0.31       0.28  
                 
Total per share distribution
    $1.00       $1.00  
                 
                 
Distribution rate on NAV
    17.86%       16.56%  
                 
Annualized total returns:
               
1-Year on NAV
    -49.27%       -45.84%  
5-Year on NAV
    -10.34%       -9.02%  
Since inception on NAV
    -7.06%       -6.97%  
                 
 
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
 
On November 21, 2007, the Funds’ Board of Trustees approved an open market share repurchase program, under which each Fund may repurchase up to 10% of its outstanding common shares. As of December 31, 2008, JPC and JQC had repurchased 311,100 and 764,500 common shares, respectively, representing approximately 0.3% and 0.5%, respectively, of each Fund’s total common shares outstanding. During the twelve-month reporting period, JQC repurchased 38,900 common shares at a weighted average price and a weighted average discount per common share of $10.95 and 12.44%, respectively.
 
As of December 31, 2008, the Funds’ share prices were trading relative to their common share NAVs as shown in the accompanying table:
 
         
    12/31/08
  12-Month
    Discount   Average Discount
         
         
JPC
  -17.86%   -15.41%
JQC
  -19.37%   -16.64%
         

         
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Fund Snapshot    
Common Share Price   $4.60
     
Common Share Net Asset Value   $5.60
     
Premium/(Discount) to NAV   -17.86%
     
Current Distribution Rate1   16.35%
     
Net Assets Applicable to Common Shares ($000)   $556,698
     
 
               
Average Annual
Total Return
(Inception 3/26/03)
    On Share
   
    Price   On NAV
1-Year
    -51.80 %     -49.27%
               
5-Year
    -13.35 %     -10.34%
               
Since Inception
    -10.11 %     -7.06%
               
 
     
Industries
   
(as a % of total investments)2    
Commercial Banks   16.4%
     
Insurance   12.3%
     
Real Estate   9.8%
     
Media   6.1%
     
Oil, Gas & Consumable Fuels   4.4%
     
Capital Markets   3.6%
     
Metals & Mining   3.5%
     
Health Care Providers & Services   2.7%
     
Electric Utilities   2.6%
     
Diversified Financial Services   2.5%
     
Diversified Telecommunication Services   2.4%
     
Hotels, Restaurants & Leisure   2.3%
     
Food Products   2.1%
     
Pharmaceuticals   1.8%
     
Specialty Retail   1.6%
     
Investment Companies   1.4%
     
Energy Equipment & Services   1.3%
     
Commercial Services & Supplies   1.2%
     
Health Care Equipment & Supplies   1.2%
     
Short-Term Investments   2.0%
     
Other   18.8%
     
 
     
Top Five Issuers
(as a % of total investments)3
Wachovia Corporation   2.3%
     
Delphi Financial Group, Inc.   2.2%
     
PartnerRe Limited   1.8%
     
ING Groep N.V.   1.7%
     
Deutche Bank AG   1.7%
     
       
JPC
Performance
OVERVIEW
    Nuveen Multi-Strategy
Income and
Growth Fund
               as of December 31, 2008
 
Portfolio Allocation (as a % of total investments)2
 
(PORTFOLIO ALLOCATION PIE CHART)
 
2007-2008 Distributions Per Common Share
 
(MONTHLY DISTRIBUTIONS BAR CHART)
 
Common Share Price Performance — Weekly Closing Price
 
(SHARE PRICE CHART)
 
Current Distribution Rate is based on the Fund’s current annualized quarterly distribution divided by the Fund’s current market price. The Fund’s quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund’s cumulative net ordinary income and net realized gains are less than the amount of the Fund’s distributions, a return of capital for tax purposes.
 
Excluding common stocks sold short and, call options written and investments in derivatives.
 
Excluding short-term investments, common stocks sold short, call options written and investments in derivatives.
 

 

         
    13    
         


 

     
Fund Snapshot    
Common Share Price   $4.87
     
Common Share Net Asset Value   $6.04
     
Premium/(Discount) to NAV   -19.37%
     
Current Distribution Rate1   15.36%
     
Net Assets Applicable to Common Shares ($000)   $843,469
     
 
             
Average Annual
Total Return
(Inception 6/25/03)
    On Share
   
    Price   On NAV
1-Year     -49.39 %   -45.84%
             
5-Year     -11.57 %   -9.02%
             
Since Inception     -10.43 %   -6.97%
             
 
     
Industries
   
(as a % of total investments)2    
Commercial Banks   17.7%
     
Insurance   12.1%
     
Real Estate   9.0%
     
Media   6.2%
     
Oil, Gas & Consumable Fuels   4.5%
     
Diversified Financial Services   3.7%
     
Capital Markets   3.5%
     
Metals & Mining   3.4%
     
Diversified Telecommunication Services   3.2%
     
Health Care Providers & Services   2.4%
     
Electric Utilities   2.4%
     
Food Products   2.4%
     
Hotels, Restaurants & Leisure   2.2%
     
Pharmaceuticals   1.8%
     
Specialty Retail   1.7%
     
Energy Equipment & Services   1.4%
     
Investment Companies   1.3%
     
Short-Term Investments   1.6%
     
Other   19.5%
     
 
     
Top Five Issuers
(as a % of total investments)3
AgFirst Farm Credit Bank   3.4%
     
Wachovia Corporation   2.1%
     
Comcast Corporation   1.9%
     
Lincoln National Corporation    1.7%
     
ING Groep N.V.    1.5%
     
       
JQC
Performance
OVERVIEW
    Nuveen Multi-Strategy
Income and
Growth Fund 2
               as of December 31, 2008
 
Portfolio Allocation (as a % of total investments)2
 
(PORTFOLIO ALLOCATION PIE CHART)
 
2007-2008 Distributions Per Common Share
 
(MONTHLY DISTRIBUTIONS BAR CHART)
 
Common Share Price Performance — Weekly Closing Price
 
(SHARE PRICE CHART)
 
Current Distribution Rate is based on the Fund’s current annualized quarterly distribution divided by the Fund’s current market price. The Fund’s quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund’s cumulative net ordinary income and net realized gains are less than the amount of the Fund’s distributions, a return of capital for tax purposes.
 
Excluding common stocks sold short, call options written and investments in derivatives.
 
Excluding short-term investments, common stocks sold short, call options written and investments in derivatives.

 

         
14
       
         


 

Report of INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
 

 
The Board of Trustees and Shareholders
Nuveen Multi-Strategy Income and Growth Fund
Nuveen Multi-Strategy Income and Growth Fund 2
 
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen Multi-Strategy Income and Growth Fund and Nuveen Multi-Strategy Income and Growth Fund 2 (the “Funds”) as of December 31, 2008, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2008, by correspondence with the custodian, selling or agent banks and brokers or by other appropriate auditing procedures where replies from selling or agent banks or brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen Multi-Strategy Income and Growth Fund and Nuveen Multi-Strategy Income and Growth Fund 2 at December 31, 2008, the results of their operations and cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated therein in conformity with US generally accepted accounting principles.
 
Ernest and Young Sig
 
Chicago, Illinois
February 26, 2009

         
    15    
         


 

 
         
  JPC
  Nuveen Multi-Strategy Income and Growth Fund
Portfolio of INVESTMENTS
        December 31, 2008
 
                                           
Shares     Description (1)                     Value   
        Common Stocks – 35.5% (24.4% of Total Investments)
        Aerospace & Defense – 0.7%
  56,170    
BAE Systems PLC
                          $ 305,684    
  8,000    
Boeing Company
                            341,360    
  87,660    
Bombardier Inc., CLass B Shares, DD1
                            315,988    
  1,380    
Esterline Technologies Corporation, (2)
                            52,288    
  9,030    
Finmeccanica S.p.A.
                            139,865    
  7,276    
Lockheed Martin Corporation
                            611,766    
  10,020    
Orbital Sciences Corporation, (2)
                            195,691    
  11,930    
Raytheon Company
                            608,907    
  23,400    
Thales S.A.
                            980,067    
  4,140    
United Technologies Corporation
                            221,904    
                                           
       
Total Aerospace & Defense
                            3,773,520    
        Air Freight & Logistics – 0.1%
  7,160    
FedEx Corporation
                            459,314    
        Airlines – 0.1%
  12,840    
Continental Airlines, Inc., (2)
                            231,890    
  4,330    
UAL Corporation, (2)
                            47,717    
                                           
       
Total Airlines
                            279,607    
        Auto Components – 0.2%
  17,250    
Advance Auto Parts, Inc.
                            580,463    
  28,970    
Aisin Seiki Company Limited
                            414,928    
  3,390    
Magna International Inc., Class A
                            101,463    
                                           
       
Total Auto Components
                            1,096,854    
        Automobiles – 0.3%
  17,400    
Daimler-Chrysler AG
                            666,072    
  6,370    
Toyota Motor Corporation
                            416,853    
  29,750    
Yamaha Motor Company Limited
                            313,039    
                                           
       
Total Automobiles
                            1,395,964    
        Beverages – 1.0%
  1,200    
Boston Beer Company, (2)
                            34,080    
  71,581    
Coca Cola Amatil Limited
                            459,987    
  5,120    
Coca-Cola Company
                            231,782    
  13,380    
Diageo PLC, Sponsored ADR
                            759,181    
  33,670    
Fomento Economico Mexicano S.A.
                            1,014,477    
  152,130    
Foster’s Group Limited
                            585,104    
  35,790    
Heineken N.V.
                            1,095,773    
  15,290    
Molson Coors Brewing Company, Class B
                            747,987    
  12,290    
Pepsi Bottling Group, Inc.
                            276,648    
  4,560    
PepsiCo, Inc.
                            249,751    
  5,860    
SABMiller PLC
                            98,406    
                                           
       
Total Beverages
                            5,553,176    
        Biotechnology – 0.5%
  9,800    
Alnylam Pharmaceuticals, Inc., (2)
                            242,354    
  4,700    
Amgen Inc., (2)
                            271,425    
  8,610    
Cephalon, Inc., (2)
                            663,314    
  5,340    
Emergent BioSolutions, Inc., (2)
                            139,427    
  4,370    
Genentech, Inc., (2)
                            362,317    
  10,720    
Genzyme Corporation, (2)
                            711,486    
  3,500    
ISIS Pharmaceuticals, Inc., (2)
                            49,630    
  9,800    
Novo-Nordisk A/S
                            503,622    
                                           
       
Total Biotechnology
                            2,943,575    
                                           

         
16
       
         


 

                                           
Shares     Description (1)                     Value   
        Capital Markets – 0.7%
  19,452    
Bank of New York Company, Inc.
                          $ 551,075    
  9,020    
Calamos Asset Management, Inc. Class A
                            66,748    
  114,960    
Daiwa Securities Group Inc.
                            690,141    
  2,380    
Franklin Resources, Inc.
                            151,796    
  11,490    
Invesco LTD
                            165,916    
  14,570    
Legg Mason, Inc.
                            319,229    
  3,440    
Stifel Financial Corporation, (2)
                            157,724    
  13,270    
TD Ameritrade Holding Corporation, (2)
                            189,098    
  111,272    
UBS AG, (2), (3)
                            1,591,190    
                                           
       
Total Capital Markets
                            3,882,917    
        Chemicals – 0.9%
  6,530    
Bayer AG
                            380,493    
  12,480    
Celanese Corporation, Series A
                            155,126    
  4,120    
CF Industries Holdings, Inc.
                            202,539    
  3,500    
Lubrizol Corporation
                            127,365    
  63,820    
Mitusi Chemicals
                            237,159    
  18,930    
Mosaic Company
                            654,978    
  90,010    
Nissan Chemical Industries Limited
                            872,482    
  11,890    
Potash Corporation of Saskatchewan
                            862,398    
  4,430    
Scotts Miracle Gro Company
                            131,660    
  1,650    
Syngenta AG, DD1
                            320,538    
  3,960    
Terra Industries, Inc.
                            66,013    
  10,920    
Wacker Chemie AG
                            1,169,346    
                                           
       
Total Chemicals
                            5,180,097    
        Commercial Banks – 1.6%
  26,930    
Banco Santander Central S.A.
                            255,566    
  36,560    
Barclays PLC
                            83,097    
  7,170    
BB&T Corporation
                            196,888    
  4,780    
Commerce Bancshares Inc.
                            210,081    
  7,860    
Community Bank System Inc.
                            191,705    
  22,610    
Credit Agricole S.A.
                            253,958    
  142,940    
DnB NOR ASA
                            567,134    
  1,670    
Goldman Sachs Group, Inc.
                            140,931    
  3,040    
Hancock Holding Company
                            138,198    
  79,340    
Hang Seng Bank
                            1,047,494    
  2,040    
Hatteras Financial Corp.
                            54,264    
  46,900    
HSBC Holdings PLC
                            459,019    
  38,120    
IntesaSanpaolo SpA
                            138,478    
  2,830    
Investors Bancorp, Inc., (2)
                            38,007    
  35,470    
JPMorgan Chase & Co.
                            1,118,369    
  43,590    
KeyCorp.
                            371,387    
  15,040    
Lloyds TSB Group PLC, Sponsored ADR
                            115,808    
  279,180    
Nishi-Nippon City Bank Limited
                            812,008    
  8,150    
Nordic Baltic Holdings FDR
                            58,091    
  10,270    
Northern Trust Corporation
                            535,478    
  9,570    
PNC Financial Services Group, Inc.
                            468,930    
  3,660    
Prosperity Bancshares, Inc.
                            108,299    
  32,660    
Standard Chartered PLC
                            417,918    
  1,510    
SVB Financial Group, (2)
                            39,607    
  4,350    
UMB Financial Corporation
                            213,759    
  39,310    
United Overseas Bank Limited
                            355,245    
  19,110    
Wells Fargo & Company
                            563,363    
                                           
       
Total Commercial Banks
                            8,953,082    
        Commercial Services & Supplies – 0.8%
  38,050    
Corrections Corporation of America, (2)
                            622,498    
  2,570    
Dun and Bradstreet Inc.
                            198,404    
  2,110    
GeoEye, Inc., (2)
                            40,575    
  94,815    
Republic Services, Inc.
                            2,350,464    
  139,300    
Toppan Printing Company Limited
                            1,076,137    
                                           
       
Total Commercial Services & Supplies
                            4,288,078    
                                           

         
    17    
         


 

 
     
   JPC
  Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2008

                                           
Shares     Description (1)                     Value   
        Communications Equipment – 0.3%
  3,630    
Comtech Telecom Corporation, (2)
                          $ 166,327    
  5,340    
Interdigital Inc., (2)
                            146,850    
  6,360    
NeuStar, Inc., (2)
                            121,667    
  30,580    
QUALCOMM Inc.
                            1,095,681    
                                           
       
Total Communications Equipment
                            1,530,525    
        Computers & Peripherals – 0.5%
  13,951    
Apple, Inc., (2)
                            1,190,718    
  5,710    
Data Domain, Inc., (2)
                            107,348    
  27,810    
Hewlett-Packard Company
                            1,009,225    
  5,860    
International Business Machines Corporation (IBM)
                            493,178    
                                           
       
Total Computers & Peripherals
                            2,800,469    
        Construction & Engineering – 0.5%
  157,550    
AMEC PLC
                            1,137,381    
  13,680    
Fluor Corporation
                            613,822    
  65,400    
JGC Corporation
                            978,773    
  9,230    
Quanta Services Incorporated, (2)
                            182,754    
                                           
       
Total Construction & Engineering
                            2,912,730    
        Consumer Finance – 0.3%
  5,790    
MasterCard, Inc.
                            827,565    
  15,250    
Visa Inc.
                            799,863    
                                           
       
Total Consumer Finance
                            1,627,428    
        Containers & Packaging – 0.1%
  5,580    
Owens-Illinois, Inc., (2)
                            152,501    
  10,150    
Packaging Corp. of America
                            136,619    
                                           
       
Total Containers & Packaging
                            289,120    
        Distributors – 0.1%
  39,940    
Jardine Cycle & Carriage Limited
                            265,626    
  15,590    
Unilever PLC
                            358,099    
                                           
       
Total Distributors
                            623,725    
        Diversified Consumer Services – 0.2%
  11,780    
Apollo Group, Inc., (2)
                            902,584    
  2,720    
ITT Educational Services, Inc., (2)
                            258,346    
                                           
       
Total Diversified Consumer Services
                            1,160,930    
        Diversified Financial Services – 0.5%
  18,280    
Citigroup Inc.
                            122,659    
  15,140    
Deutsche Boerse AG
                            1,095,364    
  7,430    
Eaton Vance Corporation
                            156,104    
  60,690    
ING Groep N.V., Ordinary Shares
                            667,950    
  13,880    
ING Groep N.V.
                            154,068    
  16,460    
New York Stock Exchange Euronext
                            450,675    
  1,500    
Orix Corporation
                            85,651    
                                           
       
Total Diversified Financial Services
                            2,732,471    
        Diversified Telecommunication Services – 1.5%
  23,850    
AT&T Inc.
                            679,725    
  5,930    
Cbeyond Inc., (2)
                            94,761    
  15,260    
Embarq Corporation
                            548,750    
  13,880    
France Telecom S.A.
                            389,612    
  37,500    
KT Corporation, Sponsored ADR, (3)
                            550,125    
  390    
Nippon Telegraph and Telephone Corporation, ADR
                            2,013,458    
  207,000    
Sprint Nextel Corporation, (2), (3)
                            378,810    
  2,295,000    
Telecom Italia S.p.A.
                            2,612,995    
  17,510    
Telefonica SA
                            1,179,999    
                                           
       
Total Diversified Telecommunication Services
                            8,448,235    
                                           

         
18
       
         


 

                                           
Shares     Description (1)                     Value   
        Electric Utilities – 2.0%
  134,000    
Centrais Electricas Brasileiras S.A., ADR, (2)
                          $ 1,389,419    
  17,690    
Chubu Electric Power Inc.
                            538,799    
  27,450    
E.ON A.G.
                            1,069,153    
  24,470    
Edison International
                            785,976    
  7,250    
El Paso Electric Company, (2)
                            131,153    
  8,110    
FPL Group, Inc.
                            408,176    
  40,000    
IdaCorp, Inc., (3)
                            1,178,000    
  268,500    
Korea Electric Power Corporation, Sponsored ADR
                            3,117,285    
  10,460    
PG&E Corporation
                            404,907    
  148,600    
PNM Resources Inc.
                            1,497,888    
  9,940    
Progress Energy, Inc.
                            396,109    
  5,480    
Southern Company
                            202,760    
                                           
       
Total Electric Utilities
                            11,119,625    
        Electrical Equipment – 0.4%
  65,820    
ABB Limited, (2)
                            1,003,764    
  23,390    
Emerson Electric Co.
                            856,308    
  710    
First Solar Inc., (2)
                            97,952    
  6,120    
GrafTech International Ltd., (2)
                            50,918    
  75,320    
Hitachi Limited
                            292,311    
  13,920    
Nikon Corporation
                            167,076    
                                           
       
Total Electrical Equipment
                            2,468,329    
        Electronic Equipment & Instruments – 0.3%
  3,080    
Dolby Laboratories, Inc., (2)
                            100,901    
  7,014    
Itron Inc., (2)
                            447,072    
  4,377    
Multi Fineline Electronix, Inc., (2)
                            51,167    
  3,120    
SunPower Corporation, (2)
                            115,440    
  45,000    
Tech Data Corporation, (2), (3)
                            802,800    
  2,807    
Teledyne Technologies Inc., (2)
                            125,052    
  2,430    
Thermo Fisher Scientific, Inc., (2)
                            82,790    
                                           
       
Total Electronic Equipment & Instruments
                            1,725,222    
        Energy Equipment & Services – 0.8%
  231,500    
BJ Services Company, (3)
                            2,701,605    
  2,710    
Cabot Oil & Gas Corporation
                            70,460    
  16,280    
Cooper Cameron Corporation, (2)
                            333,740    
  6,710    
Dresser Rand Group, Inc., (2)
                            115,748    
  14,200    
FMC Technologies Inc., (2)
                            338,386    
  9,130    
Matrix Service Company, (2)
                            70,027    
  3,990    
Noble Corporation
                            88,139    
  5,800    
Pride International Inc., (2)
                            92,684    
  8,920    
Superior Well Services, Inc., (2)
                            89,200    
  10,600    
Technip S.A.
                            325,462    
                                           
       
Total Energy Equipment & Services
                            4,225,451    
        Food & Staples Retailing – 0.7%
  12,990    
Casino Guichard-Perrachon S.A.
                            990,025    
  6,360    
Costco Wholesale Corporation
                            333,900    
  59,960    
Koninklijke Ahold N.V.
                            738,882    
  18,650    
Kroger Co.
                            492,547    
  2,870    
Nash Finch Company
                            128,834    
  25,400    
Safeway Inc.
                            603,758    
  8,870    
Wal-Mart Stores, Inc.
                            497,252    
  42,660    
William Morrison Supermarkets PLC
                            172,916    
                                           
       
Total Food & Staples Retailing
                            3,958,114    
        Food Products – 2.3%
  4,170    
Campbell Soup Company
                            125,142    
  5,590    
Diamond Foods Inc.
                            112,639    
  5,615    
Flowers Foods Inc.
                            136,781    
  7,160    
General Mills, Inc.
                            434,970    
  20,260    
H.J. Heinz Company
                            761,776    
  139,030    
Jeronimo Martins SGPS
                            772,176    
  7,520    
Monsanto Company
                            529,032    

         
    19    
         


 

 
     
   JPC
  Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2008

                                           
Shares     Description (1)                     Value   
        Food Products (continued)
                                           
  14,800    
Nestle S.A.
                          $ 586,052    
  267,000    
Smithfield Foods, Inc., (2), (3)
                            3,756,690    
  481,100    
Tyson Foods, Inc., Class A, (3)
                            4,214,436    
  49,810    
Unilever PLC
                            1,146,626    
                                           
       
Total Food Products
                            12,576,320    
        Gas Utilities – 0.1%
  10,170    
E.ON AG
                            399,347    
  10,430    
Spectra Energy Corporation
                            164,168    
                                           
       
Total Gas Utilities
                            563,515    
        Health Care Equipment & Supplies – 0.6%
  17,150    
Baxter International Inc.
                            919,069    
  2,640    
Conmed Corporation, (2)
                            63,202    
  5,870    
Covidien Limited
                            212,729    
  22,780    
Fresenius Medical Care, ADR
                            1,047,237    
  3,700    
Gen-Probe, Inc., (2)
                            158,508    
  5,080    
Masimo Corporation, (2)
                            151,536    
  50,700    
Paramount Bed Company Limited
                            689,606    
  6,290    
Saint Jude Medical Inc., (2)
                            207,318    
  6,000    
Volcano Corporation, (2)
                            90,000    
                                           
       
Total Health Care Equipment & Supplies
                            3,539,205    
        Health Care Providers & Services – 0.4%
  2,280    
Emergency Medical Services Corporation, (2)
                            83,471    
  20,614    
Express Scripts, Inc., (2)
                            1,133,358    
  30,000    
Health Net Inc., (2)
                            326,700    
  12,720    
Omnicare, Inc.
                            353,107    
  6,900    
Pharmerica Corporation, (2)
                            108,123    
                                           
       
Total Health Care Providers & Services
                            2,004,759    
        Hotels, Restaurants & Leisure – 0.3%
  14,030    
Burger King Holdings Inc.
                            335,036    
  20,140    
McDonald’s Corporation
                            1,252,507    
                                           
       
Total Hotels, Restaurants & Leisure
                            1,587,543    
        Household Durables – 0.0%
  8,410    
Jarden Corporation, (2)
                            96,715    
  3,720    
MDC Holdings Inc.
                            112,716    
                                           
       
Total Household Durables
                            209,431    
        Household Products – 0.2%
  11,590    
Colgate-Palmolive Company
                            794,379    
  7,870    
Reckitt and Benckiser, DD1
                            294,896    
                                           
       
Total Household Products
                            1,089,275    
        Industrial Conglomerates – 0.2%
  9,200    
East Asiatic Co LTD
                            313,264    
  14,650    
General Electric Company
                            237,330    
  190    
Keppel Corporation
                            577    
  17,120    
Mitsubishi Corporation
                            242,489    
  3,380    
Teleflex Inc.
                            169,338    
  15,700    
Walter Industries Inc.
                            274,907    
                                           
       
Total Industrial Conglomerates
                            1,237,905    
        Insurance – 1.1%
  8,350    
Ace Limited
                            441,882    
  15,415    
AFLAC Incorporated
                            706,624    
  8,400    
Amtrust Financial Services, Inc.
                            97,440    
  5,400    
Arch Capital Group Limited, (2)
                            378,540    
  3,260    
Aspen Insurance Holdings Limited
                            79,055    
  3,380    
Assurant Inc.
                            101,400    
  7,920    
AXA
                            177,769    
  8,360    
Axis Capital Holdings Limited
                            243,443    

         
20
       
         


 

                                           
Shares     Description (1)                     Value   
        Insurance (continued)
                                           
  8,280    
Chubb Corporation
                          $ 422,280    
  800    
Fairfax Financial Holdings Limited
                            250,728    
  1,990    
Fairfax Financial Holdings Limited
                            628,676    
  9,130    
HCC Insurance Holdings Inc.
                            244,228    
  214,450    
Mapfre S.A.
                            731,367    
  10,590    
Mitsui Sumitomo Insurance Company Limited, DD1
                            336,774    
  1,290    
Navigators Group, Inc., (2)
                            70,834    
  13,240    
Prudential Corporation PLC
                            80,370    
  14,220    
SCOR SE
                            328,531    
  8,520    
Travelers Companies, Inc.
                            385,104    
  15,620    
WR Berkley Corporation
                            484,220    
  930    
Zurich Financial Services AG
                            203,187    
                                           
       
Total Insurance
                            6,392,452    
        Internet Software & Services – 0.4%
  60,000    
eBay Inc., (2), (3)
                            837,600    
  9,900    
Equinix Inc., (2)
                            526,581    
  370    
Google Inc., Class A, (2)
                            113,831    
  12,290    
Sohu.com Inc., (2)
                            581,809    
  9,510    
Switch & Data Facilities Company, Inc., (2)
                            70,279    
  3,590    
Vocus, Inc., (2)
                            65,374    
                                           
       
Total Internet Software & Services
                            2,195,474    
        IT Services – 0.2%
  20,250    
Accenture Limited
                            663,998    
  8,690    
CGI Group Inc., (2)
                            67,782    
  11,400    
TNS Inc., (2)
                            107,046    
                                           
       
Total IT Services
                            838,826    
        Leisure Equipment & Products – 0.1%
  17,250    
Hasbro, Inc.
                            503,183    
  8,990    
Marvel Entertainment Inc., (2)
                            276,443    
                                           
       
Total Leisure Equipment & Products
                            779,626    
        Life Sciences Tools & Services – 0.1%
  1,010    
Bio-Rad Laboratories Inc., (2)
                            76,063    
  1,220    
Dionex Corporation, (2)
                            54,717    
  10,680    
Illumina Inc., (2)
                            278,214    
                                           
       
Total Life Sciences Tools & Services
                            408,994    
        Machinery – 0.4%
  36,840    
ABB Limited
                            552,968    
  19,360    
AGCO Corporation, (2)
                            456,702    
  3,200    
Badger Meter Inc.
                            92,864    
  4,350    
Cummins Inc.
                            116,276    
  7,910    
Flowserve Corporation
                            407,365    
  4,688    
Harsco Corporation
                            129,764    
  5,550    
Robbins & Myers, Inc.
                            89,744    
  4,220    
SPX Corporation
                            171,121    
                                           
       
Total Machinery
                            2,016,804    
        Marine – 0.2%
  129,220    
Kawasaki Kisen Kaisha Limited
                            606,049    
  40,000    
Stolt-Nielsen S.A.
                            410,188    
  3,170    
Transocean Inc., (2)
                            149,783    
                                           
       
Total Marine
                            1,166,020    
        Media – 0.4%
  22,050    
Cablevision Systems Corporation
                            371,322    
  33,550    
DIRECTV Group, Inc., (2)
                            768,631    
  9,390    
Liberty Media Corporation, Entertainment Tracking Shares, Class A, (2)
                            164,137    
  2,880    
National CineMedia, Inc.
                            29,203    
  19,490    
Regal Entertainment Group, Class A
                            198,993    

         
    21    
         


 

 
     
   JPC
  Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2008

                                           
Shares     Description (1)                     Value   
        Media (continued)
                                           
  22,700    
Scholastic Corporation
                          $ 308,266    
  11,715    
Shaw Communication Inc.
                            205,072    
                                           
       
Total Media
                            2,045,624    
        Metals & Mining – 3.9%
  141,000    
AngloGold Ashanti Limited, Sponsored ADR, (3)
                            3,907,110    
  204,700    
Apex Silver Mines Limited, (2), (7)
                            200,606    
  121,000    
Barrick Gold Corporation, (3)
                            4,449,170    
  8,340    
BHP Billiton PLC
                            161,759    
  6,570    
BHP Billiton PLC
                            253,471    
  42,820    
BHP Billiton PLC
                            909,676    
  3,320    
Cliffs Natural Resources Inc.
                            85,025    
  2,770    
Compass Minerals International, Inc.
                            162,488    
  235,600    
Crystallex International Corporation, (2)
                            40,052    
  14,820    
Freeport-McMoRan Copper & Gold, Inc.
                            362,201    
  139,600    
Gold Fields Limited, (3)
                            1,386,228    
  126,000    
Ivanhoe Mines Ltd., (2), (3)
                            340,200    
  1,824,600    
Lihir Gold Limited, (2)
                            3,933,368    
  1,062,500    
Minara Resources Limited
                            213,874    
  158,540    
Mitsubishi Materials
                            401,279    
  113,800    
Newmont Mining Corporation, (3)
                            4,631,660    
  188,200    
NovaGold Resources Inc., (2)
                            280,418    
  16,620    
Xstrata PLC
                            155,519    
                                           
       
Total Metals & Mining
                            21,874,104    
        Multiline Retail – 0.4%
  26,060    
Big Lots, Inc., (2)
                            377,609    
  5,160    
Dollar Tree Stores Inc., (2)
                            215,688    
  17,940    
Family Dollar Stores, Inc.
                            467,696    
  57,140    
Next PLC
                            897,904    
                                           
       
Total Multiline Retail
                            1,958,897    
        Multi-Utilities – 0.1%
  56,990    
Centrica PLC
                            219,400    
  3,430    
RWE AG, DD1
                            304,642    
                                           
       
Total Multi-Utilities
                            524,042    
        Oil, Gas & Consumable Fuels – 3.8%
  1,600    
Alpha Natural Resources Inc., (2)
                            25,904    
  98,900    
Arch Coal Inc., (3)
                            1,611,081    
  34,900    
BG Group PLC
                            483,070    
  79,710    
BP PLC, (3)
                            3,725,645    
  84,000    
Cameco Corporation, (3)
                            1,449,000    
  18,840    
Chesapeake Energy Corporation
                            304,643    
  36,670    
Chevron Corporation, (3)
                            2,712,480    
  2,338    
Comstock Resources Inc., (2)
                            110,471    
  23,300    
Continental Resources Inc., (2)
                            482,543    
  1,980    
Devon Energy Corporation
                            130,106    
  21,230    
Eni S.p.A., Sponsored ADR
                            1,015,219    
  6,740    
EOG Resources, Inc.
                            448,749    
  10,700    
Hess Corporation
                            573,948    
  4,140    
McMoran Exploration Corporation, (2)
                            40,572    
  9,170    
Murphy Oil Corporation
                            406,690    
  40,100    
Nexen Inc., (3)
                            704,958    
  13,510    
Occidental Petroleum Corporation
                            810,465    
  17,570    
Petrohawk Energy Corporation, (2)
                            274,619    
  19,950    
Repsol YPF S.A.
                            429,125    
  61,600    
Royal Dutch Shell PLC, Class B, Sponsored ADR, (3)
                            3,168,088    
  7,290    
SandRidge Energy Inc., (2)
                            44,834    
  6,310    
Southwestern Energy Company, (2)
                            182,801    
  33,719    
StatoilHydro ASA, Sponsored ADR
                            561,759    
  14,050    
Total S.A., Sponsored ADR
                            776,965    
  5,610    
Total S.A.
                            308,433    

         
22
       
         


 

                                           
Shares     Description (1)                     Value   
        Oil, Gas & Consumable Fuels (continued)
                                           
  4,540    
Whiting Petroleum Corporation, (2)
                          $ 151,908    
  13,590    
Woodside Petroleum Limited, (2)
                            351,673    
                                           
       
Total Oil, Gas & Consumable Fuels
                            21,285,749    
        Paper & Forest Products – 0.0%
  4,940    
Buckeye Technologies Inc., (2)
                            17,982    
  1    
Clearwater Paper Corporation, (2)
                            6    
  1,300    
Potlatch Corporation
                            33,813    
                                           
       
Total Paper & Forest Products
                            51,801    
        Personal Products – 0.0%
  6,800    
Herbalife, Limited
                            147,424    
        Pharmaceuticals – 1.8%
  10,840    
Abbott Laboratories
                            578,531    
  12,570    
Astellas Pharma Inc.
                            514,519    
  13,000    
AstraZeneca Group
                            531,835    
  23,200    
Bristol-Myers Squibb Company
                            539,400    
  16,410    
Eli Lilly and Company
                            660,831    
  44,300    
GlaxoSmithKline PLC, ADR
                            823,879    
  4,730    
GlaxoSmithKline PLC, ADR
                            176,287    
  15,450    
H. Lundbeck A/S
                            323,127    
  10,340    
Johnson & Johnson
                            618,642    
  22,660    
Novartis AG
                            1,134,845    
  3,280    
Noven Pharmaceuticals Inc., (2)
                            36,080    
  2,160    
Novo Nordisk A/S
                            111,421    
  182,000    
Patheon Inc., (2)
                            325,816    
  9,050    
Perrigo Company
                            292,406    
  30,610    
Pfizer Inc.
                            542,103    
  2,000    
Roche Holdings AG, DD1
                            309,634    
  14,440    
Sanofi-Aventis, ADR
                            464,390    
  9,220    
Sanofi-Synthelabo, SA
                            589,740    
  25,800    
Shionogi & Company Limited
                            666,287    
  28,660    
Warner Chilcott Limited, (2)
                            415,570    
  8,310    
Watson Pharmaceuticals Inc., (2)
                            220,797    
  10,380    
Wyeth
                            389,354    
                                           
       
Total Pharmaceuticals
                            10,265,494    
        Real Estate – 0.2%
  2,020    
American Public Education Inc., (2)
                            75,124    
  2,530    
Equity Lifestyles Properties Inc.
                            97,051    
  1,660    
Essex Property Trust Inc.
                            127,405    
  6,380    
Lexington Corporate Properties Trust
                            31,900    
  12,980    
Rayonier Inc.
                            406,923    
  8,221    
Tanger Factory Outlet Centers
                            309,274    
                                           
       
Total Real Estate
                            1,047,677    
        Road & Rail – 0.4%
  12,960    
Canadian National Railways Company
                            470,108    
  14,300    
CSX Corporation
                            464,321    
  11,170    
Kansas City Southern Industries, (2)
                            212,789    
  5,150    
Landstar System
                            197,915    
  6,090    
Norfolk Southern Corporation
                            286,535    
  159,970    
Stagocoach Group PLC
                            329,051    
  6,750    
Union Pacific Corporation
                            322,650    
                                           
       
Total Road & Rail
                            2,283,369    
        Semiconductors & Equipment – 0.3%
  40,890    
Broadcom Corporation, Class A, (2)
                            693,903    
  46,760    
Intel Corporation
                            685,502    
  45,310    
Marvell Technology Group Ltd., (2)
                            302,218    
  8,690    
Monolithic Power Systems, Inc., (2)
                            109,581    

         
    23    
         


 

 
     
   JPC
  Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2008

                                           
Shares     Description (1)                     Value   
        Semiconductors & Equipment (continued)
                                           
  12,760    
ON Semiconductor Corporation, (2)
                          $ 43,384    
  7,370    
Semtech Corporation, (2)
                            83,060    
                                           
       
Total Semiconductors & Equipment
                            1,917,648    
        Software – 0.7%
  23,830    
Adobe Systems Incorporated, (2)
                            507,341    
  10,510    
Ansys Inc., (2)
                            293,124    
  12,240    
Autodesk, Inc., (2)
                            240,516    
  4,720    
Blackboard, Inc., (2)
                            123,806    
  22,660    
CA Inc.
                            419,890    
  12,970    
CommVault Systems, Inc., (2)
                            173,928    
  4,700    
Electronic Arts Inc. (EA), (2)
                            75,388    
  3,380    
Nintendo Co., Ltd.
                            1,291,673    
  22,390    
Salesforce.com, Inc., (2)
                            716,704    
  10,680    
Wind River Systems Inc., (2)
                            96,440    
                                           
       
Total Software
                            3,938,810    
        Specialty Retail – 0.3%
  5,165    
Aeropostale, Inc., (2)
                            83,157    
  24,910    
Gap, Inc.
                            333,545    
  19,150    
Home Depot, Inc.
                            440,832    
  21,360    
Lowe’s Companies, Inc.
                            459,666    
  7,930    
NetFlix.com Inc., (2)
                            237,027    
  18,180    
RadioShack Corporation
                            217,068    
                                           
       
Total Specialty Retail
                            1,771,295    
        Textiles, Apparel & Luxury Goods – 0.1%
  1,680    
Deckers Outdoor Corporation, (2)
                            134,181    
  12,308    
Guess Inc.
                            188,927    
                                           
       
Total Textiles, Apparel & Luxury Goods
                            323,108    
        Thrifts & Mortgage Finance – 0.3%
  97,190    
Hudson City Bancorp, Inc.
                            1,551,151    
  15,610    
People’s United Financial, Inc.
                            278,325    
                                           
       
Total Thrifts & Mortgage Finance
                            1,829,476    
        Tobacco – 0.4%
  6,950    
British American Tobacco PLC
                            367,932    
  3,030    
Lorillard Inc.
                            170,740    
  36,000    
Philip Morris International
                            1,566,359    
                                           
       
Total Tobacco
                            2,105,031    
        Water Utilities – 0.0%
  2,710    
California Water Service Group
                            125,824    
        Wireless Telecommunication Services – 0.7%
  100    
KDDI Corporation
                            714,028    
  6,970    
Millicom International Cellular S.A., (2)
                            329,332    
  11,890    
Millicom International Cellular S.A., (2)
                            533,979    
  1,120    
NTT Mobile Communications
                            2,204,511    
  17,820    
Partner Communications Company Limited
                            294,029    
                                           
       
Total Wireless Telecommunication Services
                            4,075,879    
                                           
       
Total Common Stocks (cost $288,416,286)
                            197,605,959    
                                           
                                           
Shares     Description (1)   Coupon           Ratings (4)     Value   
        Convertible Preferred Securities – 1.7% (1.2% of Total Investments)
        Capital Markets – 0.0%
  5,800    
AMG Capital Trust II, Convertible Bond
    5.150%               BB     $ 92,800    
                                           

         
24
       
         


 

                                           
Shares     Description (1)   Coupon           Ratings (4)     Value   
        Commercial Banks – 0.4%
  2,800    
Bank of America Corporation
    7.250%               A1     $ 1,820,000    
  4,450    
Fifth Third Bancorp, Convertible Bond
    8.500%               A3       360,806    
  13,000    
Sovereign Capital Trust IV, Convertible Security
    4.375%               Baa3       249,438    
                                           
       
Total Commercial Banks
                            2,430,244    
        Communications Equipment – 0.6%
  9,350    
Lucent Technologies Capital Trust I
    7.750%               B2       3,179,000    
        Diversified Financial Services – 0.2%
  45,500    
Citigroup Inc., Series T
    6.500%               BBB       1,273,545    
        Electric Utilities – 0.1%
  16,850    
Centerpoint Energy Inc.
    2.000%               BBB–       227,475    
  4,000    
CMS Energy Corporation, Convertible Bonds
    4.500%               Ba2       212,250    
                                           
       
Total Electric Utilities
                            439,725    
        Food Products – 0.1%
  4,200    
Bunge Limited, Convertible Bonds
    4.875%               BB       287,700    
        Household Durables – 0.0%
  4,550    
Newell Financial Trust I
    5.250%               N/R       118,300    
        Independent Power Producers & Energy Traders – 0.0%
  200    
NRG Energy Inc., Convertible Bond
    4.000%               B2       227,800    
        Insurance – 0.0%
  2,650    
Reinsurance Group of America Inc.
    5.750%               BBB       143,100    
        Metals & Mining – 0.1%
  800    
Freeport McMoran Copper & Gold, Inc.
    5.500%               BB       497,200    
        Oil, Gas & Consumable Fuels – 0.1%
  400    
El Paso Corporation
    4.990%               B       264,100    
        Real Estate – 0.1%
  15,650    
HRPT Properties Trust, Preferred Convertible Bonds
    6.500%               Baa3       156,500    
  5,400    
Simon Property Group, Inc., Series I
    6.000%               N/R       231,498    
                                           
       
Total Real Estate
                            387,998    
                                           
       
Total Convertible Preferred Securities (cost $19,631,551)
                            9,341,512    
                                           
                                           
Shares     Description (1)   Coupon           Ratings (4)     Value   
        $25 Par (or similar) Preferred Securities – 44.1% (30.2% of Total Investments)
        Capital Markets – 2.9%
  120,694    
BNY Capital Trust V, Series F
    5.950%               A     $ 2,692,683    
  903,089    
Deutsche Bank Capital Funding Trust II
    6.550%               A–       13,456,026    
                                           
       
Total Capital Markets
                            16,148,709    
        Commercial Banks – 8.0%
  54,900    
ASBC Capital I
    7.625%               A3       1,096,353    
  283,373    
Banco Santander Finance
    6.800%               Aa3       5,384,087    
  282,606    
Banco Santander Finance
    6.500%               A+       5,329,949    
  231,600    
Banesto Holdings, Series A, 144A
    10.500%               A1       6,224,250    
  107,000    
Cobank Agricultural Credit Bank
    7.000%               N/R       5,344,971    
  31,000    
Cobank Agricultural Credit Bank
    11.000%               A       1,638,924    
  133,925    
Fleet Capital Trust VIII
    7.200%               Aa3       2,574,039    
  19,300    
Goldman Sachs Group Inc., Series 2004-4 (CORTS)
    6.000%               A2       277,148    
  7,500    
Goldman Sachs Group Inc., Series GSC-3 (PPLUS)
    6.000%               A2       105,000    
  613,541    
HSBC Finance Corporation
    6.875%               AA–       12,614,403    
  200,292    
Merrill Lynch Preferred Capital Trust V
    7.280%               A3       3,465,052    
  6,940    
PNC Capital Trust
    6.125%               A2       146,781    
  11,330    
Zions Capital Trust B
    8.000%               Baa1       249,373    
                                           
       
Total Commercial Banks
                            44,450,330    
                                           
                                           

         
    25    
         


 

 
     
   JPC
  Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2008

                                           
Shares     Description (1)   Coupon           Ratings (4)     Value   
        Diversified Financial Services – 2.4%
  326,318    
ING Groep N.V.
    7.200%               A     $ 4,340,029    
  701,975    
ING Groep N.V.
    7.050%               A       8,915,083    
                                           
       
Total Diversified Financial Services
                            13,255,112    
        Diversified Telecommunication Services – 0.4%
  65,702    
BellSouth Capital Funding (CORTS)
    7.120%               A       1,630,231    
  18,300    
BellSouth Corporation (CORTS)
    7.000%               A       385,444    
  15,200    
Verizon Communications (CORTS)
    7.625%               A       367,992    
                                           
       
Total Diversified Telecommunication Services
                            2,383,667    
        Electric Utilities – 1.0%
  32,070    
Entergy Louisiana LLC
    7.600%               A–       777,698    
  21,775    
FPL Group Capital Inc.
    6.600%               BBB+       526,955    
  165,061    
Xcel Energy Inc.
    7.600%               BBB–       4,114,971    
                                           
       
Total Electric Utilities
                            5,419,624    
        Food Products – 0.3%
  27,100    
Dairy Farmers of America Inc., 144A
    7.875%               BBB–       1,581,117    
        Insurance – 10.7%
  638,730    
Aegon N.V.
    6.375%               A–       6,278,716    
  11,721    
Arch Capital Group Limited, Series B
    7.875%               BBB–       234,654    
  362,566    
Arch Capital Group Limited
    8.000%               BBB–       7,207,812    
  1,217,700    
Delphi Financial Group, Inc.
    8.000%               BBB+       17,400,933    
  3,000,000    
Everest Reinsurance Holdings, Inc.
    6.600%               Baa1       1,225,848    
  276,457    
EverestRe Capital Trust II
    6.200%               Baa1       4,586,422    
  75,900    
Financial Security Assurance Holdings
    6.250%               A+       588,225    
  737,381    
PartnerRe Limited, Series C
    6.750%               BBB+       14,010,239    
  62,457    
PLC Capital Trust III
    7.500%               BBB+       830,054    
  5,800    
PLC Capital Trust IV
    7.250%               BBB+       81,200    
  6,218    
Protective Life Corporation
    7.250%               BBB       83,010    
  368,951    
RenaissanceRe Holdings Limited, Series B
    7.300%               BBB       6,696,461    
  29,800    
RenaissanceRe Holdings Ltd
    6.600%               BBB+       494,680    
                                           
       
Total Insurance
                            59,718,254    
        Media – 4.7%
  396,595    
CBS Corporation
    6.750%               BBB       5,203,326    
  495,297    
Comcast Corporation
    7.000%               BBB+       10,896,534    
  558,146    
Viacom Inc.
    6.850%               BBB       10,202,909    
                                           
       
Total Media
                            26,302,769    
        Oil, Gas & Consumable Fuels – 1.3%
  429,300    
Nexen Inc.
    7.350%               Baa3       7,491,285    
        Real Estate – 12.3%
  558,485    
Developers Diversified Realty Corporation, Series G
    8.000%               BBB–       4,853,235    
  90,042    
Duke Realty Corpoation, Series O
    8.375%               BBB–       1,293,003    
  16,400    
Duke Realty Corporation, Series K
    6.500%               BBB       164,000    
  12,300    
Duke Realty Corporation, Series L
    6.600%               BBB       126,567    
  156,378    
Equity Residential Properties Trust, Series N
    6.480%               BBB       3,244,844    
  23,182    
First Industrial Realty Trust, Inc., Series J
    7.250%               BBB–       231,820    
  126,567    
HRPT Properties Trust, Series B
    8.750%               BBB–       1,563,102    
  650,800    
HRPT Properties Trust, Series C
    7.125%               BBB–       6,573,080    
  347,187    
Kimco Realty Corporation, Series F
    6.650%               BBB+       5,173,086    
  112,332    
Kimco Realty Corporation, Series G
    7.750%               Baa2       2,021,976    
  32,982    
Prologis Trust, Series C
    8.540%               BBB       1,399,674    
  39,800    
PS Business Parks, Inc., Series I
    6.875%               BBB–       618,890    
  19,300    
PS Business Parks, Inc., Series O
    7.375%               Baa3       328,100    
  216,310    
Public Storage, Inc.
    6.750%               Baa1       4,231,024    
  33,774    
Public Storage, Inc., Series C
    6.600%               BBB       607,932    
  43,600    
Public Storage, Inc., Series E
    6.750%               BBB+       802,240    
  9,359    
Public Storage, Inc., Series H
    6.950%               BBB+       183,062    
  3,800    
Public Storage, Inc., Series V
    7.500%               BBB       81,738    
  317,500    
Realty Income Corporation
    6.750%               BBB–       5,584,825    
  117,684    
Regency Centers Corporation
    7.450%               BBB       2,118,312    

         
26
       
         


 

                                           
Shares     Description (1)   Coupon           Ratings (4)     Value   
        Real Estate (continued)
                                           
  912,662    
Wachovia Preferred Funding Corporation
    7.250%               A–     $ 18,399,265    
  595,830    
Weingarten Realty Trust, Preferred Securities
    6.750%               A–       8,579,951    
                                           
       
Total Real Estate
                            68,179,726    
        Wireless Telecommunication Services – 0.1%
  21,754    
United States Cellular Corporation
    8.750%               Baa2       402,448    
                                           
       
Total $25 Par (or similar) Preferred Securities (cost $375,210,873)
                            245,333,041    
                                           
                                           
          Weighted
                   
Principal
        Average
                   
Amount (000)     Description (1)   Coupon     Maturity (5)     Ratings (4)     Value   
        Variable Rate Senior Loan Interests – 16.0% (11.0% of Total Investments) (6)
        Aerospace & Defense – 0.2%
$ 574    
DAE Aviation Holdings, Inc., Term Loan B1
    6.276%       7/31/14       BB–     $ 301,596    
  566    
DAE Aviation Holdings, Inc., Term Loan B2
    7.170%       7/31/14       BB–       297,312    
  600    
McKechnie Aerospace Holdings, Inc., Term Loan
    5.470%       5/11/15       N/R       267,000    
                                           
  1,740    
Total Aerospace & Defense
                            865,908    
                                           
        Airlines – 0.3%
  1,669    
ACTS Aero Technical Support & Services, Inc., Term Loan
    7.885%       10/16/14       N/R       292,092    
  985    
American Airlines, Inc., Term Loan
    3.850%       12/17/10       BB–       699,242    
  988    
Delta Air Lines, Inc., Term Loan
    5.149%       4/30/14       B       502,638    
                                           
  3,642    
Total Airlines
                            1,493,972    
        Building Products – 0.5%
  2,562    
Building Materials Corporation of America, Term Loan
    6.625%       2/22/14       B+       1,564,566    
  976    
Stile Acquisition Corporation, Canadian Term Loan
    4.250%       4/05/13       Caa3       430,435    
  986    
Stile Acquisition Corporation, Term Loan B
    4.250%       4/05/13       Caa3       434,620    
  978    
TFS Acquisition, Term Loan
    4.959%       8/11/13       B+       439,875    
                                           
  5,502    
Total Building Products
                            2,869,496    
        Chemicals – 0.3%
  187    
Celanese US Holdings LLC, Term Loan
    5.553%       4/02/14       BB+       128,885    
  1,970    
Hercules Offshore, Inc., Term Loan
    3.210%       7/11/13       BB       1,300,200    
                                           
  2,157    
Total Chemicals
                            1,429,085    
        Commercial Services & Supplies – 0.4%
  159    
Aramark Corporation, Letter of Credit
    4.801%       1/24/14       BB       132,047    
  2,509    
Aramark Corporation, Term Loan
    3.334%       1/24/14       BB       2,078,509    
                                           
  2,668    
Total Commercial Services & Supplies
                            2,210,556    
        Communications Equipment – 0.1%
  1,101    
CommScope Inc., Term Loan B
    2.961%       12/27/14       BB–       811,645    
        Diversified Consumer Services – 0.3%
  978    
Cengage Learning Acquisitions, Inc., Term Loan
    2.960%       7/05/14       B+       642,451    
  194    
Laureate Education, Inc., Delayed Term Loan
    3.750%       8/17/14       B1       107,097    
  1,293    
Laureate Education, Inc., Term Loan B
    3.750%       8/17/14       B1       715,674    
                                           
  2,465    
Total Diversified Consumer Services
                            1,465,222    
        Diversified Telecommunication Services – 0.2%
  497    
Intelsat, Tranche B, Term Loan A
    6.650%       1/03/14       BB–       379,530    
  497    
Intelsat, Tranche B, Term Loan B
    6.650%       1/03/14       BB–       379,416    
  497    
Intelsat, Tranche B, Term Loan C
    6.650%       1/03/14       BB–       379,416    
                                           
  1,491    
Total Diversified Telecommunication Services
                            1,138,362    
        Electric Utilities – 0.6%
  562    
Calpine Corporation, DIP Term Loan
    4.335%       3/31/14       B+       417,205    
  988    
TXU Corporation, Term Loan B2
    5.591%       10/10/14       Ba3       689,193    
  2,963    
TXU Corporation, Term Loan B3
    5.368%       10/10/14       Ba3       2,067,578    
                                           
  4,513    
Total Electric Utilities
                            3,173,976    
                                           

         
    27    
         


 

 
     
   JPC
  Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2008

                                           
          Weighted
                   
Principal
        Average
                   
Amount (000)     Description (1)   Coupon     Maturity (5)     Ratings (4)     Value   
        Electrical Equipment – 0.0%
$ 244    
Allison Transmission Holdings, Inc., Term Loan
    4.580%       8/07/14       BB–     $ 137,555    
        Energy Equipment & Services – 0.2%
  1,907    
PGS Finance, Inc., Term Loan
    3.210%       6/29/15       Ba2       1,315,600    
        Health Care Equipment & Supplies – 0.2%
  48    
Bausch & Lomb, Inc., Delayed Term Loan
    4.709%       4/24/15       BB–       22,857    
  317    
Bausch & Lomb, Inc., Term Loan
    4.709%       4/24/15       BB–       217,234    
  958    
Biomet, Inc., Term Loan
    4.459%       3/24/15       BB–       823,515    
                                           
  1,323    
Total Health Care Equipment & Supplies
                            1,063,606    
        Health Care Providers & Services – 2.9%
  112    
Community Health Systems, Inc., Term Loan B
    3.404%       7/25/14       BB       39,242    
  6,565    
Community Health Systems, Inc., Term Loan
    4.445%       7/25/14       BB       5,143,927    
  493    
Concentra, Inc., Term Loan
    3.710%       6/25/14       B+       300,425    
  1,860    
HCA, Inc., Term Loan
    3.709%       11/18/13       BB       1,470,714    
  1,149    
HCA, Inc., Term Loan A
    3.459%       11/18/12       BB       975,057    
  2,072    
Health Management Associates, Inc., Term Loan
    3.209%       2/28/14       BB–       1,286,373    
  475    
IASIS Healthcare LLC, Delayed Term Loan
    2.461%       3/14/14       Ba2       341,389    
  127    
IASIS Healthcare LLC, Letter of Credit
    0.361%       3/14/14       Ba2       91,494    
  1,371    
IASIS Healthcare LLC, Term Loan
    2.461%       3/14/14       Ba2       986,579    
  747    
LifePoint Hospitals, Inc.,Term Loan B
    3.821%       4/18/12       Ba1       628,889    
  2,233    
Select Medical Corporation, Term Loan, DD1
    4.153%       2/24/12       Ba2       1,560,125    
  985    
Select Medical Corporation, Term Loan B2
    4.153%       2/24/12       Ba2       688,269    
  241    
Sun Healthcare Group, Inc., Delayed Term Loan
    4.051%       4/12/14       Ba2       166,460    
  404    
Sun Healthcare Group, Inc., Synthetic Letter of Credit
    3.459%       4/19/14       Ba2       278,885    
  1,799    
Sun Healthcare Group, Inc., Term Loan
    4.823%       4/19/14       Ba2       1,240,980    
  983    
Vanguard Health Holding Company II LLC, Replacement Term Loan
    3.298%       9/23/11       Ba3       808,214    
                                           
  21,616    
Total Health Care Providers & Services
                            16,007,022    
        Hotels, Restaurants & Leisure – 1.0%
  1,596    
CCM Merger, Inc., Term Loan B
    4.176%       7/13/12       B+       757,962    
  975    
Cedar Fair LP, Term Loan
    2.461%       8/30/12       BB–       620,750    
  1,191    
Harrah’s Operating Company, Inc., Term Loan B2
    6.535%       1/28/15       B+       697,397    
  134    
Travelport LLC, Letter of Credit
    3.709%       8/23/13       Ba2       59,524    
  669    
Travelport LLC, Term Loan
    3.709%       8/23/13       Ba2       296,655    
  1,194    
Venetian Casino Resort LLC, Delayed Term Loan
    2.220%       5/23/14       B+       551,894    
  4,728    
Venetian Casino Resort LLC, Term Loan
    2.220%       5/23/14       B+       2,185,388    
  899    
Wintergames Holdings, Term Loan A
    7.970%       10/23/09       N/R       568,873    
                                           
  11,386    
Total Hotels, Restaurants & Leisure
                            5,738,443    
        Independent Power Producers & Energy Traders – 0.5%
  1,084    
NRG Energy, Inc., Credit Linked Deposit
    5.021%       2/01/13       Ba1       945,097    
  2,199    
NRG Energy, Inc., Term Loan
    2.959%       2/01/13       Ba1       1,918,012    
                                           
  3,283    
Total Independent Power Producers & Energy Traders
                            2,863,109    
        Insurance – 0.2%
  1,973    
Conseco, Inc., Term Loan
    3.825%       10/10/13       B+       1,277,598    
        Internet Software & Services – 0.1%
  1,000    
Sabre, Inc., Term Loan
    4.804%       9/30/14       B+       439,000    
        IT Services – 0.5%
  1,975    
First Data Corporation, Term Loan B1
    3.211%       9/24/14       BB–       1,278,813    
  836    
Infor Global Solutions Intermediate Holdings, Ltd., Delayed Term Loan
    5.210%       7/28/12       B+       430,422    
  819    
Infor Global Solutions Intermediate Holdings, Ltd., Term Loan
    4.210%       7/30/12       B+       421,957    
  785    
Infor Global Solutions Intermediate Holdings, Ltd., Term Loan
    5.210%       7/28/12       B+       416,475    
                                           
  4,415    
Total IT Services
                            2,547,667    
        Leisure Equipment & Products – 0.2%
  388    
Herbst Gaming, Inc., Delayed Term Loan
    10.500%       12/02/11       Caa3       110,696    
  447    
Herbst Gaming, Inc., Term Loan
    10.500%       12/02/11       CCC–       127,402    
  4,000    
Wimar OpCo LLC, Term Loan, (7)
    6.500%       1/03/12       N/R       966,666    
                                           
  4,835    
Total Leisure Equipment & Products
                            1,204,764    
                                           

         
28
       
         


 

                                           
          Weighted
                   
Principal
        Average
                   
Amount (000)     Description (1)   Coupon     Maturity (5)     Ratings (4)     Value   
        Machinery – 0.4%
$ 2,977    
LyondellBasell Finance Company, Term Loan B2
    7.000%       12/22/14       B1     $ 1,317,535    
  1,761    
Oshkosh Truck Corporation, Term Loan
    3.425%       12/06/13       BB+       1,037,387    
                                           
  4,738    
Total Machinery
                            2,354,922    
        Media – 2.6%
  4,138    
Cequel Communications LLC, Term Loan B
    6.164%       11/05/13       BB–       2,644,359    
  4,782    
Charter Communications Operating Holdings LLC, Term Loan
    5.064%       3/06/14       B+       3,538,947    
  1,500    
Citadel Broadcasting Corporation, Term Loan
    3.650%       6/12/14       BB–       615,000    
  1,153    
Gray Television, Inc., Term Loan B
    4.827%       12/31/14       B       461,224    
  970    
Idearc, Inc., Term Loan
    3.418%       11/17/14       B2       306,291    
  798    
Metro-Goldwyn-Mayer Studios, Inc., Term Loan B
    4.241%       4/08/12       N/R       341,123    
  1,940    
Neilsen Finance LLC, Term Loan
    4.244%       8/09/13       Ba3       1,320,404    
  944    
Philadelphia Newspapers, Term Loan
    16.500%       6/29/13       N/R       212,423    
  983    
Readers Digest Association, Inc., Term Loan
    4.084%       3/03/14       B2       338,963    
  5,925    
Tribune Company, Term Loan B, (7), (8)
    5.250%       6/04/14       Caa3       1,692,858    
  890    
Tribune Company, Term Loan X, (7), (8)
    7.084%       6/04/09       Caa1       250,953    
  7,000    
Univision Communications, Inc., Term Loan
    2.711%       9/29/14       B2       2,877,777    
  272    
Valassis Communications, Inc., Delayed Term Loan
    3.210%       3/02/14       BB       134,707    
  821    
Valassis Communications, Inc., Tranche B, Term Loan
    3.210%       3/02/14       BB       406,247    
                                           
  32,116    
Total Media
                            15,141,276    
        Metals & Mining – 0.2%
  1,617    
John Maneely Company, Term Loan
    7.706%       12/08/13       B+       929,842    
        Oil, Gas & Consumable Fuels – 0.4%
  1,985    
CCS Income Trust, Term Loan
    3.461%       11/14/13       BB–       1,336,541    
  2,382    
Western Refining, Inc., Term Loan
    9.250%       5/30/14       BB–       1,188,550    
                                           
  4,367    
Total Oil, Gas & Consumable Fuels
                            2,525,091    
        Paper & Forest Products – 0.4%
  2,634    
Georgia-Pacific Corporation, Term Loan B
    4.108%       12/21/12       BB+       2,164,664    
        Pharmaceuticals – 0.3%
  2,000    
Royalty Pharma Finance Trust, Unsecured Term Loan
    7.750%       5/21/15       Baa3       1,500,000    
        Real Estate Management & Development – 0.5%
  1,605    
LNR Property Corporation, Term Loan B
    6.690%       7/12/11       BB       762,235    
  2,955    
Realogy Corporation, Delayed Term Loan
    6.727%       10/10/13       Caa1       1,864,172    
                                           
  4,560    
Total Real Estate Management & Development
                            2,626,407    
        Road & Rail – 0.4%
  5,419    
Swift Transportation Company, Inc., Term Loan
    5.832%       5/10/14       B+       1,981,662    
        Software – 0.2%
  2,519    
Dealer Computer Services, Inc., Term Loan
    2.461%       10/26/12       BB       1,215,459    
        Specialty Retail – 1.4%
  3,043    
Blockbuster, Inc., Tranche B, Term Loan
    6.244%       8/20/11       B1       1,834,816    
  5,242    
Burlington Coat Factory Warehouse Corporation, Term Loan
    4.450%       5/28/13       B2       2,329,674    
  3,424    
Michaels Stores, Inc., Term Loan
    3.523%       10/31/13       B       1,798,685    
  2,400    
Toys ‘R‘ Us – Delaware, Inc., Term Loan B
    4.831%       7/19/12       BB–       1,132,500    
  1,500    
TRU 2005 RE Holding Co I LLC, Term Loan
    4.868%       12/08/09       B3       706,249    
                                           
  15,609    
Total Specialty Retail
                            7,801,924    
        Wireless Telecommunication Services – 0.5%
  4,000    
Asurion Corporation, Term Loan
    5.197%       7/03/14       N/R       2,732,499    
                                           
$ 156,840    
Total Variable Rate Senior Loan Interests (cost $150,429,107)
                            89,026,332    
                                           
                                           

         
    29    
         


 

 
     
   JPC
  Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2008

                                           
Principal
                             
Amount (000)     Description (1)   Coupon     Maturity     Ratings (4)     Value   
        Convertible Bonds – 10.8% (7.4% of Total Investments)
        Aerospace & Defense – 0.2%
$ 160    
AAR Corporation, Convertible Bond
    1.750%       2/01/26       BB     $ 124,000    
  250    
Alliant Techsystems, Inc., Convertible Bonds
    2.750%       9/15/11       BB–       246,875    
  250    
Alliant Techsystems, Inc., Convertible Bonds
    2.750%       2/15/24       BB–       286,875    
  600    
L-3 Communications Corporation, Convertible Bond
    3.000%       8/01/35       BB+       600,000    
                                           
  1,260    
Total Aerospace & Defense
                            1,257,750    
                                           
        Airlines – 0.3%
  2,375    
JetBlue Airways Corporation
    3.750%       3/15/35       CCC       1,840,625    
        Auto Components – 0.1%
  425    
Magna International Inc., Class A
    6.500%       3/31/10       N/R       328,777    
        Beverages – 0.1%
  300    
Molson Coors Brewing Company, Senior Convertible Notes
    2.500%       7/30/13       BBB       359,250    
        Biotechnology – 0.4%
  650    
Amgen Inc.
    0.125%       2/01/11       A+       628,063    
  1,500    
Amgen Inc.
    0.375%       2/01/13       A+       1,434,375    
  250    
Invitrogen Corporation
    2.000%       8/01/23       BB+       235,313    
                                           
  2,400    
Total Biotechnology
                            2,297,751    
        Capital Markets – 0.1%
  250    
BlackRock Inc.
    2.625%       2/15/35       AA–       351,250    
        Chemicals – 0.0%
  100    
Ferro Corporation, Convertible Bond
    6.500%       8/15/13       B       48,875    
        Commercial Banks – 0.2%
  100    
SVB Financial Group, Convertible Bond
    3.875%       4/15/11       A3       79,625    
  400    
U.S. Bancorp, Convertible Bonds
    1.358%       12/11/35       AA       367,000    
  550    
U.S. Bancorp, Convertible Bonds
    0.700%       9/20/36       AA       490,710    
                                           
  1,050    
Total Commercial Banks
                            937,335    
        Commercial Services & Supplies – 0.6%
  3,432    
Allied Waste Industries Inc., Convertible Debentures
    4.250%       4/15/34       BBB–       3,088,800    
        Communications Equipment – 0.4%
  400    
Ciena Corporation, Convertible Bond
    0.875%       6/15/17       B+       143,000    
  200    
CommScope Inc.
    1.000%       3/15/24       B       200,000    
  200    
Comverse Technology, Inc.
    0.000%       5/15/23       B+       192,000    
  1,000    
Lucent Technologies Inc., Series B
    2.875%       6/15/25       BB–       471,250    
  900    
Lucent Technologies Inc.
    2.875%       6/15/23       BB–       751,500    
  450    
Nortel Networks Corp. (9)
    1.750%       4/15/12       B–       66,375    
  150    
Nortel Networks Corp. (9)
    1.750%       4/15/12       B–       22,125    
  600    
Nortel Networks Corp. (9)
    2.125%       4/15/14       B–       87,000    
  150    
Nortel Networks Corp. (9)
    2.125%       4/15/14       B–       21,750    
                                           
  4,050    
Total Communications Equipment
                            1,955,000    
        Computers & Peripherals – 0.4%
  1,250    
EMC Corporation, Convertible Bonds, 144A
    1.750%       12/01/11       A–       1,226,563    
  600    
EMC Corporation, Convertible Bonds, 144A
    1.750%       12/01/13       A–       564,000    
  150    
EMC Corporation, Convertible Bonds, 144A
    1.750%       12/01/13       A–       141,000    
  700    
Sandisk Corporation, Convertible Bond
    1.000%       5/15/13       B       283,500    
                                           
  2,700    
Total Computers & Peripherals
                            2,215,063    
        Containers & Packaging – 0.1%
  350    
Sealed Air Corporation, 144A
    3.000%       6/30/33       BBB–       316,750    
                                           
                                           
        Diversified Financial Services – 0.1%
  150    
Leucadia National Corporation, Convertible Bonds
    3.750%       4/15/14       BB–       148,500    
  350    
NASDAQ Stock Market Inc., Convertible Bond
    2.500%       8/15/13       BB+       260,750    
  500    
Total Diversified Financial Services
                            409,250    
                                           

         
30
       
         


 

                                           
Principal
                             
Amount (000)     Description (1)   Coupon     Maturity     Ratings (4)     Value   
        Diversified Telecommunication Services – 0.2%
$ 1,100    
Qwest Communications International Inc., Convertible Bond
    3.500%       11/15/25       B+     $ 930,875    
        Electric Utilities – 0.0%
  250    
Covanta Holding Corporation, Convertible Bonds
    1.000%       2/01/27       B1       228,750    
        Electrical Equipment – 0.1%
  450    
General Cable Corporation, Convertible Bonds
    1.000%       10/15/12       B+       282,938    
        Electronic Equipment & Instruments – 0.1%
  300    
Anixter International Inc., Convertible Bond
    0.000%       7/07/33       BB–       156,375    
  250    
Itron Inc.
    2.500%       8/01/26       B–       269,375    
  150    
Roper Industries Inc.
    1.481%       1/15/34       BB+       81,188    
                                           
  700    
Total Electronic Equipment & Instruments
                            506,938    
        Energy Equipment & Services – 0.9%
  150    
Cooper Cameron Corporation
    1.500%       5/15/24       BBB+       189,938    
  1,250    
Nabors Industries Inc., Convertible Bond Series 144A
    0.940%       5/15/11       BBB+       1,035,938    
  350    
Nabors Industries Inc., Convertible Bond Series 144A
    0.940%       5/15/11       BBB+       290,063    
  200    
Schlumberger Limited
    2.125%       6/01/23       A+       249,750    
  250    
SESI LLC, Convertible Bond, 144A
    1.500%       12/15/26       BB+       169,688    
  700    
Transocean Inc., Convertible Bond
    1.625%       12/15/37       BBB+       613,375    
  1,800    
Transocean Inc.
    1.500%       12/15/37       BBB+       1,467,000    
  950    
Transocean Inc.
    1.500%       12/15/37       BBB+       736,250    
                                           
  5,650    
Total Energy Equipment & Services
                            4,752,002    
        Food Products – 0.2%
  250    
Archer Daniels Midland Company, Convertible Bonds
    0.875%       2/15/14       A       245,000    
  350    
Archer Daniels Midland Company, Convertible Bonds
    0.875%       2/15/14       A       343,000    
  250    
Chiquita Brands International Inc., Convertible Bond
    4.250%       8/15/16       B–       200,000    
  300    
Smithfield Foods Inc., Convertible Bond
    4.000%       6/30/13       B       222,000    
  250    
Tyson Foods inc., Convertible Bond
    3.250%       10/15/13       BB       202,813    
                                           
  1,400    
Total Food Products
                            1,212,813    
        Health Care Equipment & Supplies – 0.7%
  300    
Advanced Medical Optics
    2.500%       7/15/24       B–       244,500    
  250    
Advanced Medical Optics
    3.250%       8/01/26       B–       88,750    
  400    
American Medical Systems Holdings, Convertible Bond
    3.250%       7/01/36       B       272,500    
  150    
Beckman Coulter Inc., Convertible Bonds, 144A
    2.500%       12/15/36       BBB       141,188    
  1,250    
Hologic Inc.
    2.000%       12/15/37       B+       732,813    
  350    
Kinetic Concepts Inc., Convertible Bond
    3.250%       4/15/15       B+       194,250    
  1,300    
Medtronic, Inc., Convertible Bond
    1.500%       4/15/11       AA–       1,215,500    
  1,400    
Medtronic, Inc., Convertible Bond
    1.625%       4/15/13       AA–       1,242,500    
                                           
  5,400    
Total Health Care Equipment & Supplies
                            4,132,001    
        Health Care Providers & Services – 0.8%
  400    
Laboratory Corporation of America Holdings
    0.000%       9/11/21       BBB–       358,000    
  150    
LifePoint Hospitals Inc., Convertible Bond
    3.250%       8/15/25       B1       108,563    
  350    
Lifepoint Hospitals, Inc., Convertible Bonds
    3.500%       5/15/14       B       238,438    
  6,150    
Omnicare, Inc.
    3.250%       12/15/35       B+       3,482,438    
                                           
  7,050    
Total Health Care Providers & Services
                            4,187,439    
        Hotels, Restaurants & Leisure – 0.6%
  600    
Carnival Corporation
    2.000%       4/15/21       A–       544,500    
  500    
International Game Technology
    2.600%       12/15/36       BBB       475,000    
  2,605    
Punch Taverns Corporation, Convertible Bonds
    5.000%       12/14/10       N/R       2,487,194    
                                           
  3,705    
Total Hotels, Restaurants & Leisure
                            3,506,694    
        Insurance – 0.1%
  850    
Prudential Financial Inc., Convertible Bond
    0.366%       12/15/37       A+       808,775    
        Internet & Catalog Retail – 0.1%
  150    
Priceline.com, Inc., Convertible Bonds
    0.500%       9/30/11       BB–       274,313    
  150    
Priceline.com, Inc., Convertible Bonds
    0.750%       9/30/13       BB–       274,313    
                                           
  300    
Total Internet & Catalog Retail
                            548,626    
                                           
                                           

         
    31    
         


 

 
     
   JPC
  Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2008

                                           
Principal
                             
Amount (000)     Description (1)   Coupon     Maturity     Ratings (4)     Value   
        Internet Software & Services – 0.0%
$ 350    
Equinix Inc., Convertible Bond
    3.000%       10/15/14       B–     $ 208,250    
        Leisure Equipment & Products – 0.0%
  300    
Eastman Kodak Company
    3.375%       10/15/33       B2       243,375    
        Life Sciences Tools & Services – 0.1%
  250    
Apogent Technologies, Inc., Convertible Bonds
    0.621%       12/15/33       BBB+       298,525    
  200    
Charles River Laboratories International, Inc.
    2.250%       6/15/13       BB+       155,750    
  150    
Fisher Scientific International, Inc., Convertible Bonds
    2.500%       10/01/23       BBB+       220,875    
                                           
  600    
Total Life Sciences Tools & Services
                            675,150    
        Machinery – 0.1%
  50    
Actuant Corporation, Convertible Bond
    2.000%       11/15/23       B+       50,563    
  750    
Danaher Corporation, Convertible Bonds
    0.000%       1/22/21       A+       661,875    
                                           
  800    
Total Machinery
                            712,438    
        Marine – 0.0%
  250    
Horizon Lines Inc., Convertible Bonds
    4.250%       8/15/12       B–       129,375    
        Media – 0.7%
  200    
ELF Special Financing Limited, Convertible Bonds, 144A
    4.598%       6/15/09       Ba3       177,420    
  250    
Hasbro Inc.
    2.750%       12/01/21       BBB       341,875    
  200    
Interpublic Group Companies Inc., Convertible Notes
    4.250%       3/15/23       Ba3       130,750    
  1,180    
Interpublic Group Companies Inc., Convertible Notes
    4.250%       3/15/23       Ba3       771,425    
  150    
Interpublic Group Companies Inc., Convertible Notes
    4.750%       3/15/23       Ba3       87,188    
  350    
Lamar Advertising Company, Convertible
    2.875%       12/31/10       B       262,063    
  800    
Liberty Media Corporation, Convertible Bonds
    3.750%       2/15/30       BB+       216,000    
  460    
Liberty Media Corporation, Senior Debentures, Exchangeable for Motorola Common Stock
    3.500%       1/15/31       BB+       113,100    
  800    
Liberty Media Corporation, Senior Debentures, Exchangeable for PCS Common Stock, Series 1
    4.000%       11/15/29       BB+       222,000    
  800    
Omnicom Group, Inc.
    0.000%       2/07/31       A–       794,000    
  550    
Omnicom Group Inc.
    0.000%       7/01/38       A–       499,813    
  450    
Sinclair Broadcast Group, Inc., Convertible Bonds
    3.000%       5/15/27       B       243,000    
                                           
  6,190    
Total Media
                            3,858,634    
        Metals & Mining – 0.3%
  2,100    
Coeur d’Alene Mines Corporation, Convertible Bond
    1.250%       1/15/24       B–       630,000    
  2,000    
Gold Reserve, Inc., Convertible Bonds
    5.500%       6/15/22       N/R       377,500    
  550    
Newmont Mining Corporation
    1.625%       7/15/17       BBB+       587,125    
                                           
  4,650    
Total Metals & Mining
                            1,594,625    
        Multiline Retail – 0.0%
  250    
Saks, Inc., Convertible Bonds
    2.000%       3/15/24       B       97,813    
        Oil, Gas & Consumable Fuels – 0.4%
  150    
Alpha Natural Resouces Inc., Convertible Bond
    2.375%       4/15/15       B       97,125    
  600    
Chesapeake Energy Corporation, 144A
    2.750%       11/15/35       BB       381,750    
  800    
Chesapeake Energy Corporation, Convertible Bonds
    2.500%       5/15/37       BB       471,000    
  450    
Chesapeake Energy Corporation, Convertible Bonds
    2.250%       12/15/38       BB       204,188    
  500    
Massey Energy Company, Convertible Bond
    3.250%       8/01/15       BB–       273,750    
  500    
Peabody Energy Corp., Convertible Bond
    4.750%       12/15/66       Ba3       302,500    
  350    
Pioneer Natural Resouces Company, Convertible Bond
    2.875%       1/15/38       BB+       250,688    
  1,075    
USEC Inc., Convertible Bond
    3.000%       10/01/14       CCC       458,219    
                                           
  4,425    
Total Oil, Gas & Consumable Fuels
                            2,439,220    
        Paper & Forest Products – 0.0%
  250    
Rayonier Trust Holdings Inc., Convertible Bond
    3.750%       10/15/12       BBB       224,375    
        Pharmaceuticals – 0.5%
  350    
Allergan Inc., Convertible Bond
    1.500%       4/01/26       A       352,188    
  160    
Alpharma, Inc., Convertible Bonds
    2.125%       3/15/27       B+       198,000    
  500    
Myland Labs, Inc., Convertible Bonds
    1.250%       3/15/12       B+       370,000    
  400    
Myland Labs, Inc., Convertible Bonds
    3.750%       9/15/15       B+       364,000    
  150    
Teva Pharmaceutical Finance Company B.V., Series D
    1.750%       2/01/26       BBB+       165,563    
  733    
Teva Pharmaceutical Finance, Series B
    0.250%       2/01/24       BBB+       906,171    

         
32
       
         


 

                                           
Principal
                             
Amount (000)     Description (1)   Coupon     Maturity     Ratings (4)     Value   
        Pharmaceuticals (continued)
                                           
$ 550    
Watson Pharmaceuticals Inc., Convertible Bond
    1.750%       3/15/23       BB+     $ 514,250    
  142    
Wyeth, Convertible Bond
    2.621%       1/15/24       A+       141,389    
                                           
  2,985    
Total Pharmaceuticals
                            3,011,561    
        Real Estate – 0.9%
  850    
Boston Properties Limited Partnership, Convertible Bonds, 144A
    2.875%       2/15/37       A–       675,750    
  250    
Brandywine Operating Partnership, Convertible Bonds
    3.875%       10/15/26       BBB–       148,125    
  400    
BRE Properties Inc., Convertible Bond
    4.125%       8/15/26       BBB       299,000    
  500    
Developers Diversified Realty Corporation, Convertible Bonds
    3.000%       3/15/12       N/R       211,875    
  500    
Duke Realty Corporation, Series D
    3.750%       12/01/11       BBB+       287,500    
  250    
Health Care REIT, Inc., Convertible Bonds
    4.750%       12/01/26       Baa2       239,063    
  550    
Hospitality Properties Trust, Convertible Bonds
    3.800%       3/15/27       BBB       340,313    
  300    
Host Marriot LP, Convertible Bonds, 144A
    3.250%       4/15/24       BBB–       260,250    
  250    
Prologis, Convertible Bonds, 144A
    2.250%       4/01/37       BBB–       111,250    
  150    
Ventas Inc., Convertible Bond
    3.875%       11/15/11       BBB–       126,375    
  1,400    
Vornado Realty Trust, Convertible Bonds
    2.850%       4/01/27       BBB       1,039,500    
  400    
Vornado Realty, Convertible Bond
    3.875%       4/15/25       BBB       346,000    
  500    
Vornado Realty, Convertible Bond
    3.625%       11/15/26       BBB       398,750    
  450    
Weingarten Realty Investment Trust, Convertible Bonds
    3.950%       8/01/26       BBB       313,875    
                                           
  6,750    
Total Real Estate
                            4,797,626    
        Real Estate Management & Development – 0.0%
  200    
Forest City Enterprises, Inc., Convertible Bonds
    3.625%       10/15/11       B+       107,100    
        Semiconductors & Equipment – 0.4%
  700    
Intel Corporation, Convertible Bond
    2.950%       12/15/35       A–       609,875    
  1,450    
Micron Technology, Inc.
    1.875%       6/01/14       B+       480,312    
  100    
ON Semiconductor Corporation, Convertible Bonds
    0.000%       4/15/24       B+       83,874    
  400    
ON Semiconductor Corporation
    2.625%       12/15/26       B+       218,999    
  2,500    
Qimonda Finance LLC, Convertible Bond
    6.750%       3/22/13       N/A       321,874    
  300    
Xilinx Inc., Convertible Bond, 144A
    3.125%       3/15/37       BB       205,124    
  100    
Xilinx Inc., Convertible Bond, 144A
    3.125%       3/15/37       BB       68,374    
                                           
  5,550    
Total Semiconductors & Equipment
                            1,988,432    
        Software – 0.1%
  244    
Amdocs Limited
    0.500%       3/15/24       BBB       242,169    
  250    
Computer Associates International Inc., Convertible Bond, Series 144A
    1.625%       12/15/09       BB+       270,312    
  300    
Red Hat Inc., Convertible Bond
    0.500%       1/15/24       BB–       300,374    
                                           
  794    
Total Software
                            812,855    
        Specialty Retail – 0.2%
  400    
Best Buy Co., Inc.
    2.250%       1/15/22       Baa3       358,999    
  650    
TJX Companies, Inc.
    0.000%       2/13/21       A–       493,187    
  286    
United Auto Group, Inc., Convertible Bonds
    3.500%       4/01/26       B–       161,232    
                                           
  1,336    
Total Specialty Retail
                            1,013,418    
        Textiles, Apparel & Luxury Goods – 0.0%
  250    
Iconix Brand Group, Inc., Convertible Notes
    1.875%       6/30/12       B       128,749    
                                           
        Wireless Telecommunication Services – 0.3%
  250    
American Tower Corporation
    3.000%       8/15/12       BB+       363,749    
  700    
Nextel Communications, Inc., Convertible Senior Notes
    5.250%       1/15/10       BB       609,874    
  911    
NII Holdings Inc.
    3.125%       6/15/12       N/R       556,848    
                                           
  1,861    
Total Wireless Telecommunication Services
                            1,530,471    
                                           
$ 83,838    
Total Convertible Bonds (cost $81,107,533)
                            60,077,794    
                                           
                                           

         
    33    
         


 

 
     
   JPC
  Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2008

                                           
Principal
                             
Amount (000)     Description (1)   Coupon     Maturity     Ratings (4)     Value   
        Corporate Bonds – 9.2% (6.3% of Total Investments)
        Aerospace & Defense – 0.1%
$ 1,000    
Hexcel Corporation, Term Loan
    6.750%       2/01/15       B+     $ 765,000    
                                           
        Chemicals – 0.3%
  1,000    
Momentive Performance Materials
    9.750%       12/01/14       B–       430,000    
  1,400    
Rockwood Specialties Group Inc., Series WI
    7.500%       11/15/14       BB–       1,085,000    
                                           
  2,400    
Total Chemicals
                            1,515,000    
        Commercial Services & Supplies – 0.1%
  800    
Ticketmaster
    10.750%       8/01/16       BB       436,000    
        Electric Utilities – 0.1%
  1,000    
Sierra Pacific Resources, Series 2006
    6.750%       8/15/17       BB       772,641    
        Energy Equipment & Services – 0.3%
  1,500    
Pride International Inc.
    7.375%       7/15/14       BB+       1,402,500    
        Food & Staples Retailing – 0.3%
  2,000    
Stater Brothers Holdings Inc.
    8.125%       6/15/12       B+       1,820,000    
        Food Products – 0.2%
  2,243    
Dole Foods Company
    8.750%       7/15/13       B–       1,334,585    
        Health Care Providers & Services – 0.2%
  500    
Biomet Inc.
    10.000%       10/15/17       B–       482,500    
  1,200    
Select Medical Corporation
    8.449%       9/15/15       CCC+       630,000    
                                           
  1,700    
Total Health Care Providers & Services
                            1,112,500    
        Hotels, Restaurants & Leisure – 1.4%
  900    
Boyd Gaming Corporation
    7.750%       12/15/12       BB–       814,500    
  1,200    
Landry’s Restaurants Inc.
    9.500%       12/15/14       CCC+       1,206,000    
  2,000    
Pinnacle Entertainment Inc.
    8.250%       3/15/12       B+       1,530,000    
  750    
Pinnacle Entertainment Inc.
    8.750%       10/01/13       B+       596,250    
  1,750    
Seminole Hard Rock Entertainment, Inc.
    4.686%       3/15/14       BB       896,875    
  4,000    
Universal City Development Partners
    11.750%       4/01/10       B+       2,590,000    
                                           
  10,600    
Total Hotels, Restaurants & Leisure
                            7,633,625    
        Household Products – 0.2%
  1,650    
Central Garden & Pet Company, Senior Subordinate Notes
    9.125%       2/01/13       CCC+       981,750    
        Independent Power Producers & Energy Traders – 0.1%
  500    
Mirant North America LLC
    7.375%       12/31/13       B1       482,500    
        IT Services – 0.6%
  1,625    
Global Cash Access LLC
    8.750%       3/15/12       B       1,308,125    
  2,250    
Sungard Data Systems Inc.
    9.125%       8/15/13       B       1,957,500    
                                           
  3,875    
Total IT Services
                            3,265,625    
        Machinery – 0.3%
  2,000    
Greenbrier Companies, Inc.
    8.375%       5/15/15       B–       1,432,500    
        Media – 0.4%
  3,175    
Allbritton Communications Company, Series B
    7.750%       12/15/12       B       1,575,594    
  1,975    
Medianews Group Inc.
    6.375%       4/01/14       CC       135,781    
  4,000    
R.H. Donnelley Corporation
    8.875%       10/15/17       B–       620,000    
  2,000    
Young Broadcasting Inc., Senior Subordinated Note
    10.000%       3/01/11       CC       30,000    
                                           
  11,150    
Total Media
                            2,361,375    
        Metals & Mining – 0.6%
  3,700    
MagIndustries Corporation, (14)
    11.000%       12/14/12       N/R       3,508,965    
        Multi-Utilities – 0.2%
  1,600    
Dynegy Holdings, Inc., Term Loan
    8.375%       5/01/16       B       1,144,000    
                                           

         
34
       
         


 

                                           
Principal
                             
Amount (000)     Description (1)   Coupon     Maturity     Ratings (4)     Value   
        Oil, Gas & Consumable Fuels – 0.3%
$ 400    
Chaparral Energy Inc.
    8.500%       12/01/15       CCC     $ 82,000    
  1,000    
Hilcorp Energy I LP/Hilcorp Finance Company, Series 144A
    7.750%       11/01/15       BB–       710,000    
  2,000    
SemGroup LP, 144A (9)
    8.750%       11/15/15       C       80,000    
  1,000    
Whiting Petroleum Corporation
    7.000%       2/01/14       BB–       710,000    
                                           
  4,400    
Total Oil, Gas & Consumable Fuels
                            1,582,000    
        Paper & Forest Products – 1.0%
  4,000    
Georgia-Pacific Corporation
    8.125%       5/15/11       B+       3,780,000    
  2,000    
Georgia-Pacific Corporation
    7.700%       6/15/15       B+       1,530,000    
                                           
  6,000    
Total Paper & Forest Products
                            5,310,000    
        Personal Products – 0.2%
  1,500    
Prestige Brands Inc.
    9.250%       4/15/12       B–       1,387,500    
        Real Estate – 0.6%
  3,000    
Felcor Lodging Trust Inc., 144A
    4.481%       12/01/11       Ba3       1,875,000    
  1,000    
Trustreet Properties, Inc.
    7.500%       4/01/15       AAA       1,086,411    
  500    
Ventas Realty LP, Series WI
    7.125%       6/01/15       BBB–       393,750    
                                           
  4,500    
Total Real Estate
                            3,355,161    
        Semiconductors & Equipment – 0.3%
  1,600    
Avago Technologies Finance Pte Limited
    10.125%       12/01/13       BB–       1,226,000    
  2,000    
NXP BV
    5.541%       10/15/13       Caa1       672,500    
                                           
  3,600    
Total Semiconductors & Equipment
                            1,898,500    
        Software – 0.3%
  3,250    
Telcorida Technologies, Inc.
    5.621%       7/15/12       B       1,592,500    
        Specialty Retail – 0.5%
  3,000    
Warnaco Inc., Senior Notes
    8.875%       6/15/13       BB+       2,737,500    
        Textiles, Apparel & Luxury Goods – 0.4%
  3,000    
Jostens IH Corporation
    7.625%       10/01/12       B+       2,475,000    
        Wireless Telecommunication Services – 0.2%
  1,500    
IPCS, Inc.
    5.318%       5/01/13       B1       1,072,500    
                                           
$ 78,468    
Total Corporate Bonds (cost $78,977,942)
                            51,379,227    
                                           
                                           
Principal
                             
Amount (000)/
                             
Shares     Description (1)   Coupon     Maturity     Ratings (4)     Value   
        Capital Preferred Securities – 23.5% (16.1% of Total Investments)
        Capital Markets – 1.6%
  1,220    
C.A. Preferred Funding Trust
    7.000%       1/30/49       Aa3     $ 645,504    
  10,700    
Dresdner Funding Trust I, 144A
    8.151%       6/30/31       A2       4,242,400    
  1,600    
Kleinwort Benson Group PLC
    3.055%       12/31/99       N/R       824,000    
  1,600    
MUFG Capital Finance
    4.850%       7/25/56       BBB+       1,329,866    
  3,200    
UBS Preferred Funding Trust I
    8.622%       10/29/49       A1       1,933,914    
                                           
       
Total Capital Markets
                            8,975,684    
                                           
        Commercial Banks – 13.7%
  3,000    
AB Svensk Exportkredit, 144A
    6.375%       10/27/49       AA–       3,007,086    
  7,730    
Abbey National Capital Trust I
    8.963%       6/30/50       A+       6,097,347    
  2,155    
AgFirst Farm Credit Bank
    8.393%       12/15/16       A       1,564,508    
  6,500    
AgFirst Farm Credit Bank
    7.300%       12/15/53       A       6,371,443    
  1,800    
Bank One Capital III
    8.750%       9/01/30       Aa3       1,776,960    
  2,000    
BanPonce Trust I, Series A
    8.327%       2/01/27       Baa1       1,653,886    
  12,628    
Barclays Bank PLC, 144A
    8.550%       6/15/49       Aa3       6,202,028    
  1,500    
Barclays Bank PLC
    7.434%       12/15/57       Aa3       759,345    
  1,500    
BBVA International Preferred S.A., Unipersonal
    5.919%       4/18/58       Aa3       597,744    
  3,500    
Credit Agricole SA
    6.637%       5/29/49       Aa3       1,569,400    
  6,200    
First Empire Capital Trust I
    8.234%       2/01/27       A3       4,486,016    
  2,000    
First Midwest Bancorp Inc.
    6.950%       12/01/33       Baa1       1,902,008    

         
    35    
         


 

 
     
   JPC
  Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2008

                                           
Principal
                             
Amount (000)/
                             
Shares     Description (1)   Coupon     Maturity     Ratings (4)     Value   
        Commercial Banks (continued)
                                           
  6,800    
HBOS PLC, Series 144A
    6.413%       4/01/49       A1     $ 2,641,569    
  550    
HSBC Capital Funding LP, Debt
    10.176%       6/30/50       A1       449,030    
  2,450    
JPM Chase Capital XXV
    6.800%       10/01/37       Aa3       2,264,155    
  11,000    
KBC Bank Fund Trust III, 144A
    9.860%       5/02/50       A1       5,036,966    
  8,000    
North Fork Capital Trust II
    8.000%       12/15/27       Baa1       3,682,888    
  4,500    
Northgroup Preferred Capital Corporation, 144A
    6.378%       10/15/57       A1       2,122,700    
  600    
Reliance Capital Trust I, Series B
    8.170%       5/01/28       N/R       276,463    
  2,500    
Shinsei Finance II Cayman Limited, Perpetual Maturity, 144A
    7.160%       7/25/49       Baa2       521,875    
  8,000    
Sparebanken Rogaland, Notes, 144A
    6.443%       5/01/49       A2       7,051,408    
  3,300    
Standard Chartered PLC, 144A
    7.014%       1/30/58       BBB+       1,479,671    
  9,450    
Swedbank ForeningsSparbanken AB, 144A
    9.000%       9/17/50       A2       6,239,013    
  4,000    
Unicredito Italiano Capital Trust, 144A
    9.200%       4/05/51       A2       1,530,764    
  800    
Union Bank of Norway
    7.068%       11/19/49       A       945,901    
   (10)  
Union Planters Preferred Fund, 144A
    7.750%       7/15/53       A3       6,056,250    
                                           
       
Total Commercial Banks
                            76,286,424    
        Diversified Financial Services – 0.4%
  3,100    
Fulton Capital Trust I
    6.290%       2/01/36       A3       1,419,943    
  2,500    
Old Mutual Capital Funding, Notes
    8.000%       6/22/53       Baa2       1,028,125    
                                           
       
Total Diversified Financial Services
                            2,448,068    
        Diversified Telecommunication Services – 1.2%
  10    
Centaur Funding Corporation, Series B, 144A
    9.080%       4/21/20       BBB       6,419,153    
        Insurance – 5.7%
  2,300    
American General Capital II
    8.500%       7/01/30       Baa1       967,329    
  2,600    
AXA S.A., 144A
    6.463%       12/14/49       BBB+       1,137,315    
  8,000    
Great West Life & Annuity Capital I
    6.625%       11/15/34       A–       6,795,672    
  2,000    
Hartford Financial Services Group Inc.
    8.125%       6/15/68       AAA       1,054,350    
  2,000    
Liberty Mutual Group
    7.800%       3/15/37       Baa3       898,824    
  1,150    
Nationwide Financial Services Capital Trust
    7.899%       3/01/37       Baa1       522,678    
  6,500    
Nationwide Financial Services Inc.
    6.750%       5/15/67       Baa1       2,919,144    
  5,500    
Oil Insurance Limited, 144A
    7.558%       12/30/49       Baa1       2,073,066    
  7,600    
Progressive Corporation
    6.700%       6/15/67       A2       3,740,834    
  2,700    
Prudential Financial Inc.
    8.875%       6/15/68       A–       1,741,743    
  1,100    
Prudential PLC
    6.500%       6/29/49       A–       484,824    
  9,900    
QBE Capital Funding Trust II, 144A
    6.797%       6/01/49       BBB       5,601,242    
  14,600    
XL Capital, Limited
    6.500%       10/15/57       BBB–       3,360,993    
                                           
       
Total Insurance
                            31,298,014    
        Real Estate – 0.2%
  8,000    
CBG Florida REIT Corporation
    7.114%       11/15/49       Ba1       1,304,832    
        Road & Rail – 0.7%
  6,400    
Burlington Northern Santa Fe Funding Trust I
    6.613%       12/15/55       BBB       4,040,467    
        Thrifts & Mortgage Finance – 0.0%
  8,260    
Washington Mutual Preferred Funding Cayman, Series A-1, 144A (9)
    7.250%       3/15/49       C       5,781    
  947    
Washington Mutual Preferred Funding Trust II (9)
    6.665%       3/15/57       C       662    
                                           
       
Total Thrifts & Mortgage Finance
                            6,443    
                                           
       
Total Capital Preferred Securities (cost $277,417,336)
                            130,779,085    
                                           
                                           
Shares     Description (1)                     Value   
        Investment Companies – 2.0% (1.4% of Total Investments)
  42,022    
Blackrock Preferred and Corporate Income Strategies Fund
                          $ 254,653    
  444,750    
Blackrock Preferred Income Strategies Fund
                            2,895,323    
  39,612    
Blackrock Preferred Opportunity Trust
                            295,109    

         
36
       
         


 

                                           
Shares     Description (1)                     Value   
        Investment Companies (continued)
                                           
  474,760    
Flaherty and Crumrine/Claymore Preferred Securities Income Fund Inc.
                          $ 3,679,390    
  47,504    
Flaherty and Crumrine/Claymore Total Return Fund Inc.
                            382,407    
  323,537    
John Hancock Preferred Income Fund III
                            3,562,142    
                                           
       
Total Investment Companies (cost $27,547,729)
                            11,069,024    
                                           
                                           
Principal
                             
Amount (000)     Description (1)   Coupon     Maturity           Value   
        Short-Term Investments – 2.8% (2.0% of Total Investments)
$ 14,111    
Repurchase Agreement with Fixed Income Clearing Corporation, dated 12/31/08, repurchase price $14,111,420, collateralized by:
$2,620,000 U.S. Treasury Bonds, 8.875%, due 2/15/19, value $4,122,046 and $6,800,000 U.S. Treasury Bonds, 8.125%, due 8/15/19, value $10,278,880
    0.010%       1/02/09             $ 14,111,412    
  1,703    
Repurchase Agreement with Fixed Income Clearing Corporation, dated 12/31/08, repurchase price $1,703,192, collateralized by $1,105,000 U.S. Treasury Bonds, 8.875%, due 2/15/19, value $1,738,497
    0.010%       1/02/09               1,703,191    
                                           
$ 15,814    
Total Short-Term Investments (cost $15,814,603)
                            15,814,603    
                                           
                                           
       
Total Investments (cost $1,314,552,960) – 145.6%
                            810,426,577    
                                           
                                           
Shares     Description (1)                     Value   
        Common Stocks Sold Short – (0.7)%
        Chemicals – (0.1)%
  (12,200 )  
Sigma-Aldrich Corporation
                          $ (515,328 )  
                                           
        Commercial Services and Supplies – (0.1)%
  (1,700 )  
Strayer Education Inc.
                            (364,497 )  
        Health Care Equipment & Supplies – (0.3)%
  (14,300 )  
C. R. Bard, Inc.
                            (1,204,918 )  
  (6,000 )  
Chattem Inc., (2)
                            (429,180 )  
                                           
       
Total Health Care Equipment & Supplies
                            (1,634,098 )  
        Specialty Retail – (0.2)%
                                           
  (8,600 )  
AutoZone, Inc., (2)
                            (1,199,442 )  
                                           
       
Total Common Stocks Sold Short (proceeds $4,070,262)
                            (3,713,365 )  
                                           
                                           
Number of
        Notional
    Expiration
    Strike
       
Contracts     Type   Amount (11)     Date     Price     Value   
        Call Options Written – (0.1)%
  (705 )  
AngloGold Ashanti Limited
  $ (2,820,000 )     1/17/09       $40.0     $ (3,525 )  
  (174 )  
Arch Coal Inc.
    (870,000 )     1/17/09       50.0       (870 )  
  (155 )  
Arch Coal Inc.
    (852,500 )     1/17/09       55.0       (775 )  
  (660 )  
Arch Coal Inc.
    (990,000 )     4/18/09       15.0       (244,200 )  
  (1,210 )  
Barrick Gold Corporation
    (6,050,000 )     1/17/09       50.0       (6,050 )  
  (2,315 )  
BJ Services Company
    (5,208,750 )     1/17/09       22.5       (11,575 )  
  (570 )  
BP PLC
    (3,990,000 )     1/17/09       70.0       (2,850 )  
  (460 )  
Cameco Corporation
    (1,610,000 )     1/17/09       35.0       (2,300 )  
  (380 )  
Cameco Corporation
    (1,140,000 )     3/21/09       30.0       (2,850 )  
  (155 )  
Chevron Corporation
    (1,317,500 )     1/17/09       85.0       (1,163 )  
  (600 )  
eBay, Inc.
    (1,800,000 )     1/17/09       30.0       (600 )  
  (698 )  
Gold Fields Limited
    (1,047,000 )     1/17/09       15.0       (3,490 )  
  (1,260 )  
Ivanhoe Mines Ltd.
    (1,575,000 )     1/17/09       12.5       (6,300 )  
  (375 )  
KT Corporation
    (843,750 )     1/17/09       22.5       (18,750 )  
  (1,138 )  
Newmont Mining Corporation
    (5,690,000 )     1/17/09       50.0       (14,794 )  
  (401 )  
Nexen Inc.
    (1,203,000 )     1/17/09       30.0       (2,406 )  
  (2,107 )  
Republic Services Inc.
    (2,107,000 )     1/17/09       10.0       (273,910 )  
  (462 )  
Royal Dutch Shell PLC
    (3,465,000 )     1/17/09       75.0       (4,620 )  
  (1,335 )  
Smithfield Foods Inc.
    (4,005,000 )     1/17/09       30.0       (6,675 )  
  (2,070 )  
Sprint Nextel Corporation
    (1,656,000 )     2/21/09       8.0       (10,350 )  
  (450 )  
Tech Data Corporation
    (1,800,000 )     1/17/09       40.0       (2,250 )  

         
    37    
         


 

 
     
   JPC
  Nuveen Multi-Strategy Income and Growth Fund (continued)
Portfolio of INVESTMENTS December 31, 2008

                                           
Number of
        Notional
    Expiration
    Strike
       
Contracts     Type   Amount (11)     Date     Price     Value   
  (3,608 )  
Tyson Foods, Inc.
  $ (5,412,000 )     1/17/09       $15.0     $ (18,040 )  
  (1,203 )  
Tyson Foods, Inc.
    (2,105,250 )     1/17/09       17.5       (6,015 )  
  (380 )  
UBS AG
    (1,140,000 )     1/17/09       30.0       (1,900 )  
  (405 )  
UBS AG
    (1,620,000 )     1/17/09       40.0       (2,025 )  
                                           
  (23,276 )  
Total Call Options Written (premiums received $7,490,746)
    (60,317,750 )                     (648,283 )  
                                           
       
Borrowings – (26.1)% (12), (13)
    (145,545,000 )  
                                           
       
Other Assets Less Liabilities – 2.6%
    14,827,720    
                                           
       
FundPreferred Shares, at Liquidation Value – (21.3)% (12)
    (118,650,000 )  
                                           
       
Net Assets Applicable to Common Shares – 100%
  $ 556,697,649    
                                           
 
Investments in Derivatives
 
                                                                 
      Interest Rate Swaps outstanding at December 31, 2008:
 
                Fund
                Fixed Rate
          Unrealized
 
          Notional
    Pay/Receive
    Floating Rate
    Fixed Rate
    Payment
    Termination
    Appreciation
 
      Counterparty   Amount     Floating Rate     Index     (Annualized)     Frequency     Date     (Depreciation)  
        Morgan Stanley   $ 71,000,000       Receive       1-Month USD-LIBOR       3.406 %     Monthly       1/22/09     $ (164,738 )
                                                                 
                                                                 
 
             
        (1)   All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
        (2)   Non-income producing.
        (3)   Investment, or portion of investment, has been pledged to collateralize the net payment obligations under call options written.
        (4)   Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be below investment grade.
        (5)   Senior Loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a Borrower to prepay, prepayments of Senior Loans may occur. As a result, the actual remaining maturity of Senior Loans held may be substantially less than the stated maturities shown.
        (6)   Senior Loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate (“LIBOR”), or (ii) the prime rate offered by one or more major United States banks.
            Senior Loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the Agent Bank and/or Borrower prior to the disposition of a Senior Loan.
        (7)   At or subsequent to December 31, 2008, this issue was under the protection of the Federal Bankruptcy Court.
        (8)   Non-income producing. Non-income producing, in the case of a Senior Loan, generally denotes that the issuer has defaulted on the payment of principal or interest or has filed for bankruptcy.
        (9)   At or subsequent to December 31, 2008, this issue was under protection of the Federal Bankruptcy Court. As a result, the Adviser has concluded this issue is not likely to meet its interest payment obligations and has directed the custodian to cease accruing additional income and “write-off” any remaining recorded balances on the Fund’s records.
        (10)   Principal Amount (000) rounds to less than $1,000.
        (11)   For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.
        (12)   Borrowings and FundPreferred Shares, at Liquidation Value as a percentage of Total Investments are 18.0% and 14.6%, respectively.
        (13)   The Fund may pledge up to 100% of its eligible investments in the Portfolio of Investments as collateral for Borrowings. As of December 31, 2008, investments with a value of $578,069,455 have been pledged as collateral for Borrowings.
        (14)   Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Trustees.
        N/A   Not applicable/not available.
        N/R   Not rated.
        DD1   Investment, or portion of investment, purchased on a delayed delivery basis.
        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.
        ADR   American Depositary Receipt
        CORTS   Corporate Backed Trust Securities
        PPLUS   PreferredPlus Trust
        USD-LIBOR   United States Dollar-London Inter-Bank Offered Rate
See accompanying notes to financial statements.

         
38
       
         


 

 
         
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2
Portfolio of INVESTMENTS
        December 31, 2008
 
                                                   
Shares     Description (1)                           Value   
        Common Stocks – 34.5% (23.8% of Total Investments)
        Aerospace & Defense – 0.7%
  85,520    
BAE Systems PLC
                                  $ 465,411    
  11,730    
Boeing Company
                                    500,519    
  133,460    
Bombardier Inc., CLass B Shares
                                    481,083    
  1,960    
Esterline Technologies Corporation, (2)
                                    74,264    
  13,760    
Finmeccanica S.p.A.
                                    213,128    
  10,682    
Lockheed Martin Corporation
                                    898,143    
  14,250    
Orbital Sciences Corporation, (2)
                                    278,303    
  17,460    
Raytheon Company
                                    891,158    
  33,800    
Thales S.A. 
                                    1,415,653    
  6,050    
United Technologies Corporation
                                    324,280    
                                                   
       
Total Aerospace & Defense
                                    5,541,942    
        Air Freight & Logistics – 0.1%
  10,480    
FedEx Corporation
                                    672,292    
        Airlines – 0.0%
  18,380    
Continental Airlines, Inc., (2)
                                    331,943    
  6,150    
UAL Corporation, (2)
                                    67,773    
                                                   
       
Total Airlines
                                    399,716    
        Auto Components – 0.2%
  24,990    
Advance Auto Parts, Inc. 
                                    840,914    
  44,130    
Aisin Seiki Company Limited
                                    632,060    
  5,160    
Magna International Inc., Class A
                                    154,439    
                                                   
       
Total Auto Components
                                    1,627,413    
        Automobiles – 0.3%
  26,500    
Daimler-Chrysler AG
                                    1,014,420    
  9,670    
Toyota Motor Corporation
                                    632,805    
  45,250    
Yamaha Motor Company Limited
                                    476,135    
                                                   
       
Total Automobiles
                                    2,123,360    
        Beverages – 1.0%
  1,710    
Boston Beer Company, (2)
                                    48,564    
  107,935    
Coca Cola Amatil Limited
                                    693,601    
  7,530    
Coca-Cola Company
                                    340,883    
  20,380    
Diageo PLC, Sponsored ADR
                                    1,156,361    
  51,280    
Fomento Economico Mexicano S.A.
                                    1,545,066    
  231,690    
Foster’s Group Limited
                                    891,097    
  54,510    
Heineken N.V.
                                    1,668,918    
  22,260    
Molson Coors Brewing Company, Class B
                                    1,088,959    
  17,592    
Pepsi Bottling Group, Inc. 
                                    395,996    
  6,710    
PepsiCo, Inc. 
                                    367,507    
  8,920    
SABMiller PLC
                                    149,792    
                                                   
       
Total Beverages
                                    8,346,744    
        Biotechnology – 0.5%
  13,950    
Alnylam Pharmaceuticals, Inc., (2)
                                    344,984    
  6,890    
Amgen Inc., (2)
                                    397,898    
  12,560    
Cephalon, Inc., (2)
                                    967,622    
  7,590    
Emergent BioSolutions, Inc., (2)
                                    198,175    
  6,430    
Genentech, Inc., (2)
                                    533,111    
  15,770    
Genzyme Corporation, (2)
                                    1,046,655    
  4,980    
ISIS Pharmaceuticals, Inc., (2)
                                    70,616    
  14,930    
Novo-Nordisk A/S
                                    767,253    
                                                   
       
Total Biotechnology
                                    4,326,314    
                                                   

         
    39    
         


 

 
     
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS December 31, 2008

                                                   
Shares     Description (1)                           Value   
        Capital Markets – 0.7%
  27,483    
Bank of New York Company, Inc. 
                                  $ 778,593    
  12,394    
Calamos Asset Management, Inc. Class A
                                    91,716    
  175,040    
Daiwa Securities Group Inc. 
                                    1,050,821    
  3,490    
Franklin Resources, Inc. 
                                    222,592    
  16,790    
Invesco LTD
                                    242,448    
  21,330    
Legg Mason, Inc. 
                                    467,340    
  4,910    
Stifel Financial Corporation, (2)
                                    225,124    
  19,000    
TD Ameritrade Holding Corporation, (2)
                                    270,750    
  158,760    
UBS AG, (2), (3)
                                    2,270,268    
                                                   
       
Total Capital Markets
                                    5,619,652    
        Chemicals – 0.9%
  9,950    
Bayer AG
                                    579,771    
  18,260    
Celanese Corporation, Series A
                                    226,972    
  5,890    
CF Industries Holdings, Inc. 
                                    289,552    
  5,010    
Lubrizol Corporation
                                    182,314    
  97,180    
Mitusi Chemicals
                                    361,128    
  27,700    
Mosaic Company
                                    958,420    
  136,990    
Nissan Chemical Industries Limited
                                    1,327,868    
  18,100    
Potash Corporation of Saskatchewan
                                    1,312,818    
  6,350    
Scotts Miracle Gro Company
                                    188,722    
  2,510    
Syngenta AG, DD1
                                    487,606    
  5,640    
Terra Industries, Inc. 
                                    94,019    
  16,560    
Wacker Chemie AG
                                    1,773,293    
                                                   
       
Total Chemicals
                                    7,782,483    
        Commercial Banks – 1.6%
  41,010    
Banco Santander Central S.A
                                    389,185    
  55,670    
Barclays PLC
                                    126,532    
  10,470    
BB&T Corporation
                                    287,506    
  6,850    
Commerce Bancshares Inc. 
                                    301,058    
  11,180    
Community Bank System Inc. 
                                    272,680    
  34,440    
Credit Agricole S.A.
                                    386,835    
  216,240    
DnB NOR ASA
                                    857,962    
  2,450    
Goldman Sachs Group, Inc. 
                                    206,756    
  4,330    
Hancock Holding Company
                                    196,842    
  120,840    
Hang Seng Bank
                                    1,595,402    
  2,900    
Hatteras Financial Corp. 
                                    77,140    
  71,460    
HSBC Holdings PLC
                                    699,392    
  58,050    
IntesaSanpaolo SpA
                                    210,878    
  4,020    
Investors Bancorp, Inc., (2)
                                    53,989    
  51,850    
JPMorgan Chase & Co. 
                                    1,634,831    
  63,210    
KeyCorp. 
                                    538,549    
  22,900    
Lloyds TSB Group PLC, Sponsored ADR
                                    176,330    
  424,820    
Nishi-Nippon City Bank Limited
                                    1,235,608    
  12,340    
Nordic Baltic Holdings FDR
                                    87,956    
  14,830    
Northern Trust Corporation
                                    773,236    
  14,060    
PNC Financial Services Group, Inc. 
                                    688,940    
  5,203    
Prosperity Bancshares, Inc. 
                                    153,957    
  49,740    
Standard Chartered PLC
                                    636,475    
  2,150    
SVB Financial Group, (2)
                                    56,395    
  6,190    
UMB Financial Corporation
                                    304,177    
  59,810    
United Overseas Bank Limited
                                    540,504    
  27,920    
Wells Fargo & Company
                                    823,082    
                                                   
       
Total Commercial Banks
                                    13,312,197    
        Commercial Services & Supplies – 0.7%
  55,100    
Corrections Corporation of America, (2)
                                    901,436    
  3,680    
Dun and Bradstreet Inc. 
                                    284,096    
  3,000    
GeoEye, Inc., (2)
                                    57,690    
  138,915    
Republic Services, Inc. 
                                    3,443,703    
  203,000    
Toppan Printing Company Limited
                                    1,568,240    
                                                   
       
Total Commercial Services & Supplies
                                    6,255,165    
                                                   

         
40
       
         


 

                                                   
Shares     Description (1)                           Value   
        Communications Equipment – 0.3%
  5,160    
Comtech Telecom Corporation, (2)
                                  $ 236,431    
  7,600    
Interdigital Inc., (2)
                                    209,000    
  9,110    
NeuStar, Inc., (2)
                                    174,274    
  44,990    
QUALCOMM Inc. 
                                    1,611,992    
                                                   
       
Total Communications Equipment
                                    2,231,697    
        Computers & Peripherals – 0.5%
  20,380    
Apple, Inc., (2)
                                    1,739,433    
  8,140    
Data Domain, Inc., (2)
                                    153,032    
  40,860    
Hewlett-Packard Company
                                    1,482,809    
  8,630    
International Business Machines Corporation (IBM)
                                    726,301    
                                                   
       
Total Computers & Peripherals
                                    4,101,575    
        Construction & Engineering – 0.5%
  239,930    
AMEC PLC
                                    1,732,097    
  19,950    
Fluor Corporation
                                    895,157    
  99,600    
JGC Corporation
                                    1,490,608    
  13,470    
Quanta Services Incorporated, (2)
                                    266,706    
                                                   
       
Total Construction & Engineering
                                    4,384,568    
        Consumer Finance – 0.3%
  8,410    
MasterCard, Inc. 
                                    1,202,041    
  22,370    
Visa Inc. 
                                    1,173,307    
                                                   
       
Total Consumer Finance
                                    2,375,348    
        Containers & Packaging – 0.1%
  7,990    
Owens-Illinois, Inc., (2)
                                    218,367    
  14,530    
Packaging Corp. of America
                                    195,574    
                                                   
       
Total Containers & Packaging
                                    413,941    
        Distributors – 0.1%
  60,800    
Jardine Cycle & Carriage Limited
                                    404,358    
  23,740    
Unilever PLC
                                    545,302    
                                                   
       
Total Distributors
                                    949,660    
        Diversified Consumer Services – 0.2%
  17,180    
Apollo Group, Inc., (2)
                                    1,316,332    
  3,890    
ITT Educational Services, Inc., (2)
                                    369,472    
                                                   
       
Total Diversified Consumer Services
                                    1,685,804    
        Diversified Financial Services – 0.5%
  26,820    
Citigroup Inc. 
                                    179,962    
  23,060    
Deutsche Boerse AG
                                    1,668,368    
  10,630    
Eaton Vance Corporation
                                    223,336    
  92,420    
ING Groep N.V., Ordinary Shares
                                    1,017,169    
  21,130    
ING Groep N.V.
                                    234,543    
  24,030    
New York Stock Exchange Euronext
                                    657,941    
  2,290    
Orix Corporation
                                    130,761    
                                                   
       
Total Diversified Financial Services
                                    4,112,080    
        Diversified Telecommunication Services – 1.5%
  34,980    
AT&T Inc. 
                                    996,930    
  8,440    
Cbeyond Inc., (2)
                                    134,871    
  22,150    
Embarq Corporation
                                    796,514    
  21,130    
France Telecom S.A.
                                    593,119    
  43,300    
KT Corporation, Sponsored ADR, (3)
                                    635,211    
  590    
Nippon Telegraph and Telephone Corporation, ADR
                                    3,046,001    
  295,000    
Sprint Nextel Corporation, (2), (3)
                                    539,850    
  3,270,000    
Telecom Italia S.p.A.
                                    3,723,092    
  26,670    
Telefonica SA
                                    1,797,291    
                                                   
       
Total Diversified Telecommunication Services
                                    12,262,879    
                                                   
                                                   

         
    41    
         


 

 
     
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS December 31, 2008

                                                   
Shares     Description (1)                           Value   
        Electric Utilities – 1.9%
  196,500    
Centrais Electricas Brasileiras S.A., ADR, (2)
                                  $ 2,037,469    
  26,910    
Chubu Electric Power Inc. 
                                    819,620    
  41,800    
E.ON A.G., Sponsored ADR
                                    1,628,072    
  35,460    
Edison International
                                    1,138,975    
  10,320    
El Paso Electric Company, (2)
                                    186,689    
  11,890    
FPL Group, Inc. 
                                    598,424    
  58,000    
IdaCorp, Inc., (3)
                                    1,708,100    
  382,100    
Korea Electric Power Corporation, Sponsored ADR
                                    4,436,181    
  14,980    
PG&E Corporation
                                    579,876    
  211,100    
PNM Resources Inc. 
                                    2,127,888    
  14,230    
Progress Energy, Inc. 
                                    567,066    
  8,020    
Southern Company
                                    296,740    
                                                   
       
Total Electric Utilities
                                    16,125,100    
        Electrical Equipment – 0.4%
  99,600    
ABB Limited, (2)
                                    1,518,913    
  34,294    
Emerson Electric Co.
                                    1,255,503    
  1,000    
First Solar Inc., (2)
                                    137,960    
  8,710    
GrafTech International Ltd., (2)
                                    72,467    
  114,680    
Hitachi Limited
                                    445,064    
  21,080    
Nikon Corporation
                                    253,014    
                                                   
       
Total Electrical Equipment
                                    3,682,921    
        Electronic Equipment & Instruments – 0.3%
  4,400    
Dolby Laboratories, Inc., (2)
                                    144,144    
  10,154    
Itron Inc., (2)
                                    647,216    
  6,228    
Multi Fineline Electronix, Inc., (2)
                                    72,805    
  4,460    
SunPower Corporation, (2)
                                    165,020    
  67,000    
Tech Data Corporation, (2), (3)
                                    1,195,280    
  3,991    
Teledyne Technologies Inc., (2)
                                    177,799    
  3,470    
Thermo Fisher Scientific, Inc., (2)
                                    118,223    
                                                   
       
Total Electronic Equipment & Instruments
                                    2,520,487    
        Energy Equipment & Services – 0.7%
  328,000    
BJ Services Company, (3)
                                    3,827,760    
  3,880    
Cabot Oil & Gas Corporation
                                    100,880    
  23,950    
Cooper Cameron Corporation, (2)
                                    490,975    
  9,600    
Dresser Rand Group, Inc., (2)
                                    165,600    
  20,700    
FMC Technologies Inc., (2)
                                    493,281    
  12,990    
Matrix Service Company, (2)
                                    99,633    
  5,700    
Noble Corporation
                                    125,913    
  8,300    
Pride International Inc., (2)
                                    132,634    
  12,740    
Superior Well Services, Inc., (2)
                                    127,400    
  14,300    
Technip S.A.
                                    439,066    
                                                   
       
Total Energy Equipment & Services
                                    6,003,142    
        Food & Staples Retailing – 0.7%
  19,790    
Casino Guichard-Perrachon S.A.
                                    1,508,283    
  9,330    
Costco Wholesale Corporation
                                    489,825    
  91,310    
Koninklijke Ahold N.V.
                                    1,125,205    
  27,320    
Kroger Co. 
                                    721,521    
  4,090    
Nash Finch Company
                                    183,600    
  36,810    
Safeway Inc. 
                                    874,974    
  12,980    
Wal-Mart Stores, Inc. 
                                    727,659    
  64,960    
William Morrison Supermarkets PLC
                                    263,305    
                                                   
       
Total Food & Staples Retailing
                                    5,894,372    
        Food Products – 2.2%
  5,960    
Campbell Soup Company
                                    178,860    
  7,980    
Diamond Foods Inc. 
                                    160,797    
  7,980    
Flowers Foods Inc. 
                                    194,393    
  10,480    
General Mills, Inc. 
                                    636,660    
  29,780    
H.J. Heinz Company
                                    1,119,728    
  211,720    
Jeronimo Martins SGPS
                                    1,175,899    
  11,110    
Monsanto Company
                                    781,589    

         
42
       
         


 

                                                   
Shares     Description (1)                           Value   
        Food Products (continued)
                                                   
  22,510    
Nestle S.A.
                                  $ 891,353    
  377,700    
Smithfield Foods, Inc., (2), (3)
                                    5,314,239    
  679,300    
Tyson Foods, Inc., Class A, (3)
                                    5,950,668    
  75,860    
Unilever PLC
                                    1,746,297    
                                                   
       
Total Food Products
                                    18,150,483    
        Gas Utilities – 0.1%
  15,480    
E.ON AG
                                    607,856    
  15,270    
Spectra Energy Corporation
                                    240,350    
                                                   
       
Total Gas Utilities
                                    848,206    
        Health Care Equipment & Supplies – 0.7%
  25,240    
Baxter International Inc. 
                                    1,352,612    
  3,760    
Conmed Corporation, (2)
                                    90,014    
  8,570    
Covidien Limited
                                    310,577    
  34,700    
Fresenius Medical Care, ADR
                                    1,595,220    
  5,300    
Gen-Probe, Inc., (2)
                                    227,052    
  7,230    
Masimo Corporation, (2)
                                    215,671    
  110,000    
Paramount Bed Company Limited
                                    1,496,186    
  9,240    
Saint Jude Medical Inc., (2)
                                    304,550    
  8,530    
Volcano Corporation, (2)
                                    127,950    
                                                   
       
Total Health Care Equipment & Supplies
                                    5,719,832    
        Health Care Providers & Services – 0.3%
  3,250    
Emergency Medical Services Corporation, (2)
                                    118,983    
  30,018    
Express Scripts, Inc., (2)
                                    1,650,390    
  43,000    
Health Net Inc., (2)
                                    468,270    
  18,650    
Omnicare, Inc. 
                                    517,724    
  9,820    
Pharmerica Corporation, (2)
                                    153,879    
                                                   
       
Total Health Care Providers & Services
                                    2,909,246    
        Hotels, Restaurants & Leisure – 0.3%
  20,080    
Burger King Holdings Inc. 
                                    479,510    
  29,580    
McDonald’s Corporation
                                    1,839,580    
                                                   
       
Total Hotels, Restaurants & Leisure
                                    2,319,090    
        Household Durables – 0.0%
  12,030    
Jarden Corporation, (2)
                                    138,345    
  5,330    
MDC Holdings Inc. 
                                    161,499    
                                                   
       
Total Household Durables
                                    299,844    
        Household Products – 0.2%
  17,030    
Colgate-Palmolive Company
                                    1,167,236    
  11,980    
Reckitt and Benckiser, DD1
                                    448,901    
                                                   
       
Total Household Products
                                    1,616,137    
        Industrial Conglomerates – 0.2%
  13,925    
East Asiatic Co LTD
                                    474,153    
  21,450    
General Electric Company
                                    347,490    
  300    
Keppel Corporation
                                    911    
  26,080    
Mitsubishi Corporation
                                    369,399    
  4,830    
Teleflex Inc. 
                                    241,983    
  22,920    
Walter Industries Inc. 
                                    401,329    
                                                   
       
Total Industrial Conglomerates
                                    1,835,265    
        Insurance – 1.1%
  12,240    
Ace Limited
                                    647,741    
  22,618    
AFLAC Incorporated
                                    1,036,809    
  11,950    
Amtrust Financial Services, Inc. 
                                    138,620    
  7,720    
Arch Capital Group Limited, (2)
                                    541,172    
  4,640    
Aspen Insurance Holdings Limited
                                    112,520    
  4,840    
Assurant Inc. 
                                    145,200    
  12,060    
AXA
                                    270,694    
  12,270    
Axis Capital Holdings Limited
                                    357,302    

         
    43    
         


 

 
     
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS December 31, 2008

                                                   
Shares     Description (1)                           Value   
        Insurance (continued)
                                                   
  12,090    
Chubb Corporation
                                  $ 616,590    
  1,220    
Fairfax Financial Holdings Limited
                                    382,360    
  3,030    
Fairfax Financial Holdings Limited
                                    957,230    
  13,060    
HCC Insurance Holdings Inc. 
                                    349,355    
  326,590    
Mapfre S.A.
                                    1,113,812    
  16,110    
Mitsui Sumitomo Insurance Company Limited, DD1
                                    512,317    
  1,840    
Navigators Group, Inc., (2)
                                    101,034    
  20,160    
Prudential Corporation PLC
                                    122,376    
  21,650    
SCOR SE
                                    500,189    
  12,500    
Travelers Companies, Inc. 
                                    565,000    
  22,360    
WR Berkley Corporation
                                    693,160    
  1,415    
Zurich Financial Services AG
                                    309,151    
                                                   
       
Total Insurance
                                    9,472,632    
        Internet Software & Services – 0.4%
  90,000    
eBay Inc., (2), (3)
                                    1,256,400    
  14,400    
Equinix Inc., (2)
                                    765,936    
  540    
Google Inc., Class A, (2)
                                    166,131    
  17,930    
Sohu.com Inc., (2)
                                    848,806    
  13,520    
Switch & Data Facilities Company, Inc., (2)
                                    99,913    
  5,100    
Vocus, Inc., (2)
                                    92,871    
                                                   
       
Total Internet Software & Services
                                    3,230,057    
        IT Services – 0.1%
  29,800    
Accenture Limited
                                    977,142    
  13,240    
CGI Group Inc., (2)
                                    103,272    
  16,220    
TNS Inc., (2)
                                    152,306    
                                                   
       
Total IT Services
                                    1,232,720    
        Leisure Equipment & Products – 0.1%
  25,200    
Hasbro, Inc. 
                                    735,084    
  12,780    
Marvel Entertainment Inc., (2)
                                    392,985    
                                                   
       
Total Leisure Equipment & Products
                                    1,128,069    
        Life Sciences Tools & Services – 0.1%
  1,440    
Bio-Rad Laboratories Inc., (2)
                                    108,446    
  1,730    
Dionex Corporation, (2)
                                    77,591    
  15,250    
Illumina Inc., (2)
                                    397,263    
                                                   
       
Total Life Sciences Tools & Services
                                    583,300    
        Machinery – 0.4%
  56,100    
ABB Limited
                                    842,061    
  28,250    
AGCO Corporation, (2)
                                    666,418    
  4,550    
Badger Meter Inc. 
                                    132,041    
  6,230    
Cummins Inc. 
                                    166,528    
  11,590    
Flowserve Corporation
                                    596,885    
  6,712    
Harsco Corporation
                                    185,788    
  7,900    
Robbins & Myers, Inc. 
                                    127,743    
  6,040    
SPX Corporation
                                    244,922    
                                                   
       
Total Machinery
                                    2,962,386    
        Marine – 0.2%
  196,780    
Kawasaki Kisen Kaisha Limited
                                    922,909    
  56,500    
Stolt-Nielsen S.A. 
                                    579,390    
  4,670    
Transocean Inc., (2)
                                    220,658    
                                                   
       
Total Marine
                                    1,722,957    
        Media – 0.4%
  32,020    
Cablevision Systems Corporation
                                    539,217    
  49,300    
DIRECTV Group, Inc., (2)
                                    1,129,463    
  13,440    
Liberty Media Corporation, Entertainment Tracking Shares, Class A, (2)
                                    234,931    
  4,090    
National CineMedia, Inc. 
                                    41,473    
  27,890    
Regal Entertainment Group, Class A
                                    284,757    

         
44
       
         


 

                                                   
Shares     Description (1)                           Value   
        Media (continued)
                                                   
  32,400    
Scholastic Corporation
                                  $ 439,992    
  17,834    
Shaw Communication Inc. 
                                    312,185    
                                                   
       
Total Media
                                    2,982,018    
        Metals & Mining – 3.8%
  206,400    
AngloGold Ashanti Limited, Sponsored ADR, (3)
                                    5,719,344    
  276,900    
Apex Silver Mines Limited, (2), (7)
                                    271,362    
  177,800    
Barrick Gold Corporation, (3)
                                    6,537,706    
  12,710    
BHP Billiton PLC
                                    246,518    
  10,010    
BHP Billiton PLC
                                    386,186    
  65,220    
BHP Billiton PLC
                                    1,385,545    
  4,750    
Cliffs Natural Resources Inc. 
                                    121,648    
  3,940    
Compass Minerals International, Inc. 
                                    231,120    
  319,100    
Crystallex International Corporation, (2)
                                    54,247    
  21,260    
Freeport-McMoRan Copper & Gold, Inc. 
                                    519,594    
  205,000    
Gold Fields Limited, (3)
                                    2,035,650    
  180,000    
Ivanhoe Mines Ltd., (2), (3)
                                    486,000    
  2,595,500    
Lihir Gold Limited, (2)
                                    5,595,230    
  1,500,000    
Minara Resources Limited
                                    301,940    
  241,460    
Mitsubishi Materials
                                    611,157    
  167,100    
Newmont Mining Corporation, (3)
                                    6,800,970    
  265,900    
NovaGold Resources Inc., (2)
                                    396,191    
  25,310    
Xstrata PLC
                                    236,835    
                                                   
       
Total Metals & Mining
                                    31,937,243    
        Multiline Retail – 0.3%
  36,590    
Big Lots, Inc., (2)
                                    530,189    
  7,600    
Dollar Tree Stores Inc., (2)
                                    317,680    
  25,990    
Family Dollar Stores, Inc. 
                                    677,559    
  87,010    
Next PLC
                                    1,367,284    
                                                   
       
Total Multiline Retail
                                    2,892,712    
        Multi-Utilities – 0.1%
  86,770    
Centrica PLC
                                    334,047    
  5,220    
RWE AG, DD1
                                    463,625    
                                                   
       
Total Multi-Utilities
                                    797,672    
        Oil, Gas & Consumable Fuels – 3.6%
  2,280    
Alpha Natural Resources Inc., (2)
                                    36,913    
  145,600    
Arch Coal Inc., (3)
                                    2,371,824    
  53,150    
BG Group PLC
                                    735,678    
  117,990    
BP PLC, (3)
                                    5,514,853    
  119,500    
Cameco Corporation, (3)
                                    2,061,375    
  27,650    
Chesapeake Energy Corporation
                                    447,101    
  53,210    
Chevron Corporation, (3)
                                    3,935,944    
  3,323    
Comstock Resources Inc., (2)
                                    157,012    
  34,260    
Continental Resources Inc., (2)
                                    709,525    
  2,920    
Devon Energy Corporation
                                    191,873    
  32,330    
Eni S.p.A., Sponsored ADR
                                    1,546,021    
  9,860    
EOG Resources, Inc. 
                                    656,479    
  15,590    
Hess Corporation
                                    836,248    
  5,890    
McMoran Exploration Corporation, (2)
                                    57,722    
  13,290    
Murphy Oil Corporation
                                    589,412    
  58,800    
Nexen Inc., (3)
                                    1,033,704    
  19,820    
Occidental Petroleum Corporation
                                    1,189,002    
  25,590    
Petrohawk Energy Corporation, (2)
                                    399,972    
  30,390    
Repsol YPF S.A.
                                    653,689    
  89,600    
Royal Dutch Shell PLC, Class B, Sponsored ADR, (3)
                                    4,608,128    
  10,430    
SandRidge Energy Inc., (2)
                                    64,145    
  9,270    
Southwestern Energy Company, (2)
                                    268,552    
  51,353    
StatoilHydro ASA, Sponsored ADR
                                    855,541    
  21,400    
Total S.A., Sponsored ADR
                                    1,183,420    
  8,540    
Total S.A.
                                    469,522    

         
    45    
         


 

 
     
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS December 31, 2008

                                                   
Shares     Description (1)                           Value   
        Oil, Gas & Consumable Fuels (continued)
                                                   
  6,610    
Whiting Petroleum Corporation, (2)
                                  $ 221,171    
  20,700    
Woodside Petroleum Limited, (2)
                                    535,660    
                                                   
       
Total Oil, Gas, & Consumable Fuels
                                    31,330,486    
        Paper & Forest Products – 0.0%
  7,030    
Buckeye Technologies Inc., (2)
                                    25,589    
  1,850    
Potlatch Corporation
                                    48,119    
                                                   
       
Total Paper & Forest Products
                                    73,708    
        Personal Products – 0.0%
  9,730    
Herbalife, Limited
                                    210,946    
        Pharmaceuticals – 1.8%
  15,900    
Abbott Laboratories
                                    848,583    
  19,130    
Astellas Pharma Inc. 
                                    783,035    
  19,800    
AstraZeneca Group
                                    810,025    
  33,970    
Bristol-Myers Squibb Company
                                    789,803    
  24,090    
Eli Lilly and Company
                                    970,104    
  67,470    
GlaxoSmithKline PLC, ADR
                                    1,254,788    
  7,200    
GlaxoSmithKline PLC, ADR
                                    268,344    
  23,375    
H. Lundbeck A/S
                                    488,873    
  15,160    
Johnson & Johnson
                                    907,023    
  34,290    
Novartis AG
                                    1,717,292    
  4,670    
Noven Pharmaceuticals Inc., (2)
                                    51,370    
  3,280    
Novo Nordisk A/S
                                    169,195    
  271,700    
Patheon Inc., (2)
                                    486,397    
  12,950    
Perrigo Company
                                    418,415    
  44,890    
Pfizer Inc. 
                                    795,002    
  3,040    
Roche Holdings AG, DD1
                                    470,644    
  21,990    
Sanofi-Aventis, ADR
                                    707,198    
  14,040    
Sanofi-Synthelabo, SA
                                    898,043    
  39,200    
Shionogi & Company Limited
                                    1,012,343    
  41,455    
Warner Chilcott Limited, (2)
                                    601,098    
  12,130    
Watson Pharmaceuticals Inc., (2)
                                    322,294    
  15,210    
Wyeth
                                    570,527    
                                                   
       
Total Pharmaceuticals
                                    15,340,396    
        Real Estate – 0.2%
  2,870    
American Public Education Inc., (2)
                                    106,735    
  3,600    
Equity Lifestyles Properties Inc. 
                                    138,096    
  2,370    
Essex Property Trust Inc. 
                                    181,898    
  9,080    
Lexington Corporate Properties Trust
                                    45,400    
  18,760    
Rayonier Inc. 
                                    588,126    
  11,697    
Tanger Factory Outlet Centers
                                    440,041    
                                                   
       
Total Real Estate
                                    1,500,296    
        Road & Rail – 0.4%
  19,730    
Canadian National Railways Company
                                    715,682    
  21,030    
CSX Corporation
                                    682,844    
  15,990    
Kansas City Southern Industries, (2)
                                    304,610    
  7,370    
Landstar System
                                    283,229    
  8,920    
Norfolk Southern Corporation
                                    419,686    
  243,630    
Stagocoach Group PLC
                                    501,135    
  9,910    
Union Pacific Corporation
                                    473,698    
                                                   
       
Total Road & Rail
                                    3,380,884    
        Semiconductors & Equipment – 0.3%
  59,880    
Broadcom Corporation, Class A, (2)
                                    1,016,164    
  68,690    
Intel Corporation
                                    1,006,995    
  65,930    
Marvell Technology Group Ltd., (2)
                                    439,753    
  12,410    
Monolithic Power Systems, Inc., (2)
                                    156,490    
  18,150    
ON Semiconductor Corporation, (2)
                                    61,710    
  10,480    
Semtech Corporation, (2)
                                    118,110    
                                                   
       
Total Semiconductors & Equipment
                                    2,799,222    
                                                   

         
46
       
         


 

                                                   
Shares     Description (1)                           Value   
        Software – 0.7%
  35,050    
Adobe Systems Incorporated, (2)
                                  $ 746,215    
  15,110    
Ansys Inc., (2)
                                    421,418    
  17,520    
Autodesk, Inc., (2)
                                    344,268    
  6,710    
Blackboard, Inc., (2)
                                    176,003    
  33,230    
CA Inc. 
                                    615,752    
  18,440    
CommVault Systems, Inc., (2)
                                    247,280    
  6,720    
Electronic Arts Inc. (EA), (2)
                                    107,789    
  5,020    
Nintendo Co., Ltd. 
                                    1,918,401    
  32,580    
Salesforce.com, Inc., (2)
                                    1,042,886    
  15,190    
Wind River Systems Inc., (2)
                                    137,166    
                                                   
       
Total Software
                                    5,757,178    
        Specialty Retail – 0.3%
  7,340    
Aeropostale, Inc., (2)
                                    118,174    
  36,590    
Gap, Inc. 
                                    489,940    
  27,960    
Home Depot, Inc. 
                                    643,639    
  31,310    
Lowe’s Companies, Inc. 
                                    673,791    
  11,290    
NetFlix.com Inc., (2)
                                    337,458    
  26,010    
RadioShack Corporation
                                    310,558    
                                                   
       
Total Specialty Retail
                                    2,573,560    
        Textiles, Apparel & Luxury Goods – 0.1%
  2,390    
Deckers Outdoor Corporation, (2)
                                    190,888    
  17,568    
Guess Inc. 
                                    269,668    
                                                   
       
Total Textiles, Apparel & Luxury Goods
                                    460,556    
        Thrifts & Mortgage Finance – 0.3%
  141,810    
Hudson City Bancorp, Inc. 
                                    2,263,287    
  22,790    
People’s United Financial, Inc. 
                                    406,345    
                                                   
       
Total Thrifts & Mortgage Finance
                                    2,669,632    
        Tobacco – 0.4%
  10,580    
British American Tobacco PLC
                                    560,104    
  4,340    
Lorillard Inc. 
                                    244,558    
  52,800    
Philip Morris International
                                    2,297,327    
                                                   
       
Total Tobacco
                                    3,101,989    
        Water Utilities – 0.0%
  3,860    
California Water Service Group
                                    179,219    
        Wireless Telecommunication Services – 0.7%
  150    
KDDI Corporation
                                    1,071,043    
  10,545    
Millicom International Cellular S.A., (2)
                                    498,250    
  18,110    
Millicom International Cellular S.A., (2)
                                    813,319    
  1,710    
NTT Mobile Communications
                                    3,365,817    
  27,110    
Partner Communications Company Limited
                                    447,314    
                                                   
       
Total Wireless Telecommunication Services
                                    6,195,743    
                                                   
       
Total Common Stocks (cost $422,483,457)
                                    290,964,536    
                                                   
Shares     Description (1)         Coupon           Ratings (4)     Value   
        Convertible Preferred Securities – 1.5% (1.1% of Total Investments)
        Capital Markets – 0.0%
  8,150    
AMG Capital Trust II, Convertible Bond
            5.150%               BB     $ 130,400    
                                                   
        Commercial Banks – 0.4%
  3,900    
Bank of America Corporation
            7.250%               A1       2,535,000    
  6,250    
Fifth Third Bancorp, Convertible Bond
            8.500%               A3       506,750    
  18,200    
Sovereign Capital Trust IV, Convertible Security
            4.375%               Baa3       349,212    
                                                   
       
Total Commercial Banks
                                    3,390,962    
        Communications Equipment – 0.5%
  12,750    
Lucent Technologies Capital Trust I
            7.750%               B2       4,335,000    
                                                   

         
    47    
         


 

 
     
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS December 31, 2008

                                                   
Shares     Description (1)         Coupon           Ratings (4)     Value   
        Diversified Financial Services – 0.2%
  63,750    
Citigroup Inc., Series T
            6.500%               BBB     $ 1,784,363    
        Electric Utilities – 0.1%
  23,600    
Centerpoint Energy Inc. 
            2.000%               BBB–       318,600    
  5,600    
CMS Energy Corporation, Convertible Bonds
            4.500%               Ba2       297,150    
                                                   
       
Total Electric Utilities
                                    615,750    
        Food Products – 0.1%
  5,900    
Bunge Limited, Convertible Bonds
            4.875%               BB       404,150    
        Household Durables – 0.0%
  6,400    
Newell Financial Trust I
            5.250%               N/R       166,400    
        Independent Power Producers & Energy Traders – 0.0%
  300    
NRG Energy Inc., Convertible Bond
            4.000%               B2       341,700    
        Insurance – 0.0%
  3,750    
Reinsurance Group of America Inc. 
            5.750%               BBB       202,500    
        Metals & Mining – 0.1%
  1,100    
Freeport McMoran Copper & Gold, Inc. 
            5.500%               BB       683,650    
        Oil, Gas & Consumable Fuels – 0.0%
  600    
El Paso Corporation
            4.990%               B       396,150    
        Real Estate – 0.1%
  21,950    
HRPT Properties Trust, Preferred Convertible Bonds
            6.500%               Baa3       219,500    
  7,500    
Simon Property Group, Inc., Series I
            6.000%               N/R       321,525    
                                                   
       
Total Real Estate
                                    541,025    
                                                   
       
Total Convertible Preferred Securities (cost $27,177,149)
                                    12,992,050    
                                                   
Shares     Description (1)         Coupon           Ratings (4)     Value   
        $25 Par (or similar) Preferred Securities – 45.9% (31.7% of Total Investments)
        Capital Markets – 2.6%
  201,409    
BNY Capital Trust V, Series F
            5.950%               A     $ 4,493,435    
  1,178,457    
Deutsche Bank Capital Funding Trust II
            6.550%               A–       17,559,009    
                                                   
       
Total Capital Markets
                                    22,052,444    
        Commercial Banks – 7.8%
  112,800    
ASBC Capital I
            7.625%               A3       2,252,616    
  64,055    
BAC Capital Trust II
            7.000%               Aa3       1,315,049    
  444,920    
Banco Santander Finance
            6.800%               Aa3       8,453,480    
  916,828    
Banco Santander Finance
            6.500%               A+       17,291,376    
  28,800    
Banesto Holdings, Series A, 144A
            10.500%               A1       774,000    
  146,500    
Cobank Agricultural Credit Bank
            7.000%               N/R       7,318,115    
  48,000    
Cobank Agricultural Credit Bank
            11.000%               A       2,537,688    
  247,502    
Credit Suisse
            7.900%               A–       5,086,166    
  327,700    
Fleet Capital Trust VIII
            7.200%               Aa3       6,298,394    
  14,400    
Goldman Sachs Group Inc., Series 2004-4 (CORTS)
            6.000%               A2       206,784    
  18,600    
Goldman Sachs Group Inc., Series GSC-3 (PPLUS)
            6.000%               A2       260,400    
  48,612    
HSBC Finance Corporation
            6.875%               AA–       999,463    
  73,080    
Merrill Lynch Preferred Capital Trust III
            7.000%               A3       1,232,129    
  209,200    
Merrill Lynch Preferred Capital Trust V
            7.280%               A3       3,619,160    
  345,341    
National City Capital Trust II
            6.625%               A2       6,354,274    
  9,600    
National Westminster Bank PLC
            7.760%               Aa3       95,040    
  14,900    
PNC Capital Trust
            6.125%               A2       315,135    
  31,926    
Wells Fargo Capital Trust VII
            5.850%               Aa2       664,061    
  38,800    
Zions Capital Trust B
            8.000%               Baa1       853,988    
                                                   
       
Total Commercial Banks
                                    65,927,318    
                                                   

         
48
       
         


 

                                                   
Shares     Description (1)         Coupon           Ratings (4)     Value   
        Diversified Financial Services – 3.3%
  361,312    
Citigroup Capital Trust VIII
            6.950%               A3     $ 6,189,275    
  300,100    
Citigroup Capital XIX
            7.250%               A3       4,906,635    
  5,200    
ING Groep N.V.
            7.375%               A       65,520    
  555,720    
ING Groep N.V.
            7.200%               A       7,391,076    
  722,475    
ING Groep N.V.
            7.050%               A       9,175,433    
                                                   
       
Total Diversified Financial Services
                                    27,727,939    
        Diversified Telecommunication Services – 1.4%
  262,904    
AT&T Inc. 
            6.375%               A       6,556,826    
  38,500    
BellSouth Capital Funding (CORTS)
            7.120%               A       955,281    
  30,500    
BellSouth Corporation (CORTS)
            7.000%               A       642,406    
  25,000    
Verizon Communications (CORTS)
            7.625%               A       605,250    
  143,306    
Verizon Communications, Series 2004-1 (SATURNS)
            6.125%               A       3,154,165    
                                                   
       
Total Diversified Telecommunication Services
                                    11,913,928    
        Electric Utilities – 0.8%
  16,100    
Entergy Louisiana LLC
            7.600%               A–       390,425    
  3,550    
FPL Group Capital Inc. 
            6.600%               BBB+       85,910    
  4,925    
National Rural Utilities Cooperative Finance Corporation
            6.100%               A3       94,659    
  238,500    
Xcel Energy Inc. 
            7.600%               BBB–       5,945,805    
                                                   
       
Total Electric Utilities
                                    6,516,799    
        Food Products – 0.2%
  35,100    
Dairy Farmers of America Inc., 144A
            7.875%               BBB–       2,047,867    
        Insurance – 11.9%
  1,148,770    
Aegon N.V. 
            6.375%               A–       11,292,409    
  217,213    
Arch Capital Group Limited, Series B
            7.875%               BBB–       4,348,604    
  392,973    
Arch Capital Group Limited
            8.000%               BBB–       7,812,303    
  592,700    
Berkley WR Corporation, Capital Trust II
            6.750%               BBB–       10,757,505    
  676,601    
Delphi Financial Group, Inc. 
            8.000%               BBB+       9,668,628    
  26,800    
Delphi Financial Group, Inc. 
            7.376%               BBB–       326,960    
  6,000,000    
Everest Reinsurance Holdings, Inc. 
            6.600%               Baa1       2,451,696    
  171,072    
EverestRe Capital Trust II
            6.200%               Baa1       2,838,084    
  6,000    
Financial Security Assurance Holdings
            6.250%               A+       46,500    
  1,158,000    
Lincoln National Capital VI, Series F
            6.750%               A–       20,554,500    
  92,300    
Markel Corporation
            7.500%               BBB       2,058,290    
  887,051    
PartnerRe Limited, Series C
            6.750%               BBB+       16,853,969    
  144,400    
PLC Capital Trust III
            7.500%               BBB+       1,919,076    
  14,000    
PLC Capital Trust IV
            7.250%               BBB+       196,000    
  29,399    
Protective Life Corporation
            7.250%               BBB       392,477    
  250,130    
Prudential Financial Inc. 
            9.000%               A–       5,487,852    
  27,082    
Prudential PLC
            6.750%               A–       369,940    
  131,000    
RenaissanceRe Holdings Limited, Series B
            7.300%               BBB       2,377,650    
  31,000    
RenaissanceRe Holdings Limited, Series C
            6.080%               BBB+       479,570    
                                                   
       
Total Insurance
                                    100,232,013    
        Media – 4.8%
  522,721    
CBS Corporation
            6.750%               BBB       6,858,100    
  1,023,062    
Comcast Corporation
            7.000%               BBB+       22,507,364    
  643,240    
Viacom Inc. 
            6.850%               BBB       11,758,427    
                                                   
       
Total Media
                                    41,123,891    
        Oil, Gas & Consumable Fuels – 1.3%
  613,600    
Nexen Inc. 
            7.350%               Baa3       10,707,320    
        Pharmaceuticals – 0.1%
  46,500    
Bristol Myers Squibb Company (CORTS)
            6.250%               A+       985,335    
        Real Estate – 11.6%
  1,166,013    
Developers Diversified Realty Corporation, Series H
            7.375%               BBB–       8,885,019    
  426,277    
Duke Realty Corporation, Series O
            8.375%               BBB–       6,121,338    
  5,000    
Duke Realty Corporation, Series K
            6.500%               BBB       50,000    
  128,700    
Duke Realty Corporation, Series L
            6.600%               BBB       1,324,323    
  18,500    
Duke Realty Corporation, Series N
            7.250%               BBB–       198,320    

         
    49    
         


 

 
     
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS December 31, 2008

                                                   
Shares     Description (1)         Coupon           Ratings (4)     Value   
        Real Estate (continued)
                                                   
  96,000    
Duke-Weeks Realty Corporation
            6.625%               Baa2     $ 966,720    
  151,515    
Equity Residential Properties Trust, Series N
            6.480%               BBB       3,143,936    
  401,683    
HRPT Properties Trust, Series B
            8.750%               BBB–       4,960,785    
  532,900    
HRPT Properties Trust, Series C
            7.125%               BBB–       5,382,290    
  599,716    
Kimco Realty Corporation, Series G
            7.750%               Baa2       10,794,888    
  3,997    
Prologis Trust, Series C
            8.540%               BBB       169,623    
  51,275    
Prologis Trust, Series G
            6.750%               BB       722,978    
  236,000    
PS Business Parks, Inc., Series L
            7.600%               BBB–       4,177,200    
  127,900    
PS Business Parks, Inc., Series O
            7.375%               Baa3       2,174,300    
  334,388    
PS Business Parks, Inc. 
            7.000%               BB+       5,600,999    
  236,606    
Public Storage, Inc. 
            6.750%               Baa1       4,628,013    
  26,432    
Public Storage, Inc., Series C
            6.600%               BBB       475,776    
  145,000    
Public Storage, Inc., Series E
            6.750%               BBB+       2,668,000    
  27,011    
Public Storage, Inc., Series H
            6.950%               BBB+       528,335    
  31,200    
Public Storage, Inc., Series V
            7.500%               BBB       671,112    
  33,403    
Realty Income Corporation
            6.750%               BBB–       587,559    
  136,189    
Regency Centers Corporation
            7.450%               BBB       2,451,402    
  1,267,443    
Wachovia Preferred Funding Corporation
            7.250%               A–       25,551,651    
  221,425    
Weingarten Realty Investors Series F
            6.500%               Baa3       3,454,230    
  120,500    
Weingarten Realty Trust, Series E
            6.950%               A–       1,777,375    
                                                   
       
Total Real Estate
                                    97,466,172    
        Thrifts & Mortgage Finance – 0.0%
  14,900    
Countrywide Capital Trust IV
            6.750%               Aa3       247,340    
        Wireless Telecommunication Services – 0.1%
  23,446    
United States Cellular Corporation
            8.750%               Baa2       433,750    
                                                   
       
Total $25 Par (or similar) Preferred Securities (cost $579,257,043)
                    387,382,116    
                                                   
                                                   
                                                   
                Weighted
                   
Principal
              Average
                   
Amount (000)     Description (1)         Coupon     Maturity (5)     Ratings (4)     Value   
        Variable Rate Senior Loan Interests – 14.7% (10.1% of Total Investments) (6)
        Aerospace & Defense – 0.1%
$ 574    
DAE Aviation Holdings, Inc., Term Loan B1
            6.276%       7/31/14       BB−     $ 301,596    
  566    
DAE Aviation Holdings, Inc., Term Loan B2
            7.170%       7/31/14       BB−       297,312    
  900    
McKechnie Aerospace Holdings, Inc., Term Loan
            0.000%       5/11/15       N/R       400,500    
                                                   
  2,040    
Total Aerospace & Defense
                                    999,408    
                                                   
        Airlines – 0.3%
  2,504    
ACTS Aero Technical Support & Services, Inc., Term Loan
            7.885%       10/16/14       N/R       438,138    
  985    
American Airlines, Inc., Term Loan
            3.850%       12/17/10       BB−       699,242    
  1,975    
Delta Air Lines, Inc., Term Loan
            5.149%       4/30/14       B       1,005,275    
                                                   
  5,464    
Total Airlines
                                    2,142,655    
        Building Products – 0.4%
  3,550    
Building Materials Corporation of America, Term Loan
            6.625%       2/22/14       B+       2,167,596    
  976    
Stile Acquisition Corporation, Canadian Term Loan
            4.250%       4/05/13       Caa3       430,436    
  986    
Stile Acquisition Corporation, Term Loan B
            4.250%       4/05/13       Caa3       434,620    
  978    
TFS Acquisition, Term Loan
            4.959%       8/11/13       B+       439,875    
                                                   
  6,490    
Total Building Products
                                    3,472,527    
        Chemicals – 0.4%
  775    
Celanese US Holdings LLC, Term Loan
            5.553%       4/02/14       BB+       532,769    
  1,651    
Georgia Gulf Corporation, Term Loan
            7.411%       10/03/13       Ba3       1,102,325    
  2,955    
Hercules Offshore, Inc., Term Loan
            3.210%       7/11/13       BB       1,950,300    
                                                   
  5,381    
Total Chemicals
                                    3,585,394    
        Commercial Services & Supplies – 0.4%
  213    
Aramark Corporation, Letter of Credit
            4.801%       1/24/14       BB       176,252    
  3,349    
Aramark Corporation, Term Loan
            3.334%       1/24/14       BB       2,774,331    
                                                   
  3,562    
Total Commercial Services & Supplies
                                    2,950,583    
                                                   

         
50
       
         


 

                                                   
                Weighted
                   
Principal
              Average
                   
Amount (000)     Description (1)         Coupon     Maturity (5)     Ratings (4)     Value   
        Communications Equipment – 0.2%
$ 1,651    
CommScope Inc., Term Loan B
            2.961%       12/27/14       BB–     $ 1,217,467    
  922    
IPC Systems, Inc., Term Loan, WI/DD
            TBD       TBD       B+       492,108    
                                                   
  2,573    
Total Communications Equipment
                                    1,709,575    
        Diversified Consumer Services – 0.2%
  968    
Cengage Learning Acquisitions, Inc., Term Loan
            2.960%       7/05/14       B+       635,895    
  258    
Laureate Education, Inc., Delayed Term Loan
            3.750%       8/17/14       B1       142,796    
  1,725    
Laureate Education, Inc., Term Loan B
            3.750%       8/17/14       B1       954,233    
                                                   
  2,951    
Total Diversified Consumer Services
                                    1,732,924    
        Diversified Telecommunication Services – 0.1%
  497    
Intelsat, Tranche B, Term Loan A
            6.650%       1/03/14       BB–       379,530    
  497    
Intelsat, Tranche B, Term Loan B
            6.650%       1/03/14       BB–       379,416    
  497    
Intelsat, Tranche B, Term Loan C
            6.650%       1/03/14       BB–       379,416    
                                                   
  1,491    
Total Diversified Telecommunication Services
                                    1,138,362    
                                                   
        Electric Utilities – 0.6%
  909    
Calpine Corporation, DIP Term Loan
            4.335%       3/31/14       B+       674,343    
  1,975    
TXU Corporation, Term Loan B2
            5.591%       10/10/14       Ba3       1,378,385    
  3,950    
TXU Corporation, Term Loan B3
            5.368%       10/10/14       Ba3       2,756,770    
                                                   
  6,834    
Total Electric Utilities
                                    4,809,498    
        Electrical Equipment – 0.1%
  1,709    
Allison Transmission Holdings, Inc., Term Loan
            4.580%       8/07/14       BB–       962,888    
        Energy Equipment & Services – 0.2%
  2,383    
PGS Finance, Inc., Term Loan
            3.210%       6/29/15       Ba2       1,644,500    
        Health Care Equipment & Supplies – 0.1%
  72    
Bausch & Lomb, Inc., Delayed Term Loan
            4.709%       4/24/15       BB–       34,286    
  475    
Bausch & Lomb, Inc., Term Loan
            4.709%       4/24/15       BB–       325,851    
  928    
Biomet, Inc., Term Loan
            4.459%       3/24/15       BB–       797,748    
                                                   
  1,475    
Total Health Care Equipment & Supplies
                                    1,157,885    
        Health Care Providers & Services – 2.2%
  152    
Community Health Systems, Inc., Term Loan B
            3.404%       7/25/14       BB       53,442    
  8,941    
Community Health Systems, Inc., Term Loan
            4.445%       7/25/14       BB       7,005,237    
  493    
Concentra, Inc., Term Loan
            3.710%       6/25/14       B+       300,425    
  1,895    
HCA, Inc., Term Loan
            3.709%       11/18/13       BB       1,498,316    
  42    
HCA, Inc., Term Loan A
            3.459%       11/18/12       BB       35,605    
  2,640    
Health Management Associates, Inc., Term Loan
            3.209%       2/28/14       BB–       1,638,402    
  712    
IASIS Healthcare LLC, Delayed Term Loan
            2.461%       3/14/14       Ba2       512,083    
  191    
IASIS Healthcare LLC, Letter of Credit
            0.361%       3/14/14       Ba2       137,242    
  2,057    
IASIS Healthcare LLC, Term Loan
            2.461%       3/14/14       Ba2       1,479,868    
  781    
LifePoint Hospitals, Inc.,Term Loan B
            3.821%       4/18/12       Ba1       657,635    
  2,432    
Select Medical Corporation, Term Loan, DD1
            4.153%       2/24/12       Ba2       1,699,513    
  985    
Select Medical Corporation, Term Loan B2
            4.153%       2/24/12       Ba2       688,269    
  337    
Sun Healthcare Group, Inc., Delayed Term Loan
            4.051%       4/12/14       Ba2       232,837    
  566    
Sun Healthcare Group, Inc., Synthetic Letter of Credit
            3.459%       4/19/14       Ba2       390,842    
  2,505    
Sun Healthcare Group, Inc., Term Loan
            4.823%       4/19/14       Ba2       1,728,540    
  983    
Vanguard Health Holding Company II LLC, Replacement Term Loan
            3.298%       9/23/11       Ba3       808,214    
                                                   
  25,712    
Total Health Care Providers & Services
                                    18,866,470    
        Hotels, Restaurants & Leisure – 1.1%
  2,394    
CCM Merger, Inc., Term Loan B
            4.176%       7/13/12       B+       1,136,943    
  1,965    
Cedar Fair LP, Term Loan
            2.461%       8/30/12       BB–       1,250,953    
  1,787    
Harrah’s Operating Company, Inc., Term Loan B2
            6.535%       1/28/15       B+       1,046,096    
  1,164    
Isle of Capri Casinos, Inc., Delayed Term Loan
            3.209%       11/25/13       B+       702,823    
  351    
Isle of Capri Casinos, Inc., Delayed Term Loan A
            3.209%       11/25/13       B+       211,917    
  465    
Isle of Capri Casinos, Inc., Delayed Term Loan B
            3.209%       11/25/13       B+       281,129    
  988    
Orbitz Worldwide, Inc., Term Loan
            5.196%       7/25/14       BB–       444,375    
  1,980    
Travelport LLC, Delayed Term Loan
            3.709%       8/23/13       Ba2       890,955    
  134    
Travelport LLC, Letter of Credit
            3.709%       8/23/13       Ba2       59,524    

         
    51    
         


 

 
     
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS December 31, 2008

                                                   
                Weighted
                   
Principal
              Average
                   
Amount (000)     Description (1)         Coupon     Maturity (5)     Ratings (4)     Value   
        Hotels, Restaurants & Leisure (continued)
                                                   
$ 669    
Travelport LLC, Term Loan
            3.709%       8/23/13       Ba2     $ 296,655    
  1,194    
Venetian Casino Resort LLC, Delayed Term Loan
            2.220%       5/23/14       B+       551,894    
  4,728    
Venetian Casino Resort LLC, Term Loan
            2.220%       5/23/14       B+       2,185,388    
  899    
Wintergames Holdings, Term Loan A
            7.970%       10/28/09       N/R       568,873    
                                                   
  18,718    
Total Hotels, Restaurants & Leisure
                                    9,627,525    
        Independent Power Producers & Energy Traders – 0.5%
  1,557    
NRG Energy, Inc., Credit Linked Deposit
            5.021%       2/01/13       Ba1       1,358,365    
  3,160    
NRG Energy, Inc., Term Loan
            2.959%       2/01/13       Ba1       2,756,710    
                                                   
  4,717    
Total Independent Power Producers & Energy Traders
                                    4,115,075    
        Insurance – 0.3%
  3,946    
Conseco, Inc., Term Loan
            3.825%       10/10/13       B+       2,555,197    
        Internet Software & Services – 0.1%
  1,000    
Sabre, Inc., Term Loan
            4.804%       9/30/14       B+       439,000    
        IT Services – 0.5%
  3,950    
First Data Corporation, Term Loan B1
            3.211%       9/24/14       BB–       2,557,625    
  1,211    
Infor Global Solutions Intermediate Holdings, Ltd., Delayed Term Loan
            5.210%       7/28/12       B+       623,618    
  1,147    
Infor Global Solutions Intermediate Holdings, Ltd., Term Loan
            4.210%       7/30/12       B+       590,739    
  1,177    
Infor Global Solutions Intermediate Holdings, Ltd., Term Loan
            5.210%       7/28/12       B+       624,713    
                                                   
  7,485    
Total IT Services
                                    4,396,695    
        Leisure Equipment & Products – 0.2%
  583    
Herbst Gaming, Inc., Delayed Term Loan
            10.500%       12/02/11       Caa3       166,044    
  671    
Herbst Gaming, Inc., Term Loan
            10.500%       12/02/11       CCC-       191,104    
  6,000    
Wimar OpCo LLC, Term Loan, (7)
            6.500%       1/03/12       N/R       1,449,999    
                                                   
  7,254    
Total Leisure Equipment & Products
                                    1,807,147    
        Machinery – 0.4%
  4,466    
LyondellBasell Finance Company, Term Loan B2
            7.000%       12/22/14       B1       1,976,303    
  1,761    
Oshkosh Truck Corporation, Term Loan
            3.425%       12/06/13       BB+       1,037,387    
                                                   
  6,227    
Total Machinery
                                    3,013,690    
        Media – 2.5%
  5,714    
Cequel Communications LLC, Term Loan B
            6.164%       11/05/13       BB–       3,651,812    
  5,281    
Charter Communications Operating Holdings LLC, Term Loan
            5.064%       3/06/14       B+       3,908,015    
  2,500    
Citadel Broadcasting Corporation, Term Loan
            3.650%       6/12/14       BB–       1,025,000    
  855    
Discovery Communications Holdings LLC, Term Loan
            3.459%       5/14/14       N/R       708,162    
  1,951    
Gray Television, Inc., Term Loan B
            4.827%       12/31/14       B       780,533    
  985    
Idearc, Inc., Term Loan
            3.418%       11/17/14       B2       310,955    
  3,167    
Metro-Goldwyn-Mayer Studios, Inc., Term Loan B
            4.241%       4/08/12       N/R       1,353,697    
  2,922    
Neilsen Finance LLC, Term Loan
            4.244%       8/09/13       Ba3       1,989,064    
  944    
Philadelphia Newspapers, Term Loan
            16.500%       6/29/13       N/R       212,423    
  1,965    
Readers Digest Association, Inc., Term Loan
            4.084%       3/03/14       B2       677,925    
  5,925    
Tribune Company, Term Loan B, (7), (8)
            5.250%       6/04/14       Caa3       1,692,858    
  1,256    
Tribune Company, Term Loan X, (7), (8)
            7.084%       6/04/09       Caa1       354,085    
  8,000    
Univision Communications, Inc., Term Loan
            2.711%       9/29/14       B2       3,288,888    
  408    
Valassis Communications, Inc., Delayed Term Loan
            3.210%       3/02/14       BB       202,060    
  1,231    
Valassis Communications, Inc., Tranche B, Term Loan
            3.210%       3/02/14       BB       609,370    
                                                   
  43,104    
Total Media
                                    20,764,847    
        Metals & Mining – 0.2%
  2,426    
John Maneely Company, Term Loan
            7.706%       12/08/13       B+       1,394,763    
        Oil, Gas & Consumable Fuels – 0.6%
  2,977    
CCS Income Trust, Term Loan
            3.461%       11/14/13       BB–       2,004,811    
  2,000    
Venoco, Inc., Term Loan
            6.250%       5/08/14       B       1,312,500    
  3,573    
Western Refining, Inc., Term Loan
            9.250%       5/30/14       BB–       1,782,825    
                                                   
  8,550    
Total Oil, Gas & Consumable Fuels
                                    5,100,136    
        Paper & Forest Products – 0.3%
  3,516    
Georgia-Pacific Corporation, Term Loan B
            4.108%       12/21/12       BB+       2,888,644    
                                                   

         
52
       
         


 

                                                   
                Weighted
                   
Principal
              Average
                   
Amount (000)     Description (1)         Coupon     Maturity (5)     Ratings (4)     Value   
        Pharmaceuticals – 0.2%
$ 2,000    
Royalty Pharma Finance Trust, Unsecured Term Loan
            7.750%       5/21/15       Baa3     $ 1,500,000    
        Real Estate Management & Development – 0.4%
  1,915    
LNR Property Corporation, Term Loan B
            6.690%       7/12/11       BB       909,765    
  3,940    
Realogy Corporation, Delayed Term Loan
            6.727%       10/10/13       Caa1       2,485,563    
                                                   
  5,855    
Total Real Estate Management & Development
                                    3,395,328    
        Road & Rail – 0.3%
  6,419    
Swift Transportation Company, Inc., Term Loan
            5.832%       5/10/14       B+       2,347,377    
        Software – 0.1%
  2,519    
Dealer Computer Services, Inc., Term Loan
            2.461%       10/26/12       BB       1,215,459    
        Specialty Retail – 1.2%
  3,619    
Blockbuster, Inc., Tranche B, Term Loan
            6.244%       8/20/11       B1       2,182,554    
  7,616    
Burlington Coat Factory Warehouse Corporation, Term Loan
            4.450%       5/28/13       B2       3,384,838    
  3,424    
Michaels Stores, Inc., Term Loan
            3.523%       10/31/13       B       1,798,685    
  3,600    
Toys “R” Us — Delaware, Inc., Term Loan B
            4.831%       7/19/12       BB−       1,698,750    
  1,500    
TRU 2005 RE Holding Co I LLC, Term Loan
            4.868%       12/08/09       B3       706,249    
                                                   
  19,759    
Total Specialty Retail
                                    9,771,076    
        Wireless Telecommunication Services – 0.5%
  6,000    
Asurion Corporation, Term Loan
            5.197%       7/03/14       N/R       4,098,749    
                                                   
$ 217,560    
Total Variable Rate Senior Loan Interests (cost $206,037,559)
                    123,603,377    
                                                   
                                                   
Principal
                                   
Amount (000)     Description (1)         Coupon     Maturity     Ratings (4)     Value   
        Convertible Bonds – 10.3% (7.1% of Total Investments)
        Aerospace & Defense – 0.2%
$ 240    
AAR Corporation, Convertible Bond
            1.750%       2/01/26       BB     $ 186,000    
  300    
Alliant Techsystems, Inc., Convertible Bonds
            2.750%       9/15/11       BB–       296,250    
  300    
Alliant Techsystems, Inc., Convertible Bonds
            2.750%       2/15/24       BB–       344,250    
  850    
L-3 Communications Corporation, Convertible Bond
            3.000%       8/01/35       BB+       850,000    
                                                   
  1,690    
Total Aerospace & Defense
                                    1,676,500    
                                                   
        Airlines – 0.3%
  3,375    
JetBlue Airways Corporation
            3.750%       3/15/35       CCC       2,615,625    
        Auto Components – 0.1%
  1,200    
Magna International Inc., Class A
            6.500%       3/31/10       N/R       928,311    
        Beverages – 0.1%
  450    
Molson Coors Brewing Company, Senior Convertible Notes
            2.500%       7/30/13       BBB       538,875    
        Biotechnology – 0.4%
  925    
Amgen Inc. 
            0.125%       2/01/11       A+       893,781    
  2,125    
Amgen Inc., (9)
            0.375%       2/01/13       A+       2,032,031    
  400    
Invitrogen Corporation
            2.000%       8/01/23       BB+       376,500    
                                                   
  3,450    
Total Biotechnology
                                    3,302,312    
        Capital Markets – 0.1%
  350    
BlackRock Inc. 
            2.625%       2/15/35       AA–       491,750    
        Chemicals – 0.0%
  200    
Ferro Corporation, Convertible Bond
            6.500%       8/15/13       B       97,750    
        Commercial Banks – 0.2%
  200    
SVB Financial Group, Convertible Bond
            3.875%       4/15/11       A3       159,250    
  550    
U.S. Bancorp, Convertible Bonds
            1.358%       12/11/35       AA       504,625    
  750    
U.S. Bancorp, Convertible Bonds
            0.700%       9/20/36       AA       669,150    
                                                   
  1,500    
Total Commercial Banks
                                    1,333,025    
                                                   

         
    53    
         


 

 
     
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS December 31, 2008

                                                   
Principal
                                   
Amount (000)     Description (1)         Coupon     Maturity     Ratings (4)     Value   
        Commercial Services & Supplies – 0.6%
$ 4,913    
Allied Waste Industries Inc., Convertible Debentures
            4.250%       4/15/34       BBB–     $ 4,421,700    
        Communications Equipment – 0.3%
  500    
Ciena Corporation, Convertible Bond
            0.875%       6/15/17       B+       178,750    
  300    
CommScope Inc. 
            1.000%       3/15/24       B       300,000    
  300    
Comverse Technology, Inc. 
            0.000%       5/15/23       B+       288,000    
  1,350    
Lucent Technologies Inc., Series B
            2.875%       6/15/25       BB–       636,188    
  1,300    
Lucent Technologies Inc. 
            2.875%       6/15/23       BB–       1,085,500    
  600    
Nortel Networks Corp. (10) 
            1.750%       4/15/12       B–       88,500    
  250    
Nortel Networks Corp. (10) 
            1.750%       4/15/12       B–       36,875    
  850    
Nortel Networks Corp. (10) 
            2.125%       4/15/14       B–       123,250    
  150    
Nortel Networks Corp. (10) 
            2.125%       4/15/14       B–       21,750    
                                                   
  5,600    
Total Communications Equipment
                                    2,758,813    
        Computers & Peripherals – 0.4%
  1,750    
EMC Corporation, Convertible Bonds, 144A
            1.750%       12/01/11       A–       1,717,188    
  700    
EMC Corporation, Convertible Bonds, 144A
            1.750%       12/01/13       A–       658,000    
  400    
EMC Corporation, Convertible Bonds, 144A
            1.750%       12/01/13       A–       376,000    
  950    
Sandisk Corporation, Convertible Bond
            1.000%       5/15/13       B       384,750    
                                                   
  3,800    
Total Computers & Peripherals
                                    3,135,938    
        Containers & Packaging – 0.1%
  500    
Sealed Air Corporation, 144A
            3.000%       6/30/33       BBB–       452,500    
        Diversified Financial Services – 0.1%
  250    
Leucadia National Corporation, Convertible Bonds
            3.750%       4/15/14       BB–       247,500    
  500    
NASDAQ Stock Market Inc., Convertible Bond
            2.500%       8/15/13       BB+       372,500    
                                                   
  750    
Total Diversified Financial Services
                                    620,000    
        Diversified Telecommunication Services – 0.2%
  1,550    
Qwest Communications International Inc., Convertible Bond
            3.500%       11/15/25       B+       1,311,688    
        Electric Utilities – 0.0%
  300    
Covanta Holding Corporation, Convertible Bonds
            1.000%       2/01/27       B1       274,500    
        Electrical Equipment – 0.0%
  600    
General Cable Corporation, Convertible Bonds
            1.000%       10/15/12       B+       377,250    
        Electronic Equipment & Instruments – 0.2%
  400    
Anixter International Inc., Convertible Bond
            0.000%       7/07/33       BB–       208,500    
  400    
Itron Inc. 
            2.500%       8/01/26       B–       431,000    
  250    
Roper Industries Inc. 
            1.481%       1/15/34       BB+       135,313    
  1,375    
Tech Data Corporation, Convertible Bonds
            2.750%       12/15/26       BBB–       1,010,625    
                                                   
  2,425    
Total Electronic Equipment & Instruments
                                    1,785,438    
        Energy Equipment & Services – 0.8%
  250    
Cooper Cameron Corporation
            1.500%       5/15/24       BBB+       316,563    
  1,750    
Nabors Industries Inc., Convertible Bond Series 144A 
            0.940%       5/15/11       BBB+       1,450,313    
  450    
Nabors Industries Inc., Convertible Bond Series 144A 
            0.940%       5/15/11       BBB+       372,938    
  300    
Schlumberger Limited
            2.125%       6/01/23       A+       374,625    
  400    
SESI LLC, Convertible Bond, 144A
            1.500%       12/15/26       BB+       271,500    
  1,000    
Transocean Inc., Convertible Bond
            1.625%       12/15/37       BBB+       876,250    
  2,550    
Transocean Inc. 
            1.500%       12/15/37       BBB+       2,078,250    
  1,325    
Transocean Inc. 
            1.500%       12/15/37       BBB+       1,026,875    
                                                   
  8,025    
Total Energy Equipment & Services
                                    6,767,314    
        Food Products – 0.2%
  400    
Archer Daniels Midland Company, Convertible Bonds
            0.875%       2/15/14       A       392,000    
  400    
Archer Daniels Midland Company, Convertible Bonds
            0.875%       2/15/14       A       392,000    
  300    
Chiquita Brands International Inc., Convertible Bond
            4.250%       8/15/16       B–       240,000    
  450    
Smithfield Foods Inc., Convertible Bond
            4.000%       6/30/13       B       333,000    
  350    
Tyson Foods inc., Convertible Bond
            3.250%       10/15/13       BB       283,938    
                                                   
  1,900    
Total Food Products
                                    1,640,938    
                                                   

         
54
       
         


 

                                                   
Principal
                                   
Amount (000)     Description (1)         Coupon     Maturity     Ratings (4)     Value   
        Health Care Equipment & Supplies – 0.7%
$ 433    
Advanced Medical Optics
            2.500%       7/15/24       B–     $ 352,895    
  300    
Advanced Medical Optics
            3.250%       8/01/26       B–       106,500    
  600    
American Medical Systems Holdings, Convertible Bond
            3.250%       7/01/36       B       408,750    
  250    
Beckman Coulter Inc., Convertible Bonds, 144A
            2.500%       12/15/36       BBB       235,313    
  1,700    
Hologic Inc. 
            2.000%       12/15/37       B+       996,625    
  550    
Kinetic Concepts Inc., Convertible Bond
            3.250%       4/15/15       B+       305,250    
  1,800    
Medtronic, Inc., Convertible Bond
            1.500%       4/15/11       AA–       1,683,000    
  1,950    
Medtronic, Inc., Convertible Bond
            1.625%       4/15/13       AA–       1,730,625    
                                                   
  7,583    
Total Health Care Equipment & Supplies
                                    5,818,958    
        Health Care Providers & Services – 0.7%
  550    
Laboratory Corporation of America Holdings
            0.000%       9/11/21       BBB–       492,250    
  200    
LifePoint Hospitals, Inc., Convertible Bond
            3.250%       8/15/25       B1       144,750    
  550    
LifePoint Hospitals, Inc., Convertible Bonds
            3.500%       5/15/14       B       374,688    
  8,765    
Omnicare, Inc. 
            3.250%       12/15/35       B+       4,963,181    
                                                   
  10,065    
Total Health Care Providers & Services
                                    5,974,869    
        Hotels, Restaurants & Leisure – 0.6%
  850    
Carnival Corporation
            2.000%       4/15/21       A–       771,375    
  650    
International Game Technology
            2.600%       12/15/36       BBB       617,500    
  3,710    
Punch Taverns Corporation, Convertible Bonds
            5.000%       12/14/10       N/R       3,542,223    
                                                   
  5,210    
Total Hotels, Restaurants & Leisure
                                    4,931,098    
        Insurance – 0.1%
  1,150    
Prudential Financial Inc., Convertible Bond
            0.366%       12/15/37       A+       1,094,225    
        Internet & Catalog Retail – 0.1%
  200    
Priceline.com, Inc., Convertible Bonds
            0.500%       9/30/11       BB–       365,750    
  250    
Priceline.com, Inc., Convertible Bonds
            0.750%       9/30/13       BB–       457,188    
                                                   
  450    
Total Internet & Catalog Retail
                                    822,938    
        Internet Software & Services – 0.0%
  500    
Equinix Inc., Convertible Bond
            3.000%       10/15/14       B–       297,500    
        Leisure Equipment & Products – 0.0%
  400    
Eastman Kodak Company
            3.375%       10/15/33       B2       324,500    
        Life Sciences Tools & Services – 0.1%
  350    
Apogent Technologies, Inc., Convertible Bonds
            0.621%       12/15/33       BBB+       417,935    
  250    
Charles River Laboratories International, Inc. 
            2.250%       6/15/13       BB+       194,688    
  250    
Fisher Scientific International, Inc., Convertible Bonds
            2.500%       10/01/23       BBB+       368,125    
                                                   
  850    
Total Life Sciences Tools & Services
                                    980,748    
        Machinery – 0.1%
  100    
Actuant Corporation, Convertible Bond
            2.000%       11/15/23       B+       101,125    
  1,050    
Danaher Corporation, Convertible Bonds
            0.000%       1/22/21       A+       926,625    
                                                   
  1,150    
Total Machinery
                                    1,027,750    
        Marine – 0.0%
  350    
Horizon Lines Inc., Convertible Bonds
            4.250%       8/15/12       B–       181,125    
        Media – 0.6%
  300    
ELF Special Financing Limited, Convertible Bonds, 144A
            4.598%       6/15/09       Ba3       266,130    
  300    
Hasbro Inc. 
            2.750%       12/01/21       BBB       410,250    
  250    
Interpublic Group Companies Inc., Convertible Notes
            4.250%       3/15/23       Ba3       163,438    
  1,790    
Interpublic Group Companies Inc., Convertible Notes
            4.250%       3/15/23       Ba3       1,170,213    
  150    
Interpublic Group Companies Inc., Convertible Notes
            4.750%       3/15/23       Ba3       87,188    
  450    
Lamar Advertising Company, Convertible
            2.875%       12/31/10       B       336,938    
  1,150    
Liberty Media Corporation Convertible Bonds
            3.750%       2/15/30       BB+       310,500    
  700    
Liberty Media Corporation, Senior Debentures Exchangeable for Motorola Common Stock 3.500%
    1/15/31       BB+       172,108    
  1,100    
Liberty Media Corporation, Senior Debentures, Exchangeable for PCS Common Stock, Series 1 4.000%
    11/15/29       BB+       305,250    
  1,150    
Omnicom Group, Inc. 
            0.000%       2/07/31       A–       1,141,375    
  750    
Omnicom Group Inc. 
            0.000%       7/01/38       A–       681,563    

         
    55    
         


 

 
     
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS December 31, 2008

                                                   
Principal
                                   
Amount (000)     Description (1)         Coupon     Maturity     Ratings (4)     Value   
        Media (continued)
                                                   
$ 600    
Sinclair Broadcast Group, Inc., Convertible Bonds
            3.000%       5/15/27       B     $ 324,000    
                                                   
  8,690    
Total Media
                                    5,368,953    
        Metals & Mining – 0.3%
  4,890    
Coeur d’Alene Mines Corporation, Convertible Bond
            1.250%       1/15/24       B–       1,467,000    
  3,000    
Gold Reserve, Inc., Convertible Bonds
            5.500%       6/15/22       N/R       566,250    
  750    
Newmont Mining Corporation
            1.625%       7/15/17       BBB+       800,625    
                                                   
  8,640    
Total Metals & Mining
                                    2,833,875    
        Multiline Retail – 0.0%
  350    
Saks, Inc., Convertible Bonds
            2.000%       3/15/24       B       136,938    
        Oil, Gas & Consumable Fuels – 0.4%
  250    
Alpha Natural Resouces Inc., Convertible Bond
            2.375%       4/15/15       B       161,875    
  850    
Chesapeake Energy Corporation, 144A
            2.750%       11/15/35       BB       540,813    
  1,150    
Chesapeake Energy Corporation, Convertible Bonds
            2.500%       5/15/37       BB       677,063    
  650    
Chesapeake Energy Corporation, Convertible Bonds
            2.250%       12/15/38       BB       294,938    
  650    
Massey Energy Company, Convertible Bond
            3.250%       8/01/15       BB–       355,875    
  700    
Peabody Energy Corp., Convertible Bond
            4.750%       12/15/66       Ba3       423,500    
  450    
Pioneer Natural Resouces Company, Convertible Bond
            2.875%       1/15/38       BB+       322,313    
  1,550    
USEC Inc., Convertible Bond
            3.000%       10/01/14       CCC       660,688    
                                                   
  6,250    
Total Oil, Gas & Consumable Fuels
                                    3,437,065    
        Paper & Forest Products – 0.0%
  400    
Rayonier Trust Holdings Inc., Convertible Bond
            3.750%       10/15/12       BBB       359,000    
        Pharmaceuticals – 0.5%
  475    
Allergan Inc., Convertible Bond
            1.500%       4/01/26       A       477,969    
  250    
Alpharma, Inc., Convertible Bonds
            2.125%       3/15/27       B+       309,375    
  750    
Myland Labs, Inc., Convertible Bonds
            1.250%       3/15/12       B+       555,000    
  550    
Myland Labs, Inc., Convertible Bonds
            3.750%       9/15/15       B+       500,500    
  250    
Teva Pharmaceutical Finance Company B.V., Series D
            1.750%       2/01/26       BBB+       275,938    
  1,017    
Teva Pharmaceutical Finance, Series B
            0.250%       2/01/24       BBB+       1,257,266    
  750    
Watson Pharmaceuticals Inc., Convertible Bond
            1.750%       3/15/23       BB+       701,250    
  205    
Wyeth, Convertible Bond
            2.621%       1/15/24       A+       204,119    
                                                   
  4,247    
Total Pharmaceuticals
                                    4,281,417    
        Real Estate – 0.9%
  1,250    
Boston Properties Limited Partnership, Convertible Bonds, 144A
            2.875%       2/15/37       A–       993,750    
  300    
Brandywine Operating Partnership, Convertible Bonds
            3.875%       10/15/26       BBB–       177,750    
  600    
BRE Properties Inc., Convertible Bond
            4.125%       8/15/26       BBB       448,500    
  750    
Developers Diversified Realty Corporation, Convertible Bonds
            3.000%       3/15/12       BBB–       317,813    
  700    
Duke Realty Corporation, Series D
            3.750%       12/01/11       BBB+       402,500    
  300    
Health Care REIT, Inc., Convertible Bonds
            4.750%       12/01/26       Baa2       286,875    
  800    
Hospitality Properties Trust, Convertible Bonds
            3.800%       3/15/27       BBB       495,000    
  450    
Host Marriot LP, Convertible Bonds, 144A
            3.250%       4/15/24       BBB–       390,375    
  350    
Prologis, Convertible Bonds, 144A
            2.250%       4/01/37       BBB–       155,750    
  250    
Ventas Inc., Convertible Bond
            3.875%       11/15/11       BBB–       210,625    
  2,000    
Vornado Realty Trust, Convertible Bonds
            2.850%       4/01/27       BBB       1,485,000    
  600    
Vornado Realty, Convertible Bond
            3.875%       4/15/25       BBB       519,000    
  650    
Vornado Realty, Convertible Bond
            3.625%       11/15/26       BBB       518,375    
  650    
Weingarten Realty Investment Trust, Convertible Bonds
            3.950%       8/01/26       BBB       453,375    
                                                   
  9,650    
Total Real Estate
                                    6,854,688    
        Real Estate Management & Development – 0.0%
  300    
Forest City Enterprises, Inc., Convertible Bonds
            3.625%       10/15/11       B+       160,650    
        Semiconductors & Equipment – 0.3%
  950    
Intel Corporation, Convertible Bond
            2.950%       12/15/35       A–       827,688    
  2,050    
Micron Technology, Inc. 
            1.875%       6/01/14       B+       679,062    
  150    
ON Semiconductor Corporation, Convertible Bonds
            0.000%       4/15/24       B+       125,812    
  600    
ON Semiconductor Corporation
            2.625%       12/15/26       B+       328,499    
  3,500    
Qimonda Finance LLC, Convertible Bond
            6.750%       3/22/13       N/A       450,624    

         
56
       
         


 

                                                   
Principal
                                   
Amount (000)     Description (1)         Coupon     Maturity     Ratings (4)     Value   
        Semiconductors & Equipment (continued)
                                                   
$ 450    
Xilinx Inc., Convertible Bond, 144A
            3.125%       3/15/37       BB     $ 307,687    
  150    
Xilinx Inc., Convertible Bond, 144A
            3.125%       3/15/37       BB       102,562    
                                                   
  7,850    
Total Semiconductors & Equipment
                                    2,821,934    
        Software – 0.1%
  382    
Amdocs Limited
            0.500%       3/15/24       BBB       379,132    
  350    
Computer Associates International Inc., Convertible Bond, Series 144A
            1.625%       12/15/09       BB+       378,437    
  450    
Red Hat Inc., Convertible Bond
            0.500%       1/15/24       BB–       450,564    
                                                   
  1,182    
Total Software
                                    1,208,133    
        Specialty Retail – 0.2%
  600    
Best Buy Co., Inc. 
            2.250%       1/15/22       Baa3       538,499    
  900    
TJX Companies, Inc. 
            0.000%       2/13/21       A–       682,874    
  388    
United Auto Group, Inc., Convertible Bonds
            3.500%       4/01/26       B–       218,734    
                                                   
  1,888    
Total Specialty Retail
                                    1,440,107    
        Textiles, Apparel & Luxury Goods – 0.0%
  300    
Iconix Brand Group, Inc., Convertible Notes
            1.875%       6/30/12       B       154,499    
        Wireless Telecommunication Services – 0.3%
  300    
American Tower Corporation
            3.000%       8/15/12       BB+       436,499    
  1,000    
Nextel Communications, Inc., Convertible Senior Notes
            5.250%       1/15/10       BB       871,249    
  1,341    
NII Holdings Inc. 
            3.125%       6/15/12       N/R       819,685    
                                                   
  2,641    
Total Wireless Telecommunication Services
                                    2,127,433    
                                                   
$ 122,674    
Total Convertible Bonds (cost $118,058,527)
                                    87,168,630    
                                                   
                                                   
Principal
                                   
Amount (000)     Description (1)         Coupon     Maturity     Ratings (4)     Value   
        Corporate Bonds – 8.9% (6.1% of Total Investments)
        Aerospace & Defense – 0.1%
$ 1,000    
Hexcel Corporation, Term Loan
            6.750%       2/01/15       B+     $ 765,000    
                                                   
        Chemicals – 0.2%
  1,000    
Momentive Performance Materials
            9.750%       12/01/14       B–       430,000    
  2,100    
Rockwood Specialties Group Inc., Series WI
            7.500%       11/15/14       BB–       1,627,500    
                                                   
  3,100    
Total Chemicals
                                    2,057,500    
        Commercial Services & Supplies – 0.1%
  1,200    
Ticketmaster
            10.750%       8/01/16       BB       654,000    
        Diversified Telecommunication Services – 0.0%
  750    
Syniverse Technologies Inc., Series B
            7.750%       8/15/13       B       387,188    
        Electric Utilities – 0.1%
  1,000    
Sierra Pacific Resources, Series 2006
            6.750%       8/15/17       BB       772,641    
        Energy Equipment & Services – 0.3%
  2,500    
Pride International Inc. 
            7.375%       7/15/14       BB+       2,337,500    
        Food & Staples Retailing – 0.2%
  2,000    
Stater Brothers Holdings Inc. 
            8.125%       6/15/12       B+       1,820,000    
        Food Products – 0.8%
  4,110    
Del Monte Corporation
            8.625%       12/15/12       BB–       4,007,250    
  1,096    
Dole Foods Company
            8.625%       5/01/09       B–       997,360    
  2,700    
Dole Foods Company
            8.750%       7/15/13       B–       1,606,500    
                                                   
  7,906    
Total Food Products
                                    6,611,110    
        Health Care Providers & Services – 0.2%
  500    
Biomet Inc. 
            10.000%       10/15/17       B–       482,500    
  1,800    
Select Medical Corporation
            8.449%       9/15/15       CCC+       945,000    
                                                   
  2,300    
Total Health Care Providers & Services
                                    1,427,500    
                                                   

         
    57    
         


 

 
     
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS December 31, 2008

                                                   
Principal
                                   
Amount (000)     Description (1)         Coupon     Maturity     Ratings (4)     Value   
        Hotels, Restaurants & Leisure – 1.2%
$ 1,875    
Boyd Gaming Corporation
            7.750%       12/15/12       BB–     $ 1,696,875    
  800    
Landry’s Restaurants Inc. 
            9.500%       12/15/14       CCC+       804,000    
  2,000    
Pinnacle Entertainment Inc. 
            8.250%       3/15/12       B+       1,530,000    
  3,000    
Pinnacle Entertainment Inc. 
            8.750%       10/01/13       B+       2,385,000    
  1,750    
Seminole Hard Rock Entertainment, Inc. 
            4.686%       3/15/14       BB       896,875    
  4,000    
Universal City Development Partners
            11.750%       4/01/10       B+       2,590,000    
                                                   
  13,425    
Total Hotels, Restaurants & Leisure
                                    9,902,750    
        Independent Power Producers & Energy Traders – 0.1%
  500    
Mirant North America LLC
            7.375%       12/31/13       B1       482,500    
        IT Services – 0.4%
  1,950    
Global Cash Access LLC
            8.750%       3/15/12       B       1,569,750    
  2,250    
Sungard Data Systems Inc. 
            9.125%       8/15/13       B       1,957,500    
                                                   
  4,200    
Total IT Services
                                    3,527,250    
        Machinery – 0.3%
  3,000    
Greenbrier Companies, Inc. 
            8.375%       5/15/15       B–       2,148,750    
        Media – 0.6%
  5,450    
Allbritton Communications Company, Series B
            7.750%       12/15/12       B       2,704,563    
  2,000    
AMC Entertainment Inc. 
            8.000%       3/01/14       B2       1,240,000    
  2,198    
Dex Media West LLC
            9.875%       8/15/13       B+       527,520    
  4,000    
Medianews Group Inc. 
            6.375%       4/01/14       CC       275,000    
  4,000    
R.H. Donnelley Corporation
            8.875%       10/15/17       B–       620,000    
  3,500    
Young Broadcasting Inc., Senior Subordinated Note
            10.000%       3/01/11       CC       52,500    
  2,000    
Young Broadcasting Inc. 
            8.750%       1/15/14       CC       30,000    
                                                   
  23,148    
Total Media
                                    5,449,583    
        Metals & Mining – 0.6%
  5,200    
MagIndustries Corporation, (14)
            11.000%       12/14/12       N/R       4,931,519    
        Multi-Utilities – 0.3%
  2,400    
Dynegy Holdings, Inc., Term Loan
            8.375%       5/01/16       B       1,716,000    
  500    
Northwestern Corporation
            5.875%       11/01/14       A–       461,630    
                                                   
  2,900    
Total Multi-Utilities
                                    2,177,630    
        Oil, Gas & Consumable Fuels – 0.4%
  600    
Chaparral Energy Inc. 
            8.500%       12/01/15       CCC       123,000    
  1,000    
Hilcorp Energy I LP/Hilcorp Finance Company, Series 144A
            7.750%       11/01/15       BB–       710,000    
  2,000    
Premcor Refining Group Inc. 
            7.500%       6/15/15       BBB       1,803,046    
  3,000    
SemGroup LP, 144A (10)
            8.750%       11/15/15       C       120,000    
  1,500    
Whiting Petroleum Corporation
            7.000%       2/01/14       BB–       1,065,000    
                                                   
  8,100    
Total Oil, Gas & Consumable Fuels
                                    3,821,046    
        Paper & Forest Products – 0.6%
  4,000    
Georgia-Pacific Corporation
            8.125%       5/15/11       B+       3,780,000    
  2,000    
Georgia-Pacific Corporation
            7.700%       6/15/15       B+       1,530,000    
                                                   
  6,000    
Total Paper & Forest Products
                                    5,310,000    
        Personal Products – 0.2%
  1,600    
Prestige Brands Inc. 
            9.250%       4/15/12       B–       1,480,000    
        Real Estate – 0.4%
  3,000    
Felcor Lodging Trust Inc., 144A
            4.481%       12/01/11       Ba3       1,875,000    
  1,000    
Trustreet Properties, Inc. 
            7.500%       4/01/15       AAA       1,086,411    
  500    
Ventas Realty LP, Series WI
            7.125%       6/01/15       BBB–       393,750    
  4,500    
Total Real Estate
                                    3,355,161    
                                                   

         
58
       
         


 

                                                   
Principal
                                   
Amount (000)     Description (1)         Coupon     Maturity     Ratings (4)     Value   
        Semiconductors & Equipment – 0.3%
$ 2,400    
Avago Technologies Finance Pte Limited
            10.125%       12/01/13       BB–     $ 1,839,000    
  2,000    
NXP BV
            5.541%       10/15/13       Caa1       672,500    
                                                   
  4,400    
Total Semiconductors & Equipment
                                    2,511,500    
        Software – 0.2%
  3,250    
Telcorida Technologies, Inc. 
            5.621%       7/15/12       B       1,592,500    
        Specialty Retail – 0.8%
  1,000    
Quiksilver Inc. 
            6.875%       4/15/15       B–       327,500    
  7,000    
Warnaco Inc., Senior Notes
            8.875%       6/15/13       BB+       6,387,500    
                                                   
  8,000    
Total Specialty Retail
                                    6,715,000    
        Textiles, Apparel & Luxury Goods – 0.4%
  4,000    
Jostens IH Corporation
            7.625%       10/01/12       B+       3,300,000    
        Wireless Telecommunication Services – 0.1%
  1,500    
IPCS, Inc. 
            5.318%       5/01/13       B1       1,072,500    
                                                   
$ 115,479    
Total Corporate Bonds (cost $116,586,699)
                                    74,610,128    
                                                   
Principal
                                   
Amount (000)/
                                   
Shares     Description (1)         Coupon     Maturity     Ratings (4)     Value   
        Capital Preferred Securities – 25.0% (17.2% of Total Investments)
        Capital Markets – 1.8%
  9,000    
C.A. Preferred Funding Trust
            7.000%       1/30/49       Aa3     $ 4,761,918    
  12,400    
Dresdner Funding Trust I, 144A
            8.151%       6/30/31       A2       4,916,426    
  6,700    
Kleinwort Benson Group PLC
            3.055%       12/31/99       N/R       3,450,500    
  2,200    
MUFG Capital Finance
            4.850%       7/25/56       BBB+       1,828,565    
                                                   
       
Total Capital Markets
                                    14,957,409    
                                                   
        Commercial Banks – 15.7%
  2,000    
AB Svensk Exportkredit, 144A
            6.375%       10/27/49       AA–       2,004,724    
  6,900    
Abbey National Capital Trust I
            8.963%       6/30/50       A+       5,442,651    
  41,600    
AgFirst Farm Credit Bank
            7.300%       12/15/53       A       40,777,235    
  7,870    
Bank One Capital III
            8.750%       9/01/30       Aa3       7,769,264    
  1,000    
BanPonce Trust I, Series A
            8.327%       2/01/27       Baa1       826,943    
  3,900    
Barclays Bank PLC, 144A
            8.550%       6/15/49       Aa3       1,915,419    
  1,000    
Barclays Bank PLC
            7.434%       12/15/57       Aa3       506,230    
  2,500    
BBVA International Preferred S.A., Unipersonal
            5.919%       4/18/58       Aa3       996,240    
  5,750    
First Empire Capital Trust I
            8.234%       2/01/27       A3       4,160,418    
  4,250    
First Midwest Bancorp Inc. 
            6.950%       12/01/33       Baa1       4,041,767    
  3,500    
First Union Capital Trust II, Series A
            7.950%       11/15/29       A2       2,885,474    
  11,800    
HBOS PLC, Series 144A
            6.413%       4/01/49       A1       4,583,899    
  9,300    
HSBC Capital Funding LP, Debt
            10.176%       6/30/50       A1       7,592,687    
  4,300    
JPM Chase Capital XXV
            6.800%       10/01/37       Aa3       3,973,824    
  15,905    
KBC Bank Fund Trust III, 144A
            9.860%       5/02/50       A1       7,282,995    
  4,000    
KeyCorp Capital III
            7.750%       7/15/29       A3       3,026,296    
  10,000    
North Fork Capital Trust II
            8.000%       12/15/27       Baa1       4,603,610    
  6,000    
Northgroup Preferred Capital Corporation, 144A
            6.378%       10/15/57       A1       2,830,266    
  2,000    
Reliance Capital Trust I, Series B
            8.170%       5/01/28       N/R       921,542    
  4,200    
Royal Bank of Scotland Group PLC
            9.118%       3/31/49       A1       3,586,653    
  3,500    
Shinsei Finance II Cayman Limited, Perpetual Maturity, 144A
            7.160%       7/25/49       Baa2       730,625    
  3,100    
Standard Chartered PLC, 144A
            6.409%       1/30/57       BBB+       1,143,234    
  9,600    
Standard Chartered PLC, 144A
            7.014%       1/30/58       BBB+       4,304,496    
  14,700    
Swedbank ForeningsSparbanken AB, 144A
            9.000%       9/17/50       A2       9,705,131    
  15,290    
Unicredito Italiano Capital Trust, 144A
            9.200%       4/05/51       A2       5,851,345    
  600    
Union Bank of Norway
            7.068%       11/19/49       A       709,426    
                                                   
       
Total Commercial Banks
                                    132,172,394    
                                                   
                                                   

         
    59    
         


 

 
     
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS December 31, 2008

                                                   
Principal
                                   
Amount (000)/
                                   
Shares     Description (1)         Coupon     Maturity     Ratings (4)     Value   
        Diversified Financial Services – 1.3%
  4,800    
Fulton Capital Trust I
            6.290%       2/01/36       A3     $ 2,198,621    
  21,500    
Old Mutual Capital Funding, Notes
            8.000%       6/22/53       Baa2       8,841,875    
                                                   
       
Total Diversified Financial Services
                                    11,040,496    
        Diversified Telecommunication Services – 1.5%
  19    
Centaur Funding Corporation, Series B, 144A
            9.080%       4/21/20       BBB       12,300,638    
        Insurance – 4.1%
  2,000    
Allstate Corporation
            6.500%       5/15/57       A–       1,127,054    
  10,000    
American General Capital II
            8.500%       7/01/30       Baa1       4,205,780    
  4,980    
American General Institutional Capital, 144A
            8.125%       3/15/46       Baa1       1,994,938    
  4,000    
AXA S.A., 144A
            6.463%       12/14/49       BBB+       1,749,716    
  750    
Great West Life and Annuity Insurance Company
            7.153%       5/16/46       A–       410,376    
  7,000    
Hartford Financial Services Group Inc. 
            8.125%       6/15/68       AAA       3,690,225    
  3,500    
Liberty Mutual Group
            7.800%       3/15/37       Baa3       1,572,942    
  1,550    
Nationwide Financial Services Capital Trust
            7.899%       3/01/37       Baa1       704,480    
  4,000    
Nationwide Financial Services Inc. 
            6.750%       5/15/67       Baa1       1,796,396    
  7,600    
Oil Insurance Limited, 144A
            7.558%       12/30/49       Baa1       2,864,600    
  3,800    
Progressive Corporation
            6.700%       6/15/67       A2       1,870,417    
  3,500    
Prudential Financial Inc. 
            8.875%       6/15/68       A–       2,257,815    
  1,000    
Prudential PLC
            6.500%       6/29/49       A–       440,749    
  9,000    
QBE Capital Funding Trust II, 144A
            6.797%       6/01/49       BBB       5,092,038    
  22,200    
XL Capital, Limited
            6.500%       10/15/57       BBB–       5,110,551    
                                                   
       
Total Insurance
                                    34,888,077    
        Real Estate – 0.0%
  2,000    
CBG Florida REIT Corporation
            7.114%       11/15/49       Ba1       326,208    
        Road & Rail – 0.6%
  7,600    
Burlington Northern Santa Fe Funding Trust I
            6.613%       12/15/55       BBB       4,798,055    
                                                   
        Thrifts & Mortgage Finance – 0.0%
  14,890    
Washington Mutual Preferred Funding Cayman, Series A-1, 144A (10)
            7.250%       3/15/49       C       10,422    
  632    
Washington Mutual Preferred Funding Trust II (10)
            6.665%       3/15/57       C       441    
                                                   
       
Total Thrifts & Mortgage Finance
                                    10,863    
                                                   
       
Total Capital Preferred Securities (cost $412,381,038)
                                    210,494,140    
                                                   
Shares     Description (1)                           Value   
        Investment Companies – 1.9% (1.3% of Total Investments)
  72,961    
Blackrock Preferred and Corporate Income Strategies Fund
                                  $ 442,144    
  682,749    
Blackrock Preferred Income Strategies Fund
                                    4,444,696    
  74,481    
Blackrock Preferred Opportunity Trust
                                    554,883    
  679,959    
Flaherty and Crumrine/Claymore Preferred Securities Income Fund Inc. 
                                    5,269,682    
  64,796    
Flaherty and Crumrine/Claymore Total Return Fund Inc. 
                                    521,608    
  469,287    
John Hancock Preferred Income Fund III
                                    5,166,850    
       
Total Investment Companies (cost $40,870,195)
                                    16,399,863    
                                                   

         
60
       
         


 

                                                   
Principal Amount (000)     Description (1)         Coupon     Maturity           Value   
        Short-Term Investments – 2.3% (1.6% of Total Investments)
$ 19,699    
Repurchase Agreement with Fixed Income Clearing Corporation, dated 12/31/08, repurchase price $19,708,343, collateralized by:
$8,520,000 U.S. Treasury Bonds, 8.125%, due 8/15/19, value $12,878,832, $3,440,000 U.S. Treasury Bonds, 8.750%, due 8/15/20, value $5,496,432, $460,000 U.S. Treasury Bonds, 6.625%, due 2/15/27, value $700,856 and $730,000 U.S. Treasury Bonds, 4.750%, due 2/15/37, value $1,031,782
            0.010%       1/02/09             $ 19,698,916    
                                                   
$ 19,699    
Total Short-Term Investments (cost $19,698,916)
                                    19,698,916    
                                                   
       
Total Investments (cost $1,942,550,583) – 145.0%
                                    1,223,313,756    
                                                   
Shares     Description (1)                           Value   
        Common Stocks Sold Short – (0.6)%
        Chemicals – (0.1)%
  (17,400 )  
Sigma-Aldrich Corporation
                                  $ (734,976 )  
        Commercial Services and Supplies – (0.0)%
  (2,500 )  
Strayer Education Inc. 
                                    (536,025 )  
        Health Care Equipment & Supplies – (0.3)%
  (20,600 )  
C. R. Bard, Inc. 
                                    (1,735,756 )  
  (9,000 )  
Chattem Inc., (2)
                                    (643,770 )  
                                                   
       
Total Health Care Equipment & Supplies
                                    (2,379,526 )  
        Specialty Retail – (0.2)%
  (11,600 )  
AutoZone, Inc., (2)
                                    (1,617,852 )  
                                                   
       
Total Common Stocks Sold Short (proceeds $5,784,462)
                                    (5,268,379 )  
                                                   
                                                   
Number of
              Notional
    Expiration
    Strike
       
Contracts     Type         Amount (11)     Date     Price     Value   
        Call Options Written – (0.1)%
  (1,032 )  
AngloGold Ashanti Limited
          $ (4,128,000 )     1/17/09     $ 40.0     $ (5,160 )  
  (245 )  
Arch Coal Inc.
            (1,225,000 )     1/17/09       50.0       (1,225 )  
  (221 )  
Arch Coal Inc.
            (1,215,500 )     1/17/09       55.0       (1,105 )  
  (990 )  
Arch Coal Inc.
            (1,485,000 )     4/18/09       15.0       (366,300 )  
  (1,778 )  
Barrick Gold Corporation
            (8,890,000 )     1/17/09       50.0       (8,890 )  
  (3,280 )  
BJ Services Company
            (7,380,000 )     1/17/09       22.5       (16,400 )  
  (834 )  
BP PLC
            (5,838,000 )     1/17/09       70.0       (4,170 )  
  (655 )  
Cameco Corporation
            (2,292,500 )     1/17/09       35.0       (3,275 )  
  (540 )  
Cameco Corporation
            (1,620,000 )     3/21/09       30.0       (4,050 )  
  (223 )  
Chevron Corporation
            (1,895,500 )     1/17/09       85.0       (1,673 )  
  (900 )  
eBay, Inc.
            (2,700,000 )     1/17/09       30.0       (900 )  
  (1,025 )  
Gold Fields Limited
            (1,537,500 )     1/17/09       15.0       (5,125 )  
  (1,800 )  
Ivanhoe Mines Ltd.
            (2,250,000 )     1/17/09       12.5       (9,000 )  
  (433 )  
KT Corporation
            (974,250 )     1/17/09       22.5       (21,650 )  
  (1,671 )  
Newmont Mining Corporation
            (8,355,000 )     1/17/09       50.0       (21,723 )  
  (588 )  
Nexen Inc.
            (1,764,000 )     1/17/09       30.0       (3,528 )  
  (3,087 )  
Republic Services Inc.
            (3,087,000 )     1/17/09       10.0       (401,310 )  
  (672 )  
Royal Dutch Shell PLC
            (5,040,000 )     1/17/09       75.0       (6,720 )  
  (1,888 )  
Smithfield Foods Inc.
            (5,664,000 )     1/17/09       30.0       (9,440 )  
  (2,950 )  
Sprint Nextel Corporation
            (2,360,000 )     2/21/09       8.0       (14,750 )  
  (670 )  
Tech Data Corporation
            (2,680,000 )     1/17/09       40.0       (3,350 )  
  (5,094 )  
Tyson Foods Inc.
            (7,641,000 )     1/17/09       15.0       (25,470 )  

         
    61    
         


 

 
     
   JQC
  Nuveen Multi-Strategy Income and Growth Fund 2 (continued)
Portfolio of INVESTMENTS December 31, 2008

                                                   
Number of
              Notional
    Expiration
    Strike
       
Contracts     Type         Amount (11)     Date     Price     Value   
        Call Options Written (continued)
                                                   
  (1,699 )  
Tyson Foods, Inc.
          $ (2,973,250 )     1/17/09     $ 17.5     $ (8,495 )  
  (540 )  
UBS AG
            (1,620,000 )     1/17/09       30.0       (2,700 )  
  (580 )  
UBS AG
            (2,320,000 )     1/17/09       40.0       (2,900 )  
                                                   
  (33,395 )  
Total Call Options Written (premiums received $10,680,873)
            (86,935,500 )                     (949,309 )  
                                                   
       
Borrowings – (26.6)% (12), (13)
                                    (224,200,000 )  
                                                   
       
Other Assets Less Liabilities – 2.0%
                                    16,373,331    
                                                   
       
FundPreferred Shares, at Liquidation Value – (19.7)% (12)
                                    (165,800,000 )  
                                                   
       
Net Assets Applicable to Common Shares – 100%
                                  $ 843,469,399    
                                                   
 
Investments in Derivatives
 
                                                                 
      Interest Rate Swaps outstanding at December 31, 2008:
 
                Fund
                Fixed Rate
          Unrealized
 
          Notional
    Pay/Receive
    Floating Rate
    Fixed Rate
    Payment
    Termination
    Appreciation
 
      Counterparty   Amount     Floating Rate     Index     (Annualized)     Frequency     Date     (Depreciation)   
        JPMorgan Chase   $ 97,000,000       Receive       1-Month USD-LIBOR       3.360 %     Monthly       1/23/09     $ (224,156 )
                                                                 
 
             
        (1)   All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
        (2)   Non-income producing.
        (3)   Investment, or portion of investment, has been pledged to collateralize the net payment obligations under call options written.
        (4)   Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor’s Group (‘Standard & Poor’s‘) or Moody’s Investor Service, Inc. (‘Moody’s‘) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be below investment grade.
        (5)   Senior Loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a Borrower to prepay, prepayments of Senior Loans may occur. As a result, the actual remaining maturity of Senior Loans held may be substantially less than the stated maturities shown.
        (6)   Senior Loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate (‘LIBOR‘), or (ii) the prime rate offered by one or more major United States banks.
            Senior Loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the Agent Bank and/or Borrower prior to the disposition of a Senior Loan.
        (7)   At or subsequent to December 31, 2008, this issue was under the protection of the Federal Bankruptcy Court.
        (8)   Non-income producing. Non-income producing, in the case of a Senior Loan, generally denotes that the issuer has defaulted on the payment of principal or interest or has filed for bankruptcy.
        (9)   Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives.
        (10)   At or subsequent to December 31, 2008, this issue was under protection of the Federal Bankruptcy Court. As a result, the Adviser has concluded this issue is not likely to meet its interest payment obligations and has directed the custodian to cease accruing additional income and “write-off” any remaining recorded balances on the Fund’s records.
        (11)   For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.
        (12)   Borrowings and FundPreferred Shares, at Liquidation Value as a percentage of Total Investments are 18.3% and 13.6%, respectively.
        (13)   The Fund may pledge up to 100% of its eligible investments in the Portfolio of Investments as collateral for Borrowings. As of December 31, 2008, investments with a value of $922,728,112 have been pledged as collateral for Borrowings.
        (14)   Investment valued at fair value using methods determined in good faith by, or at the discretion of, the Board of Trustees.
        N/A   Not applicable/not available.
        N/R   Not rated.
        DD1   Investment, or portion of investment, purchased on a delayed delivery basis.
        WI/DD   Purchased on a when-issued or delayed delivery basis.
        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.
        ADR   American Depositary Receipt
        CORTS   Corporate Backed Trust Securities
        PPLUS   PreferredPlus Trust
        SATURNS   Structured Asset Trust Unit Repackaging
        TBD   Senior Loan purchased on a when-issued or delayed-delivery basis. Certain details associated with this purchase are not known prior to the settlement date of the transaction. In addition, Senior Loans typically trade without accrued interest and therefore a weighted average coupon rate is not available prior to settlement. At settlement, if still unknown, the Borrower or counterparty will provide the Fund with the final weighted average coupon rate and maturity date.
        USD-LIBOR   United States Dollar-London Inter-Bank Offered Rate
See accompanying notes to financial statements.

         
62
       
         


 

 
         
         
    Statement of
ASSETS & LIABILITIES
        December 31, 2008
 
                 
    Multi-Strategy
    Multi-Strategy
    Income
    Income
    and Growth
    and Growth 2
    (JPC)     (JQC)
Assets
               
Investments, at value (cost $1,314,552,960 and $1,942,550,583, respectively)
  $ 810,426,577     $ 1,223,313,756  
Cash equivalents(1)
    97,187,840       101,554,426  
Cash denominated in foreign currencies (cost $1,256,652 and $1,468,947, respectively)
    1,247,271       1,455,149  
Receivables:
               
Dividends
    1,039,330       1,494,424  
Interest
    6,834,542       9,409,445  
Investments sold
    7,655,011       7,181,262  
Reclaims
    48,323       68,170  
Other assets
    136,093       189,776  
                 
Total assets
    924,574,987       1,344,666,408  
                 
Liabilities
               
Cash overdraft
    1,612,898       2,041,770  
Borrowings
    145,545,000       224,200,000  
Securities sold short, at value (proceeds $4,070,262 and $5,784,462, respectively)
    3,713,365       5,268,379  
Call options written, at value (premiums received $7,490,746 and $10,680,873, respectively)
    648,283       949,309  
Unrealized depreciation on interest rate swaps
    164,738       224,156  
Payables:
               
Investments purchased
    3,479,813       5,230,680  
FundPreferred shares noticed for redemption, at liquidation value
    92,900,000       95,525,000  
FundPreferred shares dividends
    2,801       3,492  
Accrued expenses:
               
Interest on borrowings
    22,742       34,590  
Management fees
    480,039       691,055  
Other
    657,659       1,228,578  
                 
Total liabilities
    249,227,338       335,397,009  
                 
FundPreferred shares, at liquidation value
    118,650,000       165,800,000  
                 
Net assets applicable to Common shares
  $ 556,697,649     $ 843,469,399  
                 
Common shares outstanding
    99,403,528       139,731,300  
                 
Net asset value per Common share outstanding (net assets applicable to
Common shares, divided by Common shares outstanding)
  $ 5.60     $ 6.04  
                 
                 
Net assets applicable to Common shares consist of:
               
                 
Common shares, $.01 par value per share
  $ 994,035     $ 1,397,313  
Paid-in surplus
    1,350,248,368       1,924,761,264  
Undistributed (Over-distribution of) net investment income
    (10,834,261 )     (19,517,521 )
Accumulated net realized gain (loss) from investments, foreign currency and derivative transactions
    (286,608,054 )     (353,937,280 )
Net unrealized appreciation (depreciation) of investments, foreign currency and derivative transactions
    (497,102,439 )     (709,234,377 )
                 
Net assets applicable to Common shares
  $ 556,697,649     $ 843,469,399  
                 
Authorized shares:
               
Common
    Unlimited       Unlimited  
FundPreferred
    Unlimited       Unlimited  
                 
     
(1)
  Segragated for the payment of FundPreferred shares and cash held at broker for call options written.
 
See accompanying notes to financial statements.

         
    63    
         


 

         
         
    Statement of
OPERATIONS
        Year Ended December 31, 2008
 
                 
    Multi-Strategy
    Multi-Strategy
    Income
    Income
    and Growth
    and Growth 2
    (JPC)     (JQC)
Investment Income
               
Dividends (net of foreign tax withheld of $579,611 and $758,055, respectively)
  $ 57,629,883     $ 77,899,898  
Interest
    37,999,332       57,386,890  
Fees
    9,662,083       13,020,807  
                 
Total investment income
    105,291,298       148,307,595  
                 
Expenses
               
Management fees
    13,793,680       19,116,275  
Dividend expense on securities sold short
    56,258       79,827  
FundPreferred shares – auction fees
    1,043,079       1,412,394  
FundPreferred shares – dividend disbursing agent fees
    33,554       49,017  
Shareholders’ servicing agent fees and expenses
    7,191       9,179  
Interest expense on borrowings and amortization of borrowing costs
    8,177,047       11,870,107  
Custodian’s fees and expenses
    503,272       654,032  
Trustees’ fees and expenses
    33,162       64,342  
Professional fees
    100,987       109,809  
Shareholders’ reports – printing and mailing expenses
    346,249       414,008  
Stock exchange listing fees
    34,096       47,943  
Investor relations expense
    272,566       370,615  
Other expenses
    118,759       114,821  
                 
Total expenses before custodian fee credit and expense reimbursement
    24,519,900       34,312,369  
Custodian fee credit
    (14,899 )     (13,242 )
Expense reimbursement
    (4,244,881 )     (6,519,479 )
                 
Net expenses
    20,260,120       27,779,648  
                 
Net investment income
    85,031,178       120,527,947  
                 
Realized and Unrealized Gain (Loss)
               
Net realized gain (loss) from:
               
Investments, securities sold short and foreign currency
    (294,158,827 )     (359,847,633 )
Call options written
    7,409,398       10,084,230  
Futures
    120,926       164,214  
Interest rate swaps
    (158,849 )     (177,435 )
Change in net unrealized appreciation (depreciation) of:
               
Investments, securities sold short and foreign currency
    (364,959,706 )     (517,460,941 )
Call options written
    7,662,991       10,773,199  
Interest rate swaps
    (750,783 )     (1,069,643 )
                 
Net realized and unrealized gain (loss)
    (644,834,850 )     (857,534,009 )
                 
Distributions to FundPreferred Shareholders
               
From net investment income
    (14,437,529 )     (19,760,201 )
                 
Decrease in net assets applicable to Common shares from
distributions to FundPreferred shareholders
    (14,437,529 )     (19,760,201 )
                 
Net increase (decrease) in net assets applicable to Common shares from operations
  $ (574,241,201 )   $ (756,766,263 )
                 
 
See accompanying notes to financial statements.

         
64
       
         


 

     
     
    Statement of
CHANGES in NET ASSETS
 
                                 
    Multi-Strategy
  Multi-Strategy
    Income and Growth (JPC)   Income and Growth 2 (JQC)
    Year Ended
    Year Ended
  Year Ended
    Year Ended
    12/31/08     12/31/07   12/31/08     12/31/07
Operations
                               
Net investment income
  $ 85,031,178     $ 96,883,727     $ 120,527,947     $ 136,499,508  
Net realized gain (loss) from:
                               
Investments, securities sold short and foreign currency
    (294,158,827 )     57,604,857       (359,847,633 )     81,823,643  
Call options written
    7,409,398       (825,947 )     10,084,230       (1,262,638 )
Futures
    120,926       (9,930,657 )     164,214       (14,369,007 )
Interest rate swaps
    (158,849 )     3,200,749       (177,435 )     4,297,734  
Change in net unrealized appreciation (depreciation) of:
                               
Investments, securities sold short and foreign currency
    (364,959,706 )     (180,585,322 )     (517,460,941 )     (249,891,319 )
Call options written
    7,662,991       (820,528 )     10,773,199       (1,041,635 )
Interest rate swaps
    (750,783 )     (3,662,494 )     (1,069,643 )     (4,936,771 )
Distributions to FundPreferred shareholders:
                               
From net investment income
    (14,437,529 )     (27,675,110 )     (19,760,201 )     (36,573,078 )
From accumulated net realized gains
          (9,138,483 )           (13,728,192 )
                                 
Net increase (decrease) in net assets applicable to Common shares from operations
    (574,241,201 )     (74,949,208 )     (756,766,263 )     (99,181,755 )
                                 
Distributions to Common Shareholders
                               
From net investment income
    (68,962,084 )     (76,330,955 )     (100,913,728 )     (111,173,317 )
From accumulated net realized gains
          (25,112,801 )           (41,701,368 )
Tax return of capital
    (30,441,444 )     (12,226,104 )     (39,376,498 )     (7,272,288 )
                                 
Decrease in net assets applicable to Common shares from distributions to Common shareholders
    (99,403,528 )     (113,669,860 )     (140,290,226 )     (160,146,973 )
                                 
Capital Share Transactions
                               
Common shares repurchased
          (3,326,834 )     (426,558 )     (7,872,338 )
Net proceeds from Common shares issued to shareholders due to reinvestment of distributions
          337,266              
                                 
Net increase (decrease) in net assets applicable to Common shares from capital share transactions
          (2,989,568 )     (426,558 )     (7,872,338 )
                                 
Net increase (decrease) in net assets applicable to Common shares
    (673,644,729 )     (191,608,636 )     (897,483,047 )     (267,201,066 )
Net assets applicable to Common shares at the beginning of year
    1,230,342,378       1,421,951,014       1,740,952,446       2,008,153,512  
                                 
Net assets applicable to Common shares at the end of year
  $ 556,697,649     $ 1,230,342,378     $ 843,469,399     $ 1,740,952,446  
                                 
Undistributed (Over-distribution of) net investment income at the end of year
  $ (10,834,261 )   $ (11,441,461 )   $ (19,517,521 )   $ (20,601,671 )
                                 
 
See accompanying notes to financial statements.

         
    65    
         


 

         
         
    Statement of
CASH FLOWS
        Year Ended December 31, 2008
 
                 
    Multi-Strategy
  Multi-Strategy
    Income
  Income
    and Growth
  and Growth 2
    (JPC)   (JQC)
Cash Flows from Operating Activities:
               
Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations
  $ (574,241,201 )   $ (756,766,263 )
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities:
               
Purchases of investments and securities sold short
    (561,245,936 )     (811,219,654 )
Proceeds from sales and maturities of investments and securities sold short
    997,934,562       1,330,965,210  
Proceeds from (Purchases of) short-term investments, net
    22,023,717       67,427,532  
Proceeds from (Purchases of) cash denominated in foreign currencies, net
    (813,110 )     (1,468,947 )
Proceeds from closed foreign currency spot contracts
    69,881       80,110  
Payments for call options terminated
    (4,148,000 )     (5,699,361 )
Premiums received for call options written
    12,100,106       16,763,396  
Proceeds from (Payments for) closed futures contracts
    120,926       164,214  
Proceeds from (Payments for) closed interest rate swaps
    (158,849 )     (177,435 )
Amortization (Accretion) of premiums and discounts, net
    (318,519 )     (330,878 )
(Increase) Decrease in receivable for dividends
    1,262,937       1,202,543  
(Increase) Decrease in receivable for interest
    1,631,999       3,552,510  
(Increase) Decrease in receivable for investments sold
    (6,111,640 )     (875,416 )
(Increase) Decrease in receivable for reclaims
    (20,420 )     45,329  
(Increase) Decrease in other assets
    15,138       4,692  
Increase (Decrease) in payable for investments purchased
    1,468,392       (1,100,055 )
Increase (Decrease) in payable for FundPreferred shares dividends
    (408,473 )     (642,043 )
Increase (Decrease) in payable for securities sold short dividends
    (19,038 )     (26,790 )
Increase (Decrease) in accrued interest on borrowings
    22,742       34,590  
Increase (Decrease) in accrued management fees
    (401,870 )     (499,808 )
Increase (Decrease) in accrued other liabilities
    95,935       555,984  
Net realized (gain) loss from investments, securities sold short and foreign currency
    294,158,827       359,847,633  
Net realized (gain) loss from call options written
    (7,409,398 )     (10,084,230 )
Net realized (gain) loss from futures
    (120,926 )     (164,214 )
Net realized (gain) loss from interest rate swaps
    158,849       177,435  
Net realized (gain) loss from paydowns
    (782,104 )     (1,155,165 )
Change in net unrealized (appreciation) depreciation of investments, securities sold short and foreign currency
    364,959,706       517,460,941  
Change in net unrealized (appreciation) depreciation of call options written
    (7,662,991 )     (10,773,199 )
Change in net unrealized (appreciation) depreciation of interest rate swaps
    750,783       1,069,643  
Capital gains and return of capital distributions from investments
    345,703       279,064  
                 
Net cash provided by (used in) operating activities
    533,257,728       698,647,368  
                 
Cash Flows from Financing Activities:
               
Increase (Decrease) in cash overdraft balance
    1,612,898       2,041,770  
Increase (Decrease) in borrowings
    145,545,000       224,200,000  
Increase (Decrease) in payable for FundPreferred shares noticed for redemption, at liquidation value
    92,900,000       95,525,000  
Increase (Decrease) in FundPreferred shares
    (589,350,000 )     (799,200,000 )
Cash distributions paid to Common shareholders
    (99,403,528 )     (140,290,226 )
Cost of Common shares repurchased
          (426,558 )
                 
Net cash provided by (used in) financing activities
    (448,695,630 )     (618,150,014 )
                 
Net Increase (Decrease) in Cash
    84,562,098       80,497,354  
Cash and cash equivalents at the beginning of year
    12,625,742       21,057,072  
                 
Cash and cash equivalents at the End of Year
  $ 97,187,840     $ 101,554,426  
                 
 
Supplemental Disclosure of Cash Flow Information
 
Cash paid for interest on borrowings (excluding amortization of borrowing costs) was $7,471,805 and $10,459,518 for Multi-Strategy Income and Growth (JPC) and Multi-Strategy Income and Growth 2 (JQC), respectively.
 
See accompanying notes to financial statements.

         
66
       
         


 

 
     
     
    Notes to
FINANCIAL STATEMENTS
 
1.  General Information and Significant Accounting Policies
The funds covered in this report and their corresponding Common share New York Stock Exchange symbols are Nuveen Multi-Strategy Income and Growth Fund (JPC) and Nuveen Multi-Strategy Income and Growth Fund 2 (JQC) (collectively, the “Funds”). The Funds are registered under the Investment Company Act of 1940, as amended, as diversified, closed-end management investment companies.
 
Each Fund seeks to provide high income by investing primarily in a portfolio of preferred securities, domestic and international equity securities, high yield securities and convertible securities.
 
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with US generally accepted accounting principles.
 
Investment Valuation
Exchange-listed securities are generally valued at the last sales price on the security exchange on which such securities are primarily traded. Securities traded on a securities exchange for which there are no transactions on a given day or securities not listed on a securities exchange are valued at the mean of the closing bid and asked prices. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Prices of fixed-income securities, senior loans and derivative instruments are provided by an independent pricing service approved by the Funds’ Board of Trustees. The value of options written are based on the last sale price in the case of exchange-traded options or, in the case of options traded in the OTC market, the last asked price. Futures contracts are valued using the closing settlement price or, in the absence of such a price, at the mean of the bid and asked prices. When market price quotes are not readily available, the pricing service or in the absence of a pricing service for a particular investment or derivative instrument, the Board of Trustees of the Funds, or its designee, may establish fair value using a wide variety of market data including yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics considered relevant. Short-term investments are valued at amortized cost, which approximates value.
 
The senior loans in which the Funds invest are not listed on an organized exchange and the secondary market for such investments may be less liquid relative to markets for other fixed-income securities. Consequently, the value of senior loans, determined as described above, may differ significantly from the value that would have been determined had there been an active market for that senior loan.
 
Investment Transactions
Investment transactions are recorded on a trade date basis. Trade date for senior loans purchased in the “primary market” is considered the date on which the loan allocations are determined. Trade date for senior loans purchased in the “secondary market” is the date on which the transaction is entered into. Realized gains and losses from investment transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At December 31, 2008, Multi-Strategy Income and Growth (JPC) and Multi-Strategy Income and Growth 2 (JQC) had outstanding when-issued/delayed delivery purchase commitments of $2,037,117 and $3,107,834 respectively.
 
Investment Income
Dividend income on securities purchased and dividend expense on securities sold short are recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also includes paydown gains and losses and fee income, if any. Fee income consists primarily of amendment fees. Amendment fees are earned as compensation for evaluating and accepting changes to an original senior loan agreement and are recognized when received.
 
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required.
 
For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by

         
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    Notes to
FINANCIAL STATEMENTS (continued)

taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Further, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
 
Dividends and Distributions to Common Shareholders
Distributions to Common shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal corporate income tax regulations, which may differ from US generally accepted accounting principles.
 
The Funds make quarterly cash distributions to Common shareholders of a stated dollar amount per share. Subject to approval and oversight by the Funds’ Board of Trustees, each Fund seeks to maintain a stable distribution level designed to deliver the long-term return potential of each Fund’s investment strategy through regular quarterly distributions (a “Managed Distribution Program”). Total distributions during a calendar year generally will be made from each Fund’s net investment income, net realized capital gains and net unrealized capital gains in the Fund’s portfolio, if any. The portion of distributions paid from net unrealized gains, if any, would be distributed from the Fund’s assets and would be treated by shareholders as a non-taxable distribution for tax purposes. In the event that total distributions during a calendar year exceed a Fund’s total return on net asset value, the difference will be treated as a return of capital for tax purposes and will reduce net asset value per share. If a Fund’s total return on net asset value exceeds total distributions during a calendar year, the excess will be reflected as an increase in net asset value per share. The final determination of the source and character of all distributions for the fiscal year are made after the end of the fiscal year and are reflected in the accompanying financial statements.
 
FundPreferred Shares
The Funds have issued and outstanding FundPreferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund’s FundPreferred shares are issued in more than one Series. The dividend rate paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. As of December 31, 2008, the number of FundPreferred shares outstanding, by Series and in total, for each Fund is as follows:
 
                 
    Multi-Strategy
    Multi-Strategy
 
    Income and
    Income and
 
    Growth (JPC)     Growth 2 (JQC)  
Number of shares:
               
Series M
    791       663  
Series M2
          663  
Series T
    791       663  
Series T2
          663  
Series W
    791       663  
Series W2
          664  
Series TH
    791       664  
Series TH2
          663  
Series F
    791       663  
Series F2
    791       663  
                 
                 
Total
    4,746       6,632  
                 
 
Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the FundPreferred shares issued by the Funds than there were offers to buy. This meant that these auctions “failed to clear,” and that many FundPreferred shareholders who wanted to sell their shares in these auctions were unable to do so. FundPreferred shareholders unable to sell their shares received distributions at the “maximum rate” applicable to failed auctions as calculated in accordance with the pre-established terms of the FundPreferred shares.
 
These developments have generally not affected the portfolio management or investment policies of the Funds. However, one implication of these auction failures for Common shareholders is that the Funds’ cost of leverage will likely to be higher, at least temporarily, than it otherwise would have been had the auctions continued to be successful. As a result, the Funds’ future Common share earnings may be lower than they otherwise would have been.
 
As of December 31, 2008, Multi-Strategy Income and Growth (JPC) and Multi-Strategy Income and Growth 2 (JQC) redeemed/noticed for redemption $589,350,000 and $799,200,000 of their outstanding FundPreferred shares at liquidation value, respectively.

         
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Short Sales
Each Fund is authorized to make short sales of securities. To secure its obligation to deliver securities sold short, each Fund has instructed the custodian to segregate assets of the Fund as collateral with an equivalent amount of the securities sold short. The collateral required is determined by reference to the market value of the short positions. Each Fund is obligated to pay to the party to which the securities were sold short, dividends declared on the stock by the issuer and records such amounts as “Dividend expense on securities sold short” on the Statement of Operations. Short sales are valued daily and the corresponding unrealized gains or losses are included in “Change in net unrealized appreciation (depreciation) of investments, securities sold short and foreign currency” on the Statement of Operations.
 
Liabilities for securities sold short are reported at market value in the accompanying financial statements. Short sale transactions result in off-balance sheet risk because the ultimate obligation may exceed the related amounts shown on the Statement of Assets and Liabilities. Each Fund will incur a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. Each Fund’s loss on a short sale is potentially unlimited because there is no upward limit on the price a borrowed security could attain. Each Fund will realize a gain if the price of the security declines between those dates.
 
Foreign Currency Transactions
Each Fund is authorized to engage in foreign currency exchange transactions including foreign currency forward, futures, options and swap contracts. To the extent that the Funds invest in securities and/or contracts that are denominated in a currency other than U.S. dollars, the Funds will be subject to currency risk, which is the risk that an increase in the U.S. dollar relative to the foreign currency will reduce returns or portfolio value. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because its currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value. Investments and other assets and liabilities denominated in foreign currencies are converted into U.S. dollars on a spot (i.e. cash) basis at the spot rate prevailing in the foreign currency exchange market at the time of valuation. Purchases and sales of investments and income denominated in foreign currencies are translated into U.S. dollars on the respective dates of such transactions.
 
The books and records of the Funds are maintained in U.S. dollars. Foreign currencies, investments and other assets and liabilities are translated into U.S. dollars at 4:00 p.m. Eastern time. Investments and income and expenses are translated on the respective dates of such transactions. Net realized foreign currency gains and losses resulting from changes in exchange rates include foreign currency gains and losses between trade date and settlement date of the transactions, foreign currency transactions, and the difference between the amounts of interest and dividends recorded on the books of the Funds and the amounts actually received.
 
The realized and unrealized gains or losses resulting from changes in foreign exchange rates are included in “Net realized gain (loss) from investments, securities sold short and foreign currency” and “Change in net unrealized appreciation (depreciation) of investments, securities sold short and foreign currency” on the Statement of Operations.
 
Futures Contracts
Each Fund is authorized to invest in futures contracts. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the “initial margin.” Subsequent payments (“variation margin”) are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract.
 
During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by “marking-to-market” on a daily basis to reflect the changes in market value of the contract. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and the value of the contract when originally entered into. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized on the Statement of Assets and Liabilities. Additionally, the Statement of Assets and Liabilities reflects a receivable or payable for the variation margin, when applicable. At December 31, 2008, there were no open futures contracts in either Fund.
 
Risks of investments in futures contracts include the possible adverse movement of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices.

         
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    Notes to
FINANCIAL STATEMENTS (continued)

 
Interest Rate Swap Transactions
Each Fund is authorized to invest in interest rate swap transactions. Each Fund’s use of interest rate swap transactions is intended to mitigate the negative impact that an increase in short-term interest rates could have on Common share net earnings as a result of leverage. Interest rate swap transactions involve each Fund’s agreement with the counterparty to pay or receive a fixed rate payment in exchange for the counterparty receiving or paying a variable rate payment that is intended to approximate each Fund’s variable rate payment obligation on FundPreferred shares or any variable rate borrowing. The payment obligation is based on the notional amount of the interest rate swap contract. Interest rate swaps do not involve the delivery of securities or other underlying assets or principal. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the net amount of interest payments that each Fund is to receive. Interest rate swap positions are valued daily. Each Fund accrues the fixed rate payment expected to be paid or received and the variable rate payment expected to be received or paid on interest rate swap contracts on a daily basis, and recognizes an unrealized gain or loss for the daily changes in the market value of the Fund’s contractual rights and obligations under the contracts. The net amount recorded for these transactions is recognized on the Statement of Assets and Liabilities. Once periodic payments are settled in cash, the net amount is recorded as net realized gain or loss from interest rate swaps, in addition to net realized gain or loss recorded upon the termination of interest rate swap contracts on the Statement of Operations. For tax purposes, periodic payments are treated as ordinary income or expense.
 
Options Transactions
Each Fund is authorized to purchase and write (sell) call and put options on securities, futures, swaps (“swaptions”) or currencies. The purchase of put options involves the risk of loss of all or a part of the cash paid for the options. Put options purchased are accounted for in the same manner as portfolio securities. The risk associated with purchasing put options is limited to the premium paid. When a Fund writes an option, an amount equal to the net premium received (the premium less commission) is recorded as a liability and is subsequently adjusted to reflect the current value of the written option until the option expires or a Fund enters into a closing purchase transaction. When a call or put option expires or a Fund enters into a closing purchase transaction, the difference between the net premium received and any amount paid at expiration or on effecting a closing purchase transaction, including commission, is treated as a net realized gain on option contracts written or, if the net premium received is less than the amount paid, as a net realized loss on option contracts written. Each Fund, as a writer of an option, has no control over whether the underlying instrument may be sold (called) or purchased (put) and as a result bears the risk of an unfavorable change in the market value of the instrument underlying the written option. There is the risk a Fund may not be able to enter into a closing transaction because of an illiquid market.
 
Market and Credit Risk
In the normal course of business each Fund invests in financial instruments and enters into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (credit risk). Similar to credit risk, each Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which the Fund has unsettled or open transactions will default. The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to credit risk, consist principally of cash due from counterparties on forward, option and swap transactions. The extent of each Fund’s exposure to credit and counterparty risks in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities.
 
Each Fund helps manage credit risk by entering into agreements only with counterparties Nuveen Asset Management (the “Adviser”), a wholly-owned Subsidiary of Nuveen Investments Inc. (“Nuveen”) believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the predetermined threshold amount.
 
Repurchase Agreements
In connection with transactions in repurchase agreements, it is the Funds’ policy that its custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. If the seller defaults, and the fair value of the collateral declines, realization of the collateral may be delayed or limited.
 
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the

         
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original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolios of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
 
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund’s cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank.
 
Indemnifications
Under the Funds’ organizational documents, their Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
 
Use of Estimates
The preparation of financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates.
 
2.  Fair Value Measurements
During the current fiscal period, the Funds adopted the provisions of Statement of Financial Accounting Standards No. 157 (SFAS No. 157) “Fair Value Measurements.” SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. In determining the value of the Funds’ investments various inputs are used. These inputs are summarized in the three broad levels listed below:
 
  Level 1 — Quoted prices in active markets for identical securities.
  Level 2 — Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
  Level 3 — Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
 
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
 
The following is a summary of each Fund’s fair value measurements as of December 31, 2008:
 
                                 
Multi-Strategy Income and Growth (JPC)   Level 1     Level 2     Level 3     Total  
Investments
  $ 403,229,742     $ 403,687,870     $ 3,508,965     $ 810,426,577  
Derivatives*
          (164,738 )           (164,738 )
Securities sold short
    (3,713,365 )                 (3,713,365 )
Call options written
    (648,283 )                 (648,283 )
                                 
Total
  $ 398,868,094     $ 403,523,132     $ 3,508,965     $ 805,900,191  
                                 
 
                                 
Multi-Strategy Income and Growth 2 (JQC)   Level 1     Level 2     Level 3     Total  
Investments
  $ 625,807,788     $ 592,574,449     $ 4,931,519     $ 1,223,313,756  
Derivatives*
          (224,156 )           (224,156 )
Securities sold short
    (5,268,379 )                 (5,268,379 )
Call options written
    (949,309 )                 (949,309 )
                                 
Total
  $ 619,590,100     $ 592,350,293     $ 4,931,519     $ 1,216,871,912  
                                 
Represents net unrealized appreciation (depreciation). Derivatives may include outstanding futures, forwards and swap contracts. See Investments in Derivatives in the Portfolio of Investments.

         
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    Notes to
FINANCIAL STATEMENTS (continued)

 
The following is a reconciliation of each Fund’s Level 3 investments held at the beginning and end of the measurement period:
 
                 
    Multi-Strategy
    Multi-Strategy
 
    Income and Growth (JPC)
    Income and Growth 2 (JQC)
 
    Level 3
    Level 3
 
    Investments     Investments  
Balance at beginning of year
  $ 4,003,008     $ 5,625,849  
Gains (losses):
               
Net realized gains (losses)
    568,137       798,463  
Net change in unrealized appreciation (depreciation)
    (256,902 )     (361,052 )
Net purchases at cost (sales at proceeds)
    (850,057 )     (1,194,674 )
Net discounts (premiums)
    44,779       62,933  
Net transfers in to (out of) at end of period fair value
           
                 
Balance at end of year
  $ 3,508,965     $ 4,931,519  
                 
 
Multi-Strategy Income and Growth (JPC) “Change in net unrealized appreciation (depreciation) of investments, securities sold short and foreign currency” presented on the Statement of Operations includes $(256,715) of net appreciation (depreciation) related to securities classified as Level 3 at year end.
 
Multi-Strategy Income and Growth 2 (JQC) “Change in net unrealized appreciation (depreciation) of investments, securities sold short and foreign currency” presented on the Statement of Operations includes $(360,789) of net appreciation (depreciation) related to securities classified as Level 3 at year end.
 
3.  Fund Shares
Common Shares
On November 21, 2007, the Funds’ Board of Trustees approved an open market share repurchase program, as part of a broad, ongoing effort designed to support the market prices of the Funds’ Common shares. Under the terms of the program, each Fund may repurchase up to 10% of its outstanding Common shares.
 
Transactions in Common shares were as follows:
 
                                 
    Multi-Strategy
    Multi-Strategy
 
    Income and Growth (JPC)     Income and Growth 2 (JQC)  
    Year
    Year
    Year
    Year
 
    Ended
    Ended
    Ended
    Ended
 
    12/31/08     12/31/07     12/31/08     12/31/07  
Common shares:
                               
Repurchased
          (311,100 )     (38,900 )     (725,600 )
Issued to shareholders due to reinvestments of distributions
          23,651              
                                 
            (287,449 )     (38,900 )     (725,600 )
                                 
Weighted average price per Common share repurchased
          $10.67       $10.95       $10.83  
Weighted average discount per Common share repurchased
          13.81 %     12.44 %     13.85 %
                                 

         
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FundPreferred Shares
Transactions in FundPreferred shares were as follows:
 
                                                                 
    Multi-Strategy
    Multi-Strategy
 
    Income and Growth (JPC)     Income and Growth 2 (JQC)  
    Year Ended
    Year Ended
    Year Ended
    Year Ended
 
    12/31/08     12/31/07     12/31/08     12/31/07  
    Shares     Amount     Shares     Amount     Shares     Amount     Shares     Amount  
FundPreferred shares redeemed and/or noticed for redemption:
                                                               
Series M
    3,929     $ 98,225,000             $  —       3,197     $ 79,925,000             $ —  
Series M2
                            3,197       79,925,000              
Series T
    3,929       98,225,000                   3,197       79,925,000              
Series T2
                            3,197       79,925,000              
Series W
    3,929       98,225,000                   3,197       79,925,000              
Series W2
                            3,196       79,900,000              
Series TH
    3,929       98,225,000                   3,196       79,900,000              
Series TH2
                            3,197       79,925,000              
Series F
    3,929       98,225,000                   3,197       79,925,000              
Series F2
    3,929       98,225,000                   3,197       79,925,000              
                                                                 
      23,574     $ 589,350,000             $ —       31,968     $ 799,200,000             $ —  
                                                                 
 
4.  Investment Transactions
Purchases and sales (including maturities and proceeds from securities sold short, but excluding short-term investments, call options written and derivative transactions) during the fiscal year ended December 31, 2008, were as follows:
 
                 
    Multi-Strategy
    Multi-Strategy
 
    Income
    Income
 
    and Growth
    and Growth 2
 
    (JPC)     (JQC)  
Purchases:
               
Investment securities
    $557,999,692       $808,170,015  
U.S. Government and agency obligations
    3,246,244       3,049,639  
Sales and maturities:
               
Investment securities
    995,499,319       1,328,238,400  
U.S. Government and agency obligations
    2,435,243       2,726,810  
                 
 
Transactions in call options written during the fiscal year ended December 31, 2008, were as follows:
 
                                 
    Multi-Strategy
    Multi-Strategy
 
    Income and Growth (JPC)     Income and Growth 2 (JQC)  
    Number of
    Premiums
    Number of
    Premiums
 
    Contracts     Received     Contracts     Received  
                                 
Outstanding, beginning of year
    29,645     $ 6,960,983       40,830     $ 9,718,151  
Options written
    46,360       12,100,106       63,955       16,763,396  
Options terminated in closing purchase transactions
    (22,599 )     (4,592,122 )     (31,155 )     (6,632,183 )
Options expired
    (21,476 )     (4,821,708 )     (27,515 )     (5,970,300 )
Options exercised
    (8,654 )     (2,156,513 )     (12,720 )     (3,198,191 )
                                 
Outstanding, end of year
    23,276     $ 7,490,746       33,395     $ 10,680,873  
                                 

         
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    Notes to
FINANCIAL STATEMENTS (continued)

 
5.  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 the treatment of paydown gains and losses, recognition of premium amortization, timing differences in the recognition of income on REIT investments and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in 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 values of the Funds.
 
At December 31, 2008, the cost of investments (excluding proceeds received on securities sold short and call options written) was as follows:
 
                 
    Multi-Strategy
       
    Income and
    Multi-Strategy Income and
 
    Growth (JPC)     Growth 2 (JQC)  
Cost of investments
    $1,329,659,328       $1,967,591,847  
                 
 
Gross unrealized appreciation and gross unrealized depreciation of investments (excluding proceeds received on securities sold short and call options written) at December 31, 2008, were as follows:
 
                 
    Multi-Strategy
    Multi-Strategy
 
    Income and
    Income and
 
    Growth (JPC)     Growth 2 (JQC)  
Gross unrealized:
               
Appreciation
  $ 6,367,373     $ 8,791,523  
Depreciation
    (525,600,124 )     (753,069,614 )
                 
Net unrealized appreciation (depreciation) of investments
  $  (519,232,751 )   $  (744,278,091 )
                 
 
The tax components of undistributed net ordinary income and net long-term capital gains at December 31, 2008, the Funds’ tax year end, were as follows:
 
                 
    Multi-Strategy
    Multi-Strategy
 
    Income and
    Income and
 
    Growth (JPC)     Growth 2 (JQC)  
Undistributed net ordinary income *
  $   —     $   —  
Undistributed net long-term capital gains
           
                 
Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.
 
The tax character of distributions paid during the Funds’ tax years ended December 31, 2008 and December 31, 2007, was designated for purposes of the dividends paid deduction as follows:
 
                 
    Multi-Strategy
    Multi-Strategy
 
    Income and
    Income and
 
2008   Growth (JPC)     Growth 2 (JQC)  
Distributions from net ordinary income *
    $83,808,086       $121,315,972  
Distributions from net long-term capital gains
           
Tax return of capital
    30,441,444       39,376,498  
                 
 
                 
    Multi-Strategy
    Multi-Strategy
 
    Income and
    Income and
 
2007   Growth (JPC)     Growth 2 (JQC)  
Distributions from net ordinary income *
    $138,358,876       $200,640,767  
Distributions from net long-term capital gains
          2,560,636  
Tax return of capital
    12,226,104       7,272,288  
                 
 Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.
 
At December 31, 2008, the Funds’ tax year end, Multi-Strategy Income and Growth (JPC) and Multi-Strategy Income and Growth 2 (JQC) had unused capital loss carryforwards of $215,894,596 and $268,355,995, respectively, available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforward for both Funds will both expire on December 31, 2016.

         
74
       
         


 

The Funds have elected to defer net realized losses from investments incurred from November 1, 2008 through December 31, 2008, the Funds’ tax year end, (“post-October losses”) in accordance with federal income tax regulations. Post-October losses are treated as having arisen on the first day of the following fiscal year:
 
                 
    Multi-Strategy
    Multi-Strategy
 
    Income and
    Income and
 
    Growth (JPC)     Growth 2 (JQC)  
Post-October capital losses
    $65,781,711       $79,115,027  
                 
 
Calculation of certain of the amounts presented above (namely, undistributed net ordinary income for tax purposes) involves the application of complex aspects of the Internal Revenue Code to certain securities held by the Funds. In calculating the amount of taxable income derived from these securities, management made assumptions as to the correct tax treatment of certain of those securities and made estimates about the tax characteristics of income received from those securities, based on information currently available to the Funds. The use of these assumptions and estimates will not affect the qualification of the Funds as regulated investment companies under Subchapter M of the Internal Revenue Code, nor is it expected that these assumptions and estimates will be used in computing taxable income for purposes of preparing the federal and state income and excise tax returns.
 
6.  Management Fees and Other Transactions with Affiliates
Each Fund’s management fee is separated into two components — a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser, and a specific fund-level component, based only on the amount of assets within each individual Fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
 
The annual fund-level fee, payable monthly, for each Fund is based upon the average daily Managed Assets of each Fund as follows:
 
         
Average Daily Managed Assets   Fund-Level Fee Rate
For the first $500 million
    .7000 %
For the next $500 million
    .6750  
For the next $500 million
    .6500  
For the next $500 million
    .6250  
For Managed Assets over $2 billion
    .6000  
         
 
The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the following table. As of December 31, 2008, the complex-level fee rate was .2000%.
 
The complex-level fee schedule is as follows:
 
         
Complex-Level Asset Breakpoint Level (1)   Effective Rate at Breakpoint Level
$55 billion
    .2000 %
$56 billion
    .1996  
$57 billion
    .1989  
$60 billion
    .1961  
$63 billion
    .1931  
$66 billion
    .1900  
$71 billion
    .1851  
$76 billion
    .1806  
$80 billion
    .1773  
$91 billion
    .1691  
$125 billion
    .1599  
$200 billion
    .1505  
$250 billion
    .1469  
$300 billion
    .1445  
         
(1)  The complex-level component of the management fee for the funds is calculated based upon the aggregate daily net assets of all Nuveen funds, with such daily net assets to include assets attributable to preferred stock issued by or borrowings by such funds (“Managed Assets”) but to exclude assets attributable to investments in other Nuveen funds.
 
The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser is responsible for the overall strategy and asset allocation decisions. The Adviser has entered into Sub-Advisory Agreements with Spectrum Asset Management, Inc. (“Spectrum”), Symphony Asset Management, LLC (“Symphony”) and Tradewinds Global Investors, LLC (“Tradewinds”). Symphony and Tradewinds are both subsidiaries of Nuveen. Spectrum manages the portion of the Funds’ investment portfolios allocated to preferred securities. Symphony manages the portion of the Funds’ investment portfolios

         
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    Notes to
FINANCIAL STATEMENTS (continued)

allocated to debt securities and certain equity investments. Tradewinds manages the portion of the Funds’ investment portfolios allocated to global equities. Each sub-adviser is compensated for its services to the Funds from the management fees paid to the Adviser. Spectrum also receives compensation on certain portfolio transactions for providing brokerage services to the Funds.
 
The Funds pay no compensation directly to those of its Trustees who are affiliated with the Adviser or to its Officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Trustees has adopted a deferred compensation plan for independent Trustees that enables Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds.
 
For the first eight years of Multi-Strategy Income and Growth’s (JPC) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily Managed Assets, for fees and expenses in the amounts and for the time periods set forth below:
 
                     
Year Ending
      Year Ending
   
March 31,       March 31,    
2003 *
    .32 %   2008     .32 %
2004
    .32     2009     .24  
2005
    .32     2010     .16  
2006
    .32     2011     .08  
2007
    .32              
                     
From the commencement of operations.
 
The Adviser has not agreed to reimburse Multi-Strategy Income and Growth (JPC) for any portion of its fees and expenses beyond March 31, 2011.
 
For the first eight years of Multi-Strategy Income and Growth 2’s (JQC) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily Managed Assets, for fees and expenses in the amounts and for the time periods set forth below:
 
                     
Year Ending
      Year Ending
   
June 30,       June 30,    
2003 *
    .32 %   2008     .32 %
2004
    .32     2009     .24  
2005
    .32     2010     .16  
2006
    .32     2011     .08  
2007
    .32              
                     
From the commencement of operations.
 
The Adviser has not agreed to reimburse Multi-Strategy Income and Growth 2 (JQC) for any portion of its fees and expenses beyond June 30, 2011.
 
7.  Senior Loan Commitments
Unfunded Commitments
Pursuant to the terms of certain of the variable rate senior loan agreements, Each Fund may have unfunded senior loan commitments. Each Fund will maintain with its custodian, cash, liquid securities and/or liquid senior loans having an aggregate value at least equal to the amount of unfunded senior loan commitments. At December 31, 2008, there were no unfunded senior loan commitments in either Fund.
 
Participation Commitments
With respect to the senior loans held in each Fund’s portfolio, the Funds may: 1) invest in assignments; 2) act as a participant in primary lending syndicates; or 3) invest in participations. If a Fund purchases a participation of a senior loan interest, a Fund would typically enter into a contractual agreement with the lender or other third party selling the participation, rather than directly with the Borrower. As such, a Fund not only assumes the credit risk of the Borrower, but also that of the Selling Participant or other persons interpositioned between the Fund and the Borrower. At December 31, 2008, there were no such outstanding participation commitments in either Fund.

         
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8.  Borrowing Arrangements
Refinancings
On April 7, 2008 and May 2, 2008, Multi-Strategy Income and Growth (JPC) drew $255 million and $195 million, respectively, of its $450 million prime brokerage facility with Bank of America, which was subsequently assigned to BNP Paribas Prime Brokerage, Inc. (“BNP”), to redeem at liquidation value $450 million of its outstanding FundPreferred shares. On September 17, 2008, the Fund began to pay down the $450 million and as of December 31, 2008, the Fund’s outstanding balance on these borrowings were $145,545,000. For the period April 7, 2008 through December 31, 2008, the average daily balance outstanding and average interest rate on these borrowings were $304,085,197 and 3.09%, respectively.
 
On April 18, 2008 and May 13, 2008, Multi-Strategy Income and Growth 2 (JQC) drew $400 million and $240 million, respectively, of its $640 million prime brokerage facility with Bank of America, which was subsequently assigned to BNP, to redeem at liquidation value $640 million of its outstanding FundPreferred shares. On September 17, 2008, the Fund began to pay down the $640 million and as of December 31, 2008, the Fund’s outstanding balance on these borrowings were $224,200,000. For the period April 18, 2008 through December 31, 2008, the average daily balance outstanding and average interest rate on these borrowings were $446,848,637 and 3.08%, respectively.
 
In order to maintain these borrowing facilities, the Funds must meet certain collateral, asset coverage and other requirements. Borrowings outstanding are fully secured by securities held in the Funds’ Portfolios of Investments.
 
Interest is charged at LIBOR (London Inter-bank Offered Rate) plus an agreed upon spread on the amount borrowed and an agreed upon spread on the undrawn balance. In addition to interest, the Funds also paid a .15% one time arraignment fee of the total borrowing limit which was fully amortized and expensed as of December 31, 2008.
 
Interest expense incurred on the drawn and undrawn balances and the one time arraignment fees are recognized as “Interest expense on borrowings and amortization of borrowing costs” on the Statement of Operations.
 
9.  New Accounting Pronouncement
Financial Accounting Standards Board Statement of Financial Accounting Standards No. 161 (SFAS No. 161)
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities.” This standard is intended to enhance financial statement disclosures for derivative instruments and hedging activities and enable investors to understand: a) how and why a fund uses derivative instruments, b) how derivative instruments and related hedge items are accounted for, and c) how derivative instruments and related hedge items affect a fund’s financial position, results of operations and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. As of December 31, 2008, management does not believe the adoption of SFAS No. 161 will impact the financial statement amounts; however, additional footnote disclosures may be required about the use of derivative instruments and hedging items.

         
    77    
         


 

 
     
     
    Financial
HIGHLIGHTS
     Selected data for a Common share outstanding throughout each period:
 
                                                                                                         
          Investment Operations     Less Distributions                    
                      Distributions
                                                       
                      from Net
    Distributions
                                  Offering
             
                      Investment
    from Capital
          Net
          Tax
          Costs and
             
    Beginning
                Income to
    Gains to
          Investment
    Capital
    Return of
          Fund
    Ending
       
    Common
          Net
    Fund
    Fund
          Income to
    Gains to
    Capital to
          Preferred
    Common
       
    Share
    Net
    Realized/
    Preferred
    Preferred
          Common
    Common
    Common
          Share
    Share
    Ending
 
    Net Asset
    Investment
    Unrealized
    Share-
    Share-
          Share-
    Share-
    Share-
          Underwriting
    Net Asset
    Market
 
    Value     Income(a)     Gain (Loss)     holders†     holders†     Total     holders     holders     holders     Total     Discounts     Value     Value  
Multi-Strategy Income and Growth (JPC)
                                                                                                         
Year Ended 12/31:
2008
    $12.38       $ .86       $(6.49 )     $(.15 )     $ —       (5.78 )     $(0.69 )   $  —     $ (0.31 )   $ (1.00 )   $  —     $ 5.60     $ 4.60  
2007
    14.26       .97       (1.34 )     (.28 )     (.09 )     (.74 )     (.77 )     (.25 )     (.12 )     (1.14 )      —       12.38       10.93  
2006
    14.18       1.02       .50       (.31 )     (.03 )     1.18       (.87 )     (.08 )     (.15 )     (1.10 )           14.26       14.29  
2005
    15.32       1.13       (.74 )     (.22 )           .17       (1.15 )     (.16 )           (1.31 )           14.18       11.97  
2004(b)
    14.73       .52       .85       (.04 )     (.01 )     1.32       (.50 )     (.23 )           (.73 )           15.32       14.33  
Year Ended 7/31:
2004
    14.12       1.25       .71       (.08 )           1.88       (1.22 )     (.05 )           (1.27 )           14.73       13.95  
                                                                                                         
                                                                                                         
Multi-Strategy Income and Growth 2 (JQC)
                                                                                                         
Year Ended 12/31:
2008
    12.46       .86       (6.14 )     (.14 )           (5.42 )     (.72 )           (.28 )     (1.00 )           6.04       4.87  
2007
    14.29       .97       (1.30 )     (.26 )     (.10 )     (.69 )     (.79 )     (.30 )     (.05 )     (1.14 )           12.46       11.00  
2006
    14.20       1.04       .48       (.30 )     (.03 )     1.19       (.93 )     (.09 )     (.08 )     (1.10 )           14.29       14.11  
2005
    15.18       1.12       (.70 )     (.21 )     (.01 )     .20       (1.09 )     (.09 )           (1.18 )           14.20       12.11  
2004(b)
    14.33       .51       .90       (.05 )           1.36       (.49 )     (.02 )           (.51 )           15.18       13.87  
Year Ended 7/31:
2004
    13.83       1.16       .73       (.08 )           1.81       (1.17 )                 (1.17 )     (.14 )     14.33       13.54  
                                                                                                         
 
(a)  Per share Net Investment Income is calculated using the average daily shares method.
(b)  For the period August 1, 2004 through December 31, 2004.
(c)  Borrowings Interest Expense includes amortization of borrowing costs.
*   Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized.
 
    Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund’s market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized.
**  After custodian fee credit and expense reimbursement, where applicable.
***  Rounds to less than .01%.
****  Annualized.

         
78
       
         


 

 
                                                             
                Ratios/Supplemental Data  
              Ratios to Average Net Assets
    Ratios to Average Net Assets
       
              Applicable to Common Shares
    Applicable to Common Shares
       
    Total Returns         Before Credit/Reimbursement     After Credit/Reimbursement**        
          Based
                                   
          on
                                   
          Common
    Ending Net
                             
    Based
    Share
    Assets
                             
    on
    Net
    Applicable to
        Net
          Net
    Portfolio
 
    Market
    Asset
    Common
        Investment
          Investment
    Turnover
 
    Value*     Value*     Shares (000)   Expenses††     Income††     Expenses††     Income††     Rate  
 
                                                             
                                                             
      (51.80 )%     (49.27 )%   $556,698     2.47 %     8.14 %     2.04 %     8.57 %     36 %
      (16.28 )     (5.71 )   1,230,342     1.53       6.54       1.05       7.03       84  
      29.81       8.71     1,421,951     1.49       6.80       1.00       7.28       72  
      (7.63 )     1.32     1,419,946     1.50       7.25       1.03       7.72       37  
      8.06       9.07     1,533,722     1.51 ****     7.66 ***     1.04 ****     8.13 ****     13  
                                                             
      4.34       13.44     1,474,983     1.53       7.90       1.05       8.37       19  
                                                             
 
                                                             
                                                             
      (49.39 )%     (45.84 )%   843,469     2.41       8.00       1.95       8.45       37  
      (14.70 )     (5.34 )   1,740,952     1.50       6.51       1.02       6.99       78  
      26.71       8.73     2,008,154     1.44       6.90       .96       7.37       77  
      (4.40 )     1.41     2,002,079     1.46       7.25       .99       7.72       34  
      6.20       9.59     2,140,563     1.47 ****     7.81 ****     1.00 ****     8.28 ****     13  
                                                             
      .10       12.25     2,021,258     1.47       7.51       1.00       7.98       27  
                                                             
 
†   The amounts shown are based on Common share equivalents.
†† •      Ratios do not reflect the effect of dividend payments to FundPreferred shareholders.
     •      Income ratios reflect income earned on assets attributable to FundPreferred shares and borrowings, where applicable.
     • Each ratio includes the effect of the dividend expense on securities sold short and interest expense paid on borrowings as follows:
 
                 
    Ratios of Dividend Expense
       
    on Securities Sold Short
    Ratios of Borrowing Interest Expense
 
    to Average Net Assets Applicable
    to Average Net Assets Applicable
 
    to Common Shares     to Common Shares(c)  
   
Multi-Strategy Income and Growth (JPC)
Year Ended 12/31:
               
2008
    .01 %     .82 %
2007
    ***      
2006
           
2005
    .01        
2004(b)
    .04 ****      
Year Ended 7/31:
               
2004
    .03        
 
 
         
Multi-Strategy Income and Growth 2 (JQC)
       
Year Ended 12/31:
2008
    .01 %     .83 %
2007
    ***      
2006
           
2005
    .01        
2004(b)
    .05 ****      
Year Ended 7/31:
             
2004
    .03        
 
 
 
See accompanying notes to financial statements.

         
    79    
         


 

 
     
     
    Financial
HIGHLIGHTS (continued)

 
                                         
    FundPreferred Shares at End of Period     Borrowings at End of Period  
          Liquidation and
                   
    Aggregate Amount
    Market Value
    Asset Coverage
    Aggregate Amount
    Asset Coverage
 
    Outstanding (000)     Per Share     Per Share     Outstanding (000)     Per $1,000  
Multi-Strategy Income and Growth (JPC)
                                         
Year Ended 12/31:
                                       
2008
    $118,650       $25,000       $142,298       $145,545       $5,640  
2007
    708,000       25,000       64,444              
2006
    708,000       25,000       75,210              
2005
    708,000       25,000       75,139              
2004(b)
    708,000       25,000       79,157              
Year Ended 7/31:
                                       
2004
    708,000       25,000       77,083              
 
Multi-Strategy Income and Growth 2 (JQC)
                                         
Year Ended 12/31:
                                       
2008
    165,800       25,000       152,182       224,200       5,502  
2007
    965,000       25,000       70,102              
2006
    965,000       25,000       77,025              
2005
    965,000       25,000       76,867              
2004(b)
    965,000       25,000       80,455              
Year Ended 7/31:
                                       
2004
    965,000       25,000       77,364              
                                         
 
See accompanying notes to financial statements.

         
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Board Members & OFFICERS
 
     
     
    The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not “interested” persons of the Funds (referred to herein as “independent board members”) has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
 
                     
 
            Year First
      Number of Portfolios
            Elected or
  Principal Occupation(s)
  in Fund Complex
Name, Birthdate
      Position(s) Held with
  Appointed
  Including other Directorships
  Overseen by
and Address
      the Funds
  and Term(1)   During Past 5 Years
  Board Member
 
                     
 
INDEPENDENT BOARD MEMBERS:
 
n ROBERT P. BREMNER
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
  ï   Chairman of
the Board
and Board member
  1997
Class III
  Private Investor and Management Consultant.   192
 
n JACK B. EVANS
10/22/48
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Board member
 
1999
Class III
  President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Director and Vice Chairman, United Fire Group, a publicly held company; Member of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College and Iowa College Foundation; Member of the Advisory Council of the Department of Finance in the Tippie College of Business, University of Iowa; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm.   192
 
n WILLIAM C. HUNTER
3/6/48
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Board member
 
2004
Annual
  Dean, Tippie College of Business, University of Iowa (since July 2006); formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director (since 1997), Credit Research Center at Georgetown University; Director (since 2004) of Xerox Corporation; Director (since 2005), Beta Gamma Sigma International Honor Society; Director, SS&C Technologies, Inc. (May 2005-October 2005).   192

         
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            Year First
      Number of Portfolios
            Elected or
  Principal Occupation(s)
  in Fund Complex
Name, Birthdate
      Position(s) Held with
  Appointed
  Including other Directorships
  Overseen by
and Address
      the Funds
  and Term(1)   During Past 5 Years
  Board Member
 
INDEPENDENT BOARD MEMBERS (continued):
 
n DAVID J. KUNDERT
10/28/42
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Board member
 
2005
Class II
  Director, Northwestern Mutual Wealth Management Company; Retired (since 2004) as Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Investment Committee, Greater Milwaukee Foundation.   192
 
n WILLIAM J. SCHNEIDER
9/24/44
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Board member
 
1997
Annual
  Chairman, formerly, Senior Partner and Chief Operating Officer (retired, 2004) of Miller-Valentine Partners Ltd., a real estate investment company; Director, Dayton Development Coalition; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank.   192
 
n JUDITH M. STOCKDALE
12/29/47
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Board member
 
1997
Class I
  Executive Director, Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (from 1990 to 1994).   192
 
n CAROLE E. STONE
6/28/47
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Board member
 
2007
Class I
  Director, Chicago Board Options Exchange (since 2006); Commissioner, New York State Commission on Public Authority Reform (since 2005); formerly, Chair New York Racing Association Oversight Board (2005-2007); formerly, Director, New York State Division of the Budget (2000-2004), Chair, Public Authorities Control Board (2000-2004) and Director, Local Government Assistance Corporation (2000-2004).   192
 
n TERENCE J. TOTH
9/29/59
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Board member
 
2008
Class II
  Director, Legal & General Investment Management (since 2008); Private Investor (since 2007); CEO and President, Northern Trust Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2004-2007); prior thereto, various positions with Northern Trust Company (since 1994); Member: Goodman Theatre Board (Since 2004); Chicago Fellowship Boards (since 2005), University of Illinois Leadership Council Board (since 2007) and Catalyst Schools of Chicago Board (since 2008); formerly Member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004).   192
INTERESTED BOARD MEMBER:
 
n JOHN P. AMBOIAN(2)
6/14/61
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Board member
 
2008
Class II
  Chief Executive Officer (since July 2007) and Director (since 1999) of Nuveen Investments, Inc.; Chief Executive Officer (since 2007) of Nuveen Asset Management, Rittenhouse Asset Management, Nuveen Investments Advisors, Inc. formerly, President (1999-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3)   192

         
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                    Number of Portfolios
            Year First
  Principal
  in Fund Complex
Name, Birthdate
      Position(s) Held with
  Elected or
  Occupation(s)
  Overseen
and Address
      the Funds
  Appointed(4)
  During Past 5 Years
  by Officer
 
OFFICERS of the FUND:
 
n GIFFORD R. ZIMMERMAN
9/9/56
333 W. Wacker Drive
Chicago, IL 60606
  ï   Chief Administrative Officer   1988   Managing Director (since 2002), Assistant Secretary and Associate General Counsel of Nuveen Investments, LLC; Managing Director (since 2002), Associate General Counsel and Assistant Secretary, of Nuveen Asset Management; Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Symphony Asset Management LLC, and NWQ Investment Management Company, LLC (since 2003), Tradewinds Global Investors, LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007); Managing Director, Associate General Counsel and Assistant Secretary of Rittenhouse Asset Management, Inc. (since 2003); Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; formerly, Managing Director (2002-2004), General Counsel (1998-2004) and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Chartered Financial Analyst.   192
 
n WILLIAM ADAMS IV
6/9/55
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Vice President
 
2007
  Executive Vice President of Nuveen Investments, Inc.; Executive Vice President, U.S. Structured Products of Nuveen Investments, LLC, (since 1999), prior thereto, Managing Director of Structured Investments.   120
 
n CEDRIC H. ANTOSIEWICZ
1/11/62
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Vice President
 
2007
  Managing Director, (since 2004) previously, Vice President (1993-2004) of Nuveen Investments, LLC.   120
 
n MICHAEL T. ATKINSON
2/3/66
333 W. Wacker Drive
Chicago, IL 60606
  ï   Vice President and Assistant Secretary   2000   Vice President (since 2002) of Nuveen Investments, LLC; Vice President of Nuveen Asset Management (since 2005).   192
 
n LORNA C. FERGUSON
10/24/45
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Vice President
 
1998
  Managing Director (since 2004), formerly, Vice President of Nuveen Investments, LLC, Managing Director (since 2005) of Nuveen Asset Management; Managing Director (2004-2005) formerly, Vice President (1998-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3)   192
 
n STEPHEN D. FOY
5/31/54
333 W. Wacker Drive
Chicago, IL 60606
  ï   Vice President
and Controller
  1998
  Vice President (since 1993) and Funds Controller (since 1998) of Nuveen Investments, LLC; formerly, Vice President and Funds Controller (1998-2004) of Nuveen Investments, Inc.; Certified Public Accountant.   192
 
n WALTER M. KELLY
2/24/70
333 W. Wacker Drive
Chicago, IL 60606
  ï   Chief Compliance
Officer and
Vice President
  2003
  Senior Vice President (since 2008), Vice President (2006-2008) formerly, Assistant Vice President and Assistant General Counsel (2003-2006) of Nuveen Investments, LLC; Vice President (since 2006) and Assistant Secretary (since 2008) of Nuveen Asset Management.   192

         
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                    Number of Portfolios
            Year First
  Principal
  in Fund Complex
Name, Birthdate
      Position(s) Held with
  Elected or
  Occupation(s)
  Overseen
and Address
      the Funds
  Appointed(4)
  During Past 5 Years
  by Officer
 
OFFICERS of the FUND (continued):
 
n DAVID J. LAMB
3/22/63
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Vice President
 
2000
  Vice President (since 2000) of Nuveen Investments, LLC; Vice President of Nuveen Asset Management (since 2005); Certified Public Accountant.   192
 
n TINA M. LAZAR
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
  ï  
Vice President
 
2002
  Vice President of Nuveen Investments, LLC (since 1999); Vice President of Nuveen Asset Management (since 2005).   192
 
n LARRY W. MARTIN
7/27/51
333 W. Wacker Drive
Chicago, IL 60606
  ï   Vice President
and Assistant Secretary
  1988   Vice President, Assistant Secretary and Assistant General Counsel of Nuveen Investments, LLC; Vice President (since 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President (since 2000), Assistant Secretary and Assistant General Counsel (since 1998) of Rittenhouse Asset Management, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); NWQ Investment Management Company, LLC (since 2002), Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management LLC (since 2006) and of Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); formerly, Vice President and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3)   192
 
n KEVIN J. MCCARTHY
3/26/66
333 W. Wacker Drive
Chicago, IL 60606
  ï   Vice President
and Secretary
  2007   Managing Director (since 2008), formerly, Vice President (2007-2008), Nuveen Investments, LLC; Vice President, and Assistant Secretary, Nuveen Asset Management, Rittenhouse Asset Management, Inc., Nuveen Investment Advisers Inc., Nuveen Investment Institutional Services Group LLC, NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management LLC, Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007).   192
 
n JOHN V. MILLER
4/10/67
333 W. Wacker Drive
Chicago, IL 60606
  ï   Vice President  
2007
  Managing Director (since 2007), formerly, Vice President (2002-2007) of Nuveen Asset Management and Nuveen Investments, LLC; Chartered Financial Analyst.   192
 
n CHRISTOPHER M. ROHRBACHER
8/1/71
333 W. Wacker Drive
Chicago, IL 60606
  ï   Vice President
and Assistant Secretary
  2008   Vice President, Nuveen Investments, LLC (since 2008); Vice President and Assistant Secretary, Nuveen Asset Management (since 2008); prior thereto, Associate, Skadden, Arps, Slate Meagher & Flom LLP (2002-2008).   192
 
n JAMES F. RUANE
7/3/62
333 W. Wacker Drive
Chicago, IL 60606
  ï   Vice President
and Assistant Secretary
  2007   Vice President, Nuveen Investments, LLC (since 2007); prior thereto, Partner, Deloitte & Touche USA LLP (2005-2007), formerly, senior tax manager (2002-2005); Certified Public Accountant.   192

         
84
       
         


 

                     
 
                    Number of Portfolios
            Year First
  Principal
  in Fund Complex
Name, Birthdate
      Position(s) Held with
  Elected or
  Occupation(s)
  Overseen
and Address
      the Funds
  Appointed(4)
  During Past 5 Years
  by Officer
 
OFFICERS of the FUND (continued):
 
n MARK L. WINGET
12/21/68
333 W. Wacker Drive
Chicago, IL 60606
  ï   Vice President
and Assistant Secretary
  2008   Vice President, Nuveen Investments, LLC (since 2008); Vice President and Assistant Secretary, Nuveen Asset Management (since 2008); prior thereto, Counsel, Vedder Price P.C. (1997-2007).   192
 
(1)   Board Members serve three year terms, except for two board members who are elected by the holders of Preferred Shares. The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders’ meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The first year elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex.
 
(2)   Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds.
 
(3)   Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005.
 
(4)   Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex.

         
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Reinvest Automatically
EASILY and CONVENIENTLY
 

 
Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account.
 
Nuveen Closed-End Funds Dividend Reinvestment Plan
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares.
 
By choosing to reinvest, you’ll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested.
 
It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market.
 
Easy and convenient
To make recordkeeping easy and convenient, each month you’ll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own.
 
How shares are purchased
The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund’s shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares’ net asset value or 95% of the shares’ market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.

         
86
       
         


 

Flexible
You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee.
 
You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan.
 
The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time.
 
Call today to start reinvesting dividends and/or distributions
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787.

         
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Glossary of
TERMS USED in this REPORT
 

 
 n  Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered.
 
 n  Collateralized Debt Obligations (CDOs): Collateralized debt obligations are a type of asset-backed security constructed from a portfolio of fixed-income assets. CDOs usually are divided into different tranches having different ratings and paying different interest rates. Losses, if any, are applied in reverse order of seniority and so junior tranches generally offer higher coupons to compensate for added default risk.
 
 n  Current Distribution Rate (also known as Market Yield, Dividend Yield or Current Yield): Current distribution rate is based on the Fund’s current annualized quarterly distribution divided by the Fund’s current market price. The Fund’s quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund’s cumulative net ordinary income and net realized gains are less than the amount of the Fund’s distributions, a tax return of capital.
 
 n  Net Asset Value (NAV): A Fund’s NAV per common share is calculated by subtracting the liabilities of the Fund (including any Preferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of common shares outstanding. Fund NAVs are calculated at the end of each business day.

         
88
       
         


 

NOTES 
 

 

         
    89    
         


 

NOTES 
 

 

         
90
       
         


 

Board of Trustees
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
 
Fund Manager
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
 
Custodian
State Street Bank & Trust Company
Boston, MA
 
Transfer Agent and
Shareholder Services
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
 
Legal Counsel
Chapman and Cutler LLP
Chicago, IL
 
Independent Registered
Public Accounting Firm
Ernst & Young LLP
Chicago, IL
 
 
Each Fund intends to repurchase and/or redeem shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report JQC repurchased 38,900 shares of its common stock, and JPC and JQC redeemed and/or noticed for redemption 23,574 and 31,968 shares of their preferred stock, respectively. Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report.
 
     
     
    Other Useful INFORMATION
 
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
 
You may obtain (i) each Fund’s quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, 2008, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com.
 
You may also obtain this and other Fund information directly from the Securities and Exchange Commission (“SEC”). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC’s Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC’s Public Reference Section at 100 F Street NE, Washington, D.C. 20549.
 
CEO Certification Disclosure
 
Each Fund’s Chief Executive Officer has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual.
 
Each Fund has filed with the Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
 
Multi-Strategy Income and Growth (JPC) and Multi-Strategy Income and Growth 2 (JQC) hereby designate 7.13% and 6.68%, respectively, of dividends paid from net ordinary income as dividends qualifying for the 70% dividends received deduction for corporations and 27.18% and 29.81%, respectively, as qualified dividend income for individuals under Section 1 (h)(11) of the Internal Revenue Code. The actual qualified dividend income distributions will be reported to shareholders on Form 1099-DIV which will be sent to shareholders shortly after calendar year end.

 

         
    91    
         


 

Nuveen Investments:
SERVING INVESTORS FOR GENERATIONS
 
Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility.
 
Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles.
 
We offer many different investing solutions for our clients’ different needs.
Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow. In total, the Company managed approximately $134 billion of assets on September 30, 2008.
 
Find out how we can help you reach your financial goals.
To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest.
 
Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money.
 
Learn more about Nuveen Funds at:    www.nuveen.com/cef
 
     
     
    Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools

EAN-F-1208D


 

ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder/. (To view the code, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant’s Board of Directors or Trustees determined that the registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant’s audit committee financial expert is Jack B. Evans, Chairman of the Audit Committee, who is “independent” for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser (“SCI”). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the “CFO”) and actively supervised the CFO’s preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI’s financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Multi-Strategy Income and Growth Fund 2
The following tables show the amount of fees that Ernst & Young LLP, the Fund’s auditor, billed to the Fund during the Fund’s last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND’S AUDITOR BILLED TO THE FUND
                                 
    Audit Fees Billed   Audit-Related Fees   Tax Fees   All Other Fees
Fiscal Year Ended   to Fund 1   Billed to Fund 2   Billed to Fund 3   Billed to Fund 4
 
December 31, 2008
  $ 29,128     $ 0     $ 0     $ 7,100  
 
 
                               
Percentage approved pursuant to pre-approval exception
    0 %     0 %     0 %     0 %
 
 
                               
 
December 31, 2007
  $ 26,940     $ 0     $ 625     $ 4,300  
 
 
                               
Percentage approved pursuant to pre-approval exception
    0 %     0 %     0 %     0 %
 
 
1   “Audit Fees” are the aggregate fees billed for professional services for the audit of the Fund’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements.
 
2   “Audit Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under “Audit Fees.”
 
3   “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning.
 
4   “All Other Fees” are the aggregate fees billed for products and services for agreed upon procedures engagements performed for leveraged funds.
SERVICES THAT THE FUND’S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management (“NAM” or the “Adviser”), and any entity controlling, controlled by or under common control with NAM (“Control Affiliate”) that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements directly related to the Fund’s operations and financial reporting, during the Fund’s last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the Fund’s audit is completed.
                         
    Audit-Related Fees   Tax Fees Billed to   All Other Fees
    Billed to Adviser and   Adviser and   Billed to Adviser
    Affiliated Fund   Affiliated Fund   and Affiliated Fund
Fiscal Year Ended   Service Providers   Service Providers   Service Providers
 
December 31, 2008
  $ 0     $ 0     $ 0  
 
 
                       
Percentage approved pursuant to pre-approval exception
    0 %     0 %     0 %
 
 
                       
December 31, 2007
  $ 0     $ 0     $ 0  
 
 
                       
Percentage approved pursuant to pre-approval exception
    0 %     0 %     0 %
 

 


 

NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed during the Fund’s last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund’s operations and financial reporting (except for those subject to the de minimis exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund’s last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP’s independence.
                                 
          Total Non-Audit Fees        
            billed to Adviser and        
            Affiliated Fund Service   Total Non-Audit Fees    
            Providers (engagements   billed to Adviser and    
            related directly to the   Affiliated Fund Service    
    Total Non-Audit Fees   operations and financial   Providers (all other    
Fiscal Year Ended   Billed to Fund   reporting of the Fund)   engagements)   Total
 
December 31, 2008
  $ 7,100     $ 0     $ 0     $ 7,100  
December 31, 2007
  $ 4,925     $ 0     $ 0     $ 4,925  
“Non-Audit Fees billed to Adviser” for both fiscal year ends represent “Tax Fees” billed to Adviser in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund’s independent accountants and (ii) all audit and non-audit services to be performed by the Fund’s independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant’s Board of Directors or Trustees has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Jack B. Evans, David J. Kundert and William J. Schneider.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
The Adviser has engaged Spectrum Asset Management, Inc. (“Spectrum”), Tradewinds Global Investors, LLC (“Tradewinds”), and Symphony Asset Management, LLC (“Symphony”) (Spectrum, Tradewinds and Symphony are also collectively referred to as “Sub-Advisers”) as Sub-Advisers to provide discretionary investment advisory services. As part of these services, the Adviser has also delegated to each Sub-Adviser the full responsibility for proxy voting and related duties in accordance with the Sub-Adviser’s policies and procedures. The Adviser periodically will monitor each Sub-Adviser’s voting to ensure that they are carrying out their duties. The Sub-Advisers’ proxy voting policies and procedures are summarized as follows:
SPECTRUM
Spectrum has adopted a Policy on Proxy Voting for Investment Advisory Clients (the “Voting Policy”), which provides that Spectrum aims to ensure that, when delegated proxy voting authority by a client, Spectrum act (1) solely in the interest of the client in providing for ultimate long-term stockholder value, and (2) without undue influence from individuals or groups who may have an economic interest in the outcome of a proxy vote. Spectrum relies on the custodian bank to deliver proxies to Spectrum for voting.
Spectrum has selected Risk Metrics Group (formerly Institutional Shareholder Services, Inc.) (“RMG”) to assist with Spectrum’s proxy voting responsibilities. Spectrum generally follows RMG standard proxy voting guidelines which embody the positions and factors Spectrum considers important in casting proxy votes. In connection with each proxy vote, RMG prepares a written analysis and recommendation based on its guidelines. In order to avoid any conflict of interest for RMG, the CCO will require RMG to deliver additional information or certify that RMG has adopted policies and procedures to detect and mitigate such conflicts of interest in issuing voting recommendations. Spectrum also may obtain voting recommendations from two proxy voting services as an additional check on the independence of RMG’s voting recommendations.
Spectrum may, on any particular proxy vote, diverge from RMG’s guidelines or recommendations. In such a case, Spectrum’s Voting Policy requires that: (i) the requesting party document the reason for the request; (ii) the approval of the Chief Investment Officer; (iii) notification to appropriate compliance personnel; (iv) a determination that the decision is not influenced by any conflict of interest; and (v) a written record of the process.
When Spectrum determines not to follow RMG’s guidelines or recommendations, Spectrum classifies proxy voting issues into three broad categories: (1) Routine Administrative Items; (2) Special Interest Issues; and (3) Issues having the Potential for Significant Economic Impact, and casts proxy votes in accordance with the philosophy and decision guidelines developed for that category in the Voting Policy.
  -        Routine Administrative Items. Spectrum is willing to defer to management on matters a routine administrative nature. Examples of issues on which Spectrum will normally defer to management’s recommendation include selection of auditors, increasing the authorized number of common shares and the election of unopposed directors.

 


 

 
  -        Special Interest Issues. In general, Spectrum will abstain from voting on shareholder social, political, environmental proposals because their long-term impact on share value cannot be calculated with any reasonable degree of confidence.
 
  -        Issues Having the Potential for Significant Economic Impact. Spectrum is not willing to defer to management on proposals which have the potential for major economic impact on the corporation and value of its shares and believes such issues should be carefully analyzed and decided by shareholders. Examples of such issues are classification of board of directors’ cumulative voting and supermajority provisions, defensive strategies (e.g., greenmail prevention), business combinations and restructurings and executive and director compensation.
Conflicts of Interest. There may be a material conflict of interest when Spectrum votes, on behalf of a client, a proxy that is solicited by an affiliated person of Spectrum or another Spectrum client. To avoid such conflicts, Spectrum has established procedures under its Voting Policy to seek to ensure that voting decisions are based on a client’s best interests and are not the product of a material conflict. In addition to employee monitoring for potential conflicts, the CCO reviews Spectrum’s and its affiliates’ material business relationships and personal and financial relationships of senior personnel of Spectrum and its affiliates to monitor for conflicts of interest.
If a conflict of interest is identified, Spectrum considers both financial and non-financial materiality to determine if a conflict of interest is material. If a material conflict of interest is found to exist, the CCO discloses the conflict to affected clients and obtains consent from each client in the manner in which Spectrum proposed to vote.
Spectrum clients can obtain a copy of the Voting Policy or information on how Spectrum voted their proxies by calling Spectrum’s Compliance Department at (203) 322-0189.
TRADEWINDS
Tradewinds’ Proxy Voting Policies and Procedures were developed and are maintained to ensure that proxies for which Tradewinds has ultimate voting authority are voted consistently and solely in the best economic interests of the beneficiaries of these equity investments. Note that clients may otherwise reserve the right to vote their proxies.
Tradewinds has engaged a third party service provider RMG to assist with the proxy voting process. We review their recommendations and frequently follow them; however, on selected issues, Tradewinds may not vote in accordance with the RMG recommendations when we believe that they are not in the best economic interest of our clients. If Tradewinds manages assets of a company or its pension plan and any of Tradewinds’ clients hold securities of that company, Tradewinds will vote proxies relating to such company’s securities in accordance with

 


 

RMG recommendations to avoid any conflict of interest. If a client requests Tradewinds to follow specific voting guidelines or additional guidelines, Tradewinds will review the request and inform the client only if Tradewinds is not able to follow the request.
Tradewinds generally does not intend to vote proxies associated with the securities of any issuer if as a result of voting, the issuer restricts such securities from being transacted for a period (this occurs for issuers in a few foreign countries), or where the voting would in Tradewinds’ judgment result in some other financial, legal, regulatory disability or burden to Tradewinds or the client (such as imputing control with respect to the issuer). Likewise, Tradewinds may determine not to recall securities on loan if negative consequences of such recall outweigh the benefits of voting in the particular instance, or expenses and inconvenience of such recall outweigh any benefits, in Tradewinds’ judgment.
SYMPHONY
Symphony Asset Management votes proxies with the objective of maximizing shareholder value for its clients and in accordance with the firm’s Policies and Procedures for Proxy Voting. Symphony’s Proxy Voting Committee is responsible for establishing proxy voting guidelines; review and oversight of the firm’s Policies and Procedures for Proxy Voting; oversight of day-to-day proxy voting related activities; and, for overseeing the activities of proxy service providers utilized by the firm.
Symphony has established guidelines for proxy voting based on the recommendations of an independent third-party proxy service provider. Symphony utilizes one or more independent third-party service providers to vote proxy in accordance with Symphony’s guidelines. Service providers also provide proxy voting related research material as required.
In its Policies and Procedures for Proxy Voting, Symphony specifies a process for identifying and managing conflicts of interest in the proxy voting process so that votes are cast in the best interests of clients. Conflicts of interest may arise from relationships Symphony has with its clients, vendors and lenders. Symphony portfolio managers may change a proxy vote recommended by the firm’s guidelines to resolve a conflict of interest or for other reasons in the best economic interests of clients. Symphony’s Proxy Voting Committee reviews vote changes.


 

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
The Adviser has engaged Spectrum for the registrant’s preferred securities investments, Tradewinds for the registrant’s convertible securities and Symphony for the registrant’s high yield, fixed income investments as Sub-Advisers to provide discretionary investment advisory services. The following section provides information on the portfolio managers at each Sub-Adviser:
Spectrum
Item 8(a)(1). PORTFOLIO MANAGER BIOGRAPHIES
MARK A. LIEB — Mr. Lieb is Executive Director and is responsible for business development. Prior to founding Spectrum in 1987, Mr. Lieb was a Founder, Director and Partner of DBL Preferred Management, Inc., a wholly owned corporate cash management subsidiary of Drexel Burnham Lambert, Inc. Mr. Lieb was instrumental in the formation and development of all aspects of DBL Preferred Management, Inc., including the daily management of preferred stock portfolios for institutional clients, hedging strategies, and marketing strategies. Mr. Lieb’s prior employment included the development of the preferred stock trading desk at Mosley Hallgarten & Estabrook. BA Economics, Central Connecticut State College; MBA Finance, University of Hartford.
L. PHILLIP JACOBY, IV — Managing Director and Portfolio Manager. Mr. Jacoby joined Spectrum in 1995. From 1989-1995, Mr. Jacoby was a Senior Investment Officer at USL Capital Corporation (a subsidiary of Ford Motor Corporation) and was co-portfolio manager of a $600 million preferred stock portfolio. Mr. Jacoby was a trader and portfolio manager at Northern Trust Company (1982-1983) and Vice President of Institutional Sales, E.F. Hutton (1983-1987). BS Business Administration & Finance, Boston University. NASD Series 55 “Equity Trader Limited Representative”.
BERNARD M. SUSSMAN — Mr. Sussman is Chief Investment Officer and Chairman of Spectrum’s Investment Committee. Prior to joining Spectrum in 1995, Mr. Sussman was with Goldman Sachs & Co. for nearly 18 years. A General Partner and head of the Preferred Stock Department, he was in charge of sales, trading and underwriting for all preferred products and was instrumental in the development of the hybrid (MIPS) market. He was a Limited Partner at Goldman Sachs from December 1994 through November 1996. BS Industrial Relations and MBA Finance, Cornell University. NASD Series 55 “Equity Trader Limited Representative.”
Item 8(a)(2). OTHER ACCOUNTS MANAGED BY PORTFOLIO MANAGERS

 


 

                     
    Type of Account   Number of    
Portfolio Manager   Managed   Accounts   Assets*
Phillip Jacoby
  Separately Managed accounts     32     $ 1,571,135,217  
 
  Pooled Accounts     9     $ 449,732,066  
 
  Registered Investment Vehicles     11     $ 3,517,450,588  
 
                   
Mark Lieb
  Separately Managed accounts     52     $ 1,581,384,077  
 
  Pooled Accounts     9     $ 449,732,066  
 
  Registered Investment Vehicles     11     $ 3,517,450,588  
 
                   
Bernard Sussman
  Separately Managed accounts     34     $ 1,573,365,710  
 
  Pooled Accounts     9     $ 449,732,066  
 
  Registered Investment Vehicles     11     $ 3,517,450,588  
 
*   Assets are as of December 31, 2008. None of the assets in these accounts are subject to an advisory fee based on performance.
POTENTIAL MATERIAL CONFLICTS OF INTEREST
There are no material conflicts of interest to report.
Item 8(a)(3). FUND MANAGER COMPENSATION
All employees of Spectrum Asset Management are paid a base salary and discretionary bonus. The bonus is paid quarterly and may represent a significant proportion of an individual’s total annual compensation. Discretionary bonuses are determined by management after consideration of several factors including but not necessarily limited to:
    Changes in overall firm assets under management (employees have no direct incentive to increase assets)
 
    Portfolio performance relative to benchmarks
 
    Contribution to client servicing
 
    Compliance with firm and/or regulatory policies and procedures
 
    Work ethic
 
    Seniority and length of service
 
    Contribution to overall functioning of organization
Item 8(a)(4). OWNERSHIP OF JQC SECURITIES AS OF DECEMBER 31, 2008
         
    Dollar range of equity securities beneficially owned
Name of Portfolio Manager   in Fund
Phillip Jacoby
  $ 0  
Mark Lieb
  $ 0  
Bernard Sussman
  $ 50,000 - 100,000  

 


 

Symphony
Item 8(a)(1). PORTFOLIO MANAGER BIOGRAPHIES
Lenny Mason, CPA, Fixed-Income Portfolio Manager
Lenny is a Fixed-Income Portfolio Manager for Symphony Asset Management LLC. His responsibilities include portfolio management for Symphony’s high yield and bank loan strategies and credit research for its fixed income strategies. Prior to joining Symphony in 2001, Lenny was a Managing Director in FleetBoston’s Technology & Communications Group where he headed its Structuring and Advisory Team. Before joining Fleet, Lenny worked for Wells Fargo Bank’s Corporate Banking Group dealing primarily with leveraged transactions and for Coopers & Lybrand as an auditor. Lenny has an MBA in Finance from the University of Chicago, a BS in Accounting from Babson College. Lenny is a Certified Public Accountant.
Eric Olson, CFA, Director of International Equity Strategies
Eric is the director of international equity strategies and is responsible for coordinating portfolio management, trading and research for Symphony’s international strategies. Eric is the lead portfolio manager of the international equity strategies. When Eric joined Symphony in 1998 he was responsible for research and development of domestic and international quantitative equity strategies. Prior to joining Symphony, Eric was a member of the Active Strategies Group at Barclays Global Investors working on domestic and international quantitative stock selection operations. Eric has worked in financial analysis since 1997. Eric received his BS in mathematics and physics from St. Lawrence University, New York. He holds the Chartered Financial Analyst designation and is a member of the CFA Society of San Francisco.
Gunther Stein, Director of Fixed-Income Strategies
Gunther is a Principal and the Director of Fixed-Income Strategies at Symphony Asset Management. He has close to 20 years of investment and research experience. Gunther is responsible for all of Symphony’s fixed-income strategies, in addition to portfolio management, trading, and research for the fixed-income funds. Prior to joining Symphony in 1999, Gunther was a high-yield portfolio manager at Wells Fargo. Gunther joined Wells Fargo in 1993 as an associate in its Loan Syndications & Leveraged Finance Group after completing its credit-management training program. Previously, Gunther worked for First Interstate Bank as a euro-currency deposit trader. He also worked for Standard Chartered Bank in Mexico City and Citibank Investment Bank in London. Gunther received an MBA from the University of Texas at Austin and a BA in Economics from the University of California at Berkeley.
David T. Wang, Director of Equity Strategies
David’s is the Director of Equity Strategies, and his responsibilities include design, research and implementation of Symphony’s long-only strategies. David joined Symphony in 1994 from Barra, Inc. where he was a member of the Active Strategies Group. At Barra he was responsible for investment-strategy research, portfolio construction and rebalancing for several domestic and global equity funds. David received his MBA from the University of Illinois at Urbana-Champaign and holds a BS degree in Chemical Engineering from Tamkang University in Taipei.
Item 8(a)(2). OTHER ACCOUNTS MANAGED BY PORTFOLIO MANAGERS

 


 

Other Accounts Managed by Symphony
PMs
As of 12/31/08
                                 
    Gunther Stein   Lenny Mason   Eric Olson   David Wang
(a) RICs
                               
Number of accts
    6       6       2       5  
Assets
  $ 627,810,111     $ 627,810,111     $ 94,576,567     $ 216,548,618  
 
                               
(b) Other pooled accts
                               
Non-performance fee accts
                               
Number of accts
    9       9       2       12  
Assets
  $ 1,083,962,109     $ 1,083,962,109     $ 27,912,071     $ 483,903,995  
Performance fee accts
                               
Number of accts
    8       3       2        
Assets
  $ 922,363,055     $ 107,241,962     $ 18,362,116        
 
                               
(c) Other
                               
Non-performance fee accts
                               
Number of accts
    3       5       9       4  
Assets
  $ 2,799,086     $ 3,139,992     $ 629,303     $ 12,172,449  
Performance fee accts
                               
Number of accts
    1                    
Assets
  $ 135,617,867                    
     POTENTIAL MATERIAL CONFLICTS OF INTEREST
As described above, the portfolio manager may manage other accounts with investment strategies similar to the Fund, including other investment companies and separately managed accounts. Fees earned by the sub-advisers may vary among these accounts and the portfolio managers may personally invest in some but not all of these accounts. In addition, certain accounts may be subject to performance-based fees. These factors could create conflicts of interest because a portfolio manager may have incentives to favor certain accounts over others, resulting in other accounts outperforming the Fund. A conflict may also exist if a portfolio manager identified a limited investment opportunity that may be appropriate for more than one account, but the Fund is not able to take full advantage of that opportunity due to the need to allocate that opportunity among multiple accounts. In addition, the portfolio manger may execute transactions for another account that may adversely impact the value of securities held by the Fund. However, the sub-advisers believe that these risks are mitigated by the fact that accounts with like investment strategies managed by a particular portfolio manager are generally managed in a similar fashion, subject to exceptions to account for particular investment restrictions or policies applicable only to certain accounts, differences in cash flows and account sizes, and other factors. In addition, each sub-adviser has adopted trade allocation procedures that require equitable allocation of trade orders for a particular security among participating accounts.
Item 8(a)(3). FUND MANAGER COMPENSATION
Symphony investment professionals receive competitive base salaries and participate in a bonus pool which is tied directly to the firm’s operating income with a disproportionate amount paid to the managers responsible for generating the alpha. The bonus paid to investment personnel is based on acumen, overall contribution and strategy performance. However, there is no fixed formula which guides bonus allocations. Bonuses are paid on an annual basis. In addition, investment professionals may participate in an equity-based compensation pool.
Item 8(a)(4). OWNERSHIP OF JQC SECURITIES AS OF DECEMBER 31, 2008
                                                         
                    $10,001                
            $1 -   -   $50,001-   $100,001-   $ 500,001-   Over
Name of Portfolio Manager   None   $10,000   $50,000   $100,000   $500,000   $1,000,000   $1,000,000
Gunther Stein
    X                                                  
Lenny Mason
    X                                                  
Eric Olson
    X                                                  
David Wang
    X                                                  

 


 

Tradewinds
Item 8(a)(1). PORTFOLIO MANAGER BIOGRAPHY:
David Iben, CFA, Chief Investment Officer, Co-President of Tradewinds, and Executive Managing Director
Prior to joining NWQ in 2000, and forming the affiliate Tradewinds, Mr. Iben was lead Portfolio Manager, CEO, and a founding member of Palladian Capital Management. Before launching Palladian, he worked at Cramblit & Carney, Inc. managing large institutional accounts. Formerly, he was acting CIO at the Farmers Group, responsible for $16 billion of investable assets before his departure in 1996. Mr. Iben received a B.A. in Economics from the University of California at Davis and an M.B.A. from the Marshall School of Business at University of Southern California. In addition, he received his Chartered Financial Analyst designation in 1984 and is a member of the CFA Institute and the CFA Society of Los Angeles, Inc.
Item 8 (a)(2). OTHER ACCOUNTS MANAGED
         
      David Iben
(a) RICs
       
Number of accts
    11  
Assets ($000s)
    2,005,899,209  
 
       
(b) Other pooled accts
       
Non-performance fee accts
       
Number of accts
    11  
Assets ($000s)
    636,253,914  
 
       
(c) Other
       
Non-performance fee accts
       
Number of accts
    4,584  
Assets ($000s)
    4,460,884,678  
Performance fee accts
       
Number of accts
    5  
Assets ($000s)
    1,877,538,778  
POTENTIAL MATERIAL CONFLICTS OF INTEREST
Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one account. More specifically, portfolio managers who manage multiple accounts are presented with the following potential conflicts:
    The management of multiple accounts may result in a portfolio manager devoting unequal time and attention to the management of each account. Tradewinds seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment

 


 

      discipline. Most accounts managed by a portfolio manager in a particular investment strategy are managed using the same investment models.
 
    If a portfolio manager identifies a limited investment opportunity which may be suitable for more than one account, an account may not be able to take full advantage of that opportunity due to an allocation of filled purchase or sale orders across all eligible accounts. To deal with these situations, Tradewinds has adopted procedures for allocating portfolio transactions across multiple accounts.
 
    With respect to many of its clients’ accounts, Tradewinds determines which broker to use to execute transaction orders, consistent with its duty to seek best execution of the transaction. However, with respect to certain other accounts, Tradewinds may be limited by the client with respect to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, Tradewinds may place separate, non-simultaneous, transactions for a Fund and other accounts which may temporarily affect the market price of the security or the execution of the transactions, or both, to the detriment of the Fund or the other accounts.
 
    The Fund is subject to different regulation than other pooled investment vehicles and other accounts managed by the portfolio managers. As a consequence of this difference in regulatory requirements, the Fund may not be permitted to engage in all the investment techniques or transactions or to engage in these transactions to the same extent as the other accounts managed by the portfolio managers. Finally, the appearance of a conflict of interest may arise where Tradewinds has an incentive, such as a performance-based management fee, which relates to the management of some accounts, with respect to which a portfolio manager has day-to-day management responsibilities.
Tradewinds has adopted certain compliance procedures which are designed to address these types of conflicts common among investment managers. However, there is no guarantee that such procedures will detect each and every situation in which a conflict arises.
In addition, Merrill Lynch & Co., Inc., which was acquired by Bank of America Corporation (“Bank of America”, and together with their affiliates, “ML/BofA”), are indirect investors in Nuveen. While we do not believe that ML/BofA are affiliates of NWQ for purposes of the Investment Company Act of 1940, NWQ may determine to impose certain trading limitations in connection with ML/BofA broker-dealers.
Item 8 (a)(3). FUND MANAGER COMPENSATION
Tradewinds offers a highly competitive compensation structure with the purpose of attracting and retaining the most talented investment professionals. These professionals are rewarded through a combination of cash and long-term incentive compensation as determined by the firm’s executive committee. Total cash compensation (TCC) consists of both a base salary and an annual bonus that can be a multiple of the base salary. The firm annually benchmarks TCC to

 


 

prevailing industry norms with the objective of achieving competitive levels for all contributing professionals.
Available bonus pool compensation is primarily a function of the firm’s overall annual profitability. Individual bonuses are based primarily on the following:
    Overall performance of client portfolios
 
    Objective review of stock recommendations and the quality of primary research
 
    Subjective review of the professional’s contributions to portfolio strategy, teamwork, collaboration and work ethic
To further strengthen our incentive compensation package and to create an even stronger alignment to the long-term success of the firm, Tradewinds has made available to most investment professionals equity participation opportunities, the values of which are determined by the increase in profitability of Tradewinds over time.
Finally, some of our investment professionals have received additional remuneration as consideration for signing employment agreements. These agreements range from retention agreements to long-term employment contracts with significant non-solicitation and, in some cases, non-compete clauses.
Item 8 (a)(4). OWNERSHIP OF JQC SECURITIES AS OF DECEMBER 31, 2008.
                                                         
                    $10,001-   $50,001-   $100,001-   $ 500,001-   Over
Name of Portfolio Manager   None   $1 - $10,000   $ 50,000   $100,000   $500,000   $1,000,000   $1,000,000
David Iben
    X                                                  

 


 

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
                                 
            (b)   (c)   (d)*
    (a)   AVERAGE   TOTAL NUMBER OF SHARES   MAXIMUM NUMBER (OR
    TOTAL NUMBER OF   PRICE   (OR UNITS) PURCHASED AS   APPROXIMATE DOLLAR VALUE) OF
    SHARES (OR   PAID PER   PART OF PUBLICLY   SHARES (OR UNITS) THAT MAY YET
    UNITS)   SHARE (OR   ANNOUNCED PLANS OR   BE PURCHASED UNDER THE PLANS OR
Period*   PURCHASED   UNIT)   PROGRAMS   PROGRAMS
JANUARY 1-31, 2008
    38,900     $ 10.95       38,900       13,235,500  
FEBRUARY 1-29, 2008
    0               0       13,235,500  
MARCH 1-31, 2008
    0               0       13,235,500  
APRIL 1-30, 2008
    0               0       13,235,500  
MAY 1-31, 2008
    0               0       13,235,500  
JUNE 1-30, 2008
    0               0       13,235,500  
JULY 1-31, 2008
    0               0       13,235,500  
AUGUST 1-6, 2008
    0               0       13,235,500  
AUGUST 7-31, 2008
    0               0       13,975,000  
SEPTEMBER 1-30, 2008
    0               0       13,975,000  
OCTOBER 1-31, 2008
    0               0       13,975,000  
NOVEMBER 1-30, 2008
    0               0       13,975,000  
DECEMBER 1-31, 2008
    0               0       13,975,000  
TOTAL
    38,900                          
 
*   The registrant’s first repurchase program, which authorized the repurchase of 14,000,000 shares, was announced on November 20, 2007 and expired on August 6, 2008. A second repurchase program, which authorized the repurchase of 13,975,000 shares, was announced on August 7, 2008. Any repurchases made by the registrant pursuant to the program were made through open-market transactions.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
ITEM 11. 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 Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the


 

exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant’s website at www.nuveen.com/etf and there were no amendments during the period covered by this report. (To view the code, click on the Investor Resources drop down menu box, click on Fund Governance and then Code of Conduct.)
(a)(2) 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)) in the exact form set forth below: Ex-99.CERT Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 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 Multi-Strategy Income and Growth Fund 2
         
     
By (Signature and Title) /s/ Kevin J. McCarthy       
  Kevin J. McCarthy     
  Vice President and Secretary     
Date: March 9, 2009
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/ Gifford R. Zimmerman      
  Gifford R. Zimmerman     
  Chief Administrative Officer
(principal executive officer) 
   
Date: March 9, 2009
         
     
By (Signature and Title)  /s/ Stephen D. Foy      
  Stephen D. Foy     
  Vice President and Controller
(principal financial officer) 
   
Date: March 9, 2009