Nuveen Maryland Municipal Bond Fund
Summary Prospectus
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February 10, 2014
Ticker:
Class ANMDAX, Class CNACCX, Class
C2NMDCX, Class INMMDX
This summary prospectus is designed to provide investors with key Fund information in a clear and concise format. Before you invest,
you may want to review the Funds complete prospectus, which contains more information about the Fund and its risks. You can find the Funds prospectus and other information about the Fund online at www.nuveen.com/prospectus. You can also
get this information at no cost by calling (800) 257-8787 or by sending an
e-mail
request to mutualfunds@nuveen.com. If you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank), the prospectus and other information will also be available from your financial intermediary. The Funds prospectus and statement of additional information, both dated February 10, 2014, are incorporated by
reference into this summary prospectus and may be obtained, free of charge, at the website, phone number or
e-mail
address noted above.
Investment Objective
The
investment objective of the Fund is to provide you with as high a level of current interest income exempt from regular federal, Maryland state and, in some cases, Maryland local income taxes as is consistent with preservation of capital.
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at
least $50,000 in the Fund or in other Nuveen Mutual Funds. More information about these and other discounts, as well as eligibility requirements for each share class, is available from your financial advisor and in What Share Classes We
Offer on page 44 of the Funds prospectus, How to Reduce Your Sales Charge on page 46 of the prospectus and Purchase and Redemption of Fund Shares on
page S-65
of
the Funds statement of additional information.
Shareholder Fees
(fees paid directly from your investment)
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Class A
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Class C
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Class C2
3
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Class I
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Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)
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4.20%
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None
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None
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None
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Maximum Deferred Sales Charge (Load)
(as a percentage of the lesser of purchase price or redemption proceeds)
1
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None
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1.00%
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1.00%
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None
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Maximum Sales Charge (Load) Imposed on Reinvested Dividends
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None
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None
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None
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None
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Exchange Fee
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None
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None
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None
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None
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Annual Low Balance Account Fee (for accounts under $1,000)
2
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$15
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$15
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$15
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$15
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Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
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Class A
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Class C
4
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Class C2
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Class I
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Management Fees
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0.51%
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0.51%
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0.51%
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0.51%
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Distribution and/or Service
(12b-1)
Fees
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0.20%
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1.00%
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0.75%
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0.00%
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Other Expenses
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0.11%
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0.11%
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0.11%
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0.11%
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Total Annual Fund Operating Expenses
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0.82%
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1.62%
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1.37%
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0.62%
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1
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The contingent deferred sales charge on Class C shares and Class C2 shares applies only to redemptions within 12 months of purchase.
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2
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Fee applies to the following types of accounts under $1,000 held directly with the Fund: accounts established pursuant to the Uniform Transfers to Minors Act (UTMA) or Uniform
Gifts to Minors Act (UGMA).
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3
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Prior to February 10, 2014, Class C2 shares were designated Class C shares.
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4
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Class C shares were established on February 10, 2014. Accordingly, expenses are based upon the actual expenses incurred by the other share classes.
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Example
The following example is intended to help you
compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then either redeem or do not redeem your shares at the end of a
period. The example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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Redemption
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No Redemption
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A
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C
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C2
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I
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A
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C
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C2
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I
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1 Year
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$
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500
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$
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165
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$
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139
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$
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63
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$
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500
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$
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165
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$
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139
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$
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63
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3 Years
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$
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671
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$
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511
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$
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434
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$
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199
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$
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671
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$
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511
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$
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434
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$
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199
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5 Years
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$
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856
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$
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881
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$
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750
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$
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346
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$
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856
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$
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881
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$
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750
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$
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346
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10 Years
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$
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1,391
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$
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1,922
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$
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1,646
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$
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774
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$
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1,391
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$
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1,922
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$
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1,646
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$
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774
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may
result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the Funds
portfolio turnover rate was 13% of the average value of its portfolio.
Principal Investment Strategies
Under normal market conditions, the Fund invests at least 80% of the sum of its net assets and the amount of any borrowings for investment purposes in municipal bonds that pay interest that is exempt from regular
federal and Maryland personal income tax. These municipal bonds include obligations issued by the State of Maryland and its subdivisions, authorities, instrumentalities and corporations, as well as obligations issued by U.S. territories (such as
Puerto Rico, the U.S. Virgin Islands and Guam) that pay interest that is exempt from regular federal and Maryland personal income tax. The Fund may invest without limit in securities that generate income subject to the alternative minimum tax. The
Fund will generally maintain, under normal market conditions, an investment portfolio with an overall weighted average maturity in excess of 10 years.
Under normal market conditions, the Fund invests at least 80% of its net assets in investment grade municipal bonds rated BBB/Baa or higher at the time of purchase
by at least one independent rating agency, or, if unrated, judged by the Funds
sub-adviser
to be of comparable quality. The Fund may invest up to 20% of its net assets in below investment grade municipal
bonds, commonly referred to as high yield or junk bonds.
The Fund may invest in all types of municipal bonds, including general
obligation bonds, revenue bonds and participation interests in municipal leases. The Fund may invest in zero coupon bonds, which are issued at substantial discounts from their value at maturity and pay no cash income to their holders until they
mature.
The Fund may invest up to 15% of its net assets in municipal securities whose interest payments vary inversely with changes in short-term
tax-exempt
interest rates (
inverse floaters
). Inverse floaters are derivative securities that provide leveraged exposure to underlying municipal bonds. The Funds investments in inverse
floaters are designed to increase the Funds income and returns through this leveraged exposure. These investments are speculative, however, and also create the possibility that income and returns will be diminished.
The Fund may utilize futures contracts, swap contracts, options on futures contracts and options on swap contracts in an attempt to manage market risk, credit risk
and yield curve risk, and to manage the effective maturity or duration of securities in the Funds portfolio.
The Funds
sub-adviser
uses a value-oriented strategy and looks for higher-yielding and undervalued long-term municipal bonds that offer above-average total return. The
sub-adviser
may
choose to sell municipal bonds with deteriorating credit or limited upside potential compared to other available bonds.
Principal Risks
The price and yield of this Fund will change daily. You could lose money by investing in the Fund. An investment in the Fund is not a deposit of a
bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund include:
Alternative Minimum Tax Risk
The Fund has no limit as to the amount that can be invested in alternative minimum tax bonds. Therefore, all or a portion of the Funds otherwise exempt-interest
dividends may be taxable to those shareholders subject to the federal alternative minimum tax.
Call Risk
If an issuer calls higher-yielding
debt instruments held by the Fund, performance could be adversely impacted.
Credit Risk
Credit risk is the risk that an issuer of a debt
security may be unable or unwilling to make interest and principal payments when due and the related risk that the value of a debt security may decline because of concerns about the issuers ability or willingness to make such payments. In
addition, parties to other financial contracts with the Fund could default on their obligations. Also, the Funds investments in inverse floaters will increase the Funds credit risk.
Derivatives Risk
The use of futures contracts, swap contracts, options on futures contracts and options on swap contracts involves additional risks,
such as liquidity, interest rate, counterparty, market and credit risks, and transaction costs which could leave the Fund in a worse position than if it had not used these instruments. Derivatives may entail investment exposures that are greater
than their cost would suggest. As a result, a small investment in derivatives could have a large impact on performance. Recent legislation requires the development of a new regulatory framework for the derivatives market. The impact of the new
regulations is still unknown, but has the potential to increase the costs of using derivatives, may limit the availability of some forms of derivatives or the Funds ability to use derivatives, and may adversely affect the performance of some
derivative instruments used by the Fund as well as the Funds ability to pursue its investment objective through the use of such instruments.
High Yield Securities Risk
High yield securities, which are rated below investment grade and commonly referred to as junk bonds, are high
risk investments that may cause income and principal losses for the Fund. They generally have greater credit risk, are less liquid and have more volatile prices than investment grade securities.
Income Risk
The Funds income could decline during periods of falling interest rates. Also, if the
Fund invests in inverse floaters, the Funds income may decrease if short-term interest rates rise.
Interest Rate Risk
Interest rate
risk is the risk that the value of the Funds portfolio will decline because of rising interest rates. When interest rates change, the values of longer-duration debt securities usually change more than the values of shorter-duration debt
securities. Interest rate risk may be increased by the Funds investment in inverse floaters because of the leveraged nature of these investments.
Inverse Floaters Risk
The use of inverse floaters by the Fund creates effective leverage. Due to the leveraged nature of these investments, they will
typically be more volatile and involve greater risk than the fixed rate municipal bonds underlying the inverse floaters. An investment in certain inverse floaters will involve the risk that the Fund could lose more than its original principal
investment. Distributions on inverse floaters bear an inverse relationship to short-term municipal bond interest rates. Thus, distributions paid to the Fund on its inverse floaters will be reduced or even eliminated as short-term municipal interest
rates rise and will increase when short-term municipal interest rates fall. Inverse floaters generally will underperform the market for fixed rate municipal bonds in a rising interest rate environment.
Market Risk
The market values of the Funds investments may decline, at times sharply and unpredictably.
Municipal Lease Obligations Risk
Participation interests in municipal leases pose special risks because many leases and contracts contain
non-appropriation clauses that provide that the governmental issuer has no obligation to make future payments under the lease or contract unless money is appropriated for this purpose by the appropriate legislative body.
Political and Economic Risks
The values of municipal securities held by the Fund may be adversely affected by local political and economic conditions
and developments. Adverse conditions in an industry significant to a local economy could have a correspondingly adverse effect on the financial condition of local issuers. Because the Fund primarily purchases municipal bonds from Maryland or U.S.
territories, such as Puerto Rico, the Fund is more susceptible to adverse economic, political or regulatory changes affecting municipal bond issuers in those locations. Certain municipal bond issuers in Puerto Rico have recently experienced
financial difficulties and rating agency downgrades.
Tax Risk
Income from municipal bonds held by the Fund could be declared taxable because
of, among other things, unfavorable changes in tax laws, adverse interpretations by the Internal Revenue Service or state tax authorities, or noncompliant conduct of a bond issuer.
Zero Coupon Bonds Risk
Zero coupon bonds do not pay interest on a current basis and may be highly volatile as interest rates rise or fall. In addition, while such bonds generate income for purposes of
generally accepted accounting standards, they do not generate cash flow and thus could cause the Fund to be forced to liquidate securities at an inopportune time in order to distribute cash, as required by tax laws.
Fund Performance
The following bar chart and table provide
some indication of the potential risks of investing in the Fund. The Funds past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available at
www.nuveen.com/performance or by calling (800) 257-8787.
The bar chart below shows the variability of the Funds performance from year to year
for Class A shares. The performance of the other share classes will differ due to their different expense structures. The bar chart and highest/lowest quarterly returns that follow do not reflect sales charges, and if these charges were
reflected, the returns would be less than those shown.
Class A Annual Total Return
During the
ten-year
period ended December 31, 2013, the Funds highest and
lowest quarterly returns were 8.58% and
-4.56%, respectively, for the quarters ended September 30, 2009 and December 31, 2008.
The table below shows
the variability of the Funds average annual returns and how they compare over the time periods indicated with those of a broad measure of market performance and an index of funds with similar investment objectives. All
after-tax
returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes.
After-tax
returns are shown for Class A
shares only;
after-tax
returns for other share classes will vary. Your own actual after-tax returns will depend on your specific tax situation and may
differ from what is shown here.
Both the bar chart and the table assume that all distributions have been reinvested. Performance reflects fee waivers,
if any, in effect during the periods presented. If any such waivers were not in place, returns would be reduced.
Prior to February 10, 2014, Class C2
shares were designated Class C shares.
Performance is not shown for Class C shares, which have not been offered for a full calendar year.
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Average Annual Total Returns
for the Periods Ended
December 31, 2013
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1 Year
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5 Years
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10 Years
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Class A (return before taxes)
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(8.94)
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%
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5.60
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%
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3.22
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%
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Class A (return after taxes on distributions)
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(8.97)
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%
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5.58
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%
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3.20
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%
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Class A (return after taxes on distributions and sale of Fund shares)
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(3.58)
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%
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5.33
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%
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3.37
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%
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Class C2 (return before taxes)
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(5.48)
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%
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5.96
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%
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3.10
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%
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Class I (return before taxes)
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(4.81)
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%
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6.73
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%
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3.87
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%
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S&P Municipal Bond Index (reflects no deduction for fees, expenses or taxes)
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(2.55)
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%
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6.34
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%
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4.33
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%
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Lipper Maryland Municipal Debt Funds Classification Average (reflects no deduction for taxes or sales loads)
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(5.16)
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%
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6.25
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%
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3.11
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%
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Management
Investment Adviser
Nuveen Fund Advisors, LLC
Sub-Adviser
Nuveen Asset Management, LLC
Portfolio Manager
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Name
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Title
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Portfolio Manager of Fund Since
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Thomas C. Spalding, CFA
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Senior Vice President
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January 2011
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Purchase and Sale of Fund Shares
You may purchase, redeem or exchange shares of the Fund on any business day, which is any day the New York Stock Exchange is open for business. You may purchase, redeem or exchange shares of the Fund either through
a financial advisor or other financial intermediary or directly from the Fund. Class C2 shares are available only through exchanges from other Nuveen Municipal Bond Funds and dividend reinvestments by current Class C2 shareholders. The Funds
initial and subsequent investment minimums generally are as follows, although the Fund may reduce or waive the minimums in some cases:
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Class A and Class C
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Class I
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Eligibility and Minimum Initial Investment
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$3,000
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Available only through fee-based programs and to other limited categories of investors as described in the
prospectus.
$100,000 for all accounts except:
$250 for clients of financial
intermediaries and family offices that have accounts holding Class I shares with an aggregate value of at least $100,000 (or that are expected to reach this level).
No minimum for certain other categories of eligible investors as described in the
prospectus.
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Minimum Additional Investment
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$100
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No minimum.
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Tax Information
The Fund
intends to make interest income distributions that are exempt from regular federal and Maryland state income tax. All or a portion of these distributions, however, may be subject to the federal alternative minimum tax.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank or financial advisor), the Fund, its distributor or its investment adviser may pay the intermediary for the
sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment. Ask your financial
advisor or visit your financial intermediarys website for more information.
MPM-MD-0214P
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