NBD Nuveen Build America Bond Opportunity Fund of Beneficial Interest (delisted)

ITEM 1. REPORTS TO STOCKHOLDERS.

 

THE FUNDS’ REGULATORY LEVERAGE

 

Bank Borrowings

 

As discussed previously, the Funds employ regulatory leverage through the use of bank borrowings. As of March 31, 2013, the Funds have outstanding bank borrowings as shown in the accompanying table.

 

Fund		Bank Borrowings
NBB		$	89,000,000
NBD		$	11,500,000

			Effective			Regulatory
Fund			Leverage	*		Leverage	*
NBB			28.06	%		12.95	%
NBD			28.14	%		6.26	%

		Per Share Amounts
		NBB			NBD
April		$	0.1085		$	0.1065
May			0.1085			0.1065
June			0.1085			0.1065
July			0.1085			0.1065
August			0.1085			0.1065
September			0.1085			0.1065
October			0.1085			0.1065
November			0.1085			0.1065
December			0.1110			0.1085
January			0.1110			0.1085
February			0.1110			0.1085
March			0.1135			0.1105
Market Yield**			6.49	%		5.99	%

OTHER SHARE INFORMATION

 

As of March 31, 2013, and during the twelve-month reporting period, the Funds’ share prices were trading at a premium/(discount) to their NAV as shown in the accompanying table.

 

		NBB			NBD
NAV		$	22.60		$	23.92
Share Price		$	20.97		$	22.12
Premium/(Discount) to NAV			(7.21	)%		(7.53	)%
12-Month Average Premium/(Discount) to NAV			(5.22	)%		(7.27	)%

 

Portfolio Composition 1,4
(as  a % of total investments)
Tax Obligation/Limited	22.5%
Tax Obligation/General	21.8%
Utilities	19.4%
Transportation	17.3%
Water and Sewer	13.6%
Short-Term Investments 5	0.0%
Other	5.4%
Credit Quality 1,2,3
(as a % of total investment exposure)
AAA/U.S. Guaranteed	10%
AA	56%
A	27%
BBB	5%
BB or Lower	1%
N/R	1%
States 1
(as a % of total municipal bonds)
California	19.8%
Illinois	11.8%
New York	10.4%
Texas	8.2%
Ohio	5.3%
South Carolina	4.4%
Nevada	4.1%
Michigan	4.0%
Georgia	3.8%
Louisiana	3.1%
Washington	3.1%
New Jersey	3.1%
Other	18.9%

 

Portfolio Composition 1,4
(as a % of total investments)
Tax Obligation/Limited	30.8%
Water and Sewer	17.9%
Transportation	16.1%
Tax Obligation/General	13.9%
Utilities	13.5%
Short-Term Investments	0.4%
Other	7.4%
Credit Quality 1,2,3
(as a % of total investment exposure)
AAA/U.S. Guaranteed	12%
AA	67%
A	14%
BBB	3%
BB or Lower	2%
N/R	1%
States 1
(as a % of total municipal bonds)
California	18.2%
Illinois	13.6%
New York	13.0%
South Carolina	8.3%
New Jersey	6.4%
Colorado	4.2%
Michigan	4.0%
Ohio	3.8%
Texas	3.7%
Georgia	3.0%
Massachusetts	2.6%
Other	19.2%

Nuveen Investments

15

 

 

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		Nuveen Build America Bond Fund
NBB		Portfolio of Investments
		March 31, 2013

	Principal			Optional Call
	Amount (000)		Description (1)	Provisions (2)		Ratings (3)		Value
			Municipal Bonds – 122.4% (100.0% of Total Investments)
			Arizona – 2.6% (2.1% of Total Investments)
$	4,070		Downtown Phoenix Hotel Corporation, Arizona, Revenue Bonds, Subordinate Lien Series 2005C, 5.290%, 7/01/18 – FGIC Insured	No Opt. Call		A2	$	4,201,461
	10,000		Mesa, Arizona, Utility System Revenue Bonds, Series 2010, 6.100%, 7/01/34	7/20 at 100.00		Aa2		11,257,300
	14,070		Total Arizona					15,458,761
			California – 24.3% (19.8% of Total Investments)
	75		Bay Area Toll Authority, California, Revenue Bonds, San Francisco Bay Area Toll Bridge, Subordinate Lien, Build America Federally Taxable Bond Series 2010S-1, 6.793%, 4/01/30	No Opt. Call		A+		96,365
	500		California Infrastructure and Economic Development Bank, Revenue Bonds, University of California San Francisco Neurosciences Building, Build America Taxable Bond Series 2010B, 6.486%, 5/15/49	No Opt. Call		Aa2		593,930
	3,005		California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Build America Taxable Bond Series 2009G-2, 8.361%, 10/01/34	No Opt. Call		A2		4,046,924
	4,050		California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Build America Taxable Bond Series 2010A-2, 8.000%, 3/01/35	3/20 at 100.00		A2		4,451,072
	7,000		California State University, Systemwide Revenue Bonds, Build America Taxable Bond Series 2010B, 6.484%, 11/01/41	No Opt. Call		Aa2		8,053,360
	4,500		California State, General Obligation Bonds, Various Purpose Build America Taxable Bond Series 2010, 7.950%, 3/01/36	3/20 at 100.00		A1		5,656,860
	10,000		California State, General Obligation Bonds, Various Purpose, Build America Taxable Bond Series 2010, 7.600%, 11/01/40	No Opt. Call		A1		14,661,600
	15,000		Los Angeles Community College District, California, General Obligation Bonds, Build America Taxable Bonds, Series 2010, 6.600%, 8/01/42	No Opt. Call		Aa1		20,770,200
	10,000		Los Angeles Community College District, Los Angeles County, California, General Obligation Bonds, Series 2010, 6.600%, 8/01/42 (UB) (4)	No Opt. Call		Aa1		13,846,800
			Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, Multiple Capital Projects I, Build America Taxable Bond Series 2010B:
	5,500		7.488%, 8/01/33	No Opt. Call		AA–		7,228,980
	17,500		7.618%, 8/01/40	No Opt. Call		AA–		23,330,125
	9,385		Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International Airport, Build America Taxable Bonds, Series 2009C, 6.582%, 5/15/39	No Opt. Call		AA–		12,153,106
	1,435		Los Angeles Department of Water and Power, California, Power System Revenue Bonds, Federally Taxable – Direct Payment – Build America Bonds, Series 2010D, 6.574%, 7/01/45	No Opt. Call		AA–		2,033,782
	2,000		Los Angeles Department of Water and Power, California, Water System Revenue Bonds, Tender Option Bond Trust T0003, 30.235%, 7/01/42 (IF) (4)	No Opt. Call		AA		6,454,600
	3,000		Oakland Redevelopment Agency, California, Subordinated Housing Set Aside Revenue Bonds, Federally Taxable Series 2011A-T, 7.500%, 9/01/19	No Opt. Call		A		3,411,720
	2,355		San Bernardino Community College District, California, General Obligation Bonds, Election of 2008, Build America Taxable Bond Series 2009C, 7.630%, 8/01/44	No Opt. Call		Aa2		3,019,298
	1,365		San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Build America Taxable Bonds, Series 2010B, 6.000%, 11/01/40	No Opt. Call		AA–		1,707,342
	3,000		San Francisco City and County Public Utilities Commission, California, Water Revenue Bonds, Build America Taxable Bonds, Series 2010G, 6.950%, 11/01/50	No Opt. Call		AA–		4,197,210
	4,000		San Francisco City and County, California, Certificates of Participation, 525 Golden Gate Avenue, San Francisco Public Utilities Commission Office Project, Tender Option Bond Trust B001, 29.403%, 11/01/30 (IF)	No Opt. Call		AA–		5,965,200
			Stanton Redevelopment Agency, California, Consolidated Project Tax Allocation Bonds, Series 2011A:
	275		6.500%, 12/01/17	No Opt. Call		A–		295,573
	295		6.750%, 12/01/18	No Opt. Call		A–		319,075

	Principal			Optional Call
	Amount (000)		Description (1)	Provisions (2)		Ratings (3)		Value
			California (continued)
$	2,505		University of California, General Revenue Bonds, Limited Project, Build America Taxable Bond Series 2010F, 5.946%, 5/15/45	No Opt. Call		Aa2	$	3,070,253
	106,745		Total California					145,363,375
			Colorado – 1.1% (0.9% of Total Investments)
	3,100		Denver School District 1, Colorado, General Obligation Bonds, Build America Taxable Bonds, Series 2009C, 5.664%, 12/01/33	No Opt. Call		AA+		3,860,895
	2,000		Mesa State College, Colorado, Auxiliary Facilities Enterprise Revenue Bonds, Build America Taxable Bond Series 2010B, 6.746%, 5/15/42	No Opt. Call		Aa2		2,675,340
	5,100		Total Colorado					6,536,235
			Connecticut – 0.9% (0.8% of Total Investments)
	4,500		Harbor Point Infrastructure Improvement District, Connecticut, Special Obligation Revenue Bonds, Harbor Point Project, Federally Taxable – Issuer Subsidy – Recovery Zone Economic Development Bond Series 2010B, 12.500%, 4/01/39	4/20 at 100.00		N/R		5,609,925
			Florida – 1.0% (0.8% of Total Investments)
	5,000		Florida State Board of Education, Public Education Capital Outlay Bonds, Build America Taxable Bonds, Series 2010G, 5.750%, 6/01/35	6/19 at 100.00		AAA		5,781,750
			Georgia – 4.6% (3.8% of Total Investments)
	9,000		Georgia Municipal Electric Authority, Plant Vogtle Units 3 & 4 Project J Bonds, Taxable Build America Bonds Series 2010A, 6.637%, 4/01/57	No Opt. Call		A+		10,715,490
	15,000		Georgia Municipal Electric Authority, Plant Vogtle Units 3 & 4 Project P Bonds, Refunding Taxable Build America Bonds Series 2010A, 7.055%, 4/01/57	No Opt. Call		A–		16,947,600
	24,000		Total Georgia					27,663,090
			Illinois – 14.4% (11.8% of Total Investments)
	3,800		Chicago Transit Authority, Illinois, Sales Tax Receipts Revenue Bonds, Federally Taxable Build America Bonds, Series 2010B, 6.200%, 12/01/40	No Opt. Call		AA		4,353,926
	10,750		Chicago, Illinois, General Airport Revenue Bonds, O’Hare International Airport, Third Lien, Build America Taxable Bond Series 2010B, 6.845%, 1/01/38	1/20 at 100.00		A2		12,482,470
	12,090		Chicago, Illinois, Wastewater Transmission Revenue Bonds, Build America Taxable Bond Series 2010B, 6.900%, 1/01/40	No Opt. Call		AA		15,255,162
	10,070		Chicago, Illinois, Water Revenue Bonds, Taxable Second Lien Series 2010B, 6.742%, 11/01/40	No Opt. Call		AA		13,577,482
	16,240		Cook County, Illinois, General Obligation Bonds, Build America Taxable Bonds, Series 2010D, 6.229%, 11/15/34	No Opt. Call		AA		18,624,357
	500		Illinois Finance Authority, Revenue Bonds, Illinois Institute of Technology, Refunding Series 2006B, 6.100%, 4/01/15	5/13 at 100.00		Baa3		496,100
	14,000		Illinois State, General Obligation Bonds, Taxable Build America Bonds, Series 2010-3, 6.725%, 4/01/35	No Opt. Call		A2		15,964,760
	4,430		Illinois Toll Highway Authority, Toll Highway Revenue Bonds, Build America Taxable Bonds, Senior Lien Series 2009A, 6.184%, 1/01/34	No Opt. Call		AA–		5,639,257
	71,880		Total Illinois					86,393,514
			Indiana – 1.0% (0.9% of Total Investments)
	5,000		Indiana University, Consolidated Revenue Bonds, Build America Taxable Bonds, Series 2010B, 5.636%, 6/01/35	6/20 at 100.00		Aaa		5,764,700
			Kentucky – 1.8% (1.4% of Total Investments)
	5,000		Kentucky Municipal Power Agency, Power Supply System Revenue Bonds, Prairie State Project, Tender Option Bond Trust B002, 28.288%, 9/01/37 – AGC Insured (IF)	9/20 at 100.00		AA–		7,842,750
	1,950		Louisville and Jefferson County Metropolitan Sewer District, Kentucky, Sewer and Drainage System Revenue Bonds, Build America Taxable Bonds Series 2010A, 6.250%, 5/15/43	No Opt. Call		AA		2,642,894
	6,950		Total Kentucky					10,485,644

		Nuveen Build America Bond Fund (continued)
NBB		Portfolio of Investments
		March 31, 2013

	Principal			Optional Call
	Amount (000)		Description (1)	Provisions (2)		Ratings (3)		Value
			Louisiana – 3.8% (3.1% of Total Investments)
$	20,350		East Baton Rouge Sewerage Commission, Louisiana, Revenue Bonds, Build America Taxable Bonds, Series 2010B, 6.087%, 2/01/45 (UB) (4)	2/20 at 100.00		AA	$	22,894,768
			Maryland – 0.6% (0.4% of Total Investments)
	2,500		Maryland Transportation Authority, Transportation Facilities Projects Revenue Bonds, Build America Taxable Bonds, Series 2009B, 5.888%, 7/01/43	No Opt. Call		AA–		3,307,775
			Massachusetts – 0.8% (0.7% of Total Investments)
	2,000		Massachusetts, Transportation Fund Revenue Bonds, Accelerated Bridge Program, Tender Option Bond Trust T0004, 25.676%, 6/01/40 (IF) (4)	No Opt. Call		AAA		4,970,600
			Michigan – 4.9% (4.0% of Total Investments)
	12,650		Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Build America Taxable Bond Series 2009B, 7.747%, 5/01/39	No Opt. Call		Aa2		15,964,300
	3,615		Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Taxable Turbo Series 2006A, 7.309%, 6/01/34	No Opt. Call		B2		3,161,028
	8,620		Wayne County Building Authority, Michigan, General Obligation Bonds, Jail Facilities, Federally Taxable Recovery Zone Economic Development Series 2010, 10.000%, 12/01/40	12/20 at 100.00		BBB+		10,309,520
	24,885		Total Michigan					29,434,848
			Missouri – 0.3% (0.2% of Total Investments)
	1,290		Curators of the University of Missouri, System Facilities Revenue Bonds, Build America Taxable Bonds, Series 2009A, 5.960%, 11/01/39	No Opt. Call		AA+		1,679,774
			Nevada – 5.0% (4.1% of Total Investments)
	8,810		Clark County, Nevada, Airport Revenue Bonds, Senior Lien Series 2009B, 6.881%, 7/01/42	7/19 at 100.00		Aa2		10,372,982
	1,800		Clark County, Nevada, Airport System Revenue, Taxable Direct Payment Build America Bonds, Senior Series 2010C, 6.820%, 7/01/45	No Opt. Call		Aa2		2,534,670
	8,800		Las Vegas Valley Water District, Nevada, Limited Tax General Obligation Bonds, Build America Taxable Bonds, Series 2009C, 7.013%, 6/01/39	No Opt. Call		AA+		9,964,680
	1,315		Las Vegas, Nevada, Certificates of Participation, City Hall Project, Build America Federally Taxable Bonds, Series 2009B, 7.800%, 9/01/39	9/19 at 100.00		AA–		1,563,285
	4,000		North Las Vegas, Nevada, General Obligation Water and Wastewater Improvement Bonds, Build America Taxable Bonds, Series 2010A, 6.572%, 6/01/40	No Opt. Call		A		4,591,440
	1,080		Reno, Nevada, 1999 Special Assessment District 2 Local Improvement Bonds, ReTRAC Project, Taxable Series 2006, 6.890%, 6/01/16	No Opt. Call		BBB		1,124,831
	25,805		Total Nevada					30,151,888
			New Jersey – 3.8% (3.1% of Total Investments)
	3,100		New Jersey Turnpike Authority, Revenue Bonds, Build America Taxable Bonds, Series 2009F, 7.414%, 1/01/40	No Opt. Call		A+		4,547,731
	12,505		New Jersey Turnpike Authority, Revenue Bonds, Build America Taxable Bonds, Series 2010A, 7.102%, 1/01/41	No Opt. Call		A+		17,862,892
	15,605		Total New Jersey					22,410,623
			New York – 12.7% (10.4% of Total Investments)
	25,000		Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, Build America Taxable Bonds, Series 2010D, 5.600%, 3/15/40 (UB) (4)	No Opt. Call		AAA		31,465,750
	5,000		Long Island Power Authority, New York, Electric System Revenue Bonds, Build America Taxable Bond Series 2010B, 5.850%, 5/01/41	No Opt. Call		A		5,611,300
	1,505		Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Build America Taxable Bonds, Series 2010C, 7.336%, 11/15/39	No Opt. Call		AA		2,222,102
	4,980		Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Build America Taxable Bonds, Series 2009A-1, 5.871%, 11/15/39	No Opt. Call		A		5,885,812

	Principal			Optional Call
	Amount (000)		Description (1)	Provisions (2)		Ratings (3)		Value
			New York (continued)
$	2,595		New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Second Generation Resolution, Build America Taxable Bonds, Series 2010DD, 5.952%, 6/15/42	No Opt. Call		AA+	$	3,490,560
	2,025		New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Second Generation Resolution, Build America Taxable Bonds, Series 2010DD, 5.952%, 6/15/42 (UB)	No Opt. Call		AA+		2,723,848
	1,595		New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Second Generation Resolution, Taxable Tender Option Bonds Trust T30001-2, 26.839%, 6/15/44 (IF)	No Opt. Call		AA+		4,221,885
	6,240		New York City Transitional Finance Authority, New York, Building Aid Revenue Bonds, Build America Taxable Bond Fiscal 2011 Series 2010S-1B, 6.828%, 7/15/40	No Opt. Call		AA–		8,536,507
	10,000		New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Build America Taxable Bonds, Series 2010G-1, 5.467%, 5/01/40 (4)	No Opt. Call		AAA		12,050,800
	58,940		Total New York					76,208,564
			Ohio – 6.5% (5.3% of Total Investments)
			American Municipal Power Inc., Ohio, Combined Hydroelectric Projects Revenue Bonds, Federally Taxable Build America Bonds, Series 2010B:
	10,000		7.834%, 2/15/41	No Opt. Call		A		14,018,500
	5,000		8.084%, 2/15/50	No Opt. Call		A		7,353,950
	15,000		Northeast Ohio Regional Sewer District, Wastewater Improvement Revenue Bonds, Build America Taxable Bonds, Series 2010, 6.038%, 11/15/40	11/20 at 100.00		AA+		17,639,250
	30,000		Total Ohio					39,011,700
			Oregon – 3.2% (2.6% of Total Investments)
	4,000		Oregon Department of Administrative Services, Certificates of Participation, Federally Taxable Build America Bonds, Tender Option Bond Trust TN-011, 27.034%, 5/01/35 (IF) (4)	5/20 at 100.00		AA		7,851,800
	9,365		Warm Springs Reservation Confederated Tribes, Oregon, Tribal Economic Development Bonds, Hydroelectric Revenue Bonds, Pelton Round Butte Project, Refunding Series 2009A, 8.250%, 11/01/19	No Opt. Call		A3		11,033,843
	13,365		Total Oregon					18,885,643
			Pennsylvania – 1.2% (1.0% of Total Investments)
	2,550		Commonwealth Financing Authority, Pennsylvania, State Appropriation Lease Bonds, Build America Taxable Bonds, Series 2009D, 6.218%, 6/01/39	No Opt. Call		AA		3,123,954
	2,000		Pennsylvania State, General Obligation Bonds, Build America Taxable Bonds, Third Series 2010B, 5.850%, 7/15/30	7/20 at 100.00		AA+		2,402,900
	1,400		Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Build America Taxable Bonds, Series 2009A, 6.105%, 12/01/39	No Opt. Call		Aa3		1,757,826
	5,950		Total Pennsylvania					7,284,680
			South Carolina – 5.4% (4.4% of Total Investments)
	15,000		South Carolina Public Service Authority, Electric System Revenue Bonds, Santee Cooper, Federally Taxable Build America Series 2010C, 6.454%, 1/01/50	No Opt. Call		AA–		19,941,300
	205		South Carolina Public Service Authority, Electric System Revenue Bonds, Santee Cooper, Federally Taxable Build America Tender Option Bond Trust T30002, 29.870%, 1/01/50 (IF)	No Opt. Call		AA–		542,656
	8,985		South Carolina Public Service Authority, Electric System Revenue Bonds, Santee Cooper, Federally Taxable Build America Series 2010C, 6.454%, 1/01/50 (UB)	No Opt. Call		AA–		11,944,839
	24,190		Total South Carolina					32,428,795
			South Dakota – 0.3% (0.3% of Total Investments)
	2,000		South Dakota Educational Enhancement Funding Corporation, Tobacco Settlement Revenue Bonds, Series 2013A, 3.539%, 6/01/22	No Opt. Call		A		2,013,820

		Nuveen Build America Bond Fund (continued)
NBB		Portfolio of Investments
		March 31, 2013

	Principal			Optional Call
	Amount (000)		Description (1)	Provisions (2)		Ratings (3)		Value
			Tennessee – 3.3% (2.7% of Total Investments)
$	1,020		Metropolitan Government Nashville & Davidson County Convention Center Authority, Tennessee, Tourism Tax Revenue Bonds, Build America Taxable Bonds, Subordinate Lien Series 2010B, 6.731%, 7/01/43	No Opt. Call		Aa2	$	1,285,853
	15,000		Metropolitan Government Nashville & Davidson County Convention Center Authority, Tennessee, Tourism Tax Revenue Bonds, Build America Taxable Bonds, Series 2010A-2, 7.431%, 7/01/43	No Opt. Call		A1		18,678,150
	16,020		Total Tennessee					19,964,003
			Texas – 10.1% (8.2% of Total Investments)
	9,940		Dallas Convention Center Hotel Development Corporation, Texas, Hotel Revenue Bonds, Build America Taxable Bonds, Series 09B, 7.088%, 1/01/42	No Opt. Call		A+		12,636,523
	10,000		North Texas Tollway Authority, System Revenue Bonds, Subordinate Lien Taxable Revenue Bonds, Federally Taxable Build America Bonds, Series 2010-B2, 8.910%, 2/01/30	2/20 at 100.00		Baa3		12,221,500
	15,000		North Texas Tollway Authority, System Revenue Bonds, Taxable Build America Bond Series 2009B, 6.718%, 1/01/49	No Opt. Call		A2		20,479,950
	5,000		San Antonio, Texas, General Obligation Bonds, Build America Taxable Bonds, Series 2010B, 6.038%, 8/01/40	8/20 at 100.00		AAA		5,780,050
	7,015		Texas State, General Obligation Bonds, Transportation Commission, Build America Taxable Bonds, Series 2009A, 5.517%, 4/01/39	No Opt. Call		Aaa		8,993,861
	46,955		Total Texas					60,111,884
			Utah – 0.7% (0.6% of Total Investments)
	4,000		Central Utah Water Conservancy District, Utah, Revenue Bonds, Federally Taxable Build America Bonds, Series 2010A, 5.700%, 10/01/40	4/20 at 100.00		AA+		4,448,160
			Vermont – 1.1% (0.9% of Total Investments)
	5,000		University of Vermont and State Agricultural College, Revenue Bonds, Build America Bonds Series 2010, 6.428%, 10/01/44	No Opt. Call		Aa3		6,383,450
			Virginia – 3.2% (2.6% of Total Investments)
	4,300		Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, Series 2009D, 7.462%, 10/01/46 – AGC Insured	No Opt. Call		BBB+		5,497,980
	10,000		Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, Dulles Metrorail Capital Improvement Project, Build America Taxable Bonds, Series 2010D, 8.000%, 10/01/47	No Opt. Call		BBB		12,165,000
	1,705		Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset Backed Bonds, Refunding Senior Lien Series 2007A-1, 6.706%, 6/01/46	6/17 at 100.00		B2		1,267,241
	16,005		Total Virginia					18,930,221
			Washington – 3.8% (3.1% of Total Investments)
	5,185		Grays Harbor County Public Utility District 1, Washington, Electric System Revenue Bonds, Taxable Build America Bonds – Direct Payment, Series 2010A, 6.707%, 7/01/40	No Opt. Call		A1		6,336,381
	5,000		Mason County Public Utility District 3, Washington, Electric Revenue Bonds, Build America Taxable Bonds, Series 2010B, 6.347%, 12/01/40	6/20 at 100.00		Aa3		5,339,350
	2,505		Okanogan County Public Utility District 1, Washington, Electric System Revenue Bonds, Build America Taxable Bonds – Direct Payment, Series 2010B, 6.046%, 12/01/40	No Opt. Call		A1		2,993,124
	4,000		Seattle, Washington, Municipal Light and Power Revenue Bonds, Federally Taxable Build America Bonds, Tender Option Bond Trust T0001, 24.829%, 2/01/40 (IF) (4)	No Opt. Call		Aa2		8,125,200
	16,690		Total Washington					22,794,055
$	574,795		Total Municipal Bonds (cost $622,283,004)					732,372,245

	Principal
	Amount (000)		Description (1)	Coupon		Maturity		Value
			Short-Term Investments – 0.1% (0.0% of Total Investments)
$	347		Repurchase Agreement with State Street Bank, dated 3/28/13, repurchase price $347,402, collateralized by $340,000 U.S. Treasury Notes, 2.375%, due 10/31/14, value $354,803	0.010%		4/01/13	$	347,401
			Total Short-Term Investments (cost $347,401)					347,401
			Total Investments (cost $622,630,405) – 122.5%					732,719,646
			Borrowings – (14.9)% (5), (6)					(89,000,000	)
			Floating Rate Obligations – (8.9)%					(53,090,000	)
			Other Assets Less Liabilities – 1.3% (7)					7,483,388
			Net Assets – 100%				$	598,113,034

Swaps outstanding:

Counterparty

Notional Amount

Fund Pay/Receive Floating Rate

Floating Rate Index

Fixed Rate (Annualized)

Fixed Rate Payment Frequency

Effective Date (8)

Termination Date

Unrealized Appreciation (Depreciation) (7)

Barclays Bank PLC

$

60,500,000

Receive

1-Month USD-LIBOR

1.450

%

Monthly

10/01/14

10/01/18

$

(417,106

)

JPMorgan

19,200,000

Receive

1-Month USD-LIBOR

1.193

Monthly

3/21/11

3/21/14

(182,272

)

Morgan Stanley

19,200,000

Receive

1-Month USD-LIBOR

2.064

Monthly

3/21/11

3/21/16

(940,594

)

Morgan Stanley

60,500,000

Receive

1-Month USD-LIBOR

1.764

Monthly

10/01/14

12/01/19

(506,827

)

Morgan Stanley

135,000,000

Receive

3-Month USD-LIBOR

3.035

Semi-Annually

2/21/14

2/21/41

1,493,801

$

(552,998

)

		Nuveen Build America Bond Opportunity Fund
NBD		Portfolio of Investments
		March 31, 2013

	Principal			Optional Call
	Amount (000)		Description (1)	Provisions (2)		Ratings (3)		Value
			Municipal Bonds – 109.5% (99.6% of Total Investments)
			California – 20.0% (18.2% of Total Investments)
$	1,500		California State Public Works Board, Lease Revenue Bonds, Various Capital Projects, Build America Taxable Bond Series 2009G-2, 8.361%, 10/01/34	No Opt. Call		A2	$	2,020,095
	675		City and County of San Francisco Redevelopment Financing Authority, California, Taxable Tax Allocation Revenue Bonds, San Francisco Redevelopment Projects, Series 2009F, 8.406%, 8/01/39	No Opt. Call		A		825,822
	2,000		Los Angeles Community College District, Los Angeles County, California, General Obligation Bonds, Tender Option Bond Trust TN027, 30.326%, 8/01/49 (IF) (4)	No Opt. Call		Aa1		6,380,900
	3,000		Los Angeles County Public Works Financing Authority, California, Lease Revenue Bonds, Multiple Capital Projects I, Build America Taxable Bond Series 2010B, 7.618%, 8/01/40	No Opt. Call		AA–		3,999,446
	2,650		Los Angeles Department of Airports, California, Revenue Bonds, Los Angeles International Airport, Build America Taxable Bonds, Series 2009C, 6.582%, 5/15/39	No Opt. Call		AA–		3,431,618
	2,000		Los Angeles Department of Water and Power, California, Water System Revenue Bonds, Tender Option Bond Trust T0003, 30.235%, 7/01/42 (IF) (4)	No Opt. Call		AA		6,454,600
	1,000		Oakland Redevelopment Agency, California, Subordinated Housing Set Aside Revenue Bonds, Federally Taxable Series 2011A-T, 7.500%, 9/01/19	No Opt. Call		A		1,137,240
	2,175		San Diego County Regional Transportation Commission, California, Sales Tax Revenue Bonds, Build America Taxable Bonds Series 2010A, 5.911%, 4/01/48	No Opt. Call		AAA		2,852,317
	2,000		San Francisco City and County, California, Certificates of Participation, 525 Golden Gate Avenue, San Francisco Public Utilities Commission Office Project, Tender Option Bond Trust B001, 29.403%, 11/01/41 (IF)	No Opt. Call		AA–		2,982,600
	315		Stanton Redevelopment Agency, California, Consolidated Project Tax Allocation Bonds, Series 2011A, 7.000%, 12/01/19	No Opt. Call		A–		344,985
	3,000		The Regents of the University of California, Medical Center Pooled Revenue Bonds, Build America Taxable Bonds, Series 2010H, 6.548%, 5/15/48	No Opt. Call		Aa2		3,979,440
	20,315		Total California					34,409,063
			Colorado – 4.6% (4.2% of Total Investments)
	4,000		Colorado State Bridge Enterprise Revenue Bonds, Federally Taxable Build America Series 2010A, 6.078%, 12/01/40	No Opt. Call		AA		5,232,400
	2,000		Regional Transportation District, Colorado, Sales Tax Revenue Bonds, FasTracks Project, Build America Series 2010B, 5.844%, 11/01/50	No Opt. Call		AA+		2,694,420
	6,000		Total Colorado					7,926,820
			Connecticut – 0.7% (0.7% of Total Investments)
	1,000		Harbor Point Infrastructure Improvement District, Connecticut, Special Obligation Revenue Bonds, Harbor Point Project, Federally Taxable – Issuer Subsidy – Recovery Zone Economic Development Bond Series 2010B, 12.500%, 4/01/39	4/20 at 100.00		N/R		1,246,650
			District of Columbia – 0.6% (0.5% of Total Investments)
	800		District of Columbia, Income Tax Secured Revenue Bonds, Build America Taxable Bonds, Series 2009E, 5.591%, 12/01/34	No Opt. Call		AAA		996,920
			Georgia – 3.3% (3.0% of Total Investments)
	2,000		Georgia Municipal Electric Authority, Plant Vogtle Units 3 & 4 Project J Bonds, Taxable Build America Bonds Series 2010A, 6.637%, 4/01/57	No Opt. Call		A+		2,381,220
	3,000		Georgia Municipal Electric Authority, Plant Vogtle Units 3 & 4 Project P Bonds, Refunding Taxable Build America Bonds Series 2010A, 7.055%, 4/01/57	No Opt. Call		A–		3,389,520
	5,000		Total Georgia					5,770,740

	Principal			Optional Call
	Amount (000)		Description (1)	Provisions (2)		Ratings (3)		Value
			Illinois – 15.0% (13.6% of Total Investments)
$	3,575		Chicago Transit Authority, Illinois, Sales Tax Receipts Revenue Bonds, Federally Taxable Build America Bonds, Series 2010B, 6.200%, 12/01/40	No Opt. Call		AA	$	4,096,128
	1,010		Chicago, Illinois, General Airport Revenue Bonds, O’Hare International Airport, Third Lien, Build America Taxable Bond Series 2010B, 6.845%, 1/01/38	1/20 at 100.00		A2		1,172,772
	5,160		Chicago, Illinois, Wastewater Transmission Revenue Bonds, Build America Taxable Bond Series 2010B, 6.900%, 1/01/40	No Opt. Call		AA		6,510,888
	3,545		Chicago, Illinois, Water Revenue Bonds, Taxable Second Lien Series 2010B, 6.742%, 11/01/40	No Opt. Call		AA		4,779,759
	1,000		Cook County, Illinois, General Obligation Bonds, Build America Taxable Bonds, Series 2010D, 6.229%, 11/15/34	No Opt. Call		AA		1,146,820
	500		Illinois Finance Authority, Revenue Bonds, Illinois Institute of Technology, Refunding Series 2006B, 6.100%, 4/01/15	5/13 at 100.00		Baa3		496,100
	2,000		Illinois State, General Obligation Bonds, Build America Taxable Bonds, Series 2010-5, 7.350%, 7/01/35	No Opt. Call		A2		2,409,260
	4,110		Illinois Toll Highway Authority, Toll Highway Revenue Bonds, Build America Taxable Bonds, Senior Lien Series 2009A, 6.184%, 1/01/34	No Opt. Call		AA–		5,231,907
	20,900		Total Illinois					25,843,634
			Indiana – 2.6% (2.4% of Total Investments)
	3,480		Indianapolis Local Public Improvement Bond Bank, Indiana, Build America Taxable Bonds, Series 2010B-2, 6.116%, 1/15/40	No Opt. Call		AA+		4,557,547
			Kentucky – 2.4% (2.1% of Total Investments)
	3,000		Louisville and Jefferson County Metropolitan Sewer District, Kentucky, Sewer and Drainage System Revenue Bonds, Build America Taxable Bonds Series 2010A, 6.250%, 5/15/43	No Opt. Call		AA		4,065,990
			Massachusetts – 2.9% (2.6% of Total Investments)
	2,000		Massachusetts, Transportation Fund Revenue Bonds, Accelerated Bridge Program, Tender Option Bond Trust T0004, 25.676%, 6/01/40 (IF) (4)	No Opt. Call		AAA		4,970,600
			Michigan – 4.4% (4.0% of Total Investments)
	3,000		Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Build America Taxable Bond Series 2010B, 6.845%, 5/01/40	5/20 at 100.00		Aa2		3,212,310
	2,200		Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Asset-Backed Revenue Bonds, Taxable Turbo Series 2006A, 7.309%, 6/01/34	No Opt. Call		B2		1,923,724
	2,000		Wayne County Building Authority, Michigan, General Obligation Bonds, Jail Facilities, Federally Taxable Recovery Zone Economic Development Series 2010, 10.000%, 12/01/40	12/20 at 100.00		BBB+		2,392,000
	7,200		Total Michigan					7,528,034
			Mississippi – 1.8% (1.6% of Total Investments)
	2,585		Mississippi State, General Obligation Bonds, Build America Taxable Bond Series 2010F, 5.245%, 11/01/34	No Opt. Call		AA+		3,091,324
			Missouri – 1.1% (1.0% of Total Investments)
	250		Curators of the University of Missouri, System Facilities Revenue Bonds, Build America Taxable Bonds, Series 2009A, 5.960%, 11/01/39	No Opt. Call		AA+		325,538
	1,150		Curators of the University of Missouri, System Facilities Revenue Bonds, Build America Taxable Bonds, Series 2010, 5.792%, 11/01/41	No Opt. Call		AA+		1,532,628
	1,400		Total Missouri					1,858,166
			Nevada – 2.5% (2.3% of Total Investments)
	1,950		Clark County, Nevada, Airport Revenue Bonds, Senior Lien Series 2009B, 6.881%, 7/01/42	7/19 at 100.00		Aa2		2,295,950
	1,500		Clark County, Nevada, Airport System Revenue, Taxable Direct Payment Build America Bonds, Senior Series 2010C, 6.820%, 7/01/45	No Opt. Call		Aa2		2,112,225
	3,450		Total Nevada					4,408,175

		Nuveen Build America Bond Opportunity Fund (continued)
NBD		Portfolio of Investments
		March 31, 2013

	Principal			Optional Call
	Amount (000)		Description (1)	Provisions (2)		Ratings (3)		Value
			New Jersey – 7.0% (6.4% of Total Investments)
$	3,055		New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Build America Bonds Issuer Subsidy Program, Series 2010C, 5.754%, 12/15/28	No Opt. Call		A+	$	3,739,076
	4,000		New Jersey Turnpike Authority, Revenue Bonds, Build America Taxable Bonds, Series 2010A, 7.102%, 1/01/41	No Opt. Call		A+		5,713,840
	2,070		Rutgers State University, New Jersey, Revenue Bonds, Build America Taxable Bond Series 2010H, 5.665%, 5/01/40	No Opt. Call		AA		2,572,948
	9,125		Total New Jersey					12,025,864
			New York – 14.2% (13.0% of Total Investments)
	2,000		Dormitory Authority of the State of New York, State Personal Income Tax Revenue Bonds, Tender Option Bond Trust B004, 24.683%, 3/15/40 (IF)	No Opt. Call		AAA		4,586,300
	2,305		Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Federally Taxable Issuer Subsidy Build America Bonds, Series 2010A, 6.668%, 11/15/39	No Opt. Call		A		3,022,984
	3,000		New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Second Generation Resolution, Build America Taxable Bonds, Fiscal 2011 Series AA, 5.440%, 6/15/43 (4)	No Opt. Call		AA+		3,759,570
	2,000		New York City Municipal Water Finance Authority, New York, Water and Sewer System Revenue Bonds, Second Generation Resolution, Taxable Tender Option Bonds Trust T30001-2, 26.839%, 6/15/44 (IF)	No Opt. Call		AA+		5,293,900
	3,500		New York City Transitional Finance Authority, New York, Building Aid Revenue Bonds, Build America Taxable Bond Fiscal 2011 Series 2010S-1B, 6.828%, 7/15/40	No Opt. Call		AA–		4,788,105
	2,500		New York City, New York, General Obligation Bonds, Federally Taxable Build America Bonds, Series 2010-F1, 6.646%, 12/01/31	12/20 at 100.00		AA		3,083,925
	15,305		Total New York					24,534,784
			North Carolina – 1.0% (0.9% of Total Investments)
	1,400		North Carolina Turnpike Authority, Triangle Expressway System State Annual Appropriation Revenue Bonds, Federally Taxable Issuer Subsidy Build America Bonds, Series 2009B, 6.700%, 1/01/39	1/19 at 100.00		AA		1,653,316
			Ohio – 4.1% (3.8% of Total Investments)
	3,000		American Municipal Power Inc., Ohio, Meldahl Hydroelectric Projects Revenue Bonds, Federally Taxable Build America Bonds, Series 2010B, 7.499%, 2/15/50	No Opt. Call		A		4,037,130
	2,650		Northeast Ohio Regional Sewer District, Wastewater Improvement Revenue Bonds, Build America Taxable Bonds, Series 2010, 6.038%, 11/15/40	11/20 at 100.00		AA+		3,116,268
	5,650		Total Ohio					7,153,398
			Pennsylvania – 1.7% (1.6% of Total Investments)
	2,500		Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Build America Taxable Bonds, Series 2010B, 5.511%, 12/01/45	No Opt. Call		Aa3		2,973,900
			South Carolina – 9.1% (8.3% of Total Investments)
	2,395		South Carolina Public Service Authority, Electric System Revenue Bonds, Santee Cooper, Federally Taxable Build America Series 2010C, 6.454%, 1/01/50	No Opt. Call		AA–		3,183,961
	205		South Carolina Public Service Authority, Electric System Revenue Bonds, Santee Cooper, Federally Taxable Build America Tender Option Bond Trust T30002, 29.870%, 1/01/50 (IF)	No Opt. Call		AA–		542,656
	8,985		South Carolina Public Service Authority, Electric System Revenue Bonds, Santee Cooper, Federally Taxable Build America Series 2010C, 6.454%, 1/01/50 (UB)	No Opt. Call		AA–		11,944,839
	11,585		Total South Carolina					15,671,456
			South Dakota – 0.6% (0.5% of Total Investments)
	1,000		South Dakota Educational Enhancement Funding Corporation, Tobacco Settlement Revenue Bonds, Series 2013A, 3.539%, 6/01/22	No Opt. Call		A		1,006,910

	Principal			Optional Call
	Amount (000)		Description (1)	Provisions (2)		Ratings (3)		Value
			Tennessee – 2.2% (2.0% of Total Investments)
$	3,000		Metropolitan Government Nashville & Davidson County Convention Center Authority, Tennessee, Tourism Tax Revenue Bonds, Build America Taxable Bonds, Subordinate Lien Series 2010B, 6.731%, 7/01/43	No Opt. Call		Aa2	$	3,781,920
			Texas – 4.1% (3.7% of Total Investments)
	2,000		Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue Bonds, Build America Taxable Bonds, Series 2009B, 5.999%, 12/01/44	No Opt. Call		AA+		2,670,060
	2,000		Dallas Convention Center Hotel Development Corporation, Texas, Hotel Revenue Bonds, Build America Taxable Bonds, Series 2009B, 7.088%, 1/01/42	No Opt. Call		A+		2,542,560
	1,500		North Texas Tollway Authority, System Revenue Bonds, Subordinate Lien Taxable Revenue Bonds, Federally Taxable Build America Bonds, Series 2010-B2, 8.910%, 2/01/30	2/20 at 100.00		Baa3		1,833,225
	5,500		Total Texas					7,045,845
			Virginia – 2.9% (2.6% of Total Investments)
	2,110		Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, Series 2009D, 7.462%, 10/01/46 – AGC Insured	No Opt. Call		BBB+		2,697,846
	3,000		Tobacco Settlement Financing Corporation of Virginia, Tobacco Settlement Asset Backed Bonds, Refunding Senior Lien Series 2007A-1, 6.706%, 6/01/46	6/17 at 100.00		B2		2,229,750
	5,110		Total Virginia					4,927,596
			Washington – 0.7% (0.6% of Total Investments)
	1,000		Washington State Convention Center Public Facilities District, Lodging Tax Revenue Bonds, Build America Taxable Bond Series 2010B, 6.790%, 7/01/40	No Opt. Call		Aa3		1,213,470
$	138,305		Total Municipal Bonds (cost $142,482,026)					188,662,122
	Principal
	Amount (000)		Description (1)	Coupon		Maturity		Value
			Short-Term Investments – 0.4% (0.4% of Total Investments)
$	748		Repurchase Agreement with State Street Bank, dated 3/28/13, repurchase price $748,003, collateralized by $735,000 U.S. Treasury Notes, 2.375%, due 10/31/14, value $767,000	0.010%		4/01/13	$	748,002
			Total Short-Term Investments (cost $748,002)					748,002
			Total Investments (cost $143,230,028) – 109.9%					189,410,124
			Borrowings – (6.7)% (5), (6)					(11,500,000	)
			Floating Rate Obligations – (4.2)%					(7,190,000	)
			Other Assets Less Liabilities – 1.0% (7)					1,610,392
			Net Assets – 100%				$	172,330,516

		Nuveen Build America Bond Opportunity Fund (continued)
NBD		Portfolio of Investments
		March 31, 2013

 

Investments in Derivatives as of March 31, 2013

Swaps outstanding:

Counterparty

Notional Amount

Fund Pay/Receive Floating Rate

Floating Rate Index

Fixed Rate (Annualized)

Fixed Rate Payment Frequency

Effective Date (8)

Termination Date

Unrealized Appreciation (Depreciation) (7)

Barclays Bank PLC

$

11,200,000

Receive

1-Month USD-LIBOR

2.240

%

Monthly

12/17/10

12/17/15

$

(569,172

)

Barclays Bank PLC

14,750,000

Receive

1-Month USD-LIBOR

1.450

Monthly

10/01/14

10/01/18

(101,691

)

Barclays Bank PLC

20,000,000

Receive

3-Month USD-LIBOR

3.280

Semi-Annually

2/19/15

2/19/42

(151,759

)

Morgan Stanley

11,200,000

Receive

1-Month USD-LIBOR

1.295

Monthly

12/17/10

12/17/13

(89,524

)

Morgan Stanley

14,750,000

Receive

1-Month USD-LIBOR

1.875

Monthly

10/01/14

6/01/20

(126,356

)

Morgan Stanley

18,000,000

Receive

3-Month USD-LIBOR

3.098

Semi-Annually

1/24/14

1/24/41

(59,363

)

Morgan Stanley

15,000,000

Receive

3-Month USD-LIBOR

3.035

Semi-Annually

2/21/14

2/21/41

165,978

$

(931,887

)

		Statement of
		Assets & Liabilities
		March 31, 2013

 

		Build America Bond (NBB		)	Build America Bond Opportunity (NBD		)
Assets
Investments, at value (cost $622,630,405 and $143,230,028, respectively)		$	732,719,646		$	189,410,124
Receivable for interest			12,870,682			3,484,853
Unrealized appreciation on swaps, net			46,380			—
Other assets			39,066			7,034
Total assets			745,675,774			192,902,011
Liabilities
Bank Borrowings			89,000,000			11,500,000
Floating rate obligations			53,090,000			7,190,000
Unrealized depreciation on swaps, net			599,378			931,887
Payables:
Dividends			2,877,611			732,003
Investments purchased			1,295,969			—
Accrued expenses:
Interest on borrowings			74,854			9,676
Management fees			416,321			123,618
Trustees fees			18,503			1,063
Other			190,104			83,248
Total liabilities			147,562,740			20,571,495
Net assets		$	598,113,034		$	172,330,516
Shares outstanding			26,461,985			7,205,250
Net asset value per share outstanding		$	22.60		$	23.92
Net assets consist of:
Shares, $.01 par value per share		$	264,620		$	72,053
Paid-in surplus			504,137,904			137,235,389
Undistributed (Over-distribution of) net investment income			(297,532	)		(62,087	)
Accumulated net realized gain (loss)			(15,528,201	)		(10,163,048	)
Net unrealized appreciation (depreciation)			109,536,243			45,248,209
Net assets		$	598,113,034		$	172,330,516
Authorized shares			Unlimited			Unlimited

		Statement of
		Operations
		Year Ended March 31, 2013

		Build America			Build America
		Bond			Bond Opportunity
		(NBB		)	(NBD		)
Investment Income		$	42,260,917		$	11,480,429
Expenses
Management fees			4,766,294			1,484,514
Shareholder servicing agent fees and expenses			661			1,526
Interest expense			1,289,097			173,797
Custodian fees and expenses			99,863			37,705
Trustees fees and expenses			17,850			4,815
Professional fees			80,562			53,041
Shareholder reporting expenses			80,975			19,654
Stock exchange listing fees			8,471			8,471
Investor relations expenses			75,956			18,470
Other expenses			27,930			9,179
Total expenses			6,447,659			1,811,172
Net investment income (loss)			35,813,258			9,669,257
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments			5,671,625			1,334,232
Swaps			(537,486	)		232,303
Change in net unrealized appreciation (depreciation) of:
Investments			31,778,396			10,699,578
Swaps			(5,779,996	)		(2,902,583	)
Net realized and unrealized gain (loss)			31,132,539			9,363,530
Net increase (decrease) in net assets from operations		$	66,945,797		$	19,032,787

		Statement of
		Changes in Net Assets

		Build America						Build America
		Bond (NBB)						Bond Opportunity (NBD)
			Year			Year			Year			Year
			Ended			Ended			Ended			Ended
			3/31/13			3/31/12			3/31/13			3/31/12
Operations
Net investment income (loss)		$	35,813,258		$	36,070,542		$	9,669,257		$	10,464,282
Net realized gain (loss) from:
Investments			5,671,625			10,354,784			1,334,232			5,446,504
Swaps			(537,486	)		(28,929,551	)		232,303			(17,195,666	)
Change in net unrealized appreciation (depreciation) of:
Investments			31,778,396			92,493,528			10,699,578			32,826,692
Swaps			(5,779,996	)		(6,130,055	)		(2,902,583	)		1,817,779
Net increase (decrease) in net assets from operations			66,945,797			103,859,248			19,032,787			33,359,591
Distributions to Shareholders
From net investment income			(34,784,279	)		(36,927,700	)		(9,280,362	)		(10,753,836	)
Decrease in net assets from distributions to shareholders			(34,784,279	)		(36,927,700	)		(9,280,362	)		(10,753,836	)
Net increase (decrease) in net assets			32,161,518			66,931,548			9,752,425			22,605,755
Net assets at the beginning of period			565,951,516			499,019,968			162,578,091			139,972,336
Net assets at the end of period		$	598,113,034		$	565,951,516		$	172,330,516		$	162,578,091
Undistributed (Over-distribution of) net investment income at the end of period		$	(297,532	)	$	(825,208	)	$	(62,087	)	$	(109,752	)

		Statement of
		Cash Flows
		Year Ended March 31, 2013

			Build America			Build America
			Bond			Bond Opportunity
			(NBB	)		(NBD	)
Cash Flows from Operating Activities:
Net Increase (Decrease) in Net Assets from Operations		$	66,945,797		$	19,032,787
Adjustments to reconcile the net increase (decrease) in net assets from operations to net cash provided by (used in) operating activities:
Purchases of investments			(98,381,734	)		(19,688,854	)
Proceeds from sales and maturities of investments			50,720,187			8,033,655
Proceeds from (Purchases of) short-term investments, net			668,132			(748,002	)
Proceeds from (Payments for) swap contracts, net			(537,486	)		232,303
Amortization (Accretion) of premiums and discounts, net			530,485			20,045
(Increase) Decrease in:
Receivable for interest			(603,485	)		(159,532	)
Other assets			2,181			22,610
Increase (Decrease) in:
Payable for investments purchased			1,295,969			—
Accrued interest on borrowings			38,802			9,676
Accrued management fees			32,974			8,905
Accrued trustees fees			5,786			76
Accrued other expenses			(12,666	)		2,832
Net realized (gain) loss from:
Investments			(5,671,625	)		(1,334,232	)
Swaps			537,486			(232,303	)
Change in net unrealized (appreciation) depreciation of:
Investments			(31,778,396	)		(10,699,578	)
Swaps			5,779,996			2,902,583
Net cash provided by (used in) operating activities			(10,427,597	)		(2,597,029	)
Cash Flows from Financing Activities:
Increase (Decrease) in Borrowings			45,000,000			11,500,000
Cash distributions paid to shareholders			(34,572,403	)		(9,204,114	)
Net cash provided by (used in) financing activities			10,427,597			2,295,886
Net Increase (Decrease) in Cash			—			(301,143	)
Cash at the beginning of period			—			301,143
Cash at the End of Period		$	—		$	—

		Financial
		Highlights
	Selected data for a share outstanding throughout each period:

					Investment Operations									Less Distributions
		Beginning Net Asset Value			Net Investment Income (Loss)		(a)	Net Realized/ Unrealized Gain (Loss)			Total			From Net Investment Income			From Accumulated Net Realized Gains			Total			Offering Costs			Ending Net Asset Value			Ending Market Value
Build America Bond (NBB)
Year Ended 3/31:
2013		$	21.39		$	1.35		$	1.17		$	2.52		$	(1.31	)	$	—		$	(1.31	)	$	—		$	22.60		$	20.97
2012			18.86			1.36			2.57			3.93			(1.40	)		—			(1.40	)		—			21.39			20.18
2011(d)			19.10			1.19			(.22	)		.97			(1.17	)		—			(1.17	)		(0.04	)		18.86			18.06
Build America Bond Opportunity (NBD)
Year Ended 3/31:
2013			22.56			1.34			1.31			2.65			(1.29	)		—			(1.29	)		—			23.92			22.12
2012			19.43			1.45			3.17			4.62			(1.49	)		—			(1.49	)		—			22.56			20.97
2011(e)			19.10			.47			.28			.75			(.38	)		—			(.38	)		(0.04	)		19.43			18.63

		Borrowings at the End of Period
			Aggregate
			Amount			Asset
			Outstanding			Coverage
			(000	)		Per $1,000
Build America Bond (NBB)
Year Ended 3/31:
2013		$	89,000		$	7,720
2012			44,000			13,863
2011(d)			44,000			12,341
Build America Bond Opportunity (NBD)
Year Ended 3/31:
2013			11,500			15,985
2012			—			—
2011(e)			—			—

								Ratios/Supplemental Data
		Total Returns									Ratios to Average Net Assets
		Based on Market Value		(b)	Based on Net Asset Value		(b)	Ending Net Assets (000)			Expenses		(c)	Net Investment Income (Loss		)	Portfolio Turnover Rate
			10.57	%		12.05	%	$	598,113			1.10	%		6.10	%		7	%
			19.92			21.29			565,952			1.05			6.63			18
			(3.99	)		4.90			499,020			1.11	*		6.70	*		100
			11.88			11.97			172,331			1.07			5.74			4
			21.00			24.34			162,578			.97			6.74			7
			(4.96	)		3.73			139,972			.87	*		6.90	*		77

Build America Bond (NBB)
Year Ended 3/31:
2013			.22	%
2012			.18
2011(d)			.24	*
Build America Bond Opportunity (NBD)
Year Ended 3/31:
2013			.10	%
2012			.03
2011(e)			.03	*

			Build			Build America
			America			Bond
			Bond			Opportunity
			(NBB	)		(NBD	)
Maximum exposure to Recourse Trusts		$	91,190,000		$	40,810,000

			Build			Build America
			America			Bond
			Bond			Opportunity
			(NBB	)		(NBD	)
Average floating rate obligations outstanding		$	53,090,000		$	7,190,000
Average annual interest rate and fees			0.65	%		0.63	%

			Build			Build America
			America			Bond
			Bond			Opportunity
			(NBB	)		(NBD	)
Average notional amount of swap contracts outstanding*		$	246,000,000		$	93,100,000

Level 1 –	Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 –	Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 –	Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

Build America Bond (NBB)			Level 1			Level 2			Level 3			Total
Long-Term Investments*:
Municipal Bonds		$	—		$	732,372,245		$	—		$	732,372,245
Short-Term Investments:
Repurchase Agreements			—			347,401			—			347,401
Derivatives:
Swaps**			—			(552,998	)		—			(552,998	)
Total		$	—		$	732,166,648		$	—		$	732,166,648
Build America Bond Opportunity (NBD)			Level 1			Level 2			Level 3			Total
Long-Term Investments*:
Municipal Bonds		$	—		$	188,662,122		$	—		$	188,662,122
Short-Term Investments:
Repurchase Agreements			—			748,002			—			748,002
Derivatives:
Swaps**			—			(931,887	)		—			(931,887	)
Total		$	—		$	188,478,237		$	—		$	188,478,237

Build America Bond (NBB)

Location on the Statement of Assets and Liabilities

Asset Derivatives

Liability Derivatives

Underlying

Derivative

Risk Exposure

Instrument

Location

Value

Location

Value

Interest Rate

Swaps

Unrealized appreciation on

$

1,493,801

Unrealized depreciation

$

(599,378

)

swaps, net

on swaps, net

Interest Rate

Swaps

Unrealized appreciation on

(1,447,421

)

—

—

swaps, net

Total

$

46,380

$

(599,378

)

Build America Bond Opportunity (NBD)

Location on the Statement of Assets and Liabilities

Asset Derivatives

Liability Derivatives

Underlying

Derivative

Risk Exposure

Instrument

Location

Value

Location

Value

Interest Rate

Swaps

—

$

—

Unrealized depreciation

$

165,978

on swaps, net

Interest Rate

Swaps

—

—

Unrealized depreciation

(1,097,865

)

on swaps, net

Total

$

—

$

(931,887

)

 

The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (deprecation) recognized for the fiscal year ended March 31, 2013, on derivative instruments, as well as the primary risk exposure associated with each.

			Build			Build America
			America			Bond
			Bond			Opportunity
Net Realized Gain (Loss) from Swaps			(NBB	)		(NBD	)
Risk Exposure
Interest Rate		$	(537,486	)	$	232,303
			Build			Build America
			America			Bond
			Bond			Opportunity
Change in Net Unrealized Appreciation (Depreciation) of Swaps			(NBB	)		(NBD	)
Risk Exposure
Interest Rate		$	(5,779,996	)	$	(2,902,583	)

 

Nuveen Investments

39

 

 

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		Notes to
		Financial Statements (continued)

 

4. Fund Shares

Since the inception of the Funds’ repurchase programs, the Funds have not repurchased any of their outstanding shares.

 

Transactions in shares were as follows:

 

Build

Build America

America

Bond

Bond

Opportunity

(NBB)

(NBD )

Year

Year

Year

Year

Ended

Ended

Ended

Ended

3/31/13

3/31/12

3/31/13

3/31/12

Shares issued to shareholders due to reinvestment of distributions

—

—

—

—

 

5. Investment Transactions

Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the fiscal year ended March 31, 2013, were as follows:

			Build			Build America
			America			Bond
			Bond			Opportunity
			(NBB	)		(NBD	)
Purchases		$	98,381,734		$	19,688,854
Sales and maturities			50,720,187			8,033,655

 

6. 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 timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate securities reflected as financing transactions, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.

 

As of March 31, 2013, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:

 

			Build			Build America
			America			Bond
			Bond			Opportunity
			(NBB	)		(NBD	)
Cost of investments		$	569,843,208		$	136,135,627
Gross unrealized:
Appreciation		$	111,522,116		$	46,185,666
Depreciation			(1,738,973	)		(104,463	)
Net unrealized appreciation (depreciation) of investments		$	109,783,143		$	46,081,203

 

40

Nuveen Investments

 

 

---

 

 

Permanent differences, primarily due to federal taxes paid and notional principal contracts reclassifications, resulted in reclassifications among the Funds’ components of net assets as of March 31, 2013, the Funds’ tax year end, as follows:

 

			Build			Build America
			America			Bond
			Bond			Opportunity
			(NBB	)		(NBD	)
Paid-in surplus		$	—		$	—
Undistributed (Over-distribution of) net investment income			(501,303	)		(341,230	)
Accumulated net realized gain (loss)			501,303			341,230

 

The tax components of undistributed net ordinary income and net long-term capital gains as of March 31, 2013, the Funds’ tax year end, were as follows:

			Build			Build America
			America			Bond
			Bond			Opportunity
			(NBB	)		(NBD	)
Undistributed net ordinary income 1		$	3,744,745		$	820,457
Undistributed net long-term capital gains			—			—

 

1	Net ordinary income consists of net taxable income derived from dividends, interest and net short-term capital gains, if any. Undistributed net ordinary income (on a tax basis) has not been reduced for the dividend declared on March 1, 2013, and paid on April 1, 2013.

 

The tax character of distributions paid during the Funds’ tax years ended March 31, 2013 and March 31, 2012, was designated for purposes of the dividends paid deduction as follows:

			Build			Build America
			America			Bond
			Bond			Opportunity
2013			(NBB	)		(NBD	)
Distributions from net ordinary income 2		$	34,651,969		$	9,251,541
Distributions from net long-term capital gains			—			—
			Build			Build America
			America			Bond
			Bond			Opportunity
2012			(NBB	)		(NBD	)
Distributions from net ordinary income 2		$	37,152,627		$	10,894,339
Distributions from net long-term capital gains			—			—

 

2	Net ordinary income consists of net taxable income derived from dividends, interest, and net short-term capital gains, if any.

 

As of March 31, 2013, the Funds’ tax year end, the Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as shown in the following table. The losses not subject to expiration retain the character reflected and will be utilized first by the Funds, while the losses subject to expiration are considered short-term:

 

			Build			Build America
			America			Bond
			Bond			Opportunity
			(NBB	)		(NBD	)
Not subject to expiration:
Short-term losses:		$	—		$	318,228
Long-term losses:			16,275,924			9,844,820
Total		$	16,257,924		$	10,163,048

 

Nuveen Investments

41

 

 

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		Notes to
		Financial Statements (continued)

 

7. Management Fees and Other Transactions with Affiliates

Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their respective Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.

 

The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:

 

Average Daily Managed Assets*		Fund-Level Fee Rate
For the first $125 million			.4500	%
For the next $125 million			.4375
For the next $250 million			.4250
For the next $500 million			.4125
For the next $1 billion			.4000
For managed assets over $2 billion			.3875

 

The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:

Complex-Level Managed Asset Breakpoint Level*		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

 

*

For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds’ use of preferred stock and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen Funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen Funds or assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. As of March 31, 2013, the complex-level fee rate for these Funds was .1668%.

 

The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser is responsible for each Fund’s overall strategy and asset allocation decisions. The Adviser has entered into sub-advisory agreements with the Sub-Adviser, under which the Sub-Adviser manages the investment portfolios of the Funds. The Sub-Adviser is compensated for its services to the Funds from the management fees paid to the Adviser.

 

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.

 

8. Borrowing Arrangements

As part of their investment strategies the Funds have each entered into a committed secured 364-day line of credit (“Borrowings”) with its custodian bank as a means of financial leverage. Each Fund’s maximum commitment amount under these Borrowings is as follows:

 

			Build			Build America
			America			Bond
			Bond			Opportunity
			(NBB	)		(NBD	)
Maximum commitment amount		$	100,000,000		$	25,000,000

 

42

Nuveen Investments

 

 

---

 

 

As of March 31, 2013, each Fund’s outstanding balance on its Borrowings was as follows:

 

			Build			Build America
			America			Bond
			Bond			Opportunity
			(NBB	)		(NBD	)
Outstanding balance on Borrowings		$	89,000,000		$	11,500,000

 

During the fiscal year ended March 31, 2013, the average daily balance outstanding and average annual interest rate on each Fund’s Borrowings were as follows:

 

			Build			Build America
			America			Bond
			Bond			Opportunity
			(NBB	)		(NBD	)*
Average daily balance outstanding		$	69,027,397		$	11,500,000
Average annual interest rate			0.98	%		0.98 %

 

*	For the period September 10, 2012 (the first date on which the Fund began to draw on its Borrowings) through March 31, 2013.

 

In order to maintain these Borrowings, the Funds must meet certain collateral, asset coverage and other requirements. Borrowings outstanding are fully secured by securities held in each Fund’s portfolio of investments. Interest expense incurred on each Fund’s Borrowings is calculated at a rate per annum equal to the higher of (i) the overnight Federal Funds rate plus .80% or (ii) the overnight London Inter-bank Offered Rate (LIBOR) plus .80%.

 

In addition to the interest expense, the Funds each pay a .15% per annum facility fee, based on the maximum commitment amount of the Borrowings through the renewal date.

 

On May 23, 2012, Build America Bond (NBB) amended its Borrowings, at which time the maximum commitment amount decreased from $125 million to $100 million. The Fund also paid a one-time closing fee of .10% on the maximum commitment amount of the Borrowings, which was fully expensed through the Borrowings termination date of May 22, 2013. All other terms of the Borrowings remain unchanged. On May 22, 2013 (subsequent to the close of this reporting period), the Fund renewed its Borrowings, at which time the termination date was extended through May 21, 2014. The Fund’s per annum facility fee was reduced from .15% to .10%, based on the maximum commitment amount of the Borrowings through the renewal date. The Fund also paid a one-time closing fee of .05% on the maximum commitment amount of the Borrowings, which will be fully expensed through the termination date of May 21, 2014. All other terms of the Borrowings remained unchanged.

 

On February 19, 2013 and April 19, 2013 (subsequent to the close of this reporting period), Build America Bond Opportunity (NBD) renewed its Borrowings, at which time the termination date was extended through April 19, 2013 and May 22, 2013, respectively. All other terms of the Borrowings remained unchanged. On May 22, 2013 (subsequent to the close of this reporting period), the Fund amended its Borrowings, at which time the Borrowings were changed from unsecured to secured, the termination date was extended through May 21, 2014, and the Fund’s per annum facility fee was reduced from .15% to .10%, based on the maximum commitment amount of the Borrowings through the renewal date. The Fund also paid a one-time closing fee of .05% on the maximum commitment amount of the Borrowings, which will be fully expensed through the termination date of May 21, 2014. All other terms of the Borrowings remained unchanged.

 

Borrowings outstanding are recognized as “Bank Borrowings” on the Statement of Assets and Liabilities. Interest expense and fees incurred on each Fund’s borrowed amount and undrawn balance is recognized as a component of “Interest expense” on the Statement of Operations.

 

9. New Accounting Pronouncements

Financial Accounting Standards Board (“FASB”) Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities

In January 2013, Accounting Standards Update (“ASU”) 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, replaced ASU 2011-11, Disclosures about Offsetting Assets and Liabilities . ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact to the financial statements and footnote disclosures, if any.

Nuveen Investments

43

 

 

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Board Members & Officers (Unaudited)

 

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 Funds is currently set at ten. 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.

	Name,		Position(s) Held		Year First		Principal		Number
	Birthdate		with the Funds		Elected or		Occupation(s)		of Portfolios
	& Address				Appointed		including other		in Fund Complex
					and Term (1)		Directorships		Overseen by
							During Past 5 Years		Board Member
Independent Board Members:
■	ROBERT P. BREMNER 8/22/40 333 W. Wacker Drive Chicago, IL 60606		Chairman of the Board and Board Member		1996 Class III		Private Investor and Management Consultant; Treasurer and Director, Humanities Council of Washington, D.C.; Board Member, Independent Directors Council affiliated with the Investment Company Institute.		204
■	JACK B. EVANS 10/22/48 333 W. Wacker Drive Chicago, IL 60606		Board Member		1999 Class III		President, The Hall-Perrine Foundation, a private philanthropic corporation (since 1996); Chairman, United Fire Group, a publicly held company; formerly, President of the Board of Regents for the State of Iowa University System; Director, Source Media Group; Life Trustee of Coe College; 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; Bachelor of Arts degree from Coe College and an MBA from the University of Iowa.		204
■	WILLIAM C. HUNTER 3/6/48 333 W. Wacker Drive Chicago, IL 60606		Board Member		2004 Class I		Dean Emeritus (since June 30, 2012), formerly, Dean, Tippie College of Business, University of Iowa (2006-2012); Director (since 2004) of Xerox Corporation; Director (since 2005), and President (since July 2012) Beta Gamma Sigma, Inc., The International Honor Society; Director of Wellmark, Inc. (since 2009); 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); formerly, Director (1997-2007), Credit Research Center at Georgetown University.		204
■	DAVID J. KUNDERT 10/28/42 333 W. Wacker Drive Chicago, IL 60606		Board Member		2005 Class II		Formerly, Director, Northwestern Mutual Wealth Management Company; (2007-2013) 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; Regent Emeritus, Member of Investment Committee, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors and Chair of Investment Committee, Greater Milwaukee Foundation; member of the Board of Directors (Milwaukee), College Possible.		204
■	WILLIAM J. SCHNEIDER 9/24/44 333 W. Wacker Drive Chicago, IL 60606		Board Member		1996 Class III		Chairman of Miller-Valentine Partners Ltd., a real estate investment company; formerly, Senior Partner and Chief Operating Officer (retired 2004) of Miller-Valentine Group; Member of two Miller Valentine real estate LLC companies; member, University of Dayton Business School Advisory Council;member, Mid-America Health System Board; Board Member of Tech Town, Inc., a not-for-profit community development company; Board Member of WDPR Public Radio; formerly, member and chair, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank.		204

44

Nuveen Investments

 

 

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	Name,		Position(s) Held		Year First		Principal		Number
	Birthdate		with the Funds		Elected or		Occupation(s)		of Portfolios
	& Address				Appointed		Including other		in Fund Complex
					and Term (1)		Directorships		Overseen by
							During Past 5 Years		Board Member
Independent Board Members:
■	JUDITH M. STOCKDALE 12/29/47 333 W. Wacker Drive Chicago, IL 60606		Board Member		1997 Class I		Formerly, Executive Director (1994-2012), Gaylord and Dorothy Donnelley Foundation (since 1994); prior thereto, Executive Director, Great Lakes Protection Fund (1990-1994).		204
■	CAROLE E. STONE 6/28/47 333 W. Wacker Drive Chicago, IL 60606		Board Member		2007 Class I		Director, Chicago Board Options Exchange (since 2006); Director, C2 Options Exchange, Incorporated (since 2009); formerly, Commissioner, New York State Commission on Public Authority Reform (2005-2010); formerly, Chair, New York Racing Association Oversight Board (2005-2007).		204
■	VIRGINIA L. STRINGER 8/16/44 333 W. Wacker Drive Chicago, IL 60606		Board Member		2011 Class I		Board Member, Mutual Fund Directors Forum; former governance consultant and non-profit board member; former Owner and President, Strategic Management Resources, Inc. a management consulting firm; former Member, Governing Board, Investment Company Institute’s Independent Directors Council; previously, held several executive positions in general management, marketing and human resources at IBM and The Pillsbury Company; Independent Director, First American Fund Complex (1987-2010) and Chair (1997-2010).		204
■	TERENCE J. TOTH 9/29/59 333 W. Wacker Drive Chicago, IL 60606		Board Member		2008 Class II		Managing Partner, Promus Capital (since 2008); Director, Fulcrum IT Service LLC (since 2010), Quality Control Corporation (since 2012) and LogicMark LLC (since 2012); formerly, Director, Legal & General Investment Management America, Inc. (2008-2013); formerly, CEO and President, Northern Trust Global Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2000-2004); prior thereto, various positions with Northern Trust Company (since 1994); member: Chicago Fellowship Board (since 2005), Catalyst Schools of Chicago Board (since 2008) and Mather Foundation Board (since 2012), and a member of its investment committee; formerly, Member, Northern Trust Mutual Funds Board (2005-2007), Northern Trust Global Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004).		204
Interested Board Member:
■	JOHN P. AMBOIAN (2) 6/14/61 333 W. Wacker Drive Chicago, IL 60606		Board Member		2008 Class II		Chief Executive Officer and Chairman (since 2007) and Director (since 1999) of Nuveen Investments, Inc., formerly, President (1999-2007); Chief Executive Officer (since 2007) of Nuveen Investments Advisers, Inc.; Director (since 1998) formerly, Chief Executive Officer (2007-2010) of Nuveen Fund Advisors, LLC.		204

 

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Board Members & Officers (Unaudited) (continued)

 

	Name,		Position(s) Held		Year First		Principal		Number
	Birthdate		with the Funds		Elected or		Occupation(s)		of Portfolios
	and Address				Appointed (3)		During Past 5 Years		in Fund Complex
									Overseen
									by Officer
Officers of the Funds:
■	GIFFORD R. ZIMMERMAN 9/9/56 333 W. Wacker Drive Chicago, IL 60606		Chief Administrative Officer		1988		Managing Director (since 2002), and Assistant Secretary of Nuveen Securities, LLC; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Managing Director (since 2002), Assistant Secretary (since 1997) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel of Nuveen Asset Management, LLC (since 2011); Managing Director, Associate General Counsel and Assistant Secretary, of Symphony Asset Management LLC (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC (since 2002), Nuveen Investments Advisers Inc. (since 2002), Santa Barbara Asset Management, LLC (since 2006), and of Winslow Capital Management, LLC, (since 2010); Chief Administrative Officer and Chief Compliance Officer (since 2006) of Nuveen Commodities Asset Management, LLC; Chartered Financial Analyst.		204
■	WILLIAM ADAMS IV 6/9/55 333 W. Wacker Drive Chicago, IL 60606		Vice President		2007		Senior Executive Vice President, Global Structured Products (since 2010), formerly, Executive Vice President (1999-2010) of Nuveen Securities, LLC; Co-President of Nuveen Fund Advisors, LLC (since 2011); President (since 2011), formerly, Managing Director (2010-2011) of Nuveen Commodities Asset Management, LLC.		103
■	CEDRIC H. ANTOSIEWICZ 1/11/62 333 W. Wacker Drive Chicago, IL 60606		Vice President		2007		Managing Director of Nuveen Securities, LLC.		103
■	MARGO L. COOK 4/11/64 333 W. Wacker Drive Chicago, IL 60606		Vice President		2009		Executive Vice President (since 2008) of Nuveen Investments, Inc. and of Nuveen Fund Advisors, LLC (since 2011); Managing Director-Investment Services of Nuveen Commodities Asset Management, LLC (since August 2011), previously, Head of Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Management (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst.		204
■	LORNA C. FERGUSON 10/24/45 333 W. Wacker Drive Chicago, IL 60606		Vice President		1998		Managing Director (since 2005) of Nuveen Fund Advisors, LLC and Nuveen Securities, LLC (since 2004).		204
■	STEPHEN D. FOY 5/31/54 333 W. Wacker Drive Chicago, IL 60606		Vice President and Controller		1998		Senior Vice President (since 2010), formerly, Vice President (2005-2010) and Funds Controller of Nuveen Securities, LLC; Vice President of Nuveen Fund Advisors, LLC; Chief Financial Officer of Nuveen Commodities Asset Management, LLC (since 2010); Certified Public Accountant.		204

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	Name,		Position(s) Held		Year First		Principal		Number
	Birthdate		with the Funds		Elected or		Occupation(s)		of Portfolios
	and Address				Appointed (3)		During Past 5 Years		in Fund Complex
									Overseen
									by Officer
Officers of the Funds:
■	SCOTT S. GRACE 8/20/70 333 W. Wacker Drive Chicago, IL 60606		Vice President and Treasurer		2009		Managing Director, Corporate Finance & Development, Treasurer (since 2009) of Nuveen Securities, LLC; Managing Director and Treasurer (since 2009) of Nuveen Fund Advisors, LLC, Nuveen Investments Advisers, Inc., Nuveen Investments Holdings Inc. and (since 2011) Nuveen Asset Management, LLC; Vice President and Treasurer of NWQ Investment Management Company, LLC, Tradewinds Global Investors, LLC, Symphony Asset Management LLC and Winslow Capital Management, LLC.; Vice President of Santa Barbara Asset Management, LLC; formerly, Treasurer (2006-2009), Senior Vice President (2008-2009), previously, Vice President (2006-2008) of Janus Capital Group, Inc.; formerly, Senior Associate in Morgan Stanley’s Global Financial Services Group (2000-2003); Chartered Accountant Designation.		204
■	WALTER M. KELLY 2/24/70 333 W. Wacker Drive Chicago, IL 60606		Chief Compliance Officer and Vice President		2003		Senior Vice President (since 2008) and Assistant Secretary (since 2003) of Nuveen Fund Advisors, LLC; Senior Vice President (since 2008) of Nuveen Investment Holdings, Inc.; formerly, Senior Vice President (2008-2011) of Nuveen Securities, LLC.		204
■	TINA M. LAZAR 8/27/61 333 W. Wacker Drive Chicago, IL 60606		Vice President		2002		Senior Vice President (since 2010), formerly, Vice President (2005-2010) of Nuveen Fund Advisors, LLC.		204
■	KEVIN J. MCCARTHY 3/26/66 333 W. Wacker Drive Chicago, IL 60606		Vice President and Secretary		2007		Managing Director and Assistant Secretary (since 2008), Nuveen Securities, LLC; Managing Director (since 2008), Assistant Secretary (since 2007) and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director (since 2008), and Assistant Secretary, Nuveen Investment Holdings, Inc.; Vice President (since 2007) and Assistant Secretary of Nuveen Investments Advisers Inc., NWQ Investment Management Company, LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management, LLC, and of Winslow Capital Management, LLC. (since 2010); Vice President and Secretary (since 2010) of Nuveen Commodities Asset Management, LLC; prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007).		204

 

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Board Members & Officers (Unaudited) (continued)

 

	Name,		Position(s) Held		Year First		Principal		Number
	Birthdate		with the Funds		Elected or		Occupation(s)		of Portfolios
	and Address				Appointed (3)		During Past 5 Years		in Fund Complex
									Overseen
									by Officer
Officers of the Funds:
■	KATHLEEN L. PRUDHOMME 3/30/53 901 Marquette Avenue Minneapolis, MN 55402		Vice President and Assistant Secretary		2011		Managing Director, Assistant Secretary and Co-General Counsel (since 2011) of Nuveen Fund Advisors, LLC; Managing Director, Assistant Secretary and Associate General Counsel (since 2011) of Nuveen Asset Management, LLC; Managing Director and Assistant Secretary (since 2011) of Nuveen Securities, LLC; formerly, Deputy General Counsel, FAF Advisors, Inc. (2004-2010).		204

 

(1)	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. The year first 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)	Officers serve one year terms through August 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 Automatic Reinvestment Plan

 

Your Nuveen Closed-End Fund allows you to conveniently reinvest 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 compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on 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 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. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may

 

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Reinvest Automatically,

Easily and Conveniently (continued)

 

exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the 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.

 

Flexible

 

You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.

 

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 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

 

■	Auction Rate Bond: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have “failed,” with current holders receiving a formula-based interest rate until the next scheduled auction.
■	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.
■	Barclays Build America Bond Index: An unleveraged index that comprises all direct pay Build America Bonds that are SEC-regulated, taxable, dollar-denominated and have at least one year to final maturity, at least $250 million par amount outstanding, and are determined to be investment grade by Barclays. Index returns assume reinvestment of distributions, but do not reflect any applicable sales charges or management fees.
■	Duration: Duration is a measure of the expected period over which a bond’s principal and interest will be paid, and consequently is a measure of the sensitivity of a bond’s or bond Fund’s value to changes when market interest rates change. Generally, the longer a bond’s or Fund’s duration, the more the price of the bond or Fund will change as interest rates change.
■	Effective Leverage: Effective leverage is a Fund’s effective economic leverage, and includes both regulatory leverage (see leverage) and the leverage effects of certain derivative investments in a Fund’s portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage values, in addition to any regulatory leverage.
■	Forward Interest Rate Swap: A contractual agreement between two counterparties under which one party agrees to make periodic payments to the other for an agreed period of time based on a fixed rate, while the other party agrees to make periodic payments based on a floating rate of interest based on an underlying index. Alternatively, both series of cashflows to be exchanged could be calculated using floating rates of interest but floating rates that are based upon different underlying indices.
■	Gross Domestic Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports.

 

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Glossary of Terms

Used in this Report (continued)

 

■	Inverse Floating Rate Securities: Inverse floating rate securities, also known as inverse floaters or tender option bonds (TOBs), are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an “inverse floater”) to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond’s downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis.
■	Leverage: Using borrowed money to invest in securities or other assets, seeking to increase the return of an investment or portfolio.
■	Net Asset Value (NAV): The net market value of all securities held in a portfolio.
■	Net Asset Value (NAV) Per Share: The market value of one share of a mutual fund or closed-end fund. For a Fund, the NAV is calculated daily by taking the Fund’s total assets (securities, cash, and accrued earnings), subtracting the Fund’s liabilities, and dividing by the number of shares outstanding.
■	Pre-Refunding: Pre-Refunding, also known as advanced refundings or refinancings, is a procedure used by state and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher-yielding bonds. Because of this collateral, pre-refunding generally raises a bond’s credit rating and thus its value.
■	Regulatory Leverage: Regulatory Leverage consists of preferred shares issued by or borrowings of a Fund. Both of these are part of a Fund’s capital structure. Regulatory leverage is sometimes referred to as “‘40 Act Leverage” and is subject to asset coverage limits set in the Investment Company Act of 1940.
■	Total Investment Exposure: Total investment exposure is a Fund’s assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes a Fund’s use of preferred stock and borrowings and investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities.
■	Zero Coupon Bond: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically.

 

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Notes

 

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Notes

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Additional Fund Information

 

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

Virginia L. Stringer

Terence J. Toth

Fund Manager

Nuveen Fund Advisors, LLC

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

 

Quarterly Form N-Q Portfolio of Investments Information

 

Each Fund is required to file its complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q. You may obtain this information directly from the SEC. 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 toll-free at (800) SEC -0330 for room hours and operation.

 

Nuveen Funds’ Proxy Voting Information

 

You may obtain (i) information regarding how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, and (ii) a description of the policies and procedures that each Fund 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 information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.

CEO Certification Disclosure

 

Each Fund’s Chief Executive Officer (CEO) 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 SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.

 

Distribution Information

 

The following federal income tax information is provided with respect to the Funds’ distributions paid during the taxable period ended March 31, 2013. Nuveen Build America Bond Fund (NBB) and Nuveen Build America Bond Opportunity Fund (NBD) hereby designate 100% and 100%, respectively, (or the maximum amount of eligible) of ordinary income distributions as Interest-Related Dividends as defined in Internal Revenue Code Section 871(k) for the taxable period ended March 31, 2013.

 

Share Information

 

Each Fund intends to repurchase shares of its own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds did not repurchase any of their common shares.

 

Any future repurchases will be reported to shareholders in the next annual or semi-annual report.

 

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Nuveen Investments:

Serving Investors for Generations

 

Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.

 

Focused on meeting investor needs.

Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates—Nuveen Asset Management, Symphony Asset Management, NWQ Investment Management Company, Santa Barbara Asset Management, Tradewinds Global Investors, Winslow Capital Management and Gresham Investment Management. In total, Nuveen Investments managed $224 billion as of March 31, 2013.

 

Find out how we can help you.

To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain 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

 

Distributed by

Nuveen Securities, LLC

333 West Wacker Drive

Chicago, IL 60606

www.nuveen.com

EAN-C-0313D

 

 

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