Mutual Funds
2Q 2017 AS OF 6/30/17
Reasons to Consider Dividend Growth Investing
An uncertain market environment is the new normal — the potential for volatility and rising rates makes investment
decisions challenging. An allocation to companies that have sustainable and growing dividends may help:
1 Buffer Against Market Volatility
ividend Growers vs. Non-Payers 10-Year Performance During Months when the
D
CBOE Volatility Index (VIX) Increased
VIX Monthly Increase
>40%
20-40%
10-20%
<10%
Average (Across All Months When VIX Increased)
Average Out/Under Performance
of Dividend Growers During Month
1.78%
0.59%
1.16%
0.29%
0.86%
Companies with persistent dividend growth
have provided excess returns during periods
of market volatility
2 Address the Risks of Rising Rates
Performance After the Federal Reserve Increased Rates (All rate hikes since 1972)
Index Returns
140
Dividend Growers
Payers with No Change
in Dividends
Non-Dividend Payers
120
Dividend growers have
outperformed in past
periods of rising rates
Dividend Cutters
100
80
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
Elapsed Months
3 Provide Exposure to Attractively Valued Opportunities
Dividend Growers Premium (%)
(February 28, 1983 – June 30, 2017)
100%
Dividend Growth More Expensive
80%
60%
40%
Average=22%
20%
0%
-20%
-40%
Dividend Yield More Expensive
1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Charts do not represent the past performance of any Nuveen Fund.
For Fund performance information, visit nuveen.com.
* Companies with high dividend yields have limited dividend growth and yields substantially above the
current market.
Chart 1 Data source: FactSet and Ned Davis Research, Inc., 7/1/07-6/30/17. Further distribution prohibited
without prior permission. Copyright 2017 © Ned Davis Research, Inc. All rights reserved. Past performance
is no guarantee of future results. Chart illustrates the average historical performance of S&P 500 stocks,
grouped as shown according to their dividend policies. Periods greater than one year have been annualized.
For a description of how each stock is grouped by dividend policy, see Endnotes description on next page.
Historically dividend growers have
traded at a 22% premium
Dividend growers are currently trading at
a 16% discount to companies with high
dividend yields*
Chart 2 Data source: Ned Davis Research. Further distribution prohibited without prior permission.
Copyright 2017 © Ned Davis Research, Inc. All rights reserved. Past performance is no guarantee of future
results. Data shown is based on the average performance after all rate hikes since 1972 which occurred
on the following dates: 1/15/73, 8/31/80, 4/9/84, 9/4/87, 2/4/94, 3/25/97, 6/30/99, 6/30/04. The Dividend
Growers and Initiators category is a subset of U.S. Stocks (S&P 500 Index) as defined by Ned Davis Research,
Inc. For a description of how each stock is grouped by dividend policy, see Endnotes description on next page.
Chart 3 Data source: Ned Davis Research, 2/28/83-6/30/17. Further distribution prohibited without
prior permission. Copyright 2017 © Ned Davis Research, Inc. All rights reserved. Past performance is no
guarantee of future results. Based on top quintile of median forward P/E. Dividend Growth Premium =
(Dividend Growth/Dividend Yield) − 1.
For more information, please consult with your financial advisor and visit nuveen.com.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
as of 6/30/17
Ticker
NUVEEN SANTA BARBARA
DIVIDEND GROWTH FUND
Without Sales Charge
Inception
Date
1
Year
With Sales Charge
3
5
10
Since
1
Years Years Years Inception Year
A|NSBAX
3/28/06 13.34 7.48 12.03 7.37
8.67
I |NSBRX
3/28/06 13.65 7.76 12.32 7.64
8.94
S&P 500® Index
17.90 9.61 14.63 7.18
8.01
Morningstar Large Blend Classification Average
17.17 7.60 13.35 6.21
6.59
Returns quoted represent past performance which is no guarantee of future results.
Investment returns and principal value will fluctuate so that when shares are redeemed,
they may be worth more or less than their original cost. Current performance may be higher
or lower than the performance shown. Returns without sales charges would be lower if the
sales charge were included. Returns assume reinvestment of dividends and capital gains. For
performance current to the most recent month-end visit nuveen.com or call 800.257.8787.
Class A shares have a 5.75% maximum sales charge. Class I shares have no sales charge and
may be purchased by specified classes of investors.
1 Expense ratios are based on the Fund’s most recent fiscal year end.
2 The SEC 30-Day Yield is computed under an SEC standardized formula and is based on the maximum offer
price per share.
For the period ended June 30, 2017, Morningstar rated this Fund’s I and A shares,
for the overall, three-, five-, and 10-year periods (if applicable). The Class I shares
received 4, 3, 2, and 5 stars and the Class A shares received 4, 3, 2, and 5 stars
among 1223, 1223, 1080, and 802 Large Blend Funds, respectively. Class A share star
ratings do not include the effect of sales charges which would lower performance.
These ratings are for Class I and A shares only; other classes may have different
performance characteristics. Investment performance reflects applicable fee
waivers. Without such waivers, total returns would be reduced and ratings
could be lower.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual
funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate
accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are
considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted
Return measure that accounts for variation in a managed product’s monthly excess performance, placing more
emphasis on downward variations and rewarding consistent performance. The top 10% of products in each
product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5%
receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is
derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if
applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total
returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year
rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year
overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year
period actually has the greatest impact because it is included in all three rating periods. ©2017 Morningstar,
Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content
providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely.
Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of
this information.
A WORD ON RISK
Mutual fund investing involves risk; principal loss is possible. Dividend-paying stocks, such
as those held by the fund, are subject to market risk, concentration or sector risk, preferred
security risk, and common stock risk. Smaller company stocks are subject to greater
volatility. Foreign investments involve additional risks including currency fluctuations,
political and economic instability, and lack of liquidity.
Among 1223
Large Blend
Funds
3
5
10
Since
Years Years Years Inception
6.81 5.38 10.71 6.73
8.10
0.99
1.37
★★★★
0.74
1.70
★★★★
This material is not intended to be a recommendation or investment advice, does not constitute a solicitation
to buy or sell securities, and is not provided in a fiduciary capacity. The information provided does not take
into account the specific objectives or circumstances of any particular investor, or suggest any specific course
of action. Investment decisions should be made based on an investor’s objectives and circumstances and in
consultation with his or her advisors.
GLOSSARY
The S&P 500® Index measures the performance of large capitalization U.S. stocks. Morningstar Large
Blend Classification Average represents the average annualized total return for all reporting funds in the
Classification. The CBOE (Chicago Board of Exchange) Volatility Index® (VIX®) is a key measure of market
expectations of near-term volatility conveyed by S&P 500 stock index option prices. Since its introduction in
1993, VIX has been considered by many to be the world’s premier barometer of investor sentiment and market
volatility (www.cboe.com). All indices are unmanaged and unavailable for direct investment. Dividend yield,
for a company’s stocks, is the ratio of the dividends paid out by the company each year per share divided by
the share’s current market price. Price/earnings ratio (P/E ratio) is the ratio of a stock’s current price to its
per-share earnings over the past year. For a fund, the ratio is the weighted average P/E of the stocks in the
fund’s portfolio. A forward P/E uses estimated earnings for the next four quarters in the denominator. P/E is
often an indicator of market expectations about corporate prospects; usually, the higher the P/E, the greater the
expectations for a company’s future growth in earnings.
ENDNOTES
Charts 1 and 2 Each stock’s dividend policy is determined on a rolling 12-month basis. For example, a stock
is classified as dividend-paying if it paid a cash dividend at any time during the previous 12 months. Dividend
growers and initiators include stocks that raised their existing dividend or initiated a new dividend during the
preceding 12 months. Dividend cutters or eliminators include stocks that lowered their existing dividend or
stopped paying regular dividends during the preceding 12 months. A stock is reclassified only if its dividend
policies change. The performance of each group is based on an equal-weighted, geometric average, computed
monthly. The returns do not reflect the deduction of any fees, expenses or taxes that would reduce performance
in an actual client portfolio. Returns for stocks that paid dividends assume reinvestment of all income. The
performance shown is for illustrative purposes only and does not depict or predict the future performance of
these groups or any Santa Barbara strategy. Investors cannot invest in an index. Performance returns may have
been negative during this time period.
Before investing, carefully consider fund investment objectives, risks, charges
and expenses. For this and other information that should be read carefully,
please request a prospectus or summary prospectus from your financial advisor
or Nuveen at 800.257.8787 or visit nuveen.com.
The Funds feature portfolio management by Santa Barbara Asset Management, LLC, an affiliate of Nuveen
Securities, LLC.
Securities offered through Nuveen Securities, LLC, Member FINRA and SIPC.
Nuveen | 333 West Wacker Drive | Chicago, IL 60606 | 800.752.8700 | nuveen.com
MSI-BDG3-0617D 224344 -INV-Q-10/17
Average Annualized Total Returns (%)
Overall
Expense SEC 30-Day Morningstar
Ratios (%)1 Yield (%)2
Rating TM