UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-07943

Nuveen Multistate Trust III

(Exact name of registrant as specified in charter)

Nuveen Investments

333 West Wacker Drive, Chicago, IL 60606

(Address of principal executive offices) (Zip code)

Mark J. Czarniecki

Vice President and Secretary

333 West Wacker Drive,

Chicago, IL 60606

(Name and address of agent for service)

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

Date of fiscal year end: May 31

Date of reporting period: May 31, 2022

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policy making roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss.3507.


ITEM 1.

REPORTS TO STOCKHOLDERS.

 


Bond
Funds
Mutual
Funds
Nuveen
Municipal
May
31,
2022
Annual
Report
Fund
Name
Class
A
Class
C
Class
I
Nuveen
Georgia
Municipal
Bond
Fund
FGATX
FGCCX
FGARX
Nuveen
Louisiana
Municipal
Bond
Fund
FTLAX
FAFLX
FTLRX
Nuveen
North
Carolina
Municipal
Bond
Fund
FLNCX
FDCCX
FCNRX
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advisor
or
brokerage
account.
or
www.nuveen.com/client-access
If
you
receive
your
Nuveen
Fund
distributions
and
statements
directly
from
Nuveen.
Must
be
preceded
by
or
accompanied
by
a
prospectus.
NOT
FDIC
INSURED
MAY
LOSE
VALUE
NO
BANK
GUARANTEE
Table
of
Contents
3
Chair’s
Letter
to
Shareholders
4
Portfolio
Managers’
Comments
5
Risk
Considerations
and
Dividend
Information
9
Fund
Performance,
Expense
Ratios,
Effective
Leverage
and
Holdings
Summaries
10
Yields
20
Expense
Examples
21
Report
of
Independent
Registered
Public
Accounting
Firm
23
Portfolios
of
Investments
24
Statement
of
Assets
and
Liabilities
49
Statement
of
Operations
50
Statement
of
Changes
in
Net
Assets
51
Financial
Highlights
53
Notes
to
Financial
Statements
59
Important
Tax
Information
71
Additional
Fund
Information
72
Glossary
of
Terms
Used
in
this
Report
73
Annual
Investment
Management
Agreement
Approval
Process
75
Liquidity
Risk
Management
Program
82
Trustees
and
Officers
83
4
Chair’s
Letter
to
Shareholders
Dear
Shareholders,
The
first
half
of
2022
has
been
challenging
for
financial
markets.
While
global
economic
activity
began
to
slow
from
post-pandemic
peaks
as
pent-up
demand
waned
and
crisis-era
monetary
and
fiscal
support
programs
were
phased
out,
persistently
high
inflation
and
central
banks’
response
have
contributed
to
heightened
uncertainty
about
financial
and
economic
conditions.  
Inflation
has
surged
partially
due
to
supply
chain
bottlenecks
and
exacerbated
by
Russia’s
war
in
Ukraine
and
recent
lockdowns
across
China
to
contain
a
large-scale
COVID-19
outbreak.
This
has
necessitated
more
forceful
responses
from
the
U.S.
Federal
Reserve
(Fed)
and
other
central
banks,
who
now
face
an
even
more
difficult
task
of
slowing
inflation
without
pulling
their
respective
economies
into
recession.
As
anticipated,
the
Fed
began
the
rate
hiking
cycle
in
March
2022,
raising
its
short-term
rate
by
0.25%
from
near
zero
for
the
first
time
since
the
pandemic
was
declared
two
years
ago.
Larger
increases
of
0.50%
in
May
and
0.75%
in
June
2022
followed,
bringing
the
target
fed
funds
rate
to
a
range
of
1.50%
to
1.75%.
Additional
rate
hikes
of
these
larger
magnitudes
are
expected
in
the
remainder
of
this
year,
although
Fed
officials
will
closely
monitor
inflation
data
along
with
other
economic
measures
and
modify
their
rate
setting
policy
based
upon
these
factors.
With
inflation
lingering
at
a
40-year
high
and
consumer
sentiment
indicators
slumping,
markets
are
pricing
increased
recession
risks.
In
the
meantime,
while
markets
will
likely
continue
fluctuating
with
the
daily
headlines,
we
encourage
investors
to
keep
a
long-term
perspective.
To
learn
more
about
how
well
your
portfolio
is
aligned
to
your
time
horizon,
risk
tolerance
and
investment
goals,
consider
reviewing
it
with
your
financial
professional.  
On
behalf
of
the
other
members
of
the
Nuveen
Fund
Board,
I
look
forward
to
continuing
to
earn
your
trust
in
the
months
and
years
ahead.
Terence
J.
Toth
Chairman
of
the
Board
July 22,
2022
Portfolio
Managers’
Comments
5
Nuveen
Georgia
Municipal
Bond
Fund
Nuveen
Louisiana
Municipal
Bond
Fund
Nuveen
North
Carolina
Municipal
Bond
Fund
These
Funds
feature
portfolio
management
by
Nuveen
Asset
Management,
LLC
(NAM),
an
affiliate
of
Nuveen
Fund
Advisors,
LLC,
the
Funds’
investment
adviser.
Portfolio
managers
include
Daniel
J.
Close,
CFA,
for
the
Nuveen
Georgia
Municipal
Bond
Fund
and
Nuveen
North
Carolina
Municipal
Bond
Fund
and
Steven
M.
Hlavin
for
the
Nuveen
Louisiana
Municipal
Bond
Fund.
Here
the
Funds’
portfolio
managers
review
U.S.
economic
and
municipal
market
conditions,
key
investment
strategies
and
the
performance
of
the
Funds
for
the
twelve-month
reporting
period
ended
May
31,
2022.
For
more
information
on
the
Funds’
investment
objectives
and
policies,
please
refer
to
the
prospectus.
What
factors
affected
the
U.S.
economy
and
the
municipal
bond
market
during
the
twelve-month
annual
reporting
period
ended
May
31,
2022?
After
making
a
full
recovery
from
the
pandemic
in
2021,
the
U.S.
economy
unexpectedly
weakened
at
the
start
of
2022.
Overall,
2021
gross
domestic
product
(GDP)
grew
by
5.7%
as
the
economy
reopened
with
the
help
of
$5.3
trillion
in
crisis-related
aid
from
the
federal
government,
low
borrowing
rates
for
businesses
and
individuals,
an
increase
in
COVID-19
vaccinations
and
improved
treatments
for
COVID-19.
In
the
first
quarter
of
2022,
strong
domestic
consumer
demand
was
offset
by
two
factors:
China’s
lockdown
to
contain
a
domestic
COVID-19
outbreak,
and
lingering
supply
chain
disruptions
that
were
exacerbated
by
the
Russia-
Ukraine
war.
This
reduced
U.S.
GDP
by
1.5%
on
an
annualized
basis,
according
to
the
second
estimate
from
the
U.S.
Bureau
of
Economic
Analysis.
The
return
of
consumer
demand
in
early
2022
put
upward
pressure
on
inflation.
However,
as
supply
chains
remained
under
stress
and
labor
shortages
continued,
inflation
appeared
to
be
more
durable
than
initially
expected.
The
U.S.
Federal
Reserve
(Fed)
responded
by
reducing
its
pandemic-era
support
programs
and
beginning
a
more
aggressive
interest
rate
hiking
cycle.
Starting
with
a
0.25%
hike
in
March
2022,
the
Fed
followed
with
larger
target
rate
increases
of
0.50%
in
May
2022
and
(after
the
close
of
this
reporting
period)
0.75%
in
June
2022.
Interest
rate
and
stock
price
volatility
increased
as
markets
considered
whether
the
Fed
could
cool
inflation
without
pulling
the
economy
into
a
recession.
While
some
pandemic-related
risks
appeared
to
be
receding,
Russia’s
invasion
of
Ukraine
in
late
February
2022
caused
significant
economic
consequences.
Anticipated
supply
disruptions
in
energy,
metals
and
grains
caused
inflationary
pressures
to
rise.
Downside
risks
to
global
economic
growth
increased,
and
economic
sanctions
from
Western
countries
sought
to
block
Russia’s
access
to
the
global
financial
system.
A
more
uncertain
outlook
for
inflation
and
economic
growth
also
made
the
path
toward
monetary
policy
normalization
more
uncertain
for
the
Fed
and
other
central
banks,
contributing
to
elevated
market
volatility
toward
the
end
of
the
reporting
period.
The
broad
municipal
bond
market
declined
over
the
twelve-month
reporting
period,
driven
primarily
by
higher
interest
rates
and
economic
uncertainty
in
the
second
half
of
the
reporting
period.
Municipal
yields
rose
across
the
maturity
spectrum,
with
a
greater
increase
at
the
shorter
end
of
the
curve
as
markets
priced
in
a
more
aggressive
pace
of
monetary
tightening.
The
yield
curve
flattened
overall
and
shorter
maturities
outperformed
longer
maturities.
Demand
for
municipal
debt
remained
remarkably
strong
throughout
2021,
but
at
the
beginning
of
2022,
the
municipal
bond
market
experienced
outflows.
In
response
to
the
rising
interest
rate
environment
and
heightened
market
volatility,
dealers
reduced
their
inventories
and
investors
increased
redemptions
from
traditional
municipal
bond
mutual
funds.
For
much
of
the
reporting
period,
credit
spreads
were
generally
stable
given
relatively
strong
municipal
fundamentals,
but
widening
began
in
the
later
months
of
the
period
as
the
market
sold
off.
How
were
the
economic
and
market
environments
in
Georgia,
Louisiana
and
North
Carolina
during
the
twelve-month
reporting
period
ended
May
31,
2022?
Georgia’s
economic
growth
has
been
robust
since
2014,
outpacing
that
of
the
nation,
but
has
slowed
somewhat
since
the
COVID-19
crisis.
As
of
May
2022,
the
state’s
unemployment
rate
was
3.0%,
compared
to
the
national
unemployment
rate
of
3.6%.
Overall,
general
fund
revenue
increased
at
19.2%
in
fiscal
year
2021
(July
1,
2020
to
June
30,
2021),
which
was
higher
than
the
3.7%
revenue
increase
in
fiscal
year
2020
(July
1,
2019
to
June
30,
2020).
Notably,
the
state
received
$4.1
billion
in
state
and
local
funding
under
the
CARES
Act
and
$8.4
billion
in
state
and
local
funding
under
the
American
Rescue
Plan
Act
of
2021.
As
of
May
2022,
Georgia’s
general
obligation
debt
remained
rated
Aaa/AAA/AAA
with
stable
outlooks
from
Moody’s,
S&P
and
Fitch,
respectively.
Georgia
municipal
bond
new
issuance
totaled
$10.9
billion
for
the
twelve-month
period
ended
May
31,
2022,
a
37.2%
increase
from
the
same
period
a
year
earlier.
Portfolio
Managers’
Comments
(continued)
6
Soaring
oil
prices
and
a
quicker-than-expected
reopening
following
the
COVID-19
crisis
have
buoyed
Louisiana’s
finances
and
improved
the
state’s
economic
profile
since
2020.
As
of
May
2022,
Louisiana’s
unemployment
rate
was
4.0%,
compared
to
the
national
rate
of
3.6%.
Per
capita
income
has
been
steadily
below
the
national
average,
and
the
state
remains
vulnerable
to
costly
natural
hazards
including
extreme
weather
events,
sea
level
rise
and
coastal
erosion.
Conservative
budgeting
practices
have
led
to
modest
surpluses
since
fiscal
year
2018
and
the
state
has
been
able
to
add
to
its
rainy
day
fund.
The
state
generated
a
sizable
$699
million
surplus
in
fiscal
year
2021
(July
1,
2020
to
June
30,
2021).
Notably,
the
state
received
$1.8
billion
in
state
and
local
funding
under
the
CARES
Act
and
$4.8
billion
in
state
and
local
funding
under
the
American
Rescue
Plan
Act
of
2021.
Louisiana’s
general
obligation
debt
is
rated
AA-/stable
by
S&P
as
of
May
2022
and
Moody’s
upgraded
its
rating
to
Aa2/stable
in
May
2022.
Louisiana
municipal
bond
new
issuance
totaled
$7.5
billion
for
the
twelve-month
period
ended
May
31,
2022,
a
13.3%
increase
from
the
same
period
a
year
earlier.
North
Carolina’s
economic
growth
in
2021
showed
a
powerful
turnaround
from
the
pandemic-related
contraction
experienced
in
2020.
As
of
May
2022,
the
state’s
unemployment
rate
of
3.4%
was
below
the
national
average
of
3.6%.
The
state
was
able
to
post
a
general
fund
surplus
as
a
result
of
strong
financial
performance
in
fiscal
year
2021
(July
1,
2020
to
June
30,
2021),
driven
by
higher
income
levels,
consumer
spending,
and
rising
stock
and
housing
prices.
Notably,
the
state
received
$4.1
billion
in
state
and
local
funding
under
the
CARES
Act
and
$8.8
billion
in
state
and
local
funding
under
the
American
Rescue
Plan
Act
of
2021.
As
of
May
2022,
Moody’s,
S&P
and
Fitch
maintain
ratings
on
North
Carolina
general
obligation
debt
at
Aaa/AAA/AAA
with
stable
outlooks.
North
Carolina
municipal
bond
new
issuance
totaled
$5.9
billion
for
the
twelve-month
period
ended
May
31,
2022,
a
28.7%
decrease
from
the
same
period
a
year
earlier.
Nuveen
Georgia
Municipal
Bond
Fund
What
key
strategies
were
used
to
manage
the
Fund
during
the
twelve-month
reporting
period
ended
May
31,
2022?
The
Fund
invests
primarily
in
investment
grade
municipal
bonds
and
is
designed
to
provide
as
high
a
level
of
current
interest
income
exempt
from
regular
federal,
Georgia
state,
and
in
some
cases,
local
income
taxes
as
is
consistent
with
preservation
of
capital.
During
the
first
half
of
the
reporting
period,
the
Fund
received
new
investment
inflows.
With
these
funds,
as
well
as
proceeds
from
bond
calls
and
maturities,
the
Fund
purchased
higher
rated,
longer-duration
bonds
across
various
sectors.
These
purchases
took
place
in
both
the
primary
and
secondary
municipal
bond
marketplaces.
When
market
conditions
began
to
weaken
in
late
2021
and
early
2022,
the
Fund
experienced
shareholder
outflows
and
trading
activity
shifted
more
toward
selling
bonds
and
engaging
in
tax-
loss
swaps.
Tax-loss
swapping
is
a
strategy
to
support
the
Fund’s
income
earnings
and
capture
tax
efficiencies
by
selling
depreciated
bonds
with
lower
embedded
yields
to
buy
similar
bonds
with
higher
embedded
yields.
How
did
the
Fund
perform
during
the
twelve-month
reporting
period
ended
May
31,
2022?
The
Class
A
Shares
of
the
Nuveen
Georgia
Municipal
Bond
Fund
underperformed
the
S&P
Municipal
Bond
Georgia
Index
for
the
twelve-month
reporting
period
ended
May
31,
2022.
For
the
purposes
of
this
Performance
Commentary,
references
to
relative
performance
are
in
comparison
to
the
S&P
Municipal
Bond
Georgia
Index.
The
primary
detractor
to
relative
performance
was
the
Fund’s
underweight
to
shorter-duration
securities,
particularly
those
with
durations
ranging
from
zero
to
four
years,
which
was
the
best-performing
market
segment.
The
Fund
was
also
overweight
to
bonds
with
durations
of
12
years
and
longer,
which
lagged
the
index.
These
longer-duration
bonds
detracted
because
they
generally
are
more
sensitive
to
rising
interest
rates.
The
Fund’s
primary
individual
detractors
during
the
reporting
period
included
longer-duration,
lower-coupon
bonds
because
this
combination
performed
particularly
poorly
as
interest
rates
rose.
The
Fund’s
underweight
to
AAA
rated
bonds
also
detracted,
given
the
relative
outperformance
of
this
rating
category.
Partially
offsetting
the
Fund’s
relative
detractors
was
favorable
sector
positioning.
Specifically,
the
Fund
was
underweight
to
industrial
development
bonds
which
underperformed
the
Georgia
index
during
the
reporting
period.
The
Fund’s
A
rated
securities
also
aided
performance,
given
that
this
rating
category
generally
lagged,
as
investors
tended
to
become
more
risk-averse,
favoring
higher-quality
bonds.
As
a
result,
the
Fund
benefitted
from
having
a
lesser
allocation.
7
Nuveen
Louisiana
Municipal
Bond
Fund
What
key
strategies
were
used
to
manage
the
Fund
during
the
twelve-month
reporting
period
ended
May
31,
2022?
The
Fund
invests
primarily
in
investment
grade
municipal
bonds
and
is
designed
to
provide
as
high
a
level
of
current
interest
income
exempt
from
regular
federal,
Louisiana
state,
and
in
some
cases,
local
income
taxes
as
is
consistent
with
preservation
of
capital.
During
the
reporting
period,
trading
activity
was
largely
driven
by
the
reinvestment
of
proceeds
from
bonds
that
were
called
or
had
matured.
The
municipal
investment
team
remained
highly
selective
with
purchases,
favoring
newly
issued
health
care,
higher
education,
and
industrial
development
bonds
that
offered
attractive
levels
of
income
relative
to
the
overall
market.
The
investment
team
also
made
purchases
in
the
intermediate-term
range
to
help
keep
the
Fund’s
duration
position
stable.
How
did
the
Fund
perform
during
the
twelve-month
reporting
period
ended
May
31,
2022?
The
Class
A
Shares
of
the
Nuveen
Louisiana
Municipal
Bond
Fund
underperformed
the
S&P
Municipal
Bond
Louisiana
Index
for
the
twelve-month
reporting
period
ended
May
31,
2022.
For
the
purposes
of
this
Performance
Commentary,
references
to
relative
performance
are
in
comparison
to
the
S&P
Municipal
Bond
Louisiana
Index.
The
Fund’s
underperformance
was
primarily
attributable
to
its
credit
quality
positioning
and
sector
allocation.
From
a
credit
quality
perspective,
an
overweight
to
BBB
rated
bonds
detracted
from
relative
performance,
given
that
this
credit
quality
tier
underperformed.
The
Fund’s
overweight
to
the
hospital
and
higher
education
sectors,
along
with
tobacco
bonds,
detracted
from
relative
performance,
as
all
three
categories
were
underperformers
during
the
reporting
period,
despite
their
contribution
to
income.
Leading
individual
detractors
included
overweight
positions
in
Buckeye
Tobacco
(Ohio)
bonds,
as
well
as
newly
issued
securities
from
Loyola
University
New
Orleans
and
McNeese
State
University,
both
of
which
were
purchased
during
the
reporting
period.
While
experiencing
some
near-term
volatility,
the
Fund
continues
to
hold
these
three
positions
given
their
long
term-
attractiveness.
Partially
offsetting
the
relative
detractors
were
the
Fund’s
overweight
positions
in
below
investment
grade
bonds,
including
industrial
development
and
charter
school
bonds.
Individually,
the
largest
relative
contributor
to
the
Fund’s
performance
was
its
position
in
the
stock
of
Energy
Harbor.
This
equity
position
came
into
the
portfolio
in
2020
as
part
of
the
bankruptcy
restructuring
of
FirstEnergy
Solutions,
the
predecessor
of
Energy
Harbor
and
a
former
Fund
holding.
Energy
Harbor’s
shares
rose
meaningfully
during
the
reporting
period
given
the
strong
demand
for
energy
generation
as
the
economy
reopened.
The
Fund
continues
to
maintain
an
equity
position
in
Energy
Harbor.
Other
industrial
development
bond
holdings,
including
Valero
Energy
and
Iowa
Fertilizer,
also
contributed
to
performance.
The
Iowa
Fertilizer
bonds
were
called
in
May
2022
and
the
Valero
Energy
bonds
were
sold
in
May
2022.
Nuveen
North
Carolina
Municipal
Bond
Fund
What
key
strategies
were
used
to
manage
the
Fund
during
the
twelve-month
reporting
period
ended
May
31,
2022?
The
Fund
invests
primarily
in
investment
grade
municipal
bonds
and
is
designed
to
provide
as
high
a
level
of
current
interest
income
exempt
from
regular
federal,
North
Carolina
state,
and
in
some
cases,
local
income
taxes
as
is
consistent
with
preservation
of
capital.
During
the
first
half
of
the
reporting
period,
the
Fund
received
new
investment
inflows.
With
these
funds,
as
well
as
proceeds
from
bond
calls
and
maturities,
the
Fund
purchased
higher
rated,
longer-duration
bonds
across
various
sectors.
These
purchases
took
place
in
both
the
primary
and
secondary
municipal
bond
marketplaces.
When
market
conditions
began
to
weaken
in
late
2021
and
early
2022,
the
Fund
experienced
shareholder
outflows,
and
the
Fund’s
trading
activity
shifted
more
toward
selling
bonds
and
engaging
in
tax-loss
swaps.
This
strategy
involves
selling
depreciated
bonds
with
lower
embedded
yields
to
reinvest
in
similarly
structured,
higher
income-producing
bonds
to
support
the
Fund’s
earnings
and
provide
tax
efficiencies.
How
did
the
Fund
perform
during
the
twelve-month
reporting
period
ended
May
31,
2022?
The
Class
A
Shares
of
the
Nuveen
North
Carolina
Municipal
Bond
Fund
underperformed
the
S&P
Municipal
Bond
North
Carolina
Index
for
the
twelve-month
reporting
period
ended
May
31,
2022.
For
the
purposes
of
this
Performance
Commentary,
references
to
relative
performance
are
in
comparison
to
the
S&P
Municipal
Bond
North
Carolina
Index.
Portfolio
Managers’
Comments
(continued)
8
The
Fund’s
underperformance
was
mainly
attributable
to
disadvantageous
duration
positioning.
The
Fund
had
an
overall
duration
longer
than
that
of
the
index,
with
an
underweight
to
shorter-duration
bonds,
specifically
those
with
durations
of
zero
to
four
years,
and
an
overweight
to
bonds
with
durations
of
12
years
and
longer.
The
Fund’s
longer
duration
meant
it
was
more
sensitive
to
the
rise
in
interest
rates.
The
Fund’s
leading
individual
detractors
included
zero-coupon
bonds
with
long
maturities,
as
these
were
some
of
the
longest-duration
municipal
bonds
available
in
the
marketplace.
This
was
most
evident
in
the
Fund’s
overweight
to
the
Tollroad
sector,
which
detracted
from
relative
performance
and
consisted
predominately
of
longer-duration,
zero-coupon
bonds
issued
by
the
North
Carolina
Turnpike
Authority.
Partially
offsetting
the
relative
detractors
was
the
Fund’s
favorable
credit
quality
positioning.
Specifically,
the
Fund’s
allocation
to
AAA
rated
and
non-rated
bonds
contributed
to
its
relative
performance.
In
terms
of
sector
allocation,
the
Fund’s
overweight
to
state
appropriation
bonds
was
beneficial
given
this
category’s
relative
outperformance.
This
material
is
not
intended
to
be
a
recommendation
or
investment
advice,
does
not
constitute
a
solicitation
to
buy,
sell
or
hold
a
security
or
an
investment
strategy,
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.
Certain
statements
in
this
report
are
forward-looking
statements.
Discussions
of
specific
investments
are
for
illustration
only
and
are
not
intended
as
recommendations
of
individual
investments.
The
forward-looking
statements
and
other
views
expressed
herein
are
those
of
the
portfolio
managers
as
of
the
date
of
this
report.
Actual
future
results
or
occurrences
may
differ
significantly
from
those
anticipated
in
any
forward-looking
statements
and
the
views
expressed
herein
are
subject
to
change
at
any
time,
due
to
numerous
market
and
other
factors.
The
Funds
disclaim
any
obligation
to
update
publicly
or
revise
any
forward-looking
statements
or
views
expressed
herein.
For
financial
reporting
purposes,
the
ratings
disclosed
are
the
highest
rating
given
by
one
of
the
following
national
rating
agencies:
Standard
&
Poor’s
(S&P),
Moody’s
Investors
Service,
Inc.
(Moody’s)
or
Fitch,
Inc
(Fitch).
This
treatment
of
split-rated
securities
may
differ
from
that
used
for
other
purposes,
such
as
for
Fund
investment
policies.
Credit
ratings
are
subject
to
change.
AAA,
AA,
A,
and
BBB
are
investment
grade
ratings;
BB,
B,
CCC,
CC,
C
and
D
are
below-investment
grade
ratings.
Holdings
designated
N/R
are
not
rated
by
these
national
ratings
agencies.
Bond
insurance
guarantees
only
the
payment
of
principal
and
interest
on
the
bond
when
due,
and
not
the
value
of
the
bonds
themselves,
which
will
fluctuate
with
the
bond
market
and
the
financial
success
of
the
issuer
and
the
insurer.
Insurance
relates
specifically
to
the
bonds
in
the
portfolio
and
not
to
the
share
prices
of
a
Fund.
No
representation
is
made
as
to
the
insurers’
ability
to
meet
their
commitments.
Refer
to
the
Glossary
of
Terms
Used
in
this
Report
for
further
definition
of
the
terms
used
within
this
section.
Risk
Considerations
and
Dividend
Information
9