UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY

 

Investment Company Act file number 811-22058

 

Nuveen Tax-Advantaged Dividend Growth Fund

(Exact name of registrant as specified in charter)

 

   333 West Wacker Drive, Chicago, Illinois 60606   

 

 

(Address of principal executive offices) (Zip code)

 

 

Kevin J. McCarthy—Vice President and Secretary
   333 West Wacker Drive, Chicago, Illinois 60606   

 

 

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

312-917-7700

 

Date of fiscal year end:

12/31

 

Date of reporting period:

9/30/2011

 

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.

 

 

 



 

Item 1. Schedule of Investments

 


 


 

 

 

Portfolio of Investments (Unaudited)

 

 

 

 

 

Nuveen Tax-Advantaged Dividend Growth Fund  (JTD)

 

 

 

 

 

September 30, 2011

 

 

 

 

Shares

 

Description (1)

 

Value

  

 

 

Common Stocks – 97.0% (68.8% of Total Investments)

 

 

 

 

 

Aerospace & Defense – 1.9% (1.4% of Total Investments)

 

 

 

145,000

 

Bombardier Inc., CLass B Shares

 

$     510,110

 

71,188

 

Raytheon Company

 

2,909,454

 

 

 

Total Aerospace & Defense

 

3,419,564

 

 

 

Beverages – 3.6% (2.6% of Total Investments)

 

 

 

80,945

 

Coca-Cola Company

 

5,468,644

 

43,500

 

Heineken NV, (9)

 

962,655

 

 

 

Total Beverages

 

6,431,299

 

 

 

Capital Markets – 2.1% (1.5% of Total Investments)

 

 

 

25,330

 

BlackRock Inc.

 

3,749,093

 

 

 

Chemicals – 1.6% (1.2% of Total Investments)

 

 

 

87,000

 

Linde AG, (9)

 

1,168,410

 

33,300

 

Syngenta AG, ADR

 

1,727,271

 

 

 

Total Chemicals

 

2,895,681

 

 

 

Commercial Banks – 5.5% (3.9% of Total Investments)

 

 

 

78,053

 

Cullen/Frost Bankers, Inc.

 

3,579,511

 

30,600

 

HSBC Holdings PLC

 

1,164,024

 

166,500

 

U.S. Bancorp (2)

 

3,919,410

 

12,000

 

Westpac Banking Corporation

 

1,152,720

 

 

 

Total Commercial Banks

 

9,815,665

 

 

 

Commercial Services & Supplies - 1.8% (1.2% of Total Investments)

 

 

 

95,705

 

Waste Management, Inc.

 

3,116,155

 

 

 

Communications Equipment – 2.5% (1.8% of Total Investments)

 

 

 

90,365

 

QUALCOMM, Inc.

 

4,394,450

 

 

 

Diversified Financial Services – 2.1% (1.5% of Total Investments)

 

 

 

123,770

 

JP Morgan Chase & Co.

 

3,727,952

 

 

 

Diversified Telecommunication Services – 3.1% (2.2% of Total Investments)

 

 

 

151,453

 

AT&T Inc.

 

4,319,440

 

62,900

 

Telefonica S.A., Sponsored ADR

 

1,202,648

 

 

 

Total Diversified Telecommunication Services

 

5,522,088

 

 

 

Electric Utilities – 2.7% (1.9% of Total Investments)

 

 

 

88,139

 

NextEra Energy Inc.

 

4,761,269

 

 

 

Electrical Equipment – 2.1% (1.5% of Total Investments)

 

 

 

68,200

 

ABB Limited, ADR

 

1,164,856

 

62,461

 

Emerson Electric Company

 

2,580,264

 

 

 

Total Electrical Equipment

 

3,745,120

 

 

 

Energy Equipment & Services – 1.1% (0.8% of Total Investments)

 

 

 

28,200

 

ENSCO International Incorporated

 

1,140,126

 

33,100

 

Tenaris SA

 

842,395

 

 

 

Total Energy Equipment & Services

 

1,982,521

 

 

 

Food Products – 2.8% (2.0% of Total Investments)

 

 

 

98,200

 

Danone, (9)

 

1,219,644

 

81,100

 

McCormick & Company, Incorporated

 

3,743,576

 

 

 

Total Food Products

 

4,963,220

 

 

 

Gas Utilities – 1.6% (1.1% of Total Investments)

 

 

 

43,500

 

ONEOK, Inc.

 

2,872,740

 

 

 

Health Care Providers & Services – 3.6% (2.6% of Total Investments)

 

 

 

121,650

 

AmerisourceBergen Corporation

 

4,533,896

 

28,100

 

Fresenius SE, ADR

 

1,897,593

 

 

 

Total Health Care Providers & Services

 

6,431,489

 

 

 

Hotels, Restaurants & Leisure – 3.6% (2.5% of Total Investments)

 

 

 

157,000

 

Compass Group PLC, (9)

 

1,259,140

 

102,584

 

YUM! Brands, Inc.

 

5,066,624

 

 

 

Total Hotels, Restaurants & Leisure

 

6,325,764

 

 

 

Household Durables – 2.4% (1.7% of Total Investments)

 

 

 

150,600

 

Leggett and Platt Inc.

 

2,980,374

 

64,900

 

Sony Corporation

 

1,233,100

 

 

 

Total Household Durables

 

4,213,474

 

 

 

Household Products – 2.2% (1.5% of Total Investments)

 

 

 

61,215

 

Procter & Gamble Company

 

3,867,564

 

 

 

Independent Power Producers & Energy Traders – 0.8% (0.5% of Total Investments)

 

 

 

28,900

 

International Power PLC, (9)

 

1,381,229

 

 

 

Industrial Conglomerates – 1.5% (1.0% of Total Investments)

 

 

 

29,000

 

Jardine Matheson Holdings Limited, (9)

 

1,331,100

 

14,000

 

Siemens AG, Sponsored ADR

 

1,257,060

 

 

 

Total Industrial Conglomerates

 

2,588,160

 

 

 

Insurance – 1.4% (1.0% of Total Investments)

 

 

 

71,225

 

AFLAC Incorporated (2)

 

2,489,314

 

 

 

IT Services – 5.1% (3.6% of Total Investments)

 

 

 

87,850

 

Accenture Limited

 

4,627,938

 

24,910

 

International Business Machines Corporation (IBM)

 

4,359,997

 

 

 

Total IT Services

 

8,987,935

 

 

 

Machinery – 4.7% (3.3% of Total Investments)

 

 

 

31,700

 

Caterpillar Inc.

 

2,340,728

 

64,500

 

Eaton Corporation

 

2,289,750

 

34,700

 

Kubota Corporation

 

1,385,224

 

66,813

 

PACCAR Inc.

 

2,259,616

 

 

 

Total Machinery

 

8,275,318

 

 

 

Media – 1.2% (0.9% of Total Investments)

 

 

 

69,300

 

Pearson Public Limited Company

 

1,213,443

 

21,300

 

WPP Group PLC

 

980,865

 

 

 

Total Media

 

2,194,308

 

 

 

Metals & Mining – 1.0% (0.7% of Total Investments)

 

 

 

26,600

 

BHP Billiton PLC, ADR

 

1,767,304

 

 

 

Office Electronics – 0.7% (0.5% of Total Investments)

 

 

 

26,900

 

Canon Inc.

 

1,217,494

 

 

 

Oil, Gas & Consumable Fuels – 6.7% (4.8% of Total Investments)

 

 

 

20,600

 

BG PLC., Sponsored ADR, (9)

 

1,965,240

 

48,350

 

Chevron Corporation (2)

 

4,473,342

 

60,542

 

EQT Corporation

 

3,230,521

 

29,300

 

Sasol Ltd

 

1,189,580

 

24,000

 

Total SA, Sponsored ADR

 

1,052,880

 

 

 

Total Oil, Gas & Consumable Fuels

 

11,911,563

 

 

 

Personal Products – 1.0% (0.7% of Total Investments)

 

 

 

45,400

 

L’Oreal, (9)

 

885,300

 

42,600

 

Shiseido Company, Limited, Sponsored ADR, (9)

 

816,642

 

 

 

Total Personal Products

 

1,701,942

 

 

 

Pharmaceuticals – 8.1% (5.8% of Total Investments)

 

 

 

100,230

 

Abbott Laboratories (2)

 

5,125,762

 

35,300

 

Merck KGaA, (9)

 

970,927

 

25,600

 

Novartis AG, Sponsored ADR

 

1,427,712

 

20,700

 

Novo-Nordisk A/S

 

2,060,064

 

275,050

 

Pfizer Inc. (2)

 

4,862,884

 

 

 

Total Pharmaceuticals

 

14,447,349

 

 

 

Professional Services – 0.5% (0.3% of Total Investments)

 

 

 

73,000

 

Experian PLC, (9)

 

811,760

 

 

 

Road & Rail – 1.8% (1.3% of Total Investments)

 

 

 

39,500

 

Union Pacific Corporation

 

3,225,965

 

 

 

Semiconductors & Equipment – 2.6% (1.9% of Total Investments)

 

 

 

150,054

 

Microchip Technology Incorporated

 

4,668,180

 

 

 

Software – 3.1% (2.2% of Total Investments)

 

 

 

170,150

 

Microsoft Corporation

 

4,235,034

 

24,700

 

SAP AG, Sponsored ADR

 

1,250,314

 

 

 

Total Software

 

5,485,348

 

 

 

Textiles, Apparel & Luxury Goods – 2.9% (2.1% of Total Investments)

 

 

 

43,005

 

VF Corporation

 

5,225,968

 

 

 

Thrifts & Mortgage Finance – 2.1% (1.4% of Total Investments)

 

 

 

306,348

 

New York Community Bancorp Inc.

 

3,645,541

 

 

 

Tobacco – 5.5% (3.9% of Total Investments)

 

 

 

42,044

 

Lorillard Inc.

 

4,654,268

 

80,789

 

Philip Morris International (2)

 

5,039,616

 

 

 

Total Tobacco

 

9,693,884

 

 

 

Total Common Stocks (cost $174,520,204)

 

171,953,670

 

 

Shares

 

Description (1)

 

Coupon

 

 

 

Ratings (3)

 

Value

 

 

 

$25 Par (or similar) Preferred Securities – 29.0% (20.7% of Total Investments)

 

 

 

 

 

 

Commercial Banks – 2.8% (2.0% of Total Investments)

 

 

 

 

 

43,700

 

Associated Banc-Corp.

 

8.000%

 

 

 

Ba1

 

$    1,071,524

 

27,439

 

BB&T Capital Trust VI

 

9.600%

 

 

 

A-

 

728,505

 

14,861

 

BB&T Capital Trust VII

 

8.100%

 

 

 

A-

 

384,900

 

10,300

 

HSBC Holdings PLC

 

8.000%

 

 

 

A+

 

261,929

 

19,810

 

National City Capital Trust IV

 

8.000%

 

 

 

A-

 

504,561

 

16,307

 

PNC Capital Trust

 

7.750%

 

 

 

A-

 

420,884

 

11,000

 

Popular Inc.

 

8.250%

 

 

 

B2

 

198,000

 

50,000

 

Zions Bancorporation

 

9.500%

 

 

 

BB

 

1,262,500

 

 

 

Total Commercial Banks

 

 

 

 

 

 

 

4,832,803

 

 

 

Consumer Finance – 3.6% (2.6% of Total Investments)

 

 

 

 

 

 

 

72,800

 

Ally Financial Inc.

 

8.500%

 

 

 

B

 

1,270,360

 

14,626

 

GMAC LLC

 

7.250%

 

 

 

BB

 

293,105

 

28,000

 

Heller Financial Inc.

 

6.687%

 

 

 

A+

 

2,802,626

 

50,500

 

HSBC Finance Corporation

 

6.360%

 

 

 

A

 

1,049,895

 

24,800

 

SLM Corporation, Series A

 

6.970%

 

 

 

B

 

1,043,832

 

 

 

Total Consumer Finance

 

 

 

 

 

 

 

6,459,818

 

 

 

Diversified Financial Services – 2.0% (1.4% of Total Investments)

 

 

 

 

 

 

 

56,000

 

Bank of America Corporation

 

8.200%

 

 

 

BBB

 

1,233,120

 

1,360

 

Bank of America Corporation

 

7.250%

 

 

 

BBB

 

1,041,746

 

28,700

 

Citigroup Inc.

 

8.500%

 

 

 

BBB

 

724,675

 

4,615

 

Citigroup Inc.

 

8.125%

 

 

 

BBB

 

116,160

 

9,012

 

Citigroup Inc.

 

6.500%

 

 

 

BBB

 

414,552

 

 

 

Total Diversified Financial Services

 

 

 

 

 

 

 

3,530,253

 

 

 

Electric Utilities – 4.3% (3.0% of Total Investments)

 

 

 

 

 

 

11,700

 

BGE Capital Trust II

 

6.200%

 

 

 

BBB-

 

301,158

 

75,000

 

Entergy Arkansas Inc.

 

6.450%

 

 

 

BB+

 

1,872,660

 

20,000

 

Gulf Power Company

 

6.000%

 

 

 

BBB+

 

2,001,628

 

21,300

 

PPL Electric Utilities Corporation

 

6.250%

 

 

 

BBB-

 

533,831

 

25,000

 

Southern California Edison Company, Series C

 

6.000%

 

 

 

BBB+

 

2,385,158

 

5,000

 

Southern California Edison Company

 

6.500%

 

 

 

Baa2

 

505,938

 

 

 

Total Electric Utilities

 

 

 

 

 

 

 

7,600,373

 

 

 

Food Products – 1.2% (0.9% of Total Investments)

 

 

 

 

 

 

 

20

 

HJ Heinz Finance Company, 144A

 

8.000%

 

 

 

BBB-

 

2,143,750

 

 

 

Insurance – 5.9% (4.2% of Total Investments)

 

 

 

 

 

 

 

 

 

84,000

 

American Financial Group

 

7.000%

 

 

 

BBB+

 

2,157,120

 

50,000

 

Aspen Insurance Holdings Limited

 

7.401%

 

 

 

BBB-

 

1,220,000

 

18,735

 

Endurance Specialty Holdings Limited

 

7.750%

 

 

 

BBB-

 

474,932

 

95,300

 

Endurance Specialty Holdings Limited

 

7.500%

 

 

 

BBB-

 

2,345,333

 

30,500

 

Montpelier Re Holdings Limited

 

8.875%

 

 

 

BB+

 

782,630

 

58,100

 

Principal Financial Group

 

6.518%

 

 

 

BBB

 

1,467,025

 

75,000

 

Prudential Financial Inc.

 

9.000%

 

 

 

BBB+

 

2,077,500

 

 

 

Total Insurance

 

 

 

 

 

 

 

10,524,540

 

 

 

Multi-Utilities – 0.9% (0.7% of Total Investments)

 

 

 

 

 

 

 

25,000

 

Dominion Resources Inc.

 

8.375%

 

 

 

BBB

 

727,250

 

32,500

 

Scana Corporation

 

7.700%

 

 

 

BBB-

 

921,700

 

 

 

Total Multi-Utilities

 

 

 

 

 

 

 

1,648,950

 

 

 

Oil, Gas & Consumable Fuels – 0.7% (0.5% of Total Investments)

 

 

 

 

 

 

 

17,802

 

Magnum Hunter Resources Corporation

 

10.250%

 

 

 

N/A

 

444,160

 

18,500

 

Magnum Hunter Resources Corporation

 

8.000%

 

 

 

N/A

 

789,950

 

 

 

Total Oil, Gas & Consumable Fuels

 

 

 

 

 

 

 

1,234,110

 

 

 

Real Estate Investment Trust – 6.8% (4.8% of Total Investments)

 

 

 

 

 

 

 

29,023

 

Apartment Investment & Management Company, Series U

 

7.750%

 

 

 

Ba3

 

719,190

 

100,000

 

Ashford Hospitality Trust Inc.

 

9.000%

 

 

 

N/A

 

2,408,000

 

22,800

 

Ashford Hospitality Trust Inc.

 

8.450%

 

 

 

N/A

 

530,100

 

67,800

 

CommomWealth REIT

 

7.250%

 

 

 

Baa3

 

1,657,032

 

72,500

 

Dupont Fabros Technology

 

7.875%

 

 

 

Ba2

 

1,853,825

 

25,000

 

Equity Residential Properties Trust

 

8.290%

 

 

 

Baa2

 

1,613,283

 

50,000

 

Kimco Realty Corporation, Series G

 

7.750%

 

 

 

Baa2

 

1,280,000

 

72,500

 

Vornado Realty LP

 

7.875%

 

 

 

BBB

 

1,943,000

 

 

 

Total Real Estate Investment Trust

 

 

 

 

 

 

 

12,004,430

 

 

 

Wireless Telecommunication Services – 0.8% (0.6% of Total Investments)

 

 

 

 

 

35,263

 

Telephone and Data Systems Inc.

 

7.000%

 

 

 

Baa2

 

910,843

 

18,382

 

United States Cellular Corporation

 

6.950%

 

 

 

Baa2

 

470,212

 

 

 

Total Wireless Telecommunication Services

 

 

 

 

 

 

 

1,381,055

 

 

 

Total $25 Par (or similar) Preferred Securities (cost $53,802,962)

 

 

 

 

 

51,360,082

 

 

Shares

 

Description (1)

 

Coupon

 

 

 

Ratings (3)

 

Value

  

 

 

Convertible Preferred Securities – 2.7% (1.9% of Total Investments)

 

 

 

 

 

 

 

Commercial Banks – 2.0% (1.4% of Total Investments)

 

 

 

 

 

3,500

 

Wells Fargo & Company, Convertible Bond

 

7.500%

 

 

 

A-

 

3,615,710

 

 

 

Diversified Financial Services – 0.7% (0.5% of Total Investments)

 

 

 

 

 

16,651

 

CitiGroup Inc., Convertible

 

7.500%

 

 

 

N/A

 

$    1,325,919

 

 

 

Total Convertible Preferred Securities (cost $1,593,792)

 

 

 

 

 

4,941,629

 

 

Principal

 

 

 

 

 

 

 

 

 

 

 

Amount (000)

 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

  

 

 

Corporate Bonds – 1.6% (1.1% of Total Investments)

 

 

 

 

 

 

 

 

 

Commercial Banks – 0.6% (0.4% of Total Investments)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,000

 

Western Alliance Bancorporation

 

10.000%

 

9/01/15

 

Ba3

 

$    1,042,500

 

 

 

Independent Power Producers & Energy Traders – 0.5% (0.4% of Total Investments)

 

 

 

 

 

968

 

NRG Energy Inc., 144A

 

7.875%

 

5/15/21

 

BB

 

885,720

 

 

 

Insurance – 0.5% (0.3% of Total Investments)

 

 

 

 

 

 

 

 

 

969

 

Genworth Financial Inc.

 

7.200%

 

2/15/21

 

BBB

 

823,506

 

$

2,937

 

Total Corporate Bonds (cost $2,792,130)

 

 

 

 

 

 

 

2,751,726

 

 

Principal

 

 

 

 

 

 

 

 

 

 

 

Amount (000)/

 

 

 

 

 

 

 

 

 

 

 

Shares

 

Description (1)

 

Coupon

 

Maturity

 

Ratings (3)

 

Value

  

 

 

Capital Preferred Securities – 4.7% (3.3% of Total Investments)

 

 

 

 

 

 

 

 

 

Commercial Banks – 1.0% (0.7% of Total Investments)

 

 

 

 

 

 

 

 

1,000

 

PNC Financial Services Inc.

 

6.750%

 

8/01/21

 

A-

 

$      957,730

 

1

 

U.S. Bancorp.

 

3.500%

 

N/A (4)

 

A

 

754,548

 

 

 

Total Commercial Banks

 

 

 

 

 

 

 

1,712,278

 

 

 

Consumer Finance – 0.8% (0.6% of Total Investments)

 

 

 

 

 

 

 

1,000

 

Capital One Capital V Corporation

 

10.250%

 

8/15/39

 

BBB

 

1,015,000

 

500

 

Capital One Capital VI

 

8.875%

 

5/15/40

 

BBB

 

507,366

 

 

 

Total Consumer Finance

 

 

 

 

 

 

 

1,522,366

 

 

 

Diversified Financial Services – 1.1% (0.8% of Total Investments)

 

 

 

 

 

 

 

1,000

 

JP Morgan Chase & Company

 

7.900%

 

N/A (4)

 

A

 

1,030,010

 

1,000

 

MBNA Capital Trust

 

8.278%

 

12/01/26

 

BBB

 

930,000

 

 

 

Total Diversified Financial Services

 

 

 

 

 

 

 

1,960,010

 

 

 

Insurance – 1.8% (1.2% of Total Investments)

 

 

 

 

 

 

 

 

 

20

 

Axis Capital Holdings Limited

 

7.500%

 

N/A (4)

 

BBB

 

1,886,876

 

1,000

 

MetLife Inc.

 

10.750%

 

8/01/69

 

BBB

 

1,250,000

 

 

 

Total Insurance

 

 

 

 

 

 

 

3,136,876

 

 

 

Total Capital Preferred Securities (cost $8,130,399)

 

 

 

 

 

8,331,530

 

 

Principal

 

 

 

 

 

 

 

 

 

 

 

Amount (000)

 

Description (1)

 

Coupon

 

Maturity

 

 

 

Value

  

 

 

Short-Term Investments - 5.9% (4.2% of Total Investments)

 

 

 

 

 

 

 

$

10,539

 

Repurchase Agreement with State Street Bank, dated 9/30/11, repurchase price $10,538,945, collateralized by $10,820,000 U.S. Treasury Notes, 1.375%, due 9/30/18, value $10,752,375

 

0.010%

 

10/03/11

 

 

 

$     10,538,936

 

 

 

Total Short-Term Investments (cost $10,538,936)

 

 

 

 

 

10,538,936

 

 

 

Total Investments (cost $251,378,423) – 140.9%

 

 

 

 

 

249,877,573

 

 

 

Borrowings – (37.8)% (5), (6)

 

 

 

 

 

 

(67,000,000

)

 

 

Other Assets Less Liabilities – (3.1)% (7)

 

 

 

 

 

(5,523,886

)

 

 

Net Assets Applicable to Common Shares – 100%

 

 

 

 

 

$  177,353,687

 

 

Investments in Derivatives at September 30, 2011:

 

Call Options Written outstanding:

 

Number of

 

 

 

Notional

 

Expiration

 

Strike

 

 

 

Contracts

 

Type

 

Amount (8)

 

Date

 

Price

 

Value

  

 

 

Call Options Written

 

 

 

 

 

 

 

 

 

(100

)

S&P 500 INDEX

 

$(12,000,000)

 

10/22/11

 

1,200

 

$(125,000)

 

(50

)

S&P 500 INDEX

 

(6,125,000)

 

10/22/11

 

1,225

 

(34,000)

 

(100

)

S&P 500 INDEX

 

(12,500,000)

 

11/19/11

 

1,250

 

(122,000)

 

(250

)

Total Call Options Written(premiums received $719,494)

 

$(30,625,000)

 

 

 

 

 

$(281,000)

 

 

Interest Rate Swaps outstanding:

 

 

 

 

 

Fund

 

Floating

 

 

 

Fixed Rate

 

 

 

Unrealized

 

 

 

Notional

 

Pay/Receive

 

Rate

 

Fixed

 

Payment

 

Termination

 

Appreciation

 

Counterparty

 

Amount

 

Floating Rate

 

Index

 

Rate*

 

Frequency

 

Date

 

(Depreciation)

  

JPMorgan

 

$16,750,000

 

Receive

 

1-Month USD-LIBOR

 

1.412

%

Monthly

 

3/29/14

 

$   (370,938)

 

Morgan Stanley

 

16,750,000

 

Receive

 

1-Month USD-LIBOR

 

0.409

 

Monthly

 

3/29/12

 

(6,697)

 

Morgan Stanley

 

16,750,000

 

Receive

 

1-Month USD-LIBOR

 

2.323

 

Monthly

 

3/29/16

 

(955,176)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$(1,332,811)

 

 

*Annualized

 

Fair Value Measurements

Fair value is defined as the price that the Fund would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:

Level 1 - Quoted prices in active markets for identical securities.

Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

Level 3 - Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of September 30, 2011:

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

Common Stocks**

 

$ 159,181,623

 

$  12,772,047

 

$    –

 

$ 171,953,670

 

 

$25 Par (or similar) Preferred Securities

 

37,303,208

 

14,056,874

 

 

51,360,082

 

 

Convertible Preferred Securities

 

4,941,629

 

 

 

4,941,629

 

 

Corporate Bonds

 

 

2,751,726

 

 

2,751,726

 

 

Capital Preferred Securities

 

754,548

 

7,576,982

 

 

8,331,530

 

 

Short-Term Investments

 

 

10,538,936

 

 

10,538,936

 

 

Derivatives:

 

 

 

 

 

 

 

 

 

 

Call Options Written

 

(281,000

)

 

 

(281,000

)

 

Interest Rate Swaps*

 

 

(1,332,811

)

 

(1,332,811

)

 

Total

 

$ 201,900,008

 

$   46,363,754

 

$    –

 

$ 248,263,762

 

 

*  Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments.

** Refer to the Fund’s Portfolio of Investments for industry breakdown of Common Stocks classified as Level 2.

 

During the period ended September 30, 2011, the Fund recognized no significant transfers to or from Level 1, Level 2 or Level 3.

 

Derivative Instruments and Hedging Activities

 

The Fund records derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable.  Even though the Fund’s investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes.

 

The following table presents the fair value of all derivative instruments held by the Fund as of September 30, 2011, the location of these instruments on the Statement of Assets and Liabilities, and the primary underlying risk exposure.

 

 

 

 

 

 

Location on the Statements of Assets and Liabilities

 

 

Underlying

 

Derivative

 

Asset Derivatives

 

Liability Derivatives

 

 

Risk Exposure

 

Instrument

 

Location

 

Value

 

Location

 

Value

 

 

Equity Price

 

Options

 

 

$         –

 

Call options written, at value

 

$      281,000

 

 

Interest Rate

 

Swaps

 

Unrealized appreciation on interest rate swaps*

 

 

Unrealized depreciation on interest rate swaps*

 

1,332,811

 

 

Total

 

 

 

 

 

$         –

 

 

 

$   1,613,811

 

 

*          Value represents cumulative gross appreciation (depreciation) of swap contracts as reported in the Fund’s Portfolio of Investments.

 

Income Tax Information

 

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the recognition of unrealized gain or loss for tax (mark-to-market) on option contracts, timing differences in the recognition of income and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

 

At September 30, 2011, the cost of investments (excluding investments in derivatives) was $252,642,689.

 

Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 2011, were as follows:

 

 

 

 

 

 

 

Gross unrealized:

 

 

 

 

Appreciation

 

$

19,107,859 

 

 

Depreciation

 

(21,872,975)

 

 

Net unrealized appreciation (depreciation) of investments

 

$

(2,765,116)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

 

(1)

All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.

 

(2)

Investment, or portion of investment, has been pledged to collateralize the net payment obligations for investments in derivatives.

 

(3)

Ratings: Using the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

 

(4)

Perpetual security. Maturity date is not applicable.

 

(5)

Borrowings as a percentage of total investments is 26.8%.

 

(6)

The Fund may pledge up to 100% of its eligible investments in the Portfolio of Investments as collateral for Borrowings. As of September 30, 2011, investments with a value of $139,681,293 has been pledged as collateral for Borrowings.

 

(7)

Other Assets Less Liabilities includes Value and/or Net Unrealized Appreciation (Depreciation) of derivative instruments as noted within Investments in Derivatives at September 30, 2011.

 

(8)

For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.

 

(9)

For fair value measurement disclosure purposes, Common Stock categorized as Level 2.

 

N/A

Not applicable.

 

144A

Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.

 

ADR

American Depositary Receipt.

 

USD-LIBOR

United States Dollar–London Inter-Bank Offered Rate.

 



 

Item 2. Controls and Procedures.

a.               The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).

b.              There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.

 



 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant) Nuveen Tax-Advantaged Dividend Growth Fund

 

 

By (Signature and Title)

/s/ Kevin J. McCarthy

 

 

Kevin J. McCarthy

 

 

Vice President and Secretary

 

 

 

Date November 29, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By (Signature and Title)

/s/ Gifford R. Zimmerman

 

 

Gifford R. Zimmerman

 

 

Chief Administrative Officer (principal executive officer)

 

 

 

Date November 29, 2011

 

 

By (Signature and Title)

/s/ Stephen D. Foy

 

 

Stephen D. Foy

 

 

Vice President and Controller (principal financial officer)

 

 

 

Date November 29, 2011