nvq
 
 
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 811-21407
Nuveen Diversified Dividend and Income 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:    9/30/2009   
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 Diversified Dividend and Income Fund (JDD)
September 30, 2009
                             
Shares     Description (1)               Value  
 
 
 
                    
 
Common Stocks – 34.5% (26.5% of Total Investments)
 
 
                    
 
Aerospace & Defense – 2.9%
 
 
                    
  30,500    
Lockheed Martin Corporation
               $ 2,381,440  
  26,100    
Northrop Grumman Corporation
                 1,350,675  
  52,200    
Raytheon Company
                 2,504,034  
 
 
Total Aerospace & Defense
                 6,236,149  
 
 
 
                    
 
Building Products – 0.6%
 
 
                    
  35,400    
Masonite Worldwide Holdings
                 1,345,200  
 
 
 
                    
 
Commercial Banks – 0.9%
 
 
                    
  76,000    
Banco Santander Central S.A.
                 1,227,400  
  25,800    
Wells Fargo & Company
                 727,044  
 
 
Total Commercial Banks
                 1,954,444  
         
 
 
                    
 
Commercial Services & Supplies – 1.5%
 
 
                    
  135,100    
Pitney Bowes Inc.
                 3,357,235  
 
 
 
                    
 
Containers & Packaging – 0.9%
 
 
                    
  95,000    
Packaging Corp. of America
                 1,938,000  
 
 
 
                    
 
Diversified Financial Services – 0.3%
 
 
                    
  16,700    
JPMorgan Chase & Co.
                 731,794  
 
 
 
                    
 
Diversified Telecommunication Services – 1.8%
 
 
                    
  49,000    
AT&T Inc.
                 1,323,490  
  103,000    
Frontier Communications Corporation
                 776,620  
  60,000    
Verizon Communications Inc.
                 1,816,200  
 
 
Total Diversified Telecommunication Services
                 3,916,310  
         
 
 
                    
 
Electric Utilities – 0.7%
 
 
                    
  32,200    
EDP – Energias de Portugal, S.A., Sponsored ADR, (8)
                 1,473,198  
 
 
 
                    
 
Food & Staples Retailing – 0.6%
 
 
                    
  68,000    
Kroger Co.
                 1,403,520  
 
 
 
                    
 
Food Products – 0.7%
 
 
                    
  55,722    
Kraft Foods Inc.
                 1,463,817  
 
 
 
                    
 
Hotels, Restaurants & Leisure – 1.4%
 
 
                    
  93,800    
Starwood Hotels & Resorts Worldwide, Inc.
                 3,098,214  
 
 
 
                    
 
Household Products – 0.7%
 
 
                    
  25,000    
Kimberly-Clark Corporation
                 1,474,500  
 
 
 
                    
 
Industrial Conglomerates – 0.6%
 
 
                    
  80,000    
General Electric Company
                 1,313,600  
 
 
 
                    
 
Insurance – 4.6%
 
 
                    
  92,700    
Hartford Financial Services Group, Inc.
                 2,456,550  
  37,000    
Loews Corporation
                 1,267,250  
  61,800    
MetLife, Inc.
                 2,352,726  
  18,400    
Reinsurance Group of America Inc.
                 820,640  
  60,500    
Travelers Companies, Inc.
                 2,978,415  
 
 
Total Insurance
                 9,875,581  
         
 
 
                    
 
Machinery – 1.5%
 
 
                    
  32,700    
Caterpillar Inc.
                 1,678,491  
  53,000    
Ingersoll Rand Company Limited, Class A
                 1,625,510  
 
 
Total Machinery
                 3,304,001  
         
 
 
                    
 
Media – 0.6%
 
 
                    
  82,400    
Comcast Corporation, Special Class A
                 1,324,992  
 
 
 
                    
 
Metals & Mining – 1.6%
 
 
                    
  70,300    
Barrick Gold Corporation
                 2,664,370  
  7,400    
POSCO, ADR
                 769,156  
 
 
Total Metals & Mining
                 3,433,526  
         
 
 
                    
 
Oil, Gas & Consumable Fuels – 3.6%
 
 
                    
  50,500    
ConocoPhillips
                 2,280,580  
  41,300    
Eni S.p.A., Sponsored ADR
                 2,058,805  
  14,000    
Exxon Mobil Corporation
                 960,540  
  41,000    
Total S.A., Sponsored ADR
                 2,429,660  
 
 
Total Oil, Gas & Consumable Fuels
                 7,729,585  
         
 
 
                    
 
Pharmaceuticals – 4.5%
 
 
                    
  43,400    
GlaxoSmithKline PLC, Sponsored ADR
                 1,714,734  
  85,000    
Merck & Co. Inc.
                 2,688,550  
  117,800    
Pfizer Inc.
                 1,949,590  
  89,200    
Sanofi-Aventis, Sponsored ADR
                 3,295,940  
 
 
Total Pharmaceuticals
                 9,648,814  
         
 
 
                    
 
Road & Rail – 0.6%
 
 
                    
  21,500    
Union Pacific Corporation
                 1,254,525  
 
 
 
                    
 
Software – 2.3%
 
 
                    
  127,700    
CA Inc.
                 2,808,123  
  79,800    
Microsoft Corporation
                 2,066,022  
 
 
Total Software
                 4,874,145  
         
 
 
                    
 
Tobacco – 1.6%
 
 
                    
  9,500    
Lorillard Inc.
                 705,850  
  55,300    
Philip Morris International
                 2,695,322  
 
 
Total Tobacco
                 3,401,172  
         
 
Total Common Stocks (cost $70,991,692)
                 74,552,322  
         
                             
Shares     Description (1)               Value  
 
 
 
                    
        Real Estate Investment Trust Common Stocks – 28.7% (22.0% of Total Investments)
 
 
                    
 
Diversified – 1.3%
 
 
                    
  42,438    
Vornado Realty Trust
               $ 2,733,431  
 
 
 
                    
 
Industrial – 1.4%
 
 
                    
  246,400    
ProLogis
                 2,937,088  
 
 
 
                    
 
Office – 5.1%
 
 
                    
  47,050    
Boston Properties, Inc.
                 3,084,127  
  68,000    
Corporate Office Properties
                 2,507,840  
  222,750    
Douglas Emmett Inc.
                 2,735,370  
  85,250    
Mack-Cali Realty Corporation
                 2,756,132  
 
 
Total Office
                 11,083,469  
         
 
 
                    
 
Residential – 6.9%
 
 
                    
  264,176    
Apartment Investment & Management Company, Class A
                 3,896,596  
  36,375    
AvalonBay Communities, Inc.
                 2,645,554  
  94,050    
Equity Residential
                 2,887,335  
  35,600    
Essex Property Trust Inc.
                 2,833,048  
  145,000    
Post Properties, Inc.
                 2,610,000  
 
 
Total Residential
                 14,872,533  
         
 
 
                    
 
Retail – 7.6%
 
 
                    
  37,750    
Federal Realty Investment Trust
                 2,316,718  
  132,884    
Macerich Company
                 4,030,372  
  59,300    
Regency Centers Corporation
                 2,197,065  
  67,250    
Saul Centers Inc.
                 2,158,725  
  39,640    
Simon Property Group, Inc.
                 2,752,205  
  79,900    
Taubman Centers Inc.
                 2,882,792  
 
 
Total Retail
                 16,337,877  
         
 
 
                    
 
Specialized – 6.4%
 
 
                    
  291,700    
Extra Space Storage Inc.
                 3,077,435  
  95,550    
Health Care Property Investors Inc.
                 2,746,107  
  245,650    
Host Hotels & Resorts Inc.
                 2,891,301  
  32,324    
Public Storage, Inc.
                 2,432,058  
  71,200    
Ventas Inc.
                 2,741,200  
 
 
Total Specialized
                 13,888,101  
         
 
Total Real Estate Investment Trust Common Stocks (cost $54,175,611)
                 61,852,499  
         
                             
Shares     Description (1)   Coupon       Ratings (2)   Value  
 
 
 
                    
        Capital Preferred Securities – 0.7% (0.6% of Total Investments)
 
 
                    
 
Food Products – 0.7%
 
 
                    
  15    
HJ Heinz Finance Company, 144A
   8.000%       BB+   $ 1,545,469  
 
 
Total Capital Preferred Securities (cost $1,310,000)
                 1,545,469  
         
                             
            Weighted              
Principal         Average              
Amount (000)     Description (1)   Coupon   Maturity (3)   Ratings (2)   Value  
 
 
 
                    
        Variable Rate Senior Loan Interests – 36.1% (27.7% of Total Investments) (4)
 
 
                    
 
Chemicals – 2.6%
 
 
                    
$ 853    
Ashland, Inc., Term Loan B
   6.650%   5/13/14   BB+   $ 873,409  
  400    
Celanese US Holdings LLC, Credit Linked Deposit
   0.259%   4/02/14   BB+     381,450  
  911    
Celanese US Holdings LLC, Term Loan
   2.345%   4/02/14   BB+     865,613  
  1,940    
Hexion Specialty Chemicals, Inc., Term Loan C4
   2.750%   5/05/13   B1     1,597,266  
  1,881    
Rockwood Specialties Group, Inc., Term Loan H
   6.000%   7/30/12   Ba2     1,903,822  
 
  5,985    
Total Chemicals
                 5,621,560  
 
 
 
                    
        Containers & Packaging – 1.3%
 
 
                    
  249    
Graham Packaging Company LP, Term Loan B
   2.554%   10/07/11   B+     244,320  
  2,496    
Graham Packaging Company LP, Term Loan C
   6.750%   4/05/14   B+     2,501,646  
 
  2,745    
Total Containers & Packaging
                 2,745,966  
 
 
 
                    
        Diversified Telecommunication Services – 2.4%
 
 
                    
  333    
Intelsat, Tranche B2, Term Loan A
   2.753%   1/03/14   BB-     317,114  
  332    
Intelsat, Tranche B2, Term Loan B
   2.753%   1/03/14   BB-     317,017  
  332    
Intelsat, Tranche B2, Term Loan C
   2.753%   1/03/14   BB-     317,017  
  1,921    
Intelsat, Tranche B2, Term Loan
   2.753%   7/01/13   BB-     1,845,060  
  1,940    
MetroPCS Wireless, Inc., Term Loan
   2.661%   11/03/13   Ba2     1,856,634  
  453    
Verifone, Inc., Term Loan B
   3.000%   10/31/13   Ba2     432,138  
 
  5,311    
Total Diversified Telecommunication Services
                 5,084,980  
 
 
 
                    
        Electric Utilities – 2.0%
 
 
                    
  1,702    
Dynegy Holdings, Inc., Delayed Term Loan
   4.000%   4/02/13   Ba2     1,643,086  
  292    
Dynegy Holdings, Inc., Term Loan
   4.000%   4/02/13   Ba2     281,789  
  1,960    
TXU Corporation, Term Loan B2
   3.754%   10/10/14   B+     1,556,730  
  982    
TXU Corporation, Term Loan B3
   3.754%   10/10/14   B+     776,140  
 
  4,936    
Total Electric Utilities
                 4,257,745  
 
 
 
                    
        Electrical Equipment – 0.6%
 
 
                    
  1,383    
Sensus Metering Systems, Inc., Term Loan B1
   7.000%   6/03/13   BB     1,387,792  
 
 
 
                    
        Electronic Equipment & Instruments – 0.4%
 
 
                    
  968    
Sensata Technologies B.V., Term Loan
   2.246%   4/27/13   B     831,444  
 
 
 
                    
        Health Care Equipment & Supplies – 1.3%
 
 
                    
  1,970    
Biomet, Inc., Term Loan
   3.282%   3/25/15   BB-     1,903,174  
  995    
Renal Advantage, Inc., Term Loan
   2.790%   10/06/12   N/R     947,312  
 
  2,965    
Total Health Care Equipment & Supplies
                 2,850,486  
 
 
 
                    
        Health Care Providers & Services – 5.3%
 
 
                    
  97    
Community Health Systems, Inc., Delayed Term Loan
   2.496%   7/25/14   BB     91,424  
  1,903    
Community Health Systems, Inc., Term Loan
   2.611%   7/25/14   BB     1,792,076  
  1,290    
Fresenius SE, Term Loan B1
   6.750%   7/06/14   BBB-     1,307,133  
  695    
Fresenius SE, Term Loan B2
   6.750%   7/06/14   BBB-     704,168  
  2,765    
HCA, Inc., Term Loan, DDI
   2.533%   11/18/13   BB     2,613,326  
  1,830    
Health Management Associates, Inc., Term Loan
   2.033%   2/28/14   BB-     1,722,872  
  1,925    
Quintiles Transnational Corporation, Term Loan B
   2.283%   3/29/13   BB     1,831,314  
  232    
United Surgical Partners International, Inc., Delayed Term Loan
   2.250%   4/19/14   Ba3     215,883  
  1,227    
United Surgical Partners International, Inc., Term Loan
   2.374%   4/19/14   Ba3     1,142,795  
 
  11,964    
Total Health Care Providers & Services
                 11,420,991  
 
 
 
                    
        Hotels, Restaurants & Leisure – 3.6%
 
 
                    
  1,930    
24 Hour Fitness Worldwide, Inc., Term Loan B
   2.921%   6/08/12   Ba3     1,775,600  
  727    
CBRL Group, Inc., Term Loan B1
   1.974%   4/27/13   BB-     704,464  
  27    
CBRL Group, Inc., Term Loan B2
   1.954%   4/26/13   BB-     26,630  
  2,445    
Cedar Fair LP, Term Loan
   4.246%   8/30/14   BB-     2,390,797  
  89    
Travelport LLC, Letter of Credit
   2.783%   8/23/13   Ba2     83,274  
  445    
Travelport LLC, Term Loan
   2.759%   8/23/13   Ba2     415,019  
  593    
Venetian Casino Resort LLC, Delayed Term Loan
   2.040%   5/23/14   B-     496,737  
  2,346    
Venetian Casino Resort LLC, Term Loan
   2.040%   5/23/14   B-     1,966,828  
 
  8,602    
Total Hotels, Restaurants & Leisure
                 7,859,349  
 
 
 
                    
        Independent Power Producers & Energy Traders – 1.4%
 
 
                    
  750    
Kgen LLC, Synthetic Letter of Credit
   2.063%   2/05/14   BB     697,500  
  1,216    
Kgen LLC, Term Loan B
   2.000%   2/05/14   BB     1,130,531  
  469    
NRG Energy, Inc., Credit Linked Deposit
   2.033%   2/01/13   Baa3     445,901  
  871    
NRG Energy, Inc., Term Loan
   2.022%   2/01/13   Baa3     829,177  
 
  3,306    
Total Independent Power Producers & Energy Traders
                 3,103,109  
 
 
 
                    
        Insurance – 0.2%
 
 
                    
  651    
Conseco, Inc., Term Loan
   6.500%   10/10/13   Caa1     514,258  
 
 
 
                    
        IT Services – 1.7%
 
 
                    
  1,960    
First Data Corporation, Term Loan B1
   2.999%   9/24/14   B+     1,694,855  
  2,001    
SunGard Data Systems, Inc., Term Loan B
   2.004%   2/28/14   BB     1,886,057  
 
  3,961    
Total IT Services
                 3,580,912  
 
 
 
                    
        Machinery – 0.4%
 
 
                    
  990    
Manitowoc Company, Term Loan
   7.500%   11/06/14   BB     949,175  
 
 
 
                    
        Media – 7.8%
 
 
                    
  1,965    
CanWest Mediaworks LP, Term Loan
   4.250%   7/10/15   Caa3     1,075,837  
  2,162    
Charter Communications Operating Holdings LLC, Term Loan, (5)
   6.250%   3/06/14   Ba2     2,070,086  
  456    
Discovery Communications Holdings LLC, Term Loan
   2.246%   5/14/14   BBB-     444,881  
  1,843    
Emmis Operating Company, Term Loan
   4.283%   11/01/13   Caa2     1,290,003  
  1,903    
Idearc, Inc., Term Loan, (5), (6)
   4.250%   11/17/14   D     815,526  
  2,500    
Mediacom Broadband LLC, Tranche D Term Loan
   5.500%   3/31/17   BB-     2,510,158  
  963    
Metro-Goldwyn-Mayer Studios, Inc., Term Loan B
   5.500%   4/08/12   N/R     549,185  
  603    
Neilsen Finance LLC, Term Loan
   2.249%   8/09/13   Ba3     565,293  
  1,256    
Neilsen Finance LLC, Term Loan B
   3.999%   5/02/16   Ba3     1,190,231  
  1,975    
Tribune Company, Term Loan B, (5), (6)
   5.250%   6/04/14   Ca     993,056  
  341    
Tribune Company, Term Loan X, (5), (6)
   5.000%   6/04/09   Ca     168,391  
  2,000    
Univision Communications, Inc., Term Loan
   2.533%   9/29/14   B2     1,698,750  
  2,000    
UPC Broadband Holding BV, Term Loan N
   2.011%   12/31/14   Ba3     1,880,000  
  2,000    
Yell Group PLC, Term Loan
   3.283%   10/29/12   B     1,572,858  
 
  21,967    
Total Media
                 16,824,255  
 
 
 
                    
        Metals & Mining – 0.7%
 
 
                    
  665    
Amsted Industries, Inc., Delayed Term Loan
   2.480%   4/05/13   BB     626,208  
  916    
Amsted Industries, Inc., Term Loan
   2.484%   4/05/13   BB     862,626  
 
  1,581    
Total Metals & Mining
                 1,488,834  
 
 
 
                    
        Paper & Forest Products – 0.6%
 
 
                    
  844    
Georgia-Pacific Corporation, Term Loan B
   2.316%   12/21/12   BB+     814,687  
  465    
Georgia-Pacific Corporation, Term Loan C
   3.588%   12/23/14   BB+     463,984  
 
  1,309    
Total Paper & Forest Products
                 1,278,671  
 
 
 
                    
        Pharmaceuticals – 1.0%
 
 
                    
  2,118    
Mylan Laboratories, Inc., Term Loan
   3.550%   10/02/14   BB+     2,067,048  
 
 
 
                    
        Real Estate Management & Development – 0.4%
 
 
                    
  1,184    
LNR Property Corporation, Term Loan B
   3.760%   7/12/11   B-     871,452  
 
 
 
                    
        Road & Rail – 1.1%
 
 
                    
  111    
Hertz Corporation, Letter of Credit
   2.042%   12/21/12   Ba1     104,980  
  605    
Hertz Corporation, Term Loan
   2.000%   12/21/12   Ba1     571,922  
  1,764    
Swift Transportation Company, Inc., Term Loan
   3.563%   5/10/14   B-     1,612,178  
 
  2,480    
Total Road & Rail
                 2,289,080  
 
 
 
                    
        Textiles Apparel & Luxury Goods – 0.5%
 
 
                    
  1,016    
HBI Branded Apparel Limited, Inc., Term Loan
   5.254%   9/05/13   BB+     1,021,851  
 
 
 
                    
        Trading Companies & Distributors – 0.8%
 
 
                    
  902    
Ashtead Group Public Limited Company, Term Loan
   2.063%   8/31/11   BB+     856,900  
  192    
Brenntag Holdings GmbH & Co. KG, Acquisition Facility
   2.287%   1/20/14   B+     183,744  
  786    
Brenntag Holdings GmbH & Co. KG, Facility B2
   2.253%   1/20/14   B+     752,545  
 
  1,880    
Total Trading Companies & Distributors
                 1,793,189  
 
$ 87,302    
Total Variable Rate Senior Loan Interests (cost $86,475,239)
                 77,842,147  
 
                             
Principal                        
Amount (000) (7)     Description (1)   Coupon   Maturity   Ratings (2)   Value  
 
 
 
                    
 
Emerging Markets Debt and Foreign Corporate Bonds – 27.8% (21.3% of Total Investments)
 
 
                    
 
Argentina – 1.5%
 
 
                    
$ 210    
Arcos Dorados S.A., 144A, WI/DD
   7.500%   10/01/19   BBB-   $ 209,475  
  1,103    
Republic of Argentina
   8.280%   12/31/33   B-     749,900  
  1,479  EUR  
Republic of Argentina
   7.820%   12/31/33   B-     1,244,485  
  2,060    
Republic of Argentina
   2.500%   12/31/38   B-     700,400  
  710  EUR  
Republic of Argentina
   2.260%   12/31/38   B-     298,706  
 
       
Total Argentina
                 3,202,966  
         
 
 
                    
 
Bolivia – 0.1%
 
 
                    
  190    
Republic of Venezuela, Reg S
   9.000%   5/07/23   BB-     148,486  
 
 
 
                    
 
Brazil – 2.0%
 
 
                    
  900  BRL  
Banco ABN AMRO Real SA, Reg S
   16.200%   2/22/10   N/R     524,526  
  460    
Centrais Eletricas Brasileiras S.A., 144A
   6.875%   7/30/19   BBB-     499,100  
  225    
Cia Brasileira de Bebidas
   8.750%   9/15/13   Baa1     264,374  
  695  BRL  
Companhia Energetica de Sao Paulo, Corporate Bond 144A
   9.750%   1/15/15   Ba2     471,838  
  265    
Globo Comunicacao Participacoes, SA, 144A
   7.250%   4/26/22   BBB-     279,575  
  205    
Federative Republic of Brazil
   10.500%   7/14/14   BBB-     264,143  
  100    
Federative Republic of Brazil
   7.875%   3/07/15   BBB-     118,400  
  145    
Federative Republic of Brazil
   8.875%   4/15/24   BBB-     192,850  
  430    
Federative Republic of Brazil
   11.000%   8/17/40   BBB-     580,500  
  40  BRL  
National Treasury Note of Brazil
   6.000%   5/15/45   Baa3     414,321  
  1,100  BRL  
RBS Zero Hora Editora Jornalistica S.A., 144A
   11.250%   6/15/17   BB     504,487  
  150    
Telemar Norte Leste SA, 144A
   9.500%   4/23/19   Baa2     180,000  
 
       
Total Brazil
                 4,294,114  
         
 
 
                    
 
Cayman Islands – 0.4%
 
 
                    
  275    
CSN Island XI Corporation, 144A, WI/DD
   6.870%   9/21/19   BB+     278,094  
  565    
Hutchison Whampoa Limited, 144A
   5.750%   9/11/19   A-     570,550  
  70    
Vale Overseas Limited
   5.625%   9/15/19   BBB+     71,552  
 
 
Total Cayman Islands
                 920,196  
         
 
 
                    
 
Chile – 0.8%
 
 
                    
  275    
Celulosa Arauco Y Constitucion, 144A
   7.250%   7/29/19   BBB     303,867  
  450    
Coporacion Nacional del Cobre de Chile, Reg S
   5.625%   9/21/35   A1     434,830  
  935    
Empresa Nacional Del Petroleo Reg S
   6.750%   11/15/12   A3     1,026,144  
  55    
Empresa Nacional del Petroleo, 144A
   4.875%   3/15/14   A3     57,350  
 
 
Total Chile
                 1,822,191  
         
 
 
                    
 
Colombia – 1.6%
 
 
                    
  743,000  COP  
Bogota Distrito Capital, Reg S
   9.750%   7/26/28   BBB-     354,349  
  640    
EcoPetrol SA, 144A
   7.625%   7/23/19   Baa2     704,000  
  420    
Republic of Colombia
   11.750%   2/25/20   BBB-     613,200  
  325    
Republic of Colombia
   8.125%   5/21/24   BBB-     391,625  
  1,606,000  COP  
Republic of Colombia
   9.850%   6/28/27   BB+     891,124  
  455    
Republic of Colombia
   7.375%   9/18/37   BBB-     516,425  
 
       
Total Colombia
                 3,470,723  
         
 
 
                    
 
Dominican Republic – 0.9%
 
 
                    
  1,831    
Dominican Republic, Reg S
   9.040%   1/23/18   B     1,940,580  
 
 
 
                    
 
Ecuador – 0.2%
 
 
                    
  420    
Republic of Ecuador, Reg S
   9.375%   12/15/15   CCC+     367,500  
 
 
 
                    
 
El Salvador – 1.1%
 
 
                    
  866    
Republic of El Salvador, Reg S
   7.750%   1/24/23   Baa3     930,950  
  510    
Republic of El Salvador, Reg S
   7.625%   9/21/34   Baa3     527,850  
  810    
Republic of El Salvador, Reg S
   8.250%   4/10/32   Baa3     862,650  
 
       
Total El Salvador
                 2,321,450  
         
 
 
                    
 
Gabon – 0.9%
 
 
                    
  1,885    
Republic of Gabon, Reg S
   8.200%   12/12/17   BB-     1,979,250  
 
 
 
                    
 
Ghana – 1.1%
 
 
                    
  2,400    
Republic of Ghana, Reg S
   8.500%   10/04/17   B+     2,436,000  
 
 
 
                    
 
Indonesia – 0.7%
 
 
                    
  475    
Republic of Indonesia, 144A
   7.750%   1/17/38   Ba2     529,625  
  470    
Republic of Indonesia, Reg S
   10.375%   5/04/14   Ba2     570,319  
  100    
Republic of Indonesia, Reg S
   7.250%   4/20/15   Ba2     109,421  
  245    
Republic of Indonesia, Reg S
   7.750%   1/17/38   Ba2     273,175  
 
       
Total Indonesia
                 1,482,540  
         
 
 
                    
 
Israel – 0.3%
 
 
                    
  310    
Israel Electric Corporation Limited, 144A
   9.375%   1/28/20   BBB     385,907  
  240    
State of Israel
   5.125%   3/26/19   A1     247,095  
 
 
Total Israel
                 633,002  
         
 
 
                    
 
Kazakhstan – 1.6%
 
 
                    
  375    
Kazakhstan Temir Zholy JSC
   7.000%   5/11/16   Baa3     346,875  
  530    
KazMuniaGaz Finance Subsidiary, 144A
   11.750%   1/23/15   Baa2     629,375  
  465    
KazMuniaGaz Finance Subsidiary, 144A
   9.125%   7/02/18   Baa2     506,850  
  1,560    
KazMuniaGaz Finance Subsidiary, Reg S
   9.125%   7/02/18   Baa2     1,700,400  
  236    
Tengizchevroil LLP, 144A
   6.124%   11/15/14   Baa3     233,415  
 
 
Total Kazakhstan
                 3,416,915  
         
 
 
                    
 
Malaysia – 0.9%
 
 
                    
  950    
Penerbangan Malaysia Berhad, Reg S
   5.625%   3/15/16   A-     1,007,374  
  275    
Pertoliam Nasional Berhad, Reg S
   7.625%   10/15/26   A1     328,744  
  565    
Petronas Capital Limited, 144A
   5.250%   8/12/19   A1     575,450  
 
 
Total Malaysia
                 1,911,568  
         
 
 
                    
 
Mexico – 0.9%
 
 
                    
  80    
Banco Mercantil del Norte, Reg S
   6.135%   10/13/16   A3     77,248  
  427    
Conproca SA, Reg S
   12.000%   6/16/10   BBB+     451,463  
  240    
Corporacion GEO S.A.B. de C.V., 144A
   8.875%   9/25/14   BB-     253,200  
  2,785  MXN  
Mexico Bonos de DeSarrollo
   7.250%   12/15/16   A+     201,163  
  2,825  MXN  
Mexico Bonos de DeSarrollo
   7.750%   12/14/17   A+     208,531  
  4,500  MXN  
United Mexican States
   8.000%   12/19/13   A+     343,010  
  150,000  ITL  
United Mexican States (10)
   11.000%   5/08/17   BBB+     145,955  
  318    
United Mexican States
   6.050%   1/11/40   BBB+     318,795  
 
       
Total Mexico
                 1,999,365  
         
 
 
                    
 
Netherlands – 0.5%
 
 
                    
  454    
Intergas Finance B.V., Reg S
   6.375%   5/14/17   Baa2     413,140  
  105    
Majapahit Holdings BV, 144A
   8.000%   8/07/19   Ba2     112,612  
  380    
Majapahit Holdings BV, Reg S
   7.875%   6/28/37   BB-     381,114  
  240    
Voto Votorantim Overseas Trading Operations, 144A
   6.625%   9/25/19   BBB     240,300  
 
 
Total Netherlands
                 1,147,166  
         
 
 
                    
 
Pakistan – 0.8%
 
 
                    
  585    
Islamic Republic of Pakistan, Reg S
   7.125%   3/31/16   B-     514,688  
  580    
Islamic Republic of Pakistan, Reg S
   6.875%   6/01/17   B-     507,500  
  800    
Islamic Republic of Pakistan, Reg S
   7.875%   3/31/36   B-     612,543  
 
       
Total Pakistan
                 1,634,731  
         
 
 
                    
 
Panama – 0.2%
 
 
                    
  380    
Republic of Panama
   7.250%   3/15/15   BB+     436,050  
 
 
 
                    
 
Peru – 0.8%
 
 
                    
  285    
Republic of Peru
   9.875%   2/06/15   BBB-     362,805  
  485    
Republic of Peru
   7.350%   7/21/25   BBB-     568,663  
  605    
Republic of Peru
   8.750%   11/21/33   BBB-     810,700  
  70    
Republic of Peru
   6.550%   3/14/37   BBB-     76,300  
 
       
Total Peru
                 1,818,468  
         
 
 
                    
 
Philippines – 0.7%
 
 
                    
  660    
National Power Corporation
   9.625%   5/15/28   BB-     778,800  
  435  EUR  
Republic of the Philippines
   6.250%   3/15/16   BB-     647,060  
 
 
Total Philippines
                 1,425,860  
         
 
 
                    
 
Poland – 0.7%
 
 
                    
  175    
Republic of Poland
   5.250%   1/15/14   A2     187,469  
  1,090    
Republic of Poland
   5.000%   10/19/15   A2     1,150,890  
  185    
Republic of Poland
   6.375%   7/15/19   A2     208,758  
 
       
Total Poland
                 1,547,117  
         
 
 
                    
 
Qatar – 0.3%
 
 
                    
  575    
Ras Laffan Liquified Natural Gas II, Reg S
   5.298%   9/30/20   Aa2     580,175  
 
 
 
                    
 
Russian Federation – 1.2%
 
 
                    
  310    
Alrosa Finance SA, Reg S
   8.875%   11/17/14   Ba3     304,963  
  635    
Gaz Capital SA, 144A
   9.250%   4/23/19   Baa1     708,819  
  165    
Gaz Capital SA, Reg S
   8.625%   4/28/34   Baa1     181,434  
  260    
Gaz Capital SA, Reg S
   6.212%   11/22/16   Baa1     252,096  
  125    
Russian Agricultural Bank, 144A
   9.000%   6/11/14   Baa1     137,600  
  639    
Russian Federation, Reg S
   7.500%   3/31/30   BBB     715,208  
  355    
VTB Capital SA, Series, Reg S
   6.250%   6/30/35   Baa1     338,336  
 
 
Total Russian Federation
                 2,638,456  
         
 
 
                    
 
Serbia – 1.3%
 
 
                    
  1,375    
Republic of Serbia, 144A
   3.750%   11/01/24   BB-     1,354,375  
  1,450    
Republic of Serbia, Reg S
   3.750%   11/01/24   BB-     1,442,750  
 
       
Total Serbia
                 2,797,125  
         
 
 
                    
 
South Africa – 1.4%
 
 
                    
  1,275    
Republic of South Africa
   7.375%   4/25/12   A3     1,405,688  
  360    
Republic of South Africa
   6.500%   6/02/14   A3     396,000  
  1,050    
Republic of South Africa
   6.875%   5/27/19   A3     1,176,000  
 
       
Total South Africa
                 2,977,688  
         
 
 
                    
 
South Korea – 0.3%
 
 
                    
  505    
Republic of Korea
   5.750%   4/16/14   A     545,625  
 
 
 
                    
 
Trinidad – 0.1%
 
 
                    
  185    
Petroleum Company of Trinidad & Tobago Limited, 144A
   9.750%   8/14/19   BBB     210,438  
 
 
 
                    
 
Tunisia – 0.4%
 
 
                    
  715    
Banque de Tunisie
   7.375%   4/25/12   BBB     790,075  
  110  EUR  
Banque de Tunisie, Reg S
   4.500%   6/22/20   BBB     153,725  
 
       
Total Tunisia
                 943,800  
         
 
 
                    
 
Turkey – 0.7%
 
 
                    
  150    
Republic of Turkey, Government Bond
   9.500%   1/15/14   BB-     176,820  
  135    
Republic of Turkey, Government Bond
   7.250%   3/15/15   BB-     147,825  
  565    
Republic of Turkey, Government Bond
   7.250%   3/05/38   BB-     590,425  
  719  TRY  
Republic of Turkey
   12.000%   8/14/13   BB     610,069  
 
       
Total Turkey
                 1,525,139  
         
 
 
                    
 
Ukraine – 0.7%
 
 
                    
  985    
Republic of Ukraine, Reg S
   6.875%   3/04/11   B2     923,536  
  595  EUR  
Republic of Ukraine, Reg S
   4.950%   10/13/15   B2     642,223  
 
       
Total Ukraine
                 1,565,759  
         
 
 
                    
 
United Arab Emirates – 0.4%
 
 
                    
  750    
Emirate of Abu Dhabi, 144A
   5.500%   4/08/14   AA     799,809  
 
 
 
                    
 
Uruguay – 1.2%
 
 
                    
  9,707  UYU  
Republic of Uruguay
   5.000%   9/14/18   BB-     461,656  
  795    
Republic of Uruguay
   8.000%   11/18/22   BB     894,375  
  130    
Republic of Uruguay
   6.875%   9/28/25   BB     133,965  
  1,102    
Republic of Uruguay
   7.625%   3/21/36   BB     1,167,752  
 
       
Total Uruguay
                 2,657,748  
         
 
 
                    
 
Venezuela – 1.1%
 
 
                    
  180    
Petróleos de Venezuela SA, Reg S
   5.375%   4/12/27   B+     86,400  
  385    
Republic of Venezuela, Reg S
   9.250%   5/07/28   BB-     294,910  
  210    
Republic of Venezuela
   13.625%   8/15/18   BB-     217,350  
  250    
Republic of Venezuela
   7.650%   4/21/25   B     166,250  
  925    
Republic of Venezuela
   9.250%   9/15/27   BB-     749,250  
  395    
Republic of Venezuela
   9.375%   1/13/34   BB-     306,125  
  955    
Republic of Venezuela, Reg S
   7.000%   3/31/38   BB-     587,325  
 
       
Total Venezuela
                 2,407,610  
   
       
Total Emerging Markets Debt and Foreign Corporate Bonds (cost $52,726,922)
         60,005,610  
   
                             
Principal                        
Amount (000)     Description (1)   Coupon   Maturity       Value  
 
 
 
                    
        Short-Term Investments – 2.5% (1.9% of Total Investments)
 
 
                    
$ 5,450    
Repurchase Agreement with Fixed Income Clearing Corporation, dated 9/30/09, repurchase price $5,449,659, collateralized by $5,395,000 U.S. Treasury Notes, 3.625%, due 8/15/19, value $5,563,594
   0.010%   10/01/09       $ 5,449,657  
   
       
Total Short-Term Investments (cost $5,449,657)
                 5,449,657  
   
 
Total Investments (cost $271,129,121) – 130.3%
                 281,247,704  
   
 
Borrowings – (30.1)% (9)
                 (65,000,000 )
   
 
Other Assets Less Liabilities – (0.2)%
                 (405,966 )
   
 
Net Assets Applicable to Common Shares – 100%
               $ 215,841,738  
   
Investments in Derivatives
Forward Foreign Currency Exchange Contracts outstanding at September 30, 2009:
                                         
                                    Unrealized  
                                    Appreciation  
    Amount     In Exchange For     Amount     Settlement     (Depreciation)  
Currency Contracts to Deliver   (Local Currency)     Currency     (Local Currency)     Date     (U.S. Dollars)  
 
Brazilian Real
     2,253,000     U.S. Dollar     1,212,725       12/16/09     $ (43,073 )
Brazilian Real
     120,000     U.S. Dollar     64,812       12/16/09       (2,074 )
Colombian Peso
     2,284,013,000     U.S. Dollar     1,189,342       10/28/09       2,445  
Euro
     1,779,000     U.S. Dollar     2,590,108       12/16/09       (12,982 )
Euro
     206,000     U.S. Dollar     300,352       12/16/09       (1,074 )
Euro
     100,000     U.S. Dollar     147,232       12/16/09       909  
Euro
     95,000     U.S. Dollar     138,321       12/16/09       (686 )
Mexican Peso
     3,237,000     U.S. Dollar     235,795       12/16/09       (1,571 )
Turkish Lira
     815,000     U.S. Dollar     532,377       12/16/09       (9,632 )
Turkish Lira
     75,000     U.S. Dollar     50,047       12/16/09       169  
Ukraine Hryvna
     1,261,000     U.S. Dollar     120,095       7/22/10       (8,810 )
U.S. Dollar
     37,193     Ghana Cedi     62,000       1/25/10       3,262  
U.S. Dollar
     19,713     Ghana Cedi     33,000       1/25/10       1,819  
U.S. Dollar
     18,530     Ghana Cedi     31,000       1/25/10       1,698  
U.S. Dollar
     24,478     Ghana Cedi     41,000       1/25/10       2,275  
U.S. Dollar
     25,237     Ghana Cedi     40,000       1/25/10       863  
U.S. Dollar
     567,789     Israeli Shekel     2,135,000       12/16/09       (698 )
U.S. Dollar
     65,675     Mexican Peso     890,000       12/16/09       (412 )
U.S. Dollar
     281,808     Polish Zloty     835,000       12/16/09       7,513  
U.S. Dollar
     105,100     Ukraine Hryvna     1,051,000       7/22/10       2,338  
U.S. Dollar
     105,034     Ukraine Hryvna     1,050,341       7/22/10       2,337  
U.S. Dollar
     248,705     Yuan Renminbi     1,680,000       2/22/10       (2,830 )
U.S. Dollar
     255,804     Yuan Renminbi     1,719,000       9/28/10       (3,597 )
U.S. Dollar
     994,877     Yuan Renminbi     6,681,000       9/28/10       (14,658 )
Yuan Renminbi
     1,680,000     U.S. Dollar     239,658       2/22/10       (6,218 )
 
 
                                   $ (82,687 )
 
Fair Value Measurements
In determining the value of the Fund’s investments various inputs are used. These inputs are 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 methodology 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, 2009:
                                 
    Level 1     Level 2     Level 3     Total  
 
Investments:
                                
Common Stocks*
   $ 73,079,124     $ 1,473,198     $ —     $ 74,552,322  
REIT Common Stocks
     61,852,499       —       —       61,852,499  
Preferred Securities**
     —       1,545,469       —       1,545,469  
Variable Rate Senior Loan Interests
     —       77,842,147       —       77,842,147  
Emerging Markets Debt and Foreign Corporate Bonds
     —       60,005,610       —       60,005,610  
Short-Term Investments
     5,449,657       —       —       5,449,657  
Derivatives:
                                
Forward Foreign Currency Exchange Contracts***
     —       (82,687 )     —       (82,687 )
 
 
Total
   $ 140,381,280     $ 140,783,737     $ —     $ 281,165,017  
 
*    Refer to the Fund’s Portfolio of Investments for industry breakdown of Common Stocks classified as Level 2.
**   Preferred Securities includes Convertible Preferred Securities, $25 Par (or similar) Preferred Securities and Capital Preferred Securities held by the fund at the end of the reporting period, if any.
*** Represents net unrealized appreciation (depreciation).
The following is a reconciliation of the Fund’s Level 3 investments held at the beginning and end of the measurement period:
         
    Level 3  
    Investments  
 
Balance at beginning of period
   $ 1,269,746  
Gains (losses):
        
Net realized gains (losses)
     119,001  
Net change in unrealized appreciation (depreciation)
     528,925  
Net purchases at cost (sales at proceeds)
     (221,400 )
Net discounts (premiums)
     4,128  
Net transfers in to (out of) at end of period fair value
     (1,700,400 )
 
        
 
Balance at end of period
   $ —  
 
Derivative Instruments and Hedging Activities
During the current fiscal period, the Fund adopted amendments to authoritative guidance under GAAP on disclosures about derivative instruments and hedging activities. This guidance is intended to enhance financial statement disclosures for derivative instruments and hedging activities and enable investors to understand: a) how and why a fund uses derivative instruments; b) how derivative instruments are accounted for; and c) how derivative instruments affect a fund’s financial position, results of operations and cash flows, if any. 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, under this guidance they are considered to be non-hedge transactions for financial reporting purposes.
The table below presents the fair value of all derivative instruments held by the Fund as of September 30, 2009, the location of these instruments on the Statement of Assets and Liabilities, and the primary underlying risk exposure.
                             
        Location on the Statement of Assets and Liabilities
        Asset Derivatives   Liability Derivatives
Underlying   Derivative                
Risk Exposure   Instrument   Location   Value     Location   Value  
 
Foreign Currency Exchange Rate
   Forward Foreign Currency Exchange Contracts   Unrealized appreciation on forward foreign currency exchange contracts   $ 25,628     Unrealized depreciation on forward foreign currency exchange contracts   $ 108,315  
 
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 treatment of paydown gains and losses, recognition of premium amortization, recognition of income on REIT investments 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, 2009, the cost of investments was $272,762,628.
Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 2009, were as follows:
         
 
Gross unrealized:
        
Appreciation
   $ 29,236,887  
Depreciation
     (20,751,811 )
 
        
 
Net unrealized appreciation (depreciation) of investments
   $ 8,485,076  
 
     
 (1)  
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
   
 
 (2)  
Ratings: Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be below investment grade.
   
 
 (3)  
Senior Loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a Borrower to prepay, prepayments of Senior Loans may occur. As a result, the actual remaining maturity of Senior Loans held may be substantially less than the stated maturities shown.
   
 
 (4)  
Senior Loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate plus an assigned fixed rate. These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate (“LIBOR”), or (ii) the prime rate offered by one or more major United States banks.
   
 
   
Senior Loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the Agent Bank and/or Borrower prior to the disposition of a Senior Loan.
   
 
 (5)  
At or subsequent to September 30, 2009, this issue was under the protection of the Federal Bankruptcy Court.
   
 
 (6)  
Non-income producing; denotes that the issuer has defaulted on the payment of principal or interest.
   
 
 (7)  
Principal Amount (000) denominated in U.S. Dollars, unless otherwise noted.
   
 
 (8)  
For fair value measurement disclosure purposes, Common Stock categorized as Level 2.
   
 
 (9)  
Borrowings as a percentage of Total Investments is 23.17%.
   
 
 (10)  
Market of issuance for this investment is Euro. Euro par equals 77,469.
   
 
N/R  
Not rated.
   
 
DDI  
Investment or portion of investment purchased on a delayed delivery basis.
   
 
WI/DD  
Purchased on a when-issued or delayed delivery basis.
   
 
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.
   
 
Reg S  
Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States.
   
 
BRL  
Brazilian Real
   
 
COP  
Colombian Peso
   
 
EUR  
Euro
   
 
ITL  
Italian Lira
   
 
MXN  
Mexican Peso
   
 
TRY  
Turkish New Lira
   
 
UYU  
Uruguayan Peso

 

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 Diversified Dividend and Income Fund
         
     
By (Signature and Title)  /s/ Kevin J. McCarthy    
  Kevin J. McCarthy  
  Vice President and Secretary   
 
Date November 27, 2009
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 27, 2009
         
     
By (Signature and Title)  /s/ Stephen D. Foy    
  Stephen D. Foy   
  Vice President and Controller (principal financial officer)   
 
Date November 27, 2009