##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2007
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934.
 For the transition period from  to
 Commission file number 1-11123
 NUVEEN INVESTMENTS, INC.
  Delaware
    
    36-3817266(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)333 West Wacker Drive, Chicago, Illinois
(Address of principal executive offices)
    
    60606
(Zip Code)
 (312) 917-7700
 No Changes
 þ o
  þ o o
 o þ




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##### 



NUVEEN INVESTMENTS, INC.
 TABLE OF CONTENTS
 Page No.PART I. FINANCIAL INFORMATIONItem 1. Financial StatementsConsolidated Balance Sheets (Unaudited),
March 31, 2007 and December 31, 2006
    
    
    3Consolidated Statements of Income (Unaudited),
Three Months Ended March 31, 2007 and 2006
    
    
    4Consolidated Statement of Changes in Common Stockholders
Equity (Unaudited), Three Months Ended March 31, 2007
    
    
    5Consolidated Statements of Cash Flows (Unaudited),
Three Months Ended March 31, 2007 and 2006
    
    
    6Notes to Consolidated Financial Statements
(Unaudited)
    
    
    7Item 2.Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    
    12Item 3.Quantitative and Qualitative Disclosures About Market Risk
    
    
    22Item 4.Controls and Procedures
    
    
    23PART II. OTHER INFORMATIONItem 1 through Item 6
    
    
    24Signatures
    
    
    26Form of Restricted Stock Unit AgreementCertification of Chief Executive Officer Pursuant to Rule 13a-14(a)Certification of President Pursuant to Rule 13a-14(a)Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350Certification of President Pursuant to 18 U.S.C. Section 1350Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350




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##### Table of Contents



PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 NUVEEN INVESTMENTS, INC.
 
 Consolidated Balance Sheets
Unaudited
(in thousands, except share data)
 March 31,
    
    
    December 31,2007
    
    
    2006ASSETSCash and cash equivalents
    
    $
    106,903
    
    
    $
    223,168Management and distribution fees receivable
    
    
    89,413
    
    
    
    87,239Other receivables
    
    
    47,481
    
    
    
    23,481Furniture, equipment, and leasehold improvements, at cost less accumulated depreciation
and amortization of $69,521 and $67,973, respectively
    
    
    36,482
    
    
    
    33,454Investments
    
    
    141,723
    
    
    
    129,099Goodwill
    
    
    656,785
    
    
    
    634,290Other intangible assets, at cost less accumulated amortization of $29,193 and $27,226, respectively
    
    
    65,407
    
    
    
    67,374Current taxes receivable
    
    
    
    
    
    
    4,007Other assets
    
    
    21,509
    
    
    
    25,660$
    1,165,703
    
    
    $
    1,227,772LIABILITIES AND STOCKHOLDERS EQUITYShort-Term Obligations:Notes payable
    
    $
    50,000
    
    
    $
    100,000Accounts payable
    
    
    13,203
    
    
    
    13,474Current taxes payable
    
    
    12,930
    
    
    
    Accrued compensation and other expenses
    
    
    41,244
    
    
    
    120,842Other short-term liabilities
    
    
    49,838
    
    
    
    24,962Total Short-Term Obligations
    
    
    167,215
    
    
    
    259,278Long-Term Obligations:Senior term notes
    
    $
    544,708
    
    
    $
    544,504Deferred compensation
    
    
    43,971
    
    
    
    41,578Deferred income tax liability, net
    
    
    20,820
    
    
    
    23,280Other long-term liabilities
    
    
    25,272
    
    
    
    23,444Total Long-Term Obligations
    
    
    634,771
    
    
    
    632,806Total Liabilities
    
    
    801,986
    
    
    
    892,084Minority interest
    
    
    41,434
    
    
    
    44,969Common stockholders equity:Class A Common stock, $0.01 par value; 160,000,000 shares authorized;120,911,480 shares issued at March 31, 2007 and December 31, 2006
    
    
    1,209
    
    
    
    1,209Additional paid-in capital
    
    
    291,159
    
    
    
    276,479Retained earnings
    
    
    1,127,034
    
    
    
    1,091,136Unamortized cost of restricted stock awards
    
    
    (35,111
    )
    
    
    (21,796
    )Accumulated other comprehensive income/(loss)
    
    
    (1,128
    )
    
    
    (1,141
    )1,383,163
    
    
    
    1,345,887Less common stock held in treasury, at cost (41,693,919 and 42,096,405 shares, respectively)
    
    
    (1,060,880
    )
    
    
    (1,055,168
    )Total common stockholders equity
    
    
    322,283
    
    
    
    290,719$
    1,165,703
    
    
    $
    1,227,772
 See accompanying notes to consolidated financial statements.
 3




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NUVEEN INVESTMENTS, INC.
 
 Consolidated Statements of Income
Unaudited
(in thousands, except per share data)
 Three Months EndedMarch 31,2007
    
    
    2006Operating revenues:Investment advisory fees from assets under management
    
    $
    189,716
    
    
    $
    156,274Product distribution
    
    
    1,422
    
    
    
    1,237Performance fees / other revenue
    
    
    5,689
    
    
    
    2,635Total operating revenues
    
    
    196,827
    
    
    
    160,146Operating expenses:Compensation and benefits
    
    
    73,475
    
    
    
    53,821Advertising and promotional costs
    
    
    3,391
    
    
    
    2,670Occupancy and equipment costs
    
    
    6,741
    
    
    
    5,931Amortization of intangible assets
    
    
    1,967
    
    
    
    1,673Travel and entertainment
    
    
    2,185
    
    
    
    2,108Outside and professional services
    
    
    8,005
    
    
    
    7,144Minority interest expense
    
    
    2,335
    
    
    
    1,481Other operating expenses
    
    
    7,673
    
    
    
    5,758Total operating expenses
    
    
    105,772
    
    
    
    80,586Other income/(expense)
    
    
    1,314
    
    
    
    2,329Net interest expense
    
    
    (5,906
    )
    
    
    (8,345
    )Income before taxes
    
    
    86,463
    
    
    
    73,544Income taxes
    
    
    34,153
    
    
    
    28,682Net income
    
    $
    52,310
    
    
    $
    44,862Average common and common equivalent shares outstanding:Basic
    
    
    77,965
    
    
    
    77,804Diluted
    
    
    83,370
    
    
    
    83,044Earnings per common share:Basic
    
    $
    0.67
    
    
    $
    0.58Diluted
    
    $
    0.63
    
    
    $
    0.54
 See accompanying notes to consolidated financial statements.
 4




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NUVEEN INVESTMENTS, INC.
 
 Consolidated Statement of Changes in Common Stockholders Equity
 Unaudited
 (in thousands)
 Unamortized
    
    
    AccumulatedClass A
    
    
    Additional
    
    
    
    
    
    
    Cost of
    
    
    OtherCommon
    
    
    Paid-In
    
    
    Retained
    
    
    Restricted
    
    
    Comprehensive
    
    
    TreasuryStock
    
    
    Capital
    
    
    Earnings
    
    
    Stock Awards
    
    
    Income/(Loss)
    
    
    Stock
    
    
    TotalBalance at December 31, 2006
    
    $
    1,209
    
    
    $
    276,479
    
    
    $
    1,091,136
    
    
    $
    (21,796
    )
    
    $
    (1,141
    )
    
    $
    (1,055,168
    )
    
    $
    290,719Change in accounting principle
(see Note 1)
    
    
    
    
    
    
    
    
    
    
    (903
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (903
    )Balance at December 31, 2006, as restated
    
    
    1,209
    
    
    
    276,479
    
    
    
    1,090,233
    
    
    
    (21,796
    )
    
    
    (1,141
    )
    
    
    (1,055,168
    )
    
    
    289,816Net income
    
    
    
    
    
    
    
    
    
    
    52,310
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    52,310Cash dividends paid
    
    
    
    
    
    
    
    
    
    
    (18,988
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (18,988
    )Purchase of treasury stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (31,836
    )
    
    
    (31,836
    )Compensation expense on options
    
    
    
    
    
    
    4,308
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,308Exercise of stock options
    
    
    
    
    
    
    (2,993
    )
    
    
    1,362
    
    
    
    
    
    
    
    
    
    
    
    17,911
    
    
    
    16,280Grant of restricted stock
    
    
    
    
    
    
    6,889
    
    
    
    2,117
    
    
    
    (17,598
    )
    
    
    
    
    
    
    8,592
    
    
    
    Forfeit of restricted stock
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    379
    
    
    
    
    
    
    
    (379
    )
    
    
    Amortization of restricted
stock awards
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,904
    
    
    
    
    
    
    
    
    
    
    
    3,904Tax effect of options exercised
    
    
    
    
    
    
    6,476
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,476Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13
    
    
    
    
    
    
    
    13Balance at March 31, 2007
    
    $
    1,209
    
    
    $
    291,159
    
    
    $
    1,127,034
    
    
    $
    (35,111
    )
    
    $
    (1,128
    )
    
    $
    (1,060,880
    )
    
    $
    322,283
 Three MonthsComprehensive Income (in 000s):
    
    Ending 3/31/07Net income
    
    $
    52,310Other comprehensive income:Unrealized gains/(losses) on marketable equity securities, net
of tax
    
    
    96Reclassification adjustments for realized (gains)/losses
    
    
    (81
    )Amortization of terminated cash flow hedge, net of tax
    
    
    (38
    )Funded status of qualified pension plan, net of tax
    
    
    37Foreign currency translation adjustment
    
    
    (1
    )Subtotal: other comprehensive income
    
    
    13Comprehensive Income
    
    $
    52,323
 Three MonthsChange in Shares Outstanding (in 000s):
    
    Ending 3/31/07Shares outstanding at the beginning of the
year
    
    
    78,815Shares issued under equity incentive plans
    
    
    1,052Shares acquired
    
    
    (641
    )Forfeit of restricted stock
    
    
    (8
    )Shares outstanding at March 31, 2007
    
    
    79,218
 See accompanying notes to consolidated financial statements.
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NUVEEN INVESTMENTS, INC.
 
 Consolidated Statements of Cash Flows
Unaudited
(in thousands)
 Three Months Ended March 31,2007
    
    
    2006Cash flows from operating activities:Net income
    
    $
    52,310
    
    
    $
    44,862Adjustments to reconcile net income to net cash
provided from operating activities:Deferred income taxes
    
    
    (2,651
    )
    
    
    1,272Depreciation of office property and equipment
    
    
    2,667
    
    
    
    2,318Amortization of intangible assets
    
    
    1,967
    
    
    
    1,673Amortization of debt related costs, net
    
    
    142
    
    
    
    132Compensation expense for equity plans
    
    
    11,689
    
    
    
    8,583Net (increase) decrease in assets:Management and distribution fees receivable
    
    
    (2,174
    )
    
    
    (3,353
    )Other receivables
    
    
    450
    
    
    
    4,534Other assets
    
    
    4,150
    
    
    
    (4,718
    )Net increase (decrease) in liabilities:Accrued compensation and other expenses
    
    
    (78,447
    )
    
    
    (59,323
    )Deferred compensation
    
    
    2,393
    
    
    
    2,775Accounts payable
    
    
    (271
    )
    
    
    (342
    )Current taxes payable
    
    
    16,937
    
    
    
    14,063Other liabilities
    
    
    (3,304
    )
    
    
    (5,873
    )Other
    
    
    (1,211
    )
    
    
    (2,642
    )Net cash provided from operating activities
    
    
    4,647
    
    
    
    3,961Cash flows from financing activities:Repayment of notes payable
    
    
    (50,000
    )
    
    
    Dividends paid
    
    
    (18,988
    )
    
    
    (16,549
    )Proceeds from stock options exercised
    
    
    16,280
    
    
    
    29,035Acquisition of treasury stock
    
    
    (31,836
    )
    
    
    (3,726
    )Net deferred debt issuance related items
    
    
    
    
    
    
    50Tax effect of options and restricted stock
    
    
    6,476
    
    
    
    8,810Net cash provided from/(used for) financing activities
    
    
    (78,068
    )
    
    
    17,620Cash flows from investing activities:Purchase of office property and equipment
    
    
    (5,763
    )
    
    
    (2,095
    )Proceeds from sales of investment securities
    
    
    356
    
    
    
    7,722Purchases of investment securities
    
    
    (13,183
    )
    
    
    (11,814
    )Repurchase of NWQ minority members interests
    
    
    (22,500
    )
    
    
    (22,500
    )Net change in consolidated mutual funds
    
    
    (1,514
    )
    
    
    682Other
    
    
    (239
    )
    
    
    (33
    )Net cash used for investing activities
    
    
    (42,843
    )
    
    
    (28,038
    )Effect of exchange rates on cash and cash equivalents
    
    
    (1
    )
    
    
    Increase/(decrease) in cash and cash equivalents
    
    
    (116,265
    )
    
    
    (6,457
    )Cash and cash equivalents:Beginning of year
    
    
    223,168
    
    
    
    128,933End of period
    
    $
    106,903
    
    
    $
    122,476Supplemental Information:Taxes paid
    
    $
    13,391
    
    
    $
    6,565Interest paid
    
    $
    16,422
    
    
    $
    16,570
 See accompanying notes to consolidated financial statements.
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NUVEEN INVESTMENTS, INC.
 
 Notes to Consolidated Financial Statements
(Unaudited)
March 31, 2007
 Note 1  Basis of Presentation
     7




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Note 2  Per Common Share
  For the three months endedMarch 31, 2007
    
    
    March 31, 2006In thousands,
    
    
    Net
    
    
    
    
    
    Per-share
    
    
    Net
    
    
    
    
    
    Per-shareexcept per share data
    
    
    income
    
    Shares
    
    amount
    
    
    income
    
    Shares
    
    amountBasic EPS
    
    
    $
    52,310
    
    
    
    77,965
    
    
    $
    0.67
    
    
    
    $
    44,862
    
    
    
    77,804
    
    
    $
    0.58Dilutive effect of:Restricted stock
    
    
    
    
    
    
    
    888
    
    
    
    
    
    
    
    
    
    
    
    
    454Employee
stock options
    
    
    
    
    
    
    
    4,517
    
    
    
    
    
    
    
    
    
    
    
    
    4,786Diluted EPS
    
    
    $
    52,310
    
    
    
    83,370
    
    
    $
    0.63
    
    
    
    $
    44,862
    
    
    
    83,044
    
    
    $
    0.54
  Note 3  Net Capital Requirement
  Note 4  Goodwill and Intangible Assets
  Balance at December 31, 2006
    
    $
    634,290Repurchase of NWQ minority interests
    
    
    22,500Santa Barbara acquisition costs  final bill
    
    
    (5
    )Balance at March 31, 2007
    
    $
    656,785
  8




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At March 31, 2007
    
    
    At December 31, 2006Gross
    
    
    
    
    
    
    GrossCarrying
    
    
    Accumulated
    
    
    Carrying
    
    
    AccumulatedAmortizable Intangible Assets
    
    Amount
    
    
    Amortization
    
    
    Amount
    
    
    AmortizationSymphony customer relationships
    
    $
    43,800
    
    
    $
    12,669
    
    
    $
    43,800
    
    
    $
    12,113NWQ customer
relationships
    
    
    22,900
    
    
    
    11,874
    
    
    
    22,900
    
    
    
    11,238SBAM -Customer relationships
    
    
    26,200
    
    
    
    4,367
    
    
    
    26,200
    
    
    
    3,639Trademark / tradename
    
    
    1,700
    
    
    
    283
    
    
    
    1,700
    
    
    
    236Total
    
    $
    94,600
    
    
    $
    29,193
    
    
    $
    94,600
    
    
    $
    27,226
  Note 5  Debt
  March 31, 2007
    
    December 31, 2006Short-Term Obligations:Notes payable
    
    $
    50,000
    
    
    $
    100,000Long-Term Obligations:Senior Term Notes:Senior term notes  5 Year
    
    $
    250,000
    
    
    $
    250,000Net unamortized discount  5 year notes
    
    
    (496
    )
    
    
    (528
    )Senior term notes  10 Year
    
    
    300,000
    
    
    
    300,000Net unamortized discount  10 year notes
    
    
    (1,324
    )
    
    
    (1,354
    )Net unamortized debt issuance costs
    
    
    (3,472
    )
    
    
    (3,614
    )subtotal
    
    $
    544,708
    
    
    $
    544,504Total
    
    $
    594,708
    
    
    $
    644,504
 Senior Term Notes
  9




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Senior Revolving Credit Facility
  Other
  Note 6  Derivative Financial Instruments
   10




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Note 7  Retirement Plans
  Three Months
    
    
    Three MonthsEnded March 31, 2007
    
    
    Ended March 31, 2006Total
    
    
    Post-
    
    
    Total
    
    
    Post-Pension
    
    
    Retirement
    
    
    Pension
    
    
    RetirementService Cost
    
    $
    471,631
    
    
    $
    79,382
    
    
    $
    436,250
    
    
    $
    60,000Interest Cost
    
    
    570,673
    
    
    
    141,367
    
    
    
    522,250
    
    
    
    145,250Expected Return on Assets
    
    
    (573,318
    )
    
    
    
    
    
    
    (561,750
    )
    
    
    Amortization of:Unrecognized Prior
Service Cost
    
    
    (652
    )
    
    
    (66,308
    )
    
    
    
    
    
    
    (66,250
    )Unrecognized (Gain)/Loss
    
    
    68,900
    
    
    
    20,235
    
    
    
    106,250
    
    
    
    29,250Total
    
    $
    537,234
    
    
    $
    174,676
    
    
    $
    503,000
    
    
    $
    168,250
  Note 8  Gain Contingency
  Note 9  Subsequent Event
  11




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##### Table of Contents



Part I. FINANCIAL INFORMATION
 
 Item 2. Managements Discussion and Analysis of Financial Condition
 and Results of Operations
 March 31, 2007
 Description of the Business
      12




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Recent Events
  Summary of Operating Results
  Financial Results Summary
Company Operating Statistics  (in millions, except per share amounts)
 Quarter ended March 31,
    
    
    2007
    
    
    2006
    
    
    % changeGross sales of investment products
    
    
    $
    8,134
    
    
    
    $
    10,109
    
    
    
    
    (20
    )%Net flows of investment products
    
    
    
    3,033
    
    
    
    
    5,903
    
    
    
    
    (49
    )Assets under management(1) (2)
    
    
    
    166,095
    
    
    
    
    145,017
    
    
    
    
    15Operating revenues
    
    
    
    196.8
    
    
    
    
    160.1
    
    
    
    
    23Operating expenses
    
    
    
    105.8
    
    
    
    
    80.6
    
    
    
    
    31Net interest expense
    
    
    
    5.9
    
    
    
    
    8.3
    
    
    
    
    (29
    )Income taxes
    
    
    
    34.2
    
    
    
    
    28.7
    
    
    
    
    19Net income
    
    
    
    52.3
    
    
    
    
    44.9
    
    
    
    
    17Basic earnings per share
    
    
    
    .67
    
    
    
    
    .58
    
    
    
    
    16Diluted earnings per share
    
    
    
    .63
    
    
    
    
    .54
    
    
    
    
    17Dividends per share
    
    
    
    .24
    
    
    
    
    .21
    
    
    
    
    14
 
 (1)
    
    At period end.(2)
    
    Excludes defined portfolio assets under surveillance. 13




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Results of Operations
   Gross Investment Product Sales  (in millions)
 Quarter Ended March 31,
    
    2007
    
    
    2006Closed-End Funds
    
    $
    295
    
    
    $
    Mutual Funds
    
    
    1,682
    
    
    
    1,347Retail Managed Accounts
    
    
    2,759
    
    
    
    7,230Institutional Managed Accounts
    
    
    3,398
    
    
    
    1,532Total
    
    $
    8,134
    
    
    $
    10,109
   Net Flows  (in millions)
 Quarter Ended March 31,
    
    2007
    
    
    2006Closed-End Funds
    
    $
    316
    
    
    $
    (7
    )Mutual Funds
    
    
    1,015
    
    
    
    864Retail Managed Accounts
    
    
    (547
    )
    
    
    4,114Institutional Managed Accounts
    
    
    2,249
    
    
    
    932Total
    
    $
    3,033
    
    
    $
    5,903
  14




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Net Assets Under Management (1)  (in millions)
 March 31,
    
    
    December 31,
    
    
    March 31,2007
    
    
    2006
    
    
    2006Closed-End Funds
    
    $
    53,091
    
    
    $
    52,958
    
    
    $
    51,813Mutual Funds
    
    
    19,584
    
    
    
    18,532
    
    
    
    15,398Retail Managed Accounts
    
    
    58,713
    
    
    
    58,556
    
    
    
    53,652Institutional Managed Accounts
    
    
    34,707
    
    
    
    31,563
    
    
    
    24,154Total
    
    $
    166,095
    
    
    $
    161,609
    
    
    $
    145,017
 
 (1)
    
    Excludes defined portfolio product assets under surveillance   Net Assets Under Management (1)  (in millions)
 March 31,
    
    
    March 31,2007
    
    
    2006Quarter endedBeginning Assets Under Management
    
    $
    161,609
    
    
    $
    136,117Gross Sales
    
    
    8,134
    
    
    
    10,109Reinvested Dividends
    
    
    103
    
    
    
    63Redemptions
    
    
    (5,204
    )
    
    
    (4,269
    )Net Flows into Managed Assets
    
    
    3,033
    
    
    
    5,903Appreciation/(Depreciation)
    
    
    1,453
    
    
    
    2,997Ending Assets Under Management
    
    $
    166,095
    
    
    $
    145,017
 
 (1)
    
    Excludes defined portfolio product assets under surveillance  15




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##### Table of Contents



Investment Advisory Fees (1)  (in thousands)
 Quarter ended March 31,
    
    2007
    
    
    2006Closed-End Funds
    
    $
    63,873
    
    
    $
    61,843Mutual Funds
    
    
    26,382
    
    
    
    19,818Managed Accounts
    
    
    99,461
    
    
    
    74,613Total
    
    $
    189,716
    
    
    $
    156,274
 
 (1)
    
    Sub-advisory fee expense for the three month periods ended
March 31, 2007 and 2006 was $8.0 million and $7.0 million, respectively.   Product Distribution  (in thousands)
 Quarter ended March 31,
    
    2007
    
    
    2006Closed-End Funds
    
    $
    410
    
    
    $
    (10
    )Muni/Fund Preferred®
    
    
    1,030
    
    
    
    1,174Mutual Funds
    
    
    (18
    )
    
    
    73Total
    
    $
    1,422
    
    
    $
    1,237
 ®
 Performance Fees/Other Revenue
  16




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##### Table of Contents



Operating Expenses
  Operating Expenses  (in thousands)
 Quarter ended March 31,
    
    2007
    
    
    2006Compensation and benefits
    
    $
    73,475
    
    
    $
    53,821Advertising and promotional costs
    
    
    3,391
    
    
    
    2,670Occupancy and equipment costs
    
    
    6,741
    
    
    
    5,931Amortization of intangible assets
    
    
    1,967
    
    
    
    1,673Travel and entertainment
    
    
    2,185
    
    
    
    2,108Outside and professional services
    
    
    8,005
    
    
    
    7,144Minority interest expense
    
    
    2,335
    
    
    
    1,481Other operating expenses
    
    
    7,673
    
    
    
    5,758Total
    
    $
    105,772
    
    
    $
    80,586As a % of Operating Revenues
    
    
    53.7
    %
    
    
    50.3
    %
 Summary
  Compensation and Benefits
  Occupancy and Equipment Costs
  Amortization of Intangibles
  Outside and Professional Services
  All Other Operating Expenses
  17




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##### Table of Contents



Other Income/(Expense)
   Other Income/(Expense)  (in thousands)
 Quarter ended March 31,
    
    2007
    
    
    2006Gains/(Losses) on Investments
    
    $
    1,391
    
    
    $
    2,557Miscellaneous Income/(Expense)
    
    
    (77
    )
    
    
    (228
    )Total
    
    $
    1,314
    
    
    $
    2,329
  Net Interest Expense
  Net Interest Expense  (in thousands)
 Quarter ended March 31,
    
    2007
    
    
    2006Dividend and Interest Revenue
    
    $
    3,124
    
    
    $
    1,852Interest Expense
    
    
    (9,030
    )
    
    
    (10,197
    )Total
    
    $
    (5,906
    )
    
    $
    (8,345
    )
  Recent Accounting Pronouncements
  18




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##### Table of Contents



Capital Resources, Liquidity  and Financial Condition
  Senior Term Notes
  Senior Revolving Credit Facility
  Other
  Equity and Dividends
   19




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##### Table of Contents



th
   Broker/Dealer
  Adequacy of Liquidity
  Inflation
  20




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##### Table of Contents



Forward-Looking Information and Risks
   21




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##### Table of Contents



Part I. FINANCIAL INFORMATION
 
 Item 3. Quantitative and Qualitative Disclosures About Market Risk
 March 31, 2007
 Market Risk
  Interest Rate Sensitivity
   Equity Market Sensitivity
   22




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##### Table of Contents



Item 4. Controls and Procedures
  23




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##### Table of Contents



PART II. OTHER INFORMATION
 
 Item 1. Legal Proceedings
  Item 1A. Risk Factors
  Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
 ISSUER PURCHASES OF EQUITY SECURITIES(c) Total
    
    
    (d) MaximumNumber
    
    
    Numberof Shares
    
    
    of SharesPurchased
    
    
    that May(a) Total
    
    
    
    
    
    
    as Part of
    
    
    Yet BeNumber
    
    
    (b) Average
    
    
    a Publicly
    
    
    Purchasedof Shares
    
    
    Price Paid
    
    
    Announced
    
    
    Under thePeriod
    
    Purchased
    
    
    per Share
    
    
    Program
    
    
    ProgramShare purchases prior to January 1,
2007 under current repurchase
program(1):
    
    
    861,081
    
    
    $
    49.00
    
    
    
    861,081
    
    
    
    6,563,103January 1, 2007  January 31, 2007
    
    
    85,000
    
    
    
    49.70
    
    
    
    85,000
    
    
    
    6,478,103February 1, 2007  February 28, 2007
    
    
    345,000
    
    
    
    50.70
    
    
    
    345,000
    
    
    
    6,133,103March 1, 2007  March 31, 2007
    
    
    210,920
    
    
    
    47.99
    
    
    
    210,920
    
    
    
    5,922,183Total
    
    
    1,502,001
    
    
    $
    49.49
    
    
    
    1,502,001
    
    
    
    5,922,183
 
 (1)
    
    Excludes 18,192,843 shares repurchased from St. Paul Travelers for $32.98 per share
during 2005. Such shares were not repurchased under a Company adopted share repurchase program.
See Note 1, Summary of Significant Accounting Policies to the 2006 Form 10-K, Sale of the St.
Paul Travelers Companies, Inc.s Ownership Interest in Nuveen Investments for further information
about this repurchase.  Item 3. Defaults Upon Senior Securities
  24




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##### Table of Contents



Item 4. Submission of Matters to a Vote of Security Holders
  Item 5. Other Information
  Item 6. Exhibits
  3.1
    
    Amended and Restated By-Laws of the Company, incorporated by reference to Exhibit 3.1 to
the Companys Form 8-K filed on February 12, 2007.+10.1
    
    Nuveen Investments Employees 401K/Profit Sharing Plan as amended and restated effective
January 1, 2007, incorporated by reference to Exhibit 10.4 to the Companys Annual Report on
Form 10-K for the year ended December 31, 2006.+10.2
    
    Nuveen Investments, LLC Employees Retirement Plan, as amended and restated effective
January 1, 2007, incorporated by reference to Exhibit 10.5 to the Companys Annual Report on
Form 10-K for the year ended December 31, 2006.+10.3*
    
    Form of Restricted Stock Unit Agreement with non-employee directors regarding the Nuveen
Investments, Inc. 2005 Equity Incentive Plan.31.1*
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities
Exchange Act of 1934.31.2*
    
    Certification of President pursuant to Rule 13a-14(a) of the Securities Exchange Act of
1934.31.3*
    
    Certification of Principal Financial Officer pursuant to Rule 13a-14(a) of the
Securities Exchange Act of 1934.32.1*
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2*
    
    Certification of President pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.32.3*
    
    Certification of Principal Financial Officer pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 *
    
    filed herewith+
    
    management contracts and compensatory plans and arrangements 25




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##### Table of Contents



SIGNATURE
  NUVEEN INVESTMENTS, INC.
(Registrant)Date:May 9, 2007
    
    By
    
    /s/ Glenn R. Richter

Glenn R. RichterExecutive Vice President and Chief Administrative OfficerPrincipal Financial OfficerDate:May 9, 2007
    
    By
    
    /s/ Sherri A. Hlavacek

Sherri A. HlavacekVice President and Corporate ControllerPrincipal Accounting Officer
 26




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##### Table of Contents



EXHIBIT INDEX
 Exhibit No.
    
    Description3.1
    
    Amended and Restated By-Laws of the Company, incorporated by reference to Exhibit 3.1 to
the Companys Form 8-K filed on February 12, 2007.+10.1
    
    Nuveen Investments Employees 401K/Profit Sharing Plan as amended and restated effective
January 1, 2007, incorporated by reference to Exhibit 10.4 to the Companys Annual Report on
Form 10-K for the year ended December 31, 2006.+10.2
    
    Nuveen Investments, LLC Employees Retirement Plan, as amended and restated effective
January 1, 2007, incorporated by reference to Exhibit 10.5 to the Companys Annual Report on
Form 10-K for the year ended December 31, 2006.+10.3*
    
    Form of Restricted Stock Unit Agreement with non-employee directors regarding the Nuveen
Investments, Inc. 2005 Equity Incentive Plan.31.1*
    
    Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities
Exchange Act of 1934.31.2*
    
    Certification of President pursuant to Rule 13a-14(a) of the Securities Exchange Act of
1934.31.3*
    
    Certification of Principal Financial Officer pursuant to Rule 13a-14(a) of the
Securities Exchange Act of 1934.32.1*
    
    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.32.2*
    
    Certification of President pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.32.3*
    
    Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
 
 *
    
    filed herewith+
    
    management contracts and compensatory plans and arrangements E-1