Disclaimer: I do not own a Nexus. So the answer does come from internet sources (XDA).
As per this thread these are some of the responses from the owners which indicates that the Portable Wi-Fi Hotspot settings is indeed present in the settings.
- The option for hotspot tether is there both before and after the system update.
- Nexus 7 FHD LTE with T-Mobile sim has Tethering & Hotspot available but not with newly activated AT&T data plan sim. The Tethering feature disappeared in setting. When I re-insert T-Mobile sim that comes with the tablet, the mobile hotspot is available again in the settings.
So, it is safe to assume, only if your carrier allows tethering or you have a tethering plan the option will appear in the settings menu.