Nuveen High Income December 2019 Target Term Fund Attracts $245 Million
11 Mai 2016 - 3:29PM
Business Wire
Nuveen Investments, an operating division of TIAA Global Asset
Management, today announced it has successfully completed the
initial public offering of the Nuveen High Income December 2019
Target Term Fund (NYSE:JHD). The new closed-end fund’s
investment objectives are to seek to provide a high level of
current income and to return the original $9.86 net asset value
(NAV) per common share on or about December 1, 2019. The fund will
seek to achieve its investment objectives by investing primarily in
shorter maturity, high-yield corporate bonds.
The fund will begin trading on the New York Stock Exchange
(NYSE) today, under the symbol JHD.
The fund raised $245 million (before deduction of the sales load
and offering expenses payable by the fund) in its common share
offering, excluding any exercise of the underwriters’ option to
purchase additional shares. If the underwriters exercise that
option in full, the fund will have raised approximately $276
million.
Nuveen Fund Advisors, LLC, a subsidiary of Nuveen Investments,
is the fund’s investment adviser, responsible for the fund’s
overall investment strategy and its implementation, including the
use of leverage. Nuveen Asset Management, an affiliate of Nuveen
Investments, is the fund’s subadviser, responsible for investing
the fund’s assets. The lead managers of the underwriting syndicate
were Morgan Stanley, RBC Capital Markets, Stifel and Nuveen
Securities.
Shares of closed-end investment companies, like the fund,
usually trade on a national stock exchange. Similar to stocks, the
fund’s share price will fluctuate with market conditions and, at
the time of sale, may be worth more or less than the original
investment. Shares of closed-end funds often trade at a discount to
their net asset value.
About Closed-End Funds
Nuveen closed-end funds have long been valued for their
potential to provide attractive income. In the search for increased
income opportunities, closed-end funds can be a smart choice.
Because of their unique closed structure, closed-end funds can use
leverage, and are generally able to invest more fully and flexibly
than other types of widely available investment vehicles. Their
higher yield potential can make them a powerful tool for optimizing
an income portfolio.
About Nuveen Investments
Nuveen provides investment solutions designed to help secure the
long-term goals of individual investors and the financial advisors
who serve them. Through the expertise and capabilities of TIAA
Global Asset Management’s high-caliber investment managers, Nuveen
is committed to providing world-class consultative services and
advice that align with client needs. Funds distributed by Nuveen
Securities, LLC, a subsidiary of Nuveen Investments, Inc. Nuveen
Investments is an operating division of TIAA Global Asset
Management. For more information, please visit the Nuveen
Investments website at www.nuveen.com.
Investors should consider the investment objectives and
policies, risk considerations, charges and expenses of the fund
carefully before investing. For a prospectus which contains this
and other information relevant to an investment in the fund, please
contact your securities representative or Nuveen Securities, LLC,
333 W. Wacker Drive, Chicago, IL 60606. Investors should read the
prospectus carefully before they invest or send money.
This document is not an offer to sell securities and is not
soliciting an offer to buy securities in any jurisdiction where the
offer or sale is not permitted.
Key Risk Considerations:
Investment and Market Risk: An investment in Common
Shares is subject to investment risk, including the possible loss
of the entire principal amount that you invest. Your investment in
Common Shares represents an indirect investment in the securities
owned by the fund. Your Common Shares at any point in time may be
worth less than your original investment, even after taking into
account the reinvestment of fund dividends and distributions.
Below Investment Grade Risk: Securities of below
investment grade quality are regarded as having speculative
characteristics with respect to the issuer’s capacity to pay
interest and repay principal, and may be subject to higher price
volatility and default risk than investment grade securities of
comparable terms and duration. Issuers of lower grade securities
may be highly leveraged and may not have available to them more
traditional methods of financing. The prices of these lower grade
securities are typically more sensitive to negative developments,
such as a decline in the issuer’s revenues or a general economic
downturn. The secondary market for lower-rated securities may not
be as liquid as the secondary market for more highly rated
securities, a factor which may have an adverse effect on the fund’s
ability to dispose of a particular security. If a
below-investment-grade security goes into default, or enters
bankruptcy, it might be difficult to sell that security in a timely
manner at any reasonable price.
Interest Rate Risk: Generally, when market interest rates
rise, bond prices fall, and vice versa. Interest rate risk is the
risk that the debt securities in the fund’s portfolio will decline
in value because of increases in market interest rates. As interest
rates decline, issuers of debt securities may prepay principal
earlier than scheduled, forcing the fund to reinvest in
lower-yielding securities and potentially reducing the fund’s
income. As interest rates increase, slower than expected principal
payments may extend the average life of securities, potentially
locking in a below-market interest rate and reducing the fund’s
value. In typical market interest rate environments, the prices of
longer-term debt securities generally fluctuate more than prices of
shorter-term debt securities as interest rates change. These risks
may be greater in the current market environment because, as of the
date of the fund’s prospectus, certain interest rates are at or
near historic lows. If the Federal Reserve raises the federal funds
rate, there is a risk that interest rates will rise, which will
likely drive down bond prices.
Derivatives Risk, including the Risk of Swaps: The fund’s
use of derivatives (including swaps) involves risks different from,
and possibly greater than, the risks associated with investing
directly in the investments underlying the derivatives. If the fund
enters into a derivative transaction, it could lose more than the
principal amount invested.
For additional detailed risk information, please refer to the
fund’s prospectus or visit the fund’s webpage at
www.nuveen.com.
Distributions: Fund distributions are expected to be sourced
entirely from net investment income.
16205-INV-O-05/17
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version on businesswire.com: http://www.businesswire.com/news/home/20160511005475/en/
Media Contact:Nuveen InvestmentsKristyna Munoz,
312-917-8343kristyna.munoz@nuveen.nom
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