NEW YORK, December 16, 2021 / PRNewswire / – Nuveen, TIAA’s global investment manager, has successfully completed the initial public offering of the Nuveen Variable Rate Preferred & Income Fund (NYSE: NPFD). The closed-end fund will begin trading on the New York Stock Exchange (NYSE) today, under the symbol NPFD.
The fund raised $ 550 million in its offering of common shares, to the exclusion of any exercise of the option of the underwriters to purchase additional shares. If the Underwriters exercise this option in full, the Fund will have raised approximately $ 633 million.
The fund seeks to provide a high level of current income and tax-efficient total return by investing primarily in investment grade preferred floating rate preferred securities and other variable rate income producing securities of high quality and highly regulated companies such as: as banks, utilities and insurance. companies. The fund provides access to the preferred retail and institutional securities markets, as well as diversification into the global US dollar denominated market, enhancing opportunities while minimizing currency risk.
“For decades, Nuveen has been at the forefront of innovation in closed-end funds while continuing to provide attractive income solutions to our investors,” said Dave Lamb, head of closed-end funds at Nuveen. “We are proud to maintain this leadership in the industry with the Nuveen Variable Rate Preferred & Income Fund.”
Nuveen is a leading provider of closed-end funds, with $ 65 billion in assets under management, and is the leading provider of closed-end funds for preferred securities, with $ 5.9 billion in assets under management1.
“There is a strong demand from investors looking for the tax-advantaged return opportunity of preferred securities,” said Doug baker, CFA, Senior Portfolio Manager for Preferred Securities Investments at Nuveen. “As a Trustee, we are excited to bring to market a closed-end fund that captures this constructive sentiment and builds on Nuveen’s track record of helping investors to create portfolios that match their investment goals. income and total return. ”
For more information, please visit the Nuveen CEF homepage www.nuveen.com/closed-end-funds or contact:
Nuveen, TIAA’s investment manager, offers a comprehensive suite of results-driven investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $ 1.2 trillion in assets under management at September 30, 2021 and operations in 27 countries. Its investment specialists offer in-depth expertise across a full range of traditional and alternative investments across a wide range of vehicles and custom strategies. For more information, please visit www.nuveen.com.
Nuveen Securities, LLC, member of FINRA and SIPC.
The information contained on the Nuveen site is not part of this press release.
Investors should carefully consider the investment objective and policies, risk considerations, fees and expenses of the fund before investing. To obtain a prospectus containing this and other information relating to an investment in the fund, please contact your securities representative or Nuveen Securities, LLC, 333 W. Wacker Drive, Chicago, Illinois 60606. Investors should read the prospectus carefully before investing or sending money. This document does not constitute an offer to sell securities and does not solicit an offer to buy securities in any jurisdiction where the offering or selling is not permitted.
Key Risk Considerations:
Risks Relating to Preferred and Hybrid Securities. Preferred securities and other subordinated securities rank lower than bonds and other debt securities in a company’s capital structure and will therefore be subject to greater credit risk than such debt securities. There are various special risks associated with investing in preferred securities, including risk of limited voting rights, risk of special redemption rights, risk of deferral and default of payment, credit risk and subordination risk. , the risk of variable and fixed to variable rate securities, liquidity risk, risk and new types of risk linked to securities.
Lower risk than investment grade. Sub-investment grade investments are considered to have speculative characteristics with respect to the issuer’s ability to pay dividends or interest and repay principal, and may be subject to price volatility and a higher risk of default than investments of superior quality of comparable duration and duration. Issuers of lower quality investments may be heavily leveraged and lack more traditional funding methods. The prices of these lower quality investments are generally more sensitive to negative developments, such as a decline in the issuer’s income or a general economic downturn. The secondary market for lower rated investments may not be as liquid as the secondary market for higher rated investments, a factor which may adversely affect the fund’s ability to sell a particular investment. If an investment of lower quality than an investment fails or its issuer goes bankrupt, it can be difficult to sell that investment in a timely manner at a reasonable price.
Risk associated with conditional equity securities or conditional convertible securities. Contingent equity securities or contingent convertible securities (sometimes referred to as “CoCos”) are hybrid securities, issued primarily by European financial institutions to meet their capital requirements, which present similar risks to debt securities and securities. convertible securities but have loss absorption mechanisms benefiting the issuer embedded on their terms. CoCos are a form of hybrid security that is intended either to be converted into equity or to depreciate their capital upon the occurrence of certain “triggers” of the loss absorption mechanism. These triggers are generally linked to regulatory capital thresholds or regulatory actions that question the viability and financial position of the issuing bank (for example, a decrease in the issuer’s capital ratio) as a as going concern. When an issuer’s capital ratio falls below a specified trigger level, or at the discretion of a regulator based on its judgment of the issuer’s solvency outlook, a CoCo may be impaired, written off. or converted into an equity security. The characteristics of share conversion or principal depreciation are tailored to the issuer and its regulatory requirements and, unlike traditional convertible securities, conversions are not voluntary and are not intended to benefit the investor.
Risk associated with concentration and the financial services sector. The preferred securities market is mainly composed of securities issued by companies in the financial services sector. Therefore, preferred securities present significantly increased risk during times of financial turmoil, which could affect financial services companies more than companies in other sectors and industries.
1 Morningstar from September 30, 2021.