Nuveen Investments, a leading global provider of investment
services to institutions as well as individual investors, today
announced it has successfully completed the initial public offering
of the Nuveen High Income December 2018 Target Term Fund (NYSE:
JHA). 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, 2018. 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 JHA.
The fund raised $261 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 $300 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, Wells Fargo Securities, 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 Investments provides high-quality investment services
designed to help secure the long-term goals of institutional and
individual investors as well as the consultants and financial
advisors who serve them. Nuveen Investments markets a wide range of
specialized investment solutions which provide investors access to
capabilities of its high-quality boutique investment
affiliates—Nuveen Asset Management, LLC, Symphony Asset Management
LLC, NWQ Investment Management Company, LLC, Santa Barbara Asset
Management, LLC, Tradewinds Global Investors, LLC, Winslow Capital
Management, LLC and Gresham Investment Management LLC, all of which
are registered investment advisers and independent investment
subsidiaries of Nuveen Investments, Inc. Funds distributed by
Nuveen Securities, LLC, a subsidiary of Nuveen Investments, Inc.
Nuveen Investments operates as a separate subsidiary within
TIAA-CREF, which is a leading provider of retirement and financial
services in the academic, research, medical and cultural fields. In
total, Nuveen Investments managed approximately $220 billion as of
September 30, 2015. 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.
12008-INV-O-11/16
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version on businesswire.com: http://www.businesswire.com/news/home/20151113005067/en/
Nuveen InvestmentsMedia Contact:Kristyna Munoz(312)
917-8343kristyna.munoz@nuveen.com
Nuveen High Income December 2018 Target Term Fund (delisted) (NYSE:JHA)
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