Nuveen Municipal 2021 Target Term Fund (NHA) Announces Wind-up Period
01 Septiembre 2020 - 7:00AM
Business Wire
The Nuveen Municipal 2021 Target Term Fund (NYSE: NHA) has
entered the wind-up period in anticipation of its termination date.
The fund is a “target term” fund that will cease its investment
operations and liquidate its portfolio on March 1, 2021 and
distribute the net proceeds to shareholders, unless the term is
extended for a period of up to six months by a vote of the fund’s
Board of Trustees.
The fund’s investment objectives are to provide a high level of
current income exempt from federal income tax and to return the
fund’s original $9.85 net asset value to shareholders at
termination. Recent market conditions may increase the risk
associated with achieving the fund's objective to return Original
NAV. This objective is not a guarantee and is dependent on a number
of factors including the extent of market recovery and the
cumulative level of income retained in relation to cumulative
realized portfolio gains net of losses. Under normal circumstances,
the fund invests at least 80% of its managed assets in municipal
securities, the income from which is exempt from regular U.S.
federal income tax, and separately, at least 65% of its managed
assets in low- to medium-quality municipal securities that, at the
time of investment, are rated BBB/Baa or lower or unrated but
judged by the managers to be of comparable quality.
During the wind-up period the fund may deviate from its
investment objectives and policies, and may invest up to a 100% of
its managed assets in high quality, short-term securities,
including U.S. Treasuries. High quality, short-term securities for
this fund include securities rated investment grade (A-/A3 or
higher or unrated but judged by the fund’s managers to be of
comparable quality) with a final or remaining maturity of 397 days
or less, so long as the maturity of any security in the fund does
not occur later than September 1, 2021. These expanded investment
parameters currently will provide the fund additional flexibility
to reinvest the proceeds of matured or called portfolio securities
in higher quality, short-term securities. As the fund gets closer
to its termination date, the fund will begin to affirmatively
transition its remaining below investment grade portfolio holdings
to such high quality, short-term securities to enhance its ability
to efficiently liquidate its portfolio at termination.
The fund has also completed the process of redeeming and
retiring its leverage in anticipation of its termination date.
As described in the fund’s prospectus, the general shortening of
the time-to-maturity of the fund’s portfolio securities as the fund
approaches its termination date, the elimination of leverage, and
the repositioning of the fund’s portfolio into higher-quality
securities as part of the wind-up process, will tend to reduce
interest rate risk and credit risk, and improve portfolio
liquidity, but will also tend to reduce amounts of income available
to pay as dividends to common shareholders.
For more information, please visit Nuveen’s CEF homepage
www.nuveen.com/closed-end-funds.
About Nuveen
Nuveen, the investment manager of TIAA, offers a comprehensive
range of outcome-focused investment solutions designed to secure
the long-term financial goals of institutional and individual
investors. Nuveen has $1 trillion in assets under management as of
30 June 2020 and operations in 27 countries. Its investment
specialists offer deep expertise across a comprehensive range of
traditional and alternative investments through a wide array of
vehicles and customized strategies. For more information, please
visit www.nuveen.com.
The information contained on the Nuveen website is not a part of
this announcement.
Nuveen Securities, LLC, member FINRA and SIPC.
FORWARD-LOOKING STATEMENTS
Certain statements made herein are forward-looking statements.
Actual future results or occurrences may differ significantly from
those anticipated in any forward-looking statements due to numerous
factors. These include, but are not limited to:
- market developments;
- legal and regulatory developments;
- the ability to obtain requisite shareholder approval for the
proposals described herein;
- the number of shares tendered in response to each fund’s tender
offer; and
- other additional risks and uncertainties.
Nuveen and the closed-end funds managed by Nuveen Fund Advisers
and Nuveen affiliates undertake no responsibility to update
publicly or revise any forward-looking statements.
EPS-1318026PR-E0920X
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