Investment services provider Nuveen Investments is planning to do a public offering of a new closed-end fund, Nuveen Mortgage Opportunity Term Fund.
The fund’s investment objective is to generate attractive total returns via opportunistic MBS investments. It will also invest in MBS directly, and indirectly through a separate investment in a public-private investment partnership formed under the U.S. Department of the Treasury's Public-Private Investment Program (PPIP).
PPIP involves the creation of public-private investment partnerships through which privately raised capital and Treasury Department capital are pooled together to facilitate the buying of certain eligible MBS.
The new fund has a limited term of ten years and will be liquidating all of its assets, retiring or redeeming its borrowings, and distributing any remaining net assets to common shareholders on or before November 30, 2019.
Additionally, the fund's investment objective and policies are not designed to seek to return their initial investment on the termination date to buyers who purchase common shares in this offering, and such initial investors and any investors that purchase common shares after the completion of this offering might receive more or less than their original investment upon termination. The fund expects to be listed on the New York Stock Exchange under ticker symbol JLS, subject to notice of issuance.
Nuveen Asset Management will be the fund’s adviser and will be responsible for determining the fund’s overall investment strategy and deciding whether and to what extent to invest in a public-private investment partnership formed under the PPIP.
Wellington Management Co., will be the fund’s subadviser and will also be responsible for the day-to-day managing of the fund’s direct MBS investments and other permitted investments.
Wellington Management, which was one of the nine managers selected by the Treasury Department in July that are eligible to participate in PPIP, also serves as investment adviser of a public-private investment partnership in which the fund might invest.
Wells Fargo Securities, Merrill Lynch, UBC Securities and Nuveen Investments are acting as co-lead underwriters in connection with this proposed offering.