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Nuveen Registers Closed-End Interval Fund Focused on Municipal Securities

Nuveen has registered a closed-end interval fund called Nuveen Enhanced High Yield Municipal Bond Fund to invest in municipal securities, according to a preliminary prospectus filed with the Securities and Exchange Commission.

Nuveen has registered a closed-end interval fund called Nuveen Enhanced High Yield Municipal Bond Fund to invest in municipal securities, according to a preliminary prospectus filed with the Securities and Exchange Commission. The offering size was not provided.

According to the pre-effective registration statement, the fund plans to invest at least 80 percent of its assets in municipal securities, primarily those rated BBB/Baa or lower, and other related investments. Municipal securities include municipal bonds, notes, securities issued to finance and refinance public projects, certificates of participation, variable rate demand obligations, among others.

The fund plans to offer two share classes: Class I (ticker: NMSSX) and Class A (ticker: NHYEX) shares, and may offer additional classes in the future. Shares are expected to be priced at $10.00 per share initially, and after, will be offered on a continuous basis at net asset value per share.

The Class I shares will generally be offered to institutional investors and have a minimum initial investment of $100,000 per account. There is no sales load associated with Class I shares.

The Class A shares will be primarily offered and sold to retail investors by broker-dealers and have a minimum initial investment of $2,500 per account. Class A shares have a maximum sales load of 2.5 percent, which may be reduced for purchases of more than $100,000.

The fund does not currently expect to charge a repurchase fee, however, in the future, it may impose repurchase fees of up to 2 percent on repurchased shares that are held for less than one year. It intends to declare dividends daily, and pay dividends monthly, usually on the first business day of the month. Annual fund operating expenses were left blank in the preliminary prospectus and will likely be updated in the future.

Nuveen Fund Advisors LLC will serve as the fund’s investment adviser and will be responsible for determining the fund’s overall investment strategy and implementation, as well as managing the fund’s business affairs and providing certain clerical, bookkeeping and other administrative services.

Nuveen Asset Management LLC will serve as the fund’s sub-adviser and will be responsible for investing the fund’s managed assets. Nuveen Securities LLC will serve as the principal underwriter and distributor.

The fund is expected to pay Nuveen Fund Advisors an annual management fee that is equal to 1 percent of the fund’s average daily managed assets. Nuveen Fund Advisors plans to pay Nuveen Asset Management a portfolio management fee equal to 50 percent of the investment management fee paid on the fund’s average daily managed assets.

Nuveen Fund Advisors is an indirect subsidiary of Nuveen, the investment management arm of Teachers Insurance and Annuity Association of America. As of December 31, 2020, Nuveen managed approximately $1.2 trillion in assets, of which approximately $156.5 billion was managed by Nuveen Fund Advisors.

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