Nuveen Corporate Income 2023 Target Term Fund Announces Wind-Up Period
June 01 2023 - 8:00AM
Business Wire
Nuveen Corporate Income 2023 Target Term Fund (NYSE: JHAA) 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 or about December 1, 2023
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 has the investment objective to provide a high level of
current income and to return the fund’s original $9.875 net asset
value to shareholders at termination. Based on current market
conditions, the fund does not anticipate returning the Original NAV
at its termination. The investment objective relating to Original
NAV 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 portfolio gains net of
losses.
Under normal circumstances, the fund invests at least 80% of its
managed assets in corporate debt securities. During the wind-up
period the fund may deviate from its investment objectives and
policies and may invest up to 100% of its managed assets in high
quality, short-term securities. High quality, short-term securities
include securities rated investment grade (BBB-/Baa3 or higher or
unrated but judged by the fund’s subadviser to be of comparable
quality) with a final or remaining maturity of 397 days or less.
Consequently, for the remainder of its term, the fund will invest
at least 80% of its managed assets in (i) corporate debt
securities; and (ii) short-term investment grade securities that
have 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
June 1, 2024. 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.
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.
Nuveen is a leading sponsor of closed-end funds (CEFs) with $54
billion of assets under management across 54 CEFs as of 31 Mar
2023. The funds offer exposure to a broad range of asset classes
and are designed for income-focused investors seeking regular
distributions. Nuveen has more than 35 years of experience managing
CEFs.
For more information, please visit Nuveen’s CEF homepage
www.nuveen.com/closed-end-funds or contact:
Financial Professionals: 800-752-8700
Investors: 800-257-8787
Media: media-inquiries@nuveen.com
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 $1.1 trillion in assets under management as
of 31 Mar 2023 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.
Nuveen Securities, LLC, member FINRA and SIPC.
The information contained on the Nuveen website is not a part of
this press release.
FORWARD-LOOKING STATEMENTS
Certain statements made or referenced in this release may be
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; and
- other additional risks and uncertainties.
You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. Nuveen
and the closed-end funds managed by Nuveen and its affiliates
undertake no responsibility to update publicly or revise any
forward-looking statements. The annual and semi-annual reports and
other regulatory filings of Nuveen closed-end funds with the
Securities and Exchange Commission (“SEC”) are accessible on the
SEC’s web site at www.sec.gov and on Nuveen’s web site at
www.nuveen.com/cef and may discuss the abovementioned or other
factors that affect Nuveen closed-end funds.
EPS-2929261PR-E0623W
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230601005147/en/
Financial Professionals: 800-752-8700 Investors: 800-257-8787
Media: media-inquiries@nuveen.com
Nuveen Corporate Income ... (NYSE:JHAA)
Historical Stock Chart
From Oct 2024 to Nov 2024
Nuveen Corporate Income ... (NYSE:JHAA)
Historical Stock Chart
From Nov 2023 to Nov 2024