- Addition of Himani Trivedi as a portfolio manager
- Updated investment policies
- Monthly distribution increased by 14%
Nuveen Credit Strategies Income Fund (NYSE: JQC) has announced
an update to its portfolio management team. Effective immediately,
Himani Trivedi, Head of Structured Credit, joins Scott Caraher,
Head of Senior Loans, and Kevin Lorenz, Head of High Yield, as
portfolio managers of JQC.
Himani is head of structured credit at Nuveen. She is
responsible for managing loans and investments in structured credit
across Nuveen-managed collateralized loan obligations (CLOs) and
various fixed income strategies. Previously, Himani served as a
co-head of investments and head of structured credit at Nuveen
affiliate Symphony Asset Management. She started at Nuveen under
Symphony affiliate in 2004 on the convertibles desk, launched the
CLO platform in 2005 and became co-Portfolio Manager for all CLOs
in 2008. Prior to joining Nuveen, Himani worked on model validation
for securitized products at Washington Mutual Bank and started her
career in finance at ICICI Bank in India. Himani graduated with a
B.S. in Chemical Engineering and an M.B.A. in Finance from Gujarat
University, India and a Masters in Financial Engineering (MFE) from
the Haas School of Business at University of California,
Berkeley.
The fund’s portfolio is managed by Nuveen’s Leveraged Finance
team, one of the industry’s largest providers of senior loans, high
yield credit, and CLOs. To learn more about Nuveen’s outlook on
senior loans, please click here.
In connection with this announcement, the Fund’s Board of
Trustees has approved certain investment policy changes that are
detailed at the end of this announcement. As a result of these
updates, the fund expects to persistently invest a greater portion
of its portfolio in collateralized loan obligation (CLO) debt and
high yield corporate debt. The fund will continue to invest a
significant portion of its portfolio in senior loans. The fund’s
anticipated portfolio allocation is detailed below.
Asset Class
Anticipated
Allocation
Range
Current
Allocation as of
30 June 2023
Senior Loans
45-75%
83%
High Yield Corporate Bonds
10-40%
15%
CLO Debt
0-25%
0%
Other
0-5%
3%
The anticipated portfolio allocations are based on current
market conditions and the expectations of the portfolio management
team. Current market conditions may change and the Fund’s portfolio
allocations may vary over time consistent with the Fund’s
investment policies.
In addition, JQC has declared the following monthly
distribution. The distribution represents an increase over the
previous month of 14%. The following dates apply to today's monthly
distribution declaration for JQC:
Record Date
September 15, 2023
Ex-Dividend Date
September 14, 2023
Payable Date
October 2, 2023
Ticker
Exchange
Fund
Name
Monthly Distribution Per Share
Amount
Change From Previous
Month
Market Distribution
Rate*
JQC
NYSE
Nuveen Credit Strategies Income Fund
$0.0540
$0.0065
12.8%
*Based on market price as of 8 Aug 2023
The goal of the fund’s level distribution program is to provide
shareholders with stable, but not guaranteed, cash flow,
independent of the amount or timing of income earned or capital
gains realized by the fund. The fund intends to distribute all or
substantially all of its net investment income through its regular
monthly distribution and to distribute realized capital gains at
least annually. In any monthly period, in order to maintain its
level distribution amount, the fund may pay out more or less than
its net investment income during the period. As a result, regular
distributions throughout the year are expected to include net
investment income and potentially a return of capital and/or
capital gains for tax purposes. If a distribution includes anything
other than net investment income, the fund provides a notice of the
best estimate of its distribution sources at the time of the
distribution which may be viewed at
www.nuveen.com/CEFdistributions. These estimates may not match the
final tax characterization (for the full year’s distributions)
contained in shareholders’ 1099-DIV forms after the end of the
year.
You should not draw any conclusions about the Fund’s investment
performance from the amount of the distribution. A return of
capital is a non-taxable distribution of a portion of a Fund’s
capital. A distribution including return of capital does not
necessarily reflect a Fund’s investment performance and should not
be confused with “yield” or “income.”
Description of Investment Policy Changes 1
Current Policy
New Policy
The Fund will invest at least 80% of its
Assets, at time of purchase, in loans or securities that are senior
to its common equity in the issuing company’s capital structure,
including but not limited to debt securities and preferred
securities.
The Fund will invest at least 80% of its
Assets, at time of purchase, in instruments that are senior to
common equity in an issuer’s capital structure, including but not
limited to loans, debt securities, and preferred securities.
The Fund invests at least 70% of its
Managed Assets in adjustable rate senior loans and second lien
loans.
Existing policy eliminated.
The Fund may invest up to 30% of its
Managed Assets in the following securities:
- other debt securities such as investment and non-investment
grade debt securities, fixed rate senior loans or subordinated
loans, convertible securities and structured notes (other than
structured notes that are designed to provide returns and risks
that emulate those of Adjustable Rate Loans, which may be treated
as an investment in Adjustable Rate Loans for purposes of the 70%
requirement set forth above);
- mortgage-related and other asset-backed securities (including
collateralized loan obligations and collateralized debt
obligations);
- debt securities and other instruments issued by government,
government-related or supranational issuers (commonly referred to
as sovereign debt securities); and
- domestic and international equity securities.
Existing policy eliminated.
Substantially all of the Fund’s portfolio
likely will be invested in senior loans that are, at the time of
investment, rated below investment grade or unrated but judged to
be of comparable quality. Investment grade quality securities are
those securities that, at the time of investment, are (i) rated by
at least one NRSRO within the four highest grades (BBB- or Baa3 or
better by S&P, Moody’s or Fitch), or (ii) unrated but judged to
be of comparable quality. The Fund may also purchase other debt
securities that are rated below investment grade or that are
unrated but judged to be of comparable quality.
The Fund may invest without limitation in
instruments that are rated below investment grade or are unrated
but judged to be of comparable quality. Investment grade quality
instruments are those that are (i) rated by at least one NRSRO
within the four highest grades (BBB- or Baa3 or better by S&P,
Moody’s or Fitch), or (ii) unrated but judged to be of comparable
quality. However, the Fund may not invest more than 30% of its
Managed Assets in instruments that are rated CCC/Caa or lower at
the time of investment (or are unrated but judged by the Fund’s
sub-adviser to be of comparable quality).
The Fund maintains an average duration of
two years or less for its portfolio investments in Adjustable Rate
Loans and other debt instruments. “Average duration” and “average
portfolio duration” are each defined to be the modified duration of
the Fund’s portfolio, which is the measure of a debt instrument’s
or a portfolio’s price sensitivity with respect to changes in
market yields adjusted to reflect the effect of the Fund’s
effective leverage.
Existing policy eliminated.
The Fund will not invest in inverse
floating rate securities.
Existing policy eliminated.
The Fund may invest up to 20% of its
Managed Assets in securities of non-U.S. Issuers that are U.S.
dollar or non-U.S. dollar denominated. The Fund’s Managed Assets to
be invested in Adjustable Rate Loans and other debt instruments of
non-U.S. Issuers may include debt securities of Issuers located, or
conducting their business in, emerging markets countries.
The Fund may invest up to 20% of its
Managed Assets in instruments of non-U.S. issuers that are U.S.
dollar or non-U.S. dollar denominated, including instruments of
issuers located, or conducting their business in, emerging markets
countries.
No current policy regarding CLO
investments.
The Fund may invest up to 25% of its
Managed Assets in collateralized loan obligation (CLO) debt
securities.
____________
1 Implementation of the new 80% policy is subject to a 60-day
written notice to shareholders and is anticipated to become
effective on or about November 1, 2023. All other policy changes
are effective immediately.
Nuveen is a leading sponsor of closed-end funds (CEFs) with $53
billion of assets under management across 51 CEFs as of 30 Jun
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.
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 30 Jun 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 in this release 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; including the timing of distributions and
other events identified in this press release;
- legal and regulatory developments; and
- other additional risks and uncertainties.
EPS-3047287CR-E0823W
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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
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