NEW YORK--(BUSINESS WIRE)--Nuveen has successfully completed the initial public offering of the Nuveen High Income 2023 Target Term Fund. The new closed-end fund’s investment objectives are to provide a high level of current income and to return the original $9.875 NAV per common share on or about December 1, 2023, its termination date. The fund seeks to achieve its investment objectives by investing at least 80% of its managed assets in corporate debt securities (including bonds and senior loans). The fund will begin trading on the New York Stock Exchange (NYSE) today, under the symbol JHAA.
The fund raised approximately $70 million (before deduction of the sales load and offering expenses payable by the fund) in its common share offering, excluding any exercise of the underwriters’ option to purchase additional shares. If the underwriters exercise that option in full, the fund will have raised approximately $80 million.
Managed by an experienced investment team dedicated to high yield credit, JHAA will employ a disciplined bottom-up investment process to identify securities across diverse sectors and industries that it believes are undervalued, mispriced, or provide attractive income consistent with the objectives of the fund. JHAA has a five-year term and the fund intends to pay regular monthly distributions, and on or about December 1, 2023, liquidate its portfolio and distribute substantially all of its net assets to shareholders.
Nuveen Fund Advisors, LLC, a subsidiary of Nuveen, is the fund’s investment adviser, responsible for the fund’s overall investment strategy. Nuveen Asset Management, an affiliate of Nuveen, is the fund’s subadviser, responsible for investing the fund’s assets. The lead managers of the underwriting syndicate were Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC.
Shares of closed-end investment companies, like the fund, usually trade on a national stock exchange. Similar to stocks, the fund’s share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value.
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 $988 billion in assets under management as of 9/30/18 and operations in 16 countries. Its affiliates 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 press release. Nuveen Securities, LLC, member FINRA and SIPC.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the fund carefully before investing. For a prospectus which contains this and other information relevant to an investment in the fund, please contact your securities representative or Nuveen Securities, LLC, 333 W. Wacker Drive, Chicago, IL 60606. Investors should read the prospectus carefully before they invest or send money.
This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted.
Key Risk Considerations:
Investment and Market Risk. An investment in Common Shares is subject to investment risk, including the possible loss of the entire principal amount that you invest. Your investment in Common Shares represents an indirect investment in the securities owned by the Fund. Your Common Shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.
Five-Year Term Risk. Because the assets of the Fund will be liquidated in connection with its termination, the Fund may be required to sell portfolio securities when it otherwise would not, including at times when market conditions are not favorable, or at a time when a particular security is in default or bankruptcy, or otherwise in severe distress, which may cause the Fund to lose money. Although the Fund has an investment objective of returning $9.875 to Common Shareholders on or about the Termination Date, the Fund may not be successful in achieving this objective. The return of Original NAV is not an express or implied guarantee obligation of the Fund. There can be no assurance that the Fund will be able to return Original NAV to Common Shareholders, and such return is not backed or otherwise guaranteed by Nuveen or any other entity.
Below Investment Grade Risk. Securities of below investment grade quality are regarded as having speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal, and may be subject to higher price volatility and default risk than investment grade securities of comparable terms and duration. Issuers of lower grade securities may be highly leveraged and may not have available to them more traditional methods of financing. The prices of these lower grade securities are typically more sensitive to negative developments, such as a decline in the issuer’s revenues or a general economic downturn. The secondary market for lower rated securities may not be as liquid as the secondary market for more highly rated securities, a factor which may have an adverse effect on the Fund’s ability to dispose of a particular security. If a below investment grade security goes into default, or its issuer enters bankruptcy, it might be difficult to sell that security in a timely manner at a reasonable price.
Debt Securities Risk. Issuers of debt instruments in which the Fund may invest may default on their obligations to pay principal or interest when due. This non-payment would result in a reduction of income to the Fund, a reduction in the value of a debt instrument experiencing non-payment and, potentially, a decrease in the NAV of the Fund. There can be no assurance that liquidation of collateral would satisfy the issuer’s obligation in the event of non-payment of scheduled interest or principal or that such collateral could be readily liquidated. In the event of bankruptcy of an issuer, the Fund could experience delays or limitations with respect to its ability to realize the benefits of any collateral securing a security. To the extent that the credit rating assigned to a security in the Fund’s portfolio is downgraded, the market price and liquidity of such security may be adversely affected.
For additional detailed risk information, please refer to the fund’s prospectus or visit the fund’s webpage at www.nuveen.com.