The fund, managed by Nuveen Investments’ asset management affiliate, is designed to help protect its portfolio of intermediate-term investment-grade municipal bonds from the negative effects of increasing inflation.
According to the Nuveen, the fund seeks a more tax-efficient approach to managing inflation risk primarily through its use of derivatives such as Consumer Price Index (CPI) swaps over Treasury Inflation Protected Securities (TIPS), for taxable investors in the fund.
The fund will be co-managed by Dan Close and Doug Baker.
Close serves as senior vice president and portfolio manager for many of Nuveen’s state-specific open-end municipal bond funds, as well as several closed-end funds. He has been with Nuveen Investments since 2000.
Baker also serves as senior vice president and portfolio manager for the Nuveen Preferred Securities Fund, and related preferred security strategies.
He joined Nuveen Asset Management in 2006 as a derivatives analyst, and later that year his responsibilities expanded to include portfolio management duties.
Nuveen Asset Management co-head of global fixed income John Miller said as more investors’ thoughts turn toward managing their fixed income portfolios in a rising rate environment, Nuveen is pleased that this newest fund will be able to offer clients a distinct investment option to help mitigate the potential impact of rising inflation and taxes.
