CORRECT and REPLACE Nuveen Emerging Markets Debt 2022 Target Term Fund Announces Liquidation Period
NEW YORK, June 02, 2022–(BUSINESS WIRE)–The fourth paragraph should be deleted and the code at the end of the release should be updated to EPS-2227364CR-E0622X (instead of: The fund has also completed the process of redeeming and deleveraging in anticipation of its termination date and EPS-2224638PR-E0622X.).
The updated version reads as follows:
NUVEEN EMERGING MARKETS DEBT 2022 TARGET TERMS FUND ANNOUNCES LIQUIDATION PERIOD
The text of the original corrected version begins here and follows in its entirety.
Nuveen Emerging Markets Debt 2022 Target Term Fund (NYSE: JEMD) has entered the liquidation period in anticipation of its termination date. The fund is a “target term” fund which will cease investment operations and liquidate its portfolio on or about December 1, 2022 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 directors.
The fund’s investment objective is to provide a high level of current income and to return the fund’s initial net asset value of $9.85 to shareholders upon termination. Based on current market conditions, the fund does not expect to return the original net asset value upon termination. The investment objective relative to the original net asset value is not a guarantee and depends on a number of factors, including the extent of the market rally and the cumulative level of retained income versus gains. portfolio net of losses.
Under normal circumstances, the fund invests at least 80% of its managed assets in emerging market debt securities. During the liquidation period, the fund may deviate from its investment objectives and policies and may invest up to 100% of its assets under management in high-quality, short-term securities. High-quality short-term securities for this fund include higher quality securities (BBB-/Baa3 or better or unrated, but judged by the fund’s sub-advisor to be of comparable quality) with a final or remaining maturity of 397 days or less. Therefore, for the remainder of its life, the fund will invest at least 80% of its assets under management in (i) emerging market 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 after June 1, 2023. These expanded investment parameters will currently provide the fund with additional flexibility to reinvest proceeds from matured or recalled portfolio securities into higher quality, short-term securities. As the fund nears its termination date, the fund will begin to positively transition its remaining portfolios from below investment grade to high-quality short-term securities in order to improve its ability to effectively liquidate its portfolio on dissolution.
The general shortening of the term to maturity of securities in the fund’s portfolio as the fund approaches its termination date, the elimination of leverage and the repositioning of the fund’s portfolio in higher quality in the liquidation process tend to reduce interest rate risk and credit risk, and improve portfolio liquidity, but will also tend to reduce the amounts of income available to be paid out as dividends to ordinary shareholders.
Nuveen is a leading closed-end fund (CEF) sponsor with $62 billion in assets under management across 58 CEFs as of March 31, 2022. The funds provide exposure to a wide range of asset classes and are designed for income-oriented investors who seek regular distributions. Nuveen has over 30 years of experience managing CEFs.
For more information, please visit the Nuveen CEF homepage www.nuveen.com/closed-end-funds or contact:
Nuveen, TIAA’s investment manager, offers a full suite of results-driven investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.2 trillion in assets under management as of March 31, 2022 and operations in 27 countries. Its investment specialists offer deep expertise in a full range of traditional and alternative investments across a wide range of vehicles and custom strategies. For more information, please visit www.nuveen.com.
Nuveen Securities, LLC, Member FINRA and SIPC.
Information contained on Nuveen’s website does not form part of this press release.
Certain statements made herein are forward-looking statements. Actual results or future events may differ materially from those anticipated in the forward-looking statements due to numerous factors. These include, but are not limited to:
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