Business UpdateOct 19, 2026, 04:51 PM
Nuveen Fund Expands Investment Scope to Include Regulation S and TEFRA Bonds
AI Summary
Nuveen Variable Rate Preferred & Income Fund (NPFD) is updating its investment policies to allow investment in certain Regulation S securities and TEFRA bonds through wholly owned Cayman subsidiaries. This change permits the fund to invest up to 10% of its managed assets in non-U.S. denominated securities and introduces new principal risk factors related to foreign currency, Regulation S securities, and TEFRA bonds.
Key Highlights
- Nuveen Variable Rate Preferred & Income Fund (NPFD) will invest in wholly owned Cayman subsidiaries to gain exposure to Regulation S securities and TEFRA bonds.
- The Fund may invest up to 10% of Managed Assets in non-U.S. denominated securities, a change from its prior policy of only investing in USD-denominated securities.
- The Fund may invest up to 25% of its total assets in TEFRA Bonds through a dedicated Cayman subsidiary.
- The Fund may invest in Regulation S fixed income securities through a wholly owned Cayman subsidiary.
- New principal risk factors include Foreign Currency Risk, Regulation S Securities Risk, and TEFRA Bond Risk.