Four Nuveen municipal funds call some auction-rate preferreds at par

By Jennifer Chiou

New York, Oct. 1 - Nuveen Investments announced that four of its sponsored closed-end funds called for the par redemption of a portion of their outstanding auction-rate preferred securities.

According to a news release, the funds' board of trustees has approved the redemptions, which total more than $17 million.

Each of the funds will be using tender option bonds to finance the partial redemption of its auction-rate preferreds, Nuveen said, noting that tender option bonds are floating-rate securities issued by trusts into which a fund has deposited municipal securities.

Affected funds include:

• Insured Dividend Advantage Municipal Fund (NVG) with $4.575 million of its $202.65 million of auction-rate preferreds affected;

• California Premium Income Municipal Fund (NCU) with $4.5 million of its $38.875 million of auction-rate preferreds affected;

• California Dividend Advantage Municipal Fund 2 (NVX) with $4.5 million of its $98.275 million of auction-rate preferreds affected; and

• Ohio Quality Income Municipal Fund (NUO) with $4.0 million of its $77.0 million of auction-rate preferreds affected.

Nuveen is a Chicago-based seller of investment products.

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