Nuveen Municipal High Income Opportunity Fund to offer shares

By Toni Weeks

San Luis Obispo, Calif., March 7 - The Nuveen Municipal High Income Opportunity Fund announced an offering of 7.7 million common shares, according to a 497 filing with the Securities and Exchange Commission.

The diversified, closed-end management investment company seeks to provide high current income exempt from regular federal income tax with attractive total return as a secondary objective by investing in underrated and undervalued municipal securities.

The fund invests at least 80% of its managed assets, or the total assets minus the sum of accrued liabilities, in investments the income from which is exempt from regular federal income tax. Under normal market conditions, the fund expects at least 95% of its managed assets to be invested in tax-exempt municipal securities. The fund will invest at least 50% of its managed assets in investment-grade-quality municipal securities, with up to 50% of the securities rated below investment grade at the time of investment.

John V. Miller is the portfolio manager.

The shares closed at $14.19 (NYSE MKT: NMZ) on Thursday.

Shareholder transaction expenses include a 4% maximum sales charge. Including management fees of 1.01%, total annual expenses are expected to be 1.42%.

According to the filing, the board of trustees of the fund approved on Dec. 12 a merger of the fund with the Nuveen Municipal High Income Opportunity Fund 2.

Chicago-based Nuveen Fund Advisors, LLC is the fund's investment adviser.

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