Nuveen to launch Short Duration High Yield Municipal fund in February

By Toni Weeks

San Luis Obispo, Calif., Jan. 30 - Nuveen Municipal Trust announced in an N-1A filing with the Securities and Exchange Commission that it will launch its new high-yield municipal bond fund in February.

The Nuveen Short Duration High Yield Municipal Bond Fund seeks to provide high current income exempt from regular federal income taxes, with capital appreciation as a secondary objective when consistent with the primary objective.

Under normal market conditions, the fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in municipal bonds that pay interest exempt from regular federal personal income tax. The fund may invest without limit in securities that generate income subject to the alternative minimum tax.

The fund may invest in all types of municipal bonds, including general obligation bonds, revenue bonds and participation interests in municipal leases, with at least 65% of its net assets invested in low- to medium-quality bonds and up to 10% of its net assets invested in defaulted municipal bonds. The fund will normally maintain a portfolio with a weighted average effective duration of less than 4.5 years.

John V. Miller, Timothy Ryan and Steven Hlavin are the portfolio managers.

The new fund offers class A, class C and class I share classes. The ticker symbols are "NVHAX," "NVHCX" and "NVHIX," respectively.

Shareholder fees consist of a 2.5% maximum sales charge for class A shares and a 1% maximum deferred sales charge for class C shares.

Management fees will run 0.6%. Including other fees and taking into account the affects of a fee waiver agreement with the investment adviser, total annual fund operating expenses are expected to be 0.85% for class A shares, 1.4% for class C shares and 0.65% for class I shares.

Chicago-based Nuveen Fund Advisors, Inc. is the investment adviser.

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