Two Nuveen funds seek OK to merge into Nuveen Global High Income unit

By Toni Weeks

San Luis Obispo, Calif., Sept. 19 – Nuveen Investments is seeking shareholder approval to merge the Nuveen Global Income Opportunities Fund and the Nuveen Diversified Currency Opportunities Fund into a new fund, a wholly owned subsidiary of the Nuveen Global High Income Fund.

According to a 497 filing with the Securities and Exchange Commission, the board of each target fund approved at an Aug. 7 meeting a proposal to merge its respective fund into NGHIF Merger Sub, LLC, a newly formed business trust. The newly formed subsidiary will operate after the consummation of the mergers as a registered closed-end management investment company.

The boards believe the mergers will benefit shareholders with improved secondary market trading, a higher distribution potential and fee and expense savings, according to the filing.

The investment objectives are slightly different for the two target funds and the one acquiring fund. Global Income’s primary investment objective is to provide a high level of current income and gains with capital preservation as a secondary objective, whereas the new fund will seek solely a high level of current income. Currency Opportunities’ objective is to provide an attractive level of current income and total return.

Likewise, the funds’ investment strategies differ slightly. Global Income Opportunities primarily invests in sovereign, corporate and other types of debt issuers in developed and emerging markets that are rated investment grade and typically offer greater exposure to non-U.S currencies than the acquiring fund. The Currency Opportunities fund primarily offers exposure to non-U.S. currencies and short-term global yields by investment in short-term international government securities denominated in unhedged, non-U.S. currencies. The acquiring fund, on the other hand, will invest in securities from around the world as well as across the capital structure and credit spectrum that offer attractive income and long-term return potential.

The closing of the merger is contingent upon separate approval from both of the target funds at shareholder meetings scheduled for Oct. 31. If approved, the mergers will take place on Nov. 17.

Chicago-based Nuveen Fund Advisors, LLC is the investment adviser to the funds.

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