Nuveen Investments plans to merge eight municipal closed-end funds

By Tali Rackner

Norfolk, Va., Aug. 26 – Nuveen Investments announced that the board of trustees of the Nuveen closed-end funds approved a plan to merge eight national municipal closed-end funds and to reposition the portfolios of the two acquiring funds, according to a press release.

The goal of the proposals is to enhance the funds’ competitiveness and investor appeal and thereby improve the market price at which the common shares trade relative to net asset value, the company said. The proposals seek to accomplish this by (a) improving fund net earnings potential through a broader investment mandate; (b) creating significantly larger funds that offer greater liquidity and ease of trading; and (c) eliminating overlapping products and enhancing fund differentiation.

Under the proposed mergers, the Nuveen Premium Income Municipal Fund 4, Inc., Nuveen Dividend Advantage Municipal Fund 2 and Nuveen Municipal Advantage Fund, Inc. will be acquired by the Nuveen Dividend Advantage Municipal Fund 3, to be renamed Nuveen Enhanced Municipal Credit Opportunities Fund; and the Nuveen Municipal Opportunity Fund, Inc., Nuveen Quality Municipal Fund, Inc. and Nuveen Quality Income Municipal Fund, Inc. will be acquired by the Nuveen Dividend Advantage Municipal Income Fund, to be renamed Nuveen Enhanced AMT-Free Municipal Credit Opportunities Fund.

The funds will hold special shareholder meetings later this year to seek approval for those aspects of the plan that require shareholder approval.

Nuveen is a Chicago-based investment services company.

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