Nuveen Credit Opportunities 2022 Target Term Fund Announces Wind-Up Period
December 01 2021 - 9:00AM
Business Wire
The Nuveen Credit Opportunities 2022 Target Term Fund (NYSE:
JCO) has entered the wind-up period in anticipation of its
termination date. The fund is a “target term” fund that will cease
its investment operations and liquidate its portfolio on June 1,
2022 and distribute the net proceeds to shareholders, unless the
term is extended for a period of up to six months by a vote of the
fund’s Board of Trustees.
The fund has the investment objective to provide a high level of
current income and to return the fund’s original $9.85 net asset
value to shareholders at termination. Recent market conditions have
materially increased the risk associated with achieving the Fund's
objective to return Original NAV. This objective is not a guarantee
and is dependent on a number of factors including the extent of
market recovery and the cumulative level of income retained in
relation to cumulative portfolio gains net of losses. Under normal
circumstances, the fund invests at least 80% of its managed assets
in corporate debt securities.
During the wind-up period the fund may deviate from its
investment objectives and policies, and may invest up to a 100% of
its managed assets in high quality, short-term securities. High
quality, short-term securities for this fund include securities
rated investment grade (BBB-/Baa3 or higher or unrated but judged
by the fund’s subadviser to be of comparable quality) with a final
or remaining maturity of 397 days or less. Consequently, for the
remainder of its term, the fund will invest at least 80% of its
managed assets in (i) corporate debt securities; and (ii)
short-term investment grade securities that have a final or
remaining maturity of 397 days or less, so long as the maturity of
any security in the fund does not occur later than December 1,
2022. These expanded investment parameters currently will provide
the fund additional flexibility to reinvest the proceeds of matured
or called portfolio securities in higher quality, short-term
securities. As the fund gets closer to its termination date, the
fund will begin to affirmatively transition its remaining below
investment grade portfolio holdings to such high quality,
short-term securities to enhance its ability to efficiently
liquidate its portfolio at termination.
The fund has also completed the process of redeeming and
retiring its leverage in anticipation of its termination date.
As described in the fund’s prospectus, the general shortening of
the time-to-maturity of the fund’s portfolio securities as the fund
approaches its termination date, the elimination of leverage, and
the repositioning of the fund’s portfolio into higher-quality
securities as part of the wind-up process, will tend to reduce
interest rate risk and credit risk, and improve portfolio
liquidity, but will also tend to reduce amounts of income available
to pay as dividends to common shareholders.
Nuveen is a leading sponsor of closed-end funds (CEFs) with $65
billion of assets under management across 62 CEFs as of September
30, 2021. The funds offer exposure to a broad range of asset
classes and are designed for income-focused investors seeking
regular distributions. Nuveen has more than 30 years of experience
managing CEFs.
For more information, please visit Nuveen’s CEF homepage
www.nuveen.com/closed-end-funds or contact:
Financial Professionals: 800-752-8700
Investors: 800-257-8787
Media: media-inquiries@nuveen.com
About Nuveen Nuveen, the investment manager
of TIAA, offers a comprehensive range of outcome-focused investment
solutions designed to secure the long-term financial goals of
institutional and individual investors. Nuveen has $1.2 trillion in
assets under management as of 30 September 2021 and operations in
27 countries. Its investment specialists offer deep expertise
across a comprehensive range of traditional and alternative
investments through a wide array of vehicles and customized
strategies. For more information, please visit www.nuveen.com.
Nuveen Securities, LLC, member FINRA and SIPC.
The information contained on the Nuveen website is not a part of
this press release.
FORWARD-LOOKING STATEMENTS
Certain statements made herein are forward-looking statements.
Actual future results or occurrences may differ significantly from
those anticipated in any forward-looking statements due to numerous
factors. These include, but are not limited to:
- market developments;
- legal and regulatory developments; and
- other additional risks and uncertainties.
You should not place undue reliance on forward-looking
statements, which speak only as of the date they are made. Nuveen
and the closed-end funds managed by Nuveen Fund Advisers and Nuveen
affiliates undertake no responsibility to update publicly or revise
any forward-looking statements.
EPS-1938179PR-E1221X
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version on businesswire.com: https://www.businesswire.com/news/home/20211201005371/en/
Financial Professionals: 800-752-8700
Investors: 800-257-8787
Media: media-inquiries@nuveen.com
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