Nuveen Investments will launch a second closed-end exchange-traded fund that uses an equity index option strategy supported by a portfolio of common stock and hedged with options. The company launched its first, the Nuveen Equity Premium Income Fund (JPZ), last October.

"We believe investors are searching today for risk-managed, equity-based strategies that have the potential to generate high levels of consistent cash flow and provide some appreciation over time," says Bill Adams, executive vice president at Nuveen. "This fund will likely appeal to traditional fixed-income investors concerned with the potential impact of higher rates on bond strategies and to equity investors looking for attractive, tax-advantaged dividend income with reduced volatility and the potential for more stable returns."

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.