Nuveen Investments raised $380 million in the initial public offering for a new equity index option exchange-traded fund, the Nuveen Equity Premium and Growth Fund. The fund's primary objective is to deliver a high level of current income and gains from net index option premiums, and its secondary objective is capital appreciation through a diversified equity portfolio that will attempt to surpass the returns of the S&P 500.

Merrill Lynch was the lead underwriter for the offering, and portfolio managers from Gateway Investment Advisors will manage the fund's index option and equity strategies.

"This fund seeks attractive long-term equity returns with moderated risk," said Bill Adams, executive vice president of Nuveen. "The fund should appeal to income-oriented investors who wish to diversify their exposure to interest rate-sensitive investments."

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