September Launch Set For Closed-End Muni Bond ETFs
In an effort to meet investor demand for diversification,
Five of the funds were registered with the Securities and Exchange Commission in April, said spokeswoman Laurel O'Brien. Two others were registered with the SEC July 27. Solomon Smith Barney will be the funds' lead manager and Nuveen Advisory Corp. will serve as investment advisor.
Nuveen has introduced 12 municipal closed-end funds this year and raised some $1.7 billion in assets for those products, O'Brien said. Because of demonstrated investor demand for fixed-income products, which are known to be less exposed to risk than equity vehicles, the company forecasts a similar picture for the seven new products.
'We believe the market remains attractive,' O'Brien said. 'Investors are relooking at their portfolios with the continuing volatility in the equities markets. More and more investors are just looking at additional diversification methods.'
The funds are: Nuveen Dividend Advantage Municipal Fund 3, Nuveen California Dividend Advantage Municipal Fund 3, Nuveen Georgia Dvidend Advantage Municipal Fund, Nuveen Maryland Dividend Advantage Municipal Fund 2, Nuveen Michigan Dividend Municipal Advantage Municipal Fund, Nuveen New York Dividend Advantage Municipal Fund 3, Nuveen Ohio Dividend Advantage Muncipal Fund 2.
