"We believe this new fund may offer traditional fixed-income investors as well as equity investors a risk-managed equity-based strategy with the potential to generate high levels of consistent cash flow and to provide some appreciation over time," said Bill Adams, executive vice president at Chicago-based Nuveen.
Nuveen Asset Management, which will determine the overall investment strategy, will manage the fund; but portfolio managers from
The fund will invest in an equity portfolio and then sell call options to enhance dividends and buy put options to hedge against losses on the S&P 500 and Nasdaq-100 indexes. The equity portfolio will replicate the weighted average price movements of the two indexes, initially starting with a 50/50 blend but shifting in time if demanded by changes in the index.