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  • Writer's pictureJerremy Alexander Newsome


Nuveen Floating Rate Income Fund  JFR In 1898 John Nuveen formed Nuveen and Company to conduct financial activities to include the underwriting of bond issues for roads, bridges, waterworks, transit systems, and other infrastructure projects. Over the years, Nuveen expanded into many types of financial operations which include asset management, trusts, and funds of various types including JFR which is the subject of this presentation. Somewhat as a boat floats above the prevailing water level ( this appears to be a primary objective for most boat owners and passengers) so do the assets in this fund (symbol JFR) earn an interest rate which is determined by, and floats above, a prevailing benchmark for interest rates. LIBOR (London inter-bank rate) is a widely used benchmark rate for financial instruments, but rates may be based on the "prime" rate at a particular bank, a certificate of deposit rate, or other benchmark as stated in the appropriate documents. Adjustments to the interest rates are made at frequent intervals such as every 30 days, 90 days, or whenever as stated in the loan papers. JFR uses shareholder funds, plus borrowed funds, to make investments, earn income, and then make monthly distributions to investors. At present, there is a widely held opinion that general interest rates will increase this year which has caused JFR to trade at the top of its 52-week range. However, it still pays out about 6.6% (annualized) based on current market price. Because the assets in this fund receive more income as interest rates increase, the fund can be expected to maintain distributions. Therefore, this fund might be of interest to those who seek monthly income and who want something of a hedge against rising interest rates. Other factors to consider are as follows: 1) trading range (52-weeks) high/low $12.13/9.06 2) monthly dividend rate $.0675 per share 3) distribution rate is about 6.6% on annual basis 4) trading volume about 294,000 (90-day average) 5) net asset value about $11.79 (note this is below market price) 6) fund size about $1 billion of which about 35% is borrowed 7) started March, 2004 8) closed end fund 9) total holdings about 346 at year-end 2016 10) about 90% of holdings mature in 7 years or less 11) fund manager, Mr. Gunther Stein has managed JFR for over 12 years Information presented here is believed to be accurate, but is not, and cannot be guaranteed because the information is taken from commonly available sources such as Nuveen website,, and/or stockbroker website. Please know that this writer does not own JFR and does not plan to purchase this stock. This presentation is intended for reader interest/entertainment only and does not encourage or discourage investment in JFR. EACH READER MUST CONDUCT THEIR OWN RESEARCH BEFORE MAKING ANY INVESTMENT Happy$$$Trading  Ed Reed

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