• Jerremy Alexander Newsome

IncomeNOW JFR

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 fac