Nuveen Preferred Securities and Income Fund Class R6 (NPSFX)

Overview

This fund focuses on investing primarily in municipal bonds that are exempt from regular federal personal income tax. It adheres to a strategy of allocating at least 80% of its combined net assets and any borrowed funds towards investments in such tax-exempt municipal bonds. The fund primarily targets the segment of the market consisting of lower-quality, long-term municipal bonds. To enhance its investment outcomes, it may also employ strategies that effectively leverage its investments, including the use of inverse floaters. This approach allows the fund to aim for higher returns by investing in riskier bonds while employing financial instruments to potentially offset some of the inherent risks.

Products and Services

• Municipal Bond Investments

  The core of the fund's portfolio is composed of municipal bonds that offer income exempt from regular federal personal income tax. This provides an attractive option for investors looking to receive tax-advantaged income, making it an essential component of the fund's investment strategy.

• Lower-Quality Long-Term Municipal Bonds

  As part of its strategy, the fund invests significantly in lower-quality, long-term municipal bonds. These bonds, while posing a higher risk compared to higher-quality bonds, offer the potential for higher yields. This choice reflects the fund's approach to seeking out higher return opportunities within the municipal bond market by carefully selecting bonds with a risk/return profile that aligns with its overall investment objectives.

• Leverage through Inverse Floaters

  To maximize potential returns, the fund may utilize effective leverage strategies such as investments in inverse floaters. This financial instrument allows the fund to potentially increase its returns by capitalizing on movements in interest rates. By engaging in such strategies, the fund aims to enhance its portfolio's income potential while meticulously managing the associated risks.