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Nuveen Quality Preferred Income Fund 3 (NYSE: JHP)
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The fund's primary investment objective is high current income consistent with capital preservation. The fund's secondary objective is to enhance portfolio value.
The fund invests at least 80% of its net assets in preferred securities; up to 20% of its net assets in debt securities, including convertible debt securities and convertible preferred securities; and 100% of its total assets in securities that, at the time of investment, are investment grade quality (BBB/Baa or better), which may include up to 10% in securities that are rated investment grade by at least one nationally recognized statistical rating organization and lower by another. Ratings on particular holdings may have declined since purchase. The fund uses leverage.
| Current Distribution (Monthly) (As of 10/1/2010) | $0.0520 |
| Avg. Earnings/Share** ( As of 7/31/2010) | $0.0541 |
| Avg. Earnings/Distribution Ratio ( As of 7/31/2010) | 104.04% |
| Avg. UNII Per Share ( As of 7/31/2010) | $0.0392 |
| Total % of Portfolio Leveraged (As of 7/30/2010) | 22.56% |
| Average Cost of Leverage(13 weeks) (As of 7/30/2010) | 1.48% |
- High current income potential consistent with capital preservation
- Additional diversification within their portfolios
- Enhanced capital preservation due to historically low correlation with other asset classes
- Portfolio management by one of the leading managers of preferred securities
| Closing Share Price (As of 9/1/2010) | $8.00 |
| Closing NAV per Share (As of 9/1/2010) | $8.26 |
| Premium / Discount | -3.14% |
| Current Distribution Rate (Market price)†† | 7.80% |
| Distribution Amount (Monthly) | $0.0520 |
| Total Managed Assets | $243,822,082 |
| Common Shares | |
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| Total Common Net Assets | $188,822,082 |
| Shares Outstanding | 23,714,024 |
| Avg Daily Volume (in shares) | 66,514 |
| Dollar | Percent | |
|---|---|---|
| Total Structural Leverage | $55,000,000 | 22.56% |
| Effective Leverage | $55,000,000 | 22.56% |
| Asset Coverage 1 | More Information |
| CUSIP | 67072W101 |
| NAV Ticker | XJHPX |
| Inception Date | 12/18/2002 |
| Inception NAV | $14.33 |
| Inception Share Price | $15.00 |
| # of Holdings | 119 |
| % Foreign Holdings ‡ | 32.11% |
| % Large, Mid, Small Cap † | 0.0%,0.0%,100.0% |
| Avg. Maturity (years) * | 33.50 |
| Avg. Leverage Adjusted Duration (years) * | 15.71 |
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Share Price | 21.40% | 54.50% | -45.66% | -23.61% | 25.00% | -2.16% | -0.42% | 14.65% | -- | -- |
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NAV | 16.82% | 63.23% | -48.00% | -16.01% | 7.49% | 2.88% | 7.72% | 16.10% | -- | -- |
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Share Price | 30.91% | -3.92% | -2.27% | -- | 1.09% |
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NAV | 33.84% | -4.03% | -2.30% | -- | 1.85% |
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| An independently managed wholly owned subsidiary of Principal Global Investors, LLC, founded in 1987 is one of the country’s leading managers of preferred securities. Spectrum specializes in the management of diversified preferred security portfolios for institutional investors. Currently, Spectrum is sub-advisor to the preferred securities component of several Nuveen Closed-End Funds. Spectrum Asset Management is led by two principals with a combined 50 years of preferred securities experience. The investment team averages more than 15 years each in the preferred securities market. Spectrum used a value-oriented management style, which emphasized rigorous research to identify appropriate companies, sectors and market opportunities. |
| Total Fund | Common Shares | |
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| Management Fees | 0.77% | 1.01% |
| Interest Expenses | 0.31% | 0.40% |
| Other Expenses | 0.07% | 0.09% |
| Total | 1.15% | 1.50% |
| Issuer | Dollar Value | % of Total Portfolio |
|---|---|---|
| Wells Fargo and Com: Debt | $11,298,143 | 4.83% |
| Deutsche Bank AG: Debt | $8,072,937 | 3.44% |
| Societe Generale: Debt | $6,863,213 | 2.92% |
| Credit Agricole S.A: Debt | $6,349,500 | 2.70% |
| Viacom Incorporated: Debt | $6,163,083 | 2.62% |
| JP Morgan Chase & C: Debt | $5,871,483 | 2.50% |
| AXA: Debt | $5,782,875 | 2.46% |
| Protective Life Cor: Debt | $5,637,950 | 2.40% |
| Aegon NV: Debt | $5,614,876 | 2.39% |
| Public Storage Inco: Debt | $5,511,660 | 2.34% |
Data shown represents past performance and is no guarantee of future results. Market price and net asset value (NAV) of a Fund's shares will fluctuate with market conditions. Current performance may be higher or lower than the performance shown.
1 The ratio of a fund's total managed assets to the sum of (the fund's outstanding preferred shares, at par, plus its outstanding borrowings).
¶ Holdings and their ratings may change over time. Ratings shown are generally the highest rating given by one or more national rating agencies. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade ratings. Holdings designated “NR” are not rated by a national rating agency, and may be assigned an internal rating by the fund’s investment adviser.
* For the 96.80% of the portfolio invested in debt securities.
**The average earnings per share and UNII figures are monthly amounts based on three month averages for the municipal funds and senior loan funds and six month averages for all other taxable funds. For JRS and 25% of JDD, the average earnings per share represents net REIT cash flow which may consist of income, capital gains and/or a return of capital.
† Percentage are relative to the 3.19% of the portfolio invested in equity securities.
†† Distribution rates represent the latest declared regular distribution, annualized, relative to the most recent daily market price and NAV.
‡ Relative to the fund's total managed assets.
Total return is determined by subtracting the initial investment from the redeemable value of the investment at the end of the investment period, dividing the remainder by the initial investment and expressing the result as a percentage. The calculation assumes that all fund distributions have been reinvested.
