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Minimum Purchase
One Note minimum, $25,000 per Note.
No Load
There is no load if FundNotes are purchased or sold at auction. If notes are
purchased or sold in the secondary market, investors may have to pay a
commission to their financial advisor.
To Purchase at Auction
To buy FundNotes at auction, advisors and investors should first discuss an
acceptable yield level. All bids must specify:
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The number of notes desired ($25,000 per Note)
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The desired interest rate
Bids are submitted through each brokerage firm's preferred stock or note desk.
If the desired rate is accepted at auction, investors will receive either that
rate or a higher rate. Settlement is the next business day. If the desired rate
is higher than the rate derived through the auction process, the order will not
be filled.
Subsequent Auctions
At subsequent auctions, shareholders may submit one of three orders:
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Sell notes
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Hold notes, accepting the new rate established by the auction
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Hold at Rate, which means the notes will continue to be held only if the
investor's desired rate is at or below the auction rate. If the investor's
desired rate is not reached, the notes are sold.
To Purchase in the Secondary Market
Your financial advisor will call his or her preferred stock desk or the Nuveen
FundNotes desk for current rates and availability.
Many investors find Nuveen FundNotes to be an attractive alternative to:
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Money market funds
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Commercial paper
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Certificates of deposit
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U.S. Treasury bills
There are important distinctions between these investments. Nuveen FundNotes
provide (but do not guarantee) liquidity at par through weekly auctions. By
contrast, money market funds provide daily liquidity at net asset value and
seek to maintain a stable net asset value. Commercial paper is an unsecured
promissory note, and does not offer guaranteed liquidity. CDs are insured by an
agency of the federal government and pay fixed principal and interest, but are
subject to early withdrawal penalties. Treasury bills are backed by the full
faith and credit of the U.S. government and provide ready liquidity.
AAA Security
Each series of Nuveen FundNotes is rated AAA/Aaa by S&P and Moody's. These
two independent rating agencies award AAA ratings only to issuers having an
extremely strong capacity to pay both principal and interest.
At Least 3-to-1 Coverage
For a measure of protection from principal risk, every dollar invested in
FundNotes is backed by at least three times that amount in fund assets.
Diversification
For even more principal protection, the portfolios standing behind each series
of FundNotes are widely diversified by issuer.
Priority Payment
As FundNote holders, investors will be paid all interest before any payments
are made to the fund’s common shareholders and preferred shareholders.
Quality, Experienced Management
The funds issuing FundNotes are managed by Nuveen Advisory Corp., a subsidiary
of Nuveen Investments, Inc. Nuveen has been offering value-oriented investments
since 1898.
Auction and Market Liquidity
At any time, FundNote holders may instruct their advisors to offer their notes
for sale at the next weekly auction.* The $25,000 share price remains constant
providing a "$1 in, $1 out" feature that means the principal received upon sale
will always equal the amount invested.
Weekly Liquidity
There is a FundNote auction every week, so investors may purchase notes
whenever they’re ready. Note holders also may offer their notes for sale in the
secondary market on any business day. The amount received in the secondary
market sale may differ from the original amount invested, and may involve a
brokerage commission.
*If there is a lack of buyers for all available notes, then the auction will be
postponed. All holders will be awarded interest based on the current taxable
market rates until the next successful auction date.
For the past century, Nuveen Investments has adhered to the belief that the best
approach to investing is to apply conservative risk-management principles to
help minimize volatility. Building on this tradition, we offer a range of
high-quality equity and fixed income solutions that are integral to a
well-diversified portfolio.
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