Nuveen Fund Advisors, LLC, et al.; Notice of Application, 74849-74851 [2016-25942]
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Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Notices
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
received will be posted without change;
the Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–NYSE–
2016–67, and should be submitted on or
before November 17, 2016.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.13
Brent J. Fields,
Secretary.
[FR Doc. 2016–25937 Filed 10–26–16; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Investment Company Act Release No.
32322; File No. 812–14619]
Nuveen Fund Advisors, LLC, et al.;
Notice of Application
October 21, 2016.
Securities and Exchange
Commission (‘‘Commission’’).
ACTION: Notice of an application for an
order pursuant to: (a) Section 6(c) of the
Investment Company Act of 1940
(‘‘Act’’) granting an exemption from
sections 18(f) and 21(b) of the Act; (b)
section 12(d)(1)(J) of the Act granting an
exemption from section 12(d)(1) of the
Act; (c) sections 6(c) and 17(b) of the
Act granting an exemption from sections
17(a)(1), 17(a)(2) and 17(a)(3) of the Act;
and (d) section 17(d) of the Act and rule
17d–1 under the Act to permit certain
joint arrangements and transactions.
Applicants request an order that would
permit certain registered open-end
management investment companies to
participate in a joint lending and
borrowing facility.
sradovich on DSK3GMQ082PROD with NOTICES
AGENCY:
Nuveen All Cap Energy
MLP Opportunities Fund, Nuveen
APPLICANTS:
13 17
CFR 200.30–3(a)(12).
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Jkt 241001
AMT-Free Municipal Value Fund,
Nuveen AMT-Free Quality Municipal
Income Fund, Nuveen Arizona Premium
Income Municipal Fund, Nuveen Build
America Bond Fund, Nuveen Build
America Bond Opportunity Fund,
Nuveen California AMT-Free Municipal
Income Fund, Nuveen California
Dividend Advantage Municipal Fund,
Nuveen California Dividend Advantage
Municipal Fund 2, Nuveen California
Dividend Advantage Municipal Fund 3,
Nuveen California Municipal Value
Fund 2, Nuveen California Municipal
Value Fund, Inc., Nuveen California
Select Tax-Free Income Portfolio,
Nuveen Connecticut Premium Income
Municipal Fund, Nuveen Core Equity
Alpha Fund, Nuveen Credit Strategies
Income Fund, Nuveen Diversified
Dividend and Income Fund, Nuveen
Dow 30SM Dynamic Overwrite Fund,
Nuveen Energy MLP Total Return Fund,
Nuveen Enhanced AMT-Free Municipal
Credit Opportunities Fund, Nuveen
Enhanced Municipal Credit
Opportunities Fund, Nuveen Enhanced
Municipal Value Fund, Nuveen Flexible
Investment Income Fund, Nuveen
Floating Rate Income Fund, Nuveen
Floating Rate Income Opportunity
Fund, Nuveen Georgia Dividend
Advantage Municipal Fund 2, Nuveen
Global High Income Fund, Nuveen
Global Equity Income Fund, Nuveen
High Income 2020 Target Term Fund,
Nuveen High Income December 2018
Target Term Fund, Nuveen High Income
December 2019 Target Term Fund,
Nuveen High Income November 2021
Target Term Fund, Nuveen Intermediate
Duration Municipal Term Fund, Nuveen
Intermediate Duration Quality
Municipal Term Fund, Nuveen
Investment Funds, Inc., Nuveen
Investment Trust, Nuveen Investment
Trust II, Nuveen Investment Trust III,
Nuveen Investment Trust V, Nuveen
Managed Accounts Portfolios Trust,
Nuveen Maryland Premium Income
Municipal Fund, Nuveen Massachusetts
Premium Income Municipal Fund,
Nuveen Michigan Quality Income
Municipal Fund, Nuveen Minnesota
Municipal Income Fund, Nuveen
Missouri Premium Income Municipal
Fund, Nuveen Mortgage Opportunity
Term Fund 2, Nuveen Mortgage
Opportunity Term Fund, Nuveen MultiMarket Income Fund, Nuveen Multistate
Trust I, Nuveen Multistate Trust II,
Nuveen Multistate Trust III, Nuveen
Multistate Trust IV, Nuveen Municipal
2021 Target Term Fund, Nuveen
Municipal High Income Opportunity
Fund, Nuveen Municipal Income Fund,
Inc., Nuveen Municipal Trust, Nuveen
Municipal Value Fund, Inc., Nuveen
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74849
NASDAQ 100 Dynamic Overwrite Fund,
Nuveen New Jersey Dividend Advantage
Municipal Fund, Nuveen New Jersey
Municipal Value Fund, Nuveen New
York AMT-Free Municipal Income
Fund, Nuveen New York Dividend
Advantage Municipal Fund, Nuveen
New York Municipal Value Fund 2,
Nuveen New York Municipal Value
Fund, Inc., Nuveen New York Select
Tax-Free Income Portfolio, Nuveen
North Carolina Premium Income
Municipal Fund, Nuveen Ohio Quality
Income Municipal Fund, Nuveen
Pennsylvania Investment Quality
Municipal Fund, Nuveen Pennsylvania
Municipal Value Fund, Nuveen
Preferred and Income Term Fund,
Nuveen Preferred Income Opportunities
Fund, Nuveen Preferred Securities
Income Fund, Nuveen Quality
Municipal Income Fund, Nuveen Real
Asset Income and Growth Fund,
Nuveen Real Estate Income Fund,
Nuveen S&P 500 Buy-Write Income
Fund, Nuveen S&P 500 Dynamic
Overwrite Fund, Nuveen Select
Maturities Municipal Fund, Nuveen
Select Tax-Free Income Portfolio,
Nuveen Select Tax-Free Income
Portfolio 2, Nuveen Select Tax-Free
Income Portfolio 3, Nuveen Senior
Income Fund, Nuveen Short Duration
Credit Opportunities Fund, Nuveen
Strategy Funds, Inc., Nuveen TaxAdvantaged Dividend Growth Fund,
Nuveen Tax-Advantaged Total Return
Strategy Fund, Nuveen Texas Quality
Income Municipal Fund, Nuveen
Virginia Premium Income Municipal
Fund, Diversified Real Asset Income
Fund, each an investment company
organized as a business trust or a
corporation under the laws of
Massachusetts, Maryland or Minnesota
and registered under the Act as an openend or closed-end management
investment company,1 and Nuveen
Fund Advisors, LLC (the ‘‘Adviser’’), a
Delaware limited liability company
registered as an investment adviser
under the Investment Advisers Act of
1940.
FILING DATES: The application was filed
on February 23, 2016 and amended on
July 1, 2016 and September 30, 2016.
HEARING OR NOTIFICATION OF HEARING:
An order granting the requested relief
will be issued unless the Commission
orders a hearing. Interested persons may
request a hearing by writing to the
Commission’s Secretary and serving
1 The Funds (as defined below) that are closedend management investment companies will not
participate as borrowers in the interfund lending
facility. None of the Funds are, or will be, money
market funds that comply with rule 2a–7 under the
Act.
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74850
Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Notices
applicants with a copy of the request,
personally or by mail. Hearing requests
should be received by the Commission
by 5:30 p.m. on November 15, 2016 and
should be accompanied by proof of
service on the applicants, in the form of
an affidavit, or, for lawyers, a certificate
of service. Pursuant to Rule 0–5 under
the Act, hearing requests should state
the nature of the writer’s interest, any
facts bearing upon the desirability of a
hearing on the matter, the reason for the
request, and the issues contested.
Persons who wish to be notified of a
hearing may request notification by
writing to the Commission’s Secretary.
ADDRESSES: Secretary, U.S. Securities
and Exchange Commission, 100 F Street
NE., Washington, DC, 20549–1090;
Applicants: Nuveen Fund Advisors,
LLC, 333 West Wacker Drive, Chicago,
IL 60606.
FOR FURTHER INFORMATION CONTACT:
Deepak T. Pai, Senior Counsel, at (202)
551–6876 or Mary Kay Frech, Branch
Chief, at (202) 551–6821 (Division of
Investment Management, Chief
Counsel’s Office).
SUPPLEMENTARY INFORMATION: The
following is a summary of the
application. The complete application
may be obtained via the Commission’s
Web site by searching for the file
number, or an applicant using the
Company name box, at https://
www.sec.gov/search/search.htm or by
calling (202) 551–8090.
sradovich on DSK3GMQ082PROD with NOTICES
Summary of the Application
1. Applicants request an order that
would permit the applicants to
participate in an interfund lending
facility where each Fund could lend
money directly to and borrow money
directly from other Funds to cover
unanticipated cash shortfalls, such as
unanticipated redemptions or trade
fails.2 The Funds will not borrow under
the facility for leverage purposes and
the loans’ duration will be no more than
7 days.3
2. Applicants anticipate that the
proposed facility would provide a
borrowing Fund with a source of
2 Applicants request that the order apply to the
applicants and to any existing or future registered
open-end or closed-end management investment
company or series thereof for which the Adviser or
any successor thereto or an investment adviser
controlling, controlled by, or under common
control with the Adviser or any successor thereto
serves as investment adviser (each a ‘‘Fund’’ and
collectively the ‘‘Funds’’ and each such investment
adviser an ‘‘Adviser’’). For purposes of the
requested order, ‘‘successor’’ is limited to any entity
that results from a reorganization into another
jurisdiction or a change in the type of a business
organization.
3 Any Fund, however, will be able to call a loan
on one business day’s notice.
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17:43 Oct 26, 2016
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liquidity at a rate lower than the bank
borrowing rate at times when the cash
position of the Fund is insufficient to
meet temporary cash requirements. In
addition, Funds making short-term cash
loans directly to other Funds would
earn interest at a rate higher than they
otherwise could obtain from investing
their cash in repurchase agreements or
certain other short term money market
instruments. Thus, applicants assert that
the facility would benefit both
borrowing and lending Funds.
3. Applicants agree that any order
granting the requested relief will be
subject to the terms and conditions
stated in the application. Among others,
the Adviser, through a designated
committee, would administer the
facility as a disinterested fiduciary as
part of its duties under the investment
management and administrative
agreements with the Funds and would
receive no additional fee as
compensation for its services in
connection with the administration of
the facility. The facility would be
subject to oversight and certain
approvals by the Funds’ Board,
including, among others, approval of the
interest rate formula and of the method
for allocating loans across Funds, as
well as review of the process in place to
evaluate the liquidity implications for
the Funds. A Fund’s aggregate
outstanding interfund loans will not
exceed 15% of its net assets, and the
Fund’s loans to any one Fund will not
exceed 5% of the lending Fund’s net
assets.4
4. Applicants assert that the facility
does not raise the concerns underlying
section 12(d)(1) of the Act given that the
Funds are part of the same group of
investment companies and there will be
no duplicative costs or fees to the
Funds.5 Applicants also assert that the
proposed transactions do not raise the
concerns underlying sections 17(a)(1),
17(a)(3), 17(d) and 21(b) of the Act as
the Funds would not engage in lending
transactions that unfairly benefit
insiders or are detrimental to the Funds.
Applicants state that the facility will
offer both reduced borrowing costs and
enhanced returns on loaned funds to all
participating Funds and each Fund
would have an equal opportunity to
borrow and lend on equal terms based
on an interest rate formula that is
objective and verifiable. With respect to
the relief from section 17(a)(2) of the
4 Under certain circumstances, a borrowing Fund
will be required to pledge collateral to secure the
loan.
5 Applicants state that the obligation to repay an
interfund loan could be deemed to constitute a
security for the purposes of sections 17(a)(1) and
12(d)(1) of the Act.
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Frm 00089
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Act, applicants note that any collateral
pledged to secure an interfund loan
would be subject to the same conditions
imposed by any other lender to a Fund
that imposes conditions on the quality
of or access to collateral for a borrowing
(if the lender is another Fund) or the
same or better conditions (in any other
circumstance).6
5. Applicants also believe that the
limited relief from section 18(f)(1) of the
Act that is necessary to implement the
facility (because the lending Funds are
not banks) is appropriate in light of the
conditions and safeguards described in
the application and because the openend Funds would remain subject to the
requirement of section 18(f)(1) that all
borrowings of the open-end Fund,
including combined interfund loans and
bank borrowings, have at least 300%
asset coverage.
6. Section 6(c) of the Act permits the
Commission to exempt any persons or
transactions from any provision of the
Act if such exemption is necessary or
appropriate in the public interest and
consistent with the protection of
investors and the purposes fairly
intended by the policy and provisions of
the Act. Section 12(d)(1)(J) of the Act
provides that the Commission may
exempt any person, security, or
transaction, or any class or classes of
persons, securities, or transactions, from
any provision of section 12(d)(1) if the
exemption is consistent with the public
interest and the protection of investors.
Section 17(b) of the Act authorizes the
Commission to grant an order
permitting a transaction otherwise
prohibited by section 17(a) if it finds
that (a) the terms of the proposed
transaction are fair and reasonable and
do not involve overreaching on the part
of any person concerned; (b) the
proposed transaction is consistent with
the policies of each registered
investment company involved; and (c)
the proposed transaction is consistent
with the general purposes of the Act.
Rule 17d–1(b) under the Act provides
that in passing upon an application filed
under the rule, the Commission will
consider whether the participation of
the registered investment company in a
joint enterprise, joint arrangement or
profit sharing plan on the basis
proposed is consistent with the
provisions, policies and purposes of the
Act and the extent to which such
participation is on a basis different from
or less advantageous than that of the
other participants.
6 Applicants state that any pledge of securities to
secure an interfund loan could constitute a
purchase of securities for purposes of section
17(a)(2) of the Act.
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Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Notices
For the Commission, by the Division of
Investment Management, under delegated
authority.
Brent J. Fields,
Secretary.
of the most significant parts of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule
Change
[FR Doc. 2016–25942 Filed 10–26–16; 8:45 am]
BILLING CODE 8011–01–P
1. Purpose
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–79132; File No. SR–
NYSEMKT–2016–94]
Self-Regulatory Organizations; NYSE
MKT LLC; Notice of Filing and
Immediate Effectiveness of Proposed
Rule Change Amending Rule 497—
Equities
October 21, 2016.
Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934 (the
‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that on October
13, 2016, NYSE MKT LLC (the
‘‘Exchange’’ or ‘‘NYSE MKT’’) filed with
the Securities and Exchange
Commission (the ‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the self-regulatory
organization. The Commission is
publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange proposes to amend
Rule 497—Equities regarding the
requirements for the listing of securities
that are issued by the Exchange or any
of its affiliates. The proposed rule
change is available on the Exchange’s
Web site at www.nyse.com, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
sradovich on DSK3GMQ082PROD with NOTICES
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
self-regulatory organization included
statements concerning the purpose of,
and basis for, the proposed rule change
and discussed any comments it received
on the proposed rule change. The text
of those statements may be examined at
the places specified in Item IV below.
The Exchange has prepared summaries,
set forth in sections A, B, and C below,
1 15
U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15
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The Exchange proposes to amend
Rule 497—Equities (Additional
Requirements for Listed Securities
Issued by Intercontinental Exchange,
Inc. or its Affiliates) regarding the
requirements for the listing of securities
that are issued by the Exchange or any
of its affiliates. Rule 497—Equities sets
forth certain requirements that
securities issued by the Exchange’s
ultimate parent, Intercontinental
Exchange, Inc. (‘‘ICE’’), or its affiliates,
must meet before they can be listed on
the Exchange, including certain prelisting approvals and post-listing
monitoring requirements.
Specifically, the Exchange is
proposing to make the following
changes to Rule 497—Equities: (i)
Expand the definition of Affiliate
Security under Rule 497—Equities
(a)(2); (ii) require that the annual review
required under Rule 497—Equities (c)(2)
be forwarded to the Exchange’s
Regulatory Oversight Committee
(‘‘ROC’’); and (iii) make non-substantive
typographical changes.
Rule 497—Equities (a)(2) currently
defines ‘‘Affiliate Security’’ as ‘‘any
security issued by an ICE Affiliate.’’ 4
The Exchange proposes to expand the
definition of Affiliate Security to
include any Exchange-listed option on
any security issued by an ICE Affiliate.
As a consequence, under Rule 497—
Equities (b), prior to listing any new
class of options on a security issued by
an ICE Affiliate, Exchange regulatory
staff would be required to make a
finding that the option class satisfies the
Exchange’s rules for listing, and the
ROC would be required to approve such
finding. Likewise, throughout the
continued listing of such option class on
the Exchange, it would be covered by
the reporting requirements of Rule
497—Equities (c).
In the event that an ICE Affiliate lists
an Affiliate Security, Rule 497—Equities
(c)(2) requires that, throughout the
4 For purposes of Rule 497—Equities, an ‘‘ICE
Affiliate’’ is ‘‘ICE and any entity that directly or
indirectly, through one or more intermediaries,
controls, is controlled by, or is under common
control with ICE, where ‘control’ means that one
entity possesses, directly or indirectly, voting
control of the other entity either through ownership
of capital stock or other equity securities or through
majority representation on the board of directors or
other management body of such entity.’’ Rule 497—
Equities (a)(1).
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74851
continued listing of the Affiliate
Security on the Exchange, an
independent accounting firm will
review the listing standards for the
Affiliate Security and a copy of the
report shall be forwarded promptly to
the Securities and Exchange
Commission (‘‘Commission’’). The
Exchange proposes to expand Rule
497—Equities (c)(2) to require that such
report also be forwarded to the ROC.
The Exchange proposes to make the
following additional, non-substantive
changes to Rule 497—Equities (c):
• It proposes to move ‘‘the Exchange
shall’’ from the end of Rule 497—
Equities (c) to the start of Rule 497—
Equities (c)(1), as the text only applies
to Rule 497—Equities (c)(1), and not
sub-paragraphs (2) or (3), and change
‘‘shall’’ to ‘‘will.’’
• It proposes to add ‘‘and trading’’
after ‘‘Throughout the continued
listing’’ in Rule 497—Equities (c), as
Rule 497—Equities (c)(1) references the
listing of Affiliate Securities, as well as
their trading.
• The Exchange proposes to delete an
extraneous ‘‘that’’ from the final clause
of Rule 497—Equities (c)(1)(b), so that it
reads as follows:
Exchange regulatory staff’s monitoring
of the trading of the Affiliate Security
including summaries of all related
surveillance alerts, complaints,
regulatory referrals, adjusted trades,
investigations, examinations, formal and
informal disciplinary actions, exception
reports and trading data used to ensure
the Affiliate Security’s compliance with
the Exchange’s listing and trading rules.
The Exchange notes that the proposed
amendments would be consistent with
recent changes to the Bats BZX
Exchange, Inc. (‘‘BZX’’) Rule 14.3
regarding requirements for the listing of
securities listed by BZX or any of its
affiliates.5
2. Statutory Basis
The Exchange believes that the
proposed rule change is consistent with
Section 6(b) of the Exchange Act 6 in
general, and Section 6(b)(5) 7 in
particular, in that it because it is
designed to prevent fraudulent and
manipulative acts and practices, to
promote just and equitable principles of
trade, to foster cooperation and
coordination with persons engaged in
regulating, clearing, settling, processing
information with respect to, and
facilitating transactions in securities, to
5 See Securities Exchange Act Release No. 77639
(April 18, 2016), 81 FR 23768 (April 22, 2016) (SR–
BatsBZX–2016–08).
6 15 U.S.C. 78f(b).
7 15 U.S.C. 78f(b)(5).
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Agencies
[Federal Register Volume 81, Number 208 (Thursday, October 27, 2016)]
[Notices]
[Pages 74849-74851]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-25942]
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SECURITIES AND EXCHANGE COMMISSION
[Investment Company Act Release No. 32322; File No. 812-14619]
Nuveen Fund Advisors, LLC, et al.; Notice of Application
October 21, 2016.
AGENCY: Securities and Exchange Commission (``Commission'').
ACTION: Notice of an application for an order pursuant to: (a) Section
6(c) of the Investment Company Act of 1940 (``Act'') granting an
exemption from sections 18(f) and 21(b) of the Act; (b) section
12(d)(1)(J) of the Act granting an exemption from section 12(d)(1) of
the Act; (c) sections 6(c) and 17(b) of the Act granting an exemption
from sections 17(a)(1), 17(a)(2) and 17(a)(3) of the Act; and (d)
section 17(d) of the Act and rule 17d-1 under the Act to permit certain
joint arrangements and transactions. Applicants request an order that
would permit certain registered open-end management investment
companies to participate in a joint lending and borrowing facility.
-----------------------------------------------------------------------
APPLICANTS: Nuveen All Cap Energy MLP Opportunities Fund, Nuveen AMT-
Free Municipal Value Fund, Nuveen AMT-Free Quality Municipal Income
Fund, Nuveen Arizona Premium Income Municipal Fund, Nuveen Build
America Bond Fund, Nuveen Build America Bond Opportunity Fund, Nuveen
California AMT-Free Municipal Income Fund, Nuveen California Dividend
Advantage Municipal Fund, Nuveen California Dividend Advantage
Municipal Fund 2, Nuveen California Dividend Advantage Municipal Fund
3, Nuveen California Municipal Value Fund 2, Nuveen California
Municipal Value Fund, Inc., Nuveen California Select Tax-Free Income
Portfolio, Nuveen Connecticut Premium Income Municipal Fund, Nuveen
Core Equity Alpha Fund, Nuveen Credit Strategies Income Fund, Nuveen
Diversified Dividend and Income Fund, Nuveen Dow 30SM Dynamic Overwrite
Fund, Nuveen Energy MLP Total Return Fund, Nuveen Enhanced AMT-Free
Municipal Credit Opportunities Fund, Nuveen Enhanced Municipal Credit
Opportunities Fund, Nuveen Enhanced Municipal Value Fund, Nuveen
Flexible Investment Income Fund, Nuveen Floating Rate Income Fund,
Nuveen Floating Rate Income Opportunity Fund, Nuveen Georgia Dividend
Advantage Municipal Fund 2, Nuveen Global High Income Fund, Nuveen
Global Equity Income Fund, Nuveen High Income 2020 Target Term Fund,
Nuveen High Income December 2018 Target Term Fund, Nuveen High Income
December 2019 Target Term Fund, Nuveen High Income November 2021 Target
Term Fund, Nuveen Intermediate Duration Municipal Term Fund, Nuveen
Intermediate Duration Quality Municipal Term Fund, Nuveen Investment
Funds, Inc., Nuveen Investment Trust, Nuveen Investment Trust II,
Nuveen Investment Trust III, Nuveen Investment Trust V, Nuveen Managed
Accounts Portfolios Trust, Nuveen Maryland Premium Income Municipal
Fund, Nuveen Massachusetts Premium Income Municipal Fund, Nuveen
Michigan Quality Income Municipal Fund, Nuveen Minnesota Municipal
Income Fund, Nuveen Missouri Premium Income Municipal Fund, Nuveen
Mortgage Opportunity Term Fund 2, Nuveen Mortgage Opportunity Term
Fund, Nuveen Multi-Market Income Fund, Nuveen Multistate Trust I,
Nuveen Multistate Trust II, Nuveen Multistate Trust III, Nuveen
Multistate Trust IV, Nuveen Municipal 2021 Target Term Fund, Nuveen
Municipal High Income Opportunity Fund, Nuveen Municipal Income Fund,
Inc., Nuveen Municipal Trust, Nuveen Municipal Value Fund, Inc., Nuveen
NASDAQ 100 Dynamic Overwrite Fund, Nuveen New Jersey Dividend Advantage
Municipal Fund, Nuveen New Jersey Municipal Value Fund, Nuveen New York
AMT-Free Municipal Income Fund, Nuveen New York Dividend Advantage
Municipal Fund, Nuveen New York Municipal Value Fund 2, Nuveen New York
Municipal Value Fund, Inc., Nuveen New York Select Tax-Free Income
Portfolio, Nuveen North Carolina Premium Income Municipal Fund, Nuveen
Ohio Quality Income Municipal Fund, Nuveen Pennsylvania Investment
Quality Municipal Fund, Nuveen Pennsylvania Municipal Value Fund,
Nuveen Preferred and Income Term Fund, Nuveen Preferred Income
Opportunities Fund, Nuveen Preferred Securities Income Fund, Nuveen
Quality Municipal Income Fund, Nuveen Real Asset Income and Growth
Fund, Nuveen Real Estate Income Fund, Nuveen S&P 500 Buy-Write Income
Fund, Nuveen S&P 500 Dynamic Overwrite Fund, Nuveen Select Maturities
Municipal Fund, Nuveen Select Tax-Free Income Portfolio, Nuveen Select
Tax-Free Income Portfolio 2, Nuveen Select Tax-Free Income Portfolio 3,
Nuveen Senior Income Fund, Nuveen Short Duration Credit Opportunities
Fund, Nuveen Strategy Funds, Inc., Nuveen Tax-Advantaged Dividend
Growth Fund, Nuveen Tax-Advantaged Total Return Strategy Fund, Nuveen
Texas Quality Income Municipal Fund, Nuveen Virginia Premium Income
Municipal Fund, Diversified Real Asset Income Fund, each an investment
company organized as a business trust or a corporation under the laws
of Massachusetts, Maryland or Minnesota and registered under the Act as
an open-end or closed-end management investment company,\1\ and Nuveen
Fund Advisors, LLC (the ``Adviser''), a Delaware limited liability
company registered as an investment adviser under the Investment
Advisers Act of 1940.
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\1\ The Funds (as defined below) that are closed-end management
investment companies will not participate as borrowers in the
interfund lending facility. None of the Funds are, or will be, money
market funds that comply with rule 2a-7 under the Act.
FILING DATES: The application was filed on February 23, 2016 and
---------------------------------------------------------------------------
amended on July 1, 2016 and September 30, 2016.
HEARING OR NOTIFICATION OF HEARING: An order granting the requested
relief will be issued unless the Commission orders a hearing.
Interested persons may request a hearing by writing to the Commission's
Secretary and serving
[[Page 74850]]
applicants with a copy of the request, personally or by mail. Hearing
requests should be received by the Commission by 5:30 p.m. on November
15, 2016 and should be accompanied by proof of service on the
applicants, in the form of an affidavit, or, for lawyers, a certificate
of service. Pursuant to Rule 0-5 under the Act, hearing requests should
state the nature of the writer's interest, any facts bearing upon the
desirability of a hearing on the matter, the reason for the request,
and the issues contested. Persons who wish to be notified of a hearing
may request notification by writing to the Commission's Secretary.
ADDRESSES: Secretary, U.S. Securities and Exchange Commission, 100 F
Street NE., Washington, DC, 20549-1090; Applicants: Nuveen Fund
Advisors, LLC, 333 West Wacker Drive, Chicago, IL 60606.
FOR FURTHER INFORMATION CONTACT: Deepak T. Pai, Senior Counsel, at
(202) 551-6876 or Mary Kay Frech, Branch Chief, at (202) 551-6821
(Division of Investment Management, Chief Counsel's Office).
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained via the
Commission's Web site by searching for the file number, or an applicant
using the Company name box, at https://www.sec.gov/search/search.htm or
by calling (202) 551-8090.
Summary of the Application
1. Applicants request an order that would permit the applicants to
participate in an interfund lending facility where each Fund could lend
money directly to and borrow money directly from other Funds to cover
unanticipated cash shortfalls, such as unanticipated redemptions or
trade fails.\2\ The Funds will not borrow under the facility for
leverage purposes and the loans' duration will be no more than 7
days.\3\
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\2\ Applicants request that the order apply to the applicants
and to any existing or future registered open-end or closed-end
management investment company or series thereof for which the
Adviser or any successor thereto or an investment adviser
controlling, controlled by, or under common control with the Adviser
or any successor thereto serves as investment adviser (each a
``Fund'' and collectively the ``Funds'' and each such investment
adviser an ``Adviser''). For purposes of the requested order,
``successor'' is limited to any entity that results from a
reorganization into another jurisdiction or a change in the type of
a business organization.
\3\ Any Fund, however, will be able to call a loan on one
business day's notice.
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2. Applicants anticipate that the proposed facility would provide a
borrowing Fund with a source of liquidity at a rate lower than the bank
borrowing rate at times when the cash position of the Fund is
insufficient to meet temporary cash requirements. In addition, Funds
making short-term cash loans directly to other Funds would earn
interest at a rate higher than they otherwise could obtain from
investing their cash in repurchase agreements or certain other short
term money market instruments. Thus, applicants assert that the
facility would benefit both borrowing and lending Funds.
3. Applicants agree that any order granting the requested relief
will be subject to the terms and conditions stated in the application.
Among others, the Adviser, through a designated committee, would
administer the facility as a disinterested fiduciary as part of its
duties under the investment management and administrative agreements
with the Funds and would receive no additional fee as compensation for
its services in connection with the administration of the facility. The
facility would be subject to oversight and certain approvals by the
Funds' Board, including, among others, approval of the interest rate
formula and of the method for allocating loans across Funds, as well as
review of the process in place to evaluate the liquidity implications
for the Funds. A Fund's aggregate outstanding interfund loans will not
exceed 15% of its net assets, and the Fund's loans to any one Fund will
not exceed 5% of the lending Fund's net assets.\4\
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\4\ Under certain circumstances, a borrowing Fund will be
required to pledge collateral to secure the loan.
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4. Applicants assert that the facility does not raise the concerns
underlying section 12(d)(1) of the Act given that the Funds are part of
the same group of investment companies and there will be no duplicative
costs or fees to the Funds.\5\ Applicants also assert that the proposed
transactions do not raise the concerns underlying sections 17(a)(1),
17(a)(3), 17(d) and 21(b) of the Act as the Funds would not engage in
lending transactions that unfairly benefit insiders or are detrimental
to the Funds. Applicants state that the facility will offer both
reduced borrowing costs and enhanced returns on loaned funds to all
participating Funds and each Fund would have an equal opportunity to
borrow and lend on equal terms based on an interest rate formula that
is objective and verifiable. With respect to the relief from section
17(a)(2) of the Act, applicants note that any collateral pledged to
secure an interfund loan would be subject to the same conditions
imposed by any other lender to a Fund that imposes conditions on the
quality of or access to collateral for a borrowing (if the lender is
another Fund) or the same or better conditions (in any other
circumstance).\6\
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\5\ Applicants state that the obligation to repay an interfund
loan could be deemed to constitute a security for the purposes of
sections 17(a)(1) and 12(d)(1) of the Act.
\6\ Applicants state that any pledge of securities to secure an
interfund loan could constitute a purchase of securities for
purposes of section 17(a)(2) of the Act.
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5. Applicants also believe that the limited relief from section
18(f)(1) of the Act that is necessary to implement the facility
(because the lending Funds are not banks) is appropriate in light of
the conditions and safeguards described in the application and because
the open-end Funds would remain subject to the requirement of section
18(f)(1) that all borrowings of the open-end Fund, including combined
interfund loans and bank borrowings, have at least 300% asset coverage.
6. Section 6(c) of the Act permits the Commission to exempt any
persons or transactions from any provision of the Act if such exemption
is necessary or appropriate in the public interest and consistent with
the protection of investors and the purposes fairly intended by the
policy and provisions of the Act. Section 12(d)(1)(J) of the Act
provides that the Commission may exempt any person, security, or
transaction, or any class or classes of persons, securities, or
transactions, from any provision of section 12(d)(1) if the exemption
is consistent with the public interest and the protection of investors.
Section 17(b) of the Act authorizes the Commission to grant an order
permitting a transaction otherwise prohibited by section 17(a) if it
finds that (a) the terms of the proposed transaction are fair and
reasonable and do not involve overreaching on the part of any person
concerned; (b) the proposed transaction is consistent with the policies
of each registered investment company involved; and (c) the proposed
transaction is consistent with the general purposes of the Act. Rule
17d-1(b) under the Act provides that in passing upon an application
filed under the rule, the Commission will consider whether the
participation of the registered investment company in a joint
enterprise, joint arrangement or profit sharing plan on the basis
proposed is consistent with the provisions, policies and purposes of
the Act and the extent to which such participation is on a basis
different from or less advantageous than that of the other
participants.
[[Page 74851]]
For the Commission, by the Division of Investment Management,
under delegated authority.
Brent J. Fields,
Secretary.
[FR Doc. 2016-25942 Filed 10-26-16; 8:45 am]
BILLING CODE 8011-01-P