42% of advisors using CEFs have more than $100 million AUM vs. 24% of advisors not using CEFs
Have greater assets under management:
42% of advisors using CEFs have more than $100 million AUM $100 million AUM vs. 24% of advisors not using CEFs
Have greater assets under Have greater assets under management:management:
11
Reasons Why Advisors Should Consider Closed-End Funds What is a CEF? Closed-end funds (CEF) issue a set number of shares to investors at the fund’s launch, and generally do not issue additional funds for sale, giving CEFs unique prop-erties that advisors can take advantage to differentiate their firms and attract and retain clients.
Here are nine reasons advisors should consider adding CEFs to clients’ diversified portfolios:
Advisors choose CEFs to:
Increaseportfolio income,61%
41%
Are more than twice as likely as advisors who don’t use CEFs to retain clients for 15 years or more
Diversify income producing portfolio investments,50%
Access more dependable income sources,25%
CEFs cangenerateincome
9
22 Advisors who use CEFs:CEFs cansupport
firm growth
33CEFs are not limited
to municipalbonds
CEFs are available in a wide variety of asset classes including:• non-rated bonds• taxable fixed income
• senior loans• preferred securities
• equites• convertibles.
The top three types of CEFs advisors use:
77CEFs can differentiate
your firm
CEFs can help you to attract and retain clients:
Look for an unleveraged CEF that will tend to be more predictable and have fewer variables.
Visit the Education Center at CEFConnect.com to learn more.
44There’s no cash drag on
performance
Since CEFs do not have to maintain cash reserves to meet shareholder redemptions, CEFs can stay fully invested and invest in less liquid asset classes that may offer higher income and returns.
55CEFs can use leverageto increase
returns
CEFs take advantage of spreads by:
borrowing at short-term interest rates
investing the proceeds in longer-term securities at a higher rate of return.
66Investors can buy CEFsat a discount
Since CEFs can trade away from NAV, advisors can buy funds at a discount.
Municipal bonds 53%
46%Taxable U.S. bonds
U.S. equities 43%
Only 53% of advisors currently use CEFs—giving advisors a chance to differentiate their firm.
of investors have never heard of CEFs
88% of investors say their advisor has never discussed CEFs with them
75% of investors are interested in CEFs when they learn about the features
88Whichclients areCEFs for?
CEFs may be appropriate for a variety of clients, not just retirees
Here are two easy steps you can take to get started with CEFs in your practice:
About Nuveen
Nuveen is a premier global investment manager that has been helping clients meet their goals for more
than 100 years.
EWP-932729PR-E0819X
Risks and disclosures
It is important to consider the objectives, risks, charges and expenses of any fund before investing.
Investing in closed-end funds involves risk; principal loss is possible. There is no guarantee a fund’s
investment objective will be achieved. Closed-end fund shares may frequently trade at a discount or
premium to their net asset value (NAV). When sold, shares may be worth more or less than the
purchase price or the net asset value. It is important to consider the objectives, risks, charges and
expenses of any fund investing. For this and other information that should be read carefully, please
view the prospectus or other current fund information provided by the fund’s sponsor. Open-end
mutual funds and CEFs are different types of investment vehicles with different expense structures and
different inflows/outflows and distribution requirements. Closed-end fund potential distribution
sources include net investment income, realized gains, and return of capital. All investments carry a
certain degree of risk and there is no assurance that an investment will provide positive performance
over any period of time. Closed-end fund historical distribution sources have included net investment
income, realized gains, and return of capital.
Source: Nuveen 2018 CEF survey, Advisors' Use of CEFs
CEFs provide the potential for attractive income and return and can supplement a well-diversified portfolio. This income stream is often tax-advantaged, the funds can invest in less liquid asset classes and use leverage to potentially increase income and returns. As investment advice becomes commoditized and fees are compressed, CEFs can help advisors differentiate their firms and serve clients over the long-term.
For more information on how to incorporate closed-end funds into client portfolios, contact Nuveen at 800.752.8700 or visit nuveen.com/closed-end-funds/learn-more
99It’s easyto get started
with CEFs
Advisors use CEFs for all age demographics:
Advisors’ use of CEFs with non-retired clients’ is steadily increasing:
2016 2017 2018
of clients are under age 40
of clients are age 40-59
of clients are age 60+
12%
44%
44% 22%
24%
28%
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