Nuveen Closed-End Funds Reject ARPS Demand Letters | Business Wire

CHICAGO–(BUSINESS WIRE)–Nuveen Investments, a leading global provider of investment services to

institutions and high-net-worth investors, today announced that, after

an extensive independent review, the Board of each of the closed-end

funds identified below has rejected the demands contained in demand

letters received by each fund related to the refinancing and/or

redemption of its Auction Rate Preferred Shares (ARPS).

As previously announced on April 26, 2010, 26 Nuveen leveraged

closed-end funds each received a demand letter from a law firm on behalf

of purported holders of the funds’ common shares. Each letter alleged

that the fund’s Adviser (Nuveen Asset Management) as well as the fund’s

Officers and Directors breached their fiduciary duties by favoring the

interests of ARPS shareholders over those of common shareholders in

connection with each fund’s ARPS refinancing and/or redemption

activities, and demanded that the Board take action to remedy those

alleged breaches. Subsequently, four additional funds each received a

similar demand letter from the same law firm.

In response to each of the demand letters, the funds’ Board established

a Demand Committee of certain of its disinterested and independent

Directors to investigate the claims made in the demand letters and to

report to the full Board its findings and recommendation. The Demand

Committee retained independent counsel to assist it in conducting an

extensive investigation of the claims made in the demand letters. Based

upon its investigation, the Demand Committee found that it is not in the

best interests of the funds or its shareholders to take the actions

suggested in the demand letters, and recommended that the full Board

reject the demands made in the demand letters. After reviewing the

findings and recommendation of the Demand Committee, the full Board for

each fund unanimously adopted the Committee’s recommendation.

In light of the Board’s actions, the Board has resumed consideration of

additional ARPS refinancings. Any future determinations by the Board to

refinance a specific fund’s ARPS will continue to be based upon a review

of the fund’s specific circumstances, considering, among other factors,

the availability and terms of potential alternative sources of leverage,

the receipt of applicable ratings and other necessary approvals for such

alternative sources of leverage, and overall market conditions.

The funds for which Board action was taken to reject the demand letters

are as follows:

NXE:

 

 

 

Nuveen Arizona Dividend Advantage Municipal Fund 3

JDD:

Nuveen Diversified Dividend and Income Fund

NAD:

Nuveen Dividend Advantage Municipal Fund

NXZ:

Nuveen Dividend Advantage Municipal Fund 2

NZF:

Nuveen Dividend Advantage Municipal Fund 3

NKX:

Nuveen Insured California Tax-Free Advantage Municipal Fund

NVG:

Nuveen Insured Dividend Advantage Municipal Fund

NQI:

Nuveen Insured Quality Municipal Fund, Inc.

NEA:

Nuveen Insured Tax-Free Advantage Municipal Fund

NQM:

Nuveen Investment Quality Municipal Fund, Inc.

JPC:

Nuveen Multi-Strategy Income and Growth Fund

JQC:

Nuveen Multi-Strategy Income and Growth Fund 2

NMZ:

Nuveen Municipal High Income Opportunity Fund

NXJ:

Nuveen New Jersey Dividend Advantage Municipal Fund

NNP:

Nuveen New York Performance Plus Municipal Fund, Inc.

NUN:

Nuveen New York Quality Income Municipal Fund, Inc.

NIF:

Nuveen Premier Insured Municipal Income Fund, Inc.

NPI:

Nuveen Premium Income Municipal Fund, Inc.

NPM:

Nuveen Premium Income Municipal Fund 2, Inc.

JTP:

Nuveen Quality Preferred Income Fund

JPS:

Nuveen Quality Preferred Income Fund 2

JHP:

Nuveen Quality Preferred Income Fund 3

JRS:

Nuveen Real Estate Income Fund

JTD:

Nuveen Tax-Advantaged Dividend Growth Fund

JFP:

Nuveen Tax-Advantaged Floating Rate Fund

NPV:

Nuveen Virginia Premium Income Municipal Fund

JRO:

Nuveen Floating Rate Income Opportunity Fund

NZH:

Nuveen California Dividend Advantage Municipal Fund 3

NAC:

Nuveen California Dividend Advantage Municipal Fund

NPF:

Nuveen Premier Municipal Income Fund, Inc.

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