Investors who experienced significant losses in Nuveen leveraged closed-end funds are urged to reach out to the renowned investment fraud law firm, Haselkorn & Thibaut. With a track record spanning over 50 years, nationwide offices, and an impressive 98% success rate, the firm has reclaimed millions for deceived investors.
Nuveen funds, including the Nuveen Quality Municipal Fund (NYSE: NAD) and the Nuveen Municipal Credit Fund (NYSE: NZF), were marketed by brokerage firms and financial advisors who may have downplayed the inherent risks. In 2022, as interest rates surged, these leveraged Nuveen funds saw sharp declines: NAD by 23% and NZF by 26%.
The municipal fund’s landscape is vast, offering investors tax-exempt income opportunities while backing public projects. Nuveen, a distinguished name in this sector, is renowned for its municipal bond funds. However, recent events have cast a shadow over some of its funds.
Many were led to believe these funds were low-risk, short-term ventures promising tax-free returns. Yet, as interest rates rose, the longer-maturity bonds these funds held became increasingly volatile. This volatility blindsided many investors.
If you feel misled about the risks of Nuveen funds by your financial advisor, you might be eligible for compensation. Haselkorn & Thibaut’s investment fraud attorneys are currently probing Merrill Lynch and advisor William King for potential misguidance related to Nuveen funds. One client reportedly lost $4 million after being assured that NAD was a low-risk, short-term venture.
Nuveen Quality Municipal Income Fund (NAD)
The Nuveen Quality Municipal Income Fund, known by its ticker NAD, primarily aims to offer income exempt from regular federal income tax. It achieves this by majorly investing in municipal securities—bonds from local and state governments. The income from these bonds is usually federal tax-exempt. By investing in them, NAD seeks to provide shareholders with tax-free income while also aiming to boost the portfolio’s overall value.
Nuveen Municipal Credit Income Fund (NZF)
Conversely, the Nuveen Municipal Credit Income Fund (NZF) has recently been in the limelight. Concerns arose when KlaymanToskes, a national securities law firm, began actively pursuing recovery for losses linked to Nuveen funds. This action hints at potential financial challenges that might have negatively impacted its investors. Recent data showing revenue of -$13.83M for NZF further fuels these concerns.
What Led to the Losses?
The exact causes of the losses remain unclear, but several factors could influence municipal funds’ performance:
- Credit Risk: Municipal bonds carry credit risk. If the issuer (local or state government) faces financial challenges, they might default, causing losses for bondholders and the fund’s investors.
- Interest Rate Risk: Municipal bonds, like all fixed-income securities, are sensitive to interest rate fluctuations. Rising interest rates can depress bond prices, affecting the fund’s NAV.
- Liquidity Risk: Some municipal bonds may lack liquidity, making them challenging to sell without significant losses.
- Reinvestment Risk: This arises when maturing bonds within the fund are reinvested at lower yields.
How Haselkorn & Thibaut can assist Nuveen fund investors
- Free case evaluation – no recovery, no fee
- Recoup losses from unsuitable advice or misrepresentations
- Hold financial advisors and brokerage firms accountable
- Over 50 years of expertise with a 98% success rate
- Nationwide presence with offices in FL, NY, NC, AZ, TX
Brokerages and advisors have a fiduciary responsibility to suggest suitable investments based on an investor’s goals and risk appetite. Misrepresenting risks or suggesting high-risk leveraged funds to conservative investors is unlawful.
Haselkorn & Thibaut have consistently secured compensation for aggrieved investors. Their deep knowledge of investment fraud positions them to craft compelling legal cases for optimal recoveries. They offer a complimentary consultation and charge fees only if you secure financial compensation.
If you’ve incurred losses in Nuveen’s municipal bond funds or other leveraged investments that you didn’t fully comprehend, seek legal assistance. Contact the investment fraud specialists at Haselkorn & Thibaut at 1-888-784-3315 or visit their website for a free case assessment. Act promptly, as legal time limits may apply. With a success rate exceeding 98%, Haselkorn & Thibaut will evaluate your case risk-free and strive to reclaim your losses.