Nuveen Core Plus Impact Fund (NPCT)

Nuveen Core Plus Impact Fund offers diversified, multi-sector fixed-income exposure, but its discount has narrowed significantly since we last gave it a look. NPCT's current 11.91% yield is appealing, yet distribution coverage is weak, relying heavily on capital gains rather than net investment income. The fund's NAV has underperformed its blended benchmark, and the reduced discount removes much of the previous opportunity that made NPCT worth considering.

NPCT offers a high yield and ESG focus, but its unique strategy hasn't delivered superior returns or price appreciation since inception. Heavy leverage and sensitivity to high interest rates have led to significant NAV declines and ongoing vulnerability to market conditions. The fund's distributions exceed earnings, relying on return of capital, making a dividend cut likely to preserve NAV and long-term stability.

Few things ease financial worry like knowing you can walk away from work anytime you want, having true financial freedom.

Let me start with a prediction: the S&P 500 will gain about 5% this year—not great, but not bad, either.

NPCT is a high-yielding fixed income CEF launched in 2021, designed for a low interest rate environment with aggressive distribution targets. The fund's performance since inception has been poor, with an early 40% loss to investors, but has seen recent gains and a distribution increase. NPCT faces risks from duration, credit spreads, and discount to NAV widening, making its longer-term prospects uncertain despite recent positive sentiment.

Nuveen Core Plus Impact Fund is a closed-end fund providing primarily fixed-income exposure through a multi-sector approach. The fund bumped up its monthly distribution early in 2024, sporting an ~11% rate now, but that's still down from the initial payout. Activist firm Saba Capital Management is targeting NPCT and is looking to get some representation on the Board.

NEW YORK--(BUSINESS WIRE)--Nuveen Closed-End Funds today announced that the Board of Trustees of the Funds has approved the regular monthly and quarterly distributions. In addition, the Board of Trustees has approved updated distribution polices described below under “Monthly & Quarterly Distributions” for The Nuveen Preferred & Income Opportunities Fund (NYSE: JPC), Nuveen Preferred and Income Term Fund (NYSE: JPI), Nuveen Variable Rate Preferred & Income Fund (NYSE: NPFD), Nuveen.

In 2021, a dozen closed-end funds, or CEFs, were launched, but none of them performed well, with all of them experiencing negative total returns since inception. The CEFs trade at wide discounts to NAV, with an average discount of -12.5%, and offer high yield income with annual yields as high as 12.9%. The hybrid funds with global allocations and higher yielding taxable fixed income funds have performed better than municipal fixed income funds and equity funds.

Nuveen Core Plus Impact Fund is a multi-asset fixed-income CEF. The vehicle is characterized by a very high leverage ratio of 39% and an extremely expensive cost of funds close to 6%. NPCT's main risk factors are interest rates and credit spreads, coupled with its floating rate liability structure.

Saba Capital Management, L.P. (Trades, Portfolio), a renowned investment firm, has recently expanded its portfolio by acquiring additional shares in Nuveen Core Plus Impact Fund ( NPCT , Financial).

NEW YORK--(BUSINESS WIRE)--The 19(a) distribution notices for three Nuveen closed-end funds are now available. This informational notice provides further details on the sources of the funds' regular monthly distribution and follows the most recent monthly distribution announcement. The full text of this notice is available below or on the Nuveen website via Distribution Source Estimates. Important Information Regarding Distributions May 31, 2023: THIS NOTICE IS FOR INFORMATIONAL PURPOSES ONLY.

NEW YORK--(BUSINESS WIRE)--The 19(a) distribution notices for ten Nuveen closed-end funds are now available. These informational notices provide further details on the sources of the funds' regular monthly or quarterly distributions and follows the most recent monthly and quarterly distribution announcements. The full text of these notices is available below or on the Nuveen website via Distribution Source Estimates.

For the third month in four, equity CEFs (+5.60% on a NAV basis) on average witnessed positive performance. While their fixed income CEF cohorts (+4.08%) posted gains for the second month in three.

This newer fund from Nuveen invests in fixed income securities based on ESG principles. At a discount to NAV of -14% and an annual yield of 11%, the fund is a strong buy for sustainable long-term total return.

NPCT is a multi-asset fixed income CEF that IPO-ed in 2021. The vehicle is down more than -43% since issuance on a total return basis.

NPCT is a CEF that yields 9.6% and holds investment grade and high yield corporate bonds, with no more than 50% junk-rated bonds. The fund uses ESG criteria to emphasize fixed income investments in businesses that are leaders within their respective industries to enhance fund performance and minimize risk.