This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Three Nuveen Closed-End Funds Reject New ARPS Demand Letters

Nuveen Investments announced today that the Board of three Nuveen leveraged closed-end funds that in recent weeks each received a demand letter from a law firm on behalf of purported holders of each fund’s common shares has rejected the demands contained in those letters. The demand letters were similar to letters previously received by other Nuveen closed-end funds and alleged that Nuveen Asset Management (the fund’s Adviser) and the fund’s officers and Board of directors breached their fiduciary duties related to the redemption at par of the fund’s auction rate preferred shares (ARPS). Similar to actions taken by the Board of those other Nuveen closed-end funds regarding the previously received demand letters, the Board of each of these three closed-end funds rejected the demands contained in the new demand letters after a review and recommendation by a committee of certain of its disinterested and independent Board members. These three funds are:

Nuveen Municipal Advantage Fund, Inc. (NMA)Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)Nuveen Quality Income Municipal Fund, Inc. (NQU)

As previously announced on July 14, 2010, after an extensive independent review, the Board of several Nuveen closed-end funds rejected the demands contained in similar demand letters received 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 was not in the best interests of the initial 30 funds or their shareholders to take the actions suggested in the demand letters, and recommended that the full Board reject the demands made in the demand letters. The Demand Committee for the three funds named above, again assisted by independent counsel, investigated the claims and came to the same conclusion regarding the more recent letters received by those funds. After reviewing the findings and recommendation of the Demand Committee, the full Board for each of these three funds unanimously adopted the Committee’s recommendation.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs