Nuveen Investments, a leading global provider of investment services to institutions and high-net-worth investors, today announced that the Nuveen Mortgage Opportunity Term Fund (NYSE: JLS) has declared a distribution of $0.2377 per share, which is composed entirely of long- and short-term capital gains, in lieu of its regular monthly income-based dividend. The substitution of a capital gains-based distribution for its regular monthly income-based distribution this month is expected to be a one-time event this fiscal year. The fund has paid regular monthly income distributions of $0.1725 per share each month since its initial distribution in February 2010. Important points to note:
The fund has realized capital gains that must be declared this month for tax purposes.
This month’s distribution level should not be used to calculate a forward-looking distribution rate relative to its share price, because the distribution is based on capital gains and not income.
The fund anticipates resuming income-based distributions next month at previous levels, although this distribution has not yet been declared and the amounts of any future distributions are not yet known.
This fund invests a substantial portion of its assets in mortgage-backed securities (MBS), both directly and indirectly. Due to the nature of MBS, particularly their prepayment behavior and income realization characteristics, the amount of the fund’s income for the year 2010 will be difficult to determine until very close to the December 31 fiscal year-end. Consequently, the fund has chosen to declare and distribute only capital gains in lieu of its normal ordinary income distribution in September, in order to guard against a potential, although unlikely, over-distribution for the entire fiscal year.
Based upon current information, the fund expects that by December when its fiscal year ends and its full year’s income is known, the monthly income distribution declared and paid in December will be substantially higher (on a one-time, end-of-year basis) than $0.1725 per share (the amount paid each month from February through August of 2010). However, this distribution also has not yet been declared and its amount, which may or may not be substantially higher than $0.1725 per share, is not yet known.
All of Nuveen’s closed-end funds seek to pay stable distributions at rates that reflect each fund’s past results and projected future performance. Each fund will, over time, pay all of its net investment income as distributions to shareholders. The funds’ positive or negative balances of undistributed net investment income (UNII) are disclosed from time to time in their periodic shareholder reports, and are also on www.nuveen.com/cef. The following dates apply to today’s distribution declaration:
September 15, 2010
September 13, 2010
October 1, 2010
Amount Per Share
Short TermCapital Gain
Long TermCapital Gain
Mortgage Opportunity Term Fund
Nuveen Investments provides high quality investment services designed to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds, Winslow Capital and Nuveen HydePark. In total, the Company managed $150 billion as of June 30, 2010. For more information, please visit the Nuveen Investments website at www.nuveen.com.