Funds to seek shareholder approval for structure change that
seeks a closer alignment between market price and net asset
value
Nuveen Investments, a leading global provider of investment
services to institutions as well as individual investors, today
announced that Nuveen Commodities Asset Management (“NCAM”), the
manager for the Nuveen Diversified Commodity Fund (NYSE MKT: CFD)
and the Nuveen Long/Short Commodity Total Return Fund (NYSE MKT:
CTF), has approved a plan to convert the Funds into open-end
exchange-traded funds (“ETFs”). The purpose of the conversion plan
is to seek a closer alignment between the funds’ share price and
net asset value (“NAV”). The conversion of the funds to ETFs will
be subject to shareholder and regulatory approvals. The funds are
not currently, and after the conversion will not be, mutual funds
or any other type of investment company within the meaning of the
Investment Company Act of 1940.
The funds are currently structured as actively managed
closed-end commodity pools. After the conversion, the funds will
remain actively managed commodity pools, but they will adopt an
open-end ETF structure. Under the ETF structure, investors will
continue to be able to buy and sell shares of the funds on the
exchange (as part of the conversion plan, the funds intend to apply
to list their shares on the NYSE Arca) throughout the day at market
price. In addition, the funds will adopt the creation/redemption
process commonly employed by ETFs for the purpose of promoting the
trading of the funds’ shares at prices equal to or near their NAV,
although there can be no assurance that this process will be
successful.
The conversion plan is subject to certain conditions, including
shareholder and regulatory approvals. A proposal to convert the
funds to ETFs will be submitted to a vote at each fund’s next
annual meeting of shareholders, expected to be held on or before
March 31, 2015. Prior to its annual meeting, each fund plans to
file relevant materials, including a proxy statement relating to
the conversion plan, with the Securities and Exchange Commission
(“SEC”). Promptly after filing its definitive proxy statement, each
fund will mail the proxy statement and a proxy card to each
shareholder entitled to vote at the annual meeting. Shareholders
are urged to thoroughly read the proxy statements (including any
supplements thereto) and any other relevant documents that the
funds file with the SEC when they become available, as they will
contain important information. Shareholders will be able to
obtain, free of charge, copies of the proxy statements and any
other documents filed by the funds with the SEC in connection with
the annual meetings at the SEC’s website at
www.sec.gov, by calling NCAM at 877-827-5920 or by
writing the funds at 333 W. Wacker Drive, Chicago, Illinois,
60606.
The conversion plan is also contingent on approval of the funds’
listing on the NYSE Arca by the exchange and the SEC, as well as
other customary regulatory approvals. Assuming shareholder and
regulatory approvals are obtained, NCAM anticipates that the
conversion will be completed within approximately 8 to 10 months.
As progress is made, updates will be provided periodically with
respect to the conversion plan and time frame. There can be no
assurance that such approvals will be obtained, or if obtained,
that the conversions will be completed in the anticipated time
frame or will achieve their stated purpose.
Gresham Investment Management, which has actively managed
commodity futures investments since 1987 and which currently has
over $13 billion in institutional commodity assets under
management, will continue to serve as the funds’ commodity
subadviser. CFD invests long in a diversified portfolio of
approximately 30 exchange-traded commodity futures and options
contracts in energy, agriculture, livestock, and metals. CTF
invests in a long/short strategy which changes positions based on
commodity price momentum, holding long, short, or flat positions in
approximately 20 exchange-traded commodity futures and options
contracts in energy, agriculture, livestock, and metals.
Until the conversion occurs, the funds expect to continue to pay
regular monthly distributions and that the open-market share
repurchase programs will remain active. As market conditions and
portfolio performance may change, the funds’ distribution policies,
distribution amounts, and/or frequency could change.
Investors planning to purchase shares of the funds prior to year
end should refer to the tax section of their respective Information
Statements, review the detailed Tax Q&A located on the Funds’
website, and consult their tax advisors. Investors who buy shares
at a discount to NAV and hold them through year end may be subject
to an acceleration of capital gain recognition. Important
information regarding the funds’ investment strategies and risks is
set forth in their respective Information Statements available on
the funds’ website.
Investments in shares of the funds are subject to investment
risk, including the possible loss of the entire amount invested.
The funds invest primarily in commodity futures contracts and
options on commodity futures contracts, which have a high degree of
price variability and are subject to rapid and substantial price
changes. The funds could incur significant losses on their
commodity investments. The funds are not mutual funds, closed-end
funds, or any other type of “investment company” within the meaning
of the Investment Company Act of 1940, as amended, and are not
subject to regulation thereunder. For more information about the
funds, including a more complete description of risks, please see
the funds’ website.
This is not a solicitation to buy or sell the funds’ shares, nor
is it a solicitation of any proxy. The funds do not presently offer
any new shares for sale; existing shares trade on the NYSE MKT.
Nuveen Investments provides high-quality investment services
designed to help secure the long-term goals of institutional and
individual investors as well as the consultants and financial
advisors who serve them. Nuveen Investments markets a wide range of
specialized investment solutions which provide investors access to
capabilities of its high-quality boutique investment
affiliates—Nuveen Asset Management, LLC, Symphony Asset Management
LLC, NWQ Investment Management Company, LLC, Santa Barbara Asset
Management, LLC, Tradewinds Global Investors, LLC, Winslow Capital
Management, LLC and Gresham Investment Management LLC, all of which
are registered investment advisers and independent investment
subsidiaries of Nuveen Investments, Inc. Nuveen Commodities Asset
Management, LLC ("NCAM") NCAM is the manager of the Funds. NCAM is
registered as a commodity pool operator ("CPO") with the Commodity
Futures Trading Commission ("CFTC"). Nuveen Investments operates as
a separate subsidiary within TIAA-CREF, which is a leading provider
of retirement and financial services in the academic, research,
medical and cultural fields. In total, Nuveen Investments managed
approximately $229 billion as of September 30, 2014. For more
information, please visit the Nuveen Investments website at
www.nuveen.com.
Forward-Looking Statements
This press release includes forward-looking statements,
including statements concerning the purposes and timing of the
conversion plan, within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, that involve
substantial risks and uncertainties. In some cases, you can
identify forward-looking statements by terminology such as “may,”
“will,” “should,” “expect,” “plan,” “anticipate,” “believe,”
“estimate,” “predict,” “potential” or the negative of these terms
or other comparable terminology. These forward-looking statements
are based on current expectations, estimates and projections and
are subject to a number of risks, uncertainties and other factors,
both known and unknown, that could cause the actual results,
performance, prospects or opportunities of the funds to differ
materially from those expressed in, or implied by, these
forward-looking statements.
You should not place undue reliance on any forward-looking
statements. Except as expressly required by the federal securities
laws or otherwise, the funds undertake no obligation to publicly
update or revise any forward-looking statements or the risks,
uncertainties or other factors described in this press release, as
a result of new information, future events or changed circumstances
or for any other reason after the date of this press release.
4953-INV-O12/15
Nuveen InvestmentsMedia Contact:Kristyna Munoz(312)
917-8343KRISTYNA.MUNOZ@NUVEEN.COM
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