Fitch Affirms Nuveen Preferred and Convertible Income Fund Pfd Shares Ratings.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. affirms the ratings on the following Nuveen Preferred and Convertible Income Fund FundPreferred shares. --FundPreferred shares 4,720 shares series M, 'AAA'; --FundPreferred shares 4,720 shares series T, 'AAA'; --FundPreferred shares 4,720 shares series W, 'AAA'; --FundPreferred shares 4,720 shares series TH, 'AAA'; --FundPreferred shares 4,720 shares series F, 'AAA'; --FundPreferred shares 4,720 shares series F2, 'AAA'. The affirmation is based on the fund's consistent compliance with asset coverage and preferred share basic maintenance amount tests, as well as the quality and experience of the asset managers. Nuveen Preferred and Convertible Income Fund is a closed-end management investment company which invests primarily in a portfolio of preferred securities in addition to convertible debt and convertible preferred securities. The fund is registered under the Investment Company Act of 1940, which permits closed-end funds to borrow funds through the issuance of debt and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . Under the 1940 Act, closed-end funds may borrow up to 50% of the fund's value through the issuance of preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. and debt. The fund's current preferred share issuance equates to roughly 32% of its net asset value, and the fund has no outstanding debt. The investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and for the fund is Nuveen Investment Advisory Corp. (NIAC NIAC National Iranian American Council (Washington, DC) NIAC National Infrastructure Advisory Council NIAC NASA Institute for Advanced Concepts NIAC Nonprofits' Insurance Alliance of California NIAC National Internet Advisory Committee ), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Nuveen Investments, Inc. NIAC will be responsible for determining the fund's overall investment strategy, including allocating the portions of the fund's assets for investment in preferred securities, convertible securities and other debt securities. Nuveen Investments, Inc. had aggregate assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. , as of Sept. 30, 2004, equal to approximately $107 billion. Through a sub-advisory agreement, Spectrum Asset Management, Inc. (Spectrum) and Froley, Revy Investment Co., Inc. (Froley, Revy) serve as the sub-advisors for the fund. Spectrum is an independently managed affiliate of Principal Financial Group. Spectrum has been active in the investment of preferred securities including related hedging activities since 1987, and, as of Sept. 30, 2004, Spectrum had approximately $12 billion in assets under management. Froley, Revy, a registered investment adviser, is an independently managed wholly owned subsidiary of First Republic Bank. Founded in 1975, Froley, Revy had approximately $4.3 billion in assets under management as of June 30, 2004. Froley, Revy specializes in the management of convertible securities. Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data is available on the Fitch Ratings web site at www.fitchratings.com. |
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