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NUVEEN FUND DIRECTORS APPROVE 2 FOR 1 SPLIT OF MUNIPREFERRED; TWO NEW NUVEEN MUNIPREFERRED CARRY $25,000 OFFERING PRICE

 CHICAGO, Dec. 7 /PRNewswire/ -- John Nuveen & Co. Incorporated (NYSE: JNC) today announced that the Board of Directors of the Nuveen exchange-traded funds has approved a 2 for 1 split of the MuniPreferred(TM) shares of Nuveen's leveraged funds, which lowers the minimum purchase price of the preferred shares from $50,000 to $25,000. The Nuveen Performance Plus Municipal Fund (NPP), which currently has a $100,000 minimum purchase price, will split its shares 4 to 1. The stock splits are expected to become effective in January 1994.
 Company officials also announced that subsequent MuniPreferred issued by Nuveen's exchange-traded funds will have an offering price of $25,000 per share. The first fund offerings at this price level at Nuveen Premium Income Municipal Fund 6 and Nuveen California Premium Income Municipal Fund 2, which are expected to issue preferred shares within the next several weeks.
 "We've seen an evolution in the market for the MuniPreferred stock over time," said Nuveen Vice President Thomas Muntz. "Initially, Nuveen's MuniPreferred had a $100,000 minimum purchase price and was largely sold to institutions, which still account for about half of our sales. However, when the purchase price was reduced to $50,000, there was a considerable increase of interest by high-net-worth investors. Lowering the purchase threshold to $25,000 will further increase the MuniPreferred's retail appeal."
 Muntz went on to discuss the primary features of the product. "MuniPreferred, which is AAA-rated, has low credit risk -- since it's collateralized 3 to 1 with investment-grade quality municipal bonds -- federal, and in some cases, state income tax exemption, high liquidity, and reset periods ranging from seven days to five years. The enhancement of a lower purchase price is just one more plus."
 Founded in 1898 and headquartered in Chicago, Nuveen is the nation's oldest and largest investment banking firm specializing in sponsoring, marketing and managing tax-free investment products for individual investors, and in underwriting, trading and distributing municipal securities. Since 1961, Nuveen has sponsored more than $60 billion in tax-free funds and trusts distributed by registered representatives to more than 1,000,000 investors.
 -0- 12/7/93
 /CONTACT: Ed Dunn of Nuveen, 312-917-7763/
 (JNC)


CO: John Nuveen & Co. Incorporated ST: Illinois IN: FIN SU:

JG -- NY030 -- 1234 12/07/93 11:12 EST
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Publication:PR Newswire
Date:Dec 7, 1993
Words:378
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