Morningstar, Inc. Commentaries
May 20, 2014
Click here to access CEF Weekly Update - May 20, 2014
Nuveen Investments announced that the proposed merger of three of its municipal closed-end funds, Nuveen New York Dividend Advantage Municipal Fund(NAN), Nuveen New York Performance Plus Municipal Fund (NNP), and Nuveen New York Dividend Advantage Municipal Fund 2 (NXK) failed to receive approval due to lack of shareholder participation. The majority of shareholders that cast a vote did so in favor of the merger, but total participation was not enough for the vote to pass. Nuveen did not indicate whether it will make another attempt to merge these funds. In general, though, we would expect that the merger of similar funds should lead to more efficiencies and lower costs for shareholders.