Notes
Nuveen Multi-Currency Short-Term Government Income (JGT)* Objective
The investment objective of the Fund is to provide an attractive level of current income and total return. The Fund seeks to achieve its investment objective by investing directly and indirectly in a portfolio of short-term international government securities. The Fund will invest directly in short-term international non-U.S. government securities. The Fund will invest indirectly in international non-U.S. government securities through the purchase of forward currency contracts and other derivative instruments relating to such short-term international government securities. The investments of the fund will be denominated in or otherwise provide exposure to multiple international non-U.S. currencies.
* Investment Strategy
The Fund will invest directly in short-term international (non-U.S) government debt securities, and indirectly using forward currency contracts and other derivative instruments that offer exposure to the returns of short-term international (non-U.S.) government securities.
This fund has adopted a "managed distribution policy". Regular distributions throughout the year may include realized and unrealized capital gains, along with net investment income, and may from time to time also include a return of capital.
Total fees: 1.1%
No leverage.
Price, NAV, and distribution rate are updated daily at Web site.
08OCT08 - $11.89
Discount to NAV: 29%Yield: 15% ($1.80 a year)
Small insider buy in 7/08, larger buy in 12/07.
* Holdings, 6/08
Federal Home Loan Banks 47%
Hungary Republic 16%
Turkey Republic 15%
United Kingdom 4%
Mexico 4%
Note, as of AUG 31, Hungary sovereign debt had been reduced to less than 7% of the portfolio. This is good, because Hungary is in danger defalting on its debts. (Monthly updates of the portfolio are available at the Web site.)
Article about Federal Home Loan Banks
http://online.wsj.com/article/SB122092327687413117.html?mod=googlenews_wsj
Thoughts: Aren't short-term government-guaranteed bonds supposed to be among the safest investments in the world? Why is this trading at a 29% discount to NAV?
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