Nuveen Mortgage Opportunity Term Fund 2 Invests in Public-Private Investment Partnership
Following the successful February offering of the Nuveen Mortgage Opportunity Term Fund 2 /quotes/comstock/13*!jmt/quotes/nls/jmt (JMT 25.01, -0.01, -0.04%) , the fund today announced it has committed to invest in a public-private investment partnership formed pursuant to the U.S. Department of the Treasury’s Public-Private Investment Program (“PPIP”).
The fund’s investment objective is to generate attractive total returns through opportunistic investments in mortgage-backed securities (“MBS”). The fund noted in its prospectus its intention to invest in MBS directly, and indirectly through a separate investment in a public-private investment partnership formed pursuant to PPIP. The fund has now committed to invest $33 million in a feeder fund which in turn invests in a public-private investment partnership (the “Master PPIP Fund”) sponsored by Wellington Management Company, LLP (“Wellington Management”). The Master PPIP Fund invests directly in MBS and other assets eligible for purchase under PPIP. Wellington Management was selected by the U.S. Department of the Treasury in July 2009 as one of nine managers eligible to participate in PPIP. Wellington Management also serves as the sub-adviser to the fund.
The fund’s capital commitment will be drawn down through a series of capital calls initiated by the Master PPIP Fund. The initial capital call took place on March 2, 2010. The fund’s full $33 million capital commitment represents between approximately 26% and 29% of the net proceeds of JMT’s initial public offering, depending on the final number of additional fund shares issued pursuant to the underwriters’ over-allotment option. The fund’s entire capital commitment is expected to be called by October 1, 2010.
With over $537 billion in client assets under management as of December 31, 2009, Wellington Management serves as an investment advisor to approximately 1,650 institutions located in over 40 countries. The firm is structured as a collection of investment teams that create solutions designed to respond to specific client needs, and is recognized for its global, proprietary, independent research, which is shared across all areas of the organization and used only for managing client portfolios. Tracing its roots back to 1928, the firm is based in Boston, Massachusetts, and also has offices in Chicago, Illinois; Radnor, Pennsylvania; San Francisco, California; Beijing; Hong Kong; London; Singapore; Sydney; and Tokyo.