The Securities Law Firm of KlaymanToskes Represents Nuveen Funds Investors Seeking to Recover Losses in Nuveen Funds
NEW YORK, NY / ACCESSWIRE / October 16, 2023 / National investment loss attorneys KlaymanToskes encourages investors who have suffered significant investment losses in Nuveen leveraged Closed-End Funds, including the Nuveen Quality Municipal Fund (NYSE:NAD) and the Nuveen Municipal Credit Fund (NYSE:NZF), to contact the firm immediately at 888-997-9956.
Brokerage firms and financial advisors who sold Nuveen leveraged Closed-End Funds may be liable for any losses incurred by investors if the investment was unsuitable for the customer’s risk tolerance and objectives, or if they misrepresented the nature of the investment.
KlaymanToskes previously announced the filing of a FINRA arbitration claim (Case No. 23-02047) against Merrill Lynch on behalf of a customer of financial advisor William (Bill) King, who is seeking to recover $4 million due to unsuitable recommendations to invest in Nuveen, a leveraged, closed-end bond fund, along with an unauthorized strategy of selling put options.
Merrill Lynch, through its financial advisor Bill King, made material misrepresentations to the customer in soliciting the purchase of the Nuveen Quality Municipal Fund (“NAD”) (NYSE:NAD) and the Nuveen Municipal Credit Fund (“NZF”) (NYSE:NZF).
The NAD fund was misrepresented to the customer as a low risk investment that would provide tax-free income in the short-term. King’s strategy was for the customer to invest the money earning tax-free income, and later sell the fund to pay the taxes. This strategy was flawed and the recommendation unsuitable as the NAD fund was invested in bonds with longer maturities. With the rise in interest rates, the longer maturity bonds declined in value. King further failed to disclose that the NAD fund was rated as BBB and below at the time of investment, which is considered just one notch above junk bonds. The lower credit quality of the bonds equates to more risk.
When the Federal Reserve began raising interest rates in 2022, the Nuveen funds, which were leveraged, declined substantially. The NAD fund declined nearly 23% and the NZF fund declined nearly 26%, as seen in the charts below.
If an investor needed to sell the fund in the short-term, the investor would realize a loss. If you suffered investment losses in Nuveen leveraged Closed-End Funds at a full-service brokerage/investment advisory firm, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Disclosure: Investors who did not rely on the advice of a broker/financial advisor are not eligible for our services. Short-term cash low risk, leveraged
About KlaymanToskes
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Contact
Lawrence Klayman
KlaymanToskes, P.A.
+1 888-997-9956
lawrence@klaymantoskes.com
SOURCE: KlaymanToskes, P.A.