Nuveen Investments is continuing its efforts to get back into the exchange traded funds business and that includes an update on the company’s plan to convert a pair of commodities funds to the ETF structure.
In a statement issued last Friday, Nuveen said the “Securities and Exchange Commission (SEC) has extended the review period for the proposed new exchange rule pursuant to which shares of Nuveen Diversified Commodity Fund (NYSE: CFD) and Nuveen Long/Short Commodity Total Return Fund (NYSE: CTF) would be able to trade upon conversion of each respective fund into an exchange-traded fund (ETF).”
SEE MORE: Nuveen Trying to Convert Two Funds to ETFs
Converting CFD to an ETF now requires regulatory and the fund could become an ETF by the fourth quarter. In May, Nuveen said shareholders of CTF have approved the plan to convert the fund into open-ended exchange-traded fund (ETF). The conversion plan is also contingent on customary regulatory approvals, according to a statement.
[related_stories]“The SEC had previously extended the review period for the proposed rule for an additional 45 days, and today the SEC further extended the review period for an additional 90 days. The SEC may take action on the proposed rule at any time during this extended review period, and may further extend the review period for up to an additional 60 days. If the SEC approves the proposed rule, the funds intend to complete their conversion to ETFs as soon as practicable thereafter,” said Nuveen in the most recent statement.
Earlier this year, Nuveen filed plans with the SEC to possibly launch an aggregate bond ETF, the NuShares Enhanced Yield U.S. Aggregate Bond ETF.
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That ETF “would track an index comprised of investment grade government, corporate, residential and commercial mortgage-backed securities and asset-backed bonds. It will track an index called the TIAA Enhanced Yield U.S. Aggregate Bond Index (TIAA Global Asset Management owns Nuveen),” reports Chris Dieterich for Barron’s.