JGV: A low cost way to invest with the Tradewinds Global team

Nuveen Global Value Opportunities Fund (ticker:JGV) is a closed end fund that invests in global equities in all capitalization ranges, including common stocks, preferred stocks with equity characteristics, convertibles, warrants, rights, ADRs, and REITs. The fund also invests in US and foreign corporate loans, governmental bonds and other debt instruments, including bonds rated below investment grade. The fund normally invests around 80% of managed assets in equities and the remainder in debt, but this mix is actively managed. The fund may sell and buy options and/or sell short, to a modest degree. It may use leverage and uses active tactical asset allocation.

JGV provides a low cost way for retail investors to gain access to the highly respected Tradewinds Global Investor team. The Nuveen Tradewinds Global All-Cap Fund (ticker:NWGRX) is similar to JGV, but is very expensive to purchase for retail investors. Yahoo ranked the NWGRX fund as #1 in its category for three year performance out of 545 funds. But a retail investor who invests directly (without a financial advisor) needs at least $1 million to purchase NWGRX.

Nuveen Tradewinds Global All-Cap Fund Fees vs JGV

Fund Class A B C R3 I JGV
Max. Purchase Sales Load 5.75% —- —- —- —- —-
Max Deferred Sales Load —- 5% 1% —- —- —-
Redemption Fee (30 days) 2% 2% 2% 2% 2% —-
Expense Ratio 1.40% 2.15% 2.15% 1.66% 1.15% 1.13%
Min Investment $3,000 $3,000 $3,000 $3,000 $1 million * —-
  • Class I shares are only available for retail purchases of $1 million or more directly from the fund, but are also available to the following categories of investors:
  1. Officers, trustees and former trustees of Nuveen Funds and their immediate family members along with bona fide full-time and retired employees of Nuveen and its subsidiaries.
  2. Financial intermediaries, fee paying customers of registered investment advisors, investors purchasing through asset based fee program sponsored by registered broker dealers, trust departments etc.
  3. Employer-sponsored retirement plans except SEP’s, SAR-SEPs, SIMPLE IRAs and KEOGH plans. (e.g. 401K, 403B etc can buy the I shares)
  4. Other Nuveen mutual funds

Morningstar ranks JGV in the top 1% of its category for three year performance. Here is its yearly performance since inception:

JGV Annual Performance

 (as of April 9)

 Year NAV (%) Mkt Price (%)
 2010   7.97   10.26
 2009   48.94   58.96
 2008   -23.76   -26.03
 2007   6.48   2.94

JGV has adopted a managed distribution plan designed to pay stable quarterly distributions. The current JGV discount to NAV of -2.46% is less attractive than the 6 month average discount of -4.18%, but JGV recently sold at a premium over NAV. This may be a decent time to establish a small initial position and monitor JGV going forward to await better buying opportunities. If the discount ever exceeds 10%, more aggressive purchases would be indicated.

Ticker: JGV   Nuveen Global Value Opportunities Fund.   pays quarterly

  • Total Assets= 375MM
  • Annual Distribution (Market) Rate= 6.31%    Income Only Yield= 5.21%
  • ** Average Bond Rating: BB+
  • ** Average Leverage Adjusted Bond Duration= -2.22 years ***
  • Fund Expense ratio= 1.13%              Discount to NAV= -2.36%
  • Portfolio Turnover rate= 38%
  • No leverage currently used, but it is allowed by the fund.

** applies to the 48.7% fixed income portion of the portfolio

*** Note: The fixed income portion of the fund has negative duration and benefits from higher interest rates.

Full Disclosure: Long JGV.

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One response to “JGV: A low cost way to invest with the Tradewinds Global team

  1. Closed-end_Trader

    As we have been in a bull run now for a while, the closed-end discounts are quite modest. Attractive picks are now limited. This fund is now at -2.46% as of 4/9/10. Although it was a a premium earlier this year, the 1 and 3 year average discount is more than 7 and 9%. Open-end mutual funds or ETF’s may now be a better bet for now. An interesting service “Investforless.com” mentioned in both the April editions of Forbes and Kipliger’s lets one buy any institutional share class of a load family without any required minimum for an annual fee of $250. Apparently they use Scotrade’s Platform. Although I have not used it, I am strongly considering it. Perhaps you or one of your readers can comment if they have used this service.

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