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JRI: Real Assets, Real Income. Updated

Maks F. S. profile picture
Maks F. S.


  • Comprehensive review of the Diversified Real Asset Income Fund.
  • Review of the approved merger proposal of DRA into JRI.
  • Detailed performance update since our initial article on the fund.

In my last article we took a look and completed an update of the Diversified Real Asset Income Fund (DRA). It was one out of two Nuveen funds that I have highlighted in my article "5 Utility Funds You Can Still Buy At A Discount."

In today's article, I wanted to do a complete update on the other Nuveen fund mentioned in that article, the Nuveen Real Asset Income and Growth Fund (NYSE:JRI).

What's New?

In my previous article I mentioned that DRA was going to be merged into another closed end fund. That fund is JRI.

The biggest piece of news as it relates to the fund is that as of June 30th, 2017, the shareholders of the fund have voted and approved the merger of this fund into its sister fund, the Nuveen Real Asset Income & Growth Fund (JRI), which I have also written about. "JRI: Real Assets, Real Income."

The merger of the two funds is scheduled to close on or around September 11th, 2017.

As previously described, the two funds are substantially identical in strategy. The notable difference between the two is DRA's ability to make whole loans.

By combining the two funds, management expects to lower annual expenses and ongoing operating expenses through the synergies of running one larger fund.

Source: "DRA: All Good Things Must Merge?"

While the merger is a net positive for DRA shareholders, I believe the benefits for JRI shareholders will primarily come over the long term in the form of possible lower fund expenses.

Fund Updates

At the time of our initial look in "JRI: Real Assets, Real Income" the fund yielded a 7.45% distribution and traded at a discount of 9.92%. Today the fund yields a 7.35% distribution and is trading at an 8.69% discount to NAV.

This article was written by

Maks F. S. profile picture
Intrepid Leader at an RIA.  My firm and I simplify the lives of busy clients by providing ongoing financial planning and asset management. this is done by providing our clients customized, ongoing comprehensive financial planning, and customized investment advisory services tailored to the clients' needs. As a fiduciary, we have a legal obligation to put the needs and interests of our clients above our own. Specialties: fee based comprehensive financial planning, retirement planning, life insurance and protection planning.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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