Nuveen Premium Income Municipal Fund 4 (NPT)

Nuveen Premium Income Municipal Fund 4 (NPT) is a highly rated municipal bond closed end fund. It provides tax free income for investors.

Nuveen Fund

Nuveen Premium Income Municipal Fund 4 (NPT) objective is to provide current income exempt from regular federal income tax. It also tries to provide enhancement of portfolio value. The fund manager is Christopher L. Drahn since 2010. The current yield is 6.24%. This yield will translate are 9.60% of taxable equivalent yield.

This Nuveen fund has an effective leverage of 35%. The current assets are $888 million. The fund’s sponsor is Nuveen Fund Advisors. Its expense ratio fee is 1.00%. Since this fund is traded like stock, you can buy it from your brokerage.

NPT Fund Profile

• Fund Inception Date: 01/21/1987
• Ticker Symbol: NPT
• CUSIP: 6706K4105
• Rank in category (YTD): 71%
• Category: Municipal Bond
• Distribution Rate: 6.50%
• Effective Leverage: 35%
• Capital Gains: -
• Base Expense Ratio: 1.00%
• Net Assets: $888 million
• Annual Turnover Rate: 52%

Nuveen Fund Returns

Morningstar has ranked this top municipal bond fund with 4 stars rating. It has returned 9.03 percent over the past 1 year, 2.18 percent over the past 3 years, and 6.12 percent over the past 5 years. The fund’s performance for the past 5 years is as follows:

• Year 2015: 3.03% (YTD)
• Year 2014: 16.60%
• Year 2013: -8.31%
• Year 2012: 11.53%
• Year 2011: 20.48%

This fixed income fund has an average coupon of 4.72%. Top 10 bond sectors are Health Care, Tax Obligation/Limited, Transportation, US Guaranteed, Tax Obligation/General, Water and Sewer, Education and Civic Organ, Utilities, Consumer Staples, and Long Term Care. Top 5 states are California, Texas, Illinois, Florida, and Colorado.

Pros:

• This Nuveen Premium Income Municipal Fund 4 (NPT) is highly rated by Morningstar.
• It has decent returns for the past 5 years.

Cons:

• Its expense fee is slightly higher than typical bond fund.

Note: Nuveen Premium Income Municipal Fund 4 (NPT) was merged into Nuveen Enhanced Municipal Credit Opportunities Fund (NZF).