Nuveen Real Asset Income and Growth Fund: Limited NAV Growth and Shrinking Earnings.

Nuveen Real Asset Income and Growth Fund (JRI) aims to provide attractive total returns from its mixed asset portfolio. The fund has experienced limited NAV growth and shrinking earnings, with a declining dividend yield. Despite this, the fund remains a closed-end fund with a diverse portfolio of real assets.

Introduction

The Nuveen Real Asset Income and Growth Fund (JRI) is a closed-end fund (CEF) that aims to provide investors with attractive total returns through its diverse portfolio of real assets, including real estate securities, infrastructure, and common stocks [1]. With a focus on generating income and capital appreciation, JRI has experienced limited net asset value (NAV) growth and shrinking earnings, resulting in a declining dividend yield [2]. Despite these challenges, JRI remains an intriguing investment option for those willing to navigate its unique risks and potential rewards.

Understanding JRI's Risk Profile

CEFs, including JRI, are subject to various risks that investors must consider before investing. These risks include investment, market, and price risk, concentration risk, real estate securities risk, infrastructure risk, common stock risk, interest rate risk, credit risk, unrated securities risk, counterparty credit risk, and leverage risk [1].

Investment, market, and price risk refer to the potential loss of investors' entire principal amount due to the inherent risks associated with investing in financial markets. Concentration risk arises when a fund's investments are focused on specific sectors or issuers, making it more vulnerable to economic downturns and sector-specific risks. Real estate securities risk, infrastructure risk, and common stock risk are specific to the types of assets in which JRI invests and are influenced by factors such as economic conditions, changes in real estate values, and interest rates.

Interest rate risk, credit risk, and unrated securities risk are associated with the fixed-income securities, debt, and preferred securities that JRI holds. Counterparty credit risk arises when counterparties fail to meet their obligations, potentially impacting the value of JRI's derivative instruments. Leverage risk refers to the potential for increased volatility in JRI's per share NAV, market price, and distributions due to the fund's use of leverage [1].

JRI's Performance and Outlook

Despite the challenges faced by JRI, the fund has continued to attract investors due to its diversified portfolio of real assets. According to its most recent financial report, the fund's net asset value per share was $14.77, down from $15.17 in the previous quarter [3]. The fund's decline in NAV can be attributed to a variety of factors, including a decrease in the value of its real estate securities investments and a decline in the value of its common stocks [3].

Despite the decline in NAV, JRI's dividend yield remains attractive, currently sitting at approximately 6.4% [2]. However, it's important to note that dividend yields can fluctuate and are not guaranteed. Furthermore, JRI's earnings have been declining, which could impact its ability to continue paying dividends in the future [2].

Conclusion

The Nuveen Real Asset Income and Growth Fund (JRI) offers investors an opportunity to invest in a diversified portfolio of real assets, including real estate securities, infrastructure, and common stocks. However, investors must be aware of the unique risks associated with this investment, including investment, market, and price risk, concentration risk, real estate securities risk, infrastructure risk, common stock risk, interest rate risk, credit risk, unrated securities risk, counterparty credit risk, and leverage risk. While JRI has experienced some challenges in recent quarters, its attractive dividend yield and diverse portfolio of real assets make it an intriguing investment option for those willing to navigate its risks.

References

[1] Nuveen. (n.d.). JRI - Nuveen Real Asset Income and Growth Fund. Retrieved January 23, 2023, from https://www.nuveen.com/en-us/closed-end-funds/jri-nuveen-real-asset-income-and-growth-fund

[2] Yahoo Finance. (n.d.). NUVEEN REAL ASSET INCOME & GROWTH FUND COMMON STOCK PRICE, STOCK CHART, NEWS AND ANALYSIS. Retrieved January 23, 2023, from https://finance.yahoo.com/quote/JRIX/

[3] Nuveen. (2022, October 31). Nuveen Real Asset Income and Growth Fund Declares Monthly Dividend of $0.105 Per Share. Retrieved January 23, 2023, from https://www.businesswire.com/news/home/20221031005398/en/