Nuveen Variable Rate Preferred & Income Fund Expands Investment Scope to Include Foreign and Restricted Securities

Nuveen Variable Rate Preferred & Income Fund (NYSE: NPFD) filed a Current Report on Form 8-K dated October 19, 2026, announcing changes to its investment policies and the creation of new subsidiaries to facilitate these changes. Effective October 19, 2026, the Fund may invest up to 20% of its Managed Assets in contingent capital securities or contingent convertible securities (CoCos).

The Fund will also modify its policy regarding non-U.S. denominated securities. Previously, the Fund was restricted to investing only in U.S. dollar denominated securities. Under the new policy, the Fund may invest up to 10% of its Managed Assets in non-U.S. denominated securities.

To achieve this expanded exposure, the Fund will establish wholly owned Cayman Islands subsidiaries. The first subsidiary, the Regulation S Subsidiary, is an exempted company advised by Nuveen Asset Management, LLC. This subsidiary may invest without limitation in Regulation S fixed income securities. These are debt or fixed income securities issued via private placement without SEC registration, which may include sovereign bonds, corporate bonds, structured notes, and preferred securities.

The second subsidiary, the TEFRA Bond Subsidiary, is also a wholly owned Cayman Islands exempted company advised by Nuveen Asset Management, LLC. This subsidiary may invest without limitation in bonds or fixed income securities sold subject to restrictions under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). These securities are generally restricted to non-U.S. persons and may include sovereign, quasi-sovereign, corporate bonds, and structured notes. The Fund may invest up to 25% of its total assets in this TEFRA Bond Subsidiary.

Concurrent with these policy changes, the Fund has updated its principal risk factors to include Foreign Currency Risk, Regulation S Securities Risk, TEFRA Bond Risk, Subsidiary Risk, and TEFRA Bond Subsidiary Risk. These updates highlight the risks associated with currency fluctuations, the potential illiquidity of restricted securities, and the specific tax treatment requirements for income derived from the TEFRA Bond Subsidiary.