Nuveen Real Asset Income & Growth Fund

JRI

Market cap $378M

Nuveen Real Asset Income and Growth Fund offers diversified exposure to real assets, with a robust 11.2% forward yield and monthly distributions. JRI employs a multi-asset strategy across equities, preferreds, and high-yield debt, benefiting from potential interest rate easing and broad sector diversification. The fund's high expense ratio is offset by its appealing distribution growth, tax-advantaged structure, and potential for durable income in a lower-rate environment.

If anything taught me that buying real estate through stocks—or better yet high-yielding closed-end funds (CEFs)—is way better than brick-and-mortar, it was my experience renting my Manhattan apartment on Airbnb (ABNB).

Closed End Funds (CEFs) offer a combination of portfolio mitigation risk diversification and active management.

I maintain a hold rating on JRI due to its aggressive leverage and elevated interest rate environment, which suppresses valuation and NAV growth. JRI's current discount to NAV is historically low, making entry less attractive for long-term investors despite recent price momentum and a 12% yield. The fund's distribution coverage remains questionable, with payouts exceeding earnings and a history of inconsistent dividends, risking future cuts.

Few things ease financial worry like knowing you can walk away from work anytime you want, having true financial freedom.

The Nuveen Real Asset Income and Growth Fund (JRI) aims for high current income and long-term capital appreciation through real asset-related debt and equity securities investments. Launched in April 2012, JRI has $364 million in net assets, a 12.3% distribution yield, and has a leverage ratio of 33%. The fund has historically realized high levels of volatility relative to other investment funds offering balanced exposure to equities and fixed income products.

Nuveen Real Asset Income and Growth Fund offers investors exposure to a mixed portfolio of equities and debt investments, focused on real estate and infrastructure. The dividend yield of 12.5% is eye-catching, but there is a possibility for a reduction if earnings do not improve. The NAV growth has been limited. JRI's NAV still remains below its pre-pandemic levels as growth has been crippled by a higher interest rate environment.

Every month I add to my income-focused CEF portfolio, which creates a snowball and compounds growing cash flow over time. With some greater volatility opening up in the broader market, that helped to provide some select opportunities in what appears to be an otherwise still pretty pricey market. While no one knows what the future holds for sure, I'm still holding on to a sizeable cash position that I'd look to deploy in a broader market correction.

This month, I've added to 11 different positions, but most of these were related to repurchases after the BlackRock tender offers. While I added to 11 different positions, these were all positions I had already held previously, so there were no new positions this month. In fact, I sold out of a fund to consolidate my holdings and reduce the number of funds held, as I did last month as well.

The Nuveen Real Asset Income and Growth Fund offers an attractive 11.86% yield, significantly higher than its peers, appealing to income-focused investors. The fund's balanced portfolio of equities and fixed-income securities provides better inflation protection compared to funds heavily invested in fixed-income securities. The fund includes private renewable energy funds, which have been a slight drag on the overall portfolio but do offer diversification benefits.