SCHEDULE: Morgan Stanley, Parametric Disclose 6.5% Nuveen Fund Stake

Morgan Stanley and its subsidiary, Parametric Portfolio Associates LLC, have disclosed a 6.5% beneficial ownership stake in Nuveen Variable Rate Preferred & Income Fund.

Summary

• Morgan Stanley and its wholly-owned subsidiary, Parametric Portfolio Associates LLC, jointly reported beneficial ownership of 1,567,793 shares of Common Shares of Beneficial Interest in Nuveen Variable Rate Preferred & Income Fund.
• This aggregate amount represents 6.5% of the class of securities.
• The reporting persons hold 174,984 shares with shared voting power and 1,567,793 shares with shared dispositive power.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.

Sentiment

Score: 6

Explanation: The filing is a factual disclosure of a significant institutional ownership stake. While not inherently positive or negative, the presence of a major financial institution as a significant holder can be viewed as a positive signal of confidence in the fund.

Positives

• A significant institutional investor, Morgan Stanley, holds a substantial stake, potentially indicating confidence in the fund's underlying assets or strategy.
• The filing explicitly states the shares are held in the ordinary course of business and not for control purposes, suggesting a passive investment approach.

Negatives

• The filing does not provide details on the change in ownership from previous filings, making it difficult to assess if this represents an increase or decrease in their stake.

Risks

• The filing itself does not detail specific risks related to the Nuveen Variable Rate Preferred & Income Fund; it is a disclosure of ownership.

Future Outlook

The filing is a disclosure of current beneficial ownership and does not contain forward-looking statements or guidance regarding the fund's performance or future strategy.

Industry Context

This Schedule 13G filing is a routine disclosure by institutional investors, such as Morgan Stanley and its subsidiaries, when their beneficial ownership in a public company or fund exceeds 5%. It provides transparency into significant holdings by major financial players in the investment fund sector.

Related Party Transactions

• Parametric Portfolio Associates LLC, one of the reporting persons, is a wholly-owned subsidiary of Morgan Stanley, the other reporting person. This indicates a parent-subsidiary relationship in the beneficial ownership.

Stakeholder Impact

• Shareholders: Provides transparency regarding significant institutional ownership, potentially influencing market perception and liquidity.
• Fund Management: Awareness of a major institutional holder's position.

Key Dates

Keywords

Nuveen Variable Rate Preferred & Income Fund, Morgan Stanley, Parametric Portfolio Associates, Beneficial Ownership, SEC Filing, Schedule 13G, Institutional Investment, Preferred Stock, Income Fund