SCHEDULE 13G/A: Morgan Stanley Reduces Stake in Nuveen Variable Rate Preferred & Income Fund Below 5%

Morgan Stanley and its subsidiary, Morgan Stanley Smith Barney LLC, have reported a reduction in their beneficial ownership of Nuveen Variable Rate Preferred & Income Fund to 2.5%, falling below the 5% threshold.

Summary

• Morgan Stanley and its wholly-owned subsidiary, Morgan Stanley Smith Barney LLC, have filed an Amendment No. 2 to Schedule 13G regarding their beneficial ownership in Nuveen Variable Rate Preferred & Income Fund.
• As of December 31, 2024, the aggregate amount beneficially owned by each reporting person is 594,330 shares of Common Shares of Beneficial Interest.
• This represents 2.5% of the class of securities, which is below the 5% threshold that typically triggers Schedule 13D filings or continued 13G reporting for larger stakes.
• Both Morgan Stanley and Morgan Stanley Smith Barney LLC have ceased to be beneficial owners of more than five percent of the class of securities.
• 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: 5

Explanation: The document is a standard regulatory filing (Schedule 13G Amendment) reporting a change in beneficial ownership. It is purely factual and informational, indicating a reduction in stake below a reporting threshold. It carries a neutral sentiment as it does not convey positive or negative news about the issuer's performance or future prospects, nor does it suggest any strategic intent beyond ordinary course of business.

Future Outlook

The document does not contain any forward-looking statements or guidance regarding the future outlook of Nuveen Variable Rate Preferred & Income Fund or Morgan Stanley's investment strategy.

Management Comments

• "As of the date hereof, Morgan Stanley has ceased to be the beneficial owner of more than five percent of the class of securities."
• "As of the date hereof, Morgan Stanley Smith Barney LLC has ceased to be the beneficial owner of more than five percent of the class of securities."
• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11."

Industry Context

This filing reflects a routine disclosure of a change in institutional ownership, specifically a reduction below a significant reporting threshold. Such adjustments in holdings by large financial institutions like Morgan Stanley are common and can be driven by various factors including portfolio rebalancing, client activity, or changes in investment strategy, without necessarily indicating a specific trend for the broader preferred and income fund market.

Related Party Transactions

• Morgan Stanley Smith Barney LLC is a wholly-owned subsidiary of Morgan Stanley, and their beneficial ownership is reported jointly.

Stakeholder Impact

• Shareholders of Nuveen Variable Rate Preferred & Income Fund: The reduction in Morgan Stanley's stake might be interpreted differently by investors; some may see it as a lack of conviction, while others may view it as a routine portfolio adjustment. It could potentially lead to minor shifts in trading volume or short-term price movements depending on market interpretation.
• Morgan Stanley: The filing indicates compliance with SEC regulations regarding beneficial ownership disclosures.

Key Dates

Keywords

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