SCHEDULE: Morgan Stanley Reports 6.5% Stake in Nuveen Fund

Morgan Stanley and its subsidiary Parametric Portfolio Associates LLC have reported 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, have filed an Amendment No. 1 to Schedule 13G.
• The filing reports 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.
• Morgan Stanley and Parametric Portfolio Associates LLC share voting power over 174,984 shares and shared dispositive power over 1,567,793 shares.
• The securities were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 6

Explanation: The filing is a factual report of beneficial ownership. The acquisition of a 6.5% stake by a major financial institution can be viewed as a positive signal of confidence in the Nuveen fund, hence a slightly positive score. There are no explicit negative financial or operational details.

Positives

• Morgan Stanley, a major financial institution, and its subsidiary Parametric Portfolio Associates LLC, a significant investment adviser, have taken a substantial 6.5% stake in the Nuveen Variable Rate Preferred & Income Fund, indicating confidence in the fund's underlying assets or strategy.

Negatives

• NA

Risks

• The filing indicates the 'Date of Event Which Requires Filing of this Statement' as June 30, 2025, which is a future date. This is highly unusual for a Schedule 13G, which typically reports beneficial ownership as of a past date, and could indicate a clerical error or an atypical reporting scenario.

Future Outlook

This filing is a beneficial ownership report and does not contain forward-looking statements or guidance regarding the issuer's financial performance or strategic outlook.

Industry Context

This filing reflects a significant institutional investment in a variable rate preferred and income fund, a common strategy for large asset managers seeking yield and diversification within fixed income or hybrid securities. The involvement of a major player like Morgan Stanley, through its subsidiary Parametric Portfolio Associates, highlights continued institutional interest in specialized income-generating funds.

Comparison to Industry Standards

• NA

Related Party Transactions

• The securities reported by Morgan Stanley as a parent holding company are owned, or may be deemed to be beneficially owned, by Parametric Portfolio Associates LLC, which is a wholly-owned subsidiary of Morgan Stanley. This indicates a related party ownership structure.

Stakeholder Impact

• Shareholders of Nuveen Variable Rate Preferred & Income Fund may view the significant stake taken by Morgan Stanley and Parametric Portfolio Associates LLC as a vote of confidence, potentially leading to increased investor interest or stability in the fund's shares.
• The filing confirms that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer, which may reassure existing management and other stakeholders.

Key Dates

Keywords

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