The year's strong performance let the funds expand their capitalization through a series of rights offerings.
In fact, Safeguard's stated goal is to average two rights offerings a year during the next five years.
Apparently the rights offering cleared the way for such a deal because the debt had already been reduced.
The funds increase capital through rights offerings because under law they cannot otherwise sell shares at less than net asset value.
Of the 11 rights offerings in the last two years, four required five rights to purchase one share.
In addition, the types of funds considered suitable for rights offerings have increased.
Share prices of the Nuveen funds have dropped more than 6 percent since the rights offerings were announced.
That has required some education on how rights offerings work.
An unusual rights offering seems intended to allow him to increase his stake.
They purchased the stock in rights offerings at book value and sold when the bank seemed to be prospering.
