A Nuveen [see profile] fund that bets on preferred securities is making headlines for its under the radar, high return plays.

Douglas Baker, manager of Nuveen Investments LLC's Nuveen Preferred Securities Fund, told the Wall Street Journal that the fund invests in double-A rated bank or financial services company and gets a return that matches a lower credit profile. J.P. Morgan Chase & Co., Wells Fargo & Co. and German insurer Allianz SE are reportedly among the Nuveen fund's top five holdings.

In 2009, the Nuveen fund reportedly posted a return of 43 percent and last year it was up some 19 percent, according to Morningstar. By comparison, the Barclays Capital U.S. Aggregate Bond Index returned 5.9 percent and 6.5 percent in 2009 and 2010, respectively.  

Edited by: Hung Tran


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