Stock Analysis & Valuation Nuveen Select Maturities Municipal Fund (NIM)

• Previous Close: $9.45
• Sector Valuation Confidence Level: High

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	75.07	695
Intrinsic value (DCF)	6.89	-27
Graham-Dodd Method	10.57	12
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Nuveen Select Maturities Municipal Fund (NYSE: NIM) is a closed-end fixed income mutual fund managed by Nuveen Investments, Inc., a leading asset management firm. The fund specializes in investing in high-quality municipal securities rated Baa/BBB or better, offering investors tax-exempt income at the federal level. With a focus on intermediate-term municipal bonds, NIM benchmarks its performance against the S&P Intermediate Municipal Bond Index and the S&P National Municipal Bond Index. Launched in 1992, the fund employs a bottom-up fundamental analysis approach to portfolio construction, targeting stable income generation for investors. As part of Nuveen’s extensive municipal bond fund lineup, NIM provides diversification within the tax-exempt fixed income space, appealing to income-focused investors seeking federal tax advantages. The fund’s strategy aligns with Nuveen’s broader expertise in municipal credit research and tax-aware investing.

Investment Summary

Nuveen Select Maturities Municipal Fund (NIM) offers investors exposure to a diversified portfolio of investment-grade municipal bonds, providing tax-exempt income—a key advantage for high-net-worth and tax-sensitive investors. The fund’s low beta (0.242) suggests relative stability compared to broader equity markets, making it a defensive fixed-income allocation. However, as a closed-end fund, NIM trades at market-determined premiums/discounts to NAV, introducing potential price volatility unrelated to underlying assets. The fund’s $0.33 dividend per share (yielding ~3.3% based on recent pricing) is supported by strong net income coverage (EPS $0.35). Risks include interest rate sensitivity, credit quality fluctuations in municipal markets, and Nuveen’s leverage usage ($843K debt). With modest market cap ($111M), liquidity may be constrained versus larger peers.

Competitive Analysis

NIM competes in the crowded municipal bond CEF space, where Nuveen’s scale (parent TIAA manages $1.2T AUM) provides resource advantages in credit research and distribution. The fund differentiates through its selective intermediate-term maturity focus (reducing duration risk versus long-muni funds) and Nuveen’s proprietary municipal credit analytics. However, its small size limits economies of scale versus giants like Nuveen AMT-Free Municipal Credit Income Fund (NEA, $3.1B AUM). NIM’s 0.35% expense ratio is competitive but not category-leading. Performance hinges on Nuveen’s ability to identify undervalued state/local debt while navigating fiscal pressures (e.g., pension liabilities). The fund’s tax-exempt niche shields it from taxable bond competitors but faces intra-muni competition from ETFs (e.g., MUB) offering lower-cost liquidity. Nuveen’s brand recognition in municipals helps distribution, but active management must consistently outperform passive alternatives to justify fees.

Major Competitors

• Nuveen AMT-Free Municipal Credit Income Fund (NEA): Nuveen’s larger ($3.1B AUM) national muni CEF competitor with broader duration exposure. Strengths include greater scale, higher liquidity, and Nuveen’s institutional research backing. Weaknesses: longer duration increases interest rate risk versus NIM’s intermediate focus.
• Nuveen AMT-Free Municipal Credit Income Fund (NVG): Another Nuveen CEF with similar credit quality focus but differing maturity/income strategy. NVG emphasizes higher current yield, potentially attracting different investor segments. NIM’s shorter maturity profile may appeal to those prioritizing capital stability.
• iShares National Muni Bond ETF (MUB): Passive ETF competitor with 0.07% expense ratio (vs NIM’s 0.35%). MUB’s liquidity and low cost challenge NIM’s active value proposition, though NIM can potentially outperform via security selection.
• PIMCO Municipal Income Fund II (PML): PIMCO’s active muni CEF alternative with leverage-enhanced yields. PML’s global macro integration differs from NIM’s pure domestic focus. PIMCO’s brand competes with Nuveen in fixed income, but higher leverage increases risk.