Nuveen Investments Inc. of Chicago raised $350 million for a closed-end fund that gives individual investors their first chance to take part in a U.S.-supported program that subsidizes buyers of mortgage-backed bonds.

The Nuveen Mortgage Opportunity Term Fund will invest directly in mortgage-backed securities, as well as indirectly through a fund run by Wellington Management Co. of Boston under the Treasury Department's Public-Private Investment Program, Nuveen said Wednesday.

The Nuveen fund sold 14 million shares at $25 apiece. Underwriters have an option to sell an additional 2 million shares, depending on investor demand.

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