DEFA14A: Nuveen Preferred & Income Term Fund Shareholder Meeting Adjourned, Vote Extended

The Nuveen Preferred & Income Term Fund (JPI) shareholder meeting has been adjourned to June 3, 2024, to allow more time for voting on the proposal to eliminate the term and convert the fund to a perpetual structure.

Summary

• The Nuveen Preferred & Income Term Fund (JPI) shareholder meeting has been adjourned to June 3, 2024.
• The adjournment provides shareholders additional time to vote on the proposal to eliminate the term and convert the fund to a perpetual structure.
• If the proposal passes, shareholders will have the option to remain invested in JPI or tender their shares for NAV on or before August 31, 2024.
• If the fund continues as a perpetual fund with remaining assets greater than $70 million, Nuveen will waive 50% of its net management fees for the first year.
• The fund is scheduled to terminate on August 31, 2024, unless the proposal is approved.

Sentiment

Score: 7

Explanation: The document presents a neutral to slightly positive outlook, offering shareholders options and potential benefits (fee waiver) while acknowledging the risks associated with closed-end funds.

Positives

• Shareholders have the option to remain invested in preferreds and earn high levels of QDI-eligible income if the proposal passes.
• Shareholders will have liquidity at NAV even if the proposal passes, through the tender offer.
• Nuveen will waive 50% of its net management fees for the first year if the fund continues as a perpetual fund with assets greater than $70 million.

Risks

• Common shares frequently trade at a discount to their NAV.
• At any point in time, your common shares may be worth less than you paid, even after considering the reinvestment of fund distributions.
• Closed-end fund shares are subject to investment risk, including the possible loss of the entire principal amount that you invest.

Future Outlook

If the vote passes and the remaining assets in the fund are greater than $70mm, the fund will continue as a perpetual fund.

Management Comments

• We are asking that you reach out to advisors or shareholders who have an allocation to JPI and encourage them to vote in a manner that is consistent with their needs.
• We would like to emphasize that clients will have liquidity at NAV even if the proposal passes.

Industry Context

This announcement relates to the closed-end fund industry, where term funds are sometimes converted to perpetual funds to allow for continued management and income generation.

Comparison to Industry Standards

• Converting a term fund to a perpetual fund is a common strategy in the closed-end fund industry.
• Other companies such as BlackRock and Invesco have also converted term funds to perpetual funds.
• The waiver of management fees is a positive incentive for shareholders to approve the conversion.

Stakeholder Impact

• Shareholders will have the option to remain invested or tender their shares for NAV.
• Financial advisors are encouraged to discuss the proposal with their clients.

Next Steps

• Shareholders should vote on the proposal to eliminate the term and convert the fund to a perpetual structure.
• Shareholders should decide whether to remain invested in JPI or tender their shares for NAV on or before August 31, 2024, if the proposal passes.

Key Dates

Keywords

Nuveen, Preferred Income Term Fund, JPI, Shareholder Meeting, Perpetual Fund, NAV, Vote, Tender Offer, Management Fees, Liquidity