DEFA14A: Nuveen Preferred & Income Term Fund: Shareholders to Vote on Term Proposal

Nuveen Preferred & Income Term Fund (JPI) urges shareholders to vote FOR the Term Proposal on the WHITE proxy card to preserve investment optionality.

Summary

• Nuveen Preferred & Income Term Fund (JPI) is holding an Annual Meeting where shareholders will vote on a Term Proposal.
• A vote FOR the Term Proposal allows shareholders to continue their investment in JPI with a management fee discount for the first year or tender some or all of their shares at 100% of NAV.
• If the Term Proposal is not approved, the Fund will automatically terminate for all shareholders.
• The Board recommends a YES vote on the WHITE proxy card.
• Shareholders can vote online, by phone, or by mail using the instructions on the WHITE proxy card.
• The Annual Meeting date has moved to May 10, 2024, at 2:00 P.M. Central Time.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The document clearly communicates the importance of the vote and offers potential benefits to shareholders (management fee discount, tender at NAV) if the proposal passes. However, there's also the risk of fund termination if it fails.

Positives

• Shareholders have the option to continue investing in JPI with a management fee discount for the first year if the Term Proposal is approved.
• Shareholders can tender some or all of their shares at 100% of NAV if the Term Proposal is approved.

Negatives

• If the Term Proposal is not approved, the Fund will automatically terminate, potentially disrupting investment plans for shareholders who wish to continue investing.

Risks

• Failure to approve the Term Proposal will result in the automatic termination of the Fund.

Future Outlook

The future of the fund depends on the shareholder vote on the Term Proposal, with potential continuation under revised terms or automatic termination.

Management Comments

• The Board recommends a YES vote on the WHITE proxy card.
• Every shareholder voice matters, and every vote is necessary.

Industry Context

This announcement is typical for closed-end funds considering changes to their structure or investment strategy, requiring shareholder approval through a proxy vote.

Comparison to Industry Standards

• Other closed-end funds, such as those managed by BlackRock or Invesco, often undergo similar processes when considering term extensions or liquidations.
• The offer to tender shares at NAV is a common mechanism to provide liquidity to shareholders in such situations, aligning with industry practices.
• Management fee discounts are also frequently used as incentives to encourage shareholder support for proposed changes.

Stakeholder Impact

• Shareholders will be directly impacted by the outcome of the vote, affecting their investment in JPI.
• Fund management will be impacted as the fund will either continue under revised terms or be terminated.

Next Steps

• Shareholders need to vote on the Term Proposal before the Annual Meeting on May 10, 2024.
• Shareholders should follow the instructions on the WHITE proxy card to vote online, by phone, or by mail.

Key Dates

Keywords

Term Proposal, Nuveen Preferred & Income Term Fund, JPI, Annual Meeting, Proxy Vote, Shareholders, NAV, Management Fee, Fund Termination