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

Shareholders of the Nuveen Preferred & Income Term Fund will vote on a Term Proposal that offers them the choice to either tender their shares at 100% of NAV or continue their investment in a perpetual fund with the same objectives and lower fees.

Summary

• Nuveen Preferred & Income Term Fund (JPI) is asking shareholders to vote on a Term Proposal at the Annual Meeting on April 12, 2024, at 2:00 p.m. CT.
• A vote FOR the Term Proposal gives shareholders the option to either continue investing in a perpetual fund or exit by tendering shares at 100% of Net Asset Value (NAV).
• If the Term Proposal fails, the Fund will automatically liquidate, removing the option for shareholders to maintain their investment in a leveraged strategy focused on preferred and other income-producing securities.
• The Board recommends that all shareholders should have the right to choose the best option for their financial goals and encourages a vote in favor of the Term Proposal.
• Shareholders can vote online, by phone, or by mail using the WHITE proxy card.

Sentiment

Score: 7

Explanation: The document presents a balanced view, offering shareholders a choice. The sentiment is neutral to slightly positive as it empowers shareholders.

Positives

• The Term Proposal provides shareholders with a choice regarding their investment.
• Shareholders have the option to tender their shares at 100% of NAV if the Term Proposal passes.
• The perpetual fund option offers the same investment objectives with lower fees over the first year.
• The Board is giving shareholders the power to choose the best option for their financial goals.

Negatives

• If the Term Proposal fails, the Fund will automatically liquidate, removing the option for shareholders to maintain their investment.

Risks

• If the Term Proposal does not pass, shareholders will lose the option to continue investing in the fund.

Future Outlook

The future of the fund depends on the outcome of the shareholder vote on the Term Proposal. If approved, the fund will transition to a perpetual fund, or shareholders can tender their shares. If not approved, the fund will liquidate.

Management Comments

• Your Board believes ALL shareholders should have the right to choose the best option for their financial goals.

Industry Context

This announcement relates to the trend of closed-end funds considering term proposals to address discount issues and provide shareholders with liquidity options.

Comparison to Industry Standards

• Other closed-end funds have implemented similar term proposals to provide shareholders with liquidity options and address discount issues.
• These proposals often involve a vote on whether to liquidate the fund or convert it to a perpetual structure.
• The outcome of these votes can significantly impact the fund's future and shareholder value.

Stakeholder Impact

• Shareholders will be directly impacted by the outcome of the vote, as it determines the future of their investment.
• If the Term Proposal passes, shareholders will have the option to tender their shares at NAV or continue investing in a perpetual fund.
• If the Term Proposal fails, the Fund will automatically liquidate, impacting all shareholders.

Next Steps

• Shareholders need to vote on the Term Proposal before the Annual Meeting on April 12, 2024.
• Shareholders can vote online, by phone, or by mail using the WHITE proxy card.

Key Dates

Keywords

Term Proposal, Nuveen Preferred & Income Term Fund, Shareholders, NAV, Liquidation, Investment Choice, Proxy Vote