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

Nuveen Preferred & Income Term Fund (JPI) is urging shareholders to vote FOR the Term Proposal to protect investor choice and their investment, offering a management fee discount or tender option at 100% NAV.

Summary

• Nuveen Preferred & Income Term Fund (JPI) is soliciting votes for its Term Proposal.
• The Annual Meeting is scheduled for May 10, 2024, at 2:00 p.m. Central Time.
• A vote FOR the Term Proposal allows shareholders to continue investing in JPI with a management fee discount for the first year or tender shares at 100% of NAV.
• Without shareholder approval, the Fund will automatically terminate.
• Shareholders are encouraged to vote online, by phone, or by mail using the WHITE proxy card.
• Computershare Fund Services is available at 1 (888) 815-5825 to answer any questions.

Sentiment

Score: 7

Explanation: The document conveys a sense of urgency and emphasizes the importance of shareholder participation. The offer of a management fee discount and the option to tender shares at NAV are positive incentives, but the potential for fund termination introduces a degree of uncertainty.

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.
• The Term Proposal aims to protect investor choice and investment options.

Negatives

• If the Term Proposal is not approved, the Fund will automatically terminate, potentially impacting shareholder investments.

Risks

• Failure to secure enough votes for the Term Proposal will lead to the Fund's termination.
• Shareholders who do not vote are effectively voting against the Term Proposal.

Future Outlook

The future of the fund depends on the shareholder vote on the Term Proposal, which will determine whether the fund continues with a management fee discount or terminates.

Management Comments

• The Board asks every JPI shareholder to vote FOR the Term Proposal on the WHITE proxy card.
• Voting FOR the Term Proposal empowers you to continue your investment in JPI with a management fee discount for the first year or tender some or all of your shares at 100% of NAV.
• Without your vote, the Fund automatically terminates for all.
• Protect investor choice and your investment by voting FOR the Term Proposal.
• EVERY SHAREHOLDER VOICE MATTERS.
• EVERY VOTE IS NECESSARY.
• YOUR VOTE MAKES THE DIFFERENCE.
• No vote is a vote against the Term Proposal.

Industry Context

This announcement is typical for closed-end funds facing term dates, where shareholders are given the option to extend the fund's life or liquidate it.

Comparison to Industry Standards

• Other closed-end funds, such as those managed by BlackRock or Invesco, have faced similar situations, offering shareholders choices between continuation with revised terms or liquidation.
• The management fee discount offered as an incentive for continuation is a common practice in the industry to encourage shareholder support.

Stakeholder Impact

• Shareholders will be directly impacted by the outcome of the vote, as it will determine whether they can continue investing in the fund or if the fund will terminate.
• The fund's management team is also impacted, as the fund's continuation depends on shareholder approval.

Next Steps

• Shareholders need to vote on the Term Proposal before the Annual Meeting on May 10, 2024.
• The outcome of the vote will determine the future of the Nuveen Preferred & Income Term Fund (JPI).

Key Dates

Keywords

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