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

Nuveen Preferred & Income Term Fund encourages shareholders to vote FOR the Term Proposal on the WHITE proxy card to eliminate the fund's termination date and preserve shareholder options.

Summary

• Nuveen Preferred & Income Term Fund is asking shareholders to vote FOR the Term Proposal to eliminate the fund's scheduled termination date of August 31, 2024.
• Voting FOR the proposal allows shareholders to either continue their investment or tender their shares at up to 100% of the net asset value (NAV).
• Voting against the proposal will result in the fund's termination, potentially leading to tax consequences for shareholders.
• The Board of Directors urges shareholders to vote on the WHITE proxy card to protect their options and decide the future of their investment.

Sentiment

Score: 7

Explanation: The document expresses a moderately positive sentiment, advocating for the Term Proposal and emphasizing shareholder choice. However, it also acknowledges the potential negative consequences of the fund's termination if the proposal is not approved.

Positives

• Voting FOR the Term Proposal provides shareholders with the option to continue their investment in the fund.
• Shareholders can tender their shares at up to 100% of the net asset value (NAV) if they vote FOR the proposal.
• Eliminating the term structure provides flexibility for the fund's future management.

Negatives

• Voting against the Term Proposal will result in the fund's termination.
• Fund termination may lead to potential tax consequences for shareholders.
• Shareholders will need to find another investment that meets the same investment criteria if the fund terminates.

Risks

• If the Term Proposal is not approved, the fund will terminate, potentially causing tax implications for shareholders.
• A hedge fund is trying to convince shareholders to vote against the Term Proposal, which the document claims would eliminate shareholder options.

Future Outlook

The future of the fund depends on the outcome of the shareholder vote on the Term Proposal. If approved, the fund will continue operating without a termination date. If not approved, the fund will terminate on August 31, 2024.

Management Comments

• The Board urges you to vote on the WHITE proxy card today to protect your options.
• Don't let a hedge fund, who didn't even own JPI shares on record date and wants to eliminate your options, convince you otherwise.

Industry Context

This announcement reflects the ongoing discussions and decisions regarding the structure and future of closed-end funds, particularly those with term dates. Shareholders are often presented with choices to either extend the fund's life or liquidate the assets.

Comparison to Industry Standards

• Many closed-end funds have term dates and periodically seek shareholder approval to eliminate or extend them.
• The decision to extend or terminate a fund often depends on factors such as market conditions, fund performance, and shareholder preferences.
• Other comparable funds that have faced similar decisions include those managed by BlackRock, Eaton Vance, and Invesco.

Stakeholder Impact

• Shareholders will be directly impacted by the outcome of the vote, as it will determine the future of their investment in the fund.
• The fund's management team will be affected by the decision, as it will determine their future role in managing the fund.

Next Steps

• Shareholders need to vote on the Term Proposal before the Annual Meeting on April 12, 2024.
• The Board will likely announce the results of the vote after the Annual Meeting.

Key Dates

Keywords

Term Proposal, Nuveen Preferred & Income Term Fund, Shareholder Vote, Termination Date, Net Asset Value, Proxy, JPI