Nuveen Closed-End Funds Declare Distributions

Rhea-AI Summary

Several Nuveen closed-end funds have declared distributions, including the Nuveen Variable Rate Preferred & Income Fund (NPFD) and Nuveen Core Plus Impact Fund (NPCT). NPFD has announced a distribution rate increase of approximately 28%, while NPCT has announced a distribution rate increase of approximately 10%. The changes aim to deliver higher monthly cash flows to shareholders, support secondary market trading, and improve each fund’s discount to NAV. However, it is anticipated that to maintain the declared distribution rates, the funds may make distributions from sources other than the current net investment income of the funds, potentially including a return of capital. Shareholders can expect regular distribution information to be posted on www.nuveen.com on the first business day of each month.

Insights

Financial Analyst

The announcement by Nuveen regarding the distribution rate increases for Nuveen Variable Rate Preferred & Income Fund (NPFD) and Nuveen Core Plus Impact Fund (NPCT) is a significant development for investors. An increase of 28% and 10% in distribution rates respectively suggests a strategic move to enhance the attractiveness of these funds. By aiming to provide higher monthly cash flows, Nuveen may be addressing investor demand for income in a low-interest-rate environment.

However, it is crucial to scrutinize the sustainability of these increased distributions. If the funds are relying on sources other than net investment income, such as a return of capital, to maintain these rates, it could indicate that the funds are not generating enough income from their investments. This could lead to a reduction in the fund's NAV over time, which is a key metric for assessing a fund's performance and an investor's principal value.

Investors should also be aware of the tax implications of distributions that include a return of capital. While these distributions can provide immediate cash flow, they may alter the tax basis of the investment, potentially leading to higher capital gains taxes when the shares are eventually sold.

Market Research Analyst

The decision by Nuveen to increase distribution rates may reflect broader market trends where investors are seeking reliable income streams, particularly in the context of retirement planning. The closed-end fund structure allows for a consistent distribution policy, which can be appealing to those who require steady cash flows.

Moreover, the emphasis on improving the funds' discount to NAV suggests that Nuveen is actively trying to enhance liquidity and marketability of the fund shares. This could be a response to the funds trading at a discount to their NAV, which is often a concern for closed-end fund investors. By increasing distributions, Nuveen might be attempting to narrow this discount and make the funds more attractive to both existing and potential shareholders.

However, the impact of such strategic moves on the secondary market trading and the long-term performance of the funds remains to be seen. Investors and analysts should monitor the funds' ability to generate income and the potential erosion of NAV, as these factors will play a critical role in determining the overall success of Nuveen's strategy.

Tax Advisor

From a tax perspective, the nature of the distributions is an important consideration for shareholders. If distributions are classified as a return of capital, they are not taxed immediately but reduce the cost basis of the investment, which could result in higher capital gains taxes upon the sale of the shares. It is essential for shareholders to understand the tax characterization of their distributions as it affects their after-tax return.

Nuveen's commitment to providing estimates of distribution sources at the time of distribution, as well as the final tax characterization on the 1099-DIV forms, is important for shareholders' tax planning. Shareholders should consult with tax professionals to understand the implications of these distributions on their personal tax situations and to ensure compliance with tax regulations.

NEW YORK--(BUSINESS WIRE)-- Several Nuveen closed-end funds have declared distributions. These funds represent investment strategies for investors seeking diversified sources of cash flow to prepare for and sustain their retirement income needs. For further information regarding fund distributions, including earnings, undistributed net investment income, and notices, please visit www.nuveen.com/cef.

The Nuveen Variable Rate Preferred & Income Fund (NYSE: NPFD) has announced a distribution rate increase of approximately 28% and Nuveen Core Plus Impact Fund (NYSE: NPCT) has announced a distribution rate increase of approximately 10% to deliver higher monthly cash flows to shareholders. These changes are intended to help support secondary market trading in fund shares and improve each fund’s discount to NAV. It is anticipated that to maintain the declared distribution rates, the funds may make distributions from sources other than the current net investment income of the funds. In this regard, the source of monthly distributions may include a return of capital.

Shareholders can expect regular distribution information to be posted on www.nuveen.com on the first business day of each month. To ensure that our shareholders have access to the latest information, timely distribution and fund updates can be subscribed to at www.nuveen.com/subscriptions, under the closed-end funds tab of the Product Documents section. You can also follow updates by navigating to the Closed-End Fund section of our Resource Center, located at www.nuveen.com/resource-center.

Monthly Distributions

The funds listed in the tables below have adopted a policy to make regular monthly cash distributions to holders of its common shares (stated in terms of a fixed cents per common share dividend distribution rate which may be set from time to time). Each Fund intends to distribute all or substantially all of its net investment income each year through its regular monthly distribution and to distribute realized capital gains at least annually. In addition, in any monthly period, to maintain its declared per common share distribution amount, each Fund may distribute more or less than its net investment income during the period. In the event a Fund distributes more than its net investment income during any yearly period, such distributions may also include realized gains and/or a return of capital. To the extent that a distribution includes a return of capital the NAV per share may erode. If a distribution includes anything other than net investment income, the fund provides a notice of the best estimate of its distribution sources at the time of the distribution which may be viewed at www.nuveen.com/CEFdistributions. These estimates may not match the final tax characterization (for the full year’s distributions) contained in shareholders’ 1099-DIV forms after the end of the year.

You should not draw any conclusions about the Fund’s investment performance from the amount of the distribution. A distribution including return of capital does not necessarily reflect a Fund’s investment performance and should not be confused with “yield” or “income.”

The following dates apply to today's monthly distribution declarations for the following tax-exempt closed-end funds:

Record Date February 15, 2024
Ex-Dividend Date February 14, 2024
Payable Date March 1, 2024

			Monthly Distribution Per Share
Ticker**	Exchange	Fund Name	Amount	Change from Previous Month
		National Municipal
NXP	NYSE	Nuveen Select Tax-Free Income Portfolio	$0.0485	-
NUV	NYSE	Nuveen Municipal Value Fund, Inc.	$0.0290	-
NUW	NYSE	Nuveen AMT-Free Municipal Value Fund	$0.0425	-
NMI	NYSE	Nuveen Municipal Income Fund, Inc.	$0.0340	-
NIM	NYSE	Nuveen Select Maturities Municipal Fund	$0.0260	-
NZF	NYSE	Nuveen Municipal Credit Income Fund	$0.0515	-
NMZ	NYSE	Nuveen Municipal High Income Opportunity Fund	$0.0425	-
NAD	NYSE	Nuveen Quality Municipal Income Fund	$0.0440	-
NEA	NYSE	Nuveen AMT-Free Quality Municipal Income Fund	$0.0425	-
NVG	NYSE	Nuveen AMT-Free Municipal Credit Income Fund	$0.0505	-
NMCO	NYSE	Nuveen Municipal Credit Opportunities Fund	$0.0455	-
NDMO	NYSE	Nuveen Dynamic Municipal Opportunities Fund	$0.0620	-
		California Municipal
NAC	NYSE	Nuveen California Quality Municipal Income Fund	$0.0435	-
NKX	NYSE	Nuveen California AMT-Free Quality Municipal Income Fund	$0.0455	-
NCA	NYSE	Nuveen California Municipal Value Fund	$0.0290	-
NXC	NYSE	Nuveen California Select Tax-Free Income Portfolio	$0.0455	-
		New York Municipal
NRK	NYSE	Nuveen New York AMT-Free Quality Municipal Income Fund	$0.0410	-
NAN	NYSE	Nuveen New York Quality Municipal Income Fund	$0.0430	-
NXN	NYSE	Nuveen New York Select Tax-Free Income Portfolio	$0.0410	-
NNY	NYSE	Nuveen New York Municipal Value Fund	$0.0280	-
		Other State Municipal Funds
NAZ	NYSE	Nuveen Arizona Quality Municipal Income Fund	$0.0350	-
NMT	NYSE	Nuveen Massachusetts Quality Municipal Income Fund	$0.0310	-
NMS	NYSE	Nuveen Minnesota Quality Municipal Income Fund	$0.0410	-
NOM	NYSE	Nuveen Missouri Quality Municipal Income Fund	$0.0315	-
NXJ	NYSE	Nuveen New Jersey Quality Municipal Income Fund	$0.0345	-
NQP	NYSE	Nuveen Pennsylvania Quality Municipal Income Fund	$0.0325	-
NPV	NYSE	Nuveen Virginia Quality Municipal Income Fund	$0.0365	-

**All of the funds listed in the table immediately above are currently not relying on any exemptive relief from Section 19(b) of the Investment Company Act of 1940, as amended (the “1940 Act”).

The following dates apply to today's distribution declarations for the following taxable closed-end funds:

Record Date February 15, 2024
Ex-Dividend Date February 14, 2024
Payable Date March 1, 2024

			Monthly Distribution Per Share
Ticker	Exchange	Fund Name	Amount	Change from Previous Month
		Preferred and Income Securities
JPC*	NYSE	Nuveen Preferred & Income Opportunities Fund	$0.0475	-
JPI*	NYSE	Nuveen Preferred and Income Term Fund	$0.0980	-
NPFD*	NYSE	Nuveen Variable Rate Preferred & Income Fund	$0.1195	$0.0260
		Taxable Municipals
NBB*	NYSE	Nuveen Taxable Municipal Income Fund	$0.0735	-
		Floating Rate
JFR*	NYSE	Nuveen Floating Rate Income Fund	$0.0850	-
JQC*	NYSE	Nuveen Credit Strategies Income Fund	$0.0540	-
		Mortgage-Backed Securities
JMM*	NYSE	Nuveen Multi-Market Income Fund	$0.0275	-
JLS*	NYSE	Nuveen Mortgage and Income Fund	$0.1420	-
		Global High Yield Debt
JGH*	NYSE	Nuveen Global High Income Fund	$0.1035	-
		Real Assets
JRI	NYSE	Nuveen Real Asset Income and Growth Fund	$0.1000	-
		Taxable Fixed Income-Multi-Sector
NPCT*	NYSE	Nuveen Core Plus Impact Fund	$0.0915	$0.0085

^*The funds indicated above are currently not relying on any exemptive relief from Section 19(b) of the Investment Company Act of 1940, as amended (the “1940 Act”).

Nuveen is a leading sponsor of closed-end funds (CEFs) with $51 billion of assets under management across 48 CEFs as of 30 Sep 2023. The funds offer exposure to a broad range of asset classes and are designed for income-focused investors seeking regular distributions. Nuveen has more than 35 years of experience managing CEFs. For more information, please visit Nuveen’s CEF homepage www.nuveen.com/closed-end-funds or contact:

About Nuveen

Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.1 trillion in assets under management as of 30 Sep 2023 and operations in 27 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit www.nuveen.com.

Nuveen Securities, LLC, member FINRA and SIPC.

The information contained on the Nuveen website is not a part of this announcement.

FORWARD LOOKING STATEMENTS

Certain statements made in this release are forward-looking statements. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to:

• market developments;
• legal and regulatory developments; and
• other additional risks and uncertainties.

Nuveen and the closed-end funds managed by Nuveen and its affiliates undertake no responsibility to update publicly or revise any forward-looking statement.

EPS-3361346CR-E0224W

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Financial Professionals:

800-752-8700

Investors:

800-257-8787

Media:

media-inquiries@nuveen.com

Source: Nuveen

FAQ

What is the distribution rate increase for NPFD and NPCT?

NPFD has announced a distribution rate increase of approximately 28%, while NPCT has announced a distribution rate increase of approximately 10%.

Where can shareholders expect regular distribution information to be posted?

Shareholders can expect regular distribution information to be posted on www.nuveen.com on the first business day of each month.

What sources may the funds use to maintain the declared distribution rates?

The funds may make distributions from sources other than the current net investment income of the funds, potentially including a return of capital, to maintain the declared distribution rates.