Nuveen Investments, a leading global provider of investment services to institutions as well as individual investors, today announced it has successfully completed the initial public offering of the Nuveen Intermediate Duration Quality Municipal Term Fund (NYSE: NIQ). The new closed-end fund’s primary investment objective is to provide current income exempt from regular federal income tax and its secondary investment objective is to seek additional total return. The fund will seek to achieve its investment objectives by investing in a diversified portfolio of primarily investment grade quality municipal securities. The fund will also seek to reduce the risk of rising interest rates by maintaining a portfolio with an intermediate duration of between three and ten years (including the effects of leverage). The fund offers investors a ten-year term structure. On or before June 30, 2023, the fund intends to liquidate its portfolio and distribute its then-current net assets to shareholders at that time.
The fund will begin trading on the New York Stock Exchange (NYSE) today, under the symbol NIQ.
The fund raised approximately $187.5 million in its common share offering, excluding any exercise of the underwriters’ option to purchase additional shares. If the underwriters exercise that option in full, the fund will have raised $215.625 million.
Nuveen Fund Advisors, LLC will be the fund’s investment adviser, responsible for the fund’s overall investment strategy and its implementation, including the use of leverage. Nuveen Fund Advisors, a registered investment adviser, is a subsidiary of Nuveen Investments. Nuveen Asset Management, LLC, also a subsidiary of Nuveen Investments, will be the fund’s sub-adviser and responsible for the day-to-day management of the Fund’s portfolio of securities. The lead managers of the underwriting syndicate were BofA Merrill Lynch, Citigroup Global Markets Inc., Wells Fargo Securities, LLC and Nuveen Securities, LLC.
Shares of closed-end investment companies, like the fund, usually trade on a national stock exchange. Similar to stocks, the fund’s share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value. The fund’s investment objectives and policies are not designed to return to investors who purchased shares in this offering their initial investment on the termination date, and such investors and any investor that purchase common shares after completion of this offering may receive more or less than their original investment upon termination.
Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates—Nuveen Asset Management, LLC, Symphony Asset Management LLC, NWQ Investment Management Company, LLC, Santa Barbara Asset Management, LLC, Tradewinds Global Investors, LLC, Winslow Capital Management, LLC and Gresham Investment Management LLC, all of which are registered investment advisers and subsidiaries of Nuveen Investments, Inc. In total, Nuveen Investments managed approximately $219 billion as of December 31, 2012. For more information, please visit the Nuveen Investments website at www.nuveen.com.
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