JPI - JPI: This Preferred CEF Delivers On Its Term Structure

2024-02-02 07:30:48 ET

Summary

• The preferred CEF JPI has delivered on its term structure by offering investors an exist at the NAV.
• While there are always risks in the termination process, these are mitigated by a number of factors.
• The fund offers a strong near-term tactical opportunity.

Many investors and analysts assume that all term CEFs are going to terminate because, well, it's in the name. The reality, as many experienced investors know, is very different. A number of funds have avoided a termination by simply asking their shareholders to approve an amendment turning it into a plain old perpetual one. On the other hand, as we have discussed previously, Nuveen is the only manager that has consistently delivered on the premise of term CEFs and it is doing it again with its Preferred and Income Term Fund ( JPI )....

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