Nuveen Intermediate Duration Quality Municipal Term Fund Announces Termination And Liquidation
Nuveen Intermediate Duration Quality Municipal Term Fund (NYSE:NIQ) completed its termination and liquidation following the close of business on June 30, 2023. The termination and liquidation was performed in accordance with the fund's investment objectives and organizational documents, consistent with the fund's previously announced liquidation plans.
Nuveen Intermediate Duration Quality Municipal Term Fund launched on February 7, 2013 as an intermediate duration strategy that invested primarily in municipal securities, the income from which is exempt from regular federal income tax. The fund had a primary investment objective to provide current income exempt from regular federal income tax and a secondary objective to seek additional total return. NIQ was designed to liquidate and distribute its then-current net assets to shareholders upon termination on or before June 30, 2023.
As previously announced, NIQ owned securities of Energy Harbor Corp. (ENGH) that represented approximately 4.4% of the fund's common assets as of June 30, 2023. The securities of ENGH, upon the fund's termination, were transferred to a liquidating trust intended to facilitate the orderly disposition of those assets.
Upon the fund's termination, NIQ had a final extended net asset value (NAV) of $12.9850 per common share. In its liquidation, the fund paid a cash distribution of $12.4082 per common share to all fund shareholders. Additionally, the fund distributed one unit of Nuveen Intermediate Duration Quality Municipal Term Fund Liquidating Trust per common share of NIQ owned by each shareholder on the liquidation date. Upon its formation on June 30, 2023, the liquidating trust had an NAV equal to $0.5768 per unit.
Per share details are as follows:
Total value of final liquidating distributions1 |
$12.9850 |
|
Cash distribution |
$12.4082 |
|
Per share value of liquidating trust units1 |
$0.5768 |
Over its ten-year term, the fund paid 122 regular distributions totaling in the aggregate $4.911 per share, which equates to an average annual distribution rate of 3.30% on NAV and 3.15% on market price. The annualized total return on NAV for shareholders who invested at the initial public offering was 2.50% and the total return on market price was 2.18%.
Shareholders may recognize a gain or loss for U.S. tax purposes as a result of the liquidation. Nuveen does not provide tax advice; investors should consult a professional tax advisor regarding their specific tax situation.