Nuveen Preferred Securities & Income Opportunities Fund to cease operations, but investors should not panic.

The Nuveen Preferred Securities & Income Opportunities Fund (NYSE: JPI) will cease to exist, but investors should not panic. A potential merger with another Nuveen fund has been highlighted, and the fund's history and performance will be maintained.

September 02, 2025

Investors in the Nuveen Preferred Securities & Income Opportunities Fund (NYSE: JPI) can breathe easy, as the fund's ceasing operations does not signal a loss of investment history or performance. Instead, a potential merger with another Nuveen fund has been announced, which aims to consolidate the fund's assets and strategies.

Merger Details

The merger proposal, approved by the common shareholders of JPI and preferred shareholders of Nuveen Preferred & Income Opportunities Fund (NYSE: JPC), involves combining JPI into JPC [1]. Subject to customary closing conditions, the merger is expected to become effective before the market opens on September 22, 2025 [1]. Prior to the merger, JPI may declare a pre-merger distribution, details of which will be provided in a subsequent press release [1].

Nuveen's History and Expertise

Nuveen, a leading sponsor of closed-end funds (CEFs) with $52 billion in assets under management across 45 CEFs as of June 30, 2025, has over 35 years of experience managing CEFs [1]. The funds offer exposure to a broad range of asset classes and are designed for income-focused investors seeking regular distributions [1]. Nuveen's expertise in managing CEFs and its extensive portfolio of outcome-focused investment solutions will ensure that the merged fund continues to serve its investors effectively [1].

Investment Strategy and Performance

JPI and JPC both focus on providing high levels of current income and total return. JPI invests at least 80% of its assets in preferred securities and other income-producing securities, with up to 20% in government securities and up to 10% in emerging market securities [2]. JPC, on the other hand, invests primarily in preferred shares and other income-producing securities, with a diversified geographic exposure and a high yield of around 10% [3]. Both funds have a strong focus on investment-grade securities, with JPI investing at least 50% in securities rated BBB-/Baa3 or higher [2].

Impact on Investors

Investors in JPI should not panic. The merger will allow the fund's assets to be consolidated under JPC, ensuring that the fund's investment strategy and performance history are maintained. The merger also presents an opportunity for investors to benefit from JPC's high yield and diversified portfolio. However, it is essential for investors to consider the risks associated with closed-end funds, such as the possibility of trading at a discount from net asset value (NAV) [1].

Conclusion

The proposed merger of Nuveen Preferred Securities & Income Opportunities Fund (JPI) into Nuveen Preferred & Income Opportunities Fund (JPC) is a strategic move that aims to consolidate the fund's assets and expertise. While JPI will cease to exist, investors can take comfort in the fact that the merged fund will continue to serve its income-focused investors effectively. As always, investors should conduct thorough research and consider their individual risk tolerance and investment objectives before making any decisions.

References

[1] https://finance.yahoo.com/news/nuveen-preferred-securities-closed-end-204600522.html
[2] https://www.marketscreener.com/quote/stock/NUVEEN-PREFERRED-SECURITI-111319102/
[3] https://stockanalysis.com/stocks/jpc/