Nuveen Preferred and Income Term Fund

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-22699

Nuveen Preferred and Income Term Fund

(Exact name of registrant as specified in charter)

    333 West Wacker Drive, Chicago, Illinois 60606    

(Address of principal executive offices) (Zip code)

Gifford R. Zimmerman—Vice President and Secretary

    333 West Wacker Drive, Chicago, Illinois 60606    

(Name and address of agent for service)

Registrant’s telephone number, including area code:     312-917-7700    

Date of fiscal year end:       July 31      

Date of reporting period:  October 31, 2017  

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

 

 


Item 1. Schedule of Investments

 

 


JPI

 

Nuveen Preferred and Income Term Fund

Portfolio of Investments

   October 31, 2017 (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
 

LONG-TERM INVESTMENTS – 136.2% (99.3% of Total Investments)

 

        
 

$25 PAR (OR SIMILAR) RETAIL PREFERRED – 33.4% (24.3% of Total Investments)

 

     
      Banks – 10.6%                           
  118,400    

AgriBank FCB, (3)

    6.875%           BBB+      $ 13,112,800  
  274,167    

Citigroup Inc., (4)

    7.125%           BB+        7,896,010  
  155,800    

Cobank Agricultural Credit Bank, (3)

    6.250%           BBB+        16,748,500  
  40,797    

Cobank Agricultural Credit Bank, (3)

    6.200%           BBB+        4,369,106  
  107,726    

Fifth Third Bancorp., (4)

    6.625%           Baa3        3,069,114  
  157,500    

Huntington BancShares Inc.

    6.250%           Baa3        4,372,200  
  313,800    

Regions Financial Corporation, (4)

    6.375%           Ba1        8,896,230  
  114,600    

Wells Fargo REIT, (4)

    6.375%           BBB+        3,036,900  
  41,069    

Zions Bancorporation

    6.300%                 BB–        1,130,629  
 

Total Banks

                               62,631,489  
      Capital Markets – 4.5%                           
  54,600    

Goldman Sachs Group, Inc.

    5.500%           Ba1        1,466,010  
  342,100    

Morgan Stanley, (4)

    7.125%           BB+        9,903,795  
  235,300    

Morgan Stanley, (4)

    6.875%           BB+        6,717,815  
  191,400    

Morgan Stanley

    5.850%           BB+        5,167,800  
  61,000    

Northern Trust Corporation

    5.850%           BBB+        1,618,330  
  54,750    

State Street Corporation

    5.350%                 Baa1        1,489,200  
 

Total Capital Markets

                               26,362,950  
      Consumer Finance – 0.8%                           
  185,926    

GMAC Capital Trust I

    5.785%                 B+        4,882,417  
      Food Products – 3.1%                           
  185,400    

CHS Inc., (4)

    7.875%           N/R        5,365,476  
  161,100    

CHS Inc., (4)

    7.100%           N/R        4,457,637  
  141,800    

CHS Inc., (4)

    6.750%           N/R        3,871,140  
  24,000    

Dairy Farmers of America Inc., 144A, (3)

    7.875%           Baa3        2,549,251  
  20,500    

Dairy Farmers of America Inc., 144A, (3)

    7.875%                 Baa3        2,337,000  
 

Total Food Products

                               18,580,504  
      Insurance – 6.7%                           
  398,857    

Aspen Insurance Holdings Limited, (4)

    5.950%           BBB–        10,745,208  
  62,000    

Aspen Insurance Holdings Limited

    5.625%           BBB–        1,570,460  
  108,900    

Axis Capital Holdings Limited

    5.500%           BBB        2,758,437  
  61,100    

Delphi Financial Group, Inc., (3), (4)

    1.764%           BB+        1,298,375  
  325,100    

Kemper Corporation, (4)

    7.375%           Ba1        8,602,146  
  163,333    

Maiden Holdings NA Limited

    7.750%           BBB–        4,331,591  
  62,847    

Reinsurance Group of America Inc., (4)

    6.200%           BBB        1,762,858  
  239,900    

Reinsurance Group of America, Inc., (4)

    5.750%           BBB        6,669,220  
  74,800    

Torchmark Corporation

    6.125%                 BBB+        2,033,812  
 

Total Insurance

                               39,772,107  
      Oil, Gas & Consumable Fuels – 1.3%                           
  84,700    

Nustar Energy LP

    8.500%           Ba3        2,223,375  
  219,800    

Nustar Logistics Limited Partnership, (4)

    7.625%                 Ba2        5,521,376  
 

Total Oil, Gas & Consumable Fuels

                               7,744,751  
      Thrifts & Mortgage Finance – 2.3%                           
  103,981    

Federal Agricultural Mortgage Corporation

    6.875%           N/R        2,784,611  
  146,332    

Federal Agricultural Mortgage Corporation

    6.000%           N/R        3,987,547  
  240,100    

New York Community Bancorp Inc.

    6.375%                 Ba1        6,705,993  
 

Total Thrifts & Mortgage Finance

                               13,478,151  

 

NUVEEN     1  


JPI    Nuveen Preferred and Income Term Fund
   Portfolio of Investments (continued)    October 31, 2017 (Unaudited)

 

Shares     Description (1)   Coupon              Ratings (2)      Value  
      U.S. Agency – 4.1%                           
  222,100    

Farm Credit Bank of Texas, 144A, (3)

    6.750%                 Baa1      $ 24,431,000  
 

Total $25 Par (or similar) Retail Preferred (cost $183,216,899)

                               197,883,369  
Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CORPORATE BONDS – 0.3% (0.2% of Total Investments)

 

        
      Insurance – 0.3%                           
$ 1,685    

Security Benefit Life Insurance Company, 144A

    7.450%        10/01/33        BBB      $ 2,018,767  
$ 1,685    

Total Corporate Bonds (cost $1,995,391)

                               2,018,767  
Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

$1,000 PAR (OR SIMILAR) INSTITUTIONAL PREFERRED – 66.3% (48.4% of Total Investments)

 

  
      Automobiles – 0.7%                           
$ 4,025    

General Motors Financial Company Inc.

    5.750%        N/A (5)        BB+      $ 4,201,094  
      Banks – 24.8%                           
  6,870    

Bank of America Corporation

    6.500%        N/A (5)        BB+        7,857,562  
  6,550    

Bank of America Corporation

    6.300%        N/A (5)        BB+        7,462,284  
  4,000    

Barclays Bank PLC, 144A, (4)

    10.180%        6/12/21        A–        4,938,945  
  2,320    

Citigroup Inc.

    6.250%        N/A (5)        BB+        2,641,900  
  9,315    

Citigroup Inc.

    6.125%        N/A (5)        BB+        9,990,338  
  10,425    

Citigroup Inc.

    5.875%        N/A (5)        BB+        10,913,933  
  4,540    

Citizens Financial Group Inc.

    5.500%        N/A (5)        BB+        4,755,650  
  4,265    

Commerzbank AG, 144A

    8.125%        9/19/23        BBB        5,183,360  
  4,351    

HSBC Capital Funding LP, Debt, 144A

    10.176%        N/A (5)        BBB+        6,953,420  
  13,479    

JPMorgan Chase & Company

    6.750%        N/A (5)        BBB–        15,450,304  
  12,425    

JPMorgan Chase & Company

    5.300%        N/A (5)        BBB–        13,063,645  
  3,670    

KeyCorp Convertible Preferred Stock

    5.000%        N/A (5)        Baa3        3,830,563  
  3,000    

Lloyds Bank PLC, 144A

    12.000%        N/A (5)        BBB–        4,053,873  
  2,110    

M&T Bank Corporation

    6.450%        N/A (5)        Baa2        2,400,125  
  5,010    

M&T Bank Corporation

    5.125%        N/A (5)        Baa2        5,345,670  
  4,895    

PNC Financial Services

    5.000%        N/A (5)        Baa2        5,188,700  
  4,855    

PNC Financial Services Inc.

    6.750%        N/A (5)        Baa2        5,461,875  
  4,201    

Royal Bank of Scotland Group PLC

    7.648%        N/A (5)        Ba2        5,367,618  
  4,980    

SunTrust Bank Inc.

    5.050%        N/A (5)        Baa3        5,106,990  
  270    

US Bancorp

    5.125%        N/A (5)        A3        286,200  
  3,010    

Wachovia Capital Trust III

    5.570%        N/A (5)        BBB        3,021,288  
  4,131    

Wells Fargo & Company

    5.900%        N/A (5)        BBB        4,529,848  
  11,675    

Wells Fargo & Company

    5.875%        N/A (5)        BBB        13,052,650  
 

Total Banks

                               146,856,741  
      Capital Markets – 3.2%                           
  3,500    

Bank of New York Mellon, (4)

    4.950%        N/A (5)        Baa1        3,657,500  
  10,440    

Goldman Sachs Group Inc.

    5.375%        N/A (5)        Ba1        10,819,755  
  1,475    

Goldman Sachs Group Inc.

    5.300%        N/A (5)        Ba1        1,581,937  
  1,300    

Morgan Stanley

    5.550%        N/A (5)        BB+        1,365,000  
  1,355    

State Street Corporation

    5.250%        N/A (5)        Baa1        1,427,831  
 

Total Capital Market

                               18,852,023  
      Commercial Services & Supplies – 1.0%                           
  5,495    

AerCap Global Aviation Trust

    6.500%        6/15/45        BB        5,989,550  
      Consumer Finance – 3.1%                           
  3,635    

American Express Company

    5.200%        N/A (5)        Baa2        3,762,225  
  2,000    

American Express Company

    4.900%        N/A (5)        Baa2        2,052,500  
  7,600    

Capital One Financial Corporation

    5.550%        N/A (5)        Baa3        7,970,500  

 

  2     NUVEEN


Principal
Amount (000)/
Shares
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
      Consumer Finance (continued)                           
$ 4,465    

Discover Financial Services

    5.500%        N/A (5)        BB–      $ 4,554,300  
 

Total Consumer Finance

                               18,339,525  
      Diversified Financial Services – 6.3%                           
  5,875    

BNP Paribas, 144A

    7.195%        N/A (5)        BBB        6,855,420  
  15,700    

Compeer Financial, ACA

    6.750%        N/A (5)        BB        16,784,281  
  2,500    

Depository Trust & Clearing Corporation

    4.875%        N/A (5)        A        2,593,750  
  7,833    

Rabobank Nederland, 144A

    11.000%        N/A (5)        Baa2        8,889,887  
  2,052    

Voya Financial Inc., (4)

    5.650%        5/15/53        Baa3        2,166,502  
 

Total Diversified Financial Services

                               37,289,840  
      Electric Utilities – 2.4%                           
  2,370    

Electricite de France, 144A

    5.250%        N/A (5)        BBB        2,467,762  
  10,525    

Emera, Inc., (4)

    6.750%        6/15/76        BBB–        12,037,969  
 

Total Electric Utilities

                               14,505,731  
      Equity Real Estate Investment Trusts – 2.6%                       
  12,298    

Sovereign Real Estate Investment Trust, 144A

    12.000%        N/A (5)        Ba1        15,372,500  
      Food Products – 3.2%                           
  2,360    

Dairy Farmers of America Inc., 144A

    7.125%        N/A (5)        Baa3        2,634,350  
  1,410    

Land O’ Lakes Capital Trust I, 144A, (4)

    7.450%        3/15/28        Ba1        1,649,700  
  10,170    

Land O’ Lakes Incorporated, 144A

    8.000%        N/A (5)        BB        11,288,700  
  3,370    

Land O’ Lakes Incorporated, 144A

    7.250%        N/A (5)        BB        3,639,600  
 

Total Food Products

                               19,212,350  
      Industrial Conglomerates – 3.7%                           
  21,047    

General Electric Capital Corporation

    5.000%        N/A (5)        A        21,908,454  
      Insurance – 13.9%                           
  27,000    

Financial Security Assurance Holdings, 144A, (4)

    6.400%        12/15/66        BBB+        26,460,000  
  2,299    

La Mondiale SAM, Reg S

    7.625%        N/A (5)        BBB        2,447,860  
  4,770    

MetLife Inc., 144A

    9.250%        4/08/38        BBB        7,089,412  
  3,655    

MetLife Inc.

    5.250%        N/A (5)        BBB        3,822,618  
  7,703    

Provident Financing Trust I, (4)

    7.405%        3/15/38        Baa3        8,819,935  
  3,325    

Prudential Financial Inc., (4)

    5.875%        9/15/42        BBB+        3,667,475  
  11,260    

QBE Insurance Group Limited, 144A, (4)

    7.500%        11/24/43        Baa2        13,027,820  
  2,335    

QBE Insurance Group Limited, Reg S

    6.750%        12/02/44        BBB        2,647,306  
  14,226    

Symetra Financial Corporation, 144A, (LIBOR reference rate + 4.177% spread), (11)

    5.530%        10/15/37        Baa2        14,297,130  
 

Total Insurance

                               82,279,556  
      Metals & Mining – 0.8%                           
  4,370    

BHP Billiton Finance USA Limited, 144A

    6.250%        10/19/75        A–        4,785,150  
      U.S. Agency – 0.1%                           
  752    

Farm Credit Bank of Texas, 144A

    10.000%        N/A (5)        Baa1        917,440  
      Wireless Telecommunication Services – 0.5%                       
  3,145    

Viacom Inc.

    5.875%        2/28/57        Ba1        3,114,336  
 

Total $1,000 Par (or similar) Institutional Preferred (cost $363,653,381)

                               393,624,290  

 

NUVEEN     3  


JPI    Nuveen Preferred and Income Term Fund
   Portfolio of Investments (continued)    October 31, 2017 (Unaudited)

 

Principal
Amount (000)
    Description (1)   Coupon      Maturity      Ratings (2)      Value  
 

CONTINGENT CAPITAL SECURITIES – 36.2% (26.4% of Total Investments) (6)

 

     
      Banks – 28.8%                           
$ 2,450    

Australia and New Zealand Banking Group Limited of the United Kingdom, 144A

    6.750%        N/A (5)        Baa2      $ 2,814,805  
  2,600    

Banco Bilbao Vizcaya Argentaria S.A, Reg S

    9.000%        N/A (5)        BB        2,688,712  
  1,110    

Banco Mercantil del Norte, 144A

    7.625%        N/A (5)        BB        1,205,737  
  1,200    

Banco Santander SA, Reg S

    6.375%        N/A (5)        Ba1        1,248,000  
  12,580    

Barclays PLC

    8.250%        N/A (5)        BB+        13,371,534  
  4,745    

Barclays PLC, Reg S

    7.875%        N/A (5)        BB+        5,291,263  
  8,684    

Credit Agricole SA, 144A

    8.125%        N/A (5)        BBB–        10,452,705  
  4,305    

Credit Agricole SA, 144A

    7.875%        N/A (5)        BBB–        4,902,319  
  4,250    

Credit Agricole, S.A, 144A

    6.625%        N/A (5)        BBB–        4,467,812  
  3,790    

HSBC Holdings PLC

    6.875%        N/A (5)        BBB        4,173,738  
  1,500    

HSBC Holdings PLC

    6.000%        N/A (5)        BBB        1,593,750  
  1,000    

ING Groep N.V., Reg S

    6.875%        N/A (5)        BBB–        1,114,432  
  5,390    

ING Groep N.V.

    6.500%        N/A (5)        BBB–        5,916,064  
  20,000    

Intesa Sanpaolo SpA, 144A

    7.700%        N/A (5)        BB–        21,850,000  
  22,045    

Lloyds Banking Group PLC

    7.500%        N/A (5)        BB+        25,158,856  
  4,390    

Nordea Bank AB, 144A

    6.125%        N/A (5)        BBB        4,790,587  
  5,360    

Royal Bank of Scotland Group PLC

    8.625%        N/A (5)        Ba3        6,069,664  
  6,000    

Royal Bank of Scotland Group PLC

    8.000%        N/A (5)        Ba3        6,859,200  
  5,555    

Royal Bank of Scotland Group PLC

    7.500%        N/A (5)        Ba3        5,952,183  
  7,913    

Societe Generale, 144A

    7.875%        N/A (5)        BB+        8,971,364  
  7,215    

Societe Generale, 144A

    7.375%        N/A (5)        BB+        7,972,575  
  2,530    

Standard Chartered PLC, 144A

    7.500%        N/A (5)        Ba1        2,775,284  
  2,240    

Standard Chartered PLC, 144A

    6.500%        N/A (5)        Ba1        2,329,600  
  13,008    

UniCredit SpA, Reg S

    8.000%        N/A (5)        B+        14,399,544  
  4,210    

Westpac Banking Corp.

    5.000%        N/A (5)        Baa2        4,229,854  
  154,070    

Total Banks

                               170,599,582  
      Capital Markets – 5.9%                           
  11,007    

Credit Suisse Group AG, 144A

    7.500%        N/A (5)        BB        12,795,637  
  1,400    

Credit Suisse Group AG, Reg S

    7.125%        N/A (5)        Ba2        1,533,000  
  4,500    

Macquarie Bank Limited, 144A

    6.125%        N/A (5)        Ba1        4,719,375  
  3,762    

UBS Group AG, Reg S

    7.125%        N/A (5)        BBB–        4,053,555  
  10,635    

UBS Group AG, Reg S

    7.000%        N/A (5)        BBB–        12,184,371  
  31,304    

Total Capital Markets

                               35,285,938  
      Diversified Financial Services – 1.5%                           
  3,360    

BNP Paribas, 144A

    7.625%        N/A (5)        BBB–        3,767,400  
  4,330    

BNP Paribas, 144A

    7.375%        N/A (5)        BBB–        5,001,150  
  7,690    

Total Diversified Financial Services

                               8,768,550  
$ 193,064    

Total Contingent Capital Securities (cost $199,297,123)

                               214,654,070  
 

Total Long-Term Investments (cost $748,162,794)

                               808,180,496  
Principal
Amount (000)
    Description (1)   Coupon      Maturity              Value  
      SHORT-TERM INVESTMENTS – 1.0% (0.7% of Total Investments)                
      REPURCHASE AGREEMENTS – 1.0% (0.7% of Total Investments)                
$ 5,718    

Repurchase Agreement with Fixed Income Clearing Corporation dated 10/31/17, repurchase price $5,717,823,
collateralized by $5,835,000 U.S. Treasury Notes,
2.125%, due 5/15/17, value $5,836,797

    0.120%        11/01/17               $ 5,717,804  
 

Total Short-Term Investments (cost $5,717,804)

 

                       5,717,804  
 

Total Investments (cost $753,880,598) – 137.2%

 

                       813,898,300  
 

Borrowings – (37.9)% (7), (8)

                               (225,000,000
 

Other Assets Less Liabilities – 0.7% (9)

                               4,348,882  
 

Net Assets Applicable to Common Shares – 100%

 

                     $ 593,247,182  

 

  4     NUVEEN


Investments in Derivatives as of October 31, 2017

Interest Rate Swaps — OTC Uncleared

 

Counterparty   Notional
Amount
    Fund
Pay/Receive
Floating Rate
    Floating Rate Index     Fixed Rate
(Annualized)
    Fixed Rate
Payment
Frequency
    Effective
Date (10)
    Optional
Termination
Date
    Maturity
Date
    Value     Premiums
Paid
(Received)
    Unrealized
Appreciation
(Depreciation)
 

JPMorgan Chase Bank, N.A.

  $ 84,375,000       Receive       1-Month LIBOR       1.735     Monthly       12/01/17       12/01/18       12/01/20     $ (309,464   $ 1,646,888     $ (1,956,352

Morgan Stanley Capital Services, LLC

    112,000,000       Receive       1-Month LIBOR       1.928       Monthly       6/01/18       3/01/23       3/01/24       305,647             305,647  

Total

  $ 196,375,000                                                             $ (3,817   $ 1,646,888     $ (1,650,705

Fair Value Measurements

Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.

 

Level 1 –   Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
Level 2 –   Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 –   Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Fund’s fair value measurements as of the end of the reporting period:

 

      Level 1      Level 2      Level 3      Total  

Long-Term Investments:

           

$25 Par (or similar) Retail Preferred

   $ 133,037,337      $ 64,846,032      $       —      $ 197,883,369  

Corporate Bonds

            2,018,767               2,018,767  

$1,000 Par (or similar) Institutional Preferred

            393,624,290               393,624,290  

Contingent Capital Securities

            214,654,070               214,654,070  

Short-Term Investments:

           

Repurchase Agreements

            5,717,804               5,717,804  

Investments in Derivatives:

           

Interest Rate Swaps*

            (1,650,705             (1,650,705

Total

   $ 133,037,337      $ 679,210,258      $      $ 812,247,595  
* Represents net unrealized appreciation (depreciation).

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to recognition of premium amortization, timing differences in the recognition of income on real estate investment trust (“REIT”) investments and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.

 

NUVEEN     5  


JPI    Nuveen Preferred and Income Term Fund
   Portfolio of Investments (continued)    October 31, 2017 (Unaudited)

 

The tables below present below present the cost and unrealized appreciation (depreciation) of the Fund’s investment portfolio, as determined on a federal income tax basis, as of October 31, 2017.

For purposes of this disclosure, derivative tax cost is generally the sum of any upfront fees or premiums exchanged and any amounts unrealized for income statement reporting but realized in income and/or capital gains for tax reporting. If a particular derivative category does not disclose any tax unrealized appreciation or depreciation, the change in value of those derivatives have generally been fully realized for tax purposes.

 

Tax cost of investments

     $ 753,102,180  

Gross unrealized:

    

Appreciation

     $ 61,555,200  

Depreciation

       (759,080

Net unrealized appreciation (depreciation) of investments

     $ 60,796,120  
    

Tax cost of swaps

     $ 1,646,888  

Net unrealized appreciation (depreciation) of swaps

     $ (1,650,705

For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

 

(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted.

 

(2) For financial reporting purposes, the ratings disclosed are the highest of Standard & Poor’s Group (“Standard & Poor’s”), Moody’s Investors Service, Inc. (“Moody’s”) or Fitch, Inc. (“Fitch”) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poor’s, Baa by Moody’s or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies.

 

(3) For fair value measurement disclosure purposes, investment classified as Level 2.

 

(4) Investment, or portion of investment, is hypothecated. The total value of investments hypothecated as of the end of the reporting period was $163,152,641.

 

(5) Perpetual security. Maturity date is not applicable.

 

(6) Contingent Capital Securities (“CoCos”) are hybrid securities with loss absorption characteristics built into the terms of the security for the benefit of the issuer. For example, the terms may specify an automatic write-down of principal or a mandatory conversion into the issuer’s common stock under certain adverse circumstances, such as the issuer’s capital ratio falling below a specified level.

 

(7) The Fund may pledge up to 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for borrowings. As of the end of the reporting period, investments with a value of $523,002,875 have been pledged as collateral for borrowings.

 

(8) Borrowings as a percentage of Total Investments is 27.6%.

 

(9) Other assets less liabilities includes the unrealized appreciation (depreciation) of certain over-the-counter (“OTC”) derivatives as well as the OTC cleared and exchange-traded derivatives, when applicable.

 

(10) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each contract.

 

(11) Variable rate security. The rate shown is the coupon as of the end of the reporting period.

 

144A Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers.

 

Reg S Regulation S allows U.S. companies to sell securities to persons or entities located outside of the United States without registering those securities with the Securities and Exchange Commission. Specifically, Regulation S provides a safe harbor from the registration requirements of the Securities Act for the offers and sales of securities by both foreign and domestic issuers that are made outside the United States.

 

LIBOR London Inter-Bank Offered Rate

 

REIT Real Estate Investment Trust

 

  6     NUVEEN


Item 2. Controls and Procedures.

 

  a. The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

  b. There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant)    Nuveen Preferred and Income Term Fund   
By (Signature and Title)    /s/ Gifford R. Zimmerman                                                        
  

Gifford R. Zimmerman

  
   Vice President and Secretary   

Date: December 29, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)    /s/ Cedric H. Antosiewicz                                                        
  

Cedric H. Antosiewicz

  
   Chief Administrative Officer (principal executive officer)   
Date: December 29, 2017      
By (Signature and Title)    /s/ Stephen D. Foy                                                                    
   Stephen D. Foy   
   Vice President and Controller (principal financial officer)   
Date: December 29, 2017