UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22779
Nuveen Intermediate Duration Quality Municipal Term Fund
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Mark L. Winget
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
(Name and address of agent for service)
Registrant’s telephone number, including area
code: (312) 917-7700
Date of fiscal year end: May 31
Date of reporting period: May 31,
2023
Form N-CSR is to be used by management investment companies to file reports
with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to
stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided
on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not required to respond to the collection of information contained
in Form N-CSR 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 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. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
| |
Closed-End |
May 31 |
| |
Fund |
2023 |
Nuveen Municipal
Closed-End Funds
NIQ Nuveen Intermediate Duration Quality Municipal Term
Fund
Annual
Report
Table of Contents
| Chair’s Letter to Shareholders |
3 |
| Important Notices |
4 |
| Portfolio Managers’ Comments |
5 |
| Fund Leverage |
8 |
| Common Share Information |
9 |
| About the Fund's Benchmarks |
11 |
| Performance Overview and Holding Summaries |
12 |
| Shareholder Meeting Report |
14 |
| Report of Independent Registered Public Accounting Firm |
15 |
| Portfolio of Investments |
16 |
| Statement of Assets and Liabilities |
23 |
| Statement of Operations |
24 |
| Statement of Changes in Net Assets |
25 |
| Statement of Cash Flows |
26 |
| Financial Highlights |
28 |
| Notes to Financial Statements |
31 |
| Shareholder Update |
42 |
| Important Tax Information |
43 |
| Additional Fund Information |
44 |
| Glossary of Terms Used in this Report |
45 |
| Board Members & Officers |
47 |
2
Chair’s Letter
to Shareholders
Dear Shareholders,
The significant measures taken by the U.S. Federal Reserve (Fed)
and other global central banks since 2022 to contain inflation have begun to take effect. From March 2022 to May 2023, the Fed raised
the target fed funds rate by 5.00% to a range of 5.00% to 5.25%, then left the rate unchanged in June 2023, marking the fastest interest
rate hiking cycle in its history. Inflation rates in the U.S. and across most of the world have fallen from their post-pandemic highs
but currently remain well above the levels that central banks consider supportive of their economies’ long-term growth.
At the same time, the U.S. and other large economies have remained
relatively resilient, even as financial conditions have tightened. Despite contracting in the first half of 2022, U.S. gross domestic
product grew 2.1% in 2022 overall compared to 2021 and expanded at a moderate pace of 2.0% in the first quarter of 2023. A relatively
strong jobs market has helped support consumer sentiment and spending despite historically high inflation. Markets are concerned that
these conditions could keep upward pressure on prices and wages, although the collapse of three regional U.S. banks (Silicon Valley Bank,
Signature Bank and First Republic Bank) and major European bank Credit Suisse in March 2023 is likely to add further downward pressure
to the economy as the banking system slows lending in response.
Fed officials are closely monitoring inflation data and other economic
measures to modify their rate setting activity based upon these factors on a meeting-by-meeting basis, including pausing rate adjustments
at the most recent meeting in June 2023 to assess the effects of monetary policy so far on the economy. While uncertainty has increased
given the unpredictable outcome of tighter credit conditions on the economy, the Fed remains committed to acting until it sees sustainable
progress toward its inflation goals. Additionally, market concerns surrounding the U.S. debt ceiling faded after the government agreed
in June 2023 to suspend the nation’s borrowing limit until January 2025, averting a near-term default scenario. In the meantime,
markets are likely to continue reacting in the short term to news about inflation data, economic indicators and central bank policy. We
encourage investors to keep a long-term perspective amid the short-term turbulence. Your financial professional can help you review how
well your portfolio is aligned with your time horizon, risk tolerance and investment goals.
On behalf of the other members of the Nuveen Fund Board, we look
forward to continuing to earn your trust in the months and years ahead.
Sincerely,
Terence
J. Toth
Chair of the Board
July 21, 2023
3
Important Notices
For Shareholders of
Nuveen Intermediate Duration Quality Municipal Term Fund (NIQ)
Termination and Liquidation
Nuveen Intermediate Duration Quality Municipal Term Fund (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.
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 |
| 1 Calculated as of the close of business on June 30, 2023. |
|
Important Information About the Liquidating Trust
Holders of liquidating trust units may obtain a copy of the Trust
Instrument governing the liquidating trust and periodic reports of the liquidating trust on www.nuveen.com/NIQ. The liquidating trust
intends to disclose its net asset value per unit and the positions held in the trust each calendar month. Additional information, including
dispositions and expenses, will be provided annually.
Unit holders will not have rights to sell, transfer or otherwise
dispose of or in any way encumber their liquidating trust units other than pursuant to a transfer by operation of law (e.g., upon the
death of the shareholder or as required by law or an order of a court of competent jurisdiction). The liquidating trust units will not
be offered to the public or traded on an exchange. The liquidating trust exists solely for the purpose of liquidating the securities transferred
to it and distributing the proceeds from disposition of, and income from, those securities to the trust’s unit holders (i.e., former
fund shareholders). The trustee of the liquidating trust, Nuveen Fund Advisors, LLC, will make regular efforts to dispose of the securities
of ENGH held in the trust and to make timely distributions to the trust’s unit holders. Because of Nuveen’s effective status
as a substantial minority owner of ENGH and other rights, and the consequent limitations on its ability to sell the liquidating trust’s
ENGH securities, it is not presently possible to predict when the liquidating trust will be able to liquidate its ENGH holdings and make
a final cash distribution to its unit holders.
The trust will not charge any management fees but may incur reasonable
expenses in connection with its operation. The liquidating trust is not expected to issue tax reporting on Form 1099 like NIQ but instead
will follow trust reporting tax conventions and is expected to issue tax statements annually. The trust will be treated as a grantor trust
for federal income tax purposes.
4
Portfolio Managers’ Comments
Nuveen Intermediate Duration Quality Municipal Term Fund (NIQ)
The Fund features portfolio management by Nuveen Asset Management,
LLC (NAM), an affiliate of Nuveen Fund Advisors, LLC, the Funds’ investment adviser. Portfolio Manager Daniel J. Close, CFA, manages
the Nuveen Intermediate Duration Quality Municipal Term Fund (NIQ).
Effective June 30, 2023, following the close of business, the
Nuveen Intermediate Duration Quality Municipal Term Fund completed its termination and liquidation.
Here the Fund’s portfolio manager reviews U.S. economic
and municipal market conditions, key investment strategies and the performance of the Fund for the twelve-month reporting period ended
May 31, 2023. For more information on the Fund’s investment objectives and policies, please refer to the Shareholder Update section
at the end of the report.
What factors affected the U.S. economy and the municipal bond
market during the twelve-month annual reporting period ended May 31, 2023?
U.S. economic growth continued to moderate amid high inflation
and tightening financial conditions during the twelve-month period ended May 31, 2023. In the first quarter of 2023, the economy expanded
at an annualized rate of 2%, according to the U.S. Bureau of Economic Analysis, compared to 2.1% in 2022 overall. At the start of the
reporting period, inflation rose sharply because of supply chain disruptions and high food and energy prices related to the pandemic,
the Russia-Ukraine war and China’s zero-COVID restrictions (eventually lifted in December 2022). Inflation during the reporting
period reached its peak level in the U.S. in June 2022. Since then, price pressures have eased given normalization in supply chains, falling
energy prices and aggressive measures by the U.S. Federal Reserve (Fed) and other global central banks to tighten financial conditions
and slow demand in their economies. Nevertheless, inflation levels remained much higher than central banks’ target levels.
This material is not intended to be a recommendation or investment
advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy and is not provided in a fiduciary
capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or
suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and
in consultation with his or her advisors.
Certain statements in this report are forward-looking statements.
Discussions of specific investments are for illustration only and are not intended as recommendations of individual investments. The forward-looking
statements and other views expressed herein are those of the portfolio manager as of the date of this report. Actual future results or
occurrences may differ significantly from those anticipated in any forward-looking statements, and the views expressed herein are subject
to change at any time, due to numerous market and other factors. The Fund disclaims any obligation to update publicly or revise any forward-looking
statements or views expressed herein.
For financial reporting purposes, the ratings disclosed are
the highest rating given by one of the following national rating agencies: Standard & Poor’s Group (S&P), Moody’s
Investors Service, Inc. (Moody’s) or Fitch, Inc. (Fitch). This treatment of split-rated securities may differ from that used for
other purposes, such as for Fund investment policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings,
while BB, B, CCC, CC, C and D are below investment grade ratings. Holdings designated N/R are not rated by these national rating agencies.
Bond insurance guarantees only the payment of principal and
interest on the bond when due, and not the value of the bonds themselves, which will fluctuate with the bond market and the financial
success of the issuer and the insurer. Insurance relates specifically to the bonds in the portfolio and not to the share prices of a Fund.
No representation is made as to the insurers’ ability to meet their commitments.
Refer to the Glossary of Terms Used in this Report for further
definition of the terms used within this section.
5
Portfolio Managers’ Comments (continued)
The Fed raised its target fed funds rate eight times during the
reporting period, bringing it to a range of 5.00% to 5.25% as of May 2023. At the June 2023 meeting (subsequent to the close of this reporting
period), the Fed opted to leave rates unchanged. One of the Fed’s rate increases occurred in March 2023, a decision that was closely
watched because of the failure of Silicon Valley Bank and Signature Bank during the same month and uncertainty around the economic impact
of these failures. Additionally, in March 2023, Swiss bank UBS agreed to buy Credit Suisse, which was considered to be vulnerable in the
current environment. For much of the reporting period, the Fed’s activity led to significant volatility in bond and stock markets.
In addition, it contributed to an increase in the U.S. dollar’s value relative to major world currencies, which acts as a headwind
to the profits of international companies and U.S. domestic companies with overseas earnings. Global currency and bond markets were further
roiled in September 2022 by an unpopular fiscal spending proposal in the U.K. but recovered after the plans were abandoned.
During the reporting period, elevated inflation and higher borrowing
costs weighed on some segments of the economy, including the real estate market. Consumer spending, however, has remained more resilient
than expected, in part because of a still-strong labor market, another key gauge of the economy’s health. By July 2022, the economy
had recovered the 22 million jobs lost since the beginning of the pandemic. As of May 2023, the unemployment rate remained near its pre-pandemic
low of 3.7%, although monthly job growth appeared to be slowing. The strong labor market and wage gains helped provide a measure of resilience
to the U.S. economy during the reporting period, even as the Fed sought to soften job growth to help curb inflation pressures.
The broad municipal bond market was impacted by interest rate volatility
and economic uncertainty during the reporting period. Municipal yields rose across the maturity spectrum, but the move was uneven. The
greatest increase in yields was at the shorter end of the curve as markets priced in a more aggressive pace of monetary tightening to
combat persistently high inflation. Yields at the long end of the municipal curve also rose significantly, but intermediate and intermediate-long
maturities saw relatively smaller yield increases. Overall, shorter maturities generally outperformed longer maturities during the reporting
period. In response to the rising interest rate environment and heightened market volatility, dealers reduced their inventories and investors
increased redemptions from traditional municipal bond mutual funds, particularly in the first half of the reporting period. Fund flows
have stabilized and began to improve in 2023. For much of the reporting period, credit spreads were generally stable given relatively
strong municipal fundamentals, although there was some widening as the market sell-off continued.
Nuveen Intermediate Duration Quality Municipal Term Fund (NIQ)
What key strategies were used to manage the Fund during the
twelve-month reporting period ended May 31, 2023?
The Fund’s primary investment objective was to provide current
income exempt from regular federal income tax. The Fund’s secondary investment objective was to seek additional total return. NIQ
had a 10-year term and liquidated, as planned, on June 30, 2023 (subsequent to the close of this reporting period), distributing its then-current
net assets to shareholders. The Fund used leverage. Leverage is discussed in more detail later in the Fund Leverage section of this report.
During the reporting period, the Fund’s trading activity
remained focused on pursuing its investment objectives. The rising yield environment during this reporting period was favorable for the
portfolio management team to reset embedded yields higher in the Fund’s portfolio, including by engaging in tax-loss swap opportunities.
This strategy involves selling depreciated bonds with lower embedded yields to reinvest in similarly structured, higher income-producing
bonds to support the Fund’s income earnings and capture tax efficiencies.
Additionally, the portfolio management team sold lower book yield
positions to help reduce structural leverage in early October, and also collapsed tender option bond structures. The portfolio management
team sought to maintain the overall characteristics of the Fund and stay fully invested by reinvesting the proceeds of called and maturing
bonds into 4% and 5% coupon structures in the intermediate duration range. In advance of the term date, the orderly liquidation of the
Fund began in June 2023. Following the liquidation, the Fund held 100% in cash except for the securities of Energy Harbor (ENGH), which
were transferred to a liquidating trust intended to facilitate the orderly disposition of those assets.
6
How did the Fund perform during the twelve-month reporting period
ended May 31, 2023?
For the twelve months ended May 31, 2023, NIQ underperformed the
S&P Municipal Bond Intermediate Index. For the purposes of this Performance Commentary, the references to relative performance of
NIQ are in comparison to the S&P Municipal Bond Intermediate Index.
The Fund’s use of leverage through preferred shares and inverse
floating rate securities detracted from relative performance during the reporting period. Sector allocation also detracted from relative
performance, driven by an overweight to the other utility sector and an allocation to the transportation sector.
Partially offsetting these detractors was the Fund’s duration
positioning, particularly an overweight to zero to two-year duration structures. Positive contributions also came from some of the Fund's
longer duration exposures, which were beneficial to relative performance. In addition, the Fund’s underweight to AAA rated bonds
was advantageous to relative performance.
7
Fund Leverage
IMPACT OF THE FUND’S LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of the Fund's common
shares relative to their comparative benchmarks was the Fund's use of leverage through its issuance of preferred shares and/or investments
in inverse floating rate securities, which represent leveraged investments in underlying bonds. The Fund uses leverage because our research
has shown that, over time, leveraging provides opportunities for additional income. The opportunity arises when short-term rates that
the Fund pays on its leveraging instruments are lower than the interest the Fund earns on its portfolio of long-term bonds that it has
bought with the proceeds of that leverage.
However, use of leverage can expose Fund common shares to additional
price volatility. When a Fund uses leverage, the Fund’s common shares will experience a greater increase in their net asset value
if the municipal bonds acquired through the use of leverage increase in value, but will also experience a correspondingly larger decline
in their net asset value if the bonds acquired through leverage decline in value. All this will make the shares’ total return performance
more variable over time.
In addition, common share income in levered funds will typically
decrease in comparison to unlevered funds when short-term interest rates increase and increase when short-term interest rates decrease.
In recent quarters, fund leverage expenses have generally tracked the overall movement of short-term tax-exempt interest rates. While
fund leverage expenses are somewhat higher than their recent lows, leverage nevertheless continues to provide the opportunity for incremental
common share income, particularly over longer-term periods.
The Fund's use of leverage detracted from relative performance
over this reporting period.
As of May 31, 2023, the Fund's percentages of leverage are as shown
in the accompanying table.
| |
|
| Effective Leverage* |
6.45% |
| Regulatory Leverage* |
0.00% |
| * | | Effective Leverage is a Fund’s effective economic leverage, and includes both regulatory
leverage and the leverage effects of certain derivative and other investments in a Fund’s portfolio that increase the Fund’s
investment exposure. Currently, the leverage effects of Tender Option Bond (TOB) inverse floater holdings are included in effective leverage
values, in addition to any regulatory leverage. Regulatory leverage consists of preferred shares issued or borrowings of a Fund. Both
of these are part of a Fund’s capital structure. A Fund, however, may from time to time borrow on a typically transient basis in
connection with its day-to-day operations, primarily in connection with the need to settle portfolio trades. Such incidental borrowings
are excluded from the calculation of a Fund’s effective leverage ratio. Regulatory leverage is subject to asset coverage limits
set forth in the Investment Company Act of 1940. |
8
Common Share Information
COMMON SHARE DISTRIBUTION INFORMATION
The following information regarding the Fund's distributions
is current as of May 31, 2023. The Fund's distribution levels may vary over time based on the Fund's investment activity and
portfolio investments value changes.
During the current reporting period, the Fund's distributions to
common shareholders were as shown in the accompanying table.
| |
|
| |
Per Common |
| Month Distributions (Ex-Dividend Date) |
Share Amounts |
| June |
$0.0385 |
| July |
0.0350 |
| August |
0.0350 |
| September |
0.0350 |
| October |
0.0295 |
| November |
0.0295 |
| December |
0.0295 |
| January |
0.0295 |
| February |
0.0295 |
| March |
0.0295 |
| April |
0.0335 |
| May |
0.0335 |
| Total Distributions from Net Investment Income |
$0.3875 |
| Yields |
|
| Market Yield* |
3.19% |
| Taxable-Equivalent Yield* |
5.39% |
| * | | Market Yield is based on the Fund’s current annualized monthly dividend divided by
the Fund’s current market price as of the end of the reporting period. Taxable-Equivalent Yield represents the yield that must
be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on an income tax rate
of 40.8%. Your actual federal income tax rate may differ from the assumed rate. The Taxable-Equivalent Yield also takes into account
the percentage of the Fund’s income generated and paid by the Fund (based on payments made during the previous calendar year) that
was not exempt from federal income tax. Separately, if the comparison were instead to investments that generate qualified dividend income,
which is taxable at a rate lower than an individual’s ordinary graduated tax rate, the fund’s Taxable-Equivalent Yield would
be lower. |
The Fund seeks to pay regular monthly dividends out of its net
investment income at a rate that reflects its past and projected net income performance. To permit the Fund to maintain a more stable
monthly dividend, the Fund may pay dividends at a rate that may be more or less than the amount of net income actually earned by the Fund
during the period. Distributions to common shareholders are determined on a tax basis, which may differ from amounts recorded in the accounting
records. In instances where the monthly dividend exceeds the earned net investment income, the Fund would report a negative undistributed
net ordinary income. Refer to the Notes to Financial Statements for additional information regarding the amounts of undistributed net
ordinary income and undistributed net long-term capital gains and the character of the actual distributions paid by the Fund during the
period.
All monthly dividends paid by the Fund during the current
reporting period were paid from net investment income. If a portion of the Fund’s monthly distributions is sourced from or
comprised of elements other than net investment income, including capital gains
9
Common Share Information (continued)
and/or a return of capital, shareholders will be notified of those
sources. For financial reporting purposes, per share amounts of each Fund’s distributions for the reporting period are presented
in this report’s Financial Highlights. For income tax purposes, distribution information for the Fund as of its most recent tax
year end is presented in the Notes to Financial Statements of this report.
NUVEEN CLOSED-END FUND DISTRIBUTION AMOUNTS
The Nuveen Closed-End Funds’ monthly and quarterly periodic
distributions to shareholders are posted on www.nuveen.com and can be found on Nuveen’s enhanced closed-end fund resource page,
which is at https://www.nuveen.com/resource-center-closed-end-funds, along with other Nuveen closed-end fund product updates. To ensure
timely access to the latest information, shareholders may use a subscribe function, which can be activated at this web page (https://www.nuveen.com/subscriptions).
COMMON SHARE REPURCHASES
During August 2022, the Fund's Board of Trustees reauthorized
an open-market common share repurchase program, allowing the Fund to repurchase an aggregate of up to approximately 10% of its
outstanding common shares.
During the current reporting period, the Fund did not repurchase
any of their outstanding common shares. As of May 31, 2023, (and since the inception of the Fund's repurchase programs), the Fund has
cumulatively repurchased and retired its outstanding common shares as shown in the accompanying table.
| |
|
| Common shares cumulatively repurchased and retired |
0 |
| Common shares authorized for repurchase |
1,305,000 |
| OTHER COMMON SHARE INFORMATION |
|
As of May 31, 2023, the Fund's common share prices were
trading at a premium/(discount) to its common share NAV, and trading at an average premium/(discount) to NAV during the current
reporting period, as follows:
| |
|
| Common share NAV |
$12.96 |
| Common share price |
$12.60 |
| Premium/(Discount) to NAV |
(2.77)% |
| Average premium/(discount) to NAV |
(2.83)% |
10
About the Fund’s Benchmarks
S&P Municipal Bond Intermediate Index: An index containing
bonds in the S&P Municipal Bond Index that mature between 3 and 15 years. Index returns assume reinvestment of distributions, but
do not reflect any applicable sales charges or management fees.
11
| |
|
| NIQ |
Nuveen Intermediate Duration Quality |
| |
Municipal Term Fund |
| |
Performance Overview and Holding Summaries as of |
| |
May 31, 2023 |
Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this section.
Fund Performance*
| |
Average Annual |
| |
1-Year |
5-Year |
10-Year |
| NIQ at Common Share NAV |
(0.73)% |
1.93% |
2.64% |
| NIQ at Common Share Price |
(1.16)% |
3.26% |
3.35% |
| S&P Municipal Bond Intermediate Index |
1.05% |
1.82% |
2.23% |
| * | | For purposes of Fund performance, relative results are measured against the S&P Municipal
Bond Intermediate Index. |
Performance data shown represents past performance and does not
predict or guarantee future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction
of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. Returns at NAV are net of Fund expenses,
and assume reinvestment of distributions. Comparative index return information is provided for the Fund’s shares at NAV only. Indexes
are not available for direct investment.
Daily Common Share NAV and Share Price
Growth of an Assumed $10,000 Investment as of May 31, 2023 -
Common Share Price
12
This data relates to the securities held in the Fund’s
portfolio of investments as of the end of the reporting period. It should not be construed as a measure of performance for the Fund itself.
Holdings are subject to change.
For financial reporting purposes, the ratings disclosed are the
highest rating given by one of the following national rating agencies: Standard & Poor’s Group, Moody’s Investors Service,
Inc. or Fitch, Inc. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment
policies. Credit ratings are subject to change. AAA, AA, A and BBB are investment grade ratings; BB, B, CCC, CC, C and D are below-investment
grade ratings. Holdings designated N/R are not rated by these national rating agencies.
| Fund Allocation |
|
| (% of net assets) |
|
| Long-Term Municipal Bonds |
92.2% |
| Common Stocks |
4.4% |
| Other Assets Less Liabilities |
3.4% |
| Net Assets |
100% |
| Portfolio Credit Quality |
|
| (% of total investment exposure) |
|
| U.S. Guaranteed |
0.9% |
| AAA |
3.3% |
| AA |
40.6% |
| A |
24.0% |
| BBB |
19.3% |
| BB or Lower |
3.7% |
| N/R (not rated) |
4.0% |
| N/A (not applicable) |
4.2% |
| Total |
100% |
| Portfolio Composition |
|
| (% of total investments) |
|
| Utilities |
25.8% |
| Tax Obligation/Limited |
17.4% |
| Transportation |
15.1% |
| Health Care |
11.4% |
| Tax Obligation/General |
9.0% |
| Education and Civic Organizations |
8.9% |
| Other |
7.9% |
| Common Stock |
4.5% |
| Total |
100% |
| State and Territories1 |
|
| (as a % of total municipal bonds) |
|
| Colorado |
12.7% |
| Tennessee |
9.7% |
| Illinois |
8.4% |
| Michigan |
7.8% |
| New York |
7.6% |
| California |
6.8% |
| Kentucky |
5.4% |
| Georgia |
5.3% |
| Florida |
4.4% |
| District Of Columbia |
3.8% |
| Ohio |
3.3% |
| Texas |
2.8% |
| Maine |
2.7% |
| New Jersey |
2.3% |
| Other |
17.0% |
| Total |
100% |
1 See the Portfolio of Investments for the remaining
states comprising “Other” and not listed in the table above.
13
Shareholder Meeting Report
The annual meeting of shareholders was held on May 8, 2023 for NIQ; at this meeting the shareholders were asked to elect Board members.
| |
NIQ |
| |
Common |
| |
shares |
| Approval of the Board Members was reached as follows: |
|
| Amy B.R. Lancellotta |
|
| For |
11,495,456 |
| Withhold |
503,400 |
| Total |
11,998,856 |
| John K. Nelson |
|
| For |
11,496,376 |
| Withhold |
502,480 |
| Total |
11,998,856 |
| Terence J. Toth |
|
| For |
11,486,193 |
| Withhold |
512,663 |
| Total |
11,998,856 |
| Robert L. Young |
|
| For |
11,480,114 |
| Withhold |
518,742 |
| Total |
11,998,856 |
14
Report of Independent Registered Public Accounting Firm
To
the Shareholders and Board of Trustees
Nuveen Intermediate Duration Quality Municipal Term
Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities
of Nuveen Intermediate Duration Quality Municipal Term Fund (the Fund), including the portfolio of investments, as of May 31, 2023, the
related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the years
in the two year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each
of the years in the five year period then ended. In our opinion, the financial statements and financial highlights present fairly, in
all material respects, the financial position of the Fund as of May 31, 2023, the results of its operations and its cash flows for the
year then ended, the changes in its net assets for each of the years in the two year period then ended, and the financial highlights for
each of the years in the five year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility
of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on
our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and
are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to
assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing
procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of May 31, 2023,
by correspondence with custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. Our
audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the
overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our
opinion.
Emphasis of Matter
As discussed in Note 1 to the financial statements, the Fund completed
its termination and liquidation following the close of business on June 30, 2023. Our opinion is not modified with respect to this matter.
/s/ KPMG LLP
We have served as the auditor of one or more Nuveen investment
companies since 2014.
Chicago, Illinois
July 26, 2023
15
| NIQ |
Nuveen Intermediate Duration Quality |
| |
Municipal Term Fund |
| |
Portfolio of Investments |
| |
May 31, 2023 |
| Principal |
|
Optional Call |
|
|
| Amount (000) |
Description (1) |
Provisions (2) |
Ratings (3) |
Value |
| |
LONG-TERM INVESTMENTS – 96.6% (100.0% of Total Investments) |
|
|
|
| |
MUNICIPAL BONDS – 92.2% (95.5% of Total Investments) |
|
|
|
| |
Alabama – 0.7% (0.8% of Total Investments) |
|
|
|
| $ 1,000 |
Lower Alabama Gas District, Alabama, Gas Project Revenue Bonds, Series 2016A, 5.000%, 9/01/34 |
No Opt. Call |
A2 |
$ 1,035,500 |
| 225 |
Tuscaloosa County Industrial Development Authority, Alabama, Gulf Opportunity Zone Bonds, |
5/29 at 100.00 |
N/R |
208,110 |
| |
Hunt Refining Project, Refunding Series 2019A, 4.500%, 5/01/32, 144A 2021 2021 |
|
|
|
| |
Total Alabama |
|
|
1,243,610 |
| |
Arizona – 0.7% (0.7% of Total Investments) |
|
|
|
| 1,000 |
Tempe, Arizona, Water and Sewer Revenue Bonds, Series 2021, 5.000%, 7/01/41 |
7/31 at 100.00 |
AA+ |
1,099,680 |
| |
Total Arizona |
|
|
1,099,680 |
| |
California – 6.3% (6.5% of Total Investments) |
|
|
|
| 55 |
California County Tobacco Securitization Agency, Tobacco Settlement Asset-Backed Bonds, |
6/30 at 100.00 |
BBB+ |
50,494 |
| |
Los Angeles County Securitization Corporation, Series 2020A, 4.000%, 6/01/49 |
|
|
|
| 1,170 |
California Municipal Finance Authority, Revenue Bonds, Linxs APM Project, Senior Lien |
6/28 at 100.00 |
BBB– |
1,186,158 |
| |
Series 2018A, 5.000%, 12/31/43, (AMT) |
|
|
|
| 1,000 |
California Municipal Finance Authority, Revenue Bonds, Linxs APM Project, Senior Lien |
6/28 at 100.00 |
BBB– |
1,005,220 |
| |
Series 2018B, 5.000%, 6/01/48, (AMT) |
|
|
|
| 370 |
California Pollution Control Financing Authority, Water Furnishing Revenue Bonds, San |
1/29 at 100.00 |
BBB |
379,391 |
| |
Diego County Water Authoriity Desalination Project Pipeline, Refunding Series 2019, 5.000%, |
|
|
|
| |
7/01/39, 144A |
|
|
|
| 1,930 |
California Statewide Communities Development Authority, California, Revenue Bonds, Loma |
12/24 at 100.00 |
BB+ |
1,959,857 |
| |
Linda University Medical Center, Series 2014A, 5.250%, 12/01/34 |
|
|
|
| 3,335 |
Eastern Municipal Water District Financing Authority, California, Water and Wastewater |
7/27 at 100.00 |
AAA |
3,574,753 |
| |
Revenue Bonds, Series 2017D, 5.250%, 7/01/42 |
|
|
|
| 700 |
Los Angeles Department of Water and Power, California, Waterworks Revenue Bonds, Series |
No Opt. Call |
Aa2 |
793,016 |
| |
2021B, 5.000%, 7/01/29 |
|
|
|
| 155 |
Riverside County Redevelopment Agency, California, Tax Allocation Housing Bonds, Series |
No Opt. Call |
A (4) |
164,618 |
| |
2011A, 8.000%, 10/01/26, (ETM) |
|
|
|
| 1,500 |
San Diego Association of Governments, California, South Bay Expressway Toll Revenue |
7/27 at 100.00 |
A |
1,599,375 |
| |
Bonds, First Senior Lien Series 2017A, 5.000%, 7/01/36 |
|
|
|
| |
Total California |
|
|
10,712,882 |
| |
Colorado – 11.7% (12.1% of Total Investments) |
|
|
|
| 3,045 |
Colorado Health Facilities Authority, Colorado, Revenue Bonds, CommonSpirit Health, |
8/29 at 100.00 |
A– |
3,269,691 |
| |
Series 2019A-2, 5.000%, 8/01/30 |
|
|
|
| 5,000 |
Colorado Springs, Colorado, Utilities System Revenue Bonds, Refunding Series 2017A-2, |
11/27 at 100.00 |
AA+ |
5,194,450 |
| |
5.000%, 11/15/47 |
|
|
|
| |
Colorado State Board of Governors, Colorado State University Auxiliary Enterprise System |
|
|
|
| |
Revenue Bonds, Refunding Series 2013A: |
|
|
|
| 500 |
5.000%, 3/01/25 |
No Opt. Call |
AA |
514,785 |
| 2,145 |
5.000%, 3/01/27 |
No Opt. Call |
AA |
2,289,594 |
| |
Colorado State Board of Governors, Colorado State University Auxiliary Enterprise System |
|
|
|
| |
Revenue Bonds, Tender Option Bond Trust 2016-XF2354, Formerly Tender Option Bond Trust 3316: |
|
|
|
| 725 |
9.549%, 3/01/28, 144A, (IF) (5) |
No Opt. Call |
AA |
1,045,544 |
| 200 |
9.549%, 3/01/29, 144A, (IF) (5) |
No Opt. Call |
AA |
309,824 |
| 1,870 |
Denver Convention Center Hotel Authority, Colorado, Revenue Bonds, Convention Center |
12/26 at 100.00 |
Baa2 |
1,912,711 |
| |
Hotel, Refunding Senior Lien Series 2016, 5.000%, 12/01/30 |
|
|
|
| 1,000 |
Public Authority for Colorado Energy, Natural Gas Purchase Revenue Bonds, Colorado |
No Opt. Call |
AA– |
1,170,850 |
| |
Springs Utilities, Series 2008, 6.500%, 11/15/38 |
|
|
|
16
| Principal |
|
Optional Call |
|
|
| Amount (000) |
Description (1) |
Provisions (2) |
Ratings (3) |
Value |
| |
Colorado (continued) |
|
|
|
| $ 4,000 |
University of Northern Colorado at Greeley, Institutional Enterprise System Revenue |
6/26 at 100.00 |
Aa2 |
$ 4,109,320 |
| |
Bonds, Refunding Series 2016A, 5.000%, 6/01/46 |
|
|
|
| |
Total Colorado |
|
|
19,816,769 |
| |
District of Columbia – 3.5% (3.6% of Total Investments) |
|
|
|
| 4,000 |
Metropolitan Washington Airports Authority, Virginia, Dulles Toll Road Revenue Bonds, |
10/29 at 100.00 |
AA |
3,710,400 |
| |
Dulles Metrorail & Capital improvement Projects, Refunding & Subordinate Lien Series 2019B, |
|
|
|
| |
4.000%, 10/01/53 – AGM Insured |
|
|
|
| 2,000 |
Washington Metropolitan Area Transit Authority, District of Columbia, Dedicated Revenue |
7/30 at 100.00 |
AA |
2,268,300 |
| |
Bonds, Series 2020A, 5.000%, 7/15/33 |
|
|
|
| |
Total District of Columbia |
|
|
5,978,700 |
| |
Florida – 4.0% (4.2% of Total Investments) |
|
|
|
| 150 |
Atlantic Beach, Florida, Healthcare Facilities Revenue Refunding Bonds, Fleet Landing |
No Opt. Call |
BBB |
150,125 |
| |
Project, Series 2013A, 5.000%, 11/15/23 |
|
|
|
| 130 |
Belmont Community Development District, Florida, Capital Improvement Revenue Bonds, |
No Opt. Call |
N/R |
130,702 |
| |
Phase 1 Project, Series 2013A, 5.500%, 11/01/23 |
|
|
|
| 1,500 |
Broward County, Florida, Tourist Development Tax Revenue Bonds, Convention Center |
9/31 at 100.00 |
Aa3 |
1,419,255 |
| |
Expansion Project, Series 2021, 4.000%, 9/01/51 |
|
|
|
| 280 |
Capital Trust Agency, Florida, Fixed Rate Air Cargo Revenue Refunding Bonds, Aero Miami |
7/23 at 100.00 |
Baa3 |
280,616 |
| |
FX, LLC Project, Series 2010A, 5.350%, 7/01/29 |
|
|
|
| 350 |
Collier County Educational Facilities Authority, Florida, Revenue Bonds, Ave Maria |
No Opt. Call |
BBB– (4) |
350,000 |
| |
University, Refunding Series 2013A, 4.500%, 6/01/23, (ETM) |
|
|
|
| 1,000 |
Florida Mid-Bay Bridge Authority, Revenue Bonds, 1st Senior Lien Series 2015A, 5.000%, |
No Opt. Call |
BBB+ |
1,003,200 |
| |
10/01/23 |
|
|
|
| 500 |
Gainesville, Florida, Utilities System Revenue Bonds, Series 2017A, 5.000%, 10/01/36 |
10/27 at 100.00 |
Aa3 |
533,750 |
| 2,000 |
Miami-Dade County, Florida, Transit System Sales Surtax Revenue Bonds, Series 2022, |
7/32 at 100.00 |
AA |
2,144,300 |
| |
5.000%, 7/01/51 |
|
|
|
| 510 |
Putnam County Development Authority, Florida, Pollution Control Revenue Bonds, Seminole |
5/28 at 100.00 |
A– |
529,773 |
| |
Electric Cooperatice, Inc. Project, Refunding Series 2018B, 5.000%, 3/15/42 |
|
|
|
| 305 |
Southeast Overtown/Park West Community Redevelopement Agency, Florida, Tax Increment |
No Opt. Call |
BBB+ |
307,775 |
| |
Revenue Bonds, Series 2014A-1, 5.000%, 3/01/24, 144A |
|
|
|
| |
Total Florida |
|
|
6,849,496 |
| |
Georgia – 4.9% (5.0% of Total Investments) |
|
|
|
| 1,000 |
Gainesville and Hall County Hospital Authority, Georgia, Revenue Anticipation |
2/27 at 100.00 |
AA |
1,040,870 |
| |
Certificates, Northeast Georgia Health Services Inc., Series 2017B, 5.250%, 2/15/45 |
|
|
|
| 1,000 |
Geo. L. Smith II Georgia World Congress Center Authority, Georgia, Convention Center |
1/31 at 100.00 |
BBB– |
809,530 |
| |
Hotel Revenue Bonds, First Tier Series 2021A, 4.000%, 1/01/54 |
|
|
|
| 2,800 |
Georgia Ports Authority, Revenue Bonds, Series 2022, 5.000%, 7/01/47 |
7/32 at 100.00 |
AA |
3,051,776 |
| 1,465 |
Municipal Electric Authority of Georgia, Plant Vogtle Units 3 & 4 Project J Bonds, |
7/28 at 100.00 |
AA |
1,505,932 |
| |
Series 2019A, 5.000%, 1/01/49 – BAM Insured |
|
|
|
| 1,770 |
Municipal Electric Authority of Georgia, Plant Vogtle Units 3 & 4 Project M Bonds, |
7/32 at 100.00 |
AA |
1,849,261 |
| |
Series 2022A, 5.000%, 7/01/52 – AGM Insured |
|
|
|
| |
Total Georgia |
|
|
8,257,369 |
| |
Hawaii – 1.9% (2.0% of Total Investments) |
|
|
|
| 3,000 |
Honolulu City and County, Hawaii, Wastewater System Revenue Bonds, First Bond |
1/28 at 100.00 |
Aa2 |
3,231,060 |
| |
Resolution, Senior Series 2018A, 5.000%, 7/01/37 |
|
|
|
| |
Total Hawaii |
|
|
3,231,060 |
| |
Illinois – 7.8% (8.1% of Total Investments) |
|
|
|
| 500 |
Cook County, Illinois, General Obligation Bonds, Refunding Series 2021A, 5.000%, |
11/30 at 100.00 |
AA– |
558,955 |
| |
11/15/32 |
|
|
|
17
| NIQ |
Nuveen Intermediate Duration Quality Municipal |
| |
Term Fund |
| |
Portfolio of Investments (continued) |
| |
May 31, 2023 |
| Principal |
|
Optional Call |
|
|
| Amount (000) |
Description (1) |
Provisions (2) |
Ratings (3) |
Value |
| |
Illinois (continued) |
|
|
|
| $ 2,000 |
Illinois Municipal Electric Agency, Power Supply System Revenue Bonds, Refunding Series |
8/25 at 100.00 |
AA– |
$ 2,063,660 |
| |
2015A, 5.000%, 2/01/27 |
|
|
|
| 2,500 |
Illinois State, General Obligation Bonds, November Series 2017D, 5.000%, 11/01/27 |
No Opt. Call |
A– |
2,667,725 |
| 5,000 |
Illinois State, General Obligation Bonds, Series 2013, 5.000%, 7/01/23 |
No Opt. Call |
BBB+ |
5,004,050 |
| 290 |
Madison, Macoupin, Jersey, Calhoun, Morgan, Scott, and Greene Counties Community College |
11/26 at 100.00 |
AA |
305,147 |
| |
District 536, Illinois, General Obligation Bonds, Lewis & Clark Community College, Refunding |
|
|
|
| |
Series 2017A, 5.000%, 11/01/33 – AGM Insured |
|
|
|
| 665 |
Metropolitan Pier and Exposition Authority, Illinois, McCormick Place Expansion Project |
12/29 at 100.00 |
A |
591,318 |
| |
Bonds, Refunding Series 2020A, 4.000%, 6/15/50 |
|
|
|
| 2,000 |
Springfield, Illinois, Electric Revenue Bonds, Refunding Senior Lien Series 2015, |
3/25 at 100.00 |
A |
2,027,480 |
| |
5.000%, 3/01/33 |
|
|
|
| |
Total Illinois |
|
|
13,218,335 |
| |
Kentucky – 5.0% (5.1% of Total Investments) |
|
|
|
| 2,000 |
Kentucky Bond Development Corporation, Kentucky, Industrial Building Revenue Bonds, |
3/30 at 100.00 |
AA |
2,130,540 |
| |
Kentucky Communications Network Authority, Series 2019, 5.000%, 9/01/49 – BAM Insured |
|
|
|
| 1,000 |
Kentucky Bond Development Corporation, Transient Room Tax Revenue Bonds, Lexington |
9/28 at 100.00 |
A2 |
1,032,010 |
| |
Center Corporation Project, Series 2018A, 5.000%, 9/01/43 |
|
|
|
| |
Kentucky Economic Development Finance Authority, Revenue Bonds, Next Generation |
|
|
|
| |
Kentucky Information Highway Project, Senior Series 2015A: |
|
|
|
| 925 |
4.250%, 7/01/35 |
7/25 at 100.00 |
BBB+ |
880,424 |
| 1,400 |
5.000%, 1/01/45 |
7/25 at 100.00 |
BBB+ |
1,364,062 |
| 3,000 |
Kentucky Public Transportation Infrastructure Authority, Toll Revenue Bonds, Downtown |
No Opt. Call |
Baa2 |
2,991,450 |
| |
Crossing Project, Capital Appreciation First Tier Series 2013B, 0.000%, 7/01/23 |
|
|
|
| |
Total Kentucky |
|
|
8,398,486 |
| |
Louisiana – 0.3% (0.3% of Total Investments) |
|
|
|
| 530 |
New Orleans Aviation Board, Louisiana, Special Facility Revenue Bonds, Parking Facilities |
10/28 at 100.00 |
AA |
554,661 |
| |
Corporation Consolidated Garage System, Series 2018A, 5.000%, 10/01/43 – AGM Insured |
|
|
|
| |
Total Louisiana |
|
|
554,661 |
| |
Maine – 2.5% (2.6% of Total Investments) |
|
|
|
| 1,000 |
Maine Health and Higher Educational Facilities Authority Revenue Bonds, Eastern Maine |
7/23 at 100.00 |
Ba1 (4) |
1,001,100 |
| |
Medical Center Obligated Group Issue, Series 2013, 5.000%, 7/01/33, (Pre-refunded 7/01/23) |
|
|
|
| 1,000 |
Maine Health and Higher Educational Facilities Authority Revenue Bonds, MaineHealth |
7/28 at 100.00 |
A+ |
1,031,590 |
| |
Issue, Series 2018A, 5.000%, 7/01/43 |
|
|
|
| |
Maine Turnpike Authority, Special Obligation Bonds, Series 2014: |
|
|
|
| 340 |
5.000%, 7/01/27 |
7/24 at 100.00 |
A+ |
345,909 |
| 1,850 |
5.000%, 7/01/29 |
7/24 at 100.00 |
A+ |
1,879,785 |
| |
Total Maine |
|
|
4,258,384 |
| |
Maryland – 0.4% (0.4% of Total Investments) |
|
|
|
| 615 |
Baltimore, Maryland, Convention Center Hotel Revenue Bonds, Refunding Series 2017, |
9/27 at 100.00 |
CCC+ |
610,695 |
| |
5.000%, 9/01/34 |
|
|
|
| |
Total Maryland |
|
|
610,695 |
| |
Michigan – 7.2% (7.4% of Total Investments) |
|
|
|
| 1,000 |
Detroit City School District, Wayne County, Michigan, General Obligation Bonds, Tender |
No Opt. Call |
Aa1 |
1,746,840 |
| |
Option Bond Trust 3308, 10.006%, 5/01/30 – AGM Insured, 144A, (IF) (5) |
|
|
|
| 5 |
Detroit, Michigan, Sewer Disposal System Revenue Bonds, Second Lien, Series 2006B, |
7/23 at 100.00 |
A+ |
5,006 |
| |
5.000%, 7/01/36 – FGIC Insured |
|
|
|
| 5 |
Detroit, Michigan, Water Supply System Revenue Bonds, Second Lien Series 2003B, 5.000%, |
7/23 at 100.00 |
A+ |
5,007 |
| |
7/01/34 – NPFG Insured |
|
|
|
| 190 |
Flint Hospital Building Authority, Michigan, Building Authority Revenue Bonds, Hurley |
No Opt. Call |
BBB– |
189,958 |
| |
Medical Center, Series 2013A, 5.000%, 7/01/23 |
|
|
|
18
| Principal |
|
Optional Call |
|
|
| Amount (000) |
Description (1) |
Provisions (2) |
Ratings (3) |
Value |
| |
Michigan (continued) |
|
|
|
| $ 2,355 |
Kalamazoo County, Michigan, General Obligation Bonds, Limitied Tax Series 2022, 4.000%, |
5/31 at 100.00 |
AA+ |
$ 2,311,598 |
| |
5/01/45 |
|
|
|
| 3,000 |
Michigan Finance Authority, Local Government Loan Program Revenue Bonds, Detroit Water & |
No Opt. Call |
AA |
3,002,520 |
| |
Sewerage Department Water Supply System Local Project, Refunding Senior Loan Series 2014D-1, |
|
|
|
| |
5.000%, 7/01/23 – AGM Insured |
|
|
|
| 850 |
Michigan Finance Authority, Tobacco Settlement Asset- Backed Bonds, 2007 Sold Tobacco |
12/30 at 100.00 |
BBB+ |
863,804 |
| |
Receipts, Series 2020B-1-CL2, 5.000%, 6/01/49 |
|
|
|
| 4,000 |
Michigan State, Trunk Line Fund Bonds, Rebuilding Michigan Program, Series 2021A, |
11/31 at 100.00 |
AA+ |
4,088,160 |
| |
4.000%, 11/15/37 |
|
|
|
| |
Total Michigan |
|
|
12,212,893 |
| |
Minnesota – 1.1% (1.2% of Total Investments) |
|
|
|
| 2,000 |
Duluth Economic Development Authority, Minnesota, Health Care Facilities Revenue Bonds, |
2/28 at 100.00 |
A– |
1,929,860 |
| |
Essentia Health Obligated Group, Series 2018A, 4.250%, 2/15/43 |
|
|
|
| |
Total Minnesota |
|
|
1,929,860 |
| |
Montana – 1.4% (1.4% of Total Investments) |
|
|
|
| |
Montana Facility Finance Authority, Healthcare Facility Revenue Bonds, Kalispell |
|
|
|
| |
Regional Medical Center, Series 2018B: |
|
|
|
| 985 |
5.000%, 7/01/28 |
No Opt. Call |
BBB |
1,024,489 |
| 1,270 |
5.000%, 7/01/29 |
7/28 at 100.00 |
BBB |
1,317,701 |
| |
Total Montana |
|
|
2,342,190 |
| |
Nevada – 1.7% (1.8% of Total Investments) |
|
|
|
| 515 |
Carson City, Nevada, Hospital Revenue Bonds, Carson Tahoe Regional Healthcare Project, |
9/27 at 100.00 |
A– |
523,060 |
| |
Series 2017A, 5.000%, 9/01/47 |
|
|
|
| 1,000 |
Las Vegas Convention and Visitors Authority, Nevada, Revenue Bonds, Series 2018C, |
7/28 at 100.00 |
Aa3 |
1,053,610 |
| |
5.250%, 7/01/43 |
|
|
|
| 1,295 |
Las Vegas Redevelopment Agency, Nevada, Tax Increment Revenue Bonds, Refunding Series |
No Opt. Call |
BBB+ |
1,331,350 |
| |
2016, 5.000%, 6/15/26 |
|
|
|
| |
Total Nevada |
|
|
2,908,020 |
| |
New Jersey – 2.1% (2.2% of Total Investments) |
|
|
|
| 1,000 |
New Jersey Economic Development Authority, School Facilities Construction Financing |
3/25 at 100.00 |
Baa1 |
991,630 |
| |
Program Bonds, Tender Option Bond Trust 2016-XF2340, 3.985%, 9/01/25, 144A, (IF) (5) |
|
|
|
| 1,000 |
New Jersey Economic Development Authority, Special Facilities Revenue Bonds, Continental |
7/23 at 101.00 |
BB– |
1,002,600 |
| |
Airlines Inc., Series 1999, 5.250%, 9/15/29, (AMT) |
|
|
|
| 1,225 |
New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series |
12/30 at 100.00 |
A2 |
1,137,658 |
| |
2020AA, 4.000%, 6/15/50 |
|
|
|
| 420 |
Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed |
6/28 at 100.00 |
BBB– |
422,024 |
| |
Bonds, Series 2018B, 5.000%, 6/01/46 |
|
|
|
| |
Total New Jersey |
|
|
3,553,912 |
| |
New York – 7.0% (7.3% of Total Investments) |
|
|
|
| 495 |
Buffalo and Erie County Industrial Land Development Corporation, New York, Revenue |
7/25 at 100.00 |
B– |
452,806 |
| |
Bonds, Catholic Health System, Inc. Project, Series 2015, 5.000%, 7/01/29 |
|
|
|
| 435 |
Liberty Development Corporation, New York, Goldman Sachs Headquarters Revenue Bonds |
No Opt. Call |
A2 |
491,102 |
| |
Series 2007, 5.500%, 10/01/37 |
|
|
|
| 3,545 |
Long Island Power Authority, New York, Electric System General Revenue Bonds, Series |
9/27 at 100.00 |
A |
3,748,731 |
| |
2017, 5.000%, 9/01/42 |
|
|
|
| 1,390 |
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Green |
5/30 at 100.00 |
A3 |
1,419,412 |
| |
Climate Bond Certified Series 2020C-1, 5.000%, 11/15/50 |
|
|
|
| 750 |
Metropolitan Transportation Authority, New York, Transportation Revenue Bonds, Refunding |
No Opt. Call |
A3 |
806,910 |
| |
Green Climate Certified Series 2020E, 5.000%, 11/15/30 |
|
|
|
| 1,000 |
New York City, New York, General Obligation Bonds, Fiscal 2021 Series C, 5.000%, 8/01/42 |
8/30 at 100.00 |
AA |
1,076,570 |
19
| NIQ |
Nuveen Intermediate Duration Quality Municipal |
| |
Term Fund |
| |
Portfolio of Investments (continued) |
| |
May 31, 2023 |
| Principal |
|
Optional Call |
|
|
| Amount (000) |
Description (1) |
Provisions (2) |
Ratings (3) |
Value |
| |
New York (continued) |
|
|
|
| $ 1,750 |
New York State Thruway Authority, State Personal Income Tax Revenue Bonds, Bidding Group 1 |
9/32 at 100.00 |
AA+ |
$ 1,703,258 |
| |
Series 2022A, 4.000%, 3/15/49 |
|
|
|
| 2,000 |
Triborough Bridge and Tunnel Authority, New York, Sales Tax Revenue Bonds, MTA Bridges & |
11/32 at 100.00 |
AAA |
2,210,240 |
| |
Tunnels, TBTA Capital Lockbox-City Sales Tax, Series 2022A, 5.250%, 5/15/57 |
|
|
|
| |
Total New York |
|
|
11,909,029 |
| |
North Dakota – 0.7% (0.7% of Total Investments) |
|
|
|
| 1,250 |
Cass County, North Dakota, Health Care Facilities Revenue Bonds, Essential Health |
2/28 at 100.00 |
A– |
1,206,163 |
| |
Obligated Group, Series 2018B, 4.250%, 2/15/43 |
|
|
|
| |
Total North Dakota |
|
|
1,206,163 |
| |
Ohio – 3.0% (3.1% of Total Investments) |
|
|
|
| 4,280 |
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement Asset-Backed |
6/30 at 100.00 |
N/R |
3,965,420 |
| |
Revenue Bonds, Refunding Senior Lien Series 2020B-2 Class 2, 5.000%, 6/01/55 |
|
|
|
| 3,000 |
Ohio Air Quality Development Authority, Ohio, Pollution Control Revenue Bonds, |
No Opt. Call |
N/R |
30 |
| |
FirstEnergy Generation Project, Refunding Series 2006A, 3.750%, 12/01/23 (6) |
|
|
|
| 1,150 |
Ohio State, Private Activity Bonds, Portsmouth Gateway Group, LLC – Borrower, Portsmouth |
6/25 at 100.00 |
AA |
1,168,975 |
| |
Bypass Project, Series 2015, 5.000%, 12/31/27 – AGM Insured, (AMT) |
|
|
|
| |
Total Ohio |
|
|
5,134,425 |
| |
Oklahoma – 0.3% (0.3% of Total Investments) |
|
|
|
| 500 |
Oklahoma Development Finance Authority, Health System Revenue Bonds, OU Medicine |
8/28 at 100.00 |
BB– |
451,215 |
| |
Project, Series 2018B, 5.500%, 8/15/57 |
|
|
|
| |
Total Oklahoma |
|
|
451,215 |
| |
Pennsylvania – 1.0% (1.1% of Total Investments) |
|
|
|
| 1,700 |
Pennsylvania Economic Development Financing Authority, Private Activity Revenue Bonds, |
6/26 at 100.00 |
BBB |
1,735,054 |
| |
Pennsylvania Rapid Bridge Replacement Project, Series 2015, 5.000%, 6/30/28, (AMT) |
|
|
|
| |
Total Pennsylvania |
|
|
1,735,054 |
| |
Puerto Rico – 1.6% (1.7% of Total Investments) |
|
|
|
| |
Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue Bonds, Restructured |
|
|
|
| |
2018A-1: |
|
|
|
| 660 |
4.500%, 7/01/34 |
7/25 at 100.00 |
N/R |
661,643 |
| 2,175 |
4.550%, 7/01/40 |
7/28 at 100.00 |
N/R |
2,075,385 |
| |
Total Puerto Rico |
|
|
2,737,028 |
| |
South Carolina – 1.7% (1.8% of Total Investments) |
|
|
|
| 1,000 |
Piedmont Municipal Power Agency, South Carolina, Electric Revenue Bonds, Refunding |
No Opt. Call |
A– |
1,006,860 |
| |
Series 2021A, 4.000%, 1/01/25 |
|
|
|
| 1,758 |
South Carolina Public Service Authority, Santee Cooper Revenue Obligations, Refunding |
No Opt. Call |
A– |
1,929,352 |
| |
Series 2022B, 5.000%, 12/01/31 |
|
|
|
| |
Total South Carolina |
|
|
2,936,212 |
| |
Tennessee – 9.0% (9.3% of Total Investments) |
|
|
|
| 1,000 |
Greeneville Health and Educational Facilities Board, Tennessee, Hospital Revenue Bonds, |
7/28 at 100.00 |
A |
1,047,290 |
| |
Ballad Health, Series 2018A, 5.000%, 7/01/36 |
|
|
|
| |
Jackson, Tennessee, Hospital Revenue Bonds, Jackson-Madison County General Hospital |
|
|
|
| |
Project, Series 2018A: |
|
|
|
| 2,180 |
5.000%, 4/01/35 |
10/28 at 100.00 |
A2 |
2,288,346 |
| 110 |
5.000%, 4/01/35, (Pre-refunded 10/01/28) |
10/28 at 100.00 |
A– (4) |
121,162 |
| 2,000 |
Knox County Health, Educational and Housing Facility Board, Tennessee, Hospital Revenue |
7/23 at 100.00 |
A+ |
2,006,980 |
| |
Bonds, Covenant Health, Refunding Series 2012A, 5.000%, 1/01/26 |
|
|
|
| 2,000 |
Metropolitan Government of Nashville-Davidson County Health and Educational Facilities |
5/31 at 100.00 |
A |
1,826,900 |
| |
Board, Tennessee, Revenue Bonds, Belmont University, Refunding & Improvement Series 2021, |
|
|
|
| |
4.000%, 5/01/46 |
|
|
|
20
| Principal |
|
Optional Call |
|
|
| Amount (000) |
Description (1) |
Provisions (2) |
Ratings (3) |
Value |
| |
Tennessee (continued) |
|
|
|
| $ 450 |
Metropolitan Government of Nashville-Davidson County, Tennessee, Water and Sewerage |
7/27 at 100.00 |
AA |
$ 471,789 |
| |
Revenue Bonds, Green Series 2017A, 5.000%, 7/01/42 |
|
|
|
| 1,000 |
Metropolitan Nashville Airport Authority, Tennessee, Airport Improvement Revenue Bonds, |
7/32 at 100.00 |
A1 |
1,100,090 |
| |
Series 2022A, 5.250%, 7/01/47 |
|
|
|
| 1,400 |
The Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series 2006B, |
No Opt. Call |
BBB |
1,437,814 |
| |
5.625%, 9/01/26 |
|
|
|
| |
The Tennessee Energy Acquisition Corporation, Gas Revenue Bonds, Series 2006C: |
|
|
|
| 1,490 |
5.000%, 2/01/24 |
No Opt. Call |
A |
1,489,046 |
| 1,365 |
5.000%, 2/01/25 |
No Opt. Call |
A |
1,363,062 |
| 1,870 |
West Wilson Utility District, Wilson County, Tennessee, Water Revenue Bonds, Improvement |
6/32 at 100.00 |
AA |
2,062,198 |
| |
Series 2022, 5.000%, 6/01/42 |
|
|
|
| |
Total Tennessee |
|
|
15,214,677 |
| |
Texas – 2.5% (2.6% of Total Investments) |
|
|
|
| 2,000 |
Gulf Coast Industrial Development Authority, Texas, Solid Waste Disposal Revenue Bonds, |
7/23 at 100.00 |
BB |
1,986,760 |
| |
Citgo Petroleum Corporation Project, Series 1995, 4.875%, 5/01/25, (AMT) |
|
|
|
| 960 |
Harris County-Houston Sports Authority, Texas, Revenue Bonds, Refunding Second Lien |
11/24 at 100.00 |
Baa1 |
974,554 |
| |
Series 2014C, 5.000%, 11/15/25 |
|
|
|
| 1,005 |
Harris County-Houston Sports Authority, Texas, Revenue Bonds, Third Lien Series 2004A-3, |
11/24 at 59.10 |
Baa2 |
556,720 |
| |
0.000%, 11/15/33 – NPFG Insured |
|
|
|
| 765 |
Texas Municipal Gas Acquisition and Supply Corporation I, Gas Supply Revenue Bonds, |
No Opt. Call |
A1 |
795,110 |
| |
Senior Lien Series 2008D, 6.250%, 12/15/26 |
|
|
|
| |
Total Texas |
|
|
4,313,144 |
| |
Virginia – 0.8% (0.8% of Total Investments) |
|
|
|
| 1,340 |
Chesapeake Bay Bridge and Tunnel District, Virginia, General Resolution Revenue Bonds, |
7/26 at 100.00 |
AA |
1,373,406 |
| |
First Tier Series 2016, 5.000%, 7/01/41 – AGM Insured |
|
|
|
| |
Total Virginia |
|
|
1,373,406 |
| |
Washington – 1.4% (1.4% of Total Investments) |
|
|
|
| 700 |
Port of Seattle, Washington, Revenue Bonds, Intermediate Lien Series 2015A, |
10/24 at 100.00 |
AA– |
713,888 |
| |
5.000%, 4/01/27 |
|
|
|
| |
Washington State Convention Center Public Facilities District, Lodging Tax Revenue |
|
|
|
| |
Bonds, Refunding Series2021B. Exchange Purchase: |
|
|
|
| 210 |
4.000%, 7/01/34 |
7/31 at 100.00 |
Baa1 |
209,427 |
| 1,550 |
4.000%, 7/01/37 |
7/31 at 100.00 |
Baa3 |
1,463,696 |
| |
Total Washington |
|
|
2,387,011 |
| |
Total Municipal Bonds (cost $158,218,969) |
|
|
156,574,366 |
21
| NIQ |
Nuveen Intermediate Duration Quality Municipal |
| |
Term Fund |
| |
Portfolio of Investments (continued) |
| |
May 31, 2023 |
| Shares |
Description (1) |
Value |
| |
COMMON STOCKS – 4.4% (4.5% of Total Investments) |
|
| |
Independent Power and Renewable Electricity Producers – 4.4% (4.5% of Total Investments) |
|
| 97,015 |
Energy Harbor Corp (7), (8) |
$ 7,459,774 |
| |
Total Independent Power and Renewable Electricity Producers |
7,459,774 |
| |
Total Common Stocks (cost $2,765,568) |
7,459,774 |
| |
Total Long-Term Investments (cost $160,984,537) |
164,034,140 |
| |
Other Assets & Liabilities, Net – 3.4% |
5,777,717 |
| |
Net Assets Applicable to Common Shares – 100% |
$ 169,811,857 |
| (1) |
All percentages shown in the Portfolio of Investments are based on net assets applicable to common shares unless otherwise noted. |
(2)
|
Optional
Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at
varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. Optional Call Provisions
are not covered by the report of independent registered public
accounting
firm. |
| (3) |
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. Ratings are not covered by the report of independent registered public accounting firm. |
| (4) |
Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, which ensure the timely payment of principal and interest. |
| (5) |
Investment, or portion of Investment, has been pledged to collateralize the net payment obligations for investments in inverse floating rate transactions. |
| (6) |
Defaulted security. A security whose issuer has failed to fully pay principal and/or interest when due, or is under the protection of bankruptcy. |
| (7) |
Energy Harbor Corp (ENGH) common stock received as part of the bankruptcy settlement during February 2020 for Ohio Air Quality Development Authority, Ohio, Pollution Control Revenue Bonds, FirstEnergy Generation Project, Refunding Series 2006A, 3.750%, 12/01/23. Various funds and accounts managed by Nuveen, including the Fund, collectively are a substantial minority holder of ENGH’s outstanding shares of common stock, and possess certain other rights with respect to the corporate governance of ENGH. Due to these facts, under the federal securities laws, the securities of ENGH held by Nuveen funds and accounts, including the Fund, cannot be sold except under limited conditions (which are not currently satisfied). The Fund is therefore unable to sell such shares in ordinary secondary market transactions at this time. On March 6, 2023 Vistra Corp. (“Vistra”) announced that it has executed a definitive agreement with Energy Harbor Corp., pursuant to which Energy Harbor will merge with and into a newly- formed subsidiary of Vistra. The companies anticipate closing the transaction in the second half of 2023. In connection with the transaction, Nuveen funds and accounts expect to receive a combination of cash and shares in a newly formed entity. Nuveen expects these shares to be issued in a private transaction and may have reduced secondary market liquidity. The transaction is subject to certain regulatory approvals and there can be no assurance that the transaction will close. |
| (8) |
Non-income producing; issuer has not declared an ex-dividend date within the past twelve months. |
| 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. |
| AMT |
Alternative Minimum Tax |
| ETM |
Escrowed to maturity |
| IF |
Inverse floating rate security issued by a tender option bond (“TOB”) trust, the interest rate on which varies inversely with the Securities Industry Financial Markets Association (SIFMA) short-term rate, which resets weekly, or a similar short-term rate, and is reduced by the expenses related to the TOB trust. |
See accompanying notes to financial statements
22
Statement of Assets and Liabilities
| May 31, 2023 |
|
| ASSETS |
|
| Long-term investments, at value (cost $160,984,537) |
$164,034,140 |
| Cash |
3,589,963 |
| Receivable for: |
|
| Interest |
2,296,516 |
| Investments sold |
435,000 |
| Other assets |
10,365 |
| Total assets |
170,365,984 |
| LIABILITIES |
|
| Payable for: |
|
| Dividends |
427,563 |
| Accrued expenses: |
|
| Custodian fees |
19,447 |
| Investor relations |
2,382 |
| Management fees |
70,506 |
| Trustees fees |
2,647 |
| Professional fees |
15 |
| Shareholder reporting expenses |
6,463 |
| Shareholder servicing agent fees |
177 |
| Other |
24,927 |
| Total liabilities |
554,127 |
| Commitments and contingencies(1) |
|
| Net Assets applicable to common shares |
$169,811,857 |
| Common shares outstanding |
13,098,868 |
| Net asset value ("NAV") per common share outstanding |
$ 12.96 |
| NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: |
|
| Common shares, $0.01 par value per share |
$ 130,989 |
| Paid-in surplus |
186,788,917 |
| Total distributable earnings (loss) |
(17,108,049) |
| Net assets applicable to common shares |
$169,811,857 |
(1) As
disclosed in Notes to Financial Statements
See Notes to Financial Statements.
23
| Year Ended May 31, 2023 |
|
| INVESTMENT INCOME |
|
| Interest |
$ 6,643,578 |
| Total Investment Income |
$ 6,643,578 |
| EXPENSES |
|
| Management fees |
954,729 |
| Interest expense |
547,105 |
| Custodian expenses, net |
26,165 |
| Trustees fees |
13,499 |
| Professional fees |
76,173 |
| Shareholder reporting expenses |
23,189 |
| Shareholder servicing agent fees |
10,685 |
| Stock exchange listing fees |
7,330 |
| Investor relations expenses |
7,635 |
| Other |
26,304 |
| Total expenses |
1,692,814 |
| Net investment income (loss) |
4,950,764 |
| REALIZED AND UNREALIZED GAIN (LOSS) |
|
| Realized gain (loss): |
|
| Investments |
(8,267,443) |
| Net realized gain (loss) |
(8,267,443) |
| Change in net unrealized appreciation (depreciation) on: |
|
| Investments |
1,987,490 |
| Change in net unrealized appreciation (depreciation) |
1,987,490 |
| Net realized and unrealized gain (loss) |
(6,279,953) |
| Net increase (decrease) in net assets applicable to common shares from operations |
$(1,329,189) |
See Notes to Financial Statements.
24
Statement of Changes in Net Assets
| |
Year |
Year |
| |
Ended |
Ended |
| |
5/31/23 |
5/31/22 |
| OPERATIONS |
|
|
| Net investment income (loss) |
$ 4,950,764 |
$ 5,677,210 |
| Net realized gain (loss) |
(8,267,443) |
(459,257) |
| Change in net unrealized appreciation (depreciation) |
1,987,490 |
(18,492,734) |
| Net increase (decrease) in net assets applicable to common shares from operations |
(1,329,189) |
(13,274,781) |
| DISTRIBUTIONS TO COMMON SHAREHOLDERS |
|
|
| Dividends |
(5,075,811) |
(6,417,932) |
| Decrease in net assets applicable to common shares from distributions to |
|
|
| common shareholders |
(5,075,811) |
(6,417,932) |
| Capital Share Transactions |
|
|
| Common shares: |
|
|
| Net proceeds from common shares issued to shareholders due to |
|
|
| reinvestment of distributions |
— |
25,616 |
| Net increase (decrease) in net assets applicable to common shares from |
|
|
| capital share transactions |
— |
25,616 |
| Net increase (decrease) in net assets applicable to common shares |
(6,405,000) |
(19,667,097) |
| Net assets applicable to common shares at the beginning of period |
176,216,857 |
195,883,954 |
| Net assets applicable to common shares at the end of period |
$169,811,857 |
$176,216,857 |
See Notes to Financial Statements.
25
| Year Ended May 31, 2023 |
|
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
| Net Increase (Decrease) in Net Assets Applicable to Common Shares from Operations |
$ (1,329,189) |
| Adjustments to reconcile the net increase (decrease) in net assets applicable to common |
|
| shares from operations to net cash provided by (used in) operating activities: |
|
| Purchases of investments |
(61,721,662) |
| Proceeds from sales and maturities of investments |
113,180,953 |
| Taxes paid |
(68) |
| Amortization (Accretion) of premiums and discounts, net |
2,019,926 |
| Amortization of deferred offering costs |
29,046 |
| (Increase) Decrease in: |
|
| Receivable for interest |
942,089 |
| Receivable for investments sold |
5,445,000 |
| Other assets |
(1,055) |
| Increase (Decrease) in: |
|
| Payable for investments purchased - when-issued/delayed-delivery settlement |
(2,101,095) |
| Accrued custodian fees |
(18,690) |
| Accrued investor relations |
(2,469) |
| Accrued management fees |
(29,532) |
| Accrued Trustees fees |
1,107 |
| Accrued professional fees |
(424) |
| Accrued shareholder reporting expenses |
941 |
| Accrued shareholder servicing agent fees |
(2,098) |
| Accrued other expenses |
21,983 |
| Net realized (gain) loss from investments |
8,267,443 |
| Change in net unrealized (appreciation) depreciation of investments |
(1,987,490) |
| Net cash provided by (used in) operating activities |
62,714,716 |
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
| (Repayments for) AMTP Shares redeemed, at liquidation preference |
(55,000,000) |
| Cash distributions paid to common shareholders |
(5,133,678) |
| Net cash provided by (used in) financing activities |
(60,133,678) |
| Net Increase (Decrease) in Cash and Cash Collateral at Brokers |
2,581,038 |
| Cash and cash collateral at brokers at the beginning of period |
1,008,925 |
| Cash and cash collateral at brokers at the end of period |
$ 3,589,963 |
| |
| The following table provides a reconciliation of cash and cash collateral at brokers to the statement of assets and liabilities: |
|
| Cash |
$ 3,589,963 |
| Cash collateral at brokers for investments in futures contracts |
— |
| Total cash and cash collateral at brokers |
$ 3,589,963 |
| |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|
| Cash paid for interest (excluding borrowing and amortization of offering costs) |
$ 514,604 |
| Non-cash financing activities not included herein consists of reinvestments of common share distributions |
— |
See Notes to Financial Statements.
26
THIS PAGE INTENTIONALLY LEFT BLANK
27
Financial Highlights
Selected data for a common share outstanding throughout each period:
| |
|
|
|
|
|
Less Distributions to |
|
|
|
| |
|
Investment Operations |
|
|
Common Shareholders |
|
Common Share |
| |
Beginning |
Net |
Net |
|
|
From |
From |
|
|
|
|
| |
Common |
Investment |
Realized/ |
|
|
Net |
Net |
|
|
Ending |
Ending |
| |
Share Net |
Income |
Unrealized |
|
|
Investment |
Realized |
|
|
Net Asset |
Share |
| |
Asset Value |
(Loss) |
Gain (Loss) |
Total |
|
Income |
Gains |
Total |
|
Value |
Price |
| 5/31/23 |
$13.45 |
$0.38 |
$(0.48) |
$(0.10) |
|
$(0.39) |
— |
$(0.39) |
|
$12.96 |
$12.60 |
| 5/31/22 |
14.96 |
0.43 |
(1.45) |
(1.02) |
|
(0.49) |
— |
(0.49) |
|
13.45 |
13.15 |
| 5/31/21 |
14.36 |
0.50 |
0.56 |
1.06 |
|
(0.46) |
— |
(0.46) |
|
14.96 |
14.82 |
| 5/31/20 |
14.30 |
0.41 |
0.03 |
0.44 |
|
(0.38) |
— |
(0.38) |
|
14.36 |
13.89 |
| 5/31/19 |
13.66 |
0.41 |
0.60 |
1.01 |
|
(0.37) |
— |
(0.37) |
|
14.30 |
13.26 |
28
| |
|
|
|
Common Share Supplemental Data/ |
|
| |
|
|
|
Ratios Applicable to Common Shares |
|
| Common Share |
|
|
|
|
|
| Total Returns |
|
|
Ratios to Average Net Assets(b) |
|
| |
Based |
|
Ending |
|
|
|
| Based |
on |
|
Net |
|
Net |
Portfolio |
| on |
Share |
|
Assets |
|
Investment |
Turnover |
| NAV(a) |
Price(a) |
|
(000) |
Expenses |
Income (Loss) |
Rate |
| (0.73)% |
(1.16)% |
|
$169,812 |
0.99% |
2.90% |
33% |
| (7.00) |
(8.23) |
|
176,217 |
1.09 |
2.98 |
21 |
| 7.50 |
10.16 |
|
195,884 |
1.05 |
3.38 |
8 |
| 3.11 |
7.70 |
|
188,024 |
1.43 |
2.86 |
13 |
| 7.54 |
9.06 |
|
187,339 |
1.55 |
2.96 |
20 |
| (a) | | Total Return Based on Common Share NAV is the combination of changes in common share NAV,
reinvested dividend income at NAV and reinvested capital gains distributions at NAV, if any. The last dividend declared in the period,
which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending NAV. The actual reinvest
price for the last dividend declared in the period may often be based on the Fund’s market price (and not its NAV), and therefore
may be different from the price used in the calculation. Total returns are not annualized. |
Total Return Based on Common Share Price is the combination of
changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any,
at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on
the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the
last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so
the actual reinvestment price may be different from the price used in the calculation. Percentage not annualized.
| (b) | | • Net Investment Income (Loss) ratios reflect income earned and expenses incurred (as
further described below) on assets attributable to preferred shares issued by the Fund, where applicable. |
| • | | The expense ratios reflect, among other things, all interest expense and other costs related
to preferred shares (as described in Notes to Financial Statements ) and/or the interest expense deemed to have been paid by the Fund
on the floating rate certificates issued by the special purpose trusts for the self-deposited inverse floaters held by the Fund (as described
in Notes to Financial Statements), where applicable, as follows: |
| |
|
| |
Ratios of Interest Expense to |
| |
Average Net Assets Applicable |
| |
to Common Shares |
| 5/31/23 |
0.32% |
| 5/31/22 |
0.32 |
| 5/31/21 |
0.28 |
| 5/31/20 |
0.64 |
| 5/31/19 |
0.74 |
See Notes to Financial Statements.
29
Financial Highlights (continued)
The following table sets forth information regarding each Fund’s
outstanding senior securities as of the end of each of the Fund’s last five fiscal periods, as applicable.
| |
AMTP Shares |
| |
Aggregate |
Asset |
| |
Amount |
Coverage |
| |
Outstanding |
Per $100,000 |
| |
(000)(a) |
Share(b) |
| 5/31/23 |
$ — |
$ — |
| 5/31/22 |
55,000 |
420,394 |
| 5/31/21 |
55,000 |
456,153 |
| 5/31/20 |
55,000 |
441,862 |
| 5/31/19 |
55,000 |
440,616 |
| (a) | | Aggregate Amount Outstanding: Aggregate amount outstanding represents the liquidation preference
as of the end of the relevant fiscal year and does not include any preferred shares noticed for redemption as noted on the Statement
of Assets and Liabilities, where applicable. |
| (b) | | Asset Coverage Per $100,000: Asset coverage per $100,000 is calculated by subtracting the
Fund’s liabilities and indebtedness not represented by senior securities from the Fund’s total assets, dividing the result
by the aggregate amount of the Fund’s senior securities representing indebtedness then outstanding (if applicable,) plus the aggregate
of the involuntary liquidation preference of the outstanding preferred shares, if applicable, and multiplying the result by 100,000. |
See Notes to Financial Statements.
30
Notes to
Financial Statements
1.
General Information
Fund Information
The fund covered in this report and its corresponding New York
Stock Exchange (“NYSE”) symbol is Nuveen Intermediate Duration Quality Municipal Term Fund (NIQ) (the “Fund”).
The Fund is registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as a diversified, closed-end
management investment company. The Fund was organized as a Massachusetts business trust on December 11, 2012. NIQ had a term of ten years
and liquidated and distributed their net assets to shareholders on June 30, 2023.
Current Fiscal Period
The end of the reporting period for the Fund is May 31, 2023,
and the period covered by these Notes to Financial Statements is the fiscal year ended May 31, 2023 (the “current fiscal period”).
Investment Adviser and Sub-Adviser
The Fund’s investment adviser is Nuveen Fund Advisors, LLC
(the “Adviser”), a subsidiary of Nuveen, LLC (“Nuveen”). Nuveen is the investment management arm of Teachers Insurance
and Annuity Association of America (TIAA). The Adviser has overall responsibility for management of the Fund, oversees the management
of the Fund’s portfolios, manages the Fund’s business affairs and provides certain clerical, bookkeeping and other administrative
services, and, if necessary, asset allocation decisions. The Adviser has entered into a sub-advisory agreement with Nuveen Asset Management,
LLC, (the “Sub-Adviser”), a subsidiary of the Adviser, under which the Sub-Adviser manages the investment portfolio of the
Fund.
Developments Regarding the Fund’s Control Share By-Law
On October 5, 2020, the Fund and certain other closed-end funds
in the Nuveen fund complex amended their by-laws. Among other things, the amended by-laws included provisions pursuant to which, in summary,
a shareholder who obtains beneficial ownership of common shares in a Control Share Acquisition (as defined in the by-laws) shall have
the same voting rights as other common shareholders only to the extent authorized by the other disinterested shareholders (the “Control
Share By-Law”). On January 14, 2021, a shareholder of certain Nuveen closed-end funds filed a civil complaint in the U.S. District
Court for the Southern District of New York (the “District Court”) against certain Nuveen funds and their trustees, seeking
a declaration that such funds’ Control Share By-Laws violate the 1940 Act, rescission of such fund’s Control Share By-Laws
and a permanent injunction against such funds applying the Control Share By-Laws. On February 18, 2022, the District Court granted judgment
in favor of the plaintiff’s claim for rescission of such funds’ Control Share By-Laws and the plaintiff’s declaratory
judgment claim, and declared that such funds’ Control Share By-Laws violate Section 18(i) of the 1940 Act. Following review of the
judgment of the District Court, on February 22, 2022, the Fund’s Board of Trustees (the “Board”) amended the Fund’s
bylaws to provide that the Fund’s Control Share By-Law shall be of no force and effect for so long as the judgment of the District
Court is effective and that if the judgment of the District Court is reversed, overturned, vacated, stayed, or otherwise nullified, the
Fund’s Control Share By-Law will be automatically reinstated and apply to any beneficial owner of common shares acquired in a Control
Share Acquisition, regardless of whether such Control Share Acquisition occurs before or after such reinstatement, for the duration of
the stay or upon issuance of the mandate reversing, overturning, vacating or otherwise nullifying the judgment of the District Court.
On February 25, 2022, the Board and the Fund appealed the District Court’s decision to the U.S. Court of Appeals for the Second
Circuit.
NIQ Announces Liquidation Details
The Board of NIQ has approved the liquidation of the Fund upon
the Fund’s originally scheduled termination date.
As previously announced, the Board of Trustees of Nuveen Intermediate
Duration Quality Municipal Term Fund (NIQ) has approved the liquidation of the fund upon the fund’s originally scheduled termination
date. NIQ intends to liquidate on or before June 30, 2023. The fund will not declare its regular monthly income distribution in June 2023
and expects to make a special tax-exempt income distribution in connection with the fund’s liquidation. The amount and dates applying
to any special income distribution will be announced at a later date. The fund anticipates making its final liquidating distribution on
or about June 30, 2023. The final tax character of all distributions paid in 2023 will be reported to shareholders on Form 1099-DIV, which
will be sent out in early 2024. Nuveen does not provide tax advice; investors should consult a professional tax advisor regarding their
specific tax situation.
31
Notes to Financial Statements (continued)
As the Fund approaches its termination date, the Fund will begin
the orderly liquidation of its assets. As a Fund’s portfolio securities are sold, the Fund may deviate from its investment objective
and policies. Any securities that cannot be sold within a reasonable period of time by a Fund will be contributed to a liquidating trust.
The liquidating trust is intended to provide an orderly disposition of such illiquid assets.
Upon termination, the Fund anticipates distributing to all Fund
shareholders (i) cash raised from the sale of portfolio securities and (ii) interests in the liquidating trust equal in relative proportion
to the percentage of the outstanding shares owned by a shareholder on the liquidation date. Interests in the liquidating trust will not
trade on an exchange and may not be sold or transferred, except as permitted by applicable law. The liquidating trust will subsequently
distribute cash proceeds in one or more payments as the securities in the liquidating trust can be sold or otherwise liquidated. The timing
of when cash distributions will be made from the liquidating trust cannot be predicted. 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.
As NIQ approaches liquidation, the Fund’s common shares
will continue trading on the New York Stock Exchange. NIQ common shares will be suspended from trading before the open of trading on June
26, 2023.
2. Significant Accounting Policies
The accompanying financial statements were prepared in accordance
with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of
estimates made by management and the evaluation of subsequent events. Actual results may differ from those estimates. Each Fund is an
investment company and follows the accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards
Codification 946, Financial Services—Investment Companies. The net asset value (“NAV”) for financial reporting purposes
may differ from the NAV for processing security and common share transactions. The NAV for financial reporting purposes includes security
and common share transactions through the date of the report. Total return is computed based on the NAV used for processing security and
common shareholder transactions. The following is a summary of the significant accounting policies consistently followed by the Fund.
Compensation
The Fund pays no compensation directly to those of its trustees
or to its officers, all of whom receive remuneration for their services to the Fund from the Adviser or its affiliates. The Board has
adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the
annual compensation they are entitled to receive from certain Nuveen-advised funds. Under the plan, deferred amounts are treated as though
equal dollar amounts had been invested in shares of select Nuveen-advised funds.
Custodian Fee Credit
As an alternative to overnight investments, the Fund has an arrangement
with its custodian bank, State Street Bank and Trust Company, (the “Custodian”) whereby certain custodian fees and expenses
are reduced by net credits earned on the Fund’s cash on deposit with the bank. Credits for cash balances may be offset by charges
for any days on which a Fund overdraws its account at the Custodian. The amount of custodian fee credit earned by a Fund is recognized
on the Statement of Operations as a component of “Custodian expenses, net.” During the current reporting period, the custodian
fee credit earned by the Fund was as follows:
| |
|
| Custodian Fee Credit |
$3,882 |
Distributions to Common Shareholders
Distributions to common shareholders are recorded on the ex-dividend
date. The amount, character and timing of distributions are determined in accordance with federal income tax regulations, which may differ
from U.S. GAAP.
Indemnifications
Under the Fund’s organizational documents, its officers
and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the
normal course of business, the Fund enters into contracts that provide general indemnifications to other parties. The Fund’s maximum
exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
Investments and Investment Income
Securities transactions are accounted for as of the trade date
for financial reporting purposes. Realized gains and losses on securities transactions are based upon the specific identification method.
Investment income is comprised of interest income, which is recorded on an accrual basis and includes accretion of discounts and amortization
of premiums for financial reporting purposes. Investment income also reflects payment-in-kind (“PIK”) interest and paydown
gains and losses, if any. PIK interest represents income received in the form of securities in lieu of cash. Investment income also reflects
dividend income, which is recorded on the ex-dividend date.
32
Netting Agreements
In the ordinary course of business, the Fund may enter into transactions
subject to enforceable International Swaps and Derivatives Association, Inc. (ISDA) master agreements or other similar arrangements (“netting
agreements”). Generally, the right to offset in netting agreements allows the Fund to offset certain securities and derivatives
with a specific counterparty, when applicable, as well as any collateral received or delivered to that counterparty based on the terms
of the agreements. Generally, the Fund manages its cash collateral and securities collateral on a counterparty basis. With respect to
certain counterparties, in accordance with the terms of the netting agreements, collateral posted to the Fund is held in a segregated
account by the Fund’s custodian and/or with respect to those amounts which can be sold or repledged, are presented in the Fund’s
Portfolio of Investments or Statement of Assets and Liabilities.
The Fund’s investments subject to netting agreements as
of the end of the reporting period, if any, are further described in Note 4 – Portfolio Securities and Investments in Derivatives.
New Accounting Pronouncements and Rule Issuances
Reference Rate Reform
In March 2020, FASB issued Accounting Standards Update (“ASU”)
2020-04, Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The main objective of the
new guidance is to provide relief to companies that will be impacted by the expected change in benchmark interest rates, when participating
banks will no longer be required to submit London Interbank Offered Rate (LIBOR) quotes by the UK Financial Conduct Authority (FCA). The
new guidance allows companies to, provided the only changes to existing contracts are a change to an approved benchmark interest rate,
account for modifications as a continuance of the existing contract without additional analysis. For new and existing contracts, the Fund
may elect to apply the amendments as of March 12, 2020 through December 31, 2022. In December 2022, FASB deferred ASU 2022-04 and issued
ASU 2022-06, Reference Rate Reform: Deferral of the Sunset Date of Topic 848, which extends the application of the amendments through
December 31, 2024. Management has not yet elected to apply the amendments, is continuously evaluating the potential effect a discontinuation
of LIBOR could have on the Fund’s investments and has currently determined that it is unlikely the ASU’s adoption will have
a significant impact on the Fund’s financial statements and various filings.
New Rules to Modernize Fund Valuation Framework Take Effect
A new rule adopted by the Securities and Exchange Commission (the
“SEC”) governing fund valuation practices, Rule 2a-5 under the 1940 Act, has established requirements for determining fair
value in good faith for purposes of the 1940 Act. Rule 2a-5 permits fund boards to designate certain parties to perform fair value determinations,
subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available”
for purposes of Section 2(a)(41) of the 1940 Act, which requires a fund to fair value a security when market quotations are not readily
available. Separately, new SEC Rule 31a-4 under the 1940 Act sets forth the recordkeeping requirements associated with fair value determinations.
The Fund adopted a valuation policy conforming to the new rules, effective September 1, 2022, and there was no material impact to the
Fund.
3. Investment Valuation and Fair Value Measurements
The Fund’s investments in securities are recorded at their
estimated fair value utilizing valuation methods approved by the Adviser, subject to oversight of the Board. 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. U.S. GAAP establishes the three-tier hierarchy which 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 management’s
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, credit spreads, etc.).
Level 3 – Prices are determined using significant unobservable
inputs (including management’s assumptions in determining the fair value of investments).
A description of the valuation techniques applied to the Fund’s
major classifications of assets and liabilities measured at fair value follows:
Prices of fixed-income securities are generally provided by pricing
services approved by the Adviser, which is subject to review by the Adviser and oversight of the Board. Pricing services establish a security’s
fair value using methods that may include consideration of the following: yields or prices of investments of comparable quality, type
of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows
or collateral, general market conditions and other information and analysis, including the obligor’s credit characteristics
33
Notes to Financial Statements (continued)
considered relevant. In pricing certain securities, particularly
less liquid and lower quality securities, pricing services may consider information about a security, its issuer or market activity provided
by the Adviser. These securities are generally classified as Level 2.
Equity securities and exchange-traded funds listed or traded on
a national market or exchange are valued based on their last reported sales price or official closing price of such market or exchange
on the valuation date. Foreign equity securities and registered investment companies that trade on a foreign exchange are valued at the
last reported sales price or official closing price on the principal exchange where traded, and converted to U.S. dollars at the prevailing
rates of exchange on the valuation date. For events affecting the value of foreign securities between the time when the exchange on which
they are traded closes and the time when the Fund’s net assets are calculated, such securities will be valued at fair value in accordance
with procedures adopted by the Adviser, subject to the oversight of the Board. To the extent these securities are actively traded and
no valuation adjustments are applied, they are generally classified as Level 1. When valuation adjustments are applied to the most recent
last sales price or official closing price, these securities are generally classified as Level 2.
For any portfolio security or derivative for which market quotations
are not readily available or for which the Adviser deems the valuations derived using the valuation procedures described above not to
reflect fair value, the Adviser will determine a fair value in good faith using alternative procedures approved by the Adviser, subject
to the oversight of the Board. As a general principle, the fair value of a security is the amount that the owner might reasonably expect
to receive for it in a current sale. A variety of factors may be considered in determining the fair value of such securities, which may
include consideration of the following: yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating,
market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions
and other information and analysis, including the obligor’s credit characteristics considered relevant. To the extent the inputs
are observable and timely, the values would be classified as Level 2; otherwise they would be classified as Level 3.
The following table summarizes the market value of the Fund’s
investments as of the end of the reporting period, based on the inputs used to value them:
| |
|
|
|
|
| |
Level 1 |
Level 2 |
Level 3 |
Total |
| Long-Term Investments:* |
|
|
|
|
| Municipal Bonds |
$ — |
$156,574,366 |
$ — |
$156,574,366 |
| Common Stocks |
— |
7,459,774 |
— |
7,459,774 |
| Total |
$ — |
$164,034,140 |
$ — |
$164,034,140 |
* Refer to the Fund’s Portfolio of Investments for state classifications.
The Fund holds liabilities in floating rate obligations and preferred
shares, where applicable, which are not reflected in the tables above. The fair values of the Fund’s liabilities for floating rate
obligations approximate their liquidation values. Floating rate obligations are generally classified as Level 2 and further described
in Note 4 – Portfolio Securities and Investments in Derivatives. The fair values of the Fund’s liabilities for preferred shares
approximate their liquidation preference. Preferred shares are generally classified as Level 2 and further described in Note 5 –
Fund Shares.
4. Portfolio Securities and Investments in Derivatives
Portfolio Securities
Inverse Floating Rate Securities
The Fund is authorized to invest in inverse floating rate securities.
An inverse floating rate security is created by depositing a municipal bond (referred to as an “Underlying Bond”), typically
with a fixed interest rate, into a special purpose tender option bond (“TOB”) trust (referred to as the “TOB Trust”)
created by or at the direction of one or more Funds. In turn, the TOB Trust issues (a) floating rate certificates (referred to as “Floaters”),
in face amounts equal to some fraction of the Underlying Bond’s par amount or market value, and (b) an inverse floating rate certificate
(referred to as an “Inverse Floater”) that represents all remaining or residual interest in the TOB Trust. Floaters typically
pay short-term tax-exempt interest rates to third parties who are also provided a right to tender their certificate and receive its par
value, which may be paid from the proceeds of a remarketing of the Floaters, by a loan to the TOB Trust from a third party liquidity provider
(“Liquidity Provider”), or by the sale of assets from the TOB Trust. The Inverse Floater is issued to a long term investor,
such as one or more of the Funds. The income received by the Inverse Floater holder varies inversely with the short-term rate paid to
holders of the Floaters, and in most circumstances the Inverse Floater holder bears substantially all of the Underlying Bond’s downside
investment risk and also benefits disproportionately from any potential appreciation of the Underlying Bond’s value. The value of
an Inverse Floater will be more volatile than that of the Underlying Bond because the interest rate is dependent on not only the fixed
coupon rate of the Underlying Bond but also on the short-term interest paid on the Floaters, and because the Inverse Floater essentially
bears the risk of loss (and possible gain) of the greater face value of the Underlying Bond.
The Inverse Floater held by a Fund gives the Fund the right to
(a) cause the holders of the Floaters to tender their certificates at par (or slightly more than par in certain circumstances), and (b)
have the trustee of the TOB Trust (the “Trustee”) transfer the Underlying Bond held by the TOB Trust to the Fund, thereby
collapsing the TOB Trust.
34
The Fund may acquire an Inverse Floater in a transaction where
it (a) transfers an Underlying Bond that it owns to a TOB Trust created by a third party or (b) transfers an Underlying Bond that it owns,
or that it has purchased in a secondary market transaction for the purpose of creating an Inverse Floater, to a TOB Trust created at its
direction, and in return receives the Inverse Floater of the TOB Trust (referred to as a “self-deposited Inverse Floater”).
A Fund may also purchase an Inverse Floater in a secondary market transaction from a third party creator of the TOB Trust without first
owning the Underlying Bond (referred to as an “externally-deposited Inverse Floater”).
An investment in a self-deposited Inverse Floater is accounted
for as a “financing” transaction (i.e., a secured borrowing). For a self-deposited Inverse Floater, the Underlying Bond deposited
into the TOB Trust is identified in the Fund’s Portfolio of Investments as “(UB) – Underlying bond of an inverse floating
rate trust reflected as a financing transaction,” with the Fund recognizing as liabilities, labeled “Floating rate obligations”
on the Statement of Assets and Liabilities, (a) the liquidation value of Floaters issued by the TOB Trust, and (b) the amount of any borrowings
by the TOB Trust from a Liquidity Provider to enable the TOB Trust to purchase outstanding Floaters in lieu of a remarketing. In addition,
the Fund recognizes in “Investment Income” the entire earnings of the Underlying Bond, and recognizes (a) the interest paid
to the holders of the Floaters or on the TOB Trust’s borrowings, and (b) other expenses related to remarketing, administration,
trustee, liquidity and other services to a TOB Trust, as a component of “Interest expense and amortization of offering costs”
on the Statement of Operations. Earnings due from the Underlying Bond and interest due to the holders of the Floaters as of the end of
the reporting period are recognized as components of “Receivable for interest” and “Payable for interest” on the
Statement of Assets and Liabilities, respectively.
In contrast, an investment in an externally-deposited Inverse
Floater is accounted for as a purchase of the Inverse Floater and is identified in the Fund’s Portfolio of Investments as “(IF)
– Inverse floating rate investment.” For an externally-deposited Inverse Floater, a Fund’s Statement of Assets and Liabilities
recognizes the Inverse Floater and not the Underlying Bond as an asset, and the Fund does not recognize the Floaters, or any related borrowings
from a Liquidity Provider, as a liability. Additionally, the Fund reflects in “Investment Income” only the net amount of earnings
on the Inverse Floater (net of the interest paid to the holders of the Floaters or the Liquidity Provider as lender, and the expenses
of the Trust), and does not show the amount of that interest paid or the expenses of the TOB Trust as described above as interest expense
on the Statement of Operations.
Fees paid upon the creation of a TOB Trust for self-deposited
Inverse Floaters and externally-deposited Inverse Floaters are recognized as part of the cost basis of the Inverse Floater and are capitalized
over the term of the TOB Trust.
As of the end of the reporting period, the aggregate value of
Floaters issued by the Fund’s TOB Trust for self-deposited Inverse Floaters and externally-deposited Inverse Floaters was as follows:
| Floating Rate Obligations Outstanding |
|
| Floating rate obligations: self-deposited Inverse Floaters |
$ — |
| Floating rate obligations: externally-deposited Inverse Floaters |
11,700,000 |
| Total |
$11,700,000 |
During the current fiscal period, the average amount of Floaters
(including any borrowings from a Liquidity Provider) outstanding, and the average annual interest rate and fees related to self-deposited
Inverse Floaters, were as follows:
| Self-Deposited Inverse Floaters |
|
| Average floating rate obligations outstanding |
$— |
| Average annual interest rate and fees |
—% |
TOB Trusts are supported by a liquidity facility provided by a
Liquidity Provider pursuant to which the Liquidity Provider agrees, in the event that Floaters are (a) tendered to the Trustee for remarketing
and the remarketing does not occur, or (b) subject to mandatory tender pursuant to the terms of the TOB Trust agreement, to either purchase
Floaters or to provide the Trustee with an advance from a loan facility to fund the purchase of Floaters by the TOB Trust. In certain
circumstances, the Liquidity Provider may otherwise elect to have the Trustee sell the Underlying Bond to retire the Floaters that were
tendered and not remarketed prior to providing such a loan. In these circumstances, the Liquidity Provider remains obligated to provide
a loan to the extent that the proceeds of the sale of the Underlying Bond is not sufficient to pay the purchase price of the Floaters.
The size of the commitment under the loan facility for a given
TOB Trust is at least equal to the balance of that TOB Trust’s outstanding Floaters plus any accrued interest. In consideration
of the loan facility, fee schedules are in place and are charged by the Liquidity Provider(s). Any loans made by the Liquidity Provider
will be secured by the purchased Floaters held by the TOB Trust. Interest paid on any outstanding loan balances will be effectively borne
by the Fund that owns the Inverse Floaters of the TOB Trust that has incurred the borrowing and may be at a rate that is greater than
the rate that would have been paid had the Floaters been successfully remarketed.
35
Notes to Financial Statements (continued)
As described above, any amounts outstanding under a liquidity
facility are recognized as a component of “Floating rate obligations” on the Statement of Assets and Liabilities by the Fund
holding the corresponding Inverse Floaters issued by the borrowing TOB Trust. As of the end of the reporting period there were no loans
outstanding under any such facility.
The Fund may also enter into shortfall and forbearance agreements
(sometimes referred to as a “recourse arrangement”) (TOB Trusts involving such agreements are referred to herein as “Recourse
Trusts”), under which a Fund agrees to reimburse the Liquidity Provider for the Trust’s Floaters, in certain circumstances,
for the amount (if any) by which the liquidation value of the Underlying Bond held by the TOB Trust may fall short of the sum of the liquidation
value of the Floaters issued by the TOB Trust plus any amounts borrowed by the TOB Trust from the Liquidity Provider, plus any shortfalls
in interest cash flows. Under these agreements, a Fund’s potential exposure to losses related to or on an Inverse Floater may increase
beyond the value of the Inverse Floater as a Fund may potentially be liable to fulfill all amounts owed to holders of the Floaters or
the Liquidity Provider. Any such shortfall amount in the aggregate is recognized as “Unrealized depreciation on Recourse Trusts”
on the Statement of Assets and Liabilities.
As of the end of the reporting period, the Fund’s maximum
exposure to the Floaters issued by Recourse Trusts for self-deposited Inverse Floaters and externally-deposited Inverse Floaters was as
follows:
| Floating Rate Obligations – Recourse Trusts |
|
| Maximum exposure to Recourse Trusts: self-deposited Inverse Floaters |
$ — |
| Maximum exposure to Recourse Trusts: externally-deposited Inverse Floaters |
11,700,000 |
| Total |
$11,700,000 |
Zero Coupon Securities
A zero coupon security does not pay a regular interest coupon
to its holders during the life of the security. Income to the holder of the security comes from accretion of the difference between the
original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity.
The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically.
Investment Transactions
Long-term purchases and sales (including maturities but excluding
derivative transactions, where applicable) during the current fiscal period were as follows:
| |
|
| Purchases |
$ 61,721,662 |
| Sales and maturities |
113,180,953 |
The Fund may purchase securities on a when-issued or delayed-delivery
basis. Securities purchased on a when-issued or delayed-delivery basis may have extended settlement periods; interest income is not accrued
until settlement date. Any securities so purchased are subject to market fluctuation during this period. The Fund has earmarked securities
in its portfolio with a current value at least equal to the amount of the when issued/ delayed-delivery purchase commitments. If a Fund
has outstanding when-issued/delayed-delivery purchases commitments as of the end of the reporting period, such amounts are recognized
on the Statement of Assets and Liabilities.
Investments in Derivatives
In addition to the inverse floating rate securities in which the
Fund may invest, which are considered portfolio securities for financial reporting purposes, the Fund is authorized to invest in certain
other derivative instruments such as futures, options and swap contracts. The Fund limits its investments in futures, options on futures
and swap contracts to the extent necessary for the Adviser to claim the exclusion from registration by the Commodity Futures Trading Commission
as a commodity pool operator with respect to the Fund. The Fund record derivative instruments at fair value, with changes in fair value
recognized on the Statement of Operations, when applicable. Even though the Fund’s investments in derivatives may represent economic
hedges, they are not considered to be hedge transactions for financial reporting purposes. Although the Fund is authorized to invest in
derivative instruments and may do so in the future, it did not make any such investments during the current fiscal period.
Market and Counterparty Credit Risk
In the normal course of business the Fund may invest in financial
instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure
of the other party to the transaction to perform (counterparty credit risk). The potential loss could exceed the value of the financial
assets recorded on the financial statements. Financial assets, which potentially expose the Fund to counterparty credit risk, consist
principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of the Fund’s
exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement
of Assets and Liabilities.
36
The Fund helps manage counterparty credit risk by entering into
agreements only with counterparties the Adviser believes have the financial resources to honor their obligations and by having the Adviser
monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based
on the daily valuation of the financial asset) on behalf of the Fund with a value approximately equal to the amount of any unrealized
gain above a pre-determined threshold. Reciprocally, when the Fund has an unrealized loss, the Fund has instructed the custodian to pledge
assets of the Fund as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold.
Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the predetermined
threshold amount.
5. Fund Shares
Common Share Transactions
Transactions in common shares during the Fund’s current
and prior fiscal period, where applicable were as follows:
| |
Year |
Year |
| |
Ended |
Ended |
| |
5/31/23 |
5/31/22 |
| Common shares: |
|
|
| Issued to shareholders due to reinvestments of distributions |
— |
1,724 |
Preferred
Shares
Adjustable Rate MuniFund Term Preferred Shares
The Fund had issued and had outstanding Adjustable Rate MuniFund
Term Preferred (“AMTP”) Shares, with a $100,000 liquidation preference per share. AMTP Shares are issued via private placement
and are not publicly available. Now, the Fund has redeemed all of its AMTP Shares.
The Fund is obligated to redeem its AMTP Shares by the date as
specified in its offering document (“Term Redemption Date”), unless earlier redeemed by the Fund. AMTP Shares are subject
to optional and mandatory redemption in certain circumstances. The AMTP Shares may be redeemed at the option of the Fund, subject to payment
of premium for approximately six months following the date of issuance (“Premium Expiration Date”), and at the redemption
price per share thereafter. The redemption price per share is equal to the sum of the liquidation preference per share plus any accumulated
but unpaid dividends.
AMTP Shares are short-term or short/intermediate-term instruments
that pay a variable dividend rate tied to a short-term index, plus an additional fixed “spread” amount which is initially
established at the time of issuance and may be adjusted in the future based upon a mutual agreement between the majority owner and the
Fund. From time-to-time the majority owner may propose to the Fund an adjustment to the dividend rate. Should the majority owner and the
Fund fail to agree upon an adjusted dividend rate, and such proposed dividend rate adjustment is not withdrawn, the Fund will be required
to redeem all outstanding shares upon the end of a notice period.
The average liquidation preference of AMTP Shares outstanding
and annualized dividend rate for the Fund during the current fiscal period was as follows:
| |
|
| Average liquidation preference of AMTP Shares outstanding* |
$55,000,000 |
| Annualized dividend rate |
2.34% |
* For the period June 1, 2022 through October 25, 2022 (redemption date of shares).
AMTP Shares are subject to restrictions on transfer, generally
do not trade, and market quotations are generally not available. The fair value of AMTP Shares is expected to be approximately their liquidation
preference so long as the fixed “spread” on the AMTP Shares remains roughly in line with the “spread” being demanded
by investors on instruments having similar terms in the current market environment. In present market conditions, the Fund’s Adviser
has determined that the fair value of AMTP Shares is approximately their liquidation preference, but their fair value could vary if market
conditions change materially. For financial reporting purposes, the liquidation preference of AMTP Shares is a liability and is recognized
as a component of “Adjustable Rate MuniFund Term Preferred (“AMTP”) Shares, net of deferred offering costs” on
the Statement of Assets and Liabilities.
AMTP Share dividends are treated as interest payments for financial
reporting purposes. Unpaid dividends on AMTP Shares are recognized as a component of “Interest payable” on the Statement of
Assets and Liabilities. Dividends accrued on AMTP Shares are recognized as a component of “Interest expense and amortization of
offering costs” on the Statement of Operations.
37
Notes to Financial Statements (continued)
Costs incurred in connection with the Fund’s offering of
AMTP Shares were recorded as deferred charges, which are amortized over the life of the shares and are recognized as components of “Adjustable
Rate MuniFund Term Preferred (“AMTP”) Shares, net of deferred offering costs” on the Statement of Assets and Liabilities
and “Interest expense and amortization of offering costs” on the Statement of Operations.
Preferred Share Transactions
Transactions in AMTP preferred shares for the Fund during the
Fund’s current fiscal period, where applicable, are noted in the following table. The Fund did not have any transactions in preferred
shares during the prior fiscal period.
| |
Year Ended |
| |
5/31/23 |
| |
Series |
Shares |
Amount |
| AMTP Shares redeemed |
2023 |
(550) |
$(55,000,000) |
6. Income Tax Information
The Fund intends to distribute substantially all of its net investment
income and net capital gains to shareholders and otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable
to regulated investment companies. Therefore, no federal income tax provision is required.
The Fund intends to satisfy conditions that will enable interest
from municipal securities, which is exempt from regular federal income tax, to retain such tax-exempt status when distributed to shareholders
of the Fund. Net realized capital gains and ordinary income distributions paid by the Fund are subject to federal taxation.
The Fund files income tax returns in U.S. federal and applicable
state and local jurisdictions. A Fund’s federal income tax returns are generally subject to examination for a period of three fiscal
years after being filed. State and local tax returns may be subject to examination for an additional period of time depending on the jurisdiction.
Management has analyzed the Fund’s tax positions taken for all open tax years and has concluded that no provision for income tax
is required in the Fund’s financial statements.
Differences between amounts for financial statement and federal
income tax purposes are primarily due to timing differences in recognizing gains and losses on investment transactions. Temporary differences
do not require reclassification. As of year end, permanent differences that resulted in reclassifications among the components of net
assets relate primarily to nondeductible expenses, taxable market discount, and taxes paid. Temporary and permanent differences have no
impact on a Fund’s net assets.
As of year end, the aggregate cost and the net unrealized appreciation/(depreciation)
of all investments for federal income tax purposes were as follows:
| |
|
Gross |
Gross |
Net Unrealized |
| |
|
Unrealized |
Unrealized |
Appreciation |
| Fund |
Tax Cost |
Appreciation |
(Depreciation) |
(Depreciation) |
| NIQ |
$160,904,006 |
$5,975,886 |
$(2,845,752) |
$3,130,134 |
For purposes of this disclosure, tax cost generally includes the
cost of portfolio investments as well as up-front fees or premiums exchanged on derivatives and any amounts unrealized for income statement
reporting but realized income and/or capital gains for tax reporting, if applicable.
As of year end, the components of accumulated earnings on a tax basis were as follows:
| |
Undistributed |
Undistributed |
Undistributed |
Unrealized |
|
Late-Year |
Other |
|
| |
Tax-Exempt |
Ordinary |
Long-Term |
Appreciation |
Capital Loss |
Loss |
Book-to-Tax |
|
| Fund |
Income1 |
Income |
Capital Gains |
(Depreciation) |
Carryforwards |
Deferrals |
Differences |
Total |
| NIQ |
$537,103 |
$17,467 |
$ — |
$3,130,134 |
$(20,353,941) |
$ — |
$(438,812) |
$(17,108,049) |
| 1 | | Undistributed tax-exempt
income (on a tax basis) has not been reduced for the dividend declared on May 1, 2023 and paid on June 1, 2023 |
38
The tax character of distributions paid was as follows:
| |
5/31/23 |
5/31/22 |
| |
|
|
Long-Term |
|
|
Long-Term |
| |
Tax-Exempt |
Ordinary |
Capital |
Tax-Exempt |
Ordinary |
Capital |
| Fund |
Income1 |
Income |
Gains |
Income |
Income |
Gains |
| NIQ |
$5,053,439 |
$22,372 |
$ — |
$6,417,932 |
$ — |
$ — |
1
The Fund designates these amounts paid during the period as Exempt Interest Dividends.
As of year end, the Fund had capital loss carryforwards, which will not expire:
| Fund |
Short-Term |
Long-Term |
Total |
| NIQ |
$11,640,008 |
$8,713,933 |
$20,353,941 |
7. Management Fees and Other Transactions with Affiliates
Management Fees
The Fund’s management fee compensates the Adviser for the
overall investment advisory and administrative services and general office facilities. The Sub-Adviser is compensated for its services
to the Fund from the management fees paid to the Adviser.
The Fund’s management fee consists of two components –
a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible
fund assets managed by the Adviser. This pricing structure enables the Fund’s shareholders to benefit from growth in the assets
within the Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, is calculated according
to the following schedule:
| Average Daily Managed Assets* |
Fund-Level Fee Rate |
| For the first $125 million |
0.3000% |
| For the next $125 million |
0.2875 |
| For the next $250 million |
0.2750 |
| For the next $500 million |
0.2625 |
| For the next $1 billion |
0.2500 |
| For the next $3 billion |
0.2250 |
| For managed assets over $5 billion |
0.2125 |
39
Notes to Financial Statements (continued)
The annual complex-level fee, payable monthly, is calculated by
multiplying the current complex-wide fee rate, determined according to the following schedule by the Fund’s daily managed assets:
| Complex-Level Eligible Asset Breakpoint Level* |
Effective Complex-Level Fee Rate at Breakpoint Level |
| $55 billion |
0.2000% |
| $56 billion |
0.1996 |
| $57 billion |
0.1989 |
| $60 billion |
0.1961 |
| $63 billion |
0.1931 |
| $66 billion |
0.1900 |
| $71 billion |
0.1851 |
| $76 billion |
0.1806 |
| $80 billion |
0.1773 |
| $91 billion |
0.1691 |
| $125 billion |
0.1599 |
| $200 billion |
0.1505 |
| $250 billion |
0.1469 |
| $300 billion |
0.1445 |
| * | | For the complex-level fees, managed assets include closed-end fund assets managed by the
Adviser that are attributable to certain types of leverage. For these purposes, leverage includes the funds’ use of preferred stock
and borrowings and certain investments in the residual interest certificates (also called inverse floating rate securities) in tender
option bond (TOB) trusts, including the portion of assets held by a TOB trust that has been effectively financed by the trust’s
issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for
determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets
of all Nuveen open-end and closed-end funds that constitute “eligible assets.” Eligible assets do not include assets attributable
to investments in other Nuveen funds or assets in excess of a determined amount (originally $2 billion) added to the Nuveen fund
complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011,
but do not include certain Nuveen funds that were reorganized into funds advised by an affiliate of the Adviser during the 2019 calendar
year. As of May 31, 2023, the complex-level fee for the Fund was 0.1597%. |
Other Transactions with Affiliates
The Fund is permitted to purchase or sell securities from or to
certain other funds or accounts managed by the Sub-Adviser (“Affiliated Entity”) under specified conditions outlined in procedures
adopted by the Board (“cross-trade”). These procedures have been designed to ensure that any cross-trade of securities by
the Fund from or to an Affiliated Entity by virtue of having a common investment adviser (or affiliated investment adviser), common officer
and/or common trustee complies with Rule 17a-7 under the 1940 Act. These transactions are effected at the current market price (as provided
by an independent pricing service) without incurring broker commissions.
During the current fiscal period, the Fund engaged in cross-trades pursuant to these procedures as follows:
| |
|
|
Realized |
| Fund |
Purchases |
Sales |
Gain (Loss) |
| NIQ |
$1,602,345 |
$1,626,770 |
$(103,577) |
8. Commitments and Contingencies
In the normal course of business, the Fund enters into a variety
of agreements that may expose the Fund to some risk of loss. These could include recourse arrangements for certain TOB Trusts, which are
described elsewhere in these Notes to Financial Statements. The risk of future loss arising from such agreements, while not quantifiable,
is expected to be remote. As of the end of the reporting period, the Fund did not have any unfunded commitments.
From time to time, the Fund may be a party to certain legal proceedings
in the ordinary course of business, including proceedings relating to the enforcement of the Fund’s rights under contracts. As of
the end of the reporting period, the Fund is not subject to any material legal proceedings.
9. Borrowing Arrangements
Committed Line of Credit
The Fund, along with certain other funds managed by the Adviser
(“Participating Funds”), have established a 364-day, $2.700 billion standby credit facility with a group of lenders, under
which the Participating Funds may borrow for temporary purposes (other than on-going leveraging for investment purposes). Each Participating
Fund is allocated a designated proportion of the facility’s capacity (and its associated costs, as described below) based upon a
multi-factor assessment of the likelihood and frequency of its need to draw on the facility, the size of the Fund and its anticipated
draws, and
40
the potential importance of such draws to the operations and well-being
of the Fund, relative to those of the other Funds. A Fund may effect draws on the facility in excess of its designated capacity if and
to the extent that other Participating Funds have undrawn capacity. The current credit facility was entered into on June 21, 2023 expiring
on June 19, 2024, replacing the previous facility, which expired June 2023.
The credit facility has the following terms: 0.15% per annum on
unused commitment amounts and a drawn interest rate equal to the higher of (a) OBFR (Overnight Bank Funding Rate) plus 1.20% per annum
or (b) the Fed Funds Effective Rate plus 1.20% per annum on amounts borrowed. The Participating Funds also incurred a 0.05% upfront fee
on the increased commitments from select lenders. Interest expense incurred by the Participating Funds, when applicable, is recognized
as a component of “Interest expense” on the Statement of Operations. Participating Funds paid administration, legal and arrangement
fees, which are recognized as a component of “Interest expense” on the Statement of Operations, and along with commitment
fees, have been allocated among such Participating Funds based upon the relative proportions of the facility’s aggregate capacity
reserved for them and other factors deemed relevant by the Adviser and the Board of each Participating Fund.
During the current fiscal period, the Fund did not utilize this
facility.
Inter-Fund Borrowing and Lending
The SEC has granted an exemptive order permitting registered open-end
and closed-end Nuveen funds to participate in an inter-fund lending facility whereby the Nuveen funds may directly lend to and borrow
money from each other for temporary purposes (e.g., to satisfy redemption requests or when a sale of securities “fails,” resulting
in an unanticipated cash shortfall) (the “Inter-Fund Program”). The closed-end Nuveen funds, including the Funds covered by
this shareholder report, will participate only as lenders, and not as borrowers, in the Inter-Fund Program because such closed-end funds
rarely, if ever, need to borrow cash to meet redemptions. The Inter-Fund Program is subject to a number of conditions, including,
among other things, the requirements that (1) no fund may borrow or lend money through the Inter-Fund Program unless it receives a more
favorable interest rate than is typically available from a bank or other financial institution for a comparable transaction; (2) no fund
may borrow on an unsecured basis through the Inter-Fund Program unless the fund’s outstanding borrowings from all sources immediately
after the inter-fund borrowing total 10% or less of its total assets; provided that if the borrowing fund has a secured borrowing outstanding
from any other lender, including but not limited to another fund, the inter-fund loan must be secured on at least an equal priority basis
with at least an equivalent percentage of collateral to loan value; (3) if a fund’s total outstanding borrowings immediately after
an inter-fund borrowing would be greater than 10% of its total assets, the fund may borrow through the inter-fund loan on a secured basis
only; (4) no fund may lend money if the loan would cause its aggregate outstanding loans through the Inter-Fund Program to exceed 15%
of its net assets at the time of the loan; (5) a fund’s inter-fund loans to any one fund shall not exceed 5% of the lending fund’s
net assets; (6) the duration of inter-fund loans will be limited to the time required to receive payment for securities sold, but in no
event more than seven days; and (7) each inter-fund loan may be called on one business day’s notice by a lending fund and may be
repaid on any day by a borrowing fund. In addition, a Nuveen fund may participate in the Inter-Fund Program only if and to the extent
that such participation is consistent with the fund’s investment objective and investment policies. The Board is responsible for
overseeing the Inter-Fund Program.
The limitations detailed above and the other conditions of the
SEC exemptive order permitting the Inter-Fund Program are designed to minimize the risks associated with Inter-Fund Program for both the
lending fund and the borrowing fund. However, no borrowing or lending activity is without risk. When a fund borrows money from another
fund, there is a risk that the loan could be called on one day’s notice or not renewed, in which case the fund may have to borrow
from a bank at a higher rate or take other actions to payoff such loan if an inter-fund loan is not available from another fund. Any delay
in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs.
During the current reporting period, the Fund did not enter into
any inter-fund loan activity.
10. Subsequent Events
The Fund 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.
41
Shareholder Update (Unaudited)
CURRENT INVESTMENT OBJECTIVES, INVESTMENT
POLICIES AND PRINCIPAL RISKS OF THE FUND
NUVEEN INTERMEDIATE DURATION QUALITY MUNICIPAL
INCOME FUND (NIQ)
The Board of Trustees of NIQ approved the liquidation of NIQ upon
NIQ’s originally scheduled termination date. Accordingly, effective June 30, 2023, and pursuant to NIQ’s Declaration of Trust,
dated December 11, 2012, NIQ ceased its investment operations, liquidated its portfolio, retired or redeemed its leverage facilities and
distributed its net assets to shareholders of record as of the date of termination.
CHANGES OCCURRING DURING THE PRIOR FISCAL YEAR
The following information in this annual report is a summary
of certain changes during the most recent fiscal year. This information may not reflect all of the changes that have occurred since you
purchased shares of a Fund.
During the most recent fiscal year, there have been no changes
to: (i) the Fund’s investment objectives and principal investment policies that have not been approved by shareholders, (ii) the
principal risks of the Fund, (iii) the portfolio managers of the Fund; (iv) a Fund’s charter or by-laws that would delay or prevent
a change of control of the Fund that have not been approved by shareholders except as follows:
Developments Regarding the Funds’ Control Share By-Law
On October 5, 2020, the Nuveen Intermediate Duration Quality Municipal
Term Fund (the “Fund”) and certain other closed-end funds in the Nuveen fund complex amended their by-laws. Among other things,
the amended by-laws included provisions pursuant to which, in summary, a shareholder who obtains beneficial ownership of common shares
in a Control Share Acquisition (as defined in the by-laws) shall have the same voting rights as other common shareholders only to the
extent authorized by the other disinterested shareholders (the “Control Share By-Law”). On January 14, 2021, a shareholder
of certain Nuveen closed-end funds filed a civil complaint in the U.S. District Court for the Southern District of New York (the “District
Court”) against certain Nuveen funds and their trustees, seeking a declaration that such funds’ Control Share By-Laws violate
the 1940 Act, rescission of such fund’s Control Share By-Laws and a permanent injunction against such funds applying the Control
Share By-Laws. On February 18, 2022, the District Court granted judgment in favor of the plaintiff’s claim for rescission of such
funds’ Control Share By-Laws and the plaintiff’s declaratory judgment claim, and declared that such funds’ Control Share
By-Laws violate Section 18(i) of the 1940 Act. Following review of the judgment of the District Court, on February 22, 2022, the Board
amended the Fund’s bylaws to provide that the Fund’s Control Share By-Law shall be of no force and effect for so long as the
judgment of the District Court is effective and that if the judgment of the District Court is reversed, overturned, vacated, stayed, or
otherwise nullified, the Fund’s Control Share By-Law will be automatically reinstated and apply to any beneficial owner of common
shares acquired in a Control Share Acquisition, regardless of whether such Control Share Acquisition occurs before or after such reinstatement,
for the duration of the stay or upon issuance of the mandate reversing, overturning, vacating or otherwise nullifying the judgment of
the District Court. On February 25, 2022, the Board and the Funds appealed the District Court’s decision to the U.S. Court of Appeals
for the Second Circuit.
42
Important Tax Information (Unaudited)
As required by the Internal Revenue Code and Treasury Regulations,
certain tax information, as detailed below, must be provided to shareholders. Shareholders are advised to consult their tax advisor with
respect to the tax implications of their investment. The amounts listed below may differ from the actual amounts reported on Form 1099-DIV,
which will be sent to shareholders shortly after calendar year end.
Long-Term Capital Gains
As of year end, the Fund designates the following distribution
amounts, or maximum amount allowable, as being from net long-term capital gains pursuant to Section 852(b)(3) of the Internal Revenue
Code:
| |
Net Long-Term |
| Fund |
Capital Gains |
| NIQ |
$ — |
43
Additional Fund Information (Unaudited)
| Board of Trustees |
|
|
|
|
|
| Jack
B. Evans |
William
C. Hunter |
Amy
B. R. Lancellotta |
Joanne
T. Medero |
Albin
F. Moschner |
John
K. Nelson |
| Mathew
Thornton III |
Terence
J. Toth |
Margaret
L. Wolff |
Robert
L. Young |
|
|
| Investment
Adviser |
Custodian |
Legal
Counsel |
Independent
Registered |
Transfer
Agent and |
| Nuveen
Fund Advisors, LLC |
State
Street Bank |
Chapman
and Cutler LLP |
Public
Accounting Firm |
Shareholder
Services |
| 333
West Wacker Drive |
&
Trust Company |
Chicago,
IL 60603 |
KPMG
LLP |
|
Computershare
Trust |
| Chicago,
IL 60606 |
One
Congress Street |
|
200
East Randolph Street |
Company,
N.A. |
| |
Suite
1 |
|
Chicago,
IL 60601 |
150
Royall Street |
| |
Boston,
MA 02114-2016 |
|
|
|
Canton,
MA 02021 |
| |
|
|
|
|
(800)
257-8787 |
Portfolio of Investments Information
The Fund is required to file its complete schedule of portfolio
holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year as an exhibit to its report
on Form N-PORT. You may obtain this information on the SEC’s website at http://www.sec.gov.
Nuveen Funds’ Proxy Voting Information
You may obtain (i) information regarding how each fund voted proxies
relating to portfolio securities held during the most recent twelve-month period ended June 30, without charge, upon request, by calling
Nuveen toll-free at (800) 257-8787 or on Nuveen’s website at www.nuveen.com and (ii) a description of the policies and procedures
that each fund used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen
toll free at (800) 257-8787. You may also obtain this information directly from the SEC. Visit the SEC on-line at http://www.sec.gov.
CEO Certification Disclosure
The Fund’s Chief Executive Officer (CEO) has submitted to
the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. The
Fund has filed with the SEC the certification of its CEO and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act.
Common Share Repurchases
The Fund intends to repurchase, through its open-market share repurchase
program, shares of its own common stock at such times and in such amounts as is deemed advisable. During the period covered by this report,
the Fund repurchased shares of its common stock, as shown in the accompanying table. Any future repurchases will be reported to shareholders
in the next annual or semi-annual report.
| |
NIQ |
| Common shares repurchased |
0 |
FINRA BrokerCheck
The Financial Industry Regulatory Authority (FINRA) provides information
regarding the disciplinary history of FINRA member firms and associated investment professionals. This information as well as an investor
brochure describing FINRA BrokerCheck is available to the public by calling the FINRA BrokerCheck Hotline number at (800) 289-9999 or
by visiting www.FINRA.org.
44
Glossary of Terms Used in this Report (Unaudited)
| ■ | | Average Annual
Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance
(including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being
considered. |
| ■ | | Effective Leverage:
Effective leverage is a fund’s effective economic leverage, and includes both regulatory leverage (see leverage) and the leverage
effects of certain derivative investments in a fund’s portfolio. Currently, the leverage effects of Tender Option Bond (TOB) inverse
floater holdings are included in effective leverage values, in addition to any regulatory leverage. |
| ■ | | Gross Domestic
Product (GDP): The total market value of all final goods and services produced in a country/region in a given year, equal to total
consumer, investment and government spending, plus the value of exports, minus the value of imports. |
| ■ | | Inverse Floating
Rate Securities: Inverse floating rate securities are the residual interest in a tender option bond (TOB) trust, sometimes referred
to as “inverse floaters”, are created by depositing a municipal bond, typically with a fixed interest rate, into a special
purpose trust. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third
parties in amounts equal to some fraction of the deposited bond’s par amount or market value, and (b) issues an inverse floating
rate certificate (sometimes referred to as an “inverse floater”) to an investor (such as a Fund) interested in gaining investment
exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term
rate paid to the floating rate certificates’ holders, and in most circumstances the holder of the inverse floater bears substantially
all of the underlying bond’s downside investment risk. The holder of the inverse floater typically also benefits disproportionately
from any potential appreciation of the underlying bond’s value. Hence, an inverse floater essentially represents an investment
in the underlying bond on a leveraged basis. |
| ■ | | Leverage: Leverage
is created whenever a fund has investment exposure (both reward and/or risk) equivalent to more than 100% of the investment capital. |
| ■ | | Net Asset Value
(NAV) Per Share: A fund’s Net Assets is equal to its total assets (securities, cash, accrued earnings and receivables) less
its total liabilities. NAV per share is equal to the fund’s Net Assets divided by its number of shares outstanding. |
| ■ | | Pre-Refunded
Bond/Pre-Refunding: Pre-Refunded Bond/Pre-Refunding, also known as advanced refundings or refinancings, is a procedure used by state
and local governments to refinance municipal bonds to lower interest expenses. The issuer sells new bonds with a lower yield and uses
the proceeds to buy U.S. Treasury securities, the interest from which is used to make payments on the higher yielding bonds. Because
of this collateral, pre-refunding generally raises a bond’s credit rating and thus its value. |
| ■ | | Regulatory Leverage:
Regulatory Leverage consists of preferred shares issued by or borrowings of a fund. Both of these are part of a fund’s capital
structure. Regulatory leverage is subject to asset coverage limits set in the Investment Company Act of 1940. |
45
Glossary of Terms Used in this Report (Unaudited) (continued)
| ■ | | Tax Obligation/General
Bonds: Bonds backed by the general revenues of an issuer, including taxes, where the issuer has the ability to increase taxes by
an unlimited amount to pay the bonds back. |
| ■ | | Tax Obligation/Limited
Bonds: Bonds backed by the general revenues of an issuer, including taxes, where the issuer doesn’t have the ability to increase
taxes by an unlimited amount to pay the bonds back. |
| ■ | | Total Investment
Exposure: Total investment exposure is a fund’s assets managed by the Adviser that are attributable to financial leverage.
For these purposes, financial leverage includes a fund’s use of preferred stock and borrowings and investments in the residual
interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets
held by a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities. |
| ■ | | Zero Coupon Bond:
A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Income to the holder of the
bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond
at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices
of bonds that pay interest periodically. |
46
Board Members &
Officers (Unaudited)
The management of the Funds, including general supervision of
the duties performed for the Funds by the Adviser, is the responsibility of the Board of Trustees of the Funds. None of the trustees who
are not “interested” persons of the Funds (referred to herein as “independent board members”) has ever been a
director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the trustees and officers of
the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each Trustee oversees
and other directorships they hold are set forth below.
| |
|
|
|
|
| Name, |
Position(s)
Held |
Year
First |
Principal |
Number |
| Year
of Birth - |
with
the Funds |
Elected
or |
Occupation(s) |
of
Portfolios |
| &
Address |
and
Term(1) |
Appointed |
Including
other |
in
Fund Complex |
| |
|
Directorships |
Overseen
by |
Board
Member |
| |
|
|
During
Past 5 Years |
|
| |
| Independent
Board Members: |
|
|
|
|
| |
| ■
TERENCE J. TOTH |
|
|
Formerly,
a Co-Founding Partner, Promus Capital (investment advisory |
|
| 1959 |
|
|
firm)
(2008-2017); formerly, Director, Quality Control Corporation |
|
| 333
W. Wacker Drive |
Chair
and |
2008 |
(manufacturing)
(2012-2021); Chair of the Board of the Kehrein |
138 |
| Chicago,
IL 6o6o6 |
Board
Member |
Class
II |
Center
for the Arts (philanthropy) (since 2021); member: Catalyst |
|
| |
|
|
Schools
of Chicago Board (since 2008) and Mather Foundation Board |
|
| |
|
|
(philanthropy)
(since 2012), formerly, Chair of its Investment |
|
| |
|
|
Committee
(2017-2022); formerly, Member, Chicago Fellowship |
|
| |
|
|
Board
(philanthropy) (2005-2016); formerly, Director, Fulcrum |
|
| |
|
|
IT
Services LLC (information technology services firm to government |
|
| |
|
|
entities)
(2010-2019); formerly, Director, LogicMark LLC (health |
|
| |
|
|
services)
(2012-2016); formerly, Director, Legal & General Investment |
|
| |
|
|
Management
America, Inc. (asset management) (2008-2013); |
|
| |
|
|
formerly,
CEO and President, Northern Trust Global Investments |
|
| |
|
|
(financial
services) (2004-2007); Executive Vice President, |
|
| |
|
|
Quantitative
Management & Securities Lending (2000-2004); prior |
|
| |
|
|
thereto,
various positions with Northern Trust Company (financial |
|
| |
|
|
services)
(since 1994); formerly, Member, Northern Trust Mutual |
|
| |
|
|
Funds
Board (2005-2007), Northern Trust Global Investments Board |
|
| |
|
|
(2004-2007),
Northern Trust Japan Board (2004-2007), Northern |
|
| |
|
|
Trust
Securities Inc. Board (2003- 2007) and Northern Trust Hong |
|
| |
|
|
Kong
Board (1997-2004). |
|
| |
| ■
JACK B. EVANS |
|
|
Chairman
(since 2019), formerly, President (1996-2019), The Hall-Perrine |
|
| 1948 |
|
|
Foundation,
(private philanthropic corporation); Life Trustee of Coe |
|
| 333
W. Wacker Drive |
Board
Member |
1999 |
College
and the Iowa College Foundation; formerly, Member and |
138 |
| Chicago,
IL 6o6o6 |
|
Class
III |
President
Pro-Tem of the Board of Regents for the State of Iowa |
|
| |
|
|
University
System (2007- 2013); Director and Chairman (2009-2021), |
|
| |
|
|
United
Fire Group, a publicly held company; Director, Public Member, |
|
| |
|
|
American
Board of Orthopaedic Surgery (2015-2020); Director |
|
| |
|
|
(2000-2004),
Alliant Energy; Director (1996-2015), The Gazette |
|
| |
|
|
Company
(media and publishing); Director (1997- 2003), Federal |
|
| |
|
|
Reserve
Bank of Chicago; President and Chief Operating Officer |
|
| |
|
|
(1972-1995),
SCI Financial Group, Inc., (regional financial services firm). |
|
| |
| ■
WILLIAM C. HUNTER |
|
|
Dean
Emeritus, formerly, Dean, Tippie College of Business, University of |
|
| 1948 |
|
|
Iowa
(2006-2012); Director of Wellmark, Inc. (since 2009); past |
|
| 333
W. Wacker Drive |
Board
Member |
2003 |
Director
(2005-2015), and past President (2010-2014) Beta Gamma Sigma, |
138 |
| Chicago,
IL 6o6o6 |
|
Class
I |
Inc.,
The International Business Honor Society; formerly, Director |
|
| |
|
|
(2004-2018)
of Xerox Corporation; formerly, Dean and Distinguished |
|
| |
|
|
Professor
of Finance, School of Business at the University of Connecticut |
|
| |
|
|
(2003-2006);
previously, Senior Vice President and Director of Research |
|
| |
|
|
at
the Federal Reserve Bank of Chicago (1995-2003); formerly, Director |
|
| |
|
|
(1997-2007),
Credit Research Center at Georgetown University. |
|
47
Board Members & Officers (Unaudited) (continued)
| |
|
|
|
|
| Name, |
Position(s)
Held |
Year
First |
Principal |
Number |
| Year
of Birth |
with
the Funds |
Elected
or |
Occupation(s) |
of
Portfolios |
| &
Address |
|
Appointed |
Including
other |
in
Fund Complex |
| |
|
and
Term(1) |
Directorships |
Overseen
by |
| |
|
|
During
Past 5 Years |
Board
Member |
| |
| Independent
Board Members (continued): |
|
|
|
| |
| ■
AMY B. R. LANCELLOTTA |
|
|
Formerly,
Managing Director, Independent Directors Council (IDC) |
|
| 1959 |
|
|
(supports
the fund independent director community and is part of the |
|
| 333
W. Wacker Drive |
Board
Member |
2021 |
Investment
Company Institute (ICI), which represents regulated |
138 |
| Chicago,
IL 6o6o6 |
|
Class
II |
investment
companies) (2006-2019); formerly, various positions with |
|
| |
|
|
ICI
(1989-2006); Member of the Board of Directors, Jewish Coalition |
|
| |
|
|
Against
Domestic Abuse (JCADA) (since 2020). |
|
| |
| ■
JOANNE T. MEDERO |
|
|
Formerly,
Managing Director, Government Relations and Public Policy |
|
| 1954 |
|
|
(2009-2020)
and Senior Advisor to the Vice Chairman (2018-2020), |
|
| 333
W. Wacker Drive |
Board
Member |
2021 |
BlackRock,
Inc. (global investment management firm); formerly, |
138 |
| Chicago,
IL 6o6o6 |
|
Class
III |
Managing
(Director, Global Head of Government Relations and Public |
|
| |
|
|
Policy,
Barclays Group (IBIM) (investment banking, investment |
|
| |
|
|
management
and wealth management businesses) (2006-2009); |
|
| |
|
|
formerly,
Managing Director, Global General Counsel and Corporate |
|
| |
|
|
Secretary,
Barclays Global Investors (global investment management |
|
| |
|
|
firm)
(1996-2006); formerly, Partner, Orrick, Herrington & Sutcliffe LLP |
|
| |
|
|
(law
firm) (1993-1995); formerly, General Counsel, Commodity Futures |
|
| |
|
|
Trading
Commission (government agency overseeing U.S. derivatives |
|
| |
|
|
markets)
(1989-1993); formerly, Deputy Associate Director/Associate |
|
| |
|
|
Director
for Legal and Financial Affairs, Office of Presidential Personnel, |
|
| |
|
|
The
White House (1986-1989); Member of the Board of Directors, |
|
| |
|
|
Baltic-American
Freedom Foundation (seeks to provide opportunities |
|
| |
|
|
for
citizens of the Baltic states to gain education and professional |
|
| |
|
|
development
through exchanges in the U.S.) (since 2019). |
|
| |
| ■
ALBIN F. MOSCHNER |
|
|
Founder
and Chief Executive Officer, Northcroft Partners, LLC, |
|
| 1952 |
|
|
(management
consulting) (since 2012); formerly, Chairman (2019), and |
|
| 333
W. Wacker Drive |
Board
Member |
2016 |
Director
(2012-2019), USA Technologies, Inc., (provider of solutions |
138 |
| Chicago,
IL 6o6o6 |
|
Class
III |
and
services to facilitate electronic payment transactions); formerly, |
|
| |
|
|
Director,
Wintrust Financial Corporation (1996-2016); previously, |
|
| |
|
|
held
positions at Leap Wireless International, Inc. (consumer wireless |
|
| |
|
|
services),
including Consultant (2011-2012), Chief Operating Officer |
|
| |
|
|
(2008-2011),
and Chief Marketing Officer (2004-2008); formerly, |
|
| |
|
|
President,
Verizon Card Services division of Verizon Communications, |
|
| |
|
|
Inc.
(2000-2003); formerly, President, One Point Services at One Point |
|
| |
|
|
Communications
(telecommunication services) (1999-2000); formerly, Vice |
|
| |
|
|
Chairman
of the Board, Diba, Incorporated (internet technology provider) |
|
| |
|
|
(1996-1997);
formerly, various executive positions (1991-1996) including |
|
| |
|
|
Chief
Executive Officer (1995-1996) of Zenith Electronics Corporation |
|
| |
|
|
(consumer
electronics). |
|
| |
| ■
JOHN K. NELSON |
|
|
Member
of Board of Directors of Core12 LLC. (private firm which |
|
| 1962 |
|
|
develops
branding, marketing and communications strategies for |
|
| 333
W. Wacker Drive |
Board
Member |
2013 |
clients)
(since 2008); served on The President’s Council of Fordham |
138 |
| Chicago,
IL 6o6o6 |
|
Class
II |
University
(2010-2019) and previously a Director of the Curran Center |
|
| |
|
|
for
Catholic American Studies (2009-2018); formerly, senior external |
|
| |
|
|
advisor
to the Financial Services practice of Deloitte Consulting LLP. |
|
| |
|
|
(2012-2014);
former Chair of the Board of Trustees of Marian University |
|
| |
|
|
(2010-2014
as trustee, 2011-2014 as Chair); formerly Chief Executive |
|
| |
|
|
Officer
of ABN AMRO Bank N.V., North America, and Global Head of |
|
| |
|
|
the
Financial Markets Division (2007-2008), with various executive |
|
| |
|
|
leadership
roles in ABN AMRO Bank N.V. between 1996 and 2007. |
|
48
| Name, |
Position(s)
Held |
Year
First |
Principal |
Number |
| Year
of Birth |
with
the Funds |
Elected
or |
Occupation(s) |
of
Portfolios |
| &
Address |
|
Appointed |
Including
other |
in
Fund Complex |
| |
|
and
Term(1) |
Directorships |
Overseen
by |
| |
|
|
During
Past 5 Years |
Board
Member |
| |
| Independent
Board Members (continued): |
|
|
|
| |
| ■
MATTHEW THORNTON III |
|
|
Formerly,
Executive Vice President and Chief Operating Officer (2018-2019), |
|
| 1958 |
|
|
FedEx
Freight Corporation, a subsidiary of FedEx Corporation (FedEx) |
|
| 333
W. Wacker Drive |
Board
Member |
2020 |
(provider
of transportation, e-commerce and business services through |
138 |
| Chicago,
IL 6o6o6 |
|
Class
III |
its
portfolio of companies); formerly, Senior Vice President, U.S. |
|
| |
|
|
Operations
(2006-2018), Federal Express Corporation, a subsidiary of |
|
| |
|
|
FedEx;
formerly Member of the Board of Directors (2012-2018), Safe Kids |
|
| |
|
|
Worldwide
(a non-profit organization dedicated to preventing childhood |
|
| |
|
|
injuries).
Member of the Board of Directors (since 2014), The |
|
| |
|
|
Sherwin-Williams
Company (develops, manufactures, distributes and |
|
| |
|
|
sells
paints, coatings and related products); Director (since 2020), |
|
| |
|
|
Crown
Castle International (provider of communications infrastructure). |
|
| |
| ■
MARGARET L. WOLFF |
|
|
Formerly,
member of the Board of Directors (2013-2017) of Travelers |
|
| 1955 |
|
|
Insurance
Company of Canada and The Dominion of Canada General |
|
| 333
W. Wacker Drive |
Board
Member |
2016 |
Insurance
Company (each, a part of Travelers Canada, the Canadian |
138 |
| Chicago,
IL 6o6o6 |
|
Class
I |
operation
of The Travelers Companies, Inc.); formerly, Of Counsel, |
|
| |
|
|
Skadden,
Arps, Slate, Meagher & Flom LLP (Mergers & Acquisitions |
|
| |
|
|
Group)
(legal services) (2005-2014); Member of the Board of Trustees |
|
| |
|
|
of
New York-Presbyterian Hospital (since 2005); Member (since 2004) |
|
| |
|
|
formerly,
Chair (2015-2022) of the Board of Trustees of The John A. |
|
| |
|
|
Hartford
Foundation (a philanthropy dedicated to improving the care of |
|
| |
|
|
older
adults); formerly, Member (2005-2015) and Vice Chair (2011-2015) |
|
| |
|
|
of
the Board of Trustees of Mt. Holyoke College. |
|
| |
| ■
ROBERT L. YOUNG(2) |
|
|
Formerly,
Chief Operating Officer and Director, J.P. Morgan Investment |
|
| 1963 |
|
2017 |
Management
Inc. (financial services) (2010-2016); formerly, President |
|
| 333
W. Wacker Drive |
Board
Member |
Class
I or |
and
Principal Executive Officer (2013-2016), and Senior Vice President |
138 |
| Chicago,
IL 6o6o6 |
|
Class
II |
and
Chief Operating Officer (2005-2010), of J.P.Morgan Funds; formerly, |
|
| |
|
|
Director
and various officer positions for J.P. Morgan Investment |
|
| |
|
|
Management
Inc. (formerly, JPMorgan Funds Management, Inc. and |
|
| |
|
|
formerly,
One Group Administrative Services) and JPMorgan Distribution |
|
| |
|
|
Services,
Inc. (financial services) (formerly, One Group Dealer Services, |
|
| |
|
|
Inc.)
(1999-2017). |
|
49
Board Members & Officers (Unaudited) (continued)
| Name, |
Position(s)
Held |
Year
First |
Principal |
| Year
of Birth |
with
the Funds |
Elected
or |
Occupation(s) |
| &
Address |
|
Appointed(3) |
During
Past 5 Years |
| |
| Officers
of the Funds: |
|
|
|
| |
| ■
DAVID J. LAMB |
|
|
Managing
Director of Nuveen Fund Advisors, LLC (since 2019); Senior Managing Director |
| 1963 |
Chief |
|
(since
2021), formerly, Managing Director (2020-2021) of Nuveen Securities, LLC; Senior |
| 333
W. Wacker Drive |
Administrative |
2015 |
Managing
Director (since 2021), formerly, Managing Director (2017-2021), Senior Vice President |
| Chicago,
IL 6o6o6 |
Officer |
|
of
Nuveen (2006-2017). |
| |
| ■
BRETT E. BLACK |
|
|
Managing
Director of Nuveen (since 2022); formerly, Vice President (2014-2022), Chief |
| 1972 |
Vice
President |
|
Compliance
Officer (2017-2022); Deputy Chief Compliance Officer (2014-2017) of |
| 333
W. Wacker Drive |
and
Chief |
2022 |
BMO
Funds, Inc. |
| Chicago,
IL 6o6o6 |
Compliance |
|
|
| |
Officer |
|
|
| |
| ■
MARK J. CZARNIECKI |
|
|
Managing
Director (since 2022), formerly, Vice President (2016-2022), and Assistant Secretary |
| 1979 |
Vice
President |
|
(since
2016) of Nuveen Securities, LLC; Managing Director (since 2022), formerly, Vice President |
| 901
Marquette Avenue |
and
Assistant |
2013 |
(2017-2022)
and Assistant Secretary (since 2017) of Nuveen Fund Advisors, LLC; Managing Director |
| Minneapolis,
MN 55402 |
Secretary |
|
and
Associate General Counsel (since January 2022), formerly, Vice President and Associate |
| |
|
|
General
Counsel of Nuveen (2013-2021); Managing Director (since 2022), formerly, Vice President |
| |
|
|
(2018-2022),
Assistant Secretary and Associate General Counsel (since 2018) of Nuveen Asset |
| |
|
|
Management,
LLC. |
| |
| ■
DIANA R. GONZALEZ |
|
|
Vice
President and Assistant Secretary of Nuveen Fund Advisors, LLC (since 2017); Vice President |
| 1978 |
Vice
President |
|
and
Associate General Counsel and Assistant Secretary of Nuveen Asset Management, LLC |
| 8500
Andrew Carnegie Blvd. |
and
Assistant |
2017 |
(since
2022); Vice President and Associate General Counsel of Nuveen (since 2017); |
| Charlotte,
NC 28262 |
Secretary |
|
formerly,
Associate General Counsel of Jackson National Asset Management (2012-2017). |
| |
| ■
NATHANIEL T. JONES |
|
|
Senior
Managing Director (since 2021), formerly, Managing Director (2017-2021), Senior Vice |
| 1979 |
|
|
President
(2016-2017) of Nuveen; Managing Director (since 2015) of Nuveen Fund Advisors, |
| 333
W. Wacker Drive |
Vice
President |
2016 |
LLC;
Chartered Financial Analyst. |
| Chicago,
IL 6o6o6 |
and
Treasurer |
|
|
| |
| ■
TINA M. LAZAR |
|
|
Managing
Director (since 2017), formerly, Senior Vice President (2014-2017) of |
| 1961 |
|
|
Nuveen
Securities, LLC. |
| 333
W. Wacker Drive |
Vice
President |
2002 |
|
| Chicago,
IL 6o6o6 |
|
|
|
| |
| ■
BRIAN J. LOCKHART |
|
|
Managing
Director (since 2019) of Nuveen Fund Advisors, LLC; Senior Managing Director (since |
| 1974 |
|
|
2021),
formerly, Managing Director (2017-2021), Vice President (2010-2017) of Nuveen; Head of |
| 333
W. Wacker Drive |
Vice
President |
2019 |
Investment
Oversight (since 2017), formerly, Team Leader of Manager Oversight (2015-2017); |
| Chicago,
IL 6o6o6 |
|
|
Chartered
Financial Analyst and Certified Financial Risk Manager. |
| |
| ■
JOHN M. MCCANN |
|
|
Managing
Director (since 2021), General Counsel and Secretary (since 2023), formerly, Assistant |
| 1975 |
|
|
Secretary
(2021-2023), of Nuveen Fund Advisors, LLC; Managing Director, Associate General |
| 8500
Andrew Carnegie Blvd. |
Vice
President |
2022 |
Counsel
and Assistant Secretary of Nuveen Asset Management, LLC (since 2021); Managing Director |
| Charlotte,
NC 28262 |
and
Assistant |
|
(since
2021) and Assistant Secretary (since 2016) of TIAA SMA Strategies LLC; Managing |
| |
Secretary |
|
Director
(since 2019, formerly, Vice President and Director), Associate General Counsel and |
| |
|
|
Assistant
Secretary of College Retirement Equities Fund, TIAA Separate Account VA-1, TIAA-CREF |
| |
|
|
Funds
and TIAA-CREF Life Funds; Managing Director (since 2018), formerly, Vice President and |
| |
|
|
Director,
Associate General Counsel and Assistant Secretary of Teachers Insurance and Annuity |
| |
|
|
Association
of America, Teacher Advisors LLC and TIAA-CREF Investment Management, LLC; Vice |
| |
|
|
President
(since 2017), Associate General Counsel and Assistant Secretary (since 2011) of Nuveen |
| |
|
|
Alternative
Advisors LLC; General Counsel and Assistant Secretary of Covariance Capital |
| |
|
|
Management,
Inc. (2014-2017). |
50
| Name, |
Position(s)
Held |
Year
First |
Principal |
| Year
of Birth |
with
the Funds |
Elected
or |
Occupation(s) |
| &
Address |
|
Appointed(3) |
During
Past 5 Years |
| |
| Officers
of the Funds (continued): |
|
|
| ■
KEVIN J. MCCARTHY |
|
|
Executive
Vice President (since 2022) and Secretary and General Counsel (since 2016) of Nuveen |
| 1966 |
Vice
President |
|
Investments,
Inc., formerly, Senior Managing Director (2017-2022); Executive Vice President |
| 333
W. Wacker Drive |
and
Assistant |
2007 |
(since
2023) and Assistant Secretary (since 2008) of Nuveen Securities, LLC, formerly Senior |
| Chicago,
IL 6o6o6 |
Secretary |
|
Managing
Director (2017-2023); Executive Vice President and Assistant Secretary (since 2023) of |
| |
|
|
Nuveen
Fund Advisors, LLC, formerly, Senior Managing Director (2017-2023), Secretary (2016- |
| |
|
|
2023)
and Co-General Counsel (2011-2020); Executive Vice President (since 2023) and Secretary |
| |
|
|
(since
2016) of Nuveen Asset Management, LLC, formerly, Senior Managing Director (2017-2023) |
| |
|
|
and
Associate General Counsel (2011-2020); formerly, Vice President (2007-2021) and Secretary |
| |
|
|
(2016-2021),
of NWQ Investment Management Company, LLC and Santa Barbara Asset |
| |
|
|
Management,
LLC; Vice President and Secretary of Winslow Capital Management, LLC (since 2010); |
| |
|
|
Executive
Vice President (since 2023) and Secretary (since 2016) of Nuveen Alternative |
| |
|
|
Investments,
LLC, formerly Senior Managing Director (2017-2023). |
| |
| ■
JON SCOTT MEISSNER |
|
|
Managing
Director, Mutual Fund Tax and Expense Administration (since 2022), formerly, Managing |
| 1973 |
Vice
President |
|
Director
of Mutual Fund Tax and Financial Reporting groups (2017-2022), at Nuveen; Managing |
| 8500
Andrew Carnegie Blvd. |
and
Assistant |
2019 |
Director
of Nuveen Fund Advisors, LLC (since 2019); Managing Director (since 2021), formerly, |
| Charlotte,
NC 28262 |
Secretary |
|
Senior
Director (2016-2021), of Teachers Advisors, LLC and TIAA-CREF Investment Management, |
| |
|
|
LLC;
Managing Director, Mutual Fund Tax and Expense Administration (since 2022), formerly, |
| |
|
|
Senior
Director Mutual Fund Taxation (2015-2022), to the TIAA-CREF Funds, the TIAA-CREF Life |
| |
|
|
Funds,
the TIAA Separate Account VA-1 and the CREF Accounts; has held various positions with |
| |
|
|
TIAA
since 2004. |
| |
| ■
WILLIAM A. SIFFERMANN |
|
|
Managing
Director (since 2017), formerly Senior Vice President (2016-2017) of Nuveen. |
| 1975 |
|
|
|
| 333
W. Wacker Drive |
Vice
President |
2017 |
|
| Chicago,
IL 6o6o6 |
|
|
|
| |
| ■
TREY S. STENERSEN |
|
|
Senior
Managing Director of Teacher Advisors LLC and TIAA-CREF Investment Management, LLC |
| 1965 |
|
|
(since
2018); Senior Managing Director (since 2019) and Chief Risk Officer (since 2022), formerly |
| 8500
Andrew Carnegie Blvd. |
Vice
President |
2022 |
Head
of Investment Risk Management (2017-2022) of Nuveen; Senior Managing Director (since |
| Charlotte,
NC 28262 |
|
|
2018)
of Nuveen Alternative Advisors LLC. |
| |
| ■
E. SCOTT WICKERHAM |
|
|
Senior
Managing Director, Head of Public Investment Finance at Nuveen (since 2019), formerly, |
| 1973 |
Vice
President |
|
Managing
Director; Senior Managing Director (since 2019) of Nuveen Fund Advisors, LLC; |
| 8500
Andrew Carnegie Blvd. |
and
Controller |
2019 |
Senior
Managing Director (since 2022) of Nuveen Asset Management, LLC; Principal Financial |
| Charlotte,
NC 28262 |
|
|
Officer,
Principal Accounting Officer and Treasurer (since 2017) of the TIAA-CREF Funds, the TIAA- |
| |
|
|
CREF
Life Funds, the TIAA Separate Account VA-1 and Principal Financial Officer, Principal |
| |
|
|
Accounting
Officer (since 2020) and Treasurer (since 2017) of the CREF Accounts; has held various |
| |
|
|
positions
with TIAA since 2006. |
| |
| ■
MARK L. WINGET |
|
|
Vice
President and Assistant Secretary of Nuveen Securities, LLC (since 2008), and Nuveen Fund |
| 1968 |
Vice
President |
|
Advisors,
LLC (since 2019); Vice President, Associate General Counsel and Assistant Secretary of |
| 333
W. Wacker Drive |
and
Secretary |
2008 |
Nuveen
Asset Management, LLC (since 2020); Vice President (since 2010) and Associate General |
| Chicago,
IL 60606 |
|
|
Counsel
(since 2019) of Nuveen. |
51
Board Members & Officers (Unaudited) (continued)
| Name, |
Position(s)
Held |
Year
First |
Principal |
| Year
of Birth |
with
the Funds |
Elected
or |
Occupation(s) |
| &
Address |
|
Appointed(3) |
During
Past 5 Years |
| |
| Officers
of the Funds (continued): |
|
|
| |
|
RACHAEL ZUFALL |
|
|
Managing
Director and Assistant Secretary (since 2023) of Nuveen Fund Advisors, LLC; Managing |
| 1973 |
Vice
President |
|
Director
(since 2017), Associate General Counsel and Assistant Secretary (since 2014) of the |
| 8500
Andrew Carnegie Blvd. |
and
Assistant |
2022 |
CREF
Accounts, TIAA Separate Account VA-1, TIAA- CREF Funds and TIAA-CREF Life Funds; |
| Charlotte,
NC 28262 |
Secretary |
|
Managing
Director (since 2017), Associate General Counsel and Assistant Secretary (since 2011) |
| |
|
|
of
Teacher Advisors, LLC and TIAA-CREF Investment Management, LLC; Managing Director of |
| |
|
|
Nuveen,
LLC and of TIAA (since 2017). |
| (1) | | The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with
each being elected to serve until the third succeeding annual shareholders’ meeting subsequent to its election or thereafter in
each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred
Shares, when applicable, to serve until the next annual shareholders’ meeting subsequent to its election or thereafter in each
case when its respective successors are duly elected or appointed. The year first elected or appointed represents the year in which the
board member was first elected or appointed to any fund in the Nuveen complex. |
| (2) | | Robert L. Young has been reclassified as a Class I Board Member for those Funds that have
held their 2023 annual shareholder meetings and will be re-designated as a Class I Board Member at the remaining 2023 annual shareholder
meetings. |
| (3) | | Officers serve indefinite terms until their successor has been duly elected and qualified,
their death or their resignation or removal. The year first elected or appointed represents the year in which the Officer was first elected
or appointed to any fund in the Nuveen Complex. |
52
Notes
53
Notes
54
Notes
55
Nuveen:
Serving Investors for Generations
Since 1898, financial professionals and their clients have relied on Nuveen
to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range
of high quality solutions designed to be integral components of a well-diversified core portfolio.
Focused on meeting investor needs.
Nuveen is the investment manager of TIAA. We have grown into one of the
world’s premier global asset managers, with specialist knowledge across all major asset classes and particular strength in solutions
that provide income for investors and that draw on our expertise in alternatives and responsible investing. Nuveen is driven not only
by the independent investment processes across the firm, but also the insights, risk management, analytics and other tools and resources
that a truly world-class platform provides. As a global asset manager, our mission is to work in partnership with our clients to create
solutions which help them secure their financial future.
Find out how we can help you.
To learn more about how the products and services of Nuveen may be able
to help you meet your financial goals, talk to your financial professional, or call us at (800) 257-8787. Please read the information
provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and
expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information.
To obtain a prospectus, please contact your securities representative or Nuveen, 333 W. Wacker Dr., Chicago, IL 60606. Please read the
prospectus carefully before you invest or send money.
Learn more about
Nuveen Funds at: www.nuveen.com/closed-end-funds
Not FDIC Insured | May Lose Value | No Bank Guarantee
Nuveen Securities, LLC member of FINRA and SIPC | 333 West Wacker
Drive Chicago, IL 60606 | www.nuveen.com
EAN-B-0523P 2956504-INV-Y-07/24
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted
a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting
officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period
covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/fund-governance. (To view the code,
click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
As of the end of the period
covered by this report, the registrant’s Board of Directors or Trustees (“Board”) determined that the registrant has
at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant’s
audit committee financial experts are Jack B. Evans, Albin F. Moschner, John K. Nelson and Robert L. Young, who are “independent”
for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly
President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment
adviser (“SCI”). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial
Officer (the “CFO”) and actively supervised the CFO’s preparation of financial statements and other filings with various
regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI’s financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies.
At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans
also formerly chaired the audit committee of the Federal Reserve Bank of Chicago.
Mr. Moschner is a consultant
in the wireless industry and, in July 2012, founded Northcroft Partners, LLC, a management consulting firm that provides operational,
management and governance solutions. Prior to founding Northcroft Partners, LLC, Mr. Moschner held various positions at Leap Wireless
International, Inc., a provider of wireless services, where he was as a consultant from February 2011 to July 2012, Chief Operating Officer
from July 2008 to February 2011, and Chief Marketing Officer from August 2004 to June 2008. Before he joined Leap Wireless International,
Inc., Mr. Moschner was President of the Verizon Card Services division of Verizon Communications, Inc. from 2000 to 2003, and President
of One Point Services at One Point Communications from 1999 to 2000. Mr. Moschner also served at Zenith Electronics Corporation as Director,
President and Chief Executive Officer from 1995 to 1996, and as Director, President and Chief Operating Officer from 1994 to 1995.
Mr. Nelson is on the Board
of Directors of Core12, LLC. (since 2008), a private firm which develops branding, marketing, and communications strategies for clients.
Mr. Nelson has extensive experience in global banking and markets, having served in several senior executive positions with ABN AMRO Holdings
N.V. and its affiliated entities and predecessors, including LaSalle Bank Corporation from 1996 to 2008, ultimately serving as Chief Executive
Officer of ABN AMRO N.V. North America. During his tenure at the bank, he also served as Global Head of its Financial Markets Division,
which encompassed the bank’s Currency, Commodity, Fixed Income, Emerging Markets, and Derivatives businesses. He was a member of
the Foreign Exchange Committee of the Federal Reserve Bank of the United States and during his tenure with ABN AMRO served as the bank’s
representative on various committees of The Bank of Canada, European Central Bank, and The Bank of England. Mr. Nelson previously served
as a senior, external advisor to the financial services practice of Deloitte Consulting LLP. (2012-2014).
Mr. Young has more
than 30 years of experience in the investment management industry. From 1997 to 2017, he held various positions with J.P. Morgan Investment
Management Inc. (“J.P. Morgan Investment”) and its affiliates (collectively, “J.P. Morgan”). Most recently, he
served as Chief Operating Officer and Director of J.P. Morgan Investment (from 2010 to 2016) and as President and Principal Executive
Officer of the J.P. Morgan Funds (from 2013 to 2016). As Chief Operating Officer of J.P. Morgan Investment, Mr. Young led service,
administration and business platform support activities for J.P. Morgan’s domestic retail mutual fund and institutional commingled
and separate account businesses, and co-led these activities for J.P. Morgan’s global retail and institutional investment
management businesses. As President of the J.P. Morgan Funds, Mr. Young interacted with various service providers to these funds,
facilitated the relationship between such funds and their boards, and was directly involved in establishing board agendas, addressing
regulatory matters, and establishing policies and procedures. Before joining J.P. Morgan, Mr. Young, a former Certified Public Accountant
(CPA), was a Senior Manager (Audit) with Deloitte & Touche LLP (formerly, Touche Ross LLP), where he was employed from 1985
to 1996. During his tenure there, he actively participated in creating, and ultimately led, the firm’s midwestern mutual fund practice.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Intermediate Duration Quality Municipal Term Fund
The following tables show the amount of fees that KPMG LLP, the Fund’s
auditor, billed to the Fund during the Fund’s last two full fiscal years. For engagements with KPMG LLP the Audit Committee approved
in advance all audit services and non-audit services that KPMG LLP provided to the Fund, except for those non-audit services that were
subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the “pre-approval exception”). The pre-approval exception
for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services
if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund
to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit
services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee
(or its delegate) approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities
to its Chair (or, in her absence, any other member of the Audit Committee).
SERVICES THAT THE FUND’S AUDITOR BILLED TO THE
FUND
| |
Audit
Fees Billed |
Audit-Related
Fees |
Tax
Fees |
All
Other Fees |
| Fiscal
Year Ended |
to
Fund 1 |
Billed
to Fund 2 |
Billed
to Fund 3 |
Billed
to Fund 4 |
| May
31, 2023 |
$ 33,000 |
$ 0 |
$ 0 |
$ 0 |
| |
|
|
|
|
| Percentage approved |
0% |
0% |
0% |
0% |
| pursuant to |
|
|
|
|
| pre-approval |
|
|
|
|
| exception |
|
|
|
|
| |
|
|
|
|
| May
31, 2022 |
$ 30,150 |
$ 0 |
$ 0 |
$ 0 |
| |
|
|
|
|
| Percentage approved |
0% |
0% |
0% |
0% |
| pursuant to |
|
|
|
|
| pre-approval |
|
|
|
|
| exception |
|
|
|
|
| 1
"Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial
statements and services provided in connection with statutory and regulatory filings or engagements. |
|
| |
| 2
"Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance
of the audit or review of financial statements that are not reported under "Audit Fees". These fees include offerings related
to the Fund's common shares and leverage. |
|
| |
| 3
"Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning.
These fees include: all global withholding tax services; excise and state tax reviews; capital gain, tax equalization and taxable
basis calculation performed by the principal accountant. |
|
| |
| 4
"All Other Fees" are the aggregate fees billed for products and services other than "Audit Fees", "Audit-Related
Fees" and "Tax Fees". These fees represent all “Agreed-Upon Procedures” engagements pertaining to
the Fund's use of leverage. |
|
SERVICES THAT THE FUND’S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by KPMG LLP to Nuveen
Fund Advisors, LLC (formerly Nuveen Fund Advisors, Inc.) (the “Adviser”), and any entity controlling, controlled by or under
common control with the Adviser that provides ongoing services to the Fund (“Affiliated Fund Service Provider”), for engagements
directly related to the Fund’s operations and financial reporting, during the Fund’s last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit,
review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid to KPMG LLP by the Fund, the Adviser and Affiliated Fund Service Providers during
the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize
the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s
attention, and the Committee (or its delegate) approves the services before the Fund’s audit is completed.
| |
Audit-Related
Fees |
Tax
Fees Billed to |
All
Other Fees |
| |
Billed
to Adviser and |
Adviser
and |
Billed
to Adviser |
| |
Affiliated
Fund |
Affiliated
Fund |
and Affiliated
Fund |
| Fiscal Year Ended |
Service
Providers |
Service
Providers |
Service
Providers |
| May
31, 2023 |
$ 0 |
$ 0 |
$ 0 |
| |
|
|
|
| Percentage approved |
0% |
0% |
0% |
| pursuant to |
|
|
|
| pre-approval |
|
|
|
| exception |
|
|
|
| May
31, 2022 |
$ 0 |
$ 0 |
$ 0 |
| |
|
|
|
| Percentage approved |
0% |
0% |
0% |
| pursuant to |
|
|
|
| pre-approval |
|
|
|
| exception |
|
|
|
NON-AUDIT SERVICES
The following table shows the amount of fees that KPMG LLP billed during
the Fund’s last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non- audit services
that KPMG LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund’s
operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested
and received information from KPMG LLP about any non-audit services that KPMG LLP rendered during the Fund’s last fiscal year to
the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating KPMG LLP’s independence.
| |
|
Total
Non-Audit Fees |
|
|
| |
|
billed
to Adviser and |
|
|
| |
|
Affiliated
Fund Service |
Total
Non-Audit Fees |
|
| |
|
Providers
(engagements |
billed
to Adviser and |
|
| |
|
related
directly to the |
Affiliated
Fund Service |
|
| |
Total
Non-Audit Fees |
operations
and financial |
Providers
(all other |
|
| Fiscal
Year Ended |
Billed
to Fund |
reporting
of the Fund) |
engagements) |
Total |
| May 31, 2023 |
$ 0 |
$ 0 |
$ 0 |
$ 0 |
| May 31, 2022 |
$ 0 |
$ 0 |
$ 0 |
$ 0 |
| "Non-Audit
Fees billed to Fund" for both fiscal year ends represent "Tax Fees" and "All Other Fees" billed to Fund
in their respective amounts
from the previous table. |
|
| |
| Less
than 50 percent of the hours expended on the principal accountant's engagement to audit the registrant's financial statements for
the most recent fiscal
year were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. |
|
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund by the Fund’s independent accountants and (ii) all
audit and non-audit services to be performed by the Fund’s independent accountants for the Affiliated Fund Service Providers with
respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants
for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will
be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee
chair for her verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii)
reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant’s Board has a separately designated Audit Committee
established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). As of
the end of the period covered by this report the members of the audit committee are Jack B. Evans, Albin F. Moschner, John K. Nelson, Chair, Margaret L. Wolff, and Robert L. Young.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Nuveen Fund Advisors, LLC is the registrant’s investment adviser (referred to herein as the “Adviser”). The Adviser is responsible for the on-going monitoring of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative services. The Adviser has engaged Nuveen Asset Management, LLC (“Sub-Adviser”) as Sub-Adviser to provide discretionary investment advisory services. As part of these services, the Adviser has delegated to the Sub-Adviser the full responsibility for proxy voting on securities held in the registrant’s portfolio and related duties in accordance with the Sub-Adviser’s policies and procedures. The Adviser periodically monitors the Sub-Adviser’s voting to ensure that it is carrying out its duties. The Sub-Adviser’s proxy voting policies and procedures are attached to this filing as an exhibit and incorporated herein by reference.
ITEM 8. PORTFOLIO MANAGER OF CLOSED-END MANAGEMENT
INVESTMENT COMPANIES.
Nuveen Fund Advisors, LLC is the registrant’s
investment adviser (also referred to as the “Adviser”). The Adviser is responsible for the selection and on-going monitoring
of the Fund’s investment portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and administrative
services. The Adviser has engaged Nuveen Asset Management, LLC (“Nuveen Asset Management” or “Sub-Adviser”) as
Sub-Adviser to provide discretionary investment advisory services. The following section provides information on the portfolio manager
at the Sub-Adviser:
ITEM 8(a)(1). PORTFOLIO MANAGER BIOGRAPHY
As of the date of filing this report, the following
individual at the Sub-Adviser (the “Portfolio Manager”) has primary responsibility for the day-to-day implementation of the
registrant’s investment strategies:
Daniel J. Close, CFA, Managing Director at
Nuveen Asset Management, leads the municipal fixed income strategic direction and investment perspectives for Nuveen. He serves as lead
portfolio manager for high yield municipal strategies, along with tax-exempt and taxable municipal strategies that include customized
institutional portfolios, open-end funds and closed-end funds. Prior to his current role, Dan helped establish and expand the platform
as Head of Taxable Municipals. He is a portfolio manager of both high yield and investment grade municipal assets, and he has managed
dedicated taxable municipal strategies for Nuveen since 2010. After joining Nuveen in 2000, he was a municipal fixed income research analyst
covering the corporate-backed, energy, transportation and utility sectors. Dan began working in the investment industry in 1998 as an
analyst at Banc of America Securities. He received his BS in Business from Miami University and his MBA from Northwestern University’s
J. L. Kellogg School of Management. Mr. Close has earned the Chartered Financial Analyst designation and is a member of the CFA Institute
and the CFA Society of Chicago.
ITEM 8(a)(2). OTHER ACCOUNTS MANAGED BY PORTFOLIO
MANAGER
Other Accounts Managed. In addition to managing
the registrant, the Portfolio Manager is also primarily responsible for the day-to-day portfolio management of the following accounts:
|
Portfolio Manager
|
Type of Account
Managed
|
Number of
Accounts
|
Assets*
|
| Daniel J. Close |
Registered Investment Company |
16 |
$27.64 billion |
| |
Other Pooled Investment Vehicles |
0 |
$0 |
| |
Other Accounts |
63 |
$18.29 billion |
| * | Assets are as of May 31, 2023. None of the assets in these accounts are subject to an advisory fee based on performance. |
POTENTIAL MATERIAL CONFLICTS OF INTEREST
Actual or apparent conflicts of interest may arise
when a portfolio manager has day-to-day management responsibilities with respect to more than one account. More specifically, portfolio
managers who manage multiple accounts are presented a number of potential conflicts, including, among others, those discussed below.
The management of multiple accounts may result in
a portfolio manager devoting unequal time and attention to the management of each account. Nuveen Asset Management seeks to manage such
competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline.
Most accounts managed by a portfolio manager in a particular investment strategy are managed using the same investment models.
If a portfolio manager identifies a limited investment
opportunity which may be suitable for more than one account, an account may not be able to take full advantage of that opportunity due
to an allocation of filled purchase or sale orders across all eligible accounts. To deal with these situations, Nuveen Asset Management
has adopted procedures for allocating limited opportunities across multiple accounts.
With respect to many of its clients’ accounts,
Nuveen Asset Management determines which broker to use to execute transaction orders, consistent with its duty to seek best execution
of the transaction. However, with respect to certain other accounts, Nuveen Asset Management may be limited by the client with respect
to the selection of brokers or may be instructed to direct trades through a particular broker. In these cases, Nuveen Asset Management
may place separate, non-simultaneous, transactions for a Fund and other accounts which may temporarily affect the market price of the
security or the execution of the transaction, or both, to the detriment of the Fund or the other accounts.
Some clients are subject to different regulations.
As a consequence of this difference in regulatory requirements, some clients may not be permitted to engage in all the investment techniques
or transactions or to engage in these transactions to the same extent as the other accounts managed by a portfolio manager. Finally, the
appearance of a conflict of interest may arise where Nuveen Asset Management has an incentive, such as a performance-based management
fee, which relates to the management of some accounts, with respect to which a portfolio manager has day-to-day management responsibilities.
Conflicts of interest may also arise when the Sub-Adviser
invests one or more of its client accounts in different or multiple parts of the same issuer’s capital structure, including investments
in public versus private securities, debt versus equity, or senior versus junior/subordinated debt, or otherwise where there are different
or inconsistent rights or benefits. Decisions or actions such as investing, trading, proxy voting, exercising, waiving or amending rights
or covenants, workout activity, or serving on a board, committee or other involvement in governance may result in conflicts of interest
between clients holding different securities or investments. Generally, individual portfolio managers will seek to act in a manner that
they believe serves the best interest of the accounts they manage. In cases where a portfolio manager or team faces a conflict among its
client accounts, it will seek to act in a manner that it believes best reflects its overall fiduciary duty, which may result in relative
advantages or disadvantages for particular accounts.
Nuveen Asset Management has adopted certain compliance
procedures which are designed to address these types of conflicts common among investment managers. However, there is no guarantee that
such procedures will detect each and every situation in which a conflict arises.
Nuveen Asset Management or its affiliates, including
TIAA, sponsor an array of financial products for retirement and other investment goals, and provide services worldwide to a diverse customer
base. Accordingly, from time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in other investment
activities because of regulatory, legal or contractual restrictions that arise due to another client account’s investments and/or
the internal policies of Nuveen Asset Management, TIAA or its affiliates designed to comply with such restrictions. As a result, there
may be periods, for example, when Nuveen Asset Management will not initiate or recommend certain types of transactions in certain securities
or instruments with respect to which investment limits have been reached.
The investment activities of Nuveen Asset Management
or its affiliates may also limit the investment strategies and rights of the Funds. For example, in certain circumstances where the Funds
invest in securities issued by companies that operate in certain regulated industries, in certain emerging or international markets, or
are subject to corporate or regulatory ownership definitions, or invest in certain futures and derivative transactions, there may be limits
on the aggregate amount invested by Nuveen Asset Management or its affiliates for the Funds and other client accounts that may not be
exceeded without the grant of a license or other regulatory or corporate consent. If certain aggregate ownership thresholds are reached
or certain transactions undertaken, the ability of Nuveen Asset Management, on behalf of the Funds or other client accounts, to purchase
or dispose of investments or exercise rights or undertake business transactions may be restricted by regulation or otherwise impaired.
As a result, Nuveen Asset Management, on behalf of the Funds or other client accounts, may limit purchases, sell existing investments,
or otherwise restrict or limit the exercise of rights (including voting rights) when Nuveen Asset Management, in its sole discretion,
deems it appropriate in light of potential regulatory or other restrictions on ownership or other consequences resulting from reaching
investment thresholds.
ITEM 8(a)(3). FUND MANAGER COMPENSATION
As of the most recently completed fiscal year end,
the primary Portfolio Manager’s compensation is as follows:
Portfolio manager compensation consists primarily
of base salary and variable components consisting of (i) a cash bonus; (ii) a long-term performance award; and (iii) participation in
a profits interest plan.
Base salary. A portfolio manager’s base
salary is determined based upon an analysis of the portfolio manager’s general performance, experience and market levels of base
pay for such position.
Cash bonus. A portfolio manager is eligible
to receive an annual cash bonus that is based on three variables: risk-adjusted investment performance relative to benchmark generally
measured over the most recent one, three and five year periods (unless the portfolio manager’s tenure is shorter), ranking versus
Morningstar peer funds generally measured over the most recent one, three and five year periods (unless the portfolio manager’s
tenure is shorter), and management and peer reviews.
Long-term performance award. A portfolio manager
is eligible to receive a long-term performance award that vests after three years. The amount of the award when granted is based on the
same factors used in determining the cash bonus. The value of the award at the completion of the three-year vesting period is adjusted
based on the risk-adjusted investment performance of Fund(s) managed by the portfolio manager during the vesting period and the performance
of the TIAA organization as a whole.
Profits interest plan. Portfolio managers
are eligible to receive profits interests in Nuveen Asset Management and its affiliate, Teachers Advisors, LLC, which vest over time and
entitle their holders to a percentage of the firms’ annual profits. Profits interests are allocated to each portfolio manager based
on such person’s overall contribution to the firms.
There are generally no differences between the methods
used to determine compensation with respect to the Fund and the Other Accounts shown in the table above.
ITEM 8(a)(4). OWNERSHIP OF NIQ SECURITIES AS OF MAY
31, 2023
| Name of Portfolio Manager |
None |
$1 - $10,000 |
$10,001-$50,000 |
$50,001-$100,000 |
$100,001-$500,000 |
$500,001-$1,000,000 |
Over $1,000,000 |
|
Daniel J. Close |
X |
|
|
|
|
|
|
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders
may recommend nominees to the registrant’s Board implemented after the registrant last provided disclosure in response to this Item.
ITEM 11. 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 Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) (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 period covered by this report that has materially affected,
or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT
INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
File the exhibits listed below as part of this Form.
| (a)(1) | | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant’s website at www.nuveen.com/fund-governance and there were no amendments during the period covered by this report. (To view the code, click on Code of Conduct.) |
| (a)(3) | | Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR
270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. |
| (a)(4) | | Change in the registrant’s independent public accountant. Not applicable. |
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 Intermediate Duration Quality Municipal Term Fund
By (Signature and Title) /s/ Mark L. Winget
Mark L. Winget
Vice President and Secretary
Date: August 3, 2023
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/ David J. Lamb
David J. Lamb
Chief Administrative Officer
(principal executive officer)
Date: August 3, 2023
By (Signature and Title) /s/ E. Scott Wickerham
E. Scott Wickerham
Vice President and Funds Controller
(principal financial officer)
Date: August 3, 2023
Nuveen Proxy Voting Policy
Policy Purpose and Statement
Proxy voting is the primary means by which shareholders may influence
a publicly traded company's governance and operations and thus create the potential for value and positive long-term investment performance.
When an SEC registered investment adviser has proxy voting authority, the adviser has a fiduciary duty to vote proxies in the best interests
of its clients and must not subrogate its clients’ interests to its own. In their capacity as fiduciaries and investment advisers,
Nuveen Asset Management, LLC (“NAM”), Teachers Advisors, LLC (“TAL”) and TIAA-CREF Investment Management, LLC
(“TCIM”), (each an “Adviser” and collectively, the “Advisers”), vote proxies for the Portfolio Companies
held by their respective clients, including investment companies and other pooled investment vehicles, institutional and retail separate
accounts, and other clients as applicable. The Advisers have adopted this Policy, the Nuveen Proxy Voting Guidelines, and the Nuveen Proxy
Voting Conflicts of Interest Policy for voting the proxies of the Portfolio Companies they manage. The Advisers leverage the expertise
and services of an internal group referred to as the Responsible Investing Team (RI Team) to administer the Advisers’ proxy voting.
The RI Team adheres to the Advisers’ Proxy Voting Guidelines which are reasonably designed to ensure that the Advisers vote client
securities in the best interests of the Advisers’ clients.
Policy Statement
Proxy voting is a key component of a Portfolio Company’s
corporate governance program and is the primary method for exercising shareholder rights and influencing the Portfolio Company’s
behavior. Nuveen makes informed voting decisions in compliance with Rule 206(4)-6 (the “Rule”) of the Investment Advisers
Act of 1940, as amended (the “Advisers Act”) and applicable laws and regulations, (e.g., the Employee Retirement Income Security
Act of 1974, “ERISA”).
Applicability
This Policy applies to Nuveen employees acting on behalf of Nuveen
Asset Management, LLC, Teachers Advisors, LLC, and TIAA-CREF Investment Management, LLC
Confidential (C)
Enforcement
As provided in the TIAA Code of Business Conduct, all employees
are expected to comply with applicable laws and regulations, as well as the relevant policies, procedures and compliance manuals that
apply to Nuveen’s business activities. Violation of this Policy may result in disciplinary action up to and including termination
of employment.
Terms and Definitions
Advisory Personnel includes the Adviser’s portfolio
managers and/or research analysts.
Proxy Voting Guidelines (the ‘’Guidelines’’)
are a set of pre-determined principles setting forth the manner in which the Advisers intend to vote on specific voting categories,
and serve to assist clients, Portfolio Companies, and other interested parties in understanding how the Advisers intend to vote on proxy-related
matters. The Guidelines are not exhaustive and do not necessarily dictate how the Advisers will ultimately vote with respect to any proposal
or resolution.
Portfolio Company includes any publicly traded company
held in an account that is managed by an Adviser.
Policy Requirements
Investment advisers, in accordance with the Rule, are required
to (i) adopt and implement written policies and procedures that are reasonably designed to ensure that proxies are voted in the best interest
of clients, and address resolution of material conflicts that may arise, (ii) describe their proxy voting procedures to their clients
and provide copies on request, and (iii) disclose to clients how they may obtain information on how the Advisers voted their proxies.
The Nuveen Proxy Voting Committee (the “Committee”),
the Advisers, the RI Team and Nuveen Compliance are subject to the respective requirements outlined below under Roles and Responsibilities.
Although it is the general policy to vote all applicable proxies
received in a timely fashion with respect to securities selected by an Adviser for current clients, the Adviser may refrain from voting
in certain circumstances where such voting would be disadvantageous, materially burdensome or impractical, or otherwise inconsistent with
the overall best interest of clients.
Roles
and Responsibilities
Nuveen Proxy Voting Committee
The purpose of the Committee is to establish a governance framework
to oversee the proxy voting activities of the Advisers in accordance with the Policy. The Committee has delegated responsibility for the
implementation and ongoing administration of the Policy to the RI Team, subject to the Committee’s ultimate oversight and responsibility
as outlined in the Committee’s Proxy Voting Charter.
Advisers
| 1. | | Advisory Personnel maintain the ultimate decision-making authority with respect to how proxies
will be voted, unless otherwise instructed by a client, and may determine to vote contrary to the Guidelines and/or a vote recommendation
of the RI Team if such Advisory Personnel determines it is |
Confidential (C)
in the best interest of the Adviser’s clients to do so. The
rationale for all such contrary vote determinations will be documented and maintained.
| 2. | | When voting proxies for different groups of client accounts, Advisory Personnel may vote
proxies held by the respective client accounts differently depending on the facts and circumstances specific to such client accounts.
The rationale for all such vote determinations will be documented and maintained. |
| 3. | | Advisory Personnel must comply with the Nuveen Proxy Voting Conflicts of Interest Policy
with respect to potential material conflicts of interest. |
Responsible Investing Team
| 1. | | Performs day-to-day administration of the Advisers’ proxy voting processes. |
| 2. | | Seeks to vote proxies in adherence to the Guidelines, which have been constructed in a manner
intended to align with the best interests of clients. In applying the Guidelines, the RI Team, on behalf of the Advisers, takes into
account several factors, including, but not limited to: |
• Input from Advisory Personnel
• Third party research
• Specific Portfolio Company context, including environmental,
social and governance practices, and financial performance.
| 3. | | Delivers copies of the Advisers’ Policy to clients and prospective clients upon request
in a timely manner, as appropriate. |
| 4. | | Assists with the disclosure of proxy votes as applicable on corporate websites and elsewhere
as required by applicable regulations. |
| 5. | | Prepares reports of proxies voted on behalf of the Advisers’ investment company clients
to their Boards or committees thereof, as applicable. |
| 6. | | Performs an annual vote reconciliation for review by the Committee. |
| 7. | | Arranges the annual service provider due diligence, including a review of the service provider’s
potential conflicts of interests, and presents the results to the Committee. |
| 8. | | Facilitates quarterly Committee meetings, including agenda and meeting minute preparation. |
| 9. | | Complies with the Nuveen Proxy Voting Conflicts of Interest Policy with respect to potential
material conflicts of interest. |
| 10. | | Creates and retains certain records in accordance with Nuveen’s Record Management program.
11. Oversees the proxy voting service provider in making and retaining certain records as required under applicable regulation. |
| 12. | | Assesses, in cooperation with Advisory Personnel, whether securities on loan should be recalled
in order to vote their proxies. |
Nuveen Compliance
| 1. | | Ensures proper disclosure of Advisers’ Policy to clients as required by regulation
or otherwise. |
| 2. | | Ensures proper disclosure to clients of how they may obtain information on how the Advisers
voted their proxies. |
| 3. | | Assists the RI Team with arranging the annual service provider due diligence and presenting
the results to the Committee. |
| 4. | | Monitors for compliance with this Policy and retains records relating to its monitoring activities
pursuant to Nuveen’s Records Management program. |
Governance
Review and Approval
This Policy will be reviewed at least annually and will be updated
sooner if substantive changes are necessary. The Policy Leader, the Committee and the NEFI Compliance Committee are responsible for the
review and approval of this Policy.
3
Confidential (C)
Implementation
Nuveen has established the Committee to provide centralized management
and oversight of the proxy voting process administered by the RI Team for the Advisers in accordance with its Proxy Voting Committee Charter
and this Policy.
Exceptions
Any request for a proposed exception or variation to this Policy
will be submitted to the Committee for approval and reported to the appropriate governance committee(s), where appropriate.
Related Documents
• Nuveen Proxy Voting Committee Charter
• Nuveen Proxy Voting Guidelines
• Nuveen Proxy Voting Conflicts of Interest Policy and Procedures
• Nuveen Policy Statement on Responsible Investing
| Policy Adoption Date |
February 3, 2020 |
| Current Policy Effective Date |
October 1, 2022 |
| Current Policy Approval Date |
August 31, 2022 |
| Policy Owner |
Nuveen Proxy Voting Committee |
| Policy Leader |
Managing Director, Nuveen Compliance |
| Policy Portal Administration |
Leader: Managing Director, Nuveen Compliance |
| |
Owner: Managing Director, Head of Affiliate Compliance |
| Criticality/Tier |
Moderate |
4
Confidential (C)
Exhibit 99.CERT
CERTIFICATION
I, David J. Lamb, certify that:
| 1. | | I have reviewed this report on Form N-CSR of Nuveen Intermediate Duration Quality Municipal Term Fund; |
| 2. | | Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report; |
| 3. | | Based on my knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented
in this report; |
| 4. | | The registrant’s other certifying officer and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
| (a) | | designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | | designed such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | | evaluated the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90
days prior to the filing date of this report based on such evaluation; and |
| (d) | | disclosed in this report any change in the registrant’s internal control over financial
reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially
affect, the registrant’s internal control over financial reporting; and |
| 5. | | The registrant’s other certifying officer and I have disclosed to the registrant’s
auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | | all significant deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize,
and report financial information; and |
| (b) | | any fraud, whether or not material, that involves management or other employees who have
a significant role in the registrant’s internal control over financial reporting. |
Date: August 3, 2023
/s/ David J. Lamb
David J. Lamb
Chief Administrative Officer
(principal executive officer)
CERTIFICATION
I, E. Scott Wickerham, certify that:
| 1. | | I have reviewed this report on Form N-CSR of Nuveen Intermediate Duration Quality Municipal Term Fund; |
| 2. | | Based on my knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report; |
| 3. | | Based on my knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash
flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented
in this report; |
| 4. | | The registrant’s other certifying officer and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
| (a) | | designed such disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| (b) | | designed such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| (c) | | evaluated the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90
days prior to the filing date of this report based on such evaluation; and |
| (d) | | disclosed in this report any change in the registrant’s internal control over financial
reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially
affect, the registrant’s internal control over financial reporting; and |
| 5. | | The registrant’s other certifying officer and I have disclosed to the registrant’s
auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| (a) | | all significant deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize,
and report financial information; and |
| (b) | | any fraud, whether or not material, that involves management or other employees who have
a significant role in the registrant’s internal control over financial reporting. |
Date: August 3, 2023
/s/ E. Scott Wickerham
E. Scott Wickerham
Vice President and Funds Controller
(principal financial officer)
Exhibit 99.906CERT
Certification Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section
906 of the Sarbanes-Oxley Act of 2002; provided by the Chief Executive Officer and Chief Financial Officer, based on each such officer’s
knowledge and belief.
The undersigned officers of Nuveen Intermediate Duration Quality Municipal Term Fund (the “Fund”) certify that,
to the best of each such officer’s knowledge and belief:
| 1. | | The Form N-CSR of the Fund for the period ended May 31, 2023 (the “Report”) fully
complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
| 2. | | The information contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of the Fund. |
Date: August 3, 2023
/s/ David J. Lamb
David J. Lamb
Chief Administrative Officer
(principal executive officer)
/s/ E. Scott Wickerham
E. Scott Wickerham
Vice President and Funds Controller
(principal financial officer)
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