Nuveen New Jersey, Pennsylvania, and Missouri municipal funds plan to merge into Nuveen Municipal High Income Opportunity Fund. Common and preferred shareholders are being asked to approve Agreements and Plans of Merger so each state-specific closed-end fund would be combined with a Nuveen subsidiary and ultimately folded into the national Acquiring Fund.
Target Fund shareholders would exchange their common and preferred shares for newly issued Acquiring Fund shares, with preferred holders receiving a one-for-one replacement series that has substantially similar terms but no state-specific tax make‑up feature. After the mergers, income would generally be exempt from regular federal income tax but no longer exempt from New Jersey, Pennsylvania, or Missouri income taxes, and the combined portfolio could hold a higher proportion of lower-rated municipal bonds.
Boards cite potential benefits such as larger scale, operating efficiencies, and similar overall expense ratios, while noting that approval requires specific voting thresholds and that large institutional preferred holders could determine outcomes. The adviser will temporarily waive part of its fee for six months to help transition the combined portfolio to the Acquiring Fund’s mandate.