Nuveen Pennsylvania Quality Municipal Income Fund (NQP) Stock Price, News & Analysis

Nuveen Pennsylvania Quality Municipal Income Fund is a closed-ended fund targeting the fixed-income markets of Pennsylvania. It was previously known as Nuveen Pennsylvania Investment Quality Municipal Fund and was founded in December 1990. The fund is headquartered in the U.S. and is subject to applicable laws and taxes.

The primary objective of the fund is to generate income exempt from Pennsylvania personal income taxes as well as federal income taxes. The secondary objective is to generate capital gains by improving the portfolio’s value. The fund is externally managed by Nuveen Fund Advisors LLC and Nuveen Asset Management, LLC. Nuveen is a TIAA company that was originally founded in 1898 to finance public infrastructure projects. Among its achievements are funding the building of America’s public schools and innovating new forms of bonds to fund highways.

The fund invests up to 80% of the portfolio in tax-exempt municipal bonds with a rating of Baa/BBB or higher. Up to 20% of the portfolio may be sub-investment grade with 10% allocated to bonds rated B-/B3 or lower. Total assets under management topped $720.750 million in the second half of 2022 with total distributions in excess of $27.00 per share since inception.

The fund managers use a blend of fundamental analysis and a bottom-up stock-picking approach in creating their portfolio and actively manage its components. The fund's average return on NAV since inception is 5.45% as of October 2022 and the shares tend to trade at a 15% discount to its NAV or net asset value.

The fund benchmarks the performance of its portfolio against Standard & Poor's Pennsylvania Municipal Bond Index and Standard & Poor's National Municipal Bond Index. Income is distributed monthly in the form of a dividend that is paid from earnings. The company also uses leverage to enhance gains but the leverage ratio tends to run low near 40%. The average cost of financing was 2.38% in October 2022 with an average portfolio coupon of 4.56%. There were 288 holdings at the time with an average maturity of 16.6 years. The top 3 holdings, comprising roughly 20% of the portfolio, were Pennsylvania Housing Finance Agency Single Family Mortgage Revenue Bonds, Energy Harbor Corp, and Pennsylvania State Turnpike Commission Toll Revenue Bonds.