Nuveen Arizona Quality Municipal Income Fund

Frequently Asked Questions About NAZ

What does NAZ invest in?

The Nuveen Arizona Quality Municipal Income Fund operates as a closed-end mutual fund, specializing in fixed-income investments, initially established by Nuveen Investments, Inc. Management oversight for the fund is provided by Nuveen Asset Management, LLC. Its primary objective is to allocate capital within Arizona's fixed-income markets. The portfolio is strategically constructed from municipal securities and other comparable instruments, specifically those offering income exempt from both regular federal and Arizona state income taxes. These investments must also maintain a minimum credit rating of Baa or BBB and target an approximate average maturity of 18.66 years. To curate its holdings, the fund employs a blend of fundamental analysis and a bottom-up selection process. Performance is measured against industry benchmarks, including the Standard & Poor's (S&P) Arizona Municipal Bond Index and the S&P National Municipal Bond Index. Previously, it operated under the name Nuveen Arizona Premium Income Municipal Fund. This U.S.-domiciled fund was officially formed on November 19, 1992.

What is the expense ratio of NAZ?

Nuveen Arizona Quality Municipal Income Fund (NAZ) charges an expense ratio of 3.55%. This is the annual fee deducted from fund assets to cover management and operations.

What is NAZ's distribution yield?

NAZ's trailing-twelve-month yield is 6.28%, calculated from the sum of distributions over the past year divided by the current price.

How does NAZ's covered-call strategy work?

NAZ sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

What is the duration of NAZ?

Effective duration measures NAZ's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. NAZ's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of NAZ?

NAZ's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.