Strategy Combines Equities and Municipal
Bonds in a Single Custodian Account
NEW
YORK, Dec. 6, 2023 /PRNewswire/ -- Nuveen,
the investment manager of TIAA, has launched the Nuveen Tax
Advantaged Balanced portfolio, which combines investment-grade
municipal bonds and equities, featuring regular monitoring for
automated tax-loss harvesting and rebalancing opportunities across
both asset class sleeves. Portfolio managers from Nuveen, one of
the largest active municipal managers, will manage the bond
allocations.
The multi-asset approach in a single account allows investors to
benefit from comprehensive tax management across the entire
portfolio while aligning closely with personal client
preferences.
Also launching today is the Nuveen Tax Advantaged Large Cap
portfolio, an equity-only, tax-efficient solution that seeks to
closely mirror the performance of a specific stock market or custom
index and meet clients' desired portfolio goals ranging from
concentrated position management to tax preferences, investment
interests and ESG preferences.
Both strategies are available on the Schwab Managed Account
Marketplace platform and were developed through a strategic
partnership with Brooklyn Investment Group, which leverages
cloud-based technologies to deliver personalized direct indexing
portfolios at scale.
With the addition of the Nuveen Tax Advantaged Balanced and Tax
Advantaged Large Cap portfolios, Nuveen now manages a total of 52
SMA strategies with $71.3 billion in
assets.1
SMA AUM Projected to Increase 80 Percent by
2026
As the fastest growing segment in the SMA market, direct
indexing is projected to grow to $825
billion in AUM by 2026 from about $460 billion today.[2] Direct indexing can
closely replicate the performance of a selected benchmark while
also providing ownership of and direct access to the underlying
securities. This approach offers a high degree of customization
based on client preferences and greater tax-efficiency from
systematic year-round tax-loss harvesting and tax-aware management
of concentrated positions.
"Our partnership with Brooklyn Investment Group links vision and
experience with adaptable technology to offer a significantly
enhanced client experience," said Mike
Perry, Head of Nuveen's Global Client Group. "This level of
scalability creates valuable practice management efficiencies for
advisors who can then dedicate even more time to providing
individual advice and support for clients."
These strategies also deliver client service benefits designed
specifically to help financial professionals build stronger
relationships; such benefits include detailed reporting and cost
efficiency, compared to traditional active management, in addition
to tax-aware management.
"We're thrilled to collaborate with Nuveen, bringing together
their 125 years of investment expertise with our tech-powered
direct indexing platform to deliver innovative solutions that help
advisors unlock tax alpha and scale growth," said Erkko Etula,
Chief Executive Officer of Brooklyn Investment Group.
Media Contact:
E-Soo
Kim | E-Soo.Kim@nuveen.com | 551.224.4919
About Nuveen
Nuveen, the investment manager of
TIAA, offers a comprehensive range of outcome-focused investment
solutions designed to secure the long-term financial goals of
institutional and individual investors. Nuveen has $1.1 trillion in assets under management as of
30 Sept 2023 and operations in 27
countries. Its investment specialists offer deep expertise across a
comprehensive range of traditional and alternative investments
through a wide array of vehicles and customized strategies.
For more information, please visit www.nuveen.com.
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.
Financial professionals should independently evaluate the risks
associated with products or services and exercise independent
judgment with respect to their clients.
1 As of September 30,
2023
2 Cerulli Associates, December
2022 White Paper – The Case for Direct Indexing.
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SOURCE Nuveen