Nuveen today announced the launch of two new custom direct-indexing portfolios within its separately managed account suite, bringing the total number of SMA strategies it now manages to 52 with $71.3 billion in assets, according to a news release.
The Nuveen Tax Advantaged Balanced portfolio combines investment-grade municipal bonds and equities, and it features “regular monitoring for automated tax-loss harvesting and rebalancing opportunities across both asset class sleeves,” the company said, noting that Nuveen portfolio managers will manage the bond allocations.
The company further noted that because of the tax-advantaged balanced portfolio’s multi-asset approach in a single account, investors will “benefit from comprehensive tax management across the entire portfolio while aligning closely with personal client preferences.”
Also available today is an equity-only, tax-efficient solution dubbed the Nuveen Tax Advantaged Large Cap portfolio, which “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, the company said.
Nuveen said both strategies, which were developed through a strategic partnership with Brooklyn Investment Group, are available on the Schwab Managed Account Marketplace platform.
“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, in a statement. “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.”
Erkko Etula, Brooklyn Investment Group’s CEO, said, “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.”
Direct indexing, the press release noted, is the fastest growing segment in the SMA market and is projected to grow to $825 billion in assets under management by 2026 from about $460 billion today, according to Cerulli Associates.
Nuveen is the investment manager for TIAA. The company had $1.1 trillion in assets under management as of Sept. 30 and operations in 27 countries.