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At Nuveen Investments,we take the long-term view in helping investors make disciplined choices that strike the right balance between risk and reward. We consider this the smarter way to be conservative.
We distinguish ourselves by the choices we offer investors. With a wide range of resources and investment solutions,we provide the core building blocks of a well constructed portfolio including value, growth, fixed-income and alternative investments. Each asset class brings something unique to the overall portfolio. While value stocks historically have done well early in an economic recovery, growth stocks have tended to lead when interest rates fall and company earnings rise. The addition of fixed-income investments can help moderate risk and provide tax advantages. Many alternative (also called “hedge”) funds have thrived in many market environments, due to their varied type and timing. These asset classes are complementary and can work together, forming the core of a portfolio.
We apply some of the industry’s best thinking to combine these investment styles and products to help achieve an optimal diversification strategy. The result is a selection of quality portfolios designed to help meet each investor’s risk and return expectations over time.
Putting together the right portfolio is a science and an art. Those who succeed have knowledge and imagination, discipline and creativity, experience and enthusiasm.At Nuveen Investments,we have this blend of qualities: we see the trees and the forest.
Historically, diversification has proven to be one of the keys to achieving the greatest overall return for an investor’s acceptable amount of risk. When the historical relationship between risk and return is measured and charted, it creates a pattern called the “efficient frontier.”
Named by Harry Markowitz, an economist who helped develop the principles of modern portfolio theory, the efficient frontier illustrates the trade-off between risk and return. The goal of asset allocation is to combine a variety of investment vehicles in such a way that the investors receive an optimal long-term return for their acceptable level of risk — throughout the ups and downs of market cycles.
“…TO MAXIMIZE THE EXPECTED VALUE OF A PORTFOLIO, ONE NEED INVEST ONLY IN A SINGLE SECURITY. THIS, I KNEW, WAS NOT THE WAY INVESTORS DID OR SHOULD ACT. INVESTORS DIVERSIFY BECAUSE THEY ARE CONCERNED WITH RISK AS WELL AS RETURN.”
— HARRY MARKOWITZ
 Factors Impacting Portfolio Performance
Research proves that the quality of an asset allocation strategy accounts for 91.5 percent of the variation among portfolios' returns. Gary Brinson, Brian Singer, and Gilbert Beebower, "Determinants of Portfolio Performance II: An Update."
-Financial Analysts Journal, May/June 1991.
We use the concept of the “Efficient Frontier” to illustrate the power of the Nuveen Investments Frontier. We offer a select range of quality investment styles and products with varying degrees of risk and reward. By offering you these choices – all within our conservative framework – we work together to create diversified portfolios that can help build and preserve wealth over time.
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