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Preferred Securities

The Nuveen Asset Management Preferred Securities Fixed Income Strategy seeks to generate current income and total return by investing in the exchange-traded and OTC-traded preferred securities market. The strategy will seek to take advantage of price inefficiencies between the $25 par retail market and the $1,000 par institutional market.

Portfolio At-a-Glance

Benchmark 60% BofA Merrill Lynch U.S. All Capital Securities Index / 40% BofA Merrill Lynch Contingent Capital Index USD Hedged
Portfolio Composition $25, $50, $100 and $1000 par value securities
50 - 100 issuers
100 - 250 securities
Up to 20% allocation to other fixed income securities including, but not limited to, U.S. Treasuries, U.S. agencies, taxable municipal securities, corporate debt securities, and convertible preferred securities
Key Limits Up to 50% below investment-grade securities at time of purchase
25% sector concentration limit, except for financial services sector
Duration Intermediate term
Managed within ± 10% of benchmark’s duration
Return Target 100- 125 basis points excess return over a full market cycle
Investment Vehicles
  • Institutional Separate Account
  • Separately Managed Account
  • Mutual Fund
  • Closed-End Fund

Investment Process

Analyze Every Structural Dimension to Effectively Construct Portfolio

Our process considers both top-down and bottom-up factors:

Top Down
  • Identify the investable universe, both $25 par and similar retail structures and $1,000 par institutional structures
  • Focus on the highly regulated sectors: banks, insurance, and utilities
  • Monitor sector-level relative value to determine sector over/underweights
Bottom Up
  • Conduct fundamental credit research on every issuer in our strategy and every meaningful credit within our benchmark index, regardless of ownership
  • Review all structural features of each security to fully comprehend each individual structure
  • Perform Option-Adjusted Spread (OAS) analysis to force rank securities of each issuer to ensure we own the cheapest available structure

Certain strategies may be available through other investment vehicles not listed above. Vehicles and their respective platforms shown may not be available in certain jurisdictions; investors should be aware of applicable legal requirements. This information should not be considered a solicitation or an offer by Nuveen Asset Management or Nuveen to provide any services in any jurisdiction. For more information on collective investment trusts, please contact us. If you are a non-U.S. investor and would like more information on UCITS Funds, please visit nuveenglobal.com.

This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities. The information does not take into account the specific objectives or circumstances of any investor, or suggest any specific course of action. Investment decisions should be made based on an investor's objectives and circumstances and in consultation with his or her advisors. All investments involve risk and there is no assurance that an investment will provide positive performance over any period of time. There is no assurance that downside protection will be achieved.

23707-G-INAD-AN-04/18

Contact Us

  • Institutional Investors/ Consultant 612.303.3381
  • Registered Investment Advisor 800.558.4487
  • Financial Advisors 800.752.8700
  • Mutual Fund Investors 800.257.8787