1Source: Cerulli Associates, The Cerulli Report, U.S. Managed Accounts 2023. Data as of 31 Dec 2022, updated annually; most recent data available. All asset manager data based on total assets, which includes proprietary program assets, but does not include model separate accounts.
2State portfolios are available for municipals only. Municipal state specific portfolios hold only bonds from the client’s state of residence or U.S. territories (Puerto Rico, U.S. Virgin Islands and Guam). Municipal state preference portfolios hold bonds from the client’s state of residence or U.S. territories, which together will account for a minimum of 50% of the portfolio. Out-of-state bonds may total up to 50% of the portfolio. Nuveen seeks to purchase out-of-state bonds at an after-statetax yield that is equivalent to or greater than a comparable in-state bond. Prospective clients and their financial professionals should consider that a state preference portfolio may provide a higher yield, better diversification, and a shorter invest-up period than a state specific portfolio. The national preference portfolio is a national portfolio with a secondary preference to the client’s state of residence according to supply, relative value and strategic guidelines. The secondary preference will be filled opportunistically over time, if at all. We cannot guarantee the inclusion of any state of residence bonds.
3Higher account minimum may apply.
4Intermediate-Term securities must be rated BBB- or better at time of purchase. Intermediate-Term High-Quality securities must be rated A- or better at time of purchase.
5Municipal Total Return will hold shares in a specialized, registered investment portfolio (Municipal Total Return Managed Accounts Portfolio) that is offered only to Nuveen separately managed accounts and is not offered or promoted directly.
6Strategies that select securities based on responsible investing, “green” or environmental, social, and governance (ESG) or similar criteria may forgo certain market opportunities available to strategies or products that do not use these criteria.
7Please note that the Municipal Ladders portfolios may not lend themselves to certain types of customizations, including but not limited to: sector restrictions, requests to replace individual bonds and certain client trading such as tax sales. These strategies do not utilize the opportunistic and more active trading approach found in certain other Nuveen municipal bond strategies.
The laddered bonds will typically be held to maturity in the absence of material credit events, contributions/withdrawals and calls. Initially, Nuveen will purchase individual bonds that are given equal weight, with differing maturities across the specified strategy maturity range. The maturity range is typically segmented into 1-2 year ranges (“rungs”) in which Nuveen will purchase bonds creating a “ladder” of individual bonds. It will be approximately 4-8 rungs for the 1-7 years, 6-12 rungs for the 1-10 years, 7-14 rungs for the 1-15 years, 6-12 rungs for the 5-15 years, and 8-16 rungs for the 10-25 years. As bonds mature (or are called) and cash is generated in the account, Nuveen will purchase additional bonds in the longest available rung within the strategy’s bond maturity range.
8Nuveen employs the following criteria when referring to managed accounts’ municipal bond average credit quality (“ACQ”): Ratings are from nationally recognized statistical rating organizations (“NRSRO”). Split-rated securities receive the highest rating. ACQ is calculated by Nuveen, using statistical tools and the most current ratings available from third-party sources on all securities, but no guarantees are made with respect to their accuracy or completeness. A portfolio may include substantial holdings of individual securities that are rated materially higher or lower than the average. ACQ does not necessarily reflect the credit risk of individual holdings and its potential impact on an overall portfolio. For example, ACQ may understate the credit risk from a substantial holding in a lower-rated security. There are limitations associated with the use of ACQ as a gauge of portfolio credit risk. Securities not rated by a NRSRO are identified as non-rated, and are not included in the ACQ calculation. Inherited securities may be unrated and reside in the portfolio over the short-term. Unrated securities are not purchased by Nuveen for managed accounts. A portfolio’s individual holdings, the ratings of these holdings, and the ACQ of a portfolio may change over time. For certain strategies and/ or programs, additional restrictions may apply.
A separately managed account (SMA) is a private portfolio of actively managed, individual securities that may be customized to achieve an individual investor's unique objectives.
SMA accounts typically require a minimum investment of $100,000 for equity and asset allocation strategies and $350,000 for fixed income strategies, although the specific minimum account size varies by program and may be subject to change. The manager may waive these minimums based on client type, asset class, pre-existing relationship with client and other factors. For certain accounts, a negotiated minimum annual fee applies. Please consult with your Nuveen Advisor Consultant for applicable minimums.
Important information on risk
An investment in any municipal portfolio should be made with an understanding of the risks involved in investing in municipal bonds, such as interest rate risk, credit risk, and market risk. The value of the portfolio will fluctuate based on the value of the underlying securities. Please contact a tax advisor regarding the suitability of tax-exempt investments in your portfolio. Nuveen Asset Management is not a tax advisor. If sold prior to maturity, municipal securities are subject to gain/losses based on the level of interest rates, market conditions and the credit quality of the issuer. Income may be subject to the alternative minimum tax (AMT) and/or state and local taxes, based on the investor’s state of residence. Income from municipal bonds held by a portfolio could be declared taxable because of unfavorable changes in tax laws, adverse interpretations by the Internal Revenue Service or state tax authorities, or noncompliant conduct of a bond issuer. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax.
Check with your financial professional for specific product availability and performance information. This information may change without notice. From time to time, we may close or reopen strategies.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
Nuveen Asset Management, LLC is a registered investment adviser and an affiliate of Nuveen, LLC.
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