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Financial Professional
  • Institutional Investor
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  • Global Cities REIT (GCREIT)
  • Green Capital
  • Private Capital Income Fund (PCAP)
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Preferred Securities

  • Attractive income potential: Can provide opportunity for more income, a portion of which may be tax advantaged, by offering access to preferred securities
  • Focus on higher-quality investments: Primarily investment grade preferred securities with a focus on highly regulated industries, such as banks, utilities and insurance companies
  • Risk and reward balance: A research-driven approach that seeks to help optimize value and minimize risk in order to enhance yields and long-term performance

Strategy description

Preferred Securities seeks to generate current income and total return by investing in exchange-traded $25 par preferred securities.

Investment process

Nuveen seeks to optimize value primarily through a top-down, quantitative driven process focusing on relative value between industry sectors, while also incorporating bottom up fundamental credit research analysis. We focus on stable and improving credits that offer a potential for attractive income and total return.

 

At-a-glance

Benchmark

ICE BofA Core Plus Fixed Rate
Preferred Securities Index

Portfolio composition

$25 par value securities
Typically 50 - 80 securities

Account minimum

$100,000

Duration

Intermediate term

Quality

Individual security credit quality of BBB- (at time of purchase)

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 $250,000 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.

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.

A word on risk

All investments carry a certain degree of risk, including possible loss of principal, and there is no assurance that an investment will provide positive performance over any period of time. It is important to review investment objectives, risk tolerance, tax liability and liquidity needs before choosing an investment style or manager. Equity investments are subject to market risk or the risk that stocks will decline in response to such factors as adverse company news or industry developments or a general economic decline. A focus on dividend-paying securities presents the risks of greater exposure to certain economic sectors rather than the broad equity market (sector or concentration risk). Foreign investments involve additional risks. The strategy’s potential investment in non-U.S. stocks presents risks such as political risk, exchange rate risk, lack of liquidity and inflationary risk, economic change, social unrest, changes in government relations, and different accounting standards. This strategy may invest in American Depositary Receipts (ADRs). ADRs do not eliminate the currency and economic risks for the underlying shares in another country. Dividends are not guaranteed and will fluctuate. Dividend yield is one component of performance and should not be the only consideration for investment.

Nuveen Asset Management, LLC is a registered investment adviser and an investment specialist of Nuveen, LLC.

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