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Preferred Securities and Income

Preferred Securities and Income

Strategy highlights
  • Attractive income potential: Can provide opportunity for more income, a portion of which may be tax advantaged, by offering access to preferred securities
  • Broad market opportunity: A specialized team actively invests across the global credit spectrum in both retail and institutional preferred securities and income issues
  • Risk and reward balance: A research-driven approach helps optimize value and minimize risk in order to enhance yields and long-term performance

Strategy description

The Preferred Securities and Income strategy seeks to deliver current income and capital appreciation through individual securities and an actively managed fee-waived mutual fund, which offers diversification into $25 par high-yield, $1000 par investment grade and high yield, and contingent capital securities (“CoCos”).

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

60% ICE BofA Core Plus Fixed Rate Preferred Securities Index
24% ICE US Institutional Capital Securities Index
16% ICE USD Contingent Capital Index

Portfolio composition

Broad preferred securities market exposure:
Managed Accounts Portfolio (MAP)
-$25 par high yield
-$1000 par investment grade
-$1000 par high yield
-CoCos
Individual securities
-$25 par investment grade

Typical exposures

• Up to 20% below investment grade
• Target at least 25% in financial sector
• USD denominated securities only

Account minimum

$50,000

Literature and resources

Nuveen Managed Accounts Portfolios (MAPs) are specialized, registered investment portfolios offered only to Nuveen sponsored separately managed accounts. No direct offering or promotion of this portfolio is made hereby.

Customization only available on individual securities portion of portfolio and customization may require higher AUM minimums.

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 $50,000 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

All investments carry a certain degree of risks and it is important to review investment objectives, risk tolerance, tax-liability and liquidity needs before choosing an investment style or manager. Strategy may frequently invest in derivatives which can include, but are not limited to, options, futures contracts and options on futures contracts, foreign currency contracts, interest rate, total return and credit default swaps, options on swap agreements and interest rate caps and floors. Reasons for investing in derivatives include, but are not limited to, the following: to gain exposure to or protect against changes in the market, to maintain sufficient liquidity, to meet redemption requests, to provide protection against defaults, and to manage exposure to interest rates, credit risks and foreign currencies. A purchase or sell of a derivatives may result in certain risk including, but not limited to, losses in excess of the amount invested, unfavorable changes in interest rates, foreign currency risk, liquidity and default on the contract by counterparty. Portfolio in the composite do not borrow money for investment purposes.

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.

4011268-1126

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