1 Additional capabilities available by request. Brooklyn's acceptance of any security used for funding a Long/Short SMA is subject to client portfolio review and could change based on security margin ability, strategy selection and/or other factors.
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
Past performance is no guarantee of future results. All investments carry a certain degree of risk, including the possible loss of principal, and there is no assurance that an investment will provide positive performance over any period of time. Certain products and services may not be available to all entities or persons. There is no guarantee that investment objectives will be achieved. See the applicable product literature for details. 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. In addition, growth stocks or growth investing may fall out of favor and underperform value stocks and other investing styles over any period of time. Certain sectors or growth stocks may shift characteristics over a long market cycle and may not perform in line with stated benchmarks. Investments in foreign securities are subject to special risks, including currency fluctuation and political and economic instability. These risks are often heightened for investments in emerging markets.
The following risks are associated with long/short strategies and must be communicated to any end client on whose behalf such strategy is to be utilized: Market risk can lead to loss due to the impact of general market movements. Idiosyncratic risk, due to company-specific factors that are generally not correlated with the broad market environment, can lead to loss. Short-sale risk can amplify losses if the stock price appreciates. Borrow risk can result in a “short squeeze,” meaning that securities borrowed with a short sale need to be returned to the securities lender on short notice and at a time when other short sellers of the security are receiving similar requests, compelling the end client to buy such securities on the open market at prices significantly in excess of the proceeds received, which can lead to loss. Leverage risk, due to time-varying correlations that introduce unexpected net exposures between longs and shorts, resulting in improper portfolio hedging. Investors using leverage should realize that one can lose the full balance of their account. It is also possible to lose more than the initial deposit when using leverage. All funds committed should be purely risk capital. Borrow rate risk for stocks can lead to loss.
Tracking error risk: Tracking error risk refers to the risk that the performance of a client portfolio may not match or correlate to that of the index it attempts to track, either on a daily or aggregate basis. Factors such as fees and trading expenses, client-imposed restrictions, tax-loss harvesting, imperfect correlation between the portfolio’s investments and the index, changes to the composition of the index, regulatory policies, and high portfolio turnover all contribute to tracking error. Tracking error risk may cause the performance of a client portfolio to be less or more than expected.
Tax-managed investing risk: Investment strategies that seek to enhance after-tax performance may be unable to fully realize strategic gains or harvest losses due to various factors. Any reduction in taxes will depend on an investor’s specific tax situation. Market conditions may limit the ability to generate tax losses. A tax-managed strategy may cause a client portfolio to hold a security in order to achieve more favorable tax treatment or to sell a security in order to create tax losses. A tax loss realized by a U.S. investor after selling a security will be negated if the investor purchases the security within thirty days. Although portfolio managers can seek to avoid such a “wash sales” and temporarily restrict securities sold at a loss within the same portfolio, a wash sale can inadvertently occur for a variety of factors, including trading in other accounts, including accounts managed by the same investment adviser, client-directed activity and account contributions, withdrawals or rebalancing. Investment strategies that employ tax-loss harvesting also involve the risk that a replacement investment could perform worse than the original investment and that such factor, as well as transaction costs, could offset any potential tax
benefit. Neither Nuveen nor Brooklyn Investment Group, LLC can offer tax advice. Nuveen and Brooklyn are not tax professionals. Investors should discuss the implications of tax-managed strategies, including but not limited to, the suitability and likely tax treatment of the long/short strategies in their particular circumstances, with their tax and financial professional before making any tax or investment decisions. Tax rates and IRS regulations are subject to change at any time, which could materially affect the information provided herein.Tax treatment of the long / short strategies cannot be guaranteed, may constitute deferral, and may not be suitable for all end clients to pursue.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
Brooklyn Investment Group, LLC is an SEC-registered investment adviser and a wholly-owned subsidiary of Brooklyn Artificial Intelligence, Inc. Brooklyn Investment Group, LLC (“Brooklyn”) and its parent company Brooklyn Artificial Intelligence, Inc. are subsidiaries of Nuveen, LLC, a subsidiary of Teachers Insurance and Annuity Association of America (also known as “TIAA”). Brooklyn is an affiliated investment adviser of Nuveen Asset Management, LLC (“NAM”).
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