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Low Carbon Value Equity ESG

TIAA Investments
windmills on mountains

Strategy description

Low Carbon Value Equity ESG seeks favorable long-term total return, delivering large cap value exposure with a limited carbon footprint. The portfolio invests in Low Carbon and ESG (environmental, social and governance) companies whose current valuations underestimate earnings potential.1

Asset class: Responsible investing

For term definitions and index descriptions, please access the glossary in the footer.

Portfolio at-a-glance

Benchmark Russell 1000® value index
Number of positions 50 - 80
Tracking error 200-400 basis points
Market capitalization > $3B
Maximum position size 6%
Active position 0.5 – 2.0%
Active sector weight +/- 15%
Annual turnover ~20%

 

Investment Process

The investment process employs a pragmatic value approach, assessing company earnings and market prices while seeking signs of improvement to construct a “value spread” aware portfolio.  The portfolio evaluates current and future carbon emissions to identify companies with a lower carbon footprint.  Multi-level risk controls maintain a consistent approach and adherence to investment guidelines.

Resources

1 Environmental, social and governance (ESG) refers to three central factors in measuring the sustainability and ethical impact of an investment in a company or business.

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 advisor 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. The Strategy is subject to certain risks, such as market and investment-style risks. Please consider all risks carefully prior to investing. Because its ESG criteria excludes some investments, the Strategy may not be able to take advantage of the same opportunities or market trends as strategies that do not use such criteria. Investments in small-to medium-sized corporations are more vulnerable to financial risks and other risks than larger corporations and may involve a higher degree of price volatility than investments in the general equity markets. 

The investment advisory services, strategies and expertise of TIAA Investments, a division of Nuveen, are provided by Teachers Advisors, LLC and TIAA-CREF Investment Management, LLC.