CHICAGO Nuveen Investments Inc. as part of its effort to attract more pension fund and other institutional clients by expanding into the alpha space and pushing out on the risk-return spectrum has seeded more than eight new funds over the last two years with its own capital as well as some client money, said Mark J.P. Anson, president and executive director.
Nuveens subsidiary investment management boutiques are implementing the new strategies, which officials at the Chicago-based money management company have hesitated to disclose publicly because they all are in development, Mr. Anson said.
Among those Nuveen is willing to reveal is an ecologic portfolio that was launched by Santa Barbara Asset Management LLC, Santa Barbara, Calif. The strategy, broader than its name implies, uses environmental, social and governance factors to screen U.S. growth equities for the portfolio, said Jamshaud Zovein, managing director of Nuveen. Mr. Zovein is head of the firms institutional product development, working with the investment product committee to come up with new strategies that fit the investment strength and capability of each boutique.
The screen looks for companies demonstrating leadership in positively affecting those three key areas, Mr. Zovein said. The portfolio was seeded in July with $1 million from Nuveen.
Nuveen, which helps its boutiques market their funds, plans to promote the strategy for institutional separate accounts or commingled funds.
There is a lot of institutional investing in ESG, Mr. Zovein said. This strategy is topical, so we will be able to get doors open at some of the big consulting firms.
Realistically it is an 18-month lead time for (potential clients) to think the product is delivering on its investment strategy.
A global energy strategy was seeded in April by Nuveen and a number of clients, said Mr. Zovein, who declined to disclose the amount of the fund. The strategy is managed by NWQ Investment Management Co., Los Angeles.
Under the strategy, the manager has the flexibility to invest in private equity and publicly traded stocks of companies involved in the exploration, production and related services of conventional and alternative energy, as well as short securities in the sector. Up to 25% of the portfolio can be in private equity.
Right now we are still getting our arms around how we will market this strategy, which will be predominantly invested in U.S. companies, Mr. Zovein said.
We are trying to enhance our reputation among institutional investors, Mr. Zovein said.
Nuveen hopes to raise its assets from institutional clients to 50% of total assets from the current 40%, though it hasnt put a timeframe for the growth, Mr. Zovein said.
Nuveen and its subsidiaries had $152 billion total under management as of June 30.
Contact Barry B. Burr at [email protected]