Strategy Offers Differentiated Opportunity for Additional Yield
NEW YORK, April 30, 2025 -- Nuveen, the investment manager of TIAA, is expanding its separately managed account (SMA) platform with the launch of the Nuveen High Income Municipal SMA, broadening the range of municipal high yield investment vehicles available to wealth clients.
With the new SMA, high yield exposure can now be accessed across the entirety of Nuveen's nearly $200 billion municipal platform that offers mutual funds, closed-end funds, exchanged traded funds (ETFs), SMAs, model portfolios, LPs, and an interval fund. This launch follows the January 2025 addition of two actively-managed muni ETFs, underscoring Nuveen's commitment to delivering its muni expertise across the product wrappers that best meet clients' needs.
The strategy invests in non-investment grade and investment grade tax-exempt bonds, leveraging Nuveen's highly specialized credit research team to deliver an investment solution focused on generating higher levels of tax-free income that is not yet widely available via the SMA wrapper. The portfolio allocates a minimum of 40% to investment grade bonds and up to 60% in high income bonds.
"The current $1.6 trillion muni SMA market has been dominated largely by high grade strategies, with few offering true high yield exposure," said Daniel Close, Head of Municipals at Nuveen. "Our High Income Municipal SMA offers the potential to generate attractive levels of income for investors seeking high tax-exempt yields with enhanced total return potential as well as the tax benefits of an SMA."
About the Strategy: | |
Name: | Nuveen High Income Municipal SMA |
Investment Objective: | Primarily invests in municipal bonds across both investment-grade and non-investment grade credit spectrums. Seeks to deliver investors a high level of tax-free income. |
Reference Benchmark: | Bloomberg Municipal Bond Index |
Portfolio Managers: | Martin J. Doyle, CFA; Patrick R. Maher |
About Nuveen's Municipal Platform
Nuveen is an industry leader ranking among the largest municipal fund managers, with nearly 80 investment professionals averaging 22 years of experience. The firm's specialized municipal credit research team is one of the largest and most experienced in the asset class and was recently named the #1 team in the 2024 Smith's All-Star Municipal Analysts Awards1.
About Nuveen's SMA Suite
As the 11th largest firm in overall SMA market share2, Nuveen offers a range of strategies addressing growing investor interest in personalization and adaptability as they seek out solutions to meet their individualized financial objectives. Nuveen's SMA capabilities cover municipal and taxable fixed income approaches seeking yield or total return; diverse equity capabilities across geography, capitalization and style, and nontraditional offerings including direct indexing and multi-asset.
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