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separately managed accounts | municipal fixed income Intermediate-Term Municipal Bond second quarter 2017 (as of 6/30/2017) Firm Facts ▪▪ Nuveen Asset Management is a premier investment boutique with a product and service mix that spans from traditional and specialized equity to municipal and taxable fixed income ▪▪ 192 investment professionals ▪▪ $167.4 billion in assets under management1 Investment Objective ▪▪ Focus on total return performance while seeking to provide consistent income Investment Process ▪▪ The Municipal Security Investment Oversight Group and Investment Teams consider four strategic inputs – economic outlook, credit analysis, trading and yield curve analysis – when determining overall investment strategy. ▪▪ The Municipal Security Investment Oversight Group provides the Investment Teams with targets and/or guidelines regarding duration, sectors and credit quality. ▪▪ The Investment Teams utilize the Municipal Securities Investment Oversight Group targets and guidelines in portfolio construction (which can include the opportunistic use of leverage) and employ their expertise with regard to yield curve positioning and security structure. ▪▪ Performance is regularly evaluated through attribution analysis. Strategic Inputs Client Portfolio Objectives Strategy Economic Outlook Credit Analysis Trading Yield Curve Analysis NAM Municipal Security Investment Oversight Groups4 Duration Sectors Credit Quality Yield Curve Security Positioning Structure Investment Philosophy ▪▪ Manage risks to aid investment performance consistency ▪▪ Design client portfolios that seek to provide current income that enhances an entire portfolio ▪▪ Use a value-oriented approach to rigorously evaluate securities and sectors, select attractive bond structures and position the portfolio within appropriate maturity and duration ranges Attribution Analysis Intermediate-Term (Gross) ▪▪ Option to omit bonds subject to AMT ▪▪ Tax-aware investing3 ▪▪ State portfolios available in select states Intermediate-Term (Net) B loomberg Barclays 3-15 Year Blend (2-17) Municipal Bond Index 5% 0% -5% QTD 2.06% 1.74 1.81 1 Yr -0.81% -2.05 -0.23 3 Yrs 3.08% 1.80 2.91 5 Yrs 2.88% 1.61 2.90 7 Yrs 3.88% 2.59 3.81 10 Yrs 4.41% 3.12 4.55 Calendar Year Performance7,8 ▪▪ Focus on tax-aware investing3 Customization NAM Investment Team5 6,7, 8,9 ▪▪ Active management ▪▪ High-quality bonds (BBB- or better)2 Implementation Annualized Performance Investment Highlights ▪▪ Intermediate-term duration Performance Intermediate-Term (Gross) Intermediate-Term (Net) 3.56% -0.12 3.46 7.13 -1.99 5.07 10.85 2.91 8.26 1.49 4.22 2.92% -1.36 2.17 5.80 -3.20 3.77 9.49 1.63 6.93 0.23 2.95 2017 YTD9 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 1 Assets under management (AUM) as of 6/30/17. 2 At time of purchase, bonds must be rated investment grade. 3 Nuveen is not a tax advisor. 4 The Municipal Security Oversight Group includes portfolio managers and other members of the municipal team. 5 The Investment Team is composed of portfolio managers and trading assistants. 6 Periods greater than one year are annualized. NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE Bloomberg Barclays 3-15 Year Blend 3.49% -0.05 3.06 6.96 -1.24 5.15 9.63 3.14 9.46 2.27 4.46 7 The inception date is 4/1/95. The results explanation on the second page of this profile is an integral part of the performance presentation. Past performance is no guarantee of future results. 8 The benchmark is the Bloomberg Barclays 3-15 Year Blend (2-17) Municipal Bond Index. Benchmark returns are sourced through RIMES. 9 Preliminary. Final numbers are available upon request by contacting Nuveen Investments Advisers, LLC. 1 second quarter 2017 (as of 6/30/2017) Intermediate-Term Municipal Bond Portfolio Characteristics ▪▪ Average Maturity Target ▪▪ Average Duration Target ▪▪ Average Quality Target ▪▪ Average Annual Turnover ▪▪ Typical Number of Holdings Sector Weightings 7–10 years 5–6.5 years AA+10 15%–40% 8–15 11,12 ■ Education13 ■ Electric13 ■ Hospital13 ■ Housing13 ■ IDR/PCR13,14 Credit Quality 9.2% 3.3% 9.3% 1.0% 0.0% ■ Leasing13 9.5% ■ Local GO 28.3% ■ Other15 0.8% ■ Prerefunded 3.9% ■ Resource Recovery13 0.2% ■ Special Tax13 11.6% ■ State GO 6.8% ■ Transportation13 6.6% ■ Water & Sewer13 9.5% 11 ■ AAA ■ AA ■A 26.3% 61.9% 11.2% ■ BBB 0.2% ■ Other/Non-Rated 0.5% 10 Nuveen Asset Management, LLC (“NAM”) employs the following criteria when referring to managed accounts’ municipal bond average credit quality (“ACQ”): ratings are from nationally recognized statistical rating organizations (“NRSRO”). Split-rated securities receive the highest rating. ACQ is calculated by NAM, using statistical tools and the most current ratings available from third-party sources on all securities, but no guarantees are made with respect to their accuracy or completeness. A portfolio may include substantial holdin gs of individual securities that are rated materially higher or lower than the average. ACQ does not necessarily reflect the credit risk of individual holdings and its potential impact on an overall portfolio. For example, ACQ may understate the credit risk from a substantial holding in a lower-rated security. There are limitations associated with the use of ACQ as a gauge of portfolio credit risk. Securities not rated by a NRSRO are identified as non-rated, and are not included in the ACQ calculation. Inherited securities may be unrated and reside in the portfolio over the shortterm. Unrated securities are not purchased by NAM for managed accounts. A portfolio’s individual holdings, the ratings of these holdings, and the ACQ of a portfolio may change over time. For certain strategies and/or programs, additional restrictions may apply. 11 Source: Nuveen Asset Management. Data tabulated using Perform SMA by Investortools, Inc. customized for Nuveen Investments. Based on the Bloomberg Barclays Municipal Bond Index categories. The portfolio characteristics represent all accounts that are: at least 45 days old as of the end of the previous quarter; have a market value of at least $100,000; and have an allocation to cash less than or equal to 5%. All data is preliminary and subject to change. 12 Based on the four main sectors of the Bloomberg Barclays Municipal Bond Index (State and Local Government Obligation Bonds, Revenue Bonds, Insured Bonds and Prerefunded Bonds). The Bloomberg Barclays classification system includes bonds in the insured sector only if obligations of the insurer are rated Aa3/AA- or higher. For the NAM portfolio sector weightings above, any insured bonds are included within various sector categories. 13 Subset of the Revenue Bond Sector. 14 Industrial development revenue bonds and pollution control revenue bonds. 15 Includes municipal bonds that have not yet been classified or do not conform to the classification of the main quality ratings or sectors. Cash is not included. This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy or sell securities, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor’s objectives and circumstances and in consultation with his or her advisors. This strategy is only provided through separately managed accounts program sponsors. Check with your financial advisor for availability. Clients should consult their financial advisors before making any investment decisions. Financial advisors should consider the suitability of the manager, strategy and program for its clients on an initial and ongoing basis. do include the deduction of fees and certain other expenses in the form of comprehensive wrap-fees. Net of fee performance was calculated using the highest applicable annual fee of 1.25%, applied monthly. For additional information regarding fees specific to a broker-dealer program, contact your referring financial advisor. Individual returns may vary based on factors such as the account type, market value, cash flows and fees. The Composite is benchmarked against the unmanaged Bloomberg Barclays 3-15 Year Blend (2-17) Municipal Bond Index, which is produced by Bloomberg L.P. to measure the returns of general obligation bonds, revenue bonds, insured bonds and pre-refunded bonds, all in the maturity range of 2 to 17 years. To be included in the index, bonds must be rated investment-grade (Baa3/BBB- or higher) by one or more of the following rating agencies: Moody’s, S&P, or Fitch (using the lower of two, or the middle of three ratings). Bonds must also meet requirements for par amount outstanding, and must be at least one year from their maturity date. The weighting of each security is based on its relative market value. Benchmark returns are sourced through RIMES. This benchmark was changed in the first quarter of 2011 from the Bloomberg Barclays 7-Year Municipal Bond Index. This retroactive change was made after determining that the maturity range encompassed in the Bloomberg Barclays 3-15 Year Blend (2-17) Municipal Bond Index was a better representation of the Intermediate-Term strategy. Benchmark data was obtained from third party sources deemed reliable but not guaranteed for accuracy or completeness. NAM’s municipal fixed income accounts may significantly differ from a benchmark in number of holdings and because they include selected securities whose inclusion and weightings are based on discretion. All indices are unmanaged and unavailable for direct investment. Index returns include reinvestment of income and do not reflect investment advisory and other fees that would reduce performance in an actual client account. NAM is an affiliate and the successor to the portfolio management business of Nuveen Asset Management effective 1/1/11. Past performance is no guarantee of future results. All investments carry a certain degree of risk; it is important to review investment objectives, risk tolerance, liquidity needs, tax consequences and any other considerations before choosing an investment style or manager. An investment in any municipal portfolio should be made with an understanding of the risks involved in investing in municipal bonds such as interest rate risk, credit risk and market risk, including the possible loss of principal. The value of the portfolio will fluctuate based on the value of the underlying securities. Concentration in a small number of holdings may increase risk exposure. A $250,000 account in this strategy typically holds 8-15 individual bonds under normal circumstances. The number of bonds may vary and may be greater or fewer based on factors such as account size, client transactions and market conditions. Accordingly, one or more individual bonds may each represent greater than 10% of the account. A decline in value of any one or more individual bonds may have a material impact on the account value. Please contact your tax advisor regarding the suitability of tax-exempt investments in your portfolio. If sold prior to maturity, municipal securities are subject to gain/losses based on the level of interest rates, market conditions and the credit quality of the issuer. Income may be subject to the alternative minimum tax (AMT) and/or state and local taxes, based on your state of residence. Income from municipal bonds held by a portfolio could be declared taxable because of unfavorable changes in tax laws, adverse interpretations by the Internal Revenue Service or state tax authorities, or noncompliant conduct of a bond issuer. Clients should consult their financial advisors regarding unknown financial terms and concepts. Nuveen Investments Advisers, LLC (“NIA”), a registered investment adviser, provides Separately Managed Accounts marketing services for its affiliates that are registered investment advisers, including NAM. Both NIA and NAM are affiliates of Nuveen, LLC. This report is provided by NIA. PERFORMANCE NOTES Nuveen Asset Management, LLC (“NAM”) offers its services either directly to clients (fee-based “direct-advisory” accounts, fee-based “institutional” accounts and “commission-based” accounts) or through broker-dealer programs as an advisor or sub-advisor (fee-based “advisor-sponsored” accounts). NAM is presenting a Composite of Intermediate-Term Advisor-Sponsored Accounts (the “Composite”). The inception date is 4/1/95. For each quarter NAM has prepared the Composite by calculating the asset-weighted average return of all fee-based advisorsponsored accounts that had been managed on a discretionary basis according to NAM’s intermediate-term investment-grade municipal fixed income strategy; NAM currently defines ‘intermediate-term’ as an average portfolio maturity of generally 7 to 10 years and ‘investment-grade’ as securities rated Baa3 or higher by Moody’s and/or BBB- or higher by Standard & Poor’s (however, the Composite may include certain accounts that are restricted to securities rated ‘uppermedium investment-grade’, A3 or higher by Moody’s and/or A- or higher by Standard & Poor’s). Accounts with significant cash flows (currently defined by NAM as an external flow [either in cash and/or securities] greater than 50% of an account’s beginning market value for the quarter) are removed from the composite for the entire quarter in which the cash flow occurred; such accounts, as well as new accounts, are given a grace period for investment (currently four to six weeks) before they are reviewed for inclusion in a composite. Although there is no minimum account size for inclusion in the Composite, NAM does not normally accept accounts less than $100,000 ($250,000 for state-specific). For fee-based advisor-sponsored accounts, returns on a gross-of- fees basis do not include the deduction of trading commissions, other transaction costs or fees; returns on a net-of-fees basis COMPOSITE STATISTICS 2017 YTD16 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 # of Accounts 18,017 17,467 15,175 14,311 13,896 14,438 13,941 13,942 13,215 12,066 12,235 Assets ($M) $13,404.2 12,623.3 11,490.4 10,805.2 10,256.4 11,624.9 11,208.5 10,829.9 10,495.6 9,277.0 9,108.0 16 Preliminary. Final numbers are available upon request by contacting Nuveen Investments Advisers, LLC. Nuveen Investments Advisers, LLC | 333 West Wacker Drive | Chicago, IL 60606 | 800.752.8700 | nuveen.com 2 AFS-NITCAPAS-0617P 227532-INV-Q-10/17 Totals may not equal 100% due to rounding.