Nuveen CLO ETF: New Alts Offering
- Nuveen is growing its choice investment offerings with a new collateralized loan obligation (CLO) exchange-traded fund (ETF).
- The investment management arm of TIAA also plans to transform its CLO Opportunities Fund into the Nuveen Enhanced CLO Income Fund during the frist quarter of 2025.
- Jeff Carlin, head of global wealth advisory services at Nuveen, noted the increasing client demand for alternative credit allocation options.
Nuveen’s new CLO ETF strategy targets AA-BBB rated tranches, aiming for high current income and total return, marking a notable expansion of its alternatives platform. This innovative CLO ETF distinguishes itself by focusing on specific risk-rated CLO investments, offering an alternative approach to traditional offerings. Addressing the growing demand for alternative credit allocation, nuveen is also converting its CLO Opportunities Fund into the Nuveen Enhanced CLO Income Fund in early 2025, and has established the Private Markets Institute for advisor education. Nuveen, managing over $294 billion in alternative investments, is increasing access to private asset portfolios.Read the full piece at News Directory 3 to find out more about Nuveen’s $43 billion CLO platform! Discover what’s next in Nuveen’s commitment to providing diverse investment choices.
Nuveen Launches New CLO ETF Strategy, Expands Alternatives Platform
Nuveen is growing its choice investment offerings with a new collateralized loan obligation (CLO) exchange-traded fund (ETF). This new CLO ETF will concentrate on AA-BBB rated CLO tranches, seeking to deliver both strong current income and total return for investors. This approach differentiates it from many existing CLO ETFs that primarily target AAA-rated CLOs.
The investment management arm of TIAA also plans to transform its CLO Opportunities Fund into the Nuveen Enhanced CLO Income Fund during the frist quarter of 2025. This interval fund will invest in both debt and equity tranches of CLOs. Nuveen’s leveraged finance team currently manages $43 billion in assets, including $17.8 billion within its CLO platform.
Jeff Carlin, head of global wealth advisory services at Nuveen, noted the increasing client demand for alternative credit allocation options. “To complement traditional income portfolios, and with increased awareness of the robust yields and lower historical defaults of CLOs, we’re seeing notable demand among our clients for this attractive alternative credit allocation,” Carlin said.
To further support investors and advisors, Nuveen announced the creation of its Private Markets Institute. This institute will provide educational resources and practical support to help advisors more effectively engage clients in private market investments. Joy Crenshaw, head of advisor development at Nuveen, will lead this initiative.
Nuveen currently manages over $294 billion in alternative investments across various strategies. The firm aims to broaden access to these private asset portfolios for both individual investors and advisors.
What’s next
Looking ahead, Nuveen will focus on integrating the new CLO ETF into its platform and expanding the reach of its Private Markets Institute to better serve investors interested in alternative investment strategies.