Nuveen Expands with Strategic Acquisition of Brooklyn Investment Group

Nuveen has announced its acquisition of Brooklyn Investment Group and its parent technology company to bolster its presence in the burgeoning field of direct indexing. This investment strategy allows asset managers to replicate indices like the S&P 500 by owning individual stock components, offering tax breaks and customizable investment options.

Increasingly popular among younger and tax-savvy investors, direct indexing has shown substantial growth, with assets managed under this strategy rising at a compound annual growth rate of 12.7% over the past five years, according to Morgan Stanley. Prominent firms like BlackRock and Vanguard have also made similar acquisition efforts in recent years.

Nuveen, a Chicago-based asset manager, intends to focus on integrating their new capabilities with tax-advantaged products, optimizing client experience, and utilizing Brooklyn's advanced technological offerings. Nuveen, a subsidiary of Teachers Insurance and Annuity Association of America, currently manages $1.3 trillion in assets across 32 countries.

(With inputs from agencies.)