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Core Impact Bond

Core Impact Bond

Strategy highlights
  • Core bond fund: Actively managed high-quality bond portfolio
  • Environmental, social and governance (ESG) quality: Bonds must demonstrate ESG leadership within their issuers’ industries, which can help add value to performance and mitigate risk
  • Environmental and societal impact: Strategic allocation to bonds with direct and measurable impact within affordable housing, community or economic development, and renewable energy and natural resources

Strategy description

A core bond strategy that seeks to deliver current income and capital appreciation through individual securities that demonstrate environmental, social and governance (ESG) leadership and an actively managed commingled fund that seeks to maximize direct and measurable environmental and social impact.

Investment process

Our process emphasizes systematic collaboration to pursue solid risk-adjusted returns over long-term time horizons. The global fixed income investment committee serves as a forum for debating investment views and developing relative value perspectives. The lead portfolio managers are accountable for portfolio construction, risk management and performance outcomes. Specialized teams of sector portfolio managers, analysts and traders cover the global fixed income markets and provide security positioning recommendations according to relative value, conviction, expected interaction with portfolio positions, and the mandate’s overall risk posture and investment objectives.

At-a-glance

Benchmark

Bloomberg U.S. Aggregate Bond Index

Target allocation / Portfolio composition

Broad fixed income market exposure:
Core Impact Bond Managed Accounts Portfolio (MAP) - 40%
-Investment grade corporates
-Securitized sectors: MBS, CMBS, ABS
-Municipal bonds, primarily taxable
-High yield corporates
-Emerging markets debt
Individual securities - 60%
-Investment grade U.S. corporates exhibiting ESG leadership
-U.S. Treasuries and U.S. agencies

Account minimum

$350,000

Duration

+/-15% of benchmark's duration

Quality

Predominantly investment grade

Core Impact Bond Managed Accounts Portfolio (MAP) limitations

• Up to 40% allocation in account
• Up to 10% below investment grade
• Up to 40% in non-U.S. issuers, including up to 10-30% in emerging markets issuers

Literature and resources

Nuveen Managed Accounts Portfolios (MAPs) are specialized, registered investment portfolios offered only to Nuveen sponsored separately managed accounts. No direct offering or promotion of this portfolio is made hereby.

Customization only available on individual securities portion of portfolio and customization may require higher AUM minimums.

A separately managed account (SMA) is a private portfolio of actively managed, individual securities that may be customized to achieve an individual investor's unique objectives.

SMA accounts typically require a minimum investment of $100,000 for equity and asset allocation strategies and $350,000 for fixed income strategies, although the specific minimum account size varies by program and may be subject to change. The manager may waive these minimums based on client type, asset class, pre-existing relationship with client and other factors. For certain accounts, a negotiated minimum annual fee applies. Please consult with your Nuveen Advisor Consultant for applicable minimums.

Important information on risk

Investing involves risk; principal loss is possible. Debt or fixed income securities are subject to market risk, credit risk, interest rate risk, call risk, derivatives risk, dollar roll transaction risk and income risk. As interest rates rise, bond prices fall. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Preferred securities are subordinated to bonds and other debt instruments in a company’s capital structure and therefore are subject to greater credit risk. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, inflation, social, economic, political risks and different accounting standards, all of which may be enhanced in emerging markets of developing countries. Asset-backed and mortgage-backed securities are subject to additional risks such as prepayment risk, liquidity risk, default risk and adverse economic developments. These investments are subject to credit risk and potentially limited liquidity, as well as interest rate risk, currency risk, prepayment and extension risk, and inflation risk.

Responsible investing incorporates Environmental Social Governance (ESG) factors that may affect exposure to issuers, sectors, industries, limiting the type and number of investment opportunities available, which could result in excluding investments that perform well. Environmental, social and governance (ESG) refers to three central factors in measuring the sustainability and ethical impact of an investment in a company or business.

Check with your financial professional for specific product availability and performance information. This information may change without notice. From time to time, we may close or reopen strategies.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

Nuveen Asset Management, LLC is a registered investment adviser and an affiliate of Nuveen, LLC.

S-3758227P-E0724W

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