Chi-town asset manager Nuveen [profile] has unveiled a suite of nine large cap funds that will be managed by chief equity strategist and senior PM Bob Doll.
The suite consists of three products silos, traditional, specialty and alternative, with three funds in each. Six of them were newly created, while another three were transitioned to Doll.
The funds are:
Traditional Nuveen Large Cap Value Fund (NNGAX) (transitioned) Nuveen Large Cap Core Fund (NLACX) Nuveen Large Cap Growth Fund (NLAGX) Specialty Nuveen Core Dividend Fund (NCDAX) Nuveen Concentrated Core Fund (NCADX) Nuveen Growth Fund (NSAGX) (transitioned) Alternative Nuveen Large Cap Core Plus Fund (NLAPX) Nuveen Equity/Long Short Fund (NELAX) (transitioned) Nuveen Equity Market Neutral Fund (NMAEX)
In an interview with MFWire, Doll explained that the nine products are all centered around one investment process, which is a combination of quantitative and fundamental research with some portfolio risk management construction.
"This is a good time for investors to look at equities. We don't think the cyclical bull market is over, even though it has taken a bit of a pause," he said.
The first silo, he said, focus on traditional big bucket large caps, while the second includes dividend, 20-stock concentration and stable/defensive growth flavors. The third category, alts, can go short.
Doll is supported in the management of these funds by a team of 17 fundamental and three quantitative analysts.
Doll said that while many fundamental fund team may use some quant screens, and some quant teams may do some fundamental checks in the backend, his process was unique because it is largely a 50-50 split between the two genres.
"The sweet spot is the combination of the two. This is a real attempt to be a 50-50 split between the two methods."
Doll believes that both genres have great advantages and disadvantages and when one is strong, the other is weak, and so they make up for each other.
For example, the strength of quant analysis, he said, allows for quick and compressive drill downs on a variety of crucial factors, but it looks through the rear view mirror. Meanwhile, fundamental can look forward and identity factors not easily quantified, but is very time consuming.
The process starts with the Russell 1000, Doll said. Everything in the funds is from that index.
First, all the stocks in the index are run through a multi-factor quant model, which every day sets up a new rankings list of the stocks from most to least attractive. From this list, the analysts then choose companies which they think merit a deeper research dive and ultimately, selection into the funds.
The funds were seeded in December, Doll says, and have experienced a sweet spot in performance in the first half of 2013.
"We do best when there is a trend in place, where this is progress and fundamental movement in a particular direction," he said.
With these nine products, Doll said Nuveen's plate "is full" currently in terms of new products. The big focus is banging the drum for these funds to financial advisors.
"Large cap equities should be the largest category for most investors, especially U.S. investors. They should be spending a little more time and attention in the category going forward," he said.
Here is the press release:
Company Press Release
Nuveen Asset Management Launches New Equity Strategies Managed by Bob Doll
Respected Portfolio Manager and Strategist Helps Investors Confidently Access Equity MarketSeries to Serve Investors Seeking Traditional, Specialty, and Alternative Equity Investment StrategiesNew Offerings Cement Nuveen Asset Management’s Position as Leading Multi-Asset Class Investment ProviderInvestment Process Draws Upon Expertise of Robust Fundamental and Quantitative Analyst Teams
?Chicago, July 10, 2013—Nuveen Investments is pleased to announce the availability of a new suite of large cap equity mutual funds managed by respected industry leader, Nuveen Asset Management Chief Equity Strategist and Senior Portfolio Manager, Bob Doll. Throughout his 30-year career, Doll has been widely recognized by the industry for his long-term success and market insight. Together with Nuveen Asset Management’s experienced equity team, Bob will manage nine distinct equity investment strategies within Traditional, Specialty, and Alternative categories. These diversified offerings are designed to meet the particular needs of investors looking to access the equity market for the long term, and which now finds itself in a period of stabilizing economies around the globe, continued low inflation, and an environment where stocks are yielding more than bonds for only the second time since the 1950s. ?The following Nuveen mutual funds are included in this large cap equity series with six newly created funds and three funds having recently transitioned to Doll:
Nuveen Large Cap Value Fund (NNGAX) * Nuveen Large Cap Core Fund (NLACX) Nuveen Large Cap Growth Fund (NLAGX)
Nuveen Core Dividend Fund (NCDAX) Nuveen Concentrated Core Fund (NCADX) Nuveen Growth Fund (NSAGX) *
Nuveen Large Cap Core Plus Fund (NLAPX) Nuveen Equity/Long Short Fund (NELAX) * Nuveen Equity Market Neutral Fund (NMAEX)
“We believe that while uncertainty certainly remains the reality across the broader market, opportunities continue to emerge and investors and their advisors need to seize them through smartly configured investment strategies that draw from the strengths of both fundamental and quantitative analysis,” said Doll. “Our goal was to craft a series of strategies that we believe can offer investors quality alpha generation with consistent performance over time. I think we have struck that balance and look forward to helping investors achieve their long-term goals.”
The investment process for this new suite of strategies is based on a balance of fundamental and quantitative inputs. On the fundamental side, Nuveen Asset Management leverages the work of analysts that perform in-depth company- specific analysis. Doll is supported by 17 of these analysts, organized by sector, with an average of 16 years of
industry experience. Doll is also supported by three quantitative analysts with an average of 18 years of industry experience. Together, the team employs proprietary and third-party models to support the management of the portfolios, with some models further customized to reflect Doll’s particular view of key input factors, after which he applies a relative weighting to these models.
With the introduction of the Large Cap Equity Series, these new strategies join a robust field of existing high-quality equity offerings from Nuveen Asset Management, and further solidify the firm’s position as a leading multi-asset class investment manager. Nuveen Asset Management’s overarching equities process has been in existence for more than a decade and is supported by a risk-focused research platform that is fundamentally-driven and enhanced by macroeconomic and quantitative insights. This multi-dimensional approach has allowed the team to focus on taking what it believes are the right risks on behalf of investors as they strive to deliver consistent long-term investment outperformance.
Commenting on the introduction of the new suite of offerings, Nuveen Asset Management President, Bill Huffman said, “For several years now, we have worked to thoughtfully build out and expand our firm’s capabilities, while both cultivating and leveraging the many strengths developed over our long history and for which we are known. This latest step forward is another expression of that strength and we are excited to bring the expertise of Bob and the team to new and existing investors.”
For complete information on these mutual funds—many of which are also available as a retail managed account and as an institutional account—visit http://www.nuveen.com/MutualFunds/LCES/Large-Cap-Equity-Series.aspx.
Additionally, investors and advisors looking to keep up-to-date with and subscribe to Bob Doll’s week commentary and special market reports can visit http://www.nuveen.com/Commentary/BobDoll/WeeklyCommentary.aspx.
Nuveen’s Family of Mutual Funds
Nuveen Investment’ family of mutual funds offer a variety of investing strategies managed with experience and discipline. Each mutual fund is designed to contribute to a well-constructed diversified portfolio. With $50 billion in nearly 100 mutual funds as of Mach 31, 2013, Nuveen Investments offers a broad range of taxable and tax-exempt fixed income, growth, value and global portfolios spanning a variety of objectives and investment styles.
About Nuveen Asset Management
Nuveen Asset Management offers a collaborative approach to multi-strategy portfolio management, driven by integrated research and risk management processes that emphasize quality and ingenuity for our clients. With $125 billion in assets under management as of March 31st, Nuveen Asset Management’s team-based portfolio management structure draws upon the deep expertise of more than 190 portfolio managers and analysts averaging 19 years of industry experience. For more information about the Nuveen Asset Management visit: http://www.nuveen.com/NuveenAssetManagement/Default.aspx.
Mutual fund investing involves risk; principal loss is possible. There is no guarantee a fund’s stated investment objectives will be achieved. Fund risks may include: equity security risk, large cap stock risk, non-diversification risk, smaller company risk, growth stock risk, and value stock risk. Non-U.S. investments involve additional risks, including currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. A fund’s use of futures contracts involves transaction costs and the potential for negative impact on performance. A fund engaging in frequent trading of securities may result in taxable gains to investors and involve trading costs that may impact fund performance. A fund’s use of short selling is a form of leverage and involves additional expense and risks including market loss and increased volatility of returns.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the funds carefully before investing. For a prospectus which contains this and other information relevant to an investment in the fund, please contact your securities representative or Nuveen Investments, LLC, 333 W. Wacker Drive, Chicago, IL 60606. Investors should read the prospectus carefully before they invest or send money.
* The Nuveen Large Cap Value Fund was previously known as the Nuveen Multi-manager Large Cap Value Fund and now managed using Bob Doll’s investment process. The Nuveen Growth Fund has been co-managed by Bob and Nancy Crouse since the fund transitioned from Nuveen affiliate Santa Barbara Asset Management to Nuveen Asset Management in December 2012. In March 2013, Doll assumed portfolio management responsibility for the Nuveen Equity Long/Short Fund, which had not previously been available publicly. Doll is joined by co-portfolio managers Tony Burger and Scott Tonneson.
Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates—Nuveen Asset Management, LLC, Symphony Asset Management LLC, NWQ Investment Management Company, LLC, Santa Barbara Asset Management, LLC, Tradewinds Global Investors, LLC, Winslow Capital Management, LLC and Gresham Investment Management LLC all of which are registered investment advisers and subsidiaries of Nuveen Investments, Inc. In total, Nuveen Investments managed approximately $224 billion as of March 31, 2013. For more information, please visit the Nuveen Investments website at www.nuveen.com.