Nuveen, investment management arm of TIAA, has made its US quantitative small and mid-cap equity strategy available to European investors.
The strategy, which has more than $4.5bn in assets under management and running since August 2016, oversees $1.4tn globally.
The fund invests at least 80% of its assets in the equity securities of small and mid-sized US companies in various sectors, growth profiles and valuations. It aims to deliver long-term total returns and outperform the Russell 2500 Index over a full market cycle.
Nuveen said the strategy uses a systematic active management approach based on an internal multi-factor stock selection model. It categorises securities into three separate risk groups. Each category is assessed using a tailored set of signals designed to evaluate stocks’ alpha potential and then use din portfolio construction.
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“We’ve seen growing client demand for US small and mid-cap equities among European investors, with the industry experiencing positive net flows over the past twelve and eighteen months,” said Christina Volkmann, head of business development, DACH, Nuveen.
