Plus, a departure from AllianceBernstein, a new PIMCO distribution arm, and more.
Nuveen Investments announced Thursday morning that U.S. Bancorp's
FAF, which will remain in Minneapolis, will be combined with Chicago-based Nuveen Asset Management, which runs $75 billion in municipal fixed-income assets. The resulting entity will retain the Nuveen Asset Management name; in the future, the First American Funds might be branded under the Nuveen FAF name. Tom Schreier, FAF's CEO, will become vice chairman of wealth management for Nuveen Investments. Bill Huffman, the cohead and COO of Nuveen Asset Management, will become president of the unit.
Alan Brown, executive vice president at Nuveen, said the combination will accelerate the growth of its mutual fund lineup overnight, boosting assets from $23.5 billion to more than $40 billion after the deal closes before the end of the year. There could be some lineup overlap. Nuveen Asset Management is a muni shop and First American's funds include some national and single-state muni-bond funds, along with taxable-bond funds and U.S.- and international-equities funds. Other boutiques under the Nuveen umbrella, such as Tradewinds Global Investors, Winslow Capital, and Symphony Asset Management, also run equity mutual funds.
Head of AllianceBernstein Growth Equity Exits
Lisa Shalett, AllianceBernstein's head of growth equities, has left the firm. Sharon Fay, head of value equities, has been named CIO of equities, and members of the growth team will begin reporting to her, as well.
Shalett left AllianceBernstein to become CIO for the global wealth-management division of Merrill Lynch (now part of Bank of America
Also, Vadim Zlotnikov has been named chief market strategist and will lead a new macroeconomic-research group. He'll retain oversight of quantitative analytics for AllianceBernstein's growth portfolios.
PIMCO to Distribute Itself
Putnam Cuts Redemption Fees
As of Aug. 2, 40 Putnam funds will no longer charge a 1% redemption fee. The fees were designed to discourage the rapid short-term trading that can harm long-term shareholders. They gained prominence in the wake of the market-timing scandal in the early 2000s, which also ensnared Putnam. Recently, however, a number of firms have begun eliminating these fees if their prospectuses already ban excessive trading.