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Fund Times

First American Funds Joins Nuveen

Plus, a departure from AllianceBernstein, new PIMCO distribution arm, and more.

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Nuveen Investments announced this morning that  U.S. Bancorp's (USB) asset-management business, FAF Advisors (U.S. Bancorp will retain FAF's money market funds), will join its Nuveen Asset Management unit. In exchange, U.S. Bancorp will receive a 9.5% stake in Nuveen Investments and $80 million in cash. The Minneapolis-based FAF has $25 billion in assets under management and serves as advisor to 41 First American Funds.

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.

Courtney Goethals Dobrow does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.