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Nuveen Acquires First American Funds Advisors

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Nuveen Investments announced Thursday, July 29, that it had acquired the long-term asset business of First American Funds Advisors (FAF) from U.S. Bancorp in exchange for a 9.5% stake in Nuveen and an undisclosed amount of cash. The company said it expected the transaction to close later this year.

Nuveen will incorporate FAF, the advisor to First American Funds, and its $25 billion in assets into Nuveen Asset Management, which already has $75 billion in municipal bond assets under management. The combined firm will operate under the name Nuveen Asset Management with operations in Chicago and Minneapolis.

In a statement, Nuveen Investments’ chairman and CEO, John Amboian, said the entity will combine Nuveen Asset Management’s “market-leading municipal bond expertise with FAF’s proven and distinct investment capabilities including taxable fixed income, real assets, equities, and asset allocation.”

Following the transaction, Tom Schreier, currently CEO of FAF, will become vice chairman, wealth management, of Nuveen Investments. Bill Huffman, current co-head and COO of Nuveen Asset Management, will become the president of the combined businesses, reporting to the Office of the Chairman of Nuveen Investments through Schreier.

In its statement, Nuveen said the investment products managed by the investment teams within Nuveen Asset Management would be offered under the Nuveen brand name and “possibly, for legacy First American Funds, the Nuveen FAF brand name.”

The other investment management firms within Nuveen include NWQ Investment Management, Santa Barbara Asset Management, Symphony Asset Management, Tradewinds Global Investors, Winslow Capital, and Nuveen HydePark.

A portfolio in Nuveen’s Tradewinds Global Investors was a winner of the Investment Advisor 2010 Separately Managed Account Managers of the Year in the Specialty category.