"We are at the forefront of the most exciting areas of sustainable financial innovation"

Michele Perone
Director Nuveen Global Client Group, Zurich

 

Mr Perone, Nuveen has been active in Europe for over 20 years, but only recently opened a Swiss branch. Was the growth in Switzerland so strong that a presence was needed?

Nuveen has had a strong presence in Europe for several decades. This is evidenced by our global presence in property investments and our institutional client base in the region. In recent years, we have embarked on a major international expansion in the region, working with our clients to deliver innovative solutions across the breadth and depth of our USD 1.2 trillion investment platform in all market segments. In Switzerland, we have had a broad range of institutional client relationships for many years. The move to have more resources on the ground was initiated by our clients to open our offerings to private wealth clients. As we are meeting with increasing interest, we are gradually expanding our offering and our brand.

What does Nuveen offer that other asset managers in Switzerland cannot?

Investors, especially from the insurance sector, particularly appreciate our ownership structure, also because it means that there is a congruence of interests between client and provider. Our parent company is the Teachers Insurance and Annuities Association (TIAA), one of the world's largest institutional investors and a highly respected insurance and annuity provider. With the strong support of TIAA, we can expand into new markets and develop innovative investment approaches. Thanks to this strength, we can fulfil customer requirements in a targeted manner. For example, TIAA was the first major institutional investor to invest in farmland. Today, Nuveen is the world's largest manager of agricultural land and a leader in natural capital. The term "natural capital" refers to the natural resources and ecosystem services that contribute to supporting human life and the economy. We have many years of experience in asset management, portfolio construction and corresponding cost efficiency in ultra-high-net-worth clients. As a result, we are currently experiencing exponential growth in Europe, including in the Natural Capital segment. This scale and experience enable us to offer our Swiss clients the best value for money. In turn, our clients can pass this cost efficiency on to their end customers.

Nuveen offers investments in farmland and forestry. Is the Swiss institutional market ready for this?

We see Swiss investors - both institutional and high net worth clients - as very interested in making a difference with their financial investments while achieving solid risk-adjusted returns. We currently manage over USD 63.7 billion in assets in strategies specifically designed for responsible investing. This puts us at the forefront of the most exciting areas of sustainable financial innovation - from investing in rhino, blue and orange bonds to integrating natural resource valuation and accounting into an organisation's economic and financial decision-making processes.

Private market investments, real assets and infrastructure are currently a major topic in asset management. How can Nuveen benefit from its own expertise?

Private market investments, real assets and infrastructure are currently key topics in asset management. Because we have built up many years of experience as a pioneer in these areas, we can very quickly develop customized investment solutions that enable stable returns and diversification. More importantly, our strategies have a long track record and have been proven to work. We also have in-depth knowledge and a strong network, which enables us to identify and implement attractive investment opportunities. This makes us a trusted partner for investors who want to capitalize on opportunities in these areas.

What are your goals in Switzerland?

We have defined two clear goals in Switzerland: On the one hand, we want to continue and intensify our collaboration with our established institutional client base. On the other hand, our strategy is aimed at increasing our brand awareness and expanding our offering for wealthy clients. In terms of investment strategy, Swiss investors are showing a strong interest in nature-based investments. Our Natural Capital division is one of the world's largest managers of timberland and farmland. We have developed an innovative equity strategy for real assets and biodiversity. This focuses on companies that offer solutions to minimize environmental degradation, which is of great interest to Swiss clients. Our "Natural Positive" strategies allow us to make a significant impact through our investment process while offering our clients responsible investment solutions to help them achieve their net zero goals. We are also seeing a significant increase in client interest in the private markets bond space. Nuveen's private capital unit is one of the world's only global providers of private debt solutions. While many other investment firms are trying to acquire and integrate private markets providers, we already offer private debt strategies. We have a very impressive track record and are present in the two most important private debt markets worldwide.

Nuveen is the asset management subsidiary of TIAA (The Teachers Insurance and Annuity Association of America), a non-profit organisation that provides financial services in the US pension sector. Is Nuveen still independent?

Nuveen is the investment manager of TIAA. This makes us the exclusive manager of this institution. Nevertheless, we are completely independent in our investment process and therefore have a correspondingly large external, global client base. We also share our parent company's desire to help people retire with dignity and close the growing savings gap that so many countries are facing. This aligns with our mantra of making investments that have a lasting impact on the world - today and tomorrow.

You worked for American asset managers before Nuveen. What characterizes the American investment culture?

Every company and every person are different, so I wouldn't say that there is a specific US investment culture. However, it is fair to say that the US is often at the forefront of international investment innovation, the introduction of new asset classes and fund structures, and probably has the most engaged retail investor base in the world. What makes working at Nuveen so exciting is the fact that we can draw not only on our expertise and experience in our home market, but also on that of our global presence.

Sustainability was already an important topic at earlier stages of your career in asset management. Did you follow the trend, or do you have a personal connection to the investment topic?

I can't remember a single conversation or meeting with investors where the topic of sustainability and responsible investing didn't come up. Europe is a leader in this area and Swiss clients also share Nuveen's commitment to responsible investing. Some of the most interesting conversations with Swiss investors through our UCITS platform centre around our Global Core Impact Bond strategy. ESG or impact strategies are common in equity portfolios, but fixed income is still lagging. We help investors understand how these bonds can be a core element of their sustainable development. Our Head of ESG/Impact for Fixed Income, Steve Liberatore, a pioneer in this field, is active in ICMA and UN bodies and accompanied Nuveen as a founding investor in the first Blue Bonds.