Nuveen reports record $220.1 billion of assets under management

By Lisa Kerner

Charlotte, N.C., March 22 - Nuveen Investments Inc. chief financial officer Glen Richter is pleased overall with the company's progress in 2011, which included strong organic growth, strong investment performance across the affiliates and completion of a 60% stake in Gresham Investment Management LLC, he said during the year-end earnings conference call on Thursday.

At Dec. 31, Nuveen had a record $220.1 billion of assets under management, an increase of 11% from $197.8 billion at the end of the third quarter.

Net flow was $4.5 billion for the fourth quarter and $13.8 billion for the year, resulting in an annual 7% organic growth rate, said Richter.

Net flows for 2010 and 2011 combined were $27.4 billion.

Nuveen had more than $44 billion of mutual fund assets under management at the end of the year, with products covering "all style boxes," according to Richter.

Mutual funds had positive net flow for the eighth year in a row, with $2.3 billion reported for 2011. The funds had an organic growth rate of 5.5%, or about twice the industry rate, Richter said.

Richter noted that Nuveen was named Best Overall Large Company by Lipper. The Lipper Fund Awards are part of the Thomson Reuters Awards for Excellence, a global family of awards that celebrate exceptional performance throughout the professional investment community.

Growing the mutual funds business has been a strategic priority for Nuveen for several years, and Richter said the company plans to continue building on its momentum in 2012.

The company's institutional business reported $12 billion of net flows for the year. Assets under management for the period were $85.1 billion, up 34% from the prior-year period and nearly triple the 2006 figure. Richter attributed the growth to acquisitions, Nuveen's distribution platform and the diversity of the company's product offerings.

Net flows for closed-end funds were $1.5 billion, including two new funds launched in 2011, releveraging of related and existing funds and new offerings. The new funds (energy and commodity) totaled $800 million.

Retail managed accounts had gross sales of $9.1 billion, up 12% from the prior year, due mostly to increases at Winslow and Santa Barbara, said Richter. Outflows for 2011 totaled $2.1 billion.

The Chicago-based investment services company ended the year with $395 million of liquidity, including $202 million of cash and $193 million of revolver availability. Gross debt totaled $4.2 billion.

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