Nuveen Expands Direct Indexing with Brooklyn Investment Group Acquisition

Nuveen Acquires Brooklyn Investment group to Supercharge Direct Indexing services

Nuveen is set to redefine personalized investment strategies after acquiring Brooklyn Investment Group. The deal enhances tax-optimized solutions for advisors. This acquisition substantially boosts Nuveen’s direct indexing capabilities.

Nuveen Expands Its Direct Indexing Capabilities

In a move that underscores the growing importance of personalized investment solutions, Nuveen has finalized the acquisition of Brooklyn Investment Group, along with its cutting-edge technology platform, Brooklyn Artificial Intelligence, Inc.

The acquisition, finalized in June 2025, aims to bolster Nuveen’s capabilities in tax-efficient portfolio construction and custom indexing, providing advisors with more refined tools to meet evolving client needs. Direct indexing is gaining traction as investors seek greater control and customization options.

A Partnership Forged in Innovation

The two firms established a collaborative relationship back in 2023,jointly introducing customary direct indexing,tax-advantaged long/short portfolios,and thorough multi-asset solutions that seamlessly integrate both equity and fixed income. That earlier collaboration involved Nuveen, through TIAA Ventures, securing a minority stake in Brooklyn, setting the stage for this full acquisition.

Strategic Integration: Key Focus Areas

Nuveen and Brooklyn will concentrate their efforts on three pivotal integration areas:

• Expanding Tax-Advantaged Alternatives: Streamlining the incorporation of Nuveen’s private markets and lifetime income capabilities into customized, tax-efficient solutions.
• Enhancing Advisor experience: Leveraging brooklyn’s technology to simplify onboarding, account management, practice management, and differentiated client reporting.
• Extending Technology Licensing: Ensuring that Brooklyn’s proprietary, white-labeled technology platform remains available to existing partners.

Executive Viewpoint

“Every day we hear from advisors about the demand for personalized multi-asset strategies with the returns that private market allocations offer,” said Bill Huffman, CEO of Nuveen. “Together, we will reshape the direct indexing landscape by delivering alternatives and lifetime income in an expanded set of customizable solutions.”

Nuveen’s Existing Footprint

Nuveen currently oversees more then $82 billion in separately managed accounts (SMAs), encompassing municipal bonds, taxable fixed income, equities, and innovative multi-asset solutions, including direct indexing strategies.

Pro Tip: Consider consulting with a financial advisor to determine if direct indexing aligns with your investment goals and risk tolerance.

The Rise of Direct Indexing: A Trend Analysis

Direct indexing has emerged as a powerful trend in wealth management, offering investors a middle ground between traditional mutual funds and individual stock picking.Unlike mutual funds, which offer a standardized portfolio, or individual stock ownership, which requires extensive research and active management, direct indexing allows for a customized portfolio that mirrors a specific index, such as the S&P 500, but with the added flexibility to incorporate personal values, tax-loss harvesting strategies, and other individual preferences.

Did You know? Recent studies indicate that direct indexing adoption has grown by approximately 15-20% annually over the past three years, reflecting increased investor demand for personalization.

Benefits of Direct Indexing

The following table summarizes the key benefits of direct indexing.

Benefit	Description
Customization	Tailor your portfolio to align with your values and financial goals.
Tax efficiency	Utilize tax-loss harvesting to potentially offset capital gains.
Transparency	Gain visibility into the individual holdings within your portfolio.
Control	Exercise greater control over investment decisions compared to mutual funds.

Evergreen Insights: The Future of Personalized Investing

As technology advances and investor demands evolve, the trend toward personalized investing is expected to accelerate. direct indexing is at the forefront of this movement, empowering investors to take a more active role in shaping their financial futures. The acquisition of Brooklyn Investment Group by Nuveen signals a strategic move to capitalize on this trend, offering advisors enhanced tools and solutions to meet the growing demand for customization.

What factors do you consider most vital when choosing investment strategies?

frequently Asked Questions about Direct Indexing

• What is direct indexing?

  Direct indexing is a strategy that allows investors to own the individual securities within an index, rather than investing in a fund that tracks the index.

• How does direct indexing differ from traditional index funds?

  Unlike index funds, direct indexing allows for greater customization, tax-loss harvesting, and the potential to exclude certain securities based on personal values.

• What are the tax advantages of direct indexing?

  Direct indexing enables tax-loss harvesting, where losing positions are sold to offset capital gains, potentially reducing overall tax liabilities.

• Is direct indexing suitable for all investors?

  Direct indexing is often best suited for investors with a long-term investment horizon and a desire for greater control and customization.

• How can I get started with direct indexing?

  Consult with a financial advisor to assess your investment goals and determine if direct indexing is the right fit for your portfolio.

Do you think direct indexing is the future? Share your thoughts and questions below!

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nuveen’s Direct Indexing Expansion: Brooklyn Investment Group Acquisition

Nuveen, a leading global investment manager, has considerably expanded its direct indexing capabilities with the acquisition of Brooklyn Investment Group. This strategic move underscores Nuveen’s commitment to providing clients with innovative and personalized investment solutions. This article dives deep into the acquisition, its implications, and the benefits for investors. The keywords Nuveen, Brooklyn Investment Group, and direct indexing will be used throughout this content.

Understanding Direct Indexing

Direct indexing allows investors to build highly customized portfolios that track a specific index. Instead of purchasing an Exchange Traded Fund (ETF), investors own the underlying securities of the index, offering greater control, tax efficiency, and personalization. Think of it as building your own ETF.

Key Benefits of Direct Indexing:

• Tax-loss harvesting: The ability to sell losing positions to offset capital gains, enhancing after-tax returns.
• Customization: tailoring portfolios to align with specific values, ESG (Environmental, Social, and Governance) preferences, or constraints.
• Enhanced Transparency: direct ownership provides greater visibility into portfolio holdings and performance.
• Potentially Lower Fees: costs can be competitive versus conventional investment options.

The Strategic Rationale Behind the Acquisition

The acquisition of Brooklyn Investment Group enables Nuveen to bolster its existing suite of investment offerings. This acquisition strategically aims for several key benefits: Expanding its direct indexing capabilities, which enhances its ability to offer refined, personalized investment management solutions to a wider range of clients. This also integrates Brooklyn Investment Group’s investment strategies and technology into Nuveen’s platform.

synergies and Expected Outcomes

By combining resources, nuveen intends to:

• Increase market share: By becoming a stronger player in the direct indexing space.
• Enhance client service: Offering advanced portfolio customization and tax-management strategies.
• Strengthen competitive advantages: Differentiating itself in the crowded wealth management market.

Impact on Investors

The integration of Brooklyn Investment Group’s expertise into Nuveen’s infrastructure has several positive consequences for investors. This section examines the direct impact on investors, from personalized portfolio management to tax efficiencies.

Key Advantages for Investors:

Feature	Benefit
Personalized investing	Tailored portfolios to align with individual financial goals and risk tolerance.
Tax-Loss Harvesting	Opportunities to minimize tax liabilities, increasing after-tax returns.
access to Advanced Strategies	Implementation of sophisticated investment techniques previously unavailable to many investors.

Direct Indexing Strategies in Action

one example of direct indexing in action is found with ESG investing. Many investors seek to align their portfolios with specific environmental, social, and governance principles. With direct indexing, it becomes possible to exclude companies not meeting the user’s criteria.

Real-World Example: The Enduring Portfolio

A financial advisor, using Nuveen’s direct indexing platform, built a portfolio for a client who wanted to invest in renewable energy companies and avoid corporations with poor environmental records. The direct indexing strategy allowed the advisor to filter out unwanted stocks while still tracking a benchmark index,resulting in a customized,tax-efficient,and values-aligned investment without the fees associated with many ESG-focused ETFs.

Future Outlook for Direct Indexing

Direct indexing is expected to have considerable industry growth as more investors discover its advantages. It allows investors to control their investments, implement sophisticated tax strategies, and align portfolios with their values. the industry also anticipates further innovation, especially regarding AI and machine learning capabilities.

Key Trends in Direct Indexing

• Increased adoption: Rising demand from investors wanting more control and personalized investments.
• Technology integration: Using new technologies to improve portfolio customization and tax optimization.
• Rise of ESG investing: Growing interest in aligning investments with environmental, social, and governance (ESG) values.