The asset management landscape saw a shakeup this week as Nuveen Asset Management agreed to an approximately £9.9 billion deal to acquire Schroders. Nuveen, which is responsible for $1.4 trillion in assets under management (AUM), will create a massive shop with £2.5 trillion in AUM, per a press release.
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The move brings some notable ETFs into the same family. Per ETF Database data, the firm’s largest ETF by AUM is the NuShares ETF Trust Nuveen International Aggregate Bond ETF (NXUS). Nuveen’s move adds Schroders’ suite of European ETFs to make that £2.5 trillion global AUM.
“Through this exciting and transformational step for both of our distinguished firms, we look forward to welcoming Schroders into the Nuveen family,” said William Huffman, CEO, Nuveen. “This transaction is about unlocking new growth opportunities for wealth and institutional investors around the world by giving our leading, differentiated public-to-private platform a broader global presence.”
“In a competitive landscape where scale can help deliver benefits, in Nuveen we see a partner that shares our values, respects the culture we have built and will create exciting opportunities for our clients and people,” said Richard Oldfield, group chief executive, Schroders. “Together, we can create an exceptional opportunity to provide clients with a true breadth of high-quality solutions to meet their evolving needs."
Nuveen Grows Global Reach
According to the press release, Schroders will continue to operate for twelve months as a standalone business within Nuveen’s broader control. London will “serve as the Combined Group’s non-US headquarters and largest office, with more than 3,100 professionals.”
Together, the move represents a big step forward for Nuveen, growing the asset manager’s overall imprint significantly. For ETF investors, that means potential for more ETF offerings in the future. It also means expanded capability for the firm around the world. The two firms’ suites of ETFs offer varied exposures that may intrigue in the future.
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