Plan sponsors that focus on health and wealth are often more likely to implement other benefits that they would not have been considered before, including life insurance, supplemental health benefits, and executive and retiree medical and retirement benefits, Caldwell added.
Unlike mutual funds and exchange-traded funds, which may pass along capital gains to investors annually due to portfolio manager decisions or the trades of other investors, Separately Managed Accounts (SMAs) give investors control over when to realize gains. This flexibility is a key benefit of tax management.
The move underscores Nuveen's conviction in the continued growth of direct indexing and multi-asset tax-managed solutions, which have been one of the fastest growing areas of the asset management industry, having risen to $864 billion in assets at the end of 2024, representing a 43% compound annual growth rate since the start of this decade.