Deals & People November 24, 2008

Nuveen Snaps Up Investment Boutique

Nuveen Investments has announced an agreement to acquire Winslow Capital Management.
Reported by

The Minneapolis-based investment manager, with more than $4 billion of assets under management and advisement, specializes in managing large cap growth stock portfolios for institutions and high net worth investors. The transaction is expected to close by the end of the year.

Winslow Capital Management, founded in 1992 in Minneapolis, Minnesota, is recognized for its large cap growth investment expertise, according to the firm. Winslow’s objective is to construct portfolios that “meaningfully outperform the Russell 1000 Growth Index.’

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Winslow’s investment team will continue to operate independently, and Winslow expects to enhance its large cap growth investment platform over time, drawing upon the strength of Nuveen Investments’ existing operations, distribution and other resources, according to the firm. Winslow’s key professionals will have long-term employment agreements in addition to equity-based incentives that “align their interests with those of Winslow’s current clients as well as Nuveen,’ according to an announcement.

Other Specialities

According to the announcement, Winslow’s investment approach complements the expertise offered through Nuveen Investments’ existing growth equity managers, Santa Barbara Asset Management and Rittenhouse Asset Management. Nuveen Investments also offers specialized expertise through:

  • NWQ in value equities
  • Nuveen Asset Management in taxable and municipal fixed-income;
  • Tradewinds in international and global equities
  • HydePark in enhanced equity strategies
  • Symphony in alternative investments as well as traditional equity and credit-based strategies.

The press release notes that the addition of Winslow reinforces Nuveen Investments’ commitment to provide investors access to a broad range of high-quality investment managers that specialize in distinct styles of investing with their own unique investment processes and proven long-term performance records. Winslow Capital’s portfolios focus on large cap growth stocks that demonstrate long-term sustainable earnings growth potential, quality cyclical growth, and newer industries with rapid growth potential.

“We are pleased to welcome Winslow Capital and look forward to continuing their high levels of client service and investment performance,’ said John Amboian, Nuveen Investments Chairman and CEO. “Winslow has a very strong reputation and record. They share our values and our philosophy of providing consistent, high-quality service with a strong orientation toward risk management. The addition of Winslow Capital will strengthen our ability to best meet the long-term financial needs of high-net-worth and institutional investors.’

In Practice November 24, 2008

School Employees Protest against 403(b) Vendor Limits

Similar to the protests in New York, teachers in Newport News, Virginia, are pushing back against their administration's efforts to limit their choice of 403(b) plan vendors.
Reported by

In the face of strong teacher protest, the School Board decided last week to delay moving forward with an exclusive contract with the Philadelphia-based Lincoln Financial Group as its 403(b) vendor, The Daily-Press in Newport News reported. The district previously had six vendors whose contracts expired in 2008.

The newspaper said school employees inundated board members with complaints and threats to leave the district. “Very rarely have I received so many complaints from employees,” board member William Collins said, according to The Daily-Press. “I feel like as a board member we’re in a corner.” The news report quoted school spokeswoman Michelle Price as saying that the group reviewing the plan provider bids had not planned to narrow the vendor choices to one.

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However, based on the scope of Lincoln’s proposed offerings and the new Internal Revenue Service rules requiring, among other things, that 403(b) sponsors more closely monitor and manage vendors, the committee went with just Lincoln. The contract was awarded October 14 and the new plan was scheduled to begin January 1.

The newspaper said AIG Retirement also objected. AIG senior managers told the board they had a 37-year relationship with the district, managed more than $30 million in accounts for more than 800 employees, and had not received the request for proposals, even though it had been advertised and posted on the district Web site.

The board plans to revisit the issue at a special work session in the next two weeks.

Other Protests

Last week, a union official in Utica, New York, informed the school board there that the union would try to block a decision on limiting school employees’ choice of a financial adviser to one (see Teachers Union Wants to Keep Adviser Choice)


In October, Baltimore County’s school board unanimously voted down a recommended contract with Lincoln to be the system’s exclusive 403(b) provider (see Baltimore School Officials Give Thumbs Down on 403(b) Vendor Consolidation).


The new 403(b) regulations effective January 1 have led many plan sponsors to pare down vendor offerings (see The New 403(b) Model: Exclusive versus Multiple Vendor Programs).

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