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Rating:Nuveen is the Latest to Join the Target-Date Race

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Friday, October 19, 2007

Nuveen is the Latest to Join the Target-Date Race

News summary by MFWire's editors

Nuveen Investments, which is in the process of being taken private by a group led by Madison Dearborn Partners, has hopped on the target-date bandwagon. Officials at the Chicago-based investment management firm on Thursday afternoon unveiled five funds, collectively dubbed Nuveen PersonalPlan Target Maturity Solutions, that come with maturity dates ranging from 2010 to 2050. The new products are offered in a collective trust structure. Nuveen tapped Wilshire Associates to provide asset allocation strategies and AST Capital Trust to serve as trustee. Jam Zovein, managing director at Nuveen, described the new offerings as providing a "high-quality defined-benefit-like experience within defined contribution plans."


CHICAGO, October 18, 2007 -- Nuveen Investments, a leading provider of investment services to institutional and high net worth investors, today launched Nuveen PersonalPlan Target Maturity Solutions, a dynamically rebalanced retirement product to help companies and other sponsors of defined contribution plans address the long-term investment needs of plan participants.

Nuveen PersonalPlan Target Maturity Solutions teams the institutional-caliber, multi-manager investment expertise of Nuveen Investments with the independent asset allocation skills of Wilshire Associates, a leading pension consultant. The range of target-dated solutions is designed to help participants of any age achieve their financial goals for retirement. Each solution features a dynamic mix of investments monitored on an ongoing basis by Wilshire, permitting enhanced responsiveness to shifting market conditions.

"This innovative, instant-diversification retirement product is designed to meet rising institutional demand for a flexible, market-sensitive approach in this category," said Jam Zovein, Managing Director, Nuveen Investments. "Historically, many target date funds fail to give adequate consideration to liabilities and do not deal sufficiently with market risk, longevity risk and inflation risk.

"With Wilshire's optimized, liability-aware asset allocation and Nuveen's alpha-oriented investment strategies, our goal with Nuveen PersonalPlan Target Maturity Solutions is to offer a high-quality, defined benefit-like experience within defined contribution plans."

Target date maturity funds have become increasingly popular in recent years as a way for plan sponsors to fulfill their fiduciary role. Target date maturity funds provide participants with an asset allocation mix that adjusts according to their retirement timeframe.

To provide additional efficiency, flexibility and transparency for plan sponsors, Nuveen PersonalPlan Target Maturity Solutions is offered in a collective trust structure. Collective trusts are pooled investments that can be valued and traded daily, and are overseen by a bank or trust company. AST Capital Trust serves as trustee for Nuveen PersonalPlan Target Maturity Solutions.

"The collective trust format is an attractive solution for plan sponsors, because it's easy to work with and tends to have low operating costs," Zovein said.

Nuveen PersonalPlan Target Maturity Solutions has funds dated for the years 2010, 2020, 2030, 2040 and 2050. Equity investment strategies draw from Nuveen's specialized managers and include NWQ Large Cap Value, NWQ Small/Mid Cap Value, Tradewinds Global All Cap, Tradewinds International Value, Santa Barbara Stable Growth, Santa Barbara Small/Mid Growth, Symphony Mid Cap Core and Nuveen HydePark Enhanced 500. Fixed income strategies include Nuveen Core Plus and Nuveen TIPS.

Wilshire uses mathematical and statistical investment processes to allocate assets, select managers and construct portfolios to maximize risk-adjusted return. The dynamic allocation process begins with small adjustments to try to maximize asset growth during the accumulation phase. Larger steps are taken nearer maturity, with preference to asset classes that hedge the risk of retirement liability. At retirement, a new set of portfolios is created, addressing ongoing market risk, longevity risk and inflation risk.

Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the funds carefully before investing. For information which contains this and other information relevant to an investment in the funds, please contact AST Capital Trust of Delaware, 2800 North Central Avenue, Phoenix, AZ 85004 or Nuveen Investments, LLC, 333 W. Wacker Drive, Chicago, IL 60606. Investors should read the applicable offering information carefully before they invest or send money.

This document is not an offer to sell any security and is not soliciting an offer to buy this security in any jurisdiction where the offer or sale is not permitted.

About Nuveen Investments

Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutions and high-net-worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of NWQ, Santa Barbara, Tradewinds, Rittenhouse, Symphony and Nuveen, including the Nuveen HydePark Group. In total, the Company managed $170 billion in assets as of September 30, 2007. Nuveen Investments is listed on the New York Stock Exchange and trades under the symbol "JNC."

About Wilshire Associates

Wilshire Associates is a leading global investment technology, investment consulting and investment management firm with four business units, including: Wilshire Analytics, Wilshire Funds Management, Wilshire Consulting and Wilshire Private Markets. Wilshire Analytics develops and provides superior risk management, portfolio analysis, asset allocation and performance measurement solutions to fund managers, banks, insurers, consultants and other institutional investment organizations. Based in Santa Monica, CA, Wilshire provides services to clients in more than 20 countries representing in excess of 600 organizations with assets totaling more than US $12.5 trillion.

About AST Capital Trust

AST Capital Trust Company of Delaware is a Delaware State chartered trust company with operations in Wilmington, DE, and Phoenix, AZ. An affiliate of American Stock Transfer & Trust Company, the country's largest independent stock transfer company, AST Capital Trust was originally chartered in 1900. The company provides directed trustee, trust administration and back-office services to retirement plans, individuals, families, companies, foundations, organizations and financial institutions. AST Capital Trust is one of the largest independent trust companies in the U.S. and administers over $21 billion in trust assets.  

Edited by: Armie Margaret Lee


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