The riddle is solved: strangely recurring almost daily influx $200 million in ETF growth over the past month is actually an internal transfer from the parent fund.
Cash injections into the Nuveen Growth Opportunities ETF (ticker NUGO) come from his mutual funds, reported by Nuveen in an email.
Unusual distribution of funds – like clockwork, closer to 16:00 across New York – caused some bewilderment among observers. Typically ETFs are launched with money lined up, which are added at a time in the first few days, or relies on organic streams.
The company has not confirmed, where exactly does the money go from, but NUGO flows roughly match the estimated outflow of funds from the TIAA-CREF Large-Cap Growth Index Fund (TILIX), according to Bloomberg data. Both funds are targeted at growing large-cap companies and are controlled by Nuveen, parent company of the American Association of Teachers and Annuity Insurance (Teachers Insurance and Annuity Association of America, or TIAA).
Remains unclear, what amount will be transferred. According to Bloomberg Intelligence, atypical NUGO model may be related to its structure. It is one of the newer ETFs with reduced disclosure requirements., which help to hide his exact strategy, sometimes called ANTs, or active opaque exchange-traded funds.
Based on materials from Bloomberg