Nu Asset Management, Nubank’s (NYSE: NU) investment manager, is introducing the Nu CDI Tesouro Selic B3 (NCDI11), a new fixed income ETF. The solution enables investors to access Letras Financeiras do Tesouro (LFT) – Selic-linked government bonds – tracking the performance of these securities over a period of time. The NCDI11 will reportedly be the first ETF indexed to the B3 Selic Treasury Index (Índice Tesouro Selic B3), the government bond index thas has been developed and calculated by B3.
Introduced on the same date, this index has been structured to represent the most traded Treasury bonds (LFTs) based on “liquidity criteria and quarterly rebalancing.”
With an administration fee of 0.15% per year, the NCDI11 will offer high liquidity, trading on the stock exchange “with a settlement in D+1 (one business day).”
The ETF will be available for trading on B3 beginning October 17 and joins Nu Asset’s ETF portfolio, which includes “fixed income, equity, and cryptocurrency options, expanding access to investment products for clients.”
With R$ 6.4 billion under management, 24 investment funds, and 1.4 million investors, Nu Asset uses data science and technology to create investment solutions.
Key milestones include the launch of the dividend-distributing ETF on B3 in 2023 (NDIV11) and the “smart betas of the Bovespa index – which also include Low Volatility (LVOL11) and High Beta (HIGH11).”
In another recent update from Nubank, it was noted that its subsidiary Nu México has surpassed 13 million customers in the country.
With this customer base, the firm reaches around “14% of the adult population and approximately 23% of all banked individuals, consolidating its position as the digital player expanding financial access in Mexico.”
In rural areas, the gateway is often digital saving, via products such as Cuenta Nu (Nu Account) and Cajita (Little Box), and subsequently, many users incorporate credit, “replicating the same level of multi-product adoption recorded in large cities (58% in both cases).”
The difference is not in which “financial product they use, but in the order in which they adopt it: they save first and then access credit.”
More than 60% of Nu’s customers belong to “low and lower-middle- income households, while another third corresponds to the consolidated middle class, which means that Nu’s growth is driven by the country’s broadest and most representative social groups.”
When examining product usage via this lens, they claim to find that the combination of savings and credit is present across all income levels, with more than 60% of clients using both products.
In addition to this, over half have had a relationship with Nu for over two years, reflecting “sustained digital adoption.”
Nu’s customer base is said to be diverse, “ranging in age from 18 and 39 years old.” The majority are between 18 and 39, young adults who “are building their financial history directly from their mobile phones.”
But inclusion is not limited to digital natives: one in five or 20% of customers over the age of 50 reportedly uses “more than one financial product within the Nu ecosystem, although they tend to lean more towards the credit card.”
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