MINNEAPOLIS ( TheStreet) -- Shares of U.S. Bancorp ( USB) dipped Thursday after the company inked a strategic pact that gives it a 9.5% stake in Chicago-based Nuveen Investments. The stock was down 11 cents to $23.86 in recent trades. Under the deal, U.S. Bancorp will swap the $25 billion long-term asset management business of its FAF Advisors unit for ownership of the chunk of Nuveen and an undisclosed amount of cash. FAF Advisors, which has a total of $86 billion in assets under management, manages and administers the First American Funds family of mutual funds. Nuveen Investments currently has about $150 billion of assets under management across its affiliates for institutional and retail customers. U.S. Bancorp is retaining investment products and support capabilities for its cash management, securities lending, stable value and advisory services for its First American Money Market funds, which will renamed U.S. Bancorp Asset Management, the bank said. The company said that liquidity and cash-related investment vehicles will continue to be a "core competency." Tom Schreier, currently CEO of FAF Advisors, will become a vice chairman of Nuveen Investments. Nuveen Asset Management will report into its parent company through Schreier, U.S. Bancorp said. "Our new strategic alliance with Nuveen Asset Management will significantly enhance the long-term value of U.S. Bancorp's investment in the asset management business," Lee Mitau, U.S. Bancorp's general counsel and oversees FAF Advisors. "FAF will continue to focus on its distinctly successful investment process and its high-quality mutual fund offerings will benefit from the expanded reach of Nuveen's strong distribution capabilities." U.S. Bancorp's wealth management operations will have access to Nuveen's products and capabilities as well. The transaction is expected to close before the end of the year. --Written by Laurie Kulikowski in New York.