Bringing you live news and features since 2006 

Nuveen enhances target-date fund offering with direct real estate allocation

RELATED TOPICS​

Nuveen has added direct real estate investments as part of the allocation in its target-date fund series, the TIAA-CREF Lifecycle Funds.

This offering, the first in its kind to provide direct access to commercial real estate in target-date mutual funds, is designed to further diversify the portfolios, reduce risk and better position investors to meet their long term investment goals.
 
TIAA Investments, one of the largest managers of target-date fund assets in the industry, manages the TIAA-CREF Lifecycle Funds and received the 2017 Lipper Best Mixed Assets Large Fund Group Award for the second year in a row. The real estate investments for the fund series will be made through TH Real Estate which has over 70 years of experience managing real estate investments for institutional investors.
 
“The opportunity to include direct real estate as part of our TIAA-CREF Lifecycle Fund series allocation provides us with the ability to further diversify, reduce volatility and potentially improve investment outcomes,” says John Cunniff, managing director at TIAA Investments and portfolio manager of the TIAA-CREF Lifecyle Fund series. “We believe exposure to direct real estate alongside investments in equity and fixed income is central to building a well-diversified, long-term portfolio for investors.”
 
The real estate allocation of the TIAA-CREF Lifecycle Fund series will typically range between one to five per cent of each portfolios’ assets employing a core investment style focused on institutional-quality US commercial real estate investments primarily in office, industrial, retail and multi-family residential properties that seek to generate returns primarily from rental income with asset appreciation as a secondary goal. Core real estate assets are well-occupied properties with high-quality tenants with long-term leases often located in high barrier-to-entry markets such as New York, Washington DC and San Francisco.
 
While real estate allocations have long played an important role in the performance of defined benefit plan portfolios, they have been less accessible to defined contribution plan investors until now.
 
“More than a decade after regulations spurred the proliferation of target-date funds as the predominant investment vehicle in defined contribution plans, we’re now seeing plan sponsors and plan advisors take a fresh look at their plans’ investment menus,” says Erin Donnelly (pictured), executive vice president and head of Defined Contribution Investment Only (DCIO) at Nuveen. “With nearly 100 years of experience managing retirement assets, we’re thrilled to continue that legacy by leveraging the expertise of our specialised investment teams to deliver a target-date fund enhancement that allows plan participants to benefit from the unique investment advantages that direct real estate has to offer.”

Latest News

BlackRock’s global ETP flows report for June finds a steady rise with USD128.1 billion added to global ETPs in June,..
Morningstar’s global ETF flows report for the first half of 2024 shows that actively managed ETFs have captured 25 per..
The surge in bitcoin ETF launches and funds flowing into the sector is transforming institutional investment in digital assets but..
LSEG Lipper’s latest research finds that the majority of actively managed funds and ETFs globally were not able to beat..

Related Articles

Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Andrea Busi, Directa SIM
Romain Thomas talks to Andrea Busi (pictured), CEO of Directa SIM, who explains why the online trading platform has just...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by