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Nuveen Adds Real Estate Allocation to TDF Series: Portfolio Products

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

This offering, which Nuveen says is 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.

In a recent analysis, Nuveen found that incorporating direct real estate investments into target-date funds provide the potential to enhance diversification, reduce volatility, and improve investment outcomes.

The analysis also found that a 5% allocation to direct real estate improved risk-adjusted returns and retirement accumulations in most scenarios, while also reducing risk.

TIAA Investments manages the TIAA-CREF Lifecycle Funds and their real estate investments will be made through TH Real Estate, which has more than 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 improve investment outcomes,” said John Cunniff, managing director at TIAA Investments and portfolio manager of the TIAA-CREF Lifecyle Fund series, in a statement. “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 1% and 5% of each portfolios’ assets, employing an investment style focused on institutional-quality commercial real estate investments primarily in office, industrial, retail and multi-family residential properties.

These investments seek returns primarily from rental income; asset appreciation is a secondary goal. Core assets are well-occupied properties with high-quality tenants who have long-term leases in high barrier-to-entry markets such as New York, Washington, D.C. and San Francisco.

VictoryShares Adds Dividend Accelerator ETF

Victory Capital launched the VictoryShares Dividend Accelerator ETF (VSDA), which began trading on the Nasdaq Stock Market on April 18.

The new ETF seeks to provide investment results that track the performance of the Nasdaq Victory Dividend Accelerator Index (NQVDIV), which Victory Capital developed in partnership with Nasdaq.

The Index uses fundamental criteria, including proven earnings stability, to select companies with the highest likelihood of consistently growing dividends year over year. It seeks to identify those companies early in their lifecycles and assemble them in a rules-based portfolio that emphasizes growing dividends per share.

CFRA Launches CFRA-Stovall Seasonal Rotation Indices

CFRA introduced the CFRA-Stovall Indices, which measures the performance of a seasonal rotation strategy pioneered by CFRA Chief Investment Strategist, Sam Stovall.

With the goal of beating the relevant benchmarks, the indices have been back-tested to demonstrate efficacy and in all cases have outperformed their targets with lower volatility.

The four CFRA-Stovall Indices are:

  • CFRA-Stovall Large Cap Seasonal Rotation Index (CSAMSRLC)
  • CFRA-Stovall Equal Weight Seasonal Rotation Index (CSAMSREW)
  • CFRA-Stovall Small Cap Seasonal Rotation Index (CSAMSRSC)
  • CFRA-Stovall Global Seasonal Rotation Index (CSAMSRGL)

Trust Builders Expands Online Retirement Readiness Solutions 

Trust Builders, Inc. announced the release of the Maximum Allowable Contribution (MAC) module for the TRAK-Online retirement readiness portal.

The MAC module allows advisors to calculate the maximum annual contribution to a 403(b) account and a 457 account, including the 402(g)(7) limit and double-up options. The module was previously available only in the desktop TRAK application. It is now being rolled out as a value-added feature of TRAK-Online.

Managed Portfolio Advisors Enters into an Agreement with BNY Mellon’s Pershing

Managed Portfolio Advisors (MPA) entered into an agreement with BNY Mellon’s Pershing to offer a flexible Unified Managed Account program to clients.

The agreement unites MPA’s overlay management services with Pershing’s technology platform, which offers tools, reporting functionality and custodial services. MPA’s overlay management techniques are intended to harmonize an investor’s separately managed account strategies and other investment vehicles.

The combined offering will drive increased efficiencies for clients, and allow for enhanced resources and accessibility.

Capital Group Taps Bloomberg For Transparent Evaluated Pricing

Bloomberg announced that Capital Group has selected Bloomberg’s Evaluated Pricing Service (BVAL) to benchmark and corroborate end-of-day values of its municipal bond positions.

Capital Group, an asset manager with more than $1.4 trillion in assets under management, selected BVAL for its broad coverage of municipal bonds, access to in-house evaluator teams and the transparency Bloomberg provides into its pricing models through the Bloomberg Terminal. The key to BVAL’s methodology is real-time access to market observations from a wealth of contributed sources.

–Read last week’s portfolio roundup here: Aspiration Drops Minimum Investment in ESG Fund to $100: Portfolio Products

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