April 19, 2017
Clean and green fixed income: Bright prospects despite power shift in Washington
Stephen M. Liberatore, CFA, Lead Portfolio Manager, Responsible Investment Fixed Income Strategies, TIAA Investments
While a clear shift in domestic energy priorities has begun under the Trump administration, we believe compelling investment opportunities focused on clean energy, including "green bonds," will continue. Momentum toward a low-carbon economy has been driven more by state and local governments, public-private partnerships, and the private sector than by federal policy. We see a variety of ways to incorporate clean energy into fixed-income portfolios, as the volume of issuance remains strong at the state and local level and from public and private issuers.
October 7, 2016
The rise of impact investing
Rekha Unnithan, CFA, CIMA, Portfolio Manager, Impact Investing
Historically, investors looking to have a positive social impact have had a limited set of opportunities to do so while also earning a competitive return on their investment. In recent years, the emergence of impact investing has joined those twin ambitions by bringing market-based discipline to address some of society’s most pressing problems.
September 6, 2016
Private Debt: The opportunity for diversification with illiquid assets
Private debt is a potential solution for institutional investors confronting low interest rates, rising asset correlations, and volatile markets. This relatively illiquid asset class historically has offered higher yields with less credit risk than similarly-rated public bonds. A TIAA analysis found that middle market direct loans and mezzanine debt increased portfolio risk-adjusted returns when combined with public stocks and bonds. For long-term investors, private debt’s illiquidity can be a reasonable tradeoff for a more attractive risk-return profile relative to traditional asset classes. A new TIAA white paper explores the factors causing increased demand for private debt:
September 1, 2016
Not created equal: Surveying investments in non-investment grade U.S. corporate debt
Institutional investors seeking yield and current income opportunities have increased their allocations to non-investment grade corporate bonds and loans over the last several years. But the asset class covers a lot of ground and there are key differences among the different kinds of choices that are not always obvious.
As the credit cycle has shifted into a period of higher volatility, rising defaults and potentially rising rates, now is a good time for investors to consider the differences among the sub-asset classes of non-investment grade debt and determine which strategies best match their long-term objectives. In this paper, we review the different risk/return attributes among the investments in this category.
June 13, 2016
European direct loans: A familiar asset dressed in a different currency?
Randy Schwimmer, Senior Managing Director, Head of Origination & Capital Markets, Churchill Asset Management LLC
March 14, 2016
Private real assets: Improving portfolio diversification with uncorrelated market exposure
Private investments in real assets – farmland, timberland, and commercial real estate – offer the potential to enhance returns and diversify risk in institutional portfolios. Real assets have exhibited higher returns and lower volatility than stocks and bonds, with low or negative correlations. Historical analysis using index returns for the 24-year period, 1991-2015, showed:
For Institutional Investor Use Only.
Real Asset investments may be subject to environmental and political risks and currency volatility. The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons. Past performance does not guarantee future results.
TIAA Global Asset Management provides investment advice and portfolio management services through Teachers Insurance and Annuity Association and affiliated registered investment advisors, including Teachers Advisors, Inc., TIAA-CREF Alternatives Advisors, LLC and Nuveen Asset management, LLC.
@2016 Teachers Insurance and Annuity Association of America (TIAA), 730 Third Avenue, New York, NY 10017
February 12, 2016
Real assets: The impact of rising interest rates on farmland and timberland investment
Justin Ourso, CFA, Portfolio Manager, Sandra LaBaugh, CFA
February 08, 2016
The Evolving Case for Timberland Management: How Global Demand, Science and Sustainability are Creating New Opportunities for Investors
By Jose Minaya, President of TIAA Global Real Assets and Jeff Nuss, President & Chief Executive Officer, GreenWood Resources
Timber has produced attractive investment returns at relatively low levels of volatility over the past quarter-century but the asset class has encountered some headwinds since the U.S. housing crash, causing some investors to wonder whether timber markets have become too efficient.
A compelling case for investing in timberland remains but has evolved for both cyclical and structural reasons. Investors need to be aware of these developments and align themselves with a manager capable of navigating an increasingly complex and global marketplace.