CHICAGO--(EON: Enhanced Online News)--Nuveen Asset Management, an investment affiliate of TIAA Global Asset Management, is pleased to share that its four indexes ‘powered by Wilshire’ close out the year on a strong and successful note in their aim to provide corporate pensions an effective solution to pension liability matching.
“family of building block pension indexes that aim to match traditional defined benefit plan liability and show lower tracking error versus pension liabilities than what’s seen in today’s market—without the need for derivatives.”
Since their launch in April 2016, more than $120 million has been raised in Nuveen investment strategies managed against the indexes as U.S. corporate pension plans are finding the approach to be simple and compelling as they work to efficiently de-risk their plans.
Highlighting the positive impact on the asset management industry, Chief Investment Officer Magazine also honored the indexes with their 2016 “Innovation Award” for Corporate Investment Strategies. At the December awards event, they called out the “family of building block pension indexes that aim to match traditional defined benefit plan liability and show lower tracking error versus pension liabilities than what’s seen in today’s market—without the need for derivatives.”
Commenting on the early success of the indexes, David Wilson, Managing Director and Head of Institutional Solutions for Nuveen Asset Management said, “In our effort to better serve our clients in the U.S. corporate defined benefit pension market, we listened to their call for innovative, yet simple and more effective approaches to de-risking the portfolios they manage on behalf of millions of retirees. We are gratified by both the positive reception of the indexes in the market and the recognition by CIO for this effort. Further, we cannot overstate the importance of our collaboration with Wilshire Analytics team. Because of their leadership in the indexing space and our expertise in crafting pension solutions, we are better able to develop the customized tools that we believe will enable plan sponsors of all sizes to effectively match their liabilities while enhancing yield potential.”
About the Indexes
The four indexes, Nuveen Wilshire Intermediate (5-10) Corporate Bond, Nuveen Wilshire Long (10-20) Corporate Bond, Nuveen Wilshire Long (20-30) Corporate Bond and the Nuveen Wilshire Ultra Long (20+) STRIPS, have each been designed with pension liability-matching in mind, but also for simplicity and cost-effectiveness. Combined, they seek to provide performance benchmarking, economic liability measurement and an effective investment de-risking solution. Returns for the indexes can be accessed at http://wilshire.com/indexcalculator/poweredbywilshire.htm. The Nuveen Asset Management approach to de-risking pension liabilities goes far beyond traditional duration matching. The investment solutions associated with the indexes could allow customized allocations that closely match both the overall and partial durations of any traditional corporate defined benefit pension liability without the need for derivatives. Furthermore, splitting up the long end of the corporate bond universe into two components help to increase the yield of the de-risking solution.
Nuveen provides investment solutions designed to help secure the long-term goals of individual investors and the advisors who serve them. Through the investment expertise of leading asset managers across traditional and alternative asset classes, Nuveen is committed to delivering consultative guidance that aligns with client needs. Funds are distributed by Nuveen Securities, LLC, a subsidiary of Nuveen Investments, Inc. Nuveen is an operating division of TIAA Global Asset Management. For more information, please visit the Nuveen website at www.nuveen.com.
The information contained on the Nuveen website is not a part of this press release.