With yield and risk investors' two biggest concerns today, Nuveen Investments has launched a microsite focusing exclusively on income (http://www.nuveen.com/income/default.aspx).
"Investors are deeply concerned about identifying sources of long-term income for their portfolios, and this search has been made all the more challenging by continued market volatility and the specter of inflation and rising interest rates," said Tony Rodriquez, co-head of fixed income for Nuveen Investments affiliate, Nuveen Asset Management.
"Because of the importance and lasting impact of this issue on a family's financial well being, several investment teams across Nuveen Investments, representing both equity and fixed income investing, have worked together to provide a comprehensive suite of material for investors and advisers to use in their investment planning conversations," Rodriguez said.
Thus, the site answers the following questions:
* Will my investments earn enough income?
* What happens if interest rates go up?
* Are there ways to address principal fluctuation?
* How does inflation erode purchasing power?
Recent articles include: "A 'New' Corporate Credit Market," "Market Conditions Could Make High Yield Municipals an Attractive Choice," "Generating Income in an Uncertain Environment" and "Investing in America."
The site also includes videos of Nuveen portfolio managers speaking about their market outlook and individual perspective, as well as other investment professionals talking about the economic outlook for fixed income investing.
In "Taxable Fixed Income Market Outlook: Don't Fear the Reaper," for instance, Rodriguez himself writes: "If you attributed a classic rock anthem to the mood of the fixed income markets during August and September of 2011, a pertinent choice might be "(Don't Fear)
the Reaper". You could almost hear the ominous opening Blue Oyster Cult guitar riff echo through the markets as investors feared that U.S. economic growth was slowing and its fiscal issues wouldn't be resolved."
The piece goes on to talk about U.S. economic growth, global economic conditions and the European situation.
Of the more than 100 mutual funds with $45 billion that Nuveen manages, the site showcases a few, such as taxable and municipal fixed income strategies, and risk-managed equity and credit strategies.
Volatility and economic concerns are having the unintended positive effect of making investors newly appreciative of income, dividends and quality investing, Rodriguez said.
"As we listen to advisers and investors, we continue to hear them voice their concerns about identifying investments that can offer yield potential and reduced volatility," he said.
What seems to be of greatest concern to investors, Rodriguez noted, is not just the high levels of market volatility in the second half of 2011, but the sting of near-zero yields on money funds.
That puts fixed income and dividend-paying investments in the driver's seat.
"Investor concerns have centered around finding yield without taking on too much risk," he said. "Fixed income investments have historically offered investors less volatility in extreme environments while dividend-paying equities tend to provide a degree of cushioning against volatility and contribute to their total returns."
Financial advisers, in particular, are finding it difficult to find yield among traditional sources: money market funds and muni bonds. Thus, they are beginning to embrace alternatives.
"We believe the market will remain in a slow economic growth environment in 2012, and because of that, we think income-producing investments in the non-Treasury segments of the market will be an important factor in structuring portfolios this year-be they taxable, tax-exempt or equities."
Nuveen decided to launch the site at the beginning of the year, when people receive year-end statements and revisit holdings.
Since yield and risk are investors' two biggest concerns, Nuveen Investments has launched a microsite focusing exclusively on income (http://www.nuveen.com/income/default.aspx).
"Investors are deeply concerned about identifying sources of long-term income for their portfolios, and this search has been made all the more challenging by continued market volatility and the specter of inflation and rising interest rates," said Tony Rodriquez, co-head of fixed income for Nuveen Investments affiliate, Nuveen Asset Management.
"Because of the importance and lasting impact of this issue on a family's financial well being, several investment teams across Nuveen Investments, representing both equity and fixed income investing, have worked together to provide a comprehensive suite of material for investors and advisors to use in their investment planning conversations," Rodriguez said.
Thus, the site answers the following questions:
* Will my investments earn enough income?
* What happens if interest rates go up?
* Are there ways to address principal fluctuation?
* How does inflation erode purchasing power?
Recent articles include: "A 'New' Corporate Credit Market," "Market Conditions Could Make High Yield Municipals an Attractive Choice," "Generating Income in an Uncertain Environment" and "Investing in America."
The site also includes videos of Nuveen portfolio managers speaking about their market outlook and individual perspective, as well as other investment professionals talking about the economic outlook for fixed income investing.
In "Taxable Fixed Income Market Outlook: Don't Fear the Reaper," for instance, Rodriguez himself writes: "If you attributed a classic rock anthem to the mood of the fixed income markets during August and September of 2011, a pertinent choice might be "(Don't Fear) the Reaper". You could almost hear the ominous opening Blue Oyster Cult guitar riff echo through the markets as investors feared that U.S. economic growth was slowing and its fiscal issues wouldn't be resolved."
Of the more than 100 mutual funds with $45 billion all told in them that Nuveen manages, the site showcases a few, such as taxable and municipal fixed income strategies, and risk-managed equity and credit strategies.
Volatility and economic concerns are having the unintended positive effect of making investors newly appreciative of income, dividends and quality investing, Rodriguez said.
"As we listen to advis0rs and investors, we continue to hear them voice their concerns about identifying investments that can offer yield potential and reduced volatility," he said.
What seems to be of greatest concern to investors, Rodriguez noted, is not just the high levels of market volatility in the second half of 2011, but the sting of near-zero yields on money funds.
That puts fixed income and dividend-paying investments in the driver's seat.
"Investor concerns have centered around finding yield without taking on too much risk," he said. "Fixed income investments have historically offered investors less volatility in extreme environments while dividend-paying equities tend to provide a degree of cushioning against volatility and contribute to their total returns."
Financial advis0rs, in particular, are finding it difficult to find yield among traditional sources: money market funds and muni bonds. Thus, they are beginning to embrace alternatives.
"We believe the market will remain in a slow economic growth environment in 2012, and income-producing investments in the non-Treasury segments of the market will be an important factor in structuring portfolios this year-be they taxable, tax-exempt or equities." That is why Nuveen's website aims at educating advisors on alternative income. Nuveen decided to launch the site at the start of the year, when people are receiving year-end statements and revisit their holdings.
