Portfolio allocation in times of uncertainty
Never let a short-term desire get in the way of a long-term goal.
The temptation to react to every headline, every market move is often irresistible. Never more so than in an environment that screams uncertainty. But experience shows that successful investors have learned to stick to their strategies, regardless of bright, shiny objects that threaten to distract.
One such strategy is investing in private credit, an asset class which provides current income and ballast to a diversified portfolio. From investing in senior secured notes to mezzanine debt, directly originated private credit not only captures an illiquidity premium but also superior terms and structures over liquid credit strategies.
At Churchill’s Annual Investor Meeting last month, Nick Liolis, CIO of the TIAA General Account, was interviewed by Gillian Tett, the U.S. editor-in-chief of the Financial Times. An astute observer of the markets, Ms. Tett looked for insights on how a top-tier, global, century-old institutional investor is thinking about putting $20-30 billion annually to work in a pandemic world, with the conversation touching on liquid vs illiquid assets, public vs private markets, COVID and constructing a resilient portfolio.
About the authors
Investments in middle market loans are subject to certain risks. Please consider all risks carefully prior to investing in any particular strategy.
These investments are subject to credit risk and potentially limited liquidity, as well as interest rate risk, currency risk, prepayment and extension risk, inflation risk, and risk of capital loss.
The views and opinions expressed are for informational and educational purposes only as of the date of production / writing and may change without notice at any time based on numerous factors, such as market or other conditions, legal and regulatory developments, additional risks and uncertainties and may not come to pass. This material may contain “forward-looking” information that is not purely historical in nature.
Churchill Asset Management is a registered investment advisor and an affiliate of Nuveen, LLC. “Churchill Senior Lending” refers to the senior secured loan investment team and portfolio of Churchill Asset Management.
A word on risk
As an asset class, agricultural investments are less developed, more illiquid, and less transparent compared to traditional asset classes. Agricultural investments will be subject to risks generally associated with the ownership of real estate-related assets, including changes in economic conditions, environmental risks, the cost of and ability to obtain insurance, and risks related to leasing of properties. Nuveen provides investment advisory solutions through its investment specialists.
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