Nathan Shetty, Head of Multi-Asset for Nuveen spoke with Julie Cooling, Founder & CEO, RIA Channel to discuss the opportunity in private markets, current macro economic trends, and portfolio construction considerations for advisors.
Shetty says that COVID-19, has in many ways shifted where future economic growth may come from. Pre-existing trends like e-commerce and cloud computing were already on the radar, COVID-19 simply supercharged the trend, leading to rapid adoption and a sharp upward trajectory. Other sectors, such as commercial real estate, and services-based industries have experienced a decline. On the manufacturing front, COVID-19 has ultimately forced companies to strengthen their supply chains and de-globalize.
Shetty says this pivot and re-emergence of manufacturing will likely impact private equity portfolios for years to come. Given the post COVID market environment, Shetty expects private markets to deliver even greater levels of diversification and differentiated returns going forward. Varying approaches to economic recovery from country to country has also opened up private market opportunities globally.
“I think the best way to differentiate where opportunities exist in the private markets is really about what the role is in the portfolio, in the context of your broader portfolio in order to meet your ultimate objectives,” explains Shetty.
As interest rates remains low and bonds struggle to deliver yield, a thoughtful exposure to private markets can help advisors achieve income and meet longterm client goals.
As Head of Multi-Asset at Nuveen, Shetty and his team manage portfolios across all asset classes including equities, commodities and fixed income. Leveraging a top down approach, the multi-asset team manages co-mingled strategies as well as model portfolios, leaning on their expertise in asset allocation and portfolio construction.
To learn more, head here.