Nareit Kicks Off 2020 Outreach to Financial Advisors

Source: Investment Company Institute, September 2019 and S&P Global Money Market Directories

Individual retirement accounts (IRAs) now make up the largest and fastest growing segment of the $28.9 trillion U.S. retirement market. Whereas 10 years ago, IRAs held one-third of retirement assets, these accounts now represent closer to 40% of the retirement universe and this figure is expected to grow to close to 50% over the next 10 years. Due to these market developments, Nareit has developed a strategic and comprehensive outreach program designed to promote REIT-based real estate investment to the retail investor marketplace, targeting financial intermediaries, such as family wealth offices, registered investment advisors (RIAs) and financial planners who oversee the investment decision for the majority of these IRA assets.

Nareit’s investor outreach team approaches this important market through a combination of two primary initiatives: (1) advocating REIT-based real estate investment allocations in the products and asset allocation models used by financial advisor networks; and, (2) developing broad-based investor education materials geared toward RIAs and delivered through a variety of communication channels, including direct marketing campaigns, earned media, direct meetings, and active participation in a limited number of high-profile, well-regarded conferences.

In 2019, Nareit conducted 183 meetings with investment managers that develop and distribute such financial products, including AB, Fidelity, Invesco, Principal Global Investors, T. Rowe Price and UBS. Additionally, multiple direct marketing campaigns were conducted throughout the year, reaching more than 320,000 U.S.-based RIAs and financial advisors.

2020 is already off to a strong start with the launch of the winter edition of the Advisor Access REIT Newsletter. This quarter’s newsletter features an interview with Evercore Senior Managing Director, Sheila McGrath, discussing the value proposition of REITs. The newsletter is distributed via email to approximately 85,000 retail financial advisors in the U.S. on a quarterly basis. It has generated over 100,000 views from advisors since the program was initiated in early 2016, enabling Nareit to keep timely topics concerning the REIT industry in front of the retail financial advisor audience and generating appreciable visibility for those Nareit members participating in the program. Nareit is also working with Chatham Partners this year to identify financial advisor awareness, understanding, and utilization of REIT investment products and determine the most compelling and relevant value proposition for REIT products. The research will include both quantitative and qualitative elements that we will share with Nareit members later in the year.

(Contact: Abby McCarthy at amccarthy@nareit.com)

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