Doll adds that the Nuveen 2014 Equity Outlook Portfolio is designed to take advantage of the following broad trends:
- The U.S. economy grows 3% as housing starts surpass one million and private employment hits an all-time high
- 10-year Treasury yields move toward 3.5% as the Federal Reserve completes tapering and holds short-term rate near zero
- U.S. equities record another good year despite enduring a 10% correction
- Cyclical stocks outperform defensive stocks
- Dividends, stock buybacks, capital expenditures and M&A all increase at a double-digit rate
- U.S. dollar appreciates as U.S. energy and manufacturing trends continue to improve
- Gold falls for the second year and commodity prices languish
- Municipal bonds, led by high yield, outperform taxable bond counterparts
- Active managers outperform index funds
- Republicans increase their lead in the House but fall short of capturing the Senate
The holdings, which should each represent about 4% of the total portfolio, are found in the nine sectors:
- Consumer Discretionary: DirecTV (DTV), Macy's (M), Omicon (OMC) and Viacom (VIAB)
- Consumer Staples: Altria (MO) and Lorillard (LO)
- Energy: Apache (APA) and Chesapeake (CHK)
- Financials: Goldman Sacks (GS)
- Health Care: AmericsourceBergen (ABC), Cardinal Health (CAH), Humana (HUM), Medtronic (MDT), Pfizer (PFE), UnitedHealth (UNH) and WellPoint (WLP)
- Industrials: Boeing (BA), Delta (DAL), Northrop Grumman (NOC) and Raytheon (RTN)
- IT: Hewlett-Packard (HPQ), Microsoft (MSFT) and Oracle (ORCL)
- Materials: International Paper (IP)
- Telecommunications: Verizon (VZ)
The unit trust, Doll says, is designed to serve investors as a large-cap U.S. equity portfolio. "I've been doing my predictions for 25 years," he said, "and lot of people really like the output from them."
Nuveen and InCapital expect that if interest in the 2014 portfolio is robust, the two will partner and launch a 2015 product.
