When Alexander Acosta goes before the Senate Health, Education, Labor, and Pension Committee on Wednesday next week, he is expected to bring less controversy than Andrew Puzder, the Trump administration's first nominee to head the Labor Department.

Trump's second DOL nominee also comes with a considerably shorter financial disclosure form.

Puzder's hearing was postponed four times due to the Office of Government and Ethics' delay in vetting his expansive financial holdings and his plan to divest upwards of $50 million in private shares of CKE Restaurants, where Puzder has served as CEO since 2000.

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Puzder was also a prolific investor in stocks and bonds. Puzder owns a SEP IRA, and listed about 350 security holdings ranging from investments in Vanguard ETFs, municipal bonds, individual stocks, real estate investment trusts, and private equity fund shares.

Acosta's investment portfolio has a much more vanilla feel. A former U.S. Attorney and head of the Justice Department's civil rights division in the George W. Bush Administration, Acosta has served as the dean of the college of law at Florida International University since 2009, and chairman of the board of U.S. Century Bank, a Miami-based community bank, since 2013.

A participant in a FIU-sponsored 403(b) defined contribution plan, Acosta's retirement savings are held in four funds, and are valued between $415,000 and $900,000. He also has cash in a brokerage account.

Acosta donated $2,000 to the Trump campaign in 2016, according to his disclosures to the Senate HELP committee.

Acosta will remain in FIU's defined contribution plan if nominated, though FIU will no longer contribute to his retirement fund, according to his disclosure filed with the OGE.

If confirmed, Acosta will arrive at Labor in midstream of the Department's review of the fiduciary rule, ordered by President Trump.

Acosta has had access to 25 mutual funds and target-date options, and 15 annuities in FIUs 403(b) plan.

He appears to prefer the income-generating and principal protection capabilities of annuities over lower cost passively managed mutual funds and TDFs. Most of his money is invested in two variable annuities.

Here is how Mr. Acosta has chosen to direct his retirement savings:

 

1. CREF Growth Fund

 

Acosta has between $250,000 and $500,000 invested in the TIAA variable annuity, which seeks long-term returns in companies that "present the opportunity for exceptional growth," according to TIAA's website.

R1 shares carry an expense ratio of 65 basis points. More than one-third of the fund is invested in information technology companies. As of the end of 2016, the fund's largest holding was in Alphabet (Google).

The fund has returned 2.53 percent in 2017, less than the roughly 7 percent gain in the Russell 1000 growth index.

 

2. CREF Global Equities

 

Next week will be Acosta's fourth time going through the Senate confirmation process.

His 403(b) retirement account holds between $100,000 and $250,000 in TIAA's CREF Global equities fund, another variable annuity that is typically invested 80 percent in equities. Financial stocks account for about one-fifth of the fund's holdings.

Apple was the largest holding, accounting of about 1.75 percent of the fund, as of the end of 2016.

 

3. TIAA Traditional Annuity

 

Acosta holds between $50,000 and $100,000 in the guaranteed income annuity, which is backed by the firm's general account.

Preference for the annuity indicates the nominee's personal preference for a buy-and-hold investment strategy and predictable income in retirement.

 

4.  T.Rowe Price Institutional Large-Cap Growth Fund

 

The institutional fund carries an expense ratio of 56 basis points, and has a 90 percent equity allocation.

The fund's largest holding is Amazon, accounting for more than 8 percent of the fund's assets. It's returned 16 percent over the past five years, better than the 14.5 percent earned by the Russell 1000 Growth Index.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.