TIAA-CREF Asset Management. A Guide to TIAA-CREF Mutual Funds

Transcription

1 TIAA-CREF Asset Management A Guide to TIAA-CREF Mutual Funds

2 Unwavering commitment to our clients success Born from a legacy of making a difference, TIAA-CREF Asset Management draws on a long-term perspective and deep investment management expertise across multiple asset classes. For almost 100 years, we ve been committed to helping clients achieve their financial goals. Contents Equity Funds 4 Fixed-Income Funds 10 Target-Date Funds 14 Multi-Asset Class Funds 18 Benchmarks 20

3 Mutual fund clients benefit from our decades of investment experience gained by successfully managing money through multiple market cycles. TIAA-CREF is one of the largest global asset managers. This gives you access to a wide range of asset classes and management approaches to meet your individual needs. We were created to serve the interests of our clients. We re dedicated to maximizing value for clients. You can rely on us for help in achieving your financial goals. We offer a best-in-class family of mutual funds at some of the lowest costs in the industry. 1 We seek long-term results that efficiently balance return and risk. TIAA-CREF s portfolio management teams apply repeatable portfolio-construction processes to their particular strategies. You can feel confident investing in our true-to-style mutual funds our investments have been recognized within the industry for generating superior risk-adjusted returns. 2 Recognized for delivering consistent results In 2013 and 2014, we received the Lipper Award for Best Overall Large Fund Company in the United States. We re one of only two firms to win the award in back-to-back years. This award highlights our ability to deliver consistent returns across asset classes at lower risk levels than other large fund families included in the ranking. 2 1 Source: Morningstar Direct, September 30, The expense ratio on all TIAA-CREF Mutual Funds is generally less than half the mutual fund industry average. 67% are less than half their respective Morningstar Universe average and 56% are less than half their respective Morningstar Universe median. 2 The Lipper Awards are based on a review of 36 companies 2012 and 48 companies 2013 risk-adjusted performance. The Lipper Award is given to the group with the lowest average decile ranking of three years Consistent Return for eligible funds over the three-year period ended November 30, 2012 and November 30, 2013, respectively. TIAA-CREF was ranked against 36 fund companies in 2012 and 48 fund companies in 2013 with at least five equity, five bond, or three mixed-asset portfolios.rce: Morningstar Direct, September 30, The expense ratio on all TIAA-CREF Mutual Funds is generally less than half the mutual fund industry average. 67% are less than half their respective Morningstar Universe average and 56% are less than half their respective Morningstar Universe median. A Guide to TIAA-CREF Mutual Funds 1

4 2 A Guide to TIAA-CREF Mutual Funds Our mutual fund offerings stay true to their established objectives and repeatable investment processes.

5 Invest in mutual funds with an established leader. What sets TIAA-CREF apart is how we ve applied our philosophy of providing consistent investment results across a broad array of mutual funds. Deep experience managing money through all market cycles Investment styles may fall in and out of favor, but we remain faithful to our proven approach that measures results by the long-term success of our clients. Our consistent, prudent investment processes are aimed at producing competitive, risk-adjusted returns over time. TIAA-CREF s global capabilities give our investment professionals ready access to companies and opportunities. Portfolio managers and analysts collaborate, sharing their extensive knowledge of the capital markets to gain greater insights into companies, market movements and trends. Our investment teams have their feet on the ground, visiting companies and assets to ensure they understand what s behind the reported financials. Industry leaders focused on your success All of our mutual fund offerings are managed by deeply experienced investment teams dedicated to providing best-in-class investment solutions. In total, the asset management team consists of more than 300 seasoned investment professionals. Asset management team members have, on average, 17 years experience in a variety of backgrounds. On average, our team members have been with TIAA-CREF for 10 years they know and understand our clients better than competitors. A smart approach for managing risk An independent risk management team oversees all we do. Reporting directly to our CEO, they look for unintended risk in individual investment areas while assessing cumulative risk across the organization. One of the goals is to see that gains in one part of the market are not offset by unexpected losses in another. A Guide to TIAA-CREF Mutual Funds 3

6 4 A Guide to TIAA-CREF Mutual Funds TIAA-CREF is one of the largest managers of equity assets based on institutional tax-exempt assets under management. 3

7 TIAA-CREF Funds Equity Portfolios Teams work across sectors, regions and borders to identify optimal opportunities. At TIAA-CREF, we ve been investing in equities for more than 60 years. Our long-tenured experience gives our portfolio managers and analysts access to companies and opportunities throughout the world. Recognizing that clients have varying needs and preferences, we employ actively managed and indexed equity strategies in the core, growth and value investment styles. These style-pure portfolios seek to deliver competitive, risk-adjusted returns over time. An approach aimed at uncovering the best ideas We ve developed a highly collaborative team approach that brings the maximum degree of expertise to bear on each investment decision. This approach across our global equity team allows the equity research team, portfolio managers and traders to view the markets from multiple perspectives. Portfolio managers partner with our research analysts expert professionals who build their careers specializing in sectors and industries. Many equity analysts manage their own sector portfolios, which gives them a proving ground for ideas and provides a long-term incentive. Portfolio managers and analysts engage in an ongoing dialogue to ensure the best insights are leveraged in each equity fund offering. They meet and conduct on-site visits with company management teams, suppliers and vendors to further inform their views. The portfolio management teams use consistent, disciplined investment processes. All opportunities are subjected to a thorough and rigorous analysis with the goal of selecting securities that will produce the desired results. Based on your time horizon and risk preference, you can choose from a wide range of active, enhanced and index equity strategies across different market capitalizations, geographies and investment styles. A Guide to TIAA-CREF Mutual Funds 5

8 TIAA-CREF Funds Equity Portfolios Actively Managed Equity Portfolios Active Funds Fund Name Share Class Ticker Benchmark Investment Strategy Large-Cap Value TRLIX TRCPX TRLCX TCLCX Russell 1000 Value Invests primarily in large-cap U.S. value stocks Looks for stocks that appear undervalued based on their potential worth Large-Cap Growth TILGX TILPX TILRX TIRTX Russell 1000 Growth Invests primarily in large-cap U.S. growth stocks Seeks companies with the potential for strong earnings or sales growth Growth & Income TIGRX TRPGX TRGIX TIIRX S&P 500 Invests primarily in large-cap U.S. equities Concentrates on income-producing stocks Seeks mature growth companies that are attractively priced Mid-Cap Value TIMVX TRVPX TRVRX TCMVX Russell Midcap Value Invests primarily in mid-cap U.S. value stocks Looks for stocks that appear undervalued based on their potential worth Mid-Cap Growth TRPWX TRGPX TRGMX TCMGX Russell Midcap Growth Invests primarily in mid-cap U.S. growth stocks Seeks companies with the potential for strong earnings or sales growth Small-Cap Equity TISEX TSRPX TRSEX TCSEX Russell 2000 Invests primarily in small-cap U.S. stocks Uses proprietary scoring models to identify attractive stocks Limits concentrations in individual sectors International Equity TIIEX TREPX TRERX TIERX MSCI EAFE Invests primarily in large-cap foreign stocks Looks for companies with successful track records and sustainable earnings growth Holdings are denominated in local currencies International Opportunities TIOIX TIOPX TIOTX TIOSX MSCI ACWI ex-usa Invests primarily in stocks in developed and emerging markets Looks for companies in the early stages of a structural growth opportunity 6 A Guide to TIAA-CREF Mutual Funds

9 TIAA-CREF Funds Equity Portfolios Active Funds Fund Name Share Class Ticker Benchmark Investment Strategy Emerging Markets Equity TEMLX TEMPX TEMSX TEMRX MSCI Emerging Markets Invests primarily in emerging markets stocks Limits concentrations in individual sectors or nations Holdings are denominated in local currencies Social Choice Equity TISCX TRPSX TRSCX TICRX Russell 3000 W W Invests in stocks that adhere to rigorous Environmental, Social and Governance (ESG) standards which reflect best industry practices Uses a quantitative investment approach to maintain a risk profile similar to that of the Russell 3000 Real Estate Securities TIREX TRRPX TRRSX TCREX FTSE NAREIT All Equity REITs Invests primarily in REITs and other companies engaged in the real estate industry Makes opportunistic sector investments Includes timber REITs for greater diversification Global Natural Resources TNRIX TNRPX TNRRX TNRLX MSCI All Country World Commodity Producers Sector Capped Invests in securities in the energy, metals and agriculture sectors Provides global exposure, including emerging markets Leadership in every facet of equity investing drives results. TIAA-CREF s global equity team comes from a wide variety of backgrounds to offer our clients options that are as diverse as they are. More than 35 equity portfolio managers with an average of 20 years of experience More than 40 senior equity research analysts with an average of 15 years of experience A Guide to TIAA-CREF Mutual Funds 7

10 TIAA-CREF Funds Equity Portfolios Enhanced and Equity Portfolios Funds Fund Name Share Class Ticker Benchmark Investment Strategy Equity TIEIX TCEPX TIQRX TINRX Russell 3000 Invests primarily in large-cap U.S. stocks Tracks the Russell 3000 Enhanced Large-Cap Value TEVIX Russell 1000 Value Invests primarily in large-cap U.S. value stocks Uses quantitative techniques in an effort to outperform the Russell 1000 Value Large-Cap Value TILVX TRCVX Russell 1000 Value Invests primarily in large-cap U.S. value stocks Tracks the Russell 1000 Value Enhanced Large-Cap Growth TLIIX Russell 1000 Growth Invests primarily in large-cap U.S. growth stocks Uses quantitative techniques in an effort to outperform the Russell 1000 Growth Large-Cap Growth TILIX TRIRX Russell 1000 Growth Invests primarily in large-cap U.S. growth stocks Tracks the Russell 1000 Growth S&P 500 TISPX TRSPX S&P 500 Invests primarily in large-cap U.S. stocks Tracks the S&P 500 Small-Cap Blend TISBX TRBIX Russell 2000 Invest primarily in small-cap U.S. stocks Tracks the Russell A Guide to TIAA-CREF Mutual Funds

11 TIAA-CREF Funds Equity Portfolios Funds Fund Name Share Class Ticker Benchmark Investment Strategy Invests primarily in large-cap foreign stocks Enhanced International Equity TFIIX MSCI EAFE Uses quantitative techniques in an effort to outperform the MSCI EAFE Holdings are denominated in local currencies International Equity TCIEX TRIPX TRIEX MSCI EAFE Invests primarily in large-cap foreign stocks Tracks the MSCI EAFE Holdings are denominated in local currencies Emerging Markets Equity TEQLX TEQPX TEQSX TEQKX MSCI Emerging Markets Invests primarily in emerging markets stocks Tracks the MSCI Emerging Markets A Guide to TIAA-CREF Mutual Funds 9

12 10 A Guide to TIAA-CREF Mutual Funds

13 TIAA-CREF Funds Fixed-Income Portfolios Teams employ a proven credit research process. Taking advantage of the many opportunities in fixed-income markets requires a depth of understanding where size and specialist expertise play important roles. As one of the leading managers of fixed-income assets in the United States, 3 TIAA-CREF s extensive resources and long experience have made it a respected name in the fixed-income market. By continuously evaluating trends in global fixed-income markets, our global fixed-income team is able to identify and capitalize on new investment opportunities that they apply to our clients advantage. Specifically, they: Employ a disciplined, relative-value approach that s driven by a macroeconomic view of market conditions and industry trends. Conduct quantitative and qualitative analysis on sectors across the global credit spectrum while assessing the financial position of issuers. Pursue rigorous bottom-up fundamental credit analysis to assess an issue s capital structure position, covenant terms, debt and risk profiles. Perform our own independent credit analysis, underpinning the selection of issuers for each portfolio. TIAA-CREF s broadly experienced portfolio managers work with a team of credit research and structured finance specialists on the global research team with the goal of finding potential value that others have missed. We offer clients an array of fixed-income products that cater to their different risk appetites and investment time horizons. We ve managed to put our investment philosophy to good use over the years. We successfully navigated the collapse of the credit markets by minimizing TIAA-CREF s exposure to subprime securities in 2003 four years before the onset of the credit crisis. 4 4 TIAA-CREF fixed income products are subject to market risk, credit risk and interest rate risk. Past performance does not guarantee future results. A Guide to TIAA-CREF Mutual Funds 11

14 TIAA-CREF Funds Fixed-Income Portfolios Fixed-Income Portfolios Active Funds Fund Name Share Class Ticker Benchmark Investment Strategy Bond TIBDX TIDPX TIDRX TIORX Barclays U.S. Aggregate Bond Invests primarily in investment-grade U.S. bonds Actively manages sector overweights and underweights Seeks to maintain a duration similar to its benchmark s to control risk Bond Plus TIBFX TBPPX TCBRX TCBPX Barclays U.S. Aggregate Bond Invests primarily in investment-grade U.S. bonds Makes investments in non-investment-grade securities, emerging markets securities and convertible and preferred securities Seeks to maintain a duration similar to its benchmark s to control risk Social Choice Bond TSBIX TSBPX TSBBX TSBRX Barclays U.S. Aggregate Bond Seeks competitive fixed-income investment returns while giving special consideration to certain Environmental, Social and Governance (ESG) criteria Invests primarily in undervalued, investment-grade securities Targets a duration similar to that of the Barclays U.S. Aggregate Bond Short-Term Bond TISIX TSTPX TISRX TCTRX Barclays U.S. 1-5 Year Government/ Credit Bond Invests primarily in U.S. government, agency and corporate bonds that mature in less than five years Seeks to maintain a duration similar to its benchmark s to control risk Inflation-Linked Bond TIILX TIKPX TIKRX TCILX Barclays U.S. TIPS Invests primarily in inflation-protected securities Seeks to maintain a duration similar to its benchmark s to control risk Tax-Exempt Bond TITIX TIXRX Barclays 10-Year Municipal Bond Invests primarily in tax-exempt bonds Seeks to maintain a duration similar to its benchmark s to control risk High-Yield TIHYX TIHPX TIHRX TIYRX BofA Merrill Lynch BB-B U.S. Cash Pay High Yield Constrained Invests primarily in high-yield U.S. bonds Makes opportunistic sector investments Emerging Markets Debt TEDNX TEDPX TEDTX TEDLX JP Morgan Emerging Markets Bond Global Diversified Invests primarily in emerging markets bonds Makes investments in U.S dollar-denominated and local currencydenominated sovereign, quasi-sovereign and corporate debt Bond TBIIX TBIPX TBIRX TBILX Barclays U.S. Aggregate Bond Invests primarily in investment-grade fixed-coupon U.S. bonds Tracks the Barclays U.S. Aggregate Bond 12 A Guide to TIAA-CREF Mutual Funds

15 TIAA-CREF Funds Fixed-Income Portfolios Funds Fund Name Share Class Ticker Benchmark Investment Strategy Money Market TCIXX TPPXX TIEXX TIRXX imoneynet Money Fund Averages All Taxable Invests primarily in debt obligations with a maturity of 397 days or less Maintains a dollar-weighted average maturity of 60 days or less Selects only securities ranked as first-tier securities by at least two ratings organizations The TIAA-CREF Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. Decades of dedication and experience Our seasoned fixed-income investment professionals rely on insight and intellectual capital developed through deep experience over multiple market cycles. More than 15 fixed-income portfolio managers with an average of 22 years of experience More than 30 senior fixed-income research analysts with an average of 12 years of experience A Guide to TIAA-CREF Mutual Funds 13

16 TIAA-CREF Funds Target-Date Portfolios Dynamic asset allocation designed to maximize retirement results The goal of our target-date Lifecycle Funds is to provide a simple, convenient means to get investors safely to and through retirement. These age-appropriate, professionally managed asset allocation portfolios automatically adjust as you get closer to retirement, freeing you from having to make investment decisions on an ongoing basis. TIAA-CREF s target-date funds are distinguished by key components that are critical to building effective portfolios and generating better retirement outcomes: Our glide paths are designed to address longevity risk given today s longer lifespans, providing higher stock exposure during the retirement phase than many competing funds. Actively managed Lifecycle Funds employ an additional layer of diversification by blending fundamental and quantitative investment approaches. Combining them in a single portfolio can help enhance diversification and reduce volatility part of our comprehensive approach to managing risk. We ve applied more than 60 years of asset allocation experience in developing our Lifecycle Funds using processes that strive to deliver strong risk-adjusted returns over time. Our very low costs for both our actively managed and index Lifecycle Funds keeps more of your money working for you. 5 5 Morningstar Direct as of September 30, 2014 based on expense comparisons by category. 14 A Guide to TIAA-CREF Mutual Funds

17 TIAA-CREF Funds Target-Date Portfolios Target-Date Portfolios Active Funds Fund Name Share Class Ticker Benchmark Investment Strategy Lifecycle 2060 TLXNX TLXPX TLXRX 2060 Fund Lifecycle 2055 TTRIX TTRPX TTRLX 2055 Fund Lifecycle 2050 TFTIX TCLPX TLFRX 2050 Fund Lifecycle 2045 TTFIX TTFPX TTFRX 2045 Fund Each target-date fund provides a single, diversified portfolio invested in equity and fixed-income funds Mix of underlying funds is managed to the Lifecycle Fund s target date Lifecycle 2040 TCOIX TCZPX TCLOX 2040 Fund Uses a dynamic asset allocation that gradually becomes more conservative over time Lifecycle 2035 TCIIX TCYPX TCLRX 2035 Fund Lifecycle 2030 TCRIX TCHPX TCLNX 2030 Fund Lifecycle 2025 TCYIX TCQPX TCLFX 2025 Fund Please note that the target date for the TIAA-CREF Lifecycle Funds is the approximate date when investors plan to start withdrawing their money. The principal value of the fund(s) is not guaranteed at any time, including at the target date. A Guide to TIAA-CREF Mutual Funds 15

18 TIAA-CREF Funds Target-Date Portfolios Target-Date Portfolios Active Funds Fund Name Share Class Ticker Benchmark Investment Strategy Lifecycle 2020 TCWIX TCWPX TCLTX 2020 Fund Each target-date fund provides a single, diversified portfolio invested in equity and fixed-income funds Lifecycle 2015 TCNIX TCFPX TCLIX 2015 Fund Mix of underlying funds is managed to the Lifecycle Fund s target date Uses a dynamic asset allocation that gradually becomes more conservative over time Lifecycle 2010 TCTIX TCTPX TCLEX 2010 Fund Lifecycle Income TLRIX TPILX TLIRX TLRRX Income Fund Invests in a mix of underlying funds that invest in stocks and bonds Fund s portfolio is rebalanced regularly to maintain desired asset allocations Funds Fund Name Share Class Ticker Benchmark Investment Strategy Lifecycle 2060 TVIIX TVIPX TVITX 2060 Fund Lifecycle 2055 TTIIX TTIPX TTIRX 2055 Fund Each target-date fund provides a single, diversified portfolio invested in equity and fixed-income index funds Mix of funds is managed to the Lifecycle Fund s target date Lifecycle 2050 TLLIX TLLPX TLLRX 2050 Fund Uses a dynamic asset allocation that gradually becomes more conservative over time Lifecycle 2045 TLXIX TLMPX TLMRX 2045 Fund 16 A Guide to TIAA-CREF Mutual Funds

19 TIAA-CREF Funds Target-Date Portfolios Funds Fund Name Share Class Ticker Benchmark Investment Strategy Lifecycle 2040 TLZIX TLPRX TLZRX 2040 Fund Lifecycle 2035 TLYIX TLYPX TLYRX 2035 Fund Lifecycle 2030 TLHIX TLHPX TLHRX 2030 Fund Each target-date fund provides a single, diversified portfolio invested in equity and fixed-income index funds Lifecycle 2025 TLQIX TLVPX TLQRX 2025 Fund Mix of funds is managed to the Lifecycle Fund s target date Uses a dynamic asset allocation that gradually becomes more conservative over time Lifecycle 2020 TLWIX TLWPX TLWRX 2020 Fund Lifecycle 2015 TLFIX TLFPX TLGRX 2015 Fund Lifecycle 2010 TLTIX TLTPX TLTRX 2010 Fund Lifecycle Income TRILX TLIPX TRCIX Income Fund Invests in a mix of underlying index funds that invest in stocks and bonds Fund s portfolio is rebalanced regularly to maintain desired asset allocations A Guide to TIAA-CREF Mutual Funds 17

20 TIAA-CREF Funds Multi-Asset Class Portfolios Gain consistent and diversified exposure to the market. TIAA-CREF offers multi-asset class funds that are diversified across asset classes, investment styles and management approaches. They offer investors optimal diversification using a sophisticated asset allocation process managed by an experienced team. Choose a fund that matches your risk preference Using a fund-of-funds approach, TIAA-CREF Lifestyle Funds are broadly diversified portfolios that incorporate sophisticated financial advice in a single fund designed to meet a specific risk profile. The funds offer clients a convenient, single-solution approach that can help them meet their financial objectives at a level of risk matching their risk preference. Unlike those of the TIAA-CREF Lifecycle Funds, the asset allocations in a Lifestyle Fund are designed to maintain a fixed allocation within a target risk level. Portfolio managers monitor the funds daily, striving to maintain a consistent exposure to risk through changing market conditions. Using proprietary methods to help manage risk, we assess the volatility of each underlying fund in determining the asset allocation for each target-risk portfolio. Take a single-solution approach to investing. TIAA-CREF s Managed Allocation Fund offers clients a convenient, single-solution approach to investing. While you can choose your preferred risk level with Lifestyle Funds, the target mix for Managed Allocation keeps a steady balance of 60% equity and 40% bonds. The fund has been developed by carefully analyzing how asset class diversification, portfolio efficiency and risk exposure may affect investor outcomes over time. The investment team blends a mix of U.S. and foreign stocks and domestic bonds to enhance potential risk-adjusted performance over time. 18 A Guide to TIAA-CREF Mutual Funds

21 TIAA-CREF Funds Multi-Asset Class Portfolios Multi-Asset Class Funds Multi-Asset Funds Fund Name Share Class Ticker Benchmark Investment Strategy Lifestyle Income TSITX TSIPX TLSRX TSILX Lifestyle Income Invests in funds designed to produce current income with some capital appreciation through an overall allocation of 20% of assets in equity and 80% of assets in fixed income Lifestyle Conservative TCSIX TLSPX TSCTX TSCLX Lifestyle Conservative Invests in funds designed to produce an overall allocation of 40% of assets in equity and 60% of assets in fixed income Lifestyle Moderate TSIMX TSMPX TSMTX TSMLX Lifestyle Moderate Invests in funds designed to produce an overall allocation of 60% of assets in equity and 40% of assets in fixed income Lifestyle Growth TSGGX TSGPX TSGRX TSGLX Lifestyle Growth Invests in funds designed to produce an overall allocation of 80% of assets in equity and 20% of assets in fixed income Lifestyle Aggressive Growth TSAIX TSAPX TSARX TSALX Lifestyle Aggressive Growth Invests in funds designed to produce an overall allocation of 100% of assets in equity Managed Allocation TIMIX TITRX TIMRX Managed Allocation Invests in funds designed to produce an overall allocation of 60% of assets in equity (including up to 5% in real estate securities) and 40% of assets in fixed income It s easy to invest in our mutual funds. Call your relationship manager or visit A Guide to TIAA-CREF Mutual Funds 19

22 About the funds benchmarks The Barclays U.S. Aggregate Bond measures the performance of the domestic investment-grade, fixed-rate bond market, including government and corporate securities, agency mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. The Barclays U.S. 1 3 Year Government/Credit Bond measures the performance primarily of U.S. Treasury and agency and corporate bonds with 1- to 3-year maturities. The Barclays 10-Year Municipal Bond measures the performance of long-term, tax-exempt bonds. Bonds in the index must be rated investment-grade (Baa3/BBB- or higher), have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The Barclays U.S. Treasury Inflation Protected Securities (TIPS) (Series-L) measures the performance of fixed-income securities with fixed-rate coupon payments that are adjusted for inflation, as measured by the Consumer Price for All Urban Consumers (CPI-U). The BofA Merrill Lynch BB-B U.S. Cash Pay High Yield Constrained measures the performance of bond securities that pay interest in cash and have a credit rating of BB or B. BofA Merrill Lynch uses a composite of Fitch Ratings, Moody s and Standard & Poor s credit ratings in selecting bonds for this index. These ratings measure the risk that the bond issuer will fail to pay interest or to repay principal in full. The index is market weighted, so that larger bond issues have a greater effect on the index s return. However, the representation of any single bond issuer is restricted to a maximum of 2% of the total index. The FTSE NAREIT All Equity REITs measures the performance of publicly traded real estate investment trusts in the United States, which own, manage and/or lease investmentgrade commercial real estate. The imoneynet Money Fund Averages All Taxable category is a simple average of over 1,000 taxable money market funds. The JP Morgan Emerging Markets Bond Global Diversified ( EMBI-GD ) is a uniquely-weighted version of the JP Morgan EMBI Global. It limits the weights of those index countries with larger debt stocks by only including specified portions of these countries eligible current face amounts of debt outstanding. The countries covered in the JP Morgan EMBI Global Diversified are identical to those covered by the JP Morgan EMBI Global (The JP Morgan EMBI Global tracks total returns for U.S.-dollar denominated debt instruments issued by emerging market sovereign and quasisovereign entities Brady bonds, loans and Eurobonds). The Lifecycle Funds Benchmarks are composites of the five unmanaged market sectors in which the funds invest: U.S. Equity (Russell 3000 ); International Equity (MSCI ACWI (All Country World ) ex-usa ); Fixed Income (Barclays U.S. Aggregate Bond ); Short-Term Fixed Income (Barclays U.S. 1-3 Year Government/Credit Bond ); and Inflation-Protected Assets (Barclays U.S. Treasury Inflation Protected Securities Series L). The Lifecycle Funds Benchmarks are composites of the four unmanaged market sectors in which the funds invest: U.S. Equity (Russell 3000 ); International Equity; Fixed Income (Barclays U.S. Aggregate Bond ); and Inflation-Protected Assets (Barclay s U.S. Treasury Inflation Protected Securities - Series L). The Lifestyle Funds Benchmarks are composites of the four unmanaged market sectors in which the funds invest: U.S. Equity (Russell 3000 ); International Equity (MSCI ACWI (All Country World ) ex-usa ); Fixed Income (Barclays U.S. Aggregate Bond ); and Short-Term Fixed Income (Barclays U.S. 1 5 Year Government/Credit Bond ). The Managed Allocation represents the three market sectors in which the fund invests: domestic equity, international equity and fixed income, weighted in proportion to the Managed Allocation Fund s target allocations among the three sectors, which may vary over time. The MSCI All Country World Commodity Producers Sector Capped measures the overall performance of commodity producers throughout the world. The largest components of the index include companies focused on integrated oil and gas, fertilizer, agricultural chemicals, and diversified metals and mining. The MSCI ACWI (All Country World ) ex-usa measures the performance of large-, mid- and small-cap stocks in 45 developed and emerging market nations throughout the world, excluding the United States. The MSCI EAFE (Europe, Australasia, Far East) measures the performance of the leading stocks in 21 developed countries outside North America. 20 A Guide to TIAA-CREF Mutual Funds

23 The MSCI Emerging Markets measures the performance of the leading stocks in 23 emerging countries in Europe, Asia, Africa, Latin America and the Middle East. The Russell 1000 Growth is a subset of the Russell 1000, which measures the performance of the stocks of the 1,000 largest companies in the Russell 3000, based on market capitalization. The Russell 1000 Growth measures the performance of those stocks of the Russell 1000 with higher relative forecasted growth rates and price/book ratios. The Russell 1000 Value is a subset of the Russell 1000, which measures the performance of the stocks of the 1,000 largest companies in the Russell 3000, based on market capitalization. The Russell 1000 Value measures the performance of those stocks of the Russell 1000 with lower relative forecasted growth rates and price/book ratios. The Russell 2000 measures the performance of the stocks of the 2,000 smallest companies in the Russell 3000, based on market capitalization. The Russell 3000 measures the performance of the stocks of the 3,000 largest publicly traded U.S. companies, based on market capitalization. The index measures the performance of about 98% of the total market capitalization of the publicly traded U.S. equity market. The Russell Midcap Growth is a subset of the Russell Midcap, which measures the performance of the stocks of the 800 smallest companies in the Russell 1000, based on market capitalization. The Russell Midcap Growth measures the performance of those stocks of the Russell Midcap with higher relative forecasted growth rates and price/book ratios. The Russell Midcap Value is a subset of the Russell Midcap, which measures the performance of the stocks of the 800 smallest companies in the Russell 1000, based on market capitalization. The Russell Midcap Value measures the performance of those stocks of the Russell Midcap with lower relative forecasted growth rates and price/book ratios. The S&P 500 is a market-capitalization-weighted index of the stocks of 500 leading companies in major industries of the U.S. economy. A Guide to TIAA-CREF Mutual Funds 21

24 3 Pensions & Investments, May 26, Rankings based on institutional tax-exempt assets under management as of December 31, 2013 reported by each responding asset manager. C19778 Past performance is not indicative of future results. The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call or go to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. Investments in small- to medium-sized corporations are more vulnerable to financial risks and other risks than larger corporations and may involve a higher degree of price volatility than investments in the general equity markets. Investing in non-u.s. markets involves certain additional risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity and the potential for market volatility and political instability. Portfolios are subject to certain risks such as market and investment style risk. Please consider all risks carefully before investing. You cannot invest directly in an index. returns do not include a deduction for fees or expenses. Russell 1000, Russell 2000, Russell 3000 and Russell Midcap are trademarks, service marks and copyrights of Russell Investments. TIAA-CREF products are not promoted or sponsored by, or affiliated with, Russell Investments. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. TIAA-CREF Asset Management provides investment advice and portfolio management services to the TIAA-CREF group of companies through the following entities: Teachers Advisors, Inc., TIAA-CREF Investment Management, LLC, and Teachers Insurance and Annuity Association (TIAA ). Teachers Advisors, Inc., is a registered investment advisor and wholly owned subsidiary of Teachers Insurance and Annuity Association (TIAA). TIAA-CREF is the name commonly used to refer to the companion organization for TIAA and CREF. TIAA-CREF Individual & Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products Teachers Insurance and Annuity Association of America-College Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY _ A11831 (11/14)