Newly released data from Morningstar shows that 80 percent of TIAA-CREF's variable annuity accounts and mutual funds exceeded their Morningstar median over the past 5 years, 70 percent did so over three years and 60 percent did so over 1 year . Further, half of TIAA-CREF's variable annuity accounts and funds held overall ratings of four or five stars as of December 31, 2007, representing 72 percent of assets under management.
This data underscores TIAA-CREF's competitive investment performance and the strength of the organization's investment philosophy that seeks to deliver consistent growth for investors year after year.
In addition, the following four funds received increases in their overall Morningstar star ratings as of December 31, 2007:
TIAA-CREF Institutional Mutual Funds of the same name share a common portfolio across share classes.
Overall Morningstar ratings are determined based on a combination of three, five and ten year risk-adjusted performance. For funds with less than five years of history, the rating is based 100 percent on three year performance; for funds with less than ten years of history, the rating is based on a weighted blend of three year and five year performance.
"At TIAA-CREF, we remain committed to delivering our clients a full-range of wealth accumulation services and investment choices suited to a variety of life stages to prepare for and live in retirement," said Scott Evans, Executive Vice President and Head of Asset Management, TIAA-CREF. "We commend our experienced investment professionals for maintaining their consistent approach to investing which has helped provide long term growth to our 3.4 million participants."
Morningstar Mutual Funds, a monthly publication of Morningstar, Inc., rates approximately 1,700 mutual funds by assessing each fund's historical total returns and risk relative to other mutual funds in its category as defined by Morningstar (i.e., Large Value, Large Growth, Mid Cap Growth). The return and risk evaluations are then combined to produce a 1- to 5-star risk-adjusted rating, which measures a fund's historical risk/return performance in any particular category.
Funds are ranked according to their risk-adjusted rating in five categories: The 10% of funds in each category with the highest risk-adjusted return receive five stars, the next 22.5% receive four stars, the middle 35% receive three stars, the next 22.5% receive two stars, and the bottom 10% receive one star. Investment decisions should not be based on a high rating alone. Morningstar does not rate funds or share classes that have less than three years of performance. A fund's rating may change at any time based on new data. For the most current performance information, please visit www.tiaa-cref.org. Ratings are historical and past performance is not a guarantee of future performance. Overall Morningstar Ratings are a trademark of Morningstar, Inc.
About TIAA-CREF
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization and the leading provider of retirement services in the academic, research, medical and cultural fields with more than $435 billion in combined assets under management (12/31/07).
Investment return and principal value will fluctuate with changes in market conditions such that shares or units may be worth more or less than original cost when redeemed. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877-518-9161, or go to www.tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. Past performance is not an indicator of future results.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877-518-9161, or go to www.tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. Past performance is not an indicator of future results.
Annuity products are issues by TIAA (Teachers Insurance and Annuity Association), New York, NY.
Chad Peterson, Director, Corporate Media Relations
cpeterson@tiaa-cref.org, 212 916-4808 Cell: 917 715-9083
Abby Aylman Cohen, Manager, Corporate Media Relations
aacohen@tiaa-cref.org, 212 916-4381 Cell: 917 596-4758
© 2009 and prior years, Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), New York, NY 10017
