TIAA-CREF announced that at a special meeting held today a new investment management agreement between TIAA-CREF Institutional Mutual Funds and Teachers Advisors, Inc. was overwhelmingly approved by shareholders of all eight Funds on the ballot: International Equity, Large-Cap Value, Small-Cap Equity, Real Estate Securities, Social Choice Equity, Bond, Inflation-Linked Bond and Money Market Funds.
"The new management agreement enables the Funds to cover their cost of operation while remaining competitive with the lower-priced offerings in the industry," said TIAA-CREF Chief Executive Herb Allison. "We believe this was the best alternative for Fund shareholders and all TIAA participants. Our clients will continue to benefit from high-quality mutual funds for a wide range of investment objectives, and the Funds' operations can be financially self-sustainable."
The investment management agreement approved today is the same as the proposal the Funds' shareholders approved for 21 other TIAA-CREF Institutional Mutual Funds on August 31, 2005, and was not approved for the eight funds noted above or for the Growth Equity Fund.
Following the August vote, the Funds' advisor, Teachers Advisors, Inc., received indications that certain large, institutional shareholders might be willing to re-examine the proposal. Based on this feedback, and an assessment of the various alternative courses of action, the fully independent Board of Trustees for the Funds, at the recommendation of the Advisor, decided to provide shareholders of the eight funds with another opportunity to consider the investment management agreement approved today.
"The Board's action - to give shareholders the facts and let them decide - embodies the transparency and fairness that distinguishes our organization," Allison said. "We are pleased that, with a deeper understanding of the rationale for the new agreement, both individual and institutional Fund shareholders supported the proposal."
The agreement, which takes effect on February 1, 2006, affects only the TIAA-CREF Institutional Mutual Funds (except the Growth Equity Fund, which was not part of the resolicitation). Overall, TIAA-CREF Institutional Mutual Funds represent less than two percent of TIAA-CREF's assets under management. It does not affect 98% of TIAA-CREF's assets under management, including any of the following TIAA-CREF products:
TIAA-CREF clients who are unsure if they own any of the affected TIAA-CREF Institutional Mutual Funds can speak to an individual consultant in TIAA-CREF's contact center by calling 1 800 842-2776.
About TIAA-CREF
TIAA-CREF is a national financial services organization with more than $370 billion in combined assets under management (12/31/05) and the leading provider of retirement services in the academic, research, medical and cultural fields. Further information can be found at www.tiaa-cref.org.
© 2009 and prior years, Teachers Insurance and Annuity Association - College Retirement Equities Fund (TIAA-CREF), New York, NY 10017
