Investment Objective
The Lifecycle 2020 Fund seeks high total return over time through a combination of capital appreciation and income.
Portfolio Strategy
Each of the Lifecycle Funds is designed to provide a single diversified portfolio managed with a target retirement date in mind. Each portfolio invests in several underlying equity (stock) and fixed-income (bond) funds offered by TIAA-CREF Institutional Mutual Funds. The 2020 Fund:
- Invests in an initial asset allocation mix of equity funds and fixed-income funds.
- Over time, the fund's target allocation will gradually become more conservative, until 2020, when the mix of equity and non-equity funds reaches approximately 35%/65%.
In addition to asset allocation risk, the Lifecycle Funds are subject to the risks associated with the types of securities held by each of their underlying funds. For equity securities, these risks may include market risk, company risk, foreign investment risk, growth investing risk, value investing risk, style risk, and small-cap/mid-cap risk. For fixed-income securities, these risks may include interest rate risk, income volatility risk, credit risk, call risk, prepayment and extension risk, and special risks for inflation-indexed bonds. This fund’s overall risk level should gradually decline as the target allocation shifts more toward fixed income with the approach of the year 2020. For a more complete discussion of these and other risks, please see the prospectus.
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