Socially Responsible Investing: Community Investing

TIAA-CREF seeks to generate competitive returns for our participants by specializing in focused, high social impact investment programs across a wide variety of assets.

Our combined community investing programs represented more than $634 million in commitments and investments as of September 30, 2008. These programs are currently funded through the TIAA General Account¹ and through targeted investments in the fixed-income portion of the CREF Social Choice Account.

Corporate Social Real Estate Program
This program focuses on investments in affordable housing, workforce housing, urban and transit-oriented commercial development, and sustainable (“green”) development. As of September 30, 2008, TIAA-CREF had an aggregate, committed amount of approximately $559 million representing multiple investments in areas earmarked as Economic Development Areas and/or Lower to Moderate Income census tracts.

Recent investments include:

• A $30 million commitment in the Community Reinvestment Partners II Fund, a private equity fund established to acquire, renovate and reposition retail real estate properties.
• A $25 million commitment in the Phoenix Realty Group Metropolitan Workforce Housing Fund, a private equity fund investing in smart growth urban and infill development.
• A $30 million commitment in the Thomas Properties Group High Performance Green Fund, an example of specialized real estate investing that supports TIAA-CREF’s commitment to environmental stewardship.

Global Microfinance Investment Program
In February 2008, TIAA-CREF made a $10 million investment in Catalyst Microfinance Investors (CMI), a private equity investment fund focused on microfinance opportunities in Asia and Africa. This investment is part of our $100 million, four-year Global Microfinance Investment Program that began in September 2006 with a $43 million private equity placement in ProCredit Holding AG, a leading microfinance company. Microfinance investments enable clients to seek competitive returns through investments that promote human rights and economic development.

Community Bank Deposit Program
Through this program, launched in January 2007, TIAA-CREF makes sizable investments in FDIC insured certificates of deposit at local community development banks that help underserved communities. The first investment was for $22 million with subsidiaries of ShoreBank Corp., America's largest community development bank. We have rolled these initial deposits into 2008 and are in the process of identifying additional banks through which we can expand our overall investment in this program.

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