Statement Regarding TIAA-CREF Money Market Fund and CREF Money Market Variable Annuity Account Credit Exposure

Recent press articles have raised concerns regarding the possibility that sub-prime mortgages could negatively impact money market fund performance. To address these concerns, we'd like to provide clients with additional background regarding the nature of credit exposures within the TIAA-CREF Money Market Fund and the CREF Money Market Variable Annuity Account.

TIAA-CREF Money Market Fund and the CREF Money Market Variable Annuity Account seek to provide high income consistent with maintaining liquidity and preserving capital, primarily through investing in high-quality short-term money market instruments. In identifying securities for investment, we apply a selective approach and closely evaluate all risks specific to the money market asset class.

With respect to potential risks or exposure of TIAA-CREF Money Market Fund and CREF Money Market Variable Annuity Account to difficulties that may arise as related to sub-prime mortgages, it is important to consider that:

• TIAA-CREF Money Market Fund and CREF Money Market Variable Annuity Account limit investments to securities that present minimal credit risk and are rated in the highest rating categories for short-term instruments.
• Importantly, TIAA-CREF Money Market Fund and CREF Money Market Variable Annuity Account have no direct exposure to any sub-prime asset classes, nor do any of our money market funds and accounts maintain exposure to CDOs (collateralized debt obligations).

TIAA-CREF remains focused on developing conditions within sub-prime mortgage and broader fixed income markets. We will continue to seek to provide highly competitive performance within our money market funds while closely managing and monitoring potential risk exposures.

An investment in the fund or account 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 $1.00 per share, it is possible to lose money by investing in the fund.