Quarterly Investment Distinctions: Fall 2008

Key Facts

TIAA-CREF's funds frequently appear near the top of investment lists like Barron's, The Wall Street Journal and Lipper. For the second consecutive year, TIAA-CREF was ranked in the Top 10 of the Lipper/Barron's Fund Family Survey, placing ninth out of 67 families in 2007 based on asset-weighted total returns.⁴

More than two-thirds of TIAA-CREF's mutual funds and variable annuity accounts exceeded their Morningstar medians over the past three and five years as of September 30, 2008.⁵

According to Morningstar, a leading provider of mutual fund and variable annuities research and ratings, 41% of TIAA-CREF's mutual funds and annuity accounts had four- or five-star overall ratings from Morningstar; 98% had three or more stars (as of September 30, 2008). Morningstar ratings are based on risk-adjusted returns.

• In their June 23, 2008 edition, Morningstar reviewed the TIAA-CREF Growth and Income Fund and offered high praise for the fund while highlighting portfolio manager Susan Kempler's stock selection. As of June 30, 2008, the fund was rated against the following numbers of large blend funds over the following time periods: 1715 funds in the last three years and 1,325 funds in the last five years. With respect to these large blend funds, TIAA-CREF's Growth & Income Fund received a Morningstar Rating™ of five stars for the three- and five-year periods. The performance data quoted represents past performance and is no guarantee of future results. Morningstar star ratings are based on risk-adjusted returns. As of 9/30/08 the fund has negative returns.
  
• TIAA-CREF placed as the top manager of tax-exempt real estate assets again this year in Pensions & Investments annual real estate investment managers rankings. Ratings based on total TIAA-CREF AUM.⁶
  
• The TIAA-CREF Inflation-Linked Bond Fund was cited as a fund that performed well as a hedge against inflation, in the August 30, 2008 edition of USA Today's list of Treasury Inflation-Protected Securities (TIPS) funds. The citing came from data used by Lipper (based on dividends and gains reinvested through July 31 for the previous 5-year period).
  
• The TIAA-CREF Money Market Fund, Retail class was ranked seventh out of 1,800 among money market funds with the highest 12-month performance in the October 2, 2008 edition of The Wall Street Journal's "Investing in Funds Quarterly" section. The current yield more closely reflects the fund's current earnings than does the total return. As of October 31 the 7-day current annualized yield is 2.09%.⁷
  
• TIAA-CREF's Scott Budde, head of Global Social & Community Investing, wrote a book entitled, "Compelling Returns-A Practical Guide to Socially Responsible Investing." The book explains how investors can invest in our economy and world markets in a socially responsible way.⁸

TIAA and its insurance operating subsidiary, the TIAA-CREF Life Insurance Company, is one of just three U.S. life insurance companies to receive the highest ratings from all four major rating agencies. TIAA's insurance financial strength (IFS) ratings are:

• A.M. Best: A++ as of 9/2008
• Fitch Ratings: AAA as of 8/2008
• S&P: AAA as of 8/2008
• Moody's: Aaa as of 7/2008

For its stability, sound investments, claims-paying ability, and overall financial strength, TIAA currently holds top ratings from all the leading insurance company ratings agencies. (These ratings of TIAA as an insurance company do not apply to the TIAA Real Estate Account, to CREF or to the mutual funds.)

In many ways, the recent market volatility has underscored the reasons that TIAA-CREF is the right choice as a retirement plan provider. Our company's 90-year history of overcoming financial situations like these has given us the knowledge and experience needed to serve the needs of our participants. Our investment philosophy, our stability, top rated financial strength and long-term investment strategy set us apart from our competitors.

¹ As of June 30, 2008.

² As of 9/30/08, the fund has negative returns. For performance of this fund please go to tiaa-cref.org or call 1 877-518-9161.

³ Morningstar Direct (February 2008) based on Morningstar expense comparisons by category.

⁴ The Lipper/Barron's Fund Family survey uses an asset-weighted ranking system based on the 2007 returns of 67 fund families. In 2006, TIAA-CREF's mutual funds were ranked seventh out of 67 overall in the Lipper/Barron's Mutual Fund Family Survey. Due to the fund merger in April 2007, some TIAA-CREF mutual funds were not eligible for inclusion in the five-year ranking at that time. Ten-year rankings are not yet available. The study only included mutual fund performance and therefore did not reflect the performance of TIAA-CREF's annuity products or the TIAA Real Estate Account portfolio.

⁵ The Morningstar median represents the midpoint of an index of comparable funds/accounts grouped by factors such as investment objective and asset class.

⁶ September 29, 2008.

⁷ Excluded from these tables were funds that are only open to institutions, special purpose and tax-exempt. All performance data is preliminary and is based on data from Money Fund Report (iMoney.net).

⁸ All profits from the book are being donated to the Grameen Foundation, a Washington, DC-based 501(c)3 nonprofit corporation dedicated to promoting microfinance around the world.

Morningstar is an independent service that rates mutual funds and variable annuities. The top 10% of accounts in an investment category receive five stars, the next 22.5% receive four stars, and the next 35% receive three stars. Morningstar proprietary ratings reflect historical risk-adjusted performance and can change every month. They are calculated from the account's three-, five-, and ten-year average annual returns in excess of 90-day Treasury bill returns with appropriate fee adjustments, and a risk factor that reflects subaccount performance below 90-day T-bill returns. The overall star ratings are Morningstar's published ratings, which are weighted averages of its three-, five-, and ten-year ratings for periods ending December 31, 2007. Morningstar Direct (February 2008) based on Morningstar expense comparisons by category. Lipper is a trademark of Reuters, SA and provides data and analysis on mutual funds and variable annuities. Lipper is widely regarded as a leading independent source of investment company data that is used by independent investors.

For a complete listing of all TIAA-CREF performance data please visit tiaa-cref.org. Mutual funds that invest in small-cap companies are subject to heightened risks and are more volatile than funds that invest in larger, more established companies. High-yield bond funds that invest in non-investment-grade securities are subject to interest rate and inflation risks, and significantly higher credit risk. Real estate securities are subject to various risks, including fluctuations in property values, higher expenses or lower income than expected, and potential environmental problems and liability. Funds that invest in foreign securities are subject to special risks, including currency fluctuation and political and economic instability. Funds that invest in fixed income securities are not guaranteed and are subject to interest rate, inflation, and credit risks. For a more complete discussion of these and other risks, please consult the prospectus.

Annuity account options are available through contracts issued by TIAA or CREF. These contracts are designed for retirement or other long-term goals, and offer a variety of income options, including lifetime income. Payments from the variable annuity accounts are not guaranteed and will rise or fall based on investment performance. Mutual funds do not offer the range of income options available through annuities.

TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. Annuity products issued by TIAA (Teachers Insurance and Annuity Association), New York, NY. Advisory services are provided by Advice & Planning Services, a division of TIAA-CREF Individual & Institutional Services, LLC, a registered investment advisor.

Past performance is no guarantee of future results. You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 1 877 518-9161, or go to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing.