Recognition for most consistent risk-adjusted three-year performance versus industry peers
March 14, 2013
Recognizing strong and consistent overall mutual fund performance over a three-year period versus our peers, Lipper designated TIAA-CREF as the 2013 Best Overall Large Fund Company. We believe that this award validates our commitment to offering a best-in-class mutual fund platform that is robust, disciplined and firmly aligned with the long-term interests of our clients.
The award was presented in New York to Bill Riegel, Head of Equity Investments and Lisa Black, Head of Global Public Fixed-Income markets, who were on hand with other representatives of TIAA-CREF’s investment team for the ceremony. Lipper’s Best Overall Large Fund Company award is presented to firms showing the best overall risk-adjusted performance versus the mutual fund families of other large investment managers across all major asset classes, which include stocks, bonds and mixed asset funds over a three year period.i TIAA-CREF topped 35 other firms to win this category during what has often been a difficult period for active managers.
TIAA-CREF has been helping people invest through all market cycles for nearly 100 years. We believe the Lipper award recognizes the value of our disciplined approach along with our commitment to an asset management philosophy that balances proven strategies with innovative new ones.
This consistent approach to investing is also demonstrated through recent recognition from other third-party ratings and rankings, such as Morningstar and Barron’s.
iIn calculating the awards, Lipper considered funds registered for sale in the United State with at least 36 months of performance as of the end of the calendar year of the respective evaluation year. Fund groups with at least five equity, five bond, or three mixed-asset portfolios were eligible for an overall group award. The award is given to the group with the lowest average decile ranking of three years’ Consistent Return measure of the eligible funds over the three-year period ended 11/30/12. TIAA-CREF was ranked against 36 fund companies.
iiAs of December 31, 2012, 45% have 3 stars, 44% 4 stars and 9% 5 stars. The Morningstar ratings include Retail, Retirement, Premier and Institutional fund share classes; CREF Accounts and the Life Funds. 53% of our funds/accounts having an overall rating of 4 and 5 stars and 98% are rated 3 or more stars. 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 mutual fund/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 ended December 31, 2012.
iiiThe Lipper/Barron’s Fund Family survey uses an asset-weighted ranking system. Each fund’s return was measured against all those in its Lipper category, and the resulting percentile ranking was then weighted by asset size relative to the fund family’s other assets in its general category. The family’s overall ranking was then determined by weighting the five fund categories in proportion to their overall importance within Lipper’s fund universe. In the five-year overall ranking, TIAA-CREF is ranked 29th out of 53 mutual fund families. TIAA-CREF does not qualify for the 10-year ranking.
Past performance does not guarantee future results.
TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature for details.
Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.