Stable value assets can provide steady income for retirement portfolios
NEW YORK, May 8, 2013 – TIAA-CREF, a leading financial services provider, today announced that Galliard Capital Management has selected it to manage $515 million of stable value assets in the Wells Fargo Stable Return Fund.
Stable value funds seek to preserve principal while providing stable returns and the opportunity for clients to achieve higher returns than those offered by money market funds.
“Stable value funds can provide investors with the safety and consistency that are an important part of creating lifelong financial well-being,” said Philip Maffei II, senior director for stable value products at TIAA-CREF. “Managing these assets is at the core of how we serve our clients’ retirement needs. We continue to see increased demand for products that seek to deliver safety and stability, and we look forward to bringing our experience to bear for Galliard and its clients.”
“Our investors look for safety, stability and peace of mind. TIAA-CREF’s financial strength, disciplined investment approach and extensive track record managing stable value assets make them a logical partner for Galliard,” said Tami Pearse, senior director for stable value management at Galliard.
TIAA-CREF’s approach to managing stable value assets leverages its more than 90 years of experience in asset, liability and risk management. Through its flagship guaranteed annuity, TIAA Traditional, and other principal protection products, TIAA-CREF currently manages $154 billion in stable value accumulation assets for defined-contribution plans, retiree healthcare savings plans, 529 college savings plans, individual retirement accounts and stable value funds.1
This selection of TIAA-CREF continues the expansion of its institutional separate account business in the pooled stable value fund marketplace. “These new relationships affirm TIAA-CREF’s role as a premier provider of institutional investment-only stable value solutions,” said John Panagakis, senior managing director and head of asset management business development at TIAA-CREF.
Galliard has the option to add to the assets TIAA-CREF manages on its behalf. The assets will be managed through a separate account guaranteed investment contract issued by TIAA-CREF Life Insurance Company (“TC Life”), and the underlying assets of the separate account portfolio are managed in a highly rated, short-duration investment strategy by TIAA-CREF Asset Management through Teachers Advisors, Inc.
TIAA and TIAA-CREF Life, its wholly owned subsidiary, continue to hold the highest credit ratings currently awarded from all four leading independent insurance industry ratings agencies.2 These ratings underscore TIAA’s and TIAA-CREF Life’s stability, claims-paying ability and financial strength.
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $520 billion in assets under management (as of March 31, 2013) and is the leading provider of retirement services in the academic, research, medical and cultural fields.
About Galliard Capital Management
The Wells Fargo Stable Return Fund (the “Fund”) is a collective trust fund for which Wells Fargo Bank, N.A. (“Wells Fargo”) is investment advisor and trustee. Galliard Capital Management, a wholly-owned subsidiary of Wells Fargo, serves as manager to the Fund. The Fund is not insured by the FDIC, Federal Reserve Bank, nor guaranteed by Wells Fargo or any affiliate, including Galliard Capital Management. Past performance is not an indication of how the investment will perform in the future.
Galliard Capital Management is an independently operated subsidiary of Wells Fargo Bank, N.A. and specializes in stable value and fixed income management. Galliard has $84 billion in assets under management and more than 230 institutional clients, including corporations, retirement plans, public funds, foundations and endowments, Taft Hartley plans, insurance companies and healthcare organizations.
Abby Aylman Cohen
TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit www.tiaa-cref.org for details.
1 As of Dec. 31, 2012.
2 TIAA-CREF Life is a wholly owned subsidiary of Teachers Insurance and Annuity Association (TIAA). TIAA-CREF Life holds the following ratings as a result of its relationship with TIAA: A.M. Best (A++ as of 9/14), Fitch (AAA as of 10/14), Moody's Investors Service (Aa1 as of 10/14) and Standard & Poor's (AA+ as of 10/14).. Per S&P criteria, the downgrade of U.S. long-term government debt limits the highest rating of U.S. insurers to AA+ (the second-highest rating available). There is no guarantee that current ratings will be maintained. Ratings represent a company’s ability to meet policyholders’ obligations and claims and do not apply to variable annuities, mutual funds or any other product or service not fully backed by TIAA-CREF Life’s claims-paying ability.