Asset Management

TIAA-CREF Launches 2055 Target-Date Fund

Provides Simple Way to Begin Saving for Retirement for Newest Members of the Workforce

New York, June 8, 2011

TIAA-CREF today announced the launch of the TIAA-CREF Lifecycle 2055 Fund (TTRLX, TTRIX, TTRPX), a broadly diversified fund designed to meet the needs of investors who today are 18 to 22 years old and plan to retire and leave the workforce in or around 2055.

The Lifecycle 2055 Fund expands TIAA-CREF’s Lifecycle Funds series to 10 offerings in five year increments and a Lifecycle Retirement Income Fund. The TIAA-CREF Lifecycle Funds’ glidepath continues through the retirement date to allow for additional potential growth of assets to fund retirements of potentially 20 years or longer. The Lifecycle Funds glidepath has been customized based on the needs of our retirement plan clients in the nonprofit sector who tend to live longer than the general population.

“As this years’ college graduates begin to enter the workforce, it’s imperative that we encourage them to start saving and investing early. Beginning with their first few paychecks and a tool such as a target-date fund is a simple way to get started,” said Randall Lowry, managing director and product manager for the TIAA-CREF Lifecycle Funds. “We’ve heard from our clients that their evolving workforce requires this later-dated fund. We will manage this fund with the same glidepath as our other existing active Lifecycle Funds, utilizing both quantitative and fundamental strategies, to help reduce volatility, diversify risk and meet their needs over typically longer retirements.”

At the outset, the Lifecycle 2055 Fund allocates 90 percent of assets to equity and 10 percent to fixed income. By its 2055 target retirement year, the allocation will shift to 50 percent equity and 50 percent fixed income, reaching the final allocation of approximately 40 percent equity and 60 percent fixed income between 2062 and 2065.

TIAA-CREF’s Lifecycle Funds have aggregate assets of more than $5.9 billion (3/31/11) after receiving close to $2 billion in net inflows during 2010, fourth highest in net inflows among target date providers.

TIAA-CREF Lifecycle Funds were rated “Above Average,” according to a recent report by Morningstar, Inc., noting the Funds’ moderate costs, high level of management investment in the funds, and highly experienced fund managers.

Initial Asset Allocation of TIAA-CREF Lifecycle 2055 Fund

Asset
Class
Allocation

Market
Sector

AllocationTIAA-CREF Underlying
Funds
Allocation
EQUITY90.00%U.S. Equity67.50%Large-Cap Growth Fund12.46%
Enhanced Large-Cap
Growth Index Fund
12.46%
Large-Cap Value Fund12.27%
Enhanced Large-Cap Value
Index Fund
12.27%
Growth & Income Fund10.50%
Small-Cap Equity Fund5.69%
Mid-Cap Value Fund0.97%
Mid-Cap Growth Fund0.88%
International
Equity
22.50%International Equity Fund8.32%
Enhanced International
Equity Index Fund
8.31%
Emerging Markets Equity
Fund
5.87%
FIXED
INCOME
10.00%Fixed-Income10.00%Bond Plus Fund6.00%
High-Yield Fund4.00%
TOTAL100.00%100.00%100.00%


These asset class allocations, market sector allocations within each asset class, and Underlying Fund allocations within each market sector reflect expected allocations as of June 30, 2011. These allocations will change over time.

About TIAA-CREF
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $466 billion in combined assets under management (as of 3/31/11) and is the leading provider of retirement services in the academic, research, medical and cultural fields.

Media Contact:
Abby Aylman Cohen
TIAA-CREF
aacohen@tiaa-cref.org
212 916-4381

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