Morley Capital Management awards $725 million in initial capital
New York, October 1, 2012 – TIAA-CREF today announced a $725 million mandate from Morley Capital Management, Inc., one of the oldest and largest stable value managers in the United States. Morley’s commitment begins with deposits in two separate account guaranteed interest contracts (SAGICs) issued to two pooled stable value funds managed by Morley.
“TIAA-CREF continually seeks to provide solutions that help individuals and institutions manage risk,” said Philip Maffei II, senior director overseeing Stable Value products at TIAA-CREF. “Demand from institutional and individual clients seeking safety, stability and peace of mind is significant and on-going. We are pleased to bring our expertise in managing stable value assets and liabilities to bear in support of Morley Capital Management’s solutions.”
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 $152.5 billion in stable value accumulation assets (as of June 30, 2012) for defined contribution plans, retiree healthcare savings plans, 529 college savings plans, individual retirement accounts and stable value funds.
“We like to work with asset managers who, like us, have a strong history of providing a conservative disciplined investment approach,” said Tim Stumpff, president at Morley Financial Services, Inc. “TIAA-CREF’s long-term outlook and experience as a manager of stable value assets made them an ideal partner for this mandate.”
TIAA and its wholly owned subsidiary, TIAA-CREF Life Insurance Company (“TC Life”), continue to hold the highest ratings currently awarded from all four leading independent insurance industry ratings agencies.1 These ratings underscore TIAA’s and TC Life’s stability, claims-paying ability and financial strength.
“Working with Morley is a natural extension of what our portfolio management teams have done successfully for our participants since 1918 and leverages our core strengths in asset, liability and risk management to provide institutional-investment-only stable value solutions,” said John Panagakis, senior managing director and head of Asset Management Business Development at TIAA-CREF.
The program’s guaranteed interest contracts (GICs) are issued by TC Life and the underlying assets of the separate account portfolio are managed in a high-quality, short-duration investment strategy by TIAA-CREF Asset Management through Teachers Advisors, Inc.
Morley Capital Management, Inc. is a financial investment advisory firm within Morley Financial Services, Inc., with headquarters in Portland, Oregon. Morley is the stable value affiliate of Principal Global Investors. Morley currently manages approximately $17 billion of assets. Morley Financial Services, Inc. is one of the oldest and largest stable value managers in the country and pioneered the use of managed stable value portfolios in 1982.
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $481 billion in combined assets under management (as of 6/30/12) and is the leading provider of retirement services in the academic, research, medical and cultural fields.
Abby Aylman Cohen
1 TIAA-CREF Life Insurance Company (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 4/12), Fitch (AAA as of 6/12), Moody's Investors Service (Aaa as of 6/12) and Standard & Poor's (AA+ as of 5/12). Per S&P criteria, the downgrade of US 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.
All guarantees in the TIAA Traditional are subject to TIAA's claims paying ability and is issued by Teachers Insurance and Annuity Association, New York, NY
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products TIAA-CREF Life insurance Company (TC Life) is a wholly owned subsidiary of Teachers Insurance and Annuity Association (TIAA). Both TIAA and TC Life are headquartered at 730, Third Avenue, New York, NY 10017.
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.