Asset Management

Featured Fund: TIAA-CREF High-Yield Fund

In today’s economic environment, the search for yield has brought many investors to consider high yield bond investments. But has the time to invest in this asset class passed?


Why High Yield? Consider these important points:

1High-yield continues to produce favorable yields vs. investment grade bonds

2Company fundamentals are solid as evidenced through low default rates, about 3%, as compared to historical averages of 4-5%.

3Returns have been historically better than investment-grade bonds and similar to equity, with less volatility

High-yield fixed-income securities, also known as “junk bonds,” are considered speculative, involve greater risk for default and tend to be more volatile than investment-grade fixed-income securities.

Quaterly Performance Returns

For over 50 years, TIAA-CREF has been investing in high-yield bonds. The TIAA-CREF High-Yield Fund offers investors:

  1. 5 stars1 from MorningstarTM for 5-year performance (out of 459 funds in the High Yield Bond category, 12/31/12 based on risk adjusted performance)
  2. Managed by Kevin Lorenz, CFA, and Jean C. Lin, CFA—both founding members of TIAA CREF’s High Yield team with over 40 years of combined investment experience
  3. Provides diversified exposure to primarily high yield corporate bonds and term loans ranging in quality from BB to B, with investments in bonds rated CCC and lower made on an opportunistic basis
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