-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MCpdcsUuLj9R2mBxOcjd1dHeL8LycgQlc9zqRyr9RlOXccDlVZShMCVzlvenNRxo qSd5Ir1zKsKG1g0YuEncqg== 0000950146-00-000326.txt : 20000329 0000950146-00-000326.hdr.sgml : 20000329 ACCESSION NUMBER: 0000950146-00-000326 CONFORMED SUBMISSION TYPE: 485APOS PUBLIC DOCUMENT COUNT: 7 FILED AS OF DATE: 20000328 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TIAA CREF LIFE FUND CENTRAL INDEX KEY: 0001068204 STANDARD INDUSTRIAL CLASSIFICATION: [] FILING VALUES: FORM TYPE: 485APOS SEC ACT: SEC FILE NUMBER: 333-61759 FILM NUMBER: 581497 FILING VALUES: FORM TYPE: 485APOS SEC ACT: SEC FILE NUMBER: 811-08961 FILM NUMBER: 581498 BUSINESS ADDRESS: STREET 1: 730 THIRD AVE CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2124909000 MAIL ADDRESS: STREET 1: 730 THIRD AVE CITY: NEW YORK STATE: NY ZIP: 10017 485APOS 1 TIAA-CREF LIFE FUNDS FORM N1-A File Nos. 333-61759, 811-08961 As filed with the Securities and Exchange Commission on March 28, 2000 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-1A Registration Statement Under the Securities Act of 1933 [X] Pre-Effective Amendment No. __ [ ] Post-Effective Amendment No. 3 [X] and Registration Statement Under the Investment Company Act of 1940 [X] Amendment No. 5 [X] (Check appropriate box or boxes) ---------------------------------------- TIAA-CREF Life Funds 730 Third Avenue New York, New York 10017 (800) 842-2733 (Registrant's Exact Name, Address and Telephone Number) Peter C. Clapman, Esq. TIAA-CREF Life Funds 730 Third Avenue New York, New York 10017 (Name and Address of Agent for Service) Copy to: Steven B. Boehm, Esq. Sutherland Asbill & Brennan LLP 1275 Pennsylvania Avenue, N.W. Washington, D. C. 20004-2415 Approximate Date of Proposed Public Offering: As soon as practicable after effectiveness of the Registration Statement. It is proposed that this filing will become effective (check appropriate box) [ ] immediately upon filing pursuant to paragraph (b) [ ] on April 1, 2000 pursuant to paragraph (b) [X] 60 days after filing pursuant to paragraph (a)(1) [ ] 75 days after filing pursuant to paragraph (a)(2) [ ] on (date) pursuant to paragraph (a)(2) of rule 485 If appropriate, check the following box: [ ] This post-effective amendment designates a new effective date for a previously filed post-effective amendment. Prospectus TIAA-CREF Life Funds Growth Equity Fund Growth & Income Fund International Equity Fund Stock Index Fund Social Choice Equity Fund April 3, 2000 This prospectus contains important information about the TIAA-CREF Life Funds, funds available only through the purchase of a variable annuity or other variable insurance contract issued by TIAA-CREF Life Insurance Company (TIAA-CREF Life). Please read this prospectus, along with the prospectus describing the contract, before investing and keep both prospectuses for future reference. The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense. [TIAA CREF LOGO] 1 Table of Contents 3 SUMMARY INFORMATION 3 INVESTMENT OBJECTIVES, STRATEGIES AND RISKS 3 Dual Investment Management Strategy(SM) 4 General Risks of Investing in the Funds 5 Growth Equity Fund 6 Growth & Income Fund 7 International Equity Fund 8 Stock Index Fund 9 Social Choice Equity Fund 10 PAST PERFORMANCE 10 MORE INFORMATION ABOUT THE FUNDS 11 FUNDS USING THE DUAL INVESTMENT MANAGEMENT STRATEGY(SM) 12 Growth Equity Fund 13 Growth & Income Fund 14 International Equity Fund 15 OTHER FUNDS 15 Stock Index Fund 16 Social Choice Equity Fund 18 ADDITIONAL INVESTMENT STRATEGIES 18 FUND MANAGEMENT 19 Prior Performance of Investment Adviser 22 PRICING OF FUND SHARES 22 OFFERING, PURCHASING AND REDEEMING SHARES 23 DIVIDENDS, DISTRIBUTIONS AND TAXES 24 GENERAL MATTERS 24 Voting Rights 24 Electronic Prospectuses 24 Householding 24 FINANCIAL HIGHLIGHTS
2 Summary Information Investment Objectives, Strategies and Risks TIAA-CREF Life Funds consists of five different investment portfolios (funds): Growth Equity Fund Growth & Income Fund International Equity Fund Stock Index Fund Social Choice Equity Fund Dual Investment Management Strategy(SM) Three of the funds (the Growth Equity Fund, the Growth & Income Fund, and the International Equity Fund) use TIAA-CREF's Dual Investment Management Strategy,(SM) with each having a "stock selection" and an "enhanced index" segment. o The stock selection segment holds a relatively small number of stocks that the fund management team believes offer superior returns. These stocks are chosen using fundamental analysis. o The enhanced index segment seeks to outperform the fund's benchmark index while limiting the possibility of significantly underperforming the benchmark. The fund management team attempts to outperform the benchmark index by over- or under-weighting many stocks in the index by small amounts, based on proprietary scoring models. The Dual Investment Management Strategy gives fund managers the flexibility to allocate amounts between the two segments, based on the investment opportunities that the fund management team determines to be available at a particular time. This approach enables the funds to stay fully invested even when the fund management team can't find sufficient investment opportunities for the stock selection segment. 3 General Risks of Investing in the Funds You can lose money in any of these funds, or the funds could underperform other investments. In particular, the funds are subject to the following general risks: o Market Risk--Stock and bond prices in general can decline over short or extended periods as a result of political or economic events. o Interest Rate Risk--Bond or stock prices may decline or a fund's income may fall if interest rates change. o Company Risk--A company's current earnings can fall or its overall financial soundness may decline. As a result, the price of its securities may go down, or the company may not be able to pay principal and interest on its bonds when due. o Foreign Investment Risk--The value of a fund's foreign investments could be reduced by, among other things, changes in currency exchange rates, the possible imposition of market controls or currency exchange controls, lower liquidity and higher volatility in some foreign markets and/or political, social or diplomatic events. Special additional risks associated with particular funds are discussed in the following fund summaries and elsewhere in this prospectus. An investment in TIAA-CREF Life Funds is not a deposit of any bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. 4 Growth Equity Fund Investment The fund seeks a favorable long-term return, mainly through capital objective appreciation, primarily from a diversified portfolio of common stocks that present the opportunity for exceptional growth. Principal The fund invests in stocks of companies in new and emerging areas of investment the economy and companies with distinctive products or promising strategies market conditions, using the Dual Investment Management Strategy. For its stock selection segment, the fund looks primarily for companies that we believe have the potential for strong earnings or sales growth, or that appear to be undervalued based on current earnings, assets or growth prospects. It can also invest in companies to benefit from prospective acquisitions, reorganizations, or corporate restructurings or other special situations. Foreign investments may range from 0% to 40% of the fund's portfolio. The benchmark index for the fund is the Russell 3000(R) Growth Index. (Russell 3000 is a trademark and a service mark of the Frank Russell Company.) Special The fund may sometimes hold a significant amount of stocks of smaller, investment lesser-known companies whose stock prices may fluctuate more than risks those of larger companies. This means the fund will probably be more volatile than the overall stock market. Who may The fund may be appropriate for investors who are looking for long-term want to capital appreciation, but who are willing to tolerate fluctuations in invest value. The risk of investing in the fund relative to the potential rewards is moderate to high.
5 Growth & Income Fund Investment The fund seeks a favorable long-term return through capital appreciation objective and investment income. Principal The fund invests in a broadly diversified portfolio of common stocks investment selected for their investment potential, using the Dual Investment strategies Management Strategy. For its stock selection segment, the fund management team looks primarily for stocks of larger, well-established, mature growth companies that we believe are attractively priced, show the potential to grow faster than the rest of the market, and offer a growing stream of dividend income. The fund may also invest in rapidly growing smaller companies and may have up to 20% of its assets in foreign securities. Normally, at least 80% of the fund's assets will be income-producing equity securities selected for their investment potential. The benchmark index for the fund is the Standard & Poor's 500 ("S&P 500") Index. Special Stocks paying relatively high dividends may significantly underperform investment other stocks during periods of rapid market appreciation. risks Who may The fund may be appropriate for investors who want capital appreciation want to and income-producing investments but who also can accept the risk of invest market fluctuations. The risk of investing in the fund relative to its potential rewards is moderate.
6 International Equity Fund Investment The fund seeks favorable long-term returns, mainly through capital objective appreciation. Principal The fund invests in a broadly diversified portfolio of primarily foreign investment equity investments, using the Dual Investment Management Strategy. strategies For the fund's stock selection segment, we concentrate on individual stocks rather than on geographic regions, sectors, or industries. We look for companies of all sizes that have certain characteristics such as sustainable growth, consistent cash flow and attractive stock prices based on current earnings, assets and long-term growth prospects. The benchmark index for the fund is the Morgan Stanley Capital International ("MSCI") EAFE(R) (Europe, Australasia, Far East) Index. Special Foreign investment risk is the most important risk of investing in this investment fund. Changes in currency exchange rates, the possible imposition of risks market controls, currency exchange controls, or foreign taxes, lower liquidity and higher volatility in some foreign markets and/or political, social or diplomatic events could reduce the value of the fund's investments. These risks may be even more pronounced for the fund's investments in emerging market countries. Who may The fund may be appropriate for investors who seek above-average want to long-term returns, understand the advantages of diversification across invest international markets and are willing to tolerate the greater risks of international investing. The risk of investing in the fund relative to the potential rewards is moderate to high.
7 Stock Index Fund Investment The fund seeks a favorable long-term rate of return from a diversified objective portfolio selected to track the overall market for common stocks publicly traded in the U.S., as represented by a broad stock market index. Principal The fund is designed to track U.S. equity markets as a whole and invests investment in stocks in the Russell 3000(R) Index. The fund uses a sampling strategies approach to create a portfolio that closely matches the overall investment characteristics (for example, yield and industry weight) of the index without actually investing in all 3,000 stocks in the index. Special While the fund attempts to closely track the Russell 3000(R) Index, it investment does not invest in all 3,000 stocks in the index. Thus there is no risks guarantee that the performance of the fund will match that of the index. Who may The fund may be appropriate for investors who seek a fund that tracks want to the return of a broad U.S. equity market index. The risk of investing in invest the fund relative to its potential rewards is moderate.
8 Social Choice Equity Fund Investment The fund seeks a favorable long-term rate of return that tracks the objective investment performance of the U.S. stock market while giving special consideration to certain social criteria. Principal The fund invests primarily in a diversified set of common stocks. The investment fund attempts to track the return of the U.S. stock market as represented strategies by the S&P 500 Index, while investing only in companies whose activities are consistent with the fund's social criteria. It does this primarily by investing in S&P 500 companies that are not excluded by the fund's social criteria, so that the fund's portfolio approaches the overall investment characteristics (e.g., yield and industry weight) of the S&P 500. Special Because its social criteria exclude some investments, this fund may not investment be able to take advantage of the same opportunities or market trends risks as do the funds that don't use such criteria. Who may The fund may be appropriate for investors who seek an equity investment want to that is generally broad-based but excludes companies that engage in invest certain activities. The risk of investing in the fund relative to its potential rewards is moderate.
9 Past Performance The following bar chart and table help illustrate the risks of investing in the Stock Index Fund and how investment performance varies. (Since the other funds are new, their performance is not presented here.) The bar chart shows the Stock Index Fund's performance since it was first available publicly on January 4, 1999, and below the chart we note the Stock Index Fund's best and worst returns for a calendar quarter since January 4, 1999. The performance table shows the fund's returns, and how those returns compare to those of a broad-based securities market index. Keep in mind that the fund's past performance does not indicate how it will perform in the future. [TABULAR REPRESENTATION OF BAR CHART] 1999 21.20%
Best Quarter: 4th 15.86%; Worst Quarter: 3rd -6.39% Cumulative Rates of Total Return for period ended 12/31/99 1 year (since launch -1/4/99) Stock Index Fund 21.20% Russell 3000(R) Index 20.90%
No performance data for the other funds of the TIAA-CREF Life Funds is included in this prospectus because none of those funds have been in operation for one full calendar year. Performance information for other funds managed by the investment advisory personnel who manage TIAA-CREF Life Funds is provided on page 21 of this prospectus. More Information About the Funds This section provides more information about each fund's investment objective, the principal investment strategies and techniques each fund uses to accomplish its objective, and the principal types of securities each fund purchases. These policies and techniques are not fundamental and may be changed by TIAA-CREF Life Funds' board of trustees without shareholder approval. However, we'll notify you of any significant changes. For a complete listing of the funds' policies and restrictions, see the Statement of Additional Information ("SAI"). We can't guarantee that any fund will meet its investment objective. 10 Funds Using the Dual Investment Management Strategy(SM) The Growth Equity Fund, the Growth & Income Fund, and the International Equity Fund use TIAA-CREF's Dual Investment Management Strategy(SM), which works like this: Each of these three funds has two separate segments called the "stock selection" segment and the "enhanced index" segment. The relative sizes of these two segments vary as the fund management team shifts money between them in response to investment opportunities. The stock selection segment holds a relatively small number of stocks that the fund management team believes offer superior returns. The managers of these equity funds will usually use fundamental analysis to select individual stocks or sectors for investment in the stock selection segment. Each fund's stock selection segment is described further below. Money that is not invested in a fund's stock selection segment goes to its enhanced index segment. Here the goal is two-fold: (1) to outperform each fund's benchmark index and (2) to limit the possibility of significantly underperforming that benchmark. The funds' managers attempt to outperform the benchmark indexes by over- or under-weighting many stocks in the index by small amounts, based on proprietary stock scoring models. In other words, a fund will hold more or less of some stocks than does its benchmark index. The managers attempt to control the risk of underperforming the benchmarks by maintaining the same overall financial characteristics (such as volatility, dividend yield and industry weights) as the benchmarks. 11 The Dual Investment Management Strategy enables the funds to stay fully invested even when the fund management team can't find sufficient investment opportunities for the stock selection segment. The benchmarks for each fund's enhanced index segment currently are as follows: Fund Benchmark - ---- --------- Growth Equity Fund Russell 3000(R) Growth Index Growth & Income Fund S&P 500(R) Index International Equity Fund MSCI EAFE(R) (Europe, Australasia, Far East) Index
Using these benchmarks is not a fundamental policy of any of the TIAA-CREF Life Funds, so we can substitute other benchmark indices without shareholder approval. We'll notify you before we make such a change. Growth Equity Fund The Growth Equity Fund seeks a favorable long-term return, mainly through capital appreciation, primarily from a diversified portfolio of common stocks that present the opportunity for exceptional growth. Normally, the fund will have at least 80% of its assets in equity securities that have the potential for capital appreciation. The fund uses the Dual Investment Management Strategy. The fund's stock selection segment can invest in companies of all sizes, including companies in new and emerging areas of the economy and companies with distinctive products or promising markets. We choose individual investments based on a company's prospects under current or forecasted economic, financial and market conditions, looking for companies we believe have the potential for strong earnings or sales growth, or that appear to be undervalued based on current earnings, assets, or growth prospects. The fund can also invest in large, well-known, established companies, particularly when we believe they have new or innovative products, services, or processes that enhance future earnings prospects. The fund can also invest in companies in order to benefit from prospective acquisitions, reorganizations, or corporate restructurings or other special situations. 12 The Growth Equity Fund can buy foreign securities and other instruments if we believe they have superior investment potential. Depending on investment opportunities, the fund may have up to 40% of its assets in foreign securities. The securities will be those traded on foreign exchanges or in other foreign markets and may be denominated in foreign currencies or other units of account. Special Investment Risks: The fund is subject to the general investment risks described on page 4, including the risks of foreign investments. In addition, there are special risks to investing in growth stocks. The fund may at times hold a significant amount of stocks of smaller, lesser-known companies. Their stock prices may fluctuate more than those of larger companies because smaller companies may depend on narrow product lines, have limited track records, lack depth of management, or have thinly-traded securities. Also, stocks of companies involved in reorganizations and other special situations can often involve more risk than ordinary securities. Accordingly, the Growth Equity Fund will probably be more volatile than the overall stock market, and it could significantly outperform or underperform the stock market during any particular period. Growth & Income Fund The Growth & Income Fund seeks a favorable long-term return through capital appreciation and investment income, primarily from a broadly diversified portfolio of common stocks. Normally, at least 80% of the fund's assets will be income-producing equity securities selected for their investment potential. The fund invests in a broadly diversified portfolio of common stocks, using the Dual Investment Management Strategy. The fund's stock selection segment concentrates on individual companies rather than sectors or industries. We look for stocks of larger, well-established companies that we believe are attractively priced, show the potential to grow faster than the rest of the market, and offer a growing stream of dividend income. In particular, we look for companies that are leaders in their industries. We also look for companies with shareholder-oriented managements dedicated to creating shareholder value. The fund may also invest in rapidly growing smaller companies. It can have up to 20% of its assets in foreign securities. Special Investment Risks: The fund is subject to the general investment risks described on page 4, including the risks of foreign investments. In addition, stocks paying relatively high dividends may at times significantly underperform other stocks during periods of rapid market appreciation. 13 International Equity Fund The International Equity Fund seeks a favorable long-term return, mainly through capital appreciation from a broadly diversified portfolio that consists primarily of foreign equity investments. The fund intends to always have at least 80% of its assets in equity securities of companies located in at least three different countries, other than the United States. The fund uses the Dual Investment Management Strategy. The fund may invest in companies of all sizes. For the fund's stock selection segment, we concentrate on individual stocks rather than on geographic regions, sectors, or industries. We do, however, regularly monitor the the fund's sector and country exposure in order to control risk. In particular, we look for companies of all sizes that have certain characteristics, such as: o sustainable growth o focused management with successful track records o unique and easy-to-understand franchises (brands) o stock prices that do not fully reflect the inherent value of the security based on the company's current earnings, assets, and long-term growth prospects o consistent generation of free cash flow Special Investment Risks: The fund is subject to the general investment risks described on page 4, especially the risks of foreign investments. In particular, investing in securities traded on foreign exchanges or in foreign markets can involve risks beyond those of domestic investing. These include: (1) changes in currency exchange rates; (2) possible imposition of market controls or currency exchange controls; (3) possible imposition of withholding taxes on dividends and interest; (4) possible seizure, expropriation, or nationalization of assets; (5) more limited foreign financial information or difficulty in interpreting it because of foreign regulations and accounting standards; (6) the lower liquidity and higher volatility in some foreign markets; (7) the impact of political, social, or diplomatic events; (8) the difficulty of evaluating some foreign economic trends; or (9) the possibility that a foreign government could restrict an issuer from paying principal and interest to investors outside the country. Brokerage commissions and transaction costs are often higher for foreign investments, and it may be harder to use foreign laws and courts to enforce financial or legal obligations. 14 The risks noted above often increase in countries with emerging markets. For example, these countries may have more unstable governments than developed countries, and their economies may be based on only a few industries. Because their securities markets may be very small, share prices may be volatile. In addition, foreign investors are subject to a variety of special restrictions in many emerging countries. The fund will focus its investments primarily in those countries which are included in the MSCI EAFE Index. Other Funds Stock Index Fund The Stock Index Fund seeks a favorable long-term rate of return from a diversified portfolio selected to track the overall market for common stocks publicly traded in the U.S., as represented by the Russell 3000(R), a broad market index. Although the fund invests in stocks in the Russell 3000 Index, it doesn't invest in all 3,000 stocks in the index. Rather, we use a sampling approach to create a portfolio that closely matches the overall investment characteristics (for example, yield and industry weight) of the index. This means that a company can remain in the fund even if it performs poorly, unless the company is removed from the Russell 3000. Using the Russell 3000 Index isn't fundamental to the fund's investment objective and policies. We can change the index used in this fund at any time and will notify you if we do so. The fund can also invest in securities and other instruments, such as futures, whose return depends on stock market prices. We select these instruments to attempt to match the total return of the Russell 3000 but may not always do so. The Russell 3000 Index is an unmanaged index of stocks of the 3,000 largest publicly traded U.S. companies, based on market capitalization. Russell 3000 companies represent about 98% of the total market capitalization of the publicly traded U.S. equity market. The market 15 capitalization of the individual companies in the index ranged from $178 million to $407 billion with an average of $5.34 billion as of December 31, 1999. The Frank Russell Company determines the composition of the index based only on market capitalization and can change its composition at any time. The Russell 3000 Index is not a mutual fund and you cannot invest directly in the index. Special Investment Risks: The fund is subject to the general investment risks described on page 4, although it does not have foreign investment risk. In addition, while the fund attempts to closely track the Russell 3000 Index and changes are made to its holdings to reflect changes in the index, the fund does not invest in all 3,000 stocks in the index. Thus, there is no guarantee that the performance of the fund will match that of the index. Also, because the index's returns aren't reduced by investment and other operating expenses, the fund's ability to match the index will be adversely affected by the costs of buying and selling stocks as well as other expenses. The stock prices of smaller, lesser-known companies, which make up a small portion of the index, may fluctuate more than those of larger companies because smaller companies may depend on narrow product lines, have limited track records, lack depth of management, or have thinly-traded securities. Social Choice Equity Fund The Social Choice Equity Fund seeks a favorable long-term rate of return that reflects the investment performance of the U.S. stock market while giving special consideration to certain social criteria. Normally, at least 80% of the fund's assets will be invested in common stocks. The fund attempts to track the return of the U.S. stock market as represented by the Standard & Poor's 500 Index. It does this primarily by investing in S&P 500 companies that are not excluded by the fund's social criteria, so that the fund's portfolio approaches the overall investment characteristics (e.g., yield and industry weight) of the S&P 500. The social criteria the fund takes into consideration are non-fundamental investment policies. They can change without the approval of the fund's shareholders. Currently, the fund invests only in companies that do not: 16 o engage in activities that result or are likely to result in significant damage to the natural environment; o have a significant portion of its business in weapons manufacturing; o produce and market alcoholic beverages or tobacco products; o produce nuclear energy; or o have operations in Northern Ireland and have not adopted the MacBride Principles (a fair employment code for U.S. firms operating in Northern Ireland) or have not operated consistently with such principles and in compliance with the Fair Employment Act of 1989 (Northern Ireland). For the first three criteria, we examine the company to decide whether the activity is a "significant" part of its business--basing our decision on, for example, how large a part of a company's operation the activity involves or how much revenue it brings in. In determining whether a particular activity is significant to a company, we do not rely on strict objective criteria, but rather make judgments based on the facts and circumstances pertaining to the company. The TIAA-CREF Life Funds board of trustees receives guidance from Teachers Advisors, Inc. (Advisors), the fund investment adviser, in deciding whether investments meet the social criteria. Advisors uses information from independent organizations such as the Investor Responsibility Research Center, Inc., as well as from information compiled by the affiliated TIAA-CREF Corporate Governance and Social Responsibility Committees. We'll do our best to make sure the fund's investments meet the social criteria, but we can't guarantee that every holding will always do so. Even if an investment is not excluded by the social criteria, we have the option of excluding it if we decide it is not suitable. The fund isn't restricted from investing in any securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The fund can also invest in securities issued by other countries or their agencies and instrumentalities, as approved by the TIAA-CREF Life Funds' board of trustees. The fund can also invest up to 15% of its assets in foreign securities. Special Investment Risks: The fund is subject to the general investment risks described on page 4. In addition, because its social criteria exclude some investments, this fund may not be able to take advantage of the same opportunities or market trends as do the funds that don't use such criteria. 17 Additional Investment Strategies While the funds invest primarily in common stocks, each fund can also invest, to a limited extent, in other equity securities such as preferred stock, convertible securities, and warrants. Each fund can also hold short-term debt securities and other money market or short-term instruments, including those denominated in foreign currencies. These help the funds maintain liquidity, use cash balances effectively, and take advantage of attractive investment opportunities. The funds can also hold fixed-income securities they acquire because of mergers, recapitalizations, or otherwise. Similarly, each fund may also buy and sell options, futures contracts, and options on futures. We intend to use options and futures primarily for hedging or for cash management. To manage currency risk, the funds can also enter into forward currency contracts, and buy or sell options and futures on foreign currencies. The funds can also invest in newly developed financial instruments, such as equity swaps (including arrangements where the return is linked to a stock market index) and equity-linked fixed-income securities, so long as these are consistent with a fund's investment objective and restrictions. Fund Management Teachers Advisors, Inc. (Advisors) manages the TIAA-CREF Life Funds' assets, under the supervision of the board of trustees of TIAA-CREF Life Funds, and is a wholly-owned indirect subsidiary of Teachers Insurance and Annuity Association of America (TIAA). Advisors is registered with the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940. The specialized portfolio management teams of Advisors who manage the funds also manage the investments of TIAA Separate Account VA-1, TIAA-CREF Mutual Funds, and 18 TIAA-CREF Institutional Mutual Funds, and, through an affiliated investment adviser, TIAA-CREF Investment Management, LLC (Investment Management), the investment accounts of the College Retirement Equities Fund (CREF). Advisors is located at 730 Third Avenue, New York, New York 10017. Under its investment management agreement with TIAA-CREF Life Funds, Advisors is entitled to an annual fee based on a percentage of the average daily net assets of each fund. Advisors has voluntarily agreed to waive a portion of its management fee for each fund. The waivers are contractual and will remain in effect until April 1, 2003. The management fees with and without the waivers are as follows:
Management Current Management Fees (before waiver) Waiver Fees (after waiver) ---------------------- ---------- -------------------- Growth Equity Fund 0.46% 0.21% 0.25% Growth & Income Fund 0.44% 0.21% 0.23% International Equity Fund 0.53% 0.24% 0.29% Stock Index Fund 0.30% 0.23% 0.07% Social Choice Equity Fund 0.39% 0.21% 0.18%
Advisors' duties include conducting research, recommending investments, and placing orders to buy and sell securities. Advisors is also responsible for providing or obtaining at its own expense the services necessary to operate the TIAA-CREF Life Funds on a day-to-day basis. These include custodial, administrative, portfolio accounting, dividend disbursing, auditing, and ordinary legal services. The funds are managed by Advisors through specialized portfolio management teams whose members are jointly responsible for the day-to-day management of the funds. Prior Performance of Investment Adviser The TIAA-CREF Life Funds have a limited performance record. To illustrate the experience of Advisors' personnel in managing investment portfolios comparable to the TIAA-CREF Life Funds, we are providing you, in the charts below, with historical performance for portfolios managed by the same specialized portfolio management teams that manage the TIAA-CREF Life Funds, with investment objectives, policies, strategies and risks that are substantially the same as those of the TIAA-CREF Life Funds. The performance of an appropriate broad-based 19 securities market index, adjusted to reflect the reinvestment of dividends on securities in the index, is also presented for each fund. The portfolios presented are: o the TIAA-CREF Mutual Funds' Growth Equity Fund, Growth & Income Fund, and International Equity Fund, mutual funds managed by Advisors; o the Stock Index Account of TIAA Separate Account VA-1, a variable annuity managed account managed by Advisors; and o the Growth Account and Equity Index Account of CREF, variable annuity managed accounts managed by the same portfolio management teams in their capacities with Investment Management. (We have not included the performance of the TIAA-CREF Institutional Mutual Funds in the chart, since its portfolios, some of which are substantially similar to the TIAA-CREF Life Funds, have not been in operation for a full year. Also note that, except for the unseasoned Institutional Social Choice Equity Fund, there is no investment portfolio managed by Advisors' personnel that is substantially similar to TIAA-CREF Life Fund's Social Choice Equity Fund.) The historical performance results presented below are net of investment management and other operating expenses of the portfolios, including any applicable waivers. We have included in parenthesis, next to each portfolio, the annual expense ratios (net of any waivers) for each portfolio, as of December 31, 1999. (Note that CREF deducts its expenses at cost, and the expenses quoted below have varied over time.) The expenses for the CREF and TIAA Separate Account VA-1 accounts include certain administrative and mortality expenses that, for insurance contract holders indirectly investing in the TIAA-CREF Life Funds, would be deducted at the contract level and not the fund level. (The investment management component of the expenses for these accounts were as follows: CREF Growth Account-0.11%; CREF Equity Index Account-0.06%; TIAA Separate Account VA-1 Stock Index Account-0.07%.) A contract holders' actual returns on its indirect investment in the TIAA-CREF Life Funds will be lower once contract level expenses are deducted. For example, the TIAA-CREF Life Personal Annuity Select variable annuity contract deducts an additional 0.30% from fund returns. 20 The historical performance information presented doesn't represent the performance of the similarly-named funds described in this prospectus, nor is the information intended to predict or suggest the returns that the corresponding fund of TIAA-CREF Life Funds might experience. Please do not confuse the funds with the other portfolios using very similar or nearly identical names.
5 years 1 year ended Inception to Inception of Average Annual ended Dec. Dec. 31, 10 years ended Dec. 31, Account/ Total Return Expenses 31, 1999 1999 Dec. 31, 1999 1999 Fund - -------------------------------------------------------------------------------------------------------------- Accounts/Funds similar to: Growth Equity Fund (0.25%) - -------------------------------------------------------------------------------------------------------------- Growth Equity Fund of 33.00% N/A N/A 33.36% Sept. 2, 1997 TIAA-CREF Mutual Funds (0.45%) - -------------------------------------------------------------------------------------------------------------- Russell 3000 Growth Index 33.82% N/A N/A 32.01% Sept. 2, 1997 - -------------------------------------------------------------------------------------------------------------- Growth Account of CREF (0.34%) 32.52% 30.86% N/A 27.74% Apr. 29, 1994 - -------------------------------------------------------------------------------------------------------------- Russell 3000 Growth Index 33.82% 31.10% N/A 28.40% Apr. 29, 1994 - -------------------------------------------------------------------------------------------------------------- Accounts/Funds similar to: Growth & Income Fund (0.23%) - -------------------------------------------------------------------------------------------------------------- Growth & Income Fund of 24.46% N/A N/A 27.45% Sept 2, 1997 TIAA-CREF Mutual Funds (0.43%) - -------------------------------------------------------------------------------------------------------------- S&P 500 Index 21.04% N/A N/A 25.20% Sept. 2, 1997 - -------------------------------------------------------------------------------------------------------------- Accounts/Funds similar to: International Equity Fund (0.29%) - -------------------------------------------------------------------------------------------------------------- International Equity Fund of 55.83% N/A N/A 29.16% Sept. 2, 1997 TIAA-CREF Mutual Funds (0.49%) - -------------------------------------------------------------------------------------------------------------- MSCI EAFE Index 26.97% N/A N/A 18.41% Sept. 2, 1997 - -------------------------------------------------------------------------------------------------------------- Accounts/Funds similar to: Stock Index Fund (0.07%) - -------------------------------------------------------------------------------------------------------------- Stock Index Account TIAA 20.21% 26.47% N/A 24.96% Nov. 1, 1994 Separate Account VA-1 (0.37%) - -------------------------------------------------------------------------------------------------------------- Russell 3000 Index 20.90% 26.94% N/A 25.42% Nov. 1, 1994 - -------------------------------------------------------------------------------------------------------------- Equity Index Account of (0.30%) 20.82% 26.64% N/A 23.82% Apr. 29, 1994 CREF - -------------------------------------------------------------------------------------------------------------- Russell 3000 Index 20.90% 26.94% N/A 24.12% Apr. 29, 1994 - --------------------------------------------------------------------------------------------------------------
21 Pricing of Fund Shares We determine the net asset value (NAV) per share (share price) of a fund on each day the New York Stock Exchange is open for business, when trading closes on all U.S. national exchanges where securities or other investments of the fund are principally traded. We will not price fund shares on days that the New York Stock Exchange is closed. We compute the fund's NAV by dividing the value of a fund's assets, less its liabilities, by the number of outstanding shares of that fund. We usually use market quotations or independent pricing services to value securities and other instruments held by the funds. If market quotations or independent pricing services aren't readily available, we'll use a security's "fair value", as determined in good faith by or under the direction of the TIAA-CREF Life Funds' board of trustees. Money market instruments with maturities of sixty days or less are valued at amortized cost. We also may use fair value if events materially affecting the value of an investment (as determined in our sole discretion) occur between the time when its price is determined and the time the fund's net asset value is calculated. Offering, Purchasing and Redeeming Shares Shares of the TIAA-CREF Life Funds are not sold directly to you, but rather are sold in a continuous offering to TIAA-CREF Life separate accounts to fund variable annuity or other insurance contracts. Your premiums under the contracts are placed in the appropriate investment account of the separate account, and the assets of the investment account are invested in the shares of the TIAA-CREF Life Funds. The separate account purchases and redeems shares of the appropriate fund for net asset value without sales or redemption charges. For each day on which the TIAA-CREF Life Funds' net asset value is calculated, the separate account transmits to the fund any orders to purchase or redeem shares of the fund based on the purchase payments, redemption requests, death benefits, contract charges, and transfer requests from contractowners and beneficiaries that have been processed on that day. The 22 separate account purchases and redeems shares of a fund at the fund's net asset value per share calculated as of that same day. For more information about investing in the TIAA-CREF Life Funds, see the prospectus describing the contract, which can be obtained by calling us toll-free at 800 842-2733, extension 5509. Dividends, Distributions and Taxes The tax status of your investment depends upon your variable insurance contract. For a complete discussion of the tax status of your contract, please refer to the prospectus describing the contract. Shares in the funds may only be held through a variable annuity or other variable insurance contract. Under current tax law, any dividend or capital gains distributions from the fund will be exempt from current taxation if left to accumulate within your variable contract. Withdrawals from your contract may be taxed as ordinary income. You may also be subject to a 10% penalty tax if a withdrawal is made before age 59 1/2. The funds expect to declare and distribute to its shareholders (i.e., any separate accounts) substantially all of their net investment income and net realized capital gains. Normally, each of the funds will distribute dividends and capital gains annually. In addition, each fund may occasionally be required to make supplemental dividend or capital gains distributions at some other time during the year. All dividend and capital gains distributions from a fund will be automatically reinvested by the separate account in additional shares of the fund. Each fund intends to qualify for taxation as a "regulated investment company" under the Internal Revenue Code so that it will not be subject to federal income tax to the extent its 23 income and net capital gains are distributed to shareholders. In addition, the funds intend to qualify under the Internal Revenue Code with respect to the diversification requirements related to the tax-deferred status of insurance company separate accounts. General Matters Voting Rights We don't plan to hold annual shareholder meetings. However, we may hold special meetings to elect trustees, change fundamental policies, approve a management agreement, or for other purposes. Each share (including fractional shares) is entitled to one vote for each dollar of net asset value represented by that share on all matters to which shareholders are entitled to vote. You should refer to the SAI, as well as the separate prospectus describing your contract and the separate account, which accompanies this prospectus, for more information on your voting rights. Electronic Prospectuses If you received this or the contract prospectus electronically and would like paper copies, please call 800 842-2733, extension 5509, and we will send paper copies to you. Householding To lower costs and eliminate duplicate documents sent to your home, we may begin mailing only one copy of this and the contract prospectus, prospectus supplements, annual and semi-annual reports, or any other required documents, to your household, even if more than one participant lives there. If you would prefer to continue receiving your own copy of any of these documents, you may call us toll-free at 800 842-2733, extension 5509, or write us. 24 Financial Highlights Presented below is a financial highlights table for the Stock Index Fund. Since the other funds have limited operating history, we have not included financial highlights here for them, although financial statements for those funds are in the SAI, which is available free upon request. The following financial highlights table is intended to help you understand the Stock Index Fund's financial performance since it began operations. Certain information reflect financial results for a single fund share. Total returns for each period include the reinvestment of all dividends and distributions. The information has been derived from the financial statements audited by Ernst & Young LLP, independent auditors, whose report--along with the Stock Index Fund's financial statements--is included in the TIAA-CREF Life Funds' most recent annual report. It is available without charge upon request.
December 1, 1998 Year (commencement of Ended operations) to December 31, 1999 December 31, 1998(1) ------------------- --------------------- Selected Per Share Data: Net asset value, beginning of period $ 26.05 $ 25.00 Gain from investment operations: Net investment income 0.26 0.05 Net realized and unrealized gain on investments 5.26 1.05 ------- ------- Total gains from investment operations 5.52 1.10 ------- ------- Distributions: From net investment income (0.26) 0.05 From net realized gains (0.20) -- ------- ------- Total distributions (0.46) (0.05) ------- ------- Net asset value, end of period $ 31.11 $ 26.05 ======= ======= TOTAL RETURN 21.20% 4.41% RATIOS AND SUPPLEMENTAL DATA Net assets at end of period (in thousands) $54,341 $26,212 Ratio of expenses to average net assets before 0.30% 0.03% expense waiver Ratio of expenses to average net assets after 0.07% 0.01% expense waiver Ratio of net investment income to average net assets 1.28% 0.22% Portfolio turnover rate 14.22% 0.00%
(1) The percentages shown for this period are not annualized. 25 For more information about TIAA-CREF Life Funds The following documents contain more information about the funds and are available free upon request: Statement of Additional Information ("SAI"). The SAI contains more information about all aspects of the funds. A current SAI has been filed with the U.S. Securities and Exchange Commission ("SEC") and is incorporated in this prospectus by reference. Annual and Semi-Annual Reports. The TIAA-CREF Life Funds' annual and semi-annual reports provide additional information about the funds' investments. In the annual report, you will find a discussion of the market conditions and investment strategies that significantly affected each fund's performance during the last fiscal year. Requesting Documents. You can request a copy of the SAI or these reports without charge in any of the following ways: By telephone: Call 800-842-2733, extension 5509 In writing: TIAA-CREF Life Funds 730 Third Avenue New York, NY 10017-3206 Information about TIAA-CREF Life Funds (including the SAI) can be reviewed and copied at the SEC's public reference room (1-800-SEC-0330) in Washington, D.C. The reports and other information are also available through the SEC's internet website at www.sec.gov. Copies of the information can also be obtained, upon payment of a duplicating fee, by writing the SEC's Public Reference Section, Washington, D.C. 20549-0102. If you have any questions about the TIAA-CREF Life Funds or your variable contract, please call us at 800 223-1200. April 3, 2000 SEC File Nos. 333-61759, 811-08961 TIAA-CREF LIFE FUNDS Growth Equity Fund Growth & Income Fund International Equity Fund Stock Index Fund Social Choice Equity Fund STATEMENT OF ADDITIONAL INFORMATION April 3, 2000 This Statement of Additional Information (SAI) is not a prospectus, although it should be read carefully in conjunction with the TIAA-CREF Life Funds' prospectus dated April 3, 2000 (the prospectus). A copy of the prospectus may be obtained by writing us at TIAA-CREF Life Funds, 730 Third Avenue, New York, New York 10017-3206 or by calling 800 842-2733, extension 5509. Terms used in the prospectus are incorporated in this SAI. Certain financial information included in the TIAA-CREF Life Funds' annual report, including management's discussion of fund performance, is incorporated by reference into this SAI. You can request a copy of the report without charge by calling 1 800-842-2733, extension 5509. [TIAA CREF LOGO] Table of Contents
Item Page - --------------------------------------------------------------------- INVESTMENT OBJECTIVES, STRATEGIES AND RISKS ................... B-3 MANAGEMENT OF THE FUND ........................................ B-11 PRINCIPAL HOLDERS OF SECURITIES ............................... B-12 INVESTMENT ADVISORY AND OTHER SERVICES ........................ B-12 FUND HISTORY AND DESCRIPTION OF THE FUND ...................... B-13 VALUATION OF ASSETS ........................................... B-13 BROKERAGE ALLOCATION .......................................... B-14 PERFORMANCE INFORMATION ....................................... B-15 TAX STATUS .................................................... B-17 UNDERWRITERS .................................................. B-18 LEGAL MATTERS ................................................. B-18 EXPERTS ....................................................... B-18 FINANCIAL STATEMENTS .......................................... B-18 INDEX TO AUDITED FINANCIAL STATEMENTS ......................... B-19
B-2 Investment Policies, Strategies and Restrictions The following information is intended to supplement the description of the investment objective and policies of each fund in the prospectus. Under the Investment Company Act of 1940, as amended (the 1940 Act), a fund's fundamental policies may not be changed without the vote of a majority of the fund's outstanding voting securities (as defined in the 1940 Act). The non-fundamental investment restrictions contained in "Non-Principal Investment Strategies and Risk Considerations" below, may be changed by the TIAA-CREF Life Funds' board of trustees at any time. Fundamental Policies The following restrictions are fundamental policies of each fund: 1. The fund will not issue senior securities except as SEC regulations permit; 2. The fund will not borrow money, except: (a) it may purchase securities on margin, as described in restriction 8 below; and (b) from banks (only in amounts not in excess of 33 1/3% of the market value of the fund's assets at the time of borrowing), and, from other sources, for temporary purposes (only in amounts not exceeding 5%, or such greater amount as may be permitted by law, of the fund's total assets taken at market value at the time of borrowing); 3. The fund will not underwrite the securities of other companies, except to the extent that it may be deemed an underwriter in connection with the disposition of securities from its portfolio; 4. The fund will not, with respect to at least 75% of the value of its total assets, invest more than 5% of its total assets in the securities of any one issuer, other than securities issued or guaranteed by the United States Government, its agencies or instrumentalities; 5. The fund will not invest in an industry if after giving effect to that investment the fund's holding in that industry would exceed 25% of its total assets; however, this restriction does not apply to investments in obligations issued or guaranteed by the United States Government, its agencies or instrumentalities; 6. The fund will not purchase real estate or mortgages directly; 7. The fund will not purchase commodities or commodities contracts, except to the extent financial contracts (such as futures) are purchased as described herein; and 8. The fund will not purchase any security on margin except that the fund may obtain such short-term credit as may be necessary for the clearance of purchases and sales of portfolio securities). The following restriction is a fundamental policy of each fund (other than the Stock Index Fund): 9. The fund will not lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limit does not apply to repurchase agreements. The following restriction is a fundamental policy of the Stock Index Fund: 10. The fund will not make loans, except: (a) that the fund may make loans of portfolio securities not exceeding 33 1/3% of the value of its total assets, which are collateralized by either cash, United States Government securities, or other means permitted by applicable law, equal to at least the market value of the loaned securities, as reviewed daily; (b) loans through entry into repurchase agreements; (c) privately-placed debt securities may be purchased; (d) participation interests in loans, and similar investments, may be purchased; or (e) through an interfund loan program with affiliated investment companies, to the extent permitted by applicable SEC regulations. If a percentage restriction is adhered to at the time of investment, a later increase or decrease in percentage beyond the specified limit resulting from a change of values of portfolio securities will not be considered a violation. Non-Principal Investment Strategies and Risks General The funds, in addition to stocks, can hold other types of securities with equity characteristics, such as bonds convertible into common stock, warrants, preferred stock, and depository receipts for such securities. These securities are generally subject to the same types of market and financial risks that are described in the prospectus. When market conditions warrant, the funds can hold debt securities, including those that it acquires because of mergers, recapitalizations, or otherwise. For liquidity, the funds can also invest in short-term debt securities and other money-market instruments, including those denominated in foreign currencies. Fixed-income securities, including short-term debt securities and other money market instruments, are subject to interest rate risks and financial risks. Interest rate risks are the risks that the instrument's value will decline if interest rates change. A rise in interest rates usually causes the market value of fixed-rate securities to go down, while rate deductions usually result in a market value increase. Financial risks come from the possibility the issuer won't be able to pay principal and interest when due. The funds also can invest in options and futures, as well as newly developed financial instruments, such as equity swaps and B-3 equity-linked fixed-income securities, so long as these are consistent with its investment objective and regulatory requirements. These investments and other fund investment strategies are discussed in detail below. Options and Futures The funds can buy and sell options (puts and calls) and futures to the extent permitted by the New York State Insurance Department, the SEC, and the Commodity Futures Trading Commission ("CFTC"). We do not intend to use options and futures strategies in a speculative manner but rather we would use them primarily as hedging techniques or for cash management purposes. Options and futures transactions may increase a fund's transaction costs and portfolio turnover rate and will be initiated only when consistent with its investment objectives. Options. Option-related activities could include: (1) the sale of covered call option contracts, and the purchase of call option contracts for the purpose of a closing purchase transaction; (2) buying covered put option contracts, and selling put option contracts to close out a position acquired through the purchase of such options; and (3) selling call option contracts or buying put option contracts on groups of securities and on futures on groups of securities and buying similar call option contracts or selling put option contracts to close out a position acquired through a sale of such options. This list of options-related activities is not intended to be exclusive, and the funds may engage in other types of options transactions consistent with its investment objective and policies and applicable law. A call option is a short-term contract (generally for nine months or less) which gives the purchaser of the option the right to purchase the underlying security at a fixed exercise price at any time prior to the expiration of the option regardless of the market price of the security during the option period. As consideration for the call option, the purchaser pays the seller a premium, which the seller retains whether or not the option is exercised. The seller of a call option has the obligation, upon the exercise of the option by the purchaser, to sell the underlying security at the exercise price at any time during the option period. Selling a call option would benefit the seller if, over the option period, the underlying security declines in value or does not appreciate above the aggregate of the exercise price and the premium. However, the seller risks an "opportunity loss" of profits if the underlying security appreciates above the aggregate value of the exercise price and the premium. The funds may close out a position acquired through selling a call option by buying a call option on the same security with the same exercise price and expiration date as the call option that it had previously sold on that security. Depending on the premium for the call option purchased by a fund, the fund will realize a profit or loss on the transaction. A put option is a similar short-term contract that gives the purchaser of the option the right to sell the underlying security at a fixed exercise price at any time prior to the expiration of the option regardless of the market price of the security during the option period. As consideration for the put option the purchaser pays the seller a premium, which the seller retains whether or not the option is exercised. The seller of a put option has the obligation, upon the exercise of the option by the purchaser, to purchase the underlying security at the exercise price at any time during the option period. The buying of a covered put contract limits the downside exposure for the investment in the underlying security to the combination of the exercise price less the premium paid. The risk of purchasing a put is that the market price of the underlying stock prevailing on the expiration date may be above the option's exercise price. In that case the option would expire worthless and the entire premium would be lost. The funds may close out a position acquired through buying a put option by selling a put option on the same security with the same exercise price and expiration date as the put option which it had previously bought on the security. Depending on the premium of the put option sold by a fund, the fund would realize a profit or loss on the transaction. In addition to options (both calls and puts) on individual securities, there are also options on groups of securities, such as the Standard & Poor's 100 Index traded on the Chicago Board Options Exchange. There are also options on the futures of groups of securities such as the Standard & Poor's 500 Stock Index and the New York Stock Exchange Composite Index. The selling of such calls can be used in anticipation of, or in, a general market or market sector decline that may adversely affect the market value of a fund's portfolio of securities. To the extent that a fund's portfolio of securities changes in value in correlation with a given stock index, the sale of call options on the futures of that index would substantially reduce the risk to the portfolio of a market decline, and, by so doing, provides an alternative to the liquidation of securities positions in the portfolio with resultant transaction costs. A risk in all options, particularly the relatively new options on groups of securities and on the futures on groups of securities, is a possible lack of liquidity. This will be a major consideration before the fund deals in any option. There is another risk in connection with selling a call option on a group of securities or on the futures of groups of securities. This arises because of the imperfect correlation between movements in the price of the call option on a particular group of securities and the price of the underlying securities held in the portfolio. Unlike a covered call on an individual security, where a large movement on the upside for the call option will be offset by a similar move on the underlying stock, a move in the price of a call option on a group of securities may not be offset by a similar move in the price of securities held due to the difference in the composition of the particular group and the portfolio itself. B-4 Futures. To the extent permitted by applicable regulatory authorities, the funds may purchase and sell futures contracts on securities or other instruments, or on groups or indexes of securities or other instruments. The purpose of hedging techniques using financial futures is to protect the principal value of the fund against adverse changes in the market value of securities or instruments in its portfolio, and to obtain better returns on future investments than actually may be available at the future time. Since these are hedging techniques, the gains or losses on the futures contract normally will be offset by losses or gains respectively on the hedged investment. Futures contracts also may be offset prior to the future date by executing an opposite futures contract transaction. A futures contract on an investment is a binding contractual commitment which, if held to maturity, will result in an obligation to make or accept delivery, during a particular future month, of the securities or instrument underlying the contract. By purchasing a futures contract--assuming a "long" position--a fund legally will obligate itself to accept the future delivery of the underlying security or instrument and pay the agreed price. By selling a futures contract--assuming a "short" position--it legally will obligate itself to make the future delivery of the security or instrument against payment of the agreed price. Positions taken in the futures markets are not normally held to maturity, but are instead liquidated through offsetting transactions which may result in a profit or a loss. While futures positions taken by the funds usually will be liquidated in this manner, the funds may instead make or take delivery of the underlying securities or instruments whenever it appears economically advantageous to a fund to do so. A clearing corporation associated with the exchange on which futures are traded assumes responsibility for closing out positions and guarantees that the sale and purchase obligations will be performed with regard to all positions that remain open at the termination of the contract. A stock index futures contract, unlike a contract on a specific security, does not provide for the physical delivery of securities, but merely provides for profits and losses resulting from changes in the market value of the contract to be credited or debited at the close of each trading day to the respective accounts of the parties to the contract. On the contract's expiration date, a final cash settlement occurs and the futures positions are closed out. Changes in the market value of a particular stock index futures contract reflect changes in the specified index of equity securities on which the future is based. Stock index futures may be used to hedge the equity investments of the funds with regard to market (systematic) risk (involving the market's assessment of overall economic prospects), as distinguished from stock specific risk (involving the market's evaluation of the merits of the issuer of a particular security). By establishing an appropriate "short" position in stock index futures, the funds may seek to protect the value of its securities portfolio against an overall decline in the market for equity securities. Alternatively, in anticipation of a generally rising market, the funds can seek to avoid losing the benefit of apparently low current prices by establishing a "long" position in stock index futures and later liquidating that position as particular equity securities are in fact acquired. To the extent that these hedging strategies are successful, the funds will be affected to a lesser degree by adverse overall market price movements, unrelated to the merits of specific portfolio equity securities, than would otherwise be the case. Unlike the purchase or sale of a security, no price is paid or received by the funds upon the purchase or sale of a futures contract. Initially, the funds will be required to deposit in a custodial account an amount of cash, United States Treasury securities, or other permissible assets equal to approximately 5% of the contract amount. This amount is known as "initial margin." The nature of initial margin in futures transactions is different from that of margin in security transactions in that futures contract margin does not involve the borrowing of funds by the customer to finance the transactions. Rather, the initial margin is in the nature of a performance bond or good faith deposit on the contract which is returned to a fund upon termination of the futures contract assuming all contractual obligations have been satisfied. Subsequent payments to and from the broker, called "variation margin," will be made on a daily basis as the price of the underlying stock index fluctuates making the long and short positions in the futures contract more or less valuable, a process known as "marking to the market." For example, when a fund has purchased a stock index futures contract and the price of the underlying stock index has risen, that position will have increased in value, and the fund will receive from the broker a variation margin payment equal to that increase in value. Conversely, where a fund has purchased a stock index futures contract and the price of the underlying stock index has declined, the position would be less valuable and the fund would be required to make a variation margin payment to the broker. At any time prior to expiration of the futures contract, a fund may elect to close the position by taking an opposite position which will operate to terminate the fund's position in the futures contract. A final determination of variation margin is then made, additional cash is required to be paid by or released to the fund, and the fund realizes a loss or a gain. There are several risks in connection with the use of a futures contract as a hedging device. One risk arises because of the imperfect correlation between movements in the prices of the futures contracts and movements in the securities or instruments which are the subject of the hedge. The funds will attempt to reduce this risk by engaging in futures transactions, to the extent possible, where, in our judgment, there is a significant correlation between changes in the prices of the futures contracts and the prices of the fund's portfolio securities or instruments sought to be hedged. Successful use of futures contracts for hedging purposes also is subject to the user's ability to predict correctly movements in the direction of the market. For example, it is possible that, where a B-5 fund has sold futures to hedge its portfolio against declines in the market, the index on which the futures are written may advance and the values of securities or instruments held in the fund's portfolio may decline. If this occurred, the fund would lose money on the futures and also experience a decline in value in its portfolio investments. However, we believe that over time the value of a fund's portfolio will tend to move in the same direction as the market indices which are intended to correlate to the price movements of the portfolio securities or instruments sought to be hedged. It also is possible that, for example, if a fund has hedged against the possibility of the decline in the market adversely affecting stocks held in its portfolio and stock prices increased instead, the fund will lose part or all of the benefit of increased value of those stocks that it has hedged because it will have offsetting losses in its futures positions. In addition, in such situations, if a fund has insufficient cash, it may have to sell securities or instruments to meet daily variation margin requirements. Such sales may be, but will not necessarily be, at increased prices which reflect the rising market. The fund may have to sell securities or instruments at a time when it may be disadvantageous to do so. In addition to the possibility that there may be an imperfect correlation, or no correlation at all, between movements in the futures contracts and the portion of the portfolio being hedged, the prices of futures contracts may not correlate perfectly with movements in the underlying security or instrument due to certain market distortions. First, all transactions in the futures market are subject to margin deposit and maintenance requirements. Rather than meeting additional margin deposit requirements, investors may close futures contracts through offsetting transactions which could distort the normal relationship between the index and futures markets. Second, the margin requirements in the futures market are less onerous than margin requirements in the securities market, and as a result the futures market may attract more speculators than the securities market does. Increased participation by speculators in the futures market also may cause temporary price distortions. Due to the possibility of price distortion in the futures market and also because of the imperfect correlation between movements in the futures contracts and the portion of the portfolio being hedged, even a correct forecast of general market trends by Advisors, the investment advisor for each of the funds, still may not result in a successful hedging transaction over a very short time period. The funds may also use futures contracts and options on futures contracts to manage its cash flow more effectively. To the extent that the funds enter into non-hedging positions, it will do so only in accordance with certain CFTC exemptive provisions. Thus, pursuant to CFTC Rule 4.5, the aggregate initial margin and premiums required to establish non-hedging positions in commodity futures or commodity options contracts may not exceed 5% of the liquidation value of the fund's portfolio, after-taking into account unrealized profits and unrealized losses on any such contracts it has entered into (provided that the in-the-money amount of an option that is in-the-money when purchased may be excluded in computing such 5%). Firm Commitment Agreements and Purchase of "When-Issued" Securities The funds can enter into firm commitment agreements for the purchase of securities on a specified future date. We expect that these transactions will be relatively infrequent. When a fund enters into a firm commitment agreement, liability for the purchase price--and the rights and risks of ownership of the securities--accrues to the fund at the time it becomes obligated to purchase such securities, although delivery and payment occur at a later date. Accordingly, if the market price of the security should decline, the effect of the agreement would be to obligate the fund to purchase the security at a price above the current market price on the date of delivery and payment. During the time a fund is obligated to purchase such securities, it will be required to segregate assets. See "Segregated Accounts," below. Securities Lending Subject to the funds' fundamental investment policies relating to loans of portfolio securities set forth above, the funds may lend its securities to brokers and dealers that are not affiliated with TIAA-CREF Life Insurance Company, are registered with the SEC and are members of the NASD, and also to certain other financial institutions. All loans will be fully collateralized. In connection with the lending of its securities, the fund will receive as collateral cash, securities issued or guaranteed by the United States Government (i.e., Treasury securities), or other collateral permitted by applicable law, which at all times while the loan is outstanding will be maintained in amounts equal to at least 102% of the current market value of the loaned securities, or such lesser percentage as may be permitted by the Securities and Exchange Commission (SEC) (not to fall below 100% of the market value of the loaned securities), as reviewed daily. By lending its securities, the funds will receive amounts equal to the interest or dividends paid on the securities loaned and in addition will expect to receive a portion of the income generated by the short-term investment of cash received as collateral or, alternatively, where securities or a letter of credit are used as collateral, a lending fee paid directly to the fund by the borrower of the securities. Such loans will be terminable by the fund at any time and will not be made to affiliates of TIAA. The funds may terminate a loan of securities in order to regain record ownership of, and to exercise beneficial rights related to, the loaned securities, including but not necessarily limited to voting or subscription rights, and may, in the exercise of its fiduciary duties, terminate a loan in the event that a vote of holders of those securities is required on a material matter. The funds may pay reasonable fees to persons unaffiliated with the fund for services or for arranging such loans. Loans of securities will be made only to firms deemed creditworthy. As with any extension of credit, however, there are risks of delay in recovering the loaned securities, or in liquidating collateral, should the borrower of securities default, become the subject of bankruptcy proceedings, or otherwise be unable to fulfill its obligations or fail financially. Borrowing and Lending Among Affiliates At some time in the future, the funds may establish a facility for borrowing and lending money among themselves as well as with B-6 TIAA or other registered investment companies managed by Advisors or Investment Management. If a fund borrows money, it could leverage its portfolio by keeping securities it might otherwise have had to sell. Leveraging exposes a fund to special risks, including greater fluctuations in net asset value in response to market changes. Preferred Stock The funds can invest in preferred stock consistent with their investment objectives. Illiquid Securities The funds can invest up to 15% of their assets in investments that may not be readily marketable. It may be difficult to sell these investments for their fair market value. Repurchase Agreements Repurchase agreements are one of several short-term vehicles the funds can use to manage cash balances effectively. In a repurchase agreement, we buy an underlying debt instrument on condition that the seller agrees to buy it back at a fixed time (usually a relatively short period) and price. The period from purchase to repurchase is usually no more than a week and never more than a year. Repurchase agreements have the characteristics of loans, and will be fully collateralized (either with physical securities or evidence of book entry transfer to the account of the custodian bank) at all times. During the term of the repurchase agreement, a fund retains the security subject to the repurchase agreement as collateral securing the seller's repurchase obligation, continually monitors the market value of the security subject to the agreement, and requires the fund's seller to deposit with the fund additional collateral equal to any amount by which the market value of the security subject to the repurchase agreement falls below the resale amount provided under the repurchase agreement. The funds will enter into repurchase agreements only with member banks of the Federal Reserve System, and with primary dealers in United States Government securities or their wholly-owned subsidiaries whose creditworthiness has been reviewed and found satisfactory by Advisors and who have, therefore, been determined to present minimal credit risk. Securities underlying repurchase agreements will be limited to certificates of deposit, commercial paper, bankers' acceptances, or obligations issued or guaranteed by the United States Government or its agencies or instrumentalities, in which the fund entering into the agreement may otherwise invest. If a seller of a repurchase agreement defaults and does not repurchase the security subject to the agreement, the fund entering into the agreement would look to the collateral security underlying the seller's repurchase agreement, including the securities subject to the repurchase agreement, for satisfaction of the seller's obligation to the fund; in such event the fund might incur disposition costs in liquidating the collateral and might suffer a loss if the value of the collateral declines. In addition, if bankruptcy proceedings are instituted against a seller of a repurchase agreement, realization upon the collateral may be delayed or limited. Swap Transactions The funds may, to the extent permitted by the SEC, enter into privately negotiated "swap" transactions with other financial institutions in order to take advantage of investment opportunities generally not available in public markets. In general, these transactions involve "swapping" a return based on certain securities, instruments, or financial indices with another party, such as a commercial bank, in exchange for a return based on different securities, instruments, or financial indices. By entering into a swap transaction, the funds may be able to protect the value of a portion of its portfolio against declines in market value. The funds may also enter into swap transactions to facilitate implementation of allocation strategies between different market segments or countries or to take advantage of market opportunities which may arise from time to time. A fund may be able to enhance its overall performance if the return offered by the other party to the swap transaction exceeds the return swapped by the fund. However, there can be no assurance that the return the fund receives from the counterparty to the swap transaction will exceed the return it swaps to that party. While the funds will only enter into swap transactions with counterparties considered creditworthy (and will monitor the creditworthiness of parties with which it enters into swap transactions), a risk inherent in swap transactions is that the other party to the transaction may default on its obligations under the swap agreement. If the other party to the swap transaction defaults on its obligations, the fund entering into the agreement would be limited to the agreement's contractual remedies. There can be no assurance that the fund will succeed when pursuing its contractual remedies. To minimize a fund's exposure in the event of default, it will usually enter into swap transactions on a net basis (i.e., the parties to the transaction will net the payments payable to each other before such payments are made). When a fund enters into swap transactions on a net basis, the net amount of the excess, if any, of the fund's obligations over its entitlements with respect to each such swap agreement will be accrued on a daily basis and an amount of liquid assets having an aggregate market value at least equal to the accrued excess will be segregated by the fund's custodian. To the extent a fund enters into swap transactions other than on a net basis, the amount segregated will be the full amount of the fund's obligations, if any, with respect to each such swap agreement, accrued on a daily basis. See "Segregated Accounts," below. Swap agreements may be considered illiquid by the SEC staff and subject to the limitations on illiquid investments. See "Illiquid Securities" above. B-7 To the extent that there is an imperfect correlation between a fund's obligation to its counterparty under the swap and the return on related assets in its portfolio, the swap transaction may increase a fund's financial risk. No fund therefore will enter into a swap transaction unless it owns or has the right to acquire the securities or instruments representative of the return it is obligated to swap with the counterparty to the swap transaction. It is not the intention of any fund to engage in swap transactions in a speculative manner but rather primarily to hedge or manage the risks associated with assets held in, or to facilitate the implementation of portfolio strategies of purchasing and selling assets for, the fund. Segregated Accounts In connection with when-issued securities, firm commitment agreements, and certain other transactions in which any of the funds incur an obligation to make payments in the future, the fund involved may be required to segregate assets with its custodian bank in amounts sufficient to settle the transaction. To the extent required, such segregated assets can consist of liquid assets, including equity or other securities, or other instruments such as cash, United States Government securities or other obligations as may be permitted by law. Investment Companies Each fund can invest up to 10% of its assets in other investment companies. Borrowing Each fund can borrow money from banks (no more than 33 1/3% of the market value of its assets at the time of borrowing), rather than through the sale of portfolio securities, when such borrowing appears more attractive for the fund. Each can also borrow money from other sources temporarily (no more than 5% of the total market value of its assets at the time of borrowing), when, for example, the fund needs to meet liquidity requirements caused by greater than anticipated redemptions. See "Fundamental Policies" above. Currency Transactions The value of a fund's assets as measured in United States dollars may be affected favorably or unfavorably by changes in foreign currency exchange rates and exchange control regulations, and the fund may incur costs in connection with conversions between various currencies. To minimize the impact of such factors on net asset values, the fund may engage in foreign currency transactions in connection with their investments in foreign securities. The funds will not speculate in foreign currency exchange, and will enter into foreign currency transactions only to "hedge" the currency risk associated with investing in foreign securities. Although such transactions tend to minimize the risk of loss due to a decline in the value of the hedged currency, they also may limit any potential gain which might result should the value of such currency increase. The funds will conduct their currency exchange transactions either on a spot (i.e., cash) basis at the rate prevailing in the currency exchange market, or through forward contracts to purchase or sell foreign currencies. A forward currency contract involves an obligation to purchase or sell a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. These contracts are entered into with large commercial banks or other currency traders who are participants in the interbank market. By entering into a forward contract for the purchase or sale of foreign currency involved in underlying security transactions, a fund is able to protect itself against possible loss between trade and settlement dates for that purchase or sale resulting from an adverse change in the relationship between the U.S. dollar and such foreign currency. This practice is sometimes referred to as "transaction hedging." In addition, when it appears that a particular foreign currency may suffer a substantial decline against the U.S. dollar, a fund may enter into a forward contract to sell an amount of foreign currency approximating the value of some or all of its portfolio securities denominated in such foreign currency. This practice is sometimes referred to as "portfolio hedging." Similarly, when it appears that the U.S. dollar may suffer a substantial decline against a foreign currency, a fund may enter into a forward contract to buy that foreign currency for a fixed dollar amount. The funds may also hedge their foreign currency exchange rate risk by engaging in currency financial futures, options and "cross-hedge" transactions. In "cross-hedge" transactions, a fund holding securities denominated in one foreign currency will enter into a forward currency contract to buy or sell a different foreign currency (one that generally tracks the currency being hedged with regard to price movements). Such cross-hedges are expected to help protect a fund against an increase or decrease in the value of the U.S. dollar against certain foreign currencies. The funds may hold a portion of their respective assets in bank deposits denominated in foreign currencies, so as to facilitate investment in foreign securities as well as protect against currency fluctuations and the need to convert such assets into U.S. dollars (thereby also reducing transaction costs). To the extent these monies are converted back into U.S. dollars, the value of the assets so maintained will be affected favorably or unfavorably by changes in foreign currency exchange rates and exchange control regulations. The forecasting of short-term currency market movement is extremely difficult and whether a short-term hedging strategy will be successful is highly uncertain. Moreover, it is impossible to forecast with absolute precision the market value of portfolio securities at the expiration of a foreign currency forward contract. Accordingly, a fund may be required to buy or sell additional currency on the spot market (and bear the expense of such transaction) if its predictions regarding the movement of foreign currency or securities markets prove inaccurate. In addition, the use of cross-hedging transactions may involve special risks, and may leave a fund in a B-8 less advantageous position than if such a hedge had not been established. Because foreign currency forward contracts are privately negotiated transactions, there can be no assurance that a fund will have flexibility to roll-over the foreign currency forward contract upon its expiration if it desires to do so. Additionally, there can be no assurance that the other party to the contract will perform its obligations thereunder. There is no express limitation on the percentage of a fund's assets that may be committed to foreign currency exchange contracts. A fund will not enter into foreign currency forward contracts or maintain a net exposure in such contracts where that fund would be obligated to deliver an amount of foreign currency in excess of the value of that fund's portfolio securities or other assets denominated in that currency or, in the case of a cross-hedge transaction, denominated in a currency or currencies that fund's investment adviser believes will correlate closely to the currency's price movements. The funds generally will not enter into forward contracts with terms longer than one year. Foreign Investments As described more fully in the prospectus, certain funds may invest in foreign securities, including those in emerging markets. In addition to the general risk factors discussed in the Prospectus, there are a number of country- or region-specific risks and other considerations that may affect these investments. Investment in Europe. The total European market (consisting of the European Union, the European Free Trade Association and Eastern European countries) contains over 450 million consumers, a market larger than either the United States or Japan. European businesses compete both intra-regionally and globally in a wide range of industries, and recent political and economic changes throughout Europe are likely further to expand the role of Europe in the global economy. As a result, a great deal of interest and activity has been generated aimed at understanding and benefiting from the "new" Europe that may result. The incipient aspects of major developments in Europe as well as other considerations means that there can be no guarantee that outcomes will be as anticipated or will have results that investors would regard as favorable. The European Union. The European Union ("EU") consists of Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, and the United Kingdom (the "EU Nations"), with a total population exceeding 370 million. The EU Nations have undertaken to establish, among themselves, a single market that is largely free of internal barriers and hindrances to the free movement of goods, persons, services and capital. Although it is difficult to predict when this goal will be fully realized, macro- and micro-economic adjustments already in train are indicative of significant increases in efficiency and the ability of the EU Nations to compete globally by simplifying product distribution networks, promoting economies of scale, and increasing labor mobility, among other effects. The establishment of the eleven-country European Monetary Union, a subset of the European Union countries, with its own central bank, the European Central Bank; its own currency, the Euro; and a single interest rate structure, represents a new economic entity, the Euro-area. While authority for monetary policy thus shifts from national hands to an independent supranational body, sovereignty elsewhere remains largely at the national level. Uncertainties with regard to balancing of monetary policy against national fiscal and other political issues and their extensive ramifications represent important risk considerations for investors in these countries. Investment in the Pacific Basin. The economies of the Pacific Basin vary widely in their stages of economic development. Some (such as Japan, Australia, Singapore, and Hong Kong) are considered advanced by Western standards; others (such as Thailand, Indonesia, and Malaysia) are considered "emerging"--rapidly shifting from natural resource- and agriculture-based systems to more technologically advanced systems oriented toward manufacturing and services. The major reform of China's economy and polity continues to be an important influence on economic growth internally, and, through trade, across the region. Intra-regional trade has become increasingly important to a number of these economies. Japan, the second largest economy in the world, is the dominant economy in the Pacific Basin, with one of the highest per capita incomes in the world. Its extensive trade relationships also contribute to expectations for regional and global economic growth. Economic growth has historically been relatively strong in the region, but recent economic turmoil among the emerging economies, and unmitigated recessionary impulses in Japan, in the recent past have raised important questions with regard to prospective longer-term outcomes. Potential policy miscalculations or other events could pose important risks to equity investors in any of these economies. Investment in Canada. Canada, a country rich in natural resources and a leading industrial country of the world, is by far the most important trading partner of the United States. The U.S., Canada, and Mexico have established the North American Free Trade Agreement ("NAFTA"), which is expected to significantly benefit the economies of each of the countries through the more rational allocation of resources and production over the region. Uncertainty regarding the longer-run political structure of Canada is an added risk to investors, along with highly volatile commodity prices. Investment in Latin America. Latin America (including Mexico and Central America) has a population of approximately 455 million and is rich in natural resources. Important gains in the manufacturing sector have developed in several of the major countries in the region. A number of countries in the region have taken steps to reduce impediments to trade, most notably through the NAFTA agreement between the U.S., Canada and Mexico and the Mercosur agreement between Argentina, Brazil, Paraguay and Uruguay, with Chile as an associate member. Restrictions on international capital flows, intermittent problems with capital flight, and some potential difficulties in the repayment of external debt, B-9 however, remain important concerns in the region--exacerbating the risks in these equity markets. As a result, Latin American equity markets have been extremely volatile. Efforts to restructure these economies through privatization and fiscal and monetary reform have been met with some success, with gains in output growth and slowing rates of inflation. These efforts may result in attractive investment opportunities. However, recent events have shown that large shifts in sentiment in markets elsewhere on the globe may very quickly reverberate among these markets, adding greater risk to already volatile markets. There can be no assurance that attempted reforms will ultimately be successful or will bring about results investors would regard as favorable. Other Regions. There are developments in other regions and countries around the world which could lead to additional investment opportunities. We will monitor these developments and may invest when appropriate. Depository Receipts. The funds can invest in American, European and Global Depository Receipts ("ADRs," "EDRs" and "GDRs"). They are alternatives to the purchase of the underlying securities in their national markets and currencies. Although their prices are quoted in U.S. dollars, they don't eliminate all the risks of foreign investing. ADRs represent the right to receive securities of foreign issuers deposited in a domestic bank or a foreign correspondent bank. To the extent that a fund acquires ADRs through banks which do not have a contractual relationship with the foreign issuer of the security underlying the ADR to issue and service such ADRs, there may be an increased possibility that the fund would not become aware of and be able to respond to corporate actions such as stock splits or rights offerings involving the foreign issuer in a timely manner. In addition, the lack of information may result in inefficiencies in the valuation of such instruments. However, by investing in ADRs rather than directly in the stock of foreign issuers, a fund will avoid currency risks during the settlement period for either purchases or sales. In general, there is a large, liquid market in the U.S. for ADRs quoted on a national securities exchange or the NASD's national market system. The information available for ADRs is subject to the accounting, auditing and financial reporting standards of the domestic market or exchange on which they are traded, which standards are more uniform and more exacting than those to which many foreign issuers may be subject. EDRs and GDRs are receipts evidencing an arrangement with a non-U.S. bank similar to that for ADRs and are designed for use in non-U.S. securities markets. EDRs and GDRs are not necessarily quoted in the same currency as the underlying security. Other Investment Techniques and Opportunities The funds may take certain actions with respect to merger proposals, tender offers, conversion of equity-related securities and other investment opportunities with the objective of enhancing the portfolio's overall return, regardless of how these actions may affect the weight of the particular securities in the fund's portfolio. It is not our policy to select investments based primarily on the possibility of one or more of these investment techniques and opportunities being presented. Portfolio Turnover The transactions a fund engages in are reflected in its portfolio turnover rate. The rate of portfolio turnover is calculated by dividing the lesser of the amount of purchases or sales of portfolio securities during the fiscal year by the monthly average of the value of the fund's portfolio securities (excluding from the computation all securities, including options, with maturities at the time of acquisition of one year or less). A high rate of portfolio turnover generally involves correspondingly greater brokerage commission expenses, which must be borne directly by the fund and ultimately by the fund's shareholders. However, because portfolio turnover is not a limiting factor in determining whether or not to sell portfolio securities, a particular investment may be sold at any time, if investment judgment or account operations make a sale advisable. The funds do not have fixed policies on portfolio turnover although, because a higher portfolio turnover rate will increase brokerage costs, Advisors will carefully weigh the added costs of short term investment against the gains anticipated from such transactions. B-10 Management of the Fund The Board A board of trustees (the Board) oversees the TIAA-CREF Life Funds' business affairs and is responsible for major decisions about its investment objective and policies. The Board delegates the day-to-day management of the fund to Advisors and its officers (see below). The Board meets periodically to review the fund's activities, contractual arrangements with companies that provide services to the fund, and the performance of the investment portfolio. Trustees and Officers of the TIAA-CREF Life Funds
Position(s) Held with Principal Occupation(s) Name and Address* Age Registrant During Past 5 Years - --------------------------- ----- ---------------- ----------------------------------------------------------------------- Laurence W. Franz 60 Trustee Vice President, Business and Finance, and Treasurer, Canisius College Canisius College 2001 Main Street Buffalo, New York 14208 Jeanmarie C. Grisi 41 Trustee Senior Manager, Pension Administration, Lucent Technologies Inc.; Lucent Technologies Inc. formerly, Treasurer, Carnegie Corporation of New York 600 Mountain Avenue-7F-523 Murray Hill, NJ 07974 Richard M. Norman 55 Trustee Vice President for Finance and Business Services and Treasurer, Miami Miami University University; formerly, Vice President for Administration and Associate 274 McGuffey Hall Treasurer, Rutgers, The State University of New Jersey Oxford, OH 45056-1846 John J. McCormack** 55 Trustee and Executive Vice President, TIAA and CREF, since November 1983 and Executive Vice President, TIAA-CREF Enterprises, Inc., since June 1998 President Martin E. Galt III** 58 President Executive Vice President, TIAA and CREF, since February 2000; formerly President, Institutional Investment Management Division of Asset Management Group (September 1997--February 2000) and Principal Investment Officer, Bank of America (September 1997--September 1998) and Chairman and Chief Executive Officer, Boatman's Trust Company (May 1995--September 1997) Richard L. Gibbs 53 Executive Vice Executive Vice President, TIAA, CREF, TIAA-CREF Investment Management, President LLC ("Investment Management") and TIAA-CREF Individual & Institutional Services, Inc. ("Services"), since 1993 Peter C. Clapman 64 Senior Vice Senior Vice President and Chief Counsel, Investments, TIAA and CREF President, Secretary and Chief Counsel, Investments Richard J. Adamski 58 Vice President Vice President and Treasurer, Investment Management and Services, and Treasurer since January 1992 and TPIS, since 1994, and Vice President and Treasurer, TIAA and CREF
- ----------- * The address for all officers of the TIAA-CREF Life Funds is 730 Third Avenue, New York, New York 10017-3206. ** This Trustee is or may be an "interested person" within the meaning of the Investment Company Act of 1940. B-11 Compensation of Trustees Trustees who are not active officers of Teachers Insurance and Annuity Association (TIAA) each receive a total of $5,000 per year, plus $1,000 for each meeting of the board of trustees attended, for their service to both the TIAA-CREF Life Funds and TIAA Separate Account VA-1 (the "Fund Complex"). Compensation is allocated between the companies in the Fund Complex based on assets. Trustees who are active officers of TIAA do not receive any additional compensation for their services as trustees. (See "Advisors and TIAA" below). The following table sets forth the compensation paid to the TIAA-CREF Life Funds' trustees for the year ended December 31, 1999:
(2) (4) (5) Aggregate (3) Estimated Total (1) Compensation Pension or Retirement Annual Compensation Name of Person, From TIAA-CREF Benefits Accrued As Benefits Upon From Position Life Funds Part of Fund Expenses Retirement Fund Complex* - --------------------- ---------------- ----------------------- --------------- -------------- Laurence W. Franz, $296.10 $-0- $-0- $8,000 Trustee Jeanmarie C. Grisi, $259.09 $-0- $-0- $7,000 Trustee Richard M. Norman, $296.10 $-0- $-0- $8,000 Trustee
- ------------------------ * For purposes of this information, the Fund Complex consists of the College Retirement Equities Fund, TIAA-CREF Mutual Funds, TIAA-CREF Institutional Mutual Funds, TIAA-CREF Life Funds and TIAA Separate Account VA-1. Principal Holders of Securities Teachers Insurance and Annuity Association (TIAA), as the contributor of the initial capital for each of the funds, owned the following percentages of the shares of each fund as of March 13, 2000: Growth Equity 99.80% Growth & Income 99.80% International Equity 99.80% Stock Index 52.17% Social Choice Equity 99.60%
The TIAA-CREF Life Separate Account VA-1, funding the Personal Annuity Select contracts, owns the balance of the outstanding shares. Investment Advisory and Other Services Investment Advisory Services As explained in the prospectus, investment advisory services and related services for the TIAA-CREF Life Funds are provided by personnel of Advisors, which is registered under the Investment Advisers Act of 1940. Advisors manages the investment and reinvestment of the assets of the TIAA-CREF Life Funds, subject to the direction and control of the TIAA-CREF Life Funds' board of trustees. Advisors' will perform all research, make recommendations, and place orders for the purchase and sale of securities. Advisors also provides for portfolio accounting, custodial, and related services for the assets of the Stock Index Fund. Advisory fees are payable monthly to Advisors. They are calculated as a percentage of the average value of the net assets each day for each fund, and are accrued daily proportionately at 1/365th (1/366th in a leap year) of the rates set forth in the prospectus. For 1999, the total dollar amount of investment management expenses for the Stock Index Fund attributable to advisory fees, before and after Advisors' waiver of a portion of its fees, was $101,980 gross expenses, $78,185 waived expenses and $23,795 net expenses. Personal Trading Policy. TIAA-CREF Life Funds and Advisors have adopted a personal trading policy under Rule 17j-1 of the Investment Company Act of 1940. Under the policy, personnel of Advisors and members of their households are limited in trading for their own accounts. The policy generally requires these individuals to preclear and report all their securities transactions including transactions in securities that are held or purchased by the TIAA-CREF Life Funds. The policy can be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-202-942-8090. The policy is also available on the EDGAR Database on the SEC's Internet site at http:// www.sec.gov. Copies of the policy may be obtained, after paying a duplication fee, by electronic request at the following e-mail address: publicinfo@sec.gov, or by writing the SEC's Public Reference Section, Washington, D.C. 20549-0102. Advisors and TIAA Advisors is a wholly-owned indirect subsidiary of TIAA. The main offices of both TIAA and Advisors are at 730 Third Avenue, New York, New York 10017-3206. TIAA is a stock life insurance company, organized under the laws of New York State. It was founded on March 4, 1918, by the Carnegie Foundation for the Advancement of Teaching. TIAA is the companion organization of the College Retirement Equities Fund (CREF), the first company in the United States to issue a variable annuity. Together, TIAA and CREF B-12 form the principal retirement system for the nation's education and research communities and one of the largest retirement systems in the world, based on assets under management. TIAA-CREF serves approximately 2.2 million people. As of December 31, 1999, TIAA's assets were approximately $110 billion; the combined assets for TIAA and CREF totalled approximately $288 billion. TIAA owns all of the shares of TIAA-CREF Enterprises, Inc., which in turn owns all the shares of Advisors, TIAA-CREF Life Insurance Company, and Teachers Personal Investors Services, Inc., the principal underwriter for the TIAA-CREF Life Funds and the TIAA-CREF Life Insurance Company variable annuity contracts funded by the TIAA-CREF Life Funds. TIAA also holds all the shares of TIAA-CREF Investment Management, LLC ("Investment Management"). Investment Management provides investment advisory services to the College Retirement Equities Fund, TIAA's companion organization. All of the foregoing are affiliates of the TIAA-CREF Life Funds and Advisors. Custodian Under the terms of a contract with Advisors, State Street Bank & Trust Company ("State Street"), 225 Franklin Street, Boston, MA 02209 acts as custodian for the TIAA-CREF Life Funds. Advisors has agreed to pay State Street for these services. Administrative Services Advisors has retained State Street to provide the TIAA-CREF Life Funds with certain administrative services, including preparation of each fund's federal, state and local tax returns, preparation of fund financial information, and various other administrative services. Advisors, not the TIAA-CREF Life Funds, has agreed to pay State Street a fee for such services. Auditors The financial statements of TIAA-CREF Life Funds are audited by Ernst & Young LLP. The principal business address of Ernst & Young LLP is 787 Seventh Avenue, New York, New York 10019. Fund History and Description of the Fund TIAA-CREF Life Funds is a Delaware business trust organized on August 13, 1998, and is registered with the U.S. Securities and Exchange Commission (SEC) as a diversified "open-end" management investment company. It currently has five investment portfolios (funds). As a Delaware business trust, the fund's operations are governed by its Declaration of Trust dated August 13, 1998, as amended (the Declaration). A copy of the fund's Certificate of Trust, dated August 13, 1998, is on file with the Office of the Secretary of State of the State of Delaware. Shareholders Meetings and Voting Rights Under the Declaration, the TIAA-CREF Life Funds are not required to hold annual meetings to elect Trustees or for other purposes, and therefore, we do not anticipate that the fund will hold shareholders' meetings unless required by law. The TIAA-CREF Life Funds will be required to hold a meeting to elect Trustees to fill any existing vacancies on the Board if, at any time, fewer than a majority of the Trustees have been elected by the shareholders of the TIAA-CREF Life Funds. With regard to matters for which the Investment Company Act of 1940 requires a shareholder vote, the separate account which issues the variable contracts funded by the TIAA-CREF Life Funds, as the legal owner of the TIAA-CREF Life Funds shares, typically votes fund shares in accordance with instructions received from contractowners (or annuitants or beneficiaries thereunder) having a voting interest in the separate account. Shares held by the separate account for which no instructions are received are generally voted by the separate account for or against any proposition, or in abstention, in the same proportion as the shares for which instructions have been received. You should refer to the separate prospectus, which accompanies this prospectus, describing your contract and the separate account, for more information on your voting rights. Shares The fund is authorized to issue an unlimited number of shares of beneficial interest in the fund, all without par value. Shares are divided into and may be issued in a designated series representing beneficial interests in one of the fund's investment portfolios. There is currently five series of shares and five investment portfolios. Each share of a series issued and outstanding is entitled to participate equally in dividends and distributions declared by such series and, upon liquidation or dissolution, in net assets allocated to such series remaining after satisfaction of outstanding liabilities. The shares of each series, when issued, will be fully paid and non-assessable and have no preemptive or conversion rights. Each share (including fractional shares) is entitled to one vote for each dollar of net asset value represented by the share on all matters to which the holder of that share is entitled to vote. The shares do not have cumulative voting rights. Additional Portfolios The TIAA-CREF Life Funds currently consists of five investment portfolios, or funds. Pursuant to the Declaration, the Trustees may establish additional investment funds (technically "series" of shares). Valuation of Assets The assets of the TIAA-CREF Life Funds are valued as of the close of each valuation day in the following manner: Equity Securities Investments for which market quotations are readily available are valued at the market value of such investments, determined as follows: Equity securities listed or traded on a national market or exchange are valued based on their sale price on such market or exchange at B-13 the close of business (usually 4:00 p.m. eastern time) on the date of valuation, or at the mean of the closing bid and asked prices if no sale is reported. Such an equity security may also be valued at fair value as determined in good faith under the direction of the the board of trustees if events materially affecting its value occur between the time its price is determined and the time a fund's net asset value is calculated. Foreign Investments Investments traded on a foreign exchange or in foreign markets are valued at the closing values of such securities as of the date of valuation under the generally accepted valuation method in the country where traded, converted to U.S. dollars at the prevailing rates of exchange on the date of valuation. Since the trading of investments on a foreign exchange or in foreign markets is normally completed before the end of a valuation day, such valuation does not take place contemporaneously with the determination of the valuation of certain other investments held by the fund. If events materially affecting the value of foreign investments occur between the time their share price is determined and the time when a fund's net asset value is calculated, such investments will be valued at fair value as determined in good faith by the board of trustees. Debt Securities and Money Market Instruments Debt securities (excluding money market instruments) for which market quotations are readily available are valued based on the most recent bid price or the equivalent quoted yield for such securities (or those of comparable maturity, quality and type). These values will be derived utilizing an independent pricing service, except when we believe the prices don't accurately reflect the security's fair value. Values for money market instruments with maturities of sixty days or less are valued at amortized cost, which approximates fair value. Values for money market instruments with maturities of more than sixty days are valued in the same manner as debt securities stated in the preceding paragraph, or derived from a pricing matrix that has various types of money market instruments along one axis and various maturities along the other. All debt securities may also be valued at fair value as determined in good faith by the board of trustees. Options Portfolio investments underlying options are valued as described above. Stock options written by a fund are valued at the last quoted sale price, or at the closing bid price if no sale is reported for the day of valuation as determined on the principal exchange on which the option is traded. The value of a fund's net assets will be increased or decreased by the difference between the premiums received on writing options and the costs of liquidating such positions measured by the closing price of the options on the date of valuation. For example, when a fund writes a call option, the amount of the premium is included in the fund's assets and an equal amount is included in its liabilities. The liability thereafter is adjusted to the current market value of the call. Thus, if the current market value of the call exceeds the premium received, the excess would be unrealized depreciation; conversely, if the premium exceeds the current market value, such excess would be unrealized appreciation. If a call expires or if a fund enters into a closing purchase transaction it realizes a gain (or a loss if the cost of the transaction exceeds the premium received when the call was written) without regard to any unrealized appreciation or depreciation in the underlying securities, and the liability related to such call is extinguished. If a call is exercised, a fund realizes a gain or loss from the sale of the underlying securities and the proceeds of the sale increased by the premium originally received. A premium paid on the purchase of a put will be deducted from a fund's assets and an equal amount will be included as an investment and subsequently adjusted to the current market value of the put. For example, if the current market value of the put exceeds the premium paid, the excess would be unrealized appreciation; conversely, if the premium exceeds the current market value, such excess would be unrealized depreciation. Stock and bond index futures, and options thereon, which are traded on commodities exchanges, are valued at their last sale prices as of the close of such commodities exchanges. Investments for Which Market Quotations Are Not Readily Available Portfolio securities or other assets for which market quotations are not readily available will be valued at fair value as determined in good faith under the direction of the board of trustees. Brokerage Allocation Advisors is responsible for decisions to buy and sell securities for the fund as well as for selecting brokers and, where applicable, negotiating the amount of the commission rate paid. It is the intention of Advisors to place brokerage orders with the objective of obtaining the best execution, which includes such factors as best price, research and available data. When purchasing or selling securities traded on the over-the-counter market, Advisors generally will execute the transactions with a broker engaged in making a market for such securities. When Advisors deems the purchase or sale of a security to be in the best interests of the fund, its personnel may, consistent with their fiduciary obligations, decide either to buy or to sell a particular security for the fund at the same time as for TIAA Separate Account VA-1, TIAA-CREF Mutual Funds, TIAA-CREF Institutional Mutual Funds or any other investment account that it may be managing, or at the same time as for a CREF account or other account that it may also be managing on behalf of Investment Management, the other investment adviser affiliated with TIAA. In that event, allocation of the securities purchased or sold, as well as the expenses incurred in the transaction, will be made in an equitable manner. B-14 Domestic brokerage commissions are negotiated, as there are no standard rates. All brokerage firms provide the service of execution of the order made; some brokerage firms also provide research and statistical data, and research reports on particular companies and industries are customarily provided by brokerage firms to large investors. In negotiating commissions, consideration is given by Advisors to the quality of execution provided and to the use and value of the data. The valuation of such data may be judged with reference to a particular order or, alternatively, may be judged in terms of its value to the overall management of the portfolio. Advisors will place orders with brokers providing useful research and statistical data services if reasonable commissions can be negotiated for the total services furnished even though lower commissions may be available from brokers not providing such services. Advisors follows guidelines established by the Board for the placing of orders with the brokers providing such services. In 1999, no brokerage commissions were paid by the Stock Index Fund to brokers on account of research services. The aggregate amount of brokerage commissions paid by the Stock Index Fund during 1999 was $7,098. Research or services obtained for one fund may be used by personnel of Advisors in managing the other funds or other investment company accounts, or the CREF accounts for Investment Management. In such circumstances, the expenses incurred will be allocated in an equitable manner consistent with the fiduciary obligations of personnel of Advisors to each of the funds. During 1999, the Stock Index Fund acquired securities of certain of the regular brokers or dealers or their parents. These entities and the value of the Stock Index Fund's aggregate holdings in the securities of those entities are set forth below: Regular Broker or Dealer based on brokerage commissions paid: None Regular Broker or Dealer based on entities acting as principal:
Broker Parent Holdings at 12/31/99 (US$) - ------ ------ -------------------------- Chase Securities, Inc. Chase Manhattan Corp. $256,368 Morgan Stanley & Morgan Stanley, Dean Witter & Co., Inc. $314,050 Co., Inc. Morgan (J.P.) Securities Morgan (J.P.) & Co., Inc. $ 75,975 Corp. Goldman Sachs Goldman Sachs Group LP $ 37,675 Lehman Brothers Lehman Brothers Holdings, Inc. $ 33,875
Performance Information From time to time, we will advertise the total return and average annual total return of the fund. Total return is computed on a per share basis and assumes the reinvestment of dividends and distributions. Total return generally is expressed as a percentage rate which is calculated by combining the income and principal changes for a specified period and dividing by the net asset value per share at the beginning of the period. Advertisements may include the percentage rate of total return or may include the value of a hypothetical investment at the end of the period, which assumes the application of the percentage rate of total return. Average annual total return is calculated pursuant to a standardized formula which assumes that an investment in the fund was purchased with an initial payment of $1,000 and that the investment was redeemed at the end of a stated period of time, after giving effect to the reinvestment of dividends and distributions during the period. The return is expressed as a percentage rate which, if applied on a compounded annual basis, would result in the redeemable value of the investment at the end of the period. Advertisements of the fund's performance will include the fund's average annual total return for one-, five- and ten-year periods (and occasionally other periods as well). All performance figures are based on past investment results. They aren't a guarantee that the fund will perform equally or similarly in the future. Write or call us for current performance figures for the fund. Calculation of Performance Data We may quote a fund's performance in various ways. All performance information in advertising is historical and is not intended to indicate future returns. A fund's share price, yield, and total return fluctuate in response to market conditions and other factors, and the value of fund shares when redeemed may be more or less than their original cost. Performance of the funds will be presented net of any separate account fees and charges. Total Return Calculations Total returns quoted in advertising reflect all aspects of a fund's returns, including the effect of reinvesting dividends and capital gain distributions, and any change in the fund's NAV over a stated period. Average annual returns are calculated by determining the B-15 growth or decline in value of a hypothetical historical investment in the fund over a stated period, and then calculating the annually compounded percentage rate that would have produced the same result if the rate of growth or decline in value had been constant over the period according to the following formula: P (1 + T)n = ERV where: P = the hypothetical initial payment T = average annual total return n = number of years in the period ERV = ending redeemable value of the hypo- thetical payment made at the beginning of the one-, five-, or 10-year period at the end of the one-, five-, or 10-year period (or fractional portion thereof).
For example, a cumulative return of 100% over ten years would produce an average annual return of 7.18%, which is the steady annual rate that would equal 100% growth on a compounded basis in ten years. While average annual returns are a convenient means of comparing investment alternatives, investors should realize that the fund's performance is not constant over time, but changes from year to year, and that average annual returns represent averaged figures as opposed to the actual year-to-year performance of the fund. In addition to average annual returns, we may quote a fund's unaveraged or cumulative total returns reflecting the actual change in value of an investment over a stated period. Average annual and cumulative total returns may be quoted as a percentage or as a dollar amount, and may be calculated for a single investment, a series of investments, or a series of redemptions, over any time period. Total returns may be broken down into their components of income and capital (including capital gains and changes in share price) in order to illustrate the relationship of these factors and their contributions to total return. Total returns may be quoted on a before or after tax basis. Total returns, yields, and other performance information may be quoted numerically or in a table, graph, or similar illustration. Performance Returns Set forth below is the calculation of the Stock Index Fund's performance, which reflects all expense deductions from fund assets, applied to a hypothetical investment of $1,000 in that fund. Because they are new, we have not included the returns of the other funds.
Period Cumulative Total Return - ------ ----------------------- Since inception 21.20% (January 4, 1999 to December 31, 1999)
Performance Comparisons Performance information for the funds, may be compared in advertisements, sales literature, and reports to shareholders, to the performance information reported by other investments and to various indices and averages. Such comparisons may be made with, but are not limited to (1) the S&P 500, (2) the Dow Jones Industrial Average ("DJIA"), (3) Lipper Analytical Services, Inc. Mutual Fund Performance Analysis Reports and the Lipper General Equity Funds Average, (4) Money Magazine Fund Watch, (5) Business Week's Mutual Fund Scoreboard, (6) SEI Funds Evaluation Services Equity Fund Report, (7) CDA Mutual Funds Performance Review and CDA Growth Mutual Fund Performance Index, (8) Value Line Composite Average (geometric), (9) Wilshire Associates indices, (10) Frank Russell Co. Inc. indices, (11) the Consumer Price Index, published by the U.S. Bureau of Labor Statistics (measurement of inflation), (12) Morningstar, Inc., and (13) the Global Market indices created by Morgan Stanley, Inc., including the Europe, Australasia, Far East (EAFE) Index, the EAFE+Canada Index and the International Perspective Index. We may also discuss ratings or rankings received from these entities, accompanied in some cases by an explanation of those ratings or rankings, when applicable. In addition, advertisements may discuss the performance of the indices listed above. The performance of each of the funds also may be compared to other indices or averages that measure performance of a pertinent group of securities. Shareholders should keep in mind that the composition of the investments in the reported averages will not be identical to that of the fund and that certain formula calculations (e.g., yield) may differ from index to index. In addition, there can be no assurance that any of the funds will continue its performance as compared to such indices. We may also advertise ratings or rankings the funds receive from various rating services and organizations, including but not limited to any organization listed above. The Stock Index Fund is not promoted, sponsored, endorsed, or sold by, nor affiliated with, Frank Russell Company. Frank Russell Company is not responsible for and has not reviewed the fund literature or publications and makes no representation or warranty, express or implied, as to their accuracy, completeness, or otherwise. Frank Russell Company reserves the right, at any time and without notice, to change or terminate the Russell 3000 Index. Frank Russell Company has no obligation to take the needs of the fund or the separate account contractowners into consideration in determining the index. Frank Russell Company's publication of the Russell 3000 Index in no way suggests or implies an opinion by Frank Russell Company as to the attractiveness or appropriateness of investment in any or all of the securities upon which the Index is based. Frank Russell Company makes no representation, warranty, or guarantee as to the accuracy, completeness or reliability of the Index or any data included in the Index. Frank Russell Company makes no representation or warranty regarding the use, or the results of use, of the Index or any securities comprising the Index. FRANK RUSSELL MAKES NO EXPRESS OR IMPLIED WARRANTIES OF ANY KIND OR NATURE, INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE INDEX OR ANY DATA OR SECURITIES INCLUDED THEREIN. B-16 Illustrating Compounding, Tax Deferral, and Expense Deductions We may illustrate in advertisements, sales literature, and reports to contractowners or annuitants the effects of tax deferral and/or compounding of earnings on an investment in the TIAA-CREF Life Funds. We may do this using a hypothetical investment earning a specified rate of return. To illustrate the effects of compounding, we would show how the total return from an investment of the same dollar amount, earning the same or different interest rate, varies depending on when the investment was made. To illustrate the effects of tax deferral, we will show how the total return from an investment of the same dollar amount, earning the same or different interest rates, for individuals in the same tax bracket, would vary between tax-deferred and taxable investments. We may also illustrate in advertisements, sales literature, and reports to contractowners or annuitants the effect of an investment fund's expenses on total return over time. We may do this using a hypothetical investment earning a specified rate of return. We would show how the total return, net of expenses, from an investment of the same dollar amount in funds with the same investment results but different expense deductions varies increasingly over time. In the alternative, we would show the difference in the dollar amount of total expense charges paid over time by an investor in two or more different funds that have the same annual total return but different asset-based expense charges. We may also compare the TIAA-CREF Life Funds' expense charges to those of other investment products. Net Asset Value Charts and graphs using a fund's NAVs, adjusted NAVs, and benchmark indices may be used to exhibit performance. An adjusted NAV includes any distributions paid by the fund and reflects all elements of its return. Moving Averages We may illustrate the fund's performance using moving averages. A long-term moving average is the average of each week's adjusted closing NAV for a specified period. A short-term moving average is the average of each day's adjusted closing NAV for a specified period. "Moving Average Activity Indicators" combine adjusted closing NAVs from the last business day of each week with moving averages for a specified period to produce indicators showing when an NAV has crossed, stayed above, or stayed below its moving average. Tax Status Although the TIAA-CREF Life Funds are organized as a Delaware business trust, neither the TIAA-CREF Life Funds nor any of the funds will be subject to any corporate excise or franchise tax in the State of Delaware, nor will they be liable for Delaware income taxes provided that each fund qualifies as a "regulated investment company" ("RIC") for federal income tax purposes and satisfies certain income source requirements of Delaware law. If the funds so qualify and distribute all of their income and capital gains, they will also be exempt from the New York State franchise tax and the New York City general corporation tax, except for small minimum taxes. Each fund intends to qualify as a RIC under Subchapter M of the Code. In general, to qualify as a RIC: (a) at least 90% of the gross income of the fund for the taxable year must be derived from dividends, interest, payments with respect to loans of securities, gains from the sale or other disposition of securities or foreign currencies, or other income derived with respect to its business of investing in securities; (b) the fund must distribute to its shareholders 90% of its ordinary income and net short-term capital gains (undistributed net income may be subject to tax at the fund level) and (c) the fund must diversify its assets so that, at the close of each quarter of its taxable year, (i) at least 50% of the fair market value of its total (gross) assets is comprised of cash, cash items, U.S. Government securities, securities of other regulated investment companies and other securities limited in respect of any one issuer to no more than 5% of the fair market value of the fund's total assets and 10% of the outstanding voting securities of such issuer and (ii) no more than 25% of the fair market value of its total assets is invested in the securities of any one issuer (other than U.S. Government securities and securities of other regulated investment companies) or of two or more issuers controlled by the fund and engaged in the same, similar, or related trades or businesses. If a fund fails to qualify as a RIC, the fund will be subject to federal and possibly state and local corporate taxes on its taxable income and gains (without any deduction for its distributions to its shareholders) and distributions to its shareholders will constitute ordinary income to the extent of the fund's available earnings and profits. Owners of a variable annuity or other variable insurance contracts invested in the fund might be taxed currently on the investment earnings under their contracts and thereby lose the benefit of tax deferral. This could also happen if the fund fails to comply with the diversification requirements required of insurance company separate accounts under the Code. Each fund must declare and distribute dividends equal to at least 98% of its ordinary income (as of the twelve months ended December 31) and distributions of at least 98% of its capital gain net income (as of the twelve months ended October 31), in order to avoid a federal excise tax. Each fund intends to make the required distributions, but they cannot guarantee that they will do so. Dividends attributable to each fund's ordinary income and capital gains distributions are taxable as such to shareholders in the year in which they are received except dividends declared in October, November or December and paid in January. Dividends in the latter category are treated as paid on December 31. This discussion of the tax treatment of the funds and their distributions is based on the federal, Delaware and New York tax laws in effect as of the date of this SAI. Contractowners should consult their tax advisers to determine the tax treatment of their investment. B-17 Underwriters The shares of the TIAA-CREF Life Funds are offered continuously by Teachers Personal Investors Services, Inc. (TPIS), which is registered with the SEC as a broker-dealer and is a member of the NASD. TPIS may be considered the "principal underwriter" for the shares of the fund. No commissions are paid in connection with the distribution of the shares of the TIAA-CREF Life Funds. The principal business address of TPIS is 730 Third Avenue, New York, New York 10017. Legal Matters All matters of applicable state law have been passed upon by Charles H. Stamm, Executive Vice President and General Counsel of TIAA and CREF. Legal matters relating to the federal securities laws have been passed upon by Sutherland Asbill & Brennan LLP, Washington, D.C. Experts The financial statements of the TIAA-CREF Life Funds included in this Statement of Additional Information or incorporated by reference into this registration statement have been audited by Ernst & Young LLP, independent auditors, as stated in their report appearing herein, and have been so included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. Other Information This Statement of Additional Information and the Prospectus for the TIAA-CREF Life Funds do not contain all the information set forth in the registration statement and exhibits relating thereto (including the Declaration of Trust), which the fund has filed with the SEC, to which reference is hereby made. Financial Statements The audited financial statements of the each of the funds of the TIAA-CREF Life Funds, other than the Stock Index Fund, follow. The audited financial statements of the Stock Index Fund are incorporated herein by reference to the TIAA-CREF Life Funds' Annual Report for the year ended December 31, 1999, which has been filed with the Securities and Exchange Commission, and provided to separate account contractowners. We will furnish you, without charge, another copy of the Annual Report upon request. B-18 INDEX TO FINANCIAL STATEMENTS
Page ---- TIAA-CREF LIFE FUNDS Audited Financial Statements - Growth Equity, Growth & Income, International Equity, Social Choice Funds March 10, 2000: Report of Management Responsibility ................... B-20 Report of Independent Auditors ........................ B-21 Statements of Assets and Liabilities .................. B-22 Statements of Operations .............................. B-23 Statements of Changes in Net Assets ................... B-24 Financial Highlights .................................. B-25 Notes to Financial Statements ......................... B-26 Statements of Investments ............................. B-29
B-19 [TIAA CREF LOGO] - -------------------------------------------------------------------------------- REPORT OF MANAGEMENT RESPONSIBILITY To the Shareholders of the TIAA-CREF Life Funds: The accompanying financial statements of the Growth Equity, Growth & Income, International Equity and Social Choice Equity Funds of TIAA-CREF Life Funds (the "Funds") are the responsibility of management. They have been prepared in accordance with accounting principles generally accepted in the United States and have been presented fairly and objectively in accordance with such principles. TIAA-CREF Life Funds has established and maintains a strong system of internal controls designed to provide reasonable assurance that assets are properly safeguarded and transactions are properly executed in accordance with management's authorization, and to carry out the ongoing responsibilities of management for reliable financial statements. In addition, the Funds' internal audit personnel provide a continuing review of the internal controls and operations of the Funds. The accompanying financial statements have been audited by the independent auditing firm of Ernst & Young LLP. The independent auditors' report, which appears on the following page, expresses an independent opinion on the fairness of presentation of these financial statements. /s/ Martin E. Galt, III ----------------------------- President /s/ Richard L. Gibbs ----------------------------- Executive Vice President and Chief Financial Officer B-20 [ERNST & YOUNG LLP LETTERHEAD] REPORT OF INDEPENDENT AUDITORS To the Shareholders and Board of Trustees of TIAA-CREF Life Funds: We have audited the accompanying statements of assets and liabilities, including the statements of investments, of the Growth Equity, Growth & Income, International Equity and Social Choice Equity Funds (four of the Funds constituting TIAA-CREF Life Funds) (the "Funds") as of March 10, 2000, and the related statements of operations and changes in net assets and financial highlights for the period March 1, 2000 (commencement of operations) to March 10, 2000. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 10, 2000, by correspondence with the custodians and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds at March 10, 2000, and the results of their operations, the changes in their net assets and the financial highlights for the period from March 1, 2000 to March 10, 2000, in conformity with accounting principles generally accepted in the United States. /s/ ERNST & YOUNG LLP March 21, 2000 B-21 TIAA-CREF LIFE FUNDS STATEMENTS OF ASSETS AND LIABILITIES MARCH 10, 2000
Growth Equity Growth & Income International Equity Social Choice Equity Fund Fund Fund Fund --------------- ----------------- ---------------------- --------------------- ASSETS Portfolio investments, at cost ................ $50,113,488 $50,406,395 $67,983,565 $25,126,549 Net unrealized appreciation (depreciation) of portfolio investments ..................... 1,313,824 195,642 (363,194) (349,425) ----------- ----------- ----------- ----------- Portfolio investments, at value ............... 51,427,312 50,602,037 67,620,371 24,777,124 Cash .......................................... 307 1,087 2,377,419 756 Dividends and interest receivable ............. 8,568 10,686 6,050 4,641 Receivable from securities transactions ....... 20,044 375,977 -- -- ----------- ----------- ----------- ----------- TOTAL ASSETS 51,456,231 50,989,787 70,003,840 24,782,521 ----------- ----------- ----------- ----------- LIABILITIES Payable for securities transactions ........... -- 662,122 20,209,097 -- Accrued expenses .............................. 3,481 3,176 3,994 1,238 ----------- ----------- ----------- ----------- TOTAL LIABILITIES 3,481 665,298 20,213,091 1,238 ----------- ----------- ----------- ----------- NET ASSETS ..................................... $51,452,750 $50,324,489 $49,790,749 $24,781,283 =========== =========== =========== =========== Net assets consist of: Paid in capital ............................... $50,100,000 $50,100,000 $50,100,000 $25,100,000 Accumulated undistributed net investment income ....................................... 55,359 58,801 70,930 30,708 Accumulated net realized gain (loss) on total investments ............................ (16,433) (29,954) 9,994 -- Accumulated net unrealized appreciation (depreciation) on total investments .......... 1,313,824 195,642 (390,175) (349,425) ----------- ----------- ----------- ----------- NET ASSETS ..................................... $51,452,750 $50,324,489 $49,790,749 $24,781,283 =========== =========== =========== =========== NUMBER OF SHARES OUTSTANDING $.0001 par value, unlimited number of shares of beneficial interest authorized ..... 2,004,000 2,004,000 2,004,000 1,004,000 =========== =========== =========== =========== Net asset value per share ..................... $ 25.68 $ 25.11 $ 24.85 $ 24.68 =========== =========== =========== ===========
See notes to financial statements. B-22 TIAA-CREF LIFE FUNDS STATEMENTS OF OPERATIONS FOR THE PERIOD MARCH 1, 2000 (COMMENCEMENT OF OPERATIONS) TO MARCH 10, 2000
Growth Equity Growth & Income International Equity Social Choice Equity Fund Fund Fund Fund --------------- ----------------- ---------------------- --------------------- INVESTMENT INCOME Income: Dividends ...................................... $ 8,568 $ 10,686 $ 6,050 $ 4,641 Interest ....................................... 50,272 51,291 68,874 27,305 ---------- --------- ---------- ---------- TOTAL INCOME 58,840 61,977 74,924 31,946 ---------- --------- ---------- ---------- Expenses--Notes 3 and 5 Management fee ................................. 6,350 6,019 7,245 2,651 Trustee fees and expenses ...................... 30 30 30 15 ---------- --------- ---------- ---------- EXPENSES BEFORE WAIVER 6,380 6,049 7,275 2,666 Less expenses waived by the advisor ........... (2,899) (2,873) (3,281) (1,428) ---------- --------- ---------- ---------- NET EXPENSES 3,481 3,176 3,994 1,238 ---------- --------- ---------- ---------- INVESTMENT INCOME--NET 55,359 58,801 70,930 30,708 ---------- --------- ---------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS Realized gain (loss) on: Portfolio investments (16,433) (29,954) -- -- Foreign currency transactions -- -- 9,994 -- ---------- --------- ---------- ---------- Net realized gain (loss) on total investments (16,433) (29,954) 9,994 -- ---------- --------- ---------- ---------- Net change in unrealized appreciation (depreciation) on: Portfolio investments .......................... 1,313,824 195,642 (363,194) (349,425) Translation of assets (other than portfolio investments) and liabilities denominated in foreign currencies ............. -- -- (26,981) -- ---------- --------- ---------- ---------- Net change in unrealized appreciation (depreciation) on total investments ........... 1,313,824 195,642 (390,175) (349,425) ---------- --------- ---------- ---------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS 1,297,391 165,688 (380,181) (349,425) ---------- --------- ---------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $1,352,750 $ 224,489 $ (309,251) $ (318,717) ========== ========= ========== ==========
See notes to financial statements. B-23 TIAA-CREF LIFE FUNDS STATEMENTS OF CHANGES IN NET ASSETS FOR THE PERIOD MARCH 1, 2000 (COMMENCEMENT OF OPERATIONS) TO MARCH 10, 2000
Growth Equity Growth & Income International Equity Social Choice Equity Fund Fund Fund Fund --------------- ----------------- ---------------------- --------------------- CHANGE IN NET ASSETS OPERATIONS: Investment income--net ......................... $ 55,359 $ 58,801 $ 70,930 $ 30,708 Net realized gain (loss) on total investments .. (16,433) (29,954) 9,994 -- Net change in unrealized appreciation (depreciation) on total investments ........... 1,313,824 195,642 (390,175) (349,425) ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 1,352,750 224,489 (309,251) (318,717) ----------- ----------- ----------- ----------- SHAREHOLDER TRANSACTIONS: Seed money subscriptions ...................... 50,100,000 50,100,000 50,100,000 25,100,000 ----------- ----------- ----------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM SHAREHOLDER TRANSACTIONS 50,100,000 50,100,000 50,100,000 25,100,000 ----------- ----------- ----------- ----------- NET ASSETS, end of period ...................... $51,452,750 $50,324,489 $49,790,749 $24,781,283 =========== =========== =========== ===========
See notes to financial statements. B-24 TIAA-CREF LIFE FUNDS FINANCIAL HIGHLIGHTS FOR THE PERIOD MARCH 1, 2000 (COMMENCEMENT OF OPERATIONS) TO MARCH 10, 2000
Growth Equity Growth & Income International Equity Social Choice Equity Fund Fund Fund Fund --------------- ----------------- ---------------------- --------------------- SELECTED PER SHARE DATA: Net asset value, beginning of period .............. $ 25.00 $ 25.00 $ 25.00 $ 25.00 ------- ------- ------- ------- Gain from investment operations: Net investment income ............................ 0.03 0.03 0.04 0.03 Net realized and unrealized gain (loss) on total investments ............................... 0.65 0.08 (0.19) (0.35) ------- ------- ------- ------- Total gain (loss) from investment operations ....... 0.68 0.11 (0.15) (0.32) ------- ------- ------- ------- Net asset value, end of period ..................... $ 25.68 $ 25.11 $ 24.85 $ 24.68 ======= ======= ======= ======= TOTAL RETURN ....................................... 2.72% 0.44% (0.60%) (1.28%) RATIOS AND SUPPLEMENTAL DATA Net assets at end of period (in thousands) ......... $51,453 $50,324 $49,791 $24,781 Ratio of expenses to average net assets before expense waiver .................................... 0.01% 0.01% 0.02% 0.01% Ratio of expenses to average net assets after expense waiver .................................... 0.01% 0.01% 0.01% 0.01% Ratio of net investment income to average net assets ............................................ 0.12% 0.13% 0.16% 0.14% Portfolio turnover rate ............................ 0.00% 0.00% 0.00% 0.00%
The percentages shown above are not annualized. See notes to financial statements. B-25 TIAA-CREF LIFE FUNDS NOTES TO FINANCIAL STATEMENTS NOTE 1--ORGANIZATION TIAA-CREF Life Funds is a Delaware business trust that was organized on August 13, 1998 and is registered with the Securities and Exchange Commission ("Commission") under the Investment Company Act of 1940 as an open-end management investment company. It consists of five series, the Stock Index Fund which invests in a diversified portfolio selected to track the overall market for common stocks publicly traded in the United States, as represented by a broad stock market index; the Growth Equity Fund which invests primarily in a diversified portfolio of common stocks that present the opportunity for exceptional growth; the Growth & Income Fund which invests primarily in a broadly diversified portfolio of common stocks selected for their investment potential; the International Equity Fund which invests primarily in a broadly diversified portfolio of foreign equity investments and the Social Choice Equity Fund which invests primarily in a diversified set of common stocks of companies whose activities are consistent with the Fund's social criteria. These financial statements consist of the Growth Equity, Growth & Income, International Equity and Social Choice Equity Funds (the "Funds"). The financial statements of the Stock Index Fund are not included in these financial statements. TIAA-CREF Life Separate Account VA-1 (the "Account"), which is registered with the Commission as a unit investment trust under the 1940 Act consists of five sub-accounts which correspond to and invest in each of the Funds. The Account is a separate account of TIAA-CREF Life Insurance Company ("TIAA-CREF Life") which commenced operations as a legal reserve life insurance company under the insurance laws of the State of New York on December 18, 1996, and is a wholly-owned indirect subsidiary of Teachers Insurance and Annuity Association of America ("TIAA"), also a legal reserve life insurance company which was established under the insurance laws of the State of New York in 1918. The Funds commenced operations on March 1, 2000, when the Accounts purchased 4,000 shares at $25.00 per share for a total of $100,000 in each of the corresponding Funds. On March 1, 2000, TIAA purchased 2,000,000 shares at $25 per share for a total of $50,000,000 in each of the Growth Equity, Growth & Income and International Equity Funds and also purchased 1,000,000 shares at $25 per share for a total of $25,000,000 in the Social Choice Equity Fund. At March 10, 2000, the values of these investments were as follows:
Accounts TIAA ----------- -------------- Growth Equity Fund ................. $100,720 $51,352,030 Growth & Income Fund ............... 100,440 50,224,049 International Equity Fund .......... 99,400 49,691,349 Social Choice Equity Fund .......... 98,720 24,682,563
Teachers Advisors, Inc. ("Advisors"), a wholly-owned indirect subsidiary of TIAA, which is registered with the Commission as an investment adviser, provides investment management services for the Funds and is also responsible for providing, or obtaining at its own expense, the services reasonably necessary for the ordinary operation of the Funds. Advisors has borne any costs necessary to organize the Funds. NOTE 2--SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements may require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and related disclosures. Actual results may differ from those estimates. The following is a summary of the significant accounting policies followed by the Funds, which are in conformity with accounting principles generally accepted in the United States. Valuation of Investments: Securities listed or traded on a national market or exchange are valued based on their sale price on such market or exchange at the close of business on the date of valuation, or at the mean of the closing bid and asked prices if no sale is reported, except for bonds which are valued at the most recent bid price or the equivalent quoted yield of such bonds. Foreign investments are valued at the closing values of such securities as of the date of valuation under the generally accepted valuation method in the country where traded, converted to U.S. dollars at the prevailing rates of exchange on the date of valuation. Money market instruments are valued at fair market value, except for such instruments within 60 days to maturity, which are valued at amortized cost, which approximates market value. The amortized cost method initially values securities at original cost and assumes a constant amortization to maturity of any discount or premium. Portfolio securities for which market quotations are not readily available (including restricted securities) are valued at fair value, as determined in good faith under the direction of the Board of Trustees. B-26 TIAA-CREF LIFE FUNDS NOTES TO FINANCIAL STATEMENTS Accounting for Investments: Securities transactions are accounted for as of the date the securities are purchased or sold (trade date). Realized gains and losses on securities transactions are accounted for on the specific identification basis. Interest income is recorded as earned and, for short-term money market instruments, includes accrual of discount and amortization of premium. Dividend income is recorded on the ex-dividend date, except for certain foreign dividends which are recorded as the Funds are informed of the ex-dividend date. Foreign Currency Transactions and Translation: The records of the Funds are maintained in U.S. dollars. Portfolio investments and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of securities, income receipts and expense payments made in foreign currencies are translated into U.S. dollars at the exchange rates prevailing on the respective dates of the transactions. The effects of changes in foreign currency exchange rates on portfolio investments are included in the realized and unrealized gains and losses on investments. Net realized gains and losses on foreign currency transactions include maturities of forward foreign currency contracts, disposition of foreign currencies, and currency gains and losses between the accrual and receipt dates of portfolio investment income and between the trade and settlement dates of portfolio investment transactions. Forward Foreign Currency Contracts: The Funds may enter into forward foreign currency contracts to purchase or sell foreign currency to accommodate foreign investment transactions. Forward foreign currency contracts are "marked-to market" at the end of each day's trading. Daily changes in the value of such contracts are reflected in net unrealized gains and losses. Gains or losses are realized upon maturity or if the counterparties do not perform in accordance with contractual provisions. Federal Income Taxes: The Funds intend to qualify as regulated investment companies under Subchapter M of the Internal Revenue Code, and will not be subject to income taxes to the extent that they distribute substantially all taxable income each year. NOTE 3--MANAGEMENT AGREEMENTS Under the terms of an Investment Management Agreement, each Fund pays a fee for investment management services, based on the average daily net assets of each Fund. Advisors has currently waived its right to receive a portion of its fee from each Fund. As a result, Advisors will receive the following annual percentages of each Fund's average daily net assets:
Management Management Fee Fee Waiver After Waiver ------------ ---------- --------------- Growth & Equity Fund .............. 0.43% 0.18% 0.25% Growth & Income Fund .............. 0.43% 0.20% 0.23% International Equity Fund ......... 0.52% 0.23% 0.29% Social Choice Equity Fund ......... 0.39% 0.21% 0.18%
NOTE 4--INVESTMENTS At March 10, 2000, the net unrealized appreciation (depreciation) on investments, consisting of gross unrealized appreciation and gross unrealized depreciation for the Funds was as follows:
Net Unrealized Gross Unrealized Appreciation Appreciation Depreciation (Depreciation) -------------- -------------- --------------- Growth Equity Fund ................ $2,484,143 $1,170,319 $1,313,824 Growth & Income Fund .............. 1,571,682 1,376,040 195,642 International Equity Fund ......... 1,190,915 1,554,109 (363,194) Social Choice Equity Fund ......... 528,289 877,714 (349,425)
B-27 TIAA-CREF LIFE FUNDS NOTES TO FINANCIAL STATEMENTS Purchases and sales of securities, other than short-term money market instruments, by the Funds for the period March 1, 2000 (commencement of operations) to March 10, 2000, were as follows:
Purchases Sales -------------- ----------- Growth Equity Fund ................. $50,338,891 $308,843 Growth & Income Fund ............... 50,494,427 525,376 International Equity Fund .......... 47,566,851 -- Social Choice Equity Fund .......... 24,936,608 --
NOTE 5--TRUSTEE FEES The Funds pay their Trustees, who are not also officers or affiliated persons of the Funds, certain remuneration for their services, plus travel and other expenses incurred in attending Board meetings. Trustees who are also officers or affiliated persons receive no remuneration for their services as Trustees from the Funds. B-28 TIAA-CREF LIFE FUNDS STATEMENT OF INVESTMENTS--GROWTH EQUITY FUND MARCH 10, 2000 SUMMARY BY INDUSTRY
VALUE % ----------- ---- COMMON STOCK AGRICULTURAL PRODUCTION-CROPS .............. $ 2,203 0.00% AGRICULTURAL SERVICES ...................... 783 0.00 AMUSEMENT AND RECREATION SERVICES .......... 510,253 0.99 APPAREL AND ACCESSORY STORES ............... 104,865 0.20 APPAREL AND OTHER TEXTILE PRODUCTS ......... 7,291 0.01 AUTO REPAIR, SERVICES AND PARKING .......... 1,196 0.00 AUTOMOTIVE DEALERS AND SERVICE STATIONS .... 8,574 0.02 BUILDING MATERIALS AND GARDEN SUPPLIES ..... 347,910 0.68 BUSINESS SERVICES .......................... 10,550,373 20.51 CHEMICALS AND ALLIED PRODUCTS .............. 4,529,423 8.80 COMMUNICATIONS ............................. 6,283,280 12.21 DEPOSITORY INSTITUTIONS .................... 264,927 0.52 EATING AND DRINKING PLACES ................. 84,480 0.16 EDUCATIONAL SERVICES ....................... 8,884 0.02 ELECTRIC, GAS, AND SANITARY SERVICES ....... 105,422 0.21 ELECTRONIC AND OTHER ELECTRIC EQUIPMENT..... 12,068,159 23.46 ENGINEERING AND MANAGEMENT SERVICES ........ 65,756 0.13 FABRICATED METAL PRODUCTS .................. 79,783 0.16 FOOD AND KINDRED PRODUCTS .................. 545,626 1.06 FOOD STORES ................................ 329,890 0.64 FURNITURE AND FIXTURES ..................... 220,436 0.43 FURNITURE AND HOMEFURNISHINGS STORES ....... 318,794 0.62 GENERAL BUILDING CONTRACTORS ............... 1,543 0.00 GENERAL MERCHANDISE STORES ................. 470,768 0.92 HEALTH SERVICES ............................ 128,451 0.25 HEAVY CONSTRUCTION, EXCEPT BUILDING ........ 9,513 0.02 HOLDING AND OTHER INVESTMENT OFFICES ....... 14,711 0.03 HOTELS AND OTHER LODGING PLACES ............ 7,456 0.01 INDUSTRIAL MACHINERY AND EQUIPMENT ......... 9,427,852 18.32 INSTRUMENTS AND RELATED PRODUCTS ........... 846,137 1.64 INSURANCE AGENTS, BROKERS AND SERVICE ...... 6,155 0.01 INSURANCE CARRIERS ......................... 169,850 0.33 LEATHER AND LEATHER PRODUCTS ............... 546 0.00 LEGAL SERVICES ............................. 1,425 0.00 LUMBER AND WOOD PRODUCTS ................... 1,090 0.00 METAL MINING ............................... 9,323 0.02 MISCELLANEOUS MANUFACTURING INDUSTRIES ................................ 9,452 0.02 MISCELLANEOUS REPAIR SERVICES .............. 328 0.00 VALUE % ----------- ---- MISCELLANEOUS RETAIL ....................... $ 174,069 0.34% MOTION PICTURES ............................ 582,889 1.13 NONDEPOSITORY INSTITUTIONS ................. 192,439 0.37 OIL AND GAS EXTRACTION ..................... 71,002 0.14 PAPER AND ALLIED PRODUCTS .................. 58,040 0.11 PERSONAL SERVICES .......................... 13,023 0.03 PETROLEUM AND COAL PRODUCTS ................ 2,756 0.01 PRIMARY METAL INDUSTRIES ................... 1,742 0.00 PRINTING AND PUBLISHING .................... 31,104 0.06 RAILROAD TRANSPORTATION .................... 24,114 0.05 REAL ESTATE ................................ 4,622 0.01 RUBBER AND MISCELLANEOUS PLASTIC PRODUCTS .................................. 118,127 0.23 SECURITY AND COMMODITY BROKERS ............. 143,598 0.28 SOCIAL SERVICES ............................ 1,213 0.00 SPECIAL TRADE CONTRACTORS .................. 5,172 0.01 STONE, CLAY, AND GLASS PRODUCTS ............ 279,116 0.54 TEXTILE MILL PRODUCTS ...................... 2,151 0.00 TOBACCO PRODUCTS ........................... 64,296 0.12 TRANSPORTATION BY AIR ...................... 2,600 0.01 TRANSPORTATION EQUIPMENT ................... 1,330,379 2.59 TRANSPORTATION SERVICES .................... 10,977 0.02 TRUCKING AND WAREHOUSING ................... 3,932 0.01 WATER TRANSPORTATION ....................... 208,499 0.41 WHOLESALE TRADE-DURABLE GOODS .............. 12,576 0.02 WHOLESALE TRADE-NONDURABLE GOODS ........... 445,999 0.87 ----------- ------ TOTAL COMMON STOCK (Cost $50,013,519) ......................... 51,327,343 99.76 ----------- ------ SHORT TERM INVESTMENT U.S. GOVERNMENT AGENCY ..................... 99,969 0.19 ----------- ------ TOTAL SHORT TERM INVESTMENT ................. (Cost $99,969) ............................. 99,969 0.19 ----------- ------ TOTAL PORTFOLIO (Cost $50,113,488) ......................... 51,427,312 99.95 OTHER ASSETS & LIABILITIES, NET ............. 25,438 0.05 ----------- ------ NET ASSETS .................................. $51,452,750 100.00% =========== ======
B-29 See notes to financial statements. TIAA-CREF LIFE FUNDS STATEMENT OF INVESTMENTS--GROWTH EQUITY FUND MARCH 10, 2000
SHARES VALUE ------ -------- COMMON STOCK--99.76% AGRICULTURAL PRODUCTION-CROPS--0.00% 95 DELTA & PINE LAND CO ........................ $ 1,816 50 * HINES HORTICULTURE, INC ..................... 387 -------- 2,203 -------- AGRICULTURAL SERVICES--0.00% 87 * CADIZ, INC .................................. 783 -------- AMUSEMENT AND RECREATION SERVICES--0.99% 50 * ARGOSY GAMING CORP .......................... 693 50 * BALLY TOTAL FITNESS HOLDINGS CORP ........... 1,225 67 INTERNATIONAL SPEEDWAY CORP (CLASS A ) ...... 2,788 12,266 * PREMIER PARKS, INC .......................... 239,187 7,202 * SFX ENTERTAINMENT, INC (CLASS A) ............ 259,722 50 * STATION CASINOS, INC ........................ 965 85 * WESTWOOD ONE, INC ........................... 5,673 -------- 510,253 -------- APPAREL AND ACCESSORY STORES--0.20% 240 * ABERCROMBIE & FITCH CO (CLASS A) ............ 3,660 50 * AMERICAN EAGLE OUTFITTERS, INC .............. 1,346 50 * ANN TAYLOR STORES CORP ...................... 1,196 50 * CHILDRENS PLACE RETAIL STORES ............... 700 86 CLAIRES STORES, INC ......................... 1,456 1,619 GAP, INC .................................... 74,676 50 * GENESCO, INC ................................ 493 105 INTIMATE BRANDS, INC (CLASS A) .............. 3,327 63 * MEN'S WEARHOUSE, INC ........................ 1,496 50 NORDSTROM, INC .............................. 1,106 68 * PACIFIC SUNWEAR CALIFORNIA, INC ............. 1,691 102 ROSS STORES, INC ............................ 1,676 50 * STEIN MART, INC ............................. 300 770 TJX COS, INC ................................ 11,742 -------- 104,865 -------- APPAREL AND OTHER TEXTILE PRODUCTS--0.01% 259 * JONES APPAREL GROUP, INC .................... 6,604 50 * QUIKSILVER, INC ............................. 687 -------- 7,291 -------- AUTO REPAIR, SERVICES AND PARKING--0.00% 50 MIDAS, INC .................................. 1,196 -------- AUTOMOTIVE DEALERS AND SERVICE STATIONS--0.02% 431 * AUTONATION, INC ............................. 3,178 109 * AUTOZONE, INC ............................... 2,377 91 * COPART, INC ................................. 1,541 50 * CSK AUTO CORP ............................... 628 85 * OREILLY AUTOMOTIVE, INC ..................... 850 -------- 8,574 -------- BUILDING MATERIALS AND GARDEN SUPPLIES--0.68% 69 FASTENAL CO ................................. 2,622 5,719 HOME DEPOT, INC ............................. 307,038 850 LOWES COS, INC .............................. 38,250 -------- 347,910 -------- BUSINESS SERVICES--20.51% 102 * ACCLAIM ENTERTAINMENT, INC .................. 522 79 * ACNEILSEN CORP .............................. 1,530 64 * ACTIVISION, INC ............................. 916 61 * ACTUATE CORP ................................ 4,113 146 * ACXIOM CORP ................................. 5,164 307 ADOBE SYSTEMS, INC .......................... 25,557 50 * ADVO, INC ................................... 1,275 SHARES VALUE ------ -------- 76 * AFFILIATED COMPUTER SERVICES, INC (CLASS A) .................................. $ 2,417 5,553 * AMERICA ONLINE, INC ......................... 328,668 104 * AMERICAN MANAGEMENT SYSTEMS, INC ............ 4,257 50 ANALYSTS INTERNATIONAL CORP ................. 550 68 * ANSWERTHINK CONSULTING GROUP ................ 1,802 50 * ASPECT DEVELOPMENT, INC ..................... 8,500 50 * ASPEN TECHNOLOGY, INC ....................... 2,100 50 AUTODESK, INC ............................... 2,743 1,553 AUTOMATIC DATA PROCESSING, INC .............. 68,526 72 * AVANT CORP .................................. 1,039 61 * AVT CORP .................................... 1,967 50 * AWARE, INC .................................. 2,481 70 * AXENT TECHNOLOGIES, INC ..................... 2,135 61 * BANYAN SYSTEMS, INC ......................... 1,258 393 * BEA SYSTEMS, INC ............................ 52,662 60 * BEYOND.COM CORP ............................. 360 96 * BILLING CONCEPTS CORP ....................... 846 83 * BINDVIEW DEVELOPMENT CORP ................... 3,460 68 * BISYS GROUP, INC ............................ 3,638 7,000 * BMC SOFTWARE, INC ........................... 363,562 50 * BRIO TECHNOLOGY, INC ........................ 2,000 138 * BROADVISION, INC ............................ 35,638 325 * CADENCE DESIGN SYSTEMS, INC ................. 7,190 127 * CAMBRIDGE TECHNOLOGY PARTNERS, INC .......... 1,730 50 * CCC INFORMATION SERVICES GROUP, INC ......... 1,362 865 * CENDANT CORP ................................ 15,678 161 * CENTURY BUSINESS SERVICES, INC .............. 548 5,915 * CERIDIAN CORP ............................... 111,645 65 * CERNER CORP ................................. 2,112 90 * CHECKFREE HOLDINGS CORP ..................... 7,976 73 * CHOICEPOINT, INC ............................ 3,020 112 * CIBER, INC .................................. 2,576 400 * CITRIX SYSTEMS, INC ......................... 43,000 50 * CLARIFY, INC ................................ 8,050 400 * CMGI, INC ................................... 54,575 50 * COMPLETE BUSINESS SOLUTIONS, INC ............ 1,225 1,035 COMPUTER ASSOCIATES INTERNATIONAL, INC ...... 68,827 77 * COMPUTER HORIZONS CORP ...................... 1,915 50 * COMPUTER NETWORK TECHNOLOGY CORP ............ 1,134 331 * COMPUTER SCIENCES CORP ...................... 26,748 50 COMPUTER TASK GROUP, INC .................... 662 400 * COMPUWARE CORP .............................. 9,550 50 * CRITICAL PATH, INC .......................... 5,695 119 * CSG SYSTEMS INTERNATIONAL, INC .............. 7,273 50 * CYBERCASH, INC .............................. 681 75 * DATA BROADCASTING CORP ...................... 684 50 * DATASTREAM SYSTEMS, INC ..................... 2,171 75 * DENDRITE INTERNATIONAL, INC ................. 1,584 216 * DOUBLECLICK, INC ............................ 25,407 63 * DSP GROUP, INC .............................. 3,528 176 * EARTHLINK, INC .............................. 4,180 74 * EBAY, INC ................................... 14,300 50 * ECHELON CORP ................................ 4,525 87 * ECLIPSYS CORP ............................... 2,495 157 * ELECTRONIC ARTS, INC ........................ 14,571 7,853 ELECTRONIC DATA SYSTEMS CORP ................ 482,959 122 * ELECTRONICS FOR IMAGING, INC ................ 7,724 99 * ELOYALTY CORP ............................... 2,823 50 * ENTRUST TECHNOLOGIES, INC ................... 6,409 101 * EPICOR SOFTWARE CORP ........................ 849 351 EQUIFAX, INC ................................ 7,743 343 * EXCITE AT HOME .............................. 9,796
B-30 See notes to financial statements.
SHARES VALUE ------ -------- BUSINESS SERVICES--(Continued) 50 FACTSET RESEARCH SYSTEMS, INC ........... $ 1,540 76 * FILENET CORP ............................ 3,087 245 FIRST DATA CORP ......................... 10,259 305 * FISERV, INC ............................. 10,408 73 * GETTY IMAGES, INC ....................... 3,494 126 * GO.COM .................................. 3,039 50 * GO2NET, INC ............................. 4,253 60 * GT INTERACTIVE SOFTWARE CORP ............ 240 50 * GTECH HOLDINGS CORP ..................... 968 96 * HARBINGER CORP .......................... 3,318 50 * HEALTHEON/WEBMD CORP .................... 2,050 61 * HNC SOFTWARE ............................ 7,212 80 * HYPERION SOLUTIONS CORP ................. 4,520 166 * I2 TECHNOLOGIES, INC .................... 34,528 87 * IGATE CAPITAL CORP ...................... 5,241 50 * IMRGLOBAL CORP .......................... 787 765 IMS HEALTH, INC ......................... 16,208 72 * INFOCURE CORP ........................... 1,192 600 * INFORMIX CORP ........................... 12,300 118 * INFOSPACE.COM, INC ...................... 28,902 50 * INFOUSA, INC ............................ 762 177 * INKTOMI CORP ............................ 29,968 50 * INTERIM SERVICES, INC ................... 1,356 6,197 INTERPUBLIC GROUP OF COS, INC ........... 229,289 321 * INTUIT, INC ............................. 18,758 63 * ISS GROUP, INC .......................... 7,878 50 * IVILLAGE, INC ........................... 1,193 75 * J.D. EDWARDS & CO ....................... 3,328 140 * KEANE, INC .............................. 3,587 50 * KORN FERRY INTERNATIONAL ................ 1,728 89 * LABOR READY, INC ........................ 750 124 * LAMAR ADVERTISING CO (CLASS A) .......... 6,711 85 * LEARN2.COM, INC ......................... 515 187 * LEGATO SYSTEMS, INC ..................... 6,720 60 * LHS GROUP, INC .......................... 2,640 196 * LYCOS, INC .............................. 14,357 106 * MACROMEDIA, INC ......................... 9,526 50 * MAPICS, INC ............................. 981 89 * MEDQUIST, INC ........................... 2,280 62 * MENTOR GRAPHICS CORP .................... 899 191 * MERCURY INTERACTIVE CORP ................ 21,941 72 * MESSAGEMEDIA, INC ....................... 1,008 85 * METAMOR WORLDWIDE, INC .................. 1,556 50 * MICROMUSE, INC .......................... 9,031 25,700 MICROSOFT CORP .......................... 2,595,700 192 * MICROSTRATEGY, INC ...................... 60,096 66 * MIDWAY GAMES, INC ....................... 1,328 101 * MODIS PROFESSIONAL SERVICES, INC ........ 1,647 80 NATIONAL COMPUTER SYSTEMS, INC .......... 3,965 73 NATIONAL DATA CORP ...................... 2,135 50 * NATIONAL EQUIPMENT SERVICES, INC ........ 303 327 * NETWORK APPLIANCE, INC .................. 77,458 189 * NETWORKS ASSOCIATES, INC ................ 5,894 60 * NEW ERA OF NETWORKS, INC ................ 5,115 108 * NOVA CORP (GEORGIA) ..................... 2,598 800 * NOVELL, INC ............................. 25,100 3,241 OMNICOM GROUP, INC ...................... 271,231 50 * ONEMAIN.COM, INC ........................ 581 84 * OPEN MARKET, INC ........................ 5,076 29,600 * ORACLE CORP ............................. 2,416,100 400 * PARAMETRIC TECHNOLOGY CORP .............. 12,350 300 PAYCHEX, INC ............................ 15,262 50 * PEGASUS SYSTEMS, INC .................... 1,187 400 * PEOPLESOFT, INC ......................... 9,850 69 * PER SE TECHNOLOGIES, INC ................ 448 128 * PEREGRINE SYSTEMS, INC .................. 9,632 SHARES VALUE ------ -------- 128 * PEROT SYSTEMS CORP (CLASS A) ............ $ 2,880 88 * POLICY MANAGEMENT SYSTEMS CORP .......... 709 76 * PRICELINE.COM, INC ...................... 7,182 77 * PROGRESS SOFTWARE CORP .................. 1,588 50 * PROTECTION ONE, INC ..................... 84 50 * PROXYMED, INC ........................... 498 2,126 * PSINET, INC ............................. 118,790 50 * QUADRAMED CORP .......................... 343 76 * RARE MEDIUM GROUP, INC .................. 6,688 220 * RATIONAL SOFTWARE CORP .................. 19,126 160 * REALNETWORKS, INC ....................... 13,060 63 * REMEDY CORP ............................. 3,614 50 * RENT WAY, INC ........................... 868 50 * RENT-A-CENTER, INC ...................... 762 223 * ROBERT HALF INTERNATIONAL, INC .......... 8,933 50 ROLLINS, INC ............................ 768 101 * ROMAC INTERNATIONAL, INC ................ 1,451 90 * RSA SECURITY, INC ....................... 7,846 50 * SABRE GROUP HOLDINGS CORP ............... 2,387 71 * SAGA SYSTEMS, INC ....................... 2,476 50 * SANTA CRUZ OPERATION, INC ............... 859 66 * SAPIENT CORP ............................ 7,528 50 SHARED MEDICAL SYSTEMS CORP ............. 2,909 2,140 * SIEBEL SYSTEMS, INC ..................... 348,552 85 * SITEL CORP .............................. 706 127 * SNYDER COMMUNICATIONS, INC .............. 3,071 50 * SOFTNET SYSTEMS, INC .................... 1,731 103 SOTHEBYS HOLDINGS, INC (CLASS A) ........ 2,208 50 * SPORTSLINE.COM .......................... 2,887 50 * SPYGLASS, INC ........................... 4,068 197 * STERLING COMMERCE, INC .................. 8,594 83 * STRUCTURAL DYNAMICS RESEARCH CORP ....... 1,431 9,900 * SUN MICROSYSTEMS, INC ................... 932,456 276 * SUNGARD DATA SYSTEMS, INC ............... 8,556 61 * SVI HOLDINGS, INC ....................... 632 50 * SYKES ENTERPRISES, INC .................. 946 110 * SYMANTEC CORP ........................... 8,889 145 * SYNOPSYS, INC ........................... 6,280 80 * SYSTEMS & COMPUTER TECHNOLOGY CORP ...... 1,920 107 * TECHNOLOGY SOLUTIONS CO ................. 969 50 * TELETECH HOLDINGS, INC .................. 1,956 50 * THQ, INC ................................ 981 134 * TMP WORLDWIDE, INC ...................... 12,194 93 TOTAL SYSTEM SERVICES, INC .............. 1,476 81 * TRANSACTION SYSTEM ARCHITECTURE ......... 2,905 67 TRUE NORTH COMMUNICATIONS, INC .......... 2,680 99 * TYLER TECHNOLOGIES, INC ................. 587 50 * UNITED RENTALS, INC ..................... 728 140 * VALASSIS COMMUNICATIONS, INC ............ 4,541 169 * VERIO, INC .............................. 9,464 191 * VERISIGN, INC ........................... 45,828 3,450 * VERITAS SOFTWARE CORP ................... 581,971 77 * VERITY, INC ............................. 4,268 88 * VERTICALNET, INC ........................ 24,040 60 * VIGNETTE CORP ........................... 17,820 67 * WAVE SYSTEMS CORP (CLASS A) ............. 2,650 131 * WIND RIVER SYSTEMS, INC ................. 6,517 1,300 * YAHOO, INC .............................. 231,481 2,284 YOUNG & RUBICAM, INC .................... 95,071 ---------- 10,550,373 ---------- CHEMICALS AND ALLIED PRODUCTS--8.80% 3,695 ABBOTT LABORATORIES CO .................. 114,314 60 * ALKERMES, INC ........................... 8,572 337 ALLERGAN, INC ........................... 16,049 50 ALPHARMA, INC (CLASS A) ................. 1,893 217 * ALZA CORP ............................... 7,974 8,201 AMERICAN HOME PRODUCTS CORP ............. 405,949
B-31 See notes to financial statements.
SHARES VALUE ------ -------- CHEMICALS AND ALLIED PRODUCTS--(Continued) 2,400 * AMGEN, INC ................................. $ 142,950 50 * ANDRX CORP ................................. 4,987 602 AVON PRODUCTS, INC ......................... 15,802 131 * BIO-TECHNOLOGY GENERAL CORP ................ 2,071 373 * BIOGEN, INC ................................ 31,355 4,648 BRISTOL MYERS SQUIBB CO .................... 243,439 495 * CAREMARK RX, INC ........................... 1,949 50 * CELL PATHWAYS, INC ......................... 1,918 76 * CEPHALON, INC .............................. 4,807 120 * CHIRON CORP ................................ 7,192 97 CHURCH & DWIGHT CO, INC .................... 1,448 107 CK WITCO CORP .............................. 1,056 582 CLOROX CO .................................. 17,387 1,448 COLGATE PALMOLIVE CO ....................... 61,902 50 * COLUMBIA LABORATORIES, INC ................. 881 50 * COR THERAPEUTICS, INC ...................... 4,384 50 * COULTER PHARMACEUTICALS, INC ............... 2,150 50 * CYGNUS, INC ................................ 887 235 DIAL CORP .................................. 2,585 295 DU PONT (E.I.) DE NEMOURS & CO ............. 13,551 50 * DURA PHARMACEUTICALS, INC .................. 737 50 * DURAMED PHARMACEUTICALS, INC ............... 437 280 ECOLAB, INC ................................ 8,505 6,200 * ELAN CORP PLC ADR .......................... 246,062 91 * ENZON, INC ................................. 6,045 50 FERRO CORP ................................. 931 208 * FOREST LABORATORIES, INC ................... 14,716 69 * GENZYME CORP (GENERAL DIVISION) ............ 3,976 50 * GEORGIA GULF CORP .......................... 1,012 109 * GILEAD SCIENCES, INC .................... 7,813 89 * GRACE W.R. & CO ............................ 912 3,800 * GUILFORD PHARMACEUTICALS, INC .............. 139,412 60 * HEMISPHERX BIOPHARMA, INC .................. 1,061 115 * HUMAN GENOME SCIENCES, INC ................. 19,837 177 ICN PHARMACEUTICALS, INC ................... 4,391 96 * ICOS CORP .................................. 4,644 105 * IDEC PHARMACEUTICALS CORP .................. 13,577 91 * IDEXX LABORATORIES, INC .................... 2,542 71 * IMCLONE SYSTEMS, INC ....................... 9,585 187 * IMMUNEX CORP ............................... 39,877 76 * ISIS PHARMACEUTICALS, INC .................. 1,824 243 * IVAX CORP .................................. 6,834 3,741 JOHNSON & JOHNSON CO ....................... 264,909 136 JONES PHARMACEUTICAL, INC .................. 5,482 69 * KING PHARMACEUTICALS, INC .................. 3,217 217 LAUDER (ESTEE) CO (CLASS A) ................ 8,625 112 * LIGAND PHARMACEUTICALS CO (CLASS A) ........ 2,072 5,073 LILLY (ELI) & CO ........................... 310,404 97 * LIPOSOME CO, INC ........................... 1,418 50 * MACROCHEM CORP (DELAWARE) .................. 342 71 * MEDICIS PHARMACEUTICAL CORP (CLASS A) ...... 3,479 139 * MEDIMMUNE, INC ............................. 26,679 12,405 MERCK & CO, INC ............................ 738,872 92 * MILLENNIUM PHARMACEUTICALS, INC ............ 21,666 1,576 MONSANTO CO ................................ 62,646 271 MYLAN LABORATORIES, INC .................... 7,554 76 * ORGANOGENESIS, INC ......................... 1,372 10,916 PFIZER, INC ................................ 383,424 3,764 PROCTER & GAMBLE CO ........................ 199,727 50 * REVLON, INC (CLASS A) ...................... 518 84 * REXALL SUNDOWN, INC ........................ 1,249 11,649 SCHERING-PLOUGH CORP ....................... 436,109 168 * SEPRACOR, INC .............................. 18,858 50 * SICOR, INC ................................. 540 50 * SUPERGEN, INC .............................. 3,303 50 * TECHNE CORP ................................ 3,856 SHARES VALUE ------ -------- 60 * THERAGENICS CORP ........................... $ 930 50 * TRANSKARYOTIC THERAPIES, INC ............... 3,471 81 * TRIANGLE PHARMACEUTICALS, INC .............. 1,270 50 * VENTIV HEALTH, INC ......................... 468 50 * VICAL, INC ................................. 2,407 3,833 * WARNER-LAMBERT CO .......................... 354,073 221 * WATSON PHARMACEUTICALS, INC ................ 8,301 ----------- 4,529,423 ----------- COMMUNICATIONS--12.21% 100 * ADELPHIA COMMUNICATIONS CORP (CLASS A) .................................. 4,981 60 * ADVANCED RADIO TELECOM CORP ................ 2,621 50 * AERIAL COMMUNICATIONS, INC ................. 2,634 242 * ALLEGIANCE TELECOM, INC .................... 23,927 277 ALLTEL CORP ................................ 18,853 50 * AMERICAN MOBILE SATELLITE CORP ............. 2,015 7,900 * AMFM, INC .................................. 450,300 6,100 AT & T CORP ................................ 331,306 12,639 * AT & T CORP--LIBERTY MEDIA GROUP (CLASS A) . 665,127 2,742 BROADWING, INC ............................. 106,766 205 * CABLEVISION SYSTEMS CORP (CLASS A) ......... 12,325 82 * CAPROCK COMMUNICATIONS CORP ................ 4,264 11,698 * CBS CORP ................................... 671,172 50 * CITADEL COMMUNICATIONS CORP ................ 2,006 1,154 * CLEAR CHANNEL COMMUNICATIONS, INC .......... 71,475 50 * COM21, INC ................................. 3,525 1,700 COMCAST CORP (CLASS A) SPECIAL ............. 68,743 105 * CONCENTRIC NETWORK CORP .................... 6,030 197 * COVAD COMMUNICATIONS GROUP ................. 19,133 165 * COX COMMUNICATIONS, INC (CLASS A) .......... 7,435 50 * CUMULUS MEDIA, INC ......................... 1,278 127 * E.SPIRE COMMUNICATIONS, INC ................ 1,833 114 * EMMIS COMMUNICATIONS (CLASS A) ............. 3,975 50 * ENTERCOM COMMUNICATIONS CORP ............... 2,293 5,400 ERICSSON TELEFON (LM) SERIES B ADR ......... 543,375 400 * EXODUS COMMUNICATIONS, INC ................. 65,825 335 * FOX ENTERTAINMENT GROUP, INC ............... 8,584 447 * GLOBAL TELESYSTEMS GROUP, INC .............. 13,577 104 * HISPANIC BROADCASTING CORP ................. 10,582 118 * ICG COMMUNICATIONS, INC .................... 4,196 50 * IDT CORP ................................... 1,731 4,622 * INFINITY BROADCASTING CORP (CLASS A) ....... 153,103 120 * INTERMEDIA COMMUNICATIONS, INC ............. 8,917 50 * INTERNATIONAL FIBERCOM, INC ................ 1,450 120 * ITC DELTACOM, INC .......................... 5,017 50 * LEAP WIRELESS INTERNATIONAL, INC ........... 4,506 500 * LEVEL 3 COMMUNICATIONS, INC ................ 65,093 114 * LIBERTY DIGITAL, INC (CLASS A) ............. 5,999 19,918 LUCENT TECHNOLOGIES, INC ................... 1,346,954 9,800 * MCI WORLDCOM, INC .......................... 457,537 271 * MCLEODUSA, INC (CLASS A) ................... 28,319 315 * MEDIA ONE GROUP, INC ....................... 24,609 268 * METROMEDIA FIBER NETWORK (CLASS A) ......... 22,378 50 * MGC COMMUNICATIONS, INC .................... 3,415 1,600 * NEXTEL COMMUNICATIONS, INC (CLASS A) ....... 255,400 178 * NEXTLINK COMMUNICATIONS, INC ............... 21,949 327 * NTL, INC ................................... 34,355 212 * PAGING NETWORK, INC ........................ 1,046 50 * PANAMSAT CORP .............................. 2,753 74 * PAXSON COMMUNICATIONS CORP ................. 703 62 * POWERTEL, INC .............................. 5,487 108 * PRICE COMMUNICATIONS CORP .................. 2,632 71 * PRIMUS TELECOMMUNICATIONS GROUP, INC ....... 3,359 87 * PTEK HOLDINGS, INC ......................... 800 303 * QWEST COMMUNICATIONS INTERNATIONAL , INC ....................................... 15,964 1,402 * RCN CORP ................................... 93,934
B-32 See notes to financial statements.
SHARES VALUE ------ -------- COMMUNICATIONS--(Continued) 138 * RHYTHMS NETCONNECTIONS, INC ................. $ 5,571 5,054 SBC COMMUNICATIONS, INC ..................... 212,268 50 * SIRIUS SATELLITE RADIO, INC ................. 2,962 76 * SPRINT CORP (PCS GROUP) ..................... 4,536 90 * STAR TELECOMMUNICATIONS, INC ................ 624 92 * TALK.COM, INC ............................... 1,391 50 * TELIGENT, INC ............................... 4,550 94 * TV GUIDE, INC ............................... 5,507 545 U.S. WEST, INC .............................. 38,354 138 * UNITEDGLOBALCOM, INC (CLASS A) .............. 15,042 196 * UNIVISION COMMUNICATIONS, INC ............... 18,791 615 * VIACOM, INC (CLASS B) ....................... 33,248 3,000 * VIATEL, INC ................................. 210,187 188 * VOICESTREAM WIRELESS CORP ................... 22,066 50 * WAVO CORP ................................... 387 113 * WESTERN WIRELESS CORP (CLASS A) ............. 6,215 73 * WINSTAR COMMUNICATIONS, INC ................. 4,015 ------------ 6,283,280 ------------ DEPOSITORY INSTITUTIONS--0.52% 50 * CENTENNIAL BANCORP .......................... 465 50 CHITTENDEN CORP ............................. 1,325 94 COMMUNITY FIRST BANKSHARES, INC ............. 1,304 500 * CONCORD EFS, INC ............................ 8,312 400 FIFTH THIRD BANCORP ......................... 18,350 50 FIRST BANCORP (PUERTO RICO) ................. 862 88 FIRST FINANCIAL BANCORP ..................... 1,556 6,032 FIRSTAR CORP ................................ 105,937 106 HUDSON UNITED BANCORP ....................... 2,047 50 * IMPERIAL BANCORP ............................ 1,328 1,733 MBNA CORP ................................... 38,234 50 MERCHANTS NEW YORK BANCORP, INC ............. 818 200 NATIONAL COMMERCE BANCORP ................... 3,387 50 * NETBANK, INC ................................ 606 138 NORTHERN TRUST CORP ......................... 7,219 61 PACIFIC CAPITAL BANCORP ..................... 1,525 353 PROVIDIAN FINANCIAL CORP .................... 22,900 63 S & T BANCORP, INC .......................... 1,102 93 * S1 CORP ..................................... 9,765 169 SKY FINANCIAL GROUP, INC .................... 2,439 70 * SOUTHWEST BANCORP OF TEXAS, INC ............. 1,246 179 STATE STREET CORP ........................... 12,104 65 STERLING BANCSHARES, INC .................... 568 310 SYNOVUS FINANCIAL CORP ...................... 4,630 133 TRUSTCO BANK CORP ........................... 1,496 50 U.S. TRUST CORP ............................. 8,768 106 UNITED BANKSHARES, INC ...................... 1,868 105 W HOLDING CO, INC ........................... 892 104 ZIONS BANCORP ............................... 3,874 ------------ 264,927 ------------ EATING AND DRINKING PLACES--0.16% 50 APPLEBEES INTERNATIONAL, INC ................ 1,306 68 * CEC ENTERTAINMENT, INC ...................... 1,683 84 CKE RESTAURANTS, INC ........................ 530 50 * CONSOLIDATED PRODUCTS, INC .................. 475 50 * IHOP CORP (NEW) ............................. 690 102 * JACK IN THE BOX, INC ........................ 2,071 203 MARRIOTT INTERNATIONAL (CLASS A) ............ 5,468 1,628 MCDONALD'S CORP ............................. 51,892 149 * OUTBACK STEAKHOUSE, INC ..................... 3,892 50 * PAPA JOHNS INTERNATIONAL, INC ............... 1,372 63 RUBY TUESDAY, INC ........................... 1,039 50 SODEXHO MARRIOTT SERVICES, INC .............. 546 50 * SONIC CORP .................................. 1,237 50 * THE CHEESECAKE FACTORY CO ................... 1,571 197 * TRICON GLOBAL RESTAURANTS, INC .............. 5,466 SHARES VALUE ------ -------- 93 * U.S. FOODSERVICE, INC ....................... $ 2,348 135 VIAD CORP ................................... 2,894 ------------ 84,480 ------------ EDUCATIONAL SERVICES--0.02% 191 * APOLLO GROUP, INC (CLASS A) ................. 4,261 149 * DEVRY, INC .................................. 2,952 50 * EDUCATION MANAGEMENT CORP ................... 703 61 * SYLVAN LEARNING SYSTEMS, INC ................ 968 ------------ 8,884 ------------ ELECTRIC, GAS, AND SANITARY SERVICES--0.21% 358 * AES CORP .................................... 26,134 341 * ALLIED WASTE INDUSTRIES, INC ................ 2,003 111 * CALPINE CORP ................................ 12,321 171 * NEWPARK RESOURCES, INC ...................... 1,239 92 * REPUBLIC SERVICES, INC (CLASS A) ............ 1,006 50 * SOUTHERN UNION CO ........................... 665 1,539 WASTE MANAGEMENT, INC ....................... 21,546 832 WILLIAMS COS, INC ........................... 40,508 ------------ 105,422 ------------ ELECTRONIC AND OTHER ELECTRIC EQUIPMENT--23.46% 90 * ACTV, INC ................................... 2,964 700 * ADC TELECOMMUNICATIONS, INC ................. 37,625 50 * ADTRAN, INC ................................. 3,975 179 * ADVANCED FIBRE COMMUNICATIONS, INC .......... 14,286 50 * AEROFLEX, INC ............................... 3,500 50 * ALPHA INDUSTRIES, INC ....................... 6,800 400 * ALTERA CORP ................................. 37,725 172 * AMERICAN POWER CONVERSION CORP .............. 5,719 4,138 * AMERICAN TOWER SYSTEMS (CLASS A) ............ 226,814 50 * AMERICAN XTAL TECHNOLOGY, INC ............... 2,025 80 AMETEK, INC ................................. 1,340 205 * AMKOR TECHNOLOGY, INC ....................... 10,403 63 * AMPEX CORP (CLASS A) ........................ 224 67 * ANADIGICS, INC .............................. 6,842 4,333 * ANALOG DEVICES, INC ......................... 749,338 68 * ANCOR COMMUNICATIONS, INC ................... 3,731 50 * ANDREW CORP ................................. 1,428 60 * ANTEC CORP .................................. 2,790 1,426 * APPLIED MICRO CIRCUITS CORP ................. 414,966 83 * ARTESYN TECHNOLOGIES, INC ................... 1,691 80 * ASPECT TELECOMMUNICATIONS CORP .............. 4,880 3,047 * ATMEL CORP .................................. 165,871 50 * BENCHMARK ELECTRONICS, INC .................. 1,700 266 * BROADCOM CORP (CLASS A) ..................... 64,654 96 * BURR BROWN CORP ............................. 5,712 61 * C-COR.NET CORP .............................. 2,623 5,541 * CIENA CORP .................................. 902,490 99 * COMMSCOPE, INC .............................. 4,232 173 * COMVERSE TECHNOLOGY, INC .................... 40,417 400 * CONEXANT SYSTEMS, INC ....................... 35,225 62 * CREE, INC ................................... 12,028 68 CTS CORP .................................... 3,655 152 * CYPRESS SEMICONDUCTOR CORP .................. 7,315 146 DALLAS SEMICONDUCTOR CORP ................... 6,579 169 * DIGITAL MICROWAVE CORP ...................... 6,675 91 * DII GROUP, INC .............................. 10,368 81 * E-TEK DYNAMICS, INC ......................... 23,085 111 * ECHOSTAR COMMUNICATIONS CORP (CLASS A) .................................. 15,318 50 * ELECTRO SCIENTIFIC INDUSTRIES, INC .......... 3,200 156 * ELOT, INC ................................... 1,111 15,643 GENERAL ELECTRIC CO ......................... 2,059,987 75 * GENERAL SEMICONDUCTOR, INC .................. 1,500 50 * GLOBIX CORP ................................. 3,100 66 * HARMONIC LIGHTWAVES, INC .................... 9,376 50 HELIX TECHNOLOGY CORP ....................... 3,637
B-33 See notes to financial statements.
SHARES VALUE ------ -------- ELECTRONIC AND OTHER ELECTRIC EQUIPMENT--(Continued) 50 * HUTCHINSON TECHNOLOGY, INC ............... $ 851 22,800 INTEL CORP ............................... 2,740,275 50 INTER-TEL, INC ........................... 2,153 121 * INTERDIGITAL COMMUNICATIONS CORP ......... 3,894 50 * INTERNATIONAL RECTIFIER CORP ............. 2,156 80 * INTERVOICE-BRITE, INC .................... 2,980 124 * JABIL CIRCUIT, INC ....................... 11,067 1,500 * JDS UNIPHASE CORP ........................ 414,000 74 * KOPIN CORP ............................... 6,105 81 * L-3 COMMUNICATIONS HOLDINGS, INC ......... 3,609 50 * LASERSIGHT, INC .......................... 465 113 * LATTICE SEMICONDUCTOR CORP ............... 8,934 380 LINEAR TECHNOLOGY CO ..................... 38,593 6,880 * LSI LOGIC CORP ........................... 607,160 300 * MAXIM INTEGRATED PRODUCTS ................ 21,037 189 MAYTAG CO ................................ 5,221 62 METHODE ELECTRONICS, INC (CLASS A) ....... 3,534 71 * MICREL, INC .............................. 8,559 190 * MICROCHIP TECHNOLOGY, INC ................ 13,145 86 * MICRON TECHNOLOGY, INC ................... 9,169 79 * MMC NETWORKS, INC ........................ 4,285 90 MOLEX, INC ............................... 5,640 655 * MOTOROLA, INC ............................ 112,700 63 * NEOMAGIC CORP ............................ 346 1,300 * NOKIA OYJ ADR ............................ 279,256 50 * NVIDIA CORP .............................. 5,925 113 * P-COM, INC ............................... 2,641 168 * PAIRGAIN TECHNOLOGIES, INC ............... 3,213 50 * PHOTRONICS, INC .......................... 2,150 50 * PLANTRONICS, INC ......................... 4,131 50 * PLEXUS CORP .............................. 3,303 838 * PMC-SIERRA, INC .......................... 205,676 50 * POLYCOM, INC ............................. 5,850 50 * POWER INTEGRATIONS, INC .................. 2,975 182 * QLOGIC CORP .............................. 32,543 2,700 * QUALCOMM, INC ............................ 367,537 50 * RAMBUS, INC .............................. 21,050 68 * RAYOVAC CORP ............................. 1,292 128 * RF MICRO DEVICES, INC .................... 21,336 1,458 * SANMINA CORP ............................. 185,257 61 * SAWTEK, INC .............................. 3,126 196 * SCI SYSTEMS, INC ......................... 9,016 174 SCIENTIFIC-ATLANTA, INC .................. 23,566 50 * SDL, INC ................................. 21,359 79 * SEMTECH CORP ............................. 5,218 50 * SIPEX CORP ............................... 1,793 50 * SLI, INC ................................. 653 6,144 * SOLECTRON CORP ........................... 219,648 100 * SYCAMORE NETWORKS, INC ................... 17,000 68 * TEKELEC .................................. 3,276 3,100 * TELLABS, INC ............................. 176,700 5,968 TEXAS INSTRUMENTS, INC ................... 1,086,176 125 * TITAN CORP ............................... 5,398 96 * TRANSWITCH CORP .......................... 9,702 74 * TRIQUINT SEMICONDUCTOR, INC .............. 8,177 50 * VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC ......................... 3,303 50 * VICOR CORP ............................... 1,021 391 * VITESSE SEMICONDUCTOR CORP ............... 34,236 83 * WEBLINK WIRELESS, INC .................... 1,644 50 * WESTELL TECHNOLOGIES, INC (CLASS A) ...... 1,950 112 * WORLD ACCESS, INC ........................ 3,010 4,000 * XILINX, INC .............................. 333,250 ------------ 12,068,159 ------------ SHARES VALUE ------ -------- ENGINEERING AND MANAGEMENT SERVICES--0.13% 143 * CATALYTICA, INC .......................... $ 1,588 50 * CELGENE CORP ............................. 8,425 146 * COVANCE, INC ............................. 1,533 50 * FIRST CONSULTING GROUP, INC .............. 912 202 GARTNER GROUP, INC (CLASS A) ............. 2,840 61 * INCYTE PHARMACEUTICALS, INC .............. 12,398 50 * LASON, INC ............................... 433 50 * MARKETING SERVICES GROUP ................. 987 92 * NAVIGANT CONSULTING CO ................... 954 63 * PAREXEL INTERNATIONAL CORP ............... 574 50 * PHARMACEUTICAL PRODUCT DEVELOPMENT ....... 850 89 * PROFIT RECOVERY GROUP INTERNATIONAL ...... 1,902 285 * QUINTILES TRANSNATIONAL CORP ............. 5,468 91 * RENAISSANCE WORLDWIDE, INC ............... 563 731 SERVICEMASTER CO ......................... 8,726 50 * STAFF LEASING, INC ....................... 303 85 * TETRA TECH, INC .......................... 2,125 50 * VALENCE TECHNOLOGY, INC .................. 1,700 275 * WHITTMAN HART, INC ....................... 13,475 ------------ 65,756 ------------ FABRICATED METAL PRODUCTS--0.16% 2,665 GILLETTE CO .............................. 79,783 ------------ FOOD AND KINDRED PRODUCTS--1.06% 50 * AMERICAN ITALIAN PASTA CO (CLASS A) ...... 906 322 ANHEUSER BUSCH COS, INC .................. 18,273 50 * BERINGER WINE ESTATES HOLDINGS, INC (CLASS B) ............................... 1,656 365 BESTFOODS, INC ........................... 14,075 455 CAMPBELL SOUP CO ......................... 13,166 6,467 COCA COLA CO ............................. 288,994 594 COCA COLA ENTERPRISES, INC ............... 12,474 98 * DEL MONTE FOODS CO ....................... 986 374 GENERAL MILLS, INC ....................... 11,734 50 * HAIN FOOD GROUP, INC ..................... 1,371 227 HEINZ (H.J.) CO .......................... 7,647 50 * INTERNATIONAL HOME FOODS, INC ............ 793 50 * KEEBLER FOODS CO ......................... 1,243 242 KELLOGG CO ............................... 5,550 248 PEPSI BOTTLING GROUP, INC ................ 4,913 3,616 PEPSICO, INC ............................. 110,966 152 QUAKER OATS CO ........................... 7,096 166 RALSTON PURINA CO ........................ 4,056 2,003 SARA LEE CORP ............................ 29,168 83 * SMITHFIELD FOODS, INC .................... 1,328 50 * TRIARC COS, INC .......................... 1,000 84 WHITMAN CORP ............................. 945 118 WRIGLEY (WM) JR CO ....................... 7,286 ------------ 545,626 ------------ FOOD STORES--0.64% 173 * 7-ELEVEN, INC ............................ 605 196 ALBERTSONS, INC .......................... 4,704 2,061 * KROGER CO ................................ 30,399 8,087 * SAFEWAY, INC ............................. 283,550 200 * STARBUCKS CORP ........................... 7,125 65 * WHOLE FOODS MARKET, INC .................. 2,620 50 * WILD OATS MARKETS, INC ................... 887 ------------ 329,890 ------------ FURNITURE AND FIXTURES--0.43% 94 * ETHAN ALLEN INTERIORS, INC ............... 2,132 99 FURNITURE BRANDS INTERNATIONAL, INC ...... 1,584 196 MILLER (HERMAN), INC ..................... 4,042 9,892 NEWELL RUBBERMAID, INC ................... 212,678 ------------ 220,436 ------------
B-34 See notes to financial statements.
SHARES VALUE ------ -------- FURNITURE AND HOMEFURNISHINGS STORES--0.62% 287 * BED BATH & BEYOND, INC ...................... $ 6,780 415 * BEST BUY, INC ............................... 25,911 373 CIRCUIT CITY STORES-CIRCUIT CITY GROUP ...... 15,945 50 * GUITAR CENTER, INC .......................... 462 98 * LINENS N THINGS, INC ........................ 2,076 75 * MUSICLAND STORES CORP ....................... 520 212 PIER 1 IMPORTS, INC ......................... 1,762 6,580 TANDY CORP .................................. 262,377 50 * TRANS WORLD ENTERTAINMENT CORP .............. 518 108 * WILLIAMS-SONOMA, INC ........................ 2,443 ------------ 318,794 ------------ GENERAL BUILDING CONTRACTORS--0.00% 50 * BLOUNT INTERNATIONAL, INC ................... 637 50 CENTEX CORP ................................. 906 ------------ 1,543 ------------ GENERAL MERCHANDISE STORES--0.92% 50 * AMES DEPARTMENT STORES, INC ................. 881 111 CASEYS GENERAL STORES, INC .................. 943 120 * CONSOLIDATED STORES CORP .................... 1,365 50 * COST PLUS, INC .............................. 1,006 800 * COSTCO WHOLESALE CORP ....................... 35,300 346 DOLLAR GENERAL CORP ......................... 6,876 154 * DOLLAR TREE STORES, INC ..................... 6,169 362 FAMILY DOLLAR STORES, INC ................... 5,837 366 * KOHLS CORP .................................. 30,423 70 * NEIMAN MARCUS GROUP, INC (CLASS A) .......... 1,518 118 * SAKS, INC ................................... 1,541 902 * TARGET CORP ................................. 54,852 6,760 WAL-MART STORES, INC ........................ 324,057 ------------ 470,768 ------------ HEALTH SERVICES--0.25% 50 * ADVANCE PARADIGM, INC ....................... 581 50 * ENZO BIOCHEMICAL, INC ....................... 4,328 50 * EXPRESS SCRIPTS, INC ........................ 1,700 559 * HEALTH MANAGEMENT ASSOCIATES, INC (CLASS A) NEW .............................. 6,638 114 * HEALTHSOUTH CORP ............................ 577 72 HOOPER HOLMES, INC .......................... 2,448 63 * LASER VISION CENTERS, INC ................... 555 72 * LCA-VISION, INC ............................. 414 50 * LIFEPOINT HOSPITALS, INC .................... 771 50 * LINCARE HOLDINGS, INC ....................... 1,087 101 * ORTHODONTIC CENTERS OF AMERICA, INC ......... 2,007 111 * RENAL CARE GROUP, INC ....................... 2,268 5,000 * TENET HEALTHCARE CORP ....................... 103,437 186 * TOTAL RENAL CARE HOLDINGS, INC .............. 569 50 * TRIAD HOSPITALS, INC ........................ 737 85 * US ONCOLOGY, INC ............................ 334 ------------ 128,451 ------------ HEAVY CONSTRUCTION, EXCEPT BUILDING--0.02% 95 * DYCOM INDUSTRIES, INC ....................... 4,767 50 * INSITUFORM TECHNOLOGIES, INC (CLASS A) ...... 1,381 50 * MASTEC, INC ................................. 3,365 ------------ 9,513 ------------ HOLDING AND OTHER INVESTMENT OFFICES--0.03% 129 BOSTON PROPERTIES, INC ...................... 3,918 50 CHARLES E. SMITH RESIDENTIAL REALTY ......... 1,718 60 COUSINS PROPERTIES, INC ..................... 2,171 50 HEALTH CARE PROPERTY INVESTORS, INC ......... 1,225 308 MEDITRUST CORP PAIRED ....................... 885 213 STARWOOD FINANCIAL TRUST .................... 3,660 75 WASHINGTON REAL ESTATE INVESTMENT TRUST ...................................... 1,134 ------------ 14,711 ------------ SHARES VALUE ------ -------- HOTELS AND OTHER LODGING PLACES--0.01% 129 * CHOICE HOTELS INTERNATIONAL, INC ............ $ 2,112 88 * EXTENDED STAY AMERICA, INC .................. 616 394 HILTON HOTELS CORP .......................... 2,610 91 STARWOOD HOTELS & RESORTS WORLDWIDE ......... 1,905 76 * SUNTERRA CORP ............................... 213 ------------ 7,456 ------------ INDUSTRIAL MACHINERY AND EQUIPMENT--18.32% 500 * 3COM CORP ................................... 34,468 50 * 3DFX INTERACTIVE, INC ....................... 628 184 * ADAPTEC, INC ................................ 8,153 50 * ADVANCED DIGITAL INFORMATION CORP ........... 4,506 50 * APEX, INC ................................... 2,181 940 * APPLIED MATERIALS, INC ...................... 181,478 89 APPLIED POWER, INC (CLASS A) ................ 2,275 50 * ASYST TECHNOLOGIES, INC ..................... 2,950 50 * ATMI, INC ................................... 2,815 50 * AUSPEX SYSTEMS, INC ......................... 756 50 BAKER HUGHES, INC ........................... 1,362 200 BLACK & DECKER CORP ......................... 6,387 50 * BLACK BOX CORP .............................. 3,628 101 * C-CUBE MICROSYSTEMS, INC .................... 9,898 69 * CABLETRON SYSTEMS, INC ...................... 3,307 22,600 * CISCO SYSTEMS, INC .......................... 3,082,075 50 * CMI CORP .................................... 243 10,103 COMPAQ COMPUTER CORP ........................ 287,935 129 * CONCURRENT COMPUTER CORP .................... 2,515 15,100 * DELL COMPUTER CORP .......................... 773,875 50 DONALDSON CO, INC ........................... 1,178 10,528 * EMC CORP .................................... 1,373,246 81 * EMULEX CORP ................................. 17,455 50 * ETEC SYSTEMS, INC ........................... 6,209 50 * EXTREME NETWORKS, INC ....................... 5,603 100 * FOUNDRY NETWORKS, INC ....................... 20,118 373 * GATEWAY, INC ................................ 23,312 2,547 HEWLETT-PACKARD CO .......................... 373,772 9,181 INTERNATIONAL BUSINESS MACHINES CORP ........ 964,578 670 * IOMEGA CORP ................................. 2,638 71 JLG INDUSTRIES, INC ......................... 550 73 * LAM RESEARCH CORP ........................... 11,857 317 * LEXMARK INTERNATIONAL GROUP (CLASS A) ....... 40,932 50 MANITOWOC, INC .............................. 1,306 169 * MAXTOR CORP ................................. 1,964 50 * MERCURY COMPUTER SYSTEMS, INC ............... 2,481 75 * MICRON ELECTRONICS, INC ..................... 1,443 50 * MICROS SYSTEMS, INC ......................... 2,628 76 * MTI TECHNOLOGY CORP ......................... 3,866 60 * NATIONAL INSTRUMENTS CORP ................... 2,801 8,272 * NOVELLUS SYSTEMS, INC ....................... 578,523 623 PITNEY BOWES, INC ........................... 28,735 62 * PRESSTEK, INC ............................... 1,488 50 * PRI AUTOMATION, INC ......................... 4,381 50 * QUANTUM CORP -DLT & STORAGE SYSTEMS GROUP ... 603 126 * QUANTUM CORP -HARD DISK DRIVE GROUP ......... 1,118 75 ROPER INDUSTRIES, INC ....................... 2,385 122 * SANDISK CORP ................................ 15,349 152 * SEAGATE TECHNOLOGY, INC ..................... 9,766 50 * SMITH INTERNATIONAL, INC .................... 3,225 220 SYMBOL TECHNOLOGIES, INC .................... 21,766 50 * TEREX CORP .................................. 596 31,000 TYCO INTERNATIONAL LTD ...................... 1,457,000 770 * UNISYS CORP ................................. 20,741 62 * VISUAL NETWORKS, INC ........................ 5,138 159 * WESTERN DIGITAL CORP ........................ 824 66 * XIRCOM, INC ................................. 3,003 61 * ZEBRA TECHNOLOGY CORP ....................... 3,839 ------------ 9,427,852 ------------
B-35 See notes to financial statements.
SHARES VALUE ------ -------- INSTRUMENTS AND RELATED PRODUCTS--1.64% 50 * AFFYMETRIX, INC ............................ $ 12,881 75 BAUSCH & LOMB, INC ......................... 3,923 159 BAXTER INTERNATIONAL, INC .................. 8,913 67 BECKMAN COULTER, INC ....................... 3,492 425 BECTON DICKINSON & CO ...................... 13,600 249 BIOMET, INC ................................ 7,750 676 * BOSTON SCIENTIFIC CORP ..................... 14,322 86 * COGNEX CORP ................................ 4,692 50 * CREDENCE SYSTEMS CORP ...................... 6,943 50 * CYBERONICS, INC ............................ 1,125 70 * CYMER, INC ................................. 4,060 89 * CYTYC CORP ................................. 5,061 50 * DIONEX CORP ................................ 1,609 50 * ECLIPSE SURGICAL TECHNOLOGY, INC ........... 484 67 * GENRAD, INC ................................ 1,025 1,651 * GUIDANT CORP ............................... 117,117 50 * HAEMONETICS CORP ........................... 1,187 286 * KLA-TENCOR CORP ............................ 26,061 106 * LTX CORP ................................... 5,260 87 * MEDICAL MANAGER CORP ....................... 5,388 6,815 MEDTRONIC, INC ............................. 348,416 50 MENTOR CORP ................................ 1,468 96 * METTLER-TOLEDO INTERNATIONAL, INC .......... 3,600 112 MILLIPORE CORP ............................. 6,909 50 * MINIMED, INC ............................... 6,075 66 * OAKLEY, INC ................................ 594 515 PE CORP-PE BIOSYSTEMS GROUP ................ 59,192 50 PERKINELMER, INC ........................... 3,628 50 * PINNACLE SYSTEMS, INC ...................... 3,046 75 * RESPIRONICS, INC ........................... 1,162 61 * ST. JUDE MEDICAL, INC ...................... 1,555 168 * STERIS CORP ................................ 1,722 178 STRYKER CORP ............................... 9,489 116 * SUMMIT TECHNOLOGY, INC ..................... 1,044 115 * SUNRISE TECHNOLOGY INTERNATIONAL, INC ...... 869 258 * SYBRON INTERNATIONAL CORP .................. 6,659 368 * TERADYNE, INC .............................. 33,120 50 * THERMO ELECTRON CORP ....................... 1,290 50 * TRIMBLE NAVIGATION LTD ..................... 1,475 50 * VARIAN, INC ................................ 2,153 141 * VISX, INC .................................. 2,273 155 * WATERS CORP ................................ 15,703 50 * WESLEY JESSEN VISIONCARE, INC .............. 1,290 3,650 XEROX CORP ................................. 88,512 ------------ 846,137 ------------ INSURANCE AGENTS, BROKERS AND SERVICE--0.01% 90 CRAWFORD & CO (CLASS B) .................... 1,158 101 * FIRST HEALTH GROUP CORP .................... 2,613 50 GALLAGHER (ARTHUR J.) & CO ................. 2,384 ------------ 6,155 ------------ INSURANCE CARRIERS--0.33% 116 AFLAC, INC ................................. 4,074 403 * AMERICAN INTERNATIONAL GROUP, INC .......... 33,474 2,600 CITIGROUP, INC ............................. 127,237 72 HSB GROUP, INC ............................. 1,624 50 * MID ATLANTIC MEDICAL SERVICES, INC ......... 475 202 * OXFORD HEALTH PLANS, INC ................... 2,966 ------------ 169,850 ------------ LEATHER AND LEATHER PRODUCTS--0.00% 94 STRIDE RITE CORP ........................... 546 ------------ LEGAL SERVICES--0.00% 50 * PREPAID LEGAL SERVICES, INC ................ 1,425 ------------ SHARES VALUE ------ -------- LUMBER AND WOOD PRODUCTS--0.00% 83 * CHAMPION ENTERPRISES, INC .................. $ 456 50 * PALM HARBOR HOMES, INC ..................... 634 ------------ 1,090 ------------ METAL MINING--0.02% 324 * BATTLE MOUNTAIN GOLD CO .................... 668 346 * FREEPORT-MCMORAN COPPER & GOLD, INC (CLASS B) ................................. 4,519 94 * STILLWATER MINING CO ....................... 4,136 ------------ 9,323 ------------ MISCELLANEOUS MANUFACTURING INDUSTRIES--0.02% 86 * BLYTH INDUSTRIES, INC ...................... 1,918 75 CALLAWAY GOLF CO ........................... 984 50 * IDENTIX, INC ............................... 1,125 50 JOSTENS, INC ............................... 1,196 406 MATTEL, INC ................................ 3,654 50 * WMS INDUSTRIES, INC ........................ 575 ------------ 9,452 ------------ MISCELLANEOUS REPAIR SERVICES--0.00% 50 * ENCOMPASS SERVICES CORP .................... 328 ------------ MISCELLANEOUS RETAIL--0.34% 400 * AMAZON.COM, INC ............................ 26,750 61 * BARNES & NOBLE, INC ........................ 1,071 50 * BARNESANDNOBLE.COM, INC .................... 450 87 * BORDERS GROUP, INC ......................... 1,239 61 * CDW COMPUTER CENTERS, INC .................. 3,892 973 CVS CORP ................................... 29,615 50 * DUANE READE, INC ........................... 1,100 50 * E4L, INC ................................... 109 50 * EGGHEAD.COM, INC ........................... 484 295 * HANOVER DIRECT, INC ........................ 774 50 * INSIGHT ENTERPRISES, INC ................... 1,518 625 * OFFICE DEPOT, INC .......................... 6,523 50 * OFFICEMAX, INC ............................. 312 102 OMNICARE, INC .............................. 1,064 277 * PETSMART, INC .............................. 908 60 * SCHEIN (HENRY), INC ........................ 975 65 * SHOP AT HOME, INC .......................... 641 1,100 * STAPLES, INC ............................... 21,312 102 * SUNGLASS HUT INTERNATIONAL, INC ............ 714 138 TIFFANY & CO ............................... 9,228 93 * VALUEVISION INTERNATIONAL, INC ............. 4,312 2,493 WALGREEN CO ................................ 61,078 ------------ 174,069 ------------ MOTION PICTURES--1.13% 50 * AMC ENTERTAINMENT, INC ..................... 328 108 * CNET NETWORKS, INC ......................... 7,317 5,184 DISNEY (WALT) CO ........................... 182,088 78 HOLLYWOOD ENTERTAINMENT CORP ............... 619 2,912 TIME WARNER, INC ........................... 247,520 17,000 TOEI CO .................................... 145,017 ------------ 582,889 ------------ NONDEPOSITORY INSTITUTIONS--0.37% 646 AMERICAN EXPRESS CO ........................ 81,840 186 * AMERICREDIT CORP ........................... 2,139 553 ASSOCIATES FIRST CAPITAL CORP .............. 8,917 490 CAPITAL ONE FINANCIAL CORP ................. 18,038 61 DORAL FINANCIAL CORP ....................... 545 401 FEDERAL NATIONAL MORTGAGE ASSOCIATION ............................... 20,075 148 * FINET.COM, INC ............................. 319 1,080 FREDDIE MAC ................................ 40,702
B-36 See notes to financial statements.
SHARES VALUE ------ -------- NONDEPOSITORY INSTITUTIONS--(Continued) 142 HOUSEHOLD INTERNATIONAL, INC ................... $ 4,650 96 METRIS COS, INC ................................ 2,616 50 * SIERRACITIES, INC .............................. 840 395 SLM HOLDINGS CORP .............................. 11,652 50 * UNICAPITAL CORP ................................ 106 ------------ 192,439 ------------ OIL AND GAS EXTRACTION--0.14% 62 ANADARKO PETROLEUM CORP ........................ 1,922 101 APACHE CORP .................................... 4,115 50 BERRY PETROLEUM CO (CLASS A) ................... 818 84 * CHESAPEAKE ENERGY CORP ......................... 236 104 CROSS TIMBERS OIL CO ........................... 1,196 50 DEVON ENERGY CORP (NEW) ........................ 2,203 50 DIAMOND OFFSHORE DRILLING, INC ................. 1,687 95 ENSCO INTERNATIONAL, INC ....................... 2,909 65 * FOREST OIL CORP ................................ 593 50 * FRIEDE GOLDMAN HALTER, INC ..................... 325 104 * GLOBAL INDUSTRIES LTD .......................... 1,423 50 * GLOBAL MARINE, INC ............................. 1,128 50 * GREY WOLF, INC ................................. 209 571 HALLIBURTON CO ................................. 22,590 60 * HANOVER COMPRESSOR CO .......................... 3,150 66 * MERIDIAN RESOURCE CORP ......................... 247 110 * NABORS INDUSTRIES, INC ......................... 4,015 71 * NEWFIELD EXPLORATION CO ........................ 2,485 137 * NOBLE DRILLING CORP ............................ 5,231 100 POGO PRODUCING CO .............................. 2,662 185 * R & B FALCON CORP .............................. 3,202 50 * STONE ENERGY CORP .............................. 2,500 67 * SYNTROLEUM CORP ................................ 1,444 50 VASTAR RESOURCES, INC .......................... 3,075 100 * VINTAGE PETROLEUM, INC ......................... 1,637 ------------ 71,002 ------------ PAPER AND ALLIED PRODUCTS--0.11% 219 AVERY DENNISON CORP ............................ 13,249 423 FORT JAMES CORP ................................ 8,037 50 * GAYLORD CONTAINER CO ........................... 303 718 KIMBERLY-CLARK CORP ............................ 34,105 96 * MAIL-WELL, INC ................................. 714 50 * PLAYTEX PRODUCTS, INC .......................... 546 82 WAUSAU-MOSINEE PAPER CORP ...................... 1,086 ------------ 58,040 ------------ PERSONAL SERVICES--0.03% 60 BLOCK (H&R), INC ............................... 2,576 283 CINTAS CORP .................................... 7,835 50 * COINSTAR, INC .................................. 709 50 G & K SERVICES, INC (CLASS A) .................. 812 74 REGIS CORP ..................................... 1,091 ------------ 13,023 ------------ PETROLEUM AND COAL PRODUCTS--0.01% 50 ELCOR CORP ..................................... 1,506 50 USX-MARATHON GROUP, INC ........................ 1,250 ------------ 2,756 ------------ PRIMARY METAL INDUSTRIES--0.00% 50 GENERAL CABLE CORP ............................. 462 98 * STEEL DYNAMICS, INC ............................ 1,280 ------------ 1,742 ------------ PRINTING AND PUBLISHING--0.06% 50 CENTRAL NEWSPAPERS, INC (CLASS A) .............. 1,453 79 DOW JONES & CO, INC ............................ 5,115 73 * JOURNAL REGISTER CO ............................ 1,076 110 LEE ENTERPRISES, INC ........................... 2,351 SHARES VALUE ------ -------- 50 MCGRAW HILL COS, INC ........................... $ 2,450 50 MEREDITH CORP .................................. 1,121 50 PENTON MEDIA, INC .............................. 1,271 50 * PLAYBOY ENTERPRISES, INC (CLASS B) ............. 1,081 145 * PRIMEDIA, INC .................................. 3,788 72 * R.H. DONNELLEY CORP ............................ 1,152 107 READER'S DIGEST ASSOCIATION, INC (CLASS A) (NON-VOTE) .......................... 3,537 89 TIMES MIRROR CO SERIES A ....................... 4,266 108 * TOPPS, INC ..................................... 813 117 WILEY (JOHN) & SONS, INC (CLASS A) ............. 1,630 ------------ 31,104 ------------ RAILROAD TRANSPORTATION--0.05% 275 KANSAS CITY SOUTHERN INDUSTRIES, INC ........... 24,114 ------------ REAL ESTATE--0.01% 154 * CATELLUS DEVELOPMENT CORP ...................... 1,876 110 * FAIRFIELD COMMUNITIES, INC ..................... 866 75 * JONES LANG LA SALLE ............................ 946 64 STEWART ENTERPRISES, INC (CLASS A) ............. 252 60 * TRAMMELL CROW CO ............................... 682 ------------ 4,622 ------------ RUBBER AND MISCELLANEOUS PLASTICS PRODUCTS--0.23% 408 ILLINOIS TOOL WORKS, INC ....................... 22,185 3,067 NIKE, INC (CLASS B) ............................ 82,425 84 * PACTIV CORP .................................... 661 208 * SEALED AIR CORP ................................ 9,308 50 TREDEGAR CORP .................................. 1,512 83 TUPPERWARE CORP ................................ 1,348 79 * U.S. PLASTIC LUMBER CORP ....................... 688 ------------ 118,127 ------------ SECURITY AND COMMODITY BROKERS--0.28% 50 * AFFILIATED MANAGERS GROUP, INC ................. 1,959 159 * AMERITRADE HOLDINGS CORP (CLASS A) ............. 3,418 500 * E TRADE GROUP, INC ............................. 13,250 75 EATON VANCE CORP ............................... 3,103 141 FEDERATED INVESTORS, INC ....................... 3,357 226 FRANKLIN RESOURCES, INC ........................ 5,932 50 * FRIEDMAN, BILLINGS, RAMSEY GROUP, INC .......... 843 173 * KNIGHT/TRIMARK GROUP, INC ...................... 8,574 50 MORGAN KEEGAN, INC ............................. 637 66 * PIONEER GROUP, INC ............................. 1,417 255 PRICE (T. ROWE) ASSOCIATES, INC ................ 8,175 84 RAYMOND JAMES FINANCIAL CORP ................... 1,596 1,639 SCHWAB (CHARLES) CORP .......................... 85,637 69 UNITED ASSET MANAGEMENT CORP ................... 1,065 144 WADDELL & REED FINANCIAL,INC (CLASS A) ......... 4,635 ------------ 143,598 ------------ SOCIAL SERVICES--0.00% 50 * RES-CARE, INC .................................. 435 50 * SUNRISE ASSISTED LIVING, INC ................... 778 ------------ 1,213 ------------ SPECIAL TRADE CONTRACTORS--0.01% 69 APOGEE ENTERPRISES, INC ........................ 301 50 * COMFORT SYSTEMS U.S.A., INC .................... 381 50 * INTEGRATED ELECTRICAL SERVICES, INC ............ 278 83 * QUANTA SERVICES, INC ........................... 4,212 ------------ 5,172 ------------ STONE, CLAY, AND GLASS PRODUCTS--0.54% 1,445 CORNING, INC ................................... 276,717 95 DAL-TILE INTERNATIONAL, INC .................... 712 50 FLORIDA ROCK INDUSTRIES, INC ................... 1,687 ------------ 279,116 ------------
B-37 See notes to financial statements.
SHARES VALUE ------ -------- TEXTILE MILL PRODUCTS--0.00% 50 * PUBLICARD, INC ................................ $ 640 93 WESTPOINT STEVENS, INC ........................ 1,511 ----------- 2,151 ----------- TOBACCO PRODUCTS--0.12% 3,139 PHILIP MORRIS COS, INC ........................ 59,837 85 RJR REYNOLDS TOBACCO HOLDINGS, INC ............ 1,492 172 UST, INC ...................................... 2,967 ----------- 64,296 ----------- TRANSPORTATION BY AIR--0.01% 114 * AIRTRAN HOLDINGS, INC ......................... 448 50 OGDEN CORP .................................... 571 50 SKYWEST, INC .................................. 1,581 ----------- 2,600 ----------- TRANSPORTATION EQUIPMENT--2.59% 50 * BE AEROSPACE, INC ............................. 450 258 BOEING CO ..................................... 8,352 236 DANAHER CORP .................................. 9,071 50 * DELCO REMY INTERNATIONAL , INC (CLASS A) ...... 350 115 FEDERAL SIGNAL CORP ........................... 1,789 130 GENERAL DYNAMICS CORP ......................... 5,110 3,757 * GENERAL MOTORS CORP (CLASS H) ................. 487,235 182 GENTEX CORP ................................... 6,222 4,676 HARLEY DAVIDSON, INC .......................... 325,566 50 * HAYES LEMMERZ INTERNATIONAL, INC .............. 987 4,359 HONEYWELL INTERNATIONAL, INC .................. 197,789 86 * HOWMET INTERNATIONAL, INC ..................... 1,596 50 * MILLER INDUSTRIES, INC ........................ 190 50 * MONACO COACH CORP ............................. 803 77 NEWPORT NEWS SHIPBUILDING, INC ................ 2,199 67 * ORBITAL SCIENCES CORP ......................... 1,042 50 POLARIS INDUSTRIES, INC ....................... 1,481 63 * SPX CORP ...................................... 7,327 5,582 UNITED TECHNOLOGIES CORP ...................... 272,820 ----------- 1,330,379 ----------- TRANSPORTATION SERVICES--0.02% 90 C.H. ROBINSON WORLDWIDE, INC .................. 4,449 120 EXPEDITORS INTERNATIONAL OF WASHINGTON ................................... 4,275 119 GALILEO INTERNATIONAL, INC .................... 2,253 ----------- 10,977 ----------- TRUCKING AND WAREHOUSING--0.01% 82 * IRON MOUNTAIN, INC ............................ 2,572 93 * SWIFT TRANSPORTATION CO, INC .................. 1,360 ----------- 3,932 ----------- SHARES VALUE ------ -------- WATER TRANSPORTATION--0.41% 9,000 CARNIVAL CORP (CLASS A) ....................... $ 207,562 50 * KIRBY CORP .................................... 937 ----------- 208,499 ----------- WHOLESALE TRADE-DURABLE GOODS--0.02% 63 * BOYDS COLLECTION LTD .......................... 417 67 * BRIGHTPOINT, INC .............................. 921 85 * CELLSTAR CORP ................................. 779 61 * FISHER SCIENTIFIC INTERNATIONAL, INC .......... 2,928 103 * HA-LO INDUSTRIES, INC ......................... 1,075 73 * INGRAM MICRO, INC (CLASS A) ................... 930 118 * LANIER WORLDWIDE, INC ......................... 309 67 * MSC INDUSTRIAL DIRECT CO (CLASS A) ............ 958 60 * PATTERSON DENTAL CO ........................... 2,032 158 * PSS WORLD MEDICAL, INC ........................ 1,046 50 * TECH DATA CORP ................................ 1,181 ----------- 12,576 ----------- WHOLESALE TRADE-NONDURABLE GOODS--0.87% 121 * AMERISOURCE HEALTH CORP (CLASS A) ............. 1,573 71 * BARNETT RESOURCES CORP ........................ 1,624 213 BERGEN BRUNSWIG CORP (CLASS A) ................ 998 9,696 CARDINAL HEALTH, INC .......................... 405,777 126 * ENRON CORP .................................... 8,583 312 MCKESSON HBOC, INC ............................ 5,791 113 * NU SKIN ENTERPRISES, INC (CLASS A) ............ 1,031 50 * SCHOOL SPECIALTY, INC ......................... 871 687 SYSCO CORP .................................... 19,751 ----------- 445,999 ----------- TOTAL COMMON STOCK (Cost $50,013,519) ........................... 51,327,343 -----------
PRINCIPAL --------- SHORT TERM INVESTMENT--0.19% U.S. GOVERNMENT & AGENCY--0.19% FEDERAL HOME LOAN BANK (FHLB) $ 100,000 5.540%, 03/13/00 99,969 ----------- TOTAL SHORT TERM INVESTMENT (Cost $99,969) ........................................ 99,969 ----------- TOTAL PORTFOLIO (Cost $50,113,488) .................................... $51,427,312 =========== - ------------ * Non-income producing The cost of investments for federal income tax purposes is substantially the same as the amount disclosed above.
B-38 See notes to financial statements. TIAA-CREF LIFE FUNDS STATEMENT OF INVESTMENTS--GROWTH & INCOME FUND MARCH 10, 2000 SUMMARY BY INDUSTRY
VALUE % ----------- ----- COMMON STOCK AMUSEMENT AND RECREATION SERVICES .......... $ 97,502 0.19% APPAREL AND ACCESSORY STORES ............... 127,769 0.25 APPAREL AND OTHER TEXTILE PRODUCTS ......... 142,780 0.28 AUTO REPAIR, SERVICES AND PARKING .......... 4,552 0.01 AUTOMOTIVE DEALERS AND SERVICE STATIONS .... 8,229 0.02 BUILDING MATERIALS AND GARDEN SUPPLIES ..... 732,012 1.46 BUSINESS SERVICES .......................... 6,088,734 12.10 CHEMICALS AND ALLIED PRODUCTS .............. 4,868,573 9.67 COMMUNICATIONS ............................. 5,975,272 11.87 DEPOSITORY INSTITUTIONS .................... 2,125,213 4.22 EATING AND DRINKING PLACES ................. 133,780 0.27 ELECTRIC, GAS, AND SANITARY SERVICES ....... 956,254 1.90 ELECTRONIC AND OTHER ELECTRIC EQUIPMENT .... 7,933,369 15.76 ENGINEERING AND MANAGEMENT SERVICES ........ 15,111 0.03 FABRICATED METAL PRODUCTS .................. 246,311 0.49 FOOD AND KINDRED PRODUCTS .................. 1,073,223 2.13 FOOD STORES ................................ 102,373 0.20 FURNITURE AND FIXTURES ..................... 225,379 0.45 FURNITURE AND HOMEFURNISHINGS STORES ....... 75,507 0.15 GENERAL BUILDING CONTRACTORS ............... 5,522 0.01 GENERAL MERCHANDISE STORES ................. 1,387,548 2.76 HEALTH SERVICES ............................ 341,152 0.68 HEAVY CONSTRUCTION, EXCEPT BUILDING ........ 5,814 0.01 HOTELS AND OTHER LODGING PLACES ............ 5,823 0.01 INDUSTRIAL MACHINERY AND EQUIPMENT ......... 6,260,514 12.44 INSTRUMENTS AND RELATED PRODUCTS ........... 771,555 1.53 INSURANCE AGENTS, BROKERS AND SERVICE ...... 46,154 0.09 INSURANCE CARRIERS ......................... 1,697,078 3.37 LUMBER AND WOOD PRODUCTS ................... 45,915 0.09 METAL MINING ............................... 56,507 0.11 MISCELLANEOUS MANUFACTURING INDUSTRIES ................................ 93,293 0.19 MISCELLANEOUS RETAIL ....................... 332,211 0.66 MOTION PICTURES ............................ 717,346 1.43 VALUE % ----------- ----- NONDEPOSITORY INSTITUTIONS ................. $ 458,086 0.91% NONMETALLIC MINERALS, EXCEPT FUELS ......... 9,130 0.02 OIL AND GAS EXTRACTION ..................... 501,371 1.00 PAPER AND ALLIED PRODUCTS .................. 415,487 0.83 PERSONAL SERVICES .......................... 11,909 0.02 PETROLEUM AND COAL PRODUCTS ................ 2,262,050 4.50 PRIMARY METAL INDUSTRIES ................... 361,568 0.72 PRINTING AND PUBLISHING .................... 318,200 0.63 RAILROAD TRANSPORTATION .................... 84,534 0.17 RUBBER AND MISCELLANEOUS PLASTIC PRODUCTS .................................. 82,169 0.16 SECURITY AND COMMODITY BROKERS ............. 747,503 1.49 STONE, CLAY, AND GLASS PRODUCTS ............ 128,495 0.26 TEXTILE MILL PRODUCTS ...................... 3,794 0.01 TOBACCO PRODUCTS ........................... 112,146 0.22 TRANSPORTATION BY AIR ...................... 302,167 0.60 TRANSPORTATION EQUIPMENT ................... 1,241,927 2.47 WATER TRANSPORTATION ....................... 32,126 0.06 WHOLESALE TRADE-DURABLE GOODS .............. 20,933 0.04 WHOLESALE TRADE-NONDURABLE GOODS ........... 366,204 0.73 ----------- ------- TOTAL COMMON STOCK (Cost $49,962,532) ......................... 50,158,174 99.67 ----------- ------- SHORT TERM INVESTMENT U.S. GOVERNMENT AGENCY ..................... 443,863 0.88 ----------- ------- TOTAL SHORT TERM INVESTMENT (Cost $443,863) ............................ 443,863 0.88 ----------- ------- TOTAL PORTFOLIO (Cost $50,406,395) ......................... 50,602,037 100.55 OTHER ASSETS & LIABILITIES, NET ............. (277,548) ( 0.55) ----------- ------- NET ASSETS .................................. $50,324,489 100.00% =========== =======
B-39 See notes to financial statements. TIAA-CREF LIFE FUNDS STATEMENT OF INVESTMENTS--GROWTH & INCOME FUND MARCH 10, 2000
SHARES VALUE ------ ------------ COMMON STOCK--99.67% AMUSEMENT AND RECREATION SERVICES--0.19% 307 * HARRAH'S ENTERTAINMENT, INC ................... $ 6,178 451 * MIRAGE RESORTS, INC ........................... 8,118 4,267 * PREMIER PARKS, INC ............................ 83,206 ----------- 97,502 ----------- APPAREL AND ACCESSORY STORES--0.25% 1,997 GAP, INC ...................................... 92,111 508 LIMITED, INC .................................. 17,272 332 NORDSTROM, INC ................................ 7,345 724 TJX COS, INC .................................. 11,041 ----------- 127,769 ----------- APPAREL AND OTHER TEXTILE PRODUCTS--0.28% 5,038 * JONES APPAREL GROUP, INC ...................... 128,469 151 LIZ CLAIBORNE, INC ............................ 6,908 321 VF CORP ....................................... 7,403 ----------- 142,780 ----------- AUTO REPAIR, SERVICES AND PARKING--0.01% 242 RYDER SYSTEM, INC ............................. 4,552 ----------- AUTOMOTIVE DEALERS AND SERVICE STATIONS--0.02% 343 * AUTOZONE, INC ................................. 7,481 121 PEP BOYS MANNY, MOE, & JACK CO ................ 748 ----------- 8,229 ----------- BUILDING MATERIALS AND GARDEN SUPPLIES--1.46% 9,914 HOME DEPOT, INC ............................... 532,257 4,439 LOWES COS, INC ................................ 199,755 ----------- 732,012 ----------- BUSINESS SERVICES--12.10% 279 ADOBE SYSTEMS, INC ............................ 23,226 7,853 * AMERICA ONLINE, INC ........................... 464,799 141 AUTODESK, INC ................................. 7,737 1,465 AUTOMATIC DATA PROCESSING, INC ................ 64,643 560 * BMC SOFTWARE, INC ............................. 29,085 1,663 * CENDANT CORP .................................. 30,141 6,009 * CERIDIAN CORP ................................. 113,419 416 * CITRIX SYSTEMS, INC ........................... 44,720 1,253 COMPUTER ASSOCIATES INTERNATIONAL, INC ........ 83,324 388 * COMPUTER SCIENCES CORP ........................ 31,355 827 * COMPUWARE CORP ................................ 19,744 1,100 ELECTRONIC DATA SYSTEMS CORP .................. 67,650 329 EQUIFAX, INC .................................. 7,258 978 FIRST DATA CORP ............................... 40,953 720 IMS HEALTH, INC ............................... 15,255 659 INTERPUBLIC GROUP OF COS, INC ................. 24,383 22,626 * MICROSOFT CORP ................................ 2,285,226 224 * NCR CORP ...................................... 9,282 347 * NETWORK APPLIANCE, INC ........................ 82,195 772 * NOVELL, INC ................................... 24,221 417 OMNICOM GROUP, INC ............................ 34,897 14,006 * ORACLE CORP ................................... 1,143,239 625 * PARAMETRIC TECHNOLOGY CORP .................... 19,296 578 PAYCHEX, INC .................................. 29,405 620 * PEOPLESOFT, INC ............................... 15,267 5,429 * PSINET, INC ................................... 303,345 62 SHARED MEDICAL SYSTEMS CORP ................... 3,607 7,786 * SUN MICROSYSTEMS, INC ......................... 733,343 1,859 * YAHOO, INC .................................... 331,018 161 * YOUNG & RUBICAM, INC .......................... 6,701 ----------- 6,088,734 ----------- SHARES VALUE ------ ------------ CHEMICALS AND ALLIED PRODUCTS--9.67% 3,572 ABBOTT LABORATORIES CO ........................ $ 110,508 532 AIR PRODUCTS & CHEMICALS, INC ................. 13,266 133 ALBERTO CULVER CO (CLASS B) ................... 2,601 307 ALLERGAN, INC ................................. 14,620 234 * ALZA CORP ..................................... 8,599 9,102 AMERICAN HOME PRODUCTS CORP ................... 450,549 4,593 * AMGEN, INC .................................... 273,570 557 AVON PRODUCTS, INC ............................ 14,621 348 * BIOGEN, INC ................................... 29,253 8,260 BRISTOL MYERS SQUIBB CO ....................... 432,618 543 CLOROX CO ..................................... 16,222 5,551 COLGATE PALMOLIVE CO .......................... 237,305 3,375 DOW CHEMICAL CO ............................... 330,750 4,501 DU PONT (E.I.) DE NEMOURS & CO ................ 206,764 182 EASTMAN CHEMICAL CO ........................... 6,574 306 ECOLAB, INC ................................... 9,294 69 * FMC CORP ...................................... 3,320 167 * GRACE W.R. & CO ............................... 1,711 135 GREAT LAKES CHEMICAL CORP ..................... 3,796 243 HERCULES, INC ................................. 3,766 242 INTERNATIONAL FLAVORS & FRAGRANCES, INC .......................................... 7,562 3,231 JOHNSON & JOHNSON CO .......................... 228,795 4,250 LILLY (ELI) & CO .............................. 260,046 166 MALLINCKRODT, INC ............................. 3,952 9,796 MERCK & CO, INC ............................... 583,474 1,476 MONSANTO CO ................................... 58,671 15,299 PFIZER, INC ................................... 537,377 1,208 PHARMACIA & UPJOHN, INC ....................... 62,816 408 PPG INDUSTRIES, INC ........................... 19,048 367 PRAXAIR, INC .................................. 12,294 5,168 PROCTER & GAMBLE CO ........................... 274,227 507 ROHM & HAAS CO ................................ 18,030 7,590 SCHERING-PLOUGH CORP .......................... 284,150 380 SHERWIN-WILLIAMS CO ........................... 7,196 240 SIGMA ALDRICH CORP ............................ 5,310 308 UNION CARBIDE CORP ............................ 14,668 3,387 WARNER-LAMBERT CO ............................. 312,874 223 WATSON PHARMACEUTICALS, INC ................... 8,376 ----------- 4,868,573 ----------- COMMUNICATIONS--11.87% 729 ALLTEL CORP ................................... 49,617 17,951 AT & T CORP ................................... 974,963 3,609 BELL ATLANTIC CORP ............................ 206,840 4,376 BELLSOUTH CORP ................................ 204,304 3,139 BROADWING, INC ................................ 122,224 4,066 * CBS CORP ...................................... 233,286 325 CENTURYTEL, INC ............................... 10,826 3,357 * CLEAR CHANNEL COMMUNICATIONS, INC ............. 207,924 1,800 COMCAST CORP (CLASS A) SPECIAL ................ 72,787 3,141 * ERICSSON TELEFON (LM) SERIES B ADR ............ 316,063 1,700 * GLOBAL CROSSING LTD ........................... 98,600 2,258 GTE CORP ...................................... 151,850 14,170 LUCENT TECHNOLOGIES, INC ...................... 958,246 11,168 * MCI WORLDCOM, INC ............................. 521,406 1,424 * MEDIA ONE GROUP, INC .......................... 111,250 845 * NEXTEL COMMUNICATIONS, INC (CLASS A) .......... 134,883 2,215 * RCN CORP ...................................... 148,405 16,386 SBC COMMUNICATIONS, INC ....................... 688,212 2,026 SPRINT CORP (FON GROUP) ....................... 124,345 2,004 * SPRINT CORP (PCS GROUP) ....................... 119,613 1,174 U.S. WEST, INC ................................ 82,620
B-40 See notes to financial statements.
SHARES VALUE ------ ------------ COMMUNICATIONS--(Continued) 1,614 * VIACOM, INC (CLASS A) ......................... $ 87,256 4,992 * VIATEL, INC ................................... 349,752 ----------- 5,975,272 ----------- DEPOSITORY INSTITUTIONS--4.22% 921 AMSOUTH BANCORP ............................... 12,260 10,227 BANK OF AMERICA CORP .......................... 438,482 1,722 BANK OF NEW YORK CO, INC ...................... 54,673 2,660 BANK ONE CORP ................................. 65,170 825 BB&T CORP ..................................... 18,614 5,483 CHASE MANHATTAN CORP .......................... 431,443 370 COMERICA, INC ................................. 12,603 727 FIFTH THIRD BANCORP ........................... 33,351 2,297 FIRST UNION CORP .............................. 73,216 8,516 FIRSTAR CORP .................................. 149,562 6,534 FLEETBOSTON FINANCIAL CORP .................... 167,842 358 GOLDEN WEST FINANCIAL CORP .................... 9,956 551 HUNTINGTON BANCSHARES, INC .................... 10,227 1,049 KEYCORP ....................................... 16,849 1,857 MBNA CORP ..................................... 40,970 4,535 MELLON FINANCIAL CORP ......................... 124,995 402 MORGAN (J.P.) & CO, INC ....................... 42,637 1,442 NATIONAL CITY CORP ............................ 24,964 523 NORTHERN TRUST CORP ........................... 27,359 288 OLD KENT FINANCIAL CORP ....................... 7,002 690 PNC BANK CORP ................................. 25,831 325 PROVIDIAN FINANCIAL CORP ...................... 21,084 521 REGIONS FINANCIAL CORP ........................ 9,931 400 SOUTHTRUST CORP ............................... 8,575 374 STATE STREET CORP ............................. 25,291 416 SUMMIT BANCORP ................................ 9,542 754 SUNTRUST BANKS, INC ........................... 35,720 681 SYNOVUS FINANCIAL CORP ........................ 10,172 1,694 U.S. BANCORP .................................. 30,492 339 UNION PLANTERS CORP ........................... 8,729 479 WACHOVIA CORP ................................. 26,045 1,310 WASHINGTON MUTUAL, INC ........................ 28,574 3,823 WELLS FARGO CO ................................ 123,052 ----------- 2,125,213 ----------- EATING AND DRINKING PLACES--0.27% 297 DARDEN RESTAURANTS, INC ....................... 3,842 592 MARRIOTT INTERNATIONAL (CLASS A) .............. 15,947 3,135 MCDONALD'S CORP ............................... 99,928 354 * TRICON GLOBAL RESTAURANTS, INC ................ 9,823 264 WENDY'S INTERNATIONAL, INC .................... 4,240 ----------- 133,780 ----------- ELECTRIC, GAS, AND SANITARY SERVICES--1.90% 480 * AES CORP ...................................... 35,040 409 * ALLIED WASTE INDUSTRIES, INC .................. 2,402 330 AMEREN CORP ................................... 9,281 5,752 AMERICAN ELECTRIC POWER CO, INC ............... 149,911 376 CAROLINA POWER & LIGHT CO ..................... 10,857 512 CENTRAL & SOUTH WEST CORP ..................... 8,096 376 CINERGY CORP .................................. 7,590 246 * CMS ENERGY CORP ............................... 4,228 486 COASTAL CORP .................................. 22,508 176 COLUMBIA ENERGY GROUP ......................... 9,988 513 CONSOLIDATED EDISON CO OF NEW YORK,INC ..................................... 14,075 351 CONSTELLATION ENERGY GROUP .................... 10,464 566 DOMINION RESOURCES, INC ....................... 20,553 338 DTE ENERGY CO ................................. 10,393 850 DUKE ENERGY CORP .............................. 39,418 46 EASTERN ENTERPRISES CO ........................ 2,627 808 EDISON INTERNATIONAL CO ....................... 12,372 515 EL PASO ENERGY CORP ........................... 20,375 SHARES VALUE ------ ------------ 577 ENTERGY CORP .................................. $ 10,349 556 FIRSTENERGY CORP .............................. 10,181 224 FLORIDA PROGRESS CORP ......................... 9,814 3,648 FPL GROUP, INC ................................ 159,600 288 GPU, INC ...................................... 6,912 273 NEW CENTURY ENERGIES, INC ..................... 6,825 463 * NIAGARA MOHAWK HOLDINGS, INC .................. 5,179 79 NICOR, INC .................................... 2,379 7,870 NORTHERN STATES POWER CO ...................... 130,838 64 ONEOK, INC .................................... 1,524 432 PECO ENERGY CO ................................ 16,524 56 PEOPLES ENERGY CORP ........................... 1,540 894 PG&E CORP ..................................... 18,997 198 * PINNACLE WEST CAPITAL CORP .................... 5,185 342 PPL CORP ...................................... 6,583 505 PUBLIC SERVICE ENTERPRISE GROUP, INC .......... 13,193 681 RELIANT ENERGY, INC ........................... 14,386 450 SEMPRA ENERGY ................................. 7,846 1,581 SOUTHERN CO ................................... 33,398 648 TEXAS UTILITIES CO ............................ 17,253 513 UNICOM CORP ................................... 19,269 1,401 WASTE MANAGEMENT, INC ......................... 19,614 1,000 WILLIAMS COS, INC ............................. 48,687 ----------- 956,254 ----------- ELECTRONIC AND OTHER ELECTRIC EQUIPMENT--15.76% 692 * ADC TELECOMMUNICATIONS, INC ................... 37,195 349 * ADVANCED MICRO DEVICES, INC ................... 18,409 409 * ANALOG DEVICES, INC ........................... 70,731 185 * ANDREW CORP ................................... 5,284 661 * APPLIED MICRO CIRCUITS CORP ................... 192,351 3,410 * CIENA CORP .................................... 555,403 176 * COMVERSE TECHNOLOGY, INC ...................... 41,118 459 * CONEXANT SYSTEMS, INC ......................... 40,420 204 COOPER INDUSTRIES, INC ........................ 6,375 997 EMERSON ELECTRIC CO ........................... 41,001 13,579 GENERAL ELECTRIC CO ........................... 1,788,184 13,192 INTEL CORP .................................... 1,585,513 7,331 * LSI LOGIC CORP ................................ 646,960 188 MAYTAG CO ..................................... 5,193 630 * MICRON TECHNOLOGY, INC ........................ 67,173 453 MOLEX, INC .................................... 28,390 3,015 MOTOROLA, INC ................................. 518,768 404 * NATIONAL SEMICONDUCTOR CORP ................... 28,280 98 NATIONAL SERVICE INDUSTRIES, INC .............. 2,064 1,891 NOKIA OYJ ADR ................................. 406,210 5,473 NORTEL NETWORKS CORP (U.S.) ................... 675,573 2,814 * QUALCOMM, INC ................................. 383,055 181 SCIENTIFIC-ATLANTA, INC ....................... 24,514 8,356 * SOLECTRON CORP ................................ 298,727 930 * TELLABS, INC .................................. 53,010 1,869 TEXAS INSTRUMENTS, INC ........................ 340,158 124 THOMAS & BETTS CORP ........................... 2,666 168 WHIRLPOOL CORP ................................ 8,410 747 * XILINX, INC ................................... 62,234 ----------- 7,933,369 ----------- ENGINEERING AND MANAGEMENT SERVICES--0.03% 384 DUN & BRADSTREET CORP ......................... 10,008 266 * QUINTILES TRANSNATIONAL CORP .................. 5,103 ----------- 15,111 ----------- FABRICATED METAL PRODUCTS--0.49% 9,834 AMERICAN NATIONAL CAN GROUP, INC .............. 108,788 77 BALL CORP ..................................... 2,189 151 CRANE CO ...................................... 2,991 317 CROWN CORK & SEAL CO, INC ..................... 4,319 2,486 GILLETTE CO ................................... 74,424 1,035 MASCO CORP .................................... 19,018
B-41 See notes to financial statements.
SHARES VALUE ------ ------------ FABRICATED METAL PRODUCTS--(Continued) 261 PARKER-HANNIFIN CORP .......................... $ 9,265 436 ROCKWELL INTERNATIONAL CORP ................... 17,113 132 SNAP-ON, INC .................................. 3,209 206 STANLEY WORKS CO .............................. 4,995 ------ 246,311 ------- FOOD AND KINDRED PRODUCTS--2.13% 3,352 ANHEUSER BUSCH COS, INC ....................... 190,226 1,408 ARCHER DANIELS MIDLAND CO ..................... 13,464 646 BESTFOODS, INC ................................ 24,911 147 BROWN FORMAN, INC (CLASS B) ................... 6,275 993 CAMPBELL SOUP CO .............................. 28,734 5,737 COCA COLA CO .................................. 256,372 988 COCA COLA ENTERPRISES, INC .................... 20,748 1,137 CONAGRA, INC .................................. 17,765 69 COORS (ADOLPH) CO (CLASS B) ................... 2,751 379 FORTUNE BRANDS, INC ........................... 8,432 703 GENERAL MILLS, INC ............................ 22,056 827 HEINZ (H.J.) CO ............................... 27,859 317 HERSHEY FOODS CORP ............................ 12,680 943 KELLOGG CO .................................... 21,630 747 NABISCO GROUP HOLDINGS ........................ 6,536 7,179 PEPSICO, INC .................................. 220,305 312 QUAKER OATS CO ................................ 14,566 703 RALSTON PURINA CO ............................. 17,179 2,147 SARA LEE CORP ................................. 31,265 990 SEAGRAMS CO LTD (U.S.) ........................ 58,162 1,326 UNILEVER NV (NEW YORK SHS) .................... 54,697 269 WRIGLEY (WM) JR CO ............................ 16,610 ----------- 1,073,223 ----------- FOOD STORES--0.20% 1,001 ALBERTSONS, INC ............................... 24,024 104 GREAT ATLANTIC & PACIFIC TEA CO, INC .......... 2,119 1,948 * KROGER CO ..................................... 28,733 1,190 * SAFEWAY, INC .................................. 41,724 368 WINN DIXIE STORES, INC ........................ 5,773 ----------- 102,373 ----------- FURNITURE AND FIXTURES--0.45% 455 LEGGETT & PLATT, INC .......................... 7,735 10,123 NEWELL RUBBERMAID, INC ........................ 217,644 ----------- 225,379 ----------- FURNITURE AND HOMEFURNISHINGS STORES--0.15% 328 * BED BATH & BEYOND, INC ........................ 7,749 476 * BEST BUY, INC ................................. 29,720 471 CIRCUIT CITY STORES-CIRCUIT CITY GROUP ........ 20,135 449 TANDY CORP .................................... 17,903 ----------- 75,507 ----------- GENERAL BUILDING CONTRACTORS--0.01% 124 CENTEX CORP ................................... 2,247 103 KAUFMAN & BROAD HOME CORP ..................... 1,847 90 PULTE CORP .................................... 1,428 ----------- 5,522 ----------- GENERAL MERCHANDISE STORES--2.76% 260 * CONSOLIDATED STORES CORP ...................... 2,957 900 * COSTCO WHOLESALE CORP ......................... 39,712 243 DILLARDS, INC (CLASS A) ....................... 3,477 623 DOLLAR GENERAL CORP ........................... 12,382 482 * FEDERATED DEPARTMENT STORES, INC .............. 17,020 173 HARCOURT GENERAL, INC ......................... 6,022 1,124 * K MART CORP ................................... 9,835 379 * KOHLS CORP .................................... 31,504 776 MAY DEPARTMENT STORES CO ...................... 19,400 600 PENNEY, (J.C.) CO, INC ........................ 8,362 868 SEARS ROEBUCK & CO ............................ 24,087 SHARES VALUE ------ ------------ 4,019 * TARGET CORP ................................... $ 244,405 20,201 WAL-MART STORES, INC .......................... 968,385 ----------- 1,387,548 ----------- HEALTH SERVICES--0.68% 1,347 COLUMBIA/HCA HEALTHCARE CORP .................. 28,202 9,178 * HEALTH MANAGEMENT ASSOCIATES, INC (CLASS A) NEW ................................. 108,988 916 * HEALTHSOUTH CORP .............................. 4,637 264 * MANOR CARE, INC ............................... 3,498 9,466 * TENET HEALTHCARE CORP ......................... 195,827 ----------- 341,152 ----------- HEAVY CONSTRUCTION, EXCEPT BUILDING--0.01% 173 FLUOR CORP .................................... 4,671 122 * MCDERMOTT INTERNATIONAL, INC .................. 1,143 ----------- 5,814 ----------- HOTELS AND OTHER LODGING PLACES--0.01% 879 HILTON HOTELS CORP ............................ 5,823 ----------- INDUSTRIAL MACHINERY AND EQUIPMENT--12.44% 802 * 3COM CORP ..................................... 55,288 240 * ADAPTEC, INC .................................. 10,635 373 * APPLE COMPUTER, INC ........................... 46,904 883 * APPLIED MATERIALS, INC ........................ 170,474 3,717 BAKER HUGHES, INC ............................. 101,288 198 BLACK & DECKER CORP ........................... 6,323 230 BRUNSWICK CORP ................................ 3,579 419 * CABLETRON SYSTEMS, INC ........................ 20,086 841 CATERPILLAR, INC .............................. 30,013 13,876 * CISCO SYSTEMS, INC ............................ 1,892,339 15,896 COMPAQ COMPUTER CORP .......................... 453,036 97 CUMMINS ENGINE CO, INC ........................ 3,104 581 DEERE & CO .................................... 20,625 10,514 * DELL COMPUTER CORP ............................ 538,842 471 DOVER CORP .................................... 19,664 6,005 * EMC CORP ...................................... 783,277 734 * GATEWAY, INC .................................. 45,875 2,368 HEWLETT-PACKARD CO ............................ 347,504 385 INGERSOLL-RAND CO ............................. 13,860 7,034 * INTERNATIONAL BUSINESS MACHINES CORP .......... 739,009 296 * LEXMARK INTERNATIONAL GROUP (CLASS A) ......... 38,221 79 MILACRON, INC ................................. 1,091 26 NACCO INDUSTRIES, INC (CLASS A) ............... 1,095 293 PALL CORP ..................................... 6,391 618 PITNEY BOWES, INC ............................. 28,505 482 * SEAGATE TECHNOLOGY, INC ....................... 30,968 424 * SILICON GRAPHICS, INC ......................... 5,220 144 TIMKEN CO ..................................... 2,160 17,569 TYCO INTERNATIONAL LTD ........................ 825,743 720 * UNISYS CORP ................................... 19,395 ----------- 6,260,514 ----------- INSTRUMENTS AND RELATED PRODUCTS--1.53% 118 BARD (C.R.), INC .............................. 4,343 132 BAUSCH & LOMB, INC ............................ 6,905 4,500 BAXTER INTERNATIONAL, INC ..................... 252,281 581 BECTON DICKINSON & CO ......................... 18,592 261 BIOMET, INC ................................... 8,123 961 * BOSTON SCIENTIFIC CORP ........................ 20,361 749 EASTMAN KODAK CO .............................. 40,446 713 * GUIDANT CORP .................................. 50,578 198 JOHNSON CONTROLS, INC ......................... 9,627 414 * KLA-TENCOR CORP ............................... 37,725 2,776 MEDTRONIC, INC ................................ 141,923 102 MILLIPORE CORP ................................ 6,292 477 PE CORP-PE BIOSYSTEMS GROUP ................... 54,825 112 PERKINELMER, INC .............................. 8,127 108 POLAROID CORP ................................. 3,051
B-42 See notes to financial statements.
SHARES VALUE ------ ------------ INSTRUMENTS AND RELATED PRODUCTS--(Continued) 786 RAYTHEON CO (CLASS B) ........................ $ 13,951 194 * ST. JUDE MEDICAL, INC ........................ 4,947 107 TEKTRONIX, INC ............................... 7,215 395 * TERADYNE, INC ................................ 35,550 365 * THERMO ELECTRON CORP ......................... 9,421 1,537 XEROX CORP ................................... 37,272 ----------- 771,555 ----------- INSURANCE AGENTS, BROKERS AND SERVICE--0.09% 619 MARSH & MCLENNAN COS, INC .................... 46,154 ----------- INSURANCE CARRIERS--3.37% 5,668 ACE LTD ...................................... 85,728 339 AETNA, INC ................................... 18,984 612 AFLAC, INC ................................... 21,496 1,845 ALLSTATE CORP ................................ 33,094 567 AMERICAN GENERAL CORP ........................ 26,790 5,998 AMERICAN INTERNATIONAL GROUP, INC ............ 498,208 588 AON CORP ..................................... 12,678 403 CHUBB CORP ................................... 18,260 426 CIGNA CORP ................................... 27,157 385 CINCINNATI FINANCIAL CORP .................... 10,346 12,575 CITIGROUP, INC ............................... 615,389 735 CONSECO, INC ................................. 9,141 507 HARTFORD FINANCIAL SERVICES GROUP, INC........ 15,463 411 * HUMANA, INC .................................. 2,645 242 JEFFERSON-PILOT CORP ......................... 12,342 8,386 * JOHN HANCOCK FINANCIAL SERVICES, INC ......... 122,121 442 LINCOLN NATIONAL CORP ........................ 11,077 247 LOEWS CORP ................................... 9,895 228 MBIA, INC .................................... 8,963 241 MGIC INVESTMENT CORP ......................... 8,028 169 PROGRESSIVE CORP ............................. 8,407 294 SAFECO CORP .................................. 5,457 520 ST. PAUL COS, INC ............................ 11,960 291 TORCHMARK CORP ............................... 5,565 404 UNITED HEALTHCARE CORP ....................... 20,554 537 UNUMPROVIDENT CORP ........................... 6,611 156 WELLPOINT HEALTH NETWORKS, INC ............... 9,155 1,468 XL CAPITAL LTD ............................... 61,564 ----------- 1,697,078 ----------- LUMBER AND WOOD PRODUCTS--0.09% 388 GEORGIA-PACIFIC CORP (PACKING GROUP) ......... 13,846 229 LOUISIANA PACIFIC CORP ....................... 2,619 541 WEYERHAEUSER CO .............................. 29,450 ----------- 45,915 ----------- METAL MINING--0.11% 935 BARRICK GOLD CORP (U.S.) ..................... 15,135 391 * FREEPORT-MCMORAN COPPER & GOLD, INC (CLASS B) ................................... 5,107 631 HOMESTAKE MINING CO .......................... 4,022 456 * INCO LTD CO (U.S.) ........................... 7,495 393 NEWMONT MINING CORP .......................... 9,137 186 PHELPS DODGE CORP ............................ 8,916 782 PLACER DOME, INC (U.S.) ...................... 6,695 ----------- 56,507 ----------- MISCELLANEOUS MANUFACTURING INDUSTRIES--0.19% 462 HASBRO, INC .................................. 6,612 75 JOSTENS, INC ................................. 1,795 992 MATTEL, INC .................................. 8,928 932 MINNESOTA MINING & MANUFACTURING CO........... 75,958 ----------- 93,293 ----------- MISCELLANEOUS RETAIL--0.66% 7,798 CVS CORP ..................................... 237,351 98 LONGS DRUG STORES CORP ....................... 1,696 SHARES VALUE ------ ------------ 765 * OFFICE DEPOT, INC ............................ $ 7,984 596 RITE AID CORP ................................ 3,650 900 * STAPLES, INC ................................. 17,437 568 * TOYS R US, INC ............................... 6,567 2,348 WALGREEN CO .................................. 57,526 ----------- 332,211 ----------- MOTION PICTURES--1.43% 8,853 DISNEY (WALT) CO ............................. 310,961 4,781 TIME WARNER, INC ............................. 406,385 ----------- 717,346 ----------- NONDEPOSITORY INSTITUTIONS--0.91% 1,036 AMERICAN EXPRESS CO .......................... 131,248 4,804 ASSOCIATES FIRST CAPITAL CORP ................ 77,464 453 CAPITAL ONE FINANCIAL CORP ................... 16,676 254 COUNTRYWIDE CREDIT INDUSTRIES, INC ........... 6,175 2,381 FEDERAL NATIONAL MORTGAGE ASSOCIATION ................................. 119,198 1,616 FREDDIE MAC .................................. 60,903 1,086 HOUSEHOLD INTERNATIONAL, INC ................. 35,566 368 SLM HOLDINGS CORP ............................ 10,856 ----------- 458,086 ----------- NONMETALLIC MINERALS, EXCEPT FUELS--0.02% 236 VULCAN MATERIALS CO .......................... 9,130 ----------- OIL AND GAS EXTRACTION--1.00% 303 ANADARKO PETROLEUM CORP ...................... 9,393 3,627 APACHE CORP .................................. 147,800 4,579 BURLINGTON RESOURCES, INC .................... 144,238 1,024 HALLIBURTON CO ............................... 40,512 223 KERR-MCGEE CORP .............................. 11,749 878 OCCIDENTAL PETROLEUM CORP .................... 15,310 213 * ROWAN COS, INC ............................... 5,604 1,277 SCHLUMBERGER LTD ............................. 98,807 477 * TRANSOCEAN SEDCO FOREX, INC .................. 21,107 609 UNION PACIFIC RESOURCES GROUP, INC ........... 6,851 ----------- 501,371 ----------- PAPER AND ALLIED PRODUCTS--0.83% 262 AVERY DENNISON CORP .......................... 15,851 122 BEMIS, INC ................................... 3,644 128 BOISE CASCADE CORP ........................... 3,608 221 CHAMPION INTERNATIONAL CORP .................. 10,663 6,611 FORT JAMES CORP .............................. 125,609 955 INTERNATIONAL PAPER CO ....................... 34,499 1,263 KIMBERLY-CLARK CORP .......................... 59,992 234 MEAD CORP .................................... 7,224 70 POTLATCH CORP ................................ 2,725 8,849 * SMURFIT-STONE CONTAINER CORP ................. 129,969 126 TEMPLE-INLAND, INC ........................... 5,685 234 WESTVACO CORP ................................ 6,756 260 WILLAMETTE INDUSTRIES, INC ................... 9,262 ----------- 415,487 ----------- PERSONAL SERVICES--0.02% 223 BLOCK (H&R), INC ............................. 9,575 667 SERVICE CORP INTERNATIONAL ................... 2,334 ----------- 11,909 ----------- PETROLEUM AND COAL PRODUCTS--4.50% 215 AMERADA HESS CORP ............................ 12,308 162 ASHLAND, INC ................................. 5,143 750 ATLANTIC RICHFIELD CO ........................ 61,546 2,676 BP AMOCO PLC (SPONS ADR) ..................... 142,831 1,525 CHEVRON CORP ................................. 121,714 5,347 CONOCO, INC (CLASS B) ........................ 124,986 17,883 EXXON MOBIL CORP ............................. 1,376,991 605 PHILLIPS PETROLEUM CO ........................ 24,162
B-43 See notes to financial statements.
SHARES VALUE ------ ------------ PETROLEUM AND COAL PRODUCTS--(Continued) 4,999 ROYAL DUTCH PETROLEUM CO (NY REGD) ADR ................................... $ 282,443 186 SUNOCO, INC ..................................... 5,208 1,274 TEXACO, INC ..................................... 62,107 333 TOSCO CORP ...................................... 9,344 564 UNOCAL CORP ..................................... 15,792 699 USX-MARATHON GROUP, INC ......................... 17,475 ----------- 2,262,050 ----------- PRIMARY METAL INDUSTRIES--0.72% 517 ALCAN ALUMINIUM CO LTD (U.S.) ................... 16,091 4,622 ALCOA, INC ...................................... 309,674 219 ALLEGHENY TECHNOLOGIES, INC ..................... 3,873 315 * BETHLEHEM STEEL CORP ............................ 2,067 296 ENGELHARD CORP .................................. 4,014 207 NUCOR CORP ...................................... 9,948 147 REYNOLDS METALS CO .............................. 8,636 202 USX-US STEEL GROUP, INC ......................... 4,393 222 WORTHINGTON INDUSTRIES, INC ..................... 2,872 ----------- 361,568 ----------- PRINTING AND PUBLISHING--0.63% 135 AMERICAN GREETINGS CORP (CLASS A) ............... 2,244 167 DELUXE CORP ..................................... 4,133 287 DONNELLEY (R.R.) & SONS CO ...................... 5,524 210 DOW JONES & CO, INC ............................. 13,597 646 GANNETT CO, INC ................................. 42,353 191 KNIGHT-RIDDER, INC .............................. 8,618 458 MCGRAW HILL COS, INC ............................ 22,442 122 MEREDITH CORP ................................... 2,737 396 NEW YORK TIMES CO (CLASS A) ..................... 16,508 143 TIMES MIRROR CO SERIES A ........................ 6,855 5,195 TRIBUNE CO ...................................... 193,189 ----------- 318,200 ----------- RAILROAD TRANSPORTATION--0.17% 1,039 BURLINGTON NORTHERN SANTA FE CORP ............... 20,455 472 CSX CORP ........................................ 10,502 254 KANSAS CITY SOUTHERN INDUSTRIES, INC ............ 22,273 869 NORFOLK SOUTHERN CORP ........................... 11,459 566 UNION PACIFIC CORP .............................. 19,845 ----------- 84,534 ----------- RUBBER AND MISCELLANEOUS PLASTIC PRODUCTS--0.16% 85 ARMSTRONG WORLD INDUSTRIES, INC ................. 1,397 188 COOPER TIRE & RUBBER CO ......................... 1,856 360 GOODYEAR TIRE & RUBBER CO ....................... 7,515 699 ILLINOIS TOOL WORKS, INC ........................ 38,008 679 NIKE, INC (CLASS B) ............................. 18,248 393 * PACTIV CORP ..................................... 3,094 155 * REEBOK INTERNATIONAL LTD ........................ 1,404 194 * SEALED AIR CORP ................................. 8,681 121 TUPPERWARE CORP ................................. 1,966 ----------- 82,169 ----------- SECURITY AND COMMODITY BROKERS--1.49% 274 BEAR STEARNS COS, INC ........................... 11,285 584 FRANKLIN RESOURCES, INC ......................... 15,330 276 LEHMAN BROTHERS HOLDINGS, INC ................... 22,666 857 MERRILL LYNCH & CO, INC ......................... 89,931 5,613 MORGAN STANLEY, DEAN WITTER, & CO ............... 486,927 328 PAINE WEBBER GROUP, INC ......................... 12,956 280 PRICE (T. ROWE) ASSOCIATES, INC ................. 8,977 1,903 SCHWAB (CHARLES) CORP ........................... 99,431 ----------- 747,503 ----------- STONE, CLAY, AND GLASS PRODUCTS--0.26% 631 CORNING, INC .................................... 120,836 SHARES VALUE ------ ------------ 126 OWENS CORNING CO ................................ $ 1,842 358 * OWENS ILLINOIS, INC ............................. 5,817 ----------- 128,495 ----------- TEXTILE MILL PRODUCTS--0.01% 110 RUSSELL CORP .................................... 1,512 62 SPRING INDUSTRIES, INC .......................... 2,282 ----------- 3,794 ----------- TOBACCO PRODUCTS--0.22% 5,513 PHILIP MORRIS COS, INC .......................... 105,091 409 UST, INC ........................................ 7,055 ----------- 112,146 ----------- TRANSPORTATION BY AIR--0.60% 1,420 * AMR CORP ........................................ 80,762 1,581 * CONTINENTAL AIRLINES, INC (CLASS B) ............. 55,631 317 DELTA AIRLINES, INC ............................. 15,156 647 * FEDEX CORP ...................................... 21,715 6,708 SOUTHWEST AIRLINES CO ........................... 125,355 170 * U.S. AIRWAYS GROUP, INC ......................... 3,548 ----------- 302,167 ----------- TRANSPORTATION EQUIPMENT--2.47% 2,188 BOEING CO ....................................... 70,836 1,890 DAIMLERCHRYSLER (U.S.A.) ........................ 113,990 388 DANA CORP ....................................... 8,366 328 DANAHER CORP .................................... 12,607 1,333 DELPHI AUTOMOTIVE SYSTEMS CORP .................. 21,577 169 EATON CORP ...................................... 12,865 2,829 FORD MOTOR CO ................................... 116,165 468 GENERAL DYNAMICS CORP ........................... 18,398 1,487 GENERAL MOTORS CORP ............................. 115,707 475 * GENERAL MOTORS CORP (CLASS H) ................... 61,601 254 GOODRICH (B.F.) CO .............................. 6,731 2,272 HARLEY DAVIDSON, INC ............................ 158,188 5,329 HONEYWELL INTERNATIONAL, INC .................... 241,803 210 ITT INDUSTRIES, INC ............................. 5,105 931 LOCKHEED MARTIN CORP ............................ 15,652 145 * NAVISTAR INTERNATIONAL CORP ..................... 4,857 164 * NORTHROP GRUMMAN CORP ........................... 7,718 184 PACCAR, INC ..................................... 7,831 348 TEXTRON, INC .................................... 18,291 292 TRW, INC ........................................ 15,676 4,255 UNITED TECHNOLOGIES CORP ........................ 207,963 ----------- 1,241,927 ----------- WATER TRANSPORTATION--0.06% 1,393 CARNIVAL CORP (CLASS A) ......................... 32,126 ----------- WHOLESALE TRADE-DURABLE GOODS--0.04% 50 BRIGGS & STRATTON CORP .......................... 1,565 418 * GENUINE PARTS CO ................................ 8,647 214 GRAINGER (W.W.), INC ............................ 8,479 345 IKON OFFICE SOLUTIONS, INC ...................... 2,242 ----------- 20,933 ----------- WHOLESALE TRADE-NONDURABLE GOODS--0.73% 5,142 CARDINAL HEALTH, INC ............................ 214,849 1,654 ENRON CORP ...................................... 112,678 653 MCKESSON HBOC, INC .............................. 12,121 318 SUPERVALU, INC .................................. 4,591 764 SYSCO CORP ...................................... 21,965 ----------- 366,204 ----------- TOTAL COMMON STOCK (Cost $49,962,532) ............................. 50,158,174 -----------
B-44 See notes to financial statements.
PRINCIPAL --------- SHORT TERM INVESTMENT--0.88% U.S. GOVERNMENT AGENCY--0.88% FEDERAL HOME LOAN BANK (FHLB) $444,000 5.540%, 03/13/00 $ 443,863 ----------- TOTAL SHORT TERM INVESTMENT (Cost $443,863) ............................... 443,863 ----------- TOTAL PORTFOLIO (Cost $50,406,395) ............................ $50,602,037 ===========
- ------------ * Non-income producing The cost of investments for federal income tax purposes is substantially the same as the amount disclosed above. B-45 See notes to financial statements. TIAA-CREF LIFE FUNDS STATEMENT OF INVESTMENTS--INTERNATIONAL EQUITY FUND MARCH 10, 2000 SUMMARY BY INDUSTRY
VALUE % ------------- ------ PREFERRED STOCK BUSINESS SERVICES .......................... $ 1,512,487 3.04% MOTION PICTURES ............................ 538,159 1.08 ------------- ------- TOTAL PREFERRED STOCK ...................... (Cost $1,988,245) ......................... 2,050,646 4.12 ------------- ------- COMMON STOCK AMUSEMENT AND RECREATION SERVICES .......... 36,202 0.07 APPAREL AND ACCESSORY STORES ............... 36,082 0.07 APPAREL AND OTHER TEXTILE PRODUCTS ......... 5,635 0.01 BUILDING MATERIALS AND GARDEN SUPPLIES ..... 17,263 0.04 BUSINESS SERVICES .......................... 9,812,948 19.71 CHEMICALS AND ALLIED PRODUCTS .............. 1,630,422 3.28 COMMUNICATIONS ............................. 13,071,051 26.25 DEPOSITORY INSTITUTIONS .................... 2,838,883 5.70 EATING AND DRINKING PLACES ................. 194,736 0.39 ELECTRIC, GAS, AND SANITARY SERVICES ....... 731,990 1.47 ELECTRONIC AND OTHER ELECTRIC EQUIPMENT .... 6,465,196 12.99 ENGINEERING AND MANAGEMENT SERVICES ........ 6,867 0.01 FOOD AND KINDRED PRODUCTS .................. 270,118 0.54 FOOD STORES ................................ 161,412 0.32 GENERAL MERCHANDISE STORES ................. 86,851 0.17 HEAVY CONSTRUCTION, EXCEPT BUILDING ........ 32,019 0.06 HOLDING AND OTHER INVESTMENT OFFICES ....... 489,617 0.98 HOTELS AND OTHER LODGING PLACES ............ 10,358 0.02 INDUSTRIAL MACHINERY AND EQUIPMENT ......... 293,280 0.59 INSTRUMENTS AND RELATED PRODUCTS ........... 565,232 1.14 INSURANCE AGENTS, BROKERS AND SERVICE ...... 39,796 0.08 INSURANCE CARRIERS ......................... 734,909 1.48 LOCAL AND INTERURBAN PASSENGER TRANSIT ..... 141,028 0.28 LUMBER AND WOOD PRODUCTS ................... 10,607 0.02 METAL MINING ............................... 41,289 0.08 MISCELLANEOUS MANUFACTURING INDUSTRIES ................................ 305,383 0.61 MISCELLANEOUS RETAIL ....................... 98,149 0.20 MOTION PICTURES ............................ 518,439 1.04 VALUE % ------------- ------ NONDEPOSITORY INSTITUTIONS ................. $ 399,998 0.80% OIL AND GAS EXTRACTION ..................... 278,791 0.56 PAPER AND ALLIED PRODUCTS .................. 39,214 0.08 PETROLEUM AND COAL PRODUCTS ................ 865,447 1.74 PRIMARY METAL INDUSTRIES ................... 61,714 0.13 PRINTING AND PUBLISHING .................... 1,343,281 2.70 RAILROAD TRANSPORTATION .................... 25,336 0.05 REAL ESTATE ................................ 134,184 0.27 RUBBER AND MISCELLANEOUS PLASTIC PRODUCTS .................................. 332,483 0.67 SECURITY AND COMMODITY BROKERS ............. 262,093 0.53 SPECIAL TRADE CONTRACTORS .................. 17,750 0.04 STONE, CLAY, AND GLASS PRODUCTS ............ 323,089 0.65 TOBACCO PRODUCTS ........................... 32,874 0.07 TRANSPORTATION BY AIR ...................... 56,336 0.11 TRANSPORTATION EQUIPMENT ................... 952,426 1.91 TRANSPORTATION SERVICES .................... 149,372 0.30 TRUCKING AND WAREHOUSING ................... 44,880 0.09 WATER TRANSPORTATION ....................... 11,116 0.02 WHOLESALE TRADE-DURABLE GOODS .............. 1,176,865 2.37 ------------- ------- TOTAL COMMON STOCK (Cost $45,578,606) ......................... 45,153,011 90.69 ------------- ------- SHORT TERM INVESTMENT U.S. GOVERNMENT AGENCY ..................... 20,416,714 41.00 ------------- ------- TOTAL SHORT TERM INVESTMENT (Cost $20,416,714) ......................... 20,416,714 41.00 ------------- ------- TOTAL PORTFOLIO (Cost $67,983,565) ......................... 67,620,371 135.81 OTHER ASSETS & LIABILITIES, NET ............. (17,829,622) (35.81) ------------- ------- NET ASSETS .................................. $ 49,790,749 100.00% ============= =======
B-46 See notes to financial statements. TIAA-CREF LIFE FUNDS STATEMENT OF INVESTMENTS--INTERNATIONAL EQUITY FUND MARCH 10, 2000 SUMMARY BY COUNTRY
VALUE % ----------- ----- FOREIGN AUSTRALIA .............. $ 1,122,610 1.66% AUSTRIA ................ 19,048 0.03 BELGIUM ................ 106,562 0.16 CHINA .................. 12,512 0.02 DENMARK ................ 114,182 0.17 FINLAND ................ 1,773,712 2.62 FRANCE ................. 2,844,612 4.21 GERMANY ................ 6,031,557 8.92 HONG KONG .............. 3,026,404 4.47 INDIA .................. 244,375 0.36 IRELAND ................ 229,546 0.34 ITALY .................. 3,709,418 5.49 JAPAN .................. 8,610,576 12.73 NETHERLANDS ............ 1,771,991 2.62 VALUE % ----------- ----- NEW ZEALAND ............ $ 18,984 0.03% NORWAY ................. 63,139 0.09 PORTUGAL ............... 159,842 0.24 SINGAPORE .............. 974,077 1.44 SPAIN .................. 836,326 1.24 SWEDEN ................. 1,995,862 2.95 SWITZERLAND ............ 1,741,324 2.58 UNITED KINGDOM ......... 11,796,998 17.44 ----------- ------- TOTAL FOREIGN ............ 47,203,657 69.81 TOTAL SHORT TERM ......... 20,416,714 30.19 ----------- ------- TOTAL PORTFOLIO .......... $67,620,371 100.00% =========== =======
B-47 See notes to financial statements. TIAA-CREF LIFE FUNDS STATEMENT OF INVESTMENTS--INTERNATIONAL EQUITY FUND MARCH 10, 2000
SHARES VALUE ------ ----------- PREFERRED STOCK--4.12% BUSINESS SERVICES--3.04% 1,500 SAP AG. ..................................... $ 1,512,487 ----------- MOTION PICTURES--1.08% 3,600 PROSIEBEN MEDIA AG. ......................... 538,159 ----------- TOTAL PREFERRED STOCK (Cost $1,988,245) ...................................... 2,050,646 ----------- COMMON STOCK--90.69% AMUSEMENT AND RECREATION SERVICES--0.07% 3,400 GRANADA GROUP LTD (CLASS A) ................. 36,202 ----------- APPAREL AND ACCESSORY STORES--0.07% 1,000 HENNES & MAURITZ AB SERIES B ................ 36,082 ----------- APPAREL AND OTHER TEXTILE PRODUCTS--0.01% 2,900 BENETTON GROUP S.P.A. ....................... 5,635 ----------- BUILDING MATERIALS AND GARDEN SUPPLIES--0.04% 1,000 CRH PLC ..................................... 17,263 ----------- BUSINESS SERVICES--19.71% 32,000 * ANITE GROUP PLC ............................. 157,859 100 * ASIAINFO HOLDINGS, INC ...................... 8,500 3,200 * BIODATA INFORMATION TECHNOLOGY AG. .......... 848,709 129,000 * BMCMEDIA.COM ................................ 554,422 100 CAP GEMINI S.A. ............................. 33,755 3,500 * CHINA.COM CORP (CLASS A) .................... 448,382 200 * DASSAULT SYSTEMS S.A. ....................... 21,931 648,000 * E-KONG GROUP LTD ............................ 258,053 2,000 * FANTASTIC CORP .............................. 896,931 1,800 * FRAMTIDSFABRIKEN AB ......................... 56,288 88 * FREENET.DE AG. .............................. 15,531 44,000 * FREESERVE PLC ............................... 419,875 700 * FUJITSU SUPPORT & SERVICE, INC .............. 362,754 100 * GETRONICS NV ................................ 8,954 184 * GIGAMEDIA LTD ............................... 12,512 47,200 HAYS PLC .................................... 273,078 14,000 * INFORMATION HIGHWAY AB ...................... 206,070 100 * ISS INTERNATIONAL SERVICE SYSTEM AS SERIES B ................................... 7,315 200 * LAGARDERE S.C.A. ............................ 19,983 16,700 LOGICA PLC .................................. 707,835 300 * ORACLE CORP (JAPAN) ......................... 265,223 2,200 * PIXELPARK AG. ............................... 364,945 19,600 REUTERS GROUP PLC ........................... 493,037 2,400 * SAGE GROUP PLC .............................. 34,268 200 SAP AG. ..................................... 155,661 6,600 SECURICOR PLC ............................... 17,763 4,497,000 * SINO-I.COM LTD .............................. 623,907 300 * SOFTBANK CORP ............................... 279,895 100 TIETOENATOR CORP ............................ 7,377 1,800 * TISCALI S.P.A. .............................. 2,012,020 600 TRANS COSMOS ................................ 206,253 4,000 WHARF HOLDINGS LTD .......................... 6,602 1,400 * WPP GROUP PLC ............................... 27,260 ----------- 9,812,948 ----------- CHEMICALS AND ALLIED PRODUCTS--3.28% 400 AKZO NOBEL NV ............................... 15,114 3,000 ASAHI CHEMICAL INDUSTRY CO LTD .............. 19,609 3,300 ASTRAZENECA PLC (UNITED KINGDOM) ............ 129,505 1,500 AVENTIS S.A. ................................ 70,814 1,000 BASF AG. .................................... 44,557 1,200 BAYER AG. ................................... 47,045 200 * FANCL CORP .................................. 43,263 9,900 GLAXO WELLCOME PLC .......................... 251,925 SHARES VALUE ------ ----------- 1,000 KAO CORP .................................... $ 26,663 100 L'AIR LIQUIDE ............................... 12,798 100 LOREAL S.A. ................................. 59,795 4,000 MITSUBISHI CHEMICAL CORP .................... 14,521 4,500 * MONTEDISON S.P.A. ........................... 7,942 160 NOVARTIS AG. (REGD) ......................... 196,650 200 NOVO NORDISK AS (CLASS B) ................... 26,593 26 ROCHE HOLDINGS AG. (GENUSSCHEINE) ........... 293,914 1,000 SANKYO CO LTD ............................... 22,478 1,400 * SANOFI-SYNTHELABO S.A. ...................... 53,590 1,000 SHISEIDO & CO LTD ........................... 12,461 10,300 SMITHKLINE BEECHAM/BECKMAN LTD .............. 120,239 100 SOLVAY ET CIE S.A. .......................... 7,045 4,000 SUMITOMO CHEMICAL CO LTD .................... 17,305 2,000 TAKEDA CHEMICAL INDUSTRIES LTD .............. 116,623 3,000 TORAY INDUSTRIES, INC ....................... 10,298 300 UCB S.A. .................................... 9,675 ----------- 1,630,422 ----------- COMMUNICATIONS--26.25% 400 ALCATEL ..................................... 99,144 3,100 BRITISH SKY BROADCASTING GROUP PLC .......... 103,623 12,300 BRITISH TELECOMMUNICATIONS PLC .............. 262,320 24,000 CABLE & WIRELESS HKT LTD .................... 73,685 48,000 CABLE & WIRELESS PLC ........................ 1,154,776 200 CANAL PLUS S.A. ............................. 69,497 4,400 * CHINA TELECOM LTD (HONG KONG) (SPONS ADR) ................................ 850,025 11,000 * COLT TELECOM GROUP PLC ...................... 656,381 5,200 DEUTSCHE TELEKOM AG. ........................ 490,226 6,000 EIRCOM PLC .................................. 27,732 16,000 ERICSSON TELEFON (LM) AB SERIES B ........... 1,581,670 2,000 FRANCE TELECOM S.A. ......................... 379,990 19 FUJI TELEVISION NETWORK, INC ................ 332,376 800 KONINKLIJKE KPN NV .......................... 114,151 4,900 MARCONI PLC ................................. 70,389 35,900 MEDIASET S.P.A. ............................. 899,864 34 NIPPON TELEGRAPH & TELEPHONE CORP ........... 457,275 12 NTT MOBILE COMMUNICATIONS ................... 437,901 7,800 * OLIVETTI GROUP S.P.A. ....................... 34,604 1,500 PORTUGAL TELECOM S.A. ....................... 22,133 900 * SERVICOS TELECOMUNICACOE MULTIMEDIA S.A. ............................ 120,651 14,000 SINGAPORE TELECOMMUNICATIONS LTD ............ 22,185 1,100 SONERA GROUP OYJ ............................ 96,222 100 SWISSCOM AG. (REGD) ......................... 44,066 3,000 TELECOM CORP OF NEW ZEALAND ................. 13,139 6,600 TELECOM ITALIA .............................. 117,121 11,800 TELECOM ITALIA MOBILE S.P.A. ................ 150,107 600 TELE DANMARK AS ............................. 57,097 11,100 * TELEFONICA DE ESPANA S.A. ................... 324,478 16,000 TELSTRA CORP ................................ 78,589 880 * TERRA NETWORKS S.A. ......................... 99,426 1,000 TOKYO BROADCASTING SYSTEMS, INC ............. 40,065 3,500 * UNITED PAN-EUROPE COMMUNICATIONS NV ......... 783,127 456,000 VODAFONE AIRTOUCH PLC ....................... 2,762,390 9,000 * YOKOWO CO LTD ............................... 244,626 ----------- 13,071,051 ----------- DEPOSITORY INSTITUTIONS--5.70% 2,600 ABBEY NATIONAL PLC .......................... 26,144 2,400 ABN-AMRO HOLDINGS NV ........................ 49,163 2,300 ALLIED IRISH BANK PLC ....................... 19,076 25,000 ASAHI BANK LTD .............................. 141,076
B-48 See notes to financial statements.
SHARES VALUE ------ ----------- DEPOSITORY INSTITUTIONS--(Continued) 8,600 * BANCA DI ROMA .................................. $ 10,409 7,500 BANCA INTESA S.P.A. ............................ 30,379 6,200 BANCO SANTANDER CENTRAL HISPANO S.A. ........... 66,911 300 BANK AUSTRIA AG. ............................... 13,887 23,000 BANK OF TOKYO MITSUBISHI LTD ................... 316,904 800 BANQUE NATIONALE DE PARIS ...................... 65,659 2,700 BARCLAYS PLC ................................... 63,421 700 BAYERISCHE HYPO-UND VEREINSBANK AG. ............ 40,776 4,900 BCO BILBAO VIZCAYA ARGENTARIA .................. 71,028 1,600 CHRISTIANIA BANK OG KREDITKASSE ................ 8,138 600 CREDIT SUISSE GROUP (REGD) ..................... 102,162 4,000 DAIWA BANK LTD ................................. 10,721 3,000 * DBS GROUP HOLDINGS LTD ......................... 36,976 100 DEN DANSKE BANK AF 1871 ........................ 10,746 1,000 * DEUTSCHE BANK AG. (REGD) ....................... 72,092 2,300 * DNB HOLDING ASA ................................ 9,041 900 * DRESDNER BANK AG. (REGD) ....................... 40,058 1,000 FORENINGSSPARBANKEN AB ......................... 12,829 8,000 FUJI BANK LTD .................................. 70,726 2,000 HANG SENG BANK LTD ............................. 18,241 15,500 * HSBC HOLDINGS PLC (UNITED KINGDOM) ............. 173,480 6,000 INDUSTRIAL BANK OF JAPAN LTD ................... 51,521 600 KBC BANCASSURANCE HOLDINGS NV .................. 20,774 10,000 LLOYDS TSB GROUP PLC ........................... 87,059 3,000 MITSUBISHI TRUST & BANKING CORP ................ 26,973 3,000 NATIONAL AUSTRALIA BANK LTD .................... 37,538 3,000 * OVERSEAS CHINESE BANKING CORP LTD .............. 17,607 1,600 ROYAL BANK OF SCOTLAND PLC ..................... 20,206 37,000 SAKURA BANK LTD ................................ 229,324 12,200 SAN PAOLO-IMI S.P.A. ........................... 176,846 13,000 SANWA BANK LTD ................................. 133,025 1,000 SHIZUOKA BANK LTD .............................. 8,445 1,000 SKANDINAVISKA ENSKILDA BANKEN SERIES A ......... 10,251 200 SOCIETE GENERALE S.A. .......................... 38,577 18,000 SUMITOMO BANK LTD .............................. 226,681 1,000 SVENSKA HANDELSBANKEN SERIES A ................. 11,340 5,000 TOKAI BANK LTD ................................. 29,626 400 UBS AG. (REGD) ................................. 96,046 200 * UNI BANKDANMARK AS (CLASS A) ................... 12,429 8,100 * UNICREDITO ITALIANO S.P.A. ..................... 31,951 12,000 * UNITED OVERSEAS BANK LTD ....................... 72,544 3,000 WESTPAC BANKING CORP ........................... 20,077 ----------- 2,838,883 ----------- EATING AND DRINKING PLACES--0.39% 16,000 COMPASS GROUP PLC .............................. 194,736 ----------- ELECTRIC, GAS, AND SANITARY SERVICES--1.47% 6,400 * BG GROUP PLC ................................... 31,698 7,500 CENTRICA PLC ................................... 29,746 4,000 CLP HOLDINGS LTD ............................... 17,316 1,000 * CONTACT ENERGY LTD ............................. 1,385 100 ELECTRABEL NV .................................. 24,400 900 ELECTRICIDADE DE PORTUGAL S.A. ................. 17,056 1,800 ENDESA S.A. .................................... 36,855 11,800 * ENEL S.P.A. .................................... 48,935 700 GAS NATURAL SDG S.A. ........................... 14,946 8,000 HONG KONG & CHINA GAS CO LTD ................... 9,660 1,500 IBERDROLA S.A. ................................. 18,936 1,100 ITALGAS S.P.A. ................................. 5,834 2,000 KANSAI ELECTRIC POWER CO, INC .................. 29,720 2,600 NATIONAL GRID GROUP PLC ........................ 23,559 5,000 OSAKA GAS CO LTD ............................... 10,439 900 RHEIN-WESTFALEN ELECTRIC AG. ................... 27,341 3,300 SCOTTISH POWER PLC ............................. 23,937 300 SUEZ LYONNAISE DES EAUX S.A. ................... 54,973 1,000 TOHOKU ELECTRIC POWER CO, INC .................. 12,405 3,000 TOKYO ELECTRIC POWER CO, INC ................... 68,986 SHARES VALUE ------ ----------- 6,000 TOKYO GAS CO LTD ............................... $ 11,568 500 * UNION ELECTRICA FENOSA S.A. .................... 10,150 800 VEBA AG. ....................................... 33,423 1,100 VIAG AG. ....................................... 18,501 1,100 VIVENDI S.A. ................................... 150,221 ----------- 731,990 ----------- ELECTRONIC AND OTHER ELECTRIC EQUIPMENT--12.99% 600 * ABB LTD (SWITZERLAND) .......................... 64,750 200 ADVANTEST CORP ................................. 34,892 200 * ASM LITHOGRAPHY HOLDINGS NV .................... 29,994 4,500 * CHARTERED SEMICONDUCTOR MANUFACTURING ................................. 428,625 5,600 * EPCOS AG. ...................................... 764,224 27,000 ERG LTD ........................................ 208,875 8,000 FUJITSU LTD .................................... 255,066 1,000 FURUKAWA ELECTRIC CO LTD ....................... 16,082 8,000 HITACHI LTD .................................... 102,628 29,000 JOHNSON ELECTRIC HOLDINGS LTD .................. 191,857 500 KONINKLIJKE PHILIPS ELECTRONICS NV ............. 97,890 4,000 MATSUSHITA ELECTRIC INDUSTRIAL CO LTD .......... 115,118 5,000 MITSUBISHI ELECTRIC CORP ....................... 45,144 2,000 MURATA MANUFACTURING CO LTD .................... 393,133 3,000 NIPPON ELECTRIC CORP ........................... 78,015 7,100 * NOKIA OYJ ...................................... 1,553,707 1,500 ROHM CO ........................................ 486,713 4,000 SANYO ELECTRIC CO LTD .......................... 23,700 2,000 SHARP CORP ..................................... 42,417 1,300 SONY CORP ...................................... 321,560 5,300 ST MICROELECTRONICS NV ......................... 1,138,341 1,000 SUMITOMO ELECTRIC INDUSTRIES CO ................ 13,477 7,000 TOSHIBA CORP ................................... 58,988 ----------- 6,465,196 ----------- ENGINEERING AND MANAGEMENT SERVICES--0.01% 6,000 SINGAPORE TECHNOLOGIES ENGINEERING LTD ............................... 6,867 ----------- FOOD AND KINDRED PRODUCTS--0.54% 1,000 AJINOMOTO CO LTD ............................... 11,634 1,000 ASAHI BREWERIES LTD ............................ 9,668 3,800 CADBURY SCHWEPPES LTD .......................... 21,760 100 DANONE GROUP ................................... 17,466 6,300 DIAGEO PLC (CLASS A) ........................... 38,189 3,000 FOSTERS BREWING GROUP LTD ...................... 7,809 500 HEINEKEN NV .................................... 23,127 2,000 KIRIN BREWERY CO LTD ........................... 23,983 1,000 LION NATHAN LTD ................................ 1,638 100 LVMH MOET HENNESSY LOUIS VUITTON ............... 40,217 600 ORKLA ASA ...................................... 9,077 5,300 UNILEVER LTD ................................... 28,739 900 UNILEVER NV CERTIFICATE ........................ 36,811 ----------- 270,118 ----------- FOOD STORES--0.32% 600 CARREFOUR SUPERMARCHE S.A. ..................... 84,080 100 CASINO GUICHARD-PERRACHON S.A. ................. 9,046 100 DELHAIZE FRERES NV ............................. 4,870 1,000 KONINKLIJKE AHOLD NV ........................... 21,815 12,700 TESCO PLC ...................................... 35,585 2,000 WOOLWORTHS LTD ................................. 6,016 ----------- 161,412 ----------- GENERAL MERCHANDISE STORES--0.17% 2,000 COLES MYER LTD ................................. 7,623 2,500 KINGFISHER PLC ................................. 20,659 5,200 MARKS & SPENCER PLC ............................ 19,085 200 PINAULT-PRINTEMPS-REDOUTE S.A. ................. 39,484 ----------- 86,851 -----------
B-49 See notes to financial statements.
SHARES VALUE ------ ----------- HEAVY CONSTRUCTION, EXCEPT BUILDING--0.06% 400 GROUPE GTM ...................................... $ 32,019 ----------- HOLDING AND OTHER INVESTMENT OFFICES--0.98% 2,900 ALLIED ZURICH PLC ............................... 23,805 22,000 HUTCHINSON WHAMPOA LTD .......................... 414,031 1,000 * LEND LEASE CORP LTD ............................. 12,770 200 PROMISE CO LTD .................................. 13,486 2,000 SUMITOMO CORP ................................... 25,525 ----------- 489,617 ----------- HOTELS AND OTHER LODGING PLACES--0.02% 300 ACCOR S.A. ...................................... 10,358 ----------- INDUSTRIAL MACHINERY AND EQUIPMENT--0.59% 10,000 * JOT AUTOMATION GROUP OYJ ........................ 106,667 2,000 KOMATSU LTD ..................................... 8,784 3,000 KUBOTA CORP ..................................... 9,226 1,000 MINEBEA CO LTD .................................. 12,113 8,000 MITSUBISHI HEAVY INDUSTRIES LTD ................. 22,497 1,000 NSK LTD ......................................... 6,771 2,700 THK CO LTD ...................................... 127,222 ----------- 293,280 ----------- INSTRUMENTS AND RELATED PRODUCTS--1.14% 2,000 CANON, INC ...................................... 80,507 1,000 FUJI PHOTO FILM CO LTD .......................... 40,912 58,700 INVENSYS PLC .................................... 221,929 300 KEYENCE CORP .................................... 102,703 2,000 RICOH CO LTD .................................... 41,100 1,300 ST ASSEMBLY TEST SERVICES LTD (ADR) ............. 78,081 ----------- 565,232 ----------- INSURANCE AGENTS, BROKERS AND SERVICE--0.08% 1,600 FORTIS B ........................................ 39,796 ----------- INSURANCE CARRIERS--1.48% 1,100 AEGON NV ........................................ 72,723 400 ALLIANZ AG. (REGD) .............................. 158,631 2,000 AMP LTD ......................................... 19,622 2,100 ASSICURAZIONI GENERALI S.P.A. ................... 59,747 700 AXA ............................................. 85,874 2,400 CGU PLC ......................................... 27,922 1,000 COLONIAL LTD .................................... 4,764 9,400 LEGAL & GENERAL GROUP PLC ....................... 22,109 300 MUENCHENER RUECKVER AG. (REGD) .................. 92,586 3,600 PRUDENTIAL PLC .................................. 53,874 900 RAS S.P.A. ...................................... 8,133 1,000 SKANDIA FORSAKRINGS AB .......................... 56,357 3,000 TOKIO MARINE & FIRE INSURANCE CO LTD ............ 31,798 100 ZURICH ALLIED AG. ............................... 40,769 ----------- 734,909 ----------- LOCAL AND INTERURBAN PASSENGER TRANSIT--0.28% 5 CENTRAL JAPAN RAILWAY CO ........................ 32,870 23 EAST JAPAN RAILWAY CO ........................... 108,158 ----------- 141,028 ----------- LUMBER AND WOOD PRODUCTS--0.02% 3,000 CARTER HOLT HARVEY LTD .......................... 2,820 1,000 SEKISUI HOUSE LTD ............................... 7,787 ----------- 10,607 ----------- METAL MINING--0.08% 10 * ALUSUISSE LONZA HOLDINGS AG. (REGD) ............. 6,031 1,900 RIO TINTO LTD PLC (REGD) ........................ 27,743 2,000 WMC LTD ......................................... 7,515 ----------- 41,289 ----------- MISCELLANEOUS MANUFACTURING INDUSTRIES--0.61% 1,700 NINTENDO CO LTD ................................. 305,383 ----------- SHARES VALUE ------ ----------- MISCELLANEOUS RETAIL--0.20% 3,000 * QXL.COM PLC LTD ................................. $ 98,149 ----------- MOTION PICTURES--1.04% 4,300 EM.TV & MERCHANDISING AG. ....................... 441,666 9,000 TOEI CO ......................................... 76,773 ----------- 518,439 ----------- NONDEPOSITORY INSTITUTIONS--0.80% 4,100 HALIFAX PLC ..................................... 39,221 8,500 * ICICI LTD (SPONS ADR) ........................... 244,375 1,600 ING GROEP NV .................................... 77,494 900 MEDIOBANCA S.P.A. ............................... 7,985 300 TAKEFUJI CORP ................................... 30,923 ----------- 399,998 ----------- OIL AND GAS EXTRACTION--0.56% 1,800 IHC CALAND NV ................................... 79,769 1,400 TOTAL FINA S.A. (CLASS B) ....................... 199,022 ----------- 278,791 ----------- PAPER AND ALLIED PRODUCTS--0.08% 2,900 * JEFFERSON SMURFIT GROUP PLC ..................... 6,153 2,000 NIPPON PAPER INDUSTRIES CO ...................... 11,474 2,000 OJI PAPER CO LTD ................................ 11,850 400 UPM-KYMMENE OY .................................. 9,737 ----------- 39,214 ----------- PETROLEUM AND COAL PRODUCTS--1.74% 56,000 BP AMOCO PLC .................................... 487,976 3,000 BROKEN HILL PROPRIETARY CO LTD .................. 31,732 13,000 ENTE NAZIONALE IDROCARBURI S.P.A. ............... 62,939 3,000 NIPPON MITSUBISHI OIL CO ........................ 11,681 800 NORSK HYDRO AS .................................. 30,210 2,000 REPSOL S.A. ..................................... 38,770 3,600 ROYAL DUTCH PETROLEUM CO ........................ 202,139 ----------- 865,447 ----------- PRIMARY METAL INDUSTRIES--0.13% 7,000 * KAWASAKI STEEL CORP ............................. 10,270 16,000 NIPPON STEEL CORP ............................... 33,406 800 * THYSSEN KRUPP AG. ............................... 18,038 ----------- 61,714 ----------- PRINTING AND PUBLISHING--2.70% 1,000 DAI NIPPON PRINTING CO LTD ...................... 15,828 14,000 ELSEVIER UTIGEVERSMIJ NV ........................ 139,612 700 INDEPENDENT NEWS & MEDIA PLC .................... 7,392 200 MONDADORI (ARNOLDO) EDITORE S.P.A. .............. 6,866 8,000 NEWS CORP LTD ................................... 125,251 24,100 PEARSON PLC ..................................... 928,659 200 SCHIBSTED ASA ................................... 6,671 1,600 * SHOBUNSHA PUBLICATIONS, INC ..................... 101,575 1,000 TOPPAN PRINTING CO LTD .......................... 11,427 ----------- 1,343,281 ----------- RAILROAD TRANSPORTATION--0.05% 3,000 KINKI NIPPON RAILWAY CO LTD ..................... 12,132 2,000 NIPPON EXPRESS CO LTD ........................... 13,204 ----------- 25,336 ----------- REAL ESTATE--0.27% 4,000 CHEUNG KONG HOLDINGS LTD ........................ 56,523 3,000 MITSUBISHI ESTATE CO LTD ........................ 28,074 1,000 MITSUI FUDOSAN CO LTD ........................... 9,122 4,000 SUN HUNG KAI PROPERTIES LTD ..................... 40,465 ----------- 134,184 ----------- RUBBER AND MISCELLANEOUS PLASTIC PRODUCTS--0.67% 2,000 BRIDGESTONE CORP ................................ 41,100 125,000 * OMNI INDUSTRIES LTD ............................. 283,192 3,100 PIRELLI S.P.A. .................................. 8,191 ----------- 332,483 -----------
B-50 See notes to financial statements.
SHARES VALUE ------ ----------- SECURITY AND COMMODITY BROKERS--0.53% 1,100 3I GROUP PLC ................................. $ 24,015 3,000 DAIWA SECURITIES GROUP, INC .................. 47,937 3,000 * ITOCHU CORP .................................. 15,349 3,000 * MARUBENI CORP ................................ 10,721 3,000 MITSUBISHI CORP .............................. 24,519 3,000 MITSUI & CO LTD .............................. 22,177 4,000 NOMURA SECURITIES CO LTD ..................... 117,375 ----------- 262,093 ----------- SPECIAL TRADE CONTRACTORS--0.04% 300 SCHNEIDER ELECTRIC S.A. ...................... 17,750 ----------- STONE, CLAY, AND GLASS PRODUCTS--0.65% 2,000 ASAHI GLASS CO LTD ........................... 14,540 8,800 CRH PLC ...................................... 151,927 21,000 HANSON PLC ................................... 115,695 200 LAFARGE S.A. (BR) ............................ 14,659 1,000 * NIPPON SHEET GLASS CO LTD .................... 10,693 100 ST. GOBAIN S.A. .............................. 11,853 200 * WIENERBERGER BAUSTOFF AG. .................... 3,722 ----------- 323,089 ----------- TOBACCO PRODUCTS--0.07% 500 ALTADIS S.A. ................................. 5,449 4 JAPAN TOBACCO, INC ........................... 27,425 ----------- 32,874 ----------- TRANSPORTATION BY AIR--0.11% 100 * AUSTRIAN AIRLINES/OEST LUFTV AG. ............. 1,437 6,000 CATHAY PACIFIC AIRWAYS LTD ................... 8,786 4,000 JAPAN AIRLINES CO LTD ........................ 9,254 3,000 SINGAPORE AIRLINES LTD (LR) .................. 27,996 2,000 SWIRE PACIFIC LTD (CLASS A) .................. 8,863 ----------- 56,336 ----------- TRANSPORTATION EQUIPMENT--1.91% 5,400 BRITISH AEROSPACE PLC ........................ 23,953 1,700 DAIMLERCHRYSLER AG. .......................... 103,291 SHARES VALUE ------ ----------- 2,000 DENSO CORP ................................... $ 41,946 700 FIAT S.P.A. .................................. 23,898 2,000 HONDA MOTOR CO LTD ........................... 72,419 9,000 * NISSAN MOTOR CO LTD .......................... 36,651 1,000 * SIEMENS AG. (REGD) ........................... 179,868 300 * THOMSON-CSF .................................. 13,705 9,000 TOYOTA MOTOR CORP ............................ 407,993 600 VOLKSWAGEN AG. ............................... 23,731 1,000 VOLVO AB SERIES B FREE ....................... 24,971 ----------- 952,426 ----------- TRANSPORTATION SERVICES--0.30% 11,000 * AMADEUS GLOBAL TRAVEL DISTRIBUTION S.A. ..... 149,372 ----------- TRUCKING AND WAREHOUSING--0.09% 800 TNT POST GROUP NV ............................ 20,098 1,000 YAMATO TRANSPORT CO LTD ...................... 24,782 ----------- 44,880 ----------- WATER TRANSPORTATION--0.02% 3,000 NIPPON YUSEN KABUSHIKI KAISHA ................ 11,116 ----------- WHOLESALE TRADE-DURABLE GOODS--2.37% 15,300 * ARM HOLDINGS PLC ............................. 1,176,865 ----------- TOTAL COMMON STOCK (Cost $45,578,606) ........................... 45,153,011 -----------
PRINCIPAL - --------- SHORT TERM INVESTMENT--41.00% U.S. GOVERNMENT AGENCY--41.00% FEDERAL HOME LOAN BANK (FHLB) $20,423,000 5.540%, 03/13/00 20,416,714 ----------- TOTAL SHORT TERM INVESTMENT (Cost $20,416,714) ..................................... 20,416,714 ----------- TOTAL PORTFOLIO (Cost $67,983,565) ..................................... $67,620,371 =========== - ------------ * Non-income producing The cost of investments for federal income tax purposes is substantially the same as the amount disclosed above.
B-51 See notes to financial statements. TIAA-CREF LIFE FUNDS STATEMENT OF INVESTMENTS--SOCIAL CHOICE EQUITY FUND MARCH 10, 2000 SUMMARY BY INDUSTRY
VALUE % ----------- ------ COMMON STOCK APPAREL AND ACCESSORY STORES ............... $ 87,222 0.35% APPAREL AND OTHER TEXTILE PRODUCTS ......... 15,667 0.06 AUTO REPAIR, SERVICES AND PARKING .......... 1,279 0.01 BUILDING MATERIALS AND GARDEN SUPPLIES ..... 342,104 1.38 BUSINESS SERVICES .......................... 2,846,285 11.49 CHEMICALS AND ALLIED PRODUCTS .............. 2,550,076 10.29 COMMUNICATIONS ............................. 3,194,763 12.89 DEPOSITORY INSTITUTIONS .................... 1,391,665 5.62 EATING AND DRINKING PLACES ................. 156,814 0.63 ELECTRIC, GAS, AND SANITARY SERVICES ....... 753,582 3.04 ELECTRONIC AND OTHER ELECTRIC EQUIPMENT .... 2,403,326 9.70 ENGINEERING AND MANAGEMENT SERVICES ........ 19,389 0.08 FABRICATED METAL PRODUCTS .................. 156,842 0.63 FOOD AND KINDRED PRODUCTS .................. 872,367 3.52 FOOD STORES ................................ 95,924 0.39 FURNITURE AND FIXTURES ..................... 33,690 0.14 FURNITURE AND HOMEFURNISHINGS STORES ....... 18,621 0.07 GENERAL BUILDING CONTRACTORS ............... 7,498 0.03 GENERAL MERCHANDISE STORES ................. 648,099 2.61 HEALTH SERVICES ............................ 74,920 0.30 HOLDING AND OTHER INVESTMENT OFFICES ....... 52,704 0.21 INDUSTRIAL MACHINERY AND EQUIPMENT ......... 3,139,929 12.67 INSTRUMENTS AND RELATED PRODUCTS ........... 452,882 1.83 INSURANCE AGENTS, BROKERS AND SERVICE ...... 100,584 0.41 INSURANCE CARRIERS ......................... 1,028,489 4.15 MISCELLANEOUS MANUFACTURING INDUSTRIES ................................ 229,837 0.93 MISCELLANEOUS RETAIL ....................... 102,974 0.42 MOTION PICTURES ............................ 503,376 2.03 NONDEPOSITORY INSTITUTIONS ................. 664,974 2.68 VALUE % ----------- ------ OIL AND GAS EXTRACTION ..................... $ 688,421 2.78% PAPER AND ALLIED PRODUCTS .................. 149,791 0.60 PETROLEUM AND COAL PRODUCTS ................ 91,164 0.37 PRIMARY METAL INDUSTRIES ................... 91,910 0.37 PRINTING AND PUBLISHING .................... 260,694 1.05 RAILROAD TRANSPORTATION .................... 52,552 0.21 RUBBER AND MISCELLANEOUS PLASTIC PRODUCTS .................................. 116,057 0.47 SECURITY AND COMMODITY BROKERS ............. 533,302 2.15 STONE, CLAY, AND GLASS PRODUCTS ............ 154,923 0.62 TRANSPORTATION BY AIR ...................... 118,315 0.48 TRANSPORTATION EQUIPMENT ................... 13,703 0.06 TRUCKING AND WAREHOUSING ................... 3,487 0.01 WHOLESALE TRADE-DURABLE GOODS .............. 84,257 0.34 WHOLESALE TRADE-NONDURABLE GOODS ........... 282,725 1.14 ----------- ------ TOTAL COMMON STOCK (Cost $24,936,608) ......................... 24,587,183 99.21 ----------- ------ SHORT TERM INVESTMENT U.S. GOVERNMENT AGENCY ..................... 189,941 0.77 ----------- ------ TOTAL SHORT TERM INVESTMENT (Cost $189,941) ............................ 189,941 0.77 ----------- ------ TOTAL PORTFOLIO (Cost $25,126,549) ......................... 24,777,124 99.98 OTHER ASSETS & LIABILITIES, NET ............. 4,159 0.02 ----------- ------ NET ASSETS .................................. $24,781,283 100.00% =========== ======
B-52 See notes to financial statements. TIAA-CREF LIFE FUNDS STATEMENT OF INVESTMENTS--SOCIAL CHOICE EQUITY FUND MARCH 10, 2000
SHARES VALUE ------ ----------- COMMON STOCK--99.21% APPAREL AND ACCESSORY STORES--0.35% 1,891 GAP, INC ......................................... $ 87,222 ----------- APPAREL AND OTHER TEXTILE PRODUCTS--0.06% 162 LIZ CLAIBORNE, INC ............................... 7,411 358 VF CORP .......................................... 8,256 ----------- 15,667 ----------- AUTO REPAIR, SERVICES AND PARKING--0.01% 68 RYDER SYSTEM, INC ................................ 1,279 ----------- BUILDING MATERIALS AND GARDEN SUPPLIES--1.38% 5,684 HOME DEPOT, INC .................................. 305,159 821 LOWES COS, INC ................................... 36,945 ----------- 342,104 ----------- BUSINESS SERVICES--11.49% 5,119 * AMERICA ONLINE, INC .............................. 302,980 2,883 AUTOMATIC DATA PROCESSING, INC ................... 127,212 1,299 COMPUTER ASSOCIATES INTERNATIONAL, INC ........... 86,383 1,368 ELECTRONIC DATA SYSTEMS CORP ..................... 84,132 959 FIRST DATA CORP .................................. 40,158 103 * IMATION CORP ..................................... 2,871 1,175 IMS HEALTH, INC .................................. 24,895 11,300 * MICROSOFT CORP ................................... 1,141,300 500 * NOVELL, INC ...................................... 15,687 505 OMNICOM GROUP, INC ............................... 42,262 6,100 * ORACLE CORP ...................................... 497,912 3,400 * SUN MICROSYSTEMS, INC ............................ 320,237 900 * YAHOO, INC ....................................... 160,256 ----------- 2,846,285 ----------- CHEMICALS AND ALLIED PRODUCTS--10.29% 1,913 AIR PRODUCTS & CHEMICALS, INC .................... 47,705 495 ALLERGAN, INC .................................... 23,574 470 * ALZA CORP ........................................ 17,272 2,500 * AMGEN, INC ....................................... 148,906 1,025 AVON PRODUCTS, INC ............................... 26,906 5,555 BRISTOL MYERS SQUIBB CO .......................... 290,943 825 CABOT CORP ....................................... 22,326 1,123 CLOROX CO ........................................ 33,549 2,203 COLGATE PALMOLIVE CO ............................. 94,178 144 * FOREST LABORATORIES, INC ......................... 10,188 234 FULLER (H.B.) CO ................................. 12,051 120 * GENZYME CORP (GENERAL DIVISION) .................. 6,915 63 * GENZYME SURGICAL PRODUCTS ........................ 803 154 * GENZYME-MOLECULAR ONCOLOGY ....................... 4,774 1,055 HANNA (M.A.) CO .................................. 10,945 723 INTERNATIONAL FLAVORS & FRAGRANCES, INC ................................. 22,593 192 * IVAX CORP ........................................ 5,400 4,246 JOHNSON & JOHNSON CO ............................. 300,669 2,500 LILLY (ELI) & CO ................................. 152,968 414 MALLINCKRODT, INC ................................ 9,858 6,287 MERCK & CO, INC .................................. 374,469 205 MYLAN LABORATORIES, INC .......................... 5,714 214 NCH CORP ......................................... 9,242 8,952 PFIZER, INC ...................................... 314,439 1,040 PHARMACIA & UPJOHN, INC .......................... 54,080 2,104 PPG INDUSTRIES, INC .............................. 98,230 1,375 PRAXAIR, INC ..................................... 46,062 4,285 PROCTER & GAMBLE CO .............................. 227,372 4,062 SCHERING-PLOUGH CORP ............................. 152,071 800 SCHULMAN (A.), INC ............................... 10,387 700 SIGMA ALDRICH CORP ............................... 15,487 ----------- 2,550,076 ----------- SHARES VALUE ------ ----------- COMMUNICATIONS--12.89% 651 ALLTEL CORP ...................................... $ 44,308 8,022 AT & T CORP ...................................... 435,694 465 * AT & T CORP--LIBERTY MEDIA GROUP (CLASS A) ....................................... 24,470 4,276 BELL ATLANTIC CORP ............................... 245,068 5,532 BELLSOUTH CORP ................................... 258,275 1,627 * CBS CORP ......................................... 93,349 676 * CLEAR CHANNEL COMMUNICATIONS, INC ................ 41,869 1,900 COMCAST CORP (CLASS A) SPECIAL ................... 76,831 651 * COX COMMUNICATIONS, INC (CLASS A) ................ 29,335 1,300 * GLOBAL CROSSING LTD .............................. 75,400 7,440 LUCENT TECHNOLOGIES, INC ......................... 503,130 6,000 * MCI WORLDCOM, INC ................................ 280,125 1,747 * MEDIA ONE GROUP, INC ............................. 136,484 700 * NEXTEL COMMUNICATIONS, INC (CLASS A) ............. 111,737 9,148 SBC COMMUNICATIONS, INC .......................... 384,216 2,115 SPRINT CORP (FON GROUP) .......................... 129,808 1,779 * SPRINT CORP (PCS GROUP) .......................... 106,184 1,648 U.S. WEST, INC ................................... 115,978 1,896 * VIACOM, INC (CLASS B) ............................ 102,502 ----------- 3,194,763 ----------- DEPOSITORY INSTITUTIONS--5.62% 5,181 BANK OF AMERICA CORP ............................. 222,135 2,460 BANK OF NEW YORK CO, INC ......................... 78,105 3,484 BANK ONE CORP .................................... 85,358 2,517 CHASE MANHATTAN CORP ............................. 198,056 500 FIFTH THIRD BANCORP .............................. 22,937 3,310 FIRST UNION CORP ................................. 105,506 1,700 FIRSTAR CORP ..................................... 29,856 2,385 FLEETBOSTON FINANCIAL CORP ....................... 61,264 836 KEYCORP .......................................... 13,428 2,881 MBNA CORP ........................................ 63,562 1,077 MELLON FINANCIAL CORP ............................ 29,684 699 MORGAN (J.P.) & CO, INC .......................... 74,137 1,760 NATIONAL CITY CORP ............................... 30,470 1,049 PNC BANK CORP .................................... 39,271 474 PROVIDIAN FINANCIAL CORP ......................... 30,750 1,058 SUNTRUST BANKS, INC .............................. 50,122 2,040 U.S. BANCORP ..................................... 36,720 645 WACHOVIA CORP .................................... 35,071 1,260 WASHINGTON MUTUAL, INC ........................... 27,483 4,901 WELLS FARGO CO ................................... 157,750 ----------- 1,391,665 ----------- EATING AND DRINKING PLACES--0.63% 662 DARDEN RESTAURANTS, INC .......................... 8,564 4,651 MCDONALD'S CORP .................................. 148,250 ----------- 156,814 ----------- ELECTRIC, GAS, AND SANITARY SERVICES--3.04% 696 AGL RESOURCES, INC ............................... 12,049 1,378 COLUMBIA ENERGY GROUP ............................ 78,201 1,942 EL PASO ENERGY CORP .............................. 76,830 1,044 EQUITABLE RESOURCES, INC ......................... 42,151 857 IDACORP, INC ..................................... 27,691 2,545 KEYSPAN CORP ..................................... 54,558 1,824 LOUISVILLE GAS & ELECTRIC ENERGY CORP ............ 40,128 866 MCN ENERGY GROUP, INC ............................ 21,595 1,066 NICOR, INC ....................................... 32,113 2,567 NISOURCE, INC .................................... 37,702 2,087 OGE ENERGY CORP .................................. 35,479 879 PEOPLES ENERGY CORP .............................. 24,172
B-53 See notes to financial statements.
SHARES VALUE ------ ----------- ELECTRIC, GAS, AND SANITARY SERVICES--(Continued) 2,773 POTOMAC ELECTRIC POWER CO .................... $ 54,766 1,759 PUGET SOUND ENERGY, INC ...................... 35,070 200 SOUTHERN UNION CO ............................ 2,662 2,568 TECO ENERGY, INC ............................. 45,742 2,725 WILLIAMS COS, INC ............................ 132,673 ----------- 753,582 ----------- ELECTRONIC AND OTHER ELECTRIC EQUIPMENT--9.70% 653 * ADVANCED MICRO DEVICES, INC .................. 34,445 461 BALDOR ELECTRIC CO ........................... 7,721 2,878 EMERSON ELECTRIC CO .......................... 118,357 200 * GLENAYRE TECHNOLOGIES, INC ................... 5,500 7,900 INTEL CORP ................................... 949,481 766 * MICRON TECHNOLOGY, INC ....................... 81,674 625 MOLEX, INC ................................... 39,169 654 * NATIONAL SEMICONDUCTOR CORP .................. 45,780 3,050 NORTEL NETWORKS CORP (U.S.) .................. 376,484 1,500 * QUALCOMM, INC ................................ 204,187 370 * SENSORMATIC ELECTRONICS CORP ................. 7,099 1,588 * SOLECTRON CORP ............................... 56,771 900 * TELLABS, INC ................................. 51,300 2,037 TEXAS INSTRUMENTS, INC ....................... 370,734 438 THOMAS & BETTS CORP .......................... 9,417 393 * VISHAY INTERTECHNOLOGY, INC .................. 22,179 460 WHIRLPOOL CORP ............................... 23,028 ----------- 2,403,326 ----------- ENGINEERING AND MANAGEMENT SERVICES--0.08% 717 DUN & BRADSTREET CORP ........................ 18,686 50 GARTNER GROUP, INC (CLASS A) ................. 703 ----------- 19,389 ----------- FABRICATED METAL PRODUCTS--0.63% 2,764 CROWN CORK & SEAL CO, INC .................... 37,659 2,914 GILLETTE CO .................................. 87,237 281 MARK IV INDUSTRIES, INC ...................... 5,707 1,428 MASCO CORP ................................... 26,239 ----------- 156,842 ----------- FOOD AND KINDRED PRODUCTS--3.52% 1,267 BESTFOODS, INC ............................... 48,858 1,703 CAMPBELL SOUP CO ............................. 49,280 6,539 COCA COLA CO ................................. 292,211 1,062 COCA COLA ENTERPRISES, INC ................... 22,302 1,634 GENERAL MILLS, INC ........................... 51,266 1,908 HEINZ (H.J.) CO .............................. 64,275 682 HERSHEY FOODS CORP ........................... 27,280 1,564 KELLOGG CO ................................... 35,874 112 MCCORMICK & CO, INC (NON-VOTE) ............... 2,961 641 NABISCO GROUP HOLDINGS ....................... 5,608 50 PEPSI BOTTLING GROUP, INC .................... 990 4,410 PEPSICO, INC ................................. 135,331 815 QUAKER OATS CO ............................... 38,050 1,484 UNILEVER NV (NEW YORK SHS) ................... 61,215 313 WHITMAN CORP ................................. 3,521 540 WRIGLEY (WM) JR CO ........................... 33,345 ----------- 872,367 ----------- FOOD STORES--0.39% 1,394 ALBERTSONS, INC .............................. 33,456 1,839 * KROGER CO .................................... 27,125 1,008 * SAFEWAY, INC ................................. 35,343 ----------- 95,924 ----------- FURNITURE AND FIXTURES--0.14% 1,567 NEWELL RUBBERMAID, INC ....................... 33,690 ----------- FURNITURE AND HOMEFURNISHINGS STORES--0.07% 467 TANDY CORP ................................... 18,621 ----------- SHARES VALUE ------ ----------- GENERAL BUILDING CONTRACTORS--0.03% 251 HILLENBRAND INDUSTRIES, INC .................. $ 7,498 ----------- GENERAL MERCHANDISE STORES--2.61% 500 * COSTCO WHOLESALE CORP ........................ 22,062 204 * FEDERATED DEPARTMENT STORES, INC ............. 7,203 1,064 * K MART CORP .................................. 9,310 619 MAY DEPARTMENT STORES CO ..................... 15,475 575 PENNEY, (J.C.) CO, INC ....................... 8,014 1,059 SEARS ROEBUCK & CO ........................... 29,387 927 * TARGET CORP .................................. 56,373 10,436 WAL-MART STORES, INC ......................... 500,275 ----------- 648,099 ----------- HEALTH SERVICES--0.30% 2,250 COLUMBIA/HCA HEALTHCARE CORP ................. 47,109 62 * LIFEPOINT HOSPITALS, INC ..................... 957 1,214 * TENET HEALTHCARE CORP ........................ 25,114 118 * TRIAD HOSPITALS, INC ......................... 1,740 ----------- 74,920 ----------- HOLDING AND OTHER INVESTMENT OFFICES--0.21% 80 CARRAMERICA REALTY CORP ...................... 1,650 517 CRESCENT REAL ESTATE EQUITIES CO ............. 8,562 284 DUKE-WEEKS REALTY CORP ....................... 5,112 50 FIRST INDUSTRIAL REALTY TRUST, INC ........... 1,300 77 LIBERTY PROPERTY TRUST CO .................... 1,732 97 ROUSE CO ..................................... 2,037 392 SIMON PROPERTY GROUP, INC .................... 9,016 88 SPIEKER PROPERTIES, INC ...................... 3,597 551 WEINGARTEN REALTY INVESTORS, INC ............. 19,698 ----------- 52,704 ----------- INDUSTRIAL MACHINERY AND EQUIPMENT--12.67% 700 * 3COM CORP .................................... 48,256 300 * APPLE COMPUTER, INC .......................... 37,725 800 * APPLIED MATERIALS, INC ....................... 154,450 7,500 * CISCO SYSTEMS, INC ........................... 1,022,812 4,566 COMPAQ COMPUTER CORP ......................... 130,131 334 CUMMINS ENGINE CO, INC ....................... 10,688 1,367 DEERE & CO ................................... 48,528 5,800 * DELL COMPUTER CORP ........................... 297,250 152 DIEBOLD, INC ................................. 3,695 2,521 * EMC CORP ..................................... 328,832 755 * GATEWAY, INC ................................. 47,187 329 GRACO, INC ................................... 9,746 2,583 HEWLETT-PACKARD CO ........................... 379,055 844 INGERSOLL-RAND CO ............................ 30,384 4,521 * INTERNATIONAL BUSINESS MACHINES CORP ......... 474,987 238 NORDSON CORP ................................. 10,587 1,247 PITNEY BOWES, INC ............................ 57,517 472 * SMITH INTERNATIONAL, INC ..................... 30,444 1,177 TIMKEN CO .................................... 17,655 ----------- 3,139,929 ----------- INSTRUMENTS AND RELATED PRODUCTS--1.83% 283 BAUSCH & LOMB, INC ........................... 14,804 827 BAXTER INTERNATIONAL, INC .................... 46,363 1,239 BECTON DICKINSON & CO ........................ 39,648 300 BIOMET, INC .................................. 9,337 1,149 * BOSTON SCIENTIFIC CORP ....................... 24,344 1,060 * GUIDANT CORP ................................. 75,193 3,540 MEDTRONIC, INC ............................... 180,982 183 * ST. JUDE MEDICAL, INC ........................ 4,666 2,373 XEROX CORP ................................... 57,545 ----------- 452,882 ----------- INSURANCE AGENTS, BROKERS AND SERVICE--0.41% 1,349 MARSH & MCLENNAN COS, INC .................... 100,584 -----------
B-54 See notes to financial statements.
SHARES VALUE ------ ----------- INSURANCE CARRIERS--4.15% 2,551 ALLSTATE CORP ........................... $ 45,758 1,430 AMERICAN GENERAL CORP ................... 67,567 4,459 AMERICAN INTERNATIONAL GROUP, INC ....... 370,375 659 CHUBB CORP .............................. 29,860 691 CIGNA CORP .............................. 44,051 8,932 CITIGROUP, INC .......................... 437,109 120 CNA FINANCIAL CORP ...................... 3,127 689 CONSECO, INC ............................ 8,569 210 JEFFERSON-PILOT CORP .................... 10,710 176 SAFECO CORP ............................. 3,267 352 ST. PAUL COS, INC ....................... 8,096 ----------- 1,028,489 ----------- MISCELLANEOUS MANUFACTURING INDUSTRIES--0.93% 887 HASBRO, INC ............................. 12,695 1,642 MATTEL, INC ............................. 14,778 2,483 MINNESOTA MINING & MANUFACTURING CO...... 202,364 ----------- 229,837 ----------- MISCELLANEOUS RETAIL--0.42% 957 CVS CORP ................................ 29,128 422 * TOYS R US, INC .......................... 4,879 2,815 WALGREEN CO ............................. 68,967 ----------- 102,974 ----------- MOTION PICTURES--2.03% 5,929 DISNEY (WALT) CO ........................ 208,256 3,472 TIME WARNER, INC ........................ 295,120 ----------- 503,376 ----------- NONDEPOSITORY INSTITUTIONS--2.68% 1,851 AMERICAN EXPRESS CO ..................... 234,498 2,434 ASSOCIATES FIRST CAPITAL CORP ........... 39,248 3,926 FEDERAL NATIONAL MORTGAGE ASSOCIATION ............................ 196,545 2,575 FREDDIE MAC ............................. 97,045 2,188 HOUSEHOLD INTERNATIONAL, INC ............ 71,657 150 LEUCADIA NATIONAL CORP .................. 3,178 773 SLM HOLDINGS CORP ....................... 22,803 ----------- 664,974 ----------- OIL AND GAS EXTRACTION--2.78% 2,089 ANADARKO PETROLEUM CORP ................. 64,759 1,645 APACHE CORP ............................. 67,033 581 * BJ SERVICES CO .......................... 38,600 2,392 BURLINGTON RESOURCES, INC ............... 75,348 1,404 HELMERICH & PAYNE, INC .................. 37,908 1,201 MITCHELL ENERGY & DEVELOPMENT CORP (CLASS A) .............................. 27,322 941 * NABORS INDUSTRIES, INC .................. 34,346 1,385 NOBLE AFFILIATES, INC ................... 37,914 912 * NOBLE DRILLING CORP ..................... 34,827 1,564 * PARKER DRILLING CO ...................... 6,647 1,259 * ROWAN COS, INC .......................... 33,127 3,499 * SANTA FE SNYDER CORP .................... 31,491 1,307 * TRANSOCEAN SEDCO FOREX, INC ............. 57,834 3,917 UNION PACIFIC RESOURCES GROUP, INC ...... 44,066 1,009 VASTAR RESOURCES, INC ................... 62,053 690 * WEATHERFORD INTERNATIONAL, INC .......... 35,146 ----------- 688,421 ----------- PAPER AND ALLIED PRODUCTS--0.60% 1,323 AVERY DENNISON CORP ..................... 80,041 1,160 CONSOLIDATED PAPERS, INC ................ 39,150 1,671 SONOCO PRODUCTS CO ...................... 30,600 ----------- 149,791 ----------- SHARES VALUE ------ ----------- PETROLEUM AND COAL PRODUCTS--0.37% 1,553 MURPHY OIL CORP ......................... $ 87,259 214 WD-40 CO ................................ 3,905 ----------- 91,164 ----------- PRIMARY METAL INDUSTRIES--0.37% 1,062 BIRMINGHAM STEEL CORP ................... 3,650 1,298 NUCOR CORP .............................. 62,385 2,000 WORTHINGTON INDUSTRIES, INC ............. 25,875 ----------- 91,910 ----------- PRINTING AND PUBLISHING--1.05% 442 DELUXE CORP ............................. 10,939 519 DOW JONES & CO, INC ..................... 33,605 1,396 GANNETT CO, INC ......................... 91,525 299 KNIGHT-RIDDER, INC ...................... 13,492 1,299 MCGRAW HILL COS, INC .................... 63,651 625 NEW YORK TIMES CO (CLASS A) ............. 26,054 447 TIMES MIRROR CO SERIES A ................ 21,428 ----------- 260,694 ----------- RAILROAD TRANSPORTATION--0.21% 3,985 NORFOLK SOUTHERN CORP ................... 52,552 ----------- RUBBER AND MISCELLANEOUS PLASTIC PRODUCTS--0.47% 67 BANDAG, INC ............................. 1,591 1,601 ILLINOIS TOOL WORKS, INC ................ 87,054 1,020 NIKE, INC (CLASS B) ..................... 27,412 ----------- 116,057 ----------- SECURITY AND COMMODITY BROKERS--2.15% 103 BEAR STEARNS COS, INC ................... 4,242 1,182 MERRILL LYNCH & CO, INC ................. 124,036 3,177 MORGAN STANLEY, DEAN WITTER, & CO ....... 275,604 180 PAINE WEBBER GROUP, INC ................. 7,110 2,037 SCHWAB (CHARLES) CORP ................... 106,433 142 THE GOLDMAN SACHS GROUP, INC ............ 15,877 ----------- 533,302 ----------- STONE, CLAY, AND GLASS PRODUCTS--0.62% 809 CORNING, INC ............................ 154,923 ----------- TRANSPORTATION BY AIR--0.48% 659 * AMR CORP ................................ 37,480 404 DELTA AIRLINES, INC ..................... 19,316 946 * FEDEX CORP .............................. 31,750 1,593 SOUTHWEST AIRLINES CO ................... 29,769 ----------- 118,315 ----------- TRANSPORTATION EQUIPMENT--0.06% 328 FEDERAL-MOGUL CORP ...................... 5,166 105 FLEETWOOD ENTERPRISES, INC .............. 1,548 292 MODINE MANUFACTURING CO ................. 6,989 ----------- 13,703 ----------- TRUCKING AND WAREHOUSING--0.01% 284 ARNOLD INDUSTRIES, INC .................. 3,487 ----------- WHOLESALE TRADE-DURABLE GOODS--0.34% 248 AVNET, INC .............................. 15,732 2,130 GENUINE PARTS CO ........................ 44,064 524 GRAINGER (W.W.), INC .................... 20,763 569 IKON OFFICE SOLUTIONS, INC .............. 3,698 ----------- 84,257 ----------- WHOLESALE TRADE-NONDURABLE GOODS--1.14% 50 BERGEN BRUNSWIG CORP (CLASS A) .......... 234 829 CARDINAL HEALTH, INC .................... 34,662 2,903 ENRON CORP .............................. 197,873 605 MCKESSON HBOC, INC ...................... 11,230 1,347 SYSCO CORP .............................. 38,726 ----------- 282,725 ----------- TOTAL COMMON STOCK (Cost $24,936,608) ..................... 24,587,183 -----------
B-55 See notes to financial statements.
PRINCIPAL VALUE --------- -------- SHORT TERM INVESTMENT--0.77% U.S. GOVERNMENT AGENCY--0.77% FEDERAL HOME LOAN BANK (FHLB) $190,000 5.540%, 03/13/00 $ 189,941 ----------- TOTAL SHORT TERM INVESTMENT (Cost $189,941) .................................... 189,941 ----------- TOTAL PORTFOLIO (Cost $25,126,549) ................................. $24,777,124 ===========
------------ * Non-income producing The cost of investment for federal income tax purposes is substantially the same as the amount disclosed above. B-56 See notes to financial statements. PART C OTHER INFORMATION Item 23. Exhibits (a) Amended and Restated Declaration of Trust * (b) N/A (c) N/A (d) Investment advisory contract * and Amendment thereto *** (e) Participation/Distribution Agreement between Registrant, TIAA-CREF Life Insurance Company and TPIS * (f) N/A (g) Custodian agreement * (h) (1) Administration Agreement with State Street ** (2) Participation/Distribution Agreement (see Exhibit (e) above) (i) Opinion and Consent of Charles H. Stamm, Esq.*** (j) (1) Consent of Sutherland Asbill & Brennan LLP *** (2) Consent of Ernst & Young LLP *** (k) Omitted Financial Statements** (l) Seed Money Agreements *** (m) N/A (n) N/A (p) Code of Ethics (Policy Statement on Personal Trading)*** - ----------------- * Filed on December 9, 1998 as an exhibit to Pre-Effective Amendment No. 1 to this Registration Statement. ** Filed February, 2000 as part of the TIAA-CREF Life Funds Annual Report. *** Filed herewith. C-1 Item 24. Persons Controlled by or Under Common Control With Registrant As the ultimate parent (holding indirectly 100% of the voting securities) of Advisors, investment adviser of Registrant, Teachers Insurance and Annuity Association (TIAA) may be deemed to control Registrant (although Registrant does not concede such control). As the beneficial owner of more than 25% of the voting securities of one or more series of Registrant's shares, TIAA controls Registrant. Therefore, persons directly or indirectly controlled by TIAA may be deemed to be under common control with Registrant. The following companies are subsidiaries of TIAA and are included in the consolidated financial statements of TIAA. All TIAA subsidiary companies are Delaware corporations, except as indicated. All trusts are Pennsylvania business trusts. AIC Properties, Inc. BT Properties, Inc. College Credit Trust DAN Properties, Inc. ETC Repackaging, Inc. Illinois Teachers Properties, Inc. JV Florida One, Inc. JV Florida Four, Inc. JV Georgia One, Inc. JV Maryland Two, Inc. JV Michigan Three, Inc. JV Minnesota One, Inc. JV North Carolina One, Inc. JWL Properties, Inc. Liberty Place Retail, Inc. Liberty Place Retail II, Inc. Light Street Partners, LLP Macallister Holdings, Inc. MN Properties, Inc. M.O.A. Enterprises, Inc. M.O.A. Investors I, Inc. ND Properties, Inc. OWP Hawaii, LLC Savannah Teachers Properties, Inc. T114 Properties, Inc. T-Investment Properties Corp. T-Land Corp. TCT Holdings, Inc. Teachers Advisors, Inc. Teachers Boca Properties II, Inc. Teachers Boca Properties III, Inc. Teachers Mayflower, LLC Teachers Pennsylvania Realty, Inc. Teachers Personal Investors Services, Inc. Teachers Properties, Inc. Teachers REA, LLC Teachers REA II, LLC Teachers REA III, LLC Teachers Realty Corporation Teachers West, LLC TEO-NP, LLC TIAA Realty, Inc. C-2 TIAA Retail Commercial, LLC TIAA Timberlands I, LLC TIAA Timberlands II, LLC TIAA-CREF Enterprises, Inc. TIAA-CREF Individual & Institutional Services, Inc. TIAA-CREF Investment Management, LLC TIAA-CREF Life Insurance Company TIAA-CREF Tuition Financing, Inc. TIAA-CREF Trust Company, FSB TIAA-Fund Equities, Inc. TPI Housing, Inc. Washington Teachers Properties II, Inc. WRC Properties, Inc. 730 Properties, Inc. 730 Penn. Hotel Properties I, Inc. 730 Texas Forest Holdings, Inc. 485 Properties, LLC (1) All subsidiaries are Delaware corporations except as follows: A) Pennsylvania non-stock, non-profit corporations: Liberty Place Retail, Inc. Teachers Pennsylvania Realty, Inc. Teachers Realty Corporation B) College Credit Trust, a New York Trust C) TIAA-CREF Life Insurance Company is a New York corporation. D) TIAA-CREF Trust Company, FSB is a Federal Savings Bank. (2) All subsidiaries are 100% owned directly by TIAA, except as follows: (1) TIAA-CREF Enterprises, Inc. owns 100% of the stock of Teachers Advisors, Inc., Teachers Personal Investors Services, Inc., TIAA-CREF Life Insurance Company, TIAA-CREF Tuition Financing, Inc. and TCT Holdings, Inc. (2) TCT Holdings, Inc. owns 100% of TIAA-CREF Trust Company, FSB. (3) Macallister Holdings, Inc. owns 100% of T-Investment Properties Corp. and T-Land Corp. (4) Teachers Properties, Inc. owns 100% of TPI Housing, Inc. (5) 730 Properties, Inc. owns 100% of the stock of 730 Penn. Hotel Properties I, Inc. (3) All subsidiaries have as their sole purpose the ownership of investments which could, pursuant to New York State Insurance Law, be owned by TIAA itself, except the following: A) Teachers Advisors, Inc., which provides investment advice for the Registrant and others. B) Teachers Personal Investors Services, Inc., which provides broker-dealer services for the Registrant and others. C-3 C) TIAA-CREF Investment Management, LLC, which provides investment advice for College Retirement Equities Fund. D) TIAA-CREF Individual & Institutional Services, Inc., which provides broker-dealer and administrative services for College Retirement Equities Fund. E) TCT Holdings, Inc., which is a unitary thrift holding company, was formed for the sole purpose of holding stock of a federal chartered savings bank. F) TIAA-CREF Life Insurance Company, which is a subsidiary life insurance company of TIAA, is licensed under the State of New York to market certain life insurance products not currently offered by TIAA. G) TIAA-CREF Trust Company, FSB which is a federal chartered savings bank. H) TIAA-CREF Tuition Financing, Inc. which was formed to administer tuition assistance plans. Item 25. Indemnification As a Delaware business trust, Registrant's operations are governed by its Declaration of Trust dated August 13, 1998, as amended (the Declaration of Trust). Generally, Delaware business trust shareholders are not personally liable for obligations of the Delaware business trust under Delaware law. The Delaware Business Trust Act (the DBTA) provides that a shareholder of a trust shall be entitled to the same limitation of liability extended to shareholders of private for-profit Delaware corporations. Registrant's Declaration of Trust expressly provides that it has been organized under the DBTA and that the Declaration of Trust is to be governed by Delaware law. It is nevertheless possible that a Delaware business trust, such as Registrant, might become a party to an action in another state whose courts refuse to apply Delaware law, in which case Registrant's shareholders could be subject to personal liability. To protect Registrant's shareholders against the risk of personal liability, the Declaration of Trust: (i) contains an express disclaimer of shareholder liability for acts or obligations of Registrant and provides that notice of such disclaimer may be given in each agreement, obligation and instrument entered into or executed by Registrant or its Trustees; (ii) provides for the indemnification out of Trust property of any shareholders held personally liable for any obligations of Registrant or any series of Registrant; and (iii) provides that Registrant shall, upon request, assume the defense of any claim made against any shareholder for any act or obligation of Registrant and satisfy any judgment thereon. Thus, the risk of a shareholder incurring financial loss beyond his or her investment because of shareholder liability is limited to circumstances in which all of the following factors are present: (i) a court refuses to apply Delaware law; (ii) the liability arose under tort law or, if not, no contractual limitation of liability was in effect; and (iii) Registrant itself would be unable to meet its obligations. In the light C-4 of Delaware law, the nature of Registrant's business and the nature of its assets, the risk of personal liability to a shareholder is remote. The Declaration of Trust further provides that Registrant shall indemnify each of its Trustees and officers against liabilities and expenses reasonably incurred by them, in connection with, or arising out of, any action, suit or proceeding, threatened against or otherwise involving such Trustee or officer, directly or indirectly, by reason of being or having been a Trustee or officer of Registrant. The Declaration of Trust does not authorize Registrant to indemnify any Trustee or officer against any liability to which he or she would otherwise be subject by reason of or for willful misfeasance, bad faith, gross negligence or reckless disregard of such person's duties. Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to Trustees, officers and controlling persons, or otherwise, Registrant has been advised that in the opinion of the Commission such indemnification may be against public policy as expressed in the Act and may be, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by Registrant of expenses incurred or paid by a Trustee, officer or controlling person of Registrant in the successful defense of any action, suit or proceeding) is asserted by such Trustee, officer or controlling person in connection with the securities being registered, Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. Item 26. Business and Other Connections of Investment Adviser Teachers Advisors, Inc. (Advisors) also provides investment management services to TIAA-CREF Mutual Funds, TIAA-CREF Institutional Mutual Funds, and TIAA Separate Account VA-1. The trustees of Advisors are John H. Biggs, Martin L. Leibowitz, and Charles H. Stamm. Other officers of Advisors are Richard J. Adamski and Richard L. Gibbs. All officers of Advisors are also officers of TIAA-CREF Investment Management, LLC ("Investment Management"), and are employees of TIAA. Mr. Biggs is also a trustee of TIAA, College Retirement Equities Fund (CREF), TIAA-CREF Individual & Institutional Services, Inc. (Services), a manager of Investment Management, and a director of Teachers Personal Investor Services, Inc. (TPIS). He is Chief Executive Officer of TIAA and CREF. Mr. Biggs is also a director of: Ralston Purina Company, Checkerboard Square, St. Louis, MO 63164; and The Boeing Company, 7755 East Marginal Way South, Seattle, WA 98108. Mr. Leibowitz is a trustee of TIAA and CREF and a manager of Investment Management. He is Vice Chairman and Chief Investment Officer of TIAA and CREF. C-5 Mr. Stamm is a trustee of Services, a manager of Investment Management, and a director of TPIS. He is General Counsel of TIAA and CREF. Mr. Adamski is Treasurer of Services and TPIS. Mr. Gibbs is Executive Vice President of Services and TPIS. The principal business address of TIAA, CREF, Services, Investment Management, and TPIS is 730 Third Avenue, New York, NY 10017-3206. Item 27. Principal Underwriter Teachers Personal Investors Services, Inc. (TPIS) may be considered the principal underwriter for the Registrant. The officers of TPIS and their positions and offices with TPIS and the Registrant are listed in Schedule A of Form BD as currently on file with the Commission (File No. 8-47051), the text of which is hereby incorporated by reference. Item 28. Location of TIAA-CREF Life Funds' Accounts and Records All accounts, books and other documents required to be maintained by Section 31(a) of the 1940 Act and the rules promulgated thereunder will be maintained at the Registrant's home office, 730 Third Avenue, New York, NY 10017-3206, at other offices of the Registrant located at 750 Third Avenue and 485 Lexington Avenue, both in New York, NY 10017-3206, and at the offices of the Registrant's custodian, State Street Bank & Trust Company, 225 Franklin Street, Boston, MA 02209. In addition, certain duplicated records are maintained at Pierce Leahy Archives, 64 Leone Lane, Chester, NY 10918. Item 29. Management Services State Street Bank and Trust Company, a Massachusetts trust company (State Street) will provide certain management-related services to the Registrant pursuant to an agreement between the Registrant, State Street and Advisors, the investment advisor to the Registrant. Under the agreement, State Street will, among other things, keep the Registrant's books of account and compute the net asset value per share of the outstanding shares of each of the Registrant's portfolio. These services will be rendered pursuant to instructions received by State Street from Advisors or the Registrant in the ordinary course of business. Item 30. Undertakings Not applicable. C-6 SIGNATURES Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, Registrant, TIAA-CREF Life Funds, has duly caused this registration statement to be signed on its behalf by the undersigned, thereto duly authorized, in the City of New York, and State of New York, on the 23rd day of March , 2000. TIAA-CREF LIFE FUNDS By: /s/ Martin E. Galt III -------------------------------------------------- Name: Martin E. Galt III Title: President As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated
Signature Title Date - --------- ----- ---- /s/ Martin E. Galt III - -------------------------- President (Principal March 23, 2000 Martin E. Galt III Executive Officer) /s/ Richard L. Gibbs - -------------------------- Executive Vice President March 23, 2000 Richard L. Gibbs (Principal Financial and Accounting Officer) /s/ John J. McCormack - -------------------------- 3/23/00 John J. McCormack /s/ Laurence W. Franz - -------------------------- 3/23/00 Laurence W. Franz /s/ Jeanmarie C. Grisi - -------------------------- 3/23/00 Jeanmarie C. Grisi /s/ Richard M. Norman - -------------------------- 3/23/00 Richard M. Norman
Exhibit Index ------------- (d) Amendment to investment advisory contract and waiver letter (i) Opinion and Consent of Charles H. Stamm, Esq. (j) (1) Consent of Sutherland Asbill & Brennan LLP (2) Consent of Ernst & Young LLP (l) Seed Money Agreements (p) Code of Ethics (Policy Statement on Personal Trading) EX-99.(D) 2 AMENDMENT TO THE INVESTMENT MANAGEMENT AGREEMENT AMENDMENT TO THE INVESTMENT MANAGEMENT AGREEMENT FOR TIAA-CREF LIFE FUNDS AMENDMENT, dated February 29, 2000, to the Investment Management Agreement dated November 30, 1998 (the "Agreement), by and between TIAA-CREF Life Funds (the "Fund") and Teachers Advisors, Inc. ("Advisors"). WHEREAS, the Fund has established four additional series as of the date hereof, which shall be known as the Growth Equity Fund, the Growth & Income Fund, the International Equity Fund, and the Social Choice Equity Fund; and WHEREAS, Advisors is willing to provide or arrange to provide overall management of the Fund and the Funds, including the four additional series; NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Fund and Advisors hereby agree as follows: 1. Section 3(a) of the Agreement shall be amended to read as follows: For the services rendered, the facilities furnished and expenses assumed by Advisors, the Fund shall pay to Advisors at the end of each calendar month a fee calculated as a percentage of the average value of the net assets each day for each Fund during that month at the following annual rates: Growth Equity Fund................................................0.46% Growth & Income Fund..............................................0.44% International Equity Fund ........................................0.53% Stock Index Fund..................................................0.30% Social Choice Equity Fund.........................................0.39% 2. Section 13 of the Agreement shall be amended to provide that all notices or other communications provided for under the Agreement delivered to the Fund shall be to the attention of Martin E. Galt III, and all notices or other communications provided for under the Agreement delivered to Advisors shall be to the attention of Scott C. Evans. IN WITNESS WHEREOF, the Fund and Advisors have caused this Amendment to be executed in their names and on their behalf by and through their duly authorized officers on the day and year first written above. TIAA-CREF LIFE FUNDS By: /s/ Martin E. Galt, III Attest: Stewart P. Greene ---------------------------------------- -------------------- Title: President Title: Assistant Secretary ------------------------------------- -------------------- TEACHERS ADVISORS, INC. By: /s/ Scott C. Evans Attest: Stewart P. Greene ---------------------------------------- -------------------- Title: Executive Vice President Title: Assistant Secretary ------------------------------------- -------------------- [TIAA Teachers Insurance and Annuity Association CREF College Retirement Equities Fund logo] 730 Third Avenue/New York, NY 10017-3206 212 490-9000 February 29, 2000 The Board of Trustees TIAA-CREF Life Funds 730 Third Avenue New York, New York 10071-3206 Ladies and Gentlemen: This is to inform you that Teachers Advisors, Inc. ("Advisors") has voluntarily chosen to waive a portion of the fees it is otherwise entitled to receive for managing the assets of each portfolio of the TIAA-CREF Life Funds (the "Fund") under the Investment Management Agreement dated November 30, 1998, as amended, by and between the Fund and Advisors. The waiver for the Growth Equity Fund will be based on an effective annual rate of 0.21% of the net assets of the Growth Equity Fund portfolio with the result that the fee due to Advisors during the covered period shall be based on an effective annual rate of 0.25%. The waiver for the Growth & Income Fund will be based on an effective annual rate of 0.21% of the net assets of the Growth & Income Fund portfolio with the result that the fee due to Advisors during the covered period shall be based on an effective annual rate of 0.23%. The waiver for the International Equity Fund will be based on an effective annual rate of 0.24% of the net assets of the International Equity Fund portfolio with the result that the fee due to Advisors during the covered period shall be based on an effective annual rate of 0.29%. The waiver for the Stock Index Fund will be based on an effective annual rate of 0.23% of the net assets of the Stock Index Fund portfolio with the result that the fee due to Advisors during the covered period shall be based on an effective annual rate of 0.07%. The waiver for the Social Choice Equity Fund will be based on an effective annual rate of 0.21% of the net assets of the Social Choice Equity Fund portfolio with the result that the fee due to Advisors during the covered period shall be based on an effective annual rate of 0.18%. Teachers Advisors, Inc. Page 2 The waiver shall continue to operate until April 1, 2003. Sincerely, TEACHERS ADVISORS, INC. By: /s/ Scott C. Evans ---------------------------------- Scott C. Evans Executive Vice President Teachers Advisors, Inc. EX-99.(I) 3 OPINION AND CONSENT OF CHARLES H. STAMM, ESQ. Opinion and Consent of Charles H. Stamm [TIAA-CREF LOGO] Teachers Insurance and Annuity Assocation College Retirement Equities Fund 730 Third Avenue New York, New York 10017-3206 March 22, 2000 Board of Trustees TIAA-CREF Life Funds 730 Third Avenue New York, New York 10017-3206 Ladies and Gentlemen: This opinion is furnished in connection with the filing by TIAA-CREF Life Funds (the "Fund") of Post-Effective Amendment No. 3 to the Registration Statement (File Nos. 333-61759 and 811- 08961) on Form N-1A covering an indefinite amount of securities in the form of shares in each series of the Fund (the "Shares"). I have examined the Declaration of Trust, as amended, and other corporate records of the Fund, and the relevant statutes and regulations of the State of Delaware. On the basis of such examination, it is my opinion that: 1. TIAA-CREF Life Funds is a business trust duly organized and validly existing under the laws of the State of Delaware. 2. The Shares have been duly authorized by the Fund and, when issued as contemplated by the Registration Statement, will be validly issued, fully-paid and non-assessable. I hereby consent to the use of this opinion as an exhibit to the Registration Statement, and to the reference to my name under the heading "Legal Matters" in the Statement of Additional Information. Sincerely, /s/ Charles H. Stamm ------------------------- Charles H. Stamm Executive Vice President and General Counsel EX-99.(J)(1) 4 CONSENT OF SUTHERLAND ASBILL & BRENNAN LLP Sutherland Asbill & Brennan LLP Atlanta Austin New York Tallahasee Washington 1275 Pennsylvania Avenue, N.W. Tel: (202) 383-0100 Washington, D.C. 20004-2415 Fax: (202) 637-3593 STEVEN B. BOEHM DIRECT LINE: (202) 383-0176 Internet: sboehm@sablaw.com ----------------- March 22, 2000 The Board of Trustees TIAA-CREF Life Funds 730 Third Avenue New York, New York 10017-3206 Re: TIAA-CREF Life Funds Registration Statement on Form N-1A File Nos. 333-61759 and 811-08961 Ladies and Gentlemen: We hereby consent to the reference to our name under the caption "Legal Matters" in the Statement of Additional Information filed as a part of Post-Effective Amendment No. 3 to the above-referenced registration statement on Form N-1A. In giving this consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933. Sincerely, SUTHERLAND ASBILL & BRENNAN LLP By: /s/ Steven B. Boehm ----------------------- Steven B. Boehm EX-99.(J)(2) 5 CONSENT OF ERNST & YOUNG LLP CONSENT OF INDEPENDENT AUDITORS We consent to the reference to our firm under the captions "Financial Highlights," "Auditors" and "Experts" and to the use of our report on the Stock Index Fund dated February 4, 2000, which is incorporated by reference in this Registration Statement (Form N-1A 333-61759) of TIAA-CREF Life Funds. We also consent to the use of our report on the Growth Equity, Growth & Income, International Equity, and Social Choice Equity Funds dated March 21, 2000 included in this Registration Statement on Form N-1A (No. 333- 61759) of TIAA-CREF Life Funds. /s/ ERNST & YOUNG LLP New York, New York March 21, 2000 EX-99.(L) 6 SEED MONEY AGREEMENT SEED MONEY AGREEMENT -------------------- SEED MONEY AGREEMENT (the "Agreement") made as of this 29th day of February, 2000 by and between Teachers Insurance and Annuity Association of America ("TIAA"), a nonprofit corporation existing under the laws of the State of New York, and TIAA- CREF Life Funds ("Life Funds"), a Delaware Business Trust. 1. TIAA hereby agrees to invest in the Growth Equity, Growth & Income, International Equity, and Social Choice Equity funds of the Life Funds (the "New Funds") the sum of $175,000,000 on March 1, 2000 or as soon thereafter as practicable, divided as follows: Growth Equity - $50,000,000 Growth & Income - $50,000,000 International Equity - $50,000,000 Social Choice Equity - $25,000,000 2. In consideration for such investment and without deduction of any charges, the Life Funds shall credit TIAA with such shares, of which TIAA shall be the owner, in each of the New Funds in such amounts as shall be mutually agreed upon. Such shares will share pro rata in the investment performance of each New Fund and shall be subject to the same valuation procedures and the same periodic deductions as are other shares in that fund. The value of such shares in each New Fund on the day the initial investment is made shall be $25.00. 3. TIAA represents that the shares acquired under this Agreement are being, and will be, acquired for investment (and not with a view to distribution or resale to the public) and can be disposed of only by redemption. 4. Shares acquired under this Agreement will be held by TIAA for its own account until redeemed by TIAA. Amounts will be redeemed at prices equal to the respective net asset value of shares of the applicable fund next determined after the Life Funds receive TIAA's proper notice of redemption. - 2 - 5. TIAA may purchase, and the Life Funds may issue, additional shares of the New Funds as the parties may agree. 6. This Agreement will be construed and enforced in accordance with and governed by the provisions of the Investment Company Act of 1940 and the laws of the State of New York. TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA By /s/ Scott C. Evans ---------------------------- Executive Vice President TIAA-CREF LIFE FUNDS By /s/ Martin E. Galt, III ---------------------------- President SEED MONEY AGREEMENT -------------------- SEED MONEY AGREEMENT (the "Agreement") made this 30th day of November, 1998 by and between Teachers Insurance and Annuity Association of America ("TIAA"), a nonprofit corporation existing under the laws of the State of New York, and TIAA-CREF Life Funds (the "Fund"), a segregated investment account of TIAA. 1. TIAA hereby agrees to invest in the Fund the sum of $25,000,000 on December 1st or as soon thereafter as practicable. 2. In consideration for such investment and without deduction of any charges, the Fund shall credit TIAA with such shares, of which TIAA shall be the owner, of the Stock Index Fund of the Fund in such amounts as shall be mutually agreed upon. Such shares will share pro rata in the investment performance of the Stock Index Fund and shall be subject to the same valuation procedures and the same periodic deductions as are other shares in that portfolio. The value of such shares on the day the initial investment is made shall be $25.00. 3. TIAA represents that the shares acquired under this Agreement are being, and will be, acquired for investment (and not with a view to distribution or resale to the public) and can be disposed of only by redemption. 4. Shares acquired under this Agreement will be held by TIAA for its own account until redeemed by TIAA. Amounts will be redeemed at prices equal to the respective net asset value of shares of the applicable series of the Fund next determined after the Fund receives TIAA's proper notice of redemption. 5. TIAA may purchase, and the Fund may issue, additional shares as the parties may agree. 6. This Agreement will be construed and enforced in accordance with and governed by the provisions of the Investment Company Act of 1940 and the laws of the State of New York. TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA By: /s/ Peter C. Clapman -------------------------- Peter C. Clapman Senior Vice President and Chief Counsel, Investments TIAA-CREF LIFE FUNDS By: /s/ Thomas G. Walsh -------------------------- Thomas G. Walsh Chairman of the Board and President EX-99.(P) 7 CODE OF ETHICS (POLICY STATEMENT ON PERS. TRADING) POLICY STATEMENT ON PERSONAL TRADING ------------------------------------ Introduction - ------------ The federal securities laws impose certain standards upon the personal trading activities of all individuals. In particular, all investors are precluded from engaging in insider trading or tipping. Investment company personnel, however, are subject to specific additional regulations that address potential conflicts arising from their personal investment activities. These potential conflicts -- and standards to address them -- are the subject of this Policy Statement on Personal Trading. All CREF Investments Area personnel are subject to the standards set forth in this Policy Statement. In addition, all TIAA-CREF personnel are subject to the Code of Business Conduct and to the TIAA-CREF Policy Statement on Conflicts of Interest. The Investment Law Division monitors TIAA-CREF's compliance with the federal securities laws. Investment area operating divisions have specific compliance responsibilities as stated below. Definitions - ----------- For the purposes of this Policy Statement: o "Access Persons" means (1) All personnel of the CREF Investments Area including those personnel of TIAA-CREF Investment Management, LLC and Teachers Advisors, Inc. who are (i) members of a management Investment Committee ("Investment Committee Members"), (ii) portfolio management team members with direct responsibility and authority to make investment decisions ("Portfolio Managers"), (iii) analysts and desk traders that provide information and advice to, or help execute investment decisions ("Analysts and Traders"), (iv) other personnel who in the course of their normal duties obtain information about the purchase or sale of securities by the variable component of TIAA's Personal Annuity, the TIAA-CREF Mutual Funds, any of the CREF Accounts or any other SEC registered investment company (each an "Investment Company"), and (v) CREF Investments external consulting staff, plus the respective Household Members of (i), (ii), (iii), (iv) and (v) above. Investment Committee Members, Portfolio Managers, and Analysts and Traders and their respective Household Members are collectively referred to herein as "Investment Personnel." o "Household Members" mean the spouse, domestic partner and any relative, by blood, marriage or adoption, who shares the same residence as the designated individual. Two adult individuals will be considered to be "domestic partners" if they are not related by blood, have resided together continuously for at least six months and intend to reside together on a permanent basis, are mutually responsible for their common welfare, and maintain no other such domestic partnership or marriage. o "Large Cap Securities" mean securities of companies with market capitalizations of $5 billion or more. o "Blind Trust" means a trust in which an Access Person has beneficial interest but with respect to which the Access Person has no direct or indirect investment control or influence (e.g., no control or influence over the selection or disposition of securities and no prior knowledge of transactions effected by the trust). o "Securities" do not include U.S. Government securities, bankers' acceptances, bank certificates of deposit, commercial paper and shares of registered open-end investment companies. o "Small- and Mid-Cap Securities" mean securities of companies with market capitalizations of less than $5 billion. Specific Guidelines - ------------------- o Actively Managed Accounts. The following requirements apply to the actively managed equity portfolios of any Investment Company excluding any enhanced index segments ("Actively Managed Portfolios"). o Preclearance. Access Persons shall preclear all personal securities, futures and options investments by completing the appropriate preclearance form or through an automated process, if implemented. Transactions in Small- and Mid-Cap Securities Investment Personnel -------------------- Preclearance involves (i) inquiring of the CREF Trading Department as to the existence of an open order for the specific security (or allied issues such as convertibles or warrants), future, option or commodity in any Actively Managed Portfolio or the execution of a trade in the specific security by any Actively Managed Portfolio within the last seven calendar days; (ii) inquiring of the analyst who is responsible for the company or industry, and in the case of international securities, the country or sector manager; (iii) inquiring of the appropriate management team member for the Actively Managed Portfolios, as to whether an action or recommendation regarding the security (or allied issues), future or option is known to be imminent; (iv) for portfolio managers, obtaining approval from their supervisors; and (v) for analysts and sector managers, obtaining approval from their supervisors if the transaction involves a security which he or she follows. If no impediment exists, all parties should execute Exhibit A. Such preclearance is valid only for the business day in which the preclearance form is completed and the two following business days. No portfolio manager may execute a small- or mid-cap transaction, if after the consummation of the transaction, the security would comprise more than five percent of his or her total securities portfolio. No analyst or sector manager may execute a transaction in a small- or mid-cap security that he or she follows, if after the consummation of the transaction, the security would comprise more than five percent of his or her total securities portfolio. All Other Access Persons ------------------------ Preclearance involves inquiring of the CREF Trading Department as to the existence of an open order for the specific security (or allied issues such as convertibles or warrants), future or option in any Actively Managed Portfolio. If no impediment exists, all parties should execute Exhibit B. Such preclearance is valid only for the business day in which the preclearance form is completed. Transactions in Large Cap Securities All Access Persons ------------------ Preclearance involves inquiring of the CREF Trading Department as to the existence of an open order for the specific security which exceeds 20% of the average daily trading volume for the security (or allied issues such as convertibles or warrants), future or option in any Actively Managed Portfolio. In addition, portfolio managers must obtain approval from their supervisors. Analysts and sector managers must obtain approval from their supervisors if they propose to engage in a transaction involving a security which he or she follows. If no impediment exists, all parties should execute Exhibit C. Such preclearance is valid only for the business day in which the preclearance form is completed. All executed preclearance forms should be sent to CREF Investment Accounting - Compliance. Notwithstanding any provision herein to the contrary, no Access Person may engage in any security transaction for his or her personal account if at the time of the transaction he or she has (i) material non-public information which is reasonably certain to have a material effect on the price of a security; (ii) with respect to all securities other than Large Cap Securities, has actual knowledge that an Investment Company is considering executing a transaction in the same security or (iii) with respect to Large Cap Securities, has actual knowledge that an Investment Company is considering executing a transaction in the same security which exceeds 20% of its average daily trading volume. Any such transaction shall be a violation of this Policy Statement. o Records of Transactions. Access Persons shall direct their brokers to supply duplicate confirmations of all personal transactions and of periodic statements for all securities, futures and options accounts to TIAA- CREF, P.O. Box 4704, New York, NY 10163. o Initial Public Offerings. Access Persons are prohibited from acquiring securities in initial public offerings. o Private Placements. Access Persons must obtain express prior approval of acquisitions of securities in a private placement from the Area Manager, CREF Investments. Access Persons who have acquired securities in a private placement must disclose that investment when participating in any subsequent consideration of an investment in the issuer by an Investment Company. A subsequent decision by an Investment Company to purchase securities of the issuer shall be subject to independent review by Access Persons with no personal interest in the issuer. o Blackout Periods. All Transactions other than Transactions in Large Company Securities Investment Personnel -------------------- All Investment Personnel are prohibited from buying or selling a security (other than a Large Cap Security) within seven calendar days before and after an Investment Company trades in the security. All Other Access Persons ------------------------ All other Access Persons are prohibited from buying or selling any security (other than a Large Cap Security) on a day that an Investment Company has a pending buy or sell order in the security. Transactions in Large Cap Securities All Access Persons ------------------ All Access Persons are prohibited from buying or selling a Large Cap Security on a day that an Investment Company has a pending buy or sell order in the security which exceeds 20% of the average daily trading volume for the security. o Ban on Short-Term Trading Profits. Access Persons are prohibited from profiting from the purchase and sale, or sale and purchase, of the same (or equivalent) securities (e.g., options or short sales of securities) within 60 calendar days. o Gifts. Access Persons are prohibited from receiving any gift or other thing of more than de minimis value from any person or entity that does business with or on behalf of TIAA-CREF or any direct or indirect subsidiary or affiliate. o Service as a Director. Pursuant to TIAA-CREF's Guidelines for Participation on Outside Boards, Access Persons are prohibited from serving on the boards of directors of publicly traded companies without prior authorization. Access Persons serving as directors shall be isolated from personnel making investment decisions regarding a company on whose board such individual sits through appropriate procedures. o Disclosure of Personal Securities Holdings. All access persons must disclose their personal securities holdings on an annual basis by submitting to Peter Clapman, Chief Counsel, an annual holdings report (Exhibit D) by January 30th of each year reflecting holdings as of December 31st. In addition, each person who becomes an access person on or after March 1, 2000 must submit an initial holdings report (Exhibit E) to Mr. Clapman within 10 days of hire or transfer. o Certification of Compliance With Policy Statement. Access Persons shall certify annually on Exhibit D that they have read and understand this Policy Statement and that they have complied with its requirements. This certification shall be sent to the Chief Counsel. Exempted Transactions - --------------------- The following transactions are exempt from the prohibitions and restrictions contained in this Policy Statement except as specifically stated below: o Certain Corporate Actions - The acquisition or disposition of securities resulting from certain corporate actions such as stock dividends, dividend reinvestments, stock splits, mergers, consolidations, spin-offs, or other similar corporate reorganizations or distributions generally applicable to all holders of the same class of securities. o No Control or Influence - Securities transactions over which an Access Person has no direct or indirect influence or control (e.g., transactions effected on behalf of an Access Person by a trustee of a Blind Trust). With respect to Blind Trusts, a memorandum must be sent to the Chief Counsel explaining how the Blind Trust will work and certifying that the Access Person is neither consulted or advised of any transaction effected by the Trust before it is executed. The Chief Counsel may request additional information and documentation regarding any transaction or account over which an Access Person reports he or she has no influence or control. Duplicate confirmations of such transactions and periodic statements for such accounts are not required to be sent to TIAA-CREF. o Certain Transactions Involving Broad-Based Market Indices - Purchases or sales of, and options and futures or options on futures on, broad-based market indices are exempt from the preclearance requirement and the ban on short-term trading profits. Such indices are currently limited to the S & P 100 and 500, and Russell 1000, 2000 and 3000 indices. Waivers - ------- o Waivers from the prohibitions and restrictions contained in this Policy Statement may be granted on a case-by-case basis by the Chief Counsel when it is clear that no abuse is involved and the proposed transaction does not give rise to an actual or apparent conflict of interest, diversion of corporate opportunity, or appearance of impropriety. Any such waivers will be documented in writing and maintained by the Chief Counsel. Violations - ---------- o Trades made in violation of this Policy Statement will be cancelled or, if cancellation is not practical, unwound and any profits realized on such trades disgorged to the appropriate Investment Company. Questions and Recordkeeping - --------------------------- o Whenever an individual has any question as to the application of this Policy Statement, he or she should contact an Investment Law Division attorney. o Written records of all determinations under this Policy Statement, including actual or apparent violations and actions taken in respect thereto, shall be maintained by the Chief Counsel and reported quarterly to the General Counsel. February 2000 Exhibit A PRECLEARANCE FORM FOR INVESTMENT PERSONNEL FOR TRANSACTIONS IN SMALL- and MID-CAP SECURITIES Valid for the Business Day in Which Form is Completed and for the Two Following Business Days Only 1. I wish to (Purchase/Sell) the following securities, futures, or options for my personal account(s) and am aware of no action within the last seven calendar days or current or pending actions regarding such securities, futures or options or affiliated issues in any actively managed segment of a CREF, TIAA-CREF Mutual Funds or any investment account funding any tuition savings program. Issue ______________________________________________________ Any securities I propose to purchase are not part of an initial public offering. Name of staff person (print) ____________________________ Signature ____________________________ Name of person making transaction, if different (print) ____________________________ 2. There is no open active order nor has there been any transaction within the last seven calendar days for any security, future or option listed above or any affiliated issue. Name (print) _______________________ ______________________ Trader Signature Date 3. I am aware of no transactions within the last seven calendar days and no current or planned transactions for any security, future, or option listed above or any affiliated issue for any actively managed segment of a CREF, TIAA-CREF Mutual Funds, or any investment account funding any tuition savings program. Name (print) ________________________ ______________________ Company/Industry Manager Signature Date Name (print) ________________________ ______________________ Country/Sector Manager Signature Date Name (print) ________________________ ______________________ CREF Global Signature Date Equities Account Management Team Representative Name (print) ________________________ ______________________ CREF Growth Account, Signature Date Mutual Funds Growth Equity Fund & College Savings Growth Fund Management Team Representative Name (print) ________________________ ______________________ Stock Account Value Signature Date Sub-Portfolio Manager Name (print) ________________________ ______________________ Mutual Funds Signature Date Int'l Equity Fund Management Team Representative Name (print) ________________________ ______________________ Mutual Funds Signature Date Growth & Income Fund Management Team Representative 4. For Analyst And Sector Manager Trades Within Assigned Sectors Only Name (print) ________________________ ______________________ Supervisor Signature Date I represent that, after the consummation of my proposed transaction in the above-named security, my holding of that security would comprise less than 5% of my total securities portfolio. Name (print) _________________________ ______________________ Name of Analyst or Sector Signature Date Manager 5. For Portfolio Manager Trades Only Name (print) ________________________ ______________________ Supervisor Signature Date I represent that, after the consummation of my proposed transaction in the above-named security, my holding of that security would comprise less than 5% of my total securities portfolio. Name (print) _________________________ ______________________ Name of Portfolio Signature Date Management Team Representative Exhibit B PRECLEARANCE FORM FOR ALL OTHER ACCESS PERSONS FOR ALL TRANSACTIONS IN SMALL- AND MID-CAP SECURITIES Valid for the Business Day in Which Form is Completed 1. I wish to (Purchase/Sell) the following securities, futures, or options for my personal account(s) and am not aware of the existence of an open order for such securities in any actively managed segment of a CREF or TIAA-CREF Mutual Funds Account. Issue ______________________________________________________ Any securities I propose to purchase are not part of an initial public offering. Name of staff person or consultant (print) ____________________________ Signature ____________________________ Name of person making transaction, if different (print) ____________________________ 2. There is no open active order for any security, future or option listed above or any affiliated issue. Name (print) _________________ _____________________ Trader Signature Date Exhibit C PRECLEARANCE FORM FOR ALL ACCESS PERSONS FOR TRANSACTIONS IN LARGE CAP SECURITIES Valid for the Business Day in Which Form is Completed 1. I wish to (Purchase/Sell) the following securities, futures, or options for my personal account(s) and am not aware of the existence of an open order which exceeds 20% of the average daily trading volume for such securities in any actively managed segment of a CREF or TIAA-CREF Mutual Funds Account. Issue ______________________________________________________ Any securities I propose to purchase are not part of an initial public offering. Name of staff person or consultant (print) ____________________________ Signature ____________________________ Name of person making transaction, if different (print) ____________________________ 2. There is no open active order which exceeds 20% of the average daily trading volume for the security, future or option listed above or any affiliated issue. The security, future or option listed above or any affiliated issue relates to a company with a market capitalization of at least $5 billion. Name (print) ____________________________ Trader ____________________________ Signature ____________________________ Date 3. For Analyst And Sector Manager Trades Within Assigned Sectors Only Name (print) ____________________________ Supervisor ____________________________ Signature ____________________________ Date 4. For Portfolio Management Team Member Trades Only Name (print) ____________________________ Supervisor ____________________________ Signature ____________________________ Date Exhibit D CONFIDENTIAL ANNUAL DISCLOSURE STATEMENT FOR ACCESS PERSONS I acknowledge receipt of a copy of the TIAA-CREF Policy Statement on Personal Trading dated February, 2000 which I have read, understand, and complied with. I have also disclosed or reported all personal transactions and holdings required to be disclosed or reported pursuant to the requirements of the Policy Statement. As required by the Policy Statement, I hereby advise that I or a member of my household have the personal securities holdings set forth below: (If no personal securities holdings need be reported, answer "None") Personal securities, futures or options holdings (attach additional sheets of paper if necessary): Identity of Investment Number of Shares Total Principal Amount ---------------------- ---------------- ---------------------- Signature ____________________________ Date ________________________________ Print Name ___________________________ Division ___________________________ See instructions on reverse side Return form to Peter Clapman, Chief Counsel, Investments INSTRUCTIONS 1. Securities Holdings to be Reported. A. You should report every personal holding and interest, including those held: (i) for your benefit by others (e.g., brokers, custodians and pledgees); (ii) for the benefit of any member of your household; (iii) by a partnership of which you are a partner; (iv) by a corporation of which you are a controlling person and which is used by you alone or with a small group as a medium for investing or trading in securities; and (v) by a trust over which you have any direct or indirect influence or control and of which either you or any member of your household is a beneficiary. B. The following holdings need not be reported: (i) securities which are direct obligations of the United States; (ii) shares of registered open-end investment companies; (iii) money market instruments; and (iv) accounts over which neither you nor any member of your household has any direct or indirect influence or control. 2. Identity of Securities Holdings. If the holding is a stock, identify by class (e.g., common stock or preferred stock) as well as the name of the issuer. If the holding is an option, future or commodity, list the relevant information (e.g., the underlying stock or asset for an option or future). 3. Signature. Date and sign report, and identify your Division. Exhibit E CONFIDENTIAL INITIAL DISCLOSURE STATEMENT FOR ACCESS PERSONS I acknowledge receipt of a copy of the TIAA-CREF Policy Statement on Personal Trading dated February, 2000 which I have read and understand. As required by the Policy Statement, I hereby advise that I or a member of my household have the personal securities holdings set forth below: (If no personal securities holdings need be reported, answer "None") Personal securities, futures or options holdings (attach additional sheets of paper if necessary): Identity of Investment Number of Shares Total Principal Amount ---------------------- ---------------- ---------------------- Signature ____________________________ Date ________________________________ Print Name ___________________________ Division ___________________________ See instructions on reverse side Return form to Peter Clapman, Chief Counsel, Investments #7003v1 INSTRUCTIONS 1. Securities Holdings to be Reported. A. You should report every personal holding and interest, including those held: (i) for your benefit by others (e.g., brokers, custodians and pledgees); (ii) for the benefit of any member of your household; (iii) by a partnership of which you are a partner; (iv) by a corporation of which you are a controlling person and which is used by you alone or with a small group as a medium for investing or trading in securities; and (v) by a trust over which you have any direct or indirect influence or control and of which either you or any member of your household is a beneficiary. B. The following holdings need not be reported: (i) securities which are direct obligations of the United States; (ii) shares of registered open-end investment companies; (iii) money market instruments; and (iv) accounts over which neither you nor any member of your household has any direct or indirect influence or control. 2. Identity of Securities Holdings. If the holding is a stock, identify by class (e.g., common stock or preferred stock) as well as the name of the issuer. If the holding is an option, future or commodity, list the relevant information (e.g., the underlying stock or asset for an option or future). 3. Signature. Date and sign report, and identify your Division. -----END PRIVACY-ENHANCED MESSAGE-----