Life Funds Annual Report

Acting with integrity in all that we do
Like many of you, I was attracted to TIAA because of its proud legacy of making a difference for those who do so much to serve others, and helping millions of people achieve secure retirements and financial well-being for more than a century.
Most importantly though, it is our commitment to our values that sets TIAA apart from the rest and drew me to this very special company. We have become a trusted and respected name in the financial services industry not only because of the results we deliver for clients but also because we are committed to operating each and every day with the highest possible ethical standards.
Once again, we renew our commitment to acting with integrity by reacquainting ourselves with our Code of Business Conduct and attesting to follow it in all that we do. The Code embodies our high ethical standards and values, and it provides a critical and strong foundation for our mission, brand and commitment to our clients. I encourage you to take the time to read the Code in its entirety and reflect on how you will live it every day in your role.
Our cherished reputation with clients has been earned over the past hundred-plus years through the hard work, dedication and integrity of the associates who came before us, and it is up to us to continue upholding this reputation for the future. The very special institutions and individuals we serve are counting on it, and I thank you for the important role you play.
With gratitude,
Thasunda Brown Duckett
President and Chief Executive Officer
Code of Business Conduct 1

For Teachers Insurance and Annuity Association of America (“TIAA”) and its family of companies, we exist to serve our clients and to provide outcomes that truly matter to them. It is our mission to serve, our ability to perform and the values we embrace that make us different. Here are the values that guide us:

We are committed to conducting our business affairs honestly, fairly and with transparency, and believe all three are essential for winning and maintaining our clients’ trust. We must maintain high standards of ethical business conduct and display personal integrity at all times. Doing so is paramount to protecting our Company’s reputation and meeting our commitments to the people with whom we work, and the clients and institutions we serve.

Exercising good judgment involves thinking things through and considering the short- and long-term consequences of a decision or action. This may involve sharing information, working through ideas with others and sometimes holding off on an action to avoid a harmful outcome. We should be thoughtful in our approach and conduct ourselves in a way that aligns with TIAA’s mission and values.

Let’s never forget that our Company’s reputation is one of its most valuable assets. Using good judgment is an important way to safeguard it. Each of us plays a vital role in protecting the TIAA name and associated brands, and has a stake in the success of our efforts.

We are personally accountable and answerable for what we do, say and write. We not only take ownership of our own job responsibilities, but support our managers, teams and colleagues as they carry out their duties and obligations. We accept the fact that we’re only human and may make mistakes. When mistakes happen, we own our role and do what we can to correct them.

Mutual respect and professional conduct are, and have always been, central to our corporate culture. We are aware of and value the diversity of our employees, and take steps to ensure that every company in the TIAA family of companies provides an inclusive workplace for all employees. We understand that our differences make us stronger by vetting our ideas and plans against the experiences and opinions of others, and we value those experiences and opinions for their ability to lead us to better outcomes.

We cannot allow our differences to become a source of disrespect, exclusion or discrimination. Rather, they must always be a source of strength that is leveraged for the continued success of the Company.

Our business activities are subject to many laws and regulations, including comprehensive regulations governing our insurance, retirement, asset management and banking activities. In addition, nondiscrimination and other employment laws govern the workplace. We are committed to conducting our business in a compliant manner. All employees are responsible for understanding and following the specific legal and regulatory requirements that apply to our activities as well as applicable policies and procedures.

All of us who work in the TIAA family of companies are required to protect client and Company information. That means we should review or share client information only to the extent permitted, required and necessary to conduct the business of our Company.

Proprietary business information—including client data, investment data, product information and business strategy—should be shared only with appropriate parties on a need-to-know basis.

Our corporate culture empowers employees to speak up by asking questions, voicing concerns and sharing opinions in good faith. We work in a complicated business with many legal, regulatory and business requirements, and we face numerous demands on our time. When we are unsure about how to proceed or just want clarification on a matter, we should feel free to ask questions.

When you have concerns, speak up. You should raise them by speaking to your manager or another manager, or by making a report through the Ethics Helpline. See the Reporting Possible Misconduct section for more information on how to report and to determine the most appropriate reporting solution for your concern.

Guidelines for managers
Take your management and supervision responsibilities seriously.
Inform your team about options for reporting possible misconduct.
Seek assistance from your Human Resources Business Partner.
Encourage employees to ask questions and foster an environment that welcomes them.
Address right away any suspicions of ethical concerns or misconduct brought to you in good faith and escalate serious concerns for further investigation.
Point out and explain pertinent laws, regulations, policies and compliance manuals related to your work.
Do not engage in retaliation against an employee who speaks up.
Provide guidance to direct reports and others who are questioning a decision or course of action.
Follow up on all reports brought to your attention.
Never ignore a report of conduct that is in conflict with our policy of diversity and inclusion.
Lead by example. Be a role model for personal integrity and ethical business conduct.
Answer questions promptly. The sooner you respond, the sooner the problem will be addressed.
Code of Business Conduct 14

If you suspect or witness what you believe in good faith to be a violation of this Code, law, regulation or Company policy, speak up immediately. It is much easier for the Company to fix a problem than a damaged reputation. There are a number of different options and ways to relay your concerns.

TIAA encourages employees to voice concerns freely. Fear of retaliation should never be a deterrent to speaking up. We take seriously all claims of retaliation against those who speak up and will investigate all such claims. The Company does not tolerate retaliation against an employee who speaks up, as part of or outside of an investigation. Individuals who retaliate will be subject to disciplinary action up to and including termination of employment.

The TIAA Ethics Helpline has dedicated telephone numbers in the countries as indicated below:

For all other countries in the chart below, Call Center representatives of Convercent and My Safe Workplace will greet you. Please be prepared to provide your employer name so that your report is routed appropriately.

Our obligations as a U.S. government contractor

Our Company has special obligations regarding fair employment practices and is subject to regulatory oversight of our hiring and workplace policies.

We are committed to providing equal opportunity in all of our employment practices, including hiring, promotion, transfer and compensation of all applicants and employees without regard to race, color, sex, sexual orientation, gender identity, religion, age, marital status, national origin, disability, citizenship status, veteran status, genetic information or any other “protected category” set by applicable law.

In addition to respecting protected categories, we are respectful and considerate of every individual in the conduct of our business, regardless of differences in belief systems, styles, experiences, perspectives and other things that shape their uniqueness.

Non-U.S. operations

As the Company expands its operations internationally, the management principles established in the Code will apply absent potential conflicts with applicable laws in other jurisdictions. These conflicts may involve applicable laws of two or more countries or this Code and applicable non-U.S. laws. If such a circumstance presents, please consult with Legal, Risk and Compliance for guidance on how to resolve that conflict properly.

At-will employment

The Code and Guidelines are not intended to, and do not, create an employment contract (or other contractual obligation) of any kind with any Company employee. Unless otherwise provided by written agreement with your employer, your employment is “at-will,” meaning that either you or your employer may end employment without notice for any reason or no reason at all. Further, nothing herein constitutes conditions of employment or should be construed as express or implied contractual commitments by the Company.

Respect for your rights

Nothing in this Code or any Company policy shall, or shall be construed to, limit any employee’s right, if any, to discuss the terms and conditions of employment or to engage in protected concerted activity as defined by law (such as in Section 7 of the U.S. National Labor Relations Act). In addition, neither this Code nor any Company policy shall be construed to prohibit you from filing a complaint or communicating, reporting or assisting in the reporting or investigation of possible violations of federal, state or local law or regulations to any governmental agency or self-regulatory organization, or making other disclosures that reasonably may be protected under whistleblower or other provisions of any applicable federal, state or local law or regulation. Prior authorization of, or notice to, the TIAA family of companies is not required to make any such reports or disclosures. However, the organization wants employees to share such concerns, anonymously (in countries where permitted by law) if desired, by contacting the Ethics Helpline without fear of retaliation. Phone numbers for the Ethics Helpline can be found in the Helpline Directory section of this Code.



Fund name		Ticker

Growth Equity Fund		TLGQX

Growth & Income Fund		TLGWX

Large-Cap Value Fund		TLLVX

Real Estate Securities Fund		TLRSX

Small-Cap Equity Fund		TLEQX

Social Choice Equity Fund		TLCHX

Stock Index Fund		TLSTX

International Equity Fund		TLINX

Core Bond Fund		TLBDX

Money Market Fund		TLMXX

Balanced Fund		TLBAX



Understanding this report			3

Market review			4

Information for investors			6

About the funds’ benchmarks			7

Important information about expenses			9

Fund performance

Growth Equity Fund			10

Growth & Income Fund			13

Large-Cap Value Fund			16

Real Estate Securities Fund			19

Small-Cap Equity Fund			22

Social Choice Equity Fund			25

Stock Index Fund			28

International Equity Fund			31

Core Bond Fund			34

Money Market Fund			38

Balanced Fund			41

Summary portfolios of investments			45

Audited financial statements

Statements of assets and liabilities			82

Statements of operations			86

Statements of changes in net assets			90

Financial highlights			98

Notes to financial statements			104

Report of independent registered public accounting firm			122

Important tax information			124

2021 special meeting			125

Trustees and officers			126

Additional information about index providers			132

How to reach us			Inside back cover



			Total return			Average annual total return						Annual operating expenses*

	Inception date		1 year			5 years			10 years			gross			net
Growth Equity Fund		4/3/00		16.16	%		24.03	%		19.23	%		0.54	%		0.52	%
Russell 1000^® Growth Index		—		27.60			25.32			19.79			—			—



Growth Equity Fund	Beginning account value (7/1/21)		Ending account value (12/31/21)		Expenses paid during period* (7/1/21–12/31/21)
Actual return	$	1,000.00	$	1,021.98	$	2.70
5% annual hypothetical return		1,000.00		1,022.53		2.70



	as of 12/31/2021
Net assets	$	177.07 million
Portfolio turnover rate		56%
Number of holdings		91
Weighted median market capitalization	$	233.55 billion
Price/earnings ratio (weighted 12-month trailing average)^†		47.4



Market capitalization	% of equity investments as of 12/31/2021
More than $50 billion		83.6
More than $15 billion–$50 billion		13.7
More than $2 billion–$15 billion		2.5
$2 billion or less		0.2
Total		100.0



Sector	% of net assets as of 12/31/2021
Information technology		40.4
Consumer discretionary		20.2
Communication services		14.4
Health care		9.8
Industrials		7.9
Consumer staples		3.6
Financials		3.0
Materials		0.5
Short-term investments, other assets & liabilities, net		0.2
Total		100.0



Growth & Income Fund	Beginning account value (7/1/21)		Ending account value (12/31/21)		Expenses paid during period* (7/1/21–12/31/21)
Actual return	$	1,000.00	$	1,095.56	$	2.75
5% annual hypothetical return		1,000.00		1,022.58		2.65



	as of 12/31/2021
Net assets	$	210.65 million
Portfolio turnover rate		63%
Number of holdings		172
Weighted median market capitalization	$	182.99 billion
Price/earnings ratio (weighted 12-month trailing average)^†		29.0



Market capitalization	% of equity investments as of 12/31/2021
More than $50 billion		74.8
More than $15 billion–$50 billion		15.7
More than $2 billion–$15 billion		8.9
$2 billion or less		0.6
Total		100.0



			Total return			Average annual total return						Annual operating expenses*

	Inception date		1 year			5 years			10 years			gross			net
Large-Cap Value Fund		10/28/02		26.85	%		10.37	%		12.50	%		0.61	%		0.52	%
Russell 1000^® Value Index		—		25.16			11.16			12.97			—			—



Large-Cap Value Fund	Beginning account value (7/1/21)		Ending account value (12/31/21)		Expenses paid during period* (7/1/21–12/31/21)
Actual return	$	1,000.00	$	1,080.79	$	2.73
5% annual hypothetical return		1,000.00		1,022.58		2.65



	as of 12/31/2021
Net assets	$	91.79 million
Portfolio turnover rate		27%
Number of holdings		85
Weighted median market capitalization	$	131.70 billion
Price/earnings ratio (weighted 12-month trailing average)^†		19.0



Real Estate Securities Fund	Beginning account value (7/1/21)		Ending account value (12/31/21)		Expenses paid during period* (7/1/21–12/31/21)
Actual return	$	1,000.00	$	1,152.54	$	3.09
5% annual hypothetical return		1,000.00		1,022.33		2.91



	as of 12/31/2021
Net assets	$	108.17 million
Portfolio turnover rate		38%
Number of holdings		61
Weighted median market capitalization	$	26.24 billion
Price/earnings ratio (weighted 12-month trailing average)^†		49.4



Sector	% of net assets as of 12/31/2021
Specialized REITs		27.5
Residential REITs		26.5
Retail REITs		14.6
Industrial REITs		13.8
Office REITs		6.0
Health care REITs		5.7
Internet services & infrastructure		1.9
Hotel & resort REITs		1.4
Diversified REITs		1.0
Real estate operating companies		0.8
Short-term investments, other assets & liabilities, net		0.8
Total		100.0



Small-Cap Equity Fund	Beginning account value (7/1/21)		Ending account value (12/31/21)		Expenses paid during period* (7/1/21–12/31/21)
Actual return	$	1,000.00	$	1,019.87	$	2.70
5% annual hypothetical return		1,000.00		1,022.53		2.70


Fund profile

	as of 12/31/2021
Net assets	$	74.96 million
Portfolio turnover rate		78%
Number of holdings		435
Weighted median market capitalization	$	3.04 billion
Price/earnings ratio (weighted 12-month trailing average)^†		26.5


Holdings by company size

Market capitalization	% of equity investments as of 12/31/2021
More than $15 billion–$50 billion		0.2
More than $2 billion–$15 billion		71.2
$2 billion or less		28.6
Total		100.0



Social Choice Equity Fund	Beginning account value (7/1/21)		Ending account value (12/31/21)		Expenses paid during period* (7/1/21–12/31/21)
Actual return	$	1,000.00	$	1,090.10	$	1.16
5% annual hypothetical return		1,000.00		1,024.10		1.12



	as of 12/31/2021
Net assets	$	102.13 million
Portfolio turnover rate		31%
Number of holdings		517
Weighted median market capitalization	$	91.05 billion
Price/earnings ratio (weighted 12-month trailing average)^†		27.3



Stock Index Fund	Beginning account value (7/1/21)		Ending account value (12/31/21)		Expenses paid during period* (7/1/21–12/31/21)
Actual return	$	1,000.00	$	1,091.82	$	0.42
5% annual hypothetical return		1,000.00		1,024.80		0.41



	as of 12/31/2021
Net assets	$	833.43 million
Portfolio turnover rate		3%
Number of holdings		2,982
Weighted median market capitalization	$	139.18 billion
Price/earnings ratio (weighted 12-month trailing average)^†		28.5



International Equity Fund	Beginning account value (7/1/21)		Ending account value (12/31/21)		Expenses paid during period* (7/1/21–12/31/21)
Actual return	$	1,000.00	$	1,014.87	$	3.05
5% annual hypothetical return		1,000.00		1,022.18		3.06



	as of 12/31/2021
Net assets	$	143.49 million
Portfolio turnover rate		22%
Number of holdings		74
Weighted median market capitalization	$	79.67 billion
Price/earnings ratio (weighted 12-month trailing average)^†		18.9



	% of portfolio investments as of 12/31/2021
Japan		20.4
France		15.5
United Kingdom		13.9
Germany		9.9
Netherlands		9.2
Switzerland		4.9
Australia		4.6
United States		2.6
12 other nations		15.9
Short-term investments		3.1
Total		100.0



Core Bond Fund	Beginning account value (7/1/21)		Ending account value (12/31/21)		Expenses paid during period* (7/1/21–12/31/21)
Actual return	$	1,000.00	$	999.14	$	1.76
5% annual hypothetical return		1,000.00		1,023.44		1.79



	as of 12/31/2021
Net assets	$	230.01 million
Portfolio turnover rate		258%
Portfolio turnover rate, excluding mortgage dollar-roll transactions		89%
Number of issues		1,106
Option-adjusted duration^‡		6.10 years
Average maturity^§		7.90 years



Sector	% of net assets as of 12/31/2021
Corporate bonds		30.9
Mortgage-backed securities		22.5
Foreign government & corporate bonds denominated in U.S. dollars		17.4
Commercial mortgage-backed securities		7.3
Asset-backed securities		7.2
U.S. Treasury securities		7.2
Municipal bonds		2.0
Bank loan obligations		1.6
Preferred stock		0.1
Short-term investments, other assets & liabilities, net		3.8
Total		100.0



	% of fixed-income investments (excluding short-term investments) as of 12/31/2021
Less than 1 year		2.0
1–3 years		10.5
3–5 years		23.9
5–10 years		47.1
Over 10 years		16.5
Total		100.0



	% of fixed-income investments (excluding short-term investments) as of 12/31/2021
U.S. Treasury & U.S. agency securities*		27.3
Aaa/AAA		4.9
Aa/AA		8.4
A/A		15.4
Baa/BBB		32.0
Ba/BB		5.1
B/B		3.0
Below B/B		0.3
Non-rated		3.6
Total		100.0



	Current yield			Effective yield
Money Market Fund		0.00	%		0.00	%
iMoneyNet Money Fund Averages^™—All Government^‡		0.01			0.01



Sector	% of net assets as of 12/31/2021
U.S. government agency securities*		62.9
Floating-rate securities, government*		24.5
U.S. Treasury securities*		16.4
Other assets & liabilities, net		–3.8
Total		100.0



			Total return			Average annual total return						Annual operating expenses*^#

	Inception date		1 year			5 years			since inception			gross			net
Balanced Fund		1/31/14		9.78	%		9.89	%		8.06	%		0.59	%		0.51	%
Balanced Fund Composite Index^†		—		10.10			10.09			8.32	^§		—			—

Broad market index
Morningstar Moderately Conservative Target Risk Index		—		6.36			8.11			6.41	^§		—			—



Balanced Fund	Beginning account value (7/1/21)		Ending account value (12/31/21)		Expenses paid during period* (7/1/21–12/31/21)		Effective expenses paid during period^† (7/1/21–12/31/21)
Actual return	$	1,000.00	$	1,030.27	$	0.51	$	2.61
5% annual hypothetical return		1,000.00		1,024.70		0.51		2.60