UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number File No. 811-09301
TIAA-CREF FUNDS
(Exact Name of Registrant as specified in charter)
730 Third Avenue, New York, New York
10017-3206
(Address of Principal Executive Offices) (Zip code)
Terry H. Lin, Esq.
c/o TIAA-CREF
730 Third Avenue
New York, New York 10017-3206
(Name and address of agent for service)
Registrant’s telephone number, including area code: 212-490-9000
Date of fiscal year end: May 31
Date of reporting period: May 31, 2015
Item 1. Reports to Stockholders.
2015 Annual Report
TIAA-CREF Lifecycle Funds
of the TIAA-CREF Funds
May 31, 2015
Understanding your Lifecycle Funds report
This annual report contains information about the investment performance and holdings of the Lifecycle Funds, an offering of the TIAA-CREF Funds, and describes the funds’ results for the twelve months ended May 31, 2015. The report contains three main sections:
| • | The fund performance section compares each fund’s investment returns with those of its composite benchmark and a broad market index. | |
| • | The portfolios of investments list the TIAA-CREF underlying funds in which each fund had investments as of May 31, 2015. | |
| • | The financial statements provide detailed information about the operations and financial condition of each fund. |
The views and opinions expressed in this report are through the end of the period, as stated on the cover of this report. They are subject to change at any time based on a variety of factors. As such, they are not guarantees of future performance or investment results and should not be taken as investment advice. The risks of investing in the TIAA-CREF Funds vary from fund to fund; to see the risks of investing in an individual fund, please refer to that fund’s latest prospectus.
As always, you should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other important information, please visit our website at tiaa-cref.org, or call 800 842-2252 for the Institutional, Premier and Retirement classes or 800 223-1200 for the Retail Class. We urge you to read the prospectus carefully before investing.
| 2 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Portfolio listings
The complete portfolios of investments for the TIAA-CREF Lifecycle Funds begin on page 38 of this report. You can also obtain lists of the holdings of the Lifecycle Funds and of the underlying funds in which the Lifecycle Funds invest (Schedules of Investments) as of the most recently completed fiscal quarter in the following ways:
| • | By visiting our website at tiaa-cref.org; or | |
| • | By calling us at 800 842-2252 to request a copy, which will be provided free of charge. |
You can obtain a complete list of the Lifecycle Funds’ portfolio holdings as of the most recently completed fiscal quarter, and for prior quarter-ends, from our Securities and Exchange Commission (SEC) Form N-CSR and Form N-Q filings. Form N-CSR filings are as of May 31 or November 30; Form N-Q filings are as of the last day of February or August 31. Copies of these forms are available:
| • | Through the Electronic Data Gathering and Retrieval System (EDGAR) on the SEC’s website at www.sec.gov; or | |
| • | From the SEC’s
Office of Investor Education and Advocacy. (Call 202 551-8090 for more information.) |
Proxy voting
A description of our proxy voting policies and procedures for the underlying funds of the Lifecycle Funds can be found on our website at tiaa-cref.org or on the SEC’s website at www.sec.gov. You may also call us at 800 842-2252 to request a free copy. A report of how the Lifecycle Funds’ underlying funds voted during the most recently completed twelve-month period ended June 30 can be found on our website or on Form N-PX at www.sec.gov.
Contacting TIAA-CREF
There are three easy ways to contact us: by email, using the Contact Us link at the top of our home page; by mail at TIAA-CREF, 730 Third Avenue, New York, NY 10017-3206; or by phone at 800 842-2252.
Fund management
The Lifecycle Funds are managed by a portfolio management team of Teachers Advisors, Inc. The members of this team are responsible for the day-to-day investment management of the funds.
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 3 |
About the funds’ composite benchmarks
Each Lifecycle fund uses a composite benchmark that represents the general market sectors in which that fund invests. These may include U.S. equity (stocks), international equity (foreign stocks), fixed income, short-term fixed income and inflation-protected assets. A fund’s composite benchmark combines the following public indexes in proportions that reflect the fund’s target market sector allocations:
| • | The Russell 3000® Index (U.S. equity) measures the performance of the stocks of the 3,000 largest publicly traded U.S. companies, based on market capitalization. The index measures the performance of about 98% of the total market capitalization of the publicly traded U.S. equity market. | |
| • | The MSCI All Country World ex USA Index measures the performance of large- and mid-cap stocks in 45 developed and emerging market countries, excluding the United States. | |
| • | The Barclays U.S. Aggregate Bond Index (fixed income) measures the performance of the domestic investment-grade, fixed-rate bond market, including government and corporate securities, agency mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. | |
| • | The Barclays U.S. 1–3 Year Government/Credit Bond Index measures the performance of U.S. Treasury and agency securities and corporate bonds with 1- to 3-year maturities. | |
| • | The Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L) (inflation-protected assets) measures the performance of fixed-income securities with fixed-rate coupon payments that are adjusted for inflation, as measured by the Consumer Price Index for All Urban Consumers (CPI-U). |
Russell 3000 is a trademark and service mark of Russell Investments. TIAA-CREF products are not promoted or sponsored by, or affiliated with, Russell Investments. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. This report is not approved, reviewed or produced by MSCI.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| 4 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Important information about expenses
All shareholders of the TIAA-CREF Funds incur ongoing costs, including management fees and other fund expenses. They may also incur transactional costs for redemptions or account maintenance fees.
On pages 6 through 11, you will find expense examples for each share class of the funds. These expense examples are intended to help you understand your ongoing costs only (in U.S. dollars) and do not reflect transactional costs or the costs incurred by the funds for buying and selling securities. The examples are designed to help you compare these ongoing costs with the ongoing costs of investing in other mutual funds.
The expenses shown do not include redemption fees or account maintenance fees, which may or may not be applicable, as described in the prospectus. If such fees were included, your costs of investing in the funds would be higher. Note also that shareholders of the TIAA-CREF Funds do not incur a sales charge for purchases, reinvested dividends or other distributions.
The examples are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (December 1, 2014–May 31, 2015).
Actual expenses
The first line of the two lines listed for each fund in the tables uses the fund’s actual expenses and its actual rate of return. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the six-month period.
Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses paid during period” to estimate the expenses you paid during the six-month period. All of the funds have a contractual fee reimbursement. Had these not been in effect, fund expenses would have been higher.
Hypothetical example for comparison purposes
The second line in each fund’s entry shows a hypothetical account value and hypothetical expenses based on the share class’s actual expense ratio for the six-month period and an assumed 5% per year rate of return before expenses. This was not the fund’s actual return.
This hypothetical example cannot be used to estimate the actual expenses you paid for the period but rather allows you to compare the ongoing costs of investing in the fund with the costs of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 5 |
Important information about expenses
Expense examples
Six months ended May 31, 2015
| Lifecycle Funds Institutional Class |
|
Beginning account value (12/1/14 |
) |
|
Ending account value (5/31/15 |
) |
|
Expenses paid during period (12/1/14–5/31/15 |
* ) |
|
Effective expenses paid during period (12/1/14–5/31/15 |
† ) |
||||
| Retirement Income Fund actual return | $1,000.00 | $1,027.17 | $0.00 | $1.87 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 1.87 | ||||||||||||
| 2010 Fund actual return | 1,000.00 | 1,029.47 | 0.00 | 1.92 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 1.92 | ||||||||||||
| 2015 Fund actual return | 1,000.00 | 1,031.98 | 0.00 | 1.98 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 1.97 | ||||||||||||
| 2020 Fund actual return | 1,000.00 | 1,035.71 | 0.00 | 2.08 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 2.07 | ||||||||||||
| 2025 Fund actual return | 1,000.00 | 1,038.80 | 0.00 | 2.13 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 2.12 | ||||||||||||
| 2030 Fund actual return | 1,000.00 | 1,042.18 | 0.00 | 2.19 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 2.17 | ||||||||||||
| 2035 Fund actual return | 1,000.00 | 1,044.00 | 0.00 | 2.29 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 2.27 | ||||||||||||
| 2040 Fund actual return | 1,000.00 | 1,047.56 | 0.00 | 2.30 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 2.27 | ||||||||||||
| 2045 Fund actual return | 1,000.00 | 1,047.30 | 0.00 | 2.35 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 2.32 | ||||||||||||
| 2050 Fund actual return | 1,000.00 | 1,047.05 | 0.00 | 2.35 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 2.32 | ||||||||||||
| 2055 Fund actual return | 1,000.00 | 1,047.46 | 0.00 | 2.35 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 2.32 | ||||||||||||
| 2060 Fund actual return | 1,000.00 | 1,047.20 | 0.00 | 2.35 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 2.32 | ||||||||||||
| * | The amounts in the “Expenses paid during period” column are based on each fund’s actual expense ratio for the most recent fiscal half year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2015. The expense charges of one or more of the fund’s share classes may at times reflect a waiver or reimbursement. Please see the prospectus for an explanation, including the date when this waiver or reimbursement is scheduled to end. Without any such waiver or reimbursement, the expenses of the affected share classes would be higher and their performance lower. The annualized expense ratio for the six-month period was 0.00% for the Institutional Class of the Lifecycle Funds. |
| 6 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
| † | The amounts in the “Effective expenses paid during period” column are based on each fund’s total expense ratio for the most recent fiscal half year, which includes the fund’s own expense ratio plus its pro rata share of its underlying funds’ expenses (which the fund bears through its investment in the underlying funds). For the six-month period, the total annualized weighted average expense ratio was 0.37% for the Retirement Income Fund; 0.38% for the 2010 Fund; 0.39% for the 2015 Fund; 0.41% for the 2020 Fund; 0.42% for the 2025 Fund; 0.43% for the 2030 Fund; 0.45% for the 2035 and 2040 Funds; and 0.46% for the 2045, 2050, 2055 and 2060 Funds. |
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 7 |
Important information about expenses
Expense examples
Six months ended May 31, 2015
| Lifecycle Funds Premier Class |
|
Beginning account value (12/1/14 |
) |
|
Ending account value (5/31/15 |
) |
|
Expenses paid during period (12/1/14–5/31/15 |
* ) |
|
Effective expenses paid during period (12/1/14–5/31/15 |
† ) |
||||
| Retirement Income Fund actual return | $1,000.00 | $1,026.42 | $0.76 | $2.63 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.18 | 0.76 | 2.62 | ||||||||||||
| 2010 Fund actual return | 1,000.00 | 1,027.89 | 0.76 | 2.68 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.18 | 0.76 | 2.67 | ||||||||||||
| 2015 Fund actual return | 1,000.00 | 1,031.37 | 0.76 | 2.73 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.18 | 0.76 | 2.72 | ||||||||||||
| 2020 Fund actual return | 1,000.00 | 1,034.27 | 0.76 | 2.84 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.18 | 0.76 | 2.82 | ||||||||||||
| 2025 Fund actual return | 1,000.00 | 1,037.34 | 0.76 | 2.90 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.18 | 0.76 | 2.87 | ||||||||||||
| 2030 Fund actual return | 1,000.00 | 1,041.72 | 0.76 | 2.95 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.18 | 0.76 | 2.92 | ||||||||||||
| 2035 Fund actual return | 1,000.00 | 1,044.42 | 0.76 | 3.06 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.18 | 0.76 | 3.02 | ||||||||||||
| 2040 Fund actual return | 1,000.00 | 1,047.03 | 0.77 | 3.06 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.18 | 0.76 | 3.02 | ||||||||||||
| 2045 Fund actual return | 1,000.00 | 1,046.99 | 0.77 | 3.11 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.18 | 0.76 | 3.07 | ||||||||||||
| 2050 Fund actual return | 1,000.00 | 1,045.91 | 0.77 | 3.11 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.18 | 0.76 | 3.07 | ||||||||||||
| 2055 Fund actual return | 1,000.00 | 1,046.39 | 0.77 | 3.11 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.18 | 0.76 | 3.07 | ||||||||||||
| 2060 Fund actual return | 1,000.00 | 1,045.79 | 0.77 | 3.11 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.18 | 0.76 | 3.07 | ||||||||||||
| * | The amounts in the “Expenses paid during period” column are based on each fund’s actual expense ratio for the most recent fiscal half year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2015. The expense charges of one or more of the fund’s share classes may at times reflect a waiver or reimbursement. Please see the prospectus for an explanation, including the date when this waiver or reimbursement is scheduled to end. Without any such waiver or reimbursement, the expenses of the affected share classes would be higher and their performance lower. The annualized expense ratio for the six-month period was 0.15% for the Premier Class of the Lifecycle Funds. |
| 8 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
| † | The amounts in the “Effective expenses paid during period” column are based on each fund’s total expense ratio for the most recent fiscal half year, which includes the fund’s own expense ratio plus its pro rata share of its underlying funds’ expenses (which the fund bears through its investment in the underlying funds). For the six-month period, the total annualized weighted average expense ratio was 0.52% for the Retirement Income Fund; 0.53% for the 2010 Fund; 0.54% for the 2015 Fund; 0.56% for the 2020 Fund; 0.57% for the 2025 Fund; 0.58% for the 2030 Fund; 0.60% for the 2035 and 2040 Funds; and 0.61% for the 2045, 2050, 2055 and 2060 Funds. |
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 9 |
Important information about expenses
Expense examples
Six months ended May 31, 2015
| Lifecycle Funds Retirement Class |
|
Beginning account value (12/1/14 |
) |
|
Ending account value (5/31/15 |
) |
|
Expenses paid during period (12/1/14–5/31/15 |
* ) |
|
Effective expenses paid during period (12/1/14–5/31/15 |
† ) |
||||
| Retirement Income Fund actual return | $1,000.00 | $1,025.05 | $1.26 | $3.13 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.13 | ||||||||||||
| 2010 Fund actual return | 1,000.00 | 1,028.36 | 1.26 | 3.19 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.18 | ||||||||||||
| 2015 Fund actual return | 1,000.00 | 1,030.82 | 1.27 | 3.24 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.23 | ||||||||||||
| 2020 Fund actual return | 1,000.00 | 1,034.07 | 1.27 | 3.35 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.33 | ||||||||||||
| 2025 Fund actual return | 1,000.00 | 1,037.74 | 1.27 | 3.40 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.38 | ||||||||||||
| 2030 Fund actual return | 1,000.00 | 1,040.76 | 1.27 | 3.46 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.43 | ||||||||||||
| 2035 Fund actual return | 1,000.00 | 1,042.95 | 1.27 | 3.57 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.53 | ||||||||||||
| 2040 Fund actual return | 1,000.00 | 1,045.64 | 1.28 | 3.57 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.53 | ||||||||||||
| 2045 Fund actual return | 1,000.00 | 1,045.90 | 1.28 | 3.62 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.58 | ||||||||||||
| 2050 Fund actual return | 1,000.00 | 1,045.67 | 1.28 | 3.62 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.58 | ||||||||||||
| 2055 Fund actual return | 1,000.00 | 1,046.19 | 1.28 | 3.62 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.58 | ||||||||||||
| 2060 Fund actual return | 1,000.00 | 1,046.55 | 1.28 | 3.62 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.58 | ||||||||||||
| * | The amounts in the “Expenses paid during period” column are based on each fund’s actual expense ratio for the most recent fiscal half year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2015. The expense charges of one or more of the fund’s share classes may at times reflect a waiver or reimbursement. Please see the prospectus for an explanation, including the date when this waiver or reimbursement is scheduled to end. Without any such waiver or reimbursement, the expenses of the affected share classes would be higher and their performance lower. The annualized expense ratio for the six-month period was 0.25% for the Retirement Class of the Lifecycle Funds. |
| 10 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
concluded
| † | The amounts in the “Effective expenses paid during period” column are based on each fund’s total expense ratio for the most recent fiscal half year, which includes the fund’s own expense ratio plus its pro rata share of its underlying funds’ expenses (which the fund bears through its investment in the underlying funds). For the six-month period, the total annualized weighted average expense ratio was 0.62% for the Retirement Income Fund; 0.63% for the 2010 Fund; 0.64% for the 2015 Fund; 0.66% for the 2020 Fund; 0.67% for the 2025 Fund; 0.68% for the 2030 Fund; 0.70% for the 2035 and 2040 Funds; and 0.71% for the 2045, 2050, 2055 and 2060 Funds. |
Expense example
Six months ended May 31, 2015
| Lifecycle Funds Retail Class |
|
Beginning account value (12/1/14 |
) |
|
Ending account value (5/31/15 |
) |
|
Expenses paid during period (12/1/14–5/31/15 |
* ) |
|
Effective expenses paid during period (12/1/14–5/31/15 |
† ) |
||||
| Retirement Income Fund actual return | $1,000.00 | $1,025.05 | $1.26 | $3.13 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.13 | ||||||||||||
| * | The amounts in the “Expenses paid during period” column are based on the fund’s actual expense ratio for the most recent fiscal half year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2015. The expense charges of this fund may at times reflect a waiver or reimbursement. Please see the prospectus for an explanation, including the date when this waiver or reimbursement is scheduled to end. Without any such waiver or reimbursement, the expenses of the fund would be higher and its performance lower. The annualized expense ratio for the six-month period was 0.25% for the Retail Class of the Retirement Income Fund. |
| † | The amounts in the “Effective expenses paid during period” column are based on the fund’s total expense ratio for the most recent fiscal half year, which includes the fund’s own expense ratio plus its pro rata share of its underlying funds’ expenses (which the fund bears through its investment in the underlying funds). For that period, the total annualized weighted average expense ratio was 0.62% for the Retail Class of the Retirement Income Fund. |
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 11 |
Investment results of the Lifecycle Funds
Performance for the twelve months ended May 31, 2015
The eleven TIAA-CREF Lifecycle Funds that were in operation for the entire twelve-month reporting period posted gains, surpassing their respective composite benchmarks. Returns ranged from 4.59% for the Retirement Income Fund to 8.03% for the 2040 Fund. The tables on the following pages show returns for all share classes of the funds. The outperformance of the individual Lifecycle Funds, in relation to their respective composite benchmarks, ranged from 0.53 of a percentage point for the 2040 Fund to 0.08 of a percentage point for the Retirement Income Fund.
The 2060 Fund, launched on September 26, 2014, posted a gain of 7.38% for the period ended May 31, 2015. (All results for the Lifecycle Funds are for the Retirement Class.)
U.S. markets rise amid volatility and mixed economic data
The domestic economy showed signs of life throughout much of the twelve-month period relative to many international markets’ economies but tapered off in 2015. Real gross domestic product, which measures the value of all goods and services produced in the nation, decreased 0.2% in the first calendar quarter of 2015. However, the national unemployment rate registered at 5.5% in the final month of the reporting period—down from 6.3% in May 2014. The U.S. dollar rose sharply against most foreign currencies, and inflation remained subdued.
Investors then turned their attention to when the U.S. central bank might start raising short-term interest rates. Conversely, central banks in some European markets, Japan and China boosted efforts to stimulate their sluggish economies, which helped fuel demand for equities in various international markets.
For the twelve-month period, the Russell 3000® Index, a broad measure of the U.S. stock market, advanced 11.86%. The MSCI ALL Country World ex USA Index, which measures the performance of large- and mid-cap stocks in 45 developed and emerging market nations excluding the United States, returned –0.90% in U.S. dollars, but gained 15.04% in local currency terms.
The broad investment-grade, fixed-rate bond market, as measured by the Barclays U.S. Aggregate Bond Index, rose 3.03% for the period. Inflation-indexed bonds, as measured by the Barclays U.S. Treasury Inflation Protected Securities Index (Series-L), lost 0.47%. Short-term U.S. Treasury securities returned 0.91%, as measured by the Barclays U.S. 1–3 Year Government/Credit Bond Index.
| 12 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Strong results from stocks lift the funds’ returns higher
Each of the eleven Lifecycle Funds operating for the entire period advanced for the twelve months, fueled by double-digit gains in U.S. equities.
For the twelve months, the absolute returns of the funds—that is, without regard to the performance of their respective composite benchmarks—were driven by gains in the U.S. equity and fixed-income sectors. The Large-Cap Growth and Growth & Income funds were strong contributors. Conversely, absolute returns were constrained by weaker performance from the emerging market equity and high-yield bond sectors.
U.S. equity contributes most to relative performance
Each of the Lifecycle Funds outperformed their respective composite benchmarks, largely because of the results of several underlying funds in the U.S. equity, international and fixed-income sectors.
U.S. equity investments that contributed most to relative performance were the Large-Cap Growth and Growth & Income funds, respectively. Next in line was the Small-Cap Equity Fund. Among foreign investments, the International Opportunities Fund helped most, followed by the International Equity Fund. In the fixed-income sector, the Bond Plus Fund further boosted relative performance of the Lifecycle Funds.
These positive effects were offset most by the performance of the Emerging Markets Equity Fund. In the fixed-income sector, the High-Yield Fund further detracted from relative performance. Lastly, the Global Natural Resources Fund also hurt returns.
The Lifecycle Funds with larger allocations to stocks posted higher returns. For example, the 2040, 2045, 2050 and 2055 funds, each with approximately 90% of their assets invested in equities as of period-end, advanced 7.98% or higher. By comparison, the Retirement Income Fund, with approximately 60% of its portfolio invested in fixed income and 40% in equity funds at period-end, rose 4.59%. (Performance of the Lifecycle Funds’ underlying funds can be found at www.tiaa-cref.org/performance.)
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 13 |
Lifecycle Retirement Income Fund
Performance as of May 31, 2015
| Total return | Average annual total return | |||||||||||||||
| Lifecycle Retirement | since | |||||||||||||||
| Income Fund | Inception date | 1 year | 5 years | inception | ||||||||||||
| Institutional Class | 11/30/2007 | 4.83 | % | 8.36 | % | 5.09 | % | |||||||||
| Premier Class | 9/30/2009 | 4.68 | 8.19 | 4.91 | * | |||||||||||
| Retirement Class | 11/30/2007 | 4.59 | 8.09 | 4.82 | ||||||||||||
| Retail Class | 11/30/2007 | 4.59 | 8.11 | 4.90 | ||||||||||||
| Retirement Income Fund | ||||||||||||||||
| Composite Index† | — | 4.51 | 8.01 | 5.15 | ‡ | |||||||||||
| Broad market index | ||||||||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 4.62 | ‡ | |||||||||||
| Russell 3000® Index | — | 11.86 | 16.54 | 7.45 | ‡ | |||||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | The performance shown for the Premier Class that is prior to its inception date is based on the performance of the fund’s Retirement Class. The performance for this period has not been restated to reflect the lower expenses of the Premier Class. If these lower expenses had been reflected, the performance of the Premier Class shown for this period would have been higher. |
| † | As of the close of business on May 31, 2015, the Retirement Income Fund Composite Index consisted of: 40.0% Barclays U.S. Aggregate Bond Index; 28.0% Russell 3000 Index; 12.0% MSCI All Country World ex USA Index; 10.0% Barclays U.S. 1–3 Year Government/Credit Bond Index; and 10.0% Barclays U.S. Treasury Inflation Protected Securities Index (Series-L). The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| ‡ | Performance is calculated from the inception date of the Retirement Class. |
| 14 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Lifecycle Retirement Income Fund
$10,000 invested at fund’s inception
Retirement Class (inception November 30, 2007)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||||||
| % of net assets as of 5/31/15 | Target allocation for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 27.1 | % | 28.0 | % | ||||
| International equity | 13.1 | 12.0 | ||||||
| Fixed income | ||||||||
| Fixed income | 39.7 | 40.0 | ||||||
| Short-term fixed income | 10.0 | 10.0 | ||||||
| Inflation-protected assets | 9.9 | 10.0 | ||||||
| Other assets & liabilities, net | 0.2 | — | ||||||
| Total | 100.0 | 100.0 |
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 15 |
Performance as of May 31, 2015
| Total return | Average annual total return | |||||||||||||||
| Lifecycle 2010 Fund | Inception date | 1 year | 5 years | 10 years | ||||||||||||
| Institutional Class | 1/17/2007 | 5.25 | % | 9.22 | % | 5.85 | %* | |||||||||
| Premier Class | 9/30/2009 | 5.10 | 9.06 | 5.68 | * | |||||||||||
| Retirement Class | 10/15/2004 | 5.09 | 8.95 | 5.63 | ||||||||||||
| 2010 Fund Composite Index† | — | 4.91 | 8.87 | 5.78 | ||||||||||||
| Broad market index | ||||||||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 4.61 | ||||||||||||
| Russell 3000® Index | — | 11.86 | 16.54 | 8.41 | ||||||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | The performance shown for the Institutional and Premier classes that is prior to their respective inception dates is based on the performance of the fund’s Retirement Class. The performance for these periods has not been restated to reflect the lower expenses of the Institutional and Premier classes. If those lower expenses had been reflected, the performance of these two classes shown for these periods would have been higher. |
| † | As of the close of business on May 31, 2015, the 2010 Fund Composite Index consisted of: 39.0% Barclays U.S. Aggregate Bond Index; 31.5% Russell 3000 Index; 13.5% MSCI All Country World ex USA Index; 8.0% Barclays U.S. 1–3 Year Government/Credit Bond Index; and 8.0% Barclays U.S. Treasury Inflation Protected Securities Index (Series-L). The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| 16 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Lifecycle 2010 Fund
$10,000 over 10 years
Retirement Class
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||||||
| % of net assets as of 5/31/15 | Target allocation for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 30.7 | % | 31.5 | % | ||||
| International equity | 14.6 | 13.5 | ||||||
| Fixed income | ||||||||
| Fixed income | 38.7 | 39.0 | ||||||
| Short-term fixed income | 7.9 | 8.0 | ||||||
| Inflation-protected assets | 8.0 | 8.0 | ||||||
| Other assets & liabilities, net | 0.1 | — | ||||||
| Total | 100.0 | 100.0 |
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 17 |
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | The performance shown for the Institutional and Premier classes that is prior to their respective inception dates is based on the performance of the fund’s Retirement Class. The performance for these periods has not been restated to reflect the lower expenses of the Institutional and Premier classes. If those lower expenses had been reflected, the performance of these two classes shown for these periods would have been higher. |
| † | As of the close of business on May 31, 2015, the 2015 Fund Composite Index consisted of: 37.9% Barclays U.S. Aggregate Bond Index; 35.1% Russell 3000 Index; 15.0% MSCI All Country World ex USA Index; 6.0% Barclays U.S. 1–3 Year Government/Credit Bond Index; and 6.0% Barclays U.S. Treasury Inflation Protected Securities Index (Series-L). The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| 18 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Lifecycle 2015 Fund
$10,000 over 10 years
Retirement Class
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||||||
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 34.2 | % | 35.0 | % | ||||
| International equity | 16.1 | 15.0 | ||||||
| Fixed income | ||||||||
| Fixed income | 37.7 | 38.0 | ||||||
| Short-term fixed income | 5.9 | 6.0 | ||||||
| Inflation-protected assets | 6.0 | 6.0 | ||||||
| Other assets & liabilities, net | 0.1 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 19 |
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | The performance shown for the Institutional and Premier classes that is prior to their respective inception dates is based on the performance of the fund’s Retirement Class. The performance for these periods has not been restated to reflect the lower expenses of the Institutional and Premier classes. If those lower expenses had been reflected, the performance of these two classes shown for these periods would have been higher. |
| † | As of the close of business on May 31, 2015, the 2020 Fund Composite Index consisted of: 40.7% Russell 3000 Index; 33.9% Barclays U.S. Aggregate Bond Index; 17.4% MSCI All Country World ex USA Index; 4.0% Barclays U.S. 1–3 Year Government/Credit Bond Index; and 4.0% Barclays U.S. Treasury Inflation Protected Securities Index (Series-L). The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| 20 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Lifecycle 2020 Fund
$10,000 over 10 years
Retirement Class
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||||||
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 39.8 | % | 40.6 | % | ||||
| International equity | 18.5 | 17.4 | ||||||
| Fixed income | ||||||||
| Fixed income | 33.7 | 34.0 | ||||||
| Short-term fixed income | 3.9 | 4.0 | ||||||
| Inflation-protected assets | 4.0 | 4.0 | ||||||
| Other assets & liabilities, net | 0.1 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 21 |
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | The performance shown for the Institutional and Premier classes that is prior to their respective inception dates is based on the performance of the fund’s Retirement Class. The performance for these periods has not been restated to reflect the lower expenses of the Institutional and Premier classes. If those lower expenses had been reflected, the performance of these two classes shown for these periods would have been higher. |
| † | As of the close of business on May 31, 2015, the 2025 Fund Composite Index consisted of: 46.3% Russell 3000 Index; 29.9% Barclays U.S. Aggregate Bond Index; 19.8% MSCI All Country World ex USA Index; 2.0% Barclays U.S. 1–3 Year Government/Credit Bond Index; and 2.0% Barclays U.S. Treasury Inflation Protected Securities Index (Series-L). The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| 22 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Lifecycle 2025 Fund
$10,000 over 10 years
Retirement Class
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||||||
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 45.4 | % | 46.2 | % | ||||
| International equity | 20.8 | 19.8 | ||||||
| Fixed income | ||||||||
| Fixed income | 29.7 | 30.0 | ||||||
| Short-term fixed income | 1.9 | 2.0 | ||||||
| Inflation-protected assets | 2.0 | 2.0 | ||||||
| Other assets & liabilities, net | 0.2 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 23 |
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | The performance shown for the Institutional and Premier classes that is prior to their respective inception dates is based on the performance of the fund’s Retirement Class. The performance for these periods has not been restated to reflect the lower expenses of the Institutional and Premier classes. If those lower expenses had been reflected, the performance of these two classes shown for these periods would have been higher. |
| † | As of the close of business on May 31, 2015, the 2030 Fund Composite Index consisted of: 51.9% Russell 3000 Index; 25.9% Barclays U.S. Aggregate Bond Index; and 22.2% MSCI All Country World ex USA Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| 24 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Lifecycle 2030 Fund
$10,000 over 10 years
Retirement Class
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||||||
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 51.0 | % | 51.8 | % | ||||
| International equity | 23.1 | 22.2 | ||||||
| Fixed income | 25.7 | 26.0 | ||||||
| Other assets & liabilities, net | 0.2 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 25 |
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | The performance shown for the Institutional and Premier classes that is prior to their respective inception dates is based on the performance of the fund’s Retirement Class. The performance for these periods has not been restated to reflect the lower expenses of the Institutional and Premier classes. If those lower expenses had been reflected, the performance of these two classes shown for these periods would have been higher. |
| † | As of the close of business on May 31, 2015, the 2035 Fund Composite Index consisted of: 57.5% Russell 3000 Index; 24.6% MSCI All Country World ex USA Index; and 17.9% Barclays U.S. Aggregate Bond Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| 26 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Lifecycle 2035 Fund
$10,000 over 10 years
Retirement Class
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||||||
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 56.6 | % | 57.4 | % | ||||
| International equity | 25.5 | 24.6 | ||||||
| Fixed income | 17.7 | 18.0 | ||||||
| Other assets & liabilities, net | 0.2 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 27 |
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | The performance shown for the Institutional and Premier classes that is prior to their respective inception dates is based on the performance of the fund’s Retirement Class. The performance for these periods has not been restated to reflect the lower expenses of the Institutional and Premier classes. If those lower expenses had been reflected, the performance of these two classes shown for these periods would have been higher. |
| † | As of the close of business on May 31, 2015, the 2040 Fund Composite Index consisted of: 63.0% Russell 3000 Index; 27.0% MSCI All Country World ex USA Index; and 10.0% Barclays U.S. Aggregate Bond Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| 28 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Lifecycle 2040 Fund
$10,000 over 10 years
Retirement Class
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||||||
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 62.1 | % | 63.0 | % | ||||
| International equity | 27.8 | 27.0 | ||||||
| Fixed income | 9.9 | 10.0 | ||||||
| Other assets & liabilities, net | 0.2 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 29 |
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | The performance shown for the Premier Class that is prior to its inception date is based on the performance of the fund’s Retirement Class. The performance for this period has not been restated to reflect the lower expenses of the Premier Class. If these lower expenses had been reflected, the performance of the Premier Class shown for this period would have been higher. |
| † | As of the close of business on May 31, 2015, the 2045 Fund Composite Index consisted of: 63.0% Russell 3000 Index; 27.0% MSCI All Country World ex USA Index; and 10.0% Barclays U.S. Aggregate Bond Index. |
| The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. | |
| ‡ | Performance is calculated from the inception date of the Retirement Class. |
| 30 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Lifecycle 2045 Fund
$10,000 invested at fund’s inception
Retirement Class (inception November 30, 2007)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||||||
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 61.9 | % | 63.0 | % | ||||
| International equity | 27.9 | 27.0 | ||||||
| Fixed income | 9.9 | 10.0 | ||||||
| Other assets & liabilities, net | 0.3 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 31 |
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | The performance shown for the Premier Class that is prior to its inception date is based on the performance of the fund’s Retirement Class. The performance for this period has not been restated to reflect the lower expenses of the Premier Class. If these lower expenses had been reflected, the performance of the Premier Class shown for this period would have been higher. |
| † | As of the close of business on May 31, 2015, the 2050 Fund Composite Index consisted of: 63.0% Russell 3000 Index; 27.0% MSCI All Country World ex USA Index; and 10.0% Barclays U.S. Aggregate Bond Index. |
| The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. | |
| ‡ | Performance is calculated from the inception date of the Retirement Class. |
| 32 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Lifecycle 2050 Fund
$10,000 invested at fund’s inception
Retirement Class (inception November 30, 2007)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||||||
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 61.9 | % | 63.0 | % | ||||
| International equity | 27.9 | 27.0 | ||||||
| Fixed income | 9.9 | 10.0 | ||||||
| Other assets & liabilities, net | 0.3 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 33 |
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the 2055 Fund Composite Index consisted of: 63.0% Russell 3000 Index; 27.0% MSCI All Country World ex USA Index; and 10.0% Barclays U.S. Aggregate Bond Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 34 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Lifecycle 2055 Fund
$10,000 invested at fund’s inception
Retirement Class (inception April 29, 2011)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||||||
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 61.8 | % | 63.0 | % | ||||
| International equity | 27.9 | 27.0 | ||||||
| Fixed income | 10.0 | 10.0 | ||||||
| Other assets & liabilities, net | 0.3 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 35 |
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the 2060 Fund Composite Index consisted of: 63.0% Russell 3000 Index; 27.0% MSCI All Country World ex USA Index; and 10.0% Barclays U.S. Aggregate Bond Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 36 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Lifecycle 2060 Fund
$10,000 invested at fund’s inception
Retirement Class (inception September 26, 2014)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||||||
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 62.3 | % | 63.0 | % | ||||
| International equity | 27.8 | 27.0 | ||||||
| Fixed income | 9.9 | 10.0 | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 3015
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 37 |
Lifecycle Retirement Income Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.8% (a) | |||||||||||||
| FIXED INCOME — 39.7% | |||||||||||||
| 8,727,136 | TIAA-CREF Bond Fund | $ | 92,158,556 | 24.8 | % | ||||||||
| 3,801,658 | TIAA-CREF Bond Plus Fund | 40,601,702 | 10.9 | ||||||||||
| 371,142 | TIAA-CREF Emerging Markets Debt Fund | 3,659,464 | 1.0 | ||||||||||
| 1,111,671 | TIAA-CREF High-Yield Fund | 11,094,473 | 3.0 | ||||||||||
| TOTAL FIXED INCOME | 147,514,195 | 39.7 | |||||||||||
| INFLATION-PROTECTED ASSETS — 9.9% | |||||||||||||
| 3,218,338 | TIAA-CREF Inflation-Linked Bond Fund | 36,914,332 | 9.9 | ||||||||||
| TOTAL INFLATION-PROTECTED ASSETS | 36,914,332 | 9.9 | |||||||||||
| INTERNATIONAL EQUITY — 13.1% | |||||||||||||
| 882,641 | TIAA-CREF Emerging Markets Equity Fund | 9,320,689 | 2.5 | ||||||||||
| 1,515,495 | TIAA-CREF Enhanced International Equity Index Fund | 11,790,552 | 3.2 | ||||||||||
| 259,679 | TIAA-CREF Global Natural Resources Fund | 2,225,445 | 0.6 | ||||||||||
| 1,182,026 | TIAA-CREF International Equity Fund | 14,018,827 | 3.8 | ||||||||||
| 975,214 | TIAA-CREF International Opportunities Fund | 11,107,686 | 3.0 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 48,463,199 | 13.1 | |||||||||||
| SHORT-TERM FIXED INCOME — 10.0% | |||||||||||||
| 27,890 | * | TIAA-CREF Money Market Fund | 27,890 | 0.0 | |||||||||
| 3,572,135 | TIAA-CREF Short-Term Bond Fund | 37,078,757 | 10.0 | ||||||||||
| TOTAL SHORT-TERM FIXED INCOME | 37,106,647 | 10.0 | |||||||||||
| U.S. EQUITY — 27.1% | |||||||||||||
| 1,594,114 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 19,001,844 | 5.1 | ||||||||||
| 1,677,817 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 17,617,079 | 4.7 | ||||||||||
| 1,304,013 | TIAA-CREF Growth & Income Fund | 16,574,010 | 4.5 | ||||||||||
| 1,254,567 | TIAA-CREF Large-Cap Growth Fund | 20,185,979 | 5.4 | ||||||||||
| 1,007,125 | TIAA-CREF Large-Cap Value Fund | 18,692,241 | 5.0 | ||||||||||
| 18,002 | TIAA-CREF Mid-Cap Growth Fund | 405,229 | 0.1 | ||||||||||
| 11,016 | TIAA-CREF Mid-Cap Value Fund | 277,711 | 0.1 | ||||||||||
| 446,263 | TIAA-CREF Small-Cap Equity Fund | 8,099,674 | 2.2 | ||||||||||
| TOTAL U.S. EQUITY | 100,853,767 | 27.1 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $337,812,769) | 370,852,140 | 99.8 | ||||||||||
| TOTAL PORTFOLIO | (Cost $337,812,769) | 370,852,140 | 99.8 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 840,680 | 0.2 | |||||||||||
| NET ASSETS | $ | 371,692,820 | 100.0 | % | |||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| 38 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements |
Portfolio of investments
Lifecycle 2010 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.9% (a) | |||||||||||||
| FIXED INCOME — 38.7% | |||||||||||||
| 25,119,550 | TIAA-CREF Bond Fund | $ | 265,262,445 | 23.8 | % | ||||||||
| 11,360,695 | TIAA-CREF Bond Plus Fund | 121,332,218 | 10.9 | ||||||||||
| 1,112,454 | TIAA-CREF Emerging Markets Debt Fund | 10,968,801 | 1.0 | ||||||||||
| 3,321,126 | TIAA-CREF High-Yield Fund | 33,144,838 | 3.0 | ||||||||||
| TOTAL FIXED INCOME | 430,708,302 | 38.7 | |||||||||||
| INFLATION-PROTECTED ASSETS — 8.0% | |||||||||||||
| 7,771,209 | TIAA-CREF Inflation-Linked Bond Fund | 89,135,764 | 8.0 | ||||||||||
| TOTAL INFLATION-PROTECTED ASSETS | 89,135,764 | 8.0 | |||||||||||
| INTERNATIONAL EQUITY — 14.6% | |||||||||||||
| 2,922,840 | TIAA-CREF Emerging Markets Equity Fund | 30,865,194 | 2.8 | ||||||||||
| 5,144,125 | TIAA-CREF Enhanced International Equity Index Fund | 40,021,293 | 3.6 | ||||||||||
| 879,534 | TIAA-CREF Global Natural Resources Fund | 7,537,604 | 0.7 | ||||||||||
| 3,915,526 | TIAA-CREF International Equity Fund | 46,438,137 | 4.2 | ||||||||||
| 3,290,113 | TIAA-CREF International Opportunities Fund | 37,474,392 | 3.3 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 162,336,620 | 14.6 | |||||||||||
| SHORT-TERM FIXED INCOME — 7.9% | |||||||||||||
| 58,956 | * | TIAA-CREF Money Market Fund | 58,956 | 0.0 | |||||||||
| 8,478,750 | TIAA-CREF Short-Term Bond Fund | 88,009,424 | 7.9 | ||||||||||
| TOTAL SHORT-TERM FIXED INCOME | 88,068,380 | 7.9 | |||||||||||
| U.S. EQUITY — 30.7% | |||||||||||||
| 5,422,063 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 64,630,985 | 5.8 | ||||||||||
| 5,733,381 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 60,200,504 | 5.4 | ||||||||||
| 4,417,727 | TIAA-CREF Growth & Income Fund | 56,149,311 | 5.1 | ||||||||||
| 4,249,020 | TIAA-CREF Large-Cap Growth Fund | 68,366,735 | 6.1 | ||||||||||
| 3,371,335 | TIAA-CREF Large-Cap Value Fund | 62,571,976 | 5.6 | ||||||||||
| 78,029 | TIAA-CREF Mid-Cap Growth Fund | 1,756,423 | 0.2 | ||||||||||
| 54,127 | TIAA-CREF Mid-Cap Value Fund | 1,364,554 | 0.1 | ||||||||||
| 1,494,734 | TIAA-CREF Small-Cap Equity Fund | 27,129,424 | 2.4 | ||||||||||
| TOTAL U.S. EQUITY | 342,169,912 | 30.7 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $961,066,082) | 1,112,418,978 | 99.9 | ||||||||||
| TOTAL PORTFOLIO | (Cost $961,066,082) | 1,112,418,978 | 99.9 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 1,587,015 | 0.1 | |||||||||||
| NET ASSETS | $ | 1,114,005,993 | 100.0 | % | |||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 39 |
Portfolio of investments
Lifecycle 2015 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.9% (a) | |||||||||||||
| FIXED INCOME — 37.7% | |||||||||||||
| 39,047,179 | TIAA-CREF Bond Fund | $ | 412,338,205 | 22.8 | % | ||||||||
| 18,381,194 | TIAA-CREF Bond Plus Fund | 196,311,153 | 10.9 | ||||||||||
| 1,800,121 | TIAA-CREF Emerging Markets Debt Fund | 17,749,195 | 1.0 | ||||||||||
| 5,368,299 | TIAA-CREF High-Yield Fund | 53,575,625 | 3.0 | ||||||||||
| TOTAL FIXED INCOME | 679,974,178 | 37.7 | |||||||||||
| INFLATION-PROTECTED ASSETS — 6.0% | |||||||||||||
| 9,435,199 | TIAA-CREF Inflation-Linked Bond Fund | 108,221,736 | 6.0 | ||||||||||
| TOTAL INFLATION-PROTECTED ASSETS | 108,221,736 | 6.0 | |||||||||||
| INTERNATIONAL EQUITY — 16.1% | |||||||||||||
| 5,150,540 | TIAA-CREF Emerging Markets Equity Fund | 54,389,698 | 3.0 | ||||||||||
| 9,251,402 | TIAA-CREF Enhanced International Equity Index Fund | 71,975,909 | 4.0 | ||||||||||
| 1,587,583 | TIAA-CREF Global Natural Resources Fund | 13,605,586 | 0.8 | ||||||||||
| 6,923,199 | TIAA-CREF International Equity Fund | 82,109,139 | 4.6 | ||||||||||
| 5,934,784 | TIAA-CREF International Opportunities Fund | 67,597,194 | 3.7 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 289,677,526 | 16.1 | |||||||||||
| SHORT-TERM FIXED INCOME — 5.9% | |||||||||||||
| 143,145 | * | TIAA-CREF Money Market Fund | 143,145 | 0.0 | |||||||||
| 10,258,836 | TIAA-CREF Short-Term Bond Fund | 106,486,716 | 5.9 | ||||||||||
| TOTAL SHORT-TERM FIXED INCOME | 106,629,861 | 5.9 | |||||||||||
| U.S. EQUITY — 34.2% | |||||||||||||
| 9,813,781 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 116,980,270 | 6.5 | ||||||||||
| 10,391,441 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 109,110,135 | 6.0 | ||||||||||
| 7,981,244 | TIAA-CREF Growth & Income Fund | 101,441,617 | 5.6 | ||||||||||
| 7,589,661 | TIAA-CREF Large-Cap Growth Fund | 122,117,644 | 6.8 | ||||||||||
| 6,080,627 | TIAA-CREF Large-Cap Value Fund | 112,856,441 | 6.2 | ||||||||||
| 167,520 | TIAA-CREF Mid-Cap Growth Fund | 3,770,884 | 0.2 | ||||||||||
| 118,861 | TIAA-CREF Mid-Cap Value Fund | 2,996,481 | 0.2 | ||||||||||
| 2,694,586 | TIAA-CREF Small-Cap Equity Fund | 48,906,733 | 2.7 | ||||||||||
| TOTAL U.S. EQUITY | 618,180,205 | 34.2 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $1,695,293,050) | 1,802,683,506 | 99.9 | ||||||||||
| TOTAL PORTFOLIO | (Cost $1,695,293,050) | 1,802,683,506 | 99.9 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 2,503,129 | 0.1 | |||||||||||
| NET ASSETS | $ | 1,805,186,635 | 100.0 | % | |||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| 40 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements |
Portfolio of investments
Lifecycle 2020 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.9% (a) | |||||||||||||
| FIXED INCOME — 33.7% | |||||||||||||
| 50,636,608 | TIAA-CREF Bond Fund | $ | 534,722,578 | 18.8 | % | ||||||||
| 28,887,556 | TIAA-CREF Bond Plus Fund | 308,519,103 | 10.9 | ||||||||||
| 2,836,133 | TIAA-CREF Emerging Markets Debt Fund | 27,964,271 | 1.0 | ||||||||||
| 8,525,785 | TIAA-CREF High-Yield Fund | 85,087,339 | 3.0 | ||||||||||
| TOTAL FIXED INCOME | 956,293,291 | 33.7 | |||||||||||
| INFLATION-PROTECTED ASSETS — 4.0% | |||||||||||||
| 9,863,059 | TIAA-CREF Inflation-Linked Bond Fund | 113,129,291 | 4.0 | ||||||||||
| TOTAL INFLATION-PROTECTED ASSETS | 113,129,291 | 4.0 | |||||||||||
| INTERNATIONAL EQUITY — 18.5% | |||||||||||||
| 9,066,338 | TIAA-CREF Emerging Markets Equity Fund | 95,740,526 | 3.4 | ||||||||||
| 16,765,159 | TIAA-CREF Enhanced International Equity Index Fund | 130,432,937 | 4.6 | ||||||||||
| 2,970,139 | TIAA-CREF Global Natural Resources Fund | 25,454,093 | 0.9 | ||||||||||
| 12,476,946 | TIAA-CREF International Equity Fund | 147,976,574 | 5.2 | ||||||||||
| 10,860,345 | TIAA-CREF International Opportunities Fund | 123,699,326 | 4.4 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 523,303,456 | 18.5 | |||||||||||
| SHORT-TERM FIXED INCOME — 3.9% | |||||||||||||
| 191,587 | * | TIAA-CREF Money Market Fund | 191,587 | 0.0 | |||||||||
| 10,676,438 | TIAA-CREF Short-Term Bond Fund | 110,821,427 | 3.9 | ||||||||||
| TOTAL SHORT-TERM FIXED INCOME | 111,013,014 | 3.9 | |||||||||||
| U.S. EQUITY — 39.8% | |||||||||||||
| 17,937,272 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 213,812,288 | 7.5 | ||||||||||
| 18,990,112 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 199,396,180 | 7.0 | ||||||||||
| 14,473,587 | TIAA-CREF Growth & Income Fund | 183,959,289 | 6.5 | ||||||||||
| 13,796,820 | TIAA-CREF Large-Cap Growth Fund | 221,990,838 | 7.8 | ||||||||||
| 11,094,244 | TIAA-CREF Large-Cap Value Fund | 205,909,168 | 7.3 | ||||||||||
| 365,635 | TIAA-CREF Mid-Cap Growth Fund | 8,230,434 | 0.3 | ||||||||||
| 272,263 | TIAA-CREF Mid-Cap Value Fund | 6,863,750 | 0.2 | ||||||||||
| 4,913,255 | TIAA-CREF Small-Cap Equity Fund | 89,175,577 | 3.2 | ||||||||||
| TOTAL U.S. EQUITY | 1,129,337,524 | 39.8 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $2,625,302,005) | 2,833,076,576 | 99.9 | ||||||||||
| TOTAL PORTFOLIO | (Cost $2,625,302,005) | 2,833,076,576 | 99.9 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 2,223,852 | 0.1 | |||||||||||
| NET ASSETS | $ | 2,835,300,428 | 100.0 | % | |||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 41 |
Portfolio of investments
Lifecycle 2025 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.8% (a) | |||||||||||||
| FIXED INCOME — 29.7% | |||||||||||||
| 38,087,414 | TIAA-CREF Bond Fund | $ | 402,203,093 | 13.9 | % | ||||||||
| 29,159,752 | TIAA-CREF Bond Plus Fund | 311,426,146 | 10.8 | ||||||||||
| 2,880,263 | TIAA-CREF Emerging Markets Debt Fund | 28,399,394 | 1.0 | ||||||||||
| 11,492,830 | TIAA-CREF High-Yield Fund | 114,698,447 | 4.0 | ||||||||||
| TOTAL FIXED INCOME | 856,727,080 | 29.7 | |||||||||||
| INFLATION-PROTECTED ASSETS — 2.0% | |||||||||||||
| 4,966,117 | TIAA-CREF Inflation-Linked Bond Fund | 56,961,365 | 2.0 | ||||||||||
| TOTAL INFLATION-PROTECTED ASSETS | 56,961,365 | 2.0 | |||||||||||
| INTERNATIONAL EQUITY — 20.8% | |||||||||||||
| 10,214,505 | TIAA-CREF Emerging Markets Equity Fund | 107,865,171 | 3.7 | ||||||||||
| 19,308,385 | TIAA-CREF Enhanced International Equity Index Fund | 150,219,236 | 5.2 | ||||||||||
| 3,369,552 | TIAA-CREF Global Natural Resources Fund | 28,877,061 | 1.0 | ||||||||||
| 14,217,022 | TIAA-CREF International Equity Fund | 168,613,876 | 5.9 | ||||||||||
| 12,506,409 | TIAA-CREF International Opportunities Fund | 142,448,000 | 5.0 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 598,023,344 | 20.8 | |||||||||||
| SHORT-TERM FIXED INCOME — 1.9% | |||||||||||||
| 187,740 | * | TIAA-CREF Money Market Fund | 187,740 | 0.0 | |||||||||
| 5,323,977 | TIAA-CREF Short-Term Bond Fund | 55,262,883 | 1.9 | ||||||||||
| TOTAL SHORT-TERM FIXED INCOME | 55,450,623 | 1.9 | |||||||||||
| U.S. EQUITY — 45.4% | |||||||||||||
| 20,807,913 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 248,030,325 | 8.6 | ||||||||||
| 21,990,139 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 230,896,463 | 8.0 | ||||||||||
| 16,675,670 | TIAA-CREF Growth & Income Fund | 211,947,764 | 7.3 | ||||||||||
| 15,940,563 | TIAA-CREF Large-Cap Growth Fund | 256,483,664 | 8.9 | ||||||||||
| 12,845,209 | TIAA-CREF Large-Cap Value Fund | 238,407,070 | 8.3 | ||||||||||
| 471,810 | TIAA-CREF Mid-Cap Growth Fund | 10,620,443 | 0.4 | ||||||||||
| 360,420 | TIAA-CREF Mid-Cap Value Fund | 9,086,194 | 0.3 | ||||||||||
| 5,676,509 | TIAA-CREF Small-Cap Equity Fund | 103,028,644 | 3.6 | ||||||||||
| TOTAL U.S. EQUITY | 1,308,500,567 | 45.4 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $2,624,886,548) | 2,875,662,979 | 99.8 | ||||||||||
| TOTAL PORTFOLIO | (Cost $2,624,886,548) | 2,875,662,979 | 99.8 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 5,158,518 | 0.2 | |||||||||||
| NET ASSETS | $ | 2,880,821,497 | 100.0 | % | |||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| 42 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements |
Portfolio of investments
Lifecycle 2030 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.8% (a) | |||||||||||||
| FIXED INCOME — 25.7% | |||||||||||||
| 26,401,880 | TIAA-CREF Bond Fund | $ | 278,803,848 | 9.9 | % | ||||||||
| 25,591,384 | TIAA-CREF Bond Plus Fund | 273,315,980 | 9.8 | ||||||||||
| 2,789,653 | TIAA-CREF Emerging Markets Debt Fund | 27,505,981 | 1.0 | ||||||||||
| 13,921,228 | TIAA-CREF High-Yield Fund | 138,933,852 | 5.0 | ||||||||||
| TOTAL FIXED INCOME | 718,559,661 | 25.7 | |||||||||||
| INTERNATIONAL EQUITY — 23.1% | |||||||||||||
| 10,979,022 | TIAA-CREF Emerging Markets Equity Fund | 115,938,476 | 4.2 | ||||||||||
| 20,998,617 | TIAA-CREF Enhanced International Equity Index Fund | 163,369,243 | 5.8 | ||||||||||
| 3,629,625 | TIAA-CREF Global Natural Resources Fund | 31,105,884 | 1.1 | ||||||||||
| 15,321,289 | TIAA-CREF International Equity Fund | 181,710,483 | 6.5 | ||||||||||
| 13,600,540 | TIAA-CREF International Opportunities Fund | 154,910,155 | 5.5 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 647,034,241 | 23.1 | |||||||||||
| SHORT-TERM FIXED INCOME — 0.0% | |||||||||||||
| 180,563 | * | TIAA-CREF Money Market Fund | 180,563 | 0.0 | |||||||||
| TOTAL SHORT-TERM FIXED INCOME | 180,563 | 0.0 | |||||||||||
| U.S. EQUITY — 51.0% | |||||||||||||
| 22,743,090 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 271,097,633 | 9.7 | ||||||||||
| 24,014,671 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 252,154,045 | 9.0 | ||||||||||
| 18,141,491 | TIAA-CREF Growth & Income Fund | 230,578,349 | 8.2 | ||||||||||
| 17,428,060 | TIAA-CREF Large-Cap Growth Fund | 280,417,488 | 10.0 | ||||||||||
| 13,953,793 | TIAA-CREF Large-Cap Value Fund | 258,982,398 | 9.3 | ||||||||||
| 550,422 | TIAA-CREF Mid-Cap Growth Fund | 12,389,998 | 0.4 | ||||||||||
| 431,281 | TIAA-CREF Mid-Cap Value Fund | 10,872,601 | 0.4 | ||||||||||
| 6,187,160 | TIAA-CREF Small-Cap Equity Fund | 112,296,960 | 4.0 | ||||||||||
| TOTAL U.S. EQUITY | 1,428,789,472 | 51.0 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $2,503,083,565) | 2,794,563,937 | 99.8 | ||||||||||
| TOTAL PORTFOLIO | (Cost $2,503,083,565) | 2,794,563,937 | 99.8 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 5,537,918 | 0.2 | |||||||||||
| NET ASSETS | $ | 2,800,101,855 | 100.0 | % | |||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 43 |
Portfolio of investments
Lifecycle 2035 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.8% (a) | |||||||||||||
| FIXED INCOME — 17.7% | |||||||||||||
| 15,651,048 | TIAA-CREF Bond Fund | $ | 165,275,071 | 5.8 | % | ||||||||
| 15,500,858 | TIAA-CREF Bond Plus Fund | 165,549,162 | 5.9 | ||||||||||
| 2,811,204 | TIAA-CREF Emerging Markets Debt Fund | 27,718,476 | 1.0 | ||||||||||
| 14,019,285 | TIAA-CREF High-Yield Fund | 139,912,465 | 5.0 | ||||||||||
| TOTAL FIXED INCOME | 498,455,174 | 17.7 | |||||||||||
| INTERNATIONAL EQUITY — 25.5% | |||||||||||||
| 12,091,302 | TIAA-CREF Emerging Markets Equity Fund | 127,684,152 | 4.5 | ||||||||||
| 23,385,273 | TIAA-CREF Enhanced International Equity Index Fund | 181,937,422 | 6.5 | ||||||||||
| 4,043,428 | TIAA-CREF Global Natural Resources Fund | 34,652,178 | 1.2 | ||||||||||
| 16,954,882 | TIAA-CREF International Equity Fund | 201,084,905 | 7.2 | ||||||||||
| 15,144,281 | TIAA-CREF International Opportunities Fund | 172,493,361 | 6.1 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 717,852,018 | 25.5 | |||||||||||
| SHORT-TERM FIXED INCOME — 0.0% | |||||||||||||
| 186,513 | * | TIAA-CREF Money Market Fund | 186,513 | 0.0 | |||||||||
| TOTAL SHORT-TERM FIXED INCOME | 186,513 | 0.0 | |||||||||||
| U.S. EQUITY — 56.6% | |||||||||||||
| 25,387,125 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 302,614,535 | 10.7 | ||||||||||
| 26,808,375 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 281,487,942 | 10.0 | ||||||||||
| 20,192,051 | TIAA-CREF Growth & Income Fund | 256,640,974 | 9.1 | ||||||||||
| 19,414,866 | TIAA-CREF Large-Cap Growth Fund | 312,385,193 | 11.1 | ||||||||||
| 15,578,983 | TIAA-CREF Large-Cap Value Fund | 289,145,928 | 10.2 | ||||||||||
| 656,996 | TIAA-CREF Mid-Cap Growth Fund | 14,788,989 | 0.5 | ||||||||||
| 517,840 | TIAA-CREF Mid-Cap Value Fund | 13,054,738 | 0.5 | ||||||||||
| 6,954,256 | TIAA-CREF Small-Cap Equity Fund | 126,219,741 | 4.5 | ||||||||||
| TOTAL U.S. EQUITY | 1,596,338,040 | 56.6 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $2,478,512,360) | 2,812,831,745 | 99.8 | ||||||||||
| TOTAL PORTFOLIO | (Cost $2,478,512,360) | 2,812,831,745 | 99.8 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 5,576,407 | 0.2 | |||||||||||
| NET ASSETS | $ | 2,818,408,152 | 100.0 | % | |||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| 44 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements |
Portfolio of investments
Lifecycle 2040 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.8% (a) | |||||||||||||
| FIXED INCOME — 9.9% | |||||||||||||
| 13,531,483 | TIAA-CREF Bond Plus Fund | $ | 144,516,234 | 4.0 | % | ||||||||
| 3,610,959 | TIAA-CREF Emerging Markets Debt Fund | 35,604,055 | 1.0 | ||||||||||
| 18,085,092 | TIAA-CREF High-Yield Fund | 180,489,214 | 4.9 | ||||||||||
| TOTAL FIXED INCOME | 360,609,503 | 9.9 | |||||||||||
| INTERNATIONAL EQUITY — 27.8% | |||||||||||||
| 16,972,014 | TIAA-CREF Emerging Markets Equity Fund | 179,224,473 | 4.9 | ||||||||||
| 33,021,481 | TIAA-CREF Enhanced International Equity Index Fund | 256,907,123 | 7.1 | ||||||||||
| 5,703,830 | TIAA-CREF Global Natural Resources Fund | 48,881,827 | 1.3 | ||||||||||
| 23,833,245 | TIAA-CREF International Equity Fund | 282,662,286 | 7.8 | ||||||||||
| 21,358,055 | TIAA-CREF International Opportunities Fund | 243,268,242 | 6.7 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 1,010,943,951 | 27.8 | |||||||||||
| SHORT-TERM FIXED INCOME — 0.0% | |||||||||||||
| 273,442 | * | TIAA-CREF Money Market Fund | 273,442 | 0.0 | |||||||||
| TOTAL SHORT-TERM FIXED INCOME | 273,442 | 0.0 | |||||||||||
| U.S. EQUITY — 62.1% | |||||||||||||
| 35,875,399 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 427,634,756 | 11.8 | ||||||||||
| 37,912,978 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 398,086,271 | 11.0 | ||||||||||
| 28,476,357 | TIAA-CREF Growth & Income Fund | 361,934,494 | 10.0 | ||||||||||
| 27,380,578 | TIAA-CREF Large-Cap Growth Fund | 440,553,498 | 12.1 | ||||||||||
| 21,935,957 | TIAA-CREF Large-Cap Value Fund | 407,131,367 | 11.2 | ||||||||||
| 984,188 | TIAA-CREF Mid-Cap Growth Fund | 22,154,064 | 0.6 | ||||||||||
| 766,111 | TIAA-CREF Mid-Cap Value Fund | 19,313,666 | 0.5 | ||||||||||
| 9,820,523 | TIAA-CREF Small-Cap Equity Fund | 178,242,496 | 4.9 | ||||||||||
| TOTAL U.S. EQUITY | 2,255,050,612 | 62.1 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $3,139,045,459) | 3,626,877,508 | 99.8 | ||||||||||
| TOTAL PORTFOLIO | (Cost $3,139,045,459) | 3,626,877,508 | 99.8 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 7,379,583 | 0.2 | |||||||||||
| NET ASSETS | $ | 3,634,257,091 | 100.0 | % | |||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 45 |
Portfolio of investments
Lifecycle 2045 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.7% (a) | |||||||||||||
| FIXED INCOME — 9.9% | |||||||||||||
| 5,057,537 | TIAA-CREF Bond Plus Fund | $ | 54,014,492 | 4.0 | % | ||||||||
| 1,336,145 | TIAA-CREF Emerging Markets Debt Fund | 13,174,386 | 1.0 | ||||||||||
| 6,721,179 | TIAA-CREF High-Yield Fund | 67,077,366 | 4.9 | ||||||||||
| TOTAL FIXED INCOME | 134,266,244 | 9.9 | |||||||||||
| INTERNATIONAL EQUITY — 27.9% | |||||||||||||
| 6,342,398 | TIAA-CREF Emerging Markets Equity Fund | 66,975,719 | 5.0 | ||||||||||
| 12,370,672 | TIAA-CREF Enhanced International Equity Index Fund | 96,243,829 | 7.1 | ||||||||||
| 2,108,109 | TIAA-CREF Global Natural Resources Fund | 18,066,490 | 1.3 | ||||||||||
| 8,876,693 | TIAA-CREF International Equity Fund | 105,277,576 | 7.8 | ||||||||||
| 7,882,773 | TIAA-CREF International Opportunities Fund | 89,784,779 | 6.7 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 376,348,393 | 27.9 | |||||||||||
| SHORT-TERM FIXED INCOME — 0.0% | |||||||||||||
| 81,020 | * | TIAA-CREF Money Market Fund | 81,020 | 0.0 | |||||||||
| TOTAL SHORT-TERM FIXED INCOME | 81,020 | 0.0 | |||||||||||
| U.S. EQUITY — 61.9% | |||||||||||||
| 13,327,858 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 158,868,063 | 11.8 | ||||||||||
| 14,063,336 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 147,665,030 | 10.9 | ||||||||||
| 10,570,571 | TIAA-CREF Growth & Income Fund | 134,351,959 | 9.9 | ||||||||||
| 10,155,237 | TIAA-CREF Large-Cap Growth Fund | 163,397,760 | 12.1 | ||||||||||
| 8,150,771 | TIAA-CREF Large-Cap Value Fund | 151,278,305 | 11.2 | ||||||||||
| 369,748 | TIAA-CREF Mid-Cap Growth Fund | 8,323,026 | 0.6 | ||||||||||
| 284,121 | TIAA-CREF Mid-Cap Value Fund | 7,162,694 | 0.5 | ||||||||||
| 3,645,445 | TIAA-CREF Small-Cap Equity Fund | 66,164,818 | 4.9 | ||||||||||
| TOTAL U.S. EQUITY | 837,211,655 | 61.9 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $1,175,686,220) | 1,347,907,312 | 99.7 | ||||||||||
| TOTAL PORTFOLIO | (Cost $1,175,686,220) | 1,347,907,312 | 99.7 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 4,384,832 | 0.3 | |||||||||||
| NET ASSETS | $ | 1,352,292,144 | 100.0 | % | |||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| 46 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements |
Portfolio of investments
Lifecycle 2050 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.7% (a) | |||||||||||||
| FIXED INCOME — 9.9% | |||||||||||||
| 2,967,621 | TIAA-CREF Bond Plus Fund | $ | 31,694,189 | 4.0 | % | ||||||||
| 779,544 | TIAA-CREF Emerging Markets Debt Fund | 7,686,306 | 1.0 | ||||||||||
| 3,927,200 | TIAA-CREF High-Yield Fund | 39,193,456 | 4.9 | ||||||||||
| TOTAL FIXED INCOME | 78,573,951 | 9.9 | |||||||||||
| INTERNATIONAL EQUITY — 27.9% | |||||||||||||
| 3,709,710 | TIAA-CREF Emerging Markets Equity Fund | 39,174,542 | 5.0 | ||||||||||
| 7,269,156 | TIAA-CREF Enhanced International Equity Index Fund | 56,554,031 | 7.2 | ||||||||||
| 1,228,628 | TIAA-CREF Global Natural Resources Fund | 10,529,338 | 1.3 | ||||||||||
| 5,200,414 | TIAA-CREF International Equity Fund | 61,676,912 | 7.8 | ||||||||||
| 4,593,707 | TIAA-CREF International Opportunities Fund | 52,322,322 | 6.6 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 220,257,145 | 27.9 | |||||||||||
| SHORT-TERM FIXED INCOME — 0.0% | |||||||||||||
| 41,882 | * | TIAA-CREF Money Market Fund | 41,882 | 0.0 | |||||||||
| TOTAL SHORT-TERM FIXED INCOME | 41,882 | 0.0 | |||||||||||
| U.S. EQUITY — 61.9% | |||||||||||||
| 7,783,333 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 92,777,333 | 11.8 | ||||||||||
| 8,208,979 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 86,194,279 | 10.9 | ||||||||||
| 6,170,198 | TIAA-CREF Growth & Income Fund | 78,423,220 | 9.9 | ||||||||||
| 5,936,212 | TIAA-CREF Large-Cap Growth Fund | 95,513,657 | 12.1 | ||||||||||
| 4,751,307 | TIAA-CREF Large-Cap Value Fund | 88,184,265 | 11.2 | ||||||||||
| 214,184 | TIAA-CREF Mid-Cap Growth Fund | 4,821,272 | 0.6 | ||||||||||
| 165,846 | TIAA-CREF Mid-Cap Value Fund | 4,180,971 | 0.5 | ||||||||||
| 2,127,897 | TIAA-CREF Small-Cap Equity Fund | 38,621,332 | 4.9 | ||||||||||
| TOTAL U.S. EQUITY | 488,716,329 | 61.9 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $693,423,460) | 787,589,307 | 99.7 | ||||||||||
| TOTAL PORTFOLIO | (Cost $693,423,460) | 787,589,307 | 99.7 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 2,257,843 | 0.3 | |||||||||||
| NET ASSETS | $ | 789,847,150 | 100.0 | % | |||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 47 |
Portfolio of investments
Lifecycle 2055 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.7% (a) | |||||||||||||
| FIXED INCOME — 10.0% | |||||||||||||
| 532,625 | TIAA-CREF Bond Plus Fund | $ | 5,688,437 | 4.0 | % | ||||||||
| 139,992 | TIAA-CREF Emerging Markets Debt Fund | 1,380,326 | 1.0 | ||||||||||
| 708,321 | TIAA-CREF High-Yield Fund | 7,069,044 | 5.0 | ||||||||||
| TOTAL FIXED INCOME | 14,137,807 | 10.0 | |||||||||||
| INTERNATIONAL EQUITY — 27.9% | |||||||||||||
| 665,686 | TIAA-CREF Emerging Markets Equity Fund | 7,029,644 | 5.0 | ||||||||||
| 1,313,479 | TIAA-CREF Enhanced International Equity Index Fund | 10,218,870 | 7.2 | ||||||||||
| 219,263 | TIAA-CREF Global Natural Resources Fund | 1,879,087 | 1.3 | ||||||||||
| 933,697 | TIAA-CREF International Equity Fund | 11,073,649 | 7.8 | ||||||||||
| 824,959 | TIAA-CREF International Opportunities Fund | 9,396,288 | 6.6 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 39,597,538 | 27.9 | |||||||||||
| SHORT-TERM FIXED INCOME — 0.0% | |||||||||||||
| 6,591 | * | TIAA-CREF Money Market Fund | 6,591 | 0.0 | |||||||||
| TOTAL SHORT-TERM FIXED INCOME | 6,591 | 0.0 | |||||||||||
| U.S. EQUITY — 61.8% | |||||||||||||
| 1,396,290 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 16,643,779 | 11.8 | ||||||||||
| 1,472,612 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 15,462,422 | 10.9 | ||||||||||
| 1,103,866 | TIAA-CREF Growth & Income Fund | 14,030,132 | 9.9 | ||||||||||
| 1,060,434 | TIAA-CREF Large-Cap Growth Fund | 17,062,381 | 12.0 | ||||||||||
| 853,182 | TIAA-CREF Large-Cap Value Fund | 15,835,067 | 11.2 | ||||||||||
| 38,894 | TIAA-CREF Mid-Cap Growth Fund | 875,505 | 0.6 | ||||||||||
| 29,897 | TIAA-CREF Mid-Cap Value Fund | 753,708 | 0.5 | ||||||||||
| 381,479 | TIAA-CREF Small-Cap Equity Fund | 6,923,839 | 4.9 | ||||||||||
| TOTAL U.S. EQUITY | 87,586,833 | 61.8 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $131,697,837) | 141,328,769 | 99.7 | ||||||||||
| TOTAL PORTFOLIO | (Cost $131,697,837) | 141,328,769 | 99.7 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 441,783 | 0.3 | |||||||||||
| NET ASSETS | $ | 141,770,552 | 100.0 | % | |||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| 48 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements |
Portfolio of investments
Lifecycle 2060 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 100.0% (a) | |||||||||||||
| FIXED INCOME — 9.9% | |||||||||||||
| 42,086 | TIAA-CREF Bond Plus Fund | $ | 449,483 | 3.9 | % | ||||||||
| 11,398 | TIAA-CREF Emerging Markets Debt Fund | 112,388 | 1.0 | ||||||||||
| 57,209 | TIAA-CREF High-Yield Fund | 570,950 | 5.0 | ||||||||||
| TOTAL FIXED INCOME | 1,132,821 | 9.9 | |||||||||||
| INTERNATIONAL EQUITY — 27.8% | |||||||||||||
| 53,493 | TIAA-CREF Emerging Markets Equity Fund | 564,891 | 4.9 | ||||||||||
| 104,926 | TIAA-CREF Enhanced International Equity Index Fund | 816,321 | 7.1 | ||||||||||
| 18,085 | TIAA-CREF Global Natural Resources Fund | 154,991 | 1.3 | ||||||||||
| 75,312 | TIAA-CREF International Equity Fund | 893,198 | 7.8 | ||||||||||
| 67,138 | TIAA-CREF International Opportunities Fund | 764,702 | 6.7 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 3,194,103 | 27.8 | |||||||||||
| SHORT-TERM FIXED INCOME — 0.0% | |||||||||||||
| 100 | * | TIAA-CREF Money Market Fund | 100 | 0.0 | |||||||||
| TOTAL SHORT-TERM FIXED INCOME | 100 | 0.0 | |||||||||||
| U.S. EQUITY — 62.3% | |||||||||||||
| 113,713 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 1,355,454 | 11.8 | ||||||||||
| 120,242 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 1,262,541 | 11.0 | ||||||||||
| 90,103 | TIAA-CREF Growth & Income Fund | 1,145,214 | 10.0 | ||||||||||
| 86,939 | TIAA-CREF Large-Cap Growth Fund | 1,398,843 | 12.2 | ||||||||||
| 69,547 | TIAA-CREF Large-Cap Value Fund | 1,290,790 | 11.3 | ||||||||||
| 3,178 | TIAA-CREF Mid-Cap Growth Fund | 71,547 | 0.6 | ||||||||||
| 2,430 | TIAA-CREF Mid-Cap Value Fund | 61,259 | 0.5 | ||||||||||
| 30,868 | TIAA-CREF Small-Cap Equity Fund | 560,263 | 4.9 | ||||||||||
| TOTAL U.S. EQUITY | 7,145,911 | 62.3 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $11,416,524) | 11,472,935 | 100.0 | ||||||||||
| TOTAL PORTFOLIO | (Cost $11,416,524) | 11,472,935 | 100.0 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 18 | 0.0 | |||||||||||
| NET ASSETS | $ | 11,472,953 | 100.0 | % | |||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 49 |
Statements of assets and liabilities
TIAA-CREF Lifecycle Funds ■ May 31, 2015
| Lifecycle | ||||||||||||||||||||||||
| Retirement | Lifecycle | Lifecycle | Lifecycle | Lifecycle | Lifecycle | |||||||||||||||||||
| Income Fund | 2010 Fund | 2015 Fund | 2020 Fund | 2025 Fund | 2030 Fund | |||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Affiliated investments, at value‡ | $ | 370,852,140 | $ | 1,112,418,978 | $ | 1,802,683,506 | $ | 2,833,076,576 | $ | 2,875,662,979 | $ | 2,794,563,937 | ||||||||||||
| Cash | 11,476 | 941,495 | 3,289,633 | 4,842,710 | 5,647,390 | 6,391,135 | ||||||||||||||||||
| Receivable from securities transactions | 72,837 | 1,046,264 | 2,913,527 | 3,364,306 | 2,519,683 | 1,467,996 | ||||||||||||||||||
| Receivable from Fund shares sold | 705,995 | 1,334,396 | 2,006,498 | 4,734,784 | 5,771,123 | 6,255,211 | ||||||||||||||||||
| Dividends and interest receivable | 379,509 | 1,091,722 | 1,679,336 | 2,327,441 | 2,123,397 | 1,817,904 | ||||||||||||||||||
| Due from affiliates | 7,544 | 18,608 | 29,257 | 45,036 | 45,753 | 44,463 | ||||||||||||||||||
| Other | 8,577 | 41,474 | 58,793 | 76,313 | 74,083 | 70,958 | ||||||||||||||||||
| Total assets | 372,038,078 | 1,116,892,937 | 1,812,660,550 | 2,848,467,166 | 2,891,844,408 | 2,810,611,604 | ||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||
| Management fees payable | 5,095 | 15,276 | 24,745 | 38,894 | 39,477 | 38,375 | ||||||||||||||||||
| Service agreement fees payable | 4,512 | 15,884 | 24,969 | 36,263 | 35,288 | 31,563 | ||||||||||||||||||
| Distribution fees payable | 20,442 | 15,603 | 27,257 | 47,686 | 48,291 | 48,468 | ||||||||||||||||||
| Due to affiliates | 1,960 | 6,669 | 10,628 | 15,800 | 15,845 | 15,143 | ||||||||||||||||||
| Payable for securities transactions | 154,087 | 2,757,014 | 6,910,028 | 10,464,058 | 10,696,686 | 10,192,997 | ||||||||||||||||||
| Payable for Fund shares redeemed | 125,839 | — | 356,126 | 2,376,140 | — | 1,009 | ||||||||||||||||||
| Payable for trustee compensation | 9,045 | 42,890 | 60,735 | 79,153 | 76,892 | 73,632 | ||||||||||||||||||
| Accrued expenses and other payables | 24,278 | 33,608 | 59,427 | 108,744 | 110,432 | 108,562 | ||||||||||||||||||
| Total liabilities | 345,258 | 2,886,944 | 7,473,915 | 13,166,738 | 11,022,911 | 10,509,749 | ||||||||||||||||||
| NET ASSETS | $ | 371,692,820 | $ | 1,114,005,993 | $ | 1,805,186,635 | $ | 2,835,300,428 | $ | 2,880,821,497 | $ | 2,800,101,855 | ||||||||||||
| NET ASSETS CONSIST OF: | ||||||||||||||||||||||||
| Paid-in-capital | $ | 335,470,227 | $ | 951,986,984 | $ | 1,621,363,812 | $ | 2,508,282,466 | $ | 2,500,654,893 | $ | 2,379,061,217 | ||||||||||||
| Undistributed net investment income (loss) | 654,657 | 4,945,929 | 7,549,411 | 10,416,265 | 9,554,014 | 8,229,292 | ||||||||||||||||||
| Accumulated net realized gain (loss) on total investments | 2,528,565 | 5,720,184 | 68,882,956 | 108,827,126 | 119,836,159 | 121,330,974 | ||||||||||||||||||
| Net unrealized appreciation (depreciation) on total investments | 33,039,371 | 151,352,896 | 107,390,456 | 207,774,571 | 250,776,431 | 291,480,372 | ||||||||||||||||||
| NET ASSETS | $ | 371,692,820 | $ | 1,114,005,993 | $ | 1,805,186,635 | $ | 2,835,300,428 | $ | 2,880,821,497 | $ | 2,800,101,855 | ||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 132,538,542 | $ | 527,313,337 | $ | 861,906,437 | $ | 1,403,171,699 | $ | 1,468,702,212 | $ | 1,495,151,872 | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 11,651,482 | 45,533,560 | 81,626,084 | 130,931,453 | 135,926,519 | 138,294,878 | ||||||||||||||||||
| Net asset value per share | $11.38 | $11.58 | $10.56 | $10.72 | $10.81 | $10.81 | ||||||||||||||||||
| PREMIER CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 27,088,100 | $ | 123,046,936 | $ | 215,361,966 | $ | 377,734,036 | $ | 382,955,766 | $ | 384,809,101 | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 2,382,890 | 10,649,433 | 20,472,933 | 35,333,259 | 35,577,122 | 35,740,329 | ||||||||||||||||||
| Net asset value per share | $11.37 | $11.55 | $10.52 | $10.69 | $10.76 | $10.77 | ||||||||||||||||||
| RETIREMENT CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 130,925,791 | $ | 463,645,720 | $ | 727,918,232 | $ | 1,054,394,693 | $ | 1,029,163,519 | $ | 920,140,882 | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 11,534,795 | 34,794,638 | 58,113,297 | 81,349,620 | 78,029,969 | 68,711,994 | ||||||||||||||||||
| Net asset value per share | $11.35 | $13.33 | $12.53 | $12.96 | $13.19 | $13.39 | ||||||||||||||||||
| RETAIL CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 81,140,387 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 7,142,266 | — | — | — | — | — | ||||||||||||||||||
| Net asset value per share | $11.36 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
| ‡ Affiliated investments, cost | $ | 337,812,769 | $ | 961,066,082 | $ | 1,695,293,050 | $ | 2,625,302,005 | $ | 2,624,886,548 | $ | 2,503,083,565 | ||||||||||||
| 50 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 51 |
| Statements of assets and liabilities | concluded |
TIAA-CREF Lifecycle Funds ■ May 31, 2015
| Lifecycle | Lifecycle | Lifecycle | Lifecycle | Lifecycle | Lifecycle | |||||||||||||||||||
| 2035 Fund | 2040 Fund | 2045 Fund | 2050 Fund | 2055 Fund | 2060 Fund | |||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Affiliated investments, at value‡ | $ | 2,812,831,745 | $ | 3,626,877,508 | $ | 1,347,907,312 | $ | 787,589,307 | $ | 141,328,769 | $ | 11,472,935 | ||||||||||||
| Cash | 6,150,674 | 7,271,186 | 3,536,267 | 2,377,382 | 555,987 | 17,440 | ||||||||||||||||||
| Receivable from securities transactions | 169,161 | — | — | — | — | 7,268 | ||||||||||||||||||
| Receivable from Fund shares sold | 6,817,564 | 8,407,674 | 5,595,455 | 3,511,025 | 733,393 | 6,803 | ||||||||||||||||||
| Dividends and interest receivable | 1,345,866 | 1,151,879 | 425,939 | 248,424 | 44,051 | 3,659 | ||||||||||||||||||
| Due from affiliates | 44,815 | 57,254 | 22,360 | 13,612 | 3,494 | 2,388 | ||||||||||||||||||
| Other | 71,329 | 97,866 | 22,202 | 12,285 | 1,464 | 45 | ||||||||||||||||||
| Total assets | 2,827,431,154 | 3,643,863,367 | 1,357,509,535 | 793,752,035 | 142,667,158 | 11,510,538 | ||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||
| Management fees payable | 38,628 | 49,851 | 18,502 | 10,800 | 1,934 | 158 | ||||||||||||||||||
| Service agreement fees payable | 29,896 | 38,324 | 13,532 | 8,075 | 1,900 | 109 | ||||||||||||||||||
| Distribution fees payable | 48,461 | 65,028 | 26,058 | 16,377 | 3,184 | 342 | ||||||||||||||||||
| Due to affiliates | 15,384 | 19,904 | 6,725 | 3,796 | 568 | 62 | ||||||||||||||||||
| Payable for securities transactions | 8,707,911 | 9,163,500 | 5,066,000 | 3,810,500 | 853,250 | 15,768 | ||||||||||||||||||
| Payable for Fund shares redeemed | — | 33,834 | — | 3,644 | 21,540 | — | ||||||||||||||||||
| Payable for trustee compensation | 74,082 | 101,481 | 23,885 | 13,255 | 1,608 | 59 | ||||||||||||||||||
| Accrued expenses and other payables | 108,640 | 134,354 | 62,689 | 38,438 | 12,622 | 21,087 | ||||||||||||||||||
| Total liabilities | 9,023,002 | 9,606,276 | 5,217,391 | 3,904,885 | 896,606 | 37,585 | ||||||||||||||||||
| NET ASSETS | $ | 2,818,408,152 | $ | 3,634,257,091 | $ | 1,352,292,144 | $ | 789,847,150 | $ | 141,770,552 | $ | 11,472,953 | ||||||||||||
| NET ASSETS CONSIST OF: | ||||||||||||||||||||||||
| Paid-in-capital | $ | 2,345,369,282 | $ | 2,959,648,505 | $ | 1,134,494,969 | $ | 669,914,685 | $ | 128,273,378 | $ | 10,964,899 | ||||||||||||
| Undistributed net investment income (loss) | 6,133,303 | 5,312,444 | 2,131,333 | 1,262,735 | 188,616 | 16,548 | ||||||||||||||||||
| Accumulated net realized gain (loss) on total investments | 132,586,182 | 181,464,093 | 43,444,750 | 24,503,883 | 3,677,626 | 435,095 | ||||||||||||||||||
| Net unrealized appreciation (depreciation) on total investments | 334,319,385 | 487,832,049 | 172,221,092 | 94,165,847 | 9,630,932 | 56,411 | ||||||||||||||||||
| NET ASSETS | $ | 2,818,408,152 | $ | 3,634,257,091 | $ | 1,352,292,144 | $ | 789,847,150 | $ | 141,770,552 | $ | 11,472,953 | ||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 1,562,158,157 | $ | 2,002,920,806 | $ | 749,747,138 | $ | 423,230,253 | $ | 59,786,694 | $ | 5,621,570 | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 142,992,578 | 181,310,403 | 65,527,493 | 37,052,517 | 4,682,261 | 536,377 | ||||||||||||||||||
| Net asset value per share | $10.92 | $11.05 | $11.44 | $11.42 | $12.77 | $10.48 | ||||||||||||||||||
| PREMIER CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 384,422,771 | $ | 514,930,041 | $ | 207,327,657 | $ | 130,717,776 | $ | 26,406,886 | $ | 2,686,155 | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 35,276,401 | 46,739,783 | 18,188,444 | 11,481,604 | 2,073,744 | 256,454 | ||||||||||||||||||
| Net asset value per share | $10.90 | $11.02 | $11.40 | $11.38 | $12.73 | $10.47 | ||||||||||||||||||
| RETIREMENT CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 871,827,224 | $ | 1,116,406,244 | $ | 395,217,349 | $ | 235,899,121 | $ | 55,576,972 | $ | 3,165,228 | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 63,489,534 | 79,174,526 | 34,758,197 | 20,782,708 | 4,365,205 | 302,315 | ||||||||||||||||||
| Net asset value per share | $13.73 | $14.10 | $11.37 | $11.35 | $12.73 | $10.47 | ||||||||||||||||||
| ‡ Affiliated investments, cost | $ | 2,478,512,360 | $ | 3,139,045,459 | $ | 1,175,686,220 | $ | 693,423,460 | $ | 131,697,837 | $ | 11,416,524 | ||||||||||||
| 52 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 53 |
TIAA-CREF Lifecycle Funds ■ For the period or year ended May 31, 2015
| Lifecycle | ||||||||||||||||||||||||
| Retirement | Lifecycle | Lifecycle | Lifecycle | Lifecycle | Lifecycle | |||||||||||||||||||
| Income Fund | 2010 Fund | 2015 Fund | 2020 Fund | 2025 Fund | 2030 Fund | |||||||||||||||||||
| INVESTMENT INCOME | ||||||||||||||||||||||||
| Dividends from affiliated investments | $ | 6,179,883 | $ | 19,923,565 | $ | 31,769,224 | $ | 46,761,766 | $ | 46,609,457 | $ | 44,273,723 | ||||||||||||
| Total income | 6,179,883 | 19,923,565 | 31,769,224 | 46,761,766 | 46,609,457 | 44,273,723 | ||||||||||||||||||
| EXPENSES | ||||||||||||||||||||||||
| Management fees | 334,422 | 1,076,689 | 1,720,629 | 2,588,789 | 2,600,910 | 2,504,884 | ||||||||||||||||||
| Shareholder servicing — Institutional Class | 490 | 744 | 1,025 | 1,480 | 1,505 | 1,467 | ||||||||||||||||||
| Shareholder servicing — Premier Class | 218 | 238 | 312 | 439 | 428 | 498 | ||||||||||||||||||
| Shareholder servicing — Retirement Class | 304,282 | 1,145,685 | 1,784,378 | 2,498,968 | 2,412,484 | 2,151,917 | ||||||||||||||||||
| Shareholder servicing — Retail Class | 21,953 | — | — | — | — | — | ||||||||||||||||||
| Distribution fees — Premier Class | 38,652 | 186,683 | 319,016 | 547,346 | 534,502 | 540,563 | ||||||||||||||||||
| Distribution fees — Retirement Class | 60,761 | 228,967 | 356,655 | 499,519 | 482,220 | 430,117 | ||||||||||||||||||
| Distribution fees — Retail Class | 187,078 | — | — | — | — | — | ||||||||||||||||||
| Registration fees | 62,845 | 77,814 | 84,738 | 92,472 | 97,210 | 92,336 | ||||||||||||||||||
| Professional fees | 24,440 | 27,683 | 29,980 | 33,738 | 33,837 | 33,411 | ||||||||||||||||||
| Shareholder reports | 24,089 | 55,467 | 84,156 | 122,577 | 125,250 | 122,300 | ||||||||||||||||||
| Custody and accounting fees | 15,225 | 12,238 | 12,236 | 12,236 | 12,237 | 12,115 | ||||||||||||||||||
| Administrative service fees | 10,516 | 33,840 | 53,895 | 80,893 | 81,242 | 77,773 | ||||||||||||||||||
| Trustee fees and expenses | 2,834 | 8,581 | 13,522 | 20,659 | 20,665 | 19,821 | ||||||||||||||||||
| Other expenses | 17,837 | 20,447 | 41,512 | 77,115 | 81,192 | 81,043 | ||||||||||||||||||
| Total expenses | 1,105,642 | 2,875,076 | 4,502,054 | 6,576,231 | 6,483,682 | 6,068,245 | ||||||||||||||||||
| Less: Expenses reimbursed by the investment adviser | (180,256 | ) | (237,227 | ) | (321,952 | ) | (442,875 | ) | (454,897 | ) | (441,966 | ) | ||||||||||||
| Fee waiver by investment adviser and TPIS | (395,183 | ) | (1,305,657 | ) | (2,077,284 | ) | (3,088,308 | ) | (3,083,130 | ) | (2,935,001 | ) | ||||||||||||
| Net expenses | 530,203 | 1,332,192 | 2,102,818 | 3,045,048 | 2,945,655 | 2,691,278 | ||||||||||||||||||
| Net investment income (loss) | 5,649,680 | 18,591,373 | 29,666,406 | 43,716,718 | 43,663,802 | 41,582,445 | ||||||||||||||||||
| NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS | ||||||||||||||||||||||||
| Realized gain (loss) from sale of affiliated investments | 442,205 | 4,760,637 | 53,848,483 | 69,522,430 | 68,981,659 | 63,994,416 | ||||||||||||||||||
| Realized gain distributions from affiliated investments | 9,379,742 | 33,618,626 | 59,277,194 | 101,483,791 | 114,557,563 | 121,799,090 | ||||||||||||||||||
| Net realized gain (loss) from investments | 9,821,947 | 38,379,263 | 113,125,677 | 171,006,221 | 183,539,222 | 185,793,506 | ||||||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | 83,308 | (2,268,628 | ) | (48,012,542 | ) | (55,633,851 | ) | (51,870,508 | ) | (44,404,916 | ) | |||||||||||||
| Net realized and unrealized gain (loss) from investments | 9,905,255 | 36,110,635 | 65,113,135 | 115,372,370 | 131,668,714 | 141,388,590 | ||||||||||||||||||
| Net increase (decrease) in net assets from operations | $ | 15,554,935 | $ | 54,702,008 | $ | 94,779,541 | $ | 159,089,088 | $ | 175,332,516 | $ | 182,971,035 | ||||||||||||
| 54 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 55 |
| Statements of operations | concluded |
TIAA-CREF Lifecycle Funds ■ For the period or year ended May 31, 2015
| Lifecycle | Lifecycle | Lifecycle | Lifecycle | Lifecycle | Lifecycle | |||||||||||||||||||
| 2035 Fund | 2040 Fund | 2045 Fund | 2050 Fund | 2055 Fund | 2060 Fund | * | ||||||||||||||||||
| INVESTMENT INCOME | ||||||||||||||||||||||||
| Dividends from affiliated investments | $ | 42,517,506 | $ | 52,736,110 | $ | 18,180,147 | $ | 10,459,585 | $ | 1,672,349 | $ | 146,651 | ||||||||||||
| Total income | 42,517,506 | 52,736,110 | 18,180,147 | 10,459,585 | 1,672,349 | 146,651 | ||||||||||||||||||
| EXPENSES | ||||||||||||||||||||||||
| Management fees | 2,534,383 | 3,288,735 | 1,132,011 | 652,427 | 104,886 | 7,118 | ||||||||||||||||||
| Shareholder servicing — Institutional Class | 1,519 | 1,816 | 862 | 660 | 432 | 1,374 | ||||||||||||||||||
| Shareholder servicing — Premier Class | 427 | 604 | 268 | 281 | 208 | 1,377 | ||||||||||||||||||
| Shareholder servicing — Retirement Class | 2,068,040 | 2,693,643 | 887,832 | 521,414 | 111,008 | 6,099 | ||||||||||||||||||
| Distribution fees — Premier Class | 536,222 | 731,692 | 265,519 | 164,407 | 27,994 | 2,610 | ||||||||||||||||||
| Distribution fees — Retirement Class | 413,367 | 538,463 | 177,416 | 104,164 | 22,135 | 937 | ||||||||||||||||||
| Registration fees | 95,033 | 105,436 | 80,367 | 67,853 | 43,260 | 52,000 | ||||||||||||||||||
| Professional fees | 33,661 | 36,823 | 28,135 | 26,032 | 23,646 | 28,290 | ||||||||||||||||||
| Shareholder reports | 127,600 | 154,101 | 65,082 | 41,067 | 18,518 | 13,831 | ||||||||||||||||||
| Custody and accounting fees | 12,115 | 12,183 | 12,223 | 12,223 | 12,073 | 8,278 | ||||||||||||||||||
| Administrative service fees | 78,856 | 101,997 | 35,011 | 20,087 | 3,150 | 235 | ||||||||||||||||||
| Trustee fees and expenses | 20,127 | 26,018 | 9,616 | 5,553 | 1,004 | 75 | ||||||||||||||||||
| Other expenses | 79,009 | 99,013 | 52,527 | 32,858 | 12,697 | 4,910 | ||||||||||||||||||
| Total expenses | 6,000,359 | 7,790,524 | 2,746,869 | 1,649,026 | 381,011 | 127,134 | ||||||||||||||||||
| Less: Expenses reimbursed by the investment adviser | (449,348 | ) | (539,045 | ) | (284,645 | ) | (207,131 | ) | (115,163 | ) | (111,714 | ) | ||||||||||||
| Fee waiver by investment adviser and TPIS | (2,947,750 | ) | (3,827,199 | ) | (1,309,427 | ) | (756,590 | ) | (127,021 | ) | (8,055 | ) | ||||||||||||
| Net expenses | 2,603,261 | 3,424,280 | 1,152,797 | 685,305 | 138,827 | 7,365 | ||||||||||||||||||
| Net investment income (loss) | 39,914,245 | 49,311,830 | 17,027,350 | 9,774,280 | 1,533,522 | 139,286 | ||||||||||||||||||
| NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS | ||||||||||||||||||||||||
| Realized gain (loss) from sale of affiliated investments | 68,943,395 | 88,638,717 | (2,470,843 | ) | (1,526,848 | ) | (343,916 | ) | (15,286 | ) | ||||||||||||||
| Realized gain distributions from affiliated investments | 134,253,383 | 186,617,762 | 64,410,467 | 37,034,088 | 5,919,427 | 585,827 | ||||||||||||||||||
| Realized gain (loss) from sale of unaffiliated investments | — | — | — | — | — | 632 | ||||||||||||||||||
| Net realized gain (loss) from investments | 203,196,778 | 275,256,479 | 61,939,624 | 35,507,240 | 5,575,511 | 571,173 | ||||||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | (47,039,061 | ) | (57,526,754 | ) | 14,745,310 | 8,874,709 | 1,806,087 | 56,411 | ||||||||||||||||
| Net realized and unrealized gain (loss) from investments | 156,157,717 | 217,729,725 | 76,684,934 | 44,381,949 | 7,381,598 | 627,584 | ||||||||||||||||||
| Net increase (decrease) in net assets from operations | $ | 196,071,962 | $ | 267,041,555 | $ | 93,712,284 | $ | 54,156,229 | $ | 8,915,120 | $ | 766,870 | ||||||||||||
| * For the period September 26, 2014 to May 31, 2015. | ||||||||||||||||||||||||
| 56 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 57 |
Statements of changes in net assets
TIAA-CREF Lifecycle Funds ■ For the period or year ended
| Lifecycle Retirement Income Fund | Lifecycle 2010 Fund | Lifecycle 2015 Fund | ||||||||||||||||||||||||
| May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | |||||||||||||||||||||
| OPERATIONS | ||||||||||||||||||||||||||
| Net investment income (loss) | $ | 5,649,680 | $ | 4,367,245 | $ | 18,591,373 | $ | 16,821,242 | $ | 29,666,406 | $ | 25,537,938 | ||||||||||||||
| Net realized gain (loss) from investments | 9,821,947 | 5,747,089 | 38,379,263 | 34,129,016 | 113,125,677 | 97,784,713 | ||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | 83,308 | 11,372,002 | (2,268,628 | ) | 42,136,471 | (48,012,542 | ) | 34,810,066 | ||||||||||||||||||
| Net increase (decrease) in net assets from operations | 15,554,935 | 21,486,336 | 54,702,008 | 93,086,729 | 94,779,541 | 158,132,717 | ||||||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||
| From net investment income: | Institutional Class | (2,956,534 | ) | (2,253,935 | ) | (14,527,313 | ) | (14,201,758 | ) | (23,808,739 | ) | (20,738,963 | ) | |||||||||||||
| Premier Class | (661,122 | ) | (483,438 | ) | (3,296,647 | ) | (3,827,733 | ) | (5,795,677 | ) | (5,943,811 | ) | ||||||||||||||
| Retirement Class | (2,862,013 | ) | (2,542,530 | ) | (10,205,994 | ) | (12,041,135 | ) | (15,900,900 | ) | (16,299,640 | ) | ||||||||||||||
| Retail Class | (1,813,022 | ) | (1,449,080 | ) | — | — | — | — | ||||||||||||||||||
| From realized gains: | Institutional Class | (1,295,044 | ) | (780,037 | ) | (11,436,377 | ) | (4,051,351 | ) | (37,223,043 | ) | (25,595,944 | ) | |||||||||||||
| Premier Class | (305,716 | ) | (170,243 | ) | (2,744,182 | ) | (1,146,215 | ) | (9,558,343 | ) | (7,707,738 | ) | ||||||||||||||
| Retirement Class | (1,359,788 | ) | (927,336 | ) | (8,934,542 | ) | (3,751,109 | ) | (27,608,066 | ) | (22,126,018 | ) | ||||||||||||||
| Retail Class | (877,137 | ) | (539,124 | ) | — | — | — | — | ||||||||||||||||||
| Total distributions | (12,130,376 | ) | (9,145,723 | ) | (51,145,055 | ) | (39,019,301 | ) | (119,894,768 | ) | (98,412,114 | ) | ||||||||||||||
| SHAREHOLDER TRANSACTIONS | ||||||||||||||||||||||||||
| Subscriptions: | Institutional Class | 46,802,468 | 44,081,188 | 99,399,537 | 137,969,805 | 159,420,442 | 189,394,683 | |||||||||||||||||||
| Premier Class | 12,535,930 | 17,203,474 | 30,176,295 | 60,319,489 | 47,815,691 | 88,954,529 | ||||||||||||||||||||
| Retirement Class | 34,406,461 | 29,855,663 | 49,609,071 | 53,677,492 | 75,865,954 | 91,117,375 | ||||||||||||||||||||
| Retail Class | 23,914,936 | 23,426,558 | — | — | — | — | ||||||||||||||||||||
| Reinvestments of distributions: | Institutional Class | 4,251,578 | 3,033,972 | 25,963,690 | 18,253,109 | 61,031,782 | 46,334,907 | |||||||||||||||||||
| Premier Class | 966,838 | 653,681 | 6,040,829 | 4,973,948 | 15,354,020 | 13,651,549 | ||||||||||||||||||||
| Retirement Class | 4,221,801 | 3,469,866 | 19,140,536 | 15,792,244 | 43,508,966 | 38,425,658 | ||||||||||||||||||||
| Retail Class | 2,554,405 | 1,915,290 | — | — | — | — | ||||||||||||||||||||
| Redemptions: | Institutional Class | (17,635,236 | ) | (18,672,013 | ) | (80,901,949 | ) | (48,513,851 | ) | (93,984,438 | ) | (44,366,145 | ) | |||||||||||||
| Premier Class | (11,003,609 | ) | (8,019,309 | ) | (50,760,509 | ) | (61,079,202 | ) | (71,489,599 | ) | (80,556,771 | ) | ||||||||||||||
| Retirement Class | (22,910,520 | ) | (23,562,432 | ) | (71,010,925 | ) | (81,059,285 | ) | (95,883,562 | ) | (105,910,118 | ) | ||||||||||||||
| Retail Class | (12,388,441 | ) | (11,844,495 | ) | — | — | — | — | ||||||||||||||||||
| Net increase (decrease) from shareholder transactions | 65,716,611 | 61,541,443 | 27,656,575 | 100,333,749 | 141,639,256 | 237,045,667 | ||||||||||||||||||||
| Net increase (decrease) in net assets | 69,141,170 | 73,882,056 | 31,213,528 | 154,401,177 | 116,524,029 | 296,766,270 | ||||||||||||||||||||
| NET ASSETS | ||||||||||||||||||||||||||
| Beginning of period | 302,551,650 | 228,669,594 | 1,082,792,465 | 928,391,288 | 1,688,662,606 | 1,391,896,336 | ||||||||||||||||||||
| End of period | $ | 371,692,820 | $ | 302,551,650 | $ | 1,114,005,993 | $ | 1,082,792,465 | $ | 1,805,186,635 | $ | 1,688,662,606 | ||||||||||||||
| Undistributed net investment income (loss) included in net assets | $ | 654,657 | $ | 554,219 | $ | 4,945,929 | $ | 4,848,724 | $ | 7,549,411 | $ | 7,003,628 | ||||||||||||||
| CHANGE IN FUND SHARES | ||||||||||||||||||||||||||
| Shares sold: | Institutional Class | 4,161,365 | 4,015,083 | 8,603,023 | 12,220,886 | 14,913,972 | 17,773,215 | |||||||||||||||||||
| Premier Class | 1,113,267 | 1,569,836 | 2,612,404 | 5,350,847 | 4,477,382 | 8,391,288 | ||||||||||||||||||||
| Retirement Class | 3,061,383 | 2,727,827 | 3,739,917 | 4,177,370 | 6,039,996 | 7,370,104 | ||||||||||||||||||||
| Retail Class | 2,121,297 | 2,138,982 | — | — | — | — | ||||||||||||||||||||
| Shares reinvested: | Institutional Class | 382,978 | 278,368 | 2,322,334 | 1,635,583 | 6,007,065 | 4,463,864 | |||||||||||||||||||
| Premier Class | 87,130 | 59,943 | 541,293 | 446,494 | 1,515,698 | 1,318,991 | ||||||||||||||||||||
| Retirement Class | 381,162 | 319,070 | 1,487,221 | 1,237,637 | 3,604,720 | 3,154,816 | ||||||||||||||||||||
| Retail Class | 230,463 | 175,877 | — | — | — | — | ||||||||||||||||||||
| Shares redeemed: | Institutional Class | (1,564,925 | ) | (1,707,929 | ) | (6,971,073 | ) | (4,296,195 | ) | (8,751,651 | ) | (4,189,282 | ) | |||||||||||||
| Premier Class | (985,392 | ) | (731,123 | ) | (4,413,557 | ) | (5,391,211 | ) | (6,705,126 | ) | (7,510,693 | ) | ||||||||||||||
| Retirement Class | (2,037,112 | ) | (2,176,204 | ) | (5,352,656 | ) | (6,325,403 | ) | (7,609,607 | ) | (8,522,421 | ) | ||||||||||||||
| Retail Class | (1,099,639 | ) | (1,091,577 | ) | — | — | — | — | ||||||||||||||||||
| Net increase (decrease) from shareholder transactions | 5,851,977 | 5,578,153 | 2,568,906 | 9,056,008 | 13,492,449 | 22,249,882 | ||||||||||||||||||||
| 58 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 59 |
| Statements of changes in net assets | continued |
TIAA-CREF Lifecycle Funds ■ For the period or year ended
| Lifecycle 2020 Fund | Lifecycle 2025 Fund | Lifecycle 2030 Fund | ||||||||||||||||||||||||
| May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | |||||||||||||||||||||
| OPERATIONS | ||||||||||||||||||||||||||
| Net investment income (loss) | $ | 43,716,718 | $ | 34,443,861 | $ | 43,663,802 | $ | 33,639,111 | $ | 41,582,445 | $ | 31,510,528 | ||||||||||||||
| Net realized gain (loss) from investments | 171,006,221 | 132,392,211 | 183,539,222 | 134,882,884 | 185,793,506 | 135,232,828 | ||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | (55,633,851 | ) | 75,837,424 | (51,870,508 | ) | 94,897,911 | (44,404,916 | ) | 107,684,349 | |||||||||||||||||
| Net increase (decrease) in net assets from operations | 159,089,088 | 242,673,496 | 175,332,516 | 263,419,906 | 182,971,035 | 274,427,705 | ||||||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||
| From net investment income: | Institutional Class | (36,711,697 | ) | (30,792,295 | ) | (39,784,137 | ) | (33,316,205 | ) | (40,184,610 | ) | (34,917,244 | ) | |||||||||||||
| Premier Class | (10,453,318 | ) | (9,582,854 | ) | (10,161,110 | ) | (9,778,218 | ) | (10,683,801 | ) | (10,605,615 | ) | ||||||||||||||
| Retirement Class | (21,919,913 | ) | (21,720,394 | ) | (21,390,664 | ) | (21,855,499 | ) | (19,154,190 | ) | (20,052,338 | ) | ||||||||||||||
| From realized gains: | Institutional Class | (52,216,696 | ) | (32,856,276 | ) | (55,319,973 | ) | (33,642,557 | ) | (56,364,296 | ) | (33,785,264 | ) | |||||||||||||
| Premier Class | (15,615,516 | ) | (10,671,814 | ) | (14,836,168 | ) | (10,288,612 | ) | (15,711,973 | ) | (10,665,642 | ) | ||||||||||||||
| Retirement Class | (34,586,070 | ) | (25,394,652 | ) | (32,951,155 | ) | (24,045,639 | ) | (29,748,923 | ) | (21,114,621 | ) | ||||||||||||||
| Total distributions | (171,503,210 | ) | (131,018,285 | ) | (174,443,207 | ) | (132,926,730 | ) | (171,847,793 | ) | (131,140,724 | ) | ||||||||||||||
| SHAREHOLDER TRANSACTIONS | ||||||||||||||||||||||||||
| Subscriptions: | Institutional Class | 314,679,986 | 317,371,607 | 328,429,903 | 308,747,261 | 335,449,249 | 312,355,939 | |||||||||||||||||||
| Premier Class | 83,988,576 | 165,077,341 | 90,169,325 | 145,001,999 | 93,779,924 | 148,160,481 | ||||||||||||||||||||
| Retirement Class | 136,109,550 | 148,111,470 | 138,041,429 | 146,234,257 | 121,627,648 | 127,399,100 | ||||||||||||||||||||
| Reinvestments of distributions: | Institutional Class | 88,928,393 | 63,648,571 | 95,104,110 | 66,958,762 | 96,548,906 | 68,702,508 | |||||||||||||||||||
| Premier Class | 26,068,834 | 20,254,668 | 24,997,278 | 20,066,830 | 26,395,774 | 21,271,257 | ||||||||||||||||||||
| Retirement Class | 56,505,983 | 47,115,046 | 54,341,819 | 45,901,138 | 48,903,113 | 41,166,959 | ||||||||||||||||||||
| Redemptions: | Institutional Class | (94,198,386 | ) | (47,284,151 | ) | (90,837,690 | ) | (37,516,901 | ) | (78,468,456 | ) | (39,099,325 | ) | |||||||||||||
| Premier Class | (95,067,896 | ) | (99,498,511 | ) | (88,145,287 | ) | (90,480,977 | ) | (92,163,339 | ) | (100,852,623 | ) | ||||||||||||||
| Retirement Class | (104,891,663 | ) | (115,406,437 | ) | (98,956,980 | ) | (99,681,351 | ) | (86,271,130 | ) | (112,226,896 | ) | ||||||||||||||
| Net increase (decrease) from shareholder transactions | 412,123,377 | 499,389,604 | 453,143,907 | 505,231,018 | 465,801,689 | 466,877,400 | ||||||||||||||||||||
| Net increase (decrease) in net assets | 399,709,255 | 611,044,815 | 454,033,216 | 635,724,194 | 476,924,931 | 610,164,381 | ||||||||||||||||||||
| NET ASSETS | ||||||||||||||||||||||||||
| Beginning of period | 2,435,591,173 | 1,824,546,358 | 2,426,788,281 | 1,791,064,087 | 2,323,176,924 | 1,713,012,543 | ||||||||||||||||||||
| End of period | $ | 2,835,300,428 | $ | 2,435,591,173 | $ | 2,880,821,497 | $ | 2,426,788,281 | $ | 2,800,101,855 | $ | 2,323,176,924 | ||||||||||||||
| Undistributed net investment income (loss) included in net assets | $ | 10,416,265 | $ | 8,836,287 | $ | 9,554,014 | $ | 7,903,520 | $ | 8,229,292 | $ | 6,490,200 | ||||||||||||||
| CHANGE IN FUND SHARES | ||||||||||||||||||||||||||
| Shares sold: | Institutional Class | 29,335,124 | 29,791,859 | 30,360,953 | 28,951,652 | 31,189,162 | 29,450,012 | |||||||||||||||||||
| Premier Class | 7,795,200 | 15,541,584 | 8,366,111 | 13,661,797 | 8,715,573 | 14,069,369 | ||||||||||||||||||||
| Retirement Class | 10,528,289 | 11,751,616 | 10,544,186 | 11,494,501 | 9,166,088 | 9,942,124 | ||||||||||||||||||||
| Shares reinvested: | Institutional Class | 8,650,622 | 6,102,452 | 9,215,515 | 6,401,411 | 9,382,790 | 6,593,331 | |||||||||||||||||||
| Premier Class | 2,540,822 | 1,945,693 | 2,429,279 | 1,923,953 | 2,572,687 | 2,047,282 | ||||||||||||||||||||
| Retirement Class | 4,538,633 | 3,778,271 | 4,306,008 | 3,640,059 | 3,832,532 | 3,231,316 | ||||||||||||||||||||
| Shares redeemed: | Institutional Class | (8,630,389 | ) | (4,457,976 | ) | (8,285,545 | ) | (3,529,539 | ) | (7,146,855 | ) | (3,699,683 | ) | |||||||||||||
| Premier Class | (8,948,528 | ) | (9,256,517 | ) | (8,191,642 | ) | (8,428,762 | ) | (8,674,147 | ) | (9,451,192 | ) | ||||||||||||||
| Retirement Class | (8,092,188 | ) | (9,138,934 | ) | (7,535,331 | ) | (7,822,962 | ) | (6,509,772 | ) | (8,778,804 | ) | ||||||||||||||
| Net increase (decrease) from shareholder transactions | 37,717,585 | 46,058,048 | 41,209,534 | 46,292,110 | 42,528,058 | 43,403,755 | ||||||||||||||||||||
| 60 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 61 |
| Statements of changes in net assets | continued |
TIAA-CREF Lifecycle Funds ■ For the period or year ended
| Lifecycle 2035 Fund | Lifecycle 2040 Fund | Lifecycle 2045 Fund | ||||||||||||||||||||||||
| May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | |||||||||||||||||||||
| OPERATIONS | ||||||||||||||||||||||||||
| Net investment income (loss) | $ | 39,914,245 | $ | 30,037,941 | $ | 49,311,830 | $ | 37,934,239 | $ | 17,027,350 | $ | 10,867,343 | ||||||||||||||
| Net realized gain (loss) from investments | 203,196,778 | 146,599,385 | 275,256,479 | 203,732,081 | 61,939,624 | 40,578,994 | ||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | (47,039,061 | ) | 122,318,552 | (57,526,754 | ) | 171,985,147 | 14,745,310 | 66,044,738 | ||||||||||||||||||
| Net increase (decrease) in net assets from operations | 196,071,962 | 298,955,878 | 267,041,555 | 413,651,467 | 93,712,284 | 117,491,075 | ||||||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||
| From net investment income: | Institutional Class | (42,321,736 | ) | (37,804,974 | ) | (54,395,878 | ) | (50,014,881 | ) | (17,479,047 | ) | (13,341,976 | ) | |||||||||||||
| Premier Class | (10,444,217 | ) | (11,057,343 | ) | (14,699,004 | ) | (16,125,733 | ) | (4,905,615 | ) | (4,345,423 | ) | ||||||||||||||
| Retirement Class | (17,869,977 | ) | (19,915,660 | ) | (22,780,862 | ) | (27,539,329 | ) | (8,859,324 | ) | (8,940,290 | ) | ||||||||||||||
| From realized gains: | Institutional Class | (63,778,999 | ) | (37,471,039 | ) | (84,134,666 | ) | (51,147,227 | ) | (12,964,480 | ) | (3,594,056 | ) | |||||||||||||
| Premier Class | (16,515,022 | ) | (11,374,069 | ) | (23,839,842 | ) | (17,099,882 | ) | (3,812,663 | ) | (1,208,211 | ) | ||||||||||||||
| Retirement Class | (29,942,460 | ) | (21,458,228 | ) | (39,348,432 | ) | (30,634,624 | ) | (7,181,281 | ) | (2,575,719 | ) | ||||||||||||||
| Total distributions | (180,872,411 | ) | (139,081,313 | ) | (239,198,684 | ) | (192,561,676 | ) | (55,202,410 | ) | (34,005,675 | ) | ||||||||||||||
| SHAREHOLDER TRANSACTIONS | ||||||||||||||||||||||||||
| Subscriptions: | Institutional Class | 336,056,103 | 331,745,158 | 444,394,058 | 408,380,045 | 235,724,680 | 177,566,071 | |||||||||||||||||||
| Premier Class | 91,498,919 | 147,470,633 | 121,259,955 | 194,427,906 | 66,046,671 | 80,727,673 | ||||||||||||||||||||
| Retirement Class | 111,142,732 | 119,196,821 | 117,781,547 | 123,648,281 | 84,073,561 | 82,514,531 | ||||||||||||||||||||
| Reinvestments of distributions: | Institutional Class | 106,100,735 | 75,276,013 | 138,530,544 | 101,162,108 | 30,443,527 | 16,936,032 | |||||||||||||||||||
| Premier Class | 26,959,239 | 22,431,412 | 38,538,846 | 33,225,615 | 8,718,278 | 5,553,634 | ||||||||||||||||||||
| Retirement Class | 47,812,437 | 41,373,888 | 62,129,294 | 58,173,953 | 16,040,605 | 11,516,009 | ||||||||||||||||||||
| Redemptions: | Institutional Class | (93,664,260 | ) | (42,692,699 | ) | (113,978,260 | ) | (55,214,825 | ) | (27,629,247 | ) | (12,031,104 | ) | |||||||||||||
| Premier Class | (90,367,748 | ) | (102,227,886 | ) | (141,125,115 | ) | (143,079,556 | ) | (31,384,577 | ) | (25,319,434 | ) | ||||||||||||||
| Retirement Class | (99,586,392 | ) | (119,014,145 | ) | (155,372,139 | ) | (180,648,478 | ) | (42,205,921 | ) | (46,854,226 | ) | ||||||||||||||
| Net increase (decrease) from shareholder transactions | 435,951,765 | 473,559,195 | 512,158,730 | 540,075,049 | 339,827,577 | 290,609,186 | ||||||||||||||||||||
| Net increase (decrease) in net assets | 451,151,316 | 633,433,760 | 540,001,601 | 761,164,840 | 378,337,451 | 374,094,586 | ||||||||||||||||||||
| NET ASSETS | ||||||||||||||||||||||||||
| Beginning of period | 2,367,256,836 | 1,733,823,076 | 3,094,255,490 | 2,333,090,650 | 973,954,693 | 599,860,107 | ||||||||||||||||||||
| End of period | $ | 2,818,408,152 | $ | 2,367,256,836 | $ | 3,634,257,091 | $ | 3,094,255,490 | $ | 1,352,292,144 | $ | 973,954,693 | ||||||||||||||
| Undistributed net investment income (loss) included in net assets | $ | 6,133,303 | $ | 4,811,372 | $ | 5,312,444 | $ | 4,524,990 | $ | 2,131,333 | $ | 1,385,112 | ||||||||||||||
| CHANGE IN FUND SHARES | ||||||||||||||||||||||||||
| Shares sold: | Institutional Class | 30,884,529 | 31,011,374 | 40,571,633 | 37,754,300 | 21,123,124 | 16,706,722 | |||||||||||||||||||
| Premier Class | 8,393,018 | 13,886,874 | 10,994,779 | 18,171,027 | 5,919,677 | 7,696,826 | ||||||||||||||||||||
| Retirement Class | 8,182,400 | 9,129,820 | 8,467,797 | 9,254,217 | 7,561,953 | 7,830,161 | ||||||||||||||||||||
| Shares reinvested: | Institutional Class | 10,231,508 | 7,155,515 | 13,243,838 | 9,525,622 | 2,811,036 | 1,588,746 | |||||||||||||||||||
| Premier Class | 2,604,757 | 2,136,325 | 3,691,460 | 3,134,492 | 807,248 | 522,449 | ||||||||||||||||||||
| Retirement Class | 3,663,788 | 3,175,279 | 4,650,396 | 4,360,866 | 1,487,997 | 1,085,392 | ||||||||||||||||||||
| Shares redeemed: | Institutional Class | (8,421,124 | ) | (3,996,935 | ) | (10,165,824 | ) | (5,128,056 | ) | (2,435,449 | ) | (1,134,114 | ) | |||||||||||||
| Premier Class | (8,367,102 | ) | (9,491,912 | ) | (13,006,072 | ) | (13,153,073 | ) | (2,854,961 | ) | (2,416,795 | ) | ||||||||||||||
| Retirement Class | (7,334,702 | ) | (9,121,443 | ) | (11,164,171 | ) | (13,570,245 | ) | (3,800,139 | ) | (4,506,036 | ) | ||||||||||||||
| Net increase (decrease) from shareholder transactions | 39,837,072 | 43,884,897 | 47,283,836 | 50,349,150 | 30,620,486 | 27,373,351 | ||||||||||||||||||||
| 62 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 63 |
| Statements of changes in net assets | concluded |
TIAA-CREF Lifecycle Funds ■ For the period or year ended
| Lifecycle 2050 Fund | Lifecycle 2055 Fund | Lifecycle 2060 Fund* | ||||||||||||||||||||
| May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | May 31, 2015 | ||||||||||||||||||
| OPERATIONS | ||||||||||||||||||||||
| Net investment income (loss) | $ | 9,774,280 | $ | 6,034,450 | $ | 1,533,522 | $ | 754,972 | $ | 139,286 | ||||||||||||
| Net realized gain (loss) from investments | 35,507,240 | 22,617,448 | 5,575,511 | 2,766,722 | 571,173 | |||||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | 8,874,709 | 36,541,663 | 1,806,087 | 4,494,771 | 56,411 | |||||||||||||||||
| Net increase (decrease) in net assets from operations | 54,156,229 | 65,193,561 | 8,915,120 | 8,016,465 | 766,870 | |||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||
| From net investment income: | Institutional Class | (9,576,775 | ) | (7,188,905 | ) | (1,180,087 | ) | (675,234 | ) | (130,025 | ) | |||||||||||
| Premier Class | (3,142,585 | ) | (2,527,665 | ) | (511,713 | ) | (355,838 | ) | (64,027 | ) | ||||||||||||
| Retirement Class | (5,167,514 | ) | (5,091,001 | ) | (1,126,545 | ) | (839,498 | ) | (65,973 | ) | ||||||||||||
| From realized gains: | Institutional Class | (6,831,447 | ) | (1,830,509 | ) | (676,624 | ) | (124,831 | ) | — | ||||||||||||
| Premier Class | (2,342,137 | ) | (663,308 | ) | (305,822 | ) | (67,261 | ) | — | |||||||||||||
| Retirement Class | (4,026,822 | ) | (1,386,424 | ) | (697,817 | ) | (164,719 | ) | — | |||||||||||||
| Total distributions | (31,087,280 | ) | (18,687,812 | ) | (4,498,608 | ) | (2,227,381 | ) | (260,025 | ) | ||||||||||||
| SHAREHOLDER TRANSACTIONS | ||||||||||||||||||||||
| Subscriptions: | Institutional Class | 140,857,333 | 102,117,080 | 32,160,104 | 18,694,554 | 5,244,215 | ||||||||||||||||
| Premier Class | 46,991,549 | 51,093,966 | 14,594,332 | 11,480,034 | 2,500,000 | |||||||||||||||||
| Retirement Class | 57,479,006 | 51,818,003 | 21,820,551 | 17,635,996 | 3,160,728 | |||||||||||||||||
| Reinvestments of distributions: | Institutional Class | 16,408,222 | 9,019,414 | 1,856,711 | 800,065 | 130,025 | ||||||||||||||||
| Premier Class | 5,484,722 | 3,190,973 | 817,535 | 423,099 | 64,027 | |||||||||||||||||
| Retirement Class | 9,194,336 | 6,477,425 | 1,824,362 | 1,004,217 | 65,973 | |||||||||||||||||
| Redemptions: | Institutional Class | (13,401,527 | ) | (7,482,802 | ) | (5,772,194 | ) | (1,868,516 | ) | — | ||||||||||||
| Premier Class | (18,125,571 | ) | (12,734,597 | ) | (3,733,920 | ) | (3,289,528 | ) | — | |||||||||||||
| Retirement Class | (27,065,179 | ) | (29,289,050 | ) | (4,999,250 | ) | (5,152,326 | ) | (198,860 | ) | ||||||||||||
| Net increase (decrease) from shareholder transactions | 217,822,891 | 174,210,412 | 58,568,231 | 39,727,595 | 10,966,108 | |||||||||||||||||
| Net increase (decrease) in net assets | 240,891,840 | 220,716,161 | 62,984,743 | 45,516,679 | 11,472,953 | |||||||||||||||||
| NET ASSETS | ||||||||||||||||||||||
| Beginning of period | 548,955,310 | 328,239,149 | 78,785,809 | 33,269,130 | — | |||||||||||||||||
| End of period | $ | 789,847,150 | $ | 548,955,310 | $ | 141,770,552 | $ | 78,785,809 | $ | 11,472,953 | ||||||||||||
| Undistributed net investment income (loss) included in net assets | $ | 1,262,735 | $ | 771,291 | $ | 188,616 | $ | 98,302 | $ | 16,548 | ||||||||||||
| CHANGE IN FUND SHARES | ||||||||||||||||||||||
| Shares sold: | Institutional Class | 12,654,042 | 9,630,361 | 2,590,836 | 1,586,405 | 523,270 | ||||||||||||||||
| Premier Class | 4,218,680 | 4,904,966 | 1,170,319 | 971,757 | 250,000 | |||||||||||||||||
| Retirement Class | 5,183,750 | 4,927,555 | 1,758,059 | 1,493,667 | 315,045 | |||||||||||||||||
| Shares reinvested: | Institutional Class | 1,517,874 | 848,487 | 153,574 | 67,630 | 13,107 | ||||||||||||||||
| Premier Class | 508,787 | 300,752 | 67,789 | 35,825 | 6,454 | |||||||||||||||||
| Retirement Class | 854,492 | 612,233 | 151,149 | 85,031 | 6,651 | |||||||||||||||||
| Shares redeemed: | Institutional Class | (1,187,305 | ) | (712,803 | ) | (460,387 | ) | (156,340 | ) | — | ||||||||||||
| Premier Class | (1,659,793 | ) | (1,209,029 | ) | (305,607 | ) | (278,918 | ) | — | |||||||||||||
| Retirement Class | (2,436,607 | ) | (2,850,443 | ) | (402,995 | ) | (435,427 | ) | (19,381 | ) | ||||||||||||
| Net increase (decrease) from shareholder transactions | 19,653,920 | 16,452,079 | 4,722,737 | 3,369,630 | 1,095,146 | |||||||||||||||||
| * | For the period September 26, 2014 to May 31, 2015. |
| 64 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 65 |
TIAA-CREF Lifecycle Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period |
investment income (loss | )a |
gain (loss) on total investments | j |
(loss) from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at end of period (in thousands | ) | Gross
expenses | e | Net expenses | e |
investment income (loss | ) | Portfolio
turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFECYCLE RETIREMENT INCOME FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $11.28 | $0.21 | $0.32 | $0.53 | $(0.30 | ) | $(0.13 | ) | $(0.43 | ) | $11.38 | 4.83 | % | $132,539 | 0.15 | % | 0.00 | % | 1.84 | % | 19 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.76 | 0.21 | 0.72 | 0.93 | (0.31 | ) | (0.10 | ) | (0.41 | ) | 11.28 | 8.84 | 97,792 | 0.17 | 0.00 | 1.88 | 31 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.90 | 0.21 | 0.99 | 1.20 | (0.28 | ) | (0.06 | ) | (0.34 | ) | 10.76 | 12.24 | 65,475 | 0.18 | 0.00 | 2.01 | 19 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 10.08 | 0.21 | (0.09 | ) | 0.12 | (0.30 | ) | — | (0.30 | ) | 9.90 | 1.27 | 32,323 | 0.22 | 0.00 | 2.18 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.43 | 0.14 | 0.69 | 0.83 | (0.18 | ) | — | (0.18 | ) | 10.08 | 8.89 | b | 20,560 | 0.23 | c | 0.00 | c | 2.15 | c | 7 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.85 | 0.21 | 0.58 | 0.79 | (0.21 | ) | — | (0.21 | ) | 9.43 | 9.01 | 11,111 | 0.41 | 0.00 | 2.27 | 33 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 11.27 | 0.19 | 0.32 | 0.51 | (0.28 | ) | (0.13 | ) | (0.41 | ) | 11.37 | 4.68 | 27,088 | 0.30 | 0.15 | 1.72 | 19 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.75 | 0.19 | 0.72 | 0.91 | (0.29 | ) | (0.10 | ) | (0.39 | ) | 11.27 | 8.69 | 24,433 | 0.32 | 0.15 | 1.77 | 31 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.89 | 0.19 | 0.99 | 1.18 | (0.26 | ) | (0.06 | ) | (0.32 | ) | 10.75 | 12.08 | 13,648 | 0.33 | 0.15 | 1.80 | 19 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 10.08 | 0.20 | (0.11 | ) | 0.09 | (0.28 | ) | — | (0.28 | ) | 9.89 | 1.03 | 9,322 | 0.37 | 0.15 | 2.00 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.43 | 0.12 | 0.70 | 0.82 | (0.17 | ) | — | (0.17 | ) | 10.08 | 8.82 | b | 4,387 | 0.39 | c | 0.15 | c | 1.91 | c | 7 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.85 | 0.17 | 0.61 | 0.78 | (0.20 | ) | — | (0.20 | ) | 9.43 | 8.86 | 1,453 | 0.58 | 0.15 | 1.91 | 33 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 11.25 | 0.18 | 0.32 | 0.50 | (0.27 | ) | (0.13 | ) | (0.40 | ) | 11.35 | 4.59 | 130,926 | 0.45 | 0.25 | 1.59 | 19 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.74 | 0.18 | 0.71 | 0.89 | (0.28 | ) | (0.10 | ) | (0.38 | ) | 11.25 | 8.49 | 113,987 | 0.47 | 0.25 | 1.62 | 31 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.88 | 0.18 | 0.99 | 1.17 | (0.25 | ) | (0.06 | ) | (0.31 | ) | 10.74 | 12.00 | 99,400 | 0.48 | 0.25 | 1.77 | 19 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 10.06 | 0.19 | (0.10 | ) | 0.09 | (0.27 | ) | — | (0.27 | ) | 9.88 | 1.01 | 72,109 | 0.52 | 0.25 | 1.89 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.41 | 0.13 | 0.69 | 0.82 | (0.17 | ) | — | (0.17 | ) | 10.06 | 8.78 | b | 57,288 | 0.53 | c | 0.25 | c | 1.93 | c | 7 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.84 | 0.18 | 0.58 | 0.76 | (0.19 | ) | — | (0.19 | ) | 9.41 | 8.65 | 39,682 | 0.70 | 0.25 | 2.04 | 33 | ||||||||||||||||||||||||||||||||||||||||||
| Retail Class: | 5/31/15 | 11.26 | 0.18 | 0.32 | 0.50 | (0.27 | ) | (0.13 | ) | (0.40 | ) | 11.36 | 4.59 | 81,140 | 0.43 | 0.25 | 1.61 | 19 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.75 | 0.18 | 0.71 | 0.89 | (0.28 | ) | (0.10 | ) | (0.38 | ) | 11.26 | 8.49 | 66,340 | 0.46 | 0.25 | 1.63 | 31 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.89 | 0.18 | 0.99 | 1.17 | (0.25 | ) | (0.06 | ) | (0.31 | ) | 10.75 | 11.99 | 50,147 | 0.47 | 0.25 | 1.75 | 19 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 10.07 | 0.19 | (0.10 | ) | 0.09 | (0.27 | ) | — | (0.27 | ) | 9.89 | 1.03 | 31,296 | 0.47 | 0.25 | 1.90 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.42 | 0.13 | 0.69 | 0.82 | (0.17 | ) | — | (0.17 | ) | 10.07 | 8.82 | b | 26,758 | 0.39 | c | 0.16 | c | 2.01 | c | 7 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.85 | 0.19 | 0.58 | 0.77 | (0.20 | ) | — | (0.20 | ) | 9.42 | 8.76 | 16,652 | 0.55 | 0.15 | 2.14 | 33 | ||||||||||||||||||||||||||||||||||||||||||
| 66 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 67 |
| Financial highlights | continued |
TIAA-CREF Lifecycle Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period |
investment income (loss | )a |
gain (loss) on total investments | j |
(loss) from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at end of period (in thousands | ) | Gross
expenses | e | Net expenses | e |
investment income (loss | ) | Portfolio
turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFECYCLE 2010 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $11.60 | $0.21 | $0.38 | $0.59 | $(0.34 | ) | $(0.27 | ) | $(0.61 | ) | $11.58 | 5.25 | % | $527,313 | 0.12 | % | 0.00 | % | 1.85 | % | 20 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.02 | 0.21 | 0.87 | 1.08 | (0.39 | ) | (0.11 | ) | (0.50 | ) | 11.60 | 10.03 | 482,193 | 0.13 | 0.00 | 1.83 | 28 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.94 | 0.21 | 1.19 | 1.40 | (0.30 | ) | (0.02 | ) | (0.32 | ) | 11.02 | 14.21 | 352,956 | 0.13 | 0.00 | 1.99 | 18 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 10.30 | 0.20 | (0.24 | ) | (0.04 | ) | (0.32 | ) | — | (0.32 | ) | 9.94 | (0.23 | ) | 226,848 | 0.14 | 0.00 | 2.07 | 13 | |||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.58 | 0.14 | 0.87 | 1.01 | (0.29 | ) | — | (0.29 | ) | 10.30 | 10.76 | b | 102,505 | 0.15 | c | 0.00 | c | 2.17 | c | 8 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.97 | 0.20 | 0.63 | 0.83 | (0.22 | ) | — | (0.22 | ) | 9.58 | 9.48 | 38,539 | 0.16 | 0.00 | 2.20 | 24 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 11.57 | 0.20 | 0.37 | 0.57 | (0.32 | ) | (0.27 | ) | (0.59 | ) | 11.55 | 5.10 | 123,047 | 0.27 | 0.15 | 1.69 | 20 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.00 | 0.20 | 0.85 | 1.05 | (0.37 | ) | (0.11 | ) | (0.48 | ) | 11.57 | 9.78 | 137,806 | 0.28 | 0.15 | 1.77 | 28 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.92 | 0.20 | 1.18 | 1.38 | (0.28 | ) | (0.02 | ) | (0.30 | ) | 11.00 | 14.08 | 126,525 | 0.28 | 0.15 | 1.85 | 18 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 10.28 | 0.19 | (0.24 | ) | (0.05 | ) | (0.31 | ) | — | (0.31 | ) | 9.92 | (0.34 | ) | 98,192 | 0.29 | 0.15 | 1.92 | 13 | |||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.57 | 0.14 | 0.86 | 1.00 | (0.29 | ) | — | (0.29 | ) | 10.28 | 10.61 | b | 50,526 | 0.30 | c | 0.15 | c | 2.10 | c | 8 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.97 | 0.14 | 0.68 | 0.82 | (0.22 | ) | — | (0.22 | ) | 9.57 | 9.32 | 27,054 | 0.31 | 0.15 | 1.50 | 24 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 13.25 | 0.21 | 0.45 | 0.66 | (0.31 | ) | (0.27 | ) | (0.58 | ) | 13.33 | 5.09 | 463,646 | 0.42 | 0.25 | 1.60 | 20 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.53 | 0.20 | 0.99 | 1.19 | (0.36 | ) | (0.11 | ) | (0.47 | ) | 13.25 | 9.66 | 462,794 | 0.43 | 0.25 | 1.59 | 28 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.26 | 0.22 | 1.34 | 1.56 | (0.27 | ) | (0.02 | ) | (0.29 | ) | 12.53 | 13.94 | 448,911 | 0.43 | 0.25 | 1.79 | 18 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.61 | 0.20 | (0.26 | ) | (0.06 | ) | (0.29 | ) | — | (0.29 | ) | 11.26 | (0.40 | ) | 432,315 | 0.44 | 0.25 | 1.82 | 13 | |||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.76 | 0.15 | 0.96 | 1.11 | (0.26 | ) | — | (0.26 | ) | 11.61 | 10.51 | b | 498,029 | 0.45 | c | 0.25 | c | 1.97 | c | 8 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.05 | 0.21 | 0.70 | 0.91 | (0.20 | ) | — | (0.20 | ) | 10.76 | 9.23 | 469,156 | 0.46 | 0.25 | 2.07 | 24 | ||||||||||||||||||||||||||||||||||||||||||
| LIFECYCLE 2015 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | 10.80 | 0.20 | 0.39 | 0.59 | (0.32 | ) | (0.51 | ) | (0.83 | ) | 10.56 | 5.78 | 861,906 | 0.12 | 0.00 | 1.85 | 16 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.46 | 0.19 | 0.93 | 1.12 | (0.35 | ) | (0.43 | ) | (0.78 | ) | 10.80 | 10.93 | 750,459 | 0.13 | 0.00 | 1.81 | 20 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.54 | 0.20 | 1.28 | 1.48 | (0.30 | ) | (0.26 | ) | (0.56 | ) | 10.46 | 15.85 | 537,761 | 0.13 | 0.00 | 1.99 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 10.21 | 0.19 | (0.35 | ) | (0.16 | ) | (0.30 | ) | (0.21 | ) | (0.51 | ) | 9.54 | (1.26 | ) | 331,069 | 0.13 | 0.00 | 2.02 | 11 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.37 | 0.14 | 0.98 | 1.12 | (0.28 | ) | — | (0.28 | ) | 10.21 | 12.11 | b | 150,938 | 0.15 | c | 0.00 | c | 2.13 | c | 5 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.75 | 0.18 | 0.65 | 0.83 | (0.21 | ) | — | (0.21 | ) | 9.37 | 9.62 | 50,118 | 0.16 | 0.00 | 2.03 | 19 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 10.77 | 0.18 | 0.39 | 0.57 | (0.31 | ) | (0.51 | ) | (0.82 | ) | 10.52 | 5.53 | 215,362 | 0.27 | 0.15 | 1.69 | 16 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.42 | 0.18 | 0.93 | 1.11 | (0.33 | ) | (0.43 | ) | (0.76 | ) | 10.77 | 10.90 | 228,069 | 0.28 | 0.15 | 1.72 | 20 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.51 | 0.19 | 1.26 | 1.45 | (0.28 | ) | (0.26 | ) | (0.54 | ) | 10.42 | 15.64 | 197,915 | 0.28 | 0.15 | 1.85 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 10.19 | 0.18 | (0.36 | ) | (0.18 | ) | (0.29 | ) | (0.21 | ) | (0.50 | ) | 9.51 | (1.46 | ) | 152,161 | 0.28 | 0.15 | 1.84 | 11 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.36 | 0.13 | 0.97 | 1.10 | (0.27 | ) | — | (0.27 | ) | 10.19 | 11.96 | b | 63,101 | 0.30 | c | 0.15 | c | 2.07 | c | 5 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.75 | 0.12 | 0.69 | 0.81 | (0.20 | ) | — | (0.20 | ) | 9.36 | 9.47 | 31,743 | 0.31 | 0.15 | 1.36 | 19 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 12.66 | 0.20 | 0.47 | 0.67 | (0.29 | ) | (0.51 | ) | (0.80 | ) | 12.53 | 5.52 | 727,918 | 0.42 | 0.25 | 1.60 | 16 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.14 | 0.19 | 1.07 | 1.26 | (0.31 | ) | (0.43 | ) | (0.74 | ) | 12.66 | 10.62 | 710,134 | 0.43 | 0.25 | 1.55 | 20 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.98 | 0.21 | 1.48 | 1.69 | (0.27 | ) | (0.26 | ) | (0.53 | ) | 12.14 | 15.67 | 656,220 | 0.43 | 0.25 | 1.78 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.67 | 0.20 | (0.41 | ) | (0.21 | ) | (0.27 | ) | (0.21 | ) | (0.48 | ) | 10.98 | (1.55 | ) | 575,517 | 0.43 | 0.25 | 1.77 | 11 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.67 | 0.14 | 1.11 | 1.25 | (0.25 | ) | — | (0.25 | ) | 11.67 | 11.87 | b | 661,257 | 0.45 | c | 0.25 | c | 1.92 | c | 5 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 9.94 | 0.20 | 0.72 | 0.92 | (0.19 | ) | — | (0.19 | ) | 10.67 | 9.36 | 580,270 | 0.46 | 0.25 | 1.96 | 19 | ||||||||||||||||||||||||||||||||||||||||||
| 68 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 69 |
| Financial highlights | continued |
TIAA-CREF Lifecycle Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period |
investment income (loss | )a |
gain (loss) on total investments | j |
(loss) from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at end of period (in thousands | ) | Gross
expenses | e | Net expenses | e |
investment income (loss | ) | Portfolio
turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFECYCLE 2020 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $10.86 | $0.19 | $0.47 | $ 0.66 | $(0.33 | ) | $(0.47 | ) | $(0.80 | ) | $10.72 | 6.34 | % | $1,403,172 | 0.12 | % | 0.00 | % | 1.80 | % | 13 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.36 | 0.19 | 1.05 | 1.24 | (0.36 | ) | (0.38 | ) | (0.74 | ) | 10.86 | 12.28 | 1,103,076 | 0.13 | 0.00 | 1.76 | 15 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.25 | 0.20 | 1.43 | 1.63 | (0.28 | ) | (0.24 | ) | (0.52 | ) | 10.36 | 18.04 | 726,575 | 0.13 | 0.00 | 2.00 | 12 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.99 | 0.18 | (0.47 | ) | (0.29 | ) | (0.28 | ) | (0.17 | ) | (0.45 | ) | 9.25 | (2.60 | ) | 419,753 | 0.13 | 0.00 | 1.98 | 8 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.04 | 0.13 | 1.08 | 1.21 | (0.26 | ) | (0.00 | )d | (0.26 | ) | 9.99 | 13.64 | b | 175,206 | 0.15 | c | 0.00 | c | 2.06 | c | 4 | b | |||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.43 | 0.16 | 0.64 | 0.80 | (0.19 | ) | (0.00 | )d | (0.19 | ) | 9.04 | 9.63 | 51,076 | 0.16 | 0.00 | 1.86 | 16 | |||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 10.84 | 0.18 | 0.45 | 0.63 | (0.31 | ) | (0.47 | ) | (0.78 | ) | 10.69 | 6.10 | 377,734 | 0.27 | 0.15 | 1.67 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.34 | 0.18 | 1.04 | 1.22 | (0.34 | ) | (0.38 | ) | (0.72 | ) | 10.84 | 12.15 | 367,841 | 0.28 | 0.15 | 1.70 | 15 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.23 | 0.18 | 1.44 | 1.62 | (0.27 | ) | (0.24 | ) | (0.51 | ) | 10.34 | 17.92 | 265,878 | 0.28 | 0.15 | 1.86 | 12 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.98 | 0.17 | (0.48 | ) | (0.31 | ) | (0.27 | ) | (0.17 | ) | (0.44 | ) | 9.23 | (2.80 | ) | 190,954 | 0.28 | 0.15 | 1.85 | 8 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.04 | 0.13 | 1.07 | 1.20 | (0.26 | ) | 0.00 | d | (0.26 | ) | 9.98 | 13.47 | b | 84,846 | 0.30 | c | 0.15 | c | 2.00 | c | 4 | b | |||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.43 | 0.10 | 0.70 | 0.80 | (0.19 | ) | — | (0.19 | ) | 9.04 | 9.59 | 38,234 | 0.31 | 0.15 | 1.16 | 16 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 12.97 | 0.20 | 0.56 | 0.76 | (0.30 | ) | (0.47 | ) | (0.77 | ) | 12.96 | 6.04 | 1,054,395 | 0.42 | 0.25 | 1.56 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.24 | 0.19 | 1.25 | 1.44 | (0.33 | ) | (0.38 | ) | (0.71 | ) | 12.97 | 12.00 | 964,674 | 0.43 | 0.25 | 1.50 | 15 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.84 | 0.21 | 1.68 | 1.89 | (0.25 | ) | (0.24 | ) | (0.49 | ) | 12.24 | 17.78 | 832,093 | 0.43 | 0.25 | 1.79 | 12 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.62 | 0.19 | (0.55 | ) | (0.36 | ) | (0.25 | ) | (0.17 | ) | (0.42 | ) | 10.84 | (2.85 | ) | 711,358 | 0.43 | 0.25 | 1.71 | 8 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.47 | 0.14 | 1.24 | 1.38 | (0.23 | ) | 0.00 | d | (0.23 | ) | 11.62 | 13.43 | b | 795,642 | 0.45 | c | 0.25 | c | 1.85 | c | 4 | b | |||||||||||||||||||||||||||||||||||
| 9/30/10 | 9.74 | 0.18 | 0.72 | 0.90 | (0.17 | ) | — | (0.17 | ) | 10.47 | 9.36 | 672,342 | 0.46 | 0.25 | 1.80 | 16 | ||||||||||||||||||||||||||||||||||||||||||
| LIFECYCLE 2025 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | 10.90 | 0.19 | 0.53 | 0.72 | (0.34 | ) | (0.47 | ) | (0.81 | ) | 10.81 | 6.93 | 1,468,702 | 0.12 | 0.00 | 1.79 | 12 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.29 | 0.18 | 1.19 | 1.37 | (0.38 | ) | (0.38 | ) | (0.76 | ) | 10.90 | 13.64 | 1,140,353 | 0.13 | 0.00 | 1.73 | 12 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.00 | 0.19 | 1.60 | 1.79 | (0.27 | ) | (0.23 | ) | (0.50 | ) | 10.29 | 20.37 | 749,263 | 0.13 | 0.00 | 1.99 | 11 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.83 | 0.18 | (0.60 | ) | (0.42 | ) | (0.27 | ) | (0.14 | ) | (0.41 | ) | 9.00 | (4.00 | ) | 403,396 | 0.13 | 0.00 | 1.94 | 7 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 8.78 | 0.12 | 1.18 | 1.30 | (0.25 | ) | — | (0.25 | ) | 9.83 | 15.01 | b | 166,006 | 0.15 | c | 0.00 | c | 2.01 | c | 4 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.17 | 0.14 | 0.65 | 0.79 | (0.18 | ) | — | (0.18 | ) | 8.78 | 9.76 | 50,809 | 0.16 | 0.00 | 1.72 | 15 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 10.86 | 0.18 | 0.51 | 0.69 | (0.32 | ) | (0.47 | ) | (0.79 | ) | 10.76 | 6.69 | 382,956 | 0.27 | 0.15 | 1.63 | 12 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.26 | 0.18 | 1.16 | 1.34 | (0.36 | ) | (0.38 | ) | (0.74 | ) | 10.86 | 13.42 | 358,098 | 0.28 | 0.15 | 1.67 | 12 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.98 | 0.18 | 1.58 | 1.76 | (0.25 | ) | (0.23 | ) | (0.48 | ) | 10.26 | 20.14 | 264,821 | 0.28 | 0.15 | 1.86 | 11 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.80 | 0.16 | (0.58 | ) | (0.42 | ) | (0.26 | ) | (0.14 | ) | (0.40 | ) | 8.98 | (4.01 | ) | 181,859 | 0.28 | 0.15 | 1.81 | 7 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 8.76 | 0.12 | 1.16 | 1.28 | (0.24 | ) | — | (0.24 | ) | 9.80 | 14.88 | b | 84,577 | 0.30 | c | 0.15 | c | 1.99 | c | 4 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.17 | 0.08 | 0.68 | 0.76 | (0.17 | ) | — | (0.17 | ) | 8.76 | 9.47 | 36,184 | 0.31 | 0.15 | 0.97 | 15 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 13.13 | 0.20 | 0.63 | 0.83 | (0.30 | ) | (0.47 | ) | (0.77 | ) | 13.19 | 6.62 | 1,029,164 | 0.42 | 0.25 | 1.54 | 12 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.25 | 0.19 | 1.42 | 1.61 | (0.35 | ) | (0.38 | ) | (0.73 | ) | 13.13 | 13.39 | 928,337 | 0.43 | 0.25 | 1.47 | 12 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.64 | 0.21 | 1.87 | 2.08 | (0.24 | ) | (0.23 | ) | (0.47 | ) | 12.25 | 19.94 | 776,980 | 0.43 | 0.25 | 1.81 | 11 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.52 | 0.18 | (0.68 | ) | (0.50 | ) | (0.24 | ) | (0.14 | ) | (0.38 | ) | 10.64 | (4.11 | ) | 665,020 | 0.43 | 0.25 | 1.65 | 7 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.25 | 0.13 | 1.36 | 1.49 | (0.22 | ) | — | (0.22 | ) | 11.52 | 14.74 | b | 750,162 | 0.45 | c | 0.25 | c | 1.80 | c | 4 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 9.51 | 0.16 | 0.74 | 0.90 | (0.16 | ) | — | (0.16 | ) | 10.25 | 9.55 | 630,705 | 0.46 | 0.25 | 1.67 | 15 | ||||||||||||||||||||||||||||||||||||||||||
| 70 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 71 |
| Financial highlights | continued |
TIAA-CREF Lifecycle Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss | )a | gain
(loss) on total investments | j | (loss)
from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at
end of period (in thousands | ) | Gross expenses | e | Net expenses | e | investment income (loss | ) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFECYCLE 2030 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $10.86 | $0.19 | $0.58 | $0.77 | $(0.34 | ) | $(0.48 | ) | $(0.82 | ) | $10.81 | 7.48 | % | $1,495,152 | 0.12 | % | 0.00 | % | 1.77 | % | 11 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.16 | 0.18 | 1.29 | 1.47 | (0.39 | ) | (0.38 | ) | (0.77 | ) | 10.86 | 14.82 | 1,139,305 | 0.13 | 0.00 | 1.69 | 11 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.73 | 0.19 | 1.73 | 1.92 | (0.24 | ) | (0.25 | ) | (0.49 | ) | 10.16 | 22.50 | 736,779 | 0.13 | 0.00 | 1.97 | 12 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.61 | 0.16 | (0.68 | ) | (0.52 | ) | (0.25 | ) | (0.11 | ) | (0.36 | ) | 8.73 | (5.25 | ) | 407,473 | 0.13 | 0.00 | 1.86 | 5 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 8.47 | 0.11 | 1.26 | 1.37 | (0.23 | ) | — | (0.23 | ) | 9.61 | 16.41 | b | 166,564 | 0.15 | c | 0.00 | c | 1.89 | c | 4 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 7.87 | 0.12 | 0.64 | 0.76 | (0.16 | ) | — | (0.16 | ) | 8.47 | 9.80 | 45,757 | 0.16 | 0.00 | 1.52 | 14 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 10.82 | 0.17 | 0.59 | 0.76 | (0.33 | ) | (0.48 | ) | (0.81 | ) | 10.77 | 7.35 | 384,809 | 0.27 | 0.15 | 1.62 | 11 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.12 | 0.17 | 1.29 | 1.46 | (0.38 | ) | (0.38 | ) | (0.76 | ) | 10.82 | 14.72 | 358,491 | 0.28 | 0.15 | 1.65 | 11 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.71 | 0.17 | 1.72 | 1.89 | (0.23 | ) | (0.25 | ) | (0.48 | ) | 10.12 | 22.16 | 267,879 | 0.28 | 0.15 | 1.83 | 12 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.58 | 0.15 | (0.67 | ) | (0.52 | ) | (0.24 | ) | (0.11 | ) | (0.35 | ) | 8.71 | (5.26 | ) | 180,029 | 0.28 | 0.15 | 1.74 | 5 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 8.45 | 0.11 | 1.25 | 1.36 | (0.23 | ) | — | (0.23 | ) | 9.58 | 16.28 | b | 84,355 | 0.30 | c | 0.15 | c | 1.88 | c | 4 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 7.87 | 0.06 | 0.68 | 0.74 | (0.16 | ) | — | (0.16 | ) | 8.45 | 9.50 | 32,600 | 0.31 | 0.15 | 0.75 | 14 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 13.26 | 0.20 | 0.72 | 0.92 | (0.31 | ) | (0.48 | ) | (0.79 | ) | 13.39 | 7.22 | 920,141 | 0.42 | 0.25 | 1.52 | 11 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.25 | 0.18 | 1.57 | 1.75 | (0.36 | ) | (0.38 | ) | (0.74 | ) | 13.26 | 14.54 | 825,381 | 0.43 | 0.25 | 1.41 | 11 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.44 | 0.20 | 2.07 | 2.27 | (0.21 | ) | (0.25 | ) | (0.46 | ) | 12.25 | 22.15 | 708,355 | 0.43 | 0.25 | 1.78 | 12 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.40 | 0.16 | (0.79 | ) | (0.63 | ) | (0.22 | ) | (0.11 | ) | (0.33 | ) | 10.44 | (5.40 | ) | 599,240 | 0.43 | 0.25 | 1.55 | 5 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.01 | 0.12 | 1.48 | 1.60 | (0.21 | ) | — | (0.21 | ) | 11.40 | 16.12 | b | 717,292 | 0.45 | c | 0.25 | c | 1.68 | c | 4 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 9.28 | 0.14 | 0.73 | 0.87 | (0.14 | ) | — | (0.14 | ) | 10.01 | 9.51 | 607,051 | 0.46 | 0.25 | 1.50 | 14 | ||||||||||||||||||||||||||||||||||||||||||
| LIFECYCLE 2035 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | 10.97 | 0.18 | 0.63 | 0.81 | (0.34 | ) | (0.52 | ) | (0.86 | ) | 10.92 | 7.83 | 1,562,158 | 0.12 | 0.00 | 1.67 | 11 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.18 | 0.17 | 1.44 | 1.61 | (0.41 | ) | (0.41 | ) | (0.82 | ) | 10.97 | 16.10 | 1,209,710 | 0.13 | 0.00 | 1.58 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.61 | 0.18 | 1.87 | 2.05 | (0.22 | ) | (0.26 | ) | (0.48 | ) | 10.18 | 24.45 | 775,166 | 0.13 | 0.00 | 1.90 | 12 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.59 | 0.15 | (0.80 | ) | (0.65 | ) | (0.23 | ) | (0.10 | ) | (0.33 | ) | 8.61 | (6.55 | ) | 406,001 | 0.13 | 0.00 | 1.75 | 4 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 8.34 | 0.11 | 1.36 | 1.47 | (0.22 | ) | — | (0.22 | ) | 9.59 | 17.84 | b | 170,381 | 0.15 | c | 0.00 | c | 1.76 | c | 7 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 7.75 | 0.11 | 0.63 | 0.74 | (0.15 | ) | — | (0.15 | ) | 8.34 | 9.67 | 42,535 | 0.16 | 0.00 | 1.33 | 11 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 10.94 | 0.17 | 0.64 | 0.81 | (0.33 | ) | (0.52 | ) | (0.85 | ) | 10.90 | 7.78 | 384,423 | 0.27 | 0.15 | 1.52 | 11 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.16 | 0.17 | 1.41 | 1.58 | (0.39 | ) | (0.41 | ) | (0.80 | ) | 10.94 | 15.87 | 357,264 | 0.28 | 0.15 | 1.56 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.60 | 0.17 | 1.86 | 2.03 | (0.21 | ) | (0.26 | ) | (0.47 | ) | 10.16 | 24.20 | 265,404 | 0.28 | 0.15 | 1.76 | 12 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.57 | 0.14 | (0.79 | ) | (0.65 | ) | (0.22 | ) | (0.10 | ) | (0.32 | ) | 8.60 | (6.55 | ) | 180,502 | 0.28 | 0.15 | 1.63 | 4 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 8.33 | 0.10 | 1.35 | 1.45 | (0.21 | ) | — | (0.21 | ) | 9.57 | 17.68 | b | 85,514 | 0.30 | c | 0.15 | c | 1.74 | c | 7 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 7.75 | 0.04 | 0.69 | 0.73 | (0.15 | ) | — | (0.15 | ) | 8.33 | 9.50 | 37,314 | 0.31 | 0.15 | 0.51 | 11 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 13.57 | 0.19 | 0.80 | 0.99 | (0.31 | ) | (0.52 | ) | (0.83 | ) | 13.73 | 7.60 | 871,827 | 0.42 | 0.25 | 1.43 | 11 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.43 | 0.17 | 1.76 | 1.93 | (0.38 | ) | (0.41 | ) | (0.79 | ) | 13.57 | 15.72 | 800,282 | 0.43 | 0.25 | 1.31 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.42 | 0.20 | 2.26 | 2.46 | (0.19 | ) | (0.26 | ) | (0.45 | ) | 12.43 | 24.12 | 693,253 | 0.43 | 0.25 | 1.74 | 12 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.51 | 0.15 | (0.94 | ) | (0.79 | ) | (0.20 | ) | (0.10 | ) | (0.30 | ) | 10.42 | (6.68 | ) | 594,181 | 0.43 | 0.25 | 1.43 | 4 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.96 | 0.11 | 1.63 | 1.74 | (0.19 | ) | — | (0.19 | ) | 11.51 | 17.68 | b | 716,085 | 0.45 | c | 0.25 | c | 1.56 | c | 7 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 9.24 | 0.13 | 0.72 | 0.85 | (0.13 | ) | — | (0.13 | ) | 9.96 | 9.33 | 598,803 | 0.46 | 0.25 | 1.33 | 11 | ||||||||||||||||||||||||||||||||||||||||||
| 72 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 73 |
| Financial highlights | continued |
TIAA-CREF Lifecycle Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss | )a | gain (loss) on total investments | j | (loss) from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at end of period (in thousands | ) | Gross expenses | e | Net expenses | e | investment income (loss | ) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFECYCLE 2040 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $11.07 | $0.17 | $0.70 | $0.87 | $(0.35 | ) | $(0.54 | ) | $(0.89 | ) | $11.05 | 8.35 | % | $2,002,921 | 0.12 | % | 0.00 | % | 1.60 | % | 11 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.25 | 0.16 | 1.52 | 1.68 | (0.43 | ) | (0.43 | ) | (0.86 | ) | 11.07 | 16.75 | 1,524,091 | 0.12 | 0.00 | 1.51 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.65 | 0.18 | 1.96 | 2.14 | (0.22 | ) | (0.32 | ) | (0.54 | ) | 10.25 | 25.40 | 978,672 | 0.13 | 0.00 | 1.88 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.67 | 0.15 | (0.82 | ) | (0.67 | ) | (0.23 | ) | (0.12 | ) | (0.35 | ) | 8.65 | (6.71 | ) | 526,001 | 0.13 | 0.00 | 1.72 | 5 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 8.40 | 0.11 | 1.38 | 1.49 | (0.22 | ) | — | (0.22 | ) | 9.67 | 18.01 | b | 221,307 | 0.15 | c | 0.00 | c | 1.76 | c | 8 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 7.81 | 0.11 | 0.63 | 0.74 | (0.15 | ) | — | (0.15 | ) | 8.40 | 9.65 | 60,554 | 0.15 | 0.00 | 1.32 | 10 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 11.04 | 0.16 | 0.69 | 0.85 | (0.33 | ) | (0.54 | ) | (0.87 | ) | 11.02 | 8.21 | 514,930 | 0.27 | 0.15 | 1.47 | 11 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.22 | 0.16 | 1.50 | 1.66 | (0.41 | ) | (0.43 | ) | (0.84 | ) | 11.04 | 16.64 | 497,618 | 0.27 | 0.15 | 1.50 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.63 | 0.16 | 1.96 | 2.12 | (0.21 | ) | (0.32 | ) | (0.53 | ) | 10.22 | 25.17 | 377,355 | 0.28 | 0.15 | 1.72 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.66 | 0.14 | (0.83 | ) | (0.69 | ) | (0.22 | ) | (0.12 | ) | (0.34 | ) | 8.63 | (6.92 | ) | 261,785 | 0.28 | 0.15 | 1.61 | 5 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 8.40 | 0.10 | 1.38 | 1.48 | (0.22 | ) | — | (0.22 | ) | 9.66 | 17.83 | b | 125,013 | 0.30 | c | 0.15 | c | 1.71 | c | 8 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 7.81 | 0.04 | 0.70 | 0.74 | (0.15 | ) | — | (0.15 | ) | 8.40 | 9.61 | 49,852 | 0.31 | 0.15 | 0.50 | 10 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 13.89 | 0.19 | 0.87 | 1.06 | (0.31 | ) | (0.54 | ) | (0.85 | ) | 14.10 | 8.03 | 1,116,406 | 0.42 | 0.25 | 1.36 | 11 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.66 | 0.16 | 1.89 | 2.05 | (0.39 | ) | (0.43 | ) | (0.82 | ) | 13.89 | 16.51 | 1,072,547 | 0.42 | 0.25 | 1.23 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.57 | 0.20 | 2.40 | 2.60 | (0.19 | ) | (0.32 | ) | (0.51 | ) | 12.66 | 25.10 | 977,063 | 0.43 | 0.25 | 1.69 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.73 | 0.15 | (0.99 | ) | (0.84 | ) | (0.20 | ) | (0.12 | ) | (0.32 | ) | 10.57 | (7.00 | ) | 857,435 | 0.43 | 0.25 | 1.39 | 5 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.14 | 0.11 | 1.68 | 1.79 | (0.20 | ) | — | (0.20 | ) | 11.73 | 17.81 | b | 1,070,202 | 0.45 | c | 0.25 | c | 1.54 | c | 8 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 9.40 | 0.13 | 0.75 | 0.88 | (0.14 | ) | — | (0.14 | ) | 10.14 | 9.42 | 893,915 | 0.45 | 0.25 | 1.35 | 10 | ||||||||||||||||||||||||||||||||||||||||||
| LIFECYCLE 2045 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | 11.11 | 0.18 | 0.71 | 0.89 | (0.32 | ) | (0.24 | ) | (0.56 | ) | 11.44 | 8.31 | 749,747 | 0.13 | 0.00 | 1.59 | 8 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 9.94 | 0.16 | 1.49 | 1.65 | (0.38 | ) | (0.10 | ) | (0.48 | ) | 11.11 | 16.79 | 489,349 | 0.14 | 0.00 | 1.51 | 6 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.14 | 0.17 | 1.87 | 2.04 | (0.18 | ) | (0.06 | ) | (0.24 | ) | 9.94 | 25.33 | 267,192 | 0.15 | 0.00 | 1.89 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 8.94 | 0.14 | (0.76 | ) | (0.62 | ) | (0.18 | ) | — | (0.18 | ) | 8.14 | (6.77 | ) | 115,021 | 0.17 | 0.00 | 1.68 | 9 | |||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 7.73 | 0.09 | 1.28 | 1.37 | (0.16 | ) | — | (0.16 | ) | 8.94 | 17.92 | b | 39,323 | 0.19 | c | 0.00 | c | 1.55 | c | 8 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 7.16 | 0.09 | 0.59 | 0.68 | (0.11 | ) | — | (0.11 | ) | 7.73 | 9.58 | 7,970 | 0.35 | 0.00 | 1.29 | 18 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 11.08 | 0.16 | 0.71 | 0.87 | (0.31 | ) | (0.24 | ) | (0.55 | ) | 11.40 | 8.10 | 207,328 | 0.28 | 0.15 | 1.47 | 8 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 9.92 | 0.16 | 1.47 | 1.63 | (0.37 | ) | (0.10 | ) | (0.47 | ) | 11.08 | 16.60 | 158,576 | 0.29 | 0.15 | 1.48 | 6 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.12 | 0.16 | 1.87 | 2.03 | (0.17 | ) | (0.06 | ) | (0.23 | ) | 9.92 | 25.25 | 84,430 | 0.30 | 0.15 | 1.72 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 8.92 | 0.13 | (0.75 | ) | (0.62 | ) | (0.18 | ) | — | (0.18 | ) | 8.12 | (6.87 | ) | 38,862 | 0.32 | 0.15 | 1.53 | 9 | |||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 7.72 | 0.08 | 1.28 | 1.36 | (0.16 | ) | — | (0.16 | ) | 8.92 | 17.76 | b | 14,136 | 0.34 | c | 0.15 | c | 1.51 | c | 8 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 7.16 | 0.06 | 0.61 | 0.67 | (0.11 | ) | — | (0.11 | ) | 7.72 | 9.39 | 2,975 | 0.50 | 0.15 | 0.79 | 18 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 11.05 | 0.15 | 0.71 | 0.86 | (0.30 | ) | (0.24 | ) | (0.54 | ) | 11.37 | 8.00 | 395,217 | 0.43 | 0.25 | 1.37 | 8 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 9.89 | 0.13 | 1.48 | 1.61 | (0.35 | ) | (0.10 | ) | (0.45 | ) | 11.05 | 16.52 | 326,030 | 0.44 | 0.25 | 1.23 | 6 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.10 | 0.15 | 1.86 | 2.01 | (0.16 | ) | (0.06 | ) | (0.22 | ) | 9.89 | 25.07 | 248,237 | 0.45 | 0.25 | 1.68 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 8.90 | 0.12 | (0.76 | ) | (0.64 | ) | (0.16 | ) | — | (0.16 | ) | 8.10 | (7.03 | ) | 155,417 | 0.48 | 0.25 | 1.41 | 9 | |||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 7.70 | 0.08 | 1.27 | 1.35 | (0.15 | ) | — | (0.15 | ) | 8.90 | 17.65 | b | 130,113 | 0.49 | c | 0.25 | c | 1.45 | c | 8 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 7.14 | 0.09 | 0.57 | 0.66 | (0.10 | ) | — | (0.10 | ) | 7.70 | 9.32 | 84,309 | 0.64 | 0.25 | 1.17 | 18 | ||||||||||||||||||||||||||||||||||||||||||
| 74 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 75 |
| Financial highlights | continued |
TIAA-CREF Lifecycle Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss | )a | gain (loss) on total investments | j | (loss) from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at end of period (in thousands | ) | Gross expenses | e | Net expenses | e | investment income (loss | ) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFECYCLE 2050 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $11.08 | $0.18 | $0.71 | $0.89 | $(0.32 | ) | $(0.23 | ) | $(0.55 | ) | $11.42 | 8.30 | % | $423,230 | 0.13 | % | 0.00 | % | 1.59 | % | 7 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 9.91 | 0.16 | 1.49 | 1.65 | (0.38 | ) | (0.10 | ) | (0.48 | ) | 11.08 | 16.76 | 266,715 | 0.15 | 0.00 | 1.51 | 6 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.11 | 0.17 | 1.86 | 2.03 | (0.18 | ) | (0.05 | ) | (0.23 | ) | 9.91 | 25.33 | 141,731 | 0.17 | 0.00 | 1.89 | 8 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 8.90 | 0.14 | (0.75 | ) | (0.61 | ) | (0.18 | ) | — | (0.18 | ) | 8.11 | (6.72 | ) | 59,624 | 0.21 | 0.00 | 1.68 | 6 | |||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 7.75 | 0.09 | 1.28 | 1.37 | (0.16 | ) | (0.06 | ) | (0.22 | ) | 8.90 | 17.89 | b | 19,661 | 0.24 | c | 0.00 | c | 1.56 | c | 8 | b | |||||||||||||||||||||||||||||||||||
| 9/30/10 | 7.18 | 0.10 | 0.58 | 0.68 | (0.11 | ) | — | (0.11 | ) | 7.75 | 9.63 | 5,599 | 0.54 | 0.00 | 1.35 | 24 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 11.05 | 0.17 | 0.70 | 0.87 | (0.31 | ) | (0.23 | ) | (0.54 | ) | 11.38 | 8.09 | 130,718 | 0.28 | 0.15 | 1.51 | 7 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 9.89 | 0.16 | 1.46 | 1.62 | (0.36 | ) | (0.10 | ) | (0.46 | ) | 11.05 | 16.57 | 92,974 | 0.30 | 0.15 | 1.47 | 6 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.09 | 0.16 | 1.86 | 2.02 | (0.17 | ) | (0.05 | ) | (0.22 | ) | 9.89 | 25.25 | 43,678 | 0.32 | 0.15 | 1.74 | 8 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 8.89 | 0.12 | (0.75 | ) | (0.63 | ) | (0.17 | ) | — | (0.17 | ) | 8.09 | (6.93 | ) | 21,343 | 0.36 | 0.15 | 1.53 | 6 | |||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 7.74 | 0.08 | 1.29 | 1.37 | (0.16 | ) | (0.06 | ) | (0.22 | ) | 8.89 | 17.86 | b | 6,904 | 0.39 | c | 0.15 | c | 1.49 | c | 8 | b | |||||||||||||||||||||||||||||||||||
| 9/30/10 | 7.18 | 0.08 | 0.59 | 0.67 | (0.11 | ) | — | (0.11 | ) | 7.74 | 9.45 | 1,100 | 0.70 | 0.15 | 1.09 | 24 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 11.02 | 0.15 | 0.70 | 0.85 | (0.29 | ) | (0.23 | ) | (0.52 | ) | 11.35 | 7.98 | 235,899 | 0.43 | 0.25 | 1.35 | 7 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 9.86 | 0.13 | 1.48 | 1.61 | (0.35 | ) | (0.10 | ) | (0.45 | ) | 11.02 | 16.48 | 189,266 | 0.45 | 0.25 | 1.23 | 6 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.07 | 0.15 | 1.85 | 2.00 | (0.16 | ) | (0.05 | ) | (0.21 | ) | 9.86 | 25.07 | 142,830 | 0.47 | 0.25 | 1.66 | 8 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 8.86 | 0.11 | (0.74 | ) | (0.63 | ) | (0.16 | ) | — | (0.16 | ) | 8.07 | (6.97 | ) | 85,178 | 0.52 | 0.25 | 1.40 | 6 | |||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 7.71 | 0.08 | 1.28 | 1.36 | (0.15 | ) | (0.06 | ) | (0.21 | ) | 8.86 | 17.79 | b | 69,466 | 0.53 | c | 0.25 | c | 1.44 | c | 8 | b | |||||||||||||||||||||||||||||||||||
| 9/30/10 | 7.15 | 0.09 | 0.57 | 0.66 | (0.10 | ) | — | (0.10 | ) | 7.71 | 9.38 | 40,745 | 0.83 | 0.25 | 1.16 | 24 | ||||||||||||||||||||||||||||||||||||||||||
| LIFECYCLE 2055 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | 12.33 | 0.20 | 0.79 | 0.99 | (0.35 | ) | (0.20 | ) | (0.55 | ) | 12.77 | 8.31 | 59,787 | 0.21 | 0.00 | 1.58 | 9 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.00 | 0.17 | 1.65 | 1.82 | (0.41 | ) | (0.08 | ) | (0.49 | ) | 12.33 | 16.70 | 29,574 | 0.32 | 0.00 | 1.49 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.00 | 0.18 | 2.07 | 2.25 | (0.19 | ) | (0.06 | ) | (0.25 | ) | 11.00 | 25.40 | 9,903 | 0.51 | 0.00 | 1.79 | 26 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.85 | 0.15 | (0.81 | ) | (0.66 | ) | (0.19 | ) | (0.00 | )d | (0.19 | ) | 9.00 | (6.55 | ) | 2,072 | 1.12 | 0.00 | 1.61 | 44 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | * | 10.00 | (0.00 | )d | (0.15 | ) | (0.15 | ) | — | — | — | 9.85 | (1.50 | )b | 985 | 8.94 | c | 0.00 | c | 0.47 | c | 1 | b | |||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 12.30 | 0.18 | 0.79 | 0.97 | (0.34 | ) | (0.20 | ) | (0.54 | ) | 12.73 | 8.13 | 26,407 | 0.36 | 0.15 | 1.47 | 9 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.98 | 0.19 | 1.61 | 1.80 | (0.40 | ) | (0.08 | ) | (0.48 | ) | 12.30 | 16.55 | 14,041 | 0.47 | 0.15 | 1.65 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.99 | 0.17 | 2.06 | 2.23 | (0.18 | ) | (0.06 | ) | (0.24 | ) | 10.98 | 25.19 | 4,531 | 0.66 | 0.15 | 1.72 | 26 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.85 | 0.14 | (0.82 | ) | (0.68 | ) | (0.18 | ) | (0.00 | )d | (0.18 | ) | 8.99 | (6.73 | ) | 1,335 | 1.28 | 0.15 | 1.50 | 44 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | * | 10.00 | (0.00 | )d | (0.15 | ) | (0.15 | ) | — | — | — | 9.85 | (1.50 | )b | 985 | 9.09 | c | 0.15 | c | 0.32 | c | 1 | b | |||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 12.30 | 0.17 | 0.79 | 0.96 | (0.33 | ) | (0.20 | ) | (0.53 | ) | 12.73 | 8.02 | 55,577 | 0.51 | 0.25 | 1.35 | 9 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.98 | 0.15 | 1.64 | 1.79 | (0.39 | ) | (0.08 | ) | (0.47 | ) | 12.30 | 16.41 | 35,171 | 0.62 | 0.25 | 1.26 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 8.99 | 0.16 | 2.06 | 2.22 | (0.17 | ) | (0.06 | ) | (0.23 | ) | 10.98 | 25.06 | 18,835 | 0.81 | 0.25 | 1.64 | 26 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.85 | 0.13 | (0.81 | ) | (0.68 | ) | (0.18 | ) | (0.00 | )d | (0.18 | ) | 8.99 | (6.79 | ) | 10,725 | 1.41 | 0.25 | 1.38 | 44 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | * | 10.00 | (0.00 | )d | (0.15 | ) | (0.15 | ) | — | — | — | 9.85 | (1.50 | )b | 7,877 | 8.55 | c | 0.25 | c | 0.23 | c | 1 | b | |||||||||||||||||||||||||||||||||||
| LIFECYCLE 2060 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | ^ | 10.00 | 0.14 | 0.60 | 0.74 | (0.26 | ) | — | (0.26 | ) | 10.48 | 7.55 | b | 5,622 | 1.64 | c | 0.00 | c | 2.06 | c | 12 | b | |||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | ^ | 10.00 | 0.13 | 0.60 | 0.73 | (0.26 | ) | — | (0.26 | ) | 10.47 | 7.40 | b | 2,686 | 1.82 | c | 0.15 | c | 1.92 | c | 12 | b | |||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | ^ | 10.00 | 0.12 | 0.60 | 0.72 | (0.25 | ) | — | (0.25 | ) | 10.47 | 7.38 | b | 3,165 | 1.99 | c | 0.25 | c | 1.77 | c | 12 | b | |||||||||||||||||||||||||||||||||||
| 76 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 77 |
| Financial highlights | concluded |
TIAA-CREF Lifecycle Funds
| a | Based on average shares outstanding. |
| b | The percentages shown for this period are not annualized. |
| c | The percentages shown for this period are annualized. |
| d | Amount represents less than $0.01 per share. |
| e | The Fund’s expenses do not include the expenses of the Underlying Funds. |
| j | Short-term capital gains distributions are presented in net realized and unrealized gain (loss) on total investments for all periods presented. |
| † | Amounts shown are for the eight-month period ended May 31, 2011 and are not necessarily indicative of a full year of operations. The Fund changed its fiscal year end from September 30 to May 31. |
| * | The Fund commenced operations on April 29, 2011. |
| ^ | The Fund commenced operations on September 26, 2014. |
| 78 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds | See notes to financial statements |
TIAA-CREF Lifecycle Funds
Note 1—organization and significant accounting policies
The Lifecycle Funds (collectively the “Funds,” each individually referred to as a “Fund”) are a sub-family of mutual funds offered by the TIAA-CREF Funds (the “Trust”), a Delaware statutory trust, that is registered with the Securities and Exchange Commission (“Commission”) under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The Lifecycle 2060 Fund commenced operations on September 26, 2014.
Each Fund is a “fund of funds” that diversifies its assets by investing in Institutional Class shares of other funds of the Trust and potentially other investment pools or investment products. The Funds offer their shares, without a sales load, through their principal underwriter, Teachers Personal Investors Services, Inc. (“TPIS”), which is a wholly owned indirect subsidiary of Teachers Insurance and Annuity Association of America (“TIAA”). Teachers Advisors Inc. (“Advisors”), a wholly owned indirect subsidiary of TIAA, is registered with the Commission as an investment adviser and provides investment management services for the Funds. The Funds offer up to four share classes, although any one Fund may not necessarily offer all four classes. The Funds may offer Institutional, Premier, Retirement and Retail Classes of shares. Each class differs by the allocation of class-specific expenses and voting rights in matters affecting a single class.
The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from those estimates. The Funds are investment companies and follow the accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services—Investment Companies. The Net Asset Value (“NAV”) for financial reporting purposes may differ from the NAV for processing transactions. The NAV for financial reporting purposes includes security and shareholder transactions through the date of the report. Total return is computed based on the NAV used for processing transactions. The following is a summary of the significant accounting policies consistently followed by the Funds.
Security valuation: The Funds’ investments in securities are recorded at their estimated fair value as described in the valuation of investments note to the financial statements.
Investments and investment income: Securities transactions are accounted for as of the trade date for financial reporting purposes. Dividends from investments are recorded on the ex-dividend date. Dividends from investments are recorded as dividend income, while capital gain distributions, including short-term capital gain distributions, are recorded as gain distributions from investments on the Statements of Operations. Realized gains and losses on sales from investments in investment companies are based upon the specific identification method.
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 79 |
Notes to financial statements
Income, expenses, realized gains and losses and unrealized appreciation and depreciation of a Fund are allocated on a pro rata basis to each class of shares, except for service agreement fees, distribution fees and transfer agency fees and expenses, which are unique to each class of shares. Most expenses of the Trust can be directly attributed to a fund. Expenses that cannot be directly attributed are allocated to each fund in the Trust based upon the average net assets of each fund.
Distributions to shareholders: Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date.
Income taxes: Each Fund is treated separately for income tax purposes. The Funds intend to continue to qualify as regulated investment companies under Subchapter M of the Internal Revenue Code (“Code”) and will not be subject to income taxes to the extent that they distribute all taxable income each year and comply with various other Code requirements. The Funds file income tax returns in U.S. federal and applicable state and local jurisdictions. A fund’s federal income tax returns are generally subject to examination for a period of three fiscal years after filed. State and local tax returns may be subject to examination for an additional period of time depending on the jurisdiction. Management has analyzed the Funds’ tax positions taken for all open federal income tax years and has concluded that no provision for federal income tax is required in the Funds’ financial statements.
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. GAAP. Reclassifications are made to a Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.
For the year ended May 31, 2015, permanent book and tax differences resulting primarily from the reclassification of short-term capital gain distributions received from underlying funds from realized gain (loss) to ordinary income, and the utilization of tax equalization credits were identified and reclassified among the components of the Funds’ net assets. Net investment income and net realized gains (losses), as disclosed on the Statements of Operations, and net assets were not affected by these reclassifications.
Trustee compensation: The Funds pay the members of the Board of Trustees (“Board”), all of whom are independent, certain remuneration for their services, plus travel and other expenses. Trustees may elect to participate in a deferred compensation plan and defer all or a portion of their compensation. In addition, trustees participate in a long-term compensation plan. Amounts deferred are retained by the Funds until paid. Amounts payable to the trustees for compensation are included in the accompanying Statements of Assets and Liabilities. Trustees’ fees, including any deferred and long-term compensation incurred, are reflected in the Statements of Operations.
| 80 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
Note 2—valuation of investments
Portfolio investments are valued at fair value utilizing various valuation methods approved by the Board. U.S. GAAP establishes a hierarchy that prioritizes market inputs to valuation methods. The three levels of inputs are:
| • | Level 1 – quoted prices in active markets for identical securities |
| • | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.) |
| • | Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
A description of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value follows:
Investments in registered investment companies: These investments are valued at their net asset value on the valuation date. These investments are categorized in Level 1 of the fair value hierarchy.
Transfers between levels are recognized at the end of the reporting period. For the year ended May 31, 2015, there were no transfers between levels by the Funds.
As of May 31, 2015, all of the investments in the Funds were valued based on Level 1 inputs.
Note 3—investment adviser and affiliates
Under the terms of its Investment Management Agreement, each Fund pays Advisors a monthly fee based on the annual rate of 0.10% of the Fund’s average daily net assets for the management of the Fund’s investment portfolio. Advisors has contractually agreed to waive its 0.10% management fee on each Lifecycle Fund through at least September 30, 2015. The Funds have entered into an Administrative Service Agreement with Advisors under which the Funds pay Advisors for its costs in providing certain administrative and compliance services to the Funds.
Under the terms of a Retirement Class Service Agreement with respect to each Fund, the Retirement Class of the Fund pays Advisors a monthly fee based on the annual rate of 0.25% of a Fund’s average daily net assets attributable to Retirement Class shares of a Fund for providing certain administrative services related to the
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 81 |
Notes to financial statements
maintenance of Retirement Class shares on retirement plan or other platforms. Substantially all of the Retirement Class shareholder servicing fees reported on the Statements of Operations are paid to Advisors under the Service Agreement.
Under the terms of the distribution Rule 12b-1 plan, the Retirement Class of each Fund and the Retail Class of the Retirement Income Fund compensated TPIS for providing distribution, promotional and/or shareholder services to the Retirement Class of each Fund and the Retail Class of the Retirement Income Fund at the maximum annual rates of 0.05% and 0.25% of the average daily net assets attributable to each Fund’s Retirement Class and the Retirement Income Fund’s Retail Class, respectively. However, TPIS has agreed not to seek any reimbursements under the distribution Rule 12b-1 plan from the Retirement Class through September 30, 2015. This agreement may be terminated before this date with the approval of the Board. The Premier Class of each Fund is subject to a distribution Rule 12b-1 plan that compensated TPIS for providing distribution, promotional and/or shareholder services to the Premier Class of the Fund at the annual rate of 0.15% of average daily net assets attributable to the Fund’s Premier Class.
Advisors has agreed to reimburse each Fund if its total expense ratio (excluding interest, taxes, brokerage commissions and other transactional expenses, acquired fund fees and expenses and extraordinary expenses) exceeds 0.00% of average daily net assets for the Institutional Class shares; 0.15% of average daily net assets for the Premier Class shares; 0.25% of average daily net assets for the Retirement Class shares; and 0.25% of average daily net assets for the Retail Class shares of the Retirement Income Fund. The expense reimbursement arrangements will continue through at least September 30, 2015, unless changed with approval of the Board.
The following is the percentage of the Funds’ shares owned by TIAA and its registered separate account (collectively “TIAA Access”) as of May 31, 2015:
| Fund | TIAA | TIAA Access | ||||||
| Lifecycle Retirement Income | — | % | 8 | % | ||||
| Lifecycle 2010 | — | 8 | ||||||
| Lifecycle 2015 | — | 9 | ||||||
| Lifecycle 2020 | — | 9 | ||||||
| Lifecycle 2025 | — | 9 | ||||||
| Lifecycle 2030 | — | 9 | ||||||
| Lifecycle 2035 | — | 9 | ||||||
| Lifecycle 2040 | — | 9 | ||||||
| Lifecycle 2045 | — | 11 | ||||||
| Lifecycle 2050 | — | 15 | ||||||
| Lifecycle 2055 | 10 | 2 | ||||||
| Lifecycle 2060 | 94 | — | ||||||
| 82 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
Investments in other investment companies advised by Advisors are deemed to be affiliated investments. The Funds invest their assets in Institutional Class shares of the affiliated TIAA-CREF Funds. Information regarding transactions with affiliated companies is as follows:
| Value at | Purchases | Sales | Realized | Dividend | Value at | |||||||||||||||||||
| Issue | May 31, 2014 | cost | proceeds | gain (loss | )a | income | May 31, 2015 | |||||||||||||||||
| Lifecycle Retirement Income Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond | $ | 75,513,293 | $ | 26,895,721 | $ | 10,212,660 | $ | 671,997 | $ | 1,993,692 | $ | 92,158,556 | ||||||||||||
| TIAA-CREF Bond Plus | 33,001,056 | 8,853,698 | 1,057,268 | 444,276 | 986,472 | 40,601,702 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Debt | — | 3,844,105 | 181,041 | (4,768 | ) | 50,843 | 3,659,464 | |||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 7,414,628 | 3,043,741 | 767,433 | (53,418 | ) | 103,226 | 9,320,689 | |||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 9,001,491 | 4,411,254 | 1,004,119 | 283,661 | 347,196 | 11,790,552 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 16,044,408 | 5,872,693 | 3,679,321 | 1,653,581 | 190,505 | 19,001,844 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 15,524,166 | 5,617,169 | 3,284,257 | 1,510,413 | 258,974 | 17,617,079 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 1,957,141 | 923,895 | 288,771 | (47,703 | ) | 36,925 | 2,225,445 | |||||||||||||||||
| TIAA-CREF Growth & Income | 13,356,160 | 4,203,846 | 1,532,087 | 1,348,101 | 165,914 | 16,574,010 | ||||||||||||||||||
| TIAA-CREF High-Yield | 12,026,222 | 5,562,441 | 6,145,096 | 46,186 | 508,087 | 11,094,473 | ||||||||||||||||||
| TIAA-CREF Inflation-Linked Bond | 15,258,903 | 24,394,784 | 2,152,516 | 4,037 | 279,563 | 36,914,332 | ||||||||||||||||||
| TIAA-CREF International Equity | 9,906,118 | 6,553,199 | 2,738,706 | 2,181 | 169,711 | 14,018,827 | ||||||||||||||||||
| TIAA-CREF International Opportunities | 9,688,239 | 2,958,880 | 1,948,127 | (40,436 | ) | 105,301 | 11,107,686 | |||||||||||||||||
| TIAA-CREF Large-Cap Growth | 15,996,113 | 7,954,907 | 4,829,168 | 2,143,577 | 51,380 | 20,185,979 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 15,337,765 | 4,976,480 | 2,159,959 | 830,805 | 296,321 | 18,692,241 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 395,871 | 339,645 | 327,196 | 88,243 | 1,869 | 405,229 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 287,167 | 265,397 | 286,214 | 101,294 | 4,672 | 277,711 | ||||||||||||||||||
| TIAA-CREF Money Market | 27,890 | — | — | — | — | 27,890 | ||||||||||||||||||
| TIAA-CREF Short-Term Bond | 44,861,967 | 11,632,788 | 19,137,632 | (70,580 | ) | 577,468 | 37,078,757 | |||||||||||||||||
| TIAA-CREF Small-Cap Equity | 6,464,858 | 3,800,541 | 2,110,442 | 910,500 | 51,764 | 8,099,674 | ||||||||||||||||||
| $ | 302,063,456 | $ | 132,105,184 | $ | 63,842,013 | $ | 9,821,947 | $ | 6,179,883 | $ | 370,852,140 | |||||||||||||
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 83 |
Notes to financial statements
| Value at | Purchases | Sales | Realized | Dividend | Value at | |||||||||||||||||||
| Issue | May 31, 2014 | cost | proceeds | gain (loss | )a | income | May 31, 2015 | |||||||||||||||||
| Lifecycle 2010 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond | $ | 257,660,401 | $ | 48,832,121 | $ | 41,097,336 | $ | 2,141,309 | $ | 6,123,080 | $ | 265,262,445 | ||||||||||||
| TIAA-CREF Bond Plus | 118,303,534 | 12,998,154 | 9,333,233 | 1,441,178 | 3,178,400 | 121,332,218 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Debt | — | 11,845,377 | 856,997 | (22,387 | ) | 158,168 | 10,968,801 | |||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 29,767,861 | 5,991,832 | 3,556,697 | (106,744 | ) | 367,169 | 30,865,194 | |||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 37,739,461 | 9,097,261 | 4,394,663 | 1,299,423 | 1,275,934 | 40,021,293 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 66,381,857 | 11,574,512 | 16,209,892 | 6,324,727 | 696,720 | 64,630,985 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 64,293,019 | 11,191,908 | 14,509,706 | 6,179,401 | 943,342 | 60,200,504 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 8,096,288 | 1,822,398 | 1,058,310 | (131,803 | ) | 132,346 | 7,537,604 | |||||||||||||||||
| TIAA-CREF Growth & Income | 55,397,980 | 7,701,987 | 8,950,405 | 5,058,579 | 617,069 | 56,149,311 | ||||||||||||||||||
| TIAA-CREF High-Yield | 43,099,822 | 12,926,937 | 21,707,029 | 146,219 | 1,640,037 | 33,144,838 | ||||||||||||||||||
| TIAA-CREF Inflation-Linked Bond | 55,786,085 | 42,121,874 | 7,004,500 | 1,954 | 1,000,324 | 89,135,764 | ||||||||||||||||||
| TIAA-CREF International Equity | 40,670,253 | 16,389,667 | 11,209,273 | 193,474 | 614,473 | 46,438,137 | ||||||||||||||||||
| TIAA-CREF International Opportunities | 39,478,347 | 4,096,827 | 7,370,921 | (4,229 | ) | 377,140 | 37,474,392 | |||||||||||||||||
| TIAA-CREF Large-Cap Growth | 66,321,001 | 17,267,761 | 19,282,530 | 8,362,809 | 187,301 | 68,366,735 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 63,500,669 | 7,422,824 | 10,381,832 | 3,342,311 | 1,082,131 | 62,571,976 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 2,103,822 | 661,936 | 1,004,110 | 325,960 | 8,711 | 1,756,423 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 1,669,288 | 376,216 | 750,613 | 218,619 | 22,108 | 1,364,554 | ||||||||||||||||||
| TIAA-CREF Money Market | 58,956 | — | — | — | — | 58,956 | ||||||||||||||||||
| TIAA-CREF Short-Term Bond | 106,831,865 | 12,124,912 | 30,324,070 | (116,482 | ) | 1,310,527 | 88,009,424 | |||||||||||||||||
| TIAA-CREF Small-Cap Equity | 26,815,469 | 9,563,000 | 9,054,396 | 3,724,945 | 188,585 | 27,129,424 | ||||||||||||||||||
| $ | 1,083,975,978 | $ | 244,007,504 | $ | 218,056,513 | $ | 38,379,263 | $ | 19,923,565 | $ | 1,112,418,978 | |||||||||||||
| 84 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
| Value at | Purchases | Sales | Realized | Dividend | Value at | |||||||||||||||||||
| Issue | May 31, 2014 | cost | proceeds | gain (loss | )a | income | May 31, 2015 | |||||||||||||||||
| Lifecycle 2015 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond | $ | 372,237,572 | $ | 93,456,503 | $ | 53,192,628 | $ | 4,428,614 | $ | 9,244,872 | $ | 412,338,205 | ||||||||||||
| TIAA-CREF Bond Plus | 184,237,639 | 24,198,531 | 11,117,629 | 2,701,937 | 5,076,089 | 196,311,153 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Debt | — | 19,145,075 | 1,364,206 | 17,948 | 254,464 | 17,749,195 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 50,749,909 | 10,663,934 | 4,629,159 | 359,798 | 641,209 | 54,389,698 | ||||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 66,357,900 | 15,709,192 | 5,666,291 | 3,320,687 | 2,293,617 | 71,975,909 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 115,633,910 | 19,584,964 | 23,354,155 | 16,395,519 | 1,249,763 | 116,980,270 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 112,060,496 | 19,044,354 | 20,526,298 | 16,218,559 | 1,691,023 | 109,110,135 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 14,115,776 | 3,273,215 | 1,406,155 | 28,040 | 240,978 | 13,605,586 | ||||||||||||||||||
| TIAA-CREF Growth & Income | 96,588,544 | 15,833,034 | 14,642,181 | 13,428,440 | 1,101,759 | 101,441,617 | ||||||||||||||||||
| TIAA-CREF High-Yield | 66,291,417 | 22,442,194 | 33,286,953 | 1,514,579 | 2,617,639 | 53,575,625 | ||||||||||||||||||
| TIAA-CREF Inflation-Linked Bond | 86,443,603 | 30,730,731 | 6,407,920 | 492,076 | 1,584,186 | 108,221,736 | ||||||||||||||||||
| TIAA-CREF International Equity | 71,720,947 | 27,723,456 | 18,376,186 | 4,949,075 | 1,088,653 | 82,109,139 | ||||||||||||||||||
| TIAA-CREF International Opportunities | 69,292,382 | 7,191,517 | 11,232,432 | 918,210 | 662,774 | 67,597,194 | ||||||||||||||||||
| TIAA-CREF Large-Cap Growth | 115,581,883 | 30,460,590 | 31,187,259 | 26,021,394 | 334,531 | 122,117,644 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 110,570,486 | 13,478,999 | 14,723,659 | 10,317,417 | 1,937,236 | 112,856,441 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 4,237,343 | 1,505,375 | 1,943,416 | 733,185 | 18,185 | 3,770,884 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 3,492,719 | 568,140 | 1,207,528 | 494,830 | 47,111 | 2,996,481 | ||||||||||||||||||
| TIAA-CREF Money Market | 143,145 | — | — | — | — | 143,145 | ||||||||||||||||||
| TIAA-CREF Short-Term Bond | 100,088,040 | 16,682,534 | 9,706,748 | 376,650 | 1,348,984 | 106,486,716 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 46,799,203 | 16,300,579 | 13,817,463 | 10,408,719 | 336,151 | 48,906,733 | ||||||||||||||||||
| $ | 1,686,642,914 | $ | 387,992,917 | $ | 277,788,266 | $ | 113,125,677 | $ | 31,769,224 | $ | 1,802,683,506 | |||||||||||||
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 85 |
Notes to financial statements
| Value at | Purchases | Sales | Realized | Dividend | Value at | |||||||||||||||||||
| Issue | May 31, 2014 | cost | proceeds | gain (loss | )a | income | May 31, 2015 | |||||||||||||||||
| Lifecycle 2020 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond | $ | 432,819,374 | $ | 165,478,858 | $ | 63,368,879 | $ | 5,479,884 | $ | 11,447,692 | $ | 534,722,578 | ||||||||||||
| TIAA-CREF Bond Plus | 265,537,206 | 52,903,696 | 8,407,902 | 3,844,945 | 7,638,165 | 308,519,103 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Debt | — | 29,408,380 | 1,415,450 | 21,560 | 390,089 | 27,964,271 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 82,231,577 | 23,955,617 | 6,465,646 | 532,951 | 1,090,182 | 95,740,526 | ||||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 110,984,123 | 33,388,160 | 6,532,964 | 5,414,067 | 4,040,148 | 130,432,937 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 191,871,024 | 40,666,547 | 27,532,282 | 25,577,461 | 2,192,377 | 213,812,288 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 185,845,682 | 40,616,642 | 24,380,065 | 25,105,870 | 2,972,201 | 199,396,180 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 23,485,203 | 7,304,774 | 1,172,822 | 79,394 | 419,421 | 25,454,093 | ||||||||||||||||||
| TIAA-CREF Growth & Income | 160,320,929 | 34,885,088 | 17,490,643 | 20,639,162 | 1,902,636 | 183,959,289 | ||||||||||||||||||
| TIAA-CREF High-Yield | 101,368,751 | 36,429,826 | 49,773,717 | 3,076,719 | 4,118,804 | 85,087,339 | ||||||||||||||||||
| TIAA-CREF Inflation-Linked Bond | 85,827,983 | 35,666,088 | 5,895,619 | 545,325 | 1,600,474 | 113,129,291 | ||||||||||||||||||
| TIAA-CREF International Equity | 119,049,072 | 49,111,530 | 22,269,221 | 6,298,899 | 1,856,739 | 147,976,574 | ||||||||||||||||||
| TIAA-CREF International Opportunities | 114,520,343 | 18,711,014 | 14,053,869 | 1,236,659 | 1,155,076 | 123,699,326 | ||||||||||||||||||
| TIAA-CREF Large-Cap Growth | 191,881,975 | 55,535,005 | 37,830,867 | 39,299,715 | 583,881 | 221,990,838 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 183,872,882 | 30,477,816 | 14,556,867 | 14,316,709 | 3,361,790 | 205,909,168 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 8,061,533 | 2,726,686 | 2,524,494 | 1,491,390 | 36,955 | 8,230,434 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 6,796,303 | 1,527,274 | 1,768,641 | 849,923 | 99,791 | 6,863,750 | ||||||||||||||||||
| TIAA-CREF Money Market | 191,587 | — | — | — | — | 191,587 | ||||||||||||||||||
| TIAA-CREF Short-Term Bond | 85,802,974 | 26,730,602 | 1,197,052 | 120,224 | 1,269,883 | 110,821,427 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 77,674,226 | 30,923,911 | 18,765,264 | 17,075,364 | 585,462 | 89,175,577 | ||||||||||||||||||
| $ | 2,428,142,747 | $ | 716,447,514 | $ | 325,402,264 | $ | 171,006,221 | $ | 46,761,766 | $ | 2,833,076,576 | |||||||||||||
| 86 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
| Value at | Purchases | Sales | Realized | Dividend | Value at | |||||||||||||||||||
| Issue | May 31, 2014 | cost | proceeds | gain (loss | )a | income | May 31, 2015 | |||||||||||||||||
| Lifecycle 2025 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond | $ | 316,073,151 | $ | 150,282,105 | $ | 64,044,402 | $ | 4,343,112 | $ | 8,563,069 | $ | 402,203,093 | ||||||||||||
| TIAA-CREF Bond Plus | 260,210,406 | 60,618,318 | 7,861,505 | 3,840,599 | 7,584,174 | 311,426,146 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Debt | — | 29,938,646 | 1,514,059 | 27,419 | 393,632 | 28,399,394 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 90,995,416 | 26,340,413 | 4,985,932 | 503,993 | 1,221,174 | 107,865,171 | ||||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 125,978,380 | 39,436,035 | 6,626,584 | 6,141,918 | 4,657,561 | 150,219,236 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 216,250,322 | 49,529,363 | 27,733,524 | 28,871,294 | 2,506,985 | 248,030,325 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 210,026,229 | 50,131,617 | 26,258,541 | 28,574,812 | 3,406,105 | 230,896,463 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 26,493,415 | 8,969,746 | 1,893,248 | 86,056 | 475,349 | 28,877,061 | ||||||||||||||||||
| TIAA-CREF Growth & Income | 180,871,988 | 40,501,417 | 16,596,419 | 22,625,097 | 2,170,390 | 211,947,764 | ||||||||||||||||||
| TIAA-CREF High-Yield | 125,756,792 | 40,428,010 | 47,447,759 | 3,595,273 | 5,551,210 | 114,698,447 | ||||||||||||||||||
| TIAA-CREF Inflation-Linked Bond | 37,116,815 | 22,792,745 | 1,817,959 | 105,553 | 709,558 | 56,961,365 | ||||||||||||||||||
| TIAA-CREF International Equity | 134,301,967 | 51,460,042 | 19,374,991 | 5,498,855 | 2,094,022 | 168,613,876 | ||||||||||||||||||
| TIAA-CREF International Opportunities | 128,737,394 | 22,435,701 | 14,014,302 | 1,257,622 | 1,316,699 | 142,448,000 | ||||||||||||||||||
| TIAA-CREF Large-Cap Growth | 216,537,079 | 61,798,443 | 35,878,767 | 42,734,994 | 670,398 | 256,483,664 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 207,810,726 | 33,806,943 | 10,008,840 | 13,832,140 | 3,846,452 | 238,407,070 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 9,989,507 | 3,446,033 | 2,745,929 | 1,873,879 | 46,868 | 10,620,443 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 8,524,379 | 1,743,542 | 1,582,917 | 906,203 | 126,684 | 9,086,194 | ||||||||||||||||||
| TIAA-CREF Money Market | 187,740 | — | — | — | — | 187,740 | ||||||||||||||||||
| TIAA-CREF Short-Term Bond | 37,118,614 | 18,858,340 | 478,197 | 40,419 | 596,481 | 55,262,883 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 87,694,063 | 33,712,174 | 17,488,313 | 18,679,984 | 672,646 | 103,028,644 | ||||||||||||||||||
| $ | 2,420,674,383 | $ | 746,229,633 | $ | 308,352,188 | $ | 183,539,222 | $ | 46,609,457 | $ | 2,875,662,979 | |||||||||||||
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 87 |
Notes to financial statements
| Value at | Purchases | Sales | Realized | Dividend | Value at | |||||||||||||||||||
| Issue | May 31, 2014 | cost | proceeds | gain (loss | )a | income | May 31, 2015 | |||||||||||||||||
| Lifecycle 2030 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond | $ | 209,864,237 | $ | 126,867,374 | $ | 57,939,974 | $ | 3,474,145 | $ | 5,921,628 | $ | 278,803,848 | ||||||||||||
| TIAA-CREF Bond Plus | 210,095,960 | 72,646,317 | 8,105,675 | 3,302,109 | 6,381,553 | 273,315,980 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Debt | — | 28,511,227 | 978,903 | 16,789 | 382,731 | 27,505,981 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 95,852,318 | 30,006,778 | 5,156,017 | 517,556 | 1,296,758 | 115,938,476 | ||||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 135,444,809 | 43,461,285 | 6,228,983 | 6,465,553 | 5,049,154 | 163,369,243 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 231,168,373 | 55,028,105 | 25,771,550 | 30,686,320 | 2,707,635 | 271,097,633 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 224,447,404 | 53,967,503 | 23,031,277 | 29,553,617 | 3,672,963 | 252,154,045 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 28,344,729 | 10,116,817 | 2,303,423 | 80,799 | 511,825 | 31,105,884 | ||||||||||||||||||
| TIAA-CREF Growth & Income | 193,459,428 | 43,681,203 | 14,202,407 | 23,197,983 | 2,337,715 | 230,578,349 | ||||||||||||||||||
| TIAA-CREF High-Yield | 138,906,594 | 49,291,424 | 44,475,501 | 3,720,821 | 6,553,693 | 138,933,852 | ||||||||||||||||||
| TIAA-CREF International Equity | 143,160,684 | 53,247,048 | 16,873,416 | 4,872,790 | 2,250,008 | 181,710,483 | ||||||||||||||||||
| TIAA-CREF International Opportunities | 137,303,314 | 24,847,444 | 13,011,276 | 1,268,901 | 1,424,033 | 154,910,155 | ||||||||||||||||||
| TIAA-CREF Large-Cap Growth | 231,638,478 | 64,028,736 | 30,391,030 | 42,988,755 | 721,401 | 280,417,488 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 222,145,278 | 36,166,331 | 6,607,692 | 13,317,502 | 4,137,152 | 258,982,398 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 11,456,911 | 3,241,617 | 2,231,443 | 2,145,223 | 54,030 | 12,389,998 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 9,873,069 | 1,877,411 | 1,345,300 | 924,815 | 147,777 | 10,872,601 | ||||||||||||||||||
| TIAA-CREF Money Market | 180,563 | — | — | — | — | 180,563 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 93,886,903 | 34,274,739 | 14,862,108 | 19,259,828 | 723,667 | 112,296,960 | ||||||||||||||||||
| ’ | $ | 2,317,229,052 | $ | 731,261,359 | $ | 273,515,975 | $ | 185,793,506 | $ | 44,273,723 | $ | 2,794,563,937 | ||||||||||||
| 88 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
| Value at | Purchases | Sales | Realized | Dividend | Value at | |||||||||||||||||||
| Issue | May 31, 2014 | cost | proceeds | gain (loss | )a | income | May 31, 2015 | |||||||||||||||||
| Lifecycle 2035 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond | $ | 97,348,080 | $ | 117,492,351 | $ | 49,642,256 | $ | 2,475,299 | $ | 3,366,961 | $ | 165,275,071 | ||||||||||||
| TIAA-CREF Bond Plus | 141,654,456 | 38,585,498 | 13,888,601 | 2,489,604 | 4,061,241 | 165,549,162 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Debt | — | 29,742,771 | 1,992,935 | 28,908 | 384,732 | 27,718,476 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 106,507,837 | 34,099,844 | 7,578,187 | 750,449 | 1,435,330 | 127,684,152 | ||||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 152,954,117 | 48,048,846 | 8,338,648 | 7,562,104 | 5,685,475 | 181,937,422 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 260,511,037 | 57,124,133 | 26,849,025 | 34,076,090 | 3,045,520 | 302,614,535 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 252,987,277 | 55,647,359 | 23,440,393 | 32,493,380 | 4,123,234 | 281,487,942 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 31,866,241 | 10,740,445 | 2,293,962 | 98,425 | 577,149 | 34,652,178 | ||||||||||||||||||
| TIAA-CREF Growth & Income | 217,523,556 | 44,447,287 | 13,737,897 | 25,319,001 | 2,624,819 | 256,640,974 | ||||||||||||||||||
| TIAA-CREF High-Yield | 141,788,819 | 50,363,965 | 47,390,301 | 3,690,586 | 6,631,549 | 139,912,465 | ||||||||||||||||||
| TIAA-CREF International Equity | 161,440,700 | 57,136,307 | 19,636,702 | 5,801,594 | 2,497,776 | 201,084,905 | ||||||||||||||||||
| TIAA-CREF International Opportunities | 153,898,259 | 26,096,467 | 13,871,116 | 1,405,925 | 1,586,426 | 172,493,361 | ||||||||||||||||||
| TIAA-CREF Large-Cap Growth | 260,271,142 | 67,730,179 | 32,504,842 | 47,076,498 | 808,526 | 312,385,193 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 250,877,470 | 38,376,243 | 8,190,387 | 15,488,802 | 4,635,006 | 289,145,928 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 13,563,166 | 3,450,336 | 2,119,232 | 2,436,805 | 63,499 | 14,788,989 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 11,774,192 | 2,159,326 | 1,437,499 | 1,043,306 | 175,727 | 13,054,738 | ||||||||||||||||||
| TIAA-CREF Money Market | 186,513 | — | — | — | — | 186,513 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 105,740,004 | 35,352,288 | 13,647,117 | 20,960,002 | 814,536 | 126,219,741 | ||||||||||||||||||
| $ | 2,360,892,866 | $ | 716,593,645 | $ | 286,559,100 | $ | 203,196,778 | $ | 42,517,506 | $ | 2,812,831,745 | |||||||||||||
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 89 |
Notes to financial statements
| Value at | Purchases | Sales | Realized | Dividend | Value at | |||||||||||||||||||
| Issue | May 31, 2014 | cost | proceeds | gain (loss | )a | income | May 31, 2015 | |||||||||||||||||
| Lifecycle 2040 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Plus | $ | 123,129,110 | $ | 98,114,170 | $ | 76,080,880 | $ | 3,915,830 | $ | 4,124,957 | $ | 144,516,234 | ||||||||||||
| TIAA-CREF Emerging Markets Debt | — | 38,479,638 | 2,825,113 | 37,598 | 499,279 | 35,604,055 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 147,943,801 | 47,486,737 | 8,703,481 | 839,498 | 1,996,544 | 179,224,473 | ||||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 216,059,869 | 65,800,775 | 9,817,775 | 10,276,505 | 8,017,034 | 256,907,123 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 366,328,859 | 76,874,609 | 32,240,722 | 46,208,222 | 4,289,916 | 427,634,756 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 354,751,443 | 75,516,489 | 26,901,060 | 43,905,672 | 5,801,772 | 398,086,271 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 44,739,857 | 15,832,737 | 3,677,120 | 86,682 | 816,838 | 48,881,827 | ||||||||||||||||||
| TIAA-CREF Growth & Income | 305,150,208 | 61,776,791 | 16,755,146 | 34,688,515 | 3,692,012 | 361,934,494 | ||||||||||||||||||
| TIAA-CREF High-Yield | 185,333,351 | 63,980,735 | 62,449,946 | 4,366,457 | 8,607,871 | 180,489,214 | ||||||||||||||||||
| TIAA-CREF International Equity | 226,592,970 | 80,480,274 | 27,285,930 | 8,198,467 | 3,485,343 | 282,662,286 | ||||||||||||||||||
| TIAA-CREF International Opportunities | 214,352,348 | 32,405,578 | 12,349,328 | 1,335,317 | 2,234,164 | 243,268,242 | ||||||||||||||||||
| TIAA-CREF Large-Cap Growth | 364,287,940 | 97,817,437 | 45,353,462 | 66,102,638 | 1,134,276 | 440,553,498 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 351,751,567 | 56,631,418 | 12,478,255 | 22,295,588 | 6,543,914 | 407,131,367 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 19,655,179 | 5,530,416 | 2,869,888 | 3,591,267 | 93,297 | 22,154,064 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 17,151,603 | 2,968,524 | 1,628,877 | 1,370,100 | 256,619 | 19,313,666 | ||||||||||||||||||
| TIAA-CREF Money Market | 273,442 | — | — | — | — | 273,442 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 148,458,630 | 47,045,772 | 15,519,749 | 28,038,123 | 1,142,274 | 178,242,496 | ||||||||||||||||||
| $ | 3,085,960,177 | $ | 866,742,100 | $ | 356,936,732 | $ | 275,256,479 | $ | 52,736,110 | $ | 3,626,877,508 | |||||||||||||
| Lifecycle 2045 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Plus | $ | 38,696,961 | $ | 38,701,302 | $ | 23,148,888 | $ | 695,284 | $ | 1,419,256 | $ | 54,014,492 | ||||||||||||
| TIAA-CREF Emerging Markets Debt | — | 13,634,158 | 449,434 | (10,501 | ) | 178,263 | 13,174,386 | |||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 46,318,843 | 26,025,037 | 2,906,621 | (189,397 | ) | 689,899 | 66,975,719 | |||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 67,543,365 | 36,502,146 | 2,954,431 | 2,642,272 | 2,770,640 | 96,243,829 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 115,312,197 | 45,130,853 | 7,253,378 | 10,838,889 | 1,480,595 | 158,868,063 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 111,491,037 | 43,289,968 | 5,224,092 | 10,940,889 | 2,003,055 | 147,665,030 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 14,186,862 | 7,752,011 | 1,153,228 | (189,480 | ) | 277,963 | 18,066,490 | |||||||||||||||||
| TIAA-CREF Growth & Income | 95,892,930 | 35,451,054 | 1,030,560 | 9,331,428 | 1,255,717 | 134,351,959 | ||||||||||||||||||
| TIAA-CREF High-Yield | 58,246,499 | 27,983,503 | 17,069,284 | 226,179 | 2,962,177 | 67,077,366 | ||||||||||||||||||
| TIAA-CREF International Equity | 70,816,942 | 39,504,054 | 6,758,322 | (270,983 | ) | 1,193,079 | 105,277,576 | |||||||||||||||||
| TIAA-CREF International Opportunities | 67,401,417 | 22,289,220 | 3,463,010 | (59,121 | ) | 781,209 | 89,784,779 | |||||||||||||||||
| TIAA-CREF Large-Cap Growth | 114,652,928 | 51,763,035 | 11,083,292 | 14,123,081 | 391,461 | 163,397,760 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 111,024,956 | 38,170,920 | 1,772,048 | 5,821,517 | 2,261,910 | 151,278,305 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 6,120,983 | 2,726,612 | 455,774 | 973,211 | 32,356 | 8,323,026 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 5,368,356 | 1,898,859 | 385,713 | 278,501 | 88,510 | 7,162,694 | ||||||||||||||||||
| TIAA-CREF Money Market | 81,020 | — | — | — | — | 81,020 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 46,698,816 | 23,378,301 | 3,314,224 | 6,787,855 | 394,057 | 66,164,818 | ||||||||||||||||||
| $ | 969,854,112 | $ | 454,201,033 | $ | 88,422,299 | $ | 61,939,624 | $ | 18,180,147 | $ | 1,347,907,312 | |||||||||||||
| 90 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
| Issue | Value at May 31, 2014 | Purchases cost | Sales proceeds | Realized gain (loss | )a | Dividend income | Value at May 31, 2015 | |||||||||||||||||
| Lifecycle 2050 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Plus | $ | 21,812,428 | $ | 23,059,160 | $ | 13,041,905 | $ | 398,269 | $ | 818,206 | $ | 31,694,189 | ||||||||||||
| TIAA-CREF Emerging Markets Debt | — | 7,817,966 | 127,930 | (2,760 | ) | 102,494 | 7,686,306 | |||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 26,128,159 | 15,787,674 | 1,322,659 | (100,884 | ) | 396,558 | 39,174,542 | |||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 38,087,943 | 22,724,503 | 1,500,765 | 1,513,453 | 1,592,443 | 56,554,031 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 64,998,415 | 28,201,423 | 3,706,959 | 6,230,841 | 851,427 | 92,777,333 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 62,844,457 | 27,599,116 | 3,165,280 | 6,292,702 | 1,152,205 | 86,194,279 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 7,999,434 | 4,969,006 | 878,117 | (150,409 | ) | 159,768 | 10,529,338 | |||||||||||||||||
| TIAA-CREF Growth & Income | 54,052,244 | 22,335,550 | 315,385 | 5,371,780 | 721,670 | 78,423,220 | ||||||||||||||||||
| TIAA-CREF High-Yield | 32,831,958 | 16,749,466 | 9,194,595 | 137,325 | 1,706,403 | 39,193,456 | ||||||||||||||||||
| TIAA-CREF International Equity | 39,900,116 | 24,218,506 | 3,505,979 | (175,041 | ) | 688,323 | 61,676,912 | |||||||||||||||||
| TIAA-CREF International Opportunities | 37,976,638 | 14,607,064 | 2,367,344 | (63,286 | ) | 449,004 | 52,322,322 | |||||||||||||||||
| TIAA-CREF Large-Cap Growth | 64,626,764 | 31,995,311 | 5,789,409 | 8,101,339 | 225,046 | 95,513,657 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 62,581,777 | 23,961,612 | 581,993 | 3,343,313 | 1,300,388 | 88,184,265 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 3,447,250 | 1,598,185 | 182,294 | 558,589 | 18,602 | 4,821,272 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 3,025,997 | 1,227,876 | 237,537 | 160,039 | 50,968 | 4,180,971 | ||||||||||||||||||
| TIAA-CREF Money Market | 41,882 | — | — | — | — | 41,882 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 26,324,831 | 14,705,331 | 2,078,445 | 3,891,970 | 226,080 | 38,621,332 | ||||||||||||||||||
| $ | 546,680,293 | $ | 281,557,749 | $ | 47,996,596 | $ | 35,507,240 | $ | 10,459,585 | $ | 787,589,307 | |||||||||||||
| Lifecycle 2055 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Plus | $ | 3,125,681 | $ | 4,523,368 | $ | 1,938,442 | $ | 63,360 | $ | 131,296 | $ | 5,688,437 | ||||||||||||
| TIAA-CREF Emerging Markets Debt | — | 1,395,145 | 15,543 | (352 | ) | 17,189 | 1,380,326 | |||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 3,751,860 | 3,802,301 | 316,349 | (25,975 | ) | 63,187 | 7,029,644 | |||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 5,489,168 | 5,459,615 | 333,102 | 236,800 | 253,984 | 10,218,870 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 9,313,507 | 7,697,713 | 896,441 | 985,765 | 136,204 | 16,643,779 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 9,004,890 | 7,495,548 | 874,185 | 994,922 | 183,704 | 15,462,422 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 1,145,846 | 1,129,557 | 146,418 | (22,489 | ) | 25,869 | 1,879,087 | |||||||||||||||||
| TIAA-CREF Growth & Income | 7,745,067 | 6,181,444 | 286,934 | 850,819 | 114,539 | 14,030,132 | ||||||||||||||||||
| TIAA-CREF High-Yield | 4,704,638 | 3,772,556 | 1,229,936 | 29,399 | 273,662 | 7,069,044 | ||||||||||||||||||
| TIAA-CREF International Equity | 5,698,564 | 5,709,847 | 595,039 | (43,518 | ) | 110,421 | 11,073,649 | |||||||||||||||||
| TIAA-CREF International Opportunities | 5,409,787 | 4,012,828 | 439,028 | (20,907 | ) | 71,558 | 9,396,288 | |||||||||||||||||
| TIAA-CREF Large-Cap Growth | 9,260,387 | 8,205,504 | 1,148,786 | 1,274,352 | 36,088 | 17,062,381 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 8,967,282 | 6,896,133 | 395,409 | 528,641 | 207,399 | 15,835,067 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 501,657 | 452,595 | 72,642 | 87,368 | 2,966 | 875,505 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 433,592 | 341,465 | 48,065 | 25,353 | 8,124 | 753,708 | ||||||||||||||||||
| TIAA-CREF Money Market | 6,591 | — | — | — | — | 6,591 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 3,772,276 | 3,667,826 | 471,322 | 611,973 | 36,159 | 6,923,839 | ||||||||||||||||||
| $ | 78,330,793 | $ | 70,743,445 | $ | 9,207,641 | $ | 5,575,511 | $ | 1,672,349 | $ | 141,328,769 | |||||||||||||
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 91 |
Notes to financial statements
| Value at | Purchases | Sales | Realized | Dividend | Value at | |||||||||||||||||||
| Issue | May 31, 2014 | cost | proceeds | gain (loss | )a | income | May 31, 2015 | |||||||||||||||||
| Lifecycle 2060 Fund* | ||||||||||||||||||||||||
| TIAA-CREF Bond Plus | $— | $ | 696,510 | $ | 248,410 | $ | 7,525 | $ | 9,200 | $ | 449,483 | |||||||||||||
| TIAA-CREF Emerging Markets Debt | — | 121,131 | 8,591 | (226 | ) | 1,543 | 112,388 | |||||||||||||||||
| TIAA-CREF Emerging Markets Equity | — | 606,579 | 22,893 | (621 | ) | 6,283 | 564,891 | |||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | — | 863,432 | 30,332 | 24,834 | 25,090 | 816,321 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | — | 1,423,810 | 76,872 | 98,679 | 13,451 | 1,355,454 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | — | 1,400,780 | 91,630 | 97,579 | 18,306 | 1,262,541 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | — | 182,812 | 11,179 | (1,166 | ) | 2,527 | 154,991 | |||||||||||||||||
| TIAA-CREF Growth & Income | — | 1,204,725 | 65,473 | 84,448 | 6,150 | 1,145,214 | ||||||||||||||||||
| TIAA-CREF High-Yield | — | 635,398 | 59,575 | 4,351 | 17,470 | 570,950 | ||||||||||||||||||
| TIAA-CREF International Equity | — | 931,587 | 103,787 | 1,014 | 10,876 | 893,198 | ||||||||||||||||||
| TIAA-CREF International Opportunities | — | 769,957 | 61,135 | 597 | 7,011 | 764,702 | ||||||||||||||||||
| TIAA-CREF Large-Cap Growth | — | 1,493,550 | 106,497 | 127,846 | 3,562 | 1,398,843 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | — | 1,323,529 | 36,095 | 51,642 | 20,501 | 1,290,790 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | — | 80,372 | 6,197 | 8,594 | 294 | 71,547 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | — | 65,630 | 6,254 | 2,597 | 811 | 61,259 | ||||||||||||||||||
| TIAA-CREF Money Market | — | 100 | — | — | — | 100 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | — | 620,533 | 53,705 | 62,848 | 3,576 | 560,263 | ||||||||||||||||||
| $— | $ | 12,420,435 | $ | 988,625 | $ | 570,541 | $ | 146,651 | $ | 11,472,935 | ||||||||||||||
| * | The Fund commenced operations on September 26, 2014. |
| a | Includes realized gain distributions received. |
Note 4—investments
Net Unrealized appreciation (Depreciation): At May 31, 2015, net unrealized appreciation (depreciation) based on the aggregate cost of portfolio investments for federal income tax purposes, consisting of gross unrealized appreciation and gross unrealized depreciation, was as follows:
| Fund | Tax cost | Gross unrealized appreciation | Gross unrealized (depreciation | ) | Net unrealized appreciation (depreciation | ) | ||||||||||
| Lifecycle Retirement Income | $ | 342,128,043 | $ | 28,955,234 | $ | (231,137 | ) | $ | 28,724,097 | |||||||
| Lifecycle 2010 | 982,052,335 | 131,103,615 | (736,972 | ) | 130,366,643 | |||||||||||
| Lifecycle 2015 | 1,698,470,579 | 116,056,968 | (11,844,041 | ) | 104,212,927 | |||||||||||
| Lifecycle 2020 | 2,629,912,296 | 218,414,109 | (15,249,829 | ) | 203,164,280 | |||||||||||
| Lifecycle 2025 | 2,628,813,432 | 262,615,681 | (15,766,134 | ) | 246,849,547 | |||||||||||
| Lifecycle 2030 | 2,508,143,941 | 301,096,710 | (14,676,714 | ) | 286,419,996 | |||||||||||
| Lifecycle 2035 | 2,483,355,462 | 344,579,997 | (15,103,714 | ) | 329,476,283 | |||||||||||
| Lifecycle 2040 | 3,148,449,844 | 499,414,180 | (20,986,516 | ) | 478,427,664 | |||||||||||
| Lifecycle 2045 | 1,181,532,477 | 168,418,572 | (2,043,737 | ) | 166,374,835 | |||||||||||
| Lifecycle 2050 | 697,045,097 | 91,786,479 | (1,242,269 | ) | 90,544,210 | |||||||||||
| Lifecycle 2055 | 132,555,885 | 9,047,357 | (274,473 | ) | 8,772,884 | |||||||||||
| Lifecycle 2060 | 11,436,574 | 138,318 | (101,957 | ) | 36,361 | |||||||||||
| 92 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
Purchases and sales: Purchases and sales of securities (other than short-term instruments) for all of the Funds for the year ended May 31, 2015 were as follows:
| Fund | Purchases | Sales | ||||||
| Lifecycle Retirement Income | $ | 132,105,184 | $ | 63,842,013 | ||||
| Lifecycle 2010 | 244,007,504 | 218,056,513 | ||||||
| Lifecycle 2015 | 387,992,917 | 277,788,266 | ||||||
| Lifecycle 2020 | 716,447,514 | 325,402,264 | ||||||
| Lifecycle 2025 | 746,229,633 | 308,352,188 | ||||||
| Lifecycle 2030 | 731,261,359 | 273,515,975 | ||||||
| Lifecycle 2035 | 716,593,645 | 286,559,100 | ||||||
| Lifecycle 2040 | 866,742,100 | 356,936,732 | ||||||
| Lifecycle 2045 | 454,201,033 | 88,422,299 | ||||||
| Lifecycle 2050 | 281,557,749 | 47,996,596 | ||||||
| Lifecycle 2055 | 70,743,445 | 9,207,641 | ||||||
| Lifecycle 2060 | 12,603,107 | 1,171,929 | ||||||
Note 5—distributions to shareholders and other tax items
The tax character of distributions paid to shareholders during the years ended May 31, 2015 and May 31, 2014 was as follows:
| 5/31/2015 | ||||||||||||
| Fund | Ordinary income | Long-term capital gains | Total | |||||||||
| Lifecycle Retirement Income | $ | 8,296,812 | $ | 3,833,564 | $ | 12,130,376 | ||||||
| Lifecycle 2010 | 31,515,393 | 19,629,662 | 51,145,055 | |||||||||
| Lifecycle 2015 | 46,591,143 | 73,303,625 | 119,894,768 | |||||||||
| Lifecycle 2020 | 70,226,984 | 101,276,226 | 171,503,210 | |||||||||
| Lifecycle 2025 | 72,440,742 | 102,002,465 | 174,443,207 | |||||||||
| Lifecycle 2030 | 70,951,027 | 100,896,766 | 171,847,793 | |||||||||
| Lifecycle 2035 | 71,420,312 | 109,452,099 | 180,872,411 | |||||||||
| Lifecycle 2040 | 92,757,430 | 146,441,254 | 239,198,684 | |||||||||
| Lifecycle 2045 | 32,176,209 | 23,026,201 | 55,202,410 | |||||||||
| Lifecycle 2050 | 18,242,532 | 12,844,748 | 31,087,280 | |||||||||
| Lifecycle 2055 | 2,854,554 | 1,644,054 | 4,498,608 | |||||||||
| Lifecycle 2060 | 260,025 | — | 260,025 | |||||||||
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 93 |
Notes to financial statements
| 5/31/2014 | ||||||||||||
| Fund | Ordinary income | Long-term capital gains | Total | |||||||||
| Lifecycle Retirement Income | $ | 7,055,820 | $ | 2,089,903 | $ | 9,145,723 | ||||||
| Lifecycle 2010 | 31,232,087 | 7,787,214 | 39,019,301 | |||||||||
| Lifecycle 2015 | 44,344,789 | 54,067,325 | 98,412,114 | |||||||||
| Lifecycle 2020 | 63,509,333 | 67,508,952 | 131,018,285 | |||||||||
| Lifecycle 2025 | 66,098,275 | 66,828,455 | 132,926,730 | |||||||||
| Lifecycle 2030 | 67,137,431 | 64,003,293 | 131,140,724 | |||||||||
| Lifecycle 2035 | 70,313,932 | 68,767,381 | 139,081,313 | |||||||||
| Lifecycle 2040 | 95,753,146 | 96,808,530 | 192,561,676 | |||||||||
| Lifecycle 2045 | 27,556,468 | 6,449,207 | 34,005,675 | |||||||||
| Lifecycle 2050 | 15,207,533 | 3,480,279 | 18,687,812 | |||||||||
| Lifecycle 2055 | 1,894,724 | 332,657 | 2,227,381 | |||||||||
As of May 31, 2015, the components of accumulated earnings on a tax basis were as follows:
| Fund | Undistributed ordinary income | Undistributed long-term capital gains | Unrealized appreciation (depreciation | ) | Capital loss carryover | Total | ||||||||||||||
| Lifecycle Retirement Income | $ | 746,697 | $ | 6,760,376 | $ | 28,724,098 | $ | — | $ | 36,231,171 | ||||||||||
| Lifecycle 2010 | 7,008,823 | 24,685,016 | 130,366,645 | — | 162,060,484 | |||||||||||||||
| Lifecycle 2015 | 8,081,086 | 71,587,601 | 104,212,928 | — | 183,881,615 | |||||||||||||||
| Lifecycle 2020 | 11,364,392 | 112,565,601 | 203,164,282 | — | 327,094,275 | |||||||||||||||
| Lifecycle 2025 | 10,612,986 | 122,778,155 | 246,849,547 | — | 380,240,688 | |||||||||||||||
| Lifecycle 2030 | 8,964,563 | 125,727,038 | 286,419,995 | — | 421,111,596 | |||||||||||||||
| Lifecycle 2035 | 6,900,439 | 136,733,474 | 329,476,285 | — | 473,110,198 | |||||||||||||||
| Lifecycle 2040 | 6,267,753 | 190,011,033 | 478,427,665 | — | 674,706,451 | |||||||||||||||
| Lifecycle 2045 | 2,990,630 | 48,453,914 | 166,374,833 | — | 217,819,377 | |||||||||||||||
| Lifecycle 2050 | 1,614,443 | 27,875,981 | 90,544,210 | (89,883 | ) | 119,944,751 | ||||||||||||||
| Lifecycle 2055 | 291,944 | 4,433,809 | 8,772,884 | — | 13,498,637 | |||||||||||||||
| Lifecycle 2060 | 35,309 | 436,429 | 36,361 | — | 508,099 | |||||||||||||||
The difference between book basis and tax basis net investment income, net realized gains and losses, and unrealized appreciation and depreciation is attributable primarily to the tax deferral of losses on wash sales, the utilization of capital loss carryovers, and the treatment of short term gain as ordinary income for tax purposes.
At May 31, 2015, the following Funds had capital loss carryovers, which will expire as follows:
| Date of expiration | ||||||||
| Fund | 5/31/2018 | Total | ||||||
| Lifecycle 2050 | $89,883 | $89,883 | ||||||
| 94 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
concluded
For the year ended May 31, 2015, the Lifecycle 2050 Fund utilized $108,817 of its capital loss carryover available from prior years.
Due to large shifts in the ownership percentage of the Lifecycle 2050 Fund during the fiscal year ended September 30, 2009, the future utilization of the Lifecycle 2050 Fund’s capital losses and capital loss carryovers may be subject to limitations under the Internal Revenue Code and Regulations thereunder.
Under the Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future years will be required to be utilized prior to the losses incurred in pre-enactment tax years. As a result of this ordering rule, pre-enactment capital loss carryovers may be more likely to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
Note 6—line of credit
Each of the Funds participates in a $1.5 billion unsecured revolving credit facility that can be used for temporary purposes, including, without limitation, the funding of shareholder redemptions. This facility expired June 2015. A new facility was entered into on June 23, 2015 expiring June 21, 2016. Certain affiliated accounts and mutual funds, each of which is managed by Advisors, or an affiliate of Advisors, also participate in this facility. An annual commitment fee for the credit facility is borne by the participating accounts and mutual funds on a pro rata basis. Interest associated with any borrowing under the facility is charged to the borrowing accounts or mutual funds at a specified rate of interest. The Funds are not liable for borrowings under the facility by other affiliated accounts or mutual funds. For the year ended May 31, 2015, there were no borrowings under this credit facility by the Funds.
Note 7—indemnification
In the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and that provide general indemnities. A Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund that have not yet occurred. Also, under the Funds’ organizational documents, the trustees and officers of the Funds are indemnified against certain liabilities that may arise out of their duties to the Funds. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be unlikely.
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 95 |
Report of independent registered public accounting firm
To the Board of Trustees and Shareholders of the TIAA-CREF Funds:
In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Lifecycle Retirement Income Fund, Lifecycle 2010 Fund, Lifecycle 2015 Fund, Lifecycle 2020 Fund, Lifecycle 2025 Fund, Lifecycle 2030 Fund, Lifecycle 2035 Fund, Lifecycle 2040 Fund, Lifecycle 2045 Fund, Lifecycle 2050 Fund, Lifecycle 2055 Fund, and Lifecycle 2060 Fund (twelve of the portfolios constituting the TIAA-CREF Funds, hereafter collectively referred to as the “Funds”) at May 31, 2015, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at May 31, 2015 by correspondence with the transfer agent, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Baltimore, Maryland
July 17, 2015
| 96 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Trustees and officers (unaudited)
TIAA-CREF Funds ■ May 31, 2015
Trustees
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | Number of portfolios in fund complex overseen by Trustee |
Other directorship(s) held by trustee | |||||
| Forrest Berkley c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1954 |
Trustee | Indefinite term. Trustee since 2006. | Retired Partner (since 2006), Partner (1990–2005) and Head of Global Product Management (2003–2005), GMO (formerly, Grantham, Mayo, Van Otterloo & Co.) (investment management); and member of asset allocation portfolio management team, GMO (2003–2005). | 82 | Director, the Maine Coast Heritage Trust; Investment Committee member, Maine Community Foundation and the Elmina B. Sewall Foundation; and Trustee of the Maine Chapter of the Nature Conservancy. | |||||
| Nancy A. Eckl c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Trustee | Indefinite term. Trustee since 2007. | Vice President (1990–2006), American Beacon Advisors, Inc., and Vice President of certain funds advised by American Beacon Advisors, Inc. | 82 | Independent Director, The Lazard Funds, Inc., Lazard Retirement Series, Inc., Lazard Global Total Return and Income Fund, Inc. and Lazard World Dividend & Income Fund, Inc.; and Independent Trustee, Lazard Alternative Emerging Markets 1099 Fund. | |||||
| Michael A. Forrester c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1967 |
Trustee | Indefinite term. Trustee since 2007. | Chief Executive Officer (since 2014) and Chief Operating Officer (2007–2014), Copper Rock Capital Partners, LLC; Chief Operating Officer, DDJ Capital Management (2003–2006). | 82 | Director of Copper Rock Capital Partners, LLC (investment adviser). |
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 97 |
| Trustees and officers (unaudited) | continued |
TIAA-CREF Funds ■ May 31, 2015
Trustees — continued
| Name,
address and year of birth (“YOB”) |
Position(s) held with fund |
Term
of office and length of time served |
Principal occupation(s) during past 5 years | Number
of portfolios in fund complex overseen by Trustee |
Other directorship(s) held by trustee | |||||
| Howell
E. Jackson c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1954 |
Chairman of the Board and Trustee | Indefinite term. Trustee since 2005; Chairman for term ending December 31, 2015. Chairman since 2013. | James S. Reid, Jr. Professor of Law (since 2004), Senior Advisor to the President and Provost (2010–2012), Acting Dean (2009), Vice Dean for Budget (2003–2006) and on the faculty (since 1989) of Harvard Law School. | 82 | Director, D2D Fund. | |||||
| Nancy
L. Jacob c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1943 |
Trustee | Indefinite term. Trustee since 1999. | Principal, NL Jacob Consultant (economic and business consultant) (since 2012); President and Founder (2006–2012) of NLJ Advisors, Inc. (investment adviser); President and Managing Principal, Windermere Investment Associates (1997–2006). | 82 | None | |||||
| Thomas
J. Kenny c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1963 |
Trustee | Indefinite term. Trustee since 2011. | Partner (2004–2010) and Managing Director (1999–2004), Goldman Sachs Asset Management. | 82 | Director, Aflac Insurance. Inc., Sansum Clinic and cielo24; Investment committee member, Cottage Health System; Member, University of California at Santa Barbara Arts and Lectures Advisory Council; Trustee and Chairman, Crane Country Day School. |
| 98 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
| Bridget
A. Macaskill c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1948 |
Trustee | Indefinite term. Trustee since 2003. | Chief Executive Officer (since 2010), President (since 2009) and Chief Operating Officer (2009–2010), First Eagle Investment Management, LLC; Principal, BAM Consulting LLC (2003–2009); Independent Consultant for Merrill Lynch (2003–2009). | 82 | Director, Arnhold
and S. Bleichroeder Holdings; First Eagle Investment Management, LLC; Jupiter Fund Management plc; American Legacy Foundation (Investment Committee); University of Edinburgh (Campaign Board); the North Shore Land Alliance, Prep for Prep; and Close Brothers Group plc. | |||||
| James M. Poterba c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1958 |
Trustee | Indefinite term. Trustee since 2006. | President and Chief Executive Officer, National Bureau of Economic Research (“NBER”) (since 2008); Affiliated Faculty Member of the Finance Group at the Alfred P. Sloan School of Management, Massachusetts Institute of Technology (“MIT”) (since 2014); Mitsui Professor of Economics, MIT (since 1996); Head (2006–2008) and Associate Head (1994–2000 and 2001–2006), Economics Department of MIT; and Program Director, NBER (1990–2008). | 82 | Director, The Alfred P. Sloan Foundation and National Bureau of Economic Research; Member, Congressional Budget Office Panel of Economic Advisers. | |||||
| Maceo K. Sloan c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1949 |
Trustee | Indefinite term. Trustee since 1999. | Chairman, President and Chief Executive Officer, Sloan Financial Group, Inc. (since 1991); Chairman and Chief Executive Officer (since 1991) and Chief Investment Officer (1991–2013), NCM Capital Management Group, Inc.; Chairman and Chief Executive Officer (since 2003) and Chief Investment Officer (2003–2013), NCM Capital Advisers Inc.; and Chairman, President and Principal Executive Officer, NCM Capital Investment Trust (2007–2012). | 82 | Director, SCANA Corporation (energy holding company). |
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 99 |
| Trustees and officers (unaudited) | continued |
TIAA-CREF Funds ■ May 31, 2015
Trustees — concluded
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term
of office and length of time served |
Principal occupation(s) during past 5 years | Number
of portfolios in fund complex overseen by Trustee |
Other directorship(s) held by trustee | |||||
| Laura T. Starks c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1950 |
Trustee | Indefinite term. Trustee since 2006. | Associate Dean for Research (since 2011), McCombs School of Business, University of Texas at Austin (“McCombs”), and Director, AIM Investment Center at McCombs (since 2000). Charles E. and Sarah M. Seay Regents Chair in Finance (since 2002) and Professor, University of Texas at Austin (since 1987). Chairman, Department of Finance, University of Texas at Austin (2002–2011). | 82 | Member of the Board of Governors of the Investment Company Institute, the Governing Council of Independent Directors Council (an association for mutual fund directors); and Investment Advisory Committee, Employees Retirement System of Texas. | |||||
| Officers | ||||||||||
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | |||||||
| Richard S. Biegen TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Chief Compliance Officer | One-year term. Vice President and Chief Compliance Officer since 2008. | Managing Director, Senior Compliance officer of Teachers Insurance and Annuity Association of America (“TIAA”). Chief Compliance Officer of the College Retirement Equities Fund (“CREF”), TIAA Separate Account VA-1, TIAA-CREF Funds, and TIAA-CREF Life Funds (collectively, the “TIAA-CREF Fund Complex”). | |||||||
| 100 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
| Carol
W. Deckbar TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Executive Vice President | One-year term. Executive Vice President since 2013. | Executive Vice President, Chief Executive Officer of TIAA-CREF Asset Management LLC (“TCAM”) and Executive Vice President of the TIAA-CREF Fund Complex. | |||
| Phillip
G. Goff TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1963 |
Principal Financial Officer, Principal Accounting Officer and Treasurer | One-year term. Principal Financial Officer, Principal Accounting Officer and Treasurer since 2007. | Senior Vice President, Corporate Controller of TIAA. Treasurer of CREF; Principal Financial Officer, Principal Accounting Officer and Treasurer of the TIAA-CREF Funds and TIAA-CREF Life Funds. | |||
| Stephen
Gruppo TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1959 |
Executive Vice President | One-year term. Executive Vice President since 2009. | Executive Vice President, Chief Risk Officer of TIAA. Executive Vice President of the TIAA-CREF Fund Complex. | |||
| Robert
G. Leary TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1961 |
President and Principal Executive Officer | One-year term. President and Principal Executive Officer since 2013. | Executive Vice President and President of Asset Management of TIAA. Principal Executive Officer and Executive Vice President of CREF and VA-1. Principal Executive Officer and President of TIAA-CREF Funds and TIAA-CREF Life Funds. Prior to joining TIAA, Mr. Leary served as a Representative, Securities Research, Inc., President and Chief Operating Officer, U.S., ING Americas, Chief Executive Officer, ING Insurance US, and Chairman and Chief Executive Officer, ING Investment Management, Americas. | |||
| Ronald
R. Pressman TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1958 |
Executive Vice President | One-year term. Executive Vice President since 2012. | Executive Vice President and Chief Operating Officer of TIAA, and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Mr. Pressman served as President and Chief Executive Officer of General Electric Capital Real Estate. |
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 101 |
| Trustees and officers (unaudited) | concluded |
TIAA-CREF Funds ■ May 31, 2015
Officers — concluded
| Name,
address and year of birth (“YOB”) |
Position(s) held with fund |
Term
of office and length of time served |
Principal occupation(s) during past 5 years | |||
| Phillip
T. Rollock TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Senior Managing Director and Corporate Secretary | One-year term. Senior Managing Director since 2013 and Corporate Secretary since 2012. | Senior Managing Director, Corporate Secretary of TIAA and the TIAA-CREF Fund Complex. | |||
| Otha
T. Spriggs, III TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1951 |
Executive Vice President | One-year term. Executive Vice President since 2012. | Executive Vice President and Chief Human Resources Officer of TIAA and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Mr. Spriggs served as Senior Vice President of Human Resources, Boston Scientific; President of Integrated People Solutions; Senior Vice President, Human Resources and various human resources leadership roles, CIGNA Corp. | |||
| Edward
D. Van Dolsen TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1958 |
Executive Vice President | One-year term. Executive Vice President, since 2006. | Executive Vice President, President of Retirement and Individual Financial Services of TIAA, and Executive Vice President of the TIAA-CREF Fund Complex. | |||
| Constance
K. Weaver TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1952 |
Executive Vice President | One-year term. Executive Vice President since 2010. | Executive Vice President, Chief Marketing Officer of TIAA and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Ms. Weaver served as Senior Vice President, The Hartford Financial Services Group, Inc. |
Please note that the Funds’ Statement of Additional Information (SAI) includes information about the Funds’ trustees and is available, without charge, through our website, tiaa-cref.org, or by calling 800 223–1200.
| 102 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
Renewal of investment management agreement (unaudited)
Board renewal of the investment management agreement for the TIAA-CREF Lifecycle Funds
Among its other duties, the Board of Trustees (the “Board” or the “Trustees”) of the TIAA-CREF Funds (the “Trust”) is responsible for determining whether to initially approve and subsequently annually renew the investment management agreement (the “Agreement”) between Teachers Advisors, Inc. (“TAI”) and the Trust on behalf of each TIAA-CREF Lifecycle Funds’ series (the “Funds”). Under the Agreement, TAI is responsible for providing investment advisory services and overseeing the everyday operations and other service providers of the Funds.
Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”) requires that, after an initial period of up to two years, the Agreement for each Fund will remain in effect only if the Board, including a majority of those Trustees who have no direct or indirect interest in the Agreement, and who are not “interested persons” of the Trust, as that term is defined in the 1940 Act, annually renews that Agreement. All of the Trustees are deemed to be independent persons for this purpose.
Overview of the renewal process
The Board held meetings on March 12, 2015 and March 26, 2015, at which it considered the annual renewal of the Agreement with respect to each Lifecycle Fund other than the Lifecycle 2060 Fund using its previously-established process. (The Board did not consider the renewal of the Agreement for the Lifecycle 2060 Fund at these meetings because the Fund’s Agreement was initially approved in mid-2014 with a two-year term. Accordingly, in the discussion below, the references to “Funds” do not include the Lifecycle 2060 Fund.) As part of this process, the Board delegated certain tasks to its Operations Committee. Among these tasks, the Operations Committee worked with TAI, other Board members and legal counsel to the Trustees to develop guidelines and specific requests relating to the types of information to be provided to the Board in connection with the proposed contract renewals. The Operations Committee also worked with TAI to schedule and report on various follow-up items throughout the prior year that were requested by the Committee and the Board during the 2014 renewal process. During a series of meetings held prior to the March 12 and March 26, 2015 Board meetings, the Operations Committee, along with other Committees, as applicable, reviewed such guidelines and follow-up requests in consultation with TAI representatives and input from other Trustees, legal counsel to the Trustees and legal counsel to TAI and the Trust, and then evaluated the information produced in accordance with those guidelines and requests.
Among other matters, the Operations Committee, following its consultations with others as noted above, confirmed or established various guidelines regarding the preparation of reports to be provided to the Board with respect to each Fund by the Board Reporting and Compliance unit of Lipper, Inc. (“Lipper”). Lipper is an independent provider of investment company data that is widely recognized as a leading source of independent data used by independent directors and trustees of investment companies during their advisory contract review processes.
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 103 |
Renewal of investment management agreement (unaudited)
Based on guidelines provided by the Operations Committee on behalf of the Board, Lipper produced, among other information, performance and expense comparison data regarding each Fund, including data relating to each Fund’s management fee rates, total expense ratios and short-term and long-term investment performance. Lipper also compared much of this data for each Fund against a universe of investment companies and against a more selective peer group of mutual funds with similar investment objectives and strategies, each of which was selected by Lipper, and, in the case of the investment performance data, against one or more appropriate broad-based benchmark indices. In each case, Lipper summarized the methodologies it employed to provide the data contained in its reports. In addition, Lipper represented to the Board that its reports were designed specifically to provide the Board with the fee, expense and performance information that is necessary to help the Board satisfy its duties under Section 15(c) of the 1940 Act. Lipper also represented that the purpose of its materials is to provide an unbiased view of each Fund’s relative position regarding the level of fees, expenses and total return performance against a competitive peer group and universe (as applicable) identified by Lipper (and not TAI).
Among other matters, the Board also requested and reviewed various information provided by TAI to facilitate the Trustees’ evaluation of the reasonableness of any profits earned by TAI with respect to its services to each Fund pursuant to the Agreement. In this regard, the Board recognized that different Trustees could, and likely would, give different weight to different factors when evaluating the profits, if any, realized or anticipated to be realized by TAI, which is also true of their assessment of each Fund’s management fee rate and other aspects of the proposed renewal of the Agreement.
In advance of the Board meetings held on March 12 and March 26, 2015, legal counsel for the Trustees requested on behalf of the Board, and TAI provided, information that was designed to assist the Board in its consideration of whether to renew the Agreement for each Fund. In addition to the data provided by Lipper as described above, this information included, but was not limited to, the following: (1) further information relating to each Fund’s investment performance, including performance ratings provided by Morningstar, Inc. (“Morningstar”), which is a widely recognized mutual fund ranking service; (2) a description of any fee waiver or expense reimbursement arrangements that were proposed or were in place during the prior year and the extent to which such arrangements would be continued or modified in the coming year; (3) a comparison of each Fund’s fee rate under the Agreement to the fee rates of any other comparable accounts managed by TAI or its affiliates; (4) any “fall-out” benefits that accrued or were identified as reasonably likely to accrue to TAI or its affiliates due to their relationship with the Funds aside from TAI’s direct fee payments pursuant to the Agreement; (5) information regarding TAI’s financial resources, senior professional personnel, overall staffing levels, portfolio manager compensation arrangements, insurance coverage, portfolio trading and best execution practices, and any actual and potential conflicts of interest identified by TAI in connection with rendering services to the Funds; (6) information as to any profits earned by TAI in connection with its services pursuant to the Agreement; (7) a copy of the Agreement and certain related agreements between the Funds and affiliates of TAI; (8) a copy of
| 104 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
TAI’s Form ADV registration statement as filed with the Securities and Exchange Commission (which was presented only to legal counsel for the Trustees); and (9) proposed narrative explanations of reasons why the Board should renew the Agreement.
In considering whether to renew the Agreement with respect to each Fund, the Board reviewed various factors with respect to the Fund, including: (1) the nature, extent and quality of services provided or to be provided by TAI to the Fund; (2) the Fund’s investment performance; (3) the costs of the services provided to the Fund and the profits realized or potential profits to be realized (if any) by TAI and its affiliates from their relationship with the Fund; (4) fees charged by other advisers; (5) the extent to which economies of scale have been realized or are anticipated to be realized as the Fund grows; (6) whether the fee schedule set forth in the Agreement reflects any such economies of scale for the benefit of Fund investors; (7) comparisons of services and fee rates with any contracts entered into by TAI with other clients to whom TAI provides comparable services; and (8) any other benefits derived or anticipated to be derived by TAI or its affiliates from their relationship with the Fund. As a general matter, the Board viewed these factors in their totality, with no single factor being the principal factor in determining whether to renew the Agreement.
In reaching its decisions regarding the renewal of the Agreement for each Fund, the Board took into account the information described above, other information provided to the Board in connection with this process, and relevant information provided to the Board and to its Committees on an ongoing basis in connection with the Board’s general oversight duties with respect to the Funds. In addition, the Board received and considered information from its legal counsel as to certain relevant guidelines that relate to the renewal process under Section 15(c) of the 1940 Act and certain other legal authorities.
While the Board considered the Agreement with respect to all Funds, the Board received and considered Fund-specific information and made its renewal determinations on a Fund-by-Fund basis. In deciding whether to renew the Agreement for each Fund, each Trustee may have accorded different weight to different factors and, thus, each Trustee may have had a different basis for his or her ultimate decision to vote to renew the Agreement for each Fund. At its meeting on March 26, 2015, the Board voted unanimously to renew the Agreement for each Fund. Set forth below are certain general factors the Board considered for all of the Funds, followed by a summary of certain specific factors the Board considered for each particular Fund.
The nature, extent and quality of services
The Board considered that TAI is an experienced investment adviser that has managed the Funds since their operations commenced. Investment professionals at TAI and its affiliates also manage various accounts of the College Retirement Equities Fund (“CREF”), the TIAA-CREF Life Funds (the “Life Funds”), the TIAA Separate Account VA-1 and other series of the Trust. Under the Agreement, TAI is responsible for, among other duties: managing the assets of the Funds (which are funds of funds that invest
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 105 |
Renewal of investment management agreement (unaudited)
their assets in the securities of other investment companies managed by TAI, referred to as “underlying funds”), including selecting underlying funds and allocating the Funds’ assets among the underlying funds, conducting research, recommending investments and placing orders to buy and sell securities for the Funds’ investment portfolios; active daily monitoring of the investment portfolios by various personnel with specific responsibility for the particular types of investments in question; reporting on the investment performance of the Funds to the Board on a regular basis; and carrying out, or overseeing the provision of, various administrative services to the Funds. The Board considered that TAI has carried out these responsibilities in a competent and professional manner.
The Board also considered, among other factors, the performance of each of the Funds, as discussed below. In addition, the Board considered the nature and quality of non-portfolio management services provided by TAI and its affiliates. In this regard, the Board considered its ongoing review of the performance of certain affiliated and unaffiliated service providers, including the quality of services provided by those firms and TAI’s oversight of those service providers and the outsourcing of certain services to other firms.
Investment performance
The Board considered the investment performance of each Fund, over the periods indicated in the Fund-by-Fund synopsis below. The Board considered each Fund’s performance as compared to its peer group and peer universe (as applicable) and its benchmark index. The Board also reviewed the performance of each Fund before any reductions for fees or expenses. This analysis considered the impact of net asset value rounding and excluded the effects of fair valuation, foreign exchange rates, effective tax rates, securities lending and class action litigation on each Fund’s performance as compared to the performance of its benchmark index. For details regarding each Fund’s performance, see the Fund-by-Fund synopsis below. The Board considered that, in those cases in which a Fund had underperformed its benchmark, peer group or peer universe of mutual funds for an extended period of time, TAI had represented that it had taken or was planning to implement affirmative actions reasonably designed to enhance the Fund’s investment performance, or TAI had explained to the Board’s satisfaction that no such actions were necessary. Thus, the Board concluded that, under the totality of circumstances considered, the investment performance of each Fund was within an acceptable range or that appropriate action, if any, had been or were being implemented.
Cost and profitability
The Board considered financial and profitability data relating to TAI for the calendar year 2014. The Board considered TAI’s profit calculations with respect to its services to each Fund both before and after taking into account the costs incurred directly or indirectly by TAI in connection with the distribution of shares of the Fund. The Board acknowledged the reasonableness of having management fee rates which permit TAI
| 106 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
to maintain and improve the quality of services provided to the Funds. The Board also noted TAI’s waiver of the entire amount of each Fund’s management fees since their inception. The Board also acknowledged certain permanent fee rate reductions, temporary fee waivers and reimbursements of expenses above specified amounts undertaken by TAI with respect to the underlying funds in which the Funds invest that, in turn, reduce the Funds’ expenses. The Board considered that TAI had incurred a net loss with respect to each of the Funds under the Agreement for the one-year period ended December 31, 2014, and expected this trend to continue. The Board also considered that TAI may have indirect earnings or losses with respect to the Funds based on the Funds’ investment in underlying funds also managed by TAI.
During its review of TAI’s profits, the Board noted its ongoing efforts to examine the level of personnel and other resources available to TAI for its portfolio management and other functions, especially any effect of the purchase of Nuveen Investments by TAI’s parent on such resources, so as to assess whether sufficient resources are being devoted to these functions.
Fees charged by other advisers
The Board considered information regarding fees paid to other advisers for managing similar funds, as analyzed by Lipper. The Board determined that the management fee rates charged to a Fund under the Agreement typically were lower than the management fee rates charged to many or most other comparable mutual funds. In this connection, the Board also considered the inherent limitations of such comparisons in light of uncertainty as to how the fees of such similar mutual funds are set and potentially material differences between a Fund and its comparable mutual funds. Additionally, the Board also considered the potential limitations of such comparisons due to, among other factors, the fact that, in many instances, Lipper based its comparisons on financial data relating to fiscal periods that differed from the period for which the Fund’s data were derived. Based on all factors considered, the Board concluded that the management fee rates under the Agreement with respect to each Fund were within an acceptable range in relation to those charged by appropriate groups of comparable mutual funds.
Economies of scale
The Board considered whether TAI has experienced or is anticipated to experience economies of scale in connection with the operation of each Fund. The Board also considered that because TAI operated each Fund at a loss, and has waived the entire amount of its management fee since inception, there was little opportunity to pass economies of scale on to Fund shareholders. Based on all factors considered, the Board concluded that the Funds’ fee schedules were within an acceptable range in light of current economies of scale considerations and current asset levels.
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 107 |
Renewal of investment management agreement (unaudited)
Fee comparison with other TAI clients
The Board considered that TAI and its affiliates provide similar investment management services to other investment companies. The Board noted that TAI provides funds of funds management services to the TIAA-CREF Lifestyle Funds and the TIAA-CREF Life Balanced Fund, with annual management fee rates of 0.10% of average daily net assets, the TIAA-CREF Lifecycle Index Funds, which also have an annual management fee rate of 0.10%, with partial, voluntary waivers for some of these funds, and the TIAA-CREF Managed Allocation Fund, for which TAI receives no management fee. TAI also manages other asset allocation products, such as education savings plans (529 plans).
Other benefits
The Board also considered additional benefits to TAI and its affiliates arising from the Agreement. For example, TAI and its affiliates may benefit from the advisory relationship with the Funds to the extent that this relationship results in potential investors viewing the TIAA-CREF group of companies as a leading retirement plan provider in the academic and nonprofit markets and as a single source for all their financial service needs. Both TAI and certain Funds managed by TAI or its affiliates may benefit from economies of scale to the extent that these Funds are managed in the same manner and by the same personnel as certain of the CREF Accounts, the Life Funds and other series of the Trust. TAI and the Funds may also benefit from TAI’s ability to acquire investment research related to its commission (i.e., soft dollar) arrangements. Additionally, the Funds may be utilized as investment options for other products and businesses of TAI and its affiliates, such as variable products.
Fund-by-fund factors
The Board considered the following specific factors (among others) in connection with its determination to renew the Agreement with respect to each Fund. If a Fund is described in the following discussions as being in the “1st” quintile, it is in the best of five groups (that is, the group has the best performance or the lowest expenses, as the case may be). References below to quintiles are based on data provided to the Board in the reports prepared by Lipper. The specific management fee, expense and performance factors outlined below are based on the Institutional Class shares of each Fund. Because the Institutional Class generally has lower non-management expenses than the Retirement, Premier and Retail Classes of these Funds, the expenses and performance of these other Classes will differ from the expenses and performance shown for the Institutional Class. All time periods referenced below are ended December 31, 2014. Under the Morningstar rating system, 5 stars is the highest (best) rating category and 1 star is the lowest (worst) rating category. Statements below regarding “net profit” or “net loss” refer to whether TAI earned a profit or incurred a loss for the services that it rendered to a Fund during 2014 under the Agreement.
| 108 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
Lifecycle Retirement Income Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive this fee entirely through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of the group of comparable funds selected by Lipper for expense comparison purposes (“Expense Group”). With respect to both the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 3 funds within its Expense Group. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were each in the 1st quintile of the universe of comparable funds selected by Lipper for expense comparison purposes (“Expense Universe”). |
| • | The Fund was in the 1st quintile of the group of comparable funds selected by Lipper for performance comparison purposes (“Performance Group”) for each of the one-, three- and five-year periods. The Fund was in the 2nd, 1st and 1st quintiles of the universe of comparable funds selected by Lipper for performance comparison purposes (“Performance Universe”) for the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle 2010 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive this fee entirely through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 5 and 2 out of 5 funds within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 1st quintile of its Performance Group for the one-year period and ranked 1 out of 5 and 1 out of 4 funds within its Performance Group for the three- and five-year periods, respectively. The Fund was in the 2nd, 1st and 1st quintiles of its Performance Universe for each of the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 5 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 109 |
Renewal of investment management agreement (unaudited)
Lifecycle 2015 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive this fee entirely through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 4 and 2 out of 4 funds within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 3rd and 1st quintiles of its Performance Group for the one-and three-year periods, respectively, and ranked 1 out of 5 funds within its Performance Group for the five-year period. The Fund was in the 2nd, 1st and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 5 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle 2020 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive this fee entirely through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 4 and 2 out of 4 funds within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 3rd, 1st and 1st quintiles of its Performance Group for the one-, three-and five-year periods, respectively. The Fund was in the 3rd, 1st and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 5 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle 2025 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive this fee entirely through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to the Fund’s actual management fee (including the waiver) and |
| 110 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
continued
| contractual management fee, the Fund ranked 1 out of 5 and 2 out of 5 funds within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. | |
| • | The Fund was in the 4th, 2nd and 1st quintiles of its Performance Group for the one-, three-and five-year periods, respectively. The Fund was in the 3rd, 1st and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle 2030 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive this fee entirely through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 4 and 2 out of 4 funds within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 4th, 1st and 2nd quintiles of its Performance Group for the one-, three-and five-year periods, respectively. The Fund was in the 4th, 1st and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle 2035 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive this fee entirely through at least September 30, 2015. |
| • | The Fund’s total expenses and actual management fee (including the waiver) were each in the 1st quintile of its Expense Group. With respect to the Fund’s contractual management fee, the Fund ranked 2 out of 5 funds within its Expense Group. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 4th, 1st and 1st quintiles of both its Performance Group and its Performance Universe for the one-, three-and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 111 |
Renewal of investment management agreement (unaudited)
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle 2040 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive this fee entirely through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 5 and 2 out of 5 funds within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 4th, 1st and 1st quintiles of both its Performance Group and its Performance Universe for the one-, three-and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle 2045 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive this fee entirely through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 5 and 2 out of 5 funds within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 4th, 1st and 2nd quintiles of its Performance Group for the one-, three-and five-year periods, respectively. The Fund was in the 4th, 1st and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle 2050 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive this fee entirely through at least September 30, 2015. |
| 112 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
concluded
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 4 and 2 out of 4 funds within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 4th, 2nd and 2nd quintiles of its Performance Group for the one-, three-and five-year periods, respectively. The Fund was in the 4th, 1st and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle 2055 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive this fee entirely through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to both the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 3 funds within its Expense Group. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were each in the 1st quintile of its Expense Universe. |
| • | The Fund was in the 3rd quintile of its Performance Group for the one-year period and ranked 1 out of 4 funds within its Performance Group for the three-year period. The Fund was in the 4th and 1st quintiles of its Performance Universe for the one- and three-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Based primarily on the foregoing factors and considerations, the Board renewed the Agreement for each Fund.
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 113 |
Important tax information (unaudited)
TIAA-CREF Lifecycle Funds
For the year ended May 31, 2015, the Lifecycle Funds designate the following distribution amounts (or the maximum amount allowable) as being from net long-term capital gains.
| Long-term | ||||
| Fund | capital gains | |||
| Lifecycle Retirement Income | $ | 4,251,602 | ||
| Lifecycle 2010 | 19,629,662 | |||
| Lifecycle 2015 | 73,303,625 | |||
| Lifecycle 2020 | 101,276,226 | |||
| Lifecycle 2025 | 102,002,465 | |||
| Lifecycle 2030 | 100,896,766 | |||
| Lifecycle 2035 | 109,452,099 | |||
| Lifecycle 2040 | 146,441,254 | |||
| Lifecycle 2045 | 23,026,201 | |||
| Lifecycle 2050 | 12,844,748 | |||
| Lifecycle 2055 | 1,644,054 | |||
| Lifecycle 2060 | — | |||
For the year ended May 31, 2015, the Lifecycle Funds designate the following percentages (or the maximum amount allowable) of ordinary income dividends paid as qualified dividends.
| Fund | Percentage | |||
| Lifecycle Retirement Income | 20.45 | % | ||
| Lifecycle 2010 | 19.97 | % | ||
| Lifecycle 2015 | 24.38 | % | ||
| Lifecycle 2020 | 27.58 | % | ||
| Lifecycle 2025 | 30.41 | % | ||
| Lifecycle 2030 | 33.48 | % | ||
| Lifecycle 2035 | 37.44 | % | ||
| Lifecycle 2040 | 40.90 | % | ||
| Lifecycle 2045 | 39.99 | % | ||
| Lifecycle 2050 | 40.41 | % | ||
| Lifecycle 2055 | 40.22 | % | ||
| Lifecycle 2060 | 39.17 | % | ||
For the year ended May 31, 2015, the Lifecycle Funds designate the following percentages (or the maximum amount allowable) of ordinary income dividends paid as qualifying for the corporate dividends received deduction.
| Fund | Percentage | |||
| Lifecycle Retirement Income | 12.83 | % | ||
| Lifecycle 2010 | 12.41 | % | ||
| Lifecycle 2015 | 15.24 | % | ||
| Lifecycle 2020 | 17.32 | % | ||
| Lifecycle 2025 | 19.17 | % | ||
| Lifecycle 2030 | 22.59 | % | ||
| Lifecycle 2035 | 23.72 | % | ||
| Lifecycle 2040 | 25.99 | % | ||
| Lifecycle 2045 | 25.40 | % | ||
| Lifecycle 2050 | 25.68 | % | ||
| Lifecycle 2055 | 25.57 | % | ||
| Lifecycle 2060 | 25.53 | % | ||
| 114 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
| Important tax information (unaudited) | concluded |
TIAA-CREF Lifecycle Funds
For the year ended May 31, 2015, the Lifecycle Funds received the following amounts of income from their respective underlying funds that was from foreign sources:
| Foreign | Foreign source | |||||||
| Fund | source income | income per share | ||||||
| Lifecycle Retirement Income Fund | $ | 506,208 | $ | 0.01720 | ||||
| Lifecycle Fund 2010 | 1,835,760 | 0.02126 | ||||||
| Lifecycle Fund 2015 | 3,264,804 | 0.02225 | ||||||
| Lifecycle Fund 2020 | 5,668,232 | 0.02581 | ||||||
| Lifecycle Fund 2025 | 6,460,850 | 0.02941 | ||||||
| Lifecycle Fund 2030 | 6,964,589 | 0.03278 | ||||||
| Lifecycle Fund 2035 | 7,787,117 | 0.03663 | ||||||
| Lifecycle Fund 2040 | 10,933,612 | 0.04030 | ||||||
| Lifecycle Fund 2045 | 3,775,670 | 0.03771 | ||||||
| Lifecycle Fund 2050 | 2,171,764 | 0.03755 | ||||||
| Lifecycle Fund 2055 | 346,874 | 0.04167 | ||||||
| Lifecycle Fund 2060 | 34,227 | 0.03388 | ||||||
For the year ended May 31, 2015, the Lifecycle Funds have elected to pass through the following amounts of foreign taxes paid by their respective underlying funds:
| Foreign taxes | Foreign taxes | |||||||
| Fund | paid | paid per share | ||||||
| Lifecycle Retirement Income Fund | $ | 45,981 | $ | 0.00156 | ||||
| Lifecycle Fund 2010 | 165,681 | 0.00192 | ||||||
| Lifecycle Fund 2015 | 293,018 | 0.00200 | ||||||
| Lifecycle Fund 2020 | 505,467 | 0.00230 | ||||||
| Lifecycle Fund 2025 | 573,098 | 0.00261 | ||||||
| Lifecycle Fund 2030 | 615,717 | 0.00290 | ||||||
| Lifecycle Fund 2035 | 686,141 | 0.00323 | ||||||
| Lifecycle Fund 2040 | 961,226 | 0.00354 | ||||||
| Lifecycle Fund 2045 | 332,032 | 0.00332 | ||||||
| Lifecycle Fund 2050 | 191,004 | 0.00330 | ||||||
| Lifecycle Fund 2055 | 30,508 | 0.00367 | ||||||
| Lifecycle Fund 2060 | 3,011 | 0.00298 | ||||||
The information and distributions reported herein may differ from the information and distributions reported to shareholders for the calendar year ending December 31, 2015, which will be reported in conjunction with your 2015 Form 1099-DIV.
By early 2016, shareholders should receive their Form 1099-DIV and a tax information letter from the Funds. For your specific situation, we recommend that you consult a professional tax adviser.
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 115 |
Additional information about index providers (unaudited)
Russell Indexes
The Russell 3000® Index is a trademark/service mark of the Russell Investment Group. The Russell Investment Group is the owner of the copyrights relating to the Russell Indexes and is the source and owner of the data contained or reflected in the performance values relating to the Russell Indexes. The funds are not promoted by, nor in any way affiliated with, the Russell Investment Group. The Russell Investment Group is not responsible for and has not reviewed the funds nor any associated literature or publications and the Russell Investment Group makes no representation or warranty, express or implied, as to their accuracy, or completeness.
Russell reserves the right, at any time and without notice, to alter, amend, terminate or in any way change the Russell Indexes. Russell has no obligation to take the needs of any particular fund or its participants or any other product or person into consideration in determining, composing or calculating any of the Russell Indexes.
Russell’s publication of the Russell Indexes in no way suggests or implies an opinion by Russell as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell Indexes are based. RUSSELL MAKES NO REPRESENTATION, WARRANTY OR GUARANTEE REGARDING THE USE OR THE RESULTS OF USE OF THE RUSSELL INDEXES OR ANY DATA INCLUDED THEREIN, OR ANY SECURITIES (OR COMBINATION THEREOF) COMPRISING THE RUSSELL INDEXES. RUSSELL MAKES NO OTHER EXPRESS OR IMPLIED WARRANTY, AND EXPRESSLY DISCLAIMS ANY WARRANTY, OF ANY KIND, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE RUSSELL INDEX(ES) OR ANY DATA OR ANY SECURITY (OR COMBINATION THEREOF) INCLUDED THEREIN.
MSCI Indexes
The funds are not sponsored, endorsed, sold or promoted by MSCI Inc. (“MSCI”), any of its affiliates, any of its information providers or any other third party involved in, or related to, compiling, computing or creating any MSCI index (collectively, the “MSCI Parties”). The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names are service mark(s) of MSCI or its affiliates and have been licensed for use for certain purposes by Teachers Advisors, Inc. None of the MSCI parties makes any representation or warranty, express or implied, to the issuer or owners of this fund or any other person or entity regarding the advisability of investing in funds generally or in this fund particularly or the ability of any MSCI index to track corresponding stock market performance. MSCI or its affiliates are the licensors of certain trademarks, service marks and trade names and of the MSCI indexes which are determined, composed and calculated by MSCI without regard to this fund or the issuer or owners of this fund or any other person or entity. None of the MSCI parties has any obligation to take the needs of the issuer or owners of this fund or any other person or entity into consideration in determining, composing or calculating the MSCI indexes. None of the MSCI parties is responsible for or has participated in the determination of the timing of, prices at, or quantities of this fund to be issued or in the determination or calculation of the equation by or the consideration into which
| 116 | 2015 Annual Report ■ TIAA-CREF Lifecycle Funds |
concluded
this fund is redeemable. Further, none of the MSCI parties has any obligation or liability to the issuer or owners of this fund or any other person or entity in connection with the administration, marketing or offering of this fund.
ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE MSCI INDEXES FROM SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF THE MSCI PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER OF THE FUND, OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY, FROM THE USE OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONE OF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE MSCI PARTIES HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO EACH MSCI INDEX AND ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
No purchaser, seller or holder of this security, product or fund, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this security without first contacting MSCI to determine whether MSCI’s permission is required. Under no circumstances may any person or entity claim any affiliation with MSCI without the prior written permission of MSCI.
| TIAA-CREF Lifecycle Funds ■ 2015 Annual Report | 117 |
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You should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other important information, please visit tiaa-cref.org, or call 800 842-2252 for the Institutional, Premier and Retirement classes or 800 223-1200 for the Retail Class. Please read the prospectus carefully before investing. Investment, insurance and annuity products are not FDIC
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©2015 Teachers Insurance and Annuity Association of America—College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017-3206.
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2015 Annual Report
TIAA-CREF
Lifecycle Index Funds
of the TIAA-CREF Funds
May 31, 2015
Understanding your Lifecycle Index Funds report
This annual report contains information about the investment performance and holdings of the Lifecycle Index Funds, an offering of the TIAA-CREF Funds, and describes the funds’ results for the twelve months ended May 31, 2015. The report contains three main sections:
| • | The fund performance section compares each fund’s investment returns with those of its composite benchmark and a broad market index. | |
| • | The portfolios of investments list the TIAA-CREF underlying funds in which each fund had investments as of May 31, 2015. | |
| • | The financial statements provide detailed information about the operations and financial condition of each fund. |
The views and opinions expressed in this report are through the end of the period, as stated on the cover of this report. They are subject to change at any time based on a variety of factors. As such, they are not guarantees of future performance or investment results and should not be taken as investment advice. The risks of investing in the TIAA-CREF Funds vary from fund to fund; to see the risks of investing in an individual fund, please refer to that fund’s latest prospectus.
As always, you should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other important information, please visit our website at tiaa-cref.org, or call 800 842-2252. We urge you to read the prospectus carefully before investing.
| 2 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Portfolio listings
The complete portfolios of investments for the TIAA-CREF Lifecycle Index Funds begin on page 36 of this report. You can also obtain lists of the holdings of the Lifecycle Index Funds and of the underlying funds in which the Lifecycle Index Funds invest (Schedules of Investments) as of the most recently completed fiscal quarter in the following ways:
| • | By visiting our website at tiaa-cref.org; or | |
| • | By calling us at 800 842-2252 to request a copy, which will be provided free of charge. |
You can obtain a complete list of the Lifecycle Index Funds’ portfolio holdings as of the most recently completed fiscal quarter, and for prior quarter-ends, from our Securities and Exchange Commission (SEC) Form N-CSR and Form N-Q filings. Form N-CSR filings are as of May 31 or November 30; Form N-Q filings are as of the last day of February or August 31. Copies of these forms are available:
| • | Through the Electronic Data Gathering and Retrieval System (EDGAR) on the SEC’s website at www.sec.gov; or | |
| • | From the SEC’s Office of Investor Education and Advocacy. (Call 202 551-8090 for more information.) |
Proxy voting
A description of our proxy voting policies and procedures for the underlying funds of the Lifecycle Index Funds can be found on our website at tiaa-cref.org or on the SEC’s website at www.sec.gov. You may also call us at 800 842-2252 to request a free copy. A report of how the Lifecycle Index Funds’ underlying funds voted during the most recently completed twelve-month period ended June 30 can be found on our website or on Form N-PX at www.sec.gov.
Contacting TIAA-CREF
There are three easy ways to contact us: by email, using the Contact Us link at the top of our home page; by mail at TIAA-CREF, 730 Third Avenue, New York, NY 10017-3206; or by phone at 800 842-2252.
Fund management
The Lifecycle Index Funds are managed by a portfolio management team of Teachers Advisors, Inc. The members of this team are responsible for the day-to-day investment management of the funds.
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 3 |
About the funds’ composite benchmarks
Each Lifecycle Index fund uses a composite benchmark that represents the general market sectors in which that fund invests. These may include U.S. equity (stocks), international equity (foreign stocks), fixed income and inflation-protected assets. A fund’s composite benchmark combines the following public indexes in proportions that reflect the fund’s target market sector allocations:
| • | The Russell 3000® Index (U.S. equity) measures the performance of the stocks of the 3,000 largest publicly traded U.S. companies, based on market capitalization. The index measures the performance of about 98% of the total market capitalization of the publicly traded U.S. equity market. | |
| • | The MSCI EAFE+EM Index (international equity) measures the performance of the leading stocks in 21 developed market countries outside North America—in Europe, Australasia and the Far East—and in 23 emerging market countries in Europe, Asia, Africa, Latin America and the Middle East. | |
| • | The Barclays U.S. Aggregate Bond Index (fixed income) measures the performance of the domestic investment-grade, fixed-rate bond market, including government and corporate securities, agency mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. | |
| • | The Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L) (inflation-protected assets) measures the performance of fixed-income securities with fixed-rate coupon payments that are adjusted for inflation, as measured by the Consumer Price Index for All Urban Consumers (CPI-U). |
Russell 3000 is a trademark and service mark of Russell Investments. TIAA-CREF products are not promoted or sponsored by, or affiliated with, Russell Investments. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. This report is not approved, reviewed or produced by MSCI.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| 4 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Important information about expenses
All shareholders of the TIAA-CREF Funds incur ongoing costs, including management fees and other fund expenses. They may also incur transactional costs for redemptions or account maintenance fees.
On pages 6 through 9, you will find expense examples for each share class of the funds. These expense examples are intended to help you understand your ongoing costs only (in U.S. dollars) and do not reflect transactional costs or the costs incurred by the funds for buying and selling securities. The examples are designed to help you compare these ongoing costs with the ongoing costs of investing in other mutual funds.
The expenses shown do not include redemption fees or account maintenance fees, which may or may not be applicable, as described in the prospectus. If such fees were included, your costs of investing in the funds would be higher. Note also that shareholders of the TIAA-CREF Funds do not incur a sales charge for purchases, reinvested dividends or other distributions.
The examples are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (December 1, 2014–May 31, 2015).
Actual expenses
The first line of the two lines listed for each fund in the tables uses the fund’s actual expenses and its actual rate of return. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the six-month period.
Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses paid during period” to estimate the expenses you paid during the six-month period. All of the funds have a contractual fee reimbursement. Had these not been in effect, fund expenses would have been higher.
Hypothetical example for comparison purposes
The second line in each fund’s entry shows a hypothetical account value and hypothetical expenses based on the share class’s actual expense ratio for the six-month period and an assumed 5% per year rate of return before expenses. This was not the fund’s actual return.
This hypothetical example cannot be used to estimate the actual expenses you paid for the period but rather allows you to compare the ongoing costs of investing in the fund with the costs of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 5 |
Important information about expenses
Expense examples
Six months ended May 31, 2015
| Lifecycle Index Funds Institutional Class | Beginning account value (12/1/14 | ) | Ending account value (5/31/15 | ) | Expenses paid during period (12/1/14–5/31/15 | * ) | Effective expenses paid during period (12/1/14–5/31/15 | † ) | ||||||||
| Retirement Income Fund actual return | $1,000.00 | $1,021.38 | $0.20 | $0.76 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.73 | 0.20 | 0.76 | ||||||||||||
| 2010 Fund actual return | 1,000.00 | 1,022.72 | 0.20 | 0.76 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.73 | 0.20 | 0.76 | ||||||||||||
| 2015 Fund actual return | 1,000.00 | 1,024.70 | 0.25 | 0.76 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.68 | 0.25 | 0.76 | ||||||||||||
| 2020 Fund actual return | 1,000.00 | 1,027.35 | 0.30 | 0.76 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.63 | 0.30 | 0.76 | ||||||||||||
| 2025 Fund actual return | 1,000.00 | 1,029.62 | 0.35 | 0.81 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.58 | 0.35 | 0.81 | ||||||||||||
| 2030 Fund actual return | 1,000.00 | 1,031.88 | 0.35 | 0.76 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.58 | 0.35 | 0.76 | ||||||||||||
| 2035 Fund actual return | 1,000.00 | 1,033.30 | 0.41 | 0.76 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.53 | 0.40 | 0.76 | ||||||||||||
| 2040 Fund actual return | 1,000.00 | 1,035.96 | 0.41 | 0.76 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.53 | 0.40 | 0.76 | ||||||||||||
| 2045 Fund actual return | 1,000.00 | 1,035.84 | 0.41 | 0.76 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.53 | 0.40 | 0.76 | ||||||||||||
| 2050 Fund actual return | 1,000.00 | 1,036.01 | 0.41 | 0.76 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.53 | 0.40 | 0.76 | ||||||||||||
| 2055 Fund actual return | 1,000.00 | 1,036.04 | 0.41 | 0.76 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.53 | 0.40 | 0.76 | ||||||||||||
| 2060 Fund actual return | 1,000.00 | 1,036.12 | 0.41 | 0.76 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.53 | 0.40 | 0.76 | ||||||||||||
| * | The amounts in the “Expenses paid during period” column are based on each fund’s actual expense ratio for the most recent fiscal half year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2015. The expense charges of one or more of the fund’s share classes may at times reflect a waiver or reimbursement. Please see the prospectus for an explanation, including the date when this waiver or reimbursement is scheduled to end. Without any such waiver or reimbursement, the expenses of the affected share classes would be higher and their performance lower. The annualized expense ratio for the six-month period was 0.04% for the Retirement Income and 2010 Funds; 0.05% for the 2015 Fund; 0.06% for the 2020 Fund; 0.07% for the 2025 and 2030 Funds; and 0.08% for the 2035, 2040, 2045, 2050, 2055 and 2060 Funds. |
| 6 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
continued
| † | The amounts in the “Effective expenses paid during period” column are based on each fund’s total expense ratio for the most recent fiscal half year, which includes the fund’s own expense ratio plus its pro rata share of its underlying funds’ expenses (which the fund bears through its investment in the underlying funds). For the six-month period, the total annualized, weighted average expense ratio was 0.15% for the Retirement Income, 2010, 2015, 2020, 2030, 2035, 2040, 2045, 2050, 2055 and 2060 Funds; and 0.16% for the 2025 Fund. |
Expense examples
Six months ended May 31, 2015
| Lifecycle Index Funds Premier Class | Beginning account value (12/1/14 | ) | Ending account value (5/31/15 | ) | Expenses paid during period (12/1/14–5/31/15 | * ) | Effective expenses paid during period (12/1/14–5/31/15 | † ) | ||||||||
| Retirement Income Fund actual return | $1,000.00 | $1,019.82 | $0.96 | $1.51 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.98 | 0.96 | 1.51 | ||||||||||||
| 2010 Fund actual return | 1,000.00 | 1,022.02 | 0.96 | 1.51 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.98 | 0.96 | 1.51 | ||||||||||||
| 2015 Fund actual return | 1,000.00 | 1,023.28 | 1.01 | 1.51 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.93 | 1.01 | 1.51 | ||||||||||||
| 2020 Fund actual return | 1,000.00 | 1,026.02 | 1.06 | 1.52 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.88 | 1.06 | 1.51 | ||||||||||||
| 2025 Fund actual return | 1,000.00 | 1,028.30 | 1.11 | 1.57 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.83 | 1.11 | 1.56 | ||||||||||||
| 2030 Fund actual return | 1,000.00 | 1,031.23 | 1.11 | 1.52 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.83 | 1.11 | 1.51 | ||||||||||||
| 2035 Fund actual return | 1,000.00 | 1,033.25 | 1.17 | 1.52 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.78 | 1.16 | 1.51 | ||||||||||||
| 2040 Fund actual return | 1,000.00 | 1,035.27 | 1.17 | 1.52 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.78 | 1.16 | 1.51 | ||||||||||||
| 2045 Fund actual return | 1,000.00 | 1,035.18 | 1.17 | 1.52 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.78 | 1.16 | 1.51 | ||||||||||||
| 2050 Fund actual return | 1,000.00 | 1,035.40 | 1.17 | 1.52 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.78 | 1.16 | 1.51 | ||||||||||||
| 2055 Fund actual return | 1,000.00 | 1,034.81 | 1.17 | 1.52 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.78 | 1.16 | 1.51 | ||||||||||||
| 2060 Fund actual return | 1,000.00 | 1,035.72 | 1.17 | 1.52 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.78 | 1.16 | 1.51 | ||||||||||||
| * | The amounts in the “Expenses paid during period” column are based on each fund’s actual expense ratio for the most recent fiscal half year, multiplied by the average account value over the six-month period, multiplied by |
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 7 |
Important information about expenses
| 182/365. There were 182 days in the six months ended May 31, 2015. The expense charges of one or more of the fund’s share classes may at times reflect a waiver or reimbursement. Please see the prospectus for an explanation, including the date when this waiver or reimbursement is scheduled to end. Without any such waiver or reimbursement, the expenses of the affected share classes would be higher and their performance lower. The annualized expense ratio for the six-month period was 0.19% for the Retirement Income and 2010 Funds; 0.20% for the 2015 Fund; 0.21% for the 2020 Fund; 0.22% for the 2025 and 2030 Funds; and 0.23% for the 2035, 2040, 2045, 2050, 2055 and 2060 Funds. | |
| † | The amounts in the “Effective expenses paid during period” column are based on each fund’s total expense ratio for the most recent fiscal half year, which includes the fund’s own expense ratio plus its pro rata share of its underlying funds’ expenses (which the fund bears through its investment in the underlying funds). For the six-month period, the total annualized, weighted average expense ratio was 0.30% for the Retirement Income, 2010, 2015, 2020, 2030, 2035, 2040, 2045, 2050, 2055 and 2060 Funds; and 0.31% for the 2025 Fund. |
Expense examples
Six months ended May 31, 2015
| Lifecycle Index Funds Retirement Class | Beginning account value (12/1/14 | ) | Ending account value (5/31/15 | ) | Expenses paid during period* (12/1/14–5/31/15 | ) | Effective expenses paid during period† (12/1/14–5/31/15 | ) | ||||||||
| Retirement Income Fund actual return | $1,000.00 | $1,019.44 | $1.46 | $2.01 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.49 | 1.46 | 2.02 | ||||||||||||
| 2010 Fund actual return | 1,000.00 | 1,021.56 | 1.46 | 2.02 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.49 | 1.46 | 2.02 | ||||||||||||
| 2015 Fund actual return | 1,000.00 | 1,023.51 | 1.51 | 2.02 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.44 | 1.51 | 2.02 | ||||||||||||
| 2020 Fund actual return | 1,000.00 | 1,025.16 | 1.57 | 2.02 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.39 | 1.56 | 2.02 | ||||||||||||
| 2025 Fund actual return | 1,000.00 | 1,027.99 | 1.62 | 2.07 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.34 | 1.61 | 2.07 | ||||||||||||
| 2030 Fund actual return | 1,000.00 | 1,029.79 | 1.62 | 2.02 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.34 | 1.61 | 2.02 | ||||||||||||
| 2035 Fund actual return | 1,000.00 | 1,032.87 | 1.67 | 2.03 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.29 | 1.66 | 2.02 | ||||||||||||
| 2040 Fund actual return | 1,000.00 | 1,034.38 | 1.67 | 2.03 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.29 | 1.66 | 2.02 | ||||||||||||
| 2045 Fund actual return | 1,000.00 | 1,034.25 | 1.67 | 2.03 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.29 | 1.66 | 2.02 | ||||||||||||
| 2050 Fund actual return | 1,000.00 | 1,034.51 | 1.67 | 2.03 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.29 | 1.66 | 2.02 | ||||||||||||
| 8 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
concluded
| Lifecycle Index Funds Retirement Class | Beginning account value (12/1/14 | ) | Ending account value (5/31/15 | ) | Expenses paid during period (12/1/14–5/31/15 | * ) | Effective expenses paid during period (12/1/14–5/31/15 | † ) | ||||||||
| 2055 Fund actual return | $1,000.00 | $1,034.58 | $1.67 | $2.03 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.29 | 1.66 | 2.02 | ||||||||||||
| 2060 Fund actual return | 1,000.00 | 1,034.46 | 1.67 | 2.03 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.29 | 1.66 | 2.02 | ||||||||||||
| * | The amounts in the “Expenses paid during period” column are based on each fund’s actual expense ratio for the most recent fiscal half year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2015. The expense charges of one or more of the fund’s share classes may at times reflect a waiver or reimbursement. Please see the prospectus for an explanation, including the date when this waiver or reimbursement is scheduled to end. Without any such waiver or reimbursement, the expenses of the affected share classes would be higher and their performance lower. The annualized expense ratio for the six-month period was 0.29% for the Retirement Income and 2010 Funds; 0.30% for the 2015 Fund; 0.31% for the 2020 Fund; 0.32% for the 2025 and 2030 Funds; and 0.33% for the 2035, 2040, 2045, 2050, 2055 and 2060 Funds. |
| † | The amounts in the “Effective expenses paid during period” column are based on each fund’s total expense ratio for the most recent fiscal half year, which includes the fund’s own expense ratio plus its pro rata share of its underlying funds’ expenses (which the fund bears through its investment in the underlying funds). For the six-month period, the total annualized, weighted average expense ratio was 0.40% for the Retirement Income, 2010, 2015, 2020, 2030, 2035, 2040, 2045, 2050, 2055 and 2060 Funds; and 0.41% for the 2025 Fund. |
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 9 |
Investment results of the Lifecycle Index Funds
Performance for the twelve months ended May 31, 2015
The eleven TIAA-CREF Lifecycle Index Funds that were in operation for the entire twelve-month period achieved solid results that approximated the performance of their respective composite benchmarks. Returns ranged from 4.35% for the Retirement Income Fund to 7.33% for the 2055 Fund. The tables on the following pages show returns for all share classes of the funds.
While lower, the funds’ returns were similar to those of their benchmarks, which represent market performance without any fees or expenses. The difference between the individual Lifecycle Index Funds’ returns and those of their respective benchmarks ranged from 0.33 of a percentage point for the 2055 Fund to 0.45 of a percentage point for the 2010 Fund. The 2060 Fund, launched on September 26, 2014, gained 6.14% for the period ended May 31, 2015. (All results are for the Retirement Class.)
U.S. markets rise amid volatility and mixed economic data
The domestic economy showed signs of life throughout much of the twelve-month period relative to many international markets’ economies but tapered off in 2015. Real gross domestic product, which measures the value of all goods and services produced in the nation, decreased 0.2% in the first calendar quarter of 2015. However, the national unemployment rate registered at 5.5% in the final month of the reporting period—down from 6.3% in May 2014. The U.S. dollar rose sharply against most foreign currencies, and inflation remained subdued.
Investors then turned their attention to when the U.S. central bank might start raising short-term interest rates. Conversely, central banks in some European markets, Japan and China boosted efforts to stimulate their sluggish economies, which helped fuel demand for equities in various international markets.
For the twelve-month period, the Russell 3000® Index, a broad measure of the U.S. stock market, advanced 11.86%. The MSCI EAFE (Europe, Australasia, Far East)+EM (Emerging Markets) Index, which measures stock performance in 21 developed market nations outside North America and in 23 emerging market nations, returned –0.38% in U.S. dollars, but gained 15.75% in local currency terms.
| 10 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
The broad investment-grade, fixed-rate bond market, as measured by the Barclays U.S. Aggregate Bond Index, rose 3.03% for the period. Inflation-indexed bonds, as measured by the Barclays U.S. Treasury Inflation Protected Securities Index (Series-L) lost 0.47%.
Strong results from stocks lift the funds’ returns higher
Each of the eleven Lifecycle Index Funds operating for the entire period advanced for the twelve months, fueled by gains in U.S. equities. Funds with greater exposure to U.S. stocks had higher returns.
The Lifecycle Index Funds may invest in up to four sectors of the investment markets: U.S. equity (stocks), international equity (foreign stocks), fixed income and inflation-linked assets. The Lifecycle Index Funds do this by investing in various underlying funds that are managed to track individual benchmark indexes. Those underlying funds may include the TIAA-CREF Equity Index Fund, the International Equity Index Fund, the Emerging Markets Equity Index Fund, the Bond Index Fund and the Inflation-Linked Bond Fund.
For the twelve months, the absolute returns of the funds—that is, without regard to the performance of their respective composite benchmarks—were driven by gains in the U.S. equity and fixed-income sectors. The Equity Index and the Bond Index funds were strong contributors. Conversely, absolute returns were constrained by weaker performance from the emerging market equity and inflation-linked asset sectors.
As a result, those Lifecycle Index Funds with larger allocations to the U.S. equity sector had higher returns than those with larger allocations to the fixed-income and inflation-linked asset sectors. For example, both the 2050 and 2055 funds, each with about 90% of their portfolios invested in equity-based funds, returned 7.25% and 7.33%, respectively, while the Retirement Income Fund, with 40% of its assets allocated to equities, returned 4.35%.
(Performance of the Lifecycle Index Funds’ underlying funds can be found at www.tiaa-cref.org/performance.)
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 11 |
Lifecycle Index Retirement Income Fund
Performance as of May 31, 2015
| Total | Average annual | |||||||||||||||
| return | total return | |||||||||||||||
| Lifecycle Index Retirement | since | |||||||||||||||
| Income Fund | Inception date | 1 year | 5 years | inception | ||||||||||||
| Institutional Class | 9/30/2009 | 4.66 | % | 8.10 | % | 7.66 | % | |||||||||
| Premier Class | 9/30/2009 | 4.50 | 7.93 | 7.50 | ||||||||||||
| Retirement Class | 9/30/2009 | 4.35 | 7.84 | 7.39 | ||||||||||||
| Lifecycle Index Retirement | ||||||||||||||||
| Income Fund Composite Index* | — | 4.79 | 8.25 | 7.85 | † | |||||||||||
| Broad market index | ||||||||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 4.14 | † | |||||||||||
| Russell 3000® Index | — | 11.86 | 16.54 | 15.56 | † | |||||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the Lifecycle Index Retirement Income Fund Composite Index consisted of: 50.0% Barclays U.S. Aggregate Bond Index; 28.0% Russell 3000 Index; 12.0% MSCI EAFE+EM Index; and 10.0% Barclays U.S. Treasury Inflation Protected Securities Index (Series-L). The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 12 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Lifecycle Index Retirement Income Fund
$10,000 invested at fund’s inception
Retirement Class (inception September 30, 2009)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
Asset allocation
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 28.1 | % | 28.0 | % | ||||
| International equity | 11.7 | 12.0 | ||||||
| Fixed income | ||||||||
| Fixed income | 50.0 | 50.0 | ||||||
| Inflation-protected assets | 10.1 | 10.0 | ||||||
| Other assets & liabilities, net | 0.1 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 13 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||||||||
| return | total return | |||||||||||||||
| since | ||||||||||||||||
| Lifecycle Index 2010 Fund | Inception date | 1 year | 5 years | inception | ||||||||||||
| Institutional Class | 9/30/2009 | 4.96 | % | 8.87 | % | 8.32 | % | |||||||||
| Premier Class | 9/30/2009 | 4.89 | 8.73 | 8.16 | ||||||||||||
| Retirement Class | 9/30/2009 | 4.70 | 8.61 | 8.04 | ||||||||||||
| Lifecycle Index 2010 Fund | ||||||||||||||||
| Composite Index* | — | 5.15 | 9.04 | 8.50 | † | |||||||||||
| Broad market index | ||||||||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 4.14 | † | |||||||||||
| Russell 3000® Index | — | 11.86 | 16.54 | 15.56 | † | |||||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the Lifecycle Index 2010 Fund Composite Index consisted of: 46.9% Barclays U.S. Aggregate Bond Index; 31.6% Russell 3000 Index; 13.5% MSCI EAFE+EM Index; and 8.0% Barclays U.S. Treasury Inflation Protected Securities Index (Series-L). The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 14 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Lifecycle Index 2010 Fund
$10,000 invested at fund’s inception
Retirement Class (inception September 30, 2009)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
Asset allocation
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 31.7 | % | 31.5 | % | ||||
| International equity | 13.3 | 13.5 | ||||||
| Fixed income | ||||||||
| Fixed income | 46.9 | 47.0 | ||||||
| Inflation-protected assets | 7.9 | 8.0 | ||||||
| Other assets & liabilities, net | 0.2 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 15 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||||||||
| return | total return | |||||||||||||||
| since | ||||||||||||||||
| Lifecycle Index 2015 Fund | Inception date | 1 year | 5 years | inception | ||||||||||||
| Institutional Class | 9/30/2009 | 5.37 | % | 9.56 | % | 8.87 | % | |||||||||
| Premier Class | 9/30/2009 | 5.16 | 9.40 | 8.71 | ||||||||||||
| Retirement Class | 9/30/2009 | 5.12 | 9.31 | 8.60 | ||||||||||||
| Lifecycle Index 2015 Fund | ||||||||||||||||
| Composite Index* | — | 5.49 | 9.73 | 9.06 | † | |||||||||||
| Broad market index | ||||||||||||||||
| Russell 3000® Index | — | 11.86 | 16.54 | 15.56 | † | |||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 4.14 | † | |||||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the Lifecycle Index 2015 Fund Composite Index consisted of: 43.9% Barclays U.S. Aggregate Bond Index; 35.1% Russell 3000 Index; 15.0% MSCI EAFE+EM Index; and 6.0% Barclays U.S. Treasury Inflation Protected Securities Index (Series-L). The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 16 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Lifecycle Index 2015 Fund
$10,000 invested at fund’s inception
Retirement Class (inception September 30, 2009)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
Asset allocation
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 35.3 | % | 35.0 | % | ||||
| International equity | 14.8 | 15.0 | ||||||
| Fixed income | ||||||||
| Fixed income | 43.9 | 44.0 | ||||||
| Inflation-protected assets | 5.9 | 6.0 | ||||||
| Other assets & liabilities, net | 0.1 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 17 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||||||||
| return | total return | |||||||||||||||
| since | ||||||||||||||||
| Lifecycle Index 2020 Fund | Inception date | 1 year | 5 years | inception | ||||||||||||
| Institutional Class | 9/30/2009 | 5.90 | % | 10.42 | % | 9.58 | % | |||||||||
| Premier Class | 9/30/2009 | 5.70 | 10.23 | 9.40 | ||||||||||||
| Retirement Class | 9/30/2009 | 5.55 | 10.14 | 9.30 | ||||||||||||
| Lifecycle Index 2020 Fund | ||||||||||||||||
| Composite Index* | — | 5.97 | 10.57 | 9.75 | † | |||||||||||
| Broad market index | ||||||||||||||||
| Russell 3000® Index | — | 11.86 | 16.54 | 15.56 | † | |||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 4.14 | † | |||||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the Lifecycle Index 2020 Fund Composite Index consisted of: 40.7% Russell 3000 Index; 37.9% Barclays U.S. Aggregate Bond Index; 17.4% MSCI EAFE+EM Index; and 4.0% Barclays U.S. Treasury Inflation Protected Securities Index (Series-L). The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 18 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Lifecycle Index 2020 Fund
$10,000 invested at fund’s inception
Retirement Class (inception September 30, 2009)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
Asset allocation
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 40.8 | % | 40.6 | % | ||||
| International equity | 17.2 | 17.4 | ||||||
| Fixed income | ||||||||
| Fixed income | 37.9 | 38.0 | ||||||
| Inflation-protected assets | 4.0 | 4.0 | ||||||
| Other assets & liabilities, net | 0.1 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 19 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||||||||
| return | total return | |||||||||||||||
| since | ||||||||||||||||
| Lifecycle Index 2025 Fund | Inception date | 1 year | 5 years | inception | ||||||||||||
| Institutional Class | 9/30/2009 | 6.31 | % | 11.24 | % | 10.27 | % | |||||||||
| Premier Class | 9/30/2009 | 6.11 | 11.08 | 10.09 | ||||||||||||
| Retirement Class | 9/30/2009 | 6.02 | 10.96 | 9.99 | ||||||||||||
| Lifecycle Index 2025 Fund | ||||||||||||||||
| Composite Index* | — | 6.45 | 11.40 | 10.43 | † | |||||||||||
| Broad market index | ||||||||||||||||
| Russell 3000® Index | — | 11.86 | 16.54 | 15.56 | † | |||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 4.14 | † | |||||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the Lifecycle Index 2025 Fund Composite Index consisted of: 46.3% Russell 3000 Index; 31.9% Barclays U.S. Aggregate Bond Index; and 19.8% MSCI EAFE+EM Index; and 2.0% Barclays U.S. Treasury Inflation Protected Securities Index (Series-L). The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 20 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Lifecycle Index 2025 Fund
$10,000 invested at fund’s inception
Retirement Class (inception September 30, 2009)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
Asset allocation
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 46.4 | % | 46.2 | % | ||||
| International equity | 19.5 | 19.8 | ||||||
| Fixed income | ||||||||
| Fixed income | 31.9 | 32.0 | ||||||
| Inflation-protected assets | 2.0 | 2.0 | ||||||
| Other assets & liabilities, net | 0.2 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 21 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||||||||
| return | total return | |||||||||||||||
| since | ||||||||||||||||
| Lifecycle Index 2030 Fund | Inception date | 1 year | 5 years | inception | ||||||||||||
| Institutional Class | 9/30/2009 | 6.77 | % | 12.09 | % | 10.97 | % | |||||||||
| Premier Class | 9/30/2009 | 6.65 | 11.92 | 10.80 | ||||||||||||
| Retirement Class | 9/30/2009 | 6.51 | 11.79 | 10.68 | ||||||||||||
| Lifecycle Index 2030 Fund | ||||||||||||||||
| Composite Index* | — | 6.91 | 12.24 | 11.11 | † | |||||||||||
| Broad market index | ||||||||||||||||
| Russell 3000®Index | — | 11.86 | 16.54 | 15.56 | † | |||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 4.14 | † | |||||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the Lifecycle Index 2030 Fund Composite Index consisted of: 51.9% Russell 3000 Index; 25.9% Barclays U.S. Aggregate Bond Index; and 22.2% MSCI EAFE+EM Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 22 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Lifecycle Index 2030 Fund
$10,000 invested at fund’s inception
Retirement Class (inception September 30, 2009)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
Asset allocation
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 52.0 | % | 51.8 | % | ||||
| International equity | 21.9 | 22.2 | ||||||
| Fixed income | 25.9 | 26.0 | ||||||
| Other assets & liabilities, net | 0.2 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 23 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||||||||
| return | total return | |||||||||||||||
| since | ||||||||||||||||
| Lifecycle Index 2035 Fund | Inception date | 1 year | 5 years | inception | ||||||||||||
| Institutional Class | 9/30/2009 | 7.14 | % | 12.87 | % | 11.61 | % | |||||||||
| Premier Class | 9/30/2009 | 7.02 | 12.72 | 11.44 | ||||||||||||
| Retirement Class | 9/30/2009 | 6.92 | 12.60 | 11.33 | ||||||||||||
| Lifecycle Index 2035 Fund | ||||||||||||||||
| Composite Index* | — | 7.30 | 13.05 | 11.77 | † | |||||||||||
| Broad market index | ||||||||||||||||
| Russell 3000® Index | — | 11.86 | 16.54 | 15.56 | † | |||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 4.14 | † | |||||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the Lifecycle Index 2035 Fund Composite Index consisted of: 57.5% Russell 3000 Index; 24.6% MSCI EAFE+EM Index; and 17.9% Barclays U.S. Aggregate Bond Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 24 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Lifecycle Index 2035 Fund
$10,000 invested at fund’s inception
Retirement Class (inception September 30, 2009)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
Asset allocation
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 57.7 | % | 57.4 | % | ||||
| International equity | 24.2 | 24.6 | ||||||
| Fixed income | 17.9 | 18.0 | ||||||
| Other assets & liabilities, net | 0.2 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 25 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||||||||
| return | total return | |||||||||||||||
| since | ||||||||||||||||
| Lifecycle Index 2040 Fund | Inception date | 1 year | 5 years | inception | ||||||||||||
| Institutional Class | 9/30/2009 | 7.55 | % | 13.30 | % | 11.97 | % | |||||||||
| Premier Class | 9/30/2009 | 7.36 | 13.12 | 11.80 | ||||||||||||
| Retirement Class | 9/30/2009 | 7.28 | 13.01 | 11.69 | ||||||||||||
| Lifecycle Index 2040 Fund | ||||||||||||||||
| Composite Index* | — | 7.66 | 13.46 | 12.12 | † | |||||||||||
| Broad market index | ||||||||||||||||
| Russell 3000® Index | — | 11.86 | 16.54 | 15.56 | † | |||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 4.14 | † | |||||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the Lifecycle Index 2040 Fund Composite Index consisted of: 63.0% Russell 3000 Index; 27.0% MSCI EAFE+EM Index; and 10.0% Barclays U.S. Aggregate Bond Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 26 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Lifecycle Index 2040 Fund
$10,000 invested at fund’s inception
Retirement Class (inception September 30, 2009)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
Asset allocation
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 63.1 | % | 63.0 | % | ||||
| International equity | 26.6 | 27.0 | ||||||
| Fixed income | 10.0 | 10.0 | ||||||
| Other assets & liabilities, net | 0.3 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 27 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||||||||
| return | total return | |||||||||||||||
| since | ||||||||||||||||
| Lifecycle Index 2045 Fund | Inception date | 1 year | 5 years | inception | ||||||||||||
| Institutional Class | 9/30/2009 | 7.56 | % | 13.30 | % | 11.96 | % | |||||||||
| Premier Class | 9/30/2009 | 7.44 | 13.13 | 11.80 | ||||||||||||
| Retirement Class | 9/30/2009 | 7.29 | 13.02 | 11.68 | ||||||||||||
| Lifecycle Index 2045 Fund | ||||||||||||||||
| Composite Index* | — | 7.66 | 13.46 | 12.12 | † | |||||||||||
| Broad market index | ||||||||||||||||
| Russell 3000® Index | — | 11.86 | 16.54 | 15.56 | † | |||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 4.14 | † | |||||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the Lifecycle Index 2045 Fund Composite Index consisted of: 63.0% Russell 3000 Index; 27.0% MSCI EAFE+EM Index; and 10.0% Barclays U.S. Aggregate Bond Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 28 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Lifecycle Index 2045 Fund
$10,000 invested at fund’s inception
Retirement Class (inception September 30, 2009)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
Asset allocation
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 62.9 | % | 63.0 | % | ||||
| International equity | 26.7 | 27.0 | ||||||
| Fixed income | 10.0 | 10.0 | ||||||
| Other assets & liabilities, net | 0.4 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 29 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||||||||
| return | total return | |||||||||||||||
| since | ||||||||||||||||
| Lifecycle Index 2050 Fund | Inception date | 1 year | 5 years | inception | ||||||||||||
| Institutional Class | 9/30/2009 | 7.58 | % | 13.30 | % | 11.98 | % | |||||||||
| Premier Class | 9/30/2009 | 7.40 | 13.14 | 11.81 | ||||||||||||
| Retirement Class | 9/30/2009 | 7.25 | 13.00 | 11.68 | ||||||||||||
| Lifecycle Index 2050 Fund | ||||||||||||||||
| Composite Index* | — | 7.66 | 13.46 | 12.12 | † | |||||||||||
| Broad market index | ||||||||||||||||
| Russell 3000® Index | — | 11.86 | 16.54 | 15.56 | † | |||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 4.14 | † | |||||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the Lifecycle Index 2050 Fund Composite Index consisted of: 63.0% Russell 3000 Index; 27.0% MSCI EAFE+EM Index; and 10.0% Barclays U.S. Aggregate Bond Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 30 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Lifecycle Index 2050 Fund
$10,000 invested at fund’s inception
Retirement Class (inception September 30, 2009)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
Asset allocation
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 62.9 | % | 63.0 | % | ||||
| International equity | 26.6 | 27.0 | ||||||
| Fixed income | 9.9 | 10.0 | ||||||
| Other assets & liabilities, net | 0.6 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 31 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||||
| return | total return | |||||||||||
| Lifecycle Index 2055 Fund | Inception date | 1 year | since inception | |||||||||
| Institutional Class | 4/29/2011 | 7.47 | % | 9.83 | % | |||||||
| Premier Class | 4/29/2011 | 7.35 | 9.67 | |||||||||
| Retirement Class | 4/29/2011 | 7.33 | 9.57 | |||||||||
| Lifecycle Index 2055 Fund | ||||||||||||
| Composite Index* | — | 7.66 | 9.96 | † | ||||||||
| Broad market index | ||||||||||||
| Russell 3000® Index | — | 11.86 | 13.42 | † | ||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.67 | † | ||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the Lifecycle Index 2055 Fund Composite Index consisted of: 63.0% Russell 3000 Index; 27.0% MSCI EAFE+EM Index; and 10.0% Barclays U.S. Aggregate Bond Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 32 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Lifecycle Index 2055 Fund
$10,000 invested at fund’s inception
Retirement Class (inception April 29, 2011)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
Asset allocation
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 62.7 | % | 63.0 | % | ||||
| International equity | 26.6 | 27.0 | ||||||
| Fixed income | 9.9 | 10.0 | ||||||
| Other assets & liabilities, net | 0.8 | — | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 33 |
Performance as of May 31, 2015
| Total return | ||||||||
| Lifecycle Index 2060 Fund | Inception date | since inception | ||||||
| Institutional Class | 9/26/2014 | 6.31 | % | |||||
| Premier Class | 9/26/2014 | 6.26 | ||||||
| Retirement Class | 9/26/2014 | 6.14 | ||||||
| Lifecycle Index 2060 Fund | ||||||||
| Composite Index* | — | 6.45 | † | |||||
| Broad market index | ||||||||
| Russell 3000® Index | — | 8.41 | † | |||||
| Barclays U.S. Aggregate Bond Index | — | 2.85 | † | |||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | As of the close of business on May 31, 2015, the Lifecycle Index 2060 Fund Composite Index consisted of: 63.0% Russell 3000 Index; 27.0% MSCI EAFE+EM Index; and 10.0% Barclays U.S. Aggregate Bond Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Retirement Class. |
| 34 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Lifecycle Index 2060 Fund
$10,000 invested at fund’s inception
Retirement Class (inception September 26, 2014)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
Asset allocation
| % of | Target | |||||||
| net assets as | allocation | |||||||
| of 5/31/15 | for 6/30/15 | |||||||
| Equity | ||||||||
| U.S. equity | 63.3 | % | 63.0 | % | ||||
| International equity | 26.6 | 27.0 | ||||||
| Fixed income | 10.1 | 10.0 | ||||||
| Total | 100.0 | 100.0 | ||||||
Target allocation
For June 30, 2015
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 35 |
Lifecycle Index Retirement Income Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.9% (a) | |||||||||||||
| FIXED INCOME — 50.0% | |||||||||||||
| 2,157,503 | TIAA-CREF Bond Index Fund | $ | 23,538,355 | 50.0 | % | ||||||||
| TOTAL FIXED INCOME | 23,538,355 | 50.0 | |||||||||||
| INFLATION-PROTECTED ASSETS — 10.1% | |||||||||||||
| 412,647 | TIAA-CREF Inflation-Linked Bond Fund | 4,733,065 | 10.1 | ||||||||||
| TOTAL INFLATION-PROTECTED ASSETS | 4,733,065 | 10.1 | |||||||||||
| INTERNATIONAL EQUITY — 11.7% | |||||||||||||
| 122,794 | TIAA-CREF Emerging Markets Equity Index Fund | 1,280,745 | 2.7 | ||||||||||
| 222,407 | TIAA-CREF International Equity Index Fund | 4,252,414 | 9.0 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 5,533,159 | 11.7 | |||||||||||
| U.S. EQUITY — 28.1% | |||||||||||||
| 823,999 | TIAA-CREF Equity Index Fund | 13,249,909 | 28.1 | ||||||||||
| TOTAL U.S. EQUITY | 13,249,909 | 28.1 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $41,550,839) | 47,054,488 | 99.9 | ||||||||||
| TOTAL PORTFOLIO | (Cost $41,550,839) | 47,054,488 | 99.9 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 48,246 | 0.1 | |||||||||||
| NET ASSETS | $ | 47,102,734 | 100.0 | % | |||||||||
| Lifecycle Index 2010 Fund ■ May 31, 2015 | |||||||||||||
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.8% (a) | |||||||||||||
| FIXED INCOME — 46.9% | |||||||||||||
| 8,058,085 | TIAA-CREF Bond Index Fund | $ | 87,913,710 | 46.9 | % | ||||||||
| TOTAL FIXED INCOME | 87,913,710 | 46.9 | |||||||||||
| INFLATION-PROTECTED ASSETS — 7.9% | |||||||||||||
| 1,299,052 | TIAA-CREF Inflation-Linked Bond Fund | 14,900,125 | 7.9 | ||||||||||
| TOTAL INFLATION-PROTECTED ASSETS | 14,900,125 | 7.9 | |||||||||||
| INTERNATIONAL EQUITY — 13.3% | |||||||||||||
| 554,177 | TIAA-CREF Emerging Markets Equity Index Fund | 5,780,066 | 3.1 | ||||||||||
| 1,005,863 | TIAA-CREF International Equity Index Fund | 19,232,104 | 10.2 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 25,012,170 | 13.3 | |||||||||||
| U.S. EQUITY — 31.7% | |||||||||||||
| 3,698,315 | TIAA-CREF Equity Index Fund | 59,468,910 | 31.7 | ||||||||||
| TOTAL U.S. EQUITY | 59,468,910 | 31.7 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $158,381,795) | 187,294,915 | 99.8 | ||||||||||
| TOTAL PORTFOLIO | (Cost $158,381,795) | 187,294,915 | 99.8 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 288,109 | 0.2 | |||||||||||
| NET ASSETS | $ | 187,583,024 | 100.0 | % | |||||||||
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| 36 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements |
Portfolio of investments
Lifecycle Index 2015 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.9% (a) | |||||||||||||
| FIXED INCOME — 43.9% | |||||||||||||
| 13,734,989 | TIAA-CREF Bond Index Fund | $ | 149,848,729 | 43.9 | % | ||||||||
| TOTAL FIXED INCOME | 149,848,729 | 43.9 | |||||||||||
| INFLATION-PROTECTED ASSETS — 5.9% | |||||||||||||
| 1,764,072 | TIAA-CREF Inflation-Linked Bond Fund | 20,233,907 | 5.9 | ||||||||||
| TOTAL INFLATION-PROTECTED ASSETS | 20,233,907 | 5.9 | |||||||||||
| INTERNATIONAL EQUITY — 14.8% | |||||||||||||
| 1,122,908 | TIAA-CREF Emerging Markets Equity Index Fund | 11,711,932 | 3.4 | ||||||||||
| 2,038,149 | TIAA-CREF International Equity Index Fund | 38,969,408 | 11.4 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 50,681,340 | 14.8 | |||||||||||
| U.S. EQUITY — 35.3% | |||||||||||||
| 7,487,042 | TIAA-CREF Equity Index Fund | 120,391,640 | 35.3 | ||||||||||
| TOTAL U.S. EQUITY | 120,391,640 | 35.3 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $285,842,813) | 341,155,616 | 99.9 | ||||||||||
| TOTAL PORTFOLIO | (Cost $285,842,813) | 341,155,616 | 99.9 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 338,100 | 0.1 | |||||||||||
| NET ASSETS | $ | 341,493,716 | 100.0 | % | |||||||||
| Lifecycle Index 2020 Fund ■ May 31, 2015 | |||||||||||||
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.9% (a) | |||||||||||||
| FIXED INCOME — 37.9% | |||||||||||||
| 19,333,318 | TIAA-CREF Bond Index Fund | $ | 210,926,497 | 37.9 | % | ||||||||
| TOTAL FIXED INCOME | 210,926,497 | 37.9 | |||||||||||
| INFLATION-PROTECTED ASSETS — 4.0% | |||||||||||||
| 1,927,068 | TIAA-CREF Inflation-Linked Bond Fund | 22,103,475 | 4.0 | ||||||||||
| TOTAL INFLATION-PROTECTED ASSETS | 22,103,475 | 4.0 | |||||||||||
| INTERNATIONAL EQUITY — 17.2% | |||||||||||||
| 2,120,984 | TIAA-CREF Emerging Markets Equity Index Fund | 22,121,864 | 4.0 | ||||||||||
| 3,843,078 | TIAA-CREF International Equity Index Fund | 73,479,642 | 13.2 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 95,601,506 | 17.2 | |||||||||||
| U.S. EQUITY — 40.8% | |||||||||||||
| 14,142,776 | TIAA-CREF Equity Index Fund | 227,415,832 | 40.8 | ||||||||||
| TOTAL U.S. EQUITY | 227,415,832 | 40.8 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $469,870,996) | 556,047,310 | 99.9 | ||||||||||
| TOTAL PORTFOLIO | (Cost $469,870,996) | 556,047,310 | 99.9 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 807,958 | 0.1 | |||||||||||
| NET ASSETS | $ | 556,855,268 | 100.0 | % | |||||||||
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 37 |
Portfolio of investments
Lifecycle Index 2025 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.8% (a) | |||||||||||||
| FIXED INCOME — 31.9% | |||||||||||||
| 16,298,790 | TIAA-CREF Bond Index Fund | $ | 177,819,801 | 31.9 | % | ||||||||
| TOTAL FIXED INCOME | 177,819,801 | 31.9 | |||||||||||
| INFLATION-PROTECTED ASSETS — 2.0% | |||||||||||||
| 960,167 | TIAA-CREF Inflation-Linked Bond Fund | 11,013,110 | 2.0 | ||||||||||
| TOTAL INFLATION-PROTECTED ASSETS | 11,013,110 | 2.0 | |||||||||||
| INTERNATIONAL EQUITY — 19.5% | |||||||||||||
| 2,403,077 | TIAA-CREF Emerging Markets Equity Index Fund | 25,064,096 | 4.5 | ||||||||||
| 4,354,539 | TIAA-CREF International Equity Index Fund | 83,258,784 | 15.0 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 108,322,880 | 19.5 | |||||||||||
| U.S. EQUITY — 46.4% | |||||||||||||
| 16,071,612 | TIAA-CREF Equity Index Fund | 258,431,516 | 46.4 | ||||||||||
| TOTAL U.S. EQUITY | 258,431,516 | 46.4 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $461,361,642) | 555,587,307 | 99.8 | ||||||||||
| TOTAL PORTFOLIO | (Cost $461,361,642) | 555,587,307 | 99.8 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 1,212,458 | 0.2 | |||||||||||
| NET ASSETS | $ | 556,799,765 | 100.0 | % | |||||||||
| Lifecycle Index 2030 Fund ■ May 31, 2015 | |||||||||||||
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.8% (a) | |||||||||||||
| FIXED INCOME — 25.9% | |||||||||||||
| 13,898,804 | TIAA-CREF Bond Index Fund | $ | 151,635,949 | 25.9 | % | ||||||||
| TOTAL FIXED INCOME | 151,635,949 | 25.9 | |||||||||||
| INTERNATIONAL EQUITY — 21.9% | |||||||||||||
| 2,834,426 | TIAA-CREF Emerging Markets Equity Index Fund | 29,563,063 | 5.1 | ||||||||||
| 5,133,408 | TIAA-CREF International Equity Index Fund | 98,150,767 | 16.8 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 127,713,830 | 21.9 | |||||||||||
| U.S. EQUITY — 52.0% | |||||||||||||
| 18,924,500 | TIAA-CREF Equity Index Fund | 304,305,967 | 52.0 | ||||||||||
| TOTAL U.S. EQUITY | 304,305,967 | 52.0 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $475,062,075) | 583,655,746 | 99.8 | ||||||||||
| TOTAL PORTFOLIO | (Cost $475,062,075) | 583,655,746 | 99.8 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 1,185,687 | 0.2 | |||||||||||
| NET ASSETS | $ | 584,841,433 | 100.0 | % | |||||||||
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| 38 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements |
Portfolio of investments
Lifecycle Index 2035 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.8% (a) | |||||||||||||
| FIXED INCOME — 17.9% | |||||||||||||
| 9,061,536 | TIAA-CREF Bond Index Fund | $ | 98,861,355 | 17.9 | % | ||||||||
| TOTAL FIXED INCOME | 98,861,355 | 17.9 | |||||||||||
| INTERNATIONAL EQUITY — 24.2% | |||||||||||||
| 2,963,410 | TIAA-CREF Emerging Markets Equity Index Fund | 30,908,365 | 5.6 | ||||||||||
| 5,366,276 | TIAA-CREF International Equity Index Fund | 102,603,196 | 18.6 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 133,511,561 | 24.2 | |||||||||||
| U.S. EQUITY — 57.7% | |||||||||||||
| 19,764,107 | TIAA-CREF Equity Index Fund | 317,806,845 | 57.7 | ||||||||||
| TOTAL U.S. EQUITY | 317,806,845 | 57.7 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $436,431,227) | 550,179,761 | 99.8 | ||||||||||
| TOTAL PORTFOLIO | (Cost $436,431,227) | 550,179,761 | 99.8 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 1,122,748 | 0.2 | |||||||||||
| NET ASSETS | $ | 551,302,509 | 100.0 | % | |||||||||
| Lifecycle Index 2040 Fund ■ May 31, 2015 | |||||||||||||
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.7% (a) | |||||||||||||
| FIXED INCOME — 10.0% | |||||||||||||
| 5,860,146 | TIAA-CREF Bond Index Fund | $ | 63,934,195 | 10.0 | % | ||||||||
| TOTAL FIXED INCOME | 63,934,195 | 10.0 | |||||||||||
| INTERNATIONAL EQUITY — 26.6% | |||||||||||||
| 3,779,810 | TIAA-CREF Emerging Markets Equity Index Fund | 39,423,423 | 6.2 | ||||||||||
| 6,844,165 | TIAA-CREF International Equity Index Fund | 130,860,435 | 20.4 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 170,283,858 | 26.6 | |||||||||||
| U.S. EQUITY — 63.1% | |||||||||||||
| 25,125,856 | TIAA-CREF Equity Index Fund | 404,023,770 | 63.1 | ||||||||||
| TOTAL U.S. EQUITY | 404,023,770 | 63.1 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $490,839,672) | 638,241,823 | 99.7 | ||||||||||
| TOTAL PORTFOLIO | (Cost $490,839,672) | 638,241,823 | 99.7 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 1,843,575 | 0.3 | |||||||||||
| NET ASSETS | $ | 640,085,398 | 100.0 | % | |||||||||
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 39 |
Portfolio of investments
Lifecycle Index 2045 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.6% (a) | |||||||||||||
| FIXED INCOME — 10.0% | |||||||||||||
| 2,876,549 | TIAA-CREF Bond Index Fund | $ | 31,383,152 | 10.0 | % | ||||||||
| TOTAL FIXED INCOME | 31,383,152 | 10.0 | |||||||||||
| INTERNATIONAL EQUITY — 26.7% | |||||||||||||
| 1,863,767 | TIAA-CREF Emerging Markets Equity Index Fund | 19,439,089 | 6.2 | ||||||||||
| 3,374,634 | TIAA-CREF International Equity Index Fund | 64,523,003 | 20.5 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 83,962,092 | 26.7 | |||||||||||
| U.S. EQUITY — 62.9% | |||||||||||||
| 12,294,942 | TIAA-CREF Equity Index Fund | 197,702,671 | 62.9 | ||||||||||
| TOTAL U.S. EQUITY | 197,702,671 | 62.9 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $255,636,037) | 313,047,915 | 99.6 | ||||||||||
| TOTAL PORTFOLIO | (Cost $255,636,037) | 313,047,915 | 99.6 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 1,240,740 | 0.4 | |||||||||||
| NET ASSETS | $ | 314,288,655 | 100.0 | % | |||||||||
| Lifecycle Index 2050 Fund ■ May 31, 2015 | |||||||||||||
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.4% (a) | |||||||||||||
| FIXED INCOME — 9.9% | |||||||||||||
| 1,897,095 | TIAA-CREF Bond Index Fund | $ | 20,697,309 | 9.9 | % | ||||||||
| TOTAL FIXED INCOME | 20,697,309 | 9.9 | |||||||||||
| INTERNATIONAL EQUITY — 26.6% | |||||||||||||
| 1,228,724 | TIAA-CREF Emerging Markets Equity Index Fund | 12,815,587 | 6.2 | ||||||||||
| 2,224,812 | TIAA-CREF International Equity Index Fund | 42,538,415 | 20.4 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 55,354,002 | 26.6 | |||||||||||
| U.S. EQUITY — 62.9% | |||||||||||||
| 8,136,768 | TIAA-CREF Equity Index Fund | 130,839,226 | 62.9 | ||||||||||
| TOTAL U.S. EQUITY | 130,839,226 | 62.9 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $169,587,602) | 206,890,537 | 99.4 | ||||||||||
| TOTAL PORTFOLIO | (Cost $169,587,602) | 206,890,537 | 99.4 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 1,145,520 | 0.6 | |||||||||||
| NET ASSETS | $ | 208,036,057 | 100.0 | % | |||||||||
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| 40 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements |
Portfolio of investments
Lifecycle Index 2055 Fund ■ May 31, 2015
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 99.2% (a) | |||||||||||||
| FIXED INCOME — 9.9% | |||||||||||||
| 452,889 | TIAA-CREF Bond Index Fund | $ | 4,941,017 | 9.9 | % | ||||||||
| TOTAL FIXED INCOME | 4,941,017 | 9.9 | |||||||||||
| INTERNATIONAL EQUITY — 26.6% | |||||||||||||
| 293,369 | TIAA-CREF Emerging Markets Equity Index Fund | 3,059,841 | 6.2 | ||||||||||
| 531,193 | TIAA-CREF International Equity Index Fund | 10,156,407 | 20.4 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 13,216,248 | 26.6 | |||||||||||
| U.S. EQUITY — 62.7% | |||||||||||||
| 1,939,959 | TIAA-CREF Equity Index Fund | 31,194,534 | 62.7 | ||||||||||
| TOTAL U.S. EQUITY | 31,194,534 | 62.7 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $42,493,393) | 49,351,799 | 99.2 | ||||||||||
| TOTAL PORTFOLIO | (Cost $42,493,393) | 49,351,799 | 99.2 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | 377,788 | 0.8 | |||||||||||
| NET ASSETS | $ | 49,729,587 | 100.0 | % | |||||||||
| Lifecycle Index 2060 Fund ■ May 31, 2015 | |||||||||||||
| % of net | |||||||||||||
| Shares | Security | Value | assets | ||||||||||
| TIAA-CREF FUNDS — 100.0% (a) | |||||||||||||
| FIXED INCOME — 10.1% | |||||||||||||
| 98,588 | TIAA-CREF Bond Index Fund | $ | 1,075,600 | 10.1 | % | ||||||||
| TOTAL FIXED INCOME | 1,075,600 | 10.1 | |||||||||||
| INTERNATIONAL EQUITY — 26.6% | |||||||||||||
| 63,133 | TIAA-CREF Emerging Markets Equity Index Fund | 658,474 | 6.1 | ||||||||||
| 114,459 | TIAA-CREF International Equity Index Fund | 2,188,453 | 20.5 | ||||||||||
| TOTAL INTERNATIONAL EQUITY | 2,846,927 | 26.6 | |||||||||||
| U.S. EQUITY — 63.3% | |||||||||||||
| 420,791 | TIAA-CREF Equity Index Fund | 6,766,318 | 63.3 | ||||||||||
| TOTAL U.S. EQUITY | 6,766,318 | 63.3 | |||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $10,309,969) | 10,688,845 | 100.0 | ||||||||||
| TOTAL PORTFOLIO | (Cost $10,309,969) | 10,688,845 | 100.0 | ||||||||||
| OTHER ASSETS & LIABILITIES, NET | (3,277 | ) | 0.0 | ||||||||||
| NET ASSETS | $ | 10,685,568 | 100.0 | % | |||||||||
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 41 |
Statements of assets and liabilities
TIAA-CREF Lifecycle Index Funds ■ May 31, 2015
| Lifecycle Index | ||||||||||||||||||||||||
| Retirement | Lifecycle Index | Lifecycle Index | Lifecycle Index | Lifecycle Index | Lifecycle Index | |||||||||||||||||||
| Income Fund | 2010 Fund | 2015 Fund | 2020 Fund | 2025 Fund | 2030 Fund | |||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Affiliated investments, at value‡ | $ | 47,054,488 | $ | 187,294,915 | $ | 341,155,616 | $ | 556,047,310 | $ | 555,587,307 | $ | 583,655,746 | ||||||||||||
| Cash | 446,656 | 506,541 | 727,149 | 1,730,225 | 2,498,907 | 1,491,908 | ||||||||||||||||||
| Receivable from securities transactions | — | 435,079 | 989,839 | 1,519,928 | 969,390 | 1,525,216 | ||||||||||||||||||
| Receivable from Fund shares sold | 28,617 | 279,104 | 642,777 | 768,036 | 1,479,166 | 1,331,598 | ||||||||||||||||||
| Dividends and interest receivable | 39,910 | 157,072 | 266,121 | 371,137 | 311,843 | 267,020 | ||||||||||||||||||
| Due from affiliates | 1,679 | 3,143 | 4,213 | 5,313 | 4,536 | 4,722 | ||||||||||||||||||
| Other | 959 | 4,521 | 7,643 | 10,428 | 10,160 | 10,709 | ||||||||||||||||||
| Total assets | 47,572,309 | 188,680,375 | 343,793,358 | 560,452,377 | 560,861,309 | 588,286,919 | ||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||
| Management fees payable | 641 | 2,569 | 4,682 | 7,626 | 7,610 | 8,020 | ||||||||||||||||||
| Service agreement fees payable | 293 | 1,411 | 2,209 | 3,827 | 3,380 | 3,201 | ||||||||||||||||||
| Distribution fees payable | 1,241 | 2,976 | 7,065 | 14,937 | 15,090 | 16,536 | ||||||||||||||||||
| Due to affiliates | 245 | 987 | 1,860 | 2,811 | 2,855 | 2,949 | ||||||||||||||||||
| Payable for securities transactions | 459,750 | 1,045,329 | 2,014,589 | 3,525,678 | 3,991,640 | 3,370,716 | ||||||||||||||||||
| Payable for Fund shares redeemed | 38 | 27,359 | 242,759 | 71 | 30 | 31 | ||||||||||||||||||
| Payable for trustee compensation | 1,010 | 4,749 | 8,097 | 11,152 | 10,881 | 11,471 | ||||||||||||||||||
| Accrued expenses and other payables | 6,357 | 11,971 | 18,381 | 31,007 | 30,058 | 32,562 | ||||||||||||||||||
| Total liabilities | 469,575 | 1,097,351 | 2,299,642 | 3,597,109 | 4,061,544 | 3,445,486 | ||||||||||||||||||
| NET ASSETS | $ | 47,102,734 | $ | 187,583,024 | $ | 341,493,716 | $ | 556,855,268 | $ | 556,799,765 | $ | 584,841,433 | ||||||||||||
| NET ASSETS CONSIST OF: | ||||||||||||||||||||||||
| Paid-in-capital | $ | 41,843,046 | $ | 159,344,014 | $ | 286,599,958 | $ | 470,410,852 | $ | 462,078,164 | $ | 475,564,751 | ||||||||||||
| Undistributed net investment income (loss) | 69,914 | 683,046 | 1,130,610 | 1,470,323 | 1,169,876 | 934,300 | ||||||||||||||||||
| Accumulated net realized gain (loss) on total investments | (313,875 | ) | (1,357,156 | ) | (1,549,655 | ) | (1,202,221 | ) | (673,940 | ) | (251,289 | ) | ||||||||||||
| Net unrealized appreciation (depreciation) on total investments | 5,503,649 | 28,913,120 | 55,312,803 | 86,176,314 | 94,225,665 | 108,593,671 | ||||||||||||||||||
| NET ASSETS | $ | 47,102,734 | $ | 187,583,024 | $ | 341,493,716 | $ | 556,855,268 | $ | 556,799,765 | $ | 584,841,433 | ||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 28,536,969 | $ | 122,842,405 | $ | 221,139,122 | $ | 327,209,243 | $ | 337,861,674 | $ | 360,424,417 | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 2,138,398 | 8,729,112 | 15,178,596 | 21,604,971 | 21,539,025 | 22,184,110 | ||||||||||||||||||
| Net asset value per share | $13.35 | $14.07 | $14.57 | $15.15 | $15.69 | $16.25 | ||||||||||||||||||
| PREMIER CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 9,788,249 | $ | 23,378,582 | $ | 55,573,970 | $ | 117,292,998 | $ | 118,946,701 | $ | 130,175,267 | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 733,870 | 1,665,650 | 3,827,639 | 7,774,897 | 7,607,948 | 8,042,765 | ||||||||||||||||||
| Net asset value per share | $13.34 | $14.04 | $14.52 | $15.09 | $15.63 | $16.19 | ||||||||||||||||||
| RETIREMENT CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 8,777,516 | $ | 41,362,037 | $ | 64,780,624 | $ | 112,353,027 | $ | 99,991,390 | $ | 94,241,749 | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 658,467 | 2,960,492 | 4,475,057 | 7,468,540 | 6,417,187 | 5,840,849 | ||||||||||||||||||
| Net asset value per share | $13.33 | $13.97 | $14.48 | $15.04 | $15.58 | $16.13 | ||||||||||||||||||
| ‡ Affiliated investments, cost | $ | 41,550,839 | $ | 158,381,795 | $ | 285,842,813 | $ | 469,870,996 | $ | 461,361,642 | $ | 475,062,075 | ||||||||||||
| 42 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 43 |
| Statements of assets and liabilities | concluded |
TIAA-CREF Lifecycle Index Funds ■ May 31, 2015
| Lifecycle Index | Lifecycle Index | Lifecycle Index | Lifecycle Index | Lifecycle Index | Lifecycle Index | |||||||||||||||||||
| 2035 Fund | 2040 Fund | 2045 Fund | 2050 Fund | 2055 Fund | 2060 Fund | |||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||
| Affiliated investments, at value‡ | $ | 550,179,761 | $ | 638,241,823 | $ | 313,047,915 | $ | 206,890,537 | $ | 49,351,799 | $ | 10,688,845 | ||||||||||||
| Cash | 2,313,213 | 1,994,629 | 1,578,617 | 724,680 | 164,400 | 15,788 | ||||||||||||||||||
| Receivable from securities transactions | 597,762 | 258,324 | — | — | — | 24,542 | ||||||||||||||||||
| Receivable from Fund shares sold | 1,405,485 | 1,997,389 | 1,655,576 | 1,458,443 | 484,140 | 4,307 | ||||||||||||||||||
| Dividends and interest receivable | 172,872 | 114,381 | 55,431 | 36,740 | 8,702 | 1,893 | ||||||||||||||||||
| Due from affiliates | 3,759 | 4,172 | 2,708 | 2,234 | 1,420 | 2,253 | ||||||||||||||||||
| Other | 10,265 | 12,691 | 4,856 | 3,157 | 683 | 45 | ||||||||||||||||||
| Total assets | 554,683,117 | 642,623,409 | 316,345,103 | 209,115,791 | 50,011,144 | 10,737,673 | ||||||||||||||||||
| LIABILITIES | ||||||||||||||||||||||||
| Management fees payable | 7,546 | 8,771 | 4,290 | 2,839 | 677 | 147 | ||||||||||||||||||
| Service agreement fees payable | 2,429 | 2,510 | 1,529 | 1,041 | 253 | 36 | ||||||||||||||||||
| Distribution fees payable | 13,830 | 13,083 | 10,003 | 6,855 | 967 | 136 | ||||||||||||||||||
| Due to affiliates | 2,870 | 3,489 | 1,556 | 1,005 | 214 | 58 | ||||||||||||||||||
| Payable for securities transactions | 3,313,762 | 2,463,075 | 2,013,500 | 1,049,000 | 272,500 | 30,792 | ||||||||||||||||||
| Payable for Fund shares redeemed | 23 | 23 | 17 | 14 | 3 | — | ||||||||||||||||||
| Payable for trustee compensation | 10,981 | 13,529 | 5,254 | 3,409 | 737 | 59 | ||||||||||||||||||
| Accrued expenses and other payables | 29,167 | 33,531 | 20,299 | 15,571 | 6,206 | 20,877 | ||||||||||||||||||
| Total liabilities | 3,380,608 | 2,538,011 | 2,056,448 | 1,079,734 | 281,557 | 52,105 | ||||||||||||||||||
| NET ASSETS | $ | 551,302,509 | $ | 640,085,398 | $ | 314,288,655 | $ | 208,036,057 | $ | 49,729,587 | $ | 10,685,568 | ||||||||||||
| NET ASSETS CONSIST OF: | ||||||||||||||||||||||||
| Paid-in-capital | $ | 436,978,310 | $ | 492,080,904 | $ | 256,456,532 | $ | 170,440,096 | $ | 42,834,267 | $ | 10,264,429 | ||||||||||||
| Undistributed net investment income (loss) | 506,903 | 210,111 | 74,990 | 47,929 | 13,962 | 3,987 | ||||||||||||||||||
| Accumulated net realized gain (loss) on total investments | 68,762 | 392,232 | 345,255 | 245,097 | 22,952 | 38,276 | ||||||||||||||||||
| Net unrealized appreciation (depreciation) on total investments | 113,748,534 | 147,402,151 | 57,411,878 | 37,302,935 | 6,858,406 | 378,876 | ||||||||||||||||||
| NET ASSETS | $ | 551,302,509 | $ | 640,085,398 | $ | 314,288,655 | $ | 208,036,057 | $ | 49,729,587 | $ | 10,685,568 | ||||||||||||
| INSTITUTIONAL CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 370,682,232 | $ | 462,813,520 | $ | 189,643,577 | $ | 122,783,173 | $ | 34,367,093 | $ | 8,556,393 | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 22,098,516 | 27,101,394 | 11,156,290 | 7,228,343 | 2,543,444 | 821,730 | ||||||||||||||||||
| Net asset value per share | $16.77 | $17.08 | $17.00 | $16.99 | $13.51 | $10.41 | ||||||||||||||||||
| PREMIER CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 108,817,145 | $ | 102,990,701 | $ | 78,808,976 | $ | 54,208,077 | $ | 7,694,973 | $ | 1,062,252 | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 6,513,330 | 6,055,413 | 4,653,421 | 3,204,247 | 570,380 | 102,079 | ||||||||||||||||||
| Net asset value per share | $16.71 | $17.01 | $16.94 | $16.92 | $13.49 | $10.41 | ||||||||||||||||||
| RETIREMENT CLASS: | ||||||||||||||||||||||||
| Net assets | $ | 71,803,132 | $ | 74,281,177 | $ | 45,836,102 | $ | 31,044,807 | $ | 7,667,521 | $ | 1,066,923 | ||||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 4,310,967 | 4,379,248 | 2,715,258 | 1,840,898 | 568,981 | 102,571 | ||||||||||||||||||
| Net asset value per share | $16.66 | $16.96 | $16.88 | $16.86 | $13.48 | $10.40 | ||||||||||||||||||
| ‡ Affiliated investments, cost | $ | 436,431,227 | $ | 490,839,672 | $ | 255,636,037 | $ | 169,587,602 | $ | 42,493,393 | $ | 10,309,969 | ||||||||||||
| 44 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 45 |
TIAA-CREF Lifecycle Index Funds ■ For the period or year ended May 31, 2015
| Lifecycle Index | ||||||||||||||||||||||||
| Retirement | Lifecycle Index | Lifecycle Index | Lifecycle Index | Lifecycle Index | Lifecycle Index | |||||||||||||||||||
| Income Fund | 2010 Fund | 2015 Fund | 2020 Fund | 2025 Fund | 2030 Fund | |||||||||||||||||||
| INVESTMENT INCOME | ||||||||||||||||||||||||
| Dividends from affiliated investments | $ | 837,702 | $ | 3,741,432 | $ | 6,843,964 | $ | 10,617,476 | $ | 10,737,060 | $ | 11,369,169 | ||||||||||||
| Total income | 837,702 | 3,741,432 | 6,843,964 | 10,617,476 | 10,737,060 | 11,369,169 | ||||||||||||||||||
| EXPENSES | ||||||||||||||||||||||||
| Management fees | 39,338 | 173,452 | 314,619 | 483,047 | 484,728 | 508,253 | ||||||||||||||||||
| Shareholder servicing — Institutional Class | 261 | 304 | 431 | 534 | 525 | 570 | ||||||||||||||||||
| Shareholder servicing — Premier Class | 239 | 229 | 255 | 300 | 297 | 305 | ||||||||||||||||||
| Shareholder servicing — Retirement Class | 11,407 | 83,133 | 129,519 | 196,307 | 178,656 | 164,705 | ||||||||||||||||||
| Distribution fees — Premier Class | 15,063 | 35,399 | 82,601 | 166,421 | 162,475 | 179,831 | ||||||||||||||||||
| Distribution fees — Retirement Class | 2,205 | 16,556 | 25,821 | 39,169 | 35,639 | 32,844 | ||||||||||||||||||
| Registration fees | 39,833 | 44,995 | 46,892 | 47,960 | 47,520 | 47,988 | ||||||||||||||||||
| Professional fees | 23,345 | 23,929 | 24,347 | 25,115 | 25,192 | 25,236 | ||||||||||||||||||
| Custody and accounting fees | 12,214 | 12,139 | 12,151 | 12,185 | 12,139 | 12,138 | ||||||||||||||||||
| Shareholder reports | 9,930 | 17,432 | 25,440 | 34,973 | 35,717 | 37,036 | ||||||||||||||||||
| Administrative service fees | 1,200 | 5,469 | 9,828 | 14,822 | 14,992 | 15,670 | ||||||||||||||||||
| Trustee fees and expenses | 372 | 1,466 | 2,688 | 4,137 | 4,119 | 4,326 | ||||||||||||||||||
| Other expenses | 7,230 | 11,066 | 14,775 | 26,142 | 24,506 | 26,787 | ||||||||||||||||||
| Total expenses | 162,637 | 425,569 | 689,367 | 1,051,112 | 1,026,505 | 1,055,689 | ||||||||||||||||||
| Less: Expenses reimbursed by the investment adviser | (94,627 | ) | (116,429 | ) | (136,750 | ) | (166,206 | ) | (165,388 | ) | (170,462 | ) | ||||||||||||
| Fee waiver by investment adviser and TPIS | (25,807 | ) | (115,420 | ) | (173,695 | ) | (232,388 | ) | (181,058 | ) | (170,733 | ) | ||||||||||||
| Net expenses | 42,203 | 193,720 | 378,922 | 652,518 | 680,059 | 714,494 | ||||||||||||||||||
| Net Investment income (loss) | 795,499 | 3,547,712 | 6,465,042 | 9,964,958 | 10,057,001 | 10,654,675 | ||||||||||||||||||
| NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS | ||||||||||||||||||||||||
| Realized gain (loss) from sale of affiliated investments | (108,264 | ) | (230,515 | ) | (262,848 | ) | (623,110 | ) | (516,758 | ) | (467,157 | ) | ||||||||||||
| Realized gain distributions from affiliated investments | 83,977 | 405,257 | 792,086 | 1,350,070 | 1,478,640 | 1,684,548 | ||||||||||||||||||
| Realized gain (loss) from sale of unaffiliated investments | 5,224 | (841 | ) | (10,307 | ) | (8,311 | ) | — | — | |||||||||||||||
| Net realized gain (loss) from investments | (19,063 | ) | 173,901 | 518,931 | 718,649 | 961,882 | 1,217,391 | |||||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | 1,005,686 | 4,614,260 | 9,304,103 | 16,807,467 | 18,867,924 | 22,020,411 | ||||||||||||||||||
| Net realized and unrealized gain (loss) from investments | 986,623 | 4,788,161 | 9,823,034 | 17,526,116 | 19,829,806 | 23,237,802 | ||||||||||||||||||
| Net increase (decrease) in net assets from operations | $ | 1,782,122 | $ | 8,335,873 | $ | 16,288,076 | $ | 27,491,074 | $ | 29,886,807 | $ | 33,892,477 | ||||||||||||
| 46 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 47 |
| Statements of operations | concluded |
TIAA-CREF Lifecycle Index Funds ■ For the period or year ended May 31, 2015
| Lifecycle Index | Lifecycle Index | Lifecycle Index | Lifecycle Index | Lifecycle Index | Lifecycle Index | |||||||||||||||||||
| 2035 Fund | 2040 Fund | 2045 Fund | 2050 Fund | 2055 Fund | 2060 Fund | * | ||||||||||||||||||
| INVESTMENT INCOME | ||||||||||||||||||||||||
| Dividends from affiliated investments | $ | 10,803,245 | $ | 12,862,170 | $ | 5,923,280 | $ | 3,839,961 | $ | 880,288 | $ | 219,819 | ||||||||||||
| Total income | 10,803,245 | 12,862,170 | 5,923,280 | 3,839,961 | 880,288 | 219,819 | ||||||||||||||||||
| EXPENSES | ||||||||||||||||||||||||
| Management fees | 484,781 | 573,663 | 264,583 | 171,484 | 38,829 | 6,957 | ||||||||||||||||||
| Shareholder servicing — Institutional Class | 565 | 672 | 402 | 449 | 340 | 1,326 | ||||||||||||||||||
| Shareholder servicing — Premier Class | 288 | 285 | 263 | 243 | 227 | 1,324 | ||||||||||||||||||
| Shareholder servicing — Retirement Class | 128,117 | 128,929 | 77,752 | 50,539 | 12,476 | 3,109 | ||||||||||||||||||
| Distribution fees — Premier Class | 148,791 | 142,250 | 105,455 | 69,442 | 8,690 | 1,042 | ||||||||||||||||||
| Distribution fees — Retirement Class | 25,533 | 25,698 | 15,469 | 10,017 | 2,416 | 347 | ||||||||||||||||||
| Registration fees | 47,768 | 47,600 | 46,972 | 44,590 | 37,746 | 52,000 | ||||||||||||||||||
| Professional fees | 25,217 | 25,462 | 24,273 | 23,851 | 23,333 | 28,081 | ||||||||||||||||||
| Custody and accounting fees | 12,134 | 12,135 | 12,126 | 12,123 | 12,119 | 8,155 | ||||||||||||||||||
| Shareholder reports | 35,649 | 40,273 | 23,986 | 18,966 | 10,524 | 13,312 | ||||||||||||||||||
| Administrative service fees | 15,020 | 17,806 | 8,186 | 5,269 | 1,131 | 229 | ||||||||||||||||||
| Trustee fees and expenses | 4,100 | 4,829 | 2,310 | 1,481 | 360 | 74 | ||||||||||||||||||
| Other expenses | 23,206 | 26,773 | 18,396 | 14,681 | 7,994 | 4,962 | ||||||||||||||||||
| Total expenses | 951,169 | 1,046,375 | 600,173 | 423,135 | 156,185 | 120,918 | ||||||||||||||||||
| Less: Expenses reimbursed by the investment adviser | (164,281 | ) | (176,221 | ) | (137,234 | ) | (122,046 | ) | (94,115 | ) | (110,782 | ) | ||||||||||||
| Fee waiver by investment adviser and TPIS | (122,489 | ) | (140,430 | ) | (68,385 | ) | (44,313 | ) | (10,182 | ) | (1,738 | ) | ||||||||||||
| Net expenses | 664,399 | 729,724 | 394,554 | 256,776 | 51,888 | 8,398 | ||||||||||||||||||
| Net investment income (loss) | 10,138,846 | 12,132,446 | 5,528,726 | 3,583,185 | 828,400 | 211,421 | ||||||||||||||||||
| NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS | ||||||||||||||||||||||||
| Realized gain (loss) from sale of affiliated investments | (469,430 | ) | (404,701 | ) | (257,377 | ) | (111,703 | ) | (55,793 | ) | 2,523 | |||||||||||||
| Realized gain distributions from affiliated investments | 1,718,667 | 2,172,286 | 1,000,241 | 648,427 | 148,920 | 38,349 | ||||||||||||||||||
| Realized gain (loss) from sale of unaffiliated investments | — | — | — | 15,000 | 6,963 | — | ||||||||||||||||||
| Net realized gain (loss) from investments | 1,249,237 | 1,767,585 | 742,864 | 551,724 | 100,090 | 40,872 | ||||||||||||||||||
| Net change in unrealized appreciation (depreciation) | ||||||||||||||||||||||||
| from affiliated investments | 22,603,252 | 28,744,406 | 13,354,063 | 8,710,548 | 2,024,770 | 378,876 | ||||||||||||||||||
| Net realized and unrealized gain (loss) from investments | 23,852,489 | 30,511,991 | 14,096,927 | 9,262,272 | 2,124,860 | 419,748 | ||||||||||||||||||
| Net increase (decrease) in net assets from operations | $ | 33,991,335 | $ | 42,644,437 | $ | 19,625,653 | $ | 12,845,457 | $ | 2,953,260 | $ | 631,169 | ||||||||||||
* For the period September 26, 2014 to May 31, 2015.
| 48 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 49 |
Statements of changes in net assets
TIAA-CREF Lifecycle Index Funds ■ For the period or year ended
| Lifecycle Index Retirement Income Fund | Lifecycle Index 2010 Fund | Lifecycle Index 2015 Fund | ||||||||||||||||||||||||
| May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | |||||||||||||||||||||
| OPERATIONS | ||||||||||||||||||||||||||
| Net investment income (loss) | $ | 795,499 | $ | 550,196 | $ | 3,547,712 | $ | 2,449,524 | $ | 6,465,042 | $ | 4,504,344 | ||||||||||||||
| Net realized gain (loss) from investments | (19,063 | ) | 21,904 | 173,901 | 719,473 | 518,931 | 1,091,128 | |||||||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | 1,005,686 | 2,043,549 | 4,614,260 | 9,852,506 | 9,304,103 | 20,387,867 | ||||||||||||||||||||
| Net increase (decrease) in net assets from operations | 1,782,122 | 2,615,649 | 8,335,873 | 13,021,503 | 16,288,076 | 25,983,339 | ||||||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||
| From net investment income: | Institutional Class | (518,390 | ) | (361,875 | ) | (2,414,274 | ) | (1,721,001 | ) | (4,333,850 | ) | (3,048,575 | ) | |||||||||||||
| Premier Class | (189,858 | ) | (155,653 | ) | (453,838 | ) | (331,844 | ) | (1,042,037 | ) | (773,216 | ) | ||||||||||||||
| Retirement Class | (84,418 | ) | (18,891 | ) | (612,078 | ) | (205,425 | ) | (959,955 | ) | (366,278 | ) | ||||||||||||||
| From realized gains: | Institutional Class | (55,112 | ) | (105,311 | ) | (287,213 | ) | (858,871 | ) | (351,286 | ) | (1,307,482 | ) | |||||||||||||
| Premier Class | (21,423 | ) | (48,997 | ) | (58,065 | ) | (184,751 | ) | (90,921 | ) | (364,512 | ) | ||||||||||||||
| Retirement Class | (12,017 | ) | (6,047 | ) | (80,636 | ) | (115,731 | ) | (86,080 | ) | (177,500 | ) | ||||||||||||||
| Total distributions | (881,218 | ) | (696,774 | ) | (3,906,104 | ) | (3,417,623 | ) | (6,864,129 | ) | (6,037,563 | ) | ||||||||||||||
| SHAREHOLDER TRANSACTIONS | ||||||||||||||||||||||||||
| Subscriptions: | Institutional Class | 8,742,200 | 8,927,123 | 23,468,563 | 30,332,071 | 44,357,564 | 49,237,790 | |||||||||||||||||||
| Premier Class | 4,166,644 | 1,719,790 | 4,110,939 | 4,762,753 | 7,480,789 | 10,290,022 | ||||||||||||||||||||
| Retirement Class | 7,885,953 | 672,499 | 20,086,523 | 16,326,388 | 31,910,565 | 20,691,879 | ||||||||||||||||||||
| Reinvestments of distributions: | Institutional Class | 573,502 | 467,186 | 2,701,487 | 2,579,872 | 4,685,136 | 4,356,057 | |||||||||||||||||||
| Premier Class | 211,281 | 204,650 | 511,903 | 516,595 | 1,132,958 | 1,137,728 | ||||||||||||||||||||
| Retirement Class | 96,435 | 24,938 | 692,714 | 321,156 | 1,046,035 | 543,778 | ||||||||||||||||||||
| Redemptions: | Institutional Class | (4,240,103 | ) | (4,512,279 | ) | (16,102,027 | ) | (14,375,897 | ) | (25,269,513 | ) | (21,138,860 | ) | |||||||||||||
| Premier Class | (4,371,219 | ) | (1,379,478 | ) | (4,670,172 | ) | (10,096,937 | ) | (8,649,851 | ) | (15,467,876 | ) | ||||||||||||||
| Retirement Class | (1,015,491 | ) | (70,976 | ) | (6,547,665 | ) | (2,262,754 | ) | (8,973,555 | ) | (3,457,820 | ) | ||||||||||||||
| Net increase (decrease) from shareholder transactions | 12,049,202 | 6,053,453 | 24,252,265 | 28,103,247 | 47,720,128 | 46,192,698 | ||||||||||||||||||||
| Net increase (decrease) in net assets | 12,950,106 | 7,972,328 | 28,682,034 | 37,707,127 | 57,144,075 | 66,138,474 | ||||||||||||||||||||
| NET ASSETS | ||||||||||||||||||||||||||
| Beginning of period | 34,152,628 | 26,180,300 | 158,900,990 | 121,193,863 | 284,349,641 | 218,211,167 | ||||||||||||||||||||
| End of period | $ | 47,102,734 | $ | 34,152,628 | $ | 187,583,024 | $ | 158,900,990 | $ | 341,493,716 | $ | 284,349,641 | ||||||||||||||
| Undistributed net investment income (loss) included in net assets | $ | 69,914 | $ | 55,895 | $ | 683,046 | $ | 565,893 | $ | 1,130,610 | $ | 911,509 | ||||||||||||||
| CHANGE IN FUND SHARES | ||||||||||||||||||||||||||
| Shares sold: | Institutional Class | 663,016 | 710,428 | 1,687,681 | 2,295,886 | 3,090,084 | 3,643,472 | |||||||||||||||||||
| Premier Class | 318,370 | 138,589 | 297,755 | 364,264 | 523,890 | 765,090 | ||||||||||||||||||||
| Retirement Class | 598,002 | 53,172 | 1,454,284 | 1,242,247 | 2,238,633 | 1,532,696 | ||||||||||||||||||||
| Shares reinvested: | Institutional Class | 43,841 | 37,486 | 197,189 | 197,238 | 331,105 | 323,390 | |||||||||||||||||||
| Premier Class | 16,157 | 16,427 | 37,447 | 39,586 | 80,294 | 84,715 | ||||||||||||||||||||
| Retirement Class | 7,379 | 1,999 | 50,897 | 24,704 | 74,292 | 40,581 | ||||||||||||||||||||
| Shares redeemed: | Institutional Class | (322,379 | ) | (356,785 | ) | (1,158,700 | ) | (1,093,283 | ) | (1,758,855 | ) | (1,567,952 | ) | |||||||||||||
| Premier Class | (332,318 | ) | (110,170 | ) | (337,390 | ) | (765,331 | ) | (603,967 | ) | (1,146,007 | ) | ||||||||||||||
| Retirement Class | (76,824 | ) | (5,574 | ) | (475,002 | ) | (174,548 | ) | (627,986 | ) | (261,162 | ) | ||||||||||||||
| Net increase (decrease) from shareholder transactions | 915,244 | 485,572 | 1,754,161 | 2,130,763 | 3,347,490 | 3,414,823 | ||||||||||||||||||||
| 50 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 51 |
| Statements of changes in net assets | continued |
TIAA-CREF Lifecycle Index Funds ■ For the period or year ended
| Lifecycle Index 2020 Fund | Lifecycle Index 2025 Fund | Lifecycle Index 2030 Fund | ||||||||||||||||||||||||
| May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | |||||||||||||||||||||
| OPERATIONS | ||||||||||||||||||||||||||
| Net investment income (loss) | $ | 9,964,958 | $ | 6,382,732 | $ | 10,057,001 | $ | 6,379,830 | $ | 10,654,675 | $ | 6,569,309 | ||||||||||||||
| Net realized gain (loss) from investments | 718,649 | 1,509,877 | 961,882 | 1,362,598 | 1,217,391 | 1,675,208 | ||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | 16,807,467 | 33,053,555 | 18,867,924 | 37,335,491 | 22,020,411 | 42,173,442 | ||||||||||||||||||||
| Net increase (decrease) in net assets from operations | 27,491,074 | 40,946,164 | 29,886,807 | 45,077,919 | 33,892,477 | 50,417,959 | ||||||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||
| From net investment income: | Institutional Class | (6,028,814 | ) | (4,020,935 | ) | (6,378,810 | ) | (4,256,470 | ) | (6,772,553 | ) | (4,443,637 | ) | |||||||||||||
| Premier Class | (2,120,136 | ) | (1,509,911 | ) | (2,087,528 | ) | (1,424,084 | ) | (2,365,235 | ) | (1,599,383 | ) | ||||||||||||||
| Retirement Class | (1,564,206 | ) | (470,311 | ) | (1,416,729 | ) | (409,377 | ) | (1,356,997 | ) | (348,974 | ) | ||||||||||||||
| From realized gains: | Institutional Class | (346,917 | ) | (1,344,769 | ) | (389,005 | ) | (1,230,986 | ) | (334,829 | ) | (1,492,359 | ) | |||||||||||||
| Premier Class | (130,923 | ) | (549,988 | ) | (136,350 | ) | (452,262 | ) | (125,053 | ) | (581,173 | ) | ||||||||||||||
| Retirement Class | (97,770 | ) | (176,416 | ) | (94,381 | ) | (134,113 | ) | (72,604 | ) | (131,599 | ) | ||||||||||||||
| Total distributions | (10,288,766 | ) | (8,072,330 | ) | (10,502,803 | ) | (7,907,292 | ) | (11,027,271 | ) | (8,597,125 | ) | ||||||||||||||
| SHAREHOLDER TRANSACTIONS | ||||||||||||||||||||||||||
| Subscriptions: | Institutional Class | 67,681,085 | 64,297,407 | 65,200,809 | 64,872,966 | 71,167,801 | 66,895,555 | |||||||||||||||||||
| Premier Class | 17,079,376 | 18,834,832 | 19,879,291 | 20,164,290 | 21,196,094 | 22,046,650 | ||||||||||||||||||||
| Retirement Class | 67,723,842 | 25,700,053 | 52,537,480 | 35,610,972 | 55,812,744 | 25,465,119 | ||||||||||||||||||||
| Reinvestments of distributions: | Institutional Class | 6,375,731 | 5,365,704 | 6,767,815 | 5,487,456 | 7,107,382 | 5,935,996 | |||||||||||||||||||
| Premier Class | 2,251,059 | 2,059,899 | 2,223,878 | 1,876,346 | 2,490,288 | 2,180,556 | ||||||||||||||||||||
| Retirement Class | 1,661,976 | 646,727 | 1,511,110 | 543,490 | 1,429,601 | 480,573 | ||||||||||||||||||||
| Redemptions: | Institutional Class | (17,431,342 | ) | (13,163,866 | ) | (16,549,470 | ) | (11,347,961 | ) | (16,194,562 | ) | (10,566,390 | ) | |||||||||||||
| Premier Class | (10,161,502 | ) | (15,115,884 | ) | (6,150,362 | ) | (14,448,566 | ) | (8,108,961 | ) | (12,590,150 | ) | ||||||||||||||
| Retirement Class | (9,583,421 | ) | (2,763,099 | ) | (6,389,425 | ) | (9,099,716 | ) | (5,477,662 | ) | (8,032,383 | ) | ||||||||||||||
| Net increase (decrease) from shareholder transactions | 125,596,804 | 85,861,773 | 119,031,126 | 93,659,277 | 129,422,725 | 91,815,526 | ||||||||||||||||||||
| Net increase (decrease) in net assets | 142,799,112 | 118,735,607 | 138,415,130 | 130,829,904 | 152,287,931 | 133,636,360 | ||||||||||||||||||||
| NET ASSETS | ||||||||||||||||||||||||||
| Beginning of period | 414,056,156 | 295,320,549 | 418,384,635 | 287,554,731 | 432,553,502 | 298,917,142 | ||||||||||||||||||||
| End of period | $ | 556,855,268 | $ | 414,056,156 | $ | 556,799,765 | $ | 418,384,635 | $ | 584,841,433 | $ | 432,553,502 | ||||||||||||||
| Undistributed net investment income (loss) included in net assets | $ | 1,470,323 | $ | 1,081,662 | $ | 1,169,876 | $ | 860,938 | $ | 934,300 | $ | 635,147 | ||||||||||||||
| CHANGE IN FUND SHARES | ||||||||||||||||||||||||||
| Shares sold: | Institutional Class | 4,548,510 | 4,610,155 | 4,245,226 | 4,540,498 | 4,480,450 | 4,540,611 | |||||||||||||||||||
| Premier Class | 1,153,348 | 1,357,041 | 1,299,479 | 1,419,038 | 1,343,295 | 1,512,549 | ||||||||||||||||||||
| Retirement Class | 4,587,108 | 1,840,223 | 3,439,698 | 2,482,926 | 3,554,266 | 1,726,879 | ||||||||||||||||||||
| Shares reinvested: | Institutional Class | 434,610 | 386,022 | 446,721 | 383,202 | 454,146 | 402,713 | |||||||||||||||||||
| Premier Class | 153,971 | 148,622 | 147,179 | 131,397 | 159,634 | 148,438 | ||||||||||||||||||||
| Retirement Class | 113,912 | 46,763 | 100,273 | 38,140 | 91,877 | 32,759 | ||||||||||||||||||||
| Shares redeemed: | Institutional Class | (1,170,897 | ) | (945,904 | ) | (1,067,929 | ) | (791,680 | ) | (1,004,460 | ) | (721,019 | ) | |||||||||||||
| Premier Class | (683,637 | ) | (1,077,711 | ) | (401,175 | ) | (1,003,805 | ) | (510,811 | ) | (848,543 | ) | ||||||||||||||
| Retirement Class | (651,333 | ) | (205,919 | ) | (418,963 | ) | (639,209 | ) | (347,750 | ) | (566,767 | ) | ||||||||||||||
| Net increase (decrease) from shareholder transactions | 8,485,592 | 6,159,292 | 7,790,509 | 6,560,507 | 8,220,647 | 6,227,620 | ||||||||||||||||||||
| 52 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 53 |
| Statements of changes in net assets | continued |
TIAA-CREF Lifecycle Index Funds ■ For the period or year ended
| Lifecycle Index 2035 Fund | Lifecycle Index 2040 Fund | Lifecycle Index 2045 Fund | ||||||||||||||||||||||||
| May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | |||||||||||||||||||||
| OPERATIONS | ||||||||||||||||||||||||||
| Net investment income (loss) | $ | 10,138,846 | $ | 6,520,424 | $ | 12,132,446 | $ | 7,874,694 | $ | 5,528,726 | $ | 3,214,055 | ||||||||||||||
| Net realized gain (loss) from investments | 1,249,237 | 1,580,625 | 1,767,585 | 2,150,938 | 742,864 | 559,573 | ||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | 22,603,252 | 45,284,338 | 28,744,406 | 57,069,543 | 13,354,063 | 24,113,913 | ||||||||||||||||||||
| Net increase (decrease) in net assets from operations | 33,991,335 | 53,385,387 | 42,644,437 | 67,095,175 | 19,625,653 | 27,887,541 | ||||||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||
| From net investment income: | Institutional Class | (7,134,521 | ) | (4,822,566 | ) | (9,292,874 | ) | (6,284,563 | ) | (3,543,871 | ) | (2,102,157 | ) | |||||||||||||
| Premier Class | (1,973,182 | ) | (1,339,108 | ) | (1,915,825 | ) | (1,335,079 | ) | (1,424,060 | ) | (958,103 | ) | ||||||||||||||
| Retirement Class | (1,000,812 | ) | (326,909 | ) | (1,045,690 | ) | (377,089 | ) | (613,377 | ) | (205,594 | ) | ||||||||||||||
| From realized gains: | Institutional Class | (379,448 | ) | (1,427,292 | ) | (491,064 | ) | (1,990,988 | ) | (168,379 | ) | (444,520 | ) | |||||||||||||
| Premier Class | (112,168 | ) | (427,443 | ) | (108,162 | ) | (455,110 | ) | (72,182 | ) | (217,102 | ) | ||||||||||||||
| Retirement Class | (58,208 | ) | (108,222 | ) | (60,082 | ) | (133,373 | ) | (31,740 | ) | (48,250 | ) | ||||||||||||||
| Total distributions | (10,658,339 | ) | (8,451,540 | ) | (12,913,697 | ) | (10,576,202 | ) | (5,853,609 | ) | (3,975,726 | ) | ||||||||||||||
| SHAREHOLDER TRANSACTIONS | ||||||||||||||||||||||||||
| Subscriptions: | Institutional Class | 69,315,705 | 64,310,909 | 82,291,825 | 72,784,443 | 52,984,952 | 40,316,174 | |||||||||||||||||||
| Premier Class | 19,074,538 | 22,489,647 | 18,660,791 | 18,905,337 | 14,480,480 | 14,488,294 | ||||||||||||||||||||
| Retirement Class | 41,247,673 | 21,330,321 | 42,391,440 | 16,554,780 | 27,078,595 | 10,631,671 | ||||||||||||||||||||
| Reinvestments of distributions: | Institutional Class | 7,513,969 | 6,249,858 | 9,783,938 | 8,275,551 | 3,712,250 | 2,546,677 | |||||||||||||||||||
| Premier Class | 2,085,350 | 1,766,551 | 2,023,987 | 1,790,189 | 1,496,242 | 1,175,205 | ||||||||||||||||||||
| Retirement Class | 1,059,020 | 435,131 | 1,105,772 | 510,462 | 645,117 | 253,844 | ||||||||||||||||||||
| Redemptions: | Institutional Class | (18,969,804 | ) | (9,383,744 | ) | (30,640,010 | ) | (9,289,872 | ) | (10,604,630 | ) | (5,664,290 | ) | |||||||||||||
| Premier Class | (8,037,624 | ) | (12,240,426 | ) | (10,107,035 | ) | (10,608,277 | ) | (4,359,870 | ) | (4,103,385 | ) | ||||||||||||||
| Retirement Class | (6,999,170 | ) | (7,286,332 | ) | (5,688,540 | ) | (5,281,152 | ) | (3,508,908 | ) | (1,779,235 | ) | ||||||||||||||
| Net increase (decrease) from shareholder transactions | 106,289,657 | 87,671,915 | 109,822,168 | 93,641,461 | 81,924,228 | 57,864,955 | ||||||||||||||||||||
| Net increase (decrease) in net assets | 129,622,653 | 132,605,762 | 139,552,908 | 150,160,434 | 95,696,272 | 81,776,770 | ||||||||||||||||||||
| NET ASSETS | ||||||||||||||||||||||||||
| Beginning of period | 421,679,856 | 289,074,094 | 500,532,490 | 350,372,056 | 218,592,383 | 136,815,613 | ||||||||||||||||||||
| End of period | $ | 551,302,509 | $ | 421,679,856 | $ | 640,085,398 | $ | 500,532,490 | $ | 314,288,655 | $ | 218,592,383 | ||||||||||||||
| Undistributed net investment income (loss) included in net assets | $ | 506,903 | $ | 349,044 | $ | 210,111 | $ | 185,013 | $ | 74,990 | $ | 59,869 | ||||||||||||||
| CHANGE IN FUND SHARES | ||||||||||||||||||||||||||
| Shares sold: | Institutional Class | 4,238,091 | 4,272,866 | 4,955,693 | 4,780,939 | 3,205,296 | 2,667,752 | |||||||||||||||||||
| Premier Class | 1,173,039 | 1,507,143 | 1,129,196 | 1,253,665 | 880,497 | 961,849 | ||||||||||||||||||||
| Retirement Class | 2,539,670 | 1,411,155 | 2,567,249 | 1,082,451 | 1,646,111 | 699,654 | ||||||||||||||||||||
| Shares reinvested: | Institutional Class | 466,416 | 412,804 | 598,040 | 539,475 | 227,885 | 166,777 | |||||||||||||||||||
| Premier Class | 129,847 | 117,067 | 124,095 | 117,006 | 92,133 | 77,164 | ||||||||||||||||||||
| Retirement Class | 66,106 | 28,893 | 67,964 | 33,429 | 39,846 | 16,700 | ||||||||||||||||||||
| Shares redeemed: | Institutional Class | (1,141,888 | ) | (620,353 | ) | (1,791,709 | ) | (612,485 | ) | (626,029 | ) | (372,317 | ) | |||||||||||||
| Premier Class | (492,345 | ) | (804,106 | ) | (609,590 | ) | (688,021 | ) | (264,850 | ) | (269,117 | ) | ||||||||||||||
| Retirement Class | (433,395 | ) | (505,204 | ) | (343,834 | ) | (377,351 | ) | (215,095 | ) | (126,864 | ) | ||||||||||||||
| Net increase (decrease) from shareholder transactions | 6,545,541 | 5,820,265 | 6,697,104 | 6,129,108 | 4,985,794 | 3,821,598 | ||||||||||||||||||||
| 54 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 55 |
| Statements of changes in net assets | concluded |
TIAA-CREF Lifecycle Index Funds ■ For the period or year ended
| Lifecycle Index 2050 Fund | Lifecycle Index 2055 Fund | Lifecycle Index 2060 Fund* | ||||||||||||||||||||
| May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | May 31, 2015 | ||||||||||||||||||
| OPERATIONS | ||||||||||||||||||||||
| Net investment income (loss) | $ | 3,583,185 | $ | 2,048,682 | $ | 828,400 | $ | 417,571 | $ | 211,421 | ||||||||||||
| Net realized gain (loss) from investments | 551,724 | 386,741 | 100,090 | 70,965 | 40,872 | |||||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | 8,710,548 | 15,591,645 | 2,024,770 | 3,083,966 | 378,876 | |||||||||||||||||
| Net increase (decrease) in net assets from operations | 12,845,457 | 18,027,068 | 2,953,260 | 3,572,502 | 631,169 | |||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||
| From net investment income: | Institutional Class | (2,290,860 | ) | (1,360,609 | ) | (613,877 | ) | (334,323 | ) | (169,184 | ) | |||||||||||
| Premier Class | (931,907 | ) | (593,959 | ) | (115,459 | ) | (57,620 | ) | (20,752 | ) | ||||||||||||
| Retirement Class | (394,733 | ) | (128,769 | ) | (105,568 | ) | (31,206 | ) | (20,489 | ) | ||||||||||||
| From realized gains: | Institutional Class | (135,206 | ) | (284,325 | ) | (30,939 | ) | (72,259 | ) | — | ||||||||||||
| Premier Class | (58,601 | ) | (132,660 | ) | (6,170 | ) | (13,229 | ) | — | |||||||||||||
| Retirement Class | (25,268 | ) | (29,828 | ) | (5,711 | ) | (7,541 | ) | — | |||||||||||||
| Total distributions | (3,836,575 | ) | (2,530,150 | ) | (877,724 | ) | (516,178 | ) | (210,425 | ) | ||||||||||||
| SHAREHOLDER TRANSACTIONS | ||||||||||||||||||||||
| Subscriptions: | Institutional Class | 34,992,367 | 25,476,811 | 11,122,335 | 6,873,016 | 8,049,017 | ||||||||||||||||
| Premier Class | 13,049,655 | 11,193,406 | 2,993,845 | 1,833,843 | 1,000,000 | |||||||||||||||||
| Retirement Class | 19,577,086 | 6,113,222 | 5,316,312 | 771,230 | 1,005,382 | |||||||||||||||||
| Reinvestments of distributions: | Institutional Class | 2,426,066 | 1,644,934 | 644,816 | 406,582 | 169,184 | ||||||||||||||||
| Premier Class | 990,508 | 726,619 | 121,629 | 70,849 | 20,752 | |||||||||||||||||
| Retirement Class | 420,001 | 158,597 | 111,279 | 38,747 | 20,489 | |||||||||||||||||
| Redemptions: | Institutional Class | (6,233,167 | ) | (8,325,852 | ) | (1,334,672 | ) | (570,556 | ) | — | ||||||||||||
| Premier Class | (2,891,620 | ) | (2,703,286 | ) | (242,514 | ) | (139,514 | ) | — | |||||||||||||
| Retirement Class | (1,822,832 | ) | (1,050,195 | ) | (439,525 | ) | (56,843 | ) | — | |||||||||||||
| Net increase (decrease) from shareholder transactions | 60,508,064 | 33,234,256 | 18,293,505 | 9,227,354 | 10,264,824 | |||||||||||||||||
| Net increase (decrease) in net assets | 69,516,946 | 48,731,174 | 20,369,041 | 12,283,678 | 10,685,568 | |||||||||||||||||
| NET ASSETS | ||||||||||||||||||||||
| Beginning of period | 138,519,111 | 89,787,937 | 29,360,546 | 17,076,868 | — | |||||||||||||||||
| End of period | $ | 208,036,057 | $ | 138,519,111 | $ | 49,729,587 | $ | 29,360,546 | $ | 10,685,568 | ||||||||||||
| Undistributed net investment income (loss) included in net assets | $ | 47,929 | $ | 38,354 | $ | 13,962 | $ | 10,385 | $ | 3,987 | ||||||||||||
| CHANGE IN FUND SHARES | ||||||||||||||||||||||
| Shares sold: | Institutional Class | 2,120,273 | 1,690,102 | 847,602 | 566,855 | 804,778 | ||||||||||||||||
| Premier Class | 794,071 | 742,580 | 228,174 | 151,334 | 100,000 | |||||||||||||||||
| Retirement Class | 1,191,267 | 401,043 | 405,560 | 63,341 | 100,518 | |||||||||||||||||
| Shares reinvested: | Institutional Class | 149,021 | 107,794 | 49,792 | 33,491 | 16,952 | ||||||||||||||||
| Premier Class | 61,067 | 47,773 | 9,400 | 5,841 | 2,079 | |||||||||||||||||
| Retirement Class | 25,958 | 10,448 | 8,606 | 3,192 | 2,053 | |||||||||||||||||
| Shares redeemed: | Institutional Class | (366,713 | ) | (544,657 | ) | (99,045 | ) | (47,010 | ) | — | ||||||||||||
| Premier Class | (175,684 | ) | (179,983 | ) | (18,466 | ) | (11,719 | ) | — | |||||||||||||
| Retirement Class | (111,288 | ) | (71,112 | ) | (33,534 | ) | (4,689 | ) | — | |||||||||||||
| Net increase (decrease) from shareholder transactions | 3,687,972 | 2,203,988 | 1,398,089 | 760,636 | 1,026,380 | |||||||||||||||||
| * | For the period September 26, 2014 to May 31, 2015. |
| 56 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 57 |
TIAA-CREF Lifecycle Index Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss | )a | gain
(loss) on total investments | j | (loss)
from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at
end of period (in thousands | ) | Gross expenses | e | Net expenses | e | investment income (loss | ) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFECYCLE INDEX RETIREMENT INCOME FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $13.06 | $0.27 | $0.33 | $0.60 | $(0.28 | ) | $(0.03 | ) | $(0.31 | ) | $13.35 | 4.66 | % | $28,537 | 0.34 | % | 0.04 | % | 2.08 | % | 35 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.29 | 0.24 | 0.84 | 1.08 | (0.24 | ) | (0.07 | ) | (0.31 | ) | 13.06 | 8.87 | 22,907 | 0.44 | 0.04 | 1.90 | 26 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.35 | 0.22 | 0.94 | 1.16 | (0.22 | ) | (0.00 | )d | (0.22 | ) | 12.29 | 10.28 | 16,754 | 0.56 | 0.05 | 1.82 | 24 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.36 | 0.23 | 0.03 | 0.26 | (0.24 | ) | (0.03 | ) | (0.27 | ) | 11.35 | 2.36 | 11,470 | 0.82 | 0.06 | 2.06 | 25 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.65 | 0.18 | 0.73 | 0.91 | (0.16 | ) | (0.04 | ) | (0.20 | ) | 11.36 | 8.56 | b | 7,447 | 0.76 | c | 0.06 | c | 2.47 | c | 13 | b | |||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.22 | 0.65 | 0.87 | (0.22 | ) | — | (0.22 | ) | 10.65 | 8.82 | 5,690 | 1.74 | 0.08 | 2.19 | 39 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 13.05 | 0.25 | 0.33 | 0.58 | (0.26 | ) | (0.03 | ) | (0.29 | ) | 13.34 | 4.50 | 9,788 | 0.49 | 0.19 | 1.90 | 35 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.29 | 0.22 | 0.83 | 1.05 | (0.22 | ) | (0.07 | ) | (0.29 | ) | 13.05 | 8.63 | 9,550 | 0.59 | 0.19 | 1.75 | 26 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.34 | 0.22 | 0.93 | 1.15 | (0.20 | ) | (0.00 | )d | (0.20 | ) | 12.29 | 10.23 | 8,439 | 0.69 | 0.20 | 1.85 | 24 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.35 | 0.22 | 0.02 | 0.24 | (0.22 | ) | (0.03 | ) | (0.25 | ) | 11.34 | 2.21 | 2,568 | 0.98 | 0.21 | 1.96 | 25 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.65 | 0.16 | 0.73 | 0.89 | (0.15 | ) | (0.04 | ) | (0.19 | ) | 11.35 | 8.40 | b | 1,833 | 0.93 | c | 0.21 | c | 2.26 | c | 13 | b | |||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.23 | 0.63 | 0.86 | (0.21 | ) | — | (0.21 | ) | 10.65 | 8.67 | 272 | 1.91 | 0.23 | 2.24 | 39 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 13.05 | 0.25 | 0.31 | 0.56 | (0.25 | ) | (0.03 | ) | (0.28 | ) | 13.33 | 4.35 | 8,778 | 0.65 | 0.29 | 1.95 | 35 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.29 | 0.20 | 0.84 | 1.04 | (0.21 | ) | (0.07 | ) | (0.28 | ) | 13.05 | 8.53 | 1,696 | 0.76 | 0.29 | 1.60 | 26 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.34 | 0.20 | 0.94 | 1.14 | (0.19 | ) | (0.00 | )d | (0.19 | ) | 12.29 | 10.12 | 987 | 0.88 | 0.30 | 1.65 | 24 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.36 | 0.21 | 0.01 | 0.22 | (0.21 | ) | (0.03 | ) | (0.24 | ) | 11.34 | 2.02 | 622 | 1.16 | 0.31 | 1.89 | 25 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.65 | 0.16 | 0.73 | 0.89 | (0.14 | ) | (0.04 | ) | (0.18 | ) | 11.36 | 8.44 | b | 342 | 1.14 | c | 0.31 | c | 2.16 | c | 13 | b | |||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.22 | 0.63 | 0.85 | (0.20 | ) | — | (0.20 | ) | 10.65 | 8.56 | 274 | 2.07 | 0.33 | 2.13 | 39 | ||||||||||||||||||||||||||||||||||||||||||
| LIFECYCLE INDEX 2010 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | 13.72 | 0.29 | 0.38 | 0.67 | (0.29 | ) | (0.03 | ) | (0.32 | ) | 14.07 | 4.96 | 122,842 | 0.17 | 0.04 | 2.12 | 14 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.81 | 0.25 | 1.02 | 1.27 | (0.24 | ) | (0.12 | ) | (0.36 | ) | 13.72 | 10.02 | 109,776 | 0.19 | 0.05 | 1.92 | 17 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.60 | 0.23 | 1.20 | 1.43 | (0.21 | ) | (0.01 | ) | (0.22 | ) | 12.81 | 12.45 | 84,599 | 0.21 | 0.06 | 1.83 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.75 | 0.23 | (0.13 | ) | 0.10 | (0.22 | ) | (0.03 | ) | (0.25 | ) | 11.60 | 0.92 | 64,002 | 0.26 | 0.07 | 2.02 | 25 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.84 | 0.20 | 0.89 | 1.09 | (0.17 | ) | (0.01 | ) | (0.18 | ) | 11.75 | 10.14 | b | 49,573 | 0.28 | c | 0.07 | c | 2.63 | c | 38 | b | |||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.17 | 0.72 | 0.89 | (0.05 | ) | — | (0.05 | ) | 10.84 | 8.94 | 30,599 | 0.80 | 0.07 | 1.65 | 43 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 13.68 | 0.27 | 0.39 | 0.66 | (0.27 | ) | (0.03 | ) | (0.30 | ) | 14.04 | 4.89 | 23,379 | 0.32 | 0.19 | 1.97 | 14 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.77 | 0.21 | 1.03 | 1.24 | (0.21 | ) | (0.12 | ) | (0.33 | ) | 13.68 | 9.85 | 22,820 | 0.34 | 0.20 | 1.62 | 17 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.57 | 0.22 | 1.19 | 1.41 | (0.20 | ) | (0.01 | ) | (0.21 | ) | 12.77 | 12.28 | 25,923 | 0.36 | 0.21 | 1.79 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.73 | 0.21 | (0.13 | ) | 0.08 | (0.21 | ) | (0.03 | ) | (0.24 | ) | 11.57 | 0.74 | 12,701 | 0.41 | 0.22 | 1.86 | 25 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.83 | 0.17 | 0.91 | 1.08 | (0.17 | ) | (0.01 | ) | (0.18 | ) | 11.73 | 10.02 | b | 7,766 | 0.43 | c | 0.22 | c | 2.33 | c | 38 | b | |||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.21 | 0.67 | 0.88 | (0.05 | ) | — | (0.05 | ) | 10.83 | 8.79 | 753 | 1.04 | 0.23 | 2.08 | 43 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 13.63 | 0.25 | 0.38 | 0.63 | (0.26 | ) | (0.03 | ) | (0.29 | ) | 13.97 | 4.70 | 41,362 | 0.47 | 0.29 | 1.83 | 14 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.74 | 0.19 | 1.03 | 1.22 | (0.21 | ) | (0.12 | ) | (0.33 | ) | 13.63 | 9.70 | 26,305 | 0.49 | 0.30 | 1.49 | 17 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.54 | 0.20 | 1.21 | 1.41 | (0.20 | ) | (0.01 | ) | (0.21 | ) | 12.74 | 12.26 | 10,672 | 0.51 | 0.31 | 1.63 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.72 | 0.21 | (0.15 | ) | 0.06 | (0.21 | ) | (0.03 | ) | (0.24 | ) | 11.54 | 0.58 | 4,044 | 0.56 | 0.32 | 1.80 | 25 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.82 | 0.15 | 0.92 | 1.07 | (0.16 | ) | (0.01 | ) | (0.17 | ) | 11.72 | 9.98 | b | 695 | 0.63 | c | 0.32 | c | 2.00 | c | 38 | b | |||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.21 | 0.65 | 0.86 | (0.04 | ) | — | (0.04 | ) | 10.82 | 8.67 | 300 | 1.22 | 0.33 | 2.01 | 43 | ||||||||||||||||||||||||||||||||||||||||||
| 58 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 59 |
| Financial highlights | continued |
TIAA-CREF Lifecycle Index Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss | )a | gain
(loss) on total investments | j | (loss)
from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at
end of period (in thousands | ) | Gross expenses | e | Net expenses | e | investment income (loss | ) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFECYCLE INDEX 2015 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $14.14 | $0.31 | $0.44 | $0.75 | $(0.30 | ) | $(0.02 | ) | $(0.32 | ) | $14.57 | 5.37 | % | $221,139 | 0.14 | % | 0.05 | % | 2.13 | % | 12 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.07 | 0.26 | 1.15 | 1.41 | (0.24 | ) | (0.10 | ) | (0.34 | ) | 14.14 | 10.97 | 191,164 | 0.16 | 0.06 | 1.94 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.64 | 0.23 | 1.42 | 1.65 | (0.21 | ) | (0.01 | ) | (0.22 | ) | 13.07 | 14.26 | 145,288 | 0.18 | 0.07 | 1.82 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.90 | 0.23 | (0.27 | ) | (0.04 | ) | (0.21 | ) | (0.01 | ) | (0.22 | ) | 11.64 | (0.21 | ) | 102,292 | 0.22 | 0.08 | 1.96 | 21 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.85 | 0.19 | 1.03 | 1.22 | (0.17 | ) | — | (0.17 | ) | 11.90 | 11.43 | b | 74,426 | 0.24 | c | 0.08 | c | 2.49 | c | 13 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.14 | 0.75 | 0.89 | (0.04 | ) | — | (0.04 | ) | 10.85 | 8.96 | 43,294 | 0.64 | 0.07 | 1.38 | 23 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 14.10 | 0.28 | 0.43 | 0.71 | (0.27 | ) | (0.02 | ) | (0.29 | ) | 14.52 | 5.16 | 55,574 | 0.29 | 0.20 | 1.96 | 12 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.02 | 0.22 | 1.18 | 1.40 | (0.22 | ) | (0.10 | ) | (0.32 | ) | 14.10 | 10.92 | 53,952 | 0.31 | 0.21 | 1.67 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.61 | 0.24 | 1.38 | 1.62 | (0.20 | ) | (0.01 | ) | (0.21 | ) | 13.02 | 14.04 | 53,709 | 0.33 | 0.22 | 1.91 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.88 | 0.21 | (0.27 | ) | (0.06 | ) | (0.20 | ) | (0.01 | ) | (0.21 | ) | 11.61 | (0.39 | ) | 15,447 | 0.37 | 0.23 | 1.81 | 21 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.83 | 0.18 | 1.04 | 1.22 | (0.17 | ) | — | (0.17 | ) | 11.88 | 11.41 | b | 9,054 | 0.40 | c | 0.22 | c | 2.44 | c | 13 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.20 | 0.67 | 0.87 | (0.04 | ) | — | (0.04 | ) | 10.83 | 8.72 | 758 | 0.90 | 0.23 | 1.97 | 23 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 14.06 | 0.26 | 0.45 | 0.71 | (0.27 | ) | (0.02 | ) | (0.29 | ) | 14.48 | 5.12 | 64,781 | 0.44 | 0.30 | 1.85 | 12 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.00 | 0.21 | 1.16 | 1.37 | (0.21 | ) | (0.10 | ) | (0.31 | ) | 14.06 | 10.73 | 39,234 | 0.46 | 0.31 | 1.53 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.59 | 0.20 | 1.41 | 1.61 | (0.19 | ) | (0.01 | ) | (0.20 | ) | 13.00 | 13.95 | 19,214 | 0.48 | 0.32 | 1.61 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 11.86 | 0.19 | (0.25 | ) | (0.06 | ) | (0.20 | ) | (0.01 | ) | (0.21 | ) | 11.59 | (0.40 | ) | 9,527 | 0.51 | 0.33 | 1.63 | 21 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.83 | 0.11 | 1.09 | 1.20 | (0.17 | ) | — | (0.17 | ) | 11.86 | 11.18 | b | 1,880 | 0.56 | c | 0.33 | c | 1.46 | c | 13 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.20 | 0.67 | 0.87 | (0.04 | ) | — | (0.04 | ) | 10.83 | 8.69 | 327 | 1.07 | 0.33 | 1.89 | 23 | ||||||||||||||||||||||||||||||||||||||||||
| LIFECYCLE INDEX 2020 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | 14.62 | 0.32 | 0.53 | 0.85 | (0.30 | ) | (0.02 | ) | (0.32 | ) | 15.15 | 5.90 | 327,209 | 0.13 | 0.06 | 2.13 | 9 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.32 | 0.27 | 1.36 | 1.63 | (0.25 | ) | (0.08 | ) | (0.33 | ) | 14.62 | 12.42 | 260,171 | 0.15 | 0.06 | 1.95 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.63 | 0.23 | 1.67 | 1.90 | (0.21 | ) | (0.00 | )d | (0.21 | ) | 13.32 | 16.51 | 183,056 | 0.17 | 0.07 | 1.83 | 8 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.04 | 0.22 | (0.41 | ) | (0.19 | ) | (0.21 | ) | (0.01 | ) | (0.22 | ) | 11.63 | (1.49 | ) | 121,899 | 0.21 | 0.09 | 1.87 | 14 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.85 | 0.19 | 1.18 | 1.37 | (0.18 | ) | — | (0.18 | ) | 12.04 | 12.74 | b | 84,549 | 0.23 | c | 0.08 | c | 2.46 | c | 11 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.12 | 0.78 | 0.90 | (0.05 | ) | — | (0.05 | ) | 10.85 | 9.00 | 51,737 | 0.62 | 0.07 | 1.16 | 22 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 14.57 | 0.29 | 0.53 | 0.82 | (0.28 | ) | (0.02 | ) | (0.30 | ) | 15.09 | 5.70 | 117,293 | 0.28 | 0.21 | 1.98 | 9 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.27 | 0.24 | 1.37 | 1.61 | (0.23 | ) | (0.08 | ) | (0.31 | ) | 14.57 | 12.30 | 104,180 | 0.30 | 0.21 | 1.71 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.60 | 0.25 | 1.62 | 1.87 | (0.20 | ) | (0.00 | )d | (0.20 | ) | 13.27 | 16.29 | 89,233 | 0.32 | 0.22 | 1.96 | 8 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.02 | 0.20 | (0.41 | ) | (0.21 | ) | (0.20 | ) | (0.01 | ) | (0.21 | ) | 11.60 | (1.67 | ) | 27,047 | 0.36 | 0.24 | 1.69 | 14 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.83 | 0.18 | 1.18 | 1.36 | (0.17 | ) | — | (0.17 | ) | 12.02 | 12.72 | b | 19,670 | 0.38 | c | 0.23 | c | 2.35 | c | 11 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.18 | 0.69 | 0.87 | (0.04 | ) | — | (0.04 | ) | 10.83 | 8.76 | 1,851 | 0.85 | 0.23 | 1.73 | 22 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 14.54 | 0.28 | 0.52 | 0.80 | (0.28 | ) | (0.02 | ) | (0.30 | ) | 15.04 | 5.55 | 112,353 | 0.43 | 0.31 | 1.93 | 9 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.25 | 0.22 | 1.38 | 1.60 | (0.23 | ) | (0.08 | ) | (0.31 | ) | 14.54 | 12.19 | 49,705 | 0.45 | 0.31 | 1.58 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.59 | 0.21 | 1.64 | 1.85 | (0.19 | ) | (0.00 | )d | (0.19 | ) | 13.25 | 16.13 | 23,032 | 0.47 | 0.32 | 1.64 | 8 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.01 | 0.18 | (0.40 | ) | (0.22 | ) | (0.19 | ) | (0.01 | ) | (0.20 | ) | 11.59 | (1.70 | ) | 8,485 | 0.51 | 0.34 | 1.54 | 14 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.83 | 0.09 | 1.26 | 1.35 | (0.17 | ) | — | (0.17 | ) | 12.01 | 12.58 | b | 2,363 | 0.54 | c | 0.33 | c | 1.19 | c | 11 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.19 | 0.68 | 0.87 | (0.04 | ) | — | (0.04 | ) | 10.83 | 8.73 | 304 | 1.06 | 0.33 | 1.80 | 22 | ||||||||||||||||||||||||||||||||||||||||||
| 60 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 61 |
| Financial highlights | continued |
TIAA-CREF Lifecycle Index Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss | )a | gain
(loss) on total investments | j | (loss)
from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at
end of period (in thousands | ) | Gross expenses | e | Net expenses | e | investment income (loss | ) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFECYCLE INDEX 2025 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $15.09 | $0.33 | $0.61 | $0.94 | $(0.32 | ) | $(0.02 | ) | $(0.34 | ) | $15.69 | 6.31 | % | $337,862 | 0.13 | % | 0.07 | % | 2.15 | % | 6 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.57 | 0.28 | 1.58 | 1.86 | (0.26 | ) | (0.08 | ) | (0.34 | ) | 15.09 | 13.85 | 270,258 | 0.15 | 0.07 | 1.96 | 11 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.63 | 0.23 | 1.93 | 2.16 | (0.22 | ) | (0.00 | )d | (0.22 | ) | 13.57 | 18.71 | 187,069 | 0.17 | 0.08 | 1.84 | 8 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.18 | 0.21 | (0.55 | ) | (0.34 | ) | (0.20 | ) | (0.01 | ) | (0.21 | ) | 11.63 | (2.70 | ) | 120,360 | 0.21 | 0.09 | 1.80 | 12 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.84 | 0.19 | 1.33 | 1.52 | (0.18 | ) | — | (0.18 | ) | 12.18 | 14.21 | b | 86,413 | 0.23 | c | 0.08 | c | 2.47 | c | 9 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.10 | 0.79 | 0.89 | (0.05 | ) | — | (0.05 | ) | 10.84 | 8.96 | 51,228 | 0.65 | 0.07 | 0.97 | 16 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 15.04 | 0.30 | 0.61 | 0.91 | (0.30 | ) | (0.02 | ) | (0.32 | ) | 15.63 | 6.11 | 118,947 | 0.28 | 0.22 | 1.97 | 6 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.53 | 0.24 | 1.59 | 1.83 | (0.24 | ) | (0.08 | ) | (0.32 | ) | 15.04 | 13.63 | 98,691 | 0.30 | 0.22 | 1.70 | 11 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.61 | 0.27 | 1.86 | 2.13 | (0.21 | ) | (0.00 | )d | (0.21 | ) | 13.53 | 18.50 | 81,393 | 0.32 | 0.23 | 2.11 | 8 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.16 | 0.19 | (0.54 | ) | (0.35 | ) | (0.19 | ) | (0.01 | ) | (0.20 | ) | 11.61 | (2.79 | ) | 18,118 | 0.36 | 0.24 | 1.64 | 12 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.83 | 0.18 | 1.33 | 1.51 | (0.18 | ) | — | (0.18 | ) | 12.16 | 14.09 | b | 11,066 | 0.39 | c | 0.23 | c | 2.38 | c | 9 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.16 | 0.72 | 0.88 | (0.05 | ) | — | (0.05 | ) | 10.83 | 8.82 | 1,664 | 0.89 | 0.23 | 1.61 | 16 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 15.00 | 0.29 | 0.60 | 0.89 | (0.29 | ) | (0.02 | ) | (0.31 | ) | 15.58 | 6.02 | 99,991 | 0.43 | 0.32 | 1.93 | 6 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.50 | 0.21 | 1.60 | 1.81 | (0.23 | ) | (0.08 | ) | (0.31 | ) | 15.00 | 13.53 | 49,436 | 0.45 | 0.32 | 1.46 | 11 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.58 | 0.21 | 1.91 | 2.12 | (0.20 | ) | (0.00 | )d | (0.20 | ) | 13.50 | 18.46 | 19,093 | 0.47 | 0.33 | 1.69 | 8 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.15 | 0.19 | (0.56 | ) | (0.37 | ) | (0.19 | ) | (0.01 | ) | (0.20 | ) | 11.58 | (2.97 | ) | 5,837 | 0.51 | 0.34 | 1.64 | 12 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.82 | 0.13 | 1.38 | 1.51 | (0.18 | ) | — | (0.18 | ) | 12.15 | 14.06 | b | 1,125 | 0.57 | c | 0.33 | c | 1.64 | c | 9 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.17 | 0.70 | 0.87 | (0.05 | ) | — | (0.05 | ) | 10.82 | 8.69 | 324 | 1.10 | 0.33 | 1.69 | 16 | ||||||||||||||||||||||||||||||||||||||||||
| LIFECYCLE INDEX 2030 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | 15.56 | 0.34 | 0.70 | 1.04 | (0.33 | ) | (0.02 | ) | (0.35 | ) | 16.25 | 6.77 | 360,424 | 0.13 | 0.07 | 2.15 | 5 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.84 | 0.29 | 1.80 | 2.09 | (0.28 | ) | (0.09 | ) | (0.37 | ) | 15.56 | 15.24 | 283,951 | 0.15 | 0.08 | 1.95 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.65 | 0.24 | 2.17 | 2.41 | (0.22 | ) | (0.00 | )d | (0.22 | ) | 13.84 | 20.90 | 194,258 | 0.17 | 0.09 | 1.84 | 4 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.35 | 0.20 | (0.70 | ) | (0.50 | ) | (0.19 | ) | (0.01 | ) | (0.20 | ) | 11.65 | (3.89 | ) | 124,802 | 0.21 | 0.10 | 1.74 | 10 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.86 | 0.19 | 1.49 | 1.68 | (0.19 | ) | — | (0.19 | ) | 12.35 | 15.64 | b | 91,910 | 0.22 | c | 0.09 | c | 2.45 | c | 9 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.07 | 0.83 | 0.90 | (0.04 | ) | — | (0.04 | ) | 10.86 | 9.06 | 56,944 | 0.59 | 0.07 | 0.71 | 16 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 15.50 | 0.32 | 0.70 | 1.02 | (0.31 | ) | (0.02 | ) | (0.33 | ) | 16.19 | 6.65 | 130,175 | 0.28 | 0.22 | 2.00 | 5 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.80 | 0.25 | 1.80 | 2.05 | (0.26 | ) | (0.09 | ) | (0.35 | ) | 15.50 | 14.98 | 109,285 | 0.30 | 0.23 | 1.70 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.62 | 0.26 | 2.14 | 2.40 | (0.22 | ) | (0.00 | )d | (0.22 | ) | 13.80 | 20.79 | 86,071 | 0.32 | 0.24 | 2.05 | 4 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.32 | 0.18 | (0.69 | ) | (0.51 | ) | (0.18 | ) | (0.01 | ) | (0.19 | ) | 11.62 | (4.00 | ) | 22,673 | 0.36 | 0.25 | 1.55 | 10 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.84 | 0.18 | 1.49 | 1.67 | (0.19 | ) | — | (0.19 | ) | 12.32 | 15.54 | b | 15,655 | 0.37 | c | 0.24 | c | 2.32 | c | 9 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.16 | 0.72 | 0.88 | (0.04 | ) | — | (0.04 | ) | 10.84 | 8.82 | 1,095 | 0.83 | 0.23 | 1.56 | 16 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 15.46 | 0.31 | 0.69 | 1.00 | (0.31 | ) | (0.02 | ) | (0.33 | ) | 16.13 | 6.51 | 94,242 | 0.43 | 0.32 | 2.00 | 5 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.77 | 0.21 | 1.82 | 2.03 | (0.25 | ) | (0.09 | ) | (0.34 | ) | 15.46 | 14.87 | 39,318 | 0.45 | 0.33 | 1.45 | 10 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.60 | 0.21 | 2.16 | 2.37 | (0.20 | ) | (0.00 | )d | (0.20 | ) | 13.77 | 20.62 | 18,588 | 0.47 | 0.34 | 1.62 | 4 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.31 | 0.18 | (0.70 | ) | (0.52 | ) | (0.18 | ) | (0.01 | ) | (0.19 | ) | 11.60 | (4.10 | ) | 7,553 | 0.51 | 0.35 | 1.53 | 10 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.83 | 0.12 | 1.54 | 1.66 | (0.18 | ) | — | (0.18 | ) | 12.31 | 15.52 | b | 2,415 | 0.54 | c | 0.34 | c | 1.61 | c | 9 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.15 | 0.72 | 0.87 | (0.04 | ) | — | (0.04 | ) | 10.83 | 8.69 | 455 | 1.01 | 0.33 | 1.48 | 16 | ||||||||||||||||||||||||||||||||||||||||||
| 62 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 63 |
| Financial highlights | continued |
TIAA-CREF Lifecycle Index Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss | )a | gain
(loss) on total investments | j | (loss)
from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at
end of period (in thousands | ) | Gross expenses | e | Net expenses | e | investment income (loss | ) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFECYCLE INDEX 2035 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $16.01 | $0.35 | $0.78 | $1.13 | $(0.35 | ) | $(0.02 | ) | $(0.37 | ) | $16.77 | 7.14 | % | $370,682 | 0.13 | % | 0.08 | % | 2.15 | % | 5 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 14.08 | 0.29 | 2.02 | 2.31 | (0.29 | ) | (0.09 | ) | (0.38 | ) | 16.01 | 16.51 | 296,719 | 0.15 | 0.08 | 1.96 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.63 | 0.24 | 2.44 | 2.68 | (0.23 | ) | (0.00 | )d | (0.23 | ) | 14.08 | 23.25 | 203,726 | 0.17 | 0.09 | 1.86 | 7 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.48 | 0.20 | (0.85 | ) | (0.65 | ) | (0.19 | ) | (0.01 | ) | (0.20 | ) | 11.63 | (5.07 | ) | 125,358 | 0.21 | 0.10 | 1.68 | 19 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.84 | 0.19 | 1.65 | 1.84 | (0.20 | ) | — | (0.20 | ) | 12.48 | 17.12 | b | 91,325 | 0.23 | c | 0.09 | c | 2.46 | c | 10 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.05 | 0.84 | 0.89 | (0.05 | ) | — | (0.05 | ) | 10.84 | 8.91 | 56,430 | 0.61 | 0.07 | 0.52 | 10 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 15.95 | 0.32 | 0.79 | 1.11 | (0.33 | ) | (0.02 | ) | (0.35 | ) | 16.71 | 7.02 | 108,817 | 0.28 | 0.23 | 1.99 | 5 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 14.03 | 0.25 | 2.03 | 2.28 | (0.27 | ) | (0.09 | ) | (0.36 | ) | 15.95 | 16.34 | 90,943 | 0.30 | 0.23 | 1.69 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.60 | 0.28 | 2.37 | 2.65 | (0.22 | ) | (0.00 | )d | (0.22 | ) | 14.03 | 23.06 | 68,495 | 0.32 | 0.24 | 2.17 | 7 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.46 | 0.17 | (0.84 | ) | (0.67 | ) | (0.18 | ) | (0.01 | ) | (0.19 | ) | 11.60 | (5.26 | ) | 13,777 | 0.36 | 0.25 | 1.49 | 19 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.83 | 0.18 | 1.64 | 1.82 | (0.19 | ) | — | (0.19 | ) | 12.46 | 17.00 | b | 7,916 | 0.38 | c | 0.24 | c | 2.31 | c | 10 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.14 | 0.73 | 0.87 | (0.04 | ) | — | (0.04 | ) | 10.83 | 8.77 | 1,336 | 0.85 | 0.23 | 1.40 | 10 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 15.91 | 0.31 | 0.78 | 1.09 | (0.32 | ) | (0.02 | ) | (0.34 | ) | 16.66 | 6.92 | 71,803 | 0.43 | 0.33 | 1.91 | 5 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 14.00 | 0.22 | 2.04 | 2.26 | (0.26 | ) | (0.09 | ) | (0.35 | ) | 15.91 | 16.23 | 34,019 | 0.45 | 0.33 | 1.45 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.57 | 0.21 | 2.43 | 2.64 | (0.21 | ) | (0.00 | )d | (0.21 | ) | 14.00 | 23.00 | 16,853 | 0.47 | 0.34 | 1.63 | 7 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.44 | 0.18 | (0.86 | ) | (0.68 | ) | (0.18 | ) | (0.01 | ) | (0.19 | ) | 11.57 | (5.36 | ) | 6,337 | 0.51 | 0.35 | 1.52 | 19 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.82 | 0.13 | 1.68 | 1.81 | (0.19 | ) | — | (0.19 | ) | 12.44 | 16.89 | b | 1,597 | 0.55 | c | 0.34 | c | 1.61 | c | 10 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.15 | 0.71 | 0.86 | (0.04 | ) | — | (0.04 | ) | 10.82 | 8.64 | 404 | 1.04 | 0.33 | 1.41 | 10 | ||||||||||||||||||||||||||||||||||||||||||
| LIFECYCLE INDEX 2040 INDEX | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | 16.25 | 0.36 | 0.85 | 1.21 | (0.36 | ) | (0.02 | ) | (0.38 | ) | 17.08 | 7.55 | 462,814 | 0.13 | 0.08 | 2.17 | 6 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 14.19 | 0.30 | 2.15 | 2.45 | (0.30 | ) | (0.09 | ) | (0.39 | ) | 16.25 | 17.45 | 379,218 | 0.15 | 0.08 | 1.95 | 8 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.62 | 0.24 | 2.57 | 2.81 | (0.24 | ) | (0.00 | )d | (0.24 | ) | 14.19 | 24.37 | 264,444 | 0.16 | 0.09 | 1.86 | 6 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.52 | 0.20 | (0.89 | ) | (0.69 | ) | (0.19 | ) | (0.02 | ) | (0.21 | ) | 11.62 | (5.42 | ) | 170,934 | 0.19 | 0.10 | 1.70 | 17 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.87 | 0.19 | 1.66 | 1.85 | (0.20 | ) | — | (0.20 | ) | 12.52 | 17.19 | b | 119,510 | 0.21 | c | 0.09 | c | 2.46 | c | 10 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.04 | 0.86 | 0.90 | (0.03 | ) | — | (0.03 | ) | 10.87 | 8.98 | 79,123 | 0.47 | 0.07 | 0.42 | 11 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 16.19 | 0.33 | 0.85 | 1.18 | (0.34 | ) | (0.02 | ) | (0.36 | ) | 17.01 | 7.36 | 102,991 | 0.28 | 0.23 | 1.99 | 6 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 14.14 | 0.26 | 2.16 | 2.42 | (0.28 | ) | (0.09 | ) | (0.37 | ) | 16.19 | 17.28 | 87,589 | 0.30 | 0.23 | 1.70 | 8 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.59 | 0.28 | 2.50 | 2.78 | (0.23 | ) | (0.00 | )d | (0.23 | ) | 14.14 | 24.18 | 66,876 | 0.31 | 0.24 | 2.12 | 6 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.49 | 0.17 | (0.87 | ) | (0.70 | ) | (0.18 | ) | (0.02 | ) | (0.20 | ) | 11.59 | (5.52 | ) | 16,233 | 0.34 | 0.25 | 1.48 | 17 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.85 | 0.18 | 1.65 | 1.83 | (0.19 | ) | — | (0.19 | ) | 12.49 | 17.08 | b | 11,311 | 0.37 | c | 0.24 | c | 2.32 | c | 10 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.14 | 0.73 | 0.87 | (0.02 | ) | — | (0.02 | ) | 10.85 | 8.74 | 1,790 | 0.69 | 0.23 | 1.32 | 11 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 16.15 | 0.32 | 0.84 | 1.16 | (0.33 | ) | (0.02 | ) | (0.35 | ) | 16.96 | 7.28 | 74,281 | 0.43 | 0.33 | 1.92 | 6 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 14.12 | 0.24 | 2.15 | 2.39 | (0.27 | ) | (0.09 | ) | (0.36 | ) | 16.15 | 17.09 | 33,725 | 0.45 | 0.33 | 1.58 | 8 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.57 | 0.21 | 2.55 | 2.76 | (0.21 | ) | (0.00 | )d | (0.21 | ) | 14.12 | 24.10 | 19,052 | 0.46 | 0.34 | 1.65 | 6 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.48 | 0.18 | (0.89 | ) | (0.71 | ) | (0.18 | ) | (0.02 | ) | (0.20 | ) | 11.57 | (5.62 | ) | 7,751 | 0.49 | 0.35 | 1.51 | 17 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.84 | 0.11 | 1.72 | 1.83 | (0.19 | ) | — | (0.19 | ) | 12.48 | 17.06 | b | 1,882 | 0.54 | c | 0.34 | c | 1.37 | c | 10 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.15 | 0.71 | 0.86 | (0.02 | ) | — | (0.02 | ) | 10.84 | 8.62 | 395 | 0.88 | 0.33 | 1.41 | 11 | ||||||||||||||||||||||||||||||||||||||||||
| 64 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 65 |
| Financial highlights | continued |
TIAA-CREF Lifecycle Index Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss | )a | gain
(loss) on total investments | j | (loss)
from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at
end of period (in thousands | ) | Gross expenses | e | Net expenses | e | investment income (loss | ) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFECYCLE INDEX 2045 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $16.17 | $0.36 | $0.85 | $1.21 | $(0.36 | ) | $(0.02 | ) | $(0.38 | ) | $17.00 | 7.56 | % | $189,644 | 0.15 | % | 0.08 | % | 2.17 | % | 5 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 14.10 | 0.29 | 2.14 | 2.43 | (0.30 | ) | (0.06 | ) | (0.36 | ) | 16.17 | 17.37 | 135,011 | 0.18 | 0.08 | 1.94 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.54 | 0.25 | 2.54 | 2.79 | (0.23 | ) | (0.00 | )d | (0.23 | ) | 14.10 | 24.42 | 83,001 | 0.22 | 0.09 | 1.90 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.42 | 0.19 | (0.87 | ) | (0.68 | ) | (0.19 | ) | (0.01 | ) | (0.20 | ) | 11.54 | (5.36 | ) | 45,913 | 0.34 | 0.10 | 1.65 | 25 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.79 | 0.19 | 1.64 | 1.83 | (0.20 | ) | — | (0.20 | ) | 12.42 | 17.13 | b | 28,529 | 0.35 | c | 0.09 | c | 2.41 | c | 11 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.09 | 0.80 | 0.89 | (0.10 | ) | — | (0.10 | ) | 10.79 | 8.94 | 17,294 | 1.15 | 0.08 | 0.90 | 10 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 16.11 | 0.33 | 0.86 | 1.19 | (0.34 | ) | (0.02 | ) | (0.36 | ) | 16.94 | 7.44 | 78,809 | 0.30 | 0.23 | 2.00 | 5 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 14.05 | 0.26 | 2.14 | 2.40 | (0.28 | ) | (0.06 | ) | (0.34 | ) | 16.11 | 17.21 | 63,580 | 0.33 | 0.23 | 1.75 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.52 | 0.30 | 2.46 | 2.76 | (0.23 | ) | (0.00 | )d | (0.23 | ) | 14.05 | 24.14 | 44,631 | 0.36 | 0.24 | 2.35 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.40 | 0.17 | (0.86 | ) | (0.69 | ) | (0.18 | ) | (0.01 | ) | (0.19 | ) | 11.52 | (5.46 | ) | 7,202 | 0.49 | 0.25 | 1.47 | 25 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.78 | 0.17 | 1.64 | 1.81 | (0.19 | ) | — | (0.19 | ) | 12.40 | 17.01 | b | 4,521 | 0.51 | c | 0.24 | c | 2.25 | c | 11 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.16 | 0.71 | 0.87 | (0.09 | ) | — | (0.09 | ) | 10.78 | 8.80 | 408 | 1.37 | 0.23 | 1.57 | 10 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 16.07 | 0.31 | 0.85 | 1.16 | (0.33 | ) | (0.02 | ) | (0.35 | ) | 16.88 | 7.29 | 45,836 | 0.45 | 0.33 | 1.88 | 5 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 14.02 | 0.23 | 2.15 | 2.38 | (0.27 | ) | (0.06 | ) | (0.33 | ) | 16.07 | 17.10 | 20,002 | 0.48 | 0.33 | 1.51 | 13 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.50 | 0.23 | 2.50 | 2.73 | (0.21 | ) | (0.00 | )d | (0.21 | ) | 14.02 | 23.98 | 9,184 | 0.52 | 0.34 | 1.75 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.39 | 0.16 | (0.86 | ) | (0.70 | ) | (0.18 | ) | (0.01 | ) | (0.19 | ) | 11.50 | (5.56 | ) | 2,967 | 0.64 | 0.35 | 1.38 | 25 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.77 | 0.16 | 1.65 | 1.81 | (0.19 | ) | — | (0.19 | ) | 12.39 | 16.98 | b | 596 | 0.70 | c | 0.34 | c | 1.99 | c | 11 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.15 | 0.71 | 0.86 | (0.09 | ) | — | (0.09 | ) | 10.77 | 8.67 | 325 | 1.53 | 0.33 | 1.46 | 10 | ||||||||||||||||||||||||||||||||||||||||||
| LIFECYCLE INDEX 2050 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | 16.16 | 0.36 | 0.85 | 1.21 | (0.36 | ) | (0.02 | ) | (0.38 | ) | 16.99 | 7.58 | 122,783 | 0.17 | 0.08 | 2.18 | 5 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 14.09 | 0.29 | 2.14 | 2.43 | (0.30 | ) | (0.06 | ) | (0.36 | ) | 16.16 | 17.38 | 86,068 | 0.21 | 0.08 | 1.91 | 20 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.54 | 0.24 | 2.54 | 2.78 | (0.23 | ) | — | (0.23 | ) | 14.09 | 24.33 | 57,380 | 0.28 | 0.09 | 1.85 | 22 | ||||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.42 | 0.19 | (0.87 | ) | (0.68 | ) | (0.19 | ) | (0.01 | ) | (0.20 | ) | 11.54 | (5.36 | ) | 30,943 | 0.44 | 0.10 | 1.66 | 30 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.78 | 0.18 | 1.66 | 1.84 | (0.20 | ) | — | (0.20 | ) | 12.42 | 17.26 | b | 19,744 | 0.43 | c | 0.09 | c | 2.34 | c | 12 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.11 | 0.78 | 0.89 | (0.11 | ) | — | (0.11 | ) | 10.78 | 8.94 | 11,539 | 1.46 | 0.08 | 1.10 | 11 | ||||||||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 16.10 | 0.33 | 0.84 | 1.17 | (0.33 | ) | (0.02 | ) | (0.35 | ) | 16.92 | 7.40 | 54,208 | 0.32 | 0.23 | 1.99 | 5 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 14.04 | 0.26 | 2.14 | 2.40 | (0.28 | ) | (0.06 | ) | (0.34 | ) | 16.10 | 17.23 | 40,648 | 0.36 | 0.23 | 1.76 | 20 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.51 | 0.30 | 2.46 | 2.76 | (0.23 | ) | — | (0.23 | ) | 14.04 | 24.16 | 26,880 | 0.41 | 0.24 | 2.33 | 22 | ||||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.39 | 0.17 | (0.86 | ) | (0.69 | ) | (0.18 | ) | (0.01 | ) | (0.19 | ) | 11.51 | (5.46 | ) | 3,683 | 0.59 | 0.25 | 1.46 | 30 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.77 | 0.18 | 1.64 | 1.82 | (0.20 | ) | — | (0.20 | ) | 12.39 | 17.04 | b | 2,458 | 0.60 | c | 0.24 | c | 2.27 | c | 12 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.16 | 0.71 | 0.87 | (0.10 | ) | — | (0.10 | ) | 10.77 | 8.80 | 328 | 1.65 | 0.23 | 1.59 | 11 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 16.06 | 0.30 | 0.85 | 1.15 | (0.33 | ) | (0.02 | ) | (0.35 | ) | 16.86 | 7.25 | 31,045 | 0.47 | 0.33 | 1.86 | 5 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 14.01 | 0.23 | 2.15 | 2.38 | (0.27 | ) | (0.06 | ) | (0.33 | ) | 16.06 | 17.12 | 11,803 | 0.51 | 0.33 | 1.55 | 20 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 11.49 | 0.22 | 2.51 | 2.73 | (0.21 | ) | — | (0.21 | ) | 14.01 | 24.00 | 5,528 | 0.58 | 0.34 | 1.67 | 22 | ||||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 12.38 | 0.15 | (0.85 | ) | (0.70 | ) | (0.18 | ) | (0.01 | ) | (0.19 | ) | 11.49 | (5.57 | ) | 1,692 | 0.75 | 0.35 | 1.33 | 30 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 10.76 | 0.17 | 1.64 | 1.81 | (0.19 | ) | — | (0.19 | ) | 12.38 | 17.01 | b | 404 | 0.80 | c | 0.34 | c | 2.13 | c | 12 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 10.00 | 0.15 | 0.71 | 0.86 | (0.10 | ) | — | (0.10 | ) | 10.76 | 8.67 | 286 | 1.80 | 0.33 | 1.49 | 11 | ||||||||||||||||||||||||||||||||||||||||||
| 66 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 67 |
| Financial highlights | concluded |
TIAA-CREF Lifecycle Index Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss | )a | gain
(loss) on total investments | j | (loss)
from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at
end of period (in thousands | ) | Gross expenses | e | Net expenses | e | investment income (loss | ) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFECYCLE INDEX 2055 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $12.86 | $0.29 | $0.65 | $0.94 | $(0.28 | ) | $(0.01 | ) | $(0.29 | ) | $13.51 | 7.47 | % | $34,367 | 0.34 | % | 0.08 | % | 2.18 | % | 9 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.21 | 0.23 | 1.70 | 1.93 | (0.23 | ) | (0.05 | ) | (0.28 | ) | 12.86 | 17.42 | 22,433 | 0.54 | 0.08 | 1.93 | 25 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.18 | 0.19 | 2.03 | 2.22 | (0.19 | ) | (0.00 | )d | (0.19 | ) | 11.21 | 24.40 | 13,356 | 0.75 | 0.09 | 1.83 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.87 | 0.15 | (0.69 | ) | (0.54 | ) | (0.15 | ) | (0.00 | )d | (0.15 | ) | 9.18 | (5.33 | ) | 8,376 | 1.15 | 0.10 | 1.61 | 7 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | ‡ | 10.00 | 0.00 | d | (0.13 | ) | (0.13 | ) | — | — | — | 9.87 | (1.30 | )b | 7,896 | 8.35 | c | 0.10 | c | 0.15 | c | 1 | b | |||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 12.84 | 0.26 | 0.67 | 0.93 | (0.27 | ) | (0.01 | ) | (0.28 | ) | 13.49 | 7.35 | 7,695 | 0.49 | 0.23 | 1.96 | 9 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.20 | 0.21 | 1.70 | 1.91 | (0.22 | ) | (0.05 | ) | (0.27 | ) | 12.84 | 17.21 | 4,510 | 0.69 | 0.23 | 1.76 | 25 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.17 | 0.19 | 2.02 | 2.21 | (0.18 | ) | (0.00 | )d | (0.18 | ) | 11.20 | 24.29 | 2,305 | 0.91 | 0.24 | 1.81 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.87 | 0.14 | (0.70 | ) | (0.56 | ) | (0.14 | ) | (0.00 | )d | (0.14 | ) | 9.17 | (5.53 | ) | 986 | 1.31 | 0.25 | 1.50 | 7 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | ‡ | 10.00 | 0.00 | d | (0.13 | ) | (0.13 | ) | — | — | — | 9.87 | (1.30 | )b | 987 | 9.18 | c | 0.25 | c | (0.01 | )c | 1 | b | |||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 12.83 | 0.27 | 0.65 | 0.92 | (0.26 | ) | (0.01 | ) | (0.27 | ) | 13.48 | 7.33 | 7,668 | 0.65 | 0.33 | 2.06 | 9 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.19 | 0.20 | 1.70 | 1.90 | (0.21 | ) | (0.05 | ) | (0.26 | ) | 12.83 | 17.12 | 2,417 | 0.85 | 0.33 | 1.64 | 25 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.17 | 0.16 | 2.02 | 2.18 | (0.16 | ) | (0.00 | )d | (0.16 | ) | 11.19 | 24.03 | 1,416 | 1.06 | 0.34 | 1.55 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 9.87 | 0.13 | (0.70 | ) | (0.57 | ) | (0.13 | ) | (0.00 | )d | (0.13 | ) | 9.17 | (5.59 | ) | 986 | 1.46 | 0.35 | 1.36 | 7 | ||||||||||||||||||||||||||||||||||||||
| 5/31/11 | ‡ | 10.00 | 0.00 | d | (0.13 | ) | (0.13 | ) | — | — | — | 9.87 | (1.30 | )b | 987 | 9.33 | c | 0.35 | c | (0.09 | )c | 1 | b | |||||||||||||||||||||||||||||||||||
| LIFECYCLE INDEX 2060 FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | ^ | 10.00 | 0.21 | 0.41 | 0.62 | (0.21 | ) | — | (0.21 | ) | 10.41 | 6.31 | b | 8,556 | 1.65 | c | 0.08 | c | 3.06 | c | 6 | b | |||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | ^ | 10.00 | 0.20 | 0.42 | 0.62 | (0.21 | ) | — | (0.21 | ) | 10.41 | 6.26 | b | 1,062 | 1.97 | c | 0.23 | c | 2.92 | c | 6 | b | |||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | ^ | 10.00 | 0.19 | 0.41 | 0.60 | (0.20 | ) | — | (0.20 | ) | 10.40 | 6.14 | b | 1,067 | 2.12 | c | 0.33 | c | 2.82 | c | 6 | b | |||||||||||||||||||||||||||||||||||
| a | Based on average shares outstanding. |
| b | The percentages shown for this period are not annualized. |
| c | The percentages shown for this period are annualized. |
| d | Amount represents less than $0.01 per share. |
| e | The Fund’s expenses do not include the expenses of the underlying funds. |
| j | Short-term capital gains distributions are presented in net realized and unrealized gain (loss) on total investments for all periods presented. |
| † | Amounts shown are for the eight-month period ended May 31, 2011 and are not necessarily indicative of a full year of operations. The Fund changed its fiscal year end from September 30 to May 31. |
| ‡ | The Fund commenced operations on April 29, 2011. |
| ^ | The Fund commenced operations on September 26, 2014. |
| 68 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 69 |
TIAA-CREF Lifecycle Index Funds
Note 1—organization and significant accounting policies
The Lifecycle Index Funds (collectively the “Funds,” each individually referred to as a “Fund”) are a sub-family of mutual funds offered by the TIAA-CREF Funds (the “Trust”), a Delaware statutory trust, that is registered with the Securities and Exchange Commission (“Commission”) under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The Lifecycle Index 2060 Fund commenced operations on September 26, 2014.
Each Fund is a “fund of funds” that diversifies its assets by investing in Institutional Class shares of other funds of the Trust and potentially other investment pools or investment products. The Funds offer their shares, without a sales load, through their principal underwriter, Teachers Personal Investors Services, Inc. (“TPIS”), which is a wholly owned indirect subsidiary of Teachers Insurance and Annuity Association of America (“TIAA”). Teachers Advisors, Inc. (“Advisors”), a wholly owned indirect subsidiary of TIAA, is registered with the Commission as an investment adviser and provides investment management services for the Funds. The Funds offer Institutional, Premier and Retirement Classes of shares. Each class differs by the allocation of class-specific expenses and voting rights in matters affecting a single class.
The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from those estimates. The Funds are investment companies and follow the accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services—Investment Companies. The Net Asset Value (“NAV”) for financial reporting purposes may differ from the NAV for processing transactions. The NAV for financial reporting purposes includes security and shareholder transactions through the date of the report. Total return is computed based on the NAV used for processing transactions. The following is a summary of the significant accounting policies consistently followed by the Funds.
Security valuation: The Funds’ investments in securities are recorded at their estimated fair value as described in the valuation of investments note to the financial statements.
Investments and investment income: Securities transactions are accounted for as of the trade date for financial reporting purposes. Dividends from investments are recorded on the ex-dividend date. Dividends from investments are recorded as dividend income, while capital gain distributions, including short-term capital gain distributions, are recorded as gain distributions from investments on the Statements of Operations. Realized gains and losses on sales from investments in investment companies are based upon the specific identification method.
| 70 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Income, expenses, realized gains and losses and unrealized appreciation and depreciation of a Fund are allocated on a pro rata basis to each class of shares, except for service agreement fees, distribution fees and transfer agency fees and expenses, which are unique to each class of shares. Most expenses of the Trust can be directly attributed to a fund. Expenses that cannot be directly attributed are allocated to each fund in the Trust based upon the average net assets of each fund.
Distributions to shareholders: Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date.
Income taxes: Each Fund is treated separately for income tax purposes. The Funds intend to continue to qualify as regulated investment companies under Subchapter M of the Internal Revenue Code (“Code”) and will not be subject to income taxes to the extent that they distribute all taxable income each year and comply with various other Code requirements. The Funds file income tax returns in U.S. federal and applicable state and local jurisdictions. A fund’s federal income tax returns are generally subject to examination for a period of three fiscal years after filed. State and local tax returns may be subject to examination for an additional period of time depending on the jurisdiction. Management has analyzed the Funds’ tax positions taken for all open federal income tax years and has concluded that no provision for federal income tax is required in the Funds’ financial statements.
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. GAAP. Reclassifications are made to a Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.
For the year ended May 31, 2015, permanent book and tax differences resulting primarily from the reclassification of short-term capital gain distributions received from underlying funds from realized gain (loss) to ordinary income were identified and reclassified among the components of the Funds’ net assets. Net investment income and net realized gains (losses), as disclosed on the Statements of Operations, and net assets were not affected by these reclassifications.
Trustee compensation: The Funds pay the members of the Board of Trustees (“Board”), all of whom are independent, certain remuneration for their services, plus travel and other expenses. Trustees may elect to participate in a deferred compensation plan and defer all or a portion of their compensation. In addition, trustees participate in a long-term compensation plan. Amounts deferred are retained by the Funds until paid. Amounts payable to the trustees for compensation are included in the accompanying Statements of Assets and Liabilities. Trustees’ fees, including any deferred and long-term compensation incurred, are reflected in the Statements of Operations.
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 71 |
Notes to financial statements
Note 2—valuation of investments
Portfolio investments are valued at fair value utilizing various valuation methods approved by the Board. U.S. GAAP establishes a hierarchy that prioritizes market inputs to valuation methods. The three levels of inputs are:
| • | Level 1 – quoted prices in active markets for identical securities |
| • | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.) |
| • | Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
A description of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value follows:
Investments in registered investment companies: These investments are valued at their net asset value on the valuation date. These investments are categorized in Level 1 of the fair value hierarchy.
Transfers between levels are recognized at the end of the reporting period. For the year ended May 31, 2015, there were no transfers between levels by the Funds.
As of May 31, 2015, all of the investments in the Funds were valued based on Level 1 inputs.
Note 3—investment adviser and affiliates
Under the terms of its Investment Management Agreement, each Fund pays Advisors a monthly fee based on the annual rate of 0.10% of a Fund’s average daily net assets for the management of the Fund’s investment portfolio. Advisors has contractually agreed to waive a portion of the Funds’ management fees equal to, on an annual basis, the following percentages of the average daily net assets of each Fund: 0.06% for the Retirement Income Fund and the 2010 Fund; 0.05% for the 2015 Fund; 0.04% for the 2020 Fund; 0.03% for the 2025 and the 2030 Funds, and 0.02% for the 2035 Fund, the 2040 Fund, the 2045 Fund, the 2050 Fund, the 2055 Fund, and the 2060 Fund. These waivers will remain in effect through September 30, 2015, unless changed with the approval of the Board. Prior to September 26, 2014, Advisors had contractually agreed to waive a portion of certain Funds’ management fees equal to, on an annual
| 72 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
continued
basis, the following percentages of the average daily net assets of each Fund: 0.05% for the 2010 Fund; 0.04% for the 2015 Fund; and 0.02% for the 2030 Fund. The Funds have entered into an Administrative Service Agreement with Advisors under which the Funds pay Advisors for its costs in providing certain administrative and compliance services to the Funds.
Under the terms of a Retirement Class Service Agreement with respect to each Fund, the Retirement Class of the Fund pays Advisors a monthly fee based on the annual rate of 0.25% of the Fund’s average daily net assets attributable to Retirement Class shares of the Fund for providing certain administrative services related to the maintenance of Retirement Class shares on retirement plan or other platforms. Substantially all of the Retirement Class shareholder servicing fees reported on the Statements of Operations are paid to Advisors under the Service Agreement.
Under the terms of a distribution Rule 12b-1 plan, the Retirement Class and Premier Class of the Funds compensated TPIS for providing distribution, promotional and/or shareholder services to the Retirement Class and Premier Class at the annual rate of 0.05% and 0.15% of the average daily net assets attributable to the Retirement Class shares and Premier Class shares, respectively. TPIS has agreed not to seek any reimbursement from the Retirement Class shares under the distribution Rule 12b-1 plan through September 30, 2015. However, this agreement may be terminated before this date with the approval of the Board.
Advisors has agreed to reimburse each Fund if its total expense ratio (excluding interest, taxes, brokerage commissions and other transactional expenses, acquired fund fees and expenses and extraordinary expenses) exceeds: (i) 0.04% of average daily net assets for Institutional Class shares of the Retirement Income Fund and 2010 Fund; 0.05% of average daily net assets for Institutional Class shares of the 2015 Fund; 0.06% of average daily net assets for Institutional Class shares of the 2020 Fund; 0.07% of average daily net assets for Institutional Class shares of the 2025 Fund and the 2030 Fund; 0.08% of average daily net assets for Institutional Class shares of the 2035 Fund, the 2040 Fund, the 2045 Fund, the 2050 Fund, the 2055 Fund, and the 2060 Fund; (ii) 0.19% of average daily net assets for Premier Class shares of the Retirement Income Fund and the 2010 Fund; 0.20% of average daily net assets for Premier Class shares of the 2015 Fund; 0.21% of average daily net assets for Premier Class shares of the 2020 Fund; 0.22% of average daily net assets for Premier Class shares of the 2025 Fund and the 2030 Fund; 0.23% of average daily net assets for Premier Class shares of the 2035 Fund, the 2040 Fund, the 2045 Fund, the 2050 Fund, the 2055 Fund, and the 2060 Fund; and (iii) 0.29% of average daily net assets for Retirement Class shares of the Retirement Income Fund and the 2010 Fund; 0.30% of average daily net assets for Retirement Class shares of the 2015 Fund; 0.31% of average daily net assets for Retirement Class shares of the 2020 Fund; 0.32% of average daily net assets for Retirement Class shares of the 2025 Fund and the 2030 Fund; 0.33% of average daily net assets for Retirement Class shares of the 2035 Fund, the 2040 Fund, the 2045 Fund, the 2050 Fund, the 2055 Fund, and the 2060 Fund. The expense reimbursement arrangements will continue through at least September 30, 2015, unless changed with
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 73 |
Notes to financial statements
the approval of the Board. Prior to September 26, 2014, Advisors agreed to reimburse each Fund if its total expense ratio (excluding interest, taxes, brokerage commissions and other transactional expenses, acquired fund fees and expenses and extraordinary expenses) exceeds (i) 0.05%, 0.06%, and 0.08% of average daily net assets for Institutional Class shares of the 2010, 2015 and 2030 Funds, respectively; (ii) 0.20%, 0.21%, and 0.23% of average daily net assets for Premier Class shares of the 2010, 2015 and 2030 Funds, respectively; and (iii) 0.30%, 0.31%, and 0.33% of average daily net assets for Retirement Class shares of the 2010, 2015 and 2030 Funds, respectively.
The following is the percentage of the Funds’ shares owned by TIAA as of May 31, 2015:
| Fund | TIAA | |||
| Lifecycle Index Retirement Income | 13 | % | ||
| Lifecycle Index 2055 | 29 | |||
| Lifecycle Index 2060 | 90 | |||
Investments in other investment companies advised by Advisors are deemed to be affiliated investments. The Funds invest their assets in Institutional Class shares of the affiliated TIAA-CREF Funds. Information regarding transactions with affiliated companies is as follows:
| Issue | Value at May 31, 2014 | Purchases cost | Sales proceeds | Realized gain (loss | )a | Dividend income | Value at May 31, 2015 | |||||||||||||||||
| Lifecycle Index Retirement Income Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Index | $ | 17,318,318 | $ | 10,534,728 | $ | 4,428,368 | $ | 185 | $ | 425,593 | $ | 23,538,355 | ||||||||||||
| TIAA-CREF Emerging Markets Equity Index | 941,921 | 696,716 | 340,387 | (9,002 | ) | 22,314 | 1,280,745 | |||||||||||||||||
| TIAA-CREF Equity Index | 9,776,225 | 5,468,325 | 2,983,805 | 63,512 | 195,714 | 13,249,909 | ||||||||||||||||||
| TIAA-CREF Inflation-Linked Bond | 3,486,035 | 2,263,703 | 922,737 | (53,966 | ) | 63,385 | 4,733,065 | |||||||||||||||||
| TIAA-CREF International Equity Index | 3,237,507 | 2,206,222 | 1,097,337 | (25,016 | ) | 130,696 | 4,252,414 | |||||||||||||||||
| $ | 34,760,006 | $ | 21,169,694 | $ | 9,772,634 | $ | (24,287 | ) | $ | 837,702 | $ | 47,054,488 | ||||||||||||
| Lifecycle Index 2010 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Index | $ | 73,187,291 | $ | 23,158,953 | $ | 8,829,941 | $ | (8,690 | ) | $ | 1,750,093 | $ | 87,913,710 | |||||||||||
| TIAA-CREF Emerging Markets Equity Index | 4,947,728 | 2,000,897 | 1,068,968 | (45,117 | ) | 113,325 | 5,780,066 | |||||||||||||||||
| TIAA-CREF Equity Index | 51,353,161 | 12,068,342 | 8,937,783 | 381,929 | 993,920 | 59,468,910 | ||||||||||||||||||
| TIAA-CREF Inflation-Linked Bond | 11,952,031 | 4,809,044 | 1,518,165 | (98,202 | ) | 220,350 | 14,900,125 | |||||||||||||||||
| TIAA-CREF International Equity Index | 17,006,236 | 6,308,111 | 3,525,767 | (55,178 | ) | 663,744 | 19,232,104 | |||||||||||||||||
| $ | 158,446,447 | $ | 48,345,347 | $ | 23,880,624 | $ | 174,742 | $ | 3,741,432 | $ | 187,294,915 | |||||||||||||
| 74 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
continued
| Issue | Value at May 31, 2014 | Purchases cost | Sales proceeds | Realized gain (loss | )a | Dividend income | Value at May 31, 2015 | |||||||||||||||||
| Lifecycle Index 2015 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Index | $ | 120,446,402 | $ | 40,383,421 | $ | 11,657,060 | $ | (16,140 | ) | $ | 2,945,054 | $ | 149,848,729 | |||||||||||
| TIAA-CREF Emerging Markets Equity Index | 9,941,695 | 3,720,851 | 1,747,527 | (76,266 | ) | 230,444 | 11,711,932 | |||||||||||||||||
| TIAA-CREF Equity Index | 103,337,257 | 22,091,851 | 15,192,983 | 796,896 | 2,021,921 | 120,391,640 | ||||||||||||||||||
| TIAA-CREF Inflation-Linked Bond | 15,724,686 | 6,478,643 | 1,515,540 | (102,163 | ) | 294,470 | 20,233,907 | |||||||||||||||||
| TIAA-CREF International Equity Index | 34,233,588 | 11,481,626 | 5,612,549 | (73,089 | ) | 1,352,075 | 38,969,408 | |||||||||||||||||
| $ | 283,683,628 | $ | 84,156,392 | $ | 35,725,659 | $ | 529,238 | $ | 6,843,964 | $ | 341,155,616 | |||||||||||||
| Lifecycle Index 2020 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Index | $ | 150,802,408 | $ | 65,908,658 | $ | 6,630,742 | $ | 71,542 | $ | 3,893,824 | $ | 210,926,497 | ||||||||||||
| TIAA-CREF Emerging Markets Equity Index | 16,700,305 | 8,029,576 | 2,265,358 | (154,199 | ) | 412,863 | 22,121,864 | |||||||||||||||||
| TIAA-CREF Equity Index | 173,599,042 | 51,127,105 | 15,150,664 | 1,035,349 | 3,616,856 | 227,415,832 | ||||||||||||||||||
| TIAA-CREF Inflation-Linked Bond | 14,614,119 | 8,659,829 | 736,863 | (50,312 | ) | 279,067 | 22,103,475 | |||||||||||||||||
| TIAA-CREF International Equity Index | 57,510,673 | 24,408,115 | 6,713,250 | (175,420 | ) | 2,414,866 | 73,479,642 | |||||||||||||||||
| $ | 413,226,547 | $ | 158,133,283 | $ | 31,496,877 | $ | 726,960 | $ | 10,617,476 | $ | 556,047,310 | |||||||||||||
| Lifecycle Index 2025 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Index | $ | 127,362,829 | $ | 54,845,267 | $ | 5,118,386 | $ | 85,492 | $ | 3,277,628 | $ | 177,819,801 | ||||||||||||
| TIAA-CREF Emerging Markets Equity Index | 19,120,269 | 8,471,312 | 2,130,509 | (156,929 | ) | 468,858 | 25,064,096 | |||||||||||||||||
| TIAA-CREF Equity Index | 198,612,185 | 53,603,805 | 14,065,241 | 1,209,744 | 4,115,532 | 258,431,516 | ||||||||||||||||||
| TIAA-CREF Inflation-Linked Bond | 6,396,525 | 5,056,594 | 241,870 | (14,446 | ) | 124,961 | 11,013,110 | |||||||||||||||||
| TIAA-CREF International Equity Index | 65,801,795 | 26,404,671 | 6,883,105 | (161,979 | ) | 2,750,081 | 83,258,784 | |||||||||||||||||
| $ | 417,293,603 | $ | 148,381,649 | $ | 28,439,111 | $ | 961,882 | $ | 10,737,060 | $ | 555,587,307 | |||||||||||||
| Lifecycle Index 2030 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Index | $ | 103,839,723 | $ | 52,647,785 | $ | 5,430,867 | $ | 57,470 | $ | 2,750,532 | $ | 151,635,949 | ||||||||||||
| TIAA-CREF Emerging Markets Equity Index | 22,040,806 | 10,066,812 | 2,065,243 | (149,263 | ) | 552,142 | 29,563,063 | |||||||||||||||||
| TIAA-CREF Equity Index | 229,203,411 | 64,446,133 | 13,114,843 | 1,427,381 | 4,836,962 | 304,305,967 | ||||||||||||||||||
| TIAA-CREF International Equity Index | 75,936,947 | 31,288,802 | 6,756,974 | (118,197 | ) | 3,229,533 | 98,150,767 | |||||||||||||||||
| $ | 431,020,887 | $ | 158,449,532 | $ | 27,367,927 | $ | 1,217,391 | $ | 11,369,169 | $ | 583,655,746 | |||||||||||||
| Lifecycle Index 2035 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Index | $ | 67,878,093 | $ | 34,913,645 | $ | 4,304,141 | $ | 23,635 | $ | 1,783,870 | $ | 98,861,355 | ||||||||||||
| TIAA-CREF Emerging Markets Equity Index | 23,778,004 | 9,782,155 | 2,129,492 | (154,864 | ) | 577,331 | 30,908,365 | |||||||||||||||||
| TIAA-CREF Equity Index | 247,165,387 | 58,946,196 | 13,280,593 | 1,485,982 | 5,060,935 | 317,806,845 | ||||||||||||||||||
| TIAA-CREF International Equity Index | 81,833,250 | 29,958,574 | 6,495,139 | (105,516 | ) | 3,381,109 | 102,603,196 | |||||||||||||||||
| $ | 420,654,734 | $ | 133,600,570 | $ | 26,209,365 | $ | 1,249,237 | $ | 10,803,245 | $ | 550,179,761 | |||||||||||||
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 75 |
Notes to financial statements
| Issue | Value at May 31, 2014 | Purchases cost | Sales proceeds | Realized gain (loss | )a | Dividend income | Value at May 31, 2015 | |||||||||||||||||
| Lifecycle Index 2040 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Index | $ | 49,939,539 | $ | 19,137,787 | $ | 5,431,159 | $ | 6,441 | $ | 1,239,922 | $ | 63,934,195 | ||||||||||||
| TIAA-CREF Emerging Markets Equity Index | 30,287,947 | 13,059,176 | 3,274,134 | (225,410 | ) | 744,305 | 39,423,423 | |||||||||||||||||
| TIAA-CREF Equity Index | 314,832,411 | 75,790,979 | 18,612,516 | 2,034,522 | 6,518,832 | 404,023,770 | ||||||||||||||||||
| TIAA-CREF International Equity Index | 104,237,016 | 38,781,199 | 8,846,127 | (47,968 | ) | 4,359,111 | 130,860,435 | |||||||||||||||||
| $ | 499,296,913 | $ | 146,769,141 | $ | 36,163,936 | $ | 1,767,585 | $ | 12,862,170 | $ | 638,241,823 | |||||||||||||
| Lifecycle Index 2045 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Index | $ | 21,772,293 | $ | 11,097,336 | $ | 1,605,026 | $ | 5,757 | $ | 571,847 | $ | 31,383,152 | ||||||||||||
| TIAA-CREF Emerging Markets Equity Index | 13,204,916 | 7,682,392 | 1,150,222 | (69,300 | ) | 342,559 | 19,439,089 | |||||||||||||||||
| TIAA-CREF Equity Index | 137,258,372 | 51,760,247 | 5,974,507 | 876,587 | 3,001,657 | 197,702,671 | ||||||||||||||||||
| TIAA-CREF International Equity Index | 45,444,517 | 24,102,928 | 3,642,017 | (70,180 | ) | 2,007,217 | 64,523,003 | |||||||||||||||||
| $ | 217,680,098 | $ | 94,642,903 | $ | 12,371,772 | $ | 742,864 | $ | 5,923,280 | $ | 313,047,915 | |||||||||||||
| Lifecycle Index 2050 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Index | $ | 13,794,278 | $ | 7,704,394 | $ | 875,994 | $ | 6,743 | $ | 370,525 | $ | 20,697,309 | ||||||||||||
| TIAA-CREF Emerging Markets Equity Index | 8,366,123 | 5,240,487 | 608,423 | (34,546 | ) | 222,287 | 12,815,587 | |||||||||||||||||
| TIAA-CREF Equity Index | 86,962,911 | 37,981,664 | 3,619,514 | 585,394 | 1,945,887 | 130,839,226 | ||||||||||||||||||
| TIAA-CREF International Equity Index | 28,792,300 | 16,631,555 | 2,078,089 | (20,867 | ) | 1,301,262 | 42,538,415 | |||||||||||||||||
| $ | 137,915,612 | $ | 67,558,100 | $ | 7,182,020 | $ | 536,724 | $ | 3,839,961 | $ | 206,890,537 | |||||||||||||
| Lifecycle Index 2055 Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Index | $ | 2,929,927 | $ | 2,211,541 | $ | 215,911 | $ | 1,099 | $ | 83,887 | $ | 4,941,017 | ||||||||||||
| TIAA-CREF Emerging Markets Equity Index | 1,776,982 | 1,475,444 | 151,818 | (23,242 | ) | 51,019 | 3,059,841 | |||||||||||||||||
| TIAA-CREF Equity Index | 18,471,072 | 11,518,778 | 942,137 | 129,382 | 446,961 | 31,194,534 | ||||||||||||||||||
| TIAA-CREF International Equity Index | 6,115,529 | 4,726,677 | 533,262 | (14,112 | ) | 298,421 | 10,156,407 | |||||||||||||||||
| $ | 29,293,510 | $ | 19,932,440 | $ | 1,843,128 | $ | 93,127 | $ | 880,288 | $ | 49,351,799 | |||||||||||||
| Lifecycle Index 2060 Fund* | ||||||||||||||||||||||||
| TIAA-CREF Bond Index | $ | — | $ | 1,168,643 | $ | 104,453 | $ | 1,840 | $ | 14,923 | $ | 1,075,600 | ||||||||||||
| TIAA-CREF Emerging Markets Equity Index | — | 717,242 | 41,142 | (931 | ) | 13,093 | 658,474 | |||||||||||||||||
| TIAA-CREF Equity Index | — | 6,675,996 | 283,257 | 38,691 | 115,125 | 6,766,318 | ||||||||||||||||||
| TIAA-CREF International Equity Index | — | 2,299,888 | 125,471 | 1,272 | 76,678 | 2,188,453 | ||||||||||||||||||
| $ | — | $ | 10,861,769 | $ | 554,323 | $ | 40,872 | $ | 219,819 | $ | 10,688,845 | |||||||||||||
| * | The Fund commenced operations on September 26, 2014. |
| a | Includes realized gain distributions received. |
| 76 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
continued
Note 4—investments
Net unrealized appreciation (depreciation): At May 31, 2015, net unrealized appreciation (depreciation) based on the aggregate cost of portfolio investments for federal income tax purposes, consisting of gross unrealized appreciation and gross unrealized depreciation was as follows:
| Fund | Tax cost | Gross unrealized appreciation | Gross unrealized (depreciation | ) | Net unrealized appreciation (depreciation | ) | ||||||||||
| Lifecycle Index Retirement Income | $ 41,963,075 | $ | 5,091,413 | $ — | $ | 5,091,413 | ||||||||||
| Lifecycle Index 2010 | 160,199,060 | 27,095,855 | — | 27,095,855 | ||||||||||||
| Lifecycle Index 2015 | 288,330,798 | 52,914,415 | (89,597 | ) | 52,824,818 | |||||||||||
| Lifecycle Index 2020 | 472,352,761 | 83,959,486 | (264,937 | ) | 83,694,549 | |||||||||||
| Lifecycle Index 2025 | 463,428,968 | 92,326,308 | (167,969 | ) | 92,158,339 | |||||||||||
| Lifecycle Index 2030 | 476,909,511 | 106,746,235 | — | 106,746,235 | ||||||||||||
| Lifecycle Index 2035 | 438,011,067 | 112,168,694 | — | 112,168,694 | ||||||||||||
| Lifecycle Index 2040 | 492,633,453 | 145,608,370 | — | 145,608,370 | ||||||||||||
| Lifecycle Index 2045 | 256,255,946 | 56,791,969 | — | 56,791,969 | ||||||||||||
| Lifecycle Index 2050 | 169,982,683 | 36,907,854 | — | 36,907,854 | ||||||||||||
| Lifecycle Index 2055 | 42,618,939 | 6,741,945 | (9,085 | ) | 6,732,860 | |||||||||||
| Lifecycle Index 2060 | 10,312,312 | 393,227 | (16,694 | ) | 376,533 | |||||||||||
Purchases and sales: Purchases and sales of securities (other than short-term instruments) for all of the Funds for the year ended May 31, 2015 were as follows:
| Fund | Purchases | Sales | ||||||
| Lifecycle Index Retirement Income | $ | 25,265,814 | $ | 13,873,978 | ||||
| Lifecycle Index 2010 | 49,256,546 | 24,790,982 | ||||||
| Lifecycle Index 2015 | 85,980,599 | 37,539,559 | ||||||
| Lifecycle Index 2020 | 167,754,295 | 41,109,578 | ||||||
| Lifecycle Index 2025 | 148,381,649 | 28,439,111 | ||||||
| Lifecycle Index 2030 | 158,449,532 | 27,367,927 | ||||||
| Lifecycle Index 2035 | 133,600,570 | 26,209,365 | ||||||
| Lifecycle Index 2040 | 146,769,141 | 36,163,936 | ||||||
| Lifecycle Index 2045 | 94,642,903 | 12,371,772 | ||||||
| Lifecycle Index 2050 | 69,469,574 | 9,108,494 | ||||||
| Lifecycle Index 2055 | 21,560,263 | 3,477,914 | ||||||
| Lifecycle Index 2060 | 10,861,769 | 554,323 | ||||||
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 77 |
Notes to financial statements
Note 5—distributions to shareholders and other tax items
The tax character of distributions paid to shareholders during the year ended May 31, 2015 and the year ended May 31, 2014 was as follows:
| 5/31/2015 | 5/31/2014 | |||||||||||||||||||||||
| Ordinary | Long-term | Ordinary | Long-term | |||||||||||||||||||||
| Fund | income | capital gains | Total | income | capital gains | Total | ||||||||||||||||||
| Lifecycle Index Retirement Income | $ | 855,076 | $ | 26,142 | $ | 881,218 | $ | 645,051 | $ | 51,723 | $ | 696,774 | ||||||||||||
| Lifecycle Index 2010 | 3,607,902 | 298,202 | 3,906,104 | 3,145,645 | 271,978 | 3,417,623 | ||||||||||||||||||
| Lifecycle Index 2015 | 6,608,471 | 255,658 | 6,864,129 | 5,545,809 | 491,754 | 6,037,563 | ||||||||||||||||||
| Lifecycle Index 2020 | 9,891,760 | 397,006 | 10,288,766 | 7,378,425 | 693,905 | 8,072,330 | ||||||||||||||||||
| Lifecycle Index 2025 | 10,073,340 | 429,463 | 10,502,803 | 7,192,304 | 714,988 | 7,907,292 | ||||||||||||||||||
| Lifecycle Index 2030 | 10,548,745 | 478,526 | 11,027,271 | 7,803,877 | 793,248 | 8,597,125 | ||||||||||||||||||
| Lifecycle Index 2035 | 10,146,413 | 511,926 | 10,658,339 | 7,644,237 | 807,303 | 8,451,540 | ||||||||||||||||||
| Lifecycle Index 2040 | 12,266,835 | 646,862 | 12,913,697 | 9,540,107 | 1,036,095 | 10,576,202 | ||||||||||||||||||
| Lifecycle Index 2045 | 5,586,265 | 267,344 | 5,853,609 | 3,582,980 | 392,746 | 3,975,726 | ||||||||||||||||||
| Lifecycle Index 2050 | 3,665,686 | 170,889 | 3,836,575 | 2,290,474 | 239,676 | 2,530,150 | ||||||||||||||||||
| Lifecycle Index 2055 | 843,204 | 34,520 | 877,724 | 466,869 | 49,309 | 516,178 | ||||||||||||||||||
| Lifecycle Index 2060 | 210,425 | — | 210,425 | — | — | — | ||||||||||||||||||
As of May 31, 2015, the components of accumulated earnings on a tax basis were as follows:
| Undistributed | Undistributed | Unrealized | ||||||||||||||
| ordinary | long-term | appreciation | ||||||||||||||
| Fund | income | capital gains | (depreciation) | Total | ||||||||||||
| Lifecycle Index Retirement Income | $ | 91,810 | $ | 77,427 | $ | 5,091,410 | $ | 5,260,647 | ||||||||
| Lifecycle Index 2010 | 786,647 | 361,029 | 27,095,854 | 28,243,530 | ||||||||||||
| Lifecycle Index 2015 | 1,360,791 | 715,788 | 52,824,820 | 54,901,399 | ||||||||||||
| Lifecycle Index 2020 | 1,549,459 | 1,210,834 | 83,694,551 | 86,454,844 | ||||||||||||
| Lifecycle Index 2025 | 1,234,793 | 1,338,624 | 92,158,344 | 94,731,761 | ||||||||||||
| Lifecycle Index 2030 | 1,000,857 | 1,540,301 | 106,746,233 | 109,287,391 | ||||||||||||
| Lifecycle Index 2035 | 584,425 | 1,581,346 | 112,168,693 | 114,334,464 | ||||||||||||
| Lifecycle Index 2040 | 390,641 | 2,018,176 | 145,608,369 | 148,017,186 | ||||||||||||
| Lifecycle Index 2045 | 115,286 | 929,726 | 56,791,968 | 57,836,980 | ||||||||||||
| Lifecycle Index 2050 | 89,692 | 601,575 | 36,907,851 | 37,599,118 | ||||||||||||
| Lifecycle Index 2055 | 25,170 | 137,974 | 6,732,859 | 6,896,003 | ||||||||||||
| Lifecycle Index 2060 | 8,992 | 35,659 | 376,533 | 421,184 | ||||||||||||
The difference between book basis and tax basis net investment income, net realized gains and losses, and unrealized appreciation and depreciation is attributable primarily to the tax deferral of losses on wash sales, and the treatment of short-term gain as ordinary income for tax purposes.
| 78 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
concluded
Note 6—line of credit
Each of the Funds participates in a $1.5 billion unsecured revolving credit facility that can be used for temporary purposes, including, without limitation, the funding of shareholder redemptions. This facility expired June 2015. A new facility was entered into on June 23, 2015 expiring June 21, 2016. Certain affiliated accounts and mutual funds, each of which is managed by Advisors, or an affiliate of Advisors, also participate in this facility. An annual commitment fee for the credit facility is borne by the participating accounts and mutual funds on a pro rata basis. Interest associated with any borrowing under the facility is charged to the borrowing accounts or mutual funds at a specified rate of interest. The Funds are not liable for borrowings under the facility by other affiliated accounts or mutual funds. For the year ended May 31, 2015, there were no borrowings under this credit facility by the Funds.
Note 7—indemnification
In the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and that provide general indemnities. A Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund that have not yet occurred. Also, under the Funds’ organizational documents, the trustees and officers of the Funds are indemnified against certain liabilities that may arise out of their duties to the Funds. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be unlikely.
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 79 |
Report of independent registered public accounting firm
To the Board of Trustees and Shareholders of the
TIAA-CREF Funds:
In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Lifecycle Index Retirement Income Fund, Lifecycle Index 2010 Fund, Lifecycle Index 2015 Fund, Lifecycle Index 2020 Fund, Lifecycle Index 2025 Fund, Lifecycle Index 2030 Fund, Lifecycle Index 2035 Fund, Lifecycle Index 2040 Fund, Lifecycle Index 2045 Fund, Lifecycle Index 2050 Fund, Lifecycle Index 2055 Fund, and Lifecycle Index 2060 Fund (twelve of the portfolios constituting the TIAA-CREF Funds, hereafter collectively referred to as the “Funds”) at May 31, 2015, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at May 31, 2015 by correspondence with the transfer agent, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Baltimore, Maryland
July 17, 2015
| 80 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Trustees and officers (unaudited)
TIAA-CREF Funds ■ May 31, 2015
Trustees
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | Number of portfolios in fund complex overseen by Trustee |
Other directorship(s) held by trustee | |||||
| Forrest
Berkley c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1954 |
Trustee | Indefinite term. Trustee since 2006. | Retired Partner (since 2006), Partner (1990–2005) and Head of Global Product Management (2003–2005), GMO (formerly, Grantham, Mayo, Van Otterloo & Co.) (investment management); and member of asset allocation portfolio management team, GMO (2003–2005). | 82 | Director, the Maine Coast Heritage Trust; Investment Committee member, Maine Community Foundation and the Elmina B. Sewall Foundation; and Trustee of the Maine Chapter of the Nature Conservancy. | |||||
| Nancy A. Eckl c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Trustee | Indefinite term. Trustee since 2007. | Vice President (1990–2006), American Beacon Advisors, Inc., and Vice President of certain funds advised by American Beacon Advisors, Inc. | 82 | Independent Director, The Lazard Funds, Inc., Lazard Retirement Series, Inc., Lazard Global Total Return and Income Fund, Inc. and Lazard World Dividend & Income Fund, Inc.; and Independent Trustee, Lazard Alternative Emerging Markets 1099 Fund. | |||||
| Michael A. Forrester c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1967 |
Trustee | Indefinite term. Trustee since 2007. | Chief Executive Officer (since 2014) and Chief Operating Officer (2007–2014), Copper Rock Capital Partners, LLC; Chief Operating Officer, DDJ Capital Management (2003–2006). | 82 | Director of Copper Rock Capital Partners, LLC (investment adviser). |
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 81 |
| Trustees and officers (unaudited) | continued |
TIAA-CREF Funds ■ May 31, 2015
Trustees — continued
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | Number of portfolios in fund complex overseen by Trustee |
Other directorship(s) held by trustee | |||||
| Howell E. Jackson c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1954 |
Chairman of the Board and Trustee | Indefinite term. Trustee since 2005; Chairman for term ending December 31, 2015. Chairman since 2013. | James S. Reid, Jr. Professor of Law (since 2004), Senior Advisor to the President and Provost (2010–2012), Acting Dean (2009), Vice Dean for Budget (2003–2006) and on the faculty (since 1989) of Harvard Law School. | 82 | Director, D2D Fund. | |||||
| Nancy L. Jacob c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1943 |
Trustee | Indefinite term. Trustee since 1999. | Principal, NL Jacob Consultant (economic and business consultant) (since 2012); President and Founder (2006–2012) of NLJ Advisors, Inc. (investment adviser); President and Managing Principal, Windermere Investment Associates (1997–2006). | 82 | None | |||||
| Thomas J. Kenny c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1963 |
Trustee | Indefinite term. Trustee since 2011. | Partner (2004–2010) and Managing Director (1999–2004), Goldman Sachs Asset Management. | 82 | Director, Aflac Insurance. Inc., Sansum Clinic and cielo24; Investment committee member, Cottage Health System; Member, University of California at Santa Barbara Arts and Lectures Advisory Council; Trustee and Chairman, Crane Country Day School. |
| 82 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
| Bridget A. Macaskill c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1948 |
Trustee | Indefinite term. Trustee since 2003. | Chief Executive Officer (since 2010), President (since 2009) and Chief Operating Officer (2009–2010), First Eagle Investment Management, LLC; Principal, BAM Consulting LLC (2003–2009); Independent Consultant for Merrill Lynch (2003–2009). | 82 | Director, Arnhold and S. Bleichroeder Holdings; First Eagle Investment Management, LLC; Jupiter Fund Management plc; American Legacy Foundation (Investment Committee); University of Edinburgh (Campaign Board); the North Shore Land Alliance, Prep for Prep; and Close Brothers Group plc. | |||||
| James M. Poterba c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1958 |
Trustee | Indefinite term. Trustee since 2006. | President and Chief Executive Officer, National Bureau of Economic Research (“NBER”) (since 2008); Affiliated Faculty Member of the Finance Group at the Alfred P. Sloan School of Management, Massachusetts Institute of Technology (“MIT”) (since 2014); Mitsui Professor of Economics, MIT (since 1996); Head (2006–2008) and Associate Head (1994–2000 and 2001–2006), Economics Department of MIT; and Program Director, NBER (1990–2008). | 82 | Director, The Alfred P. Sloan Foundation and National Bureau of Economic Research; Member, Congressional Budget Office Panel of Economic Advisers. | |||||
| Maceo K. Sloan c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1949 |
Trustee | Indefinite term. Trustee since 1999. | Chairman, President and Chief Executive Officer, Sloan Financial Group, Inc. (since 1991); Chairman and Chief Executive Officer (since 1991) and Chief Investment Officer (1991–2013), NCM Capital Management Group, Inc.; Chairman and Chief Executive Officer (since 2003) and Chief Investment Officer (2003–2013), NCM Capital Advisers Inc.; and Chairman, President and Principal Executive Officer, NCM Capital Investment Trust (2007–2012). | 82 | Director, SCANA Corporation (energy holding company). |
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 83 |
| Trustees and officers (unaudited) | continued |
TIAA-CREF Funds ■ May 31, 2015
Trustees — concluded
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | Number of portfolios in fund complex overseen by Trustee |
Other directorship(s) held by trustee | |||||
| Laura T. Starks c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1950 |
Trustee | Indefinite term. Trustee since 2006. | Associate Dean for Research (since 2011), McCombs School of Business, University of Texas at Austin (“McCombs”), and Director, AIM Investment Center at McCombs (since 2000). Charles E. and Sarah M. Seay Regents Chair in Finance (since 2002) and Professor, University of Texas at Austin (since 1987). Chairman, Department of Finance, University of Texas at Austin (2002–2011). | 82 | Member of the Board of Governors of the Investment Company Institute, the Governing Council of Independent Directors Council (an association for mutual fund directors); and Investment Advisory Committee, Employees Retirement System of Texas. |
Officers
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | |||
| Richard S. Biegen TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Chief Compliance Officer | One-year term. Vice President and Chief Compliance Officer since 2008. | Managing Director, Senior Compliance officer of Teachers Insurance and Annuity Association of America (“TIAA”). Chief Compliance Officer of the College Retirement Equities Fund (“CREF”), TIAA Separate Account VA-1, TIAA-CREF Funds, and TIAA-CREF Life Funds (collectively, the “TIAA-CREF Fund Complex”). |
| 84 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
| Carol W. Deckbar TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Executive Vice President | One-year term. Executive Vice President since 2013. | Executive Vice President, Chief Executive Officer of TIAA-CREF Asset Management LLC (“TCAM”) and Executive Vice President of the TIAA-CREF Fund Complex. | |||
| Phillip G. Goff TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1963 |
Principal Financial Officer, Principal Accounting Officer and Treasurer | One-year term. Principal Financial Officer, Principal Accounting Officer and Treasurer since 2007. | Senior Vice President, Corporate Controller of TIAA. Treasurer of CREF; Principal Financial Officer, Principal Accounting Officer and Treasurer of the TIAA-CREF Funds and TIAA-CREF Life Funds. | |||
| Stephen Gruppo TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1959 |
Executive Vice President | One-year term. Executive Vice President since 2009. | Executive Vice President, Chief Risk Officer of TIAA. Executive Vice President of the TIAA-CREF Fund Complex. | |||
| Robert G. Leary TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1961 |
President and Principal Executive Officer | One-year term. President and Principal Executive Officer since 2013. | Executive Vice President and President of Asset Management of TIAA. Principal Executive Officer and Executive Vice President of CREF and VA-1. Principal Executive Officer and President of TIAA-CREF Funds and TIAA-CREF Life Funds. Prior to joining TIAA, Mr. Leary served as a Representative, Securities Research, Inc., President and Chief Operating Officer, U.S., ING Americas, Chief Executive Officer, ING Insurance US, and Chairman and Chief Executive Officer, ING Investment Management, Americas. | |||
| Ronald R. Pressman TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1958 |
Executive Vice President | One-year term. Executive Vice President since 2012. | Executive Vice President and Chief Operating Officer of TIAA, and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Mr. Pressman served as President and Chief Executive Officer of General Electric Capital Real Estate. |
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 85 |
| Trustees and officers (unaudited) | concluded |
TIAA-CREF Funds ■ May 31, 2015
Officers — concluded
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | |||
| Phillip T. Rollock TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Senior Managing Director and Corporate Secretary | One-year term. Senior Managing Director since 2013 and Corporate Secretary since 2012. | Senior Managing Director, Corporate Secretary of TIAA and the TIAA-CREF Fund Complex. | |||
| Otha T. Spriggs, III TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1951 |
Executive Vice President | One-year term. Executive Vice President since 2012. | Executive Vice President and Chief Human Resources Officer of TIAA and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Mr. Spriggs served as Senior Vice President of Human Resources, Boston Scientific; President of Integrated People Solutions; Senior Vice President, Human Resources and various human resources leadership roles, CIGNA Corp. | |||
| Edward D. Van Dolsen TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1958 |
Executive Vice President | One-year term. Executive Vice President, since 2006. | Executive Vice President, President of Retirement and Individual Financial Services of TIAA, and Executive Vice President of the TIAA-CREF Fund Complex. | |||
| Constance K. Weaver TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1952 |
Executive Vice President | One-year term. Executive Vice President since 2010. | Executive Vice President, Chief Marketing Officer of TIAA and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Ms. Weaver served as Senior Vice President, The Hartford Financial Services Group, Inc. | |||
| Please note that the Funds’ Statement of Additional Information (SAI) includes information about the Funds’ trustees and is available, without charge, through our website, tiaa-cref.org, or by calling 800 223–1200. | ||||||
| 86 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Renewal
of investment
management agreement (unaudited)
Board renewal of the investment management agreement for the TIAA-CREF Lifecycle Index Funds
Among its other duties, the Board of Trustees (the “Board” or the “Trustees”) of the TIAA-CREF Funds (the “Trust”) is responsible for determining whether to initially approve and subsequently annually renew the investment management agreement (the “Agreement”) between Teachers Advisors, Inc. (“TAI”) and the Trust on behalf of each TIAA-CREF Lifecycle Index Funds’ series (the “Funds”). Under the Agreement, TAI is responsible for providing investment advisory services and overseeing the everyday operations and other service providers of the Funds.
Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”) requires that, after an initial period of up to two years, the Agreement for each Fund will remain in effect only if the Board, including a majority of those Trustees who have no direct or indirect interest in the Agreement, and who are not “interested persons” of the Trust, as that term is defined in the 1940 Act, annually renews that Agreement. All of the Trustees are deemed to be independent persons for this purpose.
Overview of the renewal process
The Board held meetings on March 12, 2015 and March 26, 2015, at which it considered the annual renewal of the Agreement with respect to each Lifecycle Index Fund other than the Lifecycle Index 2060 Fund using its previously-established process. (The Board did not consider the renewal of the Agreement for the Lifecycle Index 2060 Fund at these meetings because the Fund’s Agreement was initially approved in mid-2014 with a two-year term. Accordingly, in the discussion below, the references to “Funds” do not include the Lifecycle Index 2060 Fund.) As part of this process, the Board delegated certain tasks to its Operations Committee. Among these tasks, the Operations Committee worked with TAI, other Board members and legal counsel to the Trustees to develop guidelines and specific requests relating to the types of information to be provided to the Board in connection with the proposed contract renewals. The Operations Committee also worked with TAI to schedule and report on various follow-up items throughout the prior year that were requested by the Committee and the Board during the 2014 renewal process. During a series of meetings held prior to the March 12 and March 26, 2015 Board meetings, the Operations Committee, along with other Committees, as applicable, reviewed such guidelines and follow-up requests in consultation with TAI representatives and input from other Trustees, legal counsel to the Trustees and legal counsel to TAI and the Trust, and then evaluated the information produced in accordance with those guidelines and requests.
Among other matters, the Operations Committee, following its consultations with others as noted above, confirmed or established various guidelines regarding the preparation of reports to be provided to the Board with respect to each Fund by the Board Reporting and Compliance unit of Lipper, Inc. (“Lipper”). Lipper is an independent provider of investment company data that is widely recognized as a leading source of independent data used by independent directors and trustees of investment companies during their advisory contract review processes.
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 87 |
Renewal of investment
management agreement (unaudited)
Based on guidelines provided by the Operations Committee on behalf of the Board, Lipper produced, among other information, performance and expense comparison data regarding each Fund, including data relating to each Fund’s management fee rates, total expense ratios and short-term and long-term investment performance. Lipper also compared much of this data for each Fund against a universe of investment companies and against a more selective peer group of mutual funds with similar investment objectives and strategies, each of which was selected by Lipper, and, in the case of the investment performance data, against one or more appropriate broad-based benchmark indices. In each case, Lipper summarized the methodologies it employed to provide the data contained in its reports. In addition, Lipper represented to the Board that its reports were designed specifically to provide the Board with the fee, expense and performance information that is necessary to help the Board satisfy its duties under Section 15(c) of the 1940 Act. Lipper also represented that the purpose of its materials is to provide an unbiased view of each Fund’s relative position regarding the level of fees, expenses and total return performance against a competitive peer group and universe (as applicable) identified by Lipper (and not TAI).
Among other matters, the Board also requested and reviewed various information provided by TAI to facilitate the Trustees’ evaluation of the reasonableness of any profits earned by TAI with respect to its services to each Fund pursuant to the Agreement. In this regard, the Board recognized that different Trustees could, and likely would, give different weight to different factors when evaluating the profits, if any, realized or anticipated to be realized by TAI, which is also true of their assessment of each Fund’s management fee rate and other aspects of the proposed renewal of the Agreement.
In advance of the Board meetings held on March 12 and March 26, 2015, legal counsel for the Trustees requested on behalf of the Board, and TAI provided, information that was designed to assist the Board in its consideration of whether to renew the Agreement for each Fund. In addition to the data provided by Lipper as described above, this information included, but was not limited to, the following: (1) further information relating to each Fund’s investment performance, including performance ratings provided by Morningstar, Inc. (“Morningstar”), which is a widely recognized mutual fund ranking service, and a narrative analysis of the performance of each Fund that had underperformed certain Board-specified criteria, together with an explanation of any events that had a material impact on the Fund’s performance during that period; (2) a description of any fee waiver or expense reimbursement arrangements that were proposed or were in place during the prior year and the extent to which such arrangements would be continued or modified in the coming year; (3) a comparison of each Fund’s fee rate under the Agreement to the fee rates of any other comparable accounts managed by TAI or its affiliates; (4) any “fall-out” benefits that accrued or were identified as reasonably likely to accrue to TAI or its affiliates due to their relationship with the Funds aside from TAI’s direct fee payments pursuant to the Agreement; (5) information regarding TAI’s financial resources, senior professional personnel, overall staffing levels, portfolio manager compensation arrangements,
| 88 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
continued
insurance coverage, portfolio trading and best execution practices, and any actual and potential conflicts of interest identified by TAI in connection with rendering services to the Funds; (6) information as to any profits earned by TAI in connection with its services pursuant to the Agreement; (7) a copy of the Agreement and certain related agreements between the Funds and affiliates of TAI; (8) a copy of TAI’s Form ADV registration statement as filed with the Securities and Exchange Commission (which was presented only to legal counsel for the Trustees); and (9) proposed narrative explanations of reasons why the Board should renew the Agreement.
In considering whether to renew the Agreement with respect to each Fund, the Board reviewed various factors with respect to the Fund, including: (1) the nature, extent and quality of services provided or to be provided by TAI to the Fund; (2) the Fund’s investment performance; (3) the costs of the services provided to the Fund and the profits realized or potential profits to be realized (if any) by TAI and its affiliates from their relationship with the Fund; (4) fees charged by other advisers; (5) the extent to which economies of scale have been realized or are anticipated to be realized as the Fund grows; (6) whether the fee schedule set forth in the Agreement reflects any such economies of scale for the benefit of Fund investors; (7) comparisons of services and fee rates with any contracts entered into by TAI with other clients to whom TAI provides comparable services; and (8) any other benefits derived or anticipated to be derived by TAI or its affiliates from their relationship with the Fund. As a general matter, the Board viewed these factors in their totality, with no single factor being the principal factor in determining whether to renew the Agreement.
In reaching its decisions regarding the renewal of the Agreement for each Fund, the Board took into account the information described above, other information provided to the Board in connection with this process, and relevant information provided to the Board and to its Committees on an ongoing basis in connection with the Board’s general oversight duties with respect to the Funds. In addition, the Board received and considered information from its legal counsel as to certain relevant guidelines that relate to the renewal process under Section 15(c) of the 1940 Act and certain other legal authorities.
While the Board considered the Agreement with respect to all Funds, the Board received and considered Fund-specific information and made its renewal determinations on a Fund-by-Fund basis. In deciding whether to renew the Agreement for each Fund, each Trustee may have accorded different weight to different factors and, thus, each Trustee may have had a different basis for his or her ultimate decision to vote to renew the Agreement for each Fund. At its meeting on March 26, 2015, the Board voted unanimously to renew the Agreement for each Fund. Set forth below are certain general factors the Board considered for all of the Funds, followed by a summary of certain specific factors the Board considered for each particular Fund.
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 89 |
Renewal of investment
management agreement
(unaudited)
The nature, extent and quality of services
The Board considered that TAI is an experienced investment adviser that has managed the Funds since their operations commenced. Investment professionals at TAI and its affiliates also manage various accounts of the College Retirement Equities Fund (“CREF”), the TIAA-CREF Life Funds (the “Life Funds”), the TIAA Separate Account VA-1 and other series of the Trust. Under the Agreement, TAI is responsible for, among other duties: managing the assets of the Funds (which are funds of funds that invest their assets in the securities of other investment companies managed by TAI, referred to as “underlying funds”), including selecting underlying funds and allocating the Funds’ assets among the underlying funds, conducting research, recommending investments and placing orders to buy and sell securities for the Funds’ investment portfolios; active daily monitoring of the investment portfolios by various personnel with specific responsibility for the particular types of investments in question; reporting on the investment performance of the Funds to the Board on a regular basis; and carrying out, or overseeing the provision of, various administrative services to the Funds. The Board considered that TAI has carried out these responsibilities in a competent and professional manner.
The Board also considered, among other factors, the performance of each of the Funds, as discussed below. In addition, the Board considered the nature and quality of non-portfolio management services provided by TAI and its affiliates. In this regard, the Board considered its ongoing review of the performance of certain affiliated and unaffiliated service providers, including the quality of services provided by those firms and TAI’s oversight of those service providers and the outsourcing of certain services to other firms.
Investment performance
The Board considered the investment performance of each Fund, over the periods indicated in the Fund-by-Fund synopsis below. The Board considered each Fund’s performance as compared to its peer group and peer universe (as applicable) and its benchmark index. The Board also reviewed the performance of each Fund before any reductions for fees or expenses. This analysis considered the impact of net asset value rounding and excluded the effects of fair valuation, foreign exchange rates, effective tax rates, securities lending and class action litigation on each Fund’s performance as compared to the performance of its benchmark index. For details regarding each Fund’s performance, see the Fund-by-Fund synopsis below. The Board considered that, in those cases in which a Fund had underperformed its benchmark, peer group or peer universe of mutual funds for an extended period of time, TAI had represented that it had taken or was planning to implement affirmative actions reasonably designed to enhance the Fund’s investment performance, or TAI had explained to the Board’s satisfaction that no such actions were necessary. Thus, the Board concluded that, under the totality of circumstances considered, the investment performance of each Fund was within an acceptable range or that appropriate actions, if any, had been or were being implemented.
| 90 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
continued
Cost and profitability
The Board considered financial and profitability data relating to TAI for the calendar year 2014. The Board considered TAI’s profit calculations with respect to its services to each Fund both before and after taking into account the costs incurred directly or indirectly by TAI in connection with the distribution of shares of the Fund. The Board acknowledged the reasonableness of having management fee rates which permit TAI to maintain and improve the quality of services provided to the Funds. The Board also noted TAI’s voluntary waiver of a portion of some of the Funds’ management fees during 2014. The Board also acknowledged reimbursements of expenses above specified amounts undertaken by TAI with respect to the underlying funds in which the Funds invest that, in turn, reduce the Funds’ expenses. The Board considered that TAI had incurred a net loss with respect to each of the Funds under the Agreement for the one-year period ended December 31, 2014, and expected this trend to continue. The Board also considered that TAI may have indirect earnings or losses with respect to the Funds based on the Funds’ investment in underlying funds also managed by TAI.
During its review of TAI’s profits, the Board noted its ongoing efforts to examine the level of personnel and other resources available to TAI for its portfolio management and other functions, especially any effect of the purchase of Nuveen Investments by TAI’s parent on such resources, so as to assess whether sufficient resources are being devoted to these functions.
Fees charged by other advisers
The Board considered information regarding fees paid to other advisers for managing similar funds, as analyzed by Lipper. The Board determined that the management fee rates charged to a Fund under the Agreement typically were lower than the management fee rates charged to many or most other comparable mutual funds. In this connection, the Board also considered the inherent limitations of such comparisons in light of uncertainty as to how the fees of such similar mutual funds are set and potentially material differences between a Fund and its comparable mutual funds. Additionally, the Board also considered the potential limitations of such comparisons due to, among other factors, the fact that, in many instances, Lipper based its comparisons on financial data relating to fiscal periods that differed from the period for which the Fund’s data were derived. Based on all factors considered, the Board concluded that the management fee rates under the Agreement with respect to each Fund were within an acceptable range in relation to those charged by appropriate groups of comparable mutual funds.
Economies of scale
The Board considered whether TAI has experienced or is anticipated to experience economies of scale in connection with the operation of each Fund. The Board also considered that because TAI operated each Fund at a net loss, there was little opportunity to pass economies of scale on to Fund shareholders. Based on all factors
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 91 |
Renewal of investment
management agreement
(unaudited)
considered, the Board concluded that the Funds’ fee schedules were within an acceptable range in light of current economies of scale considerations and current asset levels.
Fee comparison with other TAI clients
The Board considered that TAI and its affiliates provide similar investment management services to other investment companies. The Board noted that TAI provides funds of funds management services to the TIAA-CREF Lifestyle Funds and the TIAA-CREF Life Balanced Fund, with annual management fee rates of 0.10% of average daily net assets, the TIAA-CREF Lifecycle Funds, which also have an annual management fee rate of 0.10% that is entirely waived by TAI, and the TIAA-CREF Managed Allocation Fund, for which TAI receives no management fee. TAI also manages other asset allocation products, such as education savings plans (529 plans).
Other benefits
The Board also considered additional benefits to TAI and its affiliates arising from the Agreement. For example, TAI and its affiliates may benefit from the advisory relationship with the Funds to the extent that this relationship results in potential investors viewing the TIAA-CREF group of companies as a leading retirement plan provider in the academic and nonprofit markets and as a single source for all their financial service needs. Both TAI and certain Funds managed by TAI or its affiliates may benefit from economies of scale to the extent that these Funds are managed in the same manner and by the same personnel as certain of the CREF Accounts, the Life Funds and other series of the Trust. TAI and the Funds may also benefit from TAI’s ability to acquire investment research related to its commission (i.e., soft dollar) arrangements. Additionally, the Funds may be utilized as investment options for other products and businesses of TAI and its affiliates, such as variable products.
Fund-by-fund factors
The Board considered the following specific factors (among others) in connection with its determination to renew the Agreement with respect to each Fund. If a Fund is described in the following discussions as being in the “1st” quintile, it is in the best of five groups (that is, the group has the best performance or the lowest expenses, as the case may be). References below to quintiles are based on data provided to the Board in the reports prepared by Lipper. The specific management fee, expense and performance factors outlined below are based on the Institutional Class shares of each Fund. Because the Institutional Class generally has lower non-management expenses than the Retirement, Premier and Retail Classes of these Funds, the expenses and performance of these other Classes will differ from the expenses and performance shown for the Institutional Class. All time periods referenced below are ended December 31, 2014. Under the Morningstar rating system, 5 stars is the highest (best) rating category and 1 star is the lowest (worst) rating category. Statements below regarding “net profit” or “net loss” refer to whether TAI earned a profit or incurred a loss for the services that it rendered to a Fund during 2014 under the Agreement.
| 92 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
continued
Lifecycle Index Retirement Income Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive 0.06% of this fee through at least September 30, 2015. |
| • | The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee ranked 1 out of 5, 1 out of 3 and 2 out of 3 within the group of comparable funds selected by Lipper for expense comparison purposes (“Expense Group”), respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of the universe of comparable funds selected by Lipper for expense comparison purposes (“Expense Universe”), respectively. |
| • | The Fund ranked 1 out of 5, 1 out of 5 and 1 out of 4 funds within the group of comparable funds selected by Lipper for performance comparison purposes (“Performance Group”) for the one-, three- and five-year periods, respectively. The Fund was in the 1st quintile of the universe of comparable funds selected by Lipper for performance comparison purposes (“Performance Universe”) for each of the one-, three- and five-year periods. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle Index 2010 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive 0.06% of this fee through at least September 30, 2015. |
| • | The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee ranked 1 out of 4, 1 out of 2 and 1 out of 2 within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were each in the 1st quintile of its Expense Universe. |
| • | The Fund ranked 1 out of 4 funds within its Performance Group for each of the one-, three- and five-year periods, respectively. The Fund was in the 1st quintile of its Performance Universe for each of the one-, three- and five-year periods. |
| • | The Fund received an Overall Morningstar Rating of 5 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle Index 2015 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive 0.05% of this fee through at least September 30, 2015. |
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 93 |
Renewal of investment
management agreement
(unaudited)
| • | The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee ranked 1 out of 5, 1 out of 3 and 1 out of 3 within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were each in the 1st quintile of its Expense Universe. |
| • | The Fund ranked 3 out of 5, 3 out of 5 and 2 out of 5 funds within its Performance Group for the one-, three- and five-year periods, respectively. The Fund was in the 1st, 2nd and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 5 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle Index 2020 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive 0.04% of this fee through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 4 and 2 out of 4 funds within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 2nd and 1st quintiles of its Performance Group for the one-and three-year periods, respectively. The Fund ranked 2 out of 4 funds within its Performance Group for the five-year period. The Fund was in the 1st, 2nd and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle Index 2025 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive 0.03% of this fee through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to both the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 2 out of 4 funds within its Expense Group. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 2nd and 2nd quintiles of its Expense Universe, respectively. |
| 94 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
continued
| • | The Fund was in the 2nd and 1st quintiles of its Performance Group for the one- and three-year periods, respectively. The Fund ranked 2 out of 5 funds within its Performance Group for the five-year period. The Fund was in the 1st, 2nd and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle Index 2030 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive 0.03% of this fee through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to both the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 2 out of 4 funds within its Expense Group. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 2nd and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 2nd and 1st quintiles of its Performance Group for the one- and three-year periods, respectively. The Fund ranked 2 out of 4 funds within its Performance Group for the five-year period. The Fund was in the 1st quintile of its Performance Universe for each of the one-, three- and five-year periods. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle Index 2035 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive 0.02% of this fee through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to both the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 2 out of 4 funds within its Expense Group. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 2nd and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 2nd and 1st quintiles of its Performance Group for the one-and three-year periods, respectively. The Fund ranked 1 out of 5 funds within its Performance Group for the five-year period. The Fund was in the 1st quintile of its Performance Universe for each of the one-, three- and five-year periods. |
| • | The Fund received an Overall Morningstar Rating of 5 stars. |
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 95 |
Renewal of investment
management agreement
(unaudited)
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle Index 2040 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive 0.02% of this fee through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to both the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 2 out of 4 funds within its Expense Group. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 2nd and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 3rd and 1st quintiles of its Performance Group for the one-and three-year periods, respectively. The Fund ranked 1 out of 4 funds within its Performance Group for the five-year period. The Fund was in the 1st quintile of its Performance Universe for each of the one-, three- and five-year periods. |
| • | The Fund received an Overall Morningstar Rating of 5 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle Index 2045 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive 0.02% of this fee through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 4 and 2 out of 4 funds within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 2nd and 1st quintiles of its Performance Group for the one-and three-year periods, respectively. The Fund ranked 1 out of 5 funds within its Performance Group for the five-year period. The Fund was in the 1st quintile of its Performance Universe for each of the one-, three- and five-year periods. |
| • | The Fund received an Overall Morningstar Rating of 5 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
| 96 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
concluded
Lifecycle Index 2050 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive 0.02% of this fee through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 4 and 2 out of 4 funds within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 3rd and 1st quintiles of its Performance Group for the one-and three-year periods, respectively. The Fund ranked 1 out of 4 funds within its Performance Group for the five-year period. The Fund was in the 2nd, 1st and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 5 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifecycle Index 2055 Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. TAI has agreed to continue to waive 0.02% of this fee through at least September 30, 2015. |
| • | The Fund’s total expenses were in the 1st quintile of its Expense Group. With respect to the Fund’s actual management fee (including the waiver) and contractual management fee, the Fund ranked 1 out of 4 and 2 out of 4 funds within its Expense Group, respectively. The Fund’s total expenses, actual management fee (including the waiver) and contractual management fee were in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively. |
| • | The Fund was in the 2nd and 1st quintiles of its Performance Group and its Performance Universe for the one- and three-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 5 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Based primarily on the foregoing factors and considerations, the Board renewed the Agreement for each Fund.
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 97 |
Important tax information (unaudited)
TIAA-CREF Lifecycle Index Funds
For the year ended May 31, 2015, the Lifecycle Index Funds designate the following distribution amounts (or the maximum amount allowable) as being from net long-term capital gains:
| Long-term | ||||
| Fund | capital gains | |||
| Lifecycle Index Retirement Income | $ | 26,142 | ||
| Lifecycle Index 2010 | 298,202 | |||
| Lifecycle Index 2015 | 255,658 | |||
| Lifecycle Index 2020 | 397,006 | |||
| Lifecycle Index 2025 | 429,463 | |||
| Lifecycle Index 2030 | 478,526 | |||
| Lifecycle Index 2035 | 511,926 | |||
| Lifecycle Index 2040 | 646,862 | |||
| Lifecycle Index 2045 | 267,344 | |||
| Lifecycle Index 2050 | 170,889 | |||
| Lifecycle Index 2055 | 34,520 | |||
| Lifecycle Index 2060 | — | |||
For the year ended May 31, 2015, the Lifecycle Index Funds designate the following percentages (or the maximum amount allowable) of ordinary income dividends paid as qualified dividends:
| Fund | Percentage | |||
| Lifecycle Index Retirement Income | 28.75 | % | ||
| Lifecycle Index 2010 | 32.55 | % | ||
| Lifecycle Index 2015 | 36.58 | % | ||
| Lifecycle Index 2020 | 44.04 | % | ||
| Lifecycle Index 2025 | 49.77 | % | ||
| Lifecycle Index 2030 | 55.36 | % | ||
| Lifecycle Index 2035 | 60.78 | % | ||
| Lifecycle Index 2040 | 65.06 | % | ||
| Lifecycle Index 2045 | 66.30 | % | ||
| Lifecycle Index 2050 | 66.05 | % | ||
| Lifecycle Index 2055 | 65.40 | % | ||
| Lifecycle Index 2060 | 65.39 | % | ||
| 98 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
For the year ended May 31, 2015, the Lifecycle Index Funds designate the following percentages (or maximum amount allowable) of ordinary income dividends paid as qualifying for the corporate dividends received deduction:
| Fund | Percentage | ||
| Lifecycle Index Retirement Income | 17.89% | ||
| Lifecycle Index 2010 | 20.34% | ||
| Lifecycle Index 2015 | 22.85% | ||
| Lifecycle Index 2020 | 27.43% | ||
| Lifecycle Index 2025 | 30.92% | ||
| Lifecycle Index 2030 | 34.32% | ||
| Lifecycle Index 2035 | 37.58% | ||
| Lifecycle Index 2040 | 40.17% | ||
| Lifecycle Index 2045 | 40.94% | ||
| Lifecycle Index 2050 | 40.83% | ||
| Lifecycle Index 2055 | 40.44% | ||
| Lifecycle Index 2060 | 40.47% |
For the year ended May 31, 2015, the Lifecycle Index Funds received the following amounts of income from their respective underlying funds that was from foreign sources:
| Foreign source | Foreign source | |||||||
| Fund | income | income per share | ||||||
| Lifecycle Index Retirement Income Fund | $ 99,045 | $ 0.03345 | ||||||
| Lifecycle Index 2010 Fund | 503,007 | 0.04033 | ||||||
| Lifecycle Index 2015 Fund | 1,024,279 | 0.04647 | ||||||
| Lifecycle Index 2020 Fund | 1,830,575 | 0.05565 | ||||||
| Lifecycle Index 2025 Fund | 2,083,482 | 0.06559 | ||||||
| Lifecycle Index 2030 Fund | 2,448,128 | 0.07577 | ||||||
| Lifecycle Index 2035 Fund | 2,562,366 | 0.08654 | ||||||
| Lifecycle Index 2040 Fund | 3,303,523 | 0.09555 | ||||||
| Lifecycle Index 2045 Fund | 1,521,003 | 0.09513 | ||||||
| Lifecycle Index 2050 Fund | 986,244 | 0.09476 | ||||||
| Lifecycle Index 2055 Fund | 226,215 | 0.07549 | ||||||
| Lifecycle Index 2060 Fund | 58,110 | 0.05811 | ||||||
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 99 |
| Important tax information (unaudited) | concluded |
TIAA-CREF Lifecycle Index Funds
For the year ended May 31, 2015, the Lifecycle Index Funds have elected to pass through the following amounts of foreign taxes paid by their respective underlying funds:
| Foreign taxes | Foreign taxes | |||||||
| Fund | paid | paid per share | ||||||
| Lifecycle Index Retirement Income Fund | $ 6,516 | $ 0.00220 | ||||||
| Lifecycle Index 2010 Fund | 33,091 | 0.00265 | ||||||
| Lifecycle Index 2015 Fund | 67,359 | 0.00306 | ||||||
| Lifecycle Index 2020 Fund | 120,463 | 0.00366 | ||||||
| Lifecycle Index 2025 Fund | 137,023 | 0.00431 | ||||||
| Lifecycle Index 2030 Fund | 161,102 | 0.00499 | ||||||
| Lifecycle Index 2035 Fund | 168,574 | 0.00569 | ||||||
| Lifecycle Index 2040 Fund | 217,332 | 0.00629 | ||||||
| Lifecycle Index 2045 Fund | 100,053 | 0.00626 | ||||||
| Lifecycle Index 2050 Fund | 64,889 | 0.00623 | ||||||
| Lifecycle Index 2055 Fund | 14,886 | 0.00497 | ||||||
| Lifecycle Index 2060 Fund | 3,823 | 0.00382 | ||||||
The information and distributions reported herein may differ from the information and distributions reported to shareholders for the calendar year ending December 31, 2015, which will be reported in conjunction with your 2015 Form 1099-DIV.
By early 2016, shareholders should receive their Form 1099-DIV and a tax information letter from the Funds. For your specific situation, we recommend that you consult a professional tax adviser.
| 100 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
Additional information about
index providers (unaudited)
Russell Indexes
The Russell 3000® Index is a trademark/service mark of the Russell Investment Group. The Russell Investment Group is the owner of the copyrights relating to the Russell Indexes and is the source and owner of the data contained or reflected in the performance values relating to the Russell Indexes. The funds are not promoted by, nor in any way affiliated with, the Russell Investment Group. The Russell Investment Group is not responsible for and has not reviewed the funds nor any associated literature or publications and the Russell Investment Group makes no representation or warranty, express or implied, as to their accuracy, or completeness.
Russell reserves the right, at any time and without notice, to alter, amend, terminate or in any way change the Russell Indexes. Russell has no obligation to take the needs of any particular fund or its participants or any other product or person into consideration in determining, composing or calculating any of the Russell Indexes.
Russell’s publication of the Russell Indexes in no way suggests or implies an opinion by Russell as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell Indexes are based. russell makes no representation, warranty or guarantee regarding the use or the results of use or the russell indexes or any data included therein, or any securities (or combination thereof) comprising the russell indexes. russell makes no other express or implied warranty, and expressly disclaims any warranty, of any kind, including without limitation, any warranty of merchantability or fitness for a particular purpose with respect to the russell index(es) or any data or any security (or combination thereof) included therein.
MSCI Indexes
The funds are not sponsored, endorsed, sold or promoted by MSCI Inc. (“MSCI”), any of its affiliates, any of its information providers or any other third party involved in, or related to, compiling, computing or creating any MSCI index (collectively, the “MSCI Parties”). The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names are service mark(s) of MSCI or its affiliates and have been licensed for use for certain purposes by Teachers Advisors, Inc. None of the MSCI parties makes any representation or warranty, express or implied, to the issuer or owners of this fund or any other person or entity regarding the advisability of investing in funds generally or in this fund particularly or the ability of any MSCI index to track corresponding stock market performance. MSCI or its affiliates are the licensors of certain trademarks, service marks and trade names and of the MSCI indexes which are determined, composed and calculated by MSCI without regard to this fund or the issuer or owners of this fund or any other person or entity. None of the MSCI parties has any obligation to take the needs of the issuer or owners of this fund or any other person or entity into consideration in determining, composing or calculating the MSCI indexes. None of the MSCI parties is responsible for or has participated in the determination of the timing of, prices at, or quantities of this fund to be issued or in the determination or calculation of the equation by or the consideration into which
| TIAA-CREF Lifecycle Index Funds ■ 2015 Annual Report | 101 |
| Additional information about | concluded |
| index providers (unaudited) |
this fund is redeemable. Further, none of the MSCI parties has any obligation or liability to the issuer or owners of this fund or any other person or entity in connection with the administration, marketing or offering of this fund.
although msci shall obtain information for inclusion in or for use in the calculation of the msci indexes from sources that msci considers reliable, none of the msci parties warrants or guarantees the originality, accuracy and/or the completeness of any msci index or any data included therein. none of the msci parties makes any warranty, express or implied, as to results to be obtained by the issuer of the fund, owners of the fund, or any other person or entity, from the use of any msci index or any data included therein. none of the msci parties shall have any liability for any errors, omissions or interruptions of or in connection with any msci index or any data included therein. further, none of the msci parties makes any express or implied warranties of any kind, and the msci parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose, with respect to each msci index and any data included therein. without limiting any of the foregoing, in no event shall any of the msci parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
No purchaser, seller or holder of this security, product or fund, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this security without first contacting MSCI to determine whether MSCI’s permission is required. Under no circumstances may any person or entity claim any affiliation with MSCI without the prior written permission of MSCI.
| 102 | 2015 Annual Report ■ TIAA-CREF Lifecycle Index Funds |
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TIAA-CREF website
tiaa-cref.org
24 hours a day, 7 days a week
Automated telephone service
800 842-2252
24 hours a day, 7 days a week
For the hearing- or speech-impaired
800 842-2755
8 a.m. to 10 p.m. (ET), Monday–Friday
9 a.m. to 6 p.m. (ET), Saturday
You should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other important information, please visit tiaa-cref.org, or call 800 842-2252. Please read the prospectus carefully before investing. Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not bank
deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products.
©2015 Teachers Insurance and Annuity Association of America—College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017-3206.
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2015 Annual Report
TIAA-CREF Lifestyle Funds
of the TIAA-CREF Funds
May 31, 2015
Understanding your Lifestyle Funds report
This annual report contains information about the investment performance and holdings of the Lifestyle Funds, an offering of the TIAA-CREF Funds, and describes the funds’ results for the twelve months ended May 31, 2015. The report contains three main sections:
| • | The fund performance section compares each fund’s investment returns with those of its composite benchmark and a broad market index. |
| • | The portfolios of investments list the underlying TIAA-CREF Funds in which each fund had investments as of May 31, 2015. |
| • | The financial statements provide detailed information about the operations and financial condition of each fund. |
The views and opinions expressed in this report are through the end of the period, as stated on the cover of this report. They are subject to change at any time based on a variety of factors. As such, they are not guarantees of future performance or investment results and should not be taken as investment advice. The risks of investing in the TIAA-CREF Funds vary from fund to fund; to see the risks of investing in an individual fund, please refer to that fund’s latest prospectus.
As always, you should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other important information, please visit our website at tiaa-cref.org, or call 800 842-2252 for the Institutional, Premier and Retirement classes or 800 223-1200 for the Retail Class. We urge you to read the prospectus carefully before investing.
| 2 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
Portfolio listings
The complete portfolios of investments for the Lifestyle Funds begin on page 22 of this report. You can also obtain lists of the holdings of the Lifestyle Funds and of the underlying funds in which the Lifestyle Funds invest (Schedules of Investments) as of the most recently completed fiscal quarter in the following ways:
| • | By visiting our website at tiaa-cref.org; or |
| • | By calling us at 800 842-2252 to request a copy, which will be provided free of charge. |
You can obtain a complete list of the Lifestyle Funds’ portfolio holdings as of the most recently completed fiscal quarter, and for prior quarter-ends, from our Securities and Exchange Commission (SEC) Form N-CSR and Form N-Q filings. Form N-CSR filings are as of May 31 or November 30; Form N-Q filings are as of the last day of February or August 31. Copies of these forms are available:
| • | Through the Electronic Data Gathering and Retrieval System (EDGAR) on the SEC’s website at www.sec.gov; or |
| • | From the SEC’s Office of Investor Education and Advocacy. (Call 202 551-8090 for more information.) |
Proxy voting
A description of our proxy voting policies and procedures for the underlying funds of the Lifestyle Funds can be found on our website at tiaa-cref.org or on the SEC’s website at www.sec.gov. You may also call us at 800 842-2252 to request a free copy. A report of how the Lifestyle Funds’ underlying funds voted during the most recently completed twelve-month period ended June 30 can be found on our website or on Form N-PX at www.sec.gov.
Contacting TIAA-CREF
There are three easy ways to contact us: by email, using the Contact Us link at the top of our home page; by mail at TIAA-CREF, 730 Third Avenue, New York, NY 10017-3206; or by phone at 800 842-2252.
Fund management
The Lifestyle Funds are managed by a portfolio management team of Teachers Advisors, Inc. The members of this team are responsible for the day-to-day investment management of the funds.
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 3 |
About the funds’ composite benchmarks
Each Lifestyle fund uses a composite benchmark that represents the general market sectors in which that fund invests. These may include U.S. equity (stocks), international equity (foreign stocks), fixed income and short-term fixed income. A fund’s composite benchmark may combine the following public indexes in proportions that reflect the fund’s target market sector allocations:
| • | The Russell 3000® Index (U.S. equity) measures the performance of the stocks of the 3,000 largest publicly traded U.S. companies, based on market capitalization. The index measures the performance of about 98% of the total market capitalization of the publicly traded U.S. equity market. |
| • | The MSCI All Country World ex USA Index (international equity) measures the performance of large- and mid-cap stocks in 45 developed and emerging market countries, excluding the United States. |
| • | The Barclays U.S. Aggregate Bond Index (fixed income) measures the performance of the domestic investment-grade, fixed-rate bond market, including government and corporate securities, agency mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. |
| • | The Barclays U.S. 1–3 Year Government/Credit Bond Index measures the performance of U.S. Treasury and agency securities and corporate bonds with 1- to 3-year maturities. |
Russell 3000 is a trademark and service mark of Russell Investments. TIAA-CREF products are not promoted or sponsored by, or affiliated with, Russell Investments. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. This report is not approved, reviewed or produced by MSCI.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| 4 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
Important information about expenses
All shareholders of the TIAA-CREF Funds incur ongoing costs, including management fees and other fund expenses. They may also incur transactional costs for redemptions or account maintenance fees.
The expense examples that appear in the tables on pages 6 through 9 are intended to help you understand your ongoing costs only (in U.S. dollars) and do not reflect transactional costs or the costs incurred by the funds for buying and selling securities. The examples are designed to help you compare these ongoing costs with the ongoing costs of investing in other mutual funds.
The expenses shown do not include redemption fees or account maintenance fees, which may or may not be applicable, as described in the prospectus. If such fees were included, your costs of investing in the funds would be higher. Note also that shareholders of the TIAA-CREF Funds do not incur a sales charge for purchases, reinvested dividends or other distributions.
The examples are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (December 1, 2014–May 31, 2015).
Actual expenses
The first line of the two lines listed for each fund in the tables uses the fund’s actual expenses and its actual rate of return. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the six-month period.
Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses paid during period” to estimate the expenses you paid during the six-month period. All of the funds have a contractual fee reimbursement. Had these not been in effect, fund expenses would have been higher.
Hypothetical example for comparison purposes
The second line in each fund’s entry shows a hypothetical account value and hypothetical expenses based on the share class’s actual expense ratio for the six-month period and an assumed 5% per year rate of return before expenses. This was not the fund’s actual return.
This hypothetical example cannot be used to estimate the actual expenses you paid for the period but rather allows you to compare the ongoing costs of investing in the fund with the costs of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 5 |
Important information about expenses
Expense examples
Six months ended May 31, 2015
| Beginning | Ending | Effective | ||||||||||||||
| account | account | Expenses paid | expenses paid | |||||||||||||
| Lifestyle Funds | value | value | during period | * | during period | † | ||||||||||
| Institutional Class | (12/1/14 | ) | (5/31/15 | ) | (12/1/14–5/31/15 | ) | (12/1/14–5/31/15 | ) | ||||||||
| Income Fund actual return | $1,000.00 | $1,017.84 | $0.50 | $2.16 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.43 | 0.50 | 2.17 | ||||||||||||
| Conservative Fund actual return | 1,000.00 | 1,028.57 | 0.51 | 2.43 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.43 | 0.50 | 2.42 | ||||||||||||
| Moderate Fund actual return | 1,000.00 | 1,037.66 | 0.51 | 2.64 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.43 | 0.50 | 2.62 | ||||||||||||
| Growth Fund actual return | 1,000.00 | 1,045.00 | 0.51 | 2.80 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.43 | 0.50 | 2.77 | ||||||||||||
| Aggressive Growth Fund actual return | 1,000.00 | 1,051.72 | 0.51 | 2.97 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.43 | 0.50 | 2.92 | ||||||||||||
| * | The amounts in the “Expenses paid during period” column are based on each fund’s actual expense ratio for the most recent fiscal half year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2015. The expense charges of one or more of the fund’s share classes may at times reflect a reimbursement. Please see the prospectus for an explanation, including the date on which this reimbursement is scheduled to end. Without any such reimbursement, the expenses of the affected share classes would be higher and the fund’s performance lower. The expense ratio for the period was 0.10% for the Institutional Class of the Lifestyle Funds. |
| † | The amounts in the “Effective expenses paid during period” column are based on each fund’s total expense ratio for the most recent fiscal half year, which includes the fund’s own expense ratio plus its pro rata share of its underlying funds’ expenses (which the fund bears through its investment in the underlying funds). For the six-month period, the total annualized weighted average expense ratio was 0.43% for the Income Fund; 0.48% for the Conservative Fund; 0.52% for the Moderate Fund; 0.55% for the Growth Fund; and 0.58% for the Aggressive Growth Fund. |
| 6 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
continued
Expense examples
Six months ended May 31, 2015
| Beginning | Ending | Effective | ||||||||||||||
| account | account | Expenses paid | expenses paid | |||||||||||||
| Lifestyle Funds | value | value | during period | * | during period | † | ||||||||||
| Premier Class | (12/1/14 | ) | (5/31/15 | ) | (12/1/14–5/31/15 | ) | (12/1/14–5/31/15 | ) | ||||||||
| Income Fund actual return | $1,000.00 | $1,017.91 | $1.26 | $2.92 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 2.92 | ||||||||||||
| Conservative Fund actual return | 1,000.00 | 1,026.92 | 1.26 | 3.18 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.18 | ||||||||||||
| Moderate Fund actual return | 1,000.00 | 1,036.85 | 1.27 | 3.40 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.38 | ||||||||||||
| Growth Fund actual return | 1,000.00 | 1,044.29 | 1.27 | 3.57 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.53 | ||||||||||||
| Aggressive Growth Fund actual return | 1,000.00 | 1,050.32 | 1.28 | 3.73 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.68 | ||||||||||||
| * | The amounts in the “Expenses paid during period” column are based on each fund’s actual expense ratio for the most recent fiscal half year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2015. The expense charges of one or more of the fund’s share classes may at times reflect a reimbursement. Please see the prospectus for an explanation, including the date on which this reimbursement is scheduled to end. Without any such reimbursement, the expenses of the affected share classes would be higher and the fund’s performance lower. The expense ratio for the period was 0.25% for the Premier Class of the Lifestyle Funds. |
| † | The amounts in the “Effective expenses paid during period” column are based on each fund’s total expense ratio for the most recent fiscal half year, which includes the fund’s own expense ratio plus its pro rata share of its underlying funds’ expenses (which the fund bears through its investment in the underlying funds). For the six-month period, the total annualized weighted average expense ratio was 0.58% for the Income Fund; 0.63% for the Conservative Fund; 0.67% for the Moderate Fund; 0.70% for the Growth Fund; and 0.73% for the Aggressive Growth Fund. |
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 7 |
Important information about expenses
Expense examples
Six months ended May 31, 2015
| Beginning | Ending | Effective | ||||||||||||||
| account | account | Expenses paid | expenses paid | |||||||||||||
| Lifestyle Funds | value | value | during period | * | during period | † | ||||||||||
| Retirement Class | (12/1/14 | ) | (5/31/15 | ) | (12/1/14–5/31/15 | ) | (12/1/14–5/31/15 | ) | ||||||||
| Income Fund actual return | $1,000.00 | $1,017.44 | $1.76 | $3.42 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.19 | 1.77 | 3.43 | ||||||||||||
| Conservative Fund actual return | 1,000.00 | 1,026.42 | 1.77 | 3.69 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.19 | 1.77 | 3.68 | ||||||||||||
| Moderate Fund actual return | 1,000.00 | 1,036.37 | 1.78 | 3.91 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.19 | 1.77 | 3.88 | ||||||||||||
| Growth Fund actual return | 1,000.00 | 1,042.80 | 1.78 | 4.07 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.19 | 1.77 | 4.03 | ||||||||||||
| Aggressive Growth Fund actual return | 1,000.00 | 1,049.99 | 1.79 | 4.24 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.19 | 1.77 | 4.18 | ||||||||||||
| * | The amounts in the “Expenses paid during period” column are based on each fund’s actual expense ratio for the most recent fiscal half year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2015. The expense charges of one or more of the fund’s share classes may at times reflect a reimbursement. Please see the prospectus for an explanation, including the date on which this reimbursement is scheduled to end. Without any such reimbursement, the expenses of the affected share classes would be higher and the fund’s performance lower. The expense ratio for the period was 0.35% for the Retirement Class of the Lifestyle Funds. |
| † | The amounts in the “Effective expenses paid during period” column are based on each fund’s total expense ratio for the most recent fiscal half year, which includes the fund’s own expense ratio plus its pro rata share of its underlying funds’ expenses (which the fund bears through its investment in the underlying funds). For the six-month period, the total annualized weighted average expense ratio was 0.68% for the Income Fund; 0.73% for the Conservative Fund; 0.77% for the Moderate Fund; 0.80% for the Growth Fund; and 0.83% for the Aggressive Growth Fund. |
| 8 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
concluded
Expense examples
Six months ended May 31, 2015
| Beginning | Ending | Effective | ||||||||||||||
| account | account | Expenses paid | expenses paid | |||||||||||||
| Lifestyle Funds | value | value | during period | * | during period | † | ||||||||||
| Retail Class | (12/1/14 | ) | (5/31/15 | ) | (12/1/14–5/31/15 | ) | (12/1/14–5/31/15 | ) | ||||||||
| Income Fund actual return | $1,000.00 | $1,017.40 | $1.86 | $3.52 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.09 | 1.87 | 3.53 | ||||||||||||
| Conservative Fund actual return | 1,000.00 | 1,026.39 | 1.92 | 3.79 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.04 | 1.92 | 3.78 | ||||||||||||
| Moderate Fund actual return | 1,000.00 | 1,035.57 | 1.88 | 4.01 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.09 | 1.87 | 3.98 | ||||||||||||
| Growth Fund actual return | 1,000.00 | 1,042.66 | 1.94 | 4.23 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.04 | 1.92 | 4.18 | ||||||||||||
| Aggressive Growth Fund actual return | 1,000.00 | 1,049.67 | 2.10 | 4.55 | ||||||||||||
| 5% annual hypothetical return | 1,000.00 | 1,022.89 | 2.07 | 4.48 | ||||||||||||
| * | The amounts in the “Expenses paid during period” column are based on each fund’s actual expense ratio for the most recent fiscal half year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2015. The expense charges of one or more of the fund’s share classes may at times reflect a reimbursement. Please see the prospectus for an explanation, including the date on which this reimbursement is scheduled to end. Without any such reimbursement, the expenses of the affected share classes would be higher and the fund’s performance lower. The expense ratio for the period was 0.37% for the Income and Moderate Funds; 0.38% for the Conservative and Growth Funds; and 0.41% for the Aggressive Growth Fund for the Retail Class of the Lifestyle Funds. |
| † | The amounts in the “Effective expenses paid during period” column are based on each fund’s total expense ratio for the most recent fiscal half year, which includes the fund’s own expense ratio plus its pro rata share of its underlying funds’ expenses (which the fund bears through its investment in the underlying funds). For the six-month period, the total annualized weighted average expense ratio was 0.70% for the Income Fund; 0.75% for the Conservative Fund; 0.79% for the Moderate Fund; 0.83% for the Growth Fund; and 0.89% for the Aggressive Growth Fund. |
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 9 |
Investment results of the Lifestyle Funds
Performance for the twelve months ended May 31, 2015
For the twelve-month reporting period, all five TIAA-CREF Lifestyle Funds outperformed their respective composite benchmarks. Institutional Class returns ranged from 3.34% for the Lifestyle Income Fund to 9.13% for the Lifestyle Aggressive Growth Fund. The tables on the following pages show returns for all share classes of the funds.
The outperformance of the individual Lifestyle Funds, in relation to their respective composite benchmarks, ranged from 0.13 of a percentage point for the Income Fund to 1.16 percentage points for the Aggressive Growth Fund. (All results for the Lifestyle Funds are for the Institutional Class.)
U.S. markets rise amid volatility and mixed economic data
The domestic economy showed signs of life throughout much of the twelve-month period relative to many international markets’ economies but tapered off in 2015. Real gross domestic product, which measures the value of all goods and services produced in the nation, decreased 0.2% in the first calendar quarter of 2015. However, the national unemployment rate registered at 5.5% in the final month of the reporting period—down from 6.3% in May 2014. The U.S. dollar rose sharply against most foreign currencies and inflation remained subdued.
Investors then turned their attention to when the U.S. central bank might start raising short-term interest rates. Conversely, central banks in some European markets, Japan and China boosted efforts to stimulate their sluggish economies, which helped fuel demand for equities in various international markets.
For the twelve-month period, the Russell 3000® Index, a broad measure of the U.S. stock market, rose 11.86%. The MSCI All Country World ex USA Index, which measures the performance of large- and mid-cap stocks in 45 developed and emerging market nations excluding the United States, returned –0.90% in terms of U.S. dollars, but climbed substantially to 15.04% in local currency terms. Although emerging markets finished lower for the twelve months, many markets rose in the final quarter of the period as oil prices stabilized following their sharp drop from June 2014 through January 2015.
Returns of U.S. investment-grade bonds were somewhat constrained by the prospect of rising interest rates. The broad domestic investment-grade, fixed-rate bond market, as measured by the Barclays U.S. Aggregate Bond Index, returned 3.03% for the period. Short-term Treasury securities, as measured by the Barclay’s U.S. 1–3 Year Government/Credit Bond Index, gained 0.91%.
| 10 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
Each of the five Lifestyle Funds produced a solid gain for the twelve-month period aided by the strength of the U.S. equity markets.
The Lifestyle Funds may invest in up to four sectors of the investment markets: U.S. equity (stocks), international equity (foreign stocks), fixed income and short-term fixed income. The Lifestyle Funds do this by investing in various underlying funds that in turn buy stocks, bonds and other securities in these market sectors.
For the period, the U.S. equity sector contributed the most to the funds’ absolute returns—that is, without regard to performance relative to their respective composite benchmarks. Within U.S. equity, the Large-Cap Growth and Enhanced Large-Cap Growth Index funds had the highest returns. The International Opportunities Fund had the best performance within the international equity sector.
Strong results from stocks lift the funds’ returns higher
All of the Lifestyle Funds outperformed their respective composite benchmarks driven by the U.S. equity sector. Performance within the U.S. equity sector was led by the Large-Cap Growth Fund, which beat its benchmark, the Russell 1000® Growth Index, by over four percentage points. The International Opportunities Fund was the second best contributor to each of the funds’ relative performance surpassing its benchmark, the MSCI All Country World ex USA Index, by nearly five percentage points.
For the Lifestyle Conservative, Moderate, Growth and Aggressive Growth funds, the third-best contributor was the Growth & Income Fund, which outperformed the S&P 500® Index by almost two percentage points.
Within the fixed-income sector, the Bond Plus Fund aided the relative performance of the Income, Conservative, Moderate and Growth funds.
The biggest detractor from relative performance for each of the Lifestyle Funds was the Emerging Markets Equity Fund, which lagged the return of its benchmark, the MSCI Emerging Markets Index, by nearly four percentage points. (Performance of the Lifestyle Funds’ underlying funds can be found at www.tiaa-cref.org/performance.)
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 11 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||
| return | total return | |||||||||
| Lifestyle Income Fund | Inception date | 1 year | since inception | |||||||
| Institutional Class | 12/9/2011 | 3.34 | % | 5.64 | % | |||||
| Premier Class | 12/9/2011 | 3.18 | 5.50 | |||||||
| Retirement Class | 12/9/2011 | 3.09 | 5.39 | |||||||
| Retail Class | 12/9/2011 | 3.06 | 5.35 | |||||||
| Lifestyle Income Fund | ||||||||||
| Composite Index* | — | 3.21 | 4.74 | † | ||||||
| Broad market index | ||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 2.80 | † | ||||||
| Russell 3000® Index | — | 11.86 | 18.75 | † | ||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | On May 31, 2015, the Lifestyle Income Fund Composite Index consisted of: 40.0% Barclays U.S. Aggregate Bond Index; 40.0% Barclays U.S. 1–3 Year Government/Credit Bond Index; 14.0% Russell 3000® Index; and 6.0% MSCI All Country World ex USA Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Institutional Class. |
| 12 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
Lifestyle Income Fund
$10,000 invested at fund’s inception
Institutional Class (inception December 9, 2011)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||
| % of net assets | ||||
| as of 5/31/2015 | ||||
| Equity | ||||
| U.S. equity | 13.6 | % | ||
| International equity | 6.5 | |||
| Fixed income | ||||
| Fixed income | 39.9 | |||
| Short-term fixed income | 39.9 | |||
| Other assets & liabilities, net | 0.1 | |||
| Total | 100.0 | |||
Target allocation
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 13 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||
| return | total return | |||||||||
| Lifestyle Conservative Fund | Inception date | 1 year | since inception | |||||||
| Institutional Class | 12/9/2011 | 5.13 | % | 8.74 | % | |||||
| Premier Class | 12/9/2011 | 4.88 | 8.55 | |||||||
| Retirement Class | 12/9/2011 | 4.79 | 8.44 | |||||||
| Retail Class | 12/9/2011 | 4.77 | 8.41 | |||||||
| Lifestyle Conservative Fund | ||||||||||
| Composite Index* | — | 4.65 | 7.69 | † | ||||||
| Broad market index | ||||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 2.80 | † | ||||||
| Russell 3000® Index | — | 11.86 | 18.75 | † | ||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | On May 31, 2015, the Lifestyle Conservative Fund Composite Index consisted of: 40.0% Barclays U.S. Aggregate Bond Index; 28.0% Russell 3000® Index; 20.0% Barclays U.S. 1–3 Year Government/Credit Bond Index; and 12.0% MSCI All Country World ex USA Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Institutional Class. |
| 14 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
Lifestyle Conservative Fund
$10,000 invested at fund’s inception
Institutional Class (inception December 9, 2011)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||
| % of net assets | ||||
| as of 5/31/2015 | ||||
| Equity | ||||
| U.S. equity | 27.1 | % | ||
| International equity | 13.0 | |||
| Fixed income | ||||
| Fixed income | 39.9 | |||
| Short-term fixed income | 19.9 | |||
| Other assets & liabilities, net | 0.1 | |||
| Total | 100.0 | |||
Target allocation
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 15 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||
| return | total return | |||||||||
| Lifestyle Moderate Fund | Inception date | 1 year | since inception | |||||||
| Institutional Class | 12/9/2011 | 6.81 | % | 11.83 | % | |||||
| Premier Class | 12/9/2011 | 6.65 | 11.67 | |||||||
| Retirement Class | 12/9/2011 | 6.56 | 11.56 | |||||||
| Retail Class | 12/9/2011 | 6.46 | 11.50 | |||||||
| Lifestyle Moderate Fund | ||||||||||
| Composite Index* | — | 6.07 | 10.67 | † | ||||||
| Broad market index | ||||||||||
| Russell 3000® Index | — | 11.86 | 18.75 | † | ||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 2.80 | † | ||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | On May 31, 2015, the Lifestyle Moderate Fund Composite Index consisted of: 42.0% Russell 3000 Index; 40.0% Barclays U.S. Aggregate Bond Index; and 18.0% MSCI All Country World ex USA Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Institutional Class. |
| 16 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
Lifestyle Moderate Fund
$10,000 invested at fund’s inception
Institutional Class (inception December 9, 2011)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||
| % of net assets as of 5/31/2015 | ||||
| Equity | ||||
| U.S. equity | 41.2 | % | ||
| International equity | 18.9 | |||
| Fixed income | 39.8 | |||
| Other assets & liabilities, net | 0.1 | |||
| Total | 100.0 | |||
Target allocation
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 17 |
Performance as of May 31, 2015
| Total | Average annual | |||||||||
| return | total return | |||||||||
| Lifestyle Growth Fund | Inception date | 1 year | since inception | |||||||
| Institutional Class | 12/9/2011 | 7.92 | % | 14.23 | % | |||||
| Premier Class | 12/9/2011 | 7.77 | 14.06 | |||||||
| Retirement Class | 12/9/2011 | 7.62 | 13.93 | |||||||
| Retail Class | 12/9/2011 | 7.61 | 13.86 | |||||||
| Lifestyle Growth Fund | ||||||||||
| Composite Index* | — | 7.04 | 13.32 | † | ||||||
| Broad market index | ||||||||||
| Russell 3000® Index | — | 11.86 | 18.75 | † | ||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 2.80 | † | ||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | On May 31, 2015, the Lifestyle Growth Fund Composite Index consisted of: 56.0% Russell 3000 Index; 24.0% MSCI All Country World ex USA Index; and 20.0% Barclays U.S. Aggregate Bond Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Institutional Class. |
| 18 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
Lifestyle Growth Fund
$10,000 invested at fund’s inception
Institutional Class (inception December 9, 2011)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||
| % of net assets | ||||
| as of 5/31/2015 | ||||
| Equity | ||||
| U.S. equity | 55.1 | % | ||
| International equity | 24.7 | |||
| Fixed income | 19.9 | |||
| Other assets & liabilities, net | 0.3 | |||
| Total | 100.0 | |||
Target allocation
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 19 |
Lifestyle Aggressive Growth Fund
Performance as of May 31, 2015
| Total | Average annual | |||||||||
| return | total return | |||||||||
| Lifestyle Aggressive Growth Fund | Inception date | 1 year | since inception | |||||||
| Institutional Class | 12/9/2011 | 9.13 | % | 16.64 | % | |||||
| Premier Class | 12/9/2011 | 8.92 | 16.46 | |||||||
| Retirement Class | 12/9/2011 | 8.89 | 16.36 | |||||||
| Retail Class | 12/9/2011 | 8.79 | 16.26 | |||||||
| Lifestyle Aggressive Growth Fund | ||||||||||
| Composite Index* | — | 7.97 | 15.97 | † | ||||||
| Broad market index | ||||||||||
| Russell 3000® Index | — | 11.86 | 18.75 | † | ||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | On May 31, 2015, the Lifestyle Aggressive Growth Fund Composite Index consisted of: 70.0% Russell 3000 Index and 30.0% MSCI All Country World ex USA Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Institutional Class. |
| 20 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
Lifestyle Aggressive Growth Fund
$10,000 invested at fund’s inception
Institutional Class (inception December 9, 2011)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and that of a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||
| % of net assets | ||||
| as of 5/31/2015 | ||||
| Equity | ||||
| U.S. equity | 69.1 | % | ||
| International equity | 30.7 | |||
| Other assets & liabilities, net | 0.2 | |||
| Total | 100.0 | |||
Target allocation
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 21 |
Lifestyle Income Fund ■ May 31, 2015
| % of net | ||||||||||||
| Shares | Security | Value | assets | |||||||||
| TIAA-CREF FUNDS — 99.9% (a) | ||||||||||||
| FIXED INCOME — 39.9% | ||||||||||||
| 997,734 | TIAA-CREF Bond Fund | $ | 10,536,070 | 19.0 | % | |||||||
| 1,033,245 | TIAA-CREF Bond Plus Fund | 11,035,052 | 19.9 | |||||||||
| 56,675 | TIAA-CREF High-Yield Fund | 565,614 | 1.0 | |||||||||
| TOTAL FIXED INCOME | 22,136,736 | 39.9 | ||||||||||
| INTERNATIONAL EQUITY — 6.5% | ||||||||||||
| 66,295 | TIAA-CREF Emerging Markets Equity Fund | 700,071 | 1.2 | |||||||||
| 91,078 | TIAA-CREF Enhanced International Equity Index Fund | 708,588 | 1.3 | |||||||||
| 19,320 | TIAA-CREF Global Natural Resources Fund | 165,574 | 0.3 | |||||||||
| 103,128 | TIAA-CREF International Equity Fund | 1,223,092 | 2.2 | |||||||||
| 72,649 | TIAA-CREF International Opportunities Fund | 827,472 | 1.5 | |||||||||
| TOTAL INTERNATIONAL EQUITY | 3,624,797 | 6.5 | ||||||||||
| SHORT-TERM FIXED INCOME — 39.9% | ||||||||||||
| 2,993 | * | TIAA-CREF Money Market Fund | 2,993 | 0.0 | ||||||||
| 2,136,450 | TIAA-CREF Short-Term Bond Fund | 22,176,351 | 39.9 | |||||||||
| TOTAL SHORT-TERM FIXED INCOME | 22,179,344 | 39.9 | ||||||||||
| U.S. EQUITY — 13.6% | ||||||||||||
| 56,305 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 671,160 | 1.2 | |||||||||
| 58,852 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 617,951 | 1.1 | |||||||||
| 130,235 | TIAA-CREF Growth & Income Fund | 1,655,285 | 3.0 | |||||||||
| 125,099 | TIAA-CREF Large-Cap Growth Fund | 2,012,844 | 3.6 | |||||||||
| 100,550 | TIAA-CREF Large-Cap Value Fund | 1,866,212 | 3.4 | |||||||||
| 3,124 | TIAA-CREF Mid-Cap Growth Fund | 70,314 | 0.1 | |||||||||
| 2,168 | TIAA-CREF Mid-Cap Value Fund | 54,659 | 0.1 | |||||||||
| 33,671 | TIAA-CREF Small-Cap Equity Fund | 611,134 | 1.1 | |||||||||
| TOTAL U.S. EQUITY | 7,559,559 | 13.6 | ||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $54,032,719) | 55,500,436 | 99.9 | |||||||||
| TOTAL PORTFOLIO | (Cost $54,032,719) | 55,500,436 | 99.9 | |||||||||
| OTHER ASSETS & LIABILITIES, NET | 54,195 | 0.1 | ||||||||||
| NET ASSETS | $ | 55,554,631 | 100.0 | % | ||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| 22 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds | See notes to financial statements |
Portfolio of investments
Lifestyle Conservative Fund ■ May 31, 2015
| % of net | ||||||||||||
| Shares | Security | Value | assets | |||||||||
| TIAA-CREF FUNDS — 99.9% (a) | ||||||||||||
| FIXED INCOME — 39.9% | ||||||||||||
| 973,648 | TIAA-CREF Bond Fund | $ | 10,281,719 | 9.0 | % | |||||||
| 3,199,080 | TIAA-CREF Bond Plus Fund | 34,166,169 | 29.9 | |||||||||
| 116,831 | TIAA-CREF High-Yield Fund | 1,165,973 | 1.0 | |||||||||
| TOTAL FIXED INCOME | 45,613,861 | 39.9 | ||||||||||
| INTERNATIONAL EQUITY — 13.0% | ||||||||||||
| 271,603 | TIAA-CREF Emerging Markets Equity Fund | 2,868,128 | 2.5 | |||||||||
| 373,442 | TIAA-CREF Enhanced International Equity Index Fund | 2,905,381 | 2.5 | |||||||||
| 79,309 | TIAA-CREF Global Natural Resources Fund | 679,681 | 0.6 | |||||||||
| 424,481 | TIAA-CREF International Equity Fund | 5,034,350 | 4.4 | |||||||||
| 297,870 | TIAA-CREF International Opportunities Fund | 3,392,743 | 3.0 | |||||||||
| TOTAL INTERNATIONAL EQUITY | 14,880,283 | 13.0 | ||||||||||
| SHORT-TERM FIXED INCOME — 19.9% | ||||||||||||
| 4,722 | * | TIAA-CREF Money Market Fund | 4,722 | 0.0 | ||||||||
| 2,193,222 | TIAA-CREF Short-Term Bond Fund | 22,765,641 | 19.9 | |||||||||
| TOTAL SHORT-TERM FIXED INCOME | 22,770,363 | 19.9 | ||||||||||
| U.S. EQUITY — 27.1% | ||||||||||||
| 230,797 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 2,751,095 | 2.4 | |||||||||
| 241,471 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 2,535,443 | 2.2 | |||||||||
| 534,135 | TIAA-CREF Growth & Income Fund | 6,788,855 | 5.9 | |||||||||
| 512,512 | TIAA-CREF Large-Cap Growth Fund | 8,246,311 | 7.2 | |||||||||
| 412,101 | TIAA-CREF Large-Cap Value Fund | 7,648,592 | 6.7 | |||||||||
| 12,670 | TIAA-CREF Mid-Cap Growth Fund | 285,197 | 0.3 | |||||||||
| 8,967 | TIAA-CREF Mid-Cap Value Fund | 226,064 | 0.2 | |||||||||
| 138,264 | TIAA-CREF Small-Cap Equity Fund | 2,509,500 | 2.2 | |||||||||
| TOTAL U.S. EQUITY | 30,991,057 | 27.1 | ||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $109,490,893) | 114,255,564 | 99.9 | |||||||||
| TOTAL PORTFOLIO | (Cost $109,490,893) | 114,255,564 | 99.9 | |||||||||
| OTHER ASSETS & LIABILITIES, NET | 104,116 | 0.1 | ||||||||||
| NET ASSETS | $ | 114,359,680 | 100.0 | % | ||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| See notes to financial statements | TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 23 |
Portfolio of investments
Lifestyle Moderate Fund ■ May 31, 2015
| % of net | ||||||||||||
| Shares | Security | Value | assets | |||||||||
| TIAA-CREF FUNDS — 99.9% (a) | ||||||||||||
| FIXED INCOME — 39.8% | ||||||||||||
| 5,495,631 | TIAA-CREF Bond Plus Fund | $ | 58,693,339 | 38.8 | % | |||||||
| 154,989 | TIAA-CREF High-Yield Fund | 1,546,792 | 1.0 | |||||||||
| TOTAL FIXED INCOME | 60,240,131 | 39.8 | ||||||||||
| INTERNATIONAL EQUITY — 18.9% | ||||||||||||
| 496,832 | TIAA-CREF Emerging Markets Equity Fund | 5,246,545 | 3.5 | |||||||||
| 740,076 | TIAA-CREF Enhanced International Equity Index Fund | 5,757,794 | 3.8 | |||||||||
| 158,022 | TIAA-CREF Global Natural Resources Fund | 1,354,249 | 0.9 | |||||||||
| 804,553 | TIAA-CREF International Equity Fund | 9,541,996 | 6.3 | |||||||||
| 590,733 | TIAA-CREF International Opportunities Fund | 6,728,451 | 4.4 | |||||||||
| TOTAL INTERNATIONAL EQUITY | 28,629,035 | 18.9 | ||||||||||
| SHORT-TERM FIXED INCOME — 0.0% | ||||||||||||
| 6,346 | * | TIAA-CREF Money Market Fund | 6,346 | 0.0 | ||||||||
| TOTAL SHORT-TERM FIXED INCOME | 6,346 | 0.0 | ||||||||||
| U.S. EQUITY — 41.2% | ||||||||||||
| 476,625 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 5,681,368 | 3.8 | |||||||||
| 500,270 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 5,252,833 | 3.5 | |||||||||
| 1,059,565 | TIAA-CREF Growth & Income Fund | 13,467,074 | 8.9 | |||||||||
| 1,017,691 | TIAA-CREF Large-Cap Growth Fund | 16,374,656 | 10.8 | |||||||||
| 817,438 | TIAA-CREF Large-Cap Value Fund | 15,171,643 | 10.0 | |||||||||
| 34,417 | TIAA-CREF Mid-Cap Growth Fund | 774,729 | 0.5 | |||||||||
| 26,654 | TIAA-CREF Mid-Cap Value Fund | 671,942 | 0.4 | |||||||||
| 270,588 | TIAA-CREF Small-Cap Equity Fund | 4,911,169 | 3.3 | |||||||||
| TOTAL U.S. EQUITY | 62,305,414 | 41.2 | ||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $142,763,310) | 151,180,926 | 99.9 | |||||||||
| TOTAL PORTFOLIO | (Cost $142,763,310) | 151,180,926 | 99.9 | |||||||||
| OTHER ASSETS & LIABILITIES, NET | 175,513 | 0.1 | ||||||||||
| NET ASSETS | $ | 151,356,439 | 100.0 | % | ||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| 24 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds | See notes to financial statements |
Portfolio of investments
Lifestyle Growth Fund ■ May 31, 2015
| % of net | ||||||||||||
| Shares | Security | Value | assets | |||||||||
| TIAA-CREF FUNDS — 99.7% (a) | ||||||||||||
| FIXED INCOME — 19.9% | ||||||||||||
| 1,389,448 | TIAA-CREF Bond Plus Fund | $ | 14,839,300 | 18.9 | % | |||||||
| 80,481 | TIAA-CREF High-Yield Fund | 803,201 | 1.0 | |||||||||
| TOTAL FIXED INCOME | 15,642,501 | 19.9 | ||||||||||
| INTERNATIONAL EQUITY — 24.7% | ||||||||||||
| 328,736 | TIAA-CREF Emerging Markets Equity Fund | 3,471,457 | 4.4 | |||||||||
| 509,656 | TIAA-CREF Enhanced International Equity Index Fund | 3,965,121 | 5.0 | |||||||||
| 108,872 | TIAA-CREF Global Natural Resources Fund | 933,035 | 1.2 | |||||||||
| 540,213 | TIAA-CREF International Equity Fund | 6,406,922 | 8.2 | |||||||||
| 407,940 | TIAA-CREF International Opportunities Fund | 4,646,442 | 5.9 | |||||||||
| TOTAL INTERNATIONAL EQUITY | 19,422,977 | 24.7 | ||||||||||
| SHORT-TERM FIXED INCOME — 0.0% | ||||||||||||
| 3,306 | * | TIAA-CREF Money Market Fund | 3,306 | 0.0 | ||||||||
| TOTAL SHORT-TERM FIXED INCOME | 3,306 | 0.0 | ||||||||||
| U.S. EQUITY — 55.1% | ||||||||||||
| 335,388 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 3,997,822 | 5.1 | |||||||||
| 352,412 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 3,700,328 | 4.7 | |||||||||
| 730,705 | TIAA-CREF Growth & Income Fund | 9,287,264 | 11.8 | |||||||||
| 702,128 | TIAA-CREF Large-Cap Growth Fund | 11,297,237 | 14.4 | |||||||||
| 564,312 | TIAA-CREF Large-Cap Value Fund | 10,473,631 | 13.3 | |||||||||
| 27,425 | TIAA-CREF Mid-Cap Growth Fund | 617,340 | 0.8 | |||||||||
| 21,403 | TIAA-CREF Mid-Cap Value Fund | 539,559 | 0.7 | |||||||||
| 187,308 | TIAA-CREF Small-Cap Equity Fund | 3,399,638 | 4.3 | |||||||||
| TOTAL U.S. EQUITY | 43,312,819 | 55.1 | ||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $71,654,493) | 78,381,603 | 99.7 | |||||||||
| TOTAL PORTFOLIO | (Cost $71,654,493) | 78,381,603 | 99.7 | |||||||||
| OTHER ASSETS & LIABILITIES, NET | 202,737 | 0.3 | ||||||||||
| NET ASSETS | $ | 78,584,340 | 100.0 | % | ||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| See notes to financial statements | TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 25 |
Portfolio of investments
Lifestyle Aggressive Growth Fund ■ May 31, 2015
| % of net | ||||||||||||
| Shares | Security | Value | assets | |||||||||
| TIAA-CREF FUNDS - 99.8% (a) | ||||||||||||
| INTERNATIONAL EQUITY — 30.7% | ||||||||||||
| 280,597 | TIAA-CREF Emerging Markets Equity Fund | $ | 2,963,104 | 5.4 | % | |||||||
| 445,552 | TIAA-CREF Enhanced International Equity Index Fund | 3,466,391 | 6.3 | |||||||||
| 95,502 | TIAA-CREF Global Natural Resources Fund | 818,455 | 1.5 | |||||||||
| 473,109 | TIAA-CREF International Equity Fund | 5,611,073 | 10.2 | |||||||||
| 355,908 | TIAA-CREF International Opportunities Fund | 4,053,797 | 7.3 | |||||||||
| TOTAL INTERNATIONAL EQUITY | 16,912,820 | 30.7 | ||||||||||
| SHORT-TERM FIXED INCOME — 0.0% | ||||||||||||
| 4,048 | * | TIAA-CREF Money Market Fund | 4,048 | 0.0 | ||||||||
| TOTAL SHORT-TERM FIXED INCOME | 4,048 | 0.0 | ||||||||||
| U.S. EQUITY — 69.1% | ||||||||||||
| 295,333 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 3,520,366 | 6.4 | |||||||||
| 311,770 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 3,273,584 | 5.9 | |||||||||
| 638,879 | TIAA-CREF Growth & Income Fund | 8,120,155 | 14.8 | |||||||||
| 614,907 | TIAA-CREF Large-Cap Growth Fund | 9,893,858 | 18.0 | |||||||||
| 491,393 | TIAA-CREF Large-Cap Value Fund | 9,120,254 | 16.6 | |||||||||
| 25,976 | TIAA-CREF Mid-Cap Growth Fund | 584,714 | 1.1 | |||||||||
| 20,298 | TIAA-CREF Mid-Cap Value Fund | 511,717 | 0.9 | |||||||||
| 165,281 | TIAA-CREF Small-Cap Equity Fund | 2,999,842 | 5.4 | |||||||||
| TOTAL U.S. EQUITY | 38,024,490 | 69.1 | ||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $47,486,609) | 54,941,358 | 99.8 | |||||||||
| TOTAL PORTFOLIO | (Cost $47,486,609) | 54,941,358 | 99.8 | |||||||||
| OTHER ASSETS & LIABILITIES, NET | 100,501 | 0.2 | ||||||||||
| NET ASSETS | $ | 55,041,859 | 100.0 | % | ||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| 26 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds | See notes to financial statements |
[This page intentionally left blank.]
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 27 |
Statements of assets and liabilities
TIAA-CREF Lifestyle Funds ■ May 31, 2015
| Lifestyle Income Fund | Lifestyle Conservative Fund | Lifestyle Moderate Fund | Lifestyle Growth Fund | Lifestyle Aggressive Growth Fund | |||||||||||||||||
| ASSETS | |||||||||||||||||||||
| Affiliated investments, at value‡ | $ | 55,500,436 | $ | 114,255,564 | $ | 151,180,926 | $ | 78,381,603 | $ | 54,941,358 | |||||||||||
| Cash | 58,152 | 283,848 | 246,937 | 175,757 | 148,823 | ||||||||||||||||
| Receivable from securities transactions | — | — | 74,075 | 30,935 | — | ||||||||||||||||
| Receivable from Fund shares sold | 20,406 | 22,882 | 63,787 | 146,447 | 77,454 | ||||||||||||||||
| Dividends and interest receivable | 78,857 | 132,682 | 140,751 | 37,538 | — | ||||||||||||||||
| Due from affiliates | 1,661 | 1,931 | 2,091 | 1,729 | 1,641 | ||||||||||||||||
| Other | 813 | 1,365 | 1,659 | 935 | 841 | ||||||||||||||||
| Total assets | 55,660,325 | 114,698,272 | 151,710,226 | 78,774,944 | 55,170,117 | ||||||||||||||||
| LIABILITIES | |||||||||||||||||||||
| Management fees payable | 762 | 1,566 | 2,076 | 1,077 | 756 | ||||||||||||||||
| Service agreement fees payable | 533 | 781 | 1,377 | 843 | 751 | ||||||||||||||||
| Distribution fees payable | 7,997 | 18,102 | 22,482 | 10,814 | 6,226 | ||||||||||||||||
| Due to affiliates | 313 | 580 | 663 | 322 | 299 | ||||||||||||||||
| Payable for securities transactions | 73,500 | 288,500 | 295,325 | 161,185 | 92,750 | ||||||||||||||||
| Payable for Fund shares redeemed | 8,971 | 7,000 | 5,898 | 198 | 13,300 | ||||||||||||||||
| Payable for trustee compensation | 877 | 1,489 | 1,846 | 1,021 | 902 | ||||||||||||||||
| Accrued expenses and other payables | 12,741 | 20,574 | 24,120 | 15,144 | 13,274 | ||||||||||||||||
| Total liabilities | 105,694 | 338,592 | 353,787 | 190,604 | 128,258 | ||||||||||||||||
| NET ASSETS | $ | 55,554,631 | $ | 114,359,680 | $ | 151,356,439 | $ | 78,584,340 | $ | 55,041,859 | |||||||||||
| NET ASSETS CONSIST OF: | |||||||||||||||||||||
| Paid-in-capital | $ | 53,670,392 | $ | 107,854,417 | $ | 139,784,985 | $ | 69,787,388 | $ | 45,792,263 | |||||||||||
| Undistributed net investment income (loss) | 121,098 | 191,278 | 184,357 | 83,818 | (40,640 | ) | |||||||||||||||
| Accumulated net realized gain (loss) on total investments | 295,424 | 1,549,314 | 2,969,481 | 1,986,024 | 1,835,487 | ||||||||||||||||
| Net unrealized appreciation (depreciation) on total investments | 1,467,717 | 4,764,671 | 8,417,616 | 6,727,110 | 7,454,749 | ||||||||||||||||
| NET ASSETS | $ | 55,554,631 | $ | 114,359,680 | $ | 151,356,439 | $ | 78,584,340 | $ | 55,041,859 | |||||||||||
| INSTITUTIONAL CLASS: | |||||||||||||||||||||
| Net assets | $ | 1,922,611 | $ | 4,021,485 | $ | 2,670,249 | $ | 2,082,962 | $ | 3,093,996 | |||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 174,146 | 331,654 | 201,486 | 146,826 | 204,384 | ||||||||||||||||
| Net asset value per share | $11.04 | $12.13 | $13.25 | $14.19 | $15.14 | ||||||||||||||||
| PREMIER CLASS: | |||||||||||||||||||||
| Net assets | $ | 1,217,407 | $ | 1,340,784 | $ | 1,467,665 | $ | 1,584,604 | $ | 1,698,784 | |||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 110,313 | 110,600 | 110,789 | 111,786 | 112,322 | ||||||||||||||||
| Net asset value per share | $11.04 | $12.12 | $13.25 | $14.18 | $15.12 | ||||||||||||||||
| RETIREMENT CLASS: | |||||||||||||||||||||
| Net assets | $ | 15,468,804 | $ | 22,851,677 | $ | 39,886,215 | $ | 24,526,584 | $ | 21,899,797 | |||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 1,401,776 | 1,886,365 | 3,012,964 | 1,733,138 | 1,450,688 | ||||||||||||||||
| Net asset value per share | $11.04 | $12.11 | $13.24 | $14.15 | $15.10 | ||||||||||||||||
| RETAIL CLASS: | |||||||||||||||||||||
| Net assets | $ | 36,945,809 | $ | 86,145,734 | $ | 107,332,310 | $ | 50,390,190 | $ | 28,349,282 | |||||||||||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 3,347,990 | 7,113,299 | 8,111,007 | 3,564,946 | 1,879,669 | ||||||||||||||||
| Net asset value per share | $11.04 | $12.11 | $13.23 | $14.13 | $15.08 | ||||||||||||||||
| ‡ | Affiliated investments, cost | $ | 54,032,719 | $ | 109,490,893 | $ | 142,763,310 | $ | 71,654,493 | $ | 47,486,609 | ||||||||||
| 28 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 29 |
TIAA-CREF Lifestyle Funds ■ For the year ended May 31, 2015
| Lifestyle Income Fund | Lifestyle Conservative Fund | Lifestyle Moderate Fund | Lifestyle Growth Fund | Lifestyle Aggressive Growth Fund | ||||||||||||||||
| INVESTMENT INCOME | ||||||||||||||||||||
| Dividends from affiliated investments | $ | 893,226 | $1,778,196 | $ | 2,321,811 | $ | 977,745 | $ | 627,360 | |||||||||||
| Total income | 893,226 | 1,778,196 | 2,321,811 | 977,745 | 627,360 | |||||||||||||||
| EXPENSES | ||||||||||||||||||||
| Management fees | 49,429 | 97,245 | 124,531 | 62,441 | 49,567 | |||||||||||||||
| Shareholder servicing — Institutional Class | 197 | 197 | 198 | 197 | 198 | |||||||||||||||
| Shareholder servicing — Premier Class | 114 | 123 | 114 | 153 | 114 | |||||||||||||||
| Shareholder servicing — Retirement Class | 33,617 | 51,671 | 89,206 | 48,611 | 50,891 | |||||||||||||||
| Shareholder servicing — Retail Class | 9,160 | 20,843 | 26,036 | 17,025 | 17,005 | |||||||||||||||
| Distribution fees — Premier Class | 1,775 | 1,943 | 2,116 | 2,265 | 2,413 | |||||||||||||||
| Distribution fees — Retail Class | 82,724 | 179,525 | 212,493 | 99,411 | 62,203 | |||||||||||||||
| Registration fees | 53,941 | 59,185 | 60,499 | 53,438 | 53,843 | |||||||||||||||
| Professional fees | 23,450 | 23,657 | 23,756 | 23,475 | 23,478 | |||||||||||||||
| Shareholder reports | 16,270 | 27,421 | 34,782 | 18,997 | 17,208 | |||||||||||||||
| Custody and accounting fees | 15,253 | 15,212 | 15,220 | 15,135 | 15,137 | |||||||||||||||
| Administrative service fees | 1,551 | 3,116 | 3,845 | 1,891 | 1,586 | |||||||||||||||
| Trustee fees and expenses | 461 | 878 | 1,156 | 590 | 467 | |||||||||||||||
| Other expenses | 8,535 | 11,123 | 12,293 | 9,627 | 7,662 | |||||||||||||||
| Total expenses | 296,477 | 492,139 | 606,245 | 353,256 | 301,772 | |||||||||||||||
| Less: Expenses reimbursed by the investment adviser | (120,606 | ) | (141,210 | ) | (153,042 | ) | (124,752 | ) | (119,908 | ) | ||||||||||
| Net expenses | 175,871 | 350,929 | 453,203 | 228,504 | 181,864 | |||||||||||||||
| Net investment income (loss) | 717,355 | 1,427,267 | 1,868,608 | 749,241 | 445,496 | |||||||||||||||
| NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS | ||||||||||||||||||||
| Realized gain (loss) from sale of affiliated investments | (51,472 | ) | (143,006 | ) | (369,374 | ) | (138,629 | ) | (158,983 | ) | ||||||||||
| Realized gain distributions from affiliated investments | 804,426 | 2,761,270 | 5,207,568 | 3,172,246 | 3,021,481 | |||||||||||||||
| Realized gain (loss) from sale of unaffiliated investments | (285 | ) | — | — | 4,178 | 3,495 | ||||||||||||||
| Net realized gain (loss) from investments | 752,669 | 2,618,264 | 4,838,194 | 3,037,795 | 2,865,993 | |||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | 70,928 | 625,863 | 1,576,472 | 1,106,861 | 949,541 | |||||||||||||||
| Net realized and unrealized gain (loss) from investments | 823,597 | 3,244,127 | 6,414,666 | 4,144,656 | 3,815,534 | |||||||||||||||
| Net increase (decrease) in net assets from operations | $ | 1,540,952 | $4,671,394 | $ | 8,283,274 | $ | 4,893,897 | $ | 4,261,030 | |||||||||||
| 30 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 31 |
Statements of changes in net assets
TIAA-CREF Lifestyle Funds ■ For the year ended
| Lifestyle Income Fund | Lifestyle Conservative Fund | Lifestyle Moderate Fund | ||||||||||||||||||||||||
| May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | |||||||||||||||||||||
| OPERATIONS | ||||||||||||||||||||||||||
| Net investment income (loss) | $ | 717,355 | $ | 464,220 | $ | 1,427,267 | $ | 812,580 | $ | 1,868,608 | $ | 1,005,733 | ||||||||||||||
| Net realized gain (loss) from investments | 752,669 | 546,081 | 2,618,264 | 1,649,539 | 4,838,194 | 2,828,156 | ||||||||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | 70,928 | 662,361 | 625,863 | 2,296,883 | 1,576,472 | 4,029,888 | ||||||||||||||||||||
| Net increase (decrease) in net assets from operations | 1,540,952 | 1,672,662 | 4,671,394 | 4,759,002 | 8,283,274 | 7,863,777 | ||||||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||||||||||
| From net investment income: | Institutional Class | (39,668 | ) | (34,957 | ) | (87,743 | ) | (61,731 | ) | (76,402 | ) | (62,701 | ) | |||||||||||||
| Premier Class | (24,362 | ) | (25,308 | ) | (30,882 | ) | (33,692 | ) | (38,593 | ) | (37,427 | ) | ||||||||||||||
| Retirement Class | (262,824 | ) | (175,812 | ) | (472,510 | ) | (333,883 | ) | (961,718 | ) | (642,842 | ) | ||||||||||||||
| Retail Class | (651,824 | ) | (379,800 | ) | (1,648,957 | ) | (870,628 | ) | (2,270,110 | ) | (1,195,290 | ) | ||||||||||||||
| From realized gains: | Institutional Class | (12,308 | ) | (14,161 | ) | (31,246 | ) | (20,727 | ) | (31,900 | ) | (17,602 | ) | |||||||||||||
| Premier Class | (8,095 | ) | (9,654 | ) | (11,832 | ) | (9,806 | ) | (16,784 | ) | (10,571 | ) | ||||||||||||||
| Retirement Class | (95,272 | ) | (76,597 | ) | (188,573 | ) | (114,947 | ) | (439,437 | ) | (195,743 | ) | ||||||||||||||
| Retail Class | (238,230 | ) | (169,340 | ) | (670,160 | ) | (305,112 | ) | (1,045,886 | ) | (365,708 | ) | ||||||||||||||
| Total distributions | (1,332,583 | ) | (885,629 | ) | (3,141,903 | ) | (1,750,526 | ) | (4,880,830 | ) | (2,527,884 | ) | ||||||||||||||
| SHAREHOLDER TRANSACTIONS | ||||||||||||||||||||||||||
| Subscriptions: | Institutional Class | 167,143 | 511,711 | 795,595 | 1,528,055 | 392,534 | 886,219 | |||||||||||||||||||
| Premier Class | 13,337 | 39,988 | 10,001 | 290,512 | — | 276,701 | ||||||||||||||||||||
| Retirement Class | 5,732,677 | 5,229,975 | 7,608,930 | 10,190,680 | 16,050,262 | 21,038,141 | ||||||||||||||||||||
| Retail Class | 15,115,569 | 15,195,298 | 40,239,539 | 37,468,503 | 47,410,351 | 46,627,570 | ||||||||||||||||||||
| Reinvestments of distributions: | Institutional Class | 51,976 | 49,118 | 118,989 | 82,458 | 108,302 | 80,303 | |||||||||||||||||||
| Premier Class | 32,457 | 34,962 | 42,714 | 43,498 | 55,377 | 47,998 | ||||||||||||||||||||
| Retirement Class | 358,096 | 252,409 | 661,083 | 448,830 | 1,401,155 | 838,585 | ||||||||||||||||||||
| Retail Class | 855,893 | 520,240 | 2,257,937 | 1,132,910 | 3,270,489 | 1,541,357 | ||||||||||||||||||||
| Redemptions: | Institutional Class | (16,269 | ) | (319,953 | ) | (61,631 | ) | (123,140 | ) | (400,487 | ) | (26,534 | ) | |||||||||||||
| Premier Class | — | (287,601 | ) | — | (929,708 | ) | — | (323,057 | ) | |||||||||||||||||
| Retirement Class | (1,670,985 | ) | (1,568,150 | ) | (3,761,578 | ) | (2,370,035 | ) | (11,142,210 | ) | (3,272,915 | ) | ||||||||||||||
| Retail Class | (5,372,510 | ) | (3,672,257 | ) | (13,549,340 | ) | (6,058,240 | ) | (11,326,701 | ) | (7,699,017 | ) | ||||||||||||||
| Net increase (decrease) from shareholder transactions | 15,267,384 | 15,985,740 | 34,362,239 | 41,704,323 | 45,819,072 | 60,015,351 | ||||||||||||||||||||
| Net increase (decrease) in net assets | 15,475,753 | 16,772,773 | 35,891,730 | 44,712,799 | 49,221,516 | 65,351,244 | ||||||||||||||||||||
| NET ASSETS | ||||||||||||||||||||||||||
| Beginning of period | 40,078,878 | 23,306,105 | 78,467,950 | 33,755,151 | 102,134,923 | 36,783,679 | ||||||||||||||||||||
| End of period | $ | 55,554,631 | $ | 40,078,878 | $ | 114,359,680 | $ | 78,467,950 | $ | 151,356,439 | $ | 102,134,923 | ||||||||||||||
| Undistributed net investment income (loss) included in net assets | $ | 121,098 | $ | 81,199 | $ | 191,278 | $ | 127,784 | $ | 184,357 | $ | 125,014 | ||||||||||||||
| CHANGE IN FUND SHARES | ||||||||||||||||||||||||||
| Shares sold: | Institutional Class | 15,235 | 46,900 | 67,080 | 129,368 | 30,464 | 70,765 | |||||||||||||||||||
| Premier Class | 1,205 | 3,758 | 850 | 25,254 | — | 23,091 | ||||||||||||||||||||
| Retirement Class | 522,296 | 484,069 | 635,261 | 881,499 | 1,231,181 | 1,691,824 | ||||||||||||||||||||
| Retail Class | 1,374,648 | 1,405,672 | 3,357,932 | 3,226,846 | 3,647,914 | 3,746,806 | ||||||||||||||||||||
| Shares reinvested: | Institutional Class | 4,776 | 4,579 | 10,068 | 7,127 | 8,478 | 6,465 | |||||||||||||||||||
| Premier Class | 2,983 | 3,261 | 3,616 | 3,772 | 4,339 | 3,868 | ||||||||||||||||||||
| Retirement Class | 32,927 | 23,515 | 55,984 | 38,825 | 109,860 | 67,462 | ||||||||||||||||||||
| Retail Class | 78,703 | 48,458 | 191,388 | 97,961 | 256,632 | 123,965 | ||||||||||||||||||||
| Shares redeemed: | Institutional Class | (1,487 | ) | (30,034 | ) | (5,166 | ) | (10,653 | ) | (31,239 | ) | (2,093 | ) | |||||||||||||
| Premier Class | — | (26,511 | ) | — | (78,549 | ) | — | (25,558 | ) | |||||||||||||||||
| Retirement Class | (151,979 | ) | (144,666 | ) | (315,579 | ) | (203,505 | ) | (855,698 | ) | (261,003 | ) | ||||||||||||||
| Retail Class | (489,365 | ) | (340,370 | ) | (1,131,382 | ) | (519,948 | ) | (872,441 | ) | (617,460 | ) | ||||||||||||||
| Net increase (decrease) from shareholder transactions | 1,389,942 | 1,478,631 | 2,870,052 | 3,597,997 | 3,529,490 | 4,828,132 | ||||||||||||||||||||
| 32 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 33 |
| Statements of changes in net assets | concluded |
TIAA-CREF Lifestyle Funds ■ For the year ended
| Lifestyle Growth Fund | Lifestyle Aggressive Growth Fund | |||||||||||||||||
| May 31, 2015 | May 31, 2014 | May 31, 2015 | May 31, 2014 | |||||||||||||||
| OPERATIONS | ||||||||||||||||||
| Net investment income (loss) | $ | 749,241 | $ | 408,967 | $ | 445,496 | $ | 260,613 | ||||||||||
| Net realized gain (loss) from investments | 3,037,795 | 2,000,188 | 2,865,993 | 2,314,411 | ||||||||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | 1,106,861 | 2,550,252 | 949,541 | 2,838,055 | ||||||||||||||
| Net increase (decrease) in net assets from operations | 4,893,897 | 4,959,407 | 4,261,030 | 5,413,079 | ||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||||
| From net investment income: | Institutional Class | (50,078 | ) | (51,855 | ) | (75,403 | ) | (73,339 | ) | |||||||||
| Premier Class | (38,693 | ) | (40,178 | ) | (40,130 | ) | (45,781 | ) | ||||||||||
| Retirement Class | (471,830 | ) | (377,035 | ) | (477,773 | ) | (483,608 | ) | ||||||||||
| Retail Class | (1,001,757 | ) | (589,584 | ) | (606,421 | ) | (483,075 | ) | ||||||||||
| From realized gains: | Institutional Class | (30,968 | ) | (27,111 | ) | (67,277 | ) | (44,827 | ) | |||||||||
| Premier Class | (25,217 | ) | (22,186 | ) | (37,720 | ) | (29,479 | ) | ||||||||||
| Retirement Class | (317,161 | ) | (210,158 | ) | (468,495 | ) | (312,993 | ) | ||||||||||
| Retail Class | (676,882 | ) | (331,556 | ) | (603,225 | ) | (317,739 | ) | ||||||||||
| Total distributions | (2,612,586 | ) | (1,649,663 | ) | (2,376,444 | ) | (1,790,841 | ) | ||||||||||
| SHAREHOLDER TRANSACTIONS | ||||||||||||||||||
| Subscriptions: | Institutional Class | 296,272 | 236,413 | 516,410 | 786,657 | |||||||||||||
| Premier Class | 5,000 | 39,535 | — | 256,301 | ||||||||||||||
| Retirement Class | 8,824,049 | 7,172,573 | 5,110,754 | 9,303,152 | ||||||||||||||
| Retail Class | 21,036,192 | 17,012,475 | 9,631,791 | 11,338,814 | ||||||||||||||
| Reinvestments of distributions: | Institutional Class | 81,046 | 78,966 | 142,680 | 118,166 | |||||||||||||
| Premier Class | 63,910 | 62,364 | 77,850 | 75,260 | ||||||||||||||
| Retirement Class | 788,991 | 587,193 | 946,268 | 796,601 | ||||||||||||||
| Retail Class | 1,663,779 | 912,941 | 1,197,845 | 789,212 | ||||||||||||||
| Redemptions: | Institutional Class | (139,678 | ) | (97,458 | ) | (238,345 | ) | (41,820 | ) | |||||||||
| Premier Class | — | (353,622 | ) | — | (515,576 | ) | ||||||||||||
| Retirement Class | (2,339,378 | ) | (2,397,551 | ) | (4,372,663 | ) | (2,813,367 | ) | ||||||||||
| Retail Class | (4,160,455 | ) | (2,207,171 | ) | (4,566,766 | ) | (2,755,449 | ) | ||||||||||
| Net increase (decrease) from shareholder transactions | 26,119,728 | 21,046,658 | 8,445,824 | 17,337,951 | ||||||||||||||
| Net increase (decrease) in net assets | 28,401,039 | 24,356,402 | 10,330,410 | 20,960,189 | ||||||||||||||
| NET ASSETS | ||||||||||||||||||
| Beginning of period | 50,183,301 | 25,826,899 | 44,711,449 | 23,751,260 | ||||||||||||||
| End of period | $ | 78,584,340 | $ | 50,183,301 | $ | 55,041,859 | $ | 44,711,449 | ||||||||||
| Undistributed net investment income (loss) included in net assets | $ | 83,818 | $ | 58,440 | $ | (40,640 | ) | $ | (37,682 | ) | ||||||||
| CHANGE IN FUND SHARES | ||||||||||||||||||
| Shares sold: | Institutional Class | 21,071 | 17,371 | 34,736 | 54,212 | |||||||||||||
| Premier Class | 359 | 3,058 | — | 18,149 | ||||||||||||||
| Retirement Class | 636,241 | 543,338 | 347,764 | 667,786 | ||||||||||||||
| Retail Class | 1,527,553 | 1,286,968 | 658,618 | 812,670 | ||||||||||||||
| Shares reinvested: | Institutional Class | 6,012 | 5,978 | 9,992 | 8,422 | |||||||||||||
| Premier Class | 4,741 | 4,721 | 5,452 | 5,364 | ||||||||||||||
| Retirement Class | 58,617 | 44,484 | 66,358 | 56,859 | ||||||||||||||
| Retail Class | 123,701 | 69,214 | 84,059 | 56,332 | ||||||||||||||
| Shares redeemed: | Institutional Class | (9,967 | ) | (7,210 | ) | (16,377 | ) | (2,952 | ) | |||||||||
| Premier Class | — | (27,537 | ) | — | (35,295 | ) | ||||||||||||
| Retirement Class | (170,094 | ) | (182,407 | ) | (301,471 | ) | (201,453 | ) | ||||||||||
| Retail Class | (301,644 | ) | (166,509 | ) | (312,960 | ) | (197,410 | ) | ||||||||||
| Net increase (decrease) from shareholder transactions | 1,896,590 | 1,591,469 | 576,171 | 1,242,684 | ||||||||||||||
| 34 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 35 |
TIAA-CREF Lifestyle Funds
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss | )a | gain (loss) on total investments | j | (loss) from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at end of period (in thousands | ) | Gross expenses | e | Net expenses | e | investment income (loss | ) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFESTYLE INCOME FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $11.00 | $0.19 | $0.17 | $0.36 | $(0.24 | ) | $(0.08 | ) | $(0.32 | ) | $11.04 | 3.34 | % | $1,923 | 0.35 | % | 0.10 | % | 1.69 | % | 13 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.76 | 0.19 | 0.38 | 0.57 | (0.24 | ) | (0.09 | ) | (0.33 | ) | 11.00 | 5.47 | 1,712 | 0.52 | 0.10 | 1.75 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.24 | 0.20 | 0.60 | 0.80 | (0.26 | ) | (0.02 | ) | (0.28 | ) | 10.76 | 7.86 | 1,444 | 0.82 | 0.10 | 1.88 | 21 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.09 | 0.21 | 0.30 | (0.06 | ) | — | (0.06 | ) | 10.24 | 2.95 | b | 1,030 | 2.98 | c | 0.10 | c | 1.81 | c | 3 | b | ||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 11.00 | 0.17 | 0.18 | 0.35 | (0.23 | ) | (0.08 | ) | (0.31 | ) | 11.04 | 3.18 | 1,217 | 0.50 | 0.25 | 1.54 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.76 | 0.18 | 0.38 | 0.56 | (0.23 | ) | (0.09 | ) | (0.32 | ) | 11.00 | 5.32 | 1,167 | 0.67 | 0.25 | 1.62 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.24 | 0.18 | 0.60 | 0.78 | (0.24 | ) | (0.02 | ) | (0.26 | ) | 10.76 | 7.71 | 1,352 | 0.96 | 0.25 | 1.74 | 21 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.08 | 0.21 | 0.29 | (0.05 | ) | — | (0.05 | ) | 10.24 | 2.91 | b | 1,065 | 3.13 | c | 0.25 | c | 1.66 | c | 3 | b | ||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 11.00 | 0.16 | 0.18 | 0.34 | (0.22 | ) | (0.08 | ) | (0.30 | ) | 11.04 | 3.09 | 15,469 | 0.59 | 0.35 | 1.46 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.76 | 0.16 | 0.39 | 0.55 | (0.22 | ) | (0.09 | ) | (0.31 | ) | 11.00 | 5.23 | 10,981 | 0.76 | 0.35 | 1.51 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.24 | 0.18 | 0.59 | 0.77 | (0.23 | ) | (0.02 | ) | (0.25 | ) | 10.76 | 7.56 | 6,840 | 1.05 | 0.35 | 1.65 | 21 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.08 | 0.21 | 0.29 | (0.05 | ) | — | (0.05 | ) | 10.24 | 2.88 | b | 4,127 | 2.83 | c | 0.35 | c | 1.56 | c | 3 | b | ||||||||||||||||||||||||||||||||||||
| Retail Class: | 5/31/15 | 11.00 | 0.16 | 0.17 | 0.33 | (0.21 | ) | (0.08 | ) | (0.29 | ) | 11.04 | 3.06 | 36,946 | 0.62 | 0.38 | 1.43 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 10.76 | 0.16 | 0.39 | 0.55 | (0.22 | ) | (0.09 | ) | (0.31 | ) | 11.00 | 5.20 | 26,218 | 0.79 | 0.38 | 1.48 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.23 | 0.17 | 0.60 | 0.77 | (0.22 | ) | (0.02 | ) | (0.24 | ) | 10.76 | 7.63 | 13,670 | 1.08 | 0.38 | 1.61 | 21 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.07 | 0.20 | 0.27 | (0.04 | ) | — | (0.04 | ) | 10.23 | 2.73 | b | 4,979 | 2.82 | c | 0.48 | c | 1.43 | c | 3 | b | ||||||||||||||||||||||||||||||||||||
| LIFESTYLE CONSERVATIVE FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | 11.95 | 0.20 | 0.40 | 0.60 | (0.31 | ) | (0.11 | ) | (0.42 | ) | 12.13 | 5.13 | 4,021 | 0.25 | 0.10 | 1.70 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.36 | 0.19 | 0.79 | 0.98 | (0.30 | ) | (0.09 | ) | (0.39 | ) | 11.95 | 8.82 | 3,103 | 0.37 | 0.10 | 1.66 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.29 | 0.21 | 1.12 | 1.33 | (0.25 | ) | (0.01 | ) | (0.26 | ) | 11.36 | 13.12 | 1,520 | 0.70 | 0.10 | 1.94 | 24 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.08 | 0.26 | 0.34 | (0.05 | ) | — | (0.05 | ) | 10.29 | 3.38 | b | 1,033 | 2.81 | c | 0.10 | c | 1.54 | c | 17 | b | ||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 11.95 | 0.19 | 0.38 | 0.57 | (0.29 | ) | (0.11 | ) | (0.40 | ) | 12.12 | 4.88 | 1,341 | 0.41 | 0.25 | 1.57 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.36 | 0.20 | 0.76 | 0.96 | (0.28 | ) | (0.09 | ) | (0.37 | ) | 11.95 | 8.66 | 1,268 | 0.52 | 0.25 | 1.69 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.28 | 0.20 | 1.13 | 1.33 | (0.24 | ) | (0.01 | ) | (0.25 | ) | 11.36 | 13.07 | 1,768 | 0.83 | 0.25 | 1.83 | 24 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.07 | 0.25 | 0.32 | (0.04 | ) | — | (0.04 | ) | 10.28 | 3.23 | b | 1,505 | 2.90 | c | 0.25 | c | 1.39 | c | 17 | b | ||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 11.94 | 0.18 | 0.38 | 0.56 | (0.28 | ) | (0.11 | ) | (0.39 | ) | 12.11 | 4.79 | 22,852 | 0.50 | 0.35 | 1.47 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.35 | 0.17 | 0.79 | 0.96 | (0.28 | ) | (0.09 | ) | (0.37 | ) | 11.94 | 8.59 | 18,039 | 0.61 | 0.35 | 1.49 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.28 | 0.19 | 1.12 | 1.31 | (0.23 | ) | (0.01 | ) | (0.24 | ) | 11.35 | 12.87 | 9,012 | 0.92 | 0.35 | 1.70 | 24 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.06 | 0.26 | 0.32 | (0.04 | ) | — | (0.04 | ) | 10.28 | 3.20 | b | 4,189 | 2.66 | c | 0.35 | c | 1.29 | c | 17 | b | ||||||||||||||||||||||||||||||||||||
| Retail Class: | 5/31/15 | 11.94 | 0.17 | 0.39 | 0.56 | (0.28 | ) | (0.11 | ) | (0.39 | ) | 12.11 | 4.77 | 86,146 | 0.52 | 0.38 | 1.45 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.35 | 0.17 | 0.78 | 0.95 | (0.27 | ) | (0.09 | ) | (0.36 | ) | 11.94 | 8.55 | 56,057 | 0.64 | 0.39 | 1.45 | 9 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.28 | 0.18 | 1.13 | 1.31 | (0.23 | ) | (0.01 | ) | (0.24 | ) | 11.35 | 12.86 | 21,456 | 0.96 | 0.38 | 1.64 | 24 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.06 | 0.26 | 0.32 | (0.04 | ) | — | (0.04 | ) | 10.28 | 3.16 | b | 5,624 | 2.65 | c | 0.47 | c | 1.18 | c | 17 | b | ||||||||||||||||||||||||||||||||||||
| 36 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 37 |
| Financial highlights | continued |
| TIAA-CREF Lifestyle Funds |
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss | )a | gain (loss) on total investments | j | (loss) from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at end of period (in thousands | ) | Gross expenses | e | Net expenses | e | investment income (loss | ) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFESTYLE MODERATE FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $12.93 | $0.23 | $0.63 | $0.86 | $(0.38 | ) | $(0.16 | ) | $(0.54 | ) | $13.25 | 6.81 | % | $2,670 | 0.23 | % | 0.10 | % | 1.78 | % | 13 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.96 | 0.21 | 1.23 | 1.44 | (0.37 | ) | (0.10 | ) | (0.47 | ) | 12.93 | 12.29 | 2,506 | 0.33 | 0.10 | 1.67 | 17 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.33 | 0.23 | 1.67 | 1.90 | (0.26 | ) | (0.01 | ) | (0.27 | ) | 11.96 | 18.60 | 1,419 | 0.69 | 0.10 | 2.04 | 34 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.06 | 0.31 | 0.37 | (0.04 | ) | — | (0.04 | ) | 10.33 | 3.69 | b | 1,037 | 2.77 | c | 0.10 | c | 1.28 | c | 11 | b | ||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 12.93 | 0.21 | 0.63 | 0.84 | (0.36 | ) | (0.16 | ) | (0.52 | ) | 13.25 | 6.65 | 1,468 | 0.38 | 0.25 | 1.59 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.95 | 0.20 | 1.24 | 1.44 | (0.36 | ) | (0.10 | ) | (0.46 | ) | 12.93 | 12.22 | 1,376 | 0.47 | 0.25 | 1.62 | 17 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.33 | 0.21 | 1.67 | 1.88 | (0.25 | ) | (0.01 | ) | (0.26 | ) | 11.95 | 18.33 | 1,256 | 0.83 | 0.25 | 1.90 | 34 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.06 | 0.31 | 0.37 | (0.04 | ) | — | (0.04 | ) | 10.33 | 3.65 | b | 1,036 | 2.92 | c | 0.25 | c | 1.13 | c | 11 | b | ||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 12.92 | 0.20 | 0.63 | 0.83 | (0.35 | ) | (0.16 | ) | (0.51 | ) | 13.24 | 6.56 | 39,886 | 0.47 | 0.35 | 1.52 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.95 | 0.18 | 1.24 | 1.42 | (0.35 | ) | (0.10 | ) | (0.45 | ) | 12.92 | 12.06 | 32,655 | 0.57 | 0.35 | 1.49 | 17 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.32 | 0.19 | 1.69 | 1.88 | (0.24 | ) | (0.01 | ) | (0.25 | ) | 11.95 | 18.35 | 12,300 | 0.92 | 0.35 | 1.72 | 34 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.05 | 0.30 | 0.35 | (0.03 | ) | — | (0.03 | ) | 10.32 | 3.52 | b | 4,244 | 2.63 | c | 0.35 | c | 1.03 | c | 11 | b | ||||||||||||||||||||||||||||||||||||
| Retail Class: | 5/31/15 | 12.92 | 0.19 | 0.63 | 0.82 | (0.35 | ) | (0.16 | ) | (0.51 | ) | 13.23 | 6.46 | 107,332 | 0.50 | 0.38 | 1.48 | 13 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.95 | 0.18 | 1.23 | 1.41 | (0.34 | ) | (0.10 | ) | (0.44 | ) | 12.92 | 12.01 | 65,598 | 0.61 | 0.39 | 1.43 | 17 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.32 | 0.19 | 1.68 | 1.87 | (0.23 | ) | (0.01 | ) | (0.24 | ) | 11.95 | 18.31 | 21,809 | 0.97 | 0.39 | 1.67 | 34 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.05 | 0.30 | 0.35 | (0.03 | ) | — | (0.03 | ) | 10.32 | 3.48 | b | 6,648 | 2.60 | c | 0.46 | c | 0.92 | c | 11 | b | ||||||||||||||||||||||||||||||||||||
| LIFESTYLE GROWTH FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | 13.75 | 0.20 | 0.86 | 1.06 | (0.38 | ) | (0.24 | ) | (0.62 | ) | 14.19 | 7.92 | 2,083 | 0.31 | 0.10 | 1.47 | 14 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.50 | 0.18 | 1.71 | 1.89 | (0.42 | ) | (0.22 | ) | (0.64 | ) | 13.75 | 15.28 | 1,783 | 0.47 | 0.10 | 1.37 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.32 | 0.21 | 2.20 | 2.41 | (0.22 | ) | (0.01 | ) | (0.23 | ) | 12.50 | 23.63 | 1,420 | 0.77 | 0.10 | 1.80 | 30 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.03 | 0.29 | 0.32 | (0.00 | )d | — | (0.00 | )d | 10.32 | 3.24 | b | 1,033 | 2.77 | c | 0.10 | c | 0.64 | c | 7 | b | ||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 13.74 | 0.18 | 0.86 | 1.04 | (0.36 | ) | (0.24 | ) | (0.60 | ) | 14.18 | 7.77 | 1,585 | 0.46 | 0.25 | 1.31 | 14 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.50 | 0.17 | 1.68 | 1.85 | (0.39 | ) | (0.22 | ) | (0.61 | ) | 13.74 | 15.01 | 1,465 | 0.62 | 0.25 | 1.28 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.32 | 0.18 | 2.22 | 2.40 | (0.21 | ) | (0.01 | ) | (0.22 | ) | 12.50 | 23.46 | 1,580 | 0.91 | 0.25 | 1.55 | 30 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.02 | 0.30 | 0.32 | (0.00 | )d | — | (0.00 | )d | 10.32 | 3.23 | b | 1,065 | 2.92 | c | 0.25 | c | 0.49 | c | 7 | b | ||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 13.72 | 0.17 | 0.85 | 1.02 | (0.35 | ) | (0.24 | ) | (0.59 | ) | 14.15 | 7.62 | 24,527 | 0.55 | 0.35 | 1.20 | 14 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.49 | 0.15 | 1.69 | 1.84 | (0.39 | ) | (0.22 | ) | (0.61 | ) | 13.72 | 14.91 | 16,575 | 0.71 | 0.35 | 1.14 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.31 | 0.16 | 2.23 | 2.39 | (0.20 | ) | (0.01 | ) | (0.21 | ) | 12.49 | 23.39 | 10,027 | 1.00 | 0.35 | 1.41 | 30 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.02 | 0.29 | 0.31 | (0.00 | )d | — | (0.00 | )d | 10.31 | 3.13 | b | 4,203 | 2.63 | c | 0.35 | c | 0.39 | c | 7 | b | ||||||||||||||||||||||||||||||||||||
| Retail Class: | 5/31/15 | 13.70 | 0.16 | 0.86 | 1.02 | (0.35 | ) | (0.24 | ) | (0.59 | ) | 14.13 | 7.61 | 50,390 | 0.59 | 0.39 | 1.18 | 14 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.48 | 0.14 | 1.69 | 1.83 | (0.39 | ) | (0.22 | ) | (0.61 | ) | 13.70 | 14.81 | 30,360 | 0.76 | 0.41 | 1.07 | 16 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.31 | 0.16 | 2.22 | 2.38 | (0.20 | ) | (0.01 | ) | (0.21 | ) | 12.48 | 23.26 | 12,800 | 1.06 | 0.40 | 1.40 | 30 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.01 | 0.30 | 0.31 | (0.00 | )d | — | (0.00 | )d | 10.31 | 3.12 | b | 5,249 | 2.63 | c | 0.48 | c | 0.27 | c | 7 | b | ||||||||||||||||||||||||||||||||||||
| 38 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 39 |
| Financial highlights | concluded |
| TIAA-CREF Lifestyle Funds |
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss | )a | gain (loss) on total investments | j | (loss) from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at end of period (in thousands | ) | Gross expenses | e | Net expenses | e | investment income (loss | ) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||
| LIFESTYLE AGGRESSIVE GROWTH FUND | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $14.60 | $0.17 | $1.12 | $1.29 | $(0.40 | ) | $(0.35 | ) | $(0.75 | ) | $15.14 | 9.13 | % | $3,094 | 0.35 | % | 0.10 | % | 1.18 | % | 14 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.01 | 0.13 | 2.23 | 2.36 | (0.48 | ) | (0.29 | ) | (0.77 | ) | 14.60 | 18.34 | 2,570 | 0.49 | 0.10 | 0.91 | 24 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.29 | 0.17 | 2.74 | 2.91 | (0.18 | ) | (0.01 | ) | (0.19 | ) | 13.01 | 28.51 | 1,514 | 0.82 | 0.10 | 1.48 | 29 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | 0.00 | d | 0.29 | 0.29 | — | — | — | 10.29 | 2.90 | b | 1,029 | 2.79 | c | 0.10 | c | 0.01 | c | 2 | b | |||||||||||||||||||||||||||||||||||||
| Premier Class: | 5/31/15 | 14.59 | 0.15 | 1.11 | 1.26 | (0.38 | ) | (0.35 | ) | (0.73 | ) | 15.12 | 8.92 | 1,699 | 0.50 | 0.25 | 1.01 | 14 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 13.00 | 0.15 | 2.18 | 2.33 | (0.45 | ) | (0.29 | ) | (0.74 | ) | 14.59 | 18.16 | 1,559 | 0.64 | 0.25 | 1.09 | 24 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.28 | 0.15 | 2.75 | 2.90 | (0.17 | ) | (0.01 | ) | (0.18 | ) | 13.00 | 28.36 | 1,543 | 0.95 | 0.25 | 1.28 | 29 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | (0.01 | ) | 0.29 | 0.28 | — | — | — | 10.28 | 2.80 | b | 1,038 | 2.94 | c | 0.25 | c | (0.14 | )c | 2 | b | |||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 14.56 | 0.13 | 1.12 | 1.25 | (0.36 | ) | (0.35 | ) | (0.71 | ) | 15.10 | 8.89 | 21,900 | 0.59 | 0.35 | 0.89 | 14 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.99 | 0.11 | 2.20 | 2.31 | (0.45 | ) | (0.29 | ) | (0.74 | ) | 14.56 | 18.00 | 19,483 | 0.73 | 0.35 | 0.77 | 24 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.28 | 0.12 | 2.76 | 2.88 | (0.16 | ) | (0.01 | ) | (0.17 | ) | 12.99 | 28.19 | 10,585 | 1.05 | 0.35 | 1.04 | 29 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | (0.01 | ) | 0.29 | 0.28 | — | — | — | 10.28 | 2.80 | b | 4,224 | 2.65 | c | 0.35 | c | (0.24 | )c | 2 | b | |||||||||||||||||||||||||||||||||||||
| Retail Class: | 5/31/15 | 14.55 | 0.13 | 1.10 | 1.23 | (0.35 | ) | (0.35 | ) | (0.70 | ) | 15.08 | 8.79 | 28,349 | 0.66 | 0.42 | 0.87 | 14 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 12.99 | 0.10 | 2.19 | 2.29 | (0.44 | ) | (0.29 | ) | (0.73 | ) | 14.55 | 17.86 | 21,100 | 0.82 | 0.44 | 0.71 | 24 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 10.27 | 0.13 | 2.75 | 2.88 | (0.15 | ) | (0.01 | ) | (0.16 | ) | 12.99 | 28.21 | 10,109 | 1.12 | 0.42 | 1.09 | 29 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | ‡ | 10.00 | (0.02 | ) | 0.29 | 0.27 | — | — | — | 10.27 | 2.70 | b | 5,039 | 2.66 | c | 0.49 | c | (0.37 | )c | 2 | b | |||||||||||||||||||||||||||||||||||||
| a | Based on average shares outstanding. |
| b | The percentages shown for this period are not annualized. |
| c | The percentages shown for this period are annualized. |
| d | Amount represents less than $0.01 per share. |
| e | The Fund’s expenses do not include the expenses of the Underlying Funds. |
| j | Short-term capital gains distributions are presented in net realized and unrealized gain (loss) on total investments for all periods presented. |
| ‡ | The Fund commenced operations on December 9, 2011. |
| 40 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds | See notes to financial statements | See notes to financial statements | TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 41 |
TIAA-CREF Lifestyle Funds
Note 1—organization and significant accounting policies
The Lifestyle Funds (collectively the “Funds,” each individually referred to as a “Fund”) are a sub-family of mutual funds offered by the TIAA-CREF Funds (the “Trust”), a Delaware statutory trust, that is registered with the Securities and Exchange Commission (“Commission”) under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company.
Each Fund is a “fund of funds” that diversifies its assets by investing in Institutional Class shares of other funds of the Trust and potentially other investment pools or investment products. The Funds offer their shares, without a sales load, through their principal underwriter, Teachers Personal Investors Services, Inc. (“TPIS”), which is a wholly owned indirect subsidiary of Teachers Insurance and Annuity Association of America (“TIAA”). Teachers Advisors, Inc. (“Advisors”), a wholly owned indirect subsidiary of TIAA, is registered with the Commission as an investment adviser and provides investment management services for the Funds. The Funds offer Institutional, Premier, Retirement and Retail Classes of shares. Each class differs by the allocation of class-specific expenses and voting rights in matters affecting a single class.
The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from those estimates. The Funds are investment companies and follow the accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services—Investment Companies. The Net Asset Value (“NAV”) for financial reporting purposes may differ from the NAV for processing transactions. The NAV for financial reporting purposes includes security and shareholder transactions through the date of the report. Total return is computed based on the NAV used for processing transactions. The following is a summary of the significant accounting policies consistently followed by the Funds.
Security valuation: The Funds’ investments in securities are recorded at their estimated fair value as described in the valuation of investments note to the financial statements.
Investments and investment income: Securities transactions are accounted for as of the trade date for financial reporting purposes. Dividends from investments are recorded on the ex-dividend date. Dividends from investments are recorded as dividend income, while capital gain distributions, including short-term capital gain distributions, are recorded as gain distributions from investments on the Statements of Operations. Realized gains and losses on sales from investments in investment companies are based upon the specific identification method.
Income, expenses, realized gains and losses and unrealized appreciation and depreciation of a Fund are allocated on a pro rata basis to each class of shares, except for service agreement fees, distribution fees and transfer agency fees and expenses, which are unique to each class of shares. Most expenses of the Trust can be directly
| 42 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
attributed to a fund. Expenses that cannot be directly attributed are allocated to each fund in the Trust based upon the average net assets of each fund.
Distributions to shareholders: Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date.
Income taxes: Each Fund is treated separately for income tax purposes. The Funds intend to continue to qualify as regulated investment companies under Subchapter M of the Internal Revenue Code (“Code”) and will not be subject to income taxes to the extent that they distribute all taxable income each year and comply with various other Code requirements. The Funds file income tax returns in U.S. federal and applicable state and local jurisdictions. A fund’s federal income tax returns are generally subject to examination for a period of three fiscal years after filed. State and local tax returns may be subject to examination for an additional period of time depending on the jurisdiction. Management has analyzed the Funds’ tax positions taken for all open federal income tax years and has concluded that no provision for federal income tax is required in the Funds’ financial statements.
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. GAAP. Reclassifications are made to a Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.
For the year ended May 31, 2015, permanent book and tax differences resulting primarily from the reclassification of short-term capital gain distributions received from underlying funds from realized gain(loss) to ordinary income, dividend reclassifications, and the utilization of tax equalization credits were identified and reclassified among the components of the Funds’ net assets. Net investment income and net realized gains (losses), as disclosed on the Statements of Operations, and net assets were not affected by these reclassifications.
Trustee compensation: The Funds pay the members of the Board of Trustees (“Board”), all of whom are independent, certain remuneration for their services, plus travel and other expenses. Trustees may elect to participate in a deferred compensation plan and defer all or a portion of their compensation. In addition, trustees participate in a long-term compensation plan. Amounts deferred are retained by the Funds until paid. Amounts payable to the trustees for compensation are included in the accompanying Statements of Assets and Liabilities. Trustees’ fees, including any deferred and long-term compensation incurred, are reflected in the Statements of Operations.
Note 2—valuation of investments
Portfolio investments are valued at fair value utilizing various valuation methods approved by the Board. U.S. GAAP establishes a hierarchy that prioritizes market inputs to valuation methods. The three levels of inputs are:
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 43 |
Notes to financial statements
| • | Level 1 – quoted prices in active markets for identical securities |
| • | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.) |
| • | Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
A description of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value follows:
Investments in registered investment companies: These investments are valued at their net asset value on the valuation date. These investments are categorized in Level 1 of the fair value hierarchy.
Transfers between levels are recognized at the end of the reporting period. For the year ended May 31, 2015, there were no transfers between levels by the Funds.
As of May 31, 2015, all of the investments in the Funds were valued based on Level 1 inputs.
Note 3—investment adviser and affiliates
Under the terms of its Investment Management Agreement, each Fund pays Advisors a monthly fee based on the annual rate of 0.10% of the Fund’s average daily net assets for the management of the Fund’s investment portfolio. The Funds have entered into an Administrative Service Agreement with Advisors under which the Funds pay Advisors for its costs in providing certain administrative and compliance services to the Funds.
Under the terms of a Retirement Class Service Agreement with respect to each Fund, the Retirement Class of the Fund pays Advisors a monthly fee based on the annual rate of 0.25% of a Fund’s average daily net assets attributable to Retirement Class shares of a Fund for providing certain administrative services related to the maintenance of Retirement Class shares on retirement plan or other platforms. Substantially all of the Retirement Class shareholder servicing fees reported on the Statements of Operations are paid to Advisors under the Service Agreement. Under the terms of a distribution Rule 12b-1 plan, the Premier Class and the Retail Class of each Fund compensates TPIS for providing distribution, promotional and/or shareholder services to the Premier Class and Retail Class of the Fund at the annual rate of 0.15% and 0.25% of the average daily net assets attributable to the Fund’s Premier Class and Retail Class, respectively.
| 44 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
continued
Advisors has agreed to reimburse each Fund if its total expense ratio (excluding interest, taxes, brokerage commissions and other transactional expenses, acquired fund fees and expenses and extraordinary expenses) exceeds 0.10% of average daily net assets for the Institutional Class shares; 0.25% of average daily net assets for the Premier Class shares; 0.35% of average daily net assets for the Retirement Class shares; and 0.49% of average daily net assets for the Retail Class shares. The expense reimbursement arrangements will continue through at least September 30, 2015, unless changed with the approval of the Board.
At the commencement of operations of each Fund, TIAA, an affiliate, invested in each Fund. The following is the percentage of the Funds’ shares owned by TIAA as of May 31, 2015:
| Fund | TIAA | |||
| Lifestyle Income | 22 | % | ||
| Lifestyle Conservative | 12 | |||
| Lifestyle Moderate | 7 | |||
| Lifestyle Growth | 20 | |||
| Lifestyle Aggressive Growth | 31 | |||
Investments in other investment companies advised by Advisors are deemed to be affiliated investments. The Funds invest their assets in Institutional Class shares of the affiliated TIAA-CREF Funds. Information regarding transactions with affiliated companies is as follows:
| Value at | Purchase | Sales | Realized | Dividend | Value at | |||||||||||||||||||
| Issue | May 31, 2014 | cost | proceeds | gain (loss | )a | income | May 31, 2015 | |||||||||||||||||
| Lifestyle Income Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond | $ | 7,200,882 | $ | 4,707,559 | $ | 1,370,572 | $ | 70,813 | $ | 221,891 | $ | 10,536,070 | ||||||||||||
| TIAA-CREF Bond Plus | 7,992,250 | 3,794,345 | 693,608 | 119,612 | 265,085 | 11,035,052 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 603,474 | 360,613 | 223,445 | (17,331 | ) | 9,693 | 700,071 | |||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 419,568 | 376,442 | 61,659 | 14,522 | 18,486 | 708,588 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 510,092 | 272,629 | 136,852 | 52,317 | 5,886 | 671,160 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 492,875 | 277,671 | 147,548 | 48,422 | 7,848 | 617,951 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 130,749 | 95,007 | 33,296 | (5,215 | ) | 2,800 | 165,574 | |||||||||||||||||
| TIAA-CREF Growth & Income | 1,186,424 | 580,731 | 162,422 | 121,696 | 16,222 | 1,655,285 | ||||||||||||||||||
| TIAA-CREF High-Yield | 796,759 | 628,308 | 850,273 | (3,066 | ) | 20,573 | 565,614 | |||||||||||||||||
| TIAA-CREF International Equity | 787,186 | 870,021 | 474,008 | (101 | ) | 17,113 | 1,223,092 | |||||||||||||||||
| TIAA-CREF International Opportunities | 672,666 | 331,701 | 212,138 | (2,566 | ) | 8,365 | 827,472 | |||||||||||||||||
| TIAA-CREF Large-Cap Growth | 1,417,557 | 976,330 | 473,587 | 194,072 | 5,276 | 2,012,844 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 1,365,362 | 653,504 | 203,985 | 77,817 | 30,017 | 1,866,212 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 38,628 | 53,572 | 21,370 | 5,953 | 218 | 70,314 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 28,512 | 33,538 | 9,151 | 1,591 | 547 | 54,659 | ||||||||||||||||||
| TIAA-CREF Money Market | 2,993 | — | — | — | — | 2,993 | ||||||||||||||||||
| TIAA-CREF Short-Term Bond | 15,927,872 | 7,321,546 | 965,894 | 12,019 | 259,232 | 22,176,351 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 430,445 | 404,173 | 221,196 | 62,399 | 3,974 | 611,134 | ||||||||||||||||||
| $ | 40,004,294 | $ | 21,737,690 | $ | 6,261,004 | $ | 752,954 | $ | 893,226 | $ | 55,500,436 | |||||||||||||
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 45 |
Notes to financial statements
| Value at | Purchase | Sales | Realized | Dividend | Value at | |||||||||||||||||||
| Issue | May 31, 2014 | cost | proceeds | gain (loss | )a | income | May 31, 2015 | |||||||||||||||||
| Lifestyle Conservative Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond | $ | 6,267,190 | $ | 6,341,696 | $ | 2,334,455 | $ | 73,770 | $ | 209,973 | $ | 10,281,719 | ||||||||||||
| TIAA-CREF Bond Plus | 23,367,610 | 12,517,387 | 1,556,944 | 347,165 | 782,473 | 34,166,169 | ||||||||||||||||||
| TIAA-CREF Emerging Markets Equity | 1,913,523 | 1,264,306 | 194,105 | (20,168 | ) | 30,164 | 2,868,128 | |||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 1,826,544 | 1,341,899 | 132,096 | 70,092 | 79,149 | 2,905,381 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 2,114,162 | 1,296,393 | 766,669 | 212,925 | 26,607 | 2,751,095 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 2,043,161 | 1,255,308 | 729,025 | 190,960 | 35,941 | 2,535,443 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 513,250 | 344,401 | 69,668 | (12,148 | ) | 10,715 | 679,681 | |||||||||||||||||
| TIAA-CREF Growth & Income | 4,619,489 | 2,552,659 | 587,666 | 475,247 | 63,783 | 6,788,855 | ||||||||||||||||||
| TIAA-CREF High-Yield | 1,561,905 | 1,300,580 | 1,678,142 | (8,739 | ) | 40,733 | 1,165,973 | |||||||||||||||||
| TIAA-CREF International Equity | 3,060,230 | 2,628,195 | 763,130 | (33,090 | ) | 58,419 | 5,034,350 | |||||||||||||||||
| TIAA-CREF International Opportunities | 2,493,181 | 1,194,438 | 431,381 | (8,301 | ) | 30,694 | 3,392,743 | |||||||||||||||||
| TIAA-CREF Large-Cap Growth | 5,513,932 | 3,597,423 | 1,271,488 | 739,227 | 19,990 | 8,246,311 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 5,340,590 | 2,679,567 | 567,418 | 290,966 | 115,278 | 7,648,592 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 210,397 | 171,727 | 93,391 | 32,110 | 1,167 | 285,197 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 170,964 | 149,468 | 102,946 | 14,164 | 3,008 | 226,064 | ||||||||||||||||||
| TIAA-CREF Money Market | 4,722 | — | — | — | — | 4,722 | ||||||||||||||||||
| TIAA-CREF Short-Term Bond | 15,631,526 | 8,177,242 | 939,760 | 12,569 | 255,023 | 22,765,641 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 1,685,808 | 1,405,023 | 564,905 | 241,515 | 15,079 | 2,509,500 | ||||||||||||||||||
| $ | 78,338,184 | $ | 48,217,712 | $ | 12,783,189 | $ | 2,618,264 | $ | 1,778,196 | $ | 114,255,564 | |||||||||||||
| Lifestyle Moderate Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Plus | $ | 38,707,494 | $ | 25,320,058 | $ | 5,066,784 | $ | 581,193 | $ | 1,311,405 | $ | 58,693,339 | ||||||||||||
| TIAA-CREF Emerging Markets Equity | 3,453,727 | 2,297,345 | 311,997 | (28,066 | ) | 54,436 | 5,246,545 | |||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 3,680,683 | 2,634,346 | 302,149 | 146,333 | 160,131 | 5,757,794 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 4,073,689 | 2,340,240 | 935,450 | 394,427 | 53,545 | 5,681,368 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 3,944,367 | 2,280,898 | 901,525 | 379,780 | 72,417 | 5,252,833 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 995,088 | 729,325 | 168,268 | (25,056 | ) | 21,273 | 1,354,249 | |||||||||||||||||
| TIAA-CREF Growth & Income | 8,976,999 | 4,967,281 | 862,508 | 906,532 | 121,993 | 13,467,074 | ||||||||||||||||||
| TIAA-CREF High-Yield | 2,028,178 | 1,672,345 | 2,131,670 | (11,458 | ) | 52,218 | 1,546,792 | |||||||||||||||||
| TIAA-CREF International Equity | 5,942,807 | 4,499,903 | 1,113,573 | (27,051 | ) | 109,811 | 9,541,996 | |||||||||||||||||
| TIAA-CREF International Opportunities | 4,757,631 | 2,500,590 | 818,988 | (22,899 | ) | 58,832 | 6,728,451 | |||||||||||||||||
| TIAA-CREF Large-Cap Growth | 10,724,422 | 6,660,056 | 1,782,742 | 1,391,585 | 39,057 | 16,374,656 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 10,376,182 | 5,272,234 | 852,538 | 561,465 | 225,817 | 15,171,643 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 549,122 | 363,446 | 130,248 | 83,637 | 3,041 | 774,729 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 471,155 | 270,329 | 95,902 | 27,797 | 8,274 | 671,942 | ||||||||||||||||||
| TIAA-CREF Money Market | 6,346 | — | — | — | — | 6,346 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 3,265,227 | 2,532,542 | 845,885 | 479,975 | 29,561 | 4,911,169 | ||||||||||||||||||
| $ | 101,953,117 | $ | 64,340,938 | $ | 16,320,227 | $ | 4,838,194 | $ | 2,321,811 | $ | 151,180,926 | |||||||||||||
| 46 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
continued
| Value at | Purchase | Sales | Realized | Dividend | Value at | |||||||||||||||||||
| Issue | May 31, 2014 | cost | proceeds | gain (loss | )a | income | May 31, 2015 | |||||||||||||||||
| Lifestyle Growth Fund | ||||||||||||||||||||||||
| TIAA-CREF Bond Plus | $ | 8,992,716 | $ | 7,526,719 | $ | 1,612,869 | $ | 144,312 | $ | 321,988 | $ | 14,839,300 | ||||||||||||
| TIAA-CREF Emerging Markets Equity | 2,159,856 | 1,563,813 | 135,008 | (8,302 | ) | 34,088 | 3,471,457 | |||||||||||||||||
| TIAA-CREF Enhanced International Equity Index | 2,459,587 | 1,821,855 | 145,226 | 99,610 | 106,627 | 3,965,121 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 2,663,455 | 1,577,328 | 380,668 | 257,734 | 35,448 | 3,997,822 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 2,572,429 | 1,543,860 | 370,717 | 258,411 | 48,052 | 3,700,328 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 653,308 | 497,420 | 85,658 | (12,468 | ) | 13,958 | 933,035 | |||||||||||||||||
| TIAA-CREF Growth & Income | 5,874,334 | 3,425,069 | 279,392 | 598,391 | 81,721 | 9,287,264 | ||||||||||||||||||
| TIAA-CREF High-Yield | 989,284 | 896,146 | 1,070,413 | (6,031 | ) | 26,255 | 803,201 | |||||||||||||||||
| TIAA-CREF International Equity | 3,886,128 | 2,840,986 | 454,673 | (11,112 | ) | 70,342 | 6,406,922 | |||||||||||||||||
| TIAA-CREF International Opportunities | 3,080,114 | 1,731,891 | 367,014 | (9,327 | ) | 38,180 | 4,646,442 | |||||||||||||||||
| TIAA-CREF Large-Cap Growth | 7,005,224 | 4,518,504 | 754,674 | 940,855 | 25,618 | 11,297,237 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 6,788,966 | 3,710,019 | 281,047 | 372,345 | 147,693 | 10,473,631 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 405,355 | 273,415 | 57,535 | 64,820 | 2,235 | 617,340 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 354,533 | 209,500 | 44,622 | 20,437 | 6,210 | 539,559 | ||||||||||||||||||
| TIAA-CREF Money Market | 3,306 | — | — | — | — | 3,306 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 2,145,971 | 1,614,392 | 332,596 | 323,942 | 19,330 | 3,399,638 | ||||||||||||||||||
| $ | 50,034,566 | $ | 33,750,917 | $ | 6,372,112 | $ | 3,033,617 | $ | 977,745 | $ | 78,381,603 | |||||||||||||
| Lifestyle Aggressive Growth Fund | ||||||||||||||||||||||||
| TIAA-CREF Emerging Markets Equity | $ | 2,348,330 | $ | 1,024,897 | $ | 277,319 | $ | (24,524 | ) | $ | 33,249 | $ | 2,963,104 | |||||||||||
| TIAA-CREF Enhanced International Equity Index | 2,769,296 | 1,182,758 | 276,670 | 84,736 | 107,407 | 3,466,391 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 2,959,829 | 1,001,378 | 576,737 | 272,002 | 35,741 | 3,520,366 | ||||||||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 2,862,070 | 981,876 | 525,527 | 263,963 | 48,161 | 3,273,584 | ||||||||||||||||||
| TIAA-CREF Global Natural Resources | 727,936 | 358,698 | 132,483 | (20,683 | ) | 13,611 | 818,455 | |||||||||||||||||
| TIAA-CREF Growth & Income | 6,537,160 | 2,157,917 | 831,369 | 599,964 | 81,990 | 8,120,155 | ||||||||||||||||||
| TIAA-CREF International Equity | 4,332,253 | 2,046,104 | 805,760 | (43,121 | ) | 69,006 | 5,611,073 | |||||||||||||||||
| TIAA-CREF International Opportunities | 3,419,404 | 947,791 | 455,472 | (16,280 | ) | 37,875 | 4,053,797 | |||||||||||||||||
| TIAA-CREF Large-Cap Growth | 7,821,384 | 2,868,708 | 1,316,195 | 966,343 | 25,569 | 9,893,858 | ||||||||||||||||||
| TIAA-CREF Large-Cap Value | 7,573,903 | 1,999,177 | 694,638 | 366,029 | 146,418 | 9,120,254 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Growth | 482,691 | 177,295 | 69,386 | 68,123 | 2,396 | 584,714 | ||||||||||||||||||
| TIAA-CREF Mid-Cap Value | 425,401 | 127,629 | 62,330 | 21,995 | 6,645 | 511,717 | ||||||||||||||||||
| TIAA-CREF Money Market | 4,048 | — | — | — | — | 4,048 | ||||||||||||||||||
| TIAA-CREF Small-Cap Equity | 2,389,618 | 1,040,261 | 393,126 | 323,951 | 19,292 | 2,999,842 | ||||||||||||||||||
| $ | 44,653,323 | $ | 15,914,489 | $ | 6,417,012 | $ | 2,862,498 | $ | 627,360 | $ | 54,941,358 | |||||||||||||
| a | Includes realized gain distributions received. |
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 47 |
Notes to financial statements
Note 4—investments
Net unrealized appreciation (depreciation): At May 31, 2015, net unrealized appreciation (depreciation) based on the aggregate cost of portfolio investments for federal income tax purposes, consisting of gross unrealized appreciation and gross unrealized depreciation was as follows:
| Gross | Gross | Net unrealized | ||||||||||||||
| unrealized | unrealized | appreciation | ||||||||||||||
| Fund | Tax cost | appreciation | (depreciation | ) | (depreciation) | |||||||||||
| Lifestyle Income | $ | 54,194,383 | $1,370,344 | $ (64,291 | ) | $1,306,053 | ||||||||||
| Lifestyle Conservative | 109,769,862 | 4,628,886 | (143,184 | ) | 4,485,702 | |||||||||||
| Lifestyle Moderate | 143,278,494 | 8,037,802 | (135,370 | ) | 7,902,432 | |||||||||||
| Lifestyle Growth | 71,930,539 | 6,541,162 | (90,098 | ) | 6,451,064 | |||||||||||
| Lifestyle Aggressive Growth | 47,823,715 | 7,200,059 | (82,416 | ) | 7,117,643 | |||||||||||
Purchases and sales: Purchases and sales of securities (other than short-term instruments) for all of the Funds for the year ended May 31, 2015 were as follows:
| Fund | Purchases | Sales | ||||||
| Lifestyle Income | $ | 22,063,309 | $ | 6,586,338 | ||||
| Lifestyle Conservative | 48,217,712 | 12,783,189 | ||||||
| Lifestyle Moderate | 64,340,938 | 16,320,227 | ||||||
| Lifestyle Growth | 35,929,411 | 8,554,784 | ||||||
| Lifestyle Aggressive Growth | 16,624,009 | 7,130,027 | ||||||
Note 5—distributions to shareholders and other tax items
The tax character of distributions paid to shareholders during the years ended May 31, 2015 and May 31, 2014 was as follows:
| 5/31/2015 | ||||||||||||
| Ordinary | Long-term | |||||||||||
| Fund | income | capital gains | Total | |||||||||
| Lifestyle Income | $ | 982,833 | $ | 349,750 | $ | 1,332,583 | ||||||
| Lifestyle Conservative | 2,254,892 | 887,011 | 3,141,903 | |||||||||
| Lifestyle Moderate | 3,354,446 | 1,526,384 | 4,880,830 | |||||||||
| Lifestyle Growth | 1,571,319 | 1,041,267 | 2,612,586 | |||||||||
| Lifestyle Aggressive Growth | 1,222,031 | 1,154,413 | 2,376,444 | |||||||||
| 5/31/2014 | ||||||||||||
| Ordinary | Long-term | |||||||||||
| Fund | income | capital gains | Total | |||||||||
| Lifestyle Income | $ | 618,920 | $266,709 | $ | 885,629 | |||||||
| Lifestyle Conservative | 1,303,180 | 447,346 | 1,750,526 | |||||||||
| Lifestyle Moderate | 1,947,286 | 580,598 | 2,527,884 | |||||||||
| Lifestyle Growth | 1,071,717 | 577,946 | 1,649,663 | |||||||||
| Lifestyle Aggressive Growth | 1,093,062 | 697,779 | 1,790,841 | |||||||||
| 48 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
concluded
As of May 31, 2015, the components of accumulated earnings on a tax basis were as follows:
| Undistributed | Undistributed | Unrealized | ||||||||||||||||||
| ordinary | long-term | appreciation | Late-year | |||||||||||||||||
| Fund | income | capital gains | (depreciation | ) | loss deferrals | Total | ||||||||||||||
| Lifestyle Income | $121,911 | $ 457,087 | $1,306,054 | $ | — | $ | 1,885,052 | |||||||||||||
| Lifestyle Conservative | 220,047 | 1,800,879 | 4,485,702 | — | 6,506,628 | |||||||||||||||
| Lifestyle Moderate | 306,741 | 3,363,940 | 7,902,433 | — | 11,573,114 | |||||||||||||||
| Lifestyle Growth | 147,815 | 2,199,007 | 6,451,065 | — | 8,797,887 | |||||||||||||||
| Lifestyle Aggressive Growth | 25,375 | 2,147,217 | 7,117,644 | (39,800 | ) | 9,250,436 | ||||||||||||||
The difference between book basis and tax basis net investment income, net realized gains and losses, and unrealized appreciation and depreciation is attributable primarily to the tax deferral of losses on wash sales, and the treatment of short-term gain as ordinary income for tax purposes.
Note 6—line of credit
Each of the Funds participates in a $1.5 billion unsecured revolving credit facility that can be used for temporary purposes, including, without limitation, the funding of shareholder redemptions. This facility expired June 2015. A new facility was entered into on June 23, 2015 expiring June 21, 2016. Certain affiliated accounts and mutual funds, each of which is managed by Advisors, or an affiliate of Advisors, also participate in this facility. An annual commitment fee for the credit facility is borne by the participating accounts and mutual funds on a pro rata basis. Interest associated with any borrowing under the facility is charged to the borrowing accounts or mutual funds at a specified rate of interest. The Funds are not liable for borrowings under the facility by other affiliated accounts or mutual funds. For the year ended May 31, 2015, there were no borrowings under this credit facility by the Funds.
Note 7—indemnification
In the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and that provide general indemnities. A Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund that have not yet occurred. Also, under the Funds’ organizational documents, the trustees and officers of the Funds are indemnified against certain liabilities that may arise out of their duties to the Funds. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be unlikely.
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 49 |
Report of independent registered public accounting firm
To the Board of Trustees and Shareholders of the TIAA-CREF Funds:
In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Lifestyle Income Fund, Lifestyle Conservative Fund, Lifestyle Moderate Fund, Lifestyle Growth Fund, and Lifestyle Aggressive Growth Fund (five of the portfolios constituting the TIAA-CREF Funds, hereafter collectively referred to as the “Funds”) at May 31, 2015, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at May 31, 2015 by correspondence with the transfer agent, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Baltimore, Maryland
July 17, 2015
| 50 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
Trustees and officers (unaudited)
TIAA-CREF Funds ■ May 31, 2015
Trustees
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | Number of portfolios in fund complex overseen by Trustee |
Other directorship(s) held by trustee | |||||
| Forrest Berkley c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1954 |
Trustee | Indefinite term. Trustee since 2006. | Retired Partner (since 2006), Partner (1990–2005) and Head of Global Product Management (2003–2005), GMO (formerly, Grantham, Mayo, Van Otterloo & Co.) (investment management); and member of asset allocation portfolio management team, GMO (2003–2005). |
82 | Director, the Maine Coast Heritage Trust; Investment Committee member, Maine Community Foundation and the Elmina B. Sewall Foundation; and Trustee of the Maine Chapter of the Nature Conservancy. | |||||
| Nancy A. Eckl c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Trustee | Indefinite term. Trustee since 2007. | Vice President (1990–2006), American Beacon Advisors, Inc., and Vice President of certain funds advised by American Beacon Advisors, Inc. | 82 | Independent Director, The Lazard Funds, Inc., Lazard Retirement Series, Inc., Lazard Global Total Return and Income Fund, Inc. and Lazard World Dividend & Income Fund, Inc.; and Independent Trustee, Lazard Alternative Emerging Markets 1099 Fund. | |||||
| Michael A. Forrester c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1967 |
Trustee | Indefinite term. Trustee since 2007. | Chief Executive Officer (since 2014) and Chief Operating Officer (2007–2014), Copper Rock Capital Partners, LLC; Chief Operating Officer, DDJ Capital Management (2003–2006). | 82 | Director of Copper Rock Capital Partners, LLC (investment adviser). |
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 51 |
| Trustees and officers (unaudited) | continued |
TIAA-CREF Funds ■ May 31, 2015
Trustees — continued
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | Number of portfolios in fund complex overseen by Trustee |
Other directorship(s) held by trustee | |||||
| Howell E. Jackson c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1954 |
Chairman of the Board and Trustee | Indefinite term. Trustee since 2005; Chairman for term ending December 31, 2015. Chairman since 2013. | James S. Reid, Jr. Professor of Law (since 2004), Senior Advisor to the President and Provost (2010–2012), Acting Dean (2009), Vice Dean for Budget (2003–2006) and on the faculty (since 1989) of Harvard Law School. | 82 | Director, D2D Fund. | |||||
| Nancy L. Jacob c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1943 |
Trustee | Indefinite term. Trustee since 1999. | Principal, NL Jacob Consultant (economic and business consultant) (since 2012); President and Founder (2006–2012) of NLJ Advisors, Inc. (investment adviser); President and Managing Principal, Windermere Investment Associates (1997–2006). | 82 | None | |||||
| Thomas J. Kenny c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1963 |
Trustee | Indefinite term. Trustee since 2011. | Partner (2004–2010) and Managing Director (1999–2004), Goldman Sachs Asset Management. | 82 | Director, Aflac Insurance. Inc., Sansum Clinic and cielo24; Investment committee member, Cottage Health System; Member, University of California at Santa Barbara Arts and Lectures Advisory Council; Trustee and Chairman, Crane Country Day School. |
| 52 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
| Bridget A. Macaskill c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1948 |
Trustee | Indefinite term. Trustee since 2003. | Chief Executive Officer (since 2010), President (since 2009) and Chief Operating Officer (2009–2010), First Eagle Investment Management, LLC; Principal, BAM Consulting LLC (2003–2009); Independent Consultant for Merrill Lynch (2003–2009). |
82 | Director, Arnhold and S. Bleichroeder Holdings; First Eagle Investment Management, LLC; Jupiter Fund Management plc; American Legacy Foundation (Investment Committee); University of Edinburgh (Campaign Board); the North Shore Land Alliance, Prep for Prep; and Close Brothers Group plc. | |||||
| James M. Poterba c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1958 |
Trustee | Indefinite term. Trustee since 2006. | President and Chief Executive Officer, National Bureau of Economic Research (“NBER”) (since 2008); Affiliated Faculty Member of the Finance Group at the Alfred P. Sloan School of Management, Massachusetts Institute of Technology (“MIT”) (since 2014); Mitsui Professor of Economics, MIT (since 1996); Head (2006–2008) and Associate Head (1994–2000 and 2001–2006), Economics Department of MIT; and Program Director, NBER (1990–2008). |
82 | Director, The Alfred P. Sloan Foundation and National Bureau of Economic Research; Member, Congressional Budget Office Panel of Economic Advisers. | |||||
| Maceo K. Sloan c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1949 |
Trustee | Indefinite term. Trustee since 1999. | Chairman, President and Chief Executive Officer, Sloan Financial Group, Inc. (since 1991); Chairman and Chief Executive Officer (since 1991) and Chief Investment Officer (1991–2013), NCM Capital Management Group, Inc.; Chairman and Chief Executive Officer (since 2003) and Chief Investment Officer (2003–2013), NCM Capital Advisers Inc.; and Chairman, President and Principal Executive Officer, NCM Capital Investment Trust (2007–2012). | 82 | Director, SCANA Corporation (energy holding company). |
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 53 |
| Trustees and officers (unaudited) | continued |
TIAA-CREF Funds ■ May 31, 2015
Trustees — concluded
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | Number of portfolios in fund complex overseen by Trustee |
Other directorship(s) held by trustee | |||||
| Laura T. Starks c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1950 |
Trustee | Indefinite term. Trustee since 2006. | Associate Dean for Research (since 2011), McCombs School of Business, University of Texas at Austin (“McCombs”), and Director, AIM Investment Center at McCombs (since 2000). Charles E. and Sarah M. Seay Regents Chair in Finance (since 2002) and Professor, University of Texas at Austin (since 1987). Chairman, Department of Finance, University of Texas at Austin (2002–2011). | 82 | Member of the Board of Governors of the Investment Company Institute, the Governing Council of Independent Directors Council (an association for mutual fund directors); and Investment Advisory Committee, Employees Retirement System of Texas. |
Officers
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | |||
| Richard S. Biegen TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Chief Compliance Officer | One-year term. Vice President and Chief Compliance Officer since 2008. | Managing Director, Senior Compliance officer of Teachers Insurance and Annuity Association of America (“TIAA”). Chief Compliance Officer of the College Retirement Equities Fund (“CREF”), TIAA Separate Account VA-1, TIAA-CREF Funds, and TIAA-CREF Life Funds (collectively, the “TIAA-CREF Fund Complex”). |
| 54 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
| Carol W. Deckbar TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Executive Vice President | One-year term. Executive Vice President since 2013. | Executive Vice President, Chief Executive Officer of TIAA-CREF Asset Management LLC (“TCAM”) and Executive Vice President of the TIAA-CREF Fund Complex. | |||
| Phillip G. Goff TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1963 |
Principal Financial Officer, Principal Accounting Officer and Treasurer | One-year term. Principal Financial Officer, Principal Accounting Officer and Treasurer since 2007. | Senior Vice President, Corporate Controller of TIAA. Treasurer of CREF; Principal Financial Officer, Principal Accounting Officer and Treasurer of the TIAA-CREF Funds and TIAA-CREF Life Funds. | |||
| Stephen Gruppo TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1959 |
Executive Vice President | One-year term. Executive Vice President since 2009. | Executive Vice President, Chief Risk Officer of TIAA. Executive Vice President of the TIAA-CREF Fund Complex. | |||
| Robert G. Leary TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1961 |
President and Principal Executive Officer | One-year term. President and Principal Executive Officer since 2013. | Executive Vice President and President of Asset Management of TIAA. Principal Executive Officer and Executive Vice President of CREF and VA-1. Principal Executive Officer and President of TIAA-CREF Funds and TIAA-CREF Life Funds. Prior to joining TIAA, Mr. Leary served as a Representative, Securities Research, Inc., President and Chief Operating Officer, U.S., ING Americas, Chief Executive Officer, ING Insurance US, and Chairman and Chief Executive Officer, ING Investment Management, Americas. | |||
| Ronald R. Pressman TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1958 |
Executive Vice President | One-year term. Executive Vice President since 2012. | Executive Vice President and Chief Operating Officer of TIAA, and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Mr. Pressman served as President and Chief Executive Officer of General Electric Capital Real Estate. |
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 55 |
| Trustees and officers (unaudited) | concluded |
TIAA-CREF Funds ■ May 31, 2015
Officers — concluded
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | |||
| Phillip T. Rollock TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Senior Managing Director and Corporate Secretary | One-year term. Senior Managing Director since 2013 and Corporate Secretary since 2012. | Senior Managing Director, Corporate Secretary of TIAA and the TIAA-CREF Fund Complex. | |||
| Otha T. Spriggs, III TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1951 |
Executive Vice President | One-year term. Executive Vice President since 2012. | Executive Vice President and Chief Human Resources Officer of TIAA and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Mr. Spriggs served as Senior Vice President of Human Resources, Boston Scientific; President of Integrated People Solutions; Senior Vice President, Human Resources and various human resources leadership roles, CIGNA Corp. | |||
| Edward D. Van Dolsen TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1958 |
Executive Vice President | One-year term. Executive Vice President, since 2006. | Executive Vice President, President of Retirement and Individual Financial Services of TIAA, and Executive Vice President of the TIAA-CREF Fund Complex. | |||
| Constance K. Weaver TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1952 |
Executive Vice President | One-year term. Executive Vice President since 2010. | Executive Vice President, Chief Marketing Officer of TIAA and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Ms. Weaver served as Senior Vice President, The Hartford Financial Services Group, Inc. | |||
| Please note that the Funds’ Statement of Additional Information (SAI) includes information about the Funds’ trustees and is available, without charge, through our website, tiaa-cref.org, or by calling 800 223–1200. | ||||||
| 56 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
Renewal of investment management agreement (unaudited)
Board renewal of the investment management agreement for the TIAA-CREF Lifestyle Funds
Among its other duties, the Board of Trustees (the “Board” or the “Trustees”) of the TIAA-CREF Funds (the “Trust”) is responsible for determining whether to initially approve and subsequently annually renew the investment management agreement (the “Agreement”) between Teachers Advisors, Inc. (“TAI”) and the Trust on behalf of each TIAA-CREF Lifestyle Funds’ series (the “Funds”). Under the Agreement, TAI is responsible for providing investment advisory services and overseeing the everyday operations and other service providers of the Funds.
Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”) requires that, after an initial period of up to two years, the Agreement for each Fund will remain in effect only if the Board, including a majority of those Trustees who have no direct or indirect interest in the Agreement, and who are not “interested persons” of the Trust, as that term is defined in the 1940 Act, annually renews that Agreement. All of the Trustees are deemed to be independent persons for this purpose.
Overview of the renewal process
The Board held meetings on March 12, 2015 and March 26, 2015, at which it considered the annual renewal of the Agreement with respect to each Lifestyle Fund using its previously-established process. As part of this process, the Board delegated certain tasks to its Operations Committee. Among these tasks, the Operations Committee worked with TAI, other Board members and legal counsel to the Trustees to develop guidelines and specific requests relating to the types of information to be provided to the Board in connection with the proposed contract renewals. The Operations Committee also worked with TAI to schedule and report on various follow-up items throughout the prior year that were requested by the Committee and the Board during the 2014 renewal process. During a series of meetings held prior to the March 12 and March 26, 2015 Board meetings, the Operations Committee, along with other Committees, as applicable, reviewed such guidelines and follow-up requests in consultation with TAI representatives and input from other Trustees, legal counsel to the Trustees and legal counsel to TAI and the Trust, and then evaluated the information produced in accordance with those guidelines and requests.
Among other matters, the Operations Committee, following its consultations with others as noted above, confirmed or established various guidelines regarding the preparation of reports to be provided to the Board with respect to each Fund by the Board Reporting and Compliance unit of Lipper, Inc. (“Lipper”). Lipper is an independent provider of investment company data that is widely recognized as a leading source of independent data used by independent directors and trustees of investment companies during their advisory contract review processes.
Based on guidelines provided by the Operations Committee on behalf of the Board, Lipper produced, among other information, performance and expense comparison data regarding each Fund, including data relating to each Fund’s management fee
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 57 |
Renewal of investment management agreement (unaudited)
rates, total expense ratios, short-term and long-term investment performance, portfolio turnover rates and brokerage commission costs. Lipper also compared much of this data for each Fund against a universe of investment companies and against a more selective peer group of mutual funds with similar investment objectives and strategies, each of which was selected by Lipper, and, in the case of the investment performance data, against one or more appropriate broad-based benchmark indices. In each case, Lipper summarized the methodologies it employed to provide the data contained in its reports. In addition, Lipper represented to the Board that its reports were designed specifically to provide the Board with the fee, expense and performance information that is necessary to help the Board satisfy its duties under Section 15(c) of the 1940 Act. Lipper also represented that the purpose of its materials is to provide an unbiased view of each Fund’s relative position regarding the level of fees, expenses and total return performance against a competitive peer group and universe (as applicable) identified by Lipper (and not TAI).
Among other matters, the Board also requested and reviewed various information provided by TAI to facilitate the Trustees’ evaluation of the reasonableness of any profits earned by TAI with respect to its services to each Fund pursuant to the Agreement. In this regard, the Board recognized that different Trustees could, and likely would, give different weight to different factors when evaluating the profits, if any, realized or anticipated to be realized by TAI, which is also true of their assessment of each Fund’s management fee rate and other aspects of the proposed renewal of the Agreement.
In advance of the Board meetings held on March 12 and March 26, 2015, legal counsel for the Trustees requested on behalf of the Board, and TAI provided, information that was designed to assist the Board in its consideration of whether to renew the Agreement for each Fund. In addition to the data provided by Lipper as described above, this information included, but was not limited to, the following: (1) further information relating to each Fund’s investment performance, including performance ratings provided by Morningstar, Inc. (“Morningstar”), which is a widely recognized mutual fund ranking service, and a narrative analysis of the performance of each Fund that had underperformed certain Board-specified criteria, together with an explanation of any events that had a material impact on the Fund’s performance during that period; (2) a description of any fee waiver or expense reimbursement arrangements that were proposed or were in place during the prior year and the extent to which such arrangements would be continued or modified in the coming year; (3) a comparison of each Fund’s fee rate under the Agreement to the fee rates of any other comparable accounts managed by TAI or its affiliates; (4) any “fall-out” benefits that accrued or were identified as reasonably likely to accrue to TAI or its affiliates due to their relationship with the Funds aside from TAI’s direct fee payments pursuant to the Agreement; (5) information regarding TAI’s financial resources, senior professional personnel, overall staffing levels, portfolio manager compensation arrangements, insurance coverage, portfolio trading and best execution practices, and any actual and potential conflicts of interest identified by TAI in connection with rendering services to the Funds; (6) information as to any profits earned by TAI in connection with its
| 58 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
continued
services pursuant to the Agreement; (7) a copy of the Agreement and certain related agreements between the Funds and affiliates of TAI; (8) a copy of TAI’s Form ADV registration statement as filed with the Securities and Exchange Commission (which was presented only to legal counsel for the Trustees); and (9) proposed narrative explanations of reasons why the Board should renew the Agreement.
In considering whether to renew the Agreement with respect to each Fund, the Board reviewed various factors with respect to the Fund, including: (1) the nature, extent and quality of services provided or to be provided by TAI to the Fund; (2) the Fund’s investment performance; (3) the costs of the services provided to the Fund and the profits realized or potential profits to be realized (if any) by TAI and its affiliates from their relationship with the Fund; (4) fees charged by other advisers; (5) the extent to which economies of scale have been realized or are anticipated to be realized as the Fund grows; (6) whether the fee schedule set forth in the Agreement reflects any such economies of scale for the benefit of Fund investors; (7) comparisons of services and fee rates with any contracts entered into by TAI with other clients to whom TAI provides comparable services; and (8) any other benefits derived or anticipated to be derived by TAI or its affiliates from their relationship with the Fund. As a general matter, the Board viewed these factors in their totality, with no single factor being the principal factor in determining whether to renew the Agreement.
In reaching its decisions regarding the renewal of the Agreement for each Fund, the Board took into account the information described above, other information provided to the Board in connection with this process, and relevant information provided to the Board and to its Committees on an ongoing basis in connection with the Board’s general oversight duties with respect to the Funds. In addition, the Board received and considered information from its legal counsel as to certain relevant guidelines that relate to the renewal process under Section 15(c) of the 1940 Act and certain other legal authorities.
While the Board considered the Agreement with respect to all Funds, the Board received and considered Fund-specific information and made its renewal determinations on a Fund-by-Fund basis. In deciding whether to renew the Agreement for each Fund, each Trustee may have accorded different weight to different factors and, thus, each Trustee may have had a different basis for his or her ultimate decision to vote to renew the Agreement for each Fund. At its meeting on March 26, 2015, the Board voted unanimously to renew the Agreement for each Fund. Set forth below are certain general factors the Board considered for all of the Funds, followed by a summary of certain specific factors the Board considered for each particular Fund.
The nature, extent and quality of services
The Board considered that TAI is an experienced investment adviser that has managed the Funds since their operations commenced. Investment professionals at TAI and its affiliates also manage various accounts of the College Retirement Equities Fund (“CREF”), the TIAA-CREF Life Funds (the “Life Funds”), the TIAA Separate
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 59 |
Renewal of investment management agreement (unaudited)
Account VA-1 and other series of the Trust. Under the Agreement, TAI is responsible for, among other duties: managing the assets of the Funds (which are funds of funds that invest their assets in the securities of other investment companies managed by TAI, referred to as “underlying funds”), including selecting underlying funds and allocating the Funds’ assets among the underlying funds, conducting research, recommending investments and placing orders to buy and sell securities for the Funds’ investment portfolios; active daily monitoring of the investment portfolios by various personnel with specific responsibility for the particular types of investments in question; reporting on the investment performance of the Funds to the Board on a regular basis; and carrying out, or overseeing the provision of, various administrative services to the Funds. The Board considered that TAI has carried out these responsibilities in a competent and professional manner.
The Board also considered, among other factors, the performance of each of the Funds, as discussed below. In addition, the Board considered the nature and quality of non-portfolio management services provided by TAI and its affiliates. In this regard, the Board considered its ongoing review of the performance of certain affiliated and unaffiliated service providers, including the quality of services provided by those firms and TAI’s oversight of those service providers and the outsourcing of certain services to other firms.
Investment performance
The Board considered the investment performance of each Fund, over the periods indicated in the Fund-by-Fund synopsis below. The Board considered each Fund’s performance as compared to its peer group and peer universe (as applicable) and its benchmark index. The Board also reviewed the performance of each Fund before any reductions for fees or expenses. This analysis considered the impact of net asset value rounding and excluded the effects of fair valuation, foreign exchange rates, effective tax rates, securities lending and class action litigation on each Fund’s performance as compared to the performance of its benchmark index. For details regarding each Fund’s performance, see the Fund-by-Fund synopsis below. The Board considered that, in those cases in which a Fund had underperformed its benchmark, peer group or peer universe of mutual funds for an extended period of time, TAI had represented that it had taken or was planning to implement affirmative actions reasonably designed to enhance the Fund’s investment performance, or TAI had explained to the Board’s satisfaction that no such actions were necessary. Thus, the Board concluded that, under the totality of circumstances considered, the investment performance of each Fund was within an acceptable range or that appropriate actions, if any, had been or were being implemented.
Cost and profitability
The Board considered financial and profitability data relating to TAI for the calendar year 2014. The Board considered TAI’s profit calculations with respect to its services to each Fund both before and after taking into account the costs incurred directly or
| 60 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
continued
indirectly by TAI in connection with the distribution of shares of the Fund. The Board acknowledged the reasonableness of having management fee rates which permit TAI to maintain and improve the quality of services provided to the Funds. The Board also acknowledged certain permanent fee rate reductions, temporary fee waivers and reimbursements of expenses above specified amounts undertaken by TAI with respect to the underlying funds in which the Funds invest that, in turn, reduce the Funds’ expenses. The Board considered that TAI had incurred a net loss with respect to each of the Funds under the Agreement for the one-year period ended December 31, 2014, and expected this trend to continue. The Board also considered that TAI may have indirect earnings or losses with respect to the Funds based on the Funds’ investment in underlying funds also managed by TAI.
During its review of TAI’s profits, the Board noted its ongoing efforts to examine the level of personnel and other resources available to TAI for its portfolio management and other functions, especially any effect of the purchase of Nuveen Investments by TAI’s parent on such resources, so as to assess whether sufficient resources are being devoted to these functions.
Fees charged by other advisers
The Board considered information regarding fees paid to other advisers for managing similar funds, as analyzed by Lipper. The Board determined that the management fee rates charged to a Fund under the Agreement typically were lower than the management fee rates charged to many or most other comparable mutual funds. In this connection, the Board also considered the inherent limitations of such comparisons in light of uncertainty as to how the fees of such similar mutual funds are set and potentially material differences between a Fund and its comparable mutual funds. Additionally, the Board also considered the potential limitations of such comparisons due to, among other factors, the fact that, in many instances, Lipper based its comparisons on financial data relating to fiscal periods that differed from the period for which the Fund’s data were derived. Based on all factors considered, the Board concluded that the management fee rates under the Agreement with respect to each Fund were within an acceptable range in relation to those charged by appropriate groups of comparable mutual funds.
Economies of scale
The Board considered whether TAI has experienced or is anticipated to experience economies of scale in connection with the operation of each Fund. The Board also considered that because TAI operated each Fund at a loss, there was little opportunity to pass economies of scale on to Fund shareholders. Based on all factors considered, the Board concluded that the Funds’ fee schedules were within an acceptable range in light of current economies of scale considerations and current asset levels.
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 61 |
Renewal of investment management agreement (unaudited)
Fee comparison with other TAI clients
The Board considered that TAI and its affiliates provide similar investment management services to other investment companies. The Board noted that TAI provides funds of funds management services to the TIAA-CREF Life Balanced Fund, with an annual management fee rate of 0.10% of average daily net assets, the TIAA-CREF Lifecycle Funds, which have an annual management fee rate of 0.10% of average daily net assets that is entirely waived by TAI, the TIAA-CREF Lifecycle Index Funds, which also have a 0.10% annual management fee rate that is subject to certain temporary, voluntary waivers by TAI, and the TIAA-CREF Managed Allocation Fund, for which TAI receives no management fee. TAI also manages other asset allocation products, such as education savings plans (529 plans).
Other benefits
The Board also considered additional benefits to TAI and its affiliates arising from the Agreement. For example, TAI and its affiliates may benefit from the advisory relationship with the Funds to the extent that this relationship results in potential investors viewing the TIAA-CREF group of companies as a leading retirement plan provider in the academic and nonprofit markets and as a single source for all their financial service needs. Both TAI and certain Funds managed by TAI or its affiliates may benefit from economies of scale to the extent that these Funds are managed in the same manner and by the same personnel as certain of the CREF Accounts, the Life Funds and other series of the Trust. TAI and the Funds may also benefit from TAI’s ability to acquire investment research related to its commission (i.e., soft dollar) arrangements. Additionally, the Funds may be utilized as investment options for other products and businesses of TAI and its affiliates, such as variable products.
Fund-by-fund factors
The Board considered the following specific factors (among others) in connection with its determination to renew the Agreement with respect to each Fund. If a Fund is described in the following discussions as being in the “1st” quintile, it is in the best of five groups (that is, the group has the best performance or the lowest expenses, as the case may be). References below to quintiles are based on data provided to the Board in the reports prepared by Lipper. The specific management fee, expense and performance factors outlined below are based on the Retail Class shares of each Fund. Because the Retail Class generally has higher non-management expenses than the Retirement, Premier and Institutional Classes of these Funds, the expenses and performance of these other Classes will differ from the expenses and performance shown for the Retail Class. All time periods referenced below are ended December 31, 2014. Under the Morningstar rating system, 5 stars is the highest (best) rating category and 1 star is the lowest (worst) rating category. Statements below regarding “net profit” or “net loss” refer to whether TAI earned a profit or incurred a loss for the services that it rendered to a Fund during 2014 under the Agreement.
| 62 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
continued
Lifestyle Aggressive Growth Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. |
| • | The Fund’s total expenses, actual management fee and contractual management fee were each in the 1st quintile of the group of comparable funds selected by Lipper for expense comparison purposes (“Expense Group”) and in the 1st quintile of the universe of comparable funds selected by Lipper for expense comparison purposes (“Expense Universe”). |
| • | The Fund was in the 3rd and 1st quintiles of the group of comparable funds selected by Lipper for performance comparison purposes (“Performance Group”) for the one- and three-year periods, respectively. The Fund was in the 4th and 1st quintiles of the universe of comparable funds selected by Lipper for performance comparison purposes (“Performance Universe”) for the one- and three-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 2 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifestyle Growth Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. |
| • | The Fund’s total expenses, actual management fee and contractual management fee were each in the 1st quintile of both its Expense Group and its Expense Universe. |
| • | The Fund was in the 5th and 1st quintiles of its Performance Group for the one-and three-year periods, respectively. The Fund was in the 4th and 1st quintiles of its Performance Universe for the one- and three-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifestyle Moderate Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. |
| • | The Fund’s total expenses, actual management fee and contractual management fee were each in the 1st quintile of both its Expense Group and its Expense Universe. |
| • | The Fund was in the 2nd and 1st quintiles of its Performance Group for the one-and three-year periods, respectively. The Fund was in the 3rd and 2nd quintiles of its Performance Universe for the one- and three-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 3 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 63 |
| Renewal of investment management agreement (unaudited) | concluded |
Lifestyle Conservative Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. |
| • | The Fund’s total expenses, actual management fee and contractual management fee were each in the 1st quintile of both its Expense Group and its Expense Universe. |
| • | The Fund was in the 3rd and 2nd quintiles of its Performance Group for the one-and three-year periods, respectively. The Fund was in the 3rd and 1st quintiles of its Performance Universe for the one- and three-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 4 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Lifestyle Income Fund
| • | The Fund’s annual contractual management fee rate is 0.10% of average daily net assets. |
| • | The Fund’s total expenses, actual management fee and contractual management fee were each in the 1st quintile of both its Expense Group and its Expense Universe. |
| • | The Fund was in the 4th quintile of its Performance Group and its Performance Universe for each of the one- and three-year periods. |
| • | The Fund received an Overall Morningstar Rating of 2 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Based primarily on the foregoing factors and considerations, the Board renewed the Agreement for each Fund.
| 64 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
Important tax information (unaudited)
For the year ended May 31, 2015, the Lifestyle Funds designate the following distribution amounts (or the maximum amount allowable) as being from net long-term capital gains:
| Long term | ||||
| Fund | capital gains | |||
| Lifestyle Income | $ | 383,152 | ||
| Lifestyle Conservative | 993,761 | |||
| Lifestyle Moderate | 1,708,245 | |||
| Lifestyle Growth | 1,121,352 | |||
| Lifestyle Aggressive Growth | 1,289,475 | |||
For the year ended May 31, 2015, the Lifestyle Funds designate the following percentages (or the maximum amount allowable) of ordinary income dividends paid as qualified dividends:
| Fund | Percentage | |||
| Lifestyle Income | 12.39% | |||
| Lifestyle Conservative | 21.01% | |||
| Lifestyle Moderate | 27.17% | |||
| Lifestyle Growth | 37.74% | |||
| Lifestyle Aggressive Growth | 50.59% | |||
For the year ended May 31, 2015, the Lifestyle Funds designate the following percentages (or the maximum amount allowable) of ordinary income dividends paid as qualifying for the corporate dividends received deduction:
| Fund | Percentage | |||
| Lifestyle Income | 7.50% | |||
| Lifestyle Conservative | 13.06% | |||
| Lifestyle Moderate | 17.04% | |||
| Lifestyle Growth | 23.73% | |||
| Lifestyle Aggressive Growth | 31.97% | |||
For the year ended May 31, 2015, the Lifestyle Funds received the following amounts of income from their respective underlying funds that was from foreign sources:
| Foreign | Foreign source | ||||||||
| Fund | source income | income per share | |||||||
| Lifestyle Income | $ | 37,920 | $ | 0.00812 | |||||
| Lifestyle Conservative | 139,228 | 0.01712 | |||||||
| Lifestyle Moderate | 268,349 | 0.02746 | |||||||
| Lifestyle Growth | 174,316 | 0.03910 | |||||||
| Lifestyle Aggressive Growth | 172,887 | 0.05186 | |||||||
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 65 |
| Important tax information (unaudited) | concluded |
For the year ended May 31, 2015, the Lifestyle Funds have elected to pass through the following amounts of foreign taxes paid by their respective underlying funds:
| Foreign taxes | Foreign taxes | |||||||||
| Fund | paid | paid per share | ||||||||
| Lifestyle Income | $ | 3,821 | $ | 0.00082 | ||||||
| Lifestyle Conservative | 13,327 | 0.00164 | ||||||||
| Lifestyle Moderate | 25,206 | 0.00258 | ||||||||
| Lifestyle Growth | 16,209 | 0.00364 | ||||||||
| Lifestyle Aggressive Growth | 15,987 | 0.00480 | ||||||||
The information and distributions reported herein may differ from the information and distributions reported to shareholders for the calendar year ending December 31, 2015, which will be reported in conjunction with your 2015 Form 1099-DIV.
By early 2016, shareholders should receive their Form 1099-DIV and a tax information letter from the Funds. For your specific situation, we recommend that you consult a professional tax adviser.
| 66 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
Additional information about index providers (unaudited)
Russell Indexes
The Russell 3000® Index is a trademark/service mark of the Russell Investment Group. The Russell Investment Group is the owner of the copyrights relating to the Russell Indexes and is the source and owner of the data contained or reflected in the performance values relating to the Russell Indexes. The funds are not promoted by, nor in any way affiliated with, the Russell Investment Group. The Russell Investment Group is not responsible for and has not reviewed the funds nor any associated literature or publications and the Russell Investment Group makes no representation or warranty, express or implied, as to their accuracy, or completeness.
Russell reserves the right, at any time and without notice, to alter, amend, terminate or in any way change the Russell Indexes. Russell has no obligation to take the needs of any particular fund or its participants or any other product or person into consideration in determining, composing or calculating any of the Russell Indexes.
Russell’s publication of the Russell Indexes in no way suggests or implies an opinion by Russell as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell Indexes are based. RUSSELL MAKES NO REPRESENTATION, WARRANTY OR GUARANTEE REGARDING THE USE OR THE RESULTS OF USE OF THE RUSSELL INDEXES OR ANY DATA INCLUDED THEREIN, OR ANY SECURITIES (OR COMBINATION THEREOF) COMPRISING THE RUSSELL INDEXES. RUSSELL MAKES NO OTHER EXPRESS OR IMPLIED WARRANTY, AND EXPRESSLY DISCLAIMS ANY WARRANTY, OF ANY KIND, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE RUSSELL INDEX(ES) OR ANY DATA OR ANY SECURITY (OR COMBINATION THEREOF) INCLUDED THEREIN.
MSCI Indexes
The funds are not sponsored, endorsed, sold or promoted by MSCI Inc. (“MSCI”), any of its affiliates, any of its information providers or any other third party involved in, or related to, compiling, computing or creating any MSCI index (collectively, the “MSCI Parties”). The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names are service mark(s) of MSCI or its affiliates and have been licensed for use for certain purposes by Teachers Advisors, Inc. None of the MSCI parties makes any representation or warranty, express or implied, to the issuer or owners of this fund or any other person or entity regarding the advisability of investing in funds generally or in this fund particularly or the ability of any MSCI index to track corresponding stock market performance. MSCI or its affiliates are the licensors of certain trademarks, service marks and trade names and of the MSCI indexes which are determined, composed and calculated by MSCI without regard to this fund or the issuer or owners of this fund or any other person or entity. None of the MSCI parties has any obligation to take the needs of the issuer or owners of this fund or any other person or entity into consideration in determining, composing or calculating the MSCI indexes. None of the MSCI parties is responsible for or has participated in the determination of the timing of, prices at, or quantities of this fund to be issued or in the determination or calculation of the equation by or the consideration into which
| TIAA-CREF Lifestyle Funds ■ 2015 Annual Report | 67 |
| Additional information about index providers (unaudited) | concluded |
this fund is redeemable. Further, none of the MSCI parties has any obligation or liability to the issuer or owners of this fund or any other person or entity in connection with the administration, marketing or offering of this fund.
ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE MSCI INDEXES FROM SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF THE MSCI PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER OF THE FUND, OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY, FROM THE USE OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONE OF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE MSCI PARTIES HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO EACH MSCI INDEX AND ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
No purchaser, seller or holder of this security, product or fund, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this security without first contacting MSCI to determine whether MSCI’s permission is required. Under no circumstances may any person or entity claim any affiliation with MSCI without the prior written permission of MSCI.
| 68 | 2015 Annual Report ■ TIAA-CREF Lifestyle Funds |
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You should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other important information, please visit tiaa-cref.org, or call 800 842-2252 for the Institutional, Premier and Retirement classes or 800 223-1200 for the Retail Class. Please read the prospectus carefully before investing. Investment, insurance and annuity products are not FDIC
insured, are not bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, members FINRA and SIPC, distribute securities products.
©2015 Teachers Insurance and Annuity Association of America—College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017-3206.
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2015 Annual Report
TIAA-CREF
Managed Allocation Fund
of the TIAA-CREF Funds
May 31, 2015
| Contents | |
| Understanding your fund report | 2 |
| Information for investors | 3 |
| Important information about expenses | 4 |
| Fund performance | |
| Managed Allocation Fund | 6 |
| About the fund’s composite benchmark | 10 |
| Portfolio of investments | 11 |
| Audited financial statements | |
| Statement of assets and liabilities | 12 |
| Statement of operations | 13 |
| Statements of changes in net assets | 14 |
| Financial highlights | 16 |
| Notes to financial statements | 18 |
| Report of independent registered public accounting firm | 24 |
| Trustees and officers | 25 |
| Renewal of investment management agreement | 31 |
| Important tax information | 37 |
| Additional information about index providers | 38 |
| How to reach us | Inside back cover |
Understanding your fund report
This annual report contains information about the Managed Allocation Fund and describes the fund’s results for the twelve months ended May 31, 2015. The report contains three main sections:
| • | The fund performance section compares the fund’s investment returns with those of its composite benchmark and a broad market index. | |
| • | The portfolio of investments lists the underlying TIAA-CREF Funds in which the Managed Allocation Fund had investments as of May 31, 2015. | |
| • | The financial statements provide detailed information about the operations and financial condition of the fund. |
The views and opinions expressed in this report are through the end of the period, as stated on the cover of this report. They are subject to change at any time based on a variety of factors. As such, they are not guarantees of future performance or investment results and should not be taken as investment advice. The risks of investing in the TIAA-CREF Funds vary from fund to fund; to see the risks of investing in an individual fund, please refer to that fund’s latest prospectus.
As always, you should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other important information, please visit our website at tiaa-cref.org, or call 800 842-2252 for the Institutional and Retirement classes or 800 223-1200 for the Retail Class. We urge you to read the prospectus carefully before investing.
| 2 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
Portfolio holdings
The complete portfolio of investments for the Managed Allocation Fund appears on page 11 of this report. You can also obtain a list of the holdings of the Managed Allocation Fund and of the underlying funds in which the Managed Allocation Fund invests (Schedules of Investments) as of the most recently completed fiscal quarter in the following ways:
| • | By visiting our website at tiaa-cref.org; or | |
| • | By calling us at 800 842-2252 to request a copy, which will be provided free of charge. |
You can obtain a complete list of the Managed Allocation Fund’s portfolio holdings as of the most recently completed fiscal quarter, and for prior quarter-ends, from our Securities and Exchange Commission (SEC) Form N-CSR and Form N-Q filings. Form N-CSR filings are as of May 31 or November 30; Form N-Q filings are as of the last day of February or August 31. Copies of these forms are available:
| • | Through the Electronic Data Gathering and Retrieval System (EDGAR) on the SEC’s website at www.sec.gov; or | |
| • | From the SEC’s Office of Investor Education and Advocacy. (Call 202 551-8090 for more information.) |
Proxy voting
A description of our proxy voting policies and procedures for the underlying funds of the Managed Allocation Fund can be found on our website at tiaa-cref.org or on the SEC’s website at www.sec.gov. You can also call us at 800 842-2252 to request a free copy. A report of how the Managed Allocation Fund’s underlying funds voted during the most recently completed twelve-month period ended June 30 can be found on our website or on Form N-PX at www.sec.gov.
Contacting TIAA-CREF
There are three easy ways to contact us: by email, using the Contact Us link at the top of our home page; by mail at TIAA-CREF, 730 Third Avenue, New York, NY 10017-3206; or by phone at 800 842-2252.
Fund management
The Managed Allocation Fund is managed by a portfolio management team of Teachers Advisors, Inc. The members of this team are responsible for the day-to-day investment management of the fund.
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 3 |
Important information about expenses
All shareholders of the TIAA-CREF Funds incur ongoing costs, including management fees and other fund expenses. They may also incur transactional costs for redemptions or account maintenance fees.
The expense example that appears in the table on page 5 is intended to help you understand your ongoing costs only (in U.S. dollars) and does not reflect transactional costs or the costs incurred by the fund for buying and selling securities. The example is designed to help you compare these ongoing costs with the ongoing costs of investing in other mutual funds.
The expenses shown do not include redemption fees or account maintenance fees, which may or may not be applicable, as described in the prospectus. If such fees were included, your total cost of investing in the fund would be higher. Note also that shareholders of the TIAA-CREF Funds do not incur a sales charge for purchases, reinvested dividends or other distributions.
The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (December 1, 2014–May 31, 2015).
Actual expenses
The first line of the two lines listed for each share class in the table uses that class’s actual expenses and its actual rate of return. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the six-month period.
Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses paid during period” to estimate the expenses you paid during the six-month period.
Hypothetical example for comparison purposes
The second line in each share class’s entry shows hypothetical account values and expenses based on the share class’s actual expense ratio for the six-month period and an assumed 5% per year rate of return before expenses. This was not the share class’s actual return.
This hypothetical example cannot be used to estimate the actual expenses you paid for the period but rather allows you to compare the ongoing costs of investing in the fund with the costs of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
| 4 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
Important information about expenses
Expense example
Six months ended May 31, 2015
| Managed Allocation Fund | Beginning account value (12/1/14 | ) | Ending account value (5/31/15 | ) | Expenses paid during period (12/1/14–5/31/15 | * ) | Effective expenses paid during period (12/1/14–5/31/15 | † ) | ||||
| Institutional Class | ||||||||||||
| Actual return | $1,000.00 | $1,037.16 | $0.00 | $2.08 | ||||||||
| 5% annual hypothetical return | 1,000.00 | 1,024.93 | 0.00 | 2.07 | ||||||||
| Retirement Class | ||||||||||||
| Actual return | 1,000.00 | 1,035.95 | 1.27 | 3.35 | ||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.33 | ||||||||
| Retail Class | ||||||||||||
| Actual return | 1,000.00 | 1,035.79 | 1.27 | 3.35 | ||||||||
| 5% annual hypothetical return | 1,000.00 | 1,023.68 | 1.26 | 3.33 |
| * | “Expenses paid during period” is based on the fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2015. The fund’s annualized six-month expense ratio for that period was 0.00% for the Institutional Class, 0.25% for the Retirement Class and 0.25% for the Retail Class. The expense charges of one or more of the fund’s share classes may at times reflect a reimbursement. Please see the prospectus for an explanation, including the date on which this reimbursement is scheduled to end. Without such reimbursement, the expenses of the affected share classes would be higher and the fund’s performance lower. |
| † | “Effective expenses paid during period” is based on the fund’s total expense ratio for the most recent fiscal half-year, which includes the fund’s own expense ratio plus its pro rata share of its underlying funds’ expenses (which the fund bears through its investment in the underlying funds) for the most recent fiscal half-year. For that period, the total annualized weighted average expense ratio was 0.41% for the Institutional Class, 0.66% for the Retirement Class and 0.66% for the Retail Class. |
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 5 |
Performance for the twelve months ended May 31, 2015
The Managed Allocation Fund returned 6.79% for the Institutional Class, compared with the 6.07% return of its benchmark, the Managed Allocation Composite Index. The table on page 8 shows returns for all share classes of the fund.
Markets rise amid volatility and mixed economic data
The domestic economy showed signs of life throughout much of the twelve-month period relative to many international economies but tapered off in 2015. Real gross domestic product, which measures the value of all goods and services produced in the nation, decreased 0.2% in the first calendar quarter of 2015. However, the national unemployment rate registered at 5.5% in the final month of the reporting period—down from 6.3% in May 2014. The U.S. dollar rose sharply against most foreign currencies, and inflation remained subdued.
Investors then turned their attention to when the U.S. central bank might start raising short-term interest rates. Conversely, central banks in Europe, Japan and China boosted efforts to stimulate their sluggish economies, which helped fuel demand for equities in various international markets.
For the twelve-month period, the Russell 3000® Index, a broad measure of the U.S. stock market, rose 11.86%. The MSCI All Country World ex USA Index, which measures the performance of large- and mid-cap stocks in 45 developed and emerging market nations excluding the United States, returned –0.90% in terms of U.S. dollars, but gained 15.04% in local currency terms. Although emerging markets finished lower for the twelve months, many markets rose in the final quarter of the period as oil prices stabilized following their sharp drop from June 2014 through January 2015.
Returns of U.S. investment-grade bonds were somewhat constrained by the prospect of rising interest rates. The broad domestic investment-grade, fixed-rate bond market, as measured by the Barclays U.S. Aggregate Bond Index, returned 3.03% for the period.
| 6 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
Strong results from stocks lift the fund’s return higher
For the period, the absolute return of the Managed Allocation Fund—that is, without regard to the performance of its benchmark—was fueled primarily by the returns of the domestic equity funds in which the fund invests. In contrast, performance was constrained by weak performance of several underlying international equity and fixed-income funds. (All fund returns are for the Institutional Class.)
The Managed Allocation Fund may invest in up to three sectors of the investment markets: U.S. equity (stocks), international equity (foreign stocks) and fixed income. The fund does this by investing in various underlying funds that in turn buy stocks, bonds and other securities in these market sectors.
For the twelve months, the fund outperformed its composite benchmark by nearly three quarters of a percentage point primarily as a result of the performance of certain domestic and international equity underlying funds. In the U.S. equity category, the fund benefited from the outperformance of its allocation to the Large-Cap Growth Fund, which generated a double-digit return and surpassed its benchmark, the Russell 1000® Growth Index. The fund also benefited from its position in the Growth & Income Fund, which outperformed its benchmark, the S&P 500® Index. Among the fund’s international investments, the International Opportunities Fund and the International Equity Fund both contributed positively to relative returns. The largest contributor to the fund’s fixed-income component came from the Bond Plus Fund, which outperformed its benchmark, the Barclays U.S. Aggregate Bond Index.
Relative strength in the U.S. equity sector was partially offset by the Enhanced Large-Cap Growth Index Fund, which slightly trailed its benchmark, the Russell 1000 Growth Index. Among the fund’s international investments, the Emerging Markets Equity Fund and the Global Natural Resources Fund also detracted from relative performance due in part to the plunge in oil prices throughout much of the period. Concerns regarding growth in certain economies abroad, Greece and geopolitical conflicts such as the crisis in Ukraine, also weighed on emerging markets.
Among fixed-income investments, the Short-Term Bond Fund and High-Yield Fund were detractors from the fund’s returns, lagging their respective benchmarks for the period. (Performance of Managed Allocation Fund’s underlying funds can be found at www.tiaa-cref.org/performance.)
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 7 |
Managed Allocation Fund
Performance as of May 31, 2015
| Total | Average annual | |||||||||||||
| return | total return | |||||||||||||
| since | ||||||||||||||
| Managed Allocation Fund | Inception date | 1 year | 5 years | inception | ||||||||||
| Institutional Class | 3/31/2006 | 6.79 | % | 10.97 | % | 6.09 | % | |||||||
| Retirement Class | 3/31/2006 | 6.53 | 10.70 | 5.83 | ||||||||||
| Retail Class | 3/31/2006 | 6.51 | 10.70 | 5.94 | ||||||||||
| Managed Allocation Composite Index* | — | 6.07 | 10.35 | 6.22 | † | |||||||||
| Broad market index | ||||||||||||||
| Russell 3000® Index | — | 11.86 | 16.54 | 7.81 | † | |||||||||
| Barclays U.S. Aggregate Bond Index | — | 3.03 | 3.90 | 5.06 | † | |||||||||
The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| * | On May 31, 2015, the Managed Allocation Composite Index consisted of: 42.0% Russell 3000 Index; 40.0% Barclays U.S. Aggregate Bond Index; and 18.0% MSCI All Country World ex USA Index. The fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time. |
| † | Performance is calculated from the inception date of the Institutional Class. |
| 8 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
Managed Allocation Fund
$10,000 invested at fund’s inception
Institutional Class (inception March 31, 2006)
For the purpose of comparison, the graph also shows the change in the values of the fund’s composite benchmark and broad market indexes during the same period. The performance of the other share classes varies due to differences in expense charges.
| Asset allocation | ||||
| % of net assets as of 5/31/2015 | ||||
| Equity | ||||
| U.S. equity | 41.2 | % | ||
| International equity | 19.0 | |||
| Fixed income | 39.8 | |||
| Total | 100.0 | |||
Target allocation
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 9 |
About the fund’s composite benchmark
The Managed Allocation Fund uses a composite benchmark that combines the following public indexes in proportions that reflect the fund’s target market sector allocations:
| • | Russell 3000® Index (U.S. equity) measures the performance of the stocks of the 3,000 largest publicly traded U.S. companies, based on market capitalization. The index measures the performance of about 98% of the total market capitalization of the publicly traded U.S. equity market. |
| • | MSCI All Country World ex USA Index (international equity) measures the performance of large- and mid-cap stocks in 45 developed and emerging market countries, excluding the United States. |
| • | Barclays U.S. Aggregate Bond Index (fixed income) measures the performance of the domestic investment-grade, fixed-rate bond market, including government and corporate securities, agency mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. |
Russell 3000 is a trademark and service mark of Russell Investments. TIAA-CREF products are not promoted or sponsored by, or affiliated with, Russell Investments. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. This report is not approved, reviewed or produced by MSCI.
You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.
| 10 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
Managed Allocation Fund ■ May 31, 2015
| % of net | ||||||||||||||
| Shares | Security | Value | assets | |||||||||||
| TIAA-CREF FUNDS — 100.0% (a) | ||||||||||||||
| FIXED INCOME — 39.8% | ||||||||||||||
| 28,465,806 | TIAA-CREF Bond Plus Fund | $ | 304,014,809 | 38.8 | % | |||||||||
| 798,264 | TIAA-CREF High-Yield Fund | 7,966,678 | 1.0 | |||||||||||
| TOTAL FIXED INCOME | 311,981,487 | 39.8 | ||||||||||||
| INTERNATIONAL EQUITY — 19.0% | ||||||||||||||
| 2,575,037 | TIAA-CREF Emerging Markets Equity Fund | 27,192,393 | 3.5 | |||||||||||
| 4,797,108 | TIAA-CREF Enhanced International Equity Index Fund | 37,321,504 | 4.8 | |||||||||||
| 830,669 | TIAA-CREF Global Natural Resources Fund | 7,118,834 | 0.9 | |||||||||||
| 3,527,543 | TIAA-CREF International Equity Fund | 41,836,665 | 5.3 | |||||||||||
| 3,078,122 | TIAA-CREF International Opportunities Fund | 35,059,811 | 4.5 | |||||||||||
| TOTAL INTERNATIONAL EQUITY | 148,529,207 | 19.0 | ||||||||||||
| SHORT-TERM FIXED INCOME — 0.0% | ||||||||||||||
| 73,544 | * | TIAA-CREF Money Market Fund | 73,544 | 0.0 | ||||||||||
| TOTAL SHORT-TERM FIXED INCOME | 73,544 | 0.0 | ||||||||||||
| U.S. EQUITY — 41.2% | ||||||||||||||
| 5,119,685 | TIAA-CREF Enhanced Large-Cap Growth Index Fund | 61,026,641 | 7.8 | |||||||||||
| 5,428,963 | TIAA-CREF Enhanced Large-Cap Value Index Fund | 57,004,112 | 7.3 | |||||||||||
| 4,132,019 | TIAA-CREF Growth & Income Fund | 52,517,958 | 6.7 | |||||||||||
| 3,932,433 | TIAA-CREF Large-Cap Growth Fund | 63,272,842 | 8.1 | |||||||||||
| 3,176,661 | TIAA-CREF Large-Cap Value Fund | 58,958,824 | 7.5 | |||||||||||
| 107,684 | TIAA-CREF Mid-Cap Growth Fund | 2,423,962 | 0.3 | |||||||||||
| 80,052 | TIAA-CREF Mid-Cap Value Fund | 2,018,102 | 0.3 | |||||||||||
| 1,401,951 | TIAA-CREF Small-Cap Equity Fund | 25,445,414 | 3.2 | |||||||||||
| TOTAL U.S. EQUITY | 322,667,855 | 41.2 | ||||||||||||
| TOTAL TIAA-CREF FUNDS | (Cost $676,081,622) | 783,252,093 | 100.0 | |||||||||||
| TOTAL PORTFOLIO | (Cost $676,081,622) | 783,252,093 | 100.0 | |||||||||||
| OTHER ASSETS & LIABILITIES, NET | 330,181 | 0.0 | ||||||||||||
| NET ASSETS | $ | 783,582,274 | 100.0 | % | ||||||||||
| * | Non-income producing |
| (a) | The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. |
| See notes to financial statements | TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 11 |
Statement of assets and liabilities
Managed Allocation Fund ■ May 31, 2015
| ASSETS | |||||
| Affiliated investments, at value‡ | $ | 783,252,093 | |||
| Cash | 1,095,391 | ||||
| Receivable from securities transactions | 839,250 | ||||
| Receivable from Fund shares sold | 53,070 | ||||
| Dividends receivable | 738,368 | ||||
| Due from affiliates | 7,457 | ||||
| Other | 50,593 | ||||
| Total assets | 786,036,222 | ||||
| LIABILITIES | |||||
| Service agreement fees payable | 1,685 | ||||
| Distribution fees payable | 153,058 | ||||
| Due to affiliates | 4,717 | ||||
| Payable for securities transactions | 1,812,752 | ||||
| Payable for Fund shares redeemed | 347,816 | ||||
| Payable for trustee compensation | 51,461 | ||||
| Accrued expenses and other payables | 82,459 | ||||
| Total liabilities | 2,453,948 | ||||
| NET ASSETS | $ | 783,582,274 | |||
| NET ASSETS CONSIST OF: | |||||
| Paid-in-capital | $ | 653,873,589 | |||
| Undistributed net investment income (loss) | 1,139,586 | ||||
| Accumulated net realized gain (loss) on total investments | 21,398,628 | ||||
| Net unrealized appreciation (depreciation) on total investments | 107,170,471 | ||||
| NET ASSETS | $ | 783,582,274 | |||
| INSTITUTIONAL CLASS: | |||||
| Net assets | $ | 14,366,361 | |||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 1,156,299 | ||||
| Net asset value per share | $12.42 | ||||
| RETIREMENT CLASS: | |||||
| Net assets | $ | 49,095,563 | |||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 3,956,307 | ||||
| Net asset value per share | $12.41 | ||||
| RETAIL CLASS: | |||||
| Net assets | $ | 720,120,350 | |||
| Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value) | 57,844,537 | ||||
| Net asset value per share | $12.45 | ||||
| ‡ | Affiliated investments, cost | $ | 676,081,622 | ||
| 12 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund | See notes to financial statements |
Managed Allocation Fund ■ For the year ended May 31, 2015
| INVESTMENT INCOME | ||||
| Dividends from affiliated investments | $ | 14,315,705 | ||
| Total income | 14,315,705 | |||
| EXPENSES | ||||
| Shareholder servicing — Institutional Class | 390 | |||
| Shareholder servicing — Retirement Class | 111,641 | |||
| Shareholder servicing — Retail Class | 321,683 | |||
| Distribution fees — Retail Class | 1,745,830 | |||
| Administrative service fees | 23,634 | |||
| Trustee fees and expenses | 5,918 | |||
| Other expenses | 184,173 | |||
| Total expenses | 2,393,269 | |||
| Less: Expenses reimbursed by the investment adviser | (536,144 | ) | ||
| Net expenses | 1,857,125 | |||
| Net investment income (loss) | 12,458,580 | |||
| NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS | ||||
| Realized gain (loss) from sale of affiliated investments | 4,776,926 | |||
| Realized gain distributions from affiliated investments | 31,487,931 | |||
| Net realized gain (loss) from affiliated investments | 36,264,857 | |||
| Net change in unrealized appreciation (depreciation) from affiliated investments | (617,712 | ) | ||
| Net realized and unrealized gain (loss) from affiliated investments | 35,647,145 | |||
| Net increase (decrease) in net assets from operations | $ | 48,105,725 |
| See notes to financial statements | TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 13 |
Statements of changes in net assets
Managed Allocation Fund ■ For the year ended
| May 31, 2015 | May 31, 2014 | |||||||||
| OPERATIONS | ||||||||||
| Net investment income (loss) | $ | 12,458,580 | $ | 11,018,702 | ||||||
| Net realized gain (loss) from affiliated investments | 36,264,857 | 28,139,388 | ||||||||
| Net change in unrealized appreciation (depreciation) from affiliated investments | (617,712 | ) | 39,568,247 | |||||||
| Net increase (decrease) in net assets from operations | 48,105,725 | 78,726,337 | ||||||||
| DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||
| From net investment income: | Institutional Class | (385,463 | ) | (370,694 | ) | |||||
| Retirement Class | (1,286,820 | ) | (1,064,524 | ) | ||||||
| Retail Class | (19,575,621 | ) | (18,937,433 | ) | ||||||
| From realized gains: | Institutional Class | (324,092 | ) | (104,677 | ) | |||||
| Retirement Class | (1,197,578 | ) | (320,451 | ) | ||||||
| Retail Class | (18,019,642 | ) | (5,665,009 | ) | ||||||
| Total distributions | (40,789,216 | ) | (26,462,788 | ) | ||||||
| SHAREHOLDER TRANSACTIONS | ||||||||||
| Subscriptions: | Institutional Class | 5,175,999 | 5,291,541 | |||||||
| Retirement Class | 11,944,005 | 11,716,408 | ||||||||
| Retail Class | 50,840,780 | 62,813,265 | ||||||||
| Reinvestments of distributions: | Institutional Class | 700,777 | 467,878 | |||||||
| Retirement Class | 2,484,398 | 1,384,975 | ||||||||
| Retail Class | 36,231,334 | 23,669,880 | ||||||||
| Redemptions: | Institutional Class | (4,104,843 | ) | (3,612,804 | ) | |||||
| Retirement Class | (7,004,494 | ) | (5,713,192 | ) | ||||||
| Retail Class | (57,499,358 | ) | (59,323,248 | ) | ||||||
| Net increase (decrease) from shareholder transactions | 38,768,598 | 36,694,703 | ||||||||
| Net increase (decrease) in net assets | 46,085,107 | 88,958,252 | ||||||||
| NET ASSETS | ||||||||||
| Beginning of period | 737,497,167 | 648,538,915 | ||||||||
| End of period | $ | 783,582,274 | $ | 737,497,167 | ||||||
| Undistributed net investment income (loss) included in net assets | $ | 1,139,586 | $ | 1,101,601 | ||||||
| 14 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund | See notes to financial statements |
| Statements of changes in net assets | concluded |
Managed Allocation Fund ■ For the year ended
| May 31, 2015 | May 31, 2014 | |||||||||
| CHANGE IN FUND SHARES | ||||||||||
| Shares sold: | Institutional Class | 419,640 | 451,213 | |||||||
| Retirement Class | 963,704 | 994,236 | ||||||||
| Retail Class | 4,120,190 | 5,287,428 | ||||||||
| Shares reinvested: | Institutional Class | 58,386 | 39,550 | |||||||
| Retirement Class | 207,380 | 117,126 | ||||||||
| Retail Class | 3,013,764 | 1,996,308 | ||||||||
| Shares redeemed: | Institutional Class | (332,151 | ) | (308,082 | ) | |||||
| Retirement Class | (571,251 | ) | (486,862 | ) | ||||||
| Retail Class | (4,664,101 | ) | (4,996,167 | ) | ||||||
| Net increase (decrease) from shareholder transactions | 3,215,561 | 3,094,750 | ||||||||
| See notes to financial statements | TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 15 |
Managed Allocation Fund
| Selected per share data | Ratios and supplemental data | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain (loss) from investment operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized | Ratios to average net assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| For the | Net asset | Net | & unrealized | Total gain | Less distributions from | Total | Net asset | Net assets | Net | |||||||||||||||||||||||||||||||||||||||||||||||||
| period or year ended | value, beginning of period | investment income (loss) | a | gain
(loss) on total investments | j | (loss)
from investment operations | Net investment income | Net realized gains | dividends and distributions | value, end of period | Total return | at
end of period or year (in thousands) | Gross expenses | e | Net expenses | e | investment income (loss) | Portfolio turnover rate | ||||||||||||||||||||||||||||||||||||||||
| Institutional Class: | 5/31/15 | $12.32 | $0.23 | $0.57 | $0.80 | $(0.38 | ) | $(0.32 | ) | $(0.70 | ) | $12.42 | 6.79 | % | $14,366 | 0.03 | % | 0.00 | % | 1.88 | % | 14 | % | |||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.43 | 0.22 | 1.16 | 1.38 | (0.38 | ) | (0.11 | ) | (0.49 | ) | 12.32 | 12.29 | 12,453 | 0.04 | 0.00 | 1.86 | 15 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.92 | 0.22 | 1.58 | 1.80 | (0.29 | ) | — | (0.29 | ) | 11.43 | 18.33 | 9,461 | 0.04 | 0.00 | 2.09 | 17 | ||||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 10.39 | 0.22 | (0.42 | ) | (0.20 | ) | (0.27 | ) | — | (0.27 | ) | 9.92 | (1.79 | ) | 6,724 | 0.04 | 0.00 | 2.26 | 15 | |||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.40 | 0.17 | 1.01 | 1.18 | (0.19 | ) | — | (0.19 | ) | 10.39 | 12.66 | b | 4,142 | 0.06 | c | 0.00 | c | 2.53 | c | 10 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.73 | 0.24 | 0.67 | 0.91 | (0.24 | ) | — | (0.24 | ) | 9.40 | 10.52 | 2,542 | 0.06 | 0.00 | 2.68 | 21 | ||||||||||||||||||||||||||||||||||||||||||
| Retirement Class: | 5/31/15 | 12.31 | 0.21 | 0.56 | 0.77 | (0.35 | ) | (0.32 | ) | (0.67 | ) | 12.41 | 6.53 | 49,096 | 0.28 | 0.25 | 1.67 | 14 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.42 | 0.19 | 1.16 | 1.35 | (0.35 | ) | (0.11 | ) | (0.46 | ) | 12.31 | 12.02 | 41,320 | 0.29 | 0.25 | 1.60 | 15 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.91 | 0.20 | 1.57 | 1.77 | (0.26 | ) | — | (0.26 | ) | 11.42 | 18.04 | 31,195 | 0.29 | 0.25 | 1.84 | 17 | ||||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 10.38 | 0.19 | (0.41 | ) | (0.22 | ) | (0.25 | ) | — | (0.25 | ) | 9.91 | (2.04 | ) | 29,993 | 0.29 | 0.25 | 1.96 | 15 | |||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.39 | 0.14 | 1.03 | 1.17 | (0.18 | ) | — | (0.18 | ) | 10.38 | 12.54 | b | 32,622 | 0.31 | c | 0.25 | c | 2.18 | c | 10 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.72 | 0.21 | 0.67 | 0.88 | (0.21 | ) | — | (0.21 | ) | 9.39 | 10.26 | 24,404 | 0.30 | 0.25 | 2.36 | 21 | ||||||||||||||||||||||||||||||||||||||||||
| Retail Class: | 5/31/15 | 12.35 | 0.20 | 0.57 | 0.77 | (0.35 | ) | (0.32 | ) | (0.67 | ) | 12.45 | 6.51 | 720,120 | 0.32 | 0.25 | 1.64 | 14 | ||||||||||||||||||||||||||||||||||||||||
| 5/31/14 | 11.45 | 0.19 | 1.17 | 1.36 | (0.35 | ) | (0.11 | ) | (0.46 | ) | 12.35 | 12.08 | 683,724 | 0.35 | 0.25 | 1.59 | 15 | |||||||||||||||||||||||||||||||||||||||||
| 5/31/13 | 9.94 | 0.21 | 1.56 | 1.77 | (0.26 | ) | — | (0.26 | ) | 11.45 | 18.00 | 607,883 | 0.36 | 0.25 | 1.92 | 17 | ||||||||||||||||||||||||||||||||||||||||||
| 5/31/12 | 10.41 | 0.20 | (0.42 | ) | (0.22 | ) | (0.25 | ) | — | (0.25 | ) | 9.94 | (2.03 | ) | 525,266 | 0.33 | 0.25 | 1.97 | 15 | |||||||||||||||||||||||||||||||||||||||
| 5/31/11 | † | 9.42 | 0.15 | 1.02 | 1.17 | (0.18 | ) | — | (0.18 | ) | 10.41 | 12.52 | b | 562,043 | 0.26 | c | 0.21 | c | 2.29 | c | 10 | b | ||||||||||||||||||||||||||||||||||||
| 9/30/10 | 8.75 | 0.22 | 0.67 | 0.89 | (0.22 | ) | — | (0.22 | ) | 9.42 | 10.34 | 505,725 | 0.21 | 0.16 | 2.47 | 21 | ||||||||||||||||||||||||||||||||||||||||||
| a | Based on average shares outstanding. |
| b | The percentages shown for this period are not annualized. |
| c | The percentages shown for this period are annualized. |
| e | The Fund’s expenses do not include the expenses of the Underlying Funds. |
| j | Short-term capital gains distributions are presented in net realized and unrealized gain (loss) on total investments for all periods presented. |
| † | Amounts shown are for the eight-month period ended May 31, 2011 and are not necessarily indicative of a full year of operations. The Fund changed its fiscal year end from September 30 to May 31. |
| 16 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund | See notes to financial statements | See notes to financial statements | TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 17 |
Managed Allocation Fund
Note 1—organization and significant accounting policies
The TIAA-CREF Managed Allocation Fund (the “Fund”) is one of the investment portfolios of the TIAA-CREF Funds (the “Trust”), a Delaware statutory trust, that is registered with the Securities and Exchange Commission (“Commission”) under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company.
The Fund is a “fund of funds” that diversifies its assets by investing in Institutional Class shares of other funds of the Trust and potentially other investment pools or investment products. The Fund offers its shares, without a sales load, through its principal underwriter, Teachers Personal Investors Services, Inc. (“TPIS”), which is a wholly owned indirect subsidiary of Teachers Insurance and Annuity Association of America (“TIAA”). Teachers Advisors, Inc. (“Advisors”), a wholly owned indirect subsidiary of TIAA, is registered with the Commission as an investment adviser and provides investment management services for the Fund. The Fund offers three share classes: Institutional, Retirement and Retail Classes of shares. Each class differs by the allocation of class-specific expenses and voting rights in matters affecting a single class.
The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require the use of estimates made by management and the evaluation of subsequent events. Actual results may differ from those estimates. The Fund is an investment company and follows the accounting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 946, Financial Services—Investment Companies. The Net Asset Value (“NAV”) for financial reporting purposes may differ from the NAV for processing transactions. The NAV for financial reporting purposes includes security and shareholder transactions through the date of the report. Total return is computed based on the NAV used for processing transactions. The following is a summary of the significant accounting policies consistently followed by the Fund.
Security valuation: The Fund’s investments in securities are recorded at their estimated fair value as described in the valuation of investments note to the financial statements.
Investments and investment income: Securities transactions are accounted for as of the trade date for financial reporting purposes. Dividends from investments are recorded on the ex-dividend date. Dividends from investments are recorded as dividend income, while capital gain distributions, including short-term capital gain distributions, are recorded as gain distributions from investments on the Statement of Operations. Realized gains and losses on sales from investments in investment companies are based upon the specific identification method.
| 18 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
Income, expenses, realized gains and losses and unrealized appreciation and depreciation of the Fund are allocated on a pro rata basis to each class of shares of the Fund, except for service agreement fees, distribution fees and transfer agency fees and expenses, which are unique to each class of shares. Most expenses of the Trust can be directly attributed to a fund. Expenses that cannot be directly attributed are allocated to each fund in the Trust based upon the average net assets of each fund.
Distributions to shareholders: Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date.
Income taxes: The Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (“Code”) and will not be subject to income taxes to the extent that the Fund distributes all taxable income each year and complies with various other Code requirements. The Fund files income tax returns in U.S. federal and applicable state and local jurisdictions. The Fund’s federal income tax returns are generally subject to examination for a period of three fiscal years after filed. State and local tax returns may be subject to examination for an additional period of time depending on the jurisdiction. Management has analyzed the Fund’s tax positions taken for all open federal income tax years and has concluded that no provision for federal income tax is required in the Fund’s financial statements.
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. GAAP. Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.
For the year ended May 31, 2015, permanent book and tax differences resulting primarily from the reclassification of short-term capital gain distributions received from underlying funds from realized gain (loss) to ordinary income, dividend reclassifications, and the utilization of tax equalization credits were identified and reclassified among the components of the Fund’s net assets. Net investment income and net realized gains (losses), as disclosed on the Statement of Operations, and net assets were not affected by these reclassifications.
Trustee compensation: The Fund pays the members of the Board of Trustees (“Board”), all of whom are independent, certain remuneration for their services, plus travel and other expenses. Trustees may elect to participate in a deferred compensation plan and defer all or a portion of their compensation. In addition, trustees participate in a long-term compensation plan. Amounts deferred are retained by the Fund until paid. Amounts payable to the trustees for compensation are included in the accompanying Statement of Assets and Liabilities. Trustees’ fees, including any deferred and long-term compensation incurred, are reflected in the Statement of Operations.
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 19 |
Notes to financial statements
Note 2—valuation of investments
Portfolio investments are valued at fair value utilizing various valuation methods approved by the Board. U.S. GAAP establishes a hierarchy that prioritizes market inputs to valuation methods. The three levels of inputs are:
| • | Level 1 – quoted prices in active markets for identical securities |
| • | Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
A description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value follows:
Investments in registered investment companies: These investments are valued at their net asset value on the valuation date. These investments are categorized in Level 1 of the fair value hierarchy.
Transfers between levels are recognized at the end of the reporting period. For the year ended May 31, 2015, there were no transfers between levels by the Fund.
As of May 31, 2015, all of the investments in the Fund were valued based on Level 1 inputs.
Note 3—investment adviser and affiliates
Under the terms of its Investment Management Agreement, the Fund does not pay Advisors a fee for the management of the Fund’s investment portfolio. The Fund has entered into an Administrative Service Agreement with Advisors under which the Fund pays Advisors for its costs in providing certain administrative and compliance services to the Fund.
Under the terms of the Fund’s Retirement Class Service Agreement, the Retirement Class of the Fund pays Advisors a monthly fee based on the annual rate of 0.25% of the Fund’s average daily net assets attributable to Retirement Class shares of the Fund for providing certain administrative services related to the maintenance of Retirement Class shares on retirement plan or other platforms. Substantially all of the Retirement Class shareholder servicing fees reported on the Statement of Operations are paid to
| 20 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
continued
Advisors under the Service Agreement. Under the terms of a distribution Rule 12b-1 plan, the Retail Class of the Fund compensated TPIS for providing distribution, promotional and/or shareholder services to the Retail Class of the Fund at the annual rate of 0.25% of the average daily net assets attributable to the Fund’s Retail Class.
Advisors has agreed to reimburse the Fund if its total expense ratio (excluding interest, taxes, brokerage commissions and other transactional expenses, acquired fund fees and expenses and extraordinary expenses) exceeds 0.00% of average daily net assets for the Institutional Class shares; and 0.25% of average daily net assets for the Retirement and Retail Class shares. The expense reimbursement arrangements will continue through at least September 30, 2015, unless changed with approval of the Board.
Investments in other investment companies advised by Advisors are deemed to be affiliated investments. The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds. Information regarding transactions with affiliated companies is as follows:
| Issue | Value at May 31, 2014 | Purchase cost | Sales proceeds | Realized gain (loss) | a | Dividend income | Value at May 31, 2015 | |||||||||||
| TIAA-CREF Managed Allocation Fund | ||||||||||||||||||
| TIAA-CREF Bond Plus | $ | 277,892,585 | $ | 55,860,990 | $ | 28,206,186 | $ | 3,562,876 | $ | 7,936,002 | $ | 304,014,809 | ||||||
| TIAA-CREF Emerging Markets Equity | 24,977,579 | 4,793,128 | 1,341,655 | (90,911 | ) | 323,956 | 27,192,393 | |||||||||||
| TIAA-CREF Enhanced International Equity Index | 34,211,263 | 7,599,574 | 2,155,861 | 1,109,214 | 1,204,697 | 37,321,504 | ||||||||||||
| TIAA-CREF Enhanced Large-Cap Growth Index | 58,835,658 | 9,047,566 | 9,495,729 | 6,027,554 | 652,226 | 61,026,641 | ||||||||||||
| TIAA-CREF Enhanced Large-Cap Value Index | 56,959,741 | 9,339,315 | 8,515,218 | 5,871,312 | 886,827 | 57,004,112 | ||||||||||||
| TIAA-CREF Global Natural Resources | 7,201,937 | 1,562,350 | 414,721 | (72,249 | ) | 124,007 | 7,118,834 | |||||||||||
| TIAA-CREF Growth & Income | 48,988,384 | 7,178,382 | 5,469,653 | 4,915,296 | 566,839 | 52,517,958 | ||||||||||||
| TIAA-CREF High-Yield | 14,593,820 | 7,912,328 | 14,368,880 | 31,482 | 327,157 | 7,966,678 | ||||||||||||
| TIAA-CREF International Equity | 36,060,296 | 12,408,129 | 7,088,318 | (175,249 | ) | 554,309 | 41,836,665 | |||||||||||
| TIAA-CREF International Opportunities | 34,163,662 | 3,852,585 | 4,176,567 | (20,331 | ) | 348,931 | 35,059,811 | |||||||||||
| TIAA-CREF Large-Cap Growth | 58,320,941 | 13,290,392 | 12,019,583 | 8,025,821 | 173,964 | 63,272,842 | ||||||||||||
| TIAA-CREF Large-Cap Value | 56,216,623 | 5,371,523 | 4,405,193 | 3,179,774 | 1,001,805 | 58,958,824 | ||||||||||||
| TIAA-CREF Mid-Cap Growth | 2,477,443 | 687,052 | 725,318 | 357,103 | 11,095 | 2,423,962 | ||||||||||||
| TIAA-CREF Mid-Cap Value | 2,093,054 | 352,352 | 519,832 | 179,422 | 29,435 | 2,018,102 | ||||||||||||
| TIAA-CREF Money Market | 73,544 | — | — | — | — | 73,544 | ||||||||||||
| TIAA-CREF Small-Cap Equity | 23,844,711 | 7,730,817 | 5,902,131 | 3,363,743 | 174,455 | 25,445,414 | ||||||||||||
| $ | 736,911,241 | $ | 146,986,483 | $ | 104,804,845 | $ | 36,264,857 | $ | 14,315,705 | $ | 783,252,093 | |||||||
| a | Includes realized gains distributions received. |
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 21 |
Notes to financial statements
Note 4—investments
Net unrealized appreciation (depreciation): At May 31, 2015, the cost of portfolio investments for federal income tax purposes was $679,051,997. Net unrealized appreciation of portfolio investments for federal income tax purposes was $104,200,096, consisting of gross unrealized appreciation of $105,968,479 and gross unrealized depreciation of $(1,768,383).
Purchases and sales: Purchases and sales of portfolio securities (other than short-term instruments) for the year ended May 31, 2015 were $146,986,483 and $104,804,845, respectively.
Note 5—distributions to shareholders and other tax items
The tax character of distributions paid to shareholders during the years ended May 31, 2015 and May 31, 2014 was as follows:
| Ordinary income | Long-term capital gains |
Total | ||
| 5/31/2015 | $21,322,086 | $19,467,130 | $40,789,216 | |
| 5/31/2014 | 20,372,651 | 6,090,137 | 26,462,788 |
As of May 31, 2015, the components of accumulated earnings on a tax basis consisted of $1,177,219 of undistributed ordinary income, $24,369,000 of undistributed long-term capital gains, and $104,200,099 of unrealized appreciation.
The difference between book basis and tax basis net investment income, net realized gains and losses, and unrealized appreciation and depreciation is attributable primarily to the tax deferral of losses on wash sales, and the treatment of short term gain as ordinary income for tax purposes.
Note 6—line of credit
The Fund participates in a $1.5 billion unsecured revolving credit facility that can be used for temporary purposes, including, without limitation, the funding of shareholder redemptions. This facility expired June 2015. A new facility was entered into on June 23, 2015 expiring June 21, 2016. Certain affiliated accounts and mutual funds, each of which is managed by Advisors, or an affiliate of Advisors, also participate in this facility. An annual commitment fee for the credit facility is borne by the participating accounts and mutual funds on a pro rata basis. Interest associated with any borrowing under the facility is charged to the borrowing accounts or mutual funds at a specified rate of interest. The Fund is not liable for borrowings under the facility by other affiliated accounts or mutual funds. For the year ended May 31, 2015, there were no borrowings under this credit facility by the Fund.
| 22 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
concluded
Note 7—indemnification
In the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and that provide general indemnities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund that have not yet occurred. Also, under the Fund’s organizational documents, the trustees and officers of the Fund are indemnified against certain liabilities that may arise out of their duties to the Fund. However, based on experience, the Fund expects the risk of loss due to these warranties and indemnities to be unlikely.
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 23 |
Report of independent registered public accounting firm
To the Board of Trustees of the TIAA-CREF Funds and Shareholders of the TIAA-CREF Managed Allocation Fund:
In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Managed Allocation Fund (the “Fund”) at May 31, 2015, the results of its operations, the changes in its net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at May 31, 2015 by correspondence with the transfer agent, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Baltimore, Maryland
July 17, 2015
| 24 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
| Trustees and officers (unaudited) |
TIAA-CREF Funds ■ May 31, 2015
Trustees
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | Number of portfolios in fund complex overseen by Trustee |
Other directorship(s) held by trustee | |||||
| Forrest Berkley c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1954 |
Trustee | Indefinite term. Trustee since 2006. | Retired Partner (since 2006), Partner (1990–2005) and Head of Global Product Management (2003–2005), GMO (formerly, Grantham, Mayo, Van Otterloo & Co.) (investment management); and member of asset allocation portfolio management team, GMO (2003–2005). | 82 | Director, the Maine Coast Heritage Trust; Investment Committee member, Maine Community Foundation and the Elmina B. Sewall Foundation; and Trustee of the Maine Chapter of the Nature Conservancy. | |||||
| Nancy A. Eckl c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Trustee | Indefinite term. Trustee since 2007. | Vice President (1990–2006), American Beacon Advisors, Inc., and Vice President of certain funds advised by American Beacon Advisors, Inc. | 82 | Independent Director, The Lazard Funds, Inc., Lazard Retirement Series, Inc., Lazard Global Total Return and Income Fund, Inc. and Lazard World Dividend & Income Fund, Inc.; and Independent Trustee, Lazard Alternative Emerging Markets 1099 Fund. | |||||
| Michael A. Forrester c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1967 |
Trustee | Indefinite term. Trustee since 2007. | Chief Executive Officer (since 2014) and Chief Operating Officer (2007–2014), Copper Rock Capital Partners, LLC; Chief Operating Officer, DDJ Capital Management (2003–2006). | 82 | Director of Copper Rock Capital Partners, LLC (investment adviser). |
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 25 |
| Trustees and officers (unaudited) | continued |
TIAA-CREF Funds ■ May 31, 2015
Trustees — continued
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | Number of portfolios in fund complex overseen by Trustee |
Other directorship(s) held by trustee | |||||
| Howell E. Jackson c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1954 |
Chairman of the Board and Trustee | Indefinite term. Trustee since 2005; Chairman for term ending December 31, 2015. Chairman since 2013. | James S. Reid, Jr. Professor of Law (since 2004), Senior Advisor to the President and Provost (2010–2012), Acting Dean (2009), Vice Dean for Budget (2003–2006) and on the faculty (since 1989) of Harvard Law School. | 82 | Director, D2D Fund. | |||||
| Nancy L. Jacob c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1943 |
Trustee | Indefinite term. Trustee since 1999. | Principal, NL Jacob Consultant (economic and business consultant) (since 2012); President and Founder (2006–2012) of NLJ Advisors, Inc. (investment adviser); President and Managing Principal, Windermere Investment Associates (1997–2006). | 82 | None | |||||
| Thomas J. Kenny c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1963 |
Trustee | Indefinite term. Trustee since 2011. | Partner (2004–2010) and Managing Director (1999–2004), Goldman Sachs Asset Management. | 82 | Director, Aflac Insurance. Inc., Sansum Clinic and cielo24; Investment committee member, Cottage Health System; Member, University of California at Santa Barbara Arts and Lectures Advisory Council; Trustee and Chairman, Crane Country Day School. |
| 26 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
| Bridget A. Macaskill c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1948 |
Trustee | Indefinite term. Trustee since 2003. | Chief Executive Officer (since 2010), President (since 2009) and Chief Operating Officer (2009–2010), First Eagle Investment Management, LLC; Principal, BAM Consulting LLC (2003–2009); Independent Consultant for Merrill Lynch (2003–2009). | 82 | Director, Arnhold and S. Bleichroeder Holdings; First Eagle Investment Management, LLC; Jupiter Fund Management plc; American Legacy Foundation (Investment Committee); University of Edinburgh (Campaign Board); the North Shore Land Alliance, Prep for Prep; and Close Brothers Group plc. | |||||
| James M. Poterba c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1958 |
Trustee | Indefinite term. Trustee since 2006. | President and Chief Executive Officer, National Bureau of Economic Research (“NBER”) (since 2008); Affiliated Faculty Member of the Finance Group at the Alfred P. Sloan School of Management, Massachusetts Institute of Technology (“MIT”) (since 2014); Mitsui Professor of Economics, MIT (since 1996); Head (2006–2008) and Associate Head (1994–2000 and 2001–2006), Economics Department of MIT; and Program Director, NBER (1990–2008). | 82 | Director, The Alfred P. Sloan Foundation and National Bureau of Economic Research; Member, Congressional Budget Office Panel of Economic Advisers. | |||||
| Maceo K. Sloan c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1949 |
Trustee | Indefinite term. Trustee since 1999. | Chairman, President and Chief Executive Officer, Sloan Financial Group, Inc. (since 1991); Chairman and Chief Executive Officer (since 1991) and Chief Investment Officer (1991–2013), NCM Capital Management Group, Inc.; Chairman and Chief Executive Officer (since 2003) and Chief Investment Officer (2003–2013), NCM Capital Advisers Inc.; and Chairman, President and Principal Executive Officer, NCM Capital Investment Trust (2007–2012). | 82 | Director, SCANA Corporation (energy holding company). |
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 27 |
| Trustees and officers (unaudited) | continued |
TIAA-CREF Funds ■ May 31, 2015
Trustees — concluded
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | Number of portfolios in fund complex overseen by Trustee |
Other directorship(s) held by trustee | |||||
| Laura T. Starks c/o Corporate Secretary 730 Third Avenue New York, NY 10017-3206 YOB: 1950 |
Trustee | Indefinite term. Trustee since 2006. | Associate Dean for Research (since 2011), McCombs School of Business, University of Texas at Austin (“McCombs”), and Director, AIM Investment Center at McCombs (since 2000). Charles E. and Sarah M. Seay Regents Chair in Finance (since 2002) and Professor, University of Texas at Austin (since 1987). Chairman, Department of Finance, University of Texas at Austin (2002–2011). | 82 | Member of the Board of Governors of the Investment Company Institute, the Governing Council of Independent Directors Council (an association for mutual fund directors); and Investment Advisory Committee, Employees Retirement System of Texas. | |||||
| Officers |
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | |||||||
| Richard S. Biegen TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Chief Compliance Officer | One-year term. Vice President and Chief Compliance Officer since 2008. | Managing Director, Senior Compliance officer of Teachers Insurance and Annuity Association of America (“TIAA”). Chief Compliance Officer of the College Retirement Equities Fund (“CREF”), TIAA Separate Account VA-1, TIAA-CREF Funds, and TIAA-CREF Life Funds (collectively, the “TIAA-CREF Fund Complex”). | |||||||
| 28 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
| Carol W. Deckbar TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Executive Vice President | One-year term. Executive Vice President since 2013. | Executive Vice President, Chief Executive Officer of TIAA-CREF Asset Management LLC (“TCAM”) and Executive Vice President of the TIAA-CREF Fund Complex. | |||||||
| Phillip G. Goff TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1963 |
Principal Financial Officer, Principal Accounting Officer and Treasurer | One-year term. Principal Financial Officer, Principal Accounting Officer and Treasurer since 2007. | Senior Vice President, Corporate Controller of TIAA. Treasurer of CREF; Principal Financial Officer, Principal Accounting Officer and Treasurer of the TIAA-CREF Funds and TIAA-CREF Life Funds. | |||||||
| Stephen Gruppo TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1959 |
Executive Vice President | One-year term. Executive Vice President since 2009. | Executive Vice President, Chief Risk Officer of TIAA. Executive Vice President of the TIAA-CREF Fund Complex. | |||||||
| Robert G. Leary TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1961 |
President and Principal Executive Officer | One-year term. President and Principal Executive Officer since 2013. | Executive Vice President and President of Asset Management of TIAA. Principal Executive Officer and Executive Vice President of CREF and VA-1. Principal Executive Officer and President of TIAA-CREF Funds and TIAA-CREF Life Funds. Prior to joining TIAA, Mr. Leary served as a Representative, Securities Research, Inc., President and Chief Operating Officer, U.S., ING Americas, Chief Executive Officer, ING Insurance US, and Chairman and Chief Executive Officer, ING Investment Management, Americas. | |||||||
| Ronald R. Pressman TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1958 |
Executive Vice President | One-year term. Executive Vice President since 2012. | Executive Vice President and Chief Operating Officer of TIAA, and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Mr. Pressman served as President and Chief Executive Officer of General Electric Capital Real Estate. | |||||||
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 29 |
| Trustees and officers (unaudited) | concluded |
TIAA-CREF Funds ■ May 31, 2015
Officers — concluded
| Name, address and year of birth (“YOB”) |
Position(s) held with fund |
Term of office and length of time served |
Principal occupation(s) during past 5 years | |||||||
| Phillip T. Rollock TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1962 |
Senior Managing Director and Corporate Secretary | One-year term. Senior Managing Director since 2013 and Corporate Secretary since 2012. | Senior Managing Director, Corporate Secretary of TIAA and the TIAA-CREF Fund Complex. | |||||||
| Otha T. Spriggs, III TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1951 |
Executive Vice President | One-year term. Executive Vice President since 2012. | Executive Vice President and Chief Human Resources Officer of TIAA and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Mr. Spriggs served as Senior Vice President of Human Resources, Boston Scientific; President of Integrated People Solutions; Senior Vice President, Human Resources and various human resources leadership roles, CIGNA Corp. | |||||||
| Edward D. Van Dolsen TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1958 |
Executive Vice President | One-year term. Executive Vice President, since 2006. | Executive Vice President, President of Retirement and Individual Financial Services of TIAA, and Executive Vice President of the TIAA-CREF Fund Complex. | |||||||
| Constance K. Weaver TIAA-CREF 730 Third Avenue New York, NY 10017-3206 YOB: 1952 |
Executive Vice President | One-year term. Executive Vice President since 2010. | Executive Vice President, Chief Marketing Officer of TIAA and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Ms. Weaver served as Senior Vice President, The Hartford Financial Services Group, Inc. | |||||||
Please note that the Funds’ Statement of Additional Information (SAI) includes information about the Funds’ trustees and is available, without charge, through our website, tiaa-cref.org, or by calling 800 223–1200.
| 30 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
Renewal of investment management agreement (unaudited)
Board renewal of the investment management agreement for the TIAA-CREF Managed Allocation Fund
Among its other duties, the Board of Trustees (the “Board” or the “Trustees”) of the TIAA-CREF Funds (the “Trust”) is responsible for determining whether to initially approve and subsequently annually renew the investment management agreement (the “Agreement”) between Teachers Advisors, Inc. (“TAI”) and the Trust on behalf of its series, the TIAA-CREF Managed Allocation Fund (the “Fund”). Under the Agreement, TAI is responsible for providing investment advisory services and overseeing the everyday operations and other service providers of the Fund.
Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”) requires that, after an initial period of up to two years, the Agreement for the Fund will remain in effect only if the Board, including a majority of those Trustees who have no direct or indirect interest in the Agreement, and who are not “interested persons” of the Trust, as that term is defined in the 1940 Act, annually renews that Agreement. All of the Trustees are deemed to be independent persons for this purpose.
Overview of the renewal process
The Board held meetings on March 12, 2015 and March 26, 2015, at which it considered the annual renewal of the Agreement with respect to the Fund using its previously-established process. As part of this process, the Board delegated certain tasks to its Operations Committee. Among these tasks, the Operations Committee worked with TAI, other Board members and legal counsel to the Trustees to develop guidelines and specific requests relating to the types of information to be provided to the Board in connection with the proposed contract renewal. The Operations Committee also worked with TAI to schedule and report on various follow-up items throughout the prior year that were requested by the Committee and the Board during the 2014 renewal process. During a series of meetings held prior to the March 12 and March 26, 2015 Board meetings, the Operations Committee, along with other Committees, as applicable, reviewed such guidelines and follow-up requests in consultation with TAI representatives and input from other Trustees, legal counsel to the Trustees and legal counsel to TAI and the Trust, and then evaluated the information produced in accordance with those guidelines and requests.
Among other matters, the Operations Committee, following its consultations with others as noted above, confirmed or established various guidelines regarding the preparation of reports to be provided to the Board with respect to the Fund by the Board Reporting and Compliance unit of Lipper, Inc. (“Lipper”). Lipper is an independent provider of investment company data that is widely recognized as a leading source of independent data used by independent directors and trustees of investment companies during their advisory contract review processes.
Based on guidelines provided by the Operations Committee on behalf of the Board, Lipper produced, among other information, performance and expense comparison data regarding the Fund, including data relating to the Fund’s total expense ratio and
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 31 |
Renewal of investment management agreement (unaudited)
short-term and long-term investment performance. Lipper also compared much of this data for the Fund against a universe of investment companies and against a more selective peer group of mutual funds with similar investment objectives and strategies, each of which was selected by Lipper, and, in the case of the investment performance data, against one or more appropriate broad-based benchmark indices. In each case, Lipper summarized the methodologies it employed to provide the data contained in its reports. In addition, Lipper represented to the Board that its reports were designed specifically to provide the Board with the fee, expense and performance information that is necessary to help the Board satisfy its duties under Section 15(c) of the 1940 Act. Lipper also represented that the purpose of its materials is to provide an unbiased view of the Fund’s relative position regarding the level of fees, expenses and total return performance against a competitive peer group and universe (as applicable) identified by Lipper (and not TAI).
Among other matters, the Board also requested and reviewed various information provided by TAI to facilitate the Trustees’ evaluation of the reasonableness of any profits earned by TAI with respect to its services to the Fund pursuant to the Agreement. In this regard, the Board recognized that different Trustees could, and likely would, give different weight to different factors when evaluating the profits, if any, realized or anticipated to be realized by TAI, which is also true of their assessment of the Fund’s management fee rate and other aspects of the proposed renewal of the Agreement.
In advance of the Board meetings held on March 12 and March 26, 2015, legal counsel for the Trustees requested on behalf of the Board, and TAI provided, information that was designed to assist the Board in its consideration of whether to renew the Agreement for the Fund. In addition to the data provided by Lipper as described above, this information included, but was not limited to, the following: (1) further information relating to the Fund’s investment performance, including performance ratings provided by Morningstar, Inc. (“Morningstar”), which is a widely recognized mutual fund ranking service, together with an explanation of any events that had a material impact on the Fund’s performance during that period; (2) a description of any fee waiver or expense reimbursement arrangements that were proposed or were in place during the prior year and the extent to which such arrangements would be continued or modified in the coming year; (3) a comparison of the Fund’s fee rate under the Agreement to the fee rates of any other comparable accounts managed by TAI or its affiliates; (4) any “fall-out” benefits that accrued or were identified as reasonably likely to accrue to TAI or its affiliates due to their relationship with the Fund aside from TAI’s direct fee payments pursuant to the Agreement; (5) information regarding TAI’s financial resources, senior professional personnel, overall staffing levels, portfolio manager compensation arrangements, insurance coverage, portfolio trading and best execution practices, and any actual and potential conflicts of interest identified by TAI in connection with rendering services to the Fund; (6) information as to any profits earned by TAI in connection with its services pursuant to the Agreement; (7) a copy of the Agreement and certain related agreements between the Fund and affiliates of TAI; (8) a copy of TAI’s Form ADV
| 32 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
continued
registration statement as filed with the Securities and Exchange Commission (which was presented only to legal counsel for the Trustees); and (9) proposed narrative explanations of reasons why the Board should renew the Agreement.
In considering whether to renew the Agreement with respect to the Fund, the Board reviewed various factors, including: (1) the nature, extent and quality of services provided or to be provided by TAI to the Fund; (2) the Fund’s investment performance; (3) the costs of the services provided to the Fund and the profits realized or potential profits to be realized (if any) by TAI and its affiliates from their relationship with the Fund; (4) fees charged by other advisers; (5) the extent to which economies of scale have been realized or are anticipated to be realized as the Fund grows; (6) whether the fee schedule set forth in the Agreement reflects any such economies of scale for the benefit of Fund investors; (7) comparisons of services and fee rates with any contracts entered into by TAI with other clients to whom TAI provides comparable services; and (8) any other benefits derived or anticipated to be derived by TAI or its affiliates from their relationship with the Fund. As a general matter, the Board viewed these factors in their totality, with no single factor being the principal factor in determining whether to renew the Agreement.
In reaching its decisions regarding the renewal of the Agreement for the Fund, the Board took into account the information described above, other information provided to the Board in connection with this process, and relevant information provided to the Board and to its Committees on an ongoing basis in connection with the Board’s general oversight duties with respect to the Fund. In addition, the Board received and considered information from its legal counsel as to certain relevant guidelines that relate to the renewal process under Section 15(c) of the 1940 Act and certain other legal authorities.
In deciding whether to renew the Agreement for the Fund, each Trustee may have accorded different weight to different factors and, thus, each Trustee may have had a different basis for his or her ultimate decision to vote to renew the Agreement for the Fund. At its meeting on March 26, 2015, the Board voted unanimously to renew the Agreement for the Fund. Set forth below are certain general factors the Board considered for the Fund.
The nature, extent and quality of services
The Board considered that TAI is an experienced investment adviser that has managed the Fund since its operations commenced. Investment professionals at TAI and its affiliates also manage various accounts of the College Retirement Equities Fund (“CREF”), the TIAA-CREF Life Funds (the “Life Funds”), the TIAA Separate Account VA-1 and other series of the Trust. Under the Agreement, TAI is responsible for, among other duties: managing the assets of the Fund (which is a fund of funds that invests its assets in the securities of other investment companies managed by TAI, referred to as “underlying funds”), including selecting underlying funds and allocating the Fund’s assets among the underlying funds, conducting research, recommending investments and placing orders to buy and sell securities for the
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 33 |
Renewal of investment management agreement (unaudited)
Fund’s investment portfolio; active daily monitoring of the investment portfolio by various personnel with specific responsibility for the particular types of investments in question; reporting on the investment performance of the Fund to the Board on a regular basis; and carrying out, or overseeing the provision of, various administrative services to the Fund. The Board considered that TAI has carried out these responsibilities in a competent and professional manner.
The Board also considered, among other factors, the performance of the Fund, as discussed below. In addition, the Board considered the nature and quality of non-portfolio management services provided by TAI and its affiliates. In this regard, the Board considered its ongoing review of the performance of certain affiliated and unaffiliated service providers, including the quality of services provided by those firms and TAI’s oversight of those service providers and the outsourcing of certain services to other firms.
Investment performance
The Board considered the investment performance of the Fund over the periods indicated in the synopsis below. The Board considered the Fund’s performance as compared to its peer group and peer universe (as applicable) and its benchmark index. The Board also reviewed the performance of the Fund before any reductions for fees or expenses. This analysis considered the impact of net asset value rounding and excluded the effects of fair valuation, foreign exchange rates, effective tax rates, securities lending and class action litigation on the Fund’s performance as compared to the performance of its benchmark index. For details regarding the Fund’s performance, see the synopsis below. The Board concluded that, under the totality of circumstances considered, the investment performance of the Fund was within an acceptable range.
Cost and profitability
The Board considered financial and profitability data relating to TAI for the calendar year 2014. The Board considered TAI’s profit calculations with respect to its services to the Fund both before and after taking into account the costs incurred directly or indirectly by TAI in connection with the distribution of shares of the Fund. The Board also noted that TAI did not charge a management fee for its advisory services to the Fund. Additionally, the Board acknowledged certain permanent fee rate reductions, temporary fee waivers and reimbursements of expenses above specified amounts undertaken by TAI with respect to the underlying funds in which the Fund invests that, in turn, reduce the Fund’s expenses. The Board considered that TAI had incurred a net loss with respect to the Fund under the Agreement for the one-year period ended December 31, 2014, and expected this trend to continue. The Board also considered that TAI may have indirect earnings or losses with respect to the Fund based on the Fund’s investment in underlying funds also managed by TAI.
During its review of TAI’s profits, the Board noted its ongoing efforts to examine the level of personnel and other resources available to TAI for its portfolio management and other functions, especially any effect of the purchase of Nuveen Investments by
| 34 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
continued
TAI’s parent on such resources, so as to assess whether sufficient resources are being devoted to these functions.
Fees charged by other advisers
The Board considered information regarding fees paid to other advisers for managing similar funds, as analyzed by Lipper. The Board acknowledged that TAI did not charge a management fee to this Fund.
Economies of scale
The Board considered whether TAI has experienced or is anticipated to experience economies of scale in connection with the operation of the Fund. The Board also considered that because TAI operated the Fund at a loss, there was little opportunity to pass economies of scale on to Fund shareholders. Based on all factors considered, the Board concluded that the Fund’s fee schedule was within an acceptable range in light of current economies of scale considerations and current assets.
Fee comparison with other TAI clients
The Board considered that TAI and its affiliates provide similar investment management services to other investment companies. The Board noted that TAI provides funds of funds management services to the TIAA-CREF Lifestyle Funds and the TIAA-CREF Life Balanced Fund, with an annual management fee rate of 0.10% of average daily net assets, the TIAA-CREF Lifecycle Funds, which have an annual management fee rate of 0.10% that is entirely waived by TAI, and the TIAA-CREF Lifecycle Index Funds, which also have a 0.10% annual management fee rate that is subject to certain temporary, voluntary waivers by TAI. TAI also manages other asset allocation products, such as education savings plans (529 plans).
Other benefits
The Board also considered additional benefits to TAI and its affiliates arising from the Agreement. For example, TAI and its affiliates may benefit from the advisory relationship with the Fund to the extent that this relationship results in potential investors viewing the TIAA-CREF group of companies as a leading retirement plan provider in the academic and nonprofit markets and as a single source for all their financial service needs. Both TAI and the Fund may benefit from economies of scale to the extent that the Fund is managed in the same manner and by the same personnel as certain of the CREF Accounts, the Life Funds and other series of the Trust. TAI and the Fund may also benefit from TAI’s ability to acquire investment research related to its commission (i.e., soft dollar) arrangements. Additionally, the Fund may be utilized as investment options for other products and businesses of TAI and its affiliates, such as variable products.
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 35 |
| Renewal of investment management agreement (unaudited) | concluded |
Specific factors
The Board considered the following specific factors (among others) in connection with its determination to renew the Agreement with respect to the Fund. If the Fund is described as being in the “1st” quintile, it is in the best of five groups (that is, the group has the best performance or the lowest expenses, as the case may be). References below to quintiles are based on data provided to the Board in the reports prepared by Lipper. The specific management fee, expense and performance factors outlined below are based on the Institutional Class shares of the Fund. Because the Institutional Class generally has lower non-management expenses than the Retirement, Premier and Retail Classes of the Fund, the expenses and performance of these other Classes will differ from the expenses and performance shown for the Institutional Class. All time periods referenced below are ended December 31, 2014. Under the Morningstar rating system, 5 stars is the highest (best) rating category and 1 star is the lowest (worst) rating category. The statement below regarding a “net loss” refers to TAI incurring a loss for the services that it rendered to the Fund during 2014 under the Agreement.
Managed Allocation Fund
| • | The Fund’s annual contractual management fee rate is 0.00% of average daily net assets. |
| • | The Fund’s total expenses were in the 1st quintile of the group of comparable funds selected by Lipper for expense comparison purposes (“Expense Group”) and in the 1st quintile of the universe of comparable funds selected by Lipper for expense comparison purposes (“Expense Universe”). The Fund did not have an Expense Group or Expense Universe with respect to its actual management fee rate and contractual management fee rate. |
| • | The Fund was in the 1st quintile of the group of comparable funds selected by Lipper for performance comparison purposes for the one-, three- and five-year periods. The Fund was in the 3rd, 1st and 1st quintiles of the universe of comparable funds selected by Lipper for performance comparison purposes for the one-, three- and five-year periods, respectively. |
| • | The Fund received an Overall Morningstar Rating of 3 stars. |
| • | TAI incurred a net loss with respect to its services to the Fund for the one-year period without taking into account any profits TAI might have earned with respect to the underlying funds (which are also managed by TAI) in which this Fund invests. |
Based primarily on the foregoing factors and considerations, the Board renewed the Agreement for the Fund.
| 36 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
Important tax information (unaudited)
For the year ended May 31, 2015, the Fund designates $20,336,143 (or the maximum amount allowable) as being from net long-term capital gains.
For the year ended May 31, 2015, the Fund designates 27.83% (or the maximum amount allowable) of ordinary income dividends paid as qualified dividends.
For the year ended May 31, 2015, the Fund designates 17.59% (or the maximum amount allowable) of ordinary income dividends paid as qualifying for the corporate dividends received deduction.
During the year ended May 31, 2015, the Managed Allocation Fund received income of $1,692,327 ($0.02806 per share) from underlying funds that was from foreign sources, and has elected to pass through foreign taxes paid by underlying funds of $150,932 ($0.00250 per share).
The information and distributions reported herein may differ from the information and distributions reported to shareholders for the calendar year ending December 31, 2015, which will be reported in conjunction with your 2015 Form 1099-DIV.
By early 2016, shareholders should receive their Form 1099-DIV and a tax information letter from the Fund. For your specific situation, we recommend that you consult a professional tax adviser.
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 37 |
Additional information about index providers (unaudited)
Russell Indexes
The Russell 3000® Index is a trademark/service mark of the Russell Investment Group. The Russell Investment Group is the owner of the copyrights relating to the Russell Indexes and is the source and owner of the data contained or reflected in the performance values relating to the Russell Indexes. The funds are not promoted by, nor in any way affiliated with, the Russell Investment Group. The Russell Investment Group is not responsible for and has not reviewed the funds nor any associated literature or publications and the Russell Investment Group makes no representation or warranty, express or implied, as to their accuracy, or completeness.
Russell reserves the right, at any time and without notice, to alter, amend, terminate or in any way change the Russell Indexes. Russell has no obligation to take the needs of any particular fund or its participants or any other product or person into consideration in determining, composing or calculating any of the Russell Indexes.
Russell’s publication of the Russell Indexes in no way suggests or implies an opinion by Russell as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell Indexes are based. RUSSELL MAKES NO REPRESENTATION, WARRANTY OR GUARANTEE REGARDING THE USE OR THE RESULTS OF USE OF THE RUSSELL INDEXES OR ANY DATA INCLUDED THEREIN, OR ANY SECURITIES (OR COMBINATION THEREOF) COMPRISING THE RUSSELL INDEXES. RUSSELL MAKES NO OTHER EXPRESS OR IMPLIED WARRANTY, AND EXPRESSLY DISCLAIMS ANY WARRANTY, OF ANY KIND, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE RUSSELL INDEX(ES) OR ANY DATA OR ANY SECURITY (OR COMBINATION THEREOF) INCLUDED THEREIN.
MSCI Indexes
The funds are not sponsored, endorsed, sold or promoted by MSCI Inc. (“MSCI”), any of its affiliates, any of its information providers or any other third party involved in, or related to, compiling, computing or creating any MSCI index (collectively, the “MSCI Parties”). The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names are service mark(s) of MSCI or its affiliates and have been licensed for use for certain purposes by Teachers Advisors, Inc. None of the MSCI parties makes any representation or warranty, express or implied, to the issuer or owners of this fund or any other person or entity regarding the advisability of investing in funds generally or in this fund particularly or the ability of any MSCI index to track corresponding stock market performance. MSCI or its affiliates are the licensors of certain trademarks, service marks and trade names and of the MSCI indexes which are determined, composed and calculated by MSCI without regard to this fund or the issuer or owners of this fund or any other person or entity. None of the MSCI parties has any obligation to take the needs of the issuer or owners of this fund or any other person or entity into consideration in determining, composing or calculating the MSCI indexes. None of the MSCI parties is responsible for or has participated in the determination of the timing of, prices at, or quantities of this fund to be issued or in the determination or calculation of the equation by or the consideration into which
| 38 | 2015 Annual Report ■ TIAA-CREF Managed Allocation Fund |
concluded
this fund is redeemable. Further, none of the MSCI parties has any obligation or liability to the issuer or owners of this fund or any other person or entity in connection with the administration, marketing or offering of this fund.
ALTHOUGH MSCI SHALL OBTAIN INFORMATION FOR INCLUSION IN OR FOR USE IN THE CALCULATION OF THE MSCI INDEXES FROM SOURCES THAT MSCI CONSIDERS RELIABLE, NONE OF THE MSCI PARTIES WARRANTS OR GUARANTEES THE ORIGINALITY, ACCURACY AND/OR THE COMPLETENESS OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ISSUER OF THE FUND, OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY, FROM THE USE OF ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. NONE OF THE MSCI PARTIES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS OF OR IN CONNECTION WITH ANY MSCI INDEX OR ANY DATA INCLUDED THEREIN. FURTHER, NONE OF THE MSCI PARTIES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, AND THE MSCI PARTIES HEREBY EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO EACH MSCI INDEX AND ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL OR ANY OTHER DAMAGES (INCLUDING LOST PROFITS) EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
No purchaser, seller or holder of this security, product or fund, or any other person or entity, should use or refer to any MSCI trade name, trademark or service mark to sponsor, endorse, market or promote this security without first contacting MSCI to determine whether MSCI’s permission is required. Under no circumstances may any person or entity claim any affiliation with MSCI without the prior written permission of MSCI.
| TIAA-CREF Managed Allocation Fund ■ 2015 Annual Report | 39 |
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TIAA-CREF website
tiaa-cref.org
24 hours a day, 7 days a week
Automated telephone service
800 842-2252
24 hours a day, 7 days a week
For the hearing- or speech-impaired
800 842-2755
8 a.m. to 10 p.m. (ET), Monday–Friday
9 a.m. to 6 p.m. (ET), Saturday
| You should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other important information, please visit tiaa-cref.org, or call 800 842-2252 for the Institutional and Retirement classes or 800 223-1200 for the Retail Class. Please read the prospectus carefully before investing. Investment, insurance and annuity products are not FDIC insured, are not | bank guaranteed, are not bank deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, members FINRA and SIPC, distribute securities products. |
©2015 Teachers Insurance and Annuity Association of America—College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017-3206.
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Item 2. Code of Ethics.
2(a) The Board of Trustees of the TIAA-CREF Funds (the “Registrant”) has adopted a code of ethics for senior financial officers, including the Registrant’s principal executive officer, principal financial officer, principal accounting officer, or controller, and persons performing similar functions, in conformity with rules promulgated under the Sarbanes-Oxley Act of 2002.
2(b) No response required.
2(c) During the reporting period, there were no amendments to the code of ethics.
2(d) During the reporting period, there were no implicit or explicit waivers granted by the Registrant from any provision of the code of ethics.
2(e) Not applicable.
2(f) A copy of the current code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert.
3(a)(1) The Registrant’s Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its Audit and Compliance Committee.
3(a)(2) Nancy A. Eckl is the Registrant’s audit committee financial expert and is “independent” for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
PricewaterhouseCoopers LLP (“PwC”) performs independent audits of the Registrant’s financial statements. To maintain auditor independence and avoid even the appearance of conflicts of interest, the Registrant, as a policy, does not engage PwC for management advisory or consulting services.
4(a) Audit Fees.
For the fiscal years ended May 31, 2015 and May 31, 2014, PwC’s aggregate fees for the audit of the Registrant’s annual financial statements were $360,000 and $333,200, respectively.
4(b) Audit Related Fees.
For the fiscal years ended May 31, 2015 and May 31, 2014, PwC’s aggregate fees for services related to the performance of the audit of the Registrant’s annual financial statements were $0 and $0, respectively.
For the fiscal years ended May 31, 2015 and May 31, 2014, the Audit-Related Fees billed by PwC to Teachers Advisors, Inc. (“Advisors”) or to any entity controlling, controlled by or under common control with Advisors that provides ongoing services to the Registrant (collectively, “Fund Service Providers”) were $0 and $0, respectively.
4(c) Tax Fees.
For the fiscal years ended May 31, 2015 and May 31, 2014, PwC’s aggregate fees for tax services billed to the Registrant were $333,000 and $305,200, respectively.
For the fiscal years ended May 31, 2015 and May 31, 2014, the Tax Fees billed by PwC to the Fund Service Providers were $0 and $0.
4(d) All Other Fees.
For the fiscal years ended May 31, 2015 and May 31, 2014, PwC’s aggregate fees for all other services billed to the Registrant were $9,000 and $14,700, respectively.
For the fiscal years ended May 31, 2015 and May 31, 2014, PwC’s aggregate fees for all other services billed to the Fund Service Providers were $0 and $0, respectively.
4(e)(1) Preapproval Policy.
The Registrant’s audit and compliance committee (“Audit Committee”) has adopted a Preapproval Policy for External Audit Firm Services (the “Policy”). The Policy describes the types of services that may be provided by the independent auditor to the Registrant and certain of its affiliates without impairing the auditor’s independence. Under the Policy, the Audit Committee is required to preapprove all services to be performed by the Registrant’s independent auditor in order to ensure that such services do not impair the auditor’s independence.
The Policy requires the Audit Committee to: (i) appoint the independent auditor to perform the financial statements audit for the Registrant and certain of its affiliates, including approving the terms of the engagement, and (ii) preapprove the audit, audit-related, tax and other services to be provided by the independent auditor to the Registrant and certain of its affiliates and the fees to be charged for provision of such services from year to year.
4(e)(2) Services provided pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (the “de minimis exception”):
Audit-Related Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended May 31, 2015 and May 31, 2014 on behalf of the Registrant.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended May 31, 2015 and May 31, 2014 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of the Registrant.
Tax Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended May 31, 2015 and May 31, 2014 on behalf of the Registrant.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended May 31, 2015 and May 31, 2014 on behalf of the Fund service providers that relate directly to the operations and financial reporting of the Registrant.
All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended May 31, 2015 and May 31, 2014 on behalf of the Registrant.
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended May 31, 2015 and May 31, 2014 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of the Registrant.
4(f) The percentage of hours expended by PwC’s engagement to audit the Registrant’s financial statements for the most recent fiscal year attributable to work performed by persons other than PwC’s full-time, permanent employees was less than 50%.
4(g) Non-Audit Fees for Related Entities.
For the fiscal years ended May 31, 2015 and May 31, 2014, aggregate non-audit fees billed to the Registrant and to its Fund Service Providers by PwC were $394,625 and $301,500, respectively.
4(h) The Registrant’s Audit Committee has considered whether the non-audit services that were rendered by PwC to the Registrant’s Fund Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X are compatible with maintaining PwC’s independence.
Item 5. Audit Committee of Listed Registrants.
Not Applicable.
Item 6. Schedule of Investments.
Not Applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not Applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not Applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not Applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing date of the report under the supervision of the Registrant’s management, including the principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on that evaluation, the Registrant’s management, including the principal executive officer and principal financial officer, concluded that the Registrant’s disclosure controls and procedures were effective for this annual reporting period.
(b) There were no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s annual period covered by this report that materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Exhibits.
12(a)(1) Copy of current SOX code of ethics for Senior Financial Officers
12(a)(2)(i) Section 302 certification of the principal executive officer
12(a)(2)(ii) Section 302 certification of the principal financial officer
12(b) Section 906 certification of principal executive officer and principal financial officer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TIAA-CREF FUNDS | |||
| Date: July 13, 2015 | By: | /s/Robert G. Leary | |
| Robert G. Leary | |||
| President and Principal Executive Officer | |||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| Date: July 13, 2015 | By: | /s/Robert G. Leary | |
| Robert G. Leary | |||
| President and Principal Executive Officer (principal executive officer) |
| Date: July 13, 2015 | By: | /s/Phillip G. Goff | |
| Phillip G. Goff | |||
| Principal Financial Officer, Principal Accounting Officer and Treasurer | |||
| (principal financial officer) |
EXHIBIT INDEX
Item 12. Exhibits.
12(a)(1) Copy of current SOX code of ethics for Senior Financial Officers
12(a)(2)(i) Section 302 certification of the principal executive officer
12(a)(2)(ii) Section 302 certification of the principal financial officer
12(b) Section 906 certification of principal executive officer and principal financial officer