N-CSRS 1 c86775_ncsrs.htm

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

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: November 30, 2016

 

Item 1. Reports to Stockholders.

 

 

   

2016 Semiannual Report

 

November 30, 2016

 

TIAA-CREF Lifecycle Funds

 

of the TIAA-CREF Funds

      
         
         
  Contents      
  Understanding your Lifecycle Funds report     2
  Information for investors     3
  About the funds’ composite benchmarks     4
  Important information about expenses     5
  Investment results of the Lifecycle Funds     12
  Fund performance      
  Lifecycle Retirement Income Fund     14
  Lifecycle 2010 Fund     16
  Lifecycle 2015 Fund     18
  Lifecycle 2020 Fund     20
  Lifecycle 2025 Fund     22
  Lifecycle 2030 Fund     24
  Lifecycle 2035 Fund     26
  Lifecycle 2040 Fund     27
  Lifecycle 2045 Fund     28
  Lifecycle 2050 Fund     29
  Lifecycle 2055 Fund     30
  Lifecycle 2060 Fund     31
  Portfolios of investments     32
  Financial statements (unaudited)      
  Statements of assets and liabilities     44
  Statements of operations     48
  Statements of changes in net assets     52
  Financial highlights     60
  Notes to financial statements     74
  Additional information about index providers     94
  How to reach us     Inside back cover
 

Understanding your Lifecycle Funds report

 

This semiannual 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 six months ended November 30, 2016. The report contains three main sections:

  • The fund performance section compares each fund’s investment returns with those of its composite benchmark and broad market indexes.
  • The portfolios of investments list the underlying funds in which each fund had investments as of November 30, 2016.
  • 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.org, or call 800-842-2252 for the Institutional, Advisor, Premier and Retirement classes or 800-223-1200 for the Retail Class. We urge you to read the prospectus carefully before investing.

 

2 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

Information for investors

 

Portfolio listings

 

The complete portfolios of investments for the TIAA-CREF Lifecycle Funds begin on page 32 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.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.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

 

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, 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, LLC (formerly known as Teachers Advisors, Inc.). The members of this team are responsible for the day-to-day investment management of the funds.

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual 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 across the equity and fixed-income asset classes. 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 correspond to the fund’s target 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 Bloomberg 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 Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index (short-term fixed income) measures the performance of U.S. Treasury and agency securities and corporate bonds with 1- to 3-year maturities.
  • The Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year Index* (inflation-protected assets) measures the performance of fixed-income securities with maturities between 1 and 10 years that are adjusted for inflation, as measured by the Consumer Price Index for All Urban Consumers (CPI-U).

 

* On January 1, 2016, the Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year Index replaced the Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L) within the funds’ composite benchmarks.

 

Russell 3000 is a trademark and service mark of Russell Investments. TIAA 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 2016 Semiannual 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 (June 1, 2016—November 30, 2016).

 

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 may 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  ■  2016 Semiannual Report 5
 

Important information about expenses

 

Expense examples

 

Six months ended November 30, 2016

   Beginning    Ending       Effective  
   account    account    Expenses paid    expenses paid  
Lifecycle Funds  value    value    during period *  during period †
Institutional Class  (6/1/16 )  (11/30/16 )  (6/1/16–11/30/16 )  (6/1/16–11/30/16 )
Retirement Income Fund actual return  $1,000.00   $1,022.40   $0.00   $1.83 
5% annual hypothetical return  1,000.00   1,025.07   0.00   1.83 
2010 Fund actual return  1,000.00   1,022.87   0.00   1.88 
5% annual hypothetical return  1,000.00   1,025.07   0.00   1.88 
2015 Fund actual return  1,000.00   1,026.01   0.00   1.93 
5% annual hypothetical return  1,000.00   1,025.07   0.00   1.93 
2020 Fund actual return  1,000.00   1,028.66   0.00   1.98 
5% annual hypothetical return  1,000.00   1,025.07   0.00   1.98 
2025 Fund actual return  1,000.00   1,032.79   0.00   2.04 
5% annual hypothetical return  1,000.00   1,025.07   0.00   2.03 
2030 Fund actual return  1,000.00   1,036.16   0.00   2.09 
5% annual hypothetical return  1,000.00   1,025.07   0.00   2.08 
2035 Fund actual return  1,000.00   1,040.29   0.00   2.20 
5% annual hypothetical return  1,000.00   1,025.07   0.00   2.18 
2040 Fund actual return  1,000.00   1,044.47   0.00   2.26 
5% annual hypothetical return  1,000.00   1,025.07   0.00   2.23 
2045 Fund actual return  1,000.00   1,045.11   0.00   2.26 
5% annual hypothetical return  1,000.00   1,025.07   0.00   2.23 
2050 Fund actual return  1,000.00   1,046.07   0.00   2.26 
5% annual hypothetical return  1,000.00   1,025.07   0.00   2.23 
2055 Fund actual return  1,000.00   1,046.08   0.00   2.26 
5% annual hypothetical return  1,000.00   1,025.07   0.00   2.23 
2060 Fund actual return  1,000.00   1,047.32   0.00   2.31 
5% annual hypothetical return  1,000.00   1,025.07   0.00   2.28 
   
* 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 183/365. There were 183 days in the six months ended November 30, 2016. 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 2016 Semiannual 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 0.36% for the Retirement Income Fund; 0.37% for the 2010 Fund; 0.38% for the 2015 Fund; 0.39% for the 2020 Fund; 0.40% for the 2025 Fund; 0.41% for the 2030 Fund; 0.43% for the 2035 Fund; 0.44% for the 2040, 2045, 2050 and 2055 Funds; and 0.45% for the 2060 Fund.

 

Expense examples

 

Six months ended November 30, 2016

   Beginning    Ending        Effective  
   account    account    Expenses paid    expenses paid  
Lifecycle Funds  value    value    during period *  during period †
Advisor Class  (6/1/16 )  (11/30/16 )  (6/1/16–11/30/16 )  (6/1/16–11/30/16 )
Retirement Income Fund actual return  $1,000.00   $1,021.44   $0.10   $1.93 
5% annual hypothetical return  1,000.00   1,024.97   0.10   1.93 
2010 Fund actual return  1,000.00   1,023.79   0.10   1.93 
5% annual hypothetical return  1,000.00   1,024.97   0.10   1.93 
2015 Fund actual return  1,000.00   1,026.01   0.10   1.98 
5% annual hypothetical return  1,000.00   1,024.97   0.10   1.98 
2020 Fund actual return  1,000.00   1,029.71   0.10   2.04 
5% annual hypothetical return  1,000.00   1,024.97   0.10   2.03 
2025 Fund actual return  1,000.00   1,032.79   0.20   2.24 
5% annual hypothetical return  1,000.00   1,024.87   0.20   2.23 
2030 Fund actual return  1,000.00   1,036.16   0.10   2.19 
5% annual hypothetical return  1,000.00   1,024.97   0.10   2.18 
2035 Fund actual return  1,000.00   1,039.26   0.10   2.25 
5% annual hypothetical return  1,000.00   1,024.97   0.10   2.23 
2040 Fund actual return  1,000.00   1,043.43   0.10   2.31 
5% annual hypothetical return  1,000.00   1,024.97   0.10   2.28 
2045 Fund actual return  1,000.00   1,045.11   0.05   2.31 
5% annual hypothetical return  1,000.00   1,025.02   0.05   2.28 
2050 Fund actual return  1,000.00   1,046.07   0.05   2.31 
5% annual hypothetical return  1,000.00   1,025.02   0.05   2.28 
2055 Fund actual return  1,000.00   1,046.08   0.10   2.36 
5% annual hypothetical return  1,000.00   1,024.97   0.10   2.33 
2060 Fund actual return  1,000.00   1,047.32   0.10   2.36 
5% annual hypothetical return  1,000.00   1,024.97   0.10   2.33 

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 7
 

Important information about expenses

 

* 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 183/365. There were 183 days in the six months ended November 30, 2016. 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 0.01% for the 2045 and 2050 Funds; 0.02% for the Retirement Income, 2010, 2015, 2020, 2030, 2035, 2040, 2055 and 2060 Funds; and 0.04% for the 2025 Fund.
† 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 0.38% for the Retirement Income and 2010 Funds; 0.39% for the 2015 Fund; 0.40% for the 2020 Fund; 0.43% for the 2030 Fund; 0.44% for the 2025 and 2035 Funds; 0.45% for the 2040, 2045 and 2050 Fund; and 0.46% for the 2055 and 2060 Funds.

 

Expense examples

 

Six months ended November 30, 2016

   Beginning    Ending      Effective  
   account    account    Expenses paid  expenses paid  
Lifecycle Funds  value    value    during period *  during period †
Premier Class  (6/1/16 )  (11/30/16 )  (6/1/16–11/30/16 )  (6/1/16–11/30/16 )
Retirement Income Fund actual return  $1,000.00   $1,020.72   $0.76   $2.58 
5% annual hypothetical return  1,000.00   1,024.32   0.76   2.59 
2010 Fund actual return  1,000.00   1,022.94   0.76   2.64 
5% annual hypothetical return  1,000.00   1,024.32   0.76   2.64 
2015 Fund actual return  1,000.00   1,025.08   0.76   2.69 
5% annual hypothetical return  1,000.00   1,024.32   0.76   2.69 
2020 Fund actual return  1,000.00   1,028.75   0.76   2.75 
5% annual hypothetical return  1,000.00   1,024.32   0.76   2.74 
2025 Fund actual return  1,000.00   1,031.89   0.76   2.80 
5% annual hypothetical return  1,000.00   1,024.32   0.76   2.79 
2030 Fund actual return  1,000.00   1,035.27   0.77   2.86 
5% annual hypothetical return  1,000.00   1,024.32   0.76   2.84 
2035 Fund actual return  1,000.00   1,039.38   0.77   2.97 
5% annual hypothetical return  1,000.00   1,024.32   0.76   2.94 
2040 Fund actual return  1,000.00   1,042.49   0.77   3.02 
5% annual hypothetical return  1,000.00   1,024.32   0.76   2.99 

 

8 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

   Beginning    Ending       Effective  
   account    account    Expenses paid    expenses paid  
Lifecycle Funds  value    value    during period *   during period †
Premier Class  (6/1/16 )  (11/30/16 )  (6/1/16–11/30/16 )  (6/1/16–11/30/16 )
2045 Fund actual return  $1,000.00   $1,044.32   $0.77   $3.02 
5% annual hypothetical return  1,000.00   1,024.32   0.76   2.99 
2050 Fund actual return  1,000.00   1,044.27   0.77   3.02 
5% annual hypothetical return  1,000.00   1,024.32   0.76   2.99 
2055 Fund actual return  1,000.00   1,046.23   0.77   3.03 
5% annual hypothetical return  1,000.00   1,024.32   0.76   2.99 
2060 Fund actual return  1,000.00   1,046.32   0.77   3.08 
5% annual hypothetical return  1,000.00   1,024.32   0.76   3.04 

 

* 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 183/365. There were 183 days in the six months ended November 30, 2016. 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.
† 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 0.51% for the Retirement Income Fund; 0.52% for the 2010 Fund; 0.53% for the 2015 Fund; 0.54% for the 2020 Fund; 0.55% for the 2025 Fund; 0.56% for the 2030 Fund; 0.58% for the 2035 Fund; 0.59% for the 2040, 2045, 2050 and 2055 Funds; and 0.60% for the 2060 Fund.

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 9
 

Important information about expenses

 

Expense examples

 

Six months ended November 30, 2016

   Beginning    Ending        Effective  
   account    account    Expenses paid    expenses paid  
Lifecycle Funds  value    value    during period *  during period †
Retirement Class  (6/1/16 )  (11/30/16 )  (6/1/16–11/30/16 )  (6/1/16–11/30/16 )
Retirement Income Fund actual return  $1,000.00   $1,020.25   $1.27   $3.09 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.09 
2010 Fund actual return  1,000.00   1,022.91   1.27   3.14 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.14 
2015 Fund actual return  1,000.00   1,025.09   1.27   3.20 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.19 
2020 Fund actual return  1,000.00   1,028.38   1.27   3.25 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.24 
2025 Fund actual return  1,000.00   1,032.23   1.27   3.31 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.29 
2030 Fund actual return  1,000.00   1,035.25   1.28   3.37 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.35 
2035 Fund actual return  1,000.00   1,038.71   1.28   3.48 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.45 
2040 Fund actual return  1,000.00   1,042.82   1.28   3.53 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.50 
2045 Fund actual return  1,000.00   1,044.44   1.28   3.54 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.50 
2050 Fund actual return  1,000.00   1,045.41   1.28   3.54 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.50 
2055 Fund actual return  1,000.00   1,044.48   1.28   3.54 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.50 
2060 Fund actual return  1,000.00   1,045.26   1.28   3.59 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.55 

 

* 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 183/365. There were 183 days in the six months ended November 30, 2016. 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 2016 Semiannual 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 0.61% for the Retirement Income Fund; 0.62% for the 2010 Fund; 0.63% for the 2015 Fund; 0.64% for the 2020 Fund; 0.65% for the 2025 Fund; 0.66% for the 2030 Fund; 0.68% for the 2035 Fund; 0.69% for the 2040, 2045, 2050 and 2055 Funds; and 0.70% for the 2060 Fund.

 

Expense example

 

Six months ended November 30, 2016

   Beginning    Ending        Effective  
   account    account    Expenses paid    expenses paid  
Lifecycle Funds  value    value    during period *  during period †
Retail Class  (6/1/16 )  (11/30/16 )  (6/1/16–11/30/16 )  (6/1/16–11/30/16 )
Retirement Income Fund actual return  $1,000.00   $1,020.23   $1.27   $3.09 
5% annual hypothetical return  1,000.00   1,023.82   1.27   3.09 

 

* 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 183/365. There were 183 days in the six months ended November 30, 2016. 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 0.61% for the Retail Class of the Retirement Income Fund.

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 11
 

Investment results of the Lifecycle Funds

 

Performance for the six months ended November 30, 2016

 

All twelve TIAA-CREF Lifecycle Funds delivered positive returns during the six-month period, and funds with longer target dates outperformed those with shorter target dates. Returns for the Retirement Class ranged from 2.03% for the Retirement Income Fund to 4.54% for the 2050 Fund. The tables on the following pages show returns for all share classes of the funds.

Five of the shorter-dated funds outperformed their composite benchmarks, with margins ranging from 0.26 of a percentage point for the 2010 Fund to 0.09 of a percentage point for the 2025 Fund. The relative underperformance of the remaining seven funds ranged from 0.43 of a percentage point for the 2055 and 2060 Funds to 0.05 of a percentage point for the 2030 Fund. (All results for the Lifecycle Funds are for the Retirement Class.)

 

Global markets produce mixed results

 

The U.S. economy continued on a steady growth trajectory during the six months. Labor markets improved during the period, with the unemployment rate dipping below 5.0%. Meanwhile, the nation’s gross domestic product (GDP), which measures the value of all goods and services produced in the United States, rose at an annual rate of 3.5% during the third quarter of 2016, an increase from the 1.4% annual rate reported in the previous quarter. The Federal Reserve held its federal funds target rate unchanged at 0.25%–0.50% during the reporting period but suggested that a rate hike could occur in the near future.

The broad U.S. stock market, as measured by the Russell 3000® Index, gained 6.93% for the six months. Foreign developed-market stocks declined during the period, while emerging-markets stocks showed renewed strength as oil prices recovered. The MSCI All Country World ex USA Index, which measures the performance of large- and mid-cap stocks in 45 developed- and emerging-markets countries outside the United States, returned 1.36% in U.S.-dollar terms.

Within the U.S. fixed-income markets, returns were more muted as investors were attracted to higher equity returns and grew concerned about the possibility of interest-rate increases. The broad domestic investment-grade fixed-rate bond market, as represented by the Bloomberg Barclays U.S. Aggregate Bond Index, returned –0.92% for the six months. Short-term bonds, as measured by the Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index, rose 0.17%.

 

12 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

Funds deliver positive results on solid advances by U.S. equities

 

The Lifecycle Funds’ positive performance during the period was driven primarily by the solid returns of the U.S. equity markets. The Lifecycle Funds may invest in up to six sectors of the investment markets, including U.S. equity (stocks), international equity (foreign stocks), fixed income, short-term fixed income, inflation-protected assets and direct real estate. The Lifecycle Funds do this by investing in various underlying funds that, in turn, buy stocks, fixed-income instruments and commercial real estate in these six market sectors.

For the six-month period, the funds’ absolute returns—that is, without regard to the performance of their respective composite benchmarks—were supported in large part by the strong results of U.S. equities. The Small-Cap Equity Fund and Large-Cap Value Fund had the strongest absolute performance. Within international equities, the International Opportunities Fund, International Equity Fund and Enhanced International Equity Index Fund posted negative absolute returns, while the Global Natural Resources Fund and the Emerging Markets Equity Fund had strong positive performance. In the fixed-income sector, the Bond Plus Fund and the Bond Fund were the most significant contributors.

 

Strategic positioning adds to performance

 

During the period, funds with longer target dates—and higher allocations to equities—performed better than those with higher allocations to fixed-income securities. In addition, the use of strategic positions in such underlying funds as Global Natural Resources Fund and High Yield Fund, which are not represented in the composite benchmark, was beneficial as these funds performed well.

The Large-Cap Value Fund outperformed its benchmark and was the largest contributor to the Lifecycle Funds’ relative performance during the period. By contrast, the Large-Cap Growth Fund lagged its benchmark and was the most significant detractor from the Lifecycle Funds’ relative performance.

In international markets, equities in some of the major developed economies—especially in Europe—produced negative returns, while those in emerging markets, such as Brazil and Russia, delivered strong positive results during the period. The International Opportunities Fund underperformed its benchmark, the MSCI All Country World ex USA Index, and the International Equity Fund also lagged its benchmark, the MSCI EAFE Index.

Within fixed income, the Bond Fund and the Bond Plus Fund both outpaced their benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index.

(Performance of the Lifecycle Funds’ underlying funds can be found at TIAA.org/performance.)

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 13
 

Lifecycle Retirement Income Fund

 

Performance as of November 30, 2016

 

       Total return  Average annual
total return
Lifecycle Retirement
Income Fund		  Inception date   6 months   1 year   5 years   since fund
inception		 
Institutional Class   11/30/2007    2.24%   3.80%   6.26%   4.45%
Advisor Class   12/4/2015    2.14    3.75*   6.05*   4.22*
Premier Class   9/30/2009    2.07    3.64    6.09    4.27*
Retirement Class   11/30/2007    2.03    3.45    5.99    4.18 
Retail Class   11/30/2007    2.02    3.45    5.98    4.25 
Retirement Income Fund Composite Index†   —    1.83    3.77    5.85    4.51‡
Broad market index                         
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    4.07‡
Russell 3000® Index   —    6.93    8.31    14.41    6.99‡

 

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.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 Advisor 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 Advisor 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 November 30, 2016, the Retirement Income Fund Composite Index consisted of: 40.0% Bloomberg Barclays U.S. Aggregate Bond Index; 28.0% Russell 3000 Index; 12.0% MSCI All Country World ex USA Index; 10.0% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 10.0% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year 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.

 

14 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle Retirement Income Fund

 

Asset allocation        
   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   28.28%   26.25%
International equity   11.84    11.25 
Fixed income          
Fixed income   39.31    40.00 
Short-term fixed income   9.95    10.00 
Inflation-protected assets   9.92    10.00 
Direct real estate   0.57    2.50 
Other assets & liabilities, net   0.13    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 

 


 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 15
 

Lifecycle 2010 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
Lifecycle 2010 Fund  Inception date   6 months   1 year   5 years   10 years 
Institutional Class   1/17/2007    2.29%   3.81%   6.91%   4.74%*
Advisor Class   12/4/2015    2.38    3.80*   6.71*   4.51*
Premier Class   9/30/2009    2.29    3.67    6.76    4.56*
Retirement Class   10/15/2004    2.29    3.57    6.66    4.48 
2010 Fund Composite Index†   —    2.03    3.89    6.57    4.57 
Broad market index                         
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    4.27 
Russell 3000® Index   —    6.93    8.31    14.41    7.00 

 

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.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, Advisor 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, Advisor and Premier classes. If those lower expenses had been reflected, the performance of these three classes shown for these periods would have been higher.
† As of the close of business on November 30, 2016, the 2010 Fund Composite Index consisted of: 39.3% Bloomberg Barclays U.S. Aggregate Bond Index; 30.5% Russell 3000 Index; 13.0% MSCI All Country World ex USA Index; 8.6% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 8.6% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year 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.

 

16 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2010 Fund

 

Asset allocation
   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   30.87%   28.35%
International equity   12.92    12.15 
Fixed income          
Fixed income   38.57    39.40 
Short-term fixed income   8.51    8.80 
Inflation-protected assets   8.49    8.80 
Direct real estate   0.54    2.50 
Other assets & liabilities, net   0.10    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 

 


 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 17
 

Lifecycle 2015 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
Lifecycle 2015 Fund  Inception date   6 months   1 year   5 years   10 years 
Institutional Class   1/17/2007    2.60%   3.95%   7.51%   4.76%*
Advisor Class   12/4/2015    2.60    3.84*   7.28*   4.52*
Premier Class   9/30/2009    2.51    3.71    7.35    4.57*
Retirement Class   10/15/2004    2.51    3.62    7.24    4.50 
2015 Fund Composite Index†   —    2.29    4.08    7.21    4.59 
Broad market index                         
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    4.27 
Russell 3000® Index   —    6.93    8.31    14.41    7.00 

 

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.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, Advisor 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, Advisor and Premier classes. If those lower expenses had been reflected, the performance of these three classes shown for these periods would have been higher.
† As of the close of business on November 30, 2016, the 2015 Fund Composite Index consisted of: 38.3% Bloomberg Barclays U.S. Aggregate Bond Index; 34.0% Russell 3000 Index; 14.5% MSCI All Country World ex USA Index; 6.6% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 6.6% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year 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.

 

18 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2015 Fund

 

Asset allocation 
   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   34.42%   31.85%
International equity   14.39    13.65 
Fixed income          
Fixed income   37.58    38.40 
Short-term fixed income   6.52    6.80 
Inflation-protected assets   6.50    6.80 
Direct real estate   0.57    2.50 
Other assets & liabilities, net   0.02    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 19
 

Lifecycle 2020 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
Lifecycle 2020 Fund  Inception date   6 months   1 year   5 years   10 years 
Institutional Class   1/17/2007    2.87%   3.99%   8.23%   4.74%*
Advisor Class   12/4/2015    2.97    3.96*   8.03*   4.51*
Premier Class   9/30/2009    2.87    3.84    8.08    4.57*
Retirement Class   10/15/2004    2.84    3.74    7.98    4.49 
2020 Fund Composite Index†   —    2.68    4.32    7.99    4.61 
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    7.00 
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    4.27 

 

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.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, Advisor 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, Advisor and Premier classes. If those lower expenses had been reflected, the performance of these three classes shown for these periods would have been higher.
† As of the close of business on November 30, 2016, the 2020 Fund Composite Index consisted of: 39.0% Russell 3000 Index; 35.1% Bloomberg Barclays U.S. Aggregate Bond Index; 16.7% MSCI All Country World ex USA Index; 4.6% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 4.6% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year 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.

 

20 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2020 Fund

 

Asset allocation
   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   39.49%   36.82%
International equity   16.51    15.78 
Fixed income          
Fixed income   34.27    35.30 
Short-term fixed income   4.51    4.80 
Inflation-protected assets   4.50    4.80 
Direct real estate   0.57    2.50 
Other assets & liabilities, net   0.15    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 

 


 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 21
 

Lifecycle 2025 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
Lifecycle 2025 Fund  Inception date   6 months   1 year   5 years   10 years 
Institutional Class   1/17/2007    3.28%   3.94%   8.96%   4.75%*
Advisor Class   12/4/2015    3.28    3.99*   8.73*   4.51*
Premier Class   9/30/2009    3.19    3.80    8.78    4.55*
Retirement Class   10/15/2004    3.22    3.82    8.70    4.49 
2025 Fund Composite Index†   —    3.13    4.60    8.78    4.64 
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    7.00 
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    4.27 

 

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.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, Advisor 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, Advisor and Premier classes. If those lower expenses had been reflected, the performance of these three classes shown for these periods would have been higher.
† As of the close of business on November 30, 2016, the 2025 Fund Composite Index consisted of: 44.6% Russell 3000 Index; 31.1% Bloomberg Barclays U.S. Aggregate Bond Index; 19.1% MSCI All Country World ex USA Index; 2.6% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 2.6% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year 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.

 

22 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2025 Fund

 

Asset allocation 
   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   45.18%   42.77%
International equity   18.88    18.33 
Fixed income          
Fixed income   30.19    30.80 
Short-term fixed income   2.53    2.80 
Inflation-protected assets   2.51    2.80 
Direct real estate   0.57    2.50 
Other assets & liabilities, net   0.14    — 
Total   100.00    100.00 
           

Target allocation

 

For June 30, 2017

 

 


 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 23
 

Lifecycle 2030 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
Lifecycle 2030 Fund  Inception date   6 months   1 year   5 years   10 years 
Institutional Class   1/17/2007    3.62%   3.99%   9.61%   4.69%*
Advisor Class   12/4/2015    3.62    3.93*   9.38*   4.45*
Premier Class   9/30/2009    3.53    3.85    9.45    4.50*
Retirement Class   10/15/2004    3.52    3.80    9.35    4.44 
2030 Fund Composite Index†   —    3.57    4.88    9.55    4.66 
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    7.00 
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    4.27 

 

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.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, Advisor 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, Advisor and Premier classes. If those lower expenses had been reflected, the performance of these three classes shown for these periods would have been higher.
† As of the close of business on November 30, 2016, the 2030 Fund Composite Index consisted of: 50.2% Russell 3000 Index; 27.1% Bloomberg Barclays U.S. Aggregate Bond Index; 21.5% MSCI All Country World ex USA Index; 0.6% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 0.6% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year 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 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2030 Fund

 

Asset allocation 
   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   50.87%   48.72%
International equity   21.25    20.88 
Fixed income          
Fixed income   26.11    26.30 
Short-term fixed income   0.54    0.80 
Inflation-protected assets   0.54    0.80 
Direct real estate   0.57    2.50 
Other assets & liabilities, net   0.12    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 

 


 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 25
 

Lifecycle 2035 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
Lifecycle 2035 Fund  Inception date   6 months   1 year   5 years   10 years 
Institutional Class   1/17/2007    4.03%   4.06%   10.18%   4.83%*
Advisor Class   12/4/2015    3.93    3.98*   9.95*   4.59*
Premier Class   9/30/2009    3.94    3.82    10.01    4.65*
Retirement Class   10/15/2004    3.87    3.78    9.91    4.57 
2035 Fund Composite Index†   —    4.05    5.13    10.26    4.85 
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    7.00 
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    4.27 

 

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.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, Advisor 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, Advisor and Premier classes. If those lower expenses had been reflected, the performance of these three classes shown for these periods would have been higher.
† As of the close of business on November 30, 2016, the 2035 Fund Composite Index consisted of: 55.8% Russell 3000 Index; 23.9% MSCI All Country World ex USA Index; and 20.3% Bloomberg 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.

 

Asset allocation 
   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   56.48%   54.67%
International equity   23.61    23.43 
Fixed income   19.24    19.40 
Direct real estate   0.57    2.50 
Other assets & liabilities, net   0.10    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 

 


 

26 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2040 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
Lifecycle 2040 Fund  Inception date   6 months   1 year   5 years   10 years 
Institutional Class   1/17/2007    4.45%   4.02%   10.51%   5.06%*
Advisor Class   12/4/2015    4.34    3.94*   10.26*   4.81*
Premier Class   9/30/2009    4.25    3.87    10.32    4.87*
Retirement Class   10/15/2004    4.28    3.76    10.22    4.79 
2040 Fund Composite Index†   —    4.54    5.39    10.66    5.06 
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    7.00 
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    4.27 

 

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.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, Advisor 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, Advisor and Premier classes. If those lower expenses had been reflected, the performance of these three classes shown for these periods would have been higher.
† As of the close of business on November 30, 2016, the 2040 Fund Composite Index consisted of: 61.4% Russell 3000 Index; 26.3% MSCI All Country World ex USA Index; and 12.3% Bloomberg 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.

 

Asset allocation
   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   62.10%   60.62%
International equity   25.93    25.98 
Fixed income   11.27    10.90 
Direct real estate   0.57    2.50 
Other assets & liabilities, net   0.13    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 

 


 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 27
 

Lifecycle 2045 Fund

 

Performance as of November 30, 2016

 

               Average annual 
       Total return  total return
Lifecycle 2045 Fund  Inception date   6 months   1 year   5 years   since fund
inception		 
Institutional Class   11/30/2007    4.51%   4.18%   10.53%   4.20%
Advisor Class   12/4/2015    4.51    4.07*   10.27*   3.96*
Premier Class   9/30/2009    4.43    4.05    10.37    4.03*
Retirement Class   11/30/2007    4.44    3.94    10.24    3.94 
2045 Fund Composite Index†   —    4.72    5.64    10.72    4.76‡
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    6.99‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    4.07‡

 

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.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 Advisor 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 Advisor 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 November 30, 2016, the 2045 Fund Composite Index consisted of: 63.6% Russell 3000 Index; 27.3% MSCI All Country World ex USA Index; and 9.1% Bloomberg 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.

 

Asset allocation 
   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   64.20%   63.53%
International equity   26.88    27.22 
Fixed income   8.22    6.75 
Direct real estate   0.57    2.50 
Other assets & liabilities, net   0.13    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 

 


 

28 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2050 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
Lifecycle 2050 Fund  Inception date   6 months   1 year   5 years   since fund
inception		 
Institutional Class   11/30/2007    4.61%   4.33%   10.55%   4.19%
Advisor Class   12/4/2015    4.61    4.22*   10.32*   3.95*
Premier Class   9/30/2009    4.43    4.11    10.39    4.00*
Retirement Class   11/30/2007    4.54    4.10    10.29    3.94 
2050 Fund Composite Index†   —    4.80    5.81    10.75    4.78‡
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    6.99‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    4.07‡

 

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.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 Advisor 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 Advisor 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 November 30, 2016, the 2050 Fund Composite Index consisted of: 64.5% Russell 3000 Index; 27.6% MSCI All Country World ex USA Index; and 7.9% Bloomberg 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.

 

Asset allocation
   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   65.06%   64.40%
International equity   27.26    27.60 
Fixed income   7.00    5.50 
Direct real estate   0.57    2.50 
Other assets & liabilities, net   0.11    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 

 


 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 29
 

Lifecycle 2055 Fund

 

Performance as of November 30, 2016

 

               Average annual 
       Total return  total return
Lifecycle 2055 Fund  Inception date   6 months   1 year   5 years   since fund
inception		 
Institutional Class   4/29/2011    4.61%   4.42%   10.57%   7.15%
Advisor Class   12/4/2015    4.61    4.40*   10.37*   6.93*
Premier Class   4/29/2011    4.62    4.30    10.42    7.00 
Retirement Class   4/29/2011    4.45    4.15    10.31    6.88 
2055 Fund Composite Index†   —    4.88    5.97    10.79    7.60‡
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    11.01‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    3.05‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the 2055 Fund Composite Index consisted of: 65.4% Russell 3000 Index; 28.0% MSCI All Country World ex USA Index; and 6.6% Bloomberg 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.

 

Asset allocation
   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   65.83%   65.28%
International equity   27.60    27.97 
Fixed income   5.77    4.25 
Direct real estate   0.56    2.50 
Other assets & liabilities, net   0.24    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 

 


 

30 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2060 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
Lifecycle 2060 Fund  Inception date   6 months   1 year   since fund
inception		 
Institutional Class   9/26/2014    4.73%   4.64%   3.89%
Advisor Class   12/4/2015    4.73    4.63*   3.76*
Premier Class   9/26/2014    4.63    4.37    3.70 
Retirement Class   9/26/2014    4.53    4.31    3.61 
2060 Fund Composite Index†   —    4.96    6.14    3.96‡
Broad market index                    
Russell 3000® Index   —    6.93    8.31    7.13‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.25‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the 2060 Fund Composite Index consisted of: 66.2% Russell 3000 Index; 28.4% MSCI All Country World ex USA Index; and 5.4% Bloomberg 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.

 

Asset allocation
   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   66.54%   66.15%
International equity   27.81    28.35 
Fixed income   4.52    3.00 
Direct real estate   0.56    2.50 
Other assets & liabilities, net   0.57    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 

 


 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 31
 

Portfolio of investments (unaudited)

 

Lifecycle Retirement Income Fund  ■  November 30, 2016

 

Shares      Security  Value    % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—99.9% (a)             
DIRECT REAL ESTATE—0.6%             
 236,075  (b) TIAA-CREF Real Property Fund LP     $2,410,325    0.6%
       TOTAL DIRECT REAL ESTATE      2,410,325    0.6 
FIXED INCOME—39.3%             
 8,737,963     TIAA-CREF Bond Fund      90,263,153    21.2 
 5,181,047     TIAA-CREF Bond Plus Fund      53,831,083    12.6 
 785,886     TIAA-CREF Emerging Markets Debt Fund      7,583,796    1.8 
 874,167     TIAA-CREF High-Yield Fund      8,418,229    2.0 
 776,326     TIAA-CREF International Bond Fund      7,476,019    1.7 
       TOTAL FIXED INCOME      167,572,280    39.3 
INFLATION-PROTECTED ASSETS—9.9%             
 3,667,471     TIAA-CREF Inflation-Linked Bond Fund      42,285,941    9.9 
       TOTAL INFLATION-PROTECTED ASSETS      42,285,941    9.9 
INTERNATIONAL EQUITY—11.8%             
 986,363     TIAA-CREF Emerging Markets Equity Fund      9,094,267    2.1 
 2,277,247     TIAA-CREF Enhanced International Equity Index Fund      15,348,643    3.6 
 42,192     TIAA-CREF Global Natural Resources Fund      372,136    0.1 
 1,296,754     TIAA-CREF International Equity Fund      13,162,050    3.1 
 1,244,108     TIAA-CREF International Opportunities Fund      12,503,287    2.9 
       TOTAL INTERNATIONAL EQUITY      50,480,383    11.8 
SHORT-TERM FIXED INCOME—10.0%             
 27,969     TIAA-CREF Money Market Fund      27,969    0.0 
 4,111,831     TIAA-CREF Short-Term Bond Fund      42,392,978    10.0 
       TOTAL SHORT-TERM FIXED INCOME      42,420,947    10.0 
U.S. EQUITY—28.3%             
 1,693,120     TIAA-CREF Enhanced Large-Cap Growth Index Fund      19,420,082    4.6 
 1,964,659     TIAA-CREF Enhanced Large-Cap Value Index Fund      20,039,520    4.7 
 1,977,005     TIAA-CREF Growth & Income Fund      24,079,925    5.6 
 1,394,603     TIAA-CREF Large-Cap Growth Fund      21,867,370    5.1 
 1,224,593     TIAA-CREF Large-Cap Value Fund      22,630,482    5.3 
 13,771     TIAA-CREF Mid-Cap Growth Fund      272,665    0.1 
 14,356     TIAA-CREF Mid-Cap Value Fund      339,239    0.1 
 403,186     TIAA-CREF Small-Cap Equity Fund      7,503,288    1.8 
 413,863     TIAA-CREF Small/Mid-Cap Equity Fund      4,362,117    1.0 
       TOTAL U.S. EQUITY      120,514,688    28.3 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $399,510,996)   425,684,564    99.9 
                     
       TOTAL PORTFOLIO  (Cost $399,510,996)   425,684,564    99.9 
       OTHER ASSETS & LIABILITIES, NET      569,658    0.1 
       NET ASSETS     $426,254,222    100.0%

 

 

 

(a) The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP and Institutional Class shares of the affiliated TIAA-CREF Funds.
(b) Indicates a security that has been deemed illiquid.

 

32 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

Portfolio of investments (unaudited)

 

Lifecycle 2010 Fund  ■  November 30, 2016

 

Shares      Security  Value    % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—99.9% (a)             
DIRECT REAL ESTATE—0.5%             
 625,167 (b) TIAA-CREF Real Property Fund LP     $6,382,952    0.5%
       TOTAL DIRECT REAL ESTATE      6,382,952    0.5 
FIXED INCOME—38.6%             
 22,637,184     TIAA-CREF Bond Fund      233,842,113    20.8 
 13,458,014     TIAA-CREF Bond Plus Fund      139,828,767    12.4 
 2,039,332     TIAA-CREF Emerging Markets Debt Fund      19,679,557    1.8 
 2,275,507     TIAA-CREF High-Yield Fund      21,913,130    1.9 
 2,010,895     TIAA-CREF International Bond Fund      19,364,915    1.7 
       TOTAL FIXED INCOME      434,628,482    38.6 
INFLATION-PROTECTED ASSETS—8.5%             
 8,289,922     TIAA-CREF Inflation-Linked Bond Fund      95,582,801    8.5 
       TOTAL INFLATION-PROTECTED ASSETS      95,582,801    8.5 
INTERNATIONAL EQUITY—12.9%             
 2,833,385     TIAA-CREF Emerging Markets Equity Fund      26,123,811    2.3 
 6,555,309     TIAA-CREF Enhanced International Equity Index Fund      44,182,779    3.9 
 133,758     TIAA-CREF Global Natural Resources Fund      1,179,746    0.1 
 3,739,245     TIAA-CREF International Equity Fund      37,953,335    3.4 
 3,589,522     TIAA-CREF International Opportunities Fund      36,074,695    3.2 
       TOTAL INTERNATIONAL EQUITY      145,514,366    12.9 
SHORT-TERM FIXED INCOME—8.5%             
 58,970     TIAA-CREF Money Market Fund      58,970    0.0 
 9,291,504     TIAA-CREF Short-Term Bond Fund      95,795,408    8.5 
       TOTAL SHORT-TERM FIXED INCOME      95,854,378    8.5 
U.S. EQUITY—30.9%             
 4,888,089     TIAA-CREF Enhanced Large-Cap Growth Index Fund      56,066,380    5.0 
 5,672,123     TIAA-CREF Enhanced Large-Cap Value Index Fund      57,855,656    5.1 
 5,714,573     TIAA-CREF Growth & Income Fund      69,603,497    6.2 
 4,022,030     TIAA-CREF Large-Cap Growth Fund      63,065,426    5.6 
 3,531,871     TIAA-CREF Large-Cap Value Fund      65,268,973    5.8 
 39,768     TIAA-CREF Mid-Cap Growth Fund      787,401    0.1 
 41,457     TIAA-CREF Mid-Cap Value Fund      979,623    0.1 
 1,164,054     TIAA-CREF Small-Cap Equity Fund      21,663,043    1.9 
 1,192,410     TIAA-CREF Small/Mid-Cap Equity Fund      12,568,001    1.1 
       TOTAL U.S. EQUITY      347,858,000    30.9 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $1,003,597,030)   1,125,820,979    99.9 
                     
       TOTAL PORTFOLIO  (Cost $1,003,597,030)   1,125,820,979    99.9 
       OTHER ASSETS & LIABILITIES, NET      1,090,685    0.1 
       NET ASSETS     $1,126,911,664    100.0%

 

 

 

(a) The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP and Institutional Class shares of the affiliated TIAA-CREF Funds.
(b) Indicates a security that has been deemed illiquid.

 

See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 33
 

Portfolio of investments (unaudited)

 

Lifecycle 2015 Fund  ■  November 30, 2016

 

Shares      Security  Value    % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—100.0% (a)             
DIRECT REAL ESTATE—0.6%             
 992,158 (b)   TIAA-CREF Real Property Fund LP     $10,129,937    0.6%
       TOTAL DIRECT REAL ESTATE      10,129,937    0.6 
FIXED INCOME—37.6%             
 34,922,836     TIAA-CREF Bond Fund      360,752,901    20.2 
 20,848,688     TIAA-CREF Bond Plus Fund      216,617,866    12.1 
 3,157,158     TIAA-CREF Emerging Markets Debt Fund      30,466,577    1.7 
 3,519,864     TIAA-CREF High-Yield Fund      33,896,290    1.9 
 3,103,655     TIAA-CREF International Bond Fund      29,888,202    1.7 
       TOTAL FIXED INCOME      671,621,836    37.6 
INFLATION-PROTECTED ASSETS—6.5%             
 10,066,316     TIAA-CREF Inflation-Linked Bond Fund      116,064,623    6.5 
       TOTAL INFLATION-PROTECTED ASSETS      116,064,623    6.5 
INTERNATIONAL EQUITY—14.4%             
 4,992,158     TIAA-CREF Emerging Markets Equity Fund      46,027,696    2.6 
 11,568,710     TIAA-CREF Enhanced International Equity Index Fund      77,973,108    4.4 
 264,497     TIAA-CREF Global Natural Resources Fund      2,332,864    0.1 
 6,601,548     TIAA-CREF International Equity Fund      67,005,713    3.7 
 6,354,953     TIAA-CREF International Opportunities Fund      63,867,282    3.6 
       TOTAL INTERNATIONAL EQUITY      257,206,663    14.4 
SHORT-TERM FIXED INCOME—6.5%          
 143,165     TIAA-CREF Money Market Fund      143,165    0.0 
 11,287,921     TIAA-CREF Short-Term Bond Fund      116,378,461    6.5 
       TOTAL SHORT-TERM FIXED INCOME      116,521,626    6.5 
U.S. EQUITY—34.4%             
 8,637,611     TIAA-CREF Enhanced Large-Cap Growth Index Fund      99,073,400    5.5 
 10,031,834     TIAA-CREF Enhanced Large-Cap Value Index Fund      102,324,709    5.7 
 10,100,730     TIAA-CREF Growth & Income Fund      123,026,897    6.9 
 7,114,108     TIAA-CREF Large-Cap Growth Fund      111,549,220    6.2 
 6,247,832     TIAA-CREF Large-Cap Value Fund      115,459,928    6.5 
 70,322     TIAA-CREF Mid-Cap Growth Fund      1,392,367    0.1 
 73,305     TIAA-CREF Mid-Cap Value Fund      1,732,193    0.1 
 2,059,199     TIAA-CREF Small-Cap Equity Fund      38,321,684    2.1 
 2,113,623     TIAA-CREF Small/Mid-Cap Equity Fund      22,277,585    1.3 
       TOTAL U.S. EQUITY      615,157,983    34.4 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $1,787,464,531)   1,786,702,668    100.0 
                     
       TOTAL PORTFOLIO  (Cost $1,787,464,531)   1,786,702,668    100.0 
       OTHER ASSETS & LIABILITIES, NET      414,616    0.0 
       NET ASSETS     $1,787,117,284    100.0%

 

 

 

(a) The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP and Institutional Class shares of the affiliated TIAA-CREF Funds.
(b) Indicates a security that has been deemed illiquid.

 

34 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

Portfolio of investments (unaudited)

 

Lifecycle 2020 Fund  ■  November 30, 2016

 

Shares      Security  Value    % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—99.8% (a)             
DIRECT REAL ESTATE—0.5%             
 1,759,144 (b)   TIAA-CREF Real Property Fund LP     $17,960,856    0.5%
       TOTAL DIRECT REAL ESTATE      17,960,856    0.5 
FIXED INCOME—34.3%             
 56,249,095     TIAA-CREF Bond Fund      581,053,154    18.3 
 34,054,707     TIAA-CREF Bond Plus Fund      353,828,404    11.1 
 5,144,241     TIAA-CREF Emerging Markets Debt Fund      49,641,924    1.6 
 5,757,230     TIAA-CREF High-Yield Fund      55,442,127    1.8 
 4,998,903     TIAA-CREF International Bond Fund      48,139,439    1.5 
       TOTAL FIXED INCOME      1,088,105,048    34.3 
INFLATION-PROTECTED ASSETS—4.5%             
 12,382,152     TIAA-CREF Inflation-Linked Bond Fund      142,766,215    4.5 
       TOTAL INFLATION-PROTECTED ASSETS      142,766,215    4.5 
INTERNATIONAL EQUITY—16.5%             
 10,126,273     TIAA-CREF Emerging Markets Equity Fund      93,364,237    2.9 
 23,501,726     TIAA-CREF Enhanced International Equity Index Fund      158,401,634    5.0 
 586,883     TIAA-CREF Global Natural Resources Fund      5,176,307    0.2 
 13,498,182     TIAA-CREF International Equity Fund      137,006,544    4.3 
 12,946,929     TIAA-CREF International Opportunities Fund      130,116,640    4.1 
       TOTAL INTERNATIONAL EQUITY      524,065,362    16.5 
SHORT-TERM FIXED INCOME—4.5%          
 191,615     TIAA-CREF Money Market Fund      191,615    0.0 
 13,882,298     TIAA-CREF Short-Term Bond Fund      143,126,493    4.5 
       TOTAL SHORT-TERM FIXED INCOME      143,318,108    4.5 
U.S. EQUITY—39.5%             
 17,617,932     TIAA-CREF Enhanced Large-Cap Growth Index Fund      202,077,674    6.4 
 20,442,991     TIAA-CREF Enhanced Large-Cap Value Index Fund      208,518,511    6.6 
 20,578,850     TIAA-CREF Growth & Income Fund      250,650,388    7.9 
 14,501,358     TIAA-CREF Large-Cap Growth Fund      227,381,292    7.2 
 12,740,841     TIAA-CREF Large-Cap Value Fund      235,450,736    7.4 
 143,190     TIAA-CREF Mid-Cap Growth Fund      2,835,162    0.1 
 149,263     TIAA-CREF Mid-Cap Value Fund      3,527,079    0.1 
 4,195,294     TIAA-CREF Small-Cap Equity Fund      78,074,413    2.4 
 4,305,275     TIAA-CREF Small/Mid-Cap Equity Fund      45,377,604    1.4 
       TOTAL U.S. EQUITY      1,253,892,859    39.5 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $3,140,638,507)   3,170,108,448    99.8 
                     
       TOTAL PORTFOLIO  (Cost $3,140,638,507)   3,170,108,448    99.8 
       OTHER ASSETS & LIABILITIES, NET      4,905,762    0.2 
       NET ASSETS     $3,175,014,210    100.0%

 

 

 

(a) The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP and Institutional Class shares of the affiliated TIAA-CREF Funds.
(b) Indicates a security that has been deemed illiquid.

 

See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 35
 

Portfolio of investments (unaudited)

 

Lifecycle 2025 Fund  ■  November 30, 2016

 

Shares      Security  Value    % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—99.9% (a)             
DIRECT REAL ESTATE—0.6%             
 1,859,408 (b)   TIAA-CREF Real Property Fund LP     $18,984,558    0.6%
       TOTAL DIRECT REAL ESTATE      18,984,558    0.6 
FIXED INCOME—30.2%             
 51,910,955     TIAA-CREF Bond Fund      536,240,165    16.0 
 32,120,690     TIAA-CREF Bond Plus Fund      333,733,964    9.9 
 4,831,245     TIAA-CREF Emerging Markets Debt Fund      46,621,519    1.4 
 5,440,334     TIAA-CREF High-Yield Fund      52,390,417    1.6 
 4,617,080     TIAA-CREF International Bond Fund      44,462,476    1.3 
       TOTAL FIXED INCOME      1,013,448,541    30.2 
INFLATION-PROTECTED ASSETS—2.5%             
 7,319,582     TIAA-CREF Inflation-Linked Bond Fund      84,394,783    2.5 
       TOTAL INFLATION-PROTECTED ASSETS      84,394,783    2.5 
INTERNATIONAL EQUITY—18.9%             
 12,201,633     TIAA-CREF Emerging Markets Equity Fund      112,499,059    3.4 
 28,373,404     TIAA-CREF Enhanced International Equity Index Fund      191,236,745    5.7 
 768,649     TIAA-CREF Global Natural Resources Fund      6,779,488    0.2 
 16,311,347     TIAA-CREF International Equity Fund      165,560,168    4.9 
 15,681,627     TIAA-CREF International Opportunities Fund      157,600,350    4.7 
       TOTAL INTERNATIONAL EQUITY      633,675,810    18.9 
SHORT-TERM FIXED INCOME—2.5%          
 187,767     TIAA-CREF Money Market Fund      187,767    0.0 
 8,218,106     TIAA-CREF Short-Term Bond Fund      84,728,670    2.5 
       TOTAL SHORT-TERM FIXED INCOME      84,916,437    2.5 
U.S. EQUITY—45.2%             
 21,317,374     TIAA-CREF Enhanced Large-Cap Growth Index Fund      244,510,285    7.3 
 24,730,159     TIAA-CREF Enhanced Large-Cap Value Index Fund      252,247,622    7.5 
 24,877,650     TIAA-CREF Growth & Income Fund      303,009,781    9.0 
 17,537,235     TIAA-CREF Large-Cap Growth Fund      274,983,848    8.2 
 15,395,735     TIAA-CREF Large-Cap Value Fund      284,513,190    8.5 
 173,944     TIAA-CREF Mid-Cap Growth Fund      3,444,082    0.1 
 180,396     TIAA-CREF Mid-Cap Value Fund      4,262,766    0.1 
 5,074,055     TIAA-CREF Small-Cap Equity Fund      94,428,154    2.8 
 5,218,585     TIAA-CREF Small/Mid-Cap Equity Fund      55,003,885    1.7 
       TOTAL U.S. EQUITY      1,516,403,613    45.2 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $3,289,743,180)   3,351,823,742    99.9 
                     
       TOTAL PORTFOLIO  (Cost $3,289,743,180)   3,351,823,742    99.9 
       OTHER ASSETS & LIABILITIES, NET      4,780,290    0.1 
       NET ASSETS     $3,356,604,032    100.0%

 

 

 

(a) The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP and Institutional Class shares of the affiliated TIAA-CREF Funds.
(b) Indicates a security that has been deemed illiquid.

 

36 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

Portfolio of investments (unaudited)

 

Lifecycle 2030 Fund  ■  November 30, 2016

 

Shares      Security  Value    % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—99.9% (a)             
DIRECT REAL ESTATE—0.6%             
 1,801,547 (b)   TIAA-CREF Real Property Fund LP     $18,393,791    0.6%
       TOTAL DIRECT REAL ESTATE      18,393,791    0.6 
FIXED INCOME—26.1%             
 43,167,970     TIAA-CREF Bond Fund      445,925,131    13.7 
 27,122,217     TIAA-CREF Bond Plus Fund      281,799,830    8.7 
 4,089,903     TIAA-CREF Emerging Markets Debt Fund      39,467,566    1.2 
 4,642,487     TIAA-CREF High-Yield Fund      44,707,154    1.4 
 3,823,103     TIAA-CREF International Bond Fund      36,816,484    1.1 
       TOTAL FIXED INCOME      848,716,165    26.1 
INFLATION-PROTECTED ASSETS—0.5%             
 1,533,386     TIAA-CREF Inflation-Linked Bond Fund      17,679,938    0.5 
       TOTAL INFLATION-PROTECTED ASSETS      17,679,938    0.5 
INTERNATIONAL EQUITY—21.3%             
 13,255,929     TIAA-CREF Emerging Markets Equity Fund      122,219,670    3.8 
 30,855,591     TIAA-CREF Enhanced International Equity Index Fund      207,966,684    6.4 
 887,998     TIAA-CREF Global Natural Resources Fund      7,832,142    0.2 
 17,792,314     TIAA-CREF International Equity Fund      180,591,989    5.6 
 17,121,948     TIAA-CREF International Opportunities Fund      172,075,579    5.3 
       TOTAL INTERNATIONAL EQUITY      690,686,064    21.3 
SHORT-TERM FIXED INCOME—0.5%             
 180,589     TIAA-CREF Money Market Fund      180,589    0.0 
 1,717,975     TIAA-CREF Short-Term Bond Fund      17,712,319    0.5 
       TOTAL SHORT-TERM FIXED INCOME      17,892,908    0.5 
U.S. EQUITY—50.9%             
 23,201,984     TIAA-CREF Enhanced Large-Cap Growth Index Fund      266,126,761    8.2 
 26,936,033     TIAA-CREF Enhanced Large-Cap Value Index Fund      274,747,540    8.5 
 27,115,012     TIAA-CREF Growth & Income Fund      330,260,845    10.2 
 19,112,945     TIAA-CREF Large-Cap Growth Fund      299,690,970    9.2 
 16,802,228     TIAA-CREF Large-Cap Value Fund      310,505,178    9.6 
 189,023     TIAA-CREF Mid-Cap Growth Fund      3,742,658    0.1 
 196,889     TIAA-CREF Mid-Cap Value Fund      4,652,498    0.1 
 5,538,839     TIAA-CREF Small-Cap Equity Fund      103,077,801    3.2 
 5,690,467     TIAA-CREF Small/Mid-Cap Equity Fund      59,977,525    1.8 
       TOTAL U.S. EQUITY      1,652,781,776    50.9 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $3,153,586,099)   3,246,150,642    99.9 
                     
       TOTAL PORTFOLIO  (Cost $3,153,586,099)   3,246,150,642    99.9 
       OTHER ASSETS & LIABILITIES, NET      3,867,851    0.1 
       NET ASSETS     $3,250,018,493    100.0%

 

 

 

(a) The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP and Institutional Class shares of the affiliated TIAA-CREF Funds.
(b) Indicates a security that has been deemed illiquid.

 

See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 37
 

Portfolio of investments (unaudited)

 

Lifecycle 2035 Fund  ■  November 30, 2016

 

Shares      Security  Value    % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—99.9% (a)             
DIRECT REAL ESTATE—0.6%             
 1,816,794 (b)   TIAA-CREF Real Property Fund LP     $18,549,467    0.6%
       TOTAL DIRECT REAL ESTATE      18,549,467    0.6 
FIXED INCOME—19.2%             
 31,823,665     TIAA-CREF Bond Fund      328,738,456    10.0 
 20,224,686     TIAA-CREF Bond Plus Fund      210,134,488    6.4 
 3,131,259     TIAA-CREF Emerging Markets Debt Fund      30,216,649    0.9 
 3,625,703     TIAA-CREF High-Yield Fund      34,915,521    1.1 
 2,760,936     TIAA-CREF International Bond Fund      26,587,809    0.8 
       TOTAL FIXED INCOME      630,592,923    19.2 
INTERNATIONAL EQUITY—23.6%             
 14,837,557     TIAA-CREF Emerging Markets Equity Fund      136,802,273    4.2 
 34,522,148     TIAA-CREF Enhanced International Equity Index Fund      232,679,276    7.1 
 1,050,995     TIAA-CREF Global Natural Resources Fund      9,269,777    0.3 
 19,931,928     TIAA-CREF International Equity Fund      202,309,072    6.1 
 19,180,703     TIAA-CREF International Opportunities Fund      192,766,070    5.9 
       TOTAL INTERNATIONAL EQUITY      773,826,468    23.6 
SHORT-TERM FIXED INCOME—0.0%          
 186,540     TIAA-CREF Money Market Fund      186,540    0.0 
       TOTAL SHORT-TERM FIXED INCOME      186,540    0.0 
U.S. EQUITY—56.5%             
 26,016,328     TIAA-CREF Enhanced Large-Cap Growth Index Fund      298,407,286    9.1 
 30,185,570     TIAA-CREF Enhanced Large-Cap Value Index Fund      307,892,818    9.4 
 30,363,368     TIAA-CREF Growth & Income Fund      369,825,816    11.3 
 21,407,646     TIAA-CREF Large-Cap Growth Fund      335,671,896    10.2 
 18,800,762     TIAA-CREF Large-Cap Value Fund      347,438,086    10.6 
 211,903     TIAA-CREF Mid-Cap Growth Fund      4,195,682    0.1 
 220,654     TIAA-CREF Mid-Cap Value Fund      5,214,048    0.2 
 6,194,551     TIAA-CREF Small-Cap Equity Fund      115,280,595    3.5 
 6,380,866     TIAA-CREF Small/Mid-Cap Equity Fund      67,254,326    2.1 
       TOTAL U.S. EQUITY      1,851,180,553    56.5 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $3,147,581,866)   3,274,335,951    99.9 
                     
       TOTAL PORTFOLIO  (Cost $3,147,581,866)   3,274,335,951    99.9 
       OTHER ASSETS & LIABILITIES, NET      3,364,736    0.1 
       NET ASSETS     $3,277,700,687    100.0%

 

 

 

(a) The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP and Institutional Class shares of the affiliated TIAA-CREF Funds.
(b) Indicates a security that has been deemed illiquid.

 

38 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

Portfolio of investments (unaudited)

 

Lifecycle 2040 Fund  ■  November 30, 2016

 

 Shares   Security       Value   % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—99.9% (a)               
DIRECT REAL ESTATE—0.6%               
 2,271,528  (b)  TIAA-CREF Real Property Fund LP      $23,192,303   0.6 %
     TOTAL DIRECT REAL ESTATE       23,192,303   0.6  
FIXED INCOME—11.3%                 
 22,088,782   TIAA-CREF Bond Fund       228,177,113   5.6  
 15,694,494   TIAA-CREF Bond Plus Fund       163,065,795   4.0  
 2,460,961   TIAA-CREF Emerging Markets Debt Fund       23,748,271   0.6  
 2,982,036   TIAA-CREF High-Yield Fund       28,717,009   0.7  
 1,849,207   TIAA-CREF International Bond Fund       17,807,866   0.4  
     TOTAL FIXED INCOME       461,516,054   11.3  
INTERNATIONAL EQUITY—25.9%               
 20,365,171   TIAA-CREF Emerging Markets Equity Fund       187,766,881   4.6  
 47,309,778   TIAA-CREF Enhanced International Equity Index Fund       318,867,906   7.8  
 1,493,692   TIAA-CREF Global Natural Resources Fund       13,174,363   0.3  
 27,328,428   TIAA-CREF International Equity Fund       277,383,542   6.8  
 26,335,093   TIAA-CREF International Opportunities Fund       264,667,683   6.4  
     TOTAL INTERNATIONAL EQUITY       1,061,860,375   25.9  
SHORT-TERM FIXED INCOME—0.0%               
 273,445   TIAA-CREF Money Market Fund       273,445   0.0  
     TOTAL SHORT-TERM FIXED INCOME       273,445   0.0  
U.S. EQUITY—62.1%               
 35,733,661   TIAA-CREF Enhanced Large-Cap Growth Index Fund       409,865,087   10.0  
 41,459,176   TIAA-CREF Enhanced Large-Cap Value Index Fund       422,883,593   10.3  
 41,704,219   TIAA-CREF Growth & Income Fund       507,957,390   12.4  
 29,403,642   TIAA-CREF Large-Cap Growth Fund       461,049,104   11.3  
 25,821,726   TIAA-CREF Large-Cap Value Fund       477,185,505   11.6  
 290,794   TIAA-CREF Mid-Cap Growth Fund       5,757,731   0.1  
 302,793   TIAA-CREF Mid-Cap Value Fund       7,155,002   0.2  
 8,514,326   TIAA-CREF Small-Cap Equity Fund       158,451,611   3.9  
 8,760,171   TIAA-CREF Small/Mid-Cap Equity Fund       92,332,207   2.3  
     TOTAL U.S. EQUITY       2,542,637,230   62.1  
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $3,888,142,999)    4,089,479,407   99.9  
                     
     TOTAL PORTFOLIO  (Cost $3,888,142,999)    4,089,479,407   99.9  
     OTHER ASSETS & LIABILITIES, NET       5,104,704   0.1  
     NET ASSETS      $4,094,584,111   100.0 %

 

 

 

(a) The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP and Institutional Class shares of the affiliated TIAA-CREF Funds.
(b) Indicates a security that has been deemed illiquid.

 

See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 39
 

Portfolio of investments (unaudited)

 

Lifecycle 2045 Fund  ■  November 30, 2016

 

Shares   Security      Value    % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—99.9% (a)                 
DIRECT REAL ESTATE—0.6%                 
 1,016,831  (b)  TIAA-CREF Real Property Fund LP       $10,381,846    0.6 %
     TOTAL DIRECT REAL ESTATE        10,381,846    0.6  
FIXED INCOME—8.2%                 
 6,983,348   TIAA-CREF Bond Fund        72,137,982    3.9  
 5,289,960   TIAA-CREF Bond Plus Fund        54,962,687    3.0  
 852,143   TIAA-CREF Emerging Markets Debt Fund        8,223,180    0.4  
 1,067,922   TIAA-CREF High-Yield Fund        10,284,093    0.6  
 558,851   TIAA-CREF International Bond Fund        5,381,738    0.3  
     TOTAL FIXED INCOME        150,989,680    8.2  
INTERNATIONAL EQUITY—26.9%                 
 9,456,036   TIAA-CREF Emerging Markets Equity Fund        87,184,651    4.8  
 22,020,682   TIAA-CREF Enhanced International Equity Index Fund        148,419,395    8.1  
 701,215   TIAA-CREF Global Natural Resources Fund        6,184,718    0.3  
 12,719,229   TIAA-CREF International Equity Fund        129,100,175    7.0  
 12,225,928   TIAA-CREF International Opportunities Fund        122,870,581    6.7  
     TOTAL INTERNATIONAL EQUITY        493,759,520    26.9  
SHORT-TERM FIXED INCOME—0.0%               
 81,040   TIAA-CREF Money Market Fund        81,040    0.0  
     TOTAL SHORT-TERM FIXED INCOME        81,040    0.0  
U.S. EQUITY—64.2%                   
 16,568,477   TIAA-CREF Enhanced Large-Cap Growth Index Fund        190,040,434    10.4  
 19,222,658   TIAA-CREF Enhanced Large-Cap Value Index Fund        196,071,112    10.7  
 19,337,208   TIAA-CREF Growth & Income Fund        235,527,195    12.8  
 13,633,559   TIAA-CREF Large-Cap Growth Fund        213,774,199    11.6  
 11,969,888   TIAA-CREF Large-Cap Value Fund        221,203,522    12.0  
 134,369   TIAA-CREF Mid-Cap Growth Fund        2,660,510    0.2  
 139,909   TIAA-CREF Mid-Cap Value Fund        3,306,048    0.2  
 3,945,680   TIAA-CREF Small-Cap Equity Fund        73,429,113    4.0  
 4,085,504   TIAA-CREF Small/Mid-Cap Equity Fund        43,061,208    2.3  
     TOTAL U.S. EQUITY        1,179,073,341    64.2  
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $1,686,677,635)     1,834,285,427    99.9  
                       
     TOTAL PORTFOLIO  (Cost $1,686,677,635)     1,834,285,427    99.9  
     OTHER ASSETS & LIABILITIES, NET        2,384,978    0.1  
     NET ASSETS       $1,836,670,405    100.0 %

 

 

 

(a) The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP and Institutional Class shares of the affiliated TIAA-CREF Funds.
(b) Indicates a security that has been deemed illiquid.

 

40 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

Portfolio of investments (unaudited)

 

Lifecycle 2050 Fund  ■  November 30, 2016

 

Shares   Security     Value   % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—99.9% (a)               
DIRECT REAL ESTATE—0.6%               
 629,266   (b)  TIAA-CREF Real Property Fund LP      $6,424,807   0.6 %
     TOTAL DIRECT REAL ESTATE       6,424,807   0.6  
FIXED INCOME—7.0%               
 3,687,753   TIAA-CREF Bond Fund       38,094,486   3.4  
 2,752,833   TIAA-CREF Bond Plus Fund       28,601,933   2.5  
 464,926   TIAA-CREF Emerging Markets Debt Fund       4,486,537   0.4  
 593,643   TIAA-CREF High-Yield Fund       5,716,786   0.5  
 278,137   TIAA-CREF International Bond Fund       2,678,461   0.2  
     TOTAL FIXED INCOME       79,578,203   7.0  
INTERNATIONAL EQUITY—27.2%               
 5,927,070   TIAA-CREF Emerging Markets Equity Fund       54,647,585   4.8  
 13,820,771   TIAA-CREF Enhanced International Equity Index Fund       93,151,994   8.2  
 441,791   TIAA-CREF Global Natural Resources Fund       3,896,600   0.3  
 7,987,227   TIAA-CREF International Equity Fund       81,070,350   7.1  
 7,665,933   TIAA-CREF International Opportunities Fund       77,042,630   6.8  
     TOTAL INTERNATIONAL EQUITY       309,809,159   27.2  
SHORT-TERM FIXED INCOME—0.0%               
 41,936   TIAA-CREF Money Market Fund       41,936   0.0  
     TOTAL SHORT-TERM FIXED INCOME       41,936   0.0  
U.S. EQUITY—65.1%               
 10,391,359   TIAA-CREF Enhanced Large-Cap Growth Index Fund       119,188,887   10.5  
 12,055,954   TIAA-CREF Enhanced Large-Cap Value Index Fund       122,970,736   10.8  
 12,127,807   TIAA-CREF Growth & Income Fund       147,716,690   13.0  
 8,550,653   TIAA-CREF Large-Cap Growth Fund       134,074,240   11.8  
 7,507,221   TIAA-CREF Large-Cap Value Fund       138,733,450   12.2  
 84,182   TIAA-CREF Mid-Cap Growth Fund       1,666,802   0.1  
 87,736   TIAA-CREF Mid-Cap Value Fund       2,073,205   0.2  
 2,474,602   TIAA-CREF Small-Cap Equity Fund       46,052,347   4.1  
 2,563,595   TIAA-CREF Small/Mid-Cap Equity Fund       27,020,292   2.4  
     TOTAL U.S. EQUITY       739,496,649   65.1  
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $1,051,424,687)    1,135,350,754   99.9  
                     
     TOTAL PORTFOLIO  (Cost $1,051,424,687)    1,135,350,754   99.9  
     OTHER ASSETS & LIABILITIES, NET       1,283,312   0.1  
     NET ASSETS      $1,136,634,066   100.0 %

 

 

 

(a) The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP and Institutional Class shares of the affiliated TIAA-CREF Funds.
(b) Indicates a security that has been deemed illiquid.

 

See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 41
 

Portfolio of investments (unaudited)

 

Lifecycle 2055 Fund  ■  November 30, 2016

 

Shares   Security     Value   % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—99.8% (a)               
DIRECT REAL ESTATE—0.6%             
 144,808   (b)  TIAA-CREF Real Property Fund LP      $1,478,486   0.6 %
     TOTAL DIRECT REAL ESTATE       1,478,486   0.6  
FIXED INCOME—5.8%               
 702,487   TIAA-CREF Bond Fund       7,256,686   2.8  
 513,778   TIAA-CREF Bond Plus Fund       5,338,150   2.0  
 92,060   TIAA-CREF Emerging Markets Debt Fund       888,380   0.3  
 120,530   TIAA-CREF High-Yield Fund       1,160,704   0.5  
 48,040   TIAA-CREF International Bond Fund       462,626   0.2  
     TOTAL FIXED INCOME       15,106,546   5.8  
INTERNATIONAL EQUITY—27.6%               
 1,382,083   TIAA-CREF Emerging Markets Equity Fund       12,742,805   4.9  
 3,223,939   TIAA-CREF Enhanced International Equity Index Fund       21,729,351   8.3  
 102,091   TIAA-CREF Global Natural Resources Fund       900,439   0.3  
 1,863,009   TIAA-CREF International Equity Fund       18,909,541   7.2  
 1,791,153   TIAA-CREF International Opportunities Fund       18,001,091   6.9  
     TOTAL INTERNATIONAL EQUITY       72,283,227   27.6  
SHORT-TERM FIXED INCOME—0.0%               
 6,610   TIAA-CREF Money Market Fund       6,610   0.0  
     TOTAL SHORT-TERM FIXED INCOME       6,610   0.0  
U.S. EQUITY—65.8%                 
 2,421,979   TIAA-CREF Enhanced Large-Cap Growth Index Fund       27,780,100   10.6  
 2,811,060   TIAA-CREF Enhanced Large-Cap Value Index Fund       28,672,807   10.9  
 2,827,911   TIAA-CREF Growth & Income Fund       34,443,954   13.2  
 1,993,745   TIAA-CREF Large-Cap Growth Fund       31,261,929   11.9  
 1,750,447   TIAA-CREF Large-Cap Value Fund       32,348,258   12.4  
 19,627   TIAA-CREF Mid-Cap Growth Fund       388,616   0.1  
 20,455   TIAA-CREF Mid-Cap Value Fund       483,350   0.2  
 576,626   TIAA-CREF Small-Cap Equity Fund       10,731,001   4.1  
 598,994   TIAA-CREF Small/Mid-Cap Equity Fund       6,313,400   2.4  
     TOTAL U.S. EQUITY       172,423,415   65.8  
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $249,461,783)    261,298,284   99.8  
                     
     TOTAL PORTFOLIO  (Cost $249,461,783)    261,298,284   99.8  
     OTHER ASSETS & LIABILITIES, NET       632,547   0.2  
     NET ASSETS      $261,930,831   100.0 %

 

 

 

(a) The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP and Institutional Class shares of the affiliated TIAA-CREF Funds.
(b) Indicates a security that has been deemed illiquid.

 

42 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

Portfolio of investments (unaudited)

 

Lifecycle 2060 Fund  ■  November 30, 2016

 

Shares   Security     Value   % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—99.4% (a)               
DIRECT REAL ESTATE—0.6%               
 10,310   (b)  TIAA-CREF Real Property Fund LP      $105,266   0.6 %
     TOTAL DIRECT REAL ESTATE       105,266   0.6  
FIXED INCOME—4.5%               
 39,646   TIAA-CREF Bond Fund       409,542   2.2  
 28,063   TIAA-CREF Bond Plus Fund       291,576   1.5  
 5,542   TIAA-CREF Emerging Markets Debt Fund       53,476   0.3  
 7,461   TIAA-CREF High-Yield Fund       71,853   0.4  
 2,333   TIAA-CREF International Bond Fund       22,464   0.1  
     TOTAL FIXED INCOME       848,911   4.5  
INTERNATIONAL EQUITY—27.8%               
 99,745   TIAA-CREF Emerging Markets Equity Fund       919,648   4.9  
 232,616   TIAA-CREF Enhanced International Equity Index Fund       1,567,835   8.3  
 7,382   TIAA-CREF Global Natural Resources Fund       65,113   0.4  
 134,826   TIAA-CREF International Equity Fund       1,368,486   7.3  
 129,432   TIAA-CREF International Opportunities Fund       1,300,793   6.9  
     TOTAL INTERNATIONAL EQUITY       5,221,875   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—66.5%               
 175,564   TIAA-CREF Enhanced Large-Cap Growth Index Fund       2,013,716   10.7  
 203,724   TIAA-CREF Enhanced Large-Cap Value Index Fund       2,077,983   11.1  
 205,304   TIAA-CREF Growth & Income Fund       2,500,604   13.3  
 144,560   TIAA-CREF Large-Cap Growth Fund       2,266,699   12.1  
 127,114   TIAA-CREF Large-Cap Value Fund       2,349,061   12.5  
 1,426   TIAA-CREF Mid-Cap Growth Fund       28,243   0.1  
 1,486   TIAA-CREF Mid-Cap Value Fund       35,115   0.2  
 41,790   TIAA-CREF Small-Cap Equity Fund       777,718   4.1  
 43,023   TIAA-CREF Small/Mid-Cap Equity Fund       453,462   2.4  
     TOTAL U.S. EQUITY       12,502,601   66.5  
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $18,353,528)    18,678,753   99.4  
                     
     TOTAL PORTFOLIO  (Cost $18,353,528)    18,678,753   99.4  
     OTHER ASSETS & LIABILITIES, NET       106,419   0.6  
     NET ASSETS      $18,785,172   100.0 %

 

 

 

(a) The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP and Institutional Class shares of the affiliated TIAA-CREF Funds.
(b) Indicates a security that has been deemed illiquid.

 

See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 43
 

Statements of assets and liabilities (unaudited)

 

TIAA-CREF Lifecycle Funds  ■  November 30, 2016

 

   Lifecycle
Retirement
Income Fund		   Lifecycle
2010 Fund		   Lifecycle
2015 Fund		   Lifecycle
2020 Fund		   Lifecycle
2025 Fund		   Lifecycle
2030 Fund		 
ASSETS                              
Affiliated investments, at value‡  $425,684,564   $1,125,820,979   $1,786,702,668   $3,170,108,448   $3,351,823,742   $3,246,150,642 
Cash   448,868    365,884    1,593,297    3,139,297    5,109,516    4,033,578 
Receivable from securities transactions   2,971,693    8,786,111    14,566,879    28,065,899    30,343,879    29,767,410 
Receivable from Fund shares sold   489,741    742,517    544,987    5,864,462    6,757,909    5,585,974 
Dividends and interest receivable   442,355    1,131,644    1,701,989    2,676,691    2,416,555    1,949,471 
Due from affiliates   5,168    11,093    17,079    29,423    31,014    30,039 
Other   38,531    69,845    91,355    120,100    125,446    119,838 
Total assets   430,080,920    1,136,928,073    1,805,218,254    3,210,004,320    3,396,608,061    3,287,636,952 
LIABILITIES                              
Management fees payable   3,499    9,262    14,692    26,046    27,514    26,645 
Service agreement fees payable   3,089    8,723    13,417    21,855    21,438    19,294 
Distribution fees payable   23,411    18,139    29,694    56,845    62,226    59,900 
Due to affiliates   2,559    5,093    6,792    9,471    9,470    9,190 
Payable for securities transactions   3,570,518    9,515,940    17,413,922    32,614,700    38,432,449    36,936,987 
Payable for Fund shares redeemed   186,824    373,405    497,810    2,072,848    1,258,006    379,548 
Payable for trustee compensation   13,930    55,696    82,082    115,909    114,868    110,402 
Accrued expenses and other payables   22,868    30,151    42,561    72,436    78,058    76,493 
Total liabilities   3,826,698    10,016,409    18,100,970    34,990,110    40,004,029    37,618,459 
NET ASSETS  $426,254,222   $1,126,911,664   $1,787,117,284   $3,175,014,210   $3,356,604,032   $3,250,018,493 
NET ASSETS CONSIST OF:                              
Paid-in-capital  $400,791,018   $997,203,999   $1,705,330,823   $2,994,836,018   $3,133,978,019   $2,995,757,040 
Undistributed net investment income (loss)   782,113    13,321,281    20,283,346    31,477,817    28,868,554    24,173,284 
Accumulated net realized gain (loss) on total investments   (1,492,477)   (5,837,565)   62,264,978    119,230,434    131,676,897    137,523,626 
Net unrealized appreciation (depreciation) on total investments   26,173,568    122,223,949    (761,863)   29,469,941    62,080,562    92,564,543 
NET ASSETS  $426,254,222   $1,126,911,664   $1,787,117,284   $3,175,014,210   $3,356,604,032   $3,250,018,493 
INSTITUTIONAL CLASS:                              
Net assets  $148,022,231   $554,939,976   $893,448,912   $1,645,241,623   $1,801,931,263   $1,817,800,301 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   13,420,967    49,616,613    90,613,018    163,699,337    178,698,031    181,178,014 
Net asset value per share   $11.03    $11.18    $9.86    $10.05    $10.08    $10.03 
ADVISOR CLASS:                              
Net assets  $103,946   $104,997   $104,919   $105,260   $115,536   $105,811 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   9,424    9,386    10,644    10,478    11,462    10,545 
Net asset value per share   $11.03    $11.19    $9.86    $10.05    $10.08    $10.03 
PREMIER CLASS:                              
Net assets  $32,751,890   $147,556,012   $241,139,437   $466,987,471   $510,223,493   $492,410,720 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   2,971,550    13,235,691    24,576,284    46,620,529    50,846,831    49,333,766 
Net asset value per share   $11.02    $11.15    $9.81    $10.02    $10.03    $9.98 
RETIREMENT CLASS:                              
Net assets  $150,286,454   $424,310,679   $652,424,016   $1,062,679,856   $1,044,333,740   $939,701,661 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   13,657,150    32,772,077    55,061,731    86,276,910    83,644,492    74,428,712 
Net asset value per share   $11.00    $12.95    $11.85    $12.32    $12.49    $12.63 
RETAIL CLASS:                              
Net assets  $95,089,701   $—   $—   $—   $—   $— 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   8,633,619    —    —    —    —    — 
Net asset value per share   $11.01   $—   $—   $—   $—   $— 
‡   Affiliated investments, cost  $399,510,996   $1,003,597,030   $1,787,464,531   $3,140,638,507   $3,289,743,180   $3,153,586,099 

 

44 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements   See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 45
 
Statements of assets and liabilities (unaudited) concluded

 

TIAA-CREF Lifecycle Funds  ■  November 30, 2016

 

   Lifecycle
2035 Fund		   Lifecycle
2040 Fund		   Lifecycle
2045 Fund		   Lifecycle
2050 Fund		   Lifecycle
2055 Fund		   Lifecycle
2060 Fund		 
ASSETS                              
Affiliated investments, at value‡  $3,274,335,951   $4,089,479,407   $1,834,285,427   $1,135,350,754   $261,298,284   $18,678,753 
Cash   5,408,159    6,246,015    4,626,288    2,766,631    745,743    52,929 
Receivable from securities transactions   28,970,560    35,851,266    13,730,813    8,312,370    1,858,576    354,561 
Receivable from Fund shares sold   6,189,310    8,008,283    6,206,735    3,994,297    1,204,871    81,128 
Dividends and interest receivable   1,431,516    1,070,029    355,301    188,661    36,155    1,986 
Due from affiliates   30,174    37,444    17,419    11,216    3,392    1,253 
Other   119,659    151,948    61,990    44,613    3,413    19,101 
Total assets   3,316,485,329    4,140,844,392    1,859,283,973    1,150,668,542    265,150,434    19,189,711 
LIABILITIES                              
Management fees payable   26,853    33,552    15,015    9,291    2,136    152 
Service agreement fees payable   17,619    21,599    9,203    5,660    1,503    125 
Distribution fees payable   61,958    78,472    38,603    25,763    7,261    406 
Due to affiliates   9,108    11,009    5,458    3,774    2,148    1,807 
Payable for securities transactions   38,189,136    45,045,080    21,369,867    13,127,946    3,178,153    390,500 
Payable for Fund shares redeemed   294,840    829,587    1,083,650    800,702    4,090    — 
Payable for trustee compensation   110,778    147,556    43,861    25,122    4,096    216 
Accrued expenses and other payables   74,350    93,426    47,911    36,218    20,216    11,333 
Total liabilities   38,784,642    46,260,281    22,613,568    14,034,476    3,219,603    404,539 
NET ASSETS  $3,277,700,687   $4,094,584,111   $1,836,670,405   $1,136,634,066   $261,930,831   $18,785,172 
NET ASSETS CONSIST OF:                          
Paid-in-capital  $2,986,008,879   $3,677,547,364   $1,661,054,801   $1,036,707,864   $248,100,680   $18,703,691 
Undistributed net investment income (loss)   18,652,634    15,877,596    5,827,626    3,140,238    578,488    31,878 
Accumulated net realized gain (loss) on total investments   146,285,089    199,822,743    22,180,186    12,859,897    1,415,162    (275,622)
Net unrealized appreciation (depreciation) on total investments   126,754,085    201,336,408    147,607,792    83,926,067    11,836,501    325,225 
NET ASSETS  $3,277,700,687   $4,094,584,111   $1,836,670,405   $1,136,634,066   $261,930,831   $18,785,172 
INSTITUTIONAL CLASS:                              
Net assets  $1,908,597,033   $2,394,931,430   $1,068,065,092   $647,121,081   $127,484,864   $9,138,569 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   189,552,104    237,141,823    98,058,137    59,360,650    10,395,083    917,926 
Net asset value per share   $10.07    $10.10    $10.89    $10.90    $12.26    $9.96 
ADVISOR CLASS:                              
Net assets  $105,950   $106,185   $106,720   $106,904   $107,082   $107,101 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   10,528    10,520    9,796    9,806    8,732    10,757 
Net asset value per share   $10.06    $10.09    $10.89    $10.90    $12.26    $9.96 
PREMIER CLASS:                              
Net assets  $510,114,468   $647,684,955   $320,386,077   $214,164,783   $60,902,224   $3,406,511 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   50,841,678    64,371,218    29,556,398    19,730,119    4,985,079    342,586 
Net asset value per share   $10.03    $10.06    $10.84    $10.85    $12.22    $9.94 
RETIREMENT CLASS:                              
Net assets  $858,883,236   $1,051,861,541   $448,112,516   $275,241,298   $73,436,661   $6,132,991 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   66,668,695    79,975,597    41,462,570    25,448,873    6,012,612    617,563 
Net asset value per share   $12.88    $13.15    $10.81    $10.82    $12.21    $9.93 
‡   Affiliated investments, cost  $3,147,581,866   $3,888,142,999   $1,686,677,635   $1,051,424,687   $249,461,783   $18,353,528 

 

46 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements   See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 47
 

Statements of operations (unaudited)

 

TIAA-CREF Lifecycle Funds  ■  For the period ended November 30, 2016

 

   Lifecycle
Retirement
Income Fund		   Lifecycle
2010 Fund		   Lifecycle
2015 Fund		   Lifecycle
2020 Fund		   Lifecycle
2025 Fund		   Lifecycle
2030 Fund		 
                         
INVESTMENT INCOME                              
Dividends from affiliated investments  $3,006,313   $7,940,612   $12,124,969   $19,250,544   $17,887,187   $15,094,998 
Total income   3,006,313    7,940,612    12,124,969    19,250,544    17,887,187    15,094,998 
                               
EXPENSES                              
Management fees   207,203    563,881    897,818    1,562,946    1,632,415    1,575,175 
Shareholder servicing — Institutional Class   411    478    718    1,074    1,048    1,142 
Shareholder servicing — Advisor Class   8    8    8    8    21    8 
Shareholder servicing — Premier Class   108    162    203    307    306    344 
Shareholder servicing — Retirement Class   184,651    532,228    829,216    1,317,739    1,279,695    1,141,742 
Shareholder servicing — Retail Class   11,757    —    —    —    —    — 
Distribution fees — Premier Class   23,644    112,078    178,985    346,853    375,032    362,801 
Distribution fees — Retail Class   117,779    —    —    —    —    — 
Registration fees   37,499    32,080    37,418    42,513    37,685    35,561 
Shareholder reports   16,184    25,951    37,402    71,740    72,819    71,037 
Professional fees   12,864    15,568    18,079    23,386    23,672    23,205 
Administrative service fees   8,758    12,484    15,677    21,946    22,524    21,930 
Custody and accounting fees   7,284    5,777    5,781    5,781    5,781    5,772 
Trustee fees and expenses   1,341    3,766    5,984    10,287    10,661    10,205 
Other expenses   7,567    10,995    15,353    29,290    37,475    36,937 
Total expenses   637,058    1,315,456    2,042,642    3,433,870    3,499,134    3,285,859 
Less: Expenses reimbursed by the investment adviser   (103,631)   (106,903)   (137,071)   (206,677)   (212,719)   (206,195)
Fee waiver by investment adviser and TPIS   (207,203)   (563,881)   (897,818)   (1,562,946)   (1,632,415)   (1,575,175)
Net expenses   326,224    644,672    1,007,753    1,664,247    1,654,000    1,504,489 
                               
Net investment income (loss)   2,680,089    7,295,940    11,117,216    17,586,297    16,233,187    13,590,509 
                               
NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS           
Realized gain (loss) from sale of affiliated investments   (988,711)   1,733,474    16,515,095    32,155,987    36,407,373    38,259,388 
Net realized gain (loss) from investments   (988,711)   1,733,474    16,515,095    32,155,987    36,407,373    38,259,388 
Net change in unrealized appreciation (depreciation) from affiliated investments   6,681,949    16,430,673    17,093,417    37,661,989    49,925,122    58,244,892 
Net realized and unrealized gain (loss) from investments   5,693,238    18,164,147    33,608,512    69,817,976    86,332,495    96,504,280 
Net increase (decrease) in net assets from operations  $8,373,327   $25,460,087   $44,725,728   $87,404,273   $102,565,682   $110,094,789 

 

48 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements   See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 49
 

Statements of operations (unaudited) concluded

 

TIAA-CREF Lifecycle Funds  ■  For the period ended November 30, 2016

 

   Lifecycle
2035 Fund		   Lifecycle
2040 Fund		   Lifecycle
2045 Fund		   Lifecycle
2050 Fund		   Lifecycle
2055 Fund		   Lifecycle
2060 Fund		 
                         
INVESTMENT INCOME                              
Dividends from affiliated investments  $12,047,080   $10,933,246   $4,130,809   $2,336,943   $468,152   $26,414 
Total income   12,047,080    10,933,246    4,130,809    2,336,943    468,152    26,414 
                               
EXPENSES                              
Management fees   1,581,534    1,980,327    866,932    530,262    116,542    7,397 
Shareholder servicing — Institutional Class   1,177    1,411    733    558    360    253 
Shareholder servicing — Advisor Class   8    8    8    8    8    8 
Shareholder servicing — Premier Class   238    395    246    179    114    91 
Shareholder servicing — Retirement Class   1,039,718    1,279,477    530,555    323,983    83,651    6,539 
Distribution fees — Premier Class   372,720    473,580    228,353    149,399    40,528    2,203 
Registration fees   33,655    36,580    32,827    32,565    29,289    32,342 
Shareholder reports   68,266    90,770    42,752    29,472    12,352    6,037 
Professional fees   23,164    26,491    17,661    15,254    12,392    11,185 
Administrative service fees   21,877    25,767    14,739    11,236    7,141    5,765 
Custody and accounting fees   5,761    5,763    5,836    5,836    5,752    5,794 
Trustee fees and expenses   10,202    12,762    6,278    3,726    871    45 
Other expenses   36,875    38,903    25,596    19,982    8,568    3,782 
Total expenses   3,195,195    3,972,234    1,772,516    1,122,460    317,568    81,441 
Less: Expenses reimbursed by the investment adviser   (201,697)   (239,400)   (147,145)   (119,219)   (77,045)   (65,315)
Fee waiver by investment adviser and TPIS   (1,581,534)   (1,980,327)   (866,932)   (530,262)   (116,542)   (7,397)
Net expenses   1,411,964    1,752,507    758,439    472,979    123,981    8,729 
                               
Net investment income (loss)   10,635,116    9,180,739    3,372,370    1,863,964    344,171    17,685 
                               
NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS                
Realized gain (loss) from sale of affiliated investments   42,128,121    61,292,342    (9,907,225)   (6,195,356)   (998,141)   (194,633)
Realized gain (loss) from sale of unaffiliated investments‡   —    —    —    —    —    5,891 
Net realized gain (loss) from investments   42,128,121    61,292,342    (9,907,225)   (6,195,356)   (998,141)   (188,742)
Net change in unrealized appreciation (depreciation) from affiliated investments   69,063,485    97,155,294    82,334,778    51,143,681    11,043,084    842,494 
Net realized and unrealized gain (loss) from investments   111,191,606    158,447,636    72,427,553    44,948,325    10,044,943    653,752 
Net increase (decrease) in net assets from operations  $121,826,722   $167,628,375   $75,799,923   $46,812,289   $10,389,114   $671,437 
‡   Includes net realized gain (loss) from securities sold to affiliates of  $—   $—   $—   $—   $—   $(375)

 

50 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements   See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 51
 

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
      November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016 
      (unaudited)       (unaudited)       (unaudited)     
OPERATIONS                              
Net investment income (loss)  $2,680,089   $7,032,088   $7,295,940   $20,421,442   $11,117,216   $32,680,055 
Net realized gain (loss) from investments   (988,711)   5,584,092    1,733,474    18,655,048    16,515,095    76,167,565 
Net change in unrealized appreciation (depreciation) from affiliated investments   6,681,949    (13,547,752)   16,430,673    (45,559,620)   17,093,417    (125,245,736)
Net increase (decrease) in net assets from operations   8,373,327    (931,572)   25,460,087    (6,483,130)   44,725,728    (16,398,116)
DISTRIBUTIONS TO SHAREHOLDERS                              
From net investment income:  Institutional Class   (1,031,130)   (3,068,791)   —    (12,479,822)   —    (20,367,471)
   Advisor Class†   (776)   (476)   —    (240)   —    (243)
   Premier Class   (209,430)   (622,601)   —    (3,058,523)   —    (5,093,546)
   Retirement Class   (916,484)   (2,826,215)   —    (8,088,041)   —    (12,476,033)
   Retail Class   (584,037)   (1,833,650)   —    —    —    — 
From realized gains:  Institutional Class   —    (2,423,136)   —    (13,843,822)   —    (47,039,350)
   Advisor Class†   —    (184)   —    (267)   —    (564)
   Premier Class   —    (532,477)   —    (3,599,487)   —    (12,505,749)
   Retirement Class   —    (2,520,377)   —    (10,218,099)   —    (32,881,018)
   Retail Class   —    (1,631,380)   —    —    —    — 
Total distributions      (2,741,857)   (15,459,287)   —    (51,288,301)   —    (130,363,974)
SHAREHOLDER TRANSACTIONS                              
Subscriptions:  Institutional Class   22,621,458    30,539,943    38,917,809    81,072,710    63,954,717    105,260,140 
   Advisor Class†   —    100,027    —    100,000    —    100,000 
   Premier Class   5,225,996    9,665,418    17,985,418    35,108,324    27,867,752    38,830,532 
   Retirement Class   14,266,670    40,813,705    26,973,359    55,295,070    24,023,378    66,995,964 
   Retail Class   8,361,188    22,816,836    —    —    —    — 
Reinvestments of distributions:  Institutional Class   1,031,130    5,491,927    —    26,323,644    —    67,406,821 
   Premier Class   209,430    1,155,078    —    6,658,010    —    17,599,295 
   Retirement Class   916,484    5,346,592    —    18,306,140    —    45,357,051 
   Retail Class   556,666    3,301,367    —    —    —    — 
Redemptions:  Institutional Class   (8,552,988)   (31,844,189)   (32,915,793)   (70,271,850)   (49,596,943)   (105,073,914)
   Premier Class   (3,576,880)   (6,197,443)   (15,657,348)   (15,885,860)   (20,432,139)   (24,651,515)
   Retirement Class   (10,526,168)   (27,663,626)   (34,898,320)   (91,894,298)   (53,564,563)   (120,109,565)
   Retail Class   (6,961,121)   (11,776,709)   —    —    —    — 
Net increase (decrease) from shareholder transactions   23,571,865    41,748,926    405,125    44,811,890    (7,747,798)   91,714,809 
Net increase (decrease) in net assets   29,203,335    25,358,067    25,865,212    (12,959,541)   36,977,930    (55,047,281)
NET ASSETS                                 
Beginning of period      397,050,887    371,692,820    1,101,046,452    1,114,005,993    1,750,139,354    1,805,186,635 
End of period     $426,254,222   $397,050,887   $1,126,911,664   $1,101,046,452   $1,787,117,284   $1,750,139,354 
Undistributed net investment income (loss) included in net assets  $782,113   $843,881   $13,321,281   $6,025,341   $20,283,346   $9,166,130 
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   2,050,830    2,809,442    3,490,750    7,383,845    6,558,786    10,790,587 
   Advisor Class†   —    9,424    —    9,386    —    10,644 
   Premier Class   472,999    885,692    1,633,161    3,179,722    2,860,979    3,941,242 
   Retirement Class   1,291,478    3,762,695    2,086,955    4,367,201    2,029,046    5,681,398 
   Retail Class   758,230    2,087,335    —    —    —    — 
Shares reinvested:  Institutional Class   94,326    516,774    —    2,495,132    —    7,263,666 
   Premier Class   19,181    108,816    —    632,290    —    1,904,685 
   Retirement Class   84,033    504,750    —    1,495,600    —    4,060,613 
   Retail Class   51,017    311,374    —    —    —    — 
Shares redeemed:  Institutional Class   (773,824)   (2,928,063)   (2,941,607)   (6,345,067)   (5,031,007)   (10,595,098)
   Premier Class   (323,497)   (574,531)   (1,409,263)   (1,449,652)   (2,085,788)   (2,517,767)
   Retirement Class   (956,969)   (2,563,632)   (2,712,118)   (7,260,199)   (4,555,869)   (10,266,754)
   Retail Class   (630,824)   (1,085,779)   —    —    —    — 
Net increase (decrease) from shareholder transactions   2,136,980    3,844,297    147,878    4,508,258    (223,853)   10,273,216 
†   Advisor Class commenced operations on December 4, 2015.                     

 

52 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 53
 
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
      November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016 
      (unaudited)      (unaudited)      (unaudited)    
OPERATIONS                                 
Net investment income (loss)  $17,586,297   $52,802,001   $16,233,187   $53,518,386   $13,590,509   $51,299,260 
Net realized gain (loss) from investments   32,155,987    128,830,280    36,407,373    135,118,494    38,259,388    138,811,355 
Net change in unrealized appreciation (depreciation) from affiliated investments   37,661,989    (215,966,619)   49,925,122    (238,620,991)   58,244,892    (257,160,721)
Net increase (decrease) in net assets from operations   87,404,273    (34,334,338)   102,565,682    (49,984,111)   110,094,789    (67,050,106)
DISTRIBUTIONS TO SHAREHOLDERS                              
From net investment income:  Institutional Class   —    (33,484,165)   —    (34,767,485)   —    (34,738,241)
   Advisor Class†   —    (233)   —    (228)   —    (225)
   Premier Class   —    (9,102,596)   —    (9,396,050)   —    (9,099,094)
   Retirement Class   —    (17,612,316)   —    (16,590,424)   —    (14,360,050)
From realized gains:  Institutional Class   —    (73,860,321)   —    (81,366,858)   —    (86,342,616)
   Advisor Class†   —    (516)   —    (537)   —    (561)
   Premier Class   —    (21,347,355)   —    (23,354,908)   —    (24,061,198)
   Retirement Class   —    (44,502,203)   —    (44,645,672)   —    (41,221,883)
Total distributions      —    (199,909,705)   —    (210,122,162)   —    (209,823,868)
SHAREHOLDER TRANSACTIONS                    
Subscriptions:  Institutional Class   137,133,047    233,422,169    153,257,228    272,266,971    147,339,065    264,995,301 
   Advisor Class†   —    100,003    10,000    100,032    —    100,019 
   Premier Class   39,428,621    87,002,765    43,265,256    105,202,218    38,493,185    96,393,124 
   Retirement Class   51,548,642    127,816,398    65,018,721    126,276,556    57,117,959    125,509,601 
Reinvestments of distributions:  Institutional Class   —    107,344,486    —    116,134,343    —    121,080,857 
   Premier Class   —    30,449,951    —    32,750,958    —    33,160,292 
   Retirement Class   —    62,114,519    —    61,236,096    —    55,581,933 
Redemptions:  Institutional Class   (59,872,884)   (101,490,711)   (41,051,201)   (85,803,359)   (37,059,232)   (83,298,786)
   Premier Class   (24,202,019)   (21,495,659)   (18,537,525)   (12,271,083)   (21,602,399)   (13,515,012)
   Retirement Class   (50,168,671)   (132,577,105)   (52,721,695)   (131,810,390)   (33,664,841)   (133,935,243)
Net increase (decrease) from shareholder transactions   93,866,736    392,686,816    149,240,784    484,082,342    150,623,737    466,072,086 
Net increase (decrease) in net assets   181,271,009    158,442,773    251,806,466    223,976,069    260,718,526    189,198,112 
NET ASSETS                                 
Beginning of period      2,993,743,201    2,835,300,428    3,104,797,566    2,880,821,497    2,989,299,967    2,800,101,855 
End of period     $3,175,014,210   $2,993,743,201   $3,356,604,032   $3,104,797,566   $3,250,018,493   $2,989,299,967 
Undistributed net investment income (loss) included in net assets  $31,477,817   $13,891,520   $28,868,554   $12,635,367   $24,173,284   $10,582,775 
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   13,852,854    23,554,614    15,438,977    27,527,554    14,943,587    26,921,802 
   Advisor Class†   —    10,478    989    10,473    —    10,545 
   Premier Class   3,996,246    8,669,146    4,382,615    10,512,459    3,927,324    9,679,304 
   Retirement Class   4,207,943    10,494,229    5,246,266    10,274,396    4,567,635    10,118,963 
Shares reinvested:  Institutional Class   —    11,395,381    —    12,328,487    —    12,963,689 
   Premier Class   —    3,235,914    —    3,487,855    —    3,561,793 
   Retirement Class   —    5,363,948    —    5,238,331    —    4,718,331 
Shares redeemed:  Institutional Class   (5,983,611)   (10,051,354)   (4,097,252)   (8,426,254)   (3,715,169)   (8,230,773)
   Premier Class   (2,426,614)   (2,187,422)   (1,855,405)   (1,257,815)   (2,182,868)   (1,392,116)
   Retirement Class   (4,133,670)   (11,005,160)   (4,299,665)   (10,844,805)   (2,728,306)   (10,959,905)
Net increase (decrease) from shareholder transactions   9,513,148    39,479,774    14,816,525    48,850,681    14,812,203    47,391,633 
†   Advisor Class commenced operations on December 4, 2015.                      

 

54 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 55
 
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
      November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016 
      (unaudited)      (unaudited)      (unaudited)    
OPERATIONS                                 
Net investment income (loss)  $10,635,116   $48,151,089   $9,180,739   $57,161,220   $3,372,370   $22,409,708 
Net realized gain (loss) from investments   42,128,121    145,278,120    61,292,342    195,089,300    (9,907,225)   41,250,648 
Net change in unrealized appreciation (depreciation) from affiliated investments   69,063,485    (276,628,785)   97,155,294    (383,650,935)   82,334,778    (106,948,078)
Net increase (decrease) in net assets from operations   121,826,722    (83,199,576)   167,628,375    (131,400,415)   75,799,923    (43,287,722)
DISTRIBUTIONS TO SHAREHOLDERS                              
From net investment income:  Institutional Class   —    (33,541,705)   —    (39,755,836)   —    (14,627,937)
   Advisor Class†   —    (209)   —    (195)   —    (180)
   Premier Class   —    (8,419,720)   —    (10,208,040)   —    (4,173,080)
   Retirement Class   —    (12,206,377)   —    (13,982,463)   —    (6,471,487)
From realized gains:  Institutional Class   —    (97,821,694)   —    (135,560,199)   —    (27,234,862)
   Advisor Class†   —    (613)   —    (669)   —    (337)
   Premier Class   —    (26,249,811)   —    (37,445,533)   —    (8,360,474)
   Retirement Class   —    (41,734,079)   —    (56,846,864)   —    (13,825,415)
Total distributions   —    (219,974,208)   —    (293,799,799)   —    (74,693,772)
SHAREHOLDER TRANSACTIONS                              
Subscriptions:  Institutional Class   155,425,731    287,948,475    168,216,981    360,743,393    137,351,960    238,954,794 
   Advisor Class†   —    100,000    —    100,005    —    100,000 
   Premier Class   43,422,701    102,382,571    46,812,557    111,962,992    38,367,720    82,949,614 
   Retirement Class   55,990,692    111,875,445    51,648,093    120,063,699    42,732,933    89,902,767 
Reinvestments of distributions:  Institutional Class   —    131,363,399    —    175,316,035    —    41,862,799 
   Premier Class   —    34,669,531    —    47,653,573    —    12,533,554 
   Retirement Class   —    53,940,456    —    70,829,327    —    20,296,902 
Redemptions:  Institutional Class   (39,630,443)   (87,451,696)   (49,181,730)   (120,529,325)   (35,870,756)   (45,423,900)
   Premier Class   (19,487,608)   (8,891,511)   (22,842,394)   (11,280,928)   (12,135,547)   (2,840,016)
   Retirement Class   (36,558,938)   (144,459,208)   (42,647,526)   (188,965,893)   (15,458,095)   (66,764,897)
Net increase (decrease) from shareholder transactions   159,162,135    481,477,462    152,005,981    565,892,878    154,988,215    371,571,617 
Net increase (decrease) in net assets   280,988,857    178,303,678    319,634,356    140,692,664    230,788,138    253,590,123 
NET ASSETS                                 
Beginning of period      2,996,711,830    2,818,408,152    3,774,949,755    3,634,257,091    1,605,882,267    1,352,292,144 
End of period     $3,277,700,687   $2,996,711,830   $4,094,584,111   $3,774,949,755   $1,836,670,405   $1,605,882,267 
Undistributed net investment income (loss) included in net assets  $18,652,634   $8,017,518   $15,877,596   $6,696,857   $5,827,626   $2,455,256 
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   15,743,401    29,247,570    17,030,594    36,618,105    12,898,244    22,867,146 
   Advisor Class†   —    10,528    —    10,520    —    9,796 
   Premier Class   4,426,152    10,287,976    4,777,632    11,195,528    3,628,474    7,904,043 
   Retirement Class   4,401,423    8,871,945    3,992,137    9,330,579    4,030,522    8,647,474 
Shares reinvested:  Institutional Class   —    14,049,562    —    18,750,378    —    4,161,312 
   Premier Class   —    3,715,920    —    5,107,564    —    1,249,607 
   Retirement Class   —    4,498,787    —    5,805,682    —    2,027,662 
Shares redeemed:  Institutional Class   (3,978,089)   (8,502,918)   (4,926,398)   (11,641,259)   (3,327,751)   (4,068,307)
   Premier Class   (1,966,941)   (897,830)   (2,304,456)   (1,144,833)   (1,138,774)   (275,396)
   Retirement Class   (2,917,651)   (11,675,343)   (3,347,857)   (14,979,470)   (1,480,293)   (6,520,992)
Net increase (decrease) from shareholder transactions   15,708,295    49,606,197    15,221,652    59,052,794    14,610,422    36,002,345 
†   Advisor Class commenced operations on December 4, 2015.                      

 

56 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 57
 
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
    November 30, 2016   May 31, 2016 November 30, 2016   May 31, 2016 November 30, 2016   May 31, 2016 
      (unaudited)      (unaudited)      (unaudited)    
OPERATIONS                                 
Net investment income (loss)  $1,863,964   $13,138,365   $344,171   $2,418,895   $17,685   $180,056 
Net realized gain (loss) from investments   (6,195,356)   24,653,159    (998,141)   3,645,717    (188,742)   (40,054)
Net change in unrealized appreciation (depreciation) from affiliated investments   51,143,681    (61,383,461)   11,043,084    (8,837,515)   842,494    (573,680)
Net increase (decrease) in net assets from operations   46,812,289    (23,591,937)   10,389,114    (2,772,903)   671,437    (433,678)
DISTRIBUTIONS TO SHAREHOLDERS                              
From net investment income:  Institutional Class   —    (8,421,102)   —    (1,299,255)   —    (104,352)
   Advisor Class†   —    (180)   —    (177)   —    (186)
   Premier Class   —    (2,615,313)   —    (587,936)   —    (44,738)
   Retirement Class   —    (3,901,492)   —    (837,338)   —    (59,806)
From realized gains:  Institutional Class   —    (15,165,725)   —    (2,042,664)   —    (215,206)
   Advisor Class†   —    (326)   —    (280)   —    (385)
   Premier Class   —    (5,069,059)   —    (988,295)   —    (100,626)
   Retirement Class   —    (8,053,418)   —    (1,527,289)   —    (139,033)
Total distributions      —    (43,226,615)   —    (7,283,234)   —    (664,332)
SHAREHOLDER TRANSACTIONS                              
Subscriptions:  Institutional Class   89,930,486    166,512,469    27,564,995    54,378,102    3,784,733    1,244,119 
   Advisor Class†   —    100,014    —    100,006    —    100,039 
   Premier Class   29,334,407    57,054,228    13,719,265    21,958,079    1,008,251    86,801 
   Retirement Class   29,812,643    61,005,045    13,401,533    27,300,426    2,654,475    3,807,531 
Reinvestments of distributions:  Institutional Class   —    23,586,827    —    3,341,352    —    21,971 
   Premier Class   —    7,684,372    —    1,575,679    —    664 
   Retirement Class   —    11,954,910    —    2,364,091    —    55,623 
Redemptions:  Institutional Class   (20,622,848)   (28,076,345)   (2,920,621)   (15,714,381)   (490,608)   (838,690)
   Premier Class   (4,457,314)   (3,330,328)   (1,207,686)   (1,910,615)   (259,328)   (64)
   Retirement Class   (8,974,427)   (44,720,960)   (2,935,170)   (21,187,753)   (1,398,180)   (2,038,545)
Net increase (decrease) from shareholder transactions   115,022,947    251,770,232    47,622,316    72,204,986    5,299,343    2,439,449 
Net increase (decrease) in net assets   161,835,236    184,951,680    58,011,430    62,148,849    5,970,780    1,341,439 
NET ASSETS                                 
Beginning of period      974,798,830    789,847,150    203,919,401    141,770,552    12,814,392    11,472,953 
End of period     $1,136,634,066   $974,798,830   $261,930,831   $203,919,401   $18,785,172   $12,814,392 
Undistributed net investment income (loss) included in net assets  $3,140,238   $1,276,274   $578,488   $234,317   $31,878   $14,193 
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   8,424,029    15,970,551    2,292,656    4,632,987    386,383    132,060 
   Advisor Class†   —    9,806    —    8,732    —    10,757 
   Premier Class   2,770,108    5,455,177    1,150,651    1,880,087    103,201    9,424 
   Retirement Class   2,810,846    5,889,321    1,120,943    2,338,841    272,616    396,279 
Shares reinvested:  Institutional Class   —    2,344,615    —    295,695    —    2,396 
   Premier Class   —    766,139    —    139,688    —    73 
   Retirement Class   —    1,195,491    —    209,582    —    6,066 
Shares redeemed:  Institutional Class   (1,915,797)   (2,515,265)   (241,207)   (1,267,309)   (50,417)   (88,873)
   Premier Class   (420,118)   (322,791)   (100,711)   (158,380)   (26,559)   (7)
   Retirement Class   (857,402)   (4,372,091)   (247,277)   (1,774,682)   (144,950)   (214,763)
Net increase (decrease) from shareholder transactions   10,811,666    24,420,953    3,975,055    6,305,241    540,274    253,412 
†   Advisor Class commenced operations on December 4, 2015.                     

 

58 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 59
 

Financial highlights

 

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  value,     investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year  beginning   income   on total   investment   investment   realized   and   end of   Total   period or year   Gross   Net   income   turnover 
   ended  of period   (loss)a   investmentsj   operations   income   gains   distributions   period   return   (in thousands)  expensese   expensese   (loss)  rate 
                                                                          
LIFECYCLE RETIREMENT INCOME                                                            
Institutional Class:  11/30/16#  $10.87   $0.08   $ 0.16   $ 0.24   $(0.08)  $    —   $(0.08)  $11.03    2.24%b   $148,022    0.14%c    0.00%c    1.45%c    13%b 
   5/31/16   11.38    0.22    (0.27)   (0.05)   (0.26)   (0.20)   (0.46)   10.87    (0.29)   131,032    0.15    0.00    2.02    18 
   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 
Advisor Class:  11/30/16#   10.88    0.08    0.15    0.23    (0.08)   —    (0.08)   11.03    2.14b    104    0.16c    0.02c    1.44c    13b 
   5/31/16‡   11.10    0.08    0.08    0.16    (0.18)   (0.20)   (0.38)   10.88    1.57b    102    0.18c    0.03c    1.62c    18 
Premier Class:  11/30/16#   10.87    0.07    0.15    0.22    (0.07)   —    (0.07)   11.02    2.07b    32,752    0.29c    0.15c    1.30c    13b 
   5/31/16   11.37    0.20    (0.26)   (0.06)   (0.24)   (0.20)   (0.44)   10.87    (0.35)   30,459    0.30    0.15    1.87    18 
   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 
Retirement Class:  11/30/16#   10.85    0.07    0.15    0.22    (0.07)   —    (0.07)   11.00    2.03b    150,286    0.39c    0.25c    1.20c    13b 
   5/31/16   11.35    0.19    (0.26)   (0.07)   (0.23)   (0.20)   (0.43)   10.85    (0.45)   143,639    0.45    0.25    1.77    18 
   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 
Retail Class:  11/30/16#   10.86    0.07    0.15    0.22    (0.07)   —    (0.07)   11.01    2.02b    95,090    0.42c    0.25c    1.20c    13b 
   5/31/16   11.36    0.19    (0.26)   (0.07)   (0.23)   (0.20)   (0.43)   10.86    (0.45)   91,818    0.43    0.25    1.77    18 
   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 

 

60 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 61
 
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  value,     investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year  beginning   income   on total   investment   investment   realized   and   end of   Total   period or year   Gross   Net   income   turnover 
   ended  of period   (loss)a   investmentsj   operations   income   gains   distributions   period   return   (in thousands)  expensese   expensese   (loss)  rate 
                                                                          
LIFECYCLE 2010                                                            
Institutional Class:  11/30/16#  $10.93   $0.08   $ 0.17   $ 0.25   $    —   $    —   $    —   $11.18    2.29%b   $554,940    0.12%c    0.00%c    1.41%c    15%b 
   5/31/16   11.58    0.22    (0.30)   (0.08)   (0.27)   (0.30)   (0.57)   10.93    (0.44)   536,150    0.12    0.00    2.02    19 
   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 
Advisor Class:  11/30/16#   10.93    0.08    0.18    0.26    —    —    —    11.19    2.38b    105    0.13c    0.02c    1.39c    15b 
   5/31/16‡    11.37    0.08    0.05    0.13    (0.27)   (0.30)   (0.57)   10.93    1.39b    103    0.15c    0.03c    1.59c    19 
Premier Class:  11/30/16#   10.90    0.07    0.18    0.25    —    —    —    11.15    2.29b    147,556    0.27c    0.15c    1.26c    15b 
   5/31/16   11.55    0.20    (0.29)   (0.09)   (0.26)   (0.30)   (0.56)   10.90    (0.58)   141,824    0.27    0.15    1.87    19 
   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 
Retirement Class:  11/30/16#   12.66    0.08    0.21    0.29    —    —    —    12.95    2.29b    424,311    0.37c    0.25c    1.16c    15b 
   5/31/16   13.33    0.22    (0.35)   (0.13)   (0.24)   (0.30)   (0.54)   12.66    (0.80)   422,969    0.42    0.25    1.76    19 
   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 
                                                                          
LIFECYCLE 2015                                                            
Institutional Class:  11/30/16#   9.61    0.07    0.18    0.25    —    —    —    9.86    2.60b    893,449    0.12c    0.00c    1.35c    15b 
   5/31/16   10.56    0.20    (0.32)   (0.12)   (0.25)   (0.58)   (0.83)   9.61    (0.79)   856,233    0.12    0.00    2.01    18 
   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 
Advisor Class:  11/30/16#   9.61    0.07    0.18    0.25    —    —    —    9.86    2.60b    105    0.13c    0.02c    1.33c    15b 
   5/31/16‡   10.35    0.07    0.02    0.09    (0.25)   (0.58)   (0.83)   9.61    1.21b    102    0.14c    0.02c    1.54c    18 
Premier Class:  11/30/16#   9.57    0.06    0.18    0.24    —    —    —    9.81    2.51b    241,139    0.27c   0.15c    1.20c    15b 
   5/31/16   10.52    0.18    (0.31)   (0.13)   (0.24)   (0.58)   (0.82)   9.57    (0.94)   227,814    0.27    0.15    1.87    18 
   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 
Retirement Class:  11/30/16#   11.56    0.07    0.22    0.29    —    —    —    11.85    2.51b    652,424    0.37c    0.25c    1.10c    15b 
   5/31/16   12.53    0.21    (0.38)   (0.17)   (0.22)   (0.58)   (0.80)   11.56    (1.09)   665,990    0.42    0.25    1.76    18 
   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 

 

62 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 63
 
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  value,     investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year  beginning   income   on total   investment   investment   realized   and   end of   Total   period or year   Gross   Net   income   turnover 
   ended  of period   (loss)a   investmentsj   operations   income   gains   distributions   period   return   (in thousands)  expensese   expensese   (loss)  rate 
                                                                          
LIFECYCLE 2020                                                            
Institutional Class:  11/30/16#   $  9.77   $0.06   $  0.22   $  0.28   $    —   $    —   $    —   $10.05    2.87%b   $1,645,242    0.11%c    0.00%c    1.23%c    12%b 
   5/31/16   10.72    0.20    (0.36)   (0.16)   (0.25)   (0.54)   (0.79)   9.77    (1.26)   1,521,819    0.12    0.00    1.98    14 
   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 
Advisor Class:  11/30/16#   9.76    0.06    0.23    0.29    —    —    —    10.05    2.97b    105    0.13c    0.02c    1.22c    12b 
   5/31/16‡   10.48    0.07    (0.01)   0.06    (0.24)   (0.54)   (0.78)   9.76    0.88b    102    0.14c    0.03c    1.43c    14 
Premier Class:  11/30/16#   9.74    0.05    0.23    0.28    —    —    —    10.02    2.87b    466,987    0.26c    0.15c    1.08c    12b 
   5/31/16   10.69    0.18    (0.36)   (0.18)   (0.23)   (0.54)   (0.77)   9.74    (1.42)   438,819    0.27    0.15    1.83    14 
   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 
Retirement Class:  11/30/16#   11.98    0.06    0.28    0.34    —    —    —    12.32    2.84b    1,062,680    0.36c    0.25c    0.98c    12b 
   5/31/16   12.96    0.21    (0.44)   (0.23)   (0.21)   (0.54)   (0.75)   11.98    (1.54)   1,033,003    0.42    0.25    1.73    14 
   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 
                                                                          
LIFECYCLE 2025                                                            
Institutional Class:  11/30/16#   9.76    0.05    0.27    0.32    —    —    —    10.08    3.28b    1,801,931    0.11c    0.00c    1.10c    12b 
   5/31/16   10.81    0.19    (0.43)   (0.24)   (0.24)   (0.57)   (0.81)   9.76    (1.96)   1,633,946    0.12    0.00    1.96    11 
   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 
Advisor Class:  11/30/16#   9.76    0.05    0.27    0.32    —    —    —    10.08    3.28b    116    0.14c    0.04c    1.06c    12b 
   5/31/16‡   10.54    0.06    (0.03)   0.03    (0.24)   (0.57)   (0.81)   9.76    0.54b    102    0.14c    0.02c    1.31c    11 
Premier Class:  11/30/16#   9.72    0.05    0.26    0.31    —    —    —    10.03    3.19b    510,223    0.26c    0.15c    0.95c    12b 
   5/31/16   10.76    0.18    (0.42)   (0.24)   (0.23)   (0.57)   (0.80)   9.72    (2.02)   469,798    0.27    0.15    1.82    11 
   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 
Retirement Class:  11/30/16#   12.10    0.05    0.34    0.39    —    —    —    12.49    3.22b    1,044,334    0.36c    0.25c    0.85c    12b 
   5/31/16   13.19    0.21    (0.52)   (0.31)   (0.21)   (0.57)   (0.78)   12.10    (2.17)   1,000,951    0.42    0.25    1.71    11 
   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 

 

64 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 65
 
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   value,   investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year   beginning   income   on total   investment   investment   realized   and   end of   Total   period or year   Gross   Net   income   turnover 
   ended   of period   (loss)a  investmentsj  operations   income   gains   distributions   period   return   (in thousands)  expensese  expensese  (loss)  rate 
                                                                            
LIFECYCLE 2030                                                                     
Institutional Class:   11/30/16#     $  9.68      $0.05              $0.30           $0.35             $—      $—            $—        $10.03    3.62%b         $1,817,800    0.11%c   0.00%c   0.96%c   12%b
    5/31/16    10.81    0.19    (0.49)   (0.30)   (0.24)   (0.59)   (0.83)   9.68    (2.51)   1,645,188    0.12    0.00    1.93    12 
    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 
Advisor Class:   11/30/16#   9.68    0.05    0.30    0.35    —    —    —    10.03    3.62b   106    0.13c   0.02c   0.94c   12b
    5/31/16‡   10.52    0.05    (0.06)   (0.01)   (0.24)   (0.59)   (0.83)   9.68    0.15b   102    0.14c   0.03c   1.19c   12 
Premier Class:   11/30/16#   9.64    0.04    0.30    0.34    —    —    —    9.98    3.53b   492,411    0.26c   0.15c   0.81c   12b
    5/31/16    10.77    0.18    (0.50)   (0.32)   (0.22)   (0.59)   (0.81)   9.64    (2.67)   458,645    0.27    0.15    1.80    12 
    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 
Retirement Class:   11/30/16#   12.20    0.04    0.39    0.43    —    —    —    12.63    3.52b   939,702    0.36c   0.25c   0.71c   12b
    5/31/16    13.39    0.21    (0.60)   (0.39)   (0.21)   (0.59)   (0.80)   12.20    (2.73)   885,365    0.42    0.25    1.69    12 
    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 
                                                                            
LIFECYCLE 2035                                                                     
Institutional Class:   11/30/16#   9.68    0.04    0.35    0.39    —    —    —    10.07    4.03b   1,908,597    0.11c   0.00c   0.76c   12b
    5/31/16    10.92    0.18    (0.55)   (0.37)   (0.22)   (0.65)   (0.87)   9.68    (3.08)   1,721,118    0.12    0.00    1.82    11 
    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 
Advisor Class:   11/30/16#   9.68    0.04    0.34    0.38    —    —    —    10.06    3.93b   106    0.13c   0.02c   0.75c   12b
    5/31/16‡   10.60    0.04    (0.09)   (0.05)   (0.22)   (0.65)   (0.87)   9.68    (0.17)b   102    0.14c   0.03c   0.99c   11 
Premier Class:   11/30/16#   9.65    0.03    0.35    0.38    —    —    —    10.03    3.94b   510,114    0.26c   0.15c   0.61c   12b
    5/31/16    10.90    0.17    (0.56)   (0.39)   (0.21)   (0.65)   (0.86)   9.65    (3.33)   467,084    0.27    0.15    1.68    11 
    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 
Retirement Class:   11/30/16#   12.40    0.03    0.45    0.48    —    —    —    12.88    3.87b   858,883    0.36c   0.25c   0.51c   12b
    5/31/16    13.73    0.20    (0.69)   (0.49)   (0.19)   (0.65)   (0.84)   12.40    (3.36)   808,408    0.42    0.25    1.58    11 
    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 

 

66 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual 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   value,   investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year   beginning   income   on total   investment   investment   realized   and   end of   Total   period or year   Gross   Net   income   turnover 
   ended   of period   (loss)a   investmentsj   operations   income   gains   distributions   period   return   (in thousands)  expensese   expensese   (loss)  rate 
                                                                            
LIFECYCLE 2040                                                                     
Institutional Class:   11/30/16#          $9.67             $0.03             $0.40             $0.43             $—      $—             $—      $10.10    4.45%b       $2,394,931    0.11%c    0.00%c    0.55%c    15%b 
    5/31/16    11.05    0.17    (0.62)   (0.45)   (0.21)   (0.72)   (0.93)   9.67    (3.83)   2,177,059    0.11    0.00    1.70    11 
    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 
Advisor Class:   11/30/16#    9.67    0.03    0.39    0.42    —    —    —    10.09    4.34b    106    0.13c    0.02c    0.54c    15b 
    5/31/16‡    10.69    0.04    (0.13)   (0.09)   (0.21)   (0.72)   (0.93)   9.67    (0.60)b    102    0.14c    0.03c    0.78c    11 
Premier Class:   11/30/16#    9.65    0.02    0.39    0.41    —    —    —    10.06    4.25b    647,685    0.26c    0.15c    0.40c    15b 
    5/31/16    11.02    0.15    (0.60)   (0.45)   (0.20)   (0.72)   (0.92)   9.65    (3.89)   597,044    0.26    0.15    1.56    11 
    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 
Retirement Class:   11/30/16#    12.61    0.02    0.52    0.54    —    —    —    13.15    4.28b    1,051,862    0.36c    0.25c    0.30c    15b 
    5/31/16    14.10    0.19    (0.78)   (0.59)   (0.18)   (0.72)   (0.90)   12.61    (4.03)   1,000,745    0.41    0.25    1.47    11 
    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 
                                                                                     
LIFECYCLE 2045                                                                     
Institutional Class:   11/30/16#    10.42    0.03    0.44    0.47    —    —    —    10.89    4.51b    1,068,065    0.12c    0.00c    0.48c    15b 
    5/31/16    11.44    0.18    (0.63)   (0.45)   (0.20)   (0.37)   (0.57)   10.42    (3.71)   922,057    0.12    0.00    1.68    8 
    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 
Advisor Class:   11/30/16#    10.42    0.02    0.45    0.47    —    —    —    10.89    4.51b    107    0.13c    0.01c    0.47c    15b 
    5/31/16‡    11.08    0.04    (0.13)   (0.09)   (0.20)   (0.37)   (0.57)   10.42    (0.60)b    102    0.15c    0.03c    0.73c    8 
Premier Class:   11/30/16#    10.38    0.02    0.44    0.46    —    —    —    10.84    4.43b    320,386    0.27c    0.15c    0.33c    15b 
    5/31/16    11.40    0.16    (0.62)   (0.46)   (0.19)   (0.37)   (0.56)   10.38    (3.86)   280,898    0.27    0.15    1.55    8 
    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 
Retirement Class:   11/30/16#    10.35    0.01    0.45    0.46    —    —    —    10.81    4.44b    448,113    0.37c    0.25c    0.23c    15b 
    5/31/16    11.37    0.15    (0.63)   (0.48)   (0.17)   (0.37)   (0.54)   10.35    (3.98)   402,825    0.42    0.25    1.45    8 
    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 

 

68 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual 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   value,    investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year   beginning   income   on total   investment   investment   realized   and   end of   Total   period or year   Gross   Net   income   turnover 
   ended   of period   (loss)a   investmentsj   operations   income   gains   distributions   period   return   (in thousands)  expensese   expensese   (loss)  rate 
                                                                            
LIFECYCLE 2050                                                                     
Institutional Class:   11/30/16#             $10.42          $0.02             $0.46             $0.48             $—             $—             $—      $10.90    4.61%b             $647,121    0.12%c    0.00%c    0.44%c    14%b 
    5/31/16    11.42    0.17    (0.61)   (0.44)   (0.20)   (0.36)   (0.56)   10.42    (3.67)   550,907    0.13    0.00    1.66    9 
    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 
Advisor Class:   11/30/16#    10.42    0.02    0.46    0.48    —    —    —    10.90    4.61b    107    0.14c    0.01c    0.43c    14b 
    5/31/16‡    11.06    0.03    (0.11)   (0.08)   (0.20)   (0.36)   (0.56)   10.42    (0.55)b    102    0.16c    0.03c    0.70c    9 
Premier Class:   11/30/16#    10.39    0.02    0.44    0.46    —    —    —    10.85    4.43b    214,165    0.27c    0.15c    0.29c    14b 
    5/31/16    11.38    0.16    (0.60)   (0.44)   (0.19)   (0.36)   (0.55)   10.39    (3.73)   180,517    0.28    0.15    1.53    9 
    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 
Retirement Class:   11/30/16#    10.35    0.01    0.46    0.47    —    —    —    10.82    4.54b    275,241    0.37c    0.25c    0.19c    14b 
    5/31/16    11.35    0.15    (0.62)   (0.47)   (0.17)   (0.36)   (0.53)   10.35    (3.93)   243,273    0.43    0.25    1.44    9 
    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 
                                                                            
LIFECYCLE 2055                                                                     
Institutional Class:   11/30/16#    11.72    0.02    0.52    0.54    —    —    —    12.26    4.61b    127,485    0.17c    0.00c    0.40c    12b 
    5/31/16    12.77    0.19    (0.67)   (0.48)   (0.22)   (0.35)   (0.57)   11.72    (3.62)   97,784    0.19    0.00    1.62    24 
    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 
Advisor Class:   11/30/16#    11.72    0.02    0.52    0.54    —    —    —    12.26    4.61b    107    0.18c    0.02c    0.39c    12b 
    5/31/16‡    12.36    0.04    (0.11)   (0.07)   (0.22)   (0.35)   (0.57)   11.72    (0.44)b    102    0.21c    0.03c    0.67c    24 
Premier Class:   11/30/16#    11.68    0.02    0.52    0.54    —    —    —    12.22    4.62b    60,902    0.32c    0.15c    0.25c    12b 
    5/31/16    12.73    0.17    (0.66)   (0.49)   (0.21)   (0.35)   (0.56)   11.68    (3.76)   45,977    0.34    0.15    1.49    24 
    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 
Retirement Class:   11/30/16#    11.69    0.01    0.51    0.52    —    —    —    12.21    4.45b    73,437    0.42c    0.25c    0.15c    12b 
    5/31/16    12.73    0.16    (0.66)   (0.50)   (0.19)   (0.35)   (0.54)   11.69    (3.81)   60,056    0.49    0.25    1.33    24 
    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 

 

70 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 71
 
Financial highlights concluded

 

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     value,     investment     gain (loss )   (loss) from     Net     Net     dividends     value,           at end of                 investment     Portfolio  
    or year     beginning     income     on total     investment     investment     realized     and     end of     Total     period or year     Gross     Net     income     turnover  
    ended     of period     (loss )a     investments j   operations     income     gains     distributions     period     return     (in thousands )   expenses e    expenses e    (loss )   rate  
                                                                                                                       
LIFECYCLE 2060                                                                                                                  
Institutional Class:     11/30/16 #           $ 9.51            $ 0.02               $ 0.43            $ 0.45            $ —          $ —            $ —        $ 9.96       4.73 %b       $ 9,139       0.99 %c      0.00 %c      0.35 %c      45 %b 
      5/31/16       10.48       0.16       (0.55 )     (0.39 )     (0.19 )     (0.39 )     (0.58 )     9.51       (3.52 )     5,533       1.15       0.00       1.67       54  
      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 
Advisor Class:     11/30/16 #      9.51       0.02       0.43       0.45       —       —       —       9.96       4.73 b      107       0.99 c      0.02 c      0.35 c      45 b 
      5/31/16 ‡      10.15       0.03       (0.09 )     (0.06 )     (0.19 )     (0.39 )     (0.58 )     9.51       (0.39 )b      102       1.16 c      0.02 c      0.65 c      54  
Premier Class:     11/30/16 #      9.50       0.01       0.43       0.44       —       —       —       9.94       4.63 b      3,407       1.13 c      0.15 c      0.21 c      45 b 
      5/31/16       10.47       0.15       (0.56 )     (0.41 )     (0.17 )     (0.39 )     (0.56 )     9.50       (3.68 )     2,527       1.30       0.15       1.52       54  
      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:     11/30/16 #      9.50       0.01       0.42       0.43       —       —       —       9.93       4.53 b      6,133       1.23 c      0.25 c      0.11 c      45 b 
      5/31/16       10.47       0.15       (0.56 )     (0.41 )     (0.17 )     (0.39 )     (0.56 )     9.50       (3.74 )     4,652       1.45       0.25       1.55       54  
      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 
# Unaudited
† The Fund commenced operations on September 26, 2014.
‡ The Advisor Class commenced operations on December 4, 2015.
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.

 

72 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 73
 

Notes to financial statements (unaudited)

 

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.

 

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, LLC (“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. Prior to October 1, 2016, Teachers Advisors, LLC was named Teachers Advisors, Inc. The Funds offer up to five share classes, although any one Fund may not necessarily offer all five classes. The Funds may offer Institutional, Advisor, 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.

 

74 2016 Semiannual Report  ■  TIAA-CREF Lifecycle 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 being 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.

 

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.

 

New rule issuances: In October 2016, the Commission issued Final Rule Release No. 33-10231, Investment Company Reporting Modernization. This final rule modernizes investment company reporting by requiring the filing of new forms N-PORT and N-CEN, and amends Regulation S-X disclosures related to derivatives and other disclosures in the financial statements and other filings. The requirements of this final rule in relation to forms N-PORT and N-CEN must be adopted by June 1, 2018, while the amended disclosures must be adopted by August 1, 2017. Management is currently assessing the impact of this rule to the Funds’ financial statements and other filings.

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 75
 

Notes to financial statements (unaudited)

 

In October 2016, the Commission issued Final Rule Release No. 33-10233, Investment Company Liquidity Risk Management Programs. This final rule requires funds to establish a liquidity risk management program and enhances disclosures regarding funds liquidity. The requirements of this final rule must be adopted by December 1, 2018. Management is currently assessing the impact of this rule to the Funds’ financial statements and other filings.

 

In October 2016, the Commission issued Final Rule Release No. 33-10234, Investment Company Swing Pricing. This final rule permits certain funds to use swing pricing during periods of heavy redemptions and requires certain disclosures regarding the use of swing pricing in forms filed with the Commission. Management may elect to adopt the provisions of this final rule by November 19, 2018. Management is currently assessing the impact of this rule to the Funds’ financial statements and other filings.

 

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.

 

Certain portfolio investments that are measured at fair value using the NAV per share practical expedient are not categorized within the fair value hierarchy. These investments will be disclosed at their fair value to allow reconciliation back to the Statements of Assets and Liabilities.

 

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 NAV on the valuation date. These investments are categorized in Level 1 of the fair value hierarchy.

 

76 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Investments in unregistered limited partnerships: These investments are measured at fair value as of the valuation date using the NAV per share practical expedient and are not categorized within the fair value hierarchy.

 

Transfers between levels are recognized at the end of the reporting period. For the period ended November 30, 2016, there were no transfers between levels by the Funds.

 

The following table summarizes the market value of the Funds’ investments as of November 30, 2016, based on the inputs used to value them:

 

Fund  Level 1   Level 2   Level 3   Fair value
using practical
expedient(a		)   Total 
Lifecycle Retirement Income                         
Registered investment companies  $423,274,239   $—   $—   $—   $423,274,239 
TIAA-CREF Real Property Fund LP   —    —    —    2,410,325    2,410,325 
Total  $423,274,239   $—   $—   $2,410,325   $425,684,564 
Lifecycle 2010                         
Registered investment companies  $1,119,438,027   $—   $—   $—   $1,119,438,027 
TIAA-CREF Real Property Fund LP   —    —    —    6,382,952    6,382,952 
Total  $1,119,438,027   $—   $—   $6,382,952   $1,125,820,979 
Lifecycle 2015                         
Registered investment companies  $1,776,572,731   $—   $—   $—   $1,776,572,731 
TIAA-CREF Real Property Fund LP   —    —    —    10,129,937    10,129,937 
Total  $1,776,572,731   $—   $—   $10,129,937   $1,786,702,668 
Lifecycle 2020                         
Registered investment companies  $3,152,147,592   $—   $—   $—   $3,152,147,592 
TIAA-CREF Real Property Fund LP   —    —    —    17,960,856    17,960,856 
Total  $3,152,147,592   $—   $—   $17,960,856   $3,170,108,448 
Lifecycle 2025                         
Registered investment companies  $3,332,839,184   $—   $—   $—   $3,332,839,184 
TIAA-CREF Real Property Fund LP   —    —    —    18,984,558    18,984,558 
Total  $3,332,839,184   $—   $—   $18,984,558   $3,351,823,742 
Lifecycle 2030                         
Registered investment companies  $3,227,756,851   $—   $—   $—   $3,227,756,851 
TIAA-CREF Real Property Fund LP   —    —    —    18,393,791    18,393,791 
Total  $3,227,756,851   $—   $—   $18,393,791   $3,246,150,642 
Lifecycle 2035                         
Registered investment companies  $3,255,786,484   $—   $—   $—   $3,255,786,484 
TIAA-CREF Real Property Fund LP   —    —    —    18,549,467    18,549,467 
Total  $3,255,786,484   $—   $—   $18,549,467   $3,274,335,951 

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 77
 

Notes to financial statements (unaudited)

 

Fund  Level 1   Level 2   Level 3   Fair value
using practical
expedient(a		)   Total 
Lifecycle 2040                         
Registered investment companies  $4,066,287,104   $—   $—   $—   $4,066,287,104 
TIAA-CREF Real Property Fund LP   —    —    —    23,192,303    23,192,303 
Total  $4,066,287,104   $—   $—   $23,192,303   $4,089,479,407 
Lifecycle 2045                         
Registered investment companies  $1,823,903,581   $—   $—   $—   $1,823,903,581 
TIAA-CREF Real Property Fund LP   —    —    —    10,381,846    10,381,846 
Total  $1,823,903,581   $—   $—   $10,381,846   $1,834,285,427 
Lifecycle 2050                         
Registered investment companies  $1,128,925,947   $—   $—   $—   $1,128,925,947 
TIAA-CREF Real Property Fund LP   —    —    —    6,424,807    6,424,807 
Total  $1,128,925,947   $—   $—   $6,424,807   $1,135,350,754 
Lifecycle 2055                         
Registered investment companies  $259,819,798   $—   $—   $—   $259,819,798 
TIAA-CREF Real Property Fund LP   —    —    —    1,478,486    1,478,486 
Total  $259,819,798   $—   $—   $1,478,486   $261,298,284 
Lifecycle 2060                         
Registered investment companies  $18,573,487   $—   $—   $—   $18,573,487 
TIAA-CREF Real Property Fund LP   —    —    —    105,266    105,266 
Total  $18,573,487   $—   $—   $105,266   $18,678,753 
(a) In accordance with ASC 820, certain investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statements of assets and liabilities.

 

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, 2019. 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.

 

78 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

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 and the plan is suspended through September 30, 2017. 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 Advisor 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, 2017, unless changed with approval of the Board.

 

The Funds may purchase or sell investment securities in transactions with affiliated entities under procedures adopted by the Board, pursuant to the 1940 Act. These transactions are effected at market rates without incurring broker commissions. For the period ended November 30, 2016, the Funds engaged in the following security transactions with affiliated entities:

 

Fund   Purchases   Sales   Realized
gain (loss		)
Lifecycle 2060   $—   $253,992    $(375)

 

The following is the percentage of the Funds’ shares owned by TIAA and its registered separate account (collectively “TIAA Access”) as of November 30, 2016:

 

Fund  TIAA   TIAA Access 
Lifecycle Retirement Income   —%   9%
Lifecycle 2010   —    8 
Lifecycle 2015   —    9 
Lifecycle 2020   —    10 
Lifecycle 2025   —    9 
Lifecycle 2030   —    10 
Lifecycle 2035   —    10 
Lifecycle 2040   —    9 
Lifecycle 2045   —    11 
Lifecycle 2050   —    15 
Lifecycle 2055   —    4 
Lifecycle 2060   55    1 

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 79
 

Notes to financial statements (unaudited)

 

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 and the TIAA-CREF Real Property Fund LP. Information regarding transactions with affiliated companies is as follows:

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle Retirement Income Fund                          
TIAA-CREF Bond  $98,853,644   $12,883,322   $20,191,645   $(6,592)  $1,351,656   $90,263,153 
TIAA-CREF Bond Plus   43,498,213    12,141,137    990,012    (6,342)   718,055    53,831,083 
TIAA-CREF Emerging Markets Debt   3,956,958    4,006,209    258,167    (2,746)   125,602    7,583,796 
TIAA-CREF Emerging Markets Equity   8,665,114    1,563,214    1,771,315    (212,131)   —    9,094,267 
TIAA-CREF Enhanced International Equity Index   12,773,201    3,383,494    530,488    (25,070)   —    15,348,643 
TIAA-CREF Enhanced Large-Cap Growth Index   19,865,585    1,881,339    3,298,564    (54,081)   —    19,420,082 
TIAA-CREF Enhanced Large-Cap Value Index   19,059,727    2,227,213    2,919,159    (48,138)   —    20,039,520 
TIAA-CREF Global Natural Resources   2,401,177    182,629    2,459,750    (285,047)   —    372,136 
TIAA-CREF Growth & Income   17,561,975    6,802,289    1,221,951    (7,952)   119,787    24,079,925 
TIAA-CREF High-Yield   11,871,555    512,042    4,384,145    (291,234)   304,431    8,418,229 
TIAA-CREF Inflation-Linked Bond   39,458,747    4,334,550    1,621,706    (73)   —    42,285,941 
TIAA-CREF International Equity   15,123,136    2,413,734    4,018,611    (112,031)   —    13,162,050 
TIAA-CREF International Bond   —    7,781,049    69,257    (1,922)   —    7,476,019 
TIAA-CREF International Opportunities   11,809,637    1,907,267    1,150,090    (28,171)   —    12,503,287 
TIAA-CREF Large-Cap Growth
   21,142,253    2,494,279    1,907,987    (11,241)   —    21,867,370 
TIAA-CREF Large-Cap Value   20,329,472    2,046,650    1,973,752    (12,007)   —    22,630,482 
TIAA-CREF Mid-Cap Growth   927,828    138,428    804,310    38,745    —    272,665 
TIAA-CREF Mid-Cap Value   978,407    195,299    888,442    60,240    —    339,239 
TIAA-CREF Money Market   27,929    40    —    —    40    27,969 
TIAA-CREF Real Property Fund LP   —    2,389,230    —    —    —    2,410,325 
TIAA-CREF Short-Term Bond   39,504,069    4,394,150    1,371,831    (3,887)   386,742    42,392,978 
TIAA-CREF Small-Cap Equity   8,373,987    447,676    2,573,065    19,631    —    7,503,288 
TIAA-CREF Small/Mid-Cap Equity   —    4,130,497    42,778    1,338    —    4,362,117 
   $396,182,614   $78,255,737   $54,447,025   $(988,711)  $3,006,313   $425,684,564 

 

80 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle 2010 Fund                              
TIAA-CREF Bond  $265,160,510   $28,042,884   $56,142,485   $385,774   $3,577,091   $233,842,113 
TIAA-CREF Bond Plus   120,650,562    25,425,801    4,219,842    (662)   1,941,866    139,828,767 
TIAA-CREF Emerging Markets Debt   10,965,127    10,081,919    1,085,646    (10,581)   343,401    19,679,557 
TIAA-CREF Emerging Markets Equity   26,167,411    3,491,247    5,508,816    (637,966)   —    26,123,811 
TIAA-CREF Enhanced International Equity Index   39,090,264    8,007,431    2,111,014    (168,034)   —    44,182,779 
TIAA-CREF Enhanced Large-Cap Growth Index   61,164,659    2,150,365    10,194,143    704,836    —    56,066,380 
TIAA-CREF Enhanced Large-Cap Value Index   58,648,827    4,174,651    9,924,440    544,454    —    57,855,656 
TIAA-CREF Global Natural Resources   7,333,405    404,864    7,325,813    (759,094)   —    1,179,746 
TIAA-CREF Growth & Income   53,771,171    17,058,637    3,997,366    95,734    361,055    69,603,497 
TIAA-CREF High-Yield   32,949,334    892,542    13,087,425    (569,587)   827,679    21,913,130 
TIAA-CREF Inflation-Linked Bond   91,439,259    7,422,747    3,577,885    2,498    —    95,582,801 
TIAA-CREF International Equity   45,598,666    5,089,864    11,655,410    221,335    —    37,953,335 
TIAA-CREF International Bond   —    20,173,036    190,639    (5,114)   —    19,364,915 
TIAA-CREF International Opportunities   36,137,062    3,931,133    3,827,435    (195,045)   —    36,074,695 
TIAA-CREF Large-Cap Growth   64,568,080    4,982,358    6,916,310    232,162    —    63,065,426 
TIAA-CREF Large-Cap Value   62,178,355    3,476,955    6,958,999    558,454    —    65,268,973 
TIAA-CREF Mid-Cap Growth   3,018,440    224,385    2,495,853    211,165    —    787,401 
TIAA-CREF Mid-Cap Value   3,164,059    393,307    2,745,580    254,311    —    979,623 
TIAA-CREF Money Market   58,970    —    —    —    85    58,970 
TIAA-CREF Real Property Fund LP   —    6,325,923    —    —    —    6,382,952 
TIAA-CREF Short-Term Bond   91,537,031    8,256,789    3,704,150    (14,019)   889,435    95,795,408 
TIAA-CREF Small-Cap Equity   25,612,568    491,266    8,158,209    878,002    —    21,663,043 
TIAA-CREF Small/Mid-Cap Equity   —    11,915,164    142,736    4,851    —    12,568,001 
   $1,099,213,760   $172,413,268   $163,970,196  $1,733,474   $7,940,612   $1,125,820,979 

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 81
 

Notes to financial statements (unaudited)

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle 2015 Fund                              
TIAA-CREF Bond  $404,396,208   $42,986,649   $81,576,570   $1,062,954   $5,482,040   $360,752,901 
TIAA-CREF Bond Plus   191,900,432    35,980,474    8,188,245    157,470    3,068,138    216,617,866 
TIAA-CREF Emerging Markets Debt   17,475,792    15,343,786    1,949,530    63,286    543,844    30,466,577 
TIAA-CREF Emerging Markets Equity   45,799,688    5,109,628    8,337,833    (105,828)   —    46,027,696 
TIAA-CREF Enhanced International Equity Index   69,211,377    13,218,810    3,059,494    115,363    —    77,973,108 
TIAA-CREF Enhanced Large-Cap Growth Index   108,836,814    3,818,654    18,828,887    3,452,630    —    99,073,400 
TIAA-CREF Enhanced Large-Cap Value Index   104,471,225    6,622,868    17,596,833    3,412,058    —    102,324,709 
TIAA-CREF Global Natural Resources   13,002,310    396,003    12,491,969    (2,788,352)   —    2,332,864 
TIAA-CREF Growth & Income   95,225,675    29,561,614    6,670,901    1,741,015    640,390    123,026,897 
TIAA-CREF High-Yield   52,373,829    1,711,499    22,041,255    (540,258)   1,309,970    33,896,290 
TIAA-CREF Inflation-Linked Bond   110,635,787    9,426,508    4,350,862    142,783    —    116,064,623 
TIAA-CREF International Bond   —    31,402,335    557,956    (3,041)   —    29,888,202 
TIAA-CREF International Equity   79,456,592    8,454,519    19,016,873    1,016,565    —    67,005,713 
TIAA-CREF International Opportunities   63,893,225    6,552,026    6,308,622    245,031    —    63,867,282 
TIAA-CREF Large-Cap Growth   114,205,838    7,618,972    11,044,303    3,392,643    —    111,549,220 
TIAA-CREF Large-Cap Value   110,112,680    7,745,621    14,088,065    3,292,954    —    115,459,928 
TIAA-CREF Mid-Cap Growth   5,635,748    180,076    4,504,900    (97,475)   —    1,392,367 
TIAA-CREF Mid-Cap Value   5,936,923    567,792    5,078,860    382,843    —    1,732,193 
TIAA-CREF Money Market   143,165    —    —    —    207    143,165 
TIAA-CREF Real Property Fund LP   —    10,038,988    —    —    —    10,129,937 
TIAA-CREF Short-Term Bond   110,751,814    10,120,356    4,133,194    13,159    1,080,380    116,378,461 
TIAA-CREF Small-Cap Equity   45,343,588    928,090    14,553,437    1,532,964    —    38,321,684 
TIAA-CREF Small/Mid-Cap Equity   —    21,189,088    310,321    26,331    —    22,277,585 
   $1,748,808,710   $268,974,356   $264,688,910   $16,515,095   $12,124,969   $1,786,702,668 

 

82 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle 2020 Fund                              
TIAA-CREF Bond  $587,689,841   $85,507,349   $83,137,460   $1,303,356   $8,296,830   $581,053,154 
TIAA-CREF Bond Plus   327,980,305    40,223,740    9,626,446    215,252    5,206,948    353,828,404 
TIAA-CREF Emerging Markets Debt   29,796,731    23,126,142    2,724,871    127,813    933,008    49,641,924 
TIAA-CREF Emerging Markets Equity   88,691,511    12,362,469    14,386,205    743,066    —    93,364,237 
TIAA-CREF Enhanced International Equity Index   136,317,741    28,099,355    3,187,039    165,859    —    158,401,634 
TIAA-CREF Enhanced Large-Cap Growth Index   215,411,553    10,502,110    34,305,059    7,069,591    —    202,077,674 
TIAA-CREF Enhanced Large-Cap Value Index   206,828,175    15,058,144    31,100,854    6,852,543    —    208,518,511 
TIAA-CREF Global Natural Resources   25,561,070    976,932    24,328,190    (4,273,825)   —    5,176,307 
TIAA-CREF Growth & Income   187,324,563    62,531,960    9,066,427    2,468,612    1,277,634    250,650,388 
TIAA-CREF High-Yield   89,540,623    3,281,665    40,588,311    (590,952)   2,239,228    55,442,127 
TIAA-CREF Inflation-Linked Bond   129,580,963    16,762,591    3,922,228    141,504    —    142,766,215 
TIAA-CREF International Bond   —    50,516,139    846,066    (3,067)   —    48,139,439 
TIAA-CREF International Equity   153,837,856    18,142,273    31,194,726    2,616,904    —    137,006,544 
TIAA-CREF International Opportunities   126,057,036    14,368,746    9,791,748    585,760    —    130,116,640 
TIAA-CREF Large-Cap Growth   224,869,274    17,858,343    16,836,521    5,602,943    —    227,381,292 
TIAA-CREF Large-Cap Value   216,422,866    13,854,886    18,278,537    5,123,367    —    235,450,736 
TIAA-CREF Mid-Cap Growth   11,780,960    433,443    9,546,826    (255,218)   —    2,835,162 
TIAA-CREF Mid-Cap Value   12,293,336    1,209,444    10,615,500    900,856    —    3,527,079 
TIAA-CREF Money Market   191,615    —    —    —    277    191,615 
TIAA-CREF Real Property Fund LP   —    17,802,119    —    —    —    17,960,856 
TIAA-CREF Short-Term Bond   129,717,610    17,026,873    3,155,641    16,857    1,296,619    143,126,493 
TIAA-CREF Small-Cap Equity   89,216,033    2,641,805    27,025,601    3,320,507    —    78,074,413 
TIAA-CREF Small/Mid-Cap Equity   —    42,855,480    296,942    24,259    —    45,377,604 
   $2,989,109,662   $495,142,008   $383,961,198   $32,155,987   $19,250,544   $3,170,108,448 

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 83
 

Notes to financial statements (unaudited)

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle 2025 Fund                              
TIAA-CREF Bond  $485,791,745   $92,811,746   $33,250,082   $566,264   $7,115,939   $536,240,165 
TIAA-CREF Bond Plus   340,100,452    31,066,100    33,424,267    834,440    5,260,280    333,733,964 
TIAA-CREF Emerging Markets Debt   30,953,848    18,990,056    2,963,526    146,674    962,535    46,621,519 
TIAA-CREF Emerging Markets Equity   103,594,328    14,999,530    13,818,035    944,960    —    112,499,059 
TIAA-CREF Enhanced International Equity Index   161,459,364    34,716,160    1,546,519    121,203    —    191,236,745 
TIAA-CREF Enhanced Large-Cap Growth Index   255,718,567    15,361,464    39,062,747    8,659,028    —    244,510,285 
TIAA-CREF Enhanced Large-Cap Value Index   245,813,214    19,521,614    34,322,256    7,873,578    —    252,247,622 
TIAA-CREF Global Natural Resources   30,356,346    1,025,065    28,226,536    (4,450,154)   —    6,779,488 
TIAA-CREF Growth & Income   221,616,622    76,889,192    7,238,802    2,166,836    1,522,938    303,009,781 
TIAA-CREF High-Yield   92,840,148    3,030,449    46,803,968    (2,202,611)   2,280,582    52,390,417 
TIAA-CREF Inflation-Linked Bond   72,681,300    12,981,404    1,407,348    44,782    —    84,394,783 
TIAA-CREF International Bond   —    47,113,804    1,231,688    (895)   —    44,462,476 
TIAA-CREF International Equity   179,452,421    22,329,034    31,474,742    3,715,328    —    165,560,168 
TIAA-CREF International Opportunities   149,104,951    18,159,694    8,899,657    582,368    —    157,600,350 
TIAA-CREF Large-Cap Growth   266,991,118    24,134,737    17,779,091    6,283,856    —    274,983,848 
TIAA-CREF Large-Cap Value   256,113,199    19,233,659    18,937,801    5,688,318    —    284,513,190 
TIAA-CREF Mid-Cap Growth   14,587,395    264,678    11,635,225    (335,735)   —    3,444,082 
TIAA-CREF Mid-Cap Value   15,232,992    1,549,191    13,302,784    1,337,528    —    4,262,766 
TIAA-CREF Money Market   187,767    —    —    —    271    187,767 
TIAA-CREF Real Property Fund LP   —    18,818,276    —    —    —    18,984,558 
TIAA-CREF Short-Term Bond   72,742,135    13,506,642    1,235,165    6,497    744,642    84,728,670 
TIAA-CREF Small-Cap Equity   105,557,243    3,041,837    30,000,949    4,409,839    —    94,428,154 
TIAA-CREF Small/Mid-Cap Equity   —    51,813,209    200,261    15,269    —    55,003,885 
   $3,100,895,155   $541,357,541   $376,761,449   $36,407,373   $17,887,187   $3,351,823,742 

 

84 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle 2030 Fund                              
TIAA-CREF Bond  $372,704,851   $94,779,076   $13,486,694   $328,190   $5,619,445   $445,925,131 
TIAA-CREF Bond Plus   302,714,825    29,472,770    47,219,091    1,125,885    4,630,895    281,799,830 
TIAA-CREF Emerging Markets Debt   29,703,298    12,722,208    2,849,662    126,043    913,890    39,467,566 
TIAA-CREF Emerging Markets Equity   110,902,295    16,505,367    13,438,350    970,099    —    122,219,670 
TIAA-CREF Enhanced International Equity Index   174,378,746    38,477,474    1,157,496    89,041    —    207,966,684 
TIAA-CREF Enhanced Large-Cap Growth Index   278,299,091    14,609,937    40,349,627    9,476,532    —    266,126,761 
TIAA-CREF Enhanced Large-Cap Value Index   267,047,746    20,828,355    36,193,915    8,857,624    —    274,747,540 
TIAA-CREF Global Natural Resources   32,692,412    1,263,605    30,133,205    (4,657,442)   —    7,832,142 
TIAA-CREF Growth & Income   239,568,748    83,926,634    5,948,356    1,923,521    1,651,239    330,260,845 
TIAA-CREF High-Yield   89,336,192    2,684,371    50,518,247    (2,990,735)   2,147,920    44,707,154 
TIAA-CREF Inflation-Linked Bond   10,546,037    7,366,918    187,762    8,510    —    17,679,938 
TIAA-CREF International Bond   —    38,968,821    970,939    (6,854)   —    36,816,484 
TIAA-CREF International Equity   191,954,632    24,131,677    30,228,578    4,775,879    —    180,591,989 
TIAA-CREF International Opportunities   161,407,803    19,851,004    8,241,635    506,841    —    172,075,579 
TIAA-CREF Large-Cap Growth   287,584,318    24,716,062    14,345,366    5,562,710    —    299,690,970 
TIAA-CREF Large-Cap Value   276,844,555    18,899,675    15,657,391    5,221,415    —    310,505,178 
TIAA-CREF Mid-Cap Growth   16,347,833    255,733    13,119,640    (306,607)   —    3,742,658 
TIAA-CREF Mid-Cap Value   17,012,011    1,830,102    15,054,996    1,780,140    —    4,652,498 
TIAA-CREF Money Market   180,589    —    —    —    261    180,589 
TIAA-CREF Real Property Fund LP   —    18,233,165    —    —    —    18,393,791 
TIAA-CREF Short-Term Bond   10,556,405    7,407,711    177,204    1,189    131,348    17,712,319 
TIAA-CREF Small-Cap Equity   114,168,157    2,766,748    31,017,587    5,446,858    —    103,077,801 
TIAA-CREF Small/Mid-Cap Equity   —    56,563,802    269,656    20,549    —    59,977,525 
   $2,983,950,544   $536,261,215   $370,565,397   $38,259,388   $15,094,998   $3,246,150,642 

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 85
 

Notes to financial statements (unaudited)

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle 2035 Fund                              
TIAA-CREF Bond  $235,271,603   $111,027,401   $11,021,820   $198,808   $3,789,653   $328,738,456 
TIAA-CREF Bond Plus   224,704,985    27,472,539    39,656,232    1,222,015    3,459,245    210,134,488 
TIAA-CREF Emerging Markets Debt   29,766,147    4,525,123    4,401,935    203,601    889,261    30,216,649 
TIAA-CREF Emerging Markets Equity   122,389,038    17,625,284    12,308,521    966,470    —    136,802,273 
TIAA-CREF Enhanced International Equity Index    194,042,101    43,538,676    657,029    50,864    —    232,679,276 
TIAA-CREF Enhanced Large-Cap Growth Index   309,556,439    18,699,964    44,879,879    11,007,560    —    298,407,286 
TIAA-CREF Enhanced Large-Cap Value Index   297,853,067    24,569,613    40,224,485    10,073,779    —    307,892,818 
TIAA-CREF Global Natural Resources   36,507,128    1,510,203    33,325,569    (4,999,432)   —    9,269,777 
TIAA-CREF Growth & Income   266,457,903    92,313,684    3,028,130    1,011,360    1,843,805    369,825,816 
TIAA-CREF High-Yield   89,561,745    3,261,996    61,134,834    (3,803,777)   2,064,846    34,915,521 
TIAA-CREF International Bond   —    28,447,515    999,026    (5,654)   —    26,587,809 
TIAA-CREF International Equity   211,630,120    25,865,732    29,201,473    5,342,839    —    202,309,072 
TIAA-CREF International Opportunities   179,768,931    21,998,109    7,928,825    536,040    —    192,766,070 
TIAA-CREF Large-Cap Growth   320,878,807    29,020,293    16,046,147    6,337,829    —    335,671,896 
TIAA-CREF Large-Cap Value   307,952,117    20,643,237    14,937,059    5,356,485    —    347,438,086 
TIAA-CREF Mid-Cap Growth   18,663,797    417,080    15,183,982    (346,876)   —    4,195,682 
TIAA-CREF Mid-Cap Value   19,397,835    1,949,312    17,103,257    2,065,322    —    5,214,048 
TIAA-CREF Money Market   186,540    —    —    —    270    186,540 
TIAA-CREF Real Property Fund LP   —    18,388,031    —    —    —    18,549,467 
TIAA-CREF Small-Cap Equity   127,083,487    3,170,910    34,078,328    6,890,823    —    115,280,595 
TIAA-CREF Small/Mid-Cap Equity   —    63,410,626    266,242    20,065    —    67,254,326 
   $2,991,671,790   $557,855,328   $386,382,773   $42,128,121   $12,047,080   $3,274,335,951 

 

86 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle 2040 Fund                              
TIAA-CREF Bond  $53,464,563   $188,240,335   $7,415,481   $93,226   $1,538,401   $228,177,113 
TIAA-CREF Bond Plus   225,442,975    48,628,433    109,809,676    2,145,271    3,324,592    163,065,795 
TIAA-CREF Emerging Markets Debt   37,534,954    3,773,204    18,593,623    694,789    1,075,812    23,748,271 
TIAA-CREF Emerging Markets Equity   168,424,155    23,956,047    17,121,206    1,298,218    —    187,766,881 
TIAA-CREF Enhanced International Equity Index   268,694,767    56,956,125    927,025    72,847    —    318,867,906 
TIAA-CREF Enhanced Large-Cap Growth Index   430,334,531    22,653,878    63,878,906    16,277,053    —    409,865,087 
TIAA-CREF Enhanced Large-Cap Value Index   412,964,895    30,026,050    55,477,265    14,997,630    —    422,883,593 
TIAA-CREF Global Natural Resources   50,410,054    1,958,067    45,576,637    (7,068,354)   —    13,174,363 
TIAA-CREF Growth & Income   369,005,125    123,035,043    3,421,709    1,161,152    2,540,405    507,957,390 
TIAA-CREF High-Yield   112,821,648    3,039,177    91,196,701    (6,132,676)   2,453,641    28,717,009 
TIAA-CREF International Bond   —    19,445,570    1,039,105    (17,223)   —    17,807,866 
TIAA-CREF International Equity   290,671,577    32,287,315    37,196,032    7,386,325    —    277,383,542 
TIAA-CREF International Opportunities   248,993,691    28,304,354    11,058,061    774,532    —    264,667,683 
TIAA-CREF Large-Cap Growth   444,206,138    36,413,214    22,056,637    9,170,603    —    461,049,104 
TIAA-CREF Large-Cap Value   426,765,737    25,055,546    21,006,938    7,655,287    —    477,185,505 
TIAA-CREF Mid-Cap Growth   26,411,918    322,947    21,408,685    (591,731)   —    5,757,731 
TIAA-CREF Mid-Cap Value   27,522,966    2,434,149    24,153,211    2,944,244    —    7,155,002 
TIAA-CREF Money Market   273,445    —    —    —    395    273,445 
TIAA-CREF Real Property Fund LP   —    22,990,261    —    —    —    23,192,303 
TIAA-CREF Small-Cap Equity   175,766,614    4,418,048    47,979,427    10,395,741    —    158,451,611 
TIAA-CREF Small/Mid-Cap Equity   —    87,184,850    484,270    35,408    —    92,332,207 
   $3,769,709,753   $761,122,613   $599,800,595   $61,292,342   $10,933,246   $4,089,479,407 

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 87
 

Notes to financial statements (unaudited)

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle 2045 Fund                              
TIAA-CREF Bond  $—   $77,330,979   $3,028,910   $(88,366)  $292,430   $72,137,982 
TIAA-CREF Bond Plus   79,570,209    22,727,775    46,970,362    83,965    1,195,131    54,962,687 
TIAA-CREF Emerging Markets Debt   15,998,547    1,779,527    10,086,268    192,888    460,282    8,223,180 
TIAA-CREF Emerging Markets Equity   73,682,604    14,495,845    6,423,199    (1,130,891)   —    87,184,651 
TIAA-CREF Enhanced International Equity Index   117,643,945    34,447,801    981,248    (207,853)   —    148,419,395 
TIAA-CREF Enhanced Large-Cap Growth Index   188,298,804    19,278,274    26,844,566    (1,028,215)   —    190,040,434 
TIAA-CREF Enhanced Large-Cap Value Index   180,692,013    22,929,598    23,600,799    (1,931,762)   —    196,071,112 
TIAA-CREF Global Natural Resources   22,134,982    1,079,044    19,926,339    (2,310,596)   —    6,184,718 
TIAA-CREF Growth & Income   160,754,969    67,801,685    1,840,765    (123,559)   1,138,775    235,527,195 
TIAA-CREF High-Yield   47,983,538    1,848,209    41,302,358    133,270    1,044,074    10,284,093 
TIAA-CREF International Bond   —    6,168,758    598,830    (15,909)   —    5,381,738 
TIAA-CREF International Equity   126,842,370    20,793,433    14,743,739    (1,277,121)   —    129,100,175 
TIAA-CREF International Opportunities   108,788,016    19,242,305    4,457,682    (387,974)   —    122,870,581 
TIAA-CREF Large-Cap Growth   193,484,333    28,637,945    9,419,055    (263,706)   —    213,774,199 
TIAA-CREF Large-Cap Value   186,096,470    20,951,152    6,943,194    (328,661)   —    221,203,522 
TIAA-CREF Mid-Cap Growth   11,627,244    486,525    9,641,651    (275,209)   —    2,660,510 
TIAA-CREF Mid-Cap Value   12,061,303    1,920,985    11,290,063    481,192    —    3,306,048 
TIAA-CREF Money Market   81,040    —    —    —    117    81,040 
TIAA-CREF Real Property Fund LP   —    10,292,900    —    —    —    10,381,846 
TIAA-CREF Small-Cap Equity   76,807,100    5,084,571    20,359,563    (1,431,294)   —    73,429,113 
TIAA-CREF Small/Mid-Cap Equity   —    40,642,139    170,472    2,576    —    43,061,208 
   $1,602,547,487   $417,939,450   $258,629,063   $(9,907,225)  $4,130,809   $1,834,285,427 

 

88 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle 2050 Fund                              
TIAA-CREF Bond  $—   $41,212,587   $1,972,102   $(52,475)  $154,734   $38,094,486 
TIAA-CREF Bond Plus   36,177,244    13,091,997    20,389,957    40,558    568,961    28,601,933 
TIAA-CREF Emerging Markets Debt   9,711,323    1,051,034    6,619,552    143,907    278,441    4,486,537 
TIAA-CREF Emerging Markets Equity   45,295,680    9,601,703    3,553,566    (631,268)   —    54,647,585 
TIAA-CREF Enhanced International Equity Index   72,413,556    23,005,303    577,373    (122,511)   —    93,151,994 
TIAA-CREF Enhanced Large-Cap Growth Index   115,835,393    13,613,019    16,009,812    (720,149)   —    119,188,887 
TIAA-CREF Enhanced Large-Cap Value Index   111,116,520    15,955,718    14,069,270    (1,212,841)   —    122,970,736 
TIAA-CREF Global Natural Resources   13,632,731    837,896    12,369,789    (1,428,283)   —    3,896,600 
TIAA-CREF Growth & Income   98,811,530    44,304,775    857,233    (62,300)   704,629    147,716,690 
TIAA-CREF High-Yield   29,137,142    1,337,960    25,823,362    57,610    630,117    5,716,786 
TIAA-CREF International Bond   —    3,267,943    493,529    (11,015)   —    2,678,461 
TIAA-CREF International Equity   78,011,122    14,438,831    8,986,627    (816,360)   —    81,070,350 
TIAA-CREF International Opportunities   66,961,781    12,998,414    2,481,942    (216,309)   —    77,042,630 
TIAA-CREF Large-Cap Growth   118,939,673    19,582,127    5,087,567    (170,128)   —    134,074,240 
TIAA-CREF Large-Cap Value   114,404,232    15,033,124    3,808,113    (189,370)   —    138,733,450 
TIAA-CREF Mid-Cap Growth   7,143,514    394,085    5,986,019    (183,384)   —    1,666,802 
TIAA-CREF Mid-Cap Value   7,432,466    1,279,551    7,019,182    269,938    —    2,073,205 
TIAA-CREF Money Market   41,908    28    —    —    61    41,936 
TIAA-CREF Real Property Fund LP   —    6,370,277    —    —    —    6,424,807 
TIAA-CREF Small-Cap Equity   47,224,015    3,598,480    12,156,881    (892,360)   —    46,052,347 
TIAA-CREF Small/Mid-Cap Equity   —    25,476,229    76,606    1,384    —    27,020,292 
   $972,289,830   $266,451,081   $148,338,482   $(6,195,356)  $2,336,943   $1,135,350,754 

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 89
 

Notes to financial statements (unaudited)

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle 2055 Fund                              
TIAA-CREF Bond  $—   $7,997,395   $522,045   $(13,497)  $29,370   $7,256,686 
TIAA-CREF Bond Plus   5,058,455    3,029,788    2,670,562    (15,321)   89,521    5,338,150 
TIAA-CREF Emerging Markets Debt   2,041,478    315,736    1,544,114    44,907    59,568    888,380 
TIAA-CREF Emerging Markets Equity   9,647,673    3,102,784    687,312    (108,505)   —    12,742,805 
TIAA-CREF Enhanced International Equity Index   15,450,328    6,713,174    41,240    (6,855)   —    21,729,351 
TIAA-CREF Enhanced Large-Cap Growth Index   24,624,529    4,994,345    3,117,768    (165,485)   —    27,780,100 
TIAA-CREF Enhanced Large-Cap Value Index   23,616,756    5,553,928    2,749,848    (206,246)   —    28,672,807 
TIAA-CREF Global Natural Resources   2,908,887    314,659    2,723,079    (143,254)   —    900,439 
TIAA-CREF Growth & Income   21,019,823    12,210,598    23,699    (1,175)   154,609    34,443,954 
TIAA-CREF High-Yield   6,124,291    553,671    5,745,202    73,561    135,075    1,160,704 
TIAA-CREF International Bond   —    632,506    152,555    (3,405)   —    462,626 
TIAA-CREF International Equity   16,606,593    4,351,769    1,499,359    (129,354)   —    18,909,541 
TIAA-CREF International Opportunities   14,272,832    4,355,676    518,791    (44,877)   —    18,001,091 
TIAA-CREF Large-Cap Growth   25,241,857    6,808,300    911,121    (39,153)   —    31,261,929 
TIAA-CREF Large-Cap Value   24,296,397    5,662,667    581,920    (15,522)   —    32,348,258 
TIAA-CREF Mid-Cap Growth   1,527,225    173,622    1,336,552    (62,110)   —    388,616 
TIAA-CREF Mid-Cap Value   1,579,711    390,359    1,571,526    27,046    —    483,350 
TIAA-CREF Money Market   6,600    10    —    —    9    6,610 
TIAA-CREF Real Property Fund LP   —    1,466,373    —    —    —    1,478,486 
TIAA-CREF Small-Cap Equity   10,031,303    1,533,724    2,502,432    (189,216)   —    10,731,001 
TIAA-CREF Small/Mid-Cap Equity   —    5,952,737    16,093    320    —    6,313,400 
   $204,054,738   $76,113,821   $28,915,218   $(998,141)  $468,152   $261,298,284 

 

90 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle 2060 Fund                              
TIAA-CREF Bond  $—   $448,334   $26,942   $(722)  $1,578   $409,542 
TIAA-CREF Bond Plus   148,565    250,067    101,057    (707)   3,474    291,576 
TIAA-CREF Emerging Markets Debt   121,970    49,832    123,115    3,312    3,571    53,476 
TIAA-CREF Emerging Markets Equity   583,852    410,720    113,309    (21,734)   —    919,648 
TIAA-CREF Enhanced International Equity Index   933,399    767,416    107,413    (18,055)   —    1,567,835 
TIAA-CREF Enhanced Large-Cap Growth Index   1,502,115    816,312    384,984    (27,402)   —    2,013,716 
TIAA-CREF Enhanced Large-Cap Value Index   1,441,899    834,451    347,144    (49,931)   —    2,077,983 
TIAA-CREF Global Natural Resources   175,349    63,517    199,630    (6,928)   —    65,113 
TIAA-CREF Growth & Income   1,283,470    1,246,706    110,916    (9,206)   9,544    2,500,604 
TIAA-CREF High-Yield   366,398    105,827    414,360    6,886    8,247    71,853 
TIAA-CREF International Bond   —    33,702    10,388    (202)   —    22,464 
TIAA-CREF International Equity   1,003,795    625,655    224,047    (8,253)   —    1,368,486 
TIAA-CREF International Opportunities   862,540    568,657    123,673    (4,332)   —    1,300,793 
TIAA-CREF Large-Cap Growth   1,539,440    947,264    222,569    (6,990)   —    2,266,699 
TIAA-CREF Large-Cap Value   1,481,557    880,106    209,621    (16,002)   —    2,349,061 
TIAA-CREF Mid-Cap Growth   93,383    34,517    100,942    (7,248)   —    28,243 
TIAA-CREF Mid-Cap Value   96,722    50,713    117,734    (2,056)   —    35,115 
TIAA-CREF Money Market   100    —    —    —    —    100 
TIAA-CREF Real Property Fund LP   —    104,491    —    —    —    105,266 
TIAA-CREF Small-Cap Equity   611,656    287,746    230,684    (25,064)   —    777,718 
TIAA-CREF Small/Mid-Cap Equity   —    428,116    939    1    —    453,462 
   $12,246,210   $8,954,149   $3,169,467   $(194,633)  $26,414   $18,678,753 

 

Note 4—investments

 

TIAA-CREF Real Property Fund LP (“RPF”): The Funds invest in the RPF, which is an affiliated real estate limited partnership. The RPF is an unregistered open-end fund that intends to invest in direct real estate holdings and may invest a portion of its assets in REIT securities, mortgage related securitization and money market instruments in accordance with exemptive relief received from the Commission. The Funds are not liable for the debts of the RPF beyond the amounts the Funds have contributed. The Funds can redeem from RPF daily subject to certain approvals. Investments in the RPF are illiquid and the Funds may be unable to dispose of such investments at opportune times.

 

TIAA-CREF Lifecycle Funds  ■  2016 Semiannual Report 91
 

Notes to financial statements (unaudited)

 

Net unrealized appreciation (depreciation): At November 30, 2016, 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  $406,159,783   $21,511,630    $(1,986,849)      $19,524,781 
Lifecycle 2010   1,028,387,378    100,053,019    (2,619,418)   97,433,601 
Lifecycle 2015   1,789,851,805    52,996,541    (56,145,678)   (3,149,137)
Lifecycle 2020   3,143,676,437    114,538,413    (88,106,402)   26,432,011 
Lifecycle 2025   3,292,305,607    149,604,659    (90,086,524)   59,518,135 
Lifecycle 2030   3,156,477,170    176,458,817    (86,785,345)   89,673,472 
Lifecycle 2035   3,150,657,891    208,359,455    (84,681,395)   123,678,060 
Lifecycle 2040   3,893,244,689    303,886,951    (107,652,233)   196,234,718 
Lifecycle 2045   1,705,680,525    143,874,322    (15,269,420)   128,604,902 
Lifecycle 2050   1,062,826,952    81,664,367    (9,140,565)   72,523,802 
Lifecycle 2055   252,691,298    10,384,152    (1,777,166)   8,606,986 
Lifecycle 2060   18,985,556    (127,666)   (179,137)   (306,803)

 

Purchases and sales: Purchases and sales of securities (other than short-term instruments) for all of the Funds for the period ended November 30, 2016 were as follows:

 

Fund  Purchases   Sales 
Lifecycle Retirement Income  $78,255,737   $54,447,025 
Lifecycle 2010   172,413,268    163,970,196 
Lifecycle 2015   268,974,356    264,688,910 
Lifecycle 2020   495,142,008    383,961,198 
Lifecycle 2025   541,357,541    376,761,449 
Lifecycle 2030   536,261,215    370,565,397 
Lifecycle 2035   557,855,328    386,382,773 
Lifecycle 2040   761,122,613    599,800,595 
Lifecycle 2045   417,939,450    258,629,063 
Lifecycle 2050   266,451,081    148,338,482 
Lifecycle 2055   76,113,821    28,915,218 
Lifecycle 2060   12,502,214    6,723,423 

 

92 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

concluded

 

Note 5—distributions to shareholders and other tax items

 

The tax character of distributions paid to shareholders during the year ended May 31, 2016 was as follows:

 

Fund  Ordinary
income		   Long-term
capital gains		   Total 
Lifecycle Retirement Income  $8,435,298   $7,023,989   $15,459,287 
Lifecycle 2010   26,555,702    24,732,599    51,288,301 
Lifecycle 2015   38,711,408    91,652,566    130,363,974 
Lifecycle 2020   61,528,039    138,381,666    199,909,705 
Lifecycle 2025   61,980,200    148,141,962    210,122,162 
Lifecycle 2030   59,037,253    150,786,615    209,823,868 
Lifecycle 2035   55,022,919    164,951,289    219,974,208 
Lifecycle 2040   64,955,423    228,844,376    293,799,799 
Lifecycle 2045   26,239,106    48,454,666    74,693,772 
Lifecycle 2050   15,350,067    27,876,548    43,226,615 
Lifecycle 2055   2,848,870    4,434,364    7,283,234 
Lifecycle 2060   227,801    436,531    664,332 

 

The tax character of the fiscal year 2017 distributions will be determined at the end of the fiscal year.

 

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. The current facility was entered into on June 21, 2016 expiring on June 20, 2017, replacing the previous facility, which expired June 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 period ended November 30, 2016, 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  ■  2016 Semiannual Report 93
 

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 marks of MSCI or its affiliates and have been licensed for use for certain purposes by Teachers Advisors, LLC. 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

 

94 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Funds
 

concluded

 

the determination or calculation of the equation by or the consideration into which 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  ■  2016 Semiannual Report 95
 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

How to reach us

 

TIAA website

 

TIAA.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.org, or call 800-842-2252 for the Institutional, Advisor, 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 Global Asset Management provides investment advice and portfolio management services through TIAA and over a dozen affiliated registered investment advisers. TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, members FINRA and SIPC, distribute securities products.

 

 

©2017 Teachers Insurance and Annuity Association of America—College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017-3206

 
  730 Third Avenue
New York, NY 10017-3206		 PRESORTED STANDARD
U.S. POSTAGE
PAID
TIAA

 

 

 

Printed on paper containing recycled fiber

 

We’re fond of paper…in its original form.

Switch to eDelivery at

TIAA.org/eDelivery

C37165 A11014 (1/17)
 
  730 Third Avenue
New York, NY 10017-3206		  

 

 

 

Printed on paper containing recycled fiber
C37165 A11014 (1/17)
 
  730 Third Avenue
New York, NY 10017-3206		  

 

C37165 A11014 (1/17)
 

 

 

2016 Semiannual Report

 

November 30, 2016

 

TIAA-CREF
Lifecycle Index Funds

 

of the TIAA-CREF Funds

 

      
         
         
  Contents      
         
  Understanding your Lifecycle Index Funds report     2
  Information for investors     3
  About the funds’ composite benchmarks     4
  Important information about expenses     5
  Investment results of the Lifecycle Index Funds     12
  Fund performance      
  Lifecycle Index Retirement Income Fund     14
  Lifecycle Index 2010 Fund     16
  Lifecycle Index 2015 Fund     18
  Lifecycle Index 2020 Fund     20
  Lifecycle Index 2025 Fund     22
  Lifecycle Index 2030 Fund     24
  Lifecycle Index 2035 Fund     26
  Lifecycle Index 2040 Fund     27
  Lifecycle Index 2045 Fund     28
  Lifecycle Index 2050 Fund     29
  Lifecycle Index 2055 Fund     30
  Lifecycle Index 2060 Fund     31
  Portfolios of investments     32
  Financial statements (unaudited)      
  Statements of assets and liabilities     44
  Statements of operations     48
  Statements of changes in net assets     52
  Financial highlights     60
  Notes to financial statements     73
  Additional information about index providers     84
  How to reach us     Inside back cover
 

Understanding your Lifecycle Index Funds report

 

This semiannual 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 six months ended November 30, 2016. The report contains three main sections:

•The fund performance section compares each fund’s investment returns with those of its composite benchmark and broad market indexes.
• The portfolios of investments list the underlying TIAA-CREF Funds in which each fund had investments as of November 30, 2016.
• 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.org, or call 800-842-2252. We urge you to read the prospectus carefully before investing.

 

2 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Information for investors

 

Portfolio listings

 

The complete portfolios of investments for the TIAA-CREF Lifecycle Index Funds begin on page 32 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.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.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

 

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, 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, LLC (formerly known as 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  ■  2016 Semiannual 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, 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 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 Bloomberg 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 Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index (short-term fixed income) measures the performance of U.S. Treasury and agency securities and corporate bonds with 1- to 3-year maturities.
• The Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year Index* measures the performance of fixed-income securities with maturities between 1 and 10 years that are adjusted for inflation, as measured by the Consumer Price Index for All Urban Consumers (CPI-U).
   
* On January 1, 2016, the Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year Index replaced the Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L) within the funds’ composite benchmarks.

 

Russell 3000 is a trademark and service mark of Russell Investments. TIAA 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 2016 Semiannual 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 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 (June 1, 2016–November 30, 2016).

 

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 may 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  ■  2016 Semiannual Report 5
 

Important information about expenses

 

Expense examples

 

Six months ended November 30, 2016

 

Lifecycle Index Funds
Institutional Class		  Beginning
account
value
(6/1/16		 )  Ending
account
value
(11/30/16		)  Expenses paid
during period
(6/1/16–11/30/16		*
)		  Effective
expenses paid
during period
(6/1/16–11/30/16		†
)
Retirement Income Fund actual return  $1,000.00   $1,017.62   $0.05   $0.61 
5% annual hypothetical return  1,000.00   1,025.02   0.05   0.61 
2010 Fund actual return  1,000.00   1,019.62   0.05   0.56 
5% annual hypothetical return  1,000.00   1,025.02   0.05   0.56 
2015 Fund actual return  1,000.00   1,022.54   0.05   0.61 
5% annual hypothetical return  1,000.00   1,025.02   0.05   0.61 
2020 Fund actual return  1,000.00   1,025.85   0.10   0.61 
5% annual hypothetical return  1,000.00   1,024.97   0.10   0.61 
2025 Fund actual return  1,000.00   1,031.04   0.10   0.56 
5% annual hypothetical return  1,000.00   1,024.97   0.10   0.56 
2030 Fund actual return  1,000.00   1,035.26   0.15   0.56 
5% annual hypothetical return  1,000.00   1,024.92   0.15   0.56 
2035 Fund actual return  1,000.00   1,039.98   0.20   0.61 
5% annual hypothetical return  1,000.00   1,024.87   0.20   0.61 
2040 Fund actual return  1,000.00   1,045.09   0.21   0.56 
5% annual hypothetical return  1,000.00   1,024.87   0.20   0.56 
2045 Fund actual return  1,000.00   1,046.50   0.21   0.56 
5% annual hypothetical return  1,000.00   1,024.87   0.20   0.56 
2050 Fund actual return  1,000.00   1,047.74   0.21   0.56 
5% annual hypothetical return  1,000.00   1,024.87   0.20   0.56 
2055 Fund actual return  1,000.00   1,048.29   0.21   0.56 
5% annual hypothetical return  1,000.00   1,024.87   0.20   0.56 
2060 Fund actual return  1,000.00   1,049.54   0.21   0.57 
5% annual hypothetical return  1,000.00   1,024.87   0.20   0.56 

 

* 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 183/365. There were 183 days in the six months ended November 30, 2016. 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 0.01% for the Retirement Income, 2010 and 2015 Funds; 0.02% for the 2020 and 2025 Funds; 0.03% for the 2030 Fund; and 0.04% for the 2035, 2040, 2045, 2050, 2055 and 2060 Funds.

 

6 2016 Semiannual 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 0.11% for the 2010, 2025, 2030, 2040, 2045, 2050, 2055 and 2060 Funds; and 0.12% for the Retirement Income, 2015, 2020 and 2035 Funds.

 

Expense examples

 

Six months ended November 30, 2016

Lifecycle Index Funds
Advisor Class		  Beginning
account
value
(6/1/16		)  Ending
account
value
(11/30/16		)  Expenses paid
during period
(6/1/16–11/30/16		*
)		 

Effective
expenses paid
during period
(6/1/16–11/30/16

 †
)
Retirement Income Fund actual return  $1,000.00   $1,017.57   $0.25   $0.81 
5% annual hypothetical return  1,000.00   1,024.82   0.25   0.81 
2010 Fund actual return  1,000.00   1,018.88   0.10   0.66 
5% annual hypothetical return  1,000.00   1,024.97   0.10   0.66 
2015 Fund actual return  1,000.00   1,021.82   0.15   0.66 
5% annual hypothetical return  1,000.00   1,024.92   0.15   0.66 
2020 Fund actual return  1,000.00   1,025.85   0.20   0.66 
5% annual hypothetical return  1,000.00   1,024.87   0.20   0.66 
2025 Fund actual return  1,000.00   1,030.38   0.20   0.66 
5% annual hypothetical return  1,000.00   1,024.87   0.20   0.66 
2030 Fund actual return  1,000.00   1,034.62   0.26   0.66 
5% annual hypothetical return  1,000.00   1,024.82   0.25   0.66 
2035 Fund actual return  1,000.00   1,040.00   0.26   0.66 
5% annual hypothetical return  1,000.00   1,024.82   0.25   0.66 
2040 Fund actual return  1,000.00   1,045.09   0.31   0.67 
5% annual hypothetical return  1,000.00   1,024.77   0.30   0.66 
2045 Fund actual return  1,000.00   1,047.15   0.31   0.67 
5% annual hypothetical return  1,000.00   1,024.77   0.30   0.66 
2050 Fund actual return  1,000.00   1,047.74   0.31   0.67 
5% annual hypothetical return  1,000.00   1,024.77   0.30   0.66 
2055 Fund actual return  1,000.00   1,048.32   0.31   0.67 
5% annual hypothetical return  1,000.00   1,024.77   0.30   0.66 
2060 Fund actual return  1,000.00   1,049.54   0.31   0.67 
5% annual hypothetical return  1,000.00   1,024.77   0.30   0.66 

 

* 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  ■  2016 Semiannual Report 7
 

Important information about expenses

 

  183/365. There were 183 days in the six months ended November 30, 2016. 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 0.02% for the 2010 Fund; 0.03% for the 2015 Fund; 0.04% for the 2020 and 2025 Funds; 0.05% for the Retirement Income, 2030 and 2035 Funds; 0.06% for the 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 0.16% for the Retirement Income Fund; and 0.13% for the 2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055 and 2060 Funds.

 

Expense examples

 

Six months ended November 30, 2016

Lifecycle Index Funds
Premier Class		  Beginning
account
value
(6/1/16		)  Ending
account
value
(11/30/16		)  Expenses paid
during period
(6/1/16–11/30/16		*
)		  Effective
expenses paid
during period
(6/1/16–11/30/16		†
)
Retirement Income Fund actual return  $1,000.00   $1,016.87   $0.81   $1.37 
5% annual hypothetical return  1,000.00   1,024.27   0.81   1.37 
2010 Fund actual return  1,000.00   1,018.21   0.81   1.32 
5% annual hypothetical return  1,000.00   1,024.27   0.81   1.32 
2015 Fund actual return  1,000.00   1,021.20   0.81   1.37 
5% annual hypothetical return  1,000.00   1,024.27   0.81   1.37 
2020 Fund actual return  1,000.00   1,025.27   0.86   1.37 
5% annual hypothetical return  1,000.00   1,024.22   0.86   1.37 
2025 Fund actual return  1,000.00   1,029.82   0.87   1.32 
5% annual hypothetical return  1,000.00   1,024.22   0.86   1.32 
2030 Fund actual return  1,000.00   1,034.11   0.92   1.33 
5% annual hypothetical return  1,000.00   1,024.17   0.91   1.32 
2035 Fund actual return  1,000.00   1,039.52   0.97   1.38 
5% annual hypothetical return  1,000.00   1,024.12   0.96   1.37 
2040 Fund actual return  1,000.00   1,044.67   0.97   1.33 
5% annual hypothetical return  1,000.00   1,024.12   0.96   1.32 
2045 Fund actual return  1,000.00   1,046.70   0.97   1.33 
5% annual hypothetical return  1,000.00   1,024.12   0.96   1.32 

 

8 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

Lifecycle Index Funds
Premier Class		  Beginning
account
value
(6/1/16		)  Ending
account
value
(11/30/16		)  Expenses paid
during period
(6/1/16–11/30/16		*
)		  Effective
expenses paid
during period
(6/1/16–11/30/16		†
)
2050 Fund actual return  $1,000.00   $1,047.32   $0.98   $1.33 
5% annual hypothetical return  1,000.00   1,024.12   0.96   1.32 
2055 Fund actual return  1,000.00   1,047.58   0.98   1.33 
5% annual hypothetical return  1,000.00   1,024.12   0.96   1.32 
2060 Fund actual return  1,000.00   1,048.58   0.98   1.34 
5% annual hypothetical return  1,000.00   1,024.12   0.96   1.32 

 

* 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 183/365. There were 183 days in the six months ended November 30, 2016. 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 0.16% for the Retirement Income, 2010 and 2015 Funds; 0.17% for the 2020 and 2025 Funds; 0.18% for the 2030 Fund; 0.19% 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 0.26% for the 2010, 2025, 2030, 2040, 2045, 2050, 2055 and 2060 Funds; 0.27% for the Retirement Income, 2015, 2020 and 2035 Funds.

 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 9
 

Important information about expenses

 

Expense examples

 

Six months ended November 30, 2016

Lifecycle Index Funds
Retirement Class		  Beginning
account
value
(6/1/16		)  Ending
account
value
(11/30/16		)  Expenses paid
during period
(6/1/16–11/30/16		*
)		  Effective
expenses paid
during period
(6/1/16–11/30/16		†
)
Retirement Income Fund actual return  $1,000.00   $1,015.76   $1.31   $1.87 
5% annual hypothetical return  1,000.00   1,023.76   1.32   1.88 
2010 Fund actual return  1,000.00   1,017.57   1.32   1.82 
5% annual hypothetical return  1,000.00   1,023.76   1.32   1.83 
2015 Fund actual return  1,000.00   1,020.55   1.32   1.82 
5% annual hypothetical return  1,000.00   1,023.76   1.32   1.83 
2020 Fund actual return  1,000.00   1,024.66   1.37   1.88 
5% annual hypothetical return  1,000.00   1,023.71   1.37   1.88 
2025 Fund actual return  1,000.00   1,029.26   1.37   1.83 
5% annual hypothetical return  1,000.00   1,023.71   1.37   1.83 
2030 Fund actual return  1,000.00   1,034.24   1.43   1.84 
5% annual hypothetical return  1,000.00   1,023.66   1.42   1.83 
2035 Fund actual return  1,000.00   1,039.04   1.48   1.84 
5% annual hypothetical return  1,000.00   1,023.61   1.47   1.83 
2040 Fund actual return  1,000.00   1,044.18   1.49   1.84 
5% annual hypothetical return  1,000.00   1,023.61   1.47   1.83 
2045 Fund actual return  1,000.00   1,045.63   1.49   1.85 
5% annual hypothetical return  1,000.00   1,023.61   1.47   1.83 
2050 Fund actual return  1,000.00   1,046.88   1.49   1.85 
5% annual hypothetical return  1,000.00   1,023.61   1.47   1.83 
2055 Fund actual return  1,000.00   1,047.69   1.49   1.85 
5% annual hypothetical return  1,000.00   1,023.61   1.47   1.83 
2060 Fund actual return  1,000.00   1,047.57   1.49   1.85 
5% annual hypothetical return  1,000.00   1,023.61   1.47   1.83 

 

* 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 183/365. There were 183 days in the six months ended November 30, 2016. 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 0.26% for the Retirement Income, 2010 and

 

10 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

concluded

 

  2015 Funds; 0.27% for the 2020 and 2025 Funds; 0.28% for the 2030 Fund; and 0.29% 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 0.36% for the 2010, 2015, 2025, 2030, 2035, 2040, 2045, 2050, 2055 and 2060 Funds; and 0.37% for the Retirement Income and 2020 Funds.

 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 11
 

Investment results of the Lifecycle Index Funds

 

Performance for the six months ended November 30, 2016

 

All twelve TIAA-CREF Lifecycle Index Funds delivered positive returns during the six-month period, and funds with longer target dates outperformed those with shorter target dates. Returns for the Retirement Class ranged from 1.58% for the Retirement Income Fund to 4.77% for the 2055 Fund. The tables on the following pages show returns for all share classes of the funds.

All of the funds underperformed their composite benchmarks during the period except for the 2050 and 2055 Funds, both of which matched their benchmarks’ returns. The relative underperformance ranged from 0.22 of a percentage point for the 2010 Fund to 0.02 of a percentage point for the 2040 Fund. (All results for the Lifecycle Index Funds are for the Retirement Class.)

 

Global markets produce mixed results

 

The U.S. economy continued on a steady growth trajectory during the six months. Labor markets improved during the period, with the unemployment rate dipping below 5.0%. Meanwhile, the nation’s gross domestic product (GDP), which measures the value of all goods and services produced in the United States, rose at an annual rate of 3.5% during the third quarter of 2016, an increase from the 1.4% annual rate reported in the previous quarter. The Federal Reserve held its federal funds target rate unchanged at 0.25%–0.50% during the reporting period but suggested that a rate hike could occur in the near future.

The broad U.S. stock market, as measured by the Russell 3000® Index, gained 6.93% for the six months. Foreign developed-market stocks declined during the period, while emerging-markets stocks showed renewed strength as oil prices recovered. The MSCI EAFE+EM Index, which measures the performance of leading stocks in 44 developed- and emerging-markets countries outside the United States, returned 0.97% in U.S.-dollar terms.

Within the U.S. fixed-income markets, returns were more muted as investors were attracted to higher equity returns and grew concerned about the possibility of interest-rate increases. The broad domestic investment-grade fixed-rate bond market, as represented by the Bloomberg Barclays U.S. Aggregate Bond Index, returned –0.92% for the six months. Short-term bonds, as measured by the Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index, rose 0.17%.

 

12 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Funds deliver positive results on solid advances by U.S. equities

 

All twelve of the Lifecycle Index Funds produced positive returns for the period, driven primarily by the solid performance of the U.S. equity markets during the six months.

The Lifecycle Index Funds may invest in up to five sectors of the investment markets, including U.S. equity (stocks), international equity (foreign stocks), fixed income, short-term fixed income and inflation-protected assets. The Lifecycle Index Funds do this by investing in various underlying mutual funds that are managed to track individual benchmark indexes. Those underlying funds may include the Equity Index Fund, the International Equity Index Fund, the Emerging Markets Equity Index Fund, the Bond Index Fund, the Short-Term Bond Index Fund and the Inflation-Linked Bond Fund.

For the six-month period, the funds’ absolute returns—that is, without regard to the performance of their respective composite benchmarks—were supported in large part by the strong results of U.S. and emerging markets equities. The Emerging Markets Equity Index Fund and the Equity Index Fund had the strongest returns, respectively, while the Bond Index Fund and Short-Term Bond Index Fund had slightly negative performance. The Inflation-Linked Bond Fund’s performance was slightly positive.

 

Funds with higher equity allocations perform better

 

The Lifecycle Index Funds with larger allocations to stocks had the best performance. For example, the 2040, 2045, 2050, 2055 and 2060 funds, each with at least 85% of their assets invested in equities as of the end of the reporting period, gained between 4.42% for the 2040 Fund and 4.77% for the 2055 Fund (performance for the 2060 Fund was slightly lower, with a return of 4.76%). By comparison, the Retirement Income Fund, with approximately 60% of its portfolio invested in fixed-income and 40% in equity funds at period-end, gained 1.58%. (Performance of the Lifecycle Index Funds’ underlying funds can be found at TIAA.org/performance.)

 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 13
 

Lifecycle Index Retirement Income Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
Lifecycle Index Retirement              since fund 
Income Fund  Inception date   6 months   1 year   5 years   inception 
Institutional Class   9/30/2009    1.76%   3.52%   5.79%   6.28%
Advisor Class   12/4/2015    1.76    3.46*   5.58*   6.05*
Premier Class   9/30/2009    1.69    3.37    5.64    6.12 
Retirement Class   9/30/2009    1.58    3.22    5.53    6.01 
Lifecycle Index Retirement Income Fund Composite Index†   —    1.79    3.66    5.97    6.45‡
Broad market index                         
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    3.55‡
Russell 3000® Index   —    6.93    8.31    14.41    13.20‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the Lifecycle Index Retirement Income Fund Composite Index consisted of: 40.0% Bloomberg Barclays U.S. Aggregate Bond Index; 28.0% Russell 3000 Index; 12.0% MSCI EAFE+EM Index; 10.0% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 10.0% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year 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.

 

14 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index Retirement Income Fund

 

Asset allocation

   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   28.49%   28.11%
International equity   11.91    12.03 
Fixed income          
Fixed income   39.53    39.93 
Inflation-protected assets   9.95    9.94 
Short-term fixed income   9.97    9.99 
Other assets & liabilities, net   0.15    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 15
 

Lifecycle Index 2010 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
               since fund 
Lifecycle Index 2010 Fund  Inception date   6 months   1 year   5 years   inception 
Institutional Class   9/30/2009    1.96%   3.66%   6.50%   6.80%
Advisor Class   12/4/2015    1.89    3.57*   6.28*   6.56*
Premier Class   9/30/2009    1.82    3.44    6.34    6.64 
Retirement Class   9/30/2009    1.76    3.30    6.23    6.52 
Lifecycle Index 2010 Fund Composite Index†   —    1.98    3.76    6.66    6.94‡
Broad market index                         
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    3.55‡
Russell 3000® Index   —    6.93    8.31    14.41    13.20‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the Lifecycle Index 2010 Fund Composite Index consisted of: 39.3% Bloomberg Barclays U.S. Aggregate Bond Index; 30.5% Russell 3000 Index; 13.0% MSCI EAFE+EM Index; 8.6% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 8.6% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year 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.

 

16 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2010 Fund

 

Asset allocation

   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   31.09%   30.87%
International equity   13.00    13.20 
Fixed income          
Fixed income   38.84    39.19 
Inflation-protected assets   8.52    8.35 
Short-term fixed income   8.54    8.39 
Other assets & liabilities, net   0.01    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 17
 

Lifecycle Index 2015 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
               since fund 
Lifecycle Index 2015 Fund  Inception date   6 months   1 year   5 years   inception 
Institutional Class   9/30/2009    2.25%   3.85%   7.11%   7.24%
Advisor Class   12/4/2015    2.18    3.84*   6.90*   7.00*
Premier Class   9/30/2009    2.12    3.64    6.94    7.06 
Retirement Class   9/30/2009    2.06    3.56    6.84    6.96 
Lifecycle Index 2015 Fund Composite Index†   —    2.23    3.94    7.28    7.38‡
Broad market index                         
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    3.55‡
Russell 3000® Index   —    6.93    8.31    14.41    13.20‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the Lifecycle Index 2015 Fund Composite Index consisted of: 38.3% Bloomberg Barclays U.S. Aggregate Bond Index; 34.0% Russell 3000 Index; 14.5% MSCI EAFE+EM Index; 6.6% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 6.6% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year 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.

 

18 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2015 Fund

 

Asset allocation

   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   34.60%   34.39%
International equity   14.48    14.69 
Fixed income          
Fixed income   37.84    38.17 
Inflation-protected assets   6.52    6.36 
Short-term fixed income   6.54    6.39 
Other assets & liabilities, net   0.02    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 19
 

Lifecycle Index 2020 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
               since fund 
Lifecycle Index 2020 Fund  Inception date   6 months   1 year   5 years   inception 
Institutional Class   9/30/2009    2.59%   4.03%   7.86%   7.76%
Advisor Class   12/4/2015    2.59    4.01*   7.64*   7.53*
Premier Class   9/30/2009    2.53    3.89    7.71    7.59 
Retirement Class   9/30/2009    2.47    3.83    7.61    7.50 
Lifecycle Index 2020 Fund Composite Index†   —    2.62    4.16    8.04    7.91‡
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    13.20‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    3.55‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the Lifecycle Index 2020 Fund Composite Index consisted of: 39.0% Russell 3000 Index; 35.1% Bloomberg Barclays U.S. Aggregate Bond Index; 16.7% MSCI EAFE+EM Index; 4.6% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 4.6% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year 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.

 

20 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2020 Fund

 

Asset allocation

   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   39.63%   39.57%
International equity   16.59    16.93 
Fixed income          
Fixed income   34.68    34.75 
Inflation-protected assets   4.53    4.37 
Short-term fixed income   4.54    4.38 
Other assets & liabilities, net   0.03    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 21
 

Lifecycle Index 2025 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
               since fund 
Lifecycle Index 2025 Fund  Inception date   6 months   1 year   5 years   inception 
Institutional Class   9/30/2009    3.10%   4.33%   8.63%   8.30%
Advisor Class   12/4/2015    3.04    4.25*   8.41*   8.06*
Premier Class   9/30/2009    2.98    4.13    8.47    8.14 
Retirement Class   9/30/2009    2.93    4.08    8.37    8.04 
Lifecycle Index 2025 Fund Composite Index†   —    3.05    4.42    8.80    8.44‡
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    13.20‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    3.55‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the Lifecycle Index 2025 Fund Composite Index consisted of: 44.6% Russell 3000 Index; 31.1% Bloomberg Barclays U.S. Aggregate Bond Index; 19.1% MSCI EAFE+EM Index; 2.6% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 2.6% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year 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 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2025 Fund

 

Asset allocation

   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   45.14%   45.17%
International equity   18.90    19.33 
Fixed income          
Fixed income   30.60    30.74 
Inflation-protected assets   2.53    2.38 
Short-term fixed income   2.53    2.38 
Other assets & liabilities, net   0.30    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 23
 

Lifecycle Index 2030 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
               since fund 
Lifecycle Index 2030 Fund  Inception date   6 months   1 year   5 years   inception 
Institutional Class   9/30/2009    3.53%   4.63%   9.40%   8.84%
Advisor Class   12/4/2015    3.46    4.55*   9.15*   8.60*
Premier Class   9/30/2009    3.41    4.43    9.23    8.67 
Retirement Class   9/30/2009    3.42    4.38    9.11    8.57 
Lifecycle Index 2030 Fund Composite Index†   —    3.48    4.67    9.56    8.96‡
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    13.20‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    3.55‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the Lifecycle Index 2030 Fund Composite Index consisted of: 50.2% Russell 3000 Index; 27.1% Bloomberg Barclays U.S. Aggregate Bond Index; 21.5% MSCI EAFE+EM Index; 0.6% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 0.6% Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year 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 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2030 Fund

 

Asset allocation

   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   50.87%   50.77%
International equity   21.30    21.73 
Fixed income          
Fixed income   26.70    26.72 
Inflation-protected assets   0.55    0.39 
Short-term fixed income   0.55    0.39 
Other assets & liabilities, net   0.03    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 25
 

Lifecycle Index 2035 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
               since fund 
Lifecycle Index 2035 Fund  Inception date   6 months   1 year   5 years   inception 
Institutional Class   9/30/2009    4.00%   4.92%   10.10%   9.33%
Advisor Class   12/4/2015    4.00    4.85*   9.87*   9.09*
Premier Class   9/30/2009    3.95    4.73    9.94    9.16 
Retirement Class   9/30/2009    3.90    4.63    9.83    9.05 
Lifecycle Index 2035 Fund Composite Index†   —    3.95    4.90    10.27    9.46‡
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    13.20‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    3.55‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the Lifecycle Index 2035 Fund Composite Index consisted of: 55.8% Russell 3000 Index; 23.9% MSCI EAFE+EM Index; and 20.3% Bloomberg 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.

 

Asset allocation

   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   56.37%   56.35%
International equity   23.62    24.13 
Fixed income   19.88    19.52 
Other assets & liabilities, net   0.13    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

26 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2040 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
               since fund 
Lifecycle Index 2040 Fund  Inception date   6 months   1 year   5 years   inception 
Institutional Class   9/30/2009    4.51%   5.15%   10.50%   9.59%
Advisor Class   12/4/2015    4.51    5.14*   10.29*   9.36*
Premier Class   9/30/2009    4.47    5.03    10.35    9.42 
Retirement Class   9/30/2009    4.42    4.91    10.24    9.32 
Lifecycle Index 2040 Fund Composite Index†   —    4.44    5.13    10.67    9.71‡
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    13.20‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    3.55‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the Lifecycle Index 2040 Fund Composite Index consisted of: 61.4% Russell 3000 Index; 26.3% MSCI EAFE+EM Index; and 12.3% Bloomberg 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.

 

Asset allocation

   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   61.88%   61.94%
International equity   25.95    26.53 
Fixed income   12.00    11.53 
Other assets & liabilities, net   0.17    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 27
 

Lifecycle Index 2045 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
               since fund 
Lifecycle Index 2045 Fund  Inception date   6 months   1 year   5 years   inception 
Institutional Class   9/30/2009    4.65%   5.32%   10.55%   9.61%
Advisor Class   12/4/2015    4.71    5.37*   10.32*   9.38*
Premier Class   9/30/2009    4.67    5.26    10.38    9.46 
Retirement Class   9/30/2009    4.56    5.09    10.27    9.34 
Lifecycle Index 2045 Fund Composite Index†   —    4.62    5.38    10.73    9.75‡
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    13.20‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    3.55‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the Lifecycle Index 2045 Fund Composite Index consisted of: 63.6% Russell 3000 Index; 27.3% MSCI EAFE+EM Index; and 9.1% Bloomberg 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.

 

Asset allocation

   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   63.99%   63.73%
International equity   26.85    27.30 
Fixed income   8.92    8.97 
Other assets & liabilities, net   0.24    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

28 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2050 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
               since fund 
Lifecycle Index 2050 Fund  Inception date   6 months   1 year   5 years   inception 
Institutional Class   9/30/2009    4.77%   5.49%   10.58%   9.65%
Advisor Class   12/4/2015    4.77    5.48*   10.36*   9.41*
Premier Class   9/30/2009    4.73    5.37    10.42    9.49 
Retirement Class   9/30/2009    4.69    5.28    10.32    9.38 
Lifecycle Index 2050 Fund Composite Index†   —    4.69    5.54    10.76    9.77‡
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    13.20‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    3.55‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the Lifecycle Index 2050 Fund Composite Index consisted of: 64.5% Russell 3000 Index; 27.6% MSCI EAFE+EM Index; and 7.9% Bloomberg 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.

 

Asset allocation

   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   64.81%   64.60%
International equity   27.24    27.68 
Fixed income   7.70    7.72 
Other assets & liabilities, net   0.25    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 29
 

Lifecycle Index 2055 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
               since fund 
Lifecycle Index 2055 Fund  Inception date   6 months   1 year   5 years   inception 
Institutional Class   4/29/2011    4.83%   5.66%   10.63%   7.50%
Advisor Class   12/4/2015    4.83    5.65*   10.39*   7.27*
Premier Class   4/29/2011    4.76    5.60    10.48    7.35 
Retirement Class   4/29/2011    4.77    5.49    10.35    7.24 
Lifecycle Index 2055 Fund Composite Index†   —    4.77    5.70    10.80    7.61‡
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    11.01‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    3.05‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the Lifecycle Index 2055 Fund Composite Index consisted of: 65.4% Russell 3000 Index; 28.0% MSCI EAFE+EM Index; and 6.6% Bloomberg 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.

 

Asset allocation

   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   65.63%   65.47%
International equity   27.59    28.05 
Fixed income   6.47    6.48 
Other assets & liabilities, net   0.31    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

30 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2060 Fund

 

Performance as of November 30, 2016

 

               Average annual
       Total return  total return
               since fund 
Lifecycle Index 2060 Fund  Inception date   6 months   1 year   inception 
Institutional Class   9/26/2014    4.95%   5.93%   3.96%
Advisor Class   12/4/2015    4.95    5.81*   3.78*
Premier Class   9/26/2014    4.86    5.67    3.78 
Retirement Class   9/26/2014    4.76    5.56    3.67 
Lifecycle Index 2060 Fund Composite Index†   —    4.85    5.86    4.00‡
Broad market index                    
Russell 3000® Index   —    6.93    8.31    7.13‡
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.25‡

 

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.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 Advisor 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 Advisor Class. If these lower expenses had been reflected, the performance of the Advisor Class shown for this period would have been higher.
† As of the close of business on November 30, 2016, the Lifecycle Index 2060 Fund Composite Index consisted of: 66.2% Russell 3000 Index; 28.4% MSCI EAFE+EM Index; and 5.4% Bloomberg 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.

 

Asset allocation

   % of   Target 
   net assets as   allocation 
   of 11/30/16   for 6/30/17 
Equity          
U.S. equity   66.42%   66.35%
International equity   27.85    28.42 
Fixed income   5.22    5.23 
Other assets & liabilities, net   0.51    — 
Total   100.00    100.00 

Target allocation

 

For June 30, 2017

 


 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 31
 

Portfolio of investments (unaudited)

 

Lifecycle Index Retirement Income Fund  ■  November 30, 2016

 

Shares     Security      Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9% (a)          
FIXED INCOME—39.5%              
 3,277,455     TIAA-CREF Bond Index Fund      $35,167,089    39.5%
       TOTAL FIXED INCOME       35,167,089    39.5 
INFLATION-PROTECTED ASSETS—10.0%              
 767,761     TIAA-CREF Inflation-Linked Bond Fund       8,852,282    10.0 
       TOTAL INFLATION-PROTECTED ASSETS       8,852,282    10.0 
INTERNATIONAL EQUITY—11.9%              
 290,104     TIAA-CREF Emerging Markets Equity Index Fund       2,639,949    3.0 
 479,511     TIAA-CREF International Equity Index Fund       7,955,089    8.9 
       TOTAL INTERNATIONAL EQUITY       10,595,038    11.9 
SHORT-TERM FIXED INCOME—10.0%              
 889,809     TIAA-CREF Short-Term Bond Index Fund       8,871,398    10.0 
       TOTAL SHORT-TERM FIXED INCOME       8,871,398    10.0 
U.S. EQUITY—28.5%              
 1,520,320     TIAA-CREF Equity Index Fund       25,343,741    28.5 
       TOTAL U.S. EQUITY       25,343,741    28.5 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $82,646,366)   88,829,548    99.9 
                      
       TOTAL PORTFOLIO   (Cost $82,646,366)   88,829,548    99.9 
       OTHER ASSETS & LIABILITIES, NET       131,128    0.1 
       NET ASSETS      $88,960,676    100.0%

 

 

 

(a) The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds.

 

32 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Portfolio of investments (unaudited)

 

Lifecycle Index 2010 Fund  ■  November 30, 2016

 

Shares     Security      Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9% (a)         
FIXED INCOME—38.8%              
 9,421,087     TIAA-CREF Bond Index Fund      $101,088,265    38.8%
       TOTAL FIXED INCOME       101,088,265    38.8 
INFLATION-PROTECTED ASSETS—8.5%              
 1,922,700     TIAA-CREF Inflation-Linked Bond Fund       22,168,734    8.5 
       TOTAL INFLATION-PROTECTED ASSETS       22,168,734    8.5 
INTERNATIONAL EQUITY—13.0%              
 926,181     TIAA-CREF Emerging Markets Equity Index Fund       8,428,245    3.2 
 1,530,629     TIAA-CREF International Equity Index Fund       25,393,142    9.8 
       TOTAL INTERNATIONAL EQUITY       33,821,387    13.0 
SHORT-TERM FIXED INCOME—8.5%              
 2,228,695     TIAA-CREF Short-Term Bond Index Fund       22,220,085    8.5 
       TOTAL SHORT-TERM FIXED INCOME       22,220,085    8.5 
U.S. EQUITY—31.1%              
 4,854,549     TIAA-CREF Equity Index Fund       80,925,337    31.1 
       TOTAL U.S. EQUITY       80,925,337    31.1 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $230,984,086)   260,223,808    99.9 
                      
       TOTAL PORTFOLIO   (Cost $230,984,086)   260,223,808    99.9 
       OTHER ASSETS & LIABILITIES, NET       37,955    0.1 
       NET ASSETS      $260,261,763    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  ■  2016 Semiannual Report 33
 

Portfolio of investments (unaudited)

 

Lifecycle Index 2015 Fund  ■  November 30, 2016

 

Shares     Security      Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9% (a)              
FIXED INCOME—37.8%              
 15,935,824     TIAA-CREF Bond Index Fund      $170,991,387    37.8%
       TOTAL FIXED INCOME       170,991,387    37.8 
INFLATION-PROTECTED ASSETS—6.5%              
 2,556,440     TIAA-CREF Inflation-Linked Bond Fund       29,475,758    6.5 
       TOTAL INFLATION-PROTECTED ASSETS       29,475,758    6.5 
INTERNATIONAL EQUITY—14.5%              
 1,791,887     TIAA-CREF Emerging Markets Equity Index Fund       16,306,171    3.6 
 2,960,160     TIAA-CREF International Equity Index Fund       49,109,053    10.9 
       TOTAL INTERNATIONAL EQUITY       65,415,224    14.5 
SHORT-TERM FIXED INCOME—6.5%              
 2,962,471     TIAA-CREF Short-Term Bond Index Fund       29,535,834    6.5 
       TOTAL SHORT-TERM FIXED INCOME       29,535,834    6.5 
U.S. EQUITY—34.6%              
 9,378,470     TIAA-CREF Equity Index Fund       156,339,095    34.6 
       TOTAL U.S. EQUITY       156,339,095    34.6 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $395,748,369)   451,757,298    99.9 
                      
       TOTAL PORTFOLIO   (Cost $395,748,369)   451,757,298    99.9 
       OTHER ASSETS & LIABILITIES, NET       73,161    0.1 
       NET ASSETS      $451,830,459    100.0%

 

 

 

(a) The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds.

 

34 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Portfolio of investments (unaudited)

 

Lifecycle Index 2020 Fund  ■  November 30, 2016

 

Shares     Security      Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9% (a)            
FIXED INCOME—34.7%              
 28,637,940     TIAA-CREF Bond Index Fund      $307,285,095    34.7%
       TOTAL FIXED INCOME       307,285,095    34.7 
INFLATION-PROTECTED ASSETS—4.5%              
 3,480,203     TIAA-CREF Inflation-Linked Bond Fund       40,126,740    4.5 
       TOTAL INFLATION-PROTECTED ASSETS       40,126,740    4.5 
INTERNATIONAL EQUITY—16.6%              
 4,028,028     TIAA-CREF Emerging Markets Equity Index Fund       36,655,058    4.1 
 6,653,361     TIAA-CREF International Equity Index Fund       110,379,265    12.5 
       TOTAL INTERNATIONAL EQUITY       147,034,323    16.6 
SHORT-TERM FIXED INCOME—4.5%              
 4,032,558     TIAA-CREF Short-Term Bond Index Fund       40,204,601    4.5 
       TOTAL SHORT-TERM FIXED INCOME       40,204,601    4.5 
U.S. EQUITY—39.6%              
 21,066,542     TIAA-CREF Equity Index Fund       351,179,251    39.6 
       TOTAL U.S. EQUITY       351,179,251    39.6 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $795,095,898)   885,830,010    99.9 
                      
       TOTAL PORTFOLIO   (Cost $795,095,898)   885,830,010    99.9 
       OTHER ASSETS & LIABILITIES, NET       336,096    0.1 
       NET ASSETS      $886,166,106    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  ■  2016 Semiannual Report 35
 

Portfolio of investments (unaudited)

 

Lifecycle Index 2025 Fund  ■  November 30, 2016

 

Shares     Security      Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.7% (a)              
FIXED INCOME—30.6%              
 26,089,499     TIAA-CREF Bond Index Fund      $279,940,323    30.6%
       TOTAL FIXED INCOME       279,940,323    30.6 
INFLATION-PROTECTED ASSETS—2.5%              
 2,007,279     TIAA-CREF Inflation-Linked Bond Fund       23,143,926    2.5 
       TOTAL INFLATION-PROTECTED ASSETS       23,143,926    2.5 
INTERNATIONAL EQUITY—18.9%              
 4,738,552     TIAA-CREF Emerging Markets Equity Index Fund       43,120,819    4.7 
 7,820,739     TIAA-CREF International Equity Index Fund       129,746,065    14.2 
       TOTAL INTERNATIONAL EQUITY       172,866,884    18.9 
SHORT-TERM FIXED INCOME—2.5%              
 2,325,976     TIAA-CREF Short-Term Bond Index Fund       23,189,981    2.5 
       TOTAL SHORT-TERM FIXED INCOME       23,189,981    2.5 
U.S. EQUITY—45.2%              
 24,768,200     TIAA-CREF Equity Index Fund       412,885,892    45.2 
       TOTAL U.S. EQUITY       412,885,892    45.2 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $812,536,260)   912,027,006    99.7 
                      
       TOTAL PORTFOLIO   (Cost $812,536,260)   912,027,006    99.7 
       OTHER ASSETS & LIABILITIES, NET       2,709,758    0.3 
       NET ASSETS      $914,736,764    100.0%

 

 

 

(a) The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds.

 

36 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Portfolio of investments (unaudited)

 

Lifecycle Index 2030 Fund  ■  November 30, 2016

 

Shares     Security      Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9% (a)            
FIXED INCOME—26.7%              
 24,090,945     TIAA-CREF Bond Index Fund      $258,495,841    26.7%
       TOTAL FIXED INCOME       258,495,841    26.7 
INFLATION-PROTECTED ASSETS—0.5%              
 462,082     TIAA-CREF Inflation-Linked Bond Fund       5,327,801    0.5 
       TOTAL INFLATION-PROTECTED ASSETS       5,327,801    0.5 
INTERNATIONAL EQUITY—21.3%              
 5,647,718     TIAA-CREF Emerging Markets Equity Index Fund       51,394,232    5.3 
 9,329,482     TIAA-CREF International Equity Index Fund       154,776,099    16.0 
       TOTAL INTERNATIONAL EQUITY       206,170,331    21.3 
SHORT-TERM FIXED INCOME—0.5%              
 535,450     TIAA-CREF Short-Term Bond Index Fund       5,338,435    0.5 
       TOTAL SHORT-TERM FIXED INCOME       5,338,435    0.5 
U.S. EQUITY—50.9%              
 29,545,213     TIAA-CREF Equity Index Fund       492,518,708    50.9 
       TOTAL U.S. EQUITY       492,518,708    50.9 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $852,916,333)   967,851,116    99.9 
                      
       TOTAL PORTFOLIO   (Cost $852,916,333)   967,851,116    99.9 
       OTHER ASSETS & LIABILITIES, NET       303,081    0.1 
       NET ASSETS      $968,154,197    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  ■  2016 Semiannual Report 37
 

Portfolio of investments (unaudited)

 

Lifecycle Index 2035 Fund  ■  November 30 2016

 

Shares     Security      Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9% (a)              
FIXED INCOME—19.9%              
 16,898,126     TIAA-CREF Bond Index Fund      $181,316,897    19.9%
       TOTAL FIXED INCOME       181,316,897    19.9 
INTERNATIONAL EQUITY—23.6%              
 5,904,409     TIAA-CREF Emerging Markets Equity Index Fund       53,730,119    5.9 
 9,748,043     TIAA-CREF International Equity Index Fund       161,720,033    17.7 
       TOTAL INTERNATIONAL EQUITY       215,450,152    23.6 
U.S. EQUITY—56.4%              
 30,847,511     TIAA-CREF Equity Index Fund       514,228,008    56.4 
       TOTAL U.S. EQUITY       514,228,008    56.4 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $790,581,885)   910,995,057    99.9 
                      
       TOTAL PORTFOLIO   (Cost $790,581,885)   910,995,057    99.9 
       OTHER ASSETS & LIABILITIES, NET       1,223,306    0.1 
       NET ASSETS      $912,218,363    100.0%

 

 

 

(a) The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds.

 

38 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Portfolio of investments (unaudited)

 

Lifecycle Index 2040 Fund  ■  November 30, 2016

 

Shares     Company      Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.8% (a)              
FIXED INCOME—12.0%              
 11,462,369     TIAA-CREF Bond Index Fund      $122,991,215    12.0%
       TOTAL FIXED INCOME       122,991,215    12.0 
INTERNATIONAL EQUITY—25.9%              
 7,288,225     TIAA-CREF Emerging Markets Equity Index Fund       66,322,847    6.4 
 12,035,624     TIAA-CREF International Equity Index Fund       199,670,994    19.5 
       TOTAL INTERNATIONAL EQUITY       265,993,841    25.9 
U.S. EQUITY—61.9%              
 38,055,493     TIAA-CREF Equity Index Fund       634,385,068    61.9 
       TOTAL U.S. EQUITY       634,385,068    61.9 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $868,970,820)   1,023,370,124    99.8 
                      
       TOTAL PORTFOLIO   (Cost $868,970,820)   1,023,370,124    99.8 
       OTHER ASSETS & LIABILITIES, NET       1,725,994    0.2 
       NET ASSETS      $1,025,096,118    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  ■  2016 Semiannual Report 39
 

Portfolio of investments (unaudited)

 

Lifecycle Index 2045 Fund  ■  November 30, 2016

 

Shares     Company      Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.8% (a)              
FIXED INCOME—8.9%              
 4,872,082     TIAA-CREF Bond Index Fund      $52,277,436    8.9%
       TOTAL FIXED INCOME       52,277,436    8.9 
INTERNATIONAL EQUITY—26.9%              
 4,311,157     TIAA-CREF Emerging Markets Equity Index Fund       39,231,532    6.7 
 7,118,422     TIAA-CREF International Equity Index Fund       118,094,618    20.2 
       TOTAL INTERNATIONAL EQUITY       157,326,150    26.9 
U.S. EQUITY—64.0%              
 22,496,004     TIAA-CREF Equity Index Fund       375,008,389    64.0 
       TOTAL U.S. EQUITY       375,008,389    64.0 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $519,058,213)   584,611,975    99.8 
                      
       TOTAL PORTFOLIO   (Cost $519,058,213)   584,611,975    99.8 
       OTHER ASSETS & LIABILITIES, NET       1,411,827    0.2 
       NET ASSETS      $586,023,802    100.0%

 

 

 

(a) The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds.

 

40 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Portfolio of investments (unaudited)

 

Lifecycle Index 2050 Fund  ■  November 30, 2016

 

Shares     Company      Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.7% (a)              
FIXED INCOME—7.7%              
 2,921,436     TIAA-CREF Bond Index Fund      $31,347,003    7.7%
       TOTAL FIXED INCOME       31,347,003    7.7 
INTERNATIONAL EQUITY—27.2%              
 3,038,018     TIAA-CREF Emerging Markets Equity Index Fund       27,645,965    6.8 
 5,014,795     TIAA-CREF International Equity Index Fund       83,195,445    20.4 
       TOTAL INTERNATIONAL EQUITY       110,841,410    27.2 
U.S. EQUITY—64.8%              
 15,820,772     TIAA-CREF Equity Index Fund       263,732,266    64.8 
       TOTAL U.S. EQUITY       263,732,266    64.8 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $362,131,193)   405,920,679    99.7 
                      
       TOTAL PORTFOLIO   (Cost $362,131,193)   405,920,679    99.7 
       OTHER ASSETS & LIABILITIES, NET       1,019,103    0.3 
       NET ASSETS      $406,939,782    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  ■  2016 Semiannual Report 41
 

Portfolio of investments (unaudited)

 

Lifecycle Index 2055 Fund  ■  November 30, 2016

 

Shares     Company      Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.7% (a)            
FIXED INCOME—6.5%              
 646,853     TIAA-CREF Bond Index Fund      $6,940,736    6.5%
       TOTAL FIXED INCOME       6,940,736    6.5 
INTERNATIONAL EQUITY—27.6%              
 810,763     TIAA-CREF Emerging Markets Equity Index Fund       7,377,941    6.9 
 1,338,644     TIAA-CREF International Equity Index Fund       22,208,096    20.7 
       TOTAL INTERNATIONAL EQUITY       29,586,037    27.6 
U.S. EQUITY—65.6%              
 4,221,389     TIAA-CREF Equity Index Fund       70,370,559    65.6 
       TOTAL U.S. EQUITY       70,370,559    65.6 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $97,278,310)   106,897,332    99.7 
                      
       TOTAL PORTFOLIO   (Cost $97,278,310)   106,897,332    99.7 
       OTHER ASSETS & LIABILITIES, NET       336,605    0.3 
       NET ASSETS      $107,233,937    100.0%

 

 

 

(a) The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds.

 

42 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Portfolio of investments (unaudited)

 

Lifecycle Index 2060 Fund  ■  November 30, 2016

 

Shares     Company      Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.5% (a)            
FIXED INCOME—5.2%              
 73,818     TIAA-CREF Bond Index Fund      $792,067    5.2%
       TOTAL FIXED INCOME       792,067    5.2 
INTERNATIONAL EQUITY—27.9%              
 115,685     TIAA-CREF Emerging Markets Equity Index Fund       1,052,730    7.0 
 191,094     TIAA-CREF International Equity Index Fund       3,170,242    20.9 
       TOTAL INTERNATIONAL EQUITY       4,222,972    27.9 
U.S. EQUITY—66.4%              
 604,215     TIAA-CREF Equity Index Fund       10,072,261    66.4 
       TOTAL U.S. EQUITY       10,072,261    66.4 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $14,552,704)   15,087,300    99.5 
                      
       TOTAL PORTFOLIO   (Cost $14,552,704)   15,087,300    99.5 
       OTHER ASSETS & LIABILITIES, NET       76,724    0.5 
       NET ASSETS      $15,164,024    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  ■  2016 Semiannual Report 43
 

Statements of assets and liabilities (unaudited)

 

TIAA-CREF Lifecycle Index Funds  ■  November 30, 2016

 

   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		 
ASSETS                              
Affiliated investments, at value‡  $88,829,548   $260,223,808   $451,757,298   $885,830,010   $912,027,006   $967,851,116 
Cash   87,801    154,170    889,169    2,446,627    2,004,967    1,669,096 
Receivable from securities transactions   716,909    2,329,040    4,091,327    8,447,055    9,068,717    9,862,894 
Receivable from Fund shares sold   42,388    107,713    199,141    903,062    2,819,394    1,266,629 
Dividends and interest receivable   72,517    200,915    334,590    584,987    520,724    466,425 
Due from affiliates   1,860    3,425    5,068    8,321    8,562    8,204 
Other   20,168    26,600    34,768    39,391    37,240    41,265 
Total assets   89,771,191    263,045,671    457,311,361    898,259,453    926,486,610    981,165,629 
LIABILITIES                              
Management fees payable   732    2,137    3,709    7,263    7,491    7,950 
Service agreement fees payable   580    1,249    2,062    4,498    4,536    4,604 
Distribution fees payable   1,660    3,608    7,843    18,490    19,437    20,898 
Due to affiliates   1,888    2,254    2,245    3,465    3,435    3,551 
Payable for securities transactions   789,660    2,415,805    5,150,328    11,370,067    11,661,471    12,011,647 
Payable for Fund shares redeemed   2,606    336,108    281,835    634,678    351    904,303 
Payable for trustee compensation   1,889    7,580    13,134    20,126    20,010    21,014 
Accrued expenses and other payables   11,500    15,167    19,746    34,760    33,115    37,465 
Total liabilities   810,515    2,783,908    5,480,902    12,093,347    11,749,846    13,011,432 
NET ASSETS  $88,960,676   $260,261,763   $451,830,459   $886,166,106   $914,736,764   $968,154,197 
NET ASSETS CONSIST OF:                              
Paid-in-capital  $83,445,079   $231,356,712   $395,564,676   $793,891,443   $812,377,789   $850,143,962 
Undistributed net investment income (loss)   131,545    1,957,651    3,297,389    5,099,600    4,316,358    3,606,787 
Accumulated net realized gain (loss) on total investments   (799,130)   (2,292,322)   (3,040,535)   (3,559,049)   (1,448,129)   (531,335)
Net unrealized appreciation (depreciation) on total investments   6,183,182    29,239,722    56,008,929    90,734,112    99,490,746    114,934,783 
NET ASSETS  $88,960,676   $260,261,763   $451,830,459   $886,166,106   $914,736,764   $968,154,197 
INSTITUTIONAL CLASS:                              
Net assets  $47,360,465   $170,514,133   $288,228,214   $515,380,501   $533,296,660   $573,929,067 
Outstanding shares of beneficial interest,
unlimited shares authorized ($.0001 par value)		   3,572,845    12,157,061    19,855,842    34,167,325    34,166,626    35,546,154 
Net asset value per share   $13.26    $14.03    $14.52    $15.08    $15.61    $16.15 
ADVISOR CLASS:                              
Net assets  $110,362   $104,778   $105,108   $212,668   $106,101   $106,542 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   8,325    7,469    7,240    14,100    6,800    6,600 
Net asset value per share   $13.26    $14.03    $14.52    $15.08    $15.60    $16.14 
PREMIER CLASS:                              
Net assets  $13,492,658   $29,090,556   $63,431,775   $151,208,903   $159,580,272   $170,492,704 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   1,018,505    2,081,270    4,388,580    10,072,466    10,266,669    10,609,316 
Net asset value per share   $13.25    $13.98    $14.45    $15.01    $15.54    $16.07 
RETIREMENT CLASS:                              
Net assets  $27,997,191   $60,552,296   $100,065,362   $219,364,034   $221,753,731   $223,625,884 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   2,115,859    4,355,273    6,948,364    14,666,043    14,327,840    13,971,665 
Net asset value per share   $13.23    $13.90    $14.40    $14.96    $15.48    $16.01 
‡ Affiliated investments, cost  $82,646,366   $230,984,086   $395,748,369   $795,095,898   $812,536,260   $852,916,333 

 

44 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements   See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 45
 
Statements of assets and liabilities (unaudited) concluded

 

TIAA-CREF Lifecycle Index Funds  ■  November 30, 2016

 

  Lifecycle Index
2035 Fund		   Lifecycle Index
2040 Fund		   Lifecycle Index
2045 Fund		   Lifecycle Index
2050 Fund		   Lifecycle Index
2055 Fund		   Lifecycle Index
2060 Fund		 
ASSETS                        
Affiliated investments, at value‡  $910,995,057   $1,023,370,124   $584,611,975   $405,920,679   $106,897,332   $15,087,300 
Cash   2,085,029    2,638,449    1,428,122    1,402,097    327,567    52,350 
Receivable from securities transactions   8,798,784    9,143,428    4,754,580    3,005,277    767,774    262,284 
Receivable from Fund shares sold   1,740,591    2,270,868    1,849,859    1,547,271    550,124    53,897 
Dividends and interest receivable   322,263    217,444    92,702    55,370    12,066    1,371 
Due from affiliates   7,875    7,751    4,890    3,765    1,751    1,175 
Other   33,377    43,171    32,607    26,169    1,357    18,592 
Total assets   923,982,976    1,037,691,235    592,774,735    411,960,628    108,557,971    15,476,969 
LIABILITIES                              
Management fees payable   7,481    8,395    4,797    3,323    874    123 
Service agreement fees payable   3,833    3,642    2,681    1,999    647    50 
Distribution fees payable   18,261    17,992    13,187    9,663    1,812    148 
Due to affiliates   3,440    3,413    2,014    2,342    1,873    1,808 
Payable for securities transactions   11,481,789    12,466,187    6,686,090    4,954,028    1,299,781    300,471 
Payable for Fund shares redeemed   193,321    34,327    2,079    17,051    43    7 
Payable for trustee compensation   20,082    23,634    10,860    7,229    1,607    212 
Accrued expenses and other payables   36,406    37,527    29,225    25,211    17,397    10,126 
Total liabilities   11,764,613    12,595,117    6,750,933    5,020,846    1,324,034    312,945 
NET ASSETS  $912,218,363   $1,025,096,118   $586,023,802   $406,939,782   $107,233,937   $15,164,024 
NET ASSETS CONSIST OF:                              
Paid-in-capital  $788,999,947   $867,972,971   $519,448,308   $362,324,892   $98,061,144   $14,627,355 
Undistributed net investment income (loss)   2,242,080    1,191,420    330,629    134,793    15,354    4,742 
Accumulated net realized gain (loss) on total investments   563,164    1,532,423    691,103    690,611    (461,583)   (2,669)
Net unrealized appreciation (depreciation) on total investments   120,413,172    154,399,304    65,553,762    43,789,486    9,619,022    534,596 
NET ASSETS  $912,218,363   $1,025,096,118   $586,023,802   $406,939,782   $107,233,937   $15,164,024 
INSTITUTIONAL CLASS:                              
Net assets  $575,643,591   $698,896,962   $346,837,138   $229,342,404   $60,001,962   $11,390,618 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   34,576,946    41,301,798    20,542,753    13,569,423    4,457,487    1,097,580 
Net asset value per share   $16.65    $16.92    $16.88    $16.90    $13.46    $10.38 
ADVISOR CLASS:                              
Net assets  $107,031   $282,071   $107,810   $289,011   $108,178   $108,320 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   6,432    16,669    6,388    17,106    8,040    10,435 
Net asset value per share   $16.64    $16.92    $16.88    $16.90    $13.45    $10.38 
PREMIER CLASS:                              
Net assets  $149,987,167   $147,766,577   $108,481,949   $79,392,096   $15,389,199   $1,234,038 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   9,054,088    8,776,143    6,455,134    4,721,066    1,145,968    119,063 
Net asset value per share   $16.57    $16.84    $16.81    $16.82    $13.43    $10.36 
RETIREMENT CLASS:                              
Net assets  $186,480,574   $178,150,508   $130,596,905   $97,916,271   $31,734,598   $2,431,048 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   11,302,899    10,619,136    7,804,993    5,847,485    2,368,398    234,777 
Net asset value per share   $16.50    $16.78    $16.73    $16.75    $13.40    $10.35 
‡ Affiliated investments, cost  $790,581,885   $868,970,820   $519,058,213   $362,131,193   $97,278,310   $14,552,704 

 

46 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements   See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 47
 

Statements of operations (unaudited)

 

TIAA-CREF Lifecycle Index Funds  ■  For the period ended November 30, 2016

 

   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		 
                               
INVESTMENT INCOME                              
Dividends from affiliated investments  $421,131   $1,169,481   $1,980,099   $3,316,147   $2,953,566   $2,629,802 
Total income   421,131    1,169,481    1,980,099    3,316,147    2,953,566    2,629,802 
                               
EXPENSES                              
Management fees   43,121    123,732    219,261    409,547    420,893    442,852 
Shareholder servicing — Institutional Class   774    784    1,028    1,201    1,213    1,287 
Shareholder servicing — Advisor Class   22    8    8    8    8    8 
Shareholder servicing — Premier Class   80    56    66    94    98    119 
Shareholder servicing — Retirement Class   34,097    68,885    116,513    244,760    242,542    235,471 
Distribution fees — Premier Class   9,909    20,603    47,059    107,753    113,448    122,123 
Registration fees   32,257    34,696    31,675    33,703    36,242    33,035 
Professional fees   11,930    12,536    12,853    14,436    14,476    14,591 
Shareholder reports   6,200    7,112    10,247    24,111    21,753    26,565 
Administrative service fees   6,099    7,208    7,743    10,156    10,231    10,831 
Custody and accounting fees   5,790    5,746    5,746    5,746    5,746    5,746 
Trustee fees and expenses   333    924    1,650    3,091    3,186    3,317 
Other expenses   5,574    7,071    9,836    20,619    20,839    22,949 
Total expenses   156,186    289,361    463,685    875,225    890,675    918,894 
Less: Expenses reimbursed by the investment adviser   (69,173)   (76,044)   (80,433)   (113,461)   (114,094)   (118,899)
Fee waiver by investment adviser and TPIS   (40,327)   (115,619)   (190,348)   (315,502)   (324,213)   (297,020)
Net expenses   46,686    97,698    192,904    446,262    452,368    502,975 
                               
Net investment income (loss)   374,445    1,071,783    1,787,195    2,869,885    2,501,198    2,126,827 
                               
NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS                              
Realized gain (loss) from sale of affiliated investments   (142,714)   (166,293)   (394,168)   (695,514)   (636,983)   (639,622)
Realized gain (loss) from sale of unaffiliated investments‡   5,097    —    —    —    24,682    — 
Net realized gain (loss) from investments   (137,617)   (166,293)   (394,168)   (695,514)   (612,301)   (639,622)
Net change in unrealized appreciation (depreciation) from affiliated investments   955,146    3,447,960    7,612,368    17,168,100    21,799,407    27,194,373 
Net realized and unrealized gain (loss) from investments   817,529    3,281,667    7,218,200    16,472,586    21,187,106    26,554,751 
Net increase (decrease) in net assets from operations  $1,191,974   $4,353,450   $9,005,395   $19,342,471   $23,688,304   $28,681,578 
                               
‡ Includes net realized gain (loss) from securities sold to affiliates of  $(1,029)  $—   $—   $—   $—   $— 

 

48 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements   See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 49
 
Statements of operations (unaudited) concluded

 

TIAA-CREF Lifecycle Index Funds  ■  For the period ended November 30, 2016

 

   Lifecycle Index 2035 Fund   Lifecycle Index 2040 Fund   Lifecycle Index 2045 Fund   Lifecycle Index 2050 Fund   Lifecycle Index 2055 Fund   Lifecycle Index 2060 Fund 
                               
INVESTMENT INCOME                              
Dividends from affiliated investments  $1,816,865   $1,220,150   $520,757   $308,597   $64,063   $7,498 
Total income   1,816,865    1,220,150    520,757    308,597    64,063    7,498 
                               
EXPENSES                              
Management fees   418,970    472,246    263,471    181,223    44,814    6,499 
Shareholder servicing — Institutional Class   1,255    1,367    1,084    1,274    855    785 
Shareholder servicing — Advisor Class   8    8    8    10    8    8 
Shareholder servicing — Premier Class   92    104    88    73    82    39 
Shareholder servicing — Retirement Class   202,668    190,149    140,258    102,675    31,924    2,054 
Distribution fees — Premier Class   105,630    102,420    75,884    55,469    9,745    838 
Registration fees   38,049    33,405    30,976    31,595    28,817    32,304 
Professional fees   14,472    14,455    13,375    12,820    11,912    11,449 
Shareholder reports   22,520    33,901    23,069    21,171    10,232    5,378 
Administrative service fees   10,241    11,332    7,942    7,715    6,101    5,762 
Custody and accounting fees   5,741    5,836    5,741    5,741    5,735    5,746 
Trustee fees and expenses   3,148    3,223    1,957    1,348    338    46 
Other expenses   21,782    21,169    14,471    11,324    5,809    3,308 
Total expenses   844,576    889,615    578,324    432,438    156,372    74,216 
Less: Expenses reimbursed by the investment adviser   (117,694)   (125,170)   (99,037)   (93,408)   (70,185)   (64,990)
Fee waiver by investment adviser and TPIS   (253,570)   (269,156)   (150,449)   (103,577)   (25,723)   (3,716)
Net expenses   473,312    495,289    328,838    235,453    60,464    5,510 
                               
Net investment income (loss)   1,343,553    724,861    191,919    73,144    3,599    1,988 
                               
NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS                              
Realized gain (loss) from sale of affiliated investments   (541,919)   (720,712)   (327,273)   (245,037)   (55,371)   (37,608)
Realized gain (loss) from sale of unaffiliated investments‡   —    —    —    —    6,255    3,556 
Net realized gain (loss) from investments   (541,919)   (720,712)   (327,273)   (245,037)   (49,116)   (34,052)
Net change in unrealized appreciation (depreciation) from affiliated investments   30,772,978    40,370,135    23,553,024    16,479,859    4,119,193    653,888 
Net realized and unrealized gain (loss) from investments   30,231,059    39,649,423    23,225,751    16,234,822    4,070,077    619,836 
Net increase (decrease) in net assets from operations  $31,574,612   $40,374,284   $23,417,670   $16,307,966   $4,073,676   $621,824 
                               
‡ Includes net realized gain (loss) from securities sold to affiliates of  $—   $—   $—   $—   $—   $(196)

 

50 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements   See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 51

 

 

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
      November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016 
      (unaudited)       (unaudited)       (unaudited)     
OPERATIONS                                 
Net investment income (loss)  $374,445   $1,073,120   $1,071,783   $3,952,213   $1,787,195   $7,166,033 
Net realized gain (loss) from investments   (137,617)   (241,727)   (166,293)   (282,560)   (394,168)   (113,244)
Net change in unrealized appreciation (depreciation) from affiliated investments   955,146    (275,613)   3,447,960    (3,121,358)   7,612,368    (6,916,242)
Net increase (decrease) in net assets from operations   1,191,974    555,780    4,353,450    548,295    9,005,395    136,547 
DISTRIBUTIONS TO SHAREHOLDERS                              
From net investment income:  Institutional Class   (206,596)   (625,899)   —    (2,618,298)   —    (4,591,536)
   Advisor Class†   (483)   (325)   —    (187)   —    (191)
   Premier Class   (49,619)   (201,235)   —    (427,166)   —    (1,063,895)
   Retirement Class   (92,840)   (216,046)   —    (729,460)   —    (1,175,890)
From realized gains:  Institutional Class   —    (56,805)   —    (308,320)   —    (609,013)
   Advisor Class†   —    (17)   —    (22)   —    (26)
   Premier Class   —    (20,619)   —    (54,529)   —    (152,343)
   Retirement Class   —    (21,361)   —    (97,722)   —    (177,023)
Total distributions      (349,538)   (1,142,307)   —    (4,235,704)   —    (7,769,917)
SHAREHOLDER TRANSACTIONS                              
Subscriptions:  Institutional Class   10,662,452    19,169,801    24,530,376    45,853,493    40,801,998    71,150,976 
   Advisor Class†   6,500    100,012    —    99,996    —    99,982 
   Premier Class   1,335,406    4,658,337    4,606,992    6,765,375    5,623,326    12,383,615 
   Retirement Class   12,458,346    15,792,662    14,358,454    22,095,605    24,821,508    43,398,709 
Reinvestments of distributions:   Institutional Class   206,536    668,956    —    2,926,618    —    5,200,549 
   Premier Class   49,569    220,845    —    481,695    —    1,216,238 
   Retirement Class   92,794    236,459    —    827,182    —    1,352,913 
Redemptions:  Institutional Class   (3,881,296)   (8,063,520)   (10,357,194)   (15,788,418)   (21,738,595)   (29,255,758)
   Premier Class   (740,754)   (1,791,566)   (2,761,229)   (3,405,327)   (4,601,454)   (6,675,113)
   Retirement Class   (6,827,824)   (2,751,682)   (5,669,043)   (12,551,877)   (14,154,812)   (20,659,364)
Net increase (decrease) from shareholder transactions  13,361,729    28,240,304    24,708,356    47,304,342    30,751,971    78,212,747 
Net increase (decrease) in net assets  14,204,165    27,653,777    29,061,806    43,616,933    39,757,366    70,579,377 
NET ASSETS                                 
Beginning of period      74,756,511    47,102,734    231,199,957    187,583,024    412,073,093    341,493,716 
End of period     $88,960,676   $74,756,511   $260,261,763   $231,199,957   $451,830,459   $412,073,093 
Undistributed net investment income (loss) included in net assets  $131,545   $106,638   $1,957,651   $885,868   $3,297,389   $1,510,194 
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   803,530    1,478,311    1,754,120    3,360,860    2,826,535    5,053,312 
   Advisor Class†   483    7,841    —    7,469    —    7,240 
   Premier Class   100,226    357,038    327,972    498,545    388,444    881,351 
   Retirement Class   932,807    1,225,603    1,030,230    1,644,983    1,721,348    3,120,928 
Shares reinvested:  Institutional Class   15,634    52,370    —    220,047    —    379,325 
   Premier Class   3,755    17,314    —    36,300    —    88,971 
   Retirement Class   7,017    18,538    —    62,618    —    99,260 
Shares redeemed:  Institutional Class   (292,760)   (622,637)   (738,064)   (1,169,014)   (1,500,217)   (2,081,709)
   Premier Class   (55,778)   (137,920)   (198,324)   (248,873)   (319,236)   (478,589)
   Retirement Class   (513,138)   (213,435)   (407,370)   (935,680)   (987,801)   (1,480,428)
Net increase (decrease) from shareholder transactions  1,001,776    2,183,023    1,768,564    3,477,255    2,129,073    5,589,661 

 

†Advisor Class commenced operations on December 4, 2015.

 

52 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements   See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 53
 
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
      November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016 
      (unaudited)       (unaudited)       (unaudited)     
OPERATIONS                                 
Net investment income (loss)  $2,869,885   $12,462,790   $2,501,198   $12,955,488   $2,126,827   $13,856,933 
Net realized gain (loss) from investments   (695,514)   (313,154)   (612,301)   1,292,494    (639,622)   2,010,647 
Net change in unrealized appreciation (depreciation) from affiliated investments   17,168,100    (12,610,302)   21,799,407    (16,534,326)   27,194,373    (20,853,261)
Net increase (decrease) in net assets from operations   19,342,471    (460,666)   23,688,304    (2,286,344)   28,681,578    (4,985,681)
DISTRIBUTIONS TO SHAREHOLDERS                              
From net investment income:  Institutional Class   —    (7,082,969)   —    (7,738,492)   —    (8,385,391)
   Advisor Class†   —    (192)   —    (199)   —    (205)
   Premier Class   —    (2,338,569)   —    (2,435,998)   —    (2,735,871)
   Retirement Class   —    (2,349,973)   —    (2,196,402)   —    (2,244,708)
From realized gains:  Institutional Class   —    (741,330)   —    (842,613)   —    (969,730)
   Advisor Class†   —    (20)   —    (22)   —    (24)
   Premier Class   —    (263,506)   —    (284,724)   —    (339,007)
   Retirement Class   —    (274,999)   —    (266,136)   —    (287,408)
Total distributions      —    (13,051,558)   —    (13,764,586)   —    (14,962,344)
SHAREHOLDER TRANSACTIONS                              
Subscriptions:  Institutional Class   89,141,635    133,343,739    84,737,001    129,708,637    77,500,979    144,549,967 
   Advisor Class†   107,376    99,979    —    100,026    —    99,983 
   Premier Class   17,703,108    26,094,390    16,797,402    29,171,722    17,062,230    30,279,576 
   Retirement Class   55,740,432    80,287,091    60,789,801    83,645,300    75,285,302    75,788,056 
Reinvestments of distributions:  Institutional Class   —    7,824,300    —    8,581,105    —    9,355,121 
   Premier Class   —    2,602,075    —    2,720,722    —    3,074,878 
   Retirement Class   —    2,624,972    —    2,462,538    —    2,532,116 
Redemptions:  Institutional Class   (17,199,219)   (28,671,304)   (14,827,875)   (16,953,813)   (8,814,071)   (14,554,822)
   Premier Class   (5,643,665)   (6,955,615)   (3,704,388)   (4,925,589)   (4,757,252)   (5,753,171)
   Retirement Class   (13,140,060)   (20,478,643)   (14,276,695)   (13,726,269)   (12,215,668)   (14,854,013)
Net increase (decrease) from shareholder transactions   126,709,607    196,770,984    129,515,246    220,784,379    144,061,520    230,517,691 
Net increase (decrease) in net assets   146,052,078    183,258,760    153,203,550    204,733,449    172,743,098    210,569,666 
NET ASSETS                                 
Beginning of period      740,114,028    556,855,268    761,533,214    556,799,765    795,411,099    584,841,433 
End of period     $886,166,106   $740,114,028   $914,736,764   $761,533,214   $968,154,197   $795,411,099 
Undistributed net investment income (loss) included in net assets   $5,099,600   $2,229,715   $4,316,358   $1,815,160   $3,606,787   $1,479,960 
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   5,939,643    9,187,137    5,470,104    8,657,274    4,848,073    9,386,968 
   Advisor Class†   7,101    6,999    —    6,800    —    6,600 
   Premier Class   1,178,479    1,798,218    1,085,738    1,955,805    1,068,210    1,967,354 
   Retirement Class   3,730,840    5,576,931    3,944,971    5,648,287    4,733,635    4,962,112 
Shares reinvested:  Institutional Class   —    552,174    —    588,553    —    623,675 
   Premier Class   —    184,153    —    187,120    —    205,677 
   Retirement Class   —    186,300    —    169,830    —    169,827 
Shares redeemed:  Institutional Class   (1,144,138)   (1,972,462)   (960,409)   (1,127,921)   (555,729)   (940,943)
   Premier Class   (379,365)   (483,916)   (240,885)   (329,057)   (297,144)   (377,546)
   Retirement Class   (879,661)   (1,416,907)   (929,665)   (922,770)   (766,839)   (967,919)
Net increase (decrease) from shareholder transactions   8,452,899    13,618,627    8,369,854    14,833,921    9,030,206    15,035,805 

 

†Advisor Class commenced operations on December 4, 2015.

 

54 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements   See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 55
 
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
      November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016 
      (unaudited)       (unaudited)       (unaudited)     
OPERATIONS                                 
Net investment income (loss)  $1,343,553   $13,345,804   $724,861   $15,552,134   $191,919   $7,967,573 
Net realized gain (loss) from investments   (541,919)   2,752,504    (720,712)   4,103,435    (327,273)   1,720,111 
Net change in unrealized appreciation (depreciation) from affiliated investments   30,772,978    (24,108,340)   40,370,135    (33,372,982)   23,553,024    (15,411,140)
Net increase (decrease) in net assets from operations   31,574,612    (8,010,032)   40,374,284    (13,717,413)   23,417,670    (5,723,456)
DISTRIBUTIONS TO SHAREHOLDERS                              
From net investment income:  Institutional Class   —    (8,760,821)   —    (11,152,009)   —    (4,863,922)
   Advisor Class†   —    (206)   —    (208)   —    (208)
   Premier Class   —    (2,352,098)   —    (2,267,129)   —    (1,691,479)
   Retirement Class   —    (1,878,554)   —    (1,901,237)   —    (1,362,983)
From realized gains:  Institutional Class   —    (1,102,162)   —    (1,578,324)   —    (614,700)
   Advisor Class†   —    (26)   —    (30)   —    (27)
   Premier Class   —    (316,608)   —    (342,925)   —    (228,608)
   Retirement Class   —    (259,888)   —    (296,356)   —    (188,916)
Total distributions      —    (14,670,363)   —    (17,538,218)   —    (8,950,843)
SHAREHOLDER TRANSACTIONS                              
Subscriptions:  Institutional Class   73,056,175    131,577,477    72,268,431    164,770,905    57,648,390    97,547,105 
   Advisor Class†   —    99,977    174,913    99,983    —    100,011 
   Premier Class   15,737,376    28,722,174    18,993,255    28,163,517    11,968,418    19,915,669 
   Retirement Class   52,443,030    78,073,448    49,774,550    71,069,309    35,334,484    60,053,565 
Reinvestments of distributions:  Institutional Class   —    9,862,982    —    12,730,333    —    5,478,622 
   Premier Class   —    2,668,706    —    2,610,055    —    1,920,087 
   Retirement Class   —    2,138,442    —    2,197,593    —    1,551,899 
Redemptions:  Institutional Class   (6,944,427)   (7,469,606)   (9,547,147)   (9,549,230)   (4,497,339)   (4,339,609)
   Premier Class   (2,503,118)   (3,884,639)   (2,179,147)   (3,491,468)   (1,416,554)   (3,331,441)
   Retirement Class   (10,890,106)   (10,666,254)   (11,172,947)   (11,020,838)   (6,484,018)   (8,457,513)
Net increase (decrease) from shareholder transactions   120,898,930    231,122,707    118,311,908    257,580,159    92,553,381    170,438,395 
Net increase (decrease) in net assets   152,473,542    208,442,312    158,686,192    226,324,528    115,971,051    155,764,096 
NET ASSETS                                 
Beginning of period      759,744,821    551,302,509    866,409,926    640,085,398    470,052,751    314,288,655 
End of period     $912,218,363   $759,744,821   $1,025,096,118   $866,409,926   $586,023,802   $470,052,751 
Undistributed net investment income (loss) included in net assets  $2,242,080   $898,527   $1,191,420   $466,559   $330,629   $138,710 
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   4,449,445    8,286,164    4,341,254    10,214,685    3,474,514    6,100,209 
   Advisor Class†   —    6,432    10,314    6,355    —    6,388 
   Premier Class   960,210    1,809,880    1,145,784    1,760,071    723,300    1,253,064 
   Retirement Class   3,212,625    4,975,962    3,001,289    4,461,382    2,143,481    3,767,865 
Shares reinvested:  Institutional Class   —    640,869    —    818,671    —    353,916 
   Premier Class   —    174,084    —    168,391    —    124,439 
   Retirement Class   —    139,950    —    142,147    —    100,904 
Shares redeemed:  Institutional Class   (424,520)   (473,528)   (575,150)   (599,056)   (270,589)   (271,587)
   Premier Class   (153,653)   (249,763)   (131,156)   (222,360)   (84,975)   (214,115)
   Retirement Class   (664,165)   (672,440)   (678,122)   (686,808)   (392,210)   (530,305)
Net increase (decrease) from shareholder transactions   7,379,942    14,637,610    7,114,213    16,063,478    5,593,521    10,690,778 

 

†Advisor Class commenced operations on December 4, 2015.

 

56 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements   See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 57
 
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
      November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016 
      (unaudited)       (unaudited)       (unaudited)     
OPERATIONS                                 
Net investment income (loss)  $73,144   $5,355,633   $3,599   $1,077,277   $1,988   $220,512 
Net realized gain (loss) from investments   (245,037)   1,384,911    (49,116)   (285,157)   (34,052)   34,165 
Net change in unrealized appreciation (depreciation) from affiliated investments   16,479,859    (9,993,308)   4,119,193    (1,358,577)   653,888    (498,168)
Net increase (decrease) in net assets from operations   16,307,966    (3,252,764)   4,073,676    (566,457)   621,824    (243,491)
DISTRIBUTIONS TO SHAREHOLDERS                              
From net investment income:  Institutional Class   —    (3,180,197)   —    (666,247)   —    (181,773)
   Advisor Class†   —    (208)   —    (208)   —    (211)
   Premier Class   —    (1,181,840)   —    (163,485)   —    (20,476)
   Retirement Class   —    (987,963)   —    (251,082)   —    (19,616)
From realized gains:  Institutional Class   —    (395,200)   —    (88,805)   —    (32,729)
   Advisor Class†   —    (26)   —    (28)   —    (38)
   Premier Class   —    (156,841)   —    (23,325)   —    (3,962)
   Retirement Class   —    (133,998)   —    (36,566)   —    (3,998)
Total distributions      —    (6,036,273)   —    (1,229,746)   —    (262,803)
SHAREHOLDER TRANSACTIONS                              
Subscriptions:  Institutional Class   39,128,742    67,264,523    15,990,393    22,341,521    2,287,160    1,658,218 
   Advisor Class†   181,217    100,026    —    100,029    —    100,019 
   Premier Class   9,888,914    17,499,872    3,973,434    5,219,651    139,604    43,033 
   Retirement Class   27,995,070    43,559,281    11,018,011    15,281,258    1,308,747    85,530 
Reinvestments of distributions:  Institutional Class   —    3,575,397    —    754,742    —    8,417 
   Premier Class   —    1,338,681    —    186,517    —    201 
   Retirement Class   —    1,121,961    —    287,362    —    413 
Redemptions:  Institutional Class   (3,609,894)   (3,812,227)   (1,799,359)   (12,819,825)   (877,539)   (329,013)
   Premier Class   (1,637,215)   (2,719,388)   (250,987)   (1,708,229)   (7,027)   (4,680)
   Retirement Class   (3,210,837)   (4,779,327)   (886,070)   (2,461,571)   (46,751)   (3,406)
Net increase (decrease) from shareholder transactions   68,735,997    123,148,799    28,045,422    27,181,455    2,804,194    1,558,732 
Net increase (decrease) in net assets   85,043,963    113,859,762    32,119,098    25,385,252    3,426,018    1,052,438 
NET ASSETS                                 
Beginning of period      321,895,819    208,036,057    75,114,839    49,729,587    11,738,006    10,685,568 
End of period     $406,939,782   $321,895,819   $107,233,937   $75,114,839   $15,164,024   $11,738,006 
Undistributed net investment income (loss) included in net assets  $134,793   $61,649   $15,354   $11,755   $4,742   $2,754 
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   2,356,040    4,211,121    1,209,071    1,766,421    224,000    170,722 
   Advisor Class†   10,714    6,392    —    8,040    —    10,435 
   Premier Class   597,730    1,105,296    300,315    413,241    13,627    4,508 
   Retirement Class   1,696,064    2,733,152    835,205    1,201,608    128,213    8,839 
Shares reinvested:  Institutional Class   —    231,118    —    61,361    —    889 
   Premier Class   —    86,815    —    15,176    —    21 
   Retirement Class   —    72,997    —    23,401    —    44 
Shares redeemed:  Institutional Class   (218,134)   (239,065)   (136,975)   (985,835)   (85,926)   (33,835)
   Premier Class   (97,786)   (175,236)   (18,911)   (134,233)   (681)   (491)
   Retirement Class   (194,283)   (301,343)   (66,915)   (193,882)   (4,531)   (359)
Net increase (decrease) from shareholder transactions   4,150,345    7,731,247    2,121,790    2,175,298    274,702    160,773 

 

†Advisor Class commenced operations on December 4, 2015.

 

58 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements   See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 59
 

Financial highlights

 

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     value,     investment     gain (loss )   (loss) from     Net     Net     dividends     value,           at end of                 investment     Portfolio  
    or year     beginning     income     on total     investment     investment     realized     and     end of     Total     period or year     Gross     Net     income     turnover  
    ended     of period     (loss )a   investments j   operations     income     gains     distributions     period     return     (in thousands )   expenses e   expenses e   (loss )   rate  
LIFECYCLE INDEX RETIREMENT INCOME FUND                                                                                          
Institutional Class:     11/30/16 #       $13.09          $0.06         $0.17       $0.23         $(0.06 )      $ —         $(0.06 )       $13.26       1.76 %b        $ 47,360       0.26 %c     0.01 %c     0.97 %c     15 %b
      5/31/16       13.35       0.24       (0.24 )     0.00 d     (0.24 )     (0.02 )     (0.26 )     13.09       0.10       39,882       0.31       0.02       1.88       41  
      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  
Advisor Class:     11/30/16 #     13.09       0.06       0.17       0.23       (0.06 )     —       (0.06 )     13.26       1.76 b     110       0.30 c     0.05 c     0.93 c     15 b
      5/31/16 ‡     13.07       0.07       0.14       0.21       (0.17 )     (0.02 )     (0.19 )     13.09       1.68 b     103       0.34 c     0.03 c     1.20 c     41  
Premier Class:     11/30/16 #     13.08       0.05       0.17       0.22       (0.05 )     —       (0.05 )     13.25       1.69 b     13,493       0.41 c     0.16 c     0.82 c     15 b
      5/31/16       13.34       0.24       (0.26 )     (0.02 )     (0.22 )     (0.02 )     (0.24 )     13.08       (0.05 )     12,694       0.46       0.17       1.87       41  
      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  
Retirement Class:     11/30/16 #     13.07       0.05       0.16       0.21       (0.05 )     —       (0.05 )     13.23       1.58 b     27,997       0.51 c     0.26 c     0.72 c     15 b
      5/31/16       13.33       0.21       (0.23 )     (0.02 )     (0.22 )     (0.02 )     (0.24 )     13.07       (0.11 )     22,078       0.61       0.27       1.65       41  
      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  
LIFECYCLE INDEX 2010 FUND                                                                                                    
Institutional Class:     11/30/16 #     13.76       0.07       0.20       0.27       —       —       —       14.03       1.96 b     170,514       0.16 c     0.01 c     0.94 c     6 b
      5/31/16       14.07       0.27       (0.29 )     (0.02 )     (0.26 )     (0.03 )     (0.29 )     13.76       (0.07 )     153,329       0.17       0.02       2.01       24  
      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  
Advisor Class:     11/30/16 #     13.77       0.06       0.20       0.26       —       —       —       14.03       1.89 b     105       0.18 c     0.02 c     0.92 c     6 b
      5/31/16 ‡     13.84       0.08       0.14       0.22       (0.26 )     (0.03 )     (0.29 )     13.77       1.65 b     103       0.20 c     0.03 c     1.19 c     24  
Premier Class:     11/30/16 #     13.73       0.06       0.19       0.25       —       —       —       13.98       1.82 b     29,091       0.31 c     0.16 c     0.79 c     6 b
      5/31/16       14.04       0.25       (0.29 )     (0.04 )     (0.24 )     (0.03 )     (0.27 )     13.73       (0.22 )     26,787       0.32       0.17       1.86       24  
      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  
Retirement Class:     11/30/16 #     13.66       0.05       0.19       0.24       —       —       —       13.90       1.76 b     60,552       0.41 c     0.26 c     0.69 c     6 b
      5/31/16       13.97       0.23       (0.28 )     (0.05 )     (0.23 )     (0.03 )     (0.26 )     13.66       (0.30 )     50,981       0.47       0.27       1.74       24  
      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  

 

60 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual 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   value,    investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year   beginning   income   on total   investment   investment   realized   and   end of   Total   period or year   Gross   Net   income   turnover 
   ended   of period   (loss)a   investmentsj   operations   income   gains   distributions   period   return   (in thousands)  expensese  expensese  (loss)  rate 
LIFECYCLE INDEX 2015 FUND                                                              
Institutional Class:   11/30/16#     $14.20      $0.06       $ 0.26       $ 0.32      $    —      $    —      $    —      $14.52    2.25%b     $288,228    0.14%c   0.01%c   0.89%c   7%b
    5/31/16    14.57    0.29    (0.34)   (0.05)   (0.28)   (0.04)   (0.32)   14.20    (0.32)   263,164    0.15    0.03    2.05    22 
    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 
Advisor Class:   11/30/16#   14.21    0.06    0.25    0.31    —    —    —    14.52    2.18b   105    0.15c   0.03c   0.87c   7b
    5/31/16‡   14.31    0.08    0.13    0.21    (0.27)   (0.04)   (0.31)   14.21    1.55b   103    0.17c   0.04c   1.16c   22 
Premier Class:   11/30/16#   14.15    0.05    0.25    0.30    —    —    —    14.45    2.12b   63,432    0.29c   0.16c   0.74c   7b
    5/31/16    14.52    0.27    (0.35)   (0.08)   (0.25)   (0.04)   (0.29)   14.15    (0.47)   61,129    0.30    0.18    1.91    22 
    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 
Retirement Class:   11/30/16#   14.11    0.05    0.24    0.29    —    —    —    14.40    2.06b   100,065    0.39c   0.26c   0.64c   7b
    5/31/16    14.48    0.24    (0.33)   (0.09)   (0.24)   (0.04)   (0.28)   14.11    (0.56)   87,677    0.45    0.28    1.75    22 
    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 
LIFECYCLE INDEX 2020 FUND                                                              
Institutional Class:   11/30/16#   14.70    0.06    0.32    0.38    —    —    —    15.08    2.59b   515,381    0.13c   0.02c   0.79c   4b
    5/31/16    15.15    0.30    (0.43)   (0.13)   (0.29)   (0.03)   (0.32)   14.70    (0.81)   431,790    0.13    0.04    2.08    15 
    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 
Advisor Class:   11/30/16#   14.70    0.06    0.32    0.38    —    —    —    15.08    2.59b   213    0.14c   0.04c   0.78c   4b
    5/31/16‡   14.83    0.08    0.10    0.18    (0.28)   (0.03)   (0.31)   14.70    1.32b   103    0.16c   0.05c   1.09c   15 
Premier Class:   11/30/16#   14.64    0.05    0.32    0.37    —    —    —    15.01    2.53b   151,209    0.28c   0.17c   0.64c   4b
    5/31/16    15.09    0.28    (0.43)   (0.15)   (0.27)   (0.03)   (0.30)   14.64    (0.95)   135,778    0.28    0.19    1.97    15 
    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 
Retirement Class:   11/30/16#   14.60    0.04    0.32    0.36    —    —    —    14.96    2.47b   219,364    0.38c   0.27c   0.54c   4b
    5/31/16    15.04    0.26    (0.41)   (0.15)   (0.26)   (0.03)   (0.29)   14.60    (0.96)   172,443    0.43    0.29    1.84    15 
    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 

 

62 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual 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   value,    investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year   beginning   income   on total   investment   investment   realized   and   end of   Total   period or year   Gross   Net   income   turnover 
   ended   of period   (loss)a  investmentsj   operations   income   gains   distributions   period   return   (in thousands)  expensese  expensese  (loss)  rate 
LIFECYCLE INDEX 2025 FUND                                                              
Institutional Class:   11/30/16#     $15.14      $0.05      $ 0.42      $ 0.47      $    —      $    —      $    —      $15.61    3.10%b     $ 533,297    0.13%c   0.02%c   0.68%c   4%b
    5/31/16    15.69    0.32    (0.53)   (0.21)   (0.31)   (0.03)   (0.34)   15.14    (1.26)   449,137    0.13    0.04    2.15    9 
    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 
Advisor Class:   11/30/16#   15.14    0.05    0.41    0.46    —    —    —    15.60    3.04b   106    0.14c   0.04c   0.66c   4b
    5/31/16‡   15.32    0.07    0.08    0.15    (0.30)   (0.03)   (0.33)   15.14    1.11b   103    0.16c   0.05c   1.01c   9 
Premier Class:   11/30/16#   15.09    0.04    0.41    0.45    —    —    —    15.54    2.98b   159,580    0.28c   0.17c   0.53c   4b
    5/31/16    15.63    0.30    (0.52)   (0.22)   (0.29)   (0.03)   (0.32)   15.09    (1.34)   142,200    0.28    0.19    2.01    9 
    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 
Retirement Class:   11/30/16#   15.04    0.03    0.41    0.44    —    —    —    15.48    2.93b   221,754    0.38c   0.27c   0.43c   4b
    5/31/16    15.58    0.27    (0.50)   (0.23)   (0.28)   (0.03)   (0.31)   15.04    (1.41)   170,093    0.43    0.29    1.86    9 
    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 
LIFECYCLE INDEX 2030 FUND                                                              
Institutional Class:   11/30/16#   15.60    0.04    0.51    0.55    —    —    —    16.15    3.53b   573,929    0.13c   0.03c   0.56c   3b
    5/31/16    16.25    0.34    (0.62)   (0.28)   (0.33)   (0.04)   (0.37)   15.60    (1.67)   487,539    0.13    0.05    2.19    7 
    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 
Advisor Class:   11/30/16#   15.60    0.04    0.50    0.54    —    —    —    16.14    3.46b   107    0.14c   0.05c   0.54c   3b
    5/31/16‡   15.83    0.07    0.06    0.13    (0.32)   (0.04)   (0.36)   15.60    0.93b   103    0.16c   0.07c   0.93c   7 
Premier Class:   11/30/16#   15.54    0.03    0.50    0.53    —    —    —    16.07    3.41b   170,493    0.28c   0.18c   0.41c   3b
    5/31/16    16.19    0.32    (0.63)   (0.31)   (0.30)   (0.04)   (0.34)   15.54    (1.82)   152,863    0.28    0.20    2.06    7 
    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 
Retirement Class:   11/30/16#   15.48    0.02    0.51    0.53    —    —    —    16.01    3.42b   223,626    0.38c   0.28c   0.31c   3b
    5/31/16    16.13    0.29    (0.61)   (0.32)   (0.29)   (0.04)   (0.33)   15.48    (1.89)   154,906    0.43    0.30    1.93    7 
    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 

 

64 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual 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   value,   investment   gain (loss)   (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year   beginning   income   on total   investment   investment   realized   and   end of   Total   period or year   Gross   Net   income   turnover 
   ended   of period   (loss)a  investmentsj  operations   income   gains   distributions   period   return   (in thousands)  expensese  expensese  (loss)  rate 
LIFECYCLE INDEX 2035 FUND
Institutional Class:   11/30/16#   $ 16.01    $ 0.03    $ 0.61    $ 0.64    $    —    $    —    $    —    $ 16.65    4.00%b   $575,644    0.13%c   0.04%c   0.39%c   2%b
    5/31/16    16.77    0.34    (0.72)   (0.38)   (0.34)   (0.04)   (0.38)   16.01    (2.18)   489,103    0.13    0.06    2.19    6 
    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 
Advisor Class:   11/30/16#   16.00    0.03    0.61    0.64    —    —    —    16.64    4.00b   107    0.14c   0.05c   0.38c   2b
    5/31/16‡   16.29    0.06    0.02    0.08    (0.33)   (0.04)   (0.37)   16.00    0.63b   103    0.16c   0.07c   0.78c   6 
Premier Class:   11/30/16#   15.94    0.02    0.61    0.63    —    —    —    16.57    3.95b   149,987    0.28c   0.19c   0.24c   2b
    5/31/16    16.71    0.32    (0.74)   (0.42)   (0.31)   (0.04)   (0.35)   15.94    (2.39)   131,478    0.28    0.21    2.06    6 
    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 
Retirement Class:   11/30/16#   15.88    0.01    0.61    0.62    —    —    —    16.50    3.90b   186,481    0.38c   0.29c   0.15c   2b
    5/31/16    16.66    0.30    (0.73)   (0.43)   (0.31)   (0.04)   (0.35)   15.88    (2.51)   139,061    0.44    0.31    1.94    6 
    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 
LIFECYCLE INDEX 2040 FUND
Institutional Class:   11/30/16#   16.19    0.02    0.71    0.73    —    —    —    16.92    4.51b   698,897    0.13c   0.04c   0.22c   2b
    5/31/16    17.08    0.35    (0.84)   (0.49)   (0.35)   (0.05)   (0.40)   16.19    (2.80)   607,811    0.13    0.06    2.20    4 
    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 
Advisor Class:   11/30/16#   16.19    0.02    0.71    0.73    —    —    —    16.92    4.51b   282    0.14c   0.06c   0.20c   2b
    5/31/16‡   16.54    0.05    (0.01)   0.04    (0.34)   (0.05)   (0.39)   16.19    0.36 b   103    0.16c   0.08c   0.63c   4 
Premier Class:   11/30/16#   16.12    0.01    0.71    0.72    —    —    —    16.84    4.47b   147,767    0.28c   0.19c   0.07c   2b
    5/31/16    17.01    0.33    (0.85)   (0.52)   (0.32)   (0.05)   (0.37)   16.12    (2.95)   125,148    0.28    0.21    2.07    4 
    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 
Retirement Class:   11/30/16#   16.07    (0.00)d   0.71    0.71    —    —    —    16.78    4.42b   178,151    0.38c   0.29c   (0.03)c   2b
    5/31/16    16.96    0.31    (0.84)   (0.53)   (0.31)   (0.05)   (0.36)   16.07    (3.02)   133,347    0.43    0.31    1.94    4 
    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 

 

66 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 67
 
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   value,   investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year   beginning   income   on total   investment   investment   realized   and   end of   Total   period or year   Gross   Net   income   turnover 
   ended   of period   (loss )a  investmentsj   operations   income   gains   distributions   period   return   (in thousands)  expensese  expensese  (loss)  rate 
LIFECYCLE INDEX 2045 FUND
Institutional Class:   11/30/16#   $ 16.13    $ 0.01    $ 0.74    $ 0.75    $    —    $    —    $    —    $ 16.88    4.65%b   $ 346,837    0.14%c   0.04%c   0.15%c   2%b
    5/31/16    17.00    0.35    (0.83)   (0.48)   (0.35)   (0.04)   (0.39)   16.13    (2.73)   279,626    0.15    0.06    2.20    8 
    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 
Advisor Class:   11/30/16#   16.12    0.01    0.75    0.76    —    —    —    16.88    4.71b   108    0.15c   0.06c   0.14c   2b
    5/31/16‡   16.46    0.04    0.00    0.04    (0.34)   (0.04)   (0.38)   16.12    0.38b   103    0.17c   0.08c   0.59c   8 
Premier Class:   11/30/16#   16.06    0.00d   0.75    0.75    —    —    —    16.81    4.67b   108,482    0.29c   0.19c   0.00c   2b
    5/31/16    16.94    0.33    (0.85)   (0.52)   (0.32)   (0.04)   (0.36)   16.06    (2.94)   93,446    0.30    0.21    2.06    8 
    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 
Retirement Class:   11/30/16#   16.00    (0.01)   0.74    0.73    —    —    —    16.73    4.56b   130,597    0.39c   0.29c   (0.09)c   2b
    5/31/16    16.88    0.30    (0.83)   (0.53)   (0.31)   (0.04)   (0.35)   16.00    (3.00)   96,878    0.45    0.31    1.90    8 
    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 
LIFECYCLE INDEX 2050 FUND
Institutional Class:   11/30/16#   16.13    0.01    0.76    0.77    —    —    —    16.90    4.77b   229,342    0.15c   0.04c   0.13c   2b
    5/31/16    16.99    0.35    (0.83)   (0.48)   (0.34)   (0.04)   (0.38)   16.13    (2.69)   184,432    0.16    0.06    2.18    10 
    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)   (0.00)d   (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 
Advisor Class:   11/30/16#   16.13    0.01    0.76    0.77    —    —    —    16.90    4.77b   289    0.17c   0.06c   0.11c   2b
    5/31/16‡   16.45    0.04    0.02    0.06    (0.34)   (0.04)   (0.38)   16.13    0.49b   103    0.19c   0.07c   0.57c   10 
Premier Class:   11/30/16#   16.06    (0.00)d   0.76    0.76    —    —    —    16.82    4.73b   79,392    0.30c   0.19c   (0.02)c   2b
    5/31/16    16.92    0.32    (0.82)   (0.50)   (0.32)   (0.04)   (0.36)   16.06    (2.84)   67,811    0.31    0.21    2.04    10 
    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)   (0.00)d   (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 
Retirement Class:   11/30/16#   16.00    (0.01)   0.76    0.75    —    —    —    16.75    4.69b   97,916    0.40c   0.29c   (0.12)c   2b
    5/31/16    16.86    0.30    (0.81)   (0.51)   (0.31)   (0.04)   (0.35)   16.00    (2.89)   69,550    0.46    0.31    1.93    10 
    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)   (0.00)d   (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 

 

68 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 69
 
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   value,    investment   gain (loss)   (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year   beginning   income   on total   investment   investment   realized   and   end of   Total   period or year   Gross   Net   income   turnover 
   ended   of period   (loss)a  investmentsj  operations   income   gains   distributions   period   return   (in thousands)  expensese  expensese  (loss)  rate 
LIFECYCLE INDEX 2055 FUND
Institutional Class:   11/30/16#   $ 12.84    $ 0.01    $ 0.61    $ 0.62    $    —    $    —    $    —    $ 13.46    4.83%b   $ 60,002    0.26%c   0.04%c   0.10%c   3%b
    5/31/16    13.51    0.25    (0.61)   (0.36)   (0.27)   (0.04)   (0.31)   12.84    (2.56)   43,460    0.33    0.06    1.97    36 
    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 
Advisor Class:   11/30/16#   12.83    0.01    0.61    0.62    —    —    —    13.45    4.83b   108    0.27c   0.06c   0.08c   3b
    5/31/16‡   13.08    0.03    0.03    0.06    (0.27)   (0.04)   (0.31)   12.83    0.55b   103    0.37c   0.07c   0.55c   36 
Premier Class:   11/30/16#   12.82    (0.00)d   0.61    0.61    —    —    —    13.43    4.76b   15,389    0.41c   0.19c   (0.05)c   3b
    5/31/16    13.49    0.24    (0.61)   (0.37)   (0.26)   (0.04)   (0.30)   12.82    (2.71)   11,080    0.48    0.21    1.88    36 
    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 
Retirement Class:   11/30/16#   12.79    (0.01)   0.62    0.61    —    —    —    13.40    4.77b   31,735    0.51c   0.29c   (0.15)c   3b
    5/31/16    13.48    0.23    (0.63)   (0.40)   (0.25)   (0.04)   (0.29)   12.79    (2.90)   20,472    0.64    0.31    1.84    36 
    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 
LIFECYCLE INDEX 2060 FUND
Institutional Class:   11/30/16#   9.89    0.00d   0.49    0.49    —    —    —    10.38    4.95b   11,391    1.10c   0.04c   0.07c   16b
    5/31/16    10.41    0.21    (0.48)   (0.27)   (0.21)   (0.04)   (0.25)   9.89    (2.46)   9,488    1.20    0.06    2.12    21 
    5/31/15^   10.00    0.21    0.41    0.62    (0.21)   —    (0.21)   10.41    6.31b   8,556    1.65c   0.08c   3.06c   6b
Advisor Class:   11/30/16#   9.89    0.00d   0.49    0.49    —    —    —    10.38    4.95b   108    1.10c   0.06c   0.05c   16b
    5/31/16‡   10.09    0.02    0.03    0.05    (0.21)   (0.04)   (0.25)   9.89    0.61b   103    1.29c   0.07c   0.53c   21 
Premier Class:   11/30/16#   9.88    (0.00)d   0.48    0.48    —    —    —    10.36    4.86b   1,234    1.24c   0.19c   (0.07)c   16b
    5/31/16    10.41    0.20    (0.49)   (0.29)   (0.20)   (0.04)   (0.24)   9.88    (2.71)   1,049    1.35    0.21    2.02    21 
    5/31/15^   10.00    0.20    0.42    0.62    (0.21)   —    (0.21)   10.41    6.26b   1,062    1.97c   0.23c   2.92c   6b
Retirement Class:   11/30/16#   9.88    (0.01)   0.48    0.47    —    —    —    10.35    4.76b   2,431    1.37c   0.29c   (0.18)c   16b
    5/31/16    10.40    0.19    (0.48)   (0.29)   (0.19)   (0.04)   (0.23)   9.88    (2.72)   1,098    1.51    0.31    1.91    21 
    5/31/15^   10.00    0.19    0.41    0.60    (0.20)   —    (0.20)   10.40    6.14b   1,067    2.12c   0.33c   2.82c   6b

 

70 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 71
 
Financial highlights concluded

 

TIAA-CREF Lifecycle Index Funds

 

# Unaudited
‡ Advisor Class commenced operations on December 4, 2015.
^ The Fund commenced operations on September 26, 2014.
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.

 

72 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Notes to financial statements (unaudited)

 

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.

 

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, LLC (“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. Prior to October 1, 2016, Teachers Advisors, LLC was named Teachers Advisors, Inc. The Funds offer Institutional, Advisor, 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.

 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 73
 

Notes to financial statements (unaudited)

 

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 being 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.

 

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.

 

New rule issuances: In October 2016, the Commission issued Final Rule Release No. 33-10231, Investment Company Reporting Modernization. This final rule modernizes investment company reporting by requiring the filing of new forms N-PORT and N-CEN, and amends Regulation S-X disclosures related to derivatives and other disclosures in the financial statements and other filings. The requirements of this final rule in relation to forms N-PORT and N-CEN must be adopted by June 1, 2018 while the amended disclosures must be adopted by August 1, 2017. Management is currently assessing the impact of this rule to the Funds’ financial statements and other filings.

 

74 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

In October 2016, the Commission issued Final Rule Release No. 33-10233, Investment Company Liquidity Risk Management Programs. This final rule requires funds to establish a liquidity risk management program and enhances disclosures regarding funds liquidity. The requirements of this final rule must be adopted by December 1, 2018. Management is currently assessing the impact of this rule to the Funds’ financial statements and other filings.

 

In October 2016, the Commission issued Final Rule Release No. 33-10234, Investment Company Swing Pricing. This final rule permits certain funds to use swing pricing during periods of heavy redemptions and requires certain disclosures regarding the use of swing pricing in forms filed with the Commission. Management may elect to adopt the provisions of this final rule by November 19, 2018. Management is currently assessing the impact of this rule to the Funds’ financial statements and other filings.

 

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.

 

Certain portfolio investments that are measured at fair value using the NAV per share practical expedient are not categorized within the fair value hierarchy. These investments will be disclosed at their fair value to allow reconciliation back to the Statements of Assets and Liabilities. As of November 30, 2016, no investments were valued utilizing the practical expedient.

 

A description of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value follows:

 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 75
 

Notes to financial statements (unaudited)

 

Investments in registered investment companies: These investments are valued at their NAV 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 period ended November 30, 2016, there were no transfers between levels by the Funds.

 

As of November 30, 2016, 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: 0.10% for the Retirement Income Fund, the 2010 Fund, and the 2015 Fund; 0.09% for the 2020 Fund and the 2025 Fund; 0.08% for the 2030 Fund and the 2035 Fund; and 0.07% for the 2040, 2045, 2050, 2055 and 2060 Funds. These waivers will remain in effect through September 30, 2017, unless changed with the approval of the Board. Prior to October 1, 2016, Advisors had contractually agreed to waive a portion of certain Funds’ management fees equal to, on an annual basis, the following percentages of the average daily net assets of each Fund: 0.09% for the Retirement Income Fund and the 2010 Fund; 0.08% for the 2015 Fund; 0.07% for the 2020 Fund and the 2025 Fund; 0.06% for the 2030 Fund, and 0.05% for the 2035, 2040, 2045, 2050, 2055 and 2060 Funds. The Funds have entered into an Administrative Service Agreement with Advisors under which the Funds pay Advisors for its cost 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. However, TPIS has agreed not to seek any reimbursements under the distribution Rule 12b-1 plan from the Retirement Class and the plan is suspended through September 30, 2017. This agreement may be terminated before this date with the approval of the Board.

 

76 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index 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: (i) 0.00% of average daily net assets for Institutional Class shares of the Retirement Income Fund, the 2010 Fund, and the 2015 Fund; 0.01% of average daily net assets for Institutional Class shares of the 2020 Fund and 2025 Fund; 0.02% of average daily net assets for Institutional Class shares of the 2030 Fund and the 2035 Fund; 0.03% of average daily net assets for Institutional Class shares of the 2040 Fund and the 2045 Fund; 0.03% of average daily net assets for Institutional Class shares of the 2040, 2045, 2050, 2055, and 2060 Funds; (ii) 0.15% of average daily net assets for Advisor Class shares of the Retirement Income Fund, the 2010 Fund and the 2015 Fund; 0.16% of average daily net assets for Advisor Class shares of the 2020 Fund and 2025 Fund; 0.17% of average daily net assets for Advisor Class shares of the 2030 Fund and 2035 Fund; 0.18% of average daily net assets for Advisor Class shares of the 2040, 2045, 2050, 2055 and 2060 Funds; (iii) 0.15% of average daily net assets for Premier Class shares of the Retirement Income Fund, the 2010 Fund and the 2015 Fund; 0.16% of average daily net assets for Premier Class shares of the 2020 Fund and 2025 Fund; 0.17% of average daily net assets for Premier Class shares of the 2030 Fund and 2035 Fund; 0.18% of average daily net assets for Premier Class shares of the 2040, 2045, 2050, 2055 and 2060 Funds; and (iv) 0.25% of average daily net assets for Retirement Class shares of the Retirement Income Fund, the 2010 Fund and the 2015 Fund; 0.26% of average daily net assets for Retirement Class shares of the 2020 Fund and 2025 Fund; 0.27% of average daily net assets for Retirement Class shares of the 2030 Fund and 2035 Fund; 0.28% of average daily net assets for Retirement Class shares of the 2040, 2045, 2050, 2055 and 2060 Funds. The expense reimbursement arrangements will continue through at least September 30, 2017, unless changed with the approval of the Board.

 

Prior to October 1, 2016, 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) exceeded (i) 0.01%; 0.02%; 0.03%; 0.04% and 0.05% of average daily net assets for Institutional Class shares of the Retirement Income Fund and the 2010 Fund; the 2015 Fund; the 2020 Fund and the 2025 Fund; the 2030 Fund; and the 2035, 2040, 2045, 2050, 2055 and 2060 Funds, respectively; (ii) 0.16%; 0.17%; 0.18%; 0.19% and 0.20% of average daily net assets for Advisor Class shares of the Retirement Income Fund and the 2010 Fund; the 2015 Fund; the 2020 Fund and the 2025 Fund; the 2030 Fund; and the 2035, 2040, 2045, 2050, 2055 and 2060 Funds, respectively; (iii) 0.16%; 0.17%; 0.18%; 0.19% and 0.20% of average daily net assets for Premier Class shares of the Retirement Income Fund and the 2010 Fund; the 2015 Fund; the 2020 Fund and the 2025 Fund; the 2030 Fund; and the 2035, 2040, 2045, 2050, 2055 and 2060 Funds, respectively; and (iv) 0.26%; 0.27%; 0.28%; 0.29% and 0.30% of average daily net assets for Retirement Class shares of the Retirement Income Fund and the 2010 Fund; the 2015 Fund; the 2020 Fund and the 2025 Fund; the 2030 Fund; and the 2035, 2040, 2045, 2050, 2055 and 2060 Funds, respectively.

 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 77
 

Notes to financial statements (unaudited)

 

The Funds may purchase or sell investment securities in transactions with affiliated entities under procedures adopted by the Board, pursuant to the 1940 Act. These transactions are effected at market rates without incurring broker commissions. For the period ended November 30, 2016, the Funds engaged in the following security transactions with affiliated entities:

 

Fund  Purchases   Sales   Realized
gain (loss		)
Lifecycle Index Retirement Income  $—   $809,167   $(1,029)
Lifecycle Index 2060   170,337    290,737    (196)

 

The following is the percentage of the Funds’ shares owned by TIAA as of November 30, 2016:

 

Fund TIAA
Lifecycle Index 2060 71%

 

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, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle Index Retirement Income Fund                          
TIAA-CREF Bond Index  $29,087,829   $10,039,736   $3,097,153   $(44,909)  $378,128   $35,167,089 
TIAA-CREF Emerging Markets Equity Index   1,963,812    849,530    348,274    (35,738)   —    2,639,949 
TIAA-CREF Equity Index   20,539,495    6,452,055    3,238,570    7,284    —    25,343,741 
TIAA-CREF Inflation-Linked Bond   7,257,466    2,423,329    844,750    (1,545)   —    8,852,282 
TIAA-CREF International Equity Index   6,715,631    2,246,857    941,168    (65,327)   —    7,955,089 
TIAA-CREF Short-Term Bond Index   7,265,072    2,478,185    831,966    (2,479)   43,003    8,871,398 
   $72,829,305   $24,489,692   $9,301,881   $(142,714)  $421,131   $88,829,548 
Lifecycle Index 2010 Fund                              
TIAA-CREF Bond Index  $90,165,261   $17,848,377   $4,631,275   $(17,772)  $1,065,159   $101,088,265 
TIAA-CREF Emerging Markets Equity Index   6,855,666    1,622,234    650,959    (75,878)   —    8,428,245 
TIAA-CREF Equity Index   71,578,111    11,182,420    7,020,480    74,774    —    80,925,337 
TIAA-CREF Inflation-Linked Bond   19,195,274    3,820,642    893,330    (3,469)   —    22,168,734 
TIAA-CREF International Equity Index   23,444,238    3,845,621    1,732,282    (141,996)   —    25,393,142 
TIAA-CREF Short-Term Bond Index   19,218,328    3,966,117    871,822    (1,952)   104,322    22,220,085 
   $230,456,878   $42,285,411   $15,800,148   $(166,293)  $1,169,481   $260,223,808 

 

78 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle Index 2015 Fund                              
TIAA-CREF Bond Index  $156,310,603   $28,491,872   $9,939,052   $(22,167)  $1,839,022   $170,991,387 
TIAA-CREF Emerging Markets Equity Index   13,575,201    3,150,795    1,632,844    (217,835)   —    16,306,171 
TIAA-CREF Equity Index   141,893,007    18,168,377    13,955,083    154,544    —    156,339,095 
TIAA-CREF Inflation-Linked Bond   25,966,224    5,001,805    1,562,893    (19,323)   —    29,475,758 
TIAA-CREF International Equity Index    46,422,800    6,439,124    3,450,666    (285,487)   —    49,109,053 
TIAA-CREF Short-Term Bond Index   26,000,037    5,297,430    1,637,639    (3,900)   141,077    29,535,834 
   $410,167,872   $66,549,403   $32,178,177   $(394,168)  $1,980,099   $451,757,298 
Lifecycle Index 2020 Fund                              
TIAA-CREF Bond Index  $254,026,081   $67,020,864   $6,568,121   $(59,473)  $3,134,287   $307,285,095 
TIAA-CREF Emerging Markets Equity Index   27,957,067    8,181,258    1,913,981    (278,239)   —    36,655,058 
TIAA-CREF Equity Index   292,352,640    54,062,884    17,332,119    142,235    —    351,179,251 
TIAA-CREF Inflation-Linked Bond   31,796,956    8,962,928    677,460    (35,809)   —    40,126,740 
TIAA-CREF International Equity Index   95,572,145    19,668,134    4,131,830    (461,403)   —    110,379,265 
TIAA-CREF Short-Term Bond Index   31,840,580    9,090,645    551,247    (2,825)   181,860    40,204,601 
   $733,545,469   $166,986,713   $31,174,758   $(695,514)  $3,316,147   $885,830,010 
Lifecycle Index 2025 Fund                              
TIAA-CREF Bond Index  $230,909,631   $61,358,368   $5,763,627   $(15,904)  $2,850,659   $279,940,323 
TIAA-CREF Emerging Markets Equity Index   32,775,939    9,266,912    1,778,026    (279,102)   —    43,120,819 
TIAA-CREF Equity Index   342,720,953    60,989,898    16,663,155    64,043    —    412,885,892 
TIAA-CREF Inflation-Linked Bond   17,666,673    5,691,913    227,852    (14,298)   —    23,143,926 
TIAA-CREF International Equity Index   112,084,691    21,843,465    3,304,438    (390,474)   —    129,746,065 
TIAA-CREF Short-Term Bond Index   17,690,545    5,882,581    279,889    (1,248)   102,907    23,189,981 
   $753,848,432   $165,033,137   $28,016,987   $(636,983)  $2,953,566   $912,027,006 
Lifecycle Index 2030 Fund                              
TIAA-CREF Bond Index  $210,410,156   $58,124,631   $3,929,687   $(39,510)  $2,609,812   $258,495,841 
TIAA-CREF Emerging Markets Equity Index   38,599,071    10,899,239    1,412,897    (255,938)   —    51,394,232 
TIAA-CREF Equity Index   403,215,104    73,916,379    15,091,161    49,588    —    492,518,708 
TIAA-CREF Inflation-Linked Bond   2,799,692    2,572,661    27,126    (382)   —    5,327,801 
TIAA-CREF International Equity Index   131,981,816    26,922,669    3,048,973    (393,162)   —    154,776,099 
TIAA-CREF Short-Term Bond Index   2,803,142    2,585,213    23,564    (218)   19,990    5,338,435 
   $789,808,981   $175,020,792   $23,533,408   $(639,622)  $2,629,802   $967,851,116 

 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 79
 

Notes to financial statements (unaudited)

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales proceeds   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle Index 2035 Fund                              
TIAA-CREF Bond Index  $145,815,985   $42,035,469   $2,257,162   $(15,308)  $1,816,865   $181,316,897 
TIAA-CREF Emerging Markets Equity Index   40,838,406    10,845,437    1,496,679    (323,375)   —    53,730,119 
TIAA-CREF Equity Index   426,784,921    67,692,806    12,288,123    62,622    —    514,228,008 
TIAA-CREF International Equity Index   139,656,798    25,173,614    2,037,473    (265,858)   —    161,720,033 
   $753,096,110   $145,747,326   $18,079,437   $(541,919)  $1,816,865   $910,995,057 
Lifecycle Index 2040 Fund                              
TIAA-CREF Bond Index  $98,104,130   $29,586,887   $1,793,973   $(10,109)  $1,220,150   $122,991,215 
TIAA-CREF Emerging Markets Equity Index   51,352,658    12,155,746    1,596,256    (371,767)   —    66,322,847 
TIAA-CREF Equity Index   536,065,312    72,820,030    14,030,449    15,634    —    634,385,068 
TIAA-CREF International Equity Index   175,585,738    28,054,756    2,583,878    (354,470)   —    199,670,994 
   $861,107,838   $142,617,419   $20,004,556   $(720,712)  $1,220,150   $1,023,370,124 
Lifecycle Index 2045 Fund                              
TIAA-CREF Bond Index  $41,758,138   $12,716,262   $962,048   $(8,411)  $520,757   $52,277,436 
TIAA-CREF Emerging Markets Equity Index   28,612,793    9,049,817    877,963    (169,041)   —    39,231,532 
TIAA-CREF Equity Index   297,926,175    61,104,057    6,892,866    17,457    —    375,008,389 
TIAA-CREF International Equity Index   97,847,738    22,195,740    1,091,619    (167,278)   —    118,094,618 
   $466,144,844   $105,065,876   $9,824,496   $(327,273)  $520,757   $584,611,975 
Lifecycle Index 2050 Fund                              
TIAA-CREF Bond Index  $24,632,400   $8,035,187   $578,274   $(4,117)  $308,597   $31,347,003 
TIAA-CREF Emerging Markets Equity Index   19,881,810    6,610,018    523,481    (99,456)   —    27,645,965 
TIAA-CREF Equity Index   206,722,245    45,743,183    4,664,874    6,604    —    263,732,266 
TIAA-CREF International Equity Index   67,990,077    16,767,991    930,425    (148,068)   —    83,195,445 
   $319,226,532   $77,156,379   $6,697,054   $(245,037)  $308,597   $405,920,679 
Lifecycle Index 2055 Fund                              
TIAA-CREF Bond Index  $4,785,013   $2,475,926   $152,477   $(780)  $64,063   $6,940,736 
TIAA-CREF Emerging Markets Equity Index   4,672,155    2,422,192    104,765    (15,322)   —    7,377,941 
TIAA-CREF Equity Index   48,314,715    19,394,900    1,365,819    (13,733)   —    70,370,559 
TIAA-CREF International Equity Index   15,977,311    6,643,888    229,529    (25,536)   —    22,208,096 
   $73,749,194   $30,936,906   $1,852,590   $(55,371)  $64,063   $106,897,332 

 

80 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

Issue  Value at
May 31, 2016		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)  Dividend
income		   Value at
November 30,
2016		 
Lifecycle Index 2060 Fund                              
TIAA-CREF Bond Index  $608,945   $250,800   $49,486   $(182)  $7,498   $792,067 
TIAA-CREF Emerging Markets Equity Index   746,190    311,188    66,661    (10,968)   —    1,052,730 
TIAA-CREF Equity Index   7,792,325    2,310,628    626,463    (1,828)   —    10,072,261 
TIAA-CREF International Equity Index   2,551,187    829,741    187,374    (24,630)   —    3,170,242 
   $11,698,647   $3,702,357   $929,984   $(37,608)  $7,498   $15,087,300 

 

Note 4—investments

 

At November 30, 2016, 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  $83,618,429   $5,274,383   $(63,264)  $5,211,119 
Lifecycle Index 2010   234,146,835    26,180,680    (103,707)   26,076,973 
Lifecycle Index 2015   400,608,868    51,289,128    (140,698)   51,148,430 
Lifecycle Index 2020   801,900,687    86,050,382    (2,121,059)   83,929,323 
Lifecycle Index 2025   817,794,063    97,920,991    (3,688,048)   94,232,943 
Lifecycle Index 2030   857,825,784    115,212,721    (5,187,389)   110,025,332 
Lifecycle Index 2035   794,623,031    122,255,950    (5,883,924)   116,372,026 
Lifecycle Index 2040   873,183,813    156,886,188    (6,699,877)   150,186,311 
Lifecycle Index 2045   521,307,246    68,111,358    (4,806,629)   63,304,729 
Lifecycle Index 2050   363,380,062    45,810,775    (3,270,158)   42,540,617 
Lifecycle Index 2055   98,053,045    9,497,206    (652,919)   8,844,287 
Lifecycle Index 2060   14,649,158    741,987    (303,845)   438,142 

 

TIAA-CREF Lifecycle Index Funds  ■  2016 Semiannual Report 81
 

Notes to financial statements (unaudited)

 

Purchases and sales: Purchases and sales of securities (other than short-term instruments) for all of the Funds for the period ended November 30, 2016 were as follows:

 

Fund  Purchases   Sales 
Lifecycle Index Retirement Income  $27,877,823   $12,695,109 
Lifecycle Index 2010   42,285,411    15,800,148 
Lifecycle Index 2015   66,549,403    32,178,177 
Lifecycle Index 2020   166,986,713    31,174,758 
Lifecycle Index 2025   169,974,142    32,982,675 
Lifecycle Index 2030   175,020,792    23,533,408 
Lifecycle Index 2035   145,747,326    18,079,437 
Lifecycle Index 2040   142,617,419    20,004,556 
Lifecycle Index 2045   105,065,876    9,824,496 
Lifecycle Index 2050   77,156,379    6,697,054 
Lifecycle Index 2055   32,189,859    3,111,799 
Lifecycle Index 2060   4,914,594    2,145,778 

 

Note 5—distributions to shareholders and other tax items

 

The tax character of distributions paid to shareholders during the year ended May 31, 2016 was as follows:

 

Fund  Ordinary
income		   Long-term
capital gains		   Total 
Lifecycle Index Retirement Income  $1,064,661   $77,646   $1,142,307 
Lifecycle Index 2010   3,874,434    361,270    4,235,704 
Lifecycle Index 2015   7,054,097    715,820    7,769,917 
Lifecycle Index 2020   11,840,480    1,211,078    13,051,558 
Lifecycle Index 2025   12,425,861    1,338,725    13,764,586 
Lifecycle Index 2030   13,422,033    1,540,311    14,962,344 
Lifecycle Index 2035   13,088,793    1,581,570    14,670,363 
Lifecycle Index 2040   15,519,758    2,018,460    17,538,218 
Lifecycle Index 2045   8,021,037    929,806    8,950,843 
Lifecycle Index 2050   5,434,540    601,733    6,036,273 
Lifecycle Index 2055   1,091,665    138,081    1,229,746 
Lifecycle Index 2060   227,039    35,764    262,803 

 

The tax character of the fiscal year 2017 distributions will be determined at the end of the fiscal year.

 

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. The current facility was entered into on June 21, 2016 expiring on June 20, 2017, replacing the previous facility, which expired June 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

 

82 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

concluded

 

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 period ended November 30, 2016, 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  ■  2016 Semiannual Report 83
 

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 marks of MSCI or its affiliates and have been licensed for use for certain purposes by Teachers Advisors, LLC. 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

 

84 2016 Semiannual Report  ■  TIAA-CREF Lifecycle Index Funds
 

concluded

 

the determination or calculation of the equation by or the consideration into which 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 Index Funds  ■  2016 Semiannual Report 85
 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

How to reach us

 

TIAA website

 

TIAA.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.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 Global Asset Management provides investment advice and portfolio management services through TIAA and over a dozen affiliated registered investment advisers. TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, Members FINRA and SIPC, distribute securities products.

 

 

©2017 Teachers Insurance and Annuity Association of America—College Retirement Equities Fund,
730 Third Avenue, New York, NY 10017-3206

 
  730 Third Avenue
New York, NY 10017-3206		 PRESORTED STANDARD
U.S. POSTAGE
PAID
TIAA

 

 

 

Printed on paper containing recycled fiber

 

We’re fond of paper…in its original form.

Switch to eDelivery at

TIAA.org/eDelivery

C37166 A12028 (1/17)
 
  730 Third Avenue
New York, NY 10017-3206		  

 

 

 

Printed on paper containing recycled fiber
C37166 A12028 (1/17)
 
  730 Third Avenue
New York, NY 10017-3206		  

 

C37166 A12028 (1/17)

 

 

 

 

2016 Semiannual Report
 
November 30, 2016
 
TIAA-CREF Lifestyle Funds
 
of the TIAA-CREF Funds

 

  Contents  
     
  Understanding your Lifestyle Funds report 2
     
  Information for investors 3
     
  About the funds’ composite benchmarks 4
     
  Important information about expenses 5
     
  Investment results of the Lifestyle Funds 10
     
  Fund performance  
  Lifestyle Income Fund 12
  Lifestyle Conservative Fund 14
  Lifestyle Moderate Fund 16
  Lifestyle Growth Fund 17
  Lifestyle Aggressive Growth Fund 18
     
  Portfolios of investments 19
     
  Financial statements (unaudited)  
  Statements of assets and liabilities 24
  Statements of operations 26
  Statements of changes in net assets 28
  Financial highlights 32
  Notes to financial statements 42
     
  Additional information about index providers 51
     
  How to reach us Inside back cover
 

Understanding your Lifestyle Funds report

 

This semiannual 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 six months ended November 30, 2016. The report contains three main sections:

  • The fund performance section compares each fund’s investment returns with those of its composite benchmark and broad market indexes.
  • The portfolios of investments list the underlying TIAA-CREF Funds in which each fund had investments as of November 30, 2016.
  • 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.org, or call 800-842-2252 for the Institutional, Advisor, Premier and Retirement classes or 800-223-1200 for the Retail Class. We urge you to read the prospectus carefully before investing.

 

2 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds
 

Information for investors

 

Portfolio listings

 

The complete portfolios of investments for the Lifestyle Funds begin on page 19 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.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.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

 

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, 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, LLC (formerly known as Teachers Advisors, Inc.). The members of this team are responsible for the day-to-day investment management of the funds.

 

TIAA-CREF Lifestyle Funds  ■  2016 Semiannual 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 Bloomberg 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 Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index (short-term fixed income) 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 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 2016 Semiannual 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 (June 1, 2016—November 30, 2016).

 

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 may 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  ■  2016 Semiannual Report 5
 

Important information about expenses

 

Expense examples

 

Six months ended November 30, 2016

 

Lifestyle Funds  Beginning
account
value 		   Ending
account
value 		   Expenses paid
during period 		*  Effective
expenses paid
during period		†
Institutional Class  (6/1/16)  (11/30/16)  (6/1/16–11/30/16)  (6/1/16–11/30/16)
Income Fund actual return  $1,000.00   $1,012.39   $0.50   $2.17 
5% annual hypothetical return   1,000.00    1,024.57    0.51    2.18 
Conservative Fund actual return   1,000.00    1,020.04    0.51    2.33 
5% annual hypothetical return   1,000.00    1,024.57    0.51    2.33 
Moderate Fund actual return   1,000.00    1,028.19    0.51    2.54 
5% annual hypothetical return   1,000.00    1,024.57    0.51    2.54 
Growth Fund actual return   1,000.00    1,037.43    0.51    2.71 
5% annual hypothetical return   1,000.00    1,024.57    0.51    2.69 
Aggressive Growth Fund actual return   1,000.00    1,046.03    0.51    2.87 
5% annual hypothetical return   1,000.00    1,024.57    0.51    2.84 

 

* 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 183/365. There were 183 days in the six months ended November 30, 2016. 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; 0.46% for the Conservative Fund; 0.50% for the Moderate Fund; 0.53% for the Growth Fund; and 0.56% for the Aggressive Growth Fund.

 

Expense examples

 

Six months ended November 30, 2016

 

Lifestyle Funds   Beginning
account
value 		   Ending
account
value 		   Expenses paid
during period 		*  Effective
expenses paid
during period		†
Advisor Class  (6/1/16)  (11/30/16)  (6/1/16–11/30/16)  (6/1/16–11/30/16)
Income Fund actual return  $1,000.00   $1,012.37   $0.55   $2.22 
5% annual hypothetical return   1,000.00    1,024.52    0.56    2.23 

 

6 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds
 

continued

 

Lifestyle Funds  Beginning
account
value 		   Ending
account
value 		   Expenses paid
during period 		*  Effective
expenses paid
during period		†
Advisor Class  (6/1/16)  (11/30/16)  (6/1/16–11/30/16)  (6/1/16–11/30/16)
Conservative Fund actual return  $1,000.00   $1,020.88   $0.61   $2.43 
5% annual hypothetical return   1,000.00    1,024.47    0.61    2.43 
Moderate Fund actual return   1,000.00    1,028.15    0.71    2.75 
5% annual hypothetical return   1,000.00    1,024.37    0.71    2.74 
Growth Fund actual return   1,000.00    1,037.43    0.72    2.91 
5% annual hypothetical return   1,000.00    1,024.37    0.71    2.89 
Aggressive Growth Fund actual return   1,000.00    1,045.29    0.56    2.92 
5% annual hypothetical return   1,000.00    1,024.52    0.56    2.89 

 

* 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 183/365. There were 183 days in the six months ended November 30, 2016. 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 0.11% for the Income and Aggressive Growth Funds; 0.12% for the Conservative Fund; and 0.14% for the Moderate and Growth 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 0.44% for the Income Fund; 0.48% for the Conservative Fund; 0.54% for the Moderate Fund; and 0.57% for the Growth and Aggressive Growth Funds.

 

Expense examples

 

Six months ended November 30, 2016

 

Lifestyle Funds  Beginning
account
value 		   Ending
account
value 		   Expenses paid
during period 		*  Effective
expenses paid
during period		†
Premier Class  (6/1/16)  (11/30/16)  (6/1/16–11/30/16)  (6/1/16–11/30/16)
Income Fund actual return   $1,000.00    $1,010.72    $1.26    $2.92 
5% annual hypothetical return   1,000.00    1,023.82    1.27    2.94 
Conservative Fund actual return   1,000.00    1,019.85    1.27    3.09 
5% annual hypothetical return   1,000.00    1,023.82    1.27    3.09 
Moderate Fund actual return   1,000.00    1,028.35    1.27    3.31 
5% annual hypothetical return   1,000.00    1,023.82    1.27    3.29 

 

TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 7
 

Important information about expenses

 

Lifestyle Funds  Beginning
account
value 		   Ending
account
value 		   Expenses paid
during period 		*  Effective
expenses paid
during period		†
Premier Class  (6/1/16)  (11/30/16)  (6/1/16–11/30/16)  (6/1/16–11/30/16)
Growth Fund actual return   $1,000.00    $1,036.73    $1.28    $3.47 
5% annual hypothetical return   1,000.00    1,023.82    1.27    3.45 
Aggressive Growth Fund actual return   1,000.00    1,044.54    1.28    3.64 
5% annual hypothetical return   1,000.00    1,023.82    1.27    3.60 

 

* 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 183/365. There were 183 days in the six months ended November 30, 2016. 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; 0.61% for the Conservative Fund; 0.65% for the Moderate Fund; 0.68% for the Growth Fund; and 0.71% for the Aggressive Growth Fund.

 

Expense examples

 

Six months ended November 30, 2016

 

Lifestyle Funds  Beginning
account
value 		   Ending
account
value 		   Expenses paid
during period 		*  Effective
expenses paid
during period		†
Retirement Class  (6/1/16)  (11/30/16)  (6/1/16–11/30/16)  (6/1/16–11/30/16)
Income Fund actual return   $1,000.00    $1,010.94    $1.76    $3.43 
5% annual hypothetical return   1,000.00    1,023.31    1.78    3.45 
Conservative Fund actual return   1,000.00    1,019.60    1.77    3.59 
5% annual hypothetical return   1,000.00    1,023.31    1.78    3.60 
Moderate Fund actual return   1,000.00    1,027.69    1.78    3.81 
5% annual hypothetical return   1,000.00    1,023.31    1.78    3.80 
Growth Fund actual return   1,000.00    1,035.99    1.79    3.98 
5% annual hypothetical return   1,000.00    1,023.31    1.78    3.95 
Aggressive Growth Fund actual return   1,000.00    1,044.64    1.79    4.15 
5% annual hypothetical return   1,000.00    1,023.31    1.78    4.10 

 

* 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

 

8 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds
 

concluded

 

  by 183/365. There were 183 days in the six months ended November 30, 2016. 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; 0.71% for the Conservative Fund; 0.75% for the Moderate Fund; 0.78% for the Growth Fund; and 0.81% for the Aggressive Growth Fund.

 

Expense examples

 

Six months ended November 30, 2016

 

Lifestyle Funds  Beginning
account
value 		   Ending
account
value 		   Expenses paid
during period 		*  Effective
expenses paid
during period		†
Retail Class   (6/1/16)  (11/30/16)  (6/1/16–11/30/16)  (6/1/16–11/30/16)
Income Fund actual return   $1,000.00    $1,011.04    $1.92    $3.53 
5% annual hypothetical return   1,000.00    1,023.16    1.93    3.55 
Conservative Fund actual return   1,000.00    1,019.55    1.87    3.75 
5% annual hypothetical return   1,000.00    1,023.21    1.88    3.75 
Moderate Fund actual return   1,000.00    1,027.65    1.88    3.91 
5% annual hypothetical return   1,000.00    1,023.21    1.88    3.90 
Growth Fund actual return   1,000.00    1,036.04    1.99    4.19 
5% annual hypothetical return   1,000.00    1,023.11    1.98    4.15 
Aggressive Growth Fund actual return   1,000.00    1,043.93    2.20    4.51 
5% annual hypothetical return   1,000.00    1,022.91    2.18    4.46 

 

* 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 183/365. There were 183 days in the six months ended November 30, 2016. 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 Conservative and Moderate Funds; 0.38% for the Income Fund; 0.39% for the Growth Fund; and 0.43% 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; 0.74% for the Conservative Fund; 0.77% for the Moderate Fund; 0.82% for the Growth Fund; and 0.88% for the Aggressive Growth Fund.

 

TIAA-CREF Lifestyle Funds   ■  2016 Semiannual Report 9
 

Investment results of the Lifestyle Funds

 

Performance for the six months ended November 30, 2016

 

For the six-month period, three of the five TIAA-CREF Lifestyle Funds outperformed their composite benchmark indexes, and two trailed their benchmarks. Returns for the Institutional Class ranged from 1.24% for the Income Fund to 4.60% for the Aggressive Growth Fund. The tables on the following pages show returns for all share classes of the funds.

 

Global markets produce mixed results

 

The U.S. economy continued on a steady growth trajectory during the six months. Labor markets improved during the period, with the unemployment rate dipping below 5.0%. Meanwhile, the nation’s gross domestic product (GDP), which measures the value of all goods and services produced in the United States, rose at an annual rate of 3.5% during the third quarter of 2016, an increase from the 1.4% annual rate reported in the previous quarter. The Federal Reserve held its federal funds target rate unchanged at 0.25%–0.50% during the reporting period but suggested that a rate hike could occur in the near future.

The broad U.S. stock market, as measured by the Russell 3000® Index, gained 6.93% for the six months. Small caps, which reached double-digit gains, outperformed mid- and large-cap stocks. Value stocks topped their growth counterparts for the period. (Returns are based on Russell indexes.)

Foreign developed-market stocks declined during the period, while emerging-markets stocks showed renewed strength as oil prices recovered. The MSCI All Country World ex USA Index, which measures the performance of large- and mid-cap stocks in 45 developed- and emerging-market countries outside the United States, returned 1.36% in U.S.-dollar terms.

Within the U.S. fixed-income markets, returns were more muted, as investors were attracted to higher equity returns and grew concerned about the possibility of interest-rate increases. The broad domestic investment-grade fixed-rate bond market, as represented by the Bloomberg Barclays U.S. Aggregate Bond Index, returned –0.92% for the six months. Short-term bonds delivered a small positive return—the Bloomberg Barclays U.S. 1 –3 Year Government/Credit Bond Index rose 0.17%.

 

10 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds
 

U.S. equity market gains lead the funds higher

 

All five Lifestyle Funds and their benchmarks posted positive results for the six months. The funds were aided by the strength of U.S. stock and commodity prices through their investments in underlying TIAA-CREF Funds.

The Lifestyle Funds may invest in up to four sectors of the investment market: U.S. equity (stocks), international equity (foreign stocks), fixed income and short-term fixed income. The Lifestyle Funds pursue this strategy by investing in various underlying funds that, in turn, buy stocks, bonds and other securities in these market sectors.

For the six months, the Lifestyle Funds’ absolute returns—that is, without regard to the performance of their composite benchmarks—benefited most from gains in U.S. stocks. All of the underlying U.S. equity funds posted positive returns for the period. The Small-Cap Equity Fund performed best, followed by the Large-Cap Value Fund. With respect to foreign stocks, the Global Natural Resources Fund, which posted substantial double-digit gains, and the Emerging Markets Equity Fund, advanced. All of the other underlying international equity funds ended down. In the fixed-income category, the High-Yield Fund had the best performance in absolute terms. The Bond Plus Fund and the Bond Fund ended slightly up and down, respectively, while the Short-Term Bond Fund rose modestly. (All fund returns are for the Institutional Class.)

 

Bonds benefit relative performance

 

In terms of U.S. equity relative returns, the Large-Cap Growth Fund was the largest detractor from each of the five Lifestyle Funds. The Large-Cap Value Fund was the biggest contributor across all five funds.

In the international equity component, the International Equity Fund detracted most from each of the five funds and underperformed its benchmark. The International Opportunities Fund was also a sizable detractor. Conversely, the Global Natural Resources Fund contributed most to all five funds, substantially beating its benchmark.

In the fixed-income category, the Bond Plus Fund was the largest contributor across the funds—with the exception of the Aggressive Growth Fund, whose target allocation is 100% equities. The Short-Term Bond Fund and the Bond Fund were key contributors to the Income Fund and Conservative Fund and outperformed their respective benchmarks. (Performance of the Lifestyle Funds’ underlying funds can be found at TIAA.org/performance.)

 

TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 11
 

Lifestyle Income Fund

 

Performance as of November 30, 2016

 

      Total return  Average annual
total return
Lifestyle Income Fund  Inception date  6 months   1 year   since fund
inception		 
Institutional Class  12/9/2011   1.24%   2.88%   4.35%
Advisor Class  12/4/2015   1.24    2.83†   4.34†
Premier Class  12/9/2011   1.07    2.73    4.19 
Retirement Class  12/9/2011   1.09    2.60    4.08 
Retail Class  12/9/2011   1.10    2.59    4.05 
Lifestyle Income Fund Composite Index*  —   0.77    2.57‡   3.67‡
Broad market index                  
Bloomberg Barclays U.S. Aggregate Bond Index  —   –0.92    2.17    2.37‡
Russell 3000® Index  —   6.93    8.31    14.33‡

 

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.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 November 30, 2016, the Lifestyle Income Fund Composite Index consisted of: 40.0% Bloomberg Barclays U.S. Aggregate Bond Index; 40.0% Bloomberg 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.
† The performance shown for the Advisor Class that is prior to its inception date is based on the performance of the fund’s Institutional Class. The performance for these periods has not been restated to reflect the higher expenses of the Advisor Class. If those higher expenses had been reflected, the performance of the Advisor Class shown for these periods would have been lower.
‡ Performance is calculated from the inception date of the Institutional Class.

 

12 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds
 

Lifestyle Income Fund

 

Asset allocation

    % of net assets
as of 11/30/2016		 
Equity     
U.S. equity   14.6%
International equity   6.4 
Fixed income     
Fixed income   38.8 
Short-term fixed income   39.9 
Other assets & liabilities, net   0.3 
Total   100.0 

Target allocation

 


 

TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 13
 

Lifestyle Conservative Fund

 

Performance as of November 30, 2016

 

      Total return  Average annual
total return
Lifestyle Conservative Fund  Inception date  6 months   1 year   since fund
inception		 
Institutional Class  12/9/2011   2.00%   3.32%   6.39%
Advisor Class  12/4/2015   2.09    3.36†   6.39†
Premier Class  12/9/2011   1.99    3.23    6.23 
Retirement Class  12/9/2011   1.96    3.14    6.13 
Retail Class  12/9/2011   1.96    3.13    6.09 
Lifestyle Conservative Fund Composite Index*  —   1.79    3.57    5.74‡
Broad market index                  
Bloomberg Barclays U.S. Aggregate Bond Index  —   –0.92    2.17    2.37‡
Russell 3000® Index  —   6.93    8.31    14.33‡

 

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.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 November 30, 2016, the Lifestyle Conservative Fund Composite Index consisted of: 40.0% Bloomberg Barclays U.S. Aggregate Bond Index; 28.0% Russell 3000 Index; 20.0% Bloomberg 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.
† The performance shown for the Advisor Class that is prior to its inception date is based on the performance of the fund’s Institutional Class. The performance for these periods has not been restated to reflect the higher expenses of the Advisor Class. If those higher expenses had been reflected, the performance of the Advisor Class shown for these periods would have been lower.
‡ Performance is calculated from the inception date of the Institutional Class.

 

14 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds
 

Lifestyle Conservative Fund

 

Asset allocation

   % of net assets
as of 11/30/2016		 
Equity     
U.S. equity   28.9%
International equity   12.3 
Fixed income     
Fixed income   38.8 
Short-term fixed income   19.9 
Other assets & liabilities, net   0.1 
Total   100.0 

Target allocation

 


 

TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 15
 

Lifestyle Moderate Fund

 

Performance as of November 30, 2016

 

      Total return  Average annual
total return
Lifestyle Moderate Fund  Inception date  6 months   1 year   since fund
inception		 
Institutional Class  12/9/2011   2.82%   3.73%   8.41%
Advisor Class  12/4/2015   2.82    3.68†   8.40†
Premier Class  12/9/2011   2.83    3.75    8.27 
Retirement Class  12/9/2011   2.77    3.47    8.15 
Retail Class  12/9/2011   2.77    3.53    8.11 
Lifestyle Moderate Fund Composite Index*  —   2.81    4.52    7.80‡
Broad market index                  
Russell 3000® Index  —   6.93    8.31    14.33‡
Bloomberg Barclays U.S. Aggregate Bond Index  —   –0.92    2.17    2.37‡

 

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.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 November 30, 2016, the Lifestyle Moderate Fund Composite Index consisted of: 42.0% Russell 3000 Index; 40.0% Bloomberg 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.
† The performance shown for the Advisor Class that is prior to its inception date is based on the performance of the fund’s Institutional Class. The performance for these periods has not been restated to reflect the higher expenses of the Advisor Class. If those higher expenses had been reflected, the performance of the Advisor Class shown for these periods would have been lower.
‡ Performance is calculated from the inception date of the Institutional Class.

 

Asset allocation

   % of net assets
as of 11/30/2016		 
Equity     
U.S. equity   43.1%
International equity   18.2 
Fixed income   38.6 
Other assets & liabilities, net   0.1 
Total   100.0 

Target allocation

 


 

16 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds
 

Lifestyle Growth Fund

 

Performance as of November 30, 2016

 

      Total return  Average annual
total return
Lifestyle Growth Fund  Inception date  6 months   1 year   since fund
inception		 
Institutional Class  12/9/2011   3.74%   3.82%   9.88%
Advisor Class  12/4/2015   3.74    3.80†   9.88†
Premier Class  12/9/2011   3.67    3.58    9.70 
Retirement Class  12/9/2011   3.60    3.52    9.60 
Retail Class  12/9/2011   3.60    3.52    9.55 
Lifestyle Growth Fund Composite Index*  —   4.05    5.20    9.56‡
Broad market index                  
Russell 3000® Index  —   6.93    8.31    14.33‡
Bloomberg Barclays U.S. Aggregate Bond Index  —   –0.92    2.17    2.37‡

 

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.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 November 30, 2016, 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% Bloomberg 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.
† The performance shown for the Advisor Class that is prior to its inception date is based on the performance of the fund’s Institutional Class. The performance for these periods has not been restated to reflect the higher expenses of the Advisor Class. If those higher expenses had been reflected, the performance of the Advisor Class shown for these periods would have been lower.
‡ Performance is calculated from the inception date of the Institutional Class.

 

Asset allocation

   % of net assets
as of 11/30/2016		 
Equity     
U.S. equity   57.1%
International equity   24.0 
Fixed income   18.9 
Total   100.0 

Target allocation

 


 

TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 17
 

Lifestyle Aggressive Growth Fund

 

Performance as of November 30, 2016

 

      Total return  Average annual
total return
Lifestyle Aggressive                since fund 
Growth Fund  Inception date   6 months    1 year    inception 
Institutional Class  12/9/2011   4.60%   3.63%   11.32%
Advisor Class  12/4/2015   4.53    3.54†   11.30†
Premier Class  12/9/2011   4.45    3.47    11.16 
Retirement Class  12/9/2011   4.46    3.38    11.04 
Retail Class  12/9/2011   4.39    3.31    10.96 
Lifestyle Aggressive Growth Fund Composite Index*  —   5.28    5.81    11.29‡
Broad market index                  
Russell 3000® Index  —   6.93    8.31    14.33‡

 

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.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 November 30, 2016, 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.
† The performance shown for the Advisor Class that is prior to its inception date is based on the performance of the fund’s Institutional Class. The performance for these periods has not been restated to reflect the higher expenses of the Advisor Class. If those higher expenses had been reflected, the performance of the Advisor Class shown for these periods would have been lower.
‡ Performance is calculated from the inception date of the Institutional Class.

 

Asset allocation

   % of net assets
as of 11/30/2016		 
Equity     
U.S. equity   70.6%
International equity   29.4 
Total   100.0 

Target allocation

 

 


 

18 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds
 

Portfolio of investments (unaudited)

Lifestyle Income Fund  ■  November 30, 2016 

Shares    Company  Value    % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.7% (a)         
FIXED INCOME—38.8%       
 1,119,044   TIAA-CREF Bond Fund  $11,559,727    19.7%
 1,076,462   TIAA-CREF Bond Plus Fund   11,184,443    19.1 
 2,424   TIAA-CREF High-Yield Fund   23,347    0.0 
     TOTAL FIXED INCOME   22,767,517    38.8 
INTERNATIONAL EQUITY—6.4%       
 78,533   TIAA-CREF Emerging Markets Equity Fund   724,072    1.2 
 145,032   TIAA-CREF Enhanced International Equity Index Fund   977,518    1.7 
 6,438   TIAA-CREF Global Natural Resources Fund   56,781    0.1 
 108,722   TIAA-CREF International Equity Fund   1,103,532    1.9 
 86,911   TIAA-CREF International Opportunities Fund   873,457    1.5 
     TOTAL INTERNATIONAL EQUITY   3,735,360    6.4 
SHORT-TERM FIXED INCOME—39.9%       
 3,002   TIAA-CREF Money Market Fund   3,002    0.0 
 2,265,236   TIAA-CREF Short-Term Bond Fund   23,354,586    39.9 
     TOTAL SHORT-TERM FIXED INCOME   23,357,588    39.9 
U.S. EQUITY—14.6%       
 65,091   TIAA-CREF Enhanced Large-Cap Growth Index Fund   746,592    1.3 
 75,557   TIAA-CREF Enhanced Large-Cap Value Index Fund   770,685    1.3 
 150,880   TIAA-CREF Growth & Income Fund   1,837,717    3.1 
 129,586   TIAA-CREF Large-Cap Growth Fund   2,031,904    3.5 
 113,909   TIAA-CREF Large-Cap Value Fund   2,105,047    3.6 
 1,056   TIAA-CREF Mid-Cap Growth Fund   20,899    0.0 
 1,101   TIAA-CREF Mid-Cap Value Fund   26,008    0.0 
 36,825   TIAA-CREF Small-Cap Equity Fund   685,316    1.2 
 31,720   TIAA-CREF Small/Mid-Cap Equity Fund   334,326    0.6 
     TOTAL U.S. EQUITY   8,558,494    14.6 
     TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $57,741,396)   58,418,959    99.7 
                
     TOTAL PORTFOLIO   (Cost $57,741,396)   58,418,959    99.7 
     OTHER ASSETS & LIABILITIES, NET       173,262    0.3 
     NET ASSETS      $58,592,221    100.00%

 

 

 

(a) The Fund invests its assets in the Institutional Class shares of the affiliated TIAA-CREF Funds.

 

See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 19
 

Portfolio of investments (unaudited)

Lifestyle Conservative Fund  ■  November 30, 2016 

 Shares   Security   Value   % of net
assets		 
AFFILIATED INVESTMENT COMPANIES—99.9% (a)       
FIXED INCOME—38.8%       
 1,417,023   TIAA-CREF Bond Fund  $14,637,849    9.8%
 4,141,855   TIAA-CREF Bond Plus Fund   43,033,871    28.9 
 6,152   TIAA-CREF High-Yield Fund   59,246    0.1 
     TOTAL FIXED INCOME   57,730,966    38.8 
INTERNATIONAL EQUITY—12.3%       
 381,387   TIAA-CREF Emerging Markets Equity Fund   3,516,386    2.4 
 693,001   TIAA-CREF Enhanced International Equity Index Fund   4,670,828    3.1 
 15,451   TIAA-CREF Global Natural Resources Fund   136,281    0.1 
 550,748   TIAA-CREF International Equity Fund   5,590,095    3.7 
 440,972   TIAA-CREF International Opportunities Fund   4,431,768    3.0 
     TOTAL INTERNATIONAL EQUITY   18,345,358    12.3 
SHORT-TERM FIXED INCOME—19.9%       
 4,735   TIAA-CREF Money Market Fund   4,735    0.0 
 2,872,523   TIAA-CREF Short-Term Bond Fund   29,615,709    19.9 
     TOTAL SHORT-TERM FIXED INCOME   29,620,444    19.9 
U.S. EQUITY—28.9%       
 333,985   TIAA-CREF Enhanced Large-Cap Growth Index Fund   3,830,809    2.6 
 386,798   TIAA-CREF Enhanced Large-Cap Value Index Fund   3,945,341    2.6 
 766,577   TIAA-CREF Growth & Income Fund   9,336,907    6.3 
 657,139   TIAA-CREF Large-Cap Growth Fund   10,303,933    6.9 
 577,851   TIAA-CREF Large-Cap Value Fund   10,678,687    7.2 
 5,356   TIAA-CREF Mid-Cap Growth Fund   106,040    0.1 
 5,586   TIAA-CREF Mid-Cap Value Fund   131,998    0.1 
 163,177   TIAA-CREF Small-Cap Equity Fund   3,036,732    2.0 
 160,868   TIAA-CREF Small/Mid-Cap Equity Fund   1,695,544    1.1 
     TOTAL U.S. EQUITY   43,065,991    28.9 
     TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $145,826,594)   148,762,759    99.9 
                
     TOTAL PORTFOLIO   (Cost $145,826,594)   148,762,759    99.9 
     OTHER ASSETS & LIABILITIES, NET       198,275    0.1 
     NET ASSETS      $148,961,034    100.00%

 

 

 

(a) The Fund invests its assets in the Institutional Class shares of the affiliated TIAA-CREF Funds.

 

20 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements
 

Portfolio of investments (unaudited)

Lifestyle Moderate Fund  ■  November 30, 2016

 

 Shares   Security   Value   % of net
assets 		 
AFFILIATED INVESTMENT COMPANIES—99.9% (a)       
FIXED INCOME—38.6%  
 8,080,616   TIAA-CREF Bond Plus Fund  $83,957,597    38.6%
 8,973   TIAA-CREF High-Yield Fund   86,409    0.0 
     TOTAL FIXED INCOME   84,044,006    38.6 
INTERNATIONAL EQUITY—18.2%  
 799,174   TIAA-CREF Emerging Markets Equity Fund   7,368,388    3.4 
 1,479,065   TIAA-CREF Enhanced International Equity Index Fund   9,968,900    4.6 
 46,402   TIAA-CREF Global Natural Resources Fund   409,269    0.2 
 1,203,259   TIAA-CREF International Equity Fund   12,213,078    5.6 
 961,771   TIAA-CREF International Opportunities Fund   9,665,795    4.4 
     TOTAL INTERNATIONAL EQUITY   39,625,430    18.2 
SHORT-TERM FIXED INCOME—0.0%  
 6,364   TIAA-CREF Money Market Fund   6,364    0.0 
     TOTAL SHORT-TERM FIXED INCOME   6,364    0.0 
U.S. EQUITY—43.1%  
 730,545   TIAA-CREF Enhanced Large-Cap Growth Index Fund   8,379,348    3.8 
 847,827   TIAA-CREF Enhanced Large-Cap Value Index Fund   8,647,834    4.0 
 1,671,982   TIAA-CREF Growth & Income Fund   20,364,747    9.4 
 1,437,313   TIAA-CREF Large-Cap Growth Fund   22,537,075    10.4 
 1,263,764   TIAA-CREF Large-Cap Value Fund   23,354,363    10.7 
 11,688   TIAA-CREF Mid-Cap Growth Fund   231,423    0.1 
 12,152   TIAA-CREF Mid-Cap Value Fund   287,145    0.1 
 339,079   TIAA-CREF Small-Cap Equity Fund   6,310,265    2.9 
 349,887   TIAA-CREF Small/Mid-Cap Equity Fund   3,687,807    1.7 
     TOTAL U.S. EQUITY   93,800,007    43.1 
     TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $211,615,617)   217,475,807    99.9 
                
     TOTAL PORTFOLIO   (Cost $211,615,617)   217,475,807    99.9 
     OTHER ASSETS & LIABILITIES, NET       252,503    0.1 
     NET ASSETS      $217,728,310    100.00%

 

 

 

(a) The Fund invests its assets in the Institutional Class shares of the affiliated TIAA-CREF Funds.

 

See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 21
 

Portfolio of investments (unaudited)

Lifestyle Growth Fund  ■  November 30, 2016

 

 Shares   Security   Value   % of net
assets		 
AFFILIATED INVESTMENT COMPANIES—100.0% (a)  
FIXED INCOME—18.9%  
 1,584,716   TIAA-CREF Bond Plus Fund  $16,465,194    18.8%
 3,594   TIAA-CREF High-Yield Fund   34,612    0.1 
     TOTAL FIXED INCOME   16,499,806    18.9 
INTERNATIONAL EQUITY—24.0%  
 415,609   TIAA-CREF Emerging Markets Equity Fund   3,831,912    4.4 
 779,093   TIAA-CREF Enhanced International Equity Index Fund   5,251,089    6.0 
 28,154   TIAA-CREF Global Natural Resources Fund   248,321    0.3 
 641,524   TIAA-CREF International Equity Fund   6,511,466    7.4 
 512,511   TIAA-CREF International Opportunities Fund   5,150,740    5.9 
     TOTAL INTERNATIONAL EQUITY   20,993,528    24.0 
SHORT-TERM FIXED INCOME—0.0%  
 3,315   TIAA-CREF Money Market Fund   3,315    0.0 
     TOTAL SHORT-TERM FIXED INCOME   3,315    0.0 
U.S. EQUITY—57.1%  
 389,863   TIAA-CREF Enhanced Large-Cap Growth Index Fund   4,471,723    5.1 
 452,418   TIAA-CREF Enhanced Large-Cap Value Index Fund   4,614,661    5.3 
 892,769   TIAA-CREF Growth & Income Fund   10,873,923    12.4 
 766,033   TIAA-CREF Large-Cap Growth Fund   12,011,399    13.7 
 673,514   TIAA-CREF Large-Cap Value Fund   12,446,535    14.2 
 6,190   TIAA-CREF Mid-Cap Growth Fund   122,561    0.1 
 6,439   TIAA-CREF Mid-Cap Value Fund   152,163    0.2 
 176,012   TIAA-CREF Small-Cap Equity Fund   3,275,588    3.8 
 186,151   TIAA-CREF Small/Mid-Cap Equity Fund   1,962,031    2.3 
     TOTAL U.S. EQUITY   49,930,584    57.1 
     TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $82,293,025)   87,427,233    100.0 
                
     TOTAL PORTFOLIO   (Cost $82,293,025)   87,427,233    100.0 
     OTHER ASSETS & LIABILITIES, NET       18,926    0.0 
     NET ASSETS      $87,446,159    100.00%

 

 

 

(a) The Fund invests its assets in the Institutional Class shares of the affiliated TIAA-CREF Funds.

 

22 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements
 

Portfolio of investments (unaudited)

Lifestyle Aggressive Growth Fund  ■  November 30, 2016

 

 Shares   Security   Value   % of net
assets		 
AFFILIATED INVESTMENT COMPANIES—100.0% (a)  
INTERNATIONAL EQUITY—29.4%  
 280,382   TIAA-CREF Emerging Markets Equity Fund  $2,585,125    5.2%
 533,898   TIAA-CREF Enhanced International Equity Index Fund   3,598,475    7.2 
 21,180   TIAA-CREF Global Natural Resources Fund   186,812    0.4 
 453,889   TIAA-CREF International Equity Fund   4,606,973    9.3 
 363,156   TIAA-CREF International Opportunities Fund   3,649,723    7.3 
     TOTAL INTERNATIONAL EQUITY   14,627,108    29.4 
SHORT-TERM FIXED INCOME—0.0%  
 4,060   TIAA-CREF Money Market Fund   4,060    0.0 
     TOTAL SHORT-TERM FIXED INCOME   4,060    0.0 
U.S. EQUITY—70.6% 
 270,707   TIAA-CREF Enhanced Large-Cap Growth Index Fund   3,105,010    6.2 
 314,217   TIAA-CREF Enhanced Large-Cap Value Index Fund   3,205,017    6.4 
 630,570   TIAA-CREF Growth & Income Fund   7,680,341    15.4 
 541,752   TIAA-CREF Large-Cap Growth Fund   8,494,675    17.1 
 476,075   TIAA-CREF Large-Cap Value Fund   8,797,862    17.7 
 4,379   TIAA-CREF Mid-Cap Growth Fund   86,711    0.2 
 4,565   TIAA-CREF Mid-Cap Value Fund   107,864    0.2 
 122,629   TIAA-CREF Small-Cap Equity Fund   2,282,121    4.6 
 132,183   TIAA-CREF Small/Mid-Cap Equity Fund   1,393,211    2.8 
     TOTAL U.S. EQUITY   35,152,812    70.6 
     TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $44,202,119)   49,783,980    100.0 
                
     TOTAL PORTFOLIO   (Cost $44,202,119)   49,783,980    100.0 
     OTHER ASSETS & LIABILITIES, NET       24,507    0.0 
     NET ASSETS      $49,808,487    100.00%

 

 

 

(a) The Fund invests its assets in the Institutional Class shares of the affiliated TIAA-CREF Funds.

 

See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 23
 

Statements of assets and liabilities (unaudited)

 

TIAA-CREF Lifestyle Funds  ■  November 30, 2016

 

       Lifestyle           Lifestyle 
   Lifestyle   Conservative   Lifestyle   Lifestyle   Aggressive 
   Income Fund   Fund   Moderate Fund   Growth Fund   Growth Fund 
ASSETS                         
Affiliated investments, at value‡  $58,418,959   $148,762,759   $217,475,807   $87,427,233   $49,783,980 
Cash   106,756    319,414    222,064    26,007    119,915 
Receivable from securities transactions   191,156    926,528    1,793,113    782,678    374,436 
Receivable from Fund shares sold   151,439    101,578    127,099    50,350    17,168 
Dividends and interest receivable   88,682    186,003    208,087    40,809    1 
Due from affiliates   1,287    1,362    1,244    1,333    1,271 
Other   24,708    30,951    31,927    24,569    24,251 
Total assets   58,982,987    150,328,595    219,859,341    88,352,979    50,321,022 
LIABILITIES                         
Management fees payable   481    1,222    1,788    717    408 
Service agreement fees payable   295    560    1,291    539    401 
Distribution fees payable   8,740    24,024    29,795    11,916    5,422 
Due to affiliates   2,234    2,446    2,502    2,329    2,218 
Payable for securities transactions   324,464    1,276,591    1,998,460    760,489    443,758 
Payable for Fund shares redeemed   36,713    35,450    64,424    109,159    42,300 
Payable for trustee compensation   1,596    3,270    4,222    2,100    1,519 
Accrued expenses and other payables   16,243    23,998    28,549    19,571    16,509 
Total liabilities   390,766    1,367,561    2,131,031    906,820    512,535 
NET ASSETS  $58,592,221   $148,961,034   $217,728,310   $87,446,159   $49,808,487 
NET ASSETS CONSIST OF:                         
Paid-in-capital   57,844,412    145,351,302    210,335,877    81,554,063    43,814,477 
Undistributed net investment income (loss)   139,507    281,868    285,441    295,024    (87,903)
Accumulated net realized gain (loss) on total investments   (69,261)   391,699    1,246,802    462,864    500,052 
Net unrealized appreciation (depreciation) on total investments   677,563    2,936,165    5,860,190    5,134,208    5,581,861 
NET ASSETS  $58,592,221   $148,961,034   $217,728,310   $87,446,159   $49,808,487 
INSTITUTIONAL CLASS:                         
Net assets  $895,552   $3,934,715   $7,963,690   $2,183,442   $2,936,471 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   82,899    333,919    624,509    160,766    208,455 
Net asset value per share   $10.80   $11.78   $12.75   $13.58   $14.09 
ADVISOR CLASS:                         
Net assets  $102,190   $103,473   $121,978   $114,321   $106,172 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   9,460    8,780    9,564    8,419    7,538 
Net asset value per share  $10.80   $11.79   $12.75   $13.58   $14.08 
PREMIER CLASS:                         
Net assets  $216,299   $246,296   $276,038   $286,695   $281,496 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   20,000    20,889    21,602    21,155    20,000 
Net asset value per share  $10.81   $11.79   $12.78   $13.55   $14.07 
RETIREMENT CLASS:                         
Net assets  $14,309,837   $27,345,929   $62,842,469   $26,297,782   $19,507,746 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   1,325,853    2,323,358    4,932,202    1,943,705    1,389,685 
Net asset value per share  $10.79   $11.77   $12.74   $13.53   $14.04 
RETAIL CLASS:                         
Net assets  $43,068,343   $117,330,621   $146,524,135   $58,563,919   $26,976,602 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   3,990,102    9,972,103    11,504,147    4,335,988    1,924,670 
Net asset value per share  $10.79   $11.77   $12.74   $13.51   $14.02 
‡    Affiliated investments, cost  $57,741,396   $145,826,594   $211,615,617   $82,293,025   $44,202,119 

 

24 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 25
 

Statements of operations (unaudited)

 

TIAA-CREF Lifestyle Funds  ■  For the six months ended November 30, 2016

 

       Lifestyle           Lifestyle 
   Lifestyle   Conservative   Lifestyle   Lifestyle   Aggressive 
   Income Fund   Fund   Moderate Fund   Growth Fund   Growth Fund 
                     
INVESTMENT INCOME                         
Dividends from affiliated investments  $540,407    $1,167,161   $1,341,882   $317,741   $46,523 
Total income   540,407    1,167,161    1,341,882    317,741    46,523 
                          
EXPENSES                         
Management fees   27,914    71,601    101,482    41,796    23,881 
Shareholder servicing – Institutional Class   57    57    62    91    58 
Shareholder servicing – Advisor Class   8    8    21    21    8 
Shareholder servicing – Premier Class   29    38    27    38    27 
Shareholder servicing – Retirement Class   17,665    34,627    74,130    31,397    23,330 
Shareholder servicing – Retail Class   5,608    13,423    15,524    10,768    9,778 
Distribution fees – Premier Class   164    185    196    207    207 
Distribution fees – Retail Class   50,784    139,463    175,939    70,176    32,376 
Registration fees   39,545    36,472    37,281    39,069    39,197 
Professional fees   11,848    12,179    12,359    11,970    11,827 
Administrative service fees   7,108    7,941    8,195    7,660    7,074 
Trustee fees and expenses   185    516    730    278    156 
Other expenses   17,861    24,870    30,894    20,883    16,396 
Total expenses   178,776    341,380    456,840    234,354    164,315 
Less: Expenses reimbursed by the investment adviser   (76,823)   (82,244)   (90,350)   (80,159)   (74,712)
Net expenses   101,953    259,136    366,490    154,195    89,603 
                          
Net Investment income (loss)   438,454    908,025    975,392    163,546    (43,080)
                     
NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS      
Realized gain (loss) from sale of affiliated investments   (44,377)   (306,781)   (615,143)   (367,423)   (171,371)
Realized gain (loss) from sale of unaffiliated investments   (137)   —    (16,922)   —    — 
Net realized gain (loss) from investments   (44,514)   (306,781)   (632,065)   (367,423)   (171,371)
Net change in unrealized appreciation (depreciation) from affiliated investments   172,001    1,962,001    5,004,297    3,124,836    2,288,811 
Net realized and unrealized gain (loss) from investments   127,487    1,655,220    4,372,232    2,757,413    2,117,440 
Net increase (decrease) in net assets from operations  $565,941    $2,563,245   $5,347,624   $2,920,959   $2,074,360 

 

26 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 27
 

Statements of changes in net assets

 

TIAA-CREF Lifestyle Funds  ■  For the period or year ended

 

                            
      Lifestyle Income Fund   Lifestyle Conservative Fund   Lifestyle Moderate Fund 
    November 30, 2016   May 31, 2016    November 30, 2016    May 31, 2016    November 30, 2016    May 31, 2016 
      (unaudited)      (unaudited)      (unaudited)    
OPERATIONS                                
Net investment income (loss)  $438,454   $927,723   $908,025   $2,131,570   $975,392   $2,710,147 
Net realized gain (loss) from investments   (44,514)   339,618    (306,781)   1,479,623    (632,065)   3,116,526 
Net change in unrealized appreciation (depreciation) from affiliated investments   172,001    (962,155)   1,962,001    (3,790,507)   5,004,297    (7,561,723)
Net increase (decrease) in net assets from operations   565,941    305,186    2,563,245    (179,314)   5,347,624    (1,735,050)
DISTRIBUTIONS TO SHAREHOLDERS                              
From net investment income:  Institutional Class   (7,730)   (27,468)   (27,708)   (68,975)   (11,548)   (37,470)
   Advisor Class*   (974)   (522)   (807)   (477)   (704)   (419)
   Premier Class   (1,512)   (26,364)   (1,469)   (27,961)   (1,061)   (30,031)
   Retirement Class   (112,982)   (287,921)   (179,023)   (496,618)   (289,207)   (904,324)
   Retail Class   (325,309)   (737,516)   (709,314)   (1,933,110)   (689,102)   (2,335,746)
From realized gains:  Institutional Class   —    (7,447)   —    (38,417)   —    (26,355)
   Advisor Class*   —    (97)   —    (147)   —    (210)
   Premier Class   —    (11,581)   —    (19,297)   —    (30,008)
   Retirement Class   —    (122,029)   —    (347,848)   —    (942,144)
   Retail Class   —    (338,105)   —    (1,428,291)   —    (2,493,266)
Total distributions   (448,507)   (1,559,050)   (918,321)   (4,361,141)   (991,622)   (6,799,973)
SHAREHOLDER TRANSACTIONS                              
Subscriptions:  Institutional Class   145,091    157,935    1,274,641    374,593    6,545,290    897,386 
   Advisor Class*   —    100,000    —    100,000    17,300    100,020 
   Premier Class   —    —    —    —    20,510    — 
   Retirement Class   2,009,058    6,111,631    2,911,442    14,867,325    10,600,330    23,587,967 
   Retail Class   8,329,217    12,152,487    20,233,900    37,471,334    22,486,426    49,798,539 
Reinvestments of distributions:   Institutional Class   7,627    29,562    27,616    102,521    11,469    59,219 
   Advisor Class*   —    —    —    —    51    — 
   Premier Class   —    4,518    62    4,241    —    3,368 
   Retirement Class   112,894    391,719    178,946    828,688    289,143    1,841,907 
   Retail Class   317,322    1,029,898    699,480    3,286,844    676,090    4,747,526 
Redemptions:  Institutional Class   (54,203)   (1,275,195)   (161,786)   (1,620,649)   (479,773)   (1,761,146)
   Premier Class   —    (971,801)   —    (1,036,702)   —    (1,117,117)
   Retirement Class   (1,589,584)   (7,896,388)   (2,391,887)   (11,410,320)   (4,069,528)   (8,437,883)
   Retail Class   (2,858,660)   (12,079,108)   (8,507,838)   (19,735,566)   (11,133,293)   (24,132,909)
Net increase (decrease) from shareholder transactions   6,418,762    (2,244,742)   14,264,576    23,232,309    24,964,015    45,586,877 
Net increase (decrease) in net assets   6,536,196    (3,498,606)   15,909,500    18,691,854    29,320,017    37,051,854 
NET ASSETS                              
Beginning of period   52,056,025    55,554,631    133,051,534    114,359,680    188,408,293    151,356,439 
End of period  $58,592,221   $52,056,025   $148,961,034   $133,051,534   $217,728,310   $188,408,293 
Undistributed net investment income (loss) included in net assets  $139,507   $149,560   $281,868   $292,164   $285,441   $301,671 
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   13,346    14,801    109,103    32,626    518,914    73,097 
   Advisor Class*   —    9,460    —    8,780    1,352    8,208 
   Premier Class   —    —    —    —    1,602    — 
   Retirement Class   185,454    568,899    247,979    1,277,724    834,895    1,907,936 
   Retail Class   766,960    1,132,832    1,715,875    3,218,293    1,774,533    3,982,645 
Shares reinvested:  Institutional Class   706    2,773    2,366    8,965    917    4,843 
   Advisor Class*   —    —    —    —    4    — 
   Premier Class   —    413    5    354    —    256 
   Retirement Class   10,453    36,935    15,356    72,773    23,148    151,769 
   Retail Class   29,364    97,170    60,003    288,796    54,177    391,203 
Shares redeemed:  Institutional Class   (4,994)   (117,879)   (13,788)   (137,007)   (37,899)   (136,849)
   Premier Class   —    (90,726)   —    (90,070)   —    (91,045)
   Retirement Class   (146,264)   (731,400)   (202,515)   (974,324)   (320,578)   (677,932)
   Retail Class   (262,882)   (1,121,332)   (723,303)   (1,700,860)   (877,893)   (1,931,525)
Net increase (decrease) from shareholder transactions   592,143    (198,054)   1,211,081    2,006,050    1,973,172    3,682,606 
* Advisor Class commenced operations on December 4, 2015.

 

28 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 29
 
Statements of changes in net assets concluded

 

TIAA-CREF Lifestyle Funds  ■  For the period or year ended

 

      Lifestyle Growth Fund   Lifestyle Aggressive Growth Fund 
      November 30, 2016   May 31, 2016   November 30, 2016   May 31, 2016 
      (unaudited)      (unaudited)    
OPERATIONS                    
Net investment income (loss)  $163,546   $971,462   $(43,080)  $363,603 
Net realized gain (loss) from investments   (367,423)   1,365,663    (171,371)   1,190,181 
Net change in unrealized appreciation (depreciation) from affiliated investments   3,124,836    (4,717,738)   2,288,811    (4,161,699)
Net increase (decrease) in net assets from operations   2,920,959    (2,380,613)   2,074,360    (2,607,915)
DISTRIBUTIONS TO SHAREHOLDERS                    
From net investment income:  Institutional Class   —    (44,390)   —    (22,077)
   Advisor Class*   —    (179)   —    (137)
   Premier Class   —    (25,371)   —    (20,204)
   Retirement Class   —    (335,657)   —    (183,047)
   Retail Class   —    (768,242)   —    (242,857)
From realized gains:  Institutional Class   —    (73,087)   —    (82,334)
   Advisor Class*   —    (296)   —    (514)
   Premier Class   —    (45,667)   —    (84,526)
   Retirement Class   —    (651,320)   —    (865,038)
   Retail Class   —    (1,500,993)   —    (1,221,297)
Total distributions      —    (3,445,202)   —    (2,722,031)
SHAREHOLDER TRANSACTIONS                    
Subscriptions:  Institutional Class   322,703    1,760,891    279,323    1,735,272 
   Advisor Class*   8,233    100,009    —    100,000 
   Premier Class   10,255    161    —    — 
   Retirement Class   4,533,745    11,096,466    2,162,613    6,152,072 
   Retail Class   8,601,719    17,258,630    3,456,972    9,775,760 
Reinvestments of distributions:  Institutional Class   —    43,996    —    103,457 
   Advisor Class*   —    —    —    — 
   Premier Class   —    238    —    — 
   Retirement Class   —    986,358    —    1,047,173 
   Retail Class   —    2,239,175    —    1,447,343 
Redemptions:  Institutional Class   (102,348)   (1,818,975)   (224,912)   (1,933,169)
   Premier Class   —    (1,170,063)   —    (1,209,416)
   Retirement Class   (2,617,450)   (11,416,572)   (1,219,056)   (9,284,463)
   Retail Class   (4,662,122)   (13,408,374)   (2,502,987)   (11,863,768)
Net increase (decrease) from shareholder transactions   6,094,735    5,671,940    1,951,953    (3,929,739)
Net increase (decrease) in net assets   9,015,694    (153,875)   4,026,313    (9,259,685)
NET ASSETS                       
Beginning of period   78,430,465    78,584,340    45,782,174    55,041,859 
End of period     $87,446,159   $78,430,465   $49,808,487   $45,782,174 
Undistributed net investment income (loss) included in net assets $ 295,024   $131,478   $(87,903)  $(44,823)
CHANGE IN FUND SHARES                       
Shares sold:  Institutional Class   24,310    134,693    20,513    129,791 
   Advisor Class*   607    7,812    —    7,538 
   Premier Class   761    —    —    — 
   Retirement Class   339,429    844,569    157,879    444,376 
   Retail Class   646,561    1,300,904    252,441    713,024 
Shares reinvested:  Institutional Class   —    3,481    —    7,921 
   Advisor Class*   —    —    —    — 
   Premier Class   —    19    —    — 
   Retirement Class   —    78,097    —    80,305 
   Retail Class   —    177,571    —    111,078 
Shares redeemed:  Institutional Class   (7,714)   (140,830)   (16,533)   (137,621)
   Premier Class   —    (91,411)   —    (92,322)
   Retirement Class   (195,959)   (855,569)   (88,840)   (654,723)
   Retail Class   (350,371)   (1,003,623)   (182,670)   (848,872)
Net increase (decrease) from shareholder transactions   457,624    455,713    142,790    (239,505)
* Advisor Class commenced operations on December 4, 2015.

 

30 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 31
 
Financial highlights  

 

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   and unrealized   Total gain   Less distributions from   Total   Net asset       Net assets           Net     
   period  value,   investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year
ended		  beginning
of period		   income
(loss		)a  on total
investments		j  investment
operations		   investment
income		   realized
gains		   and
distributions		   end of
period		   Total
return		   period or year
(in thousands		)  Gross
expenses		e  Net
expenses		e  income
(loss		)  turnover
rate		 
                                                            
TIAA-CREF LIFESTYLE INCOME                                                            
Institutional Class:  11/30/16# $10.77   $0.10   $  0.03   $0.13   $(0.10)  $      —   $(0.10)  $10.80    1.24%b  $   896    0.39%c   0.10%c   1.84%c   9%b
   5/31/16   11.04    0.21    (0.12)   0.09    (0.25)   (0.11)   (0.36)   10.77    0.89    796    0.37    0.10    1.91    33 
   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    2.95b   1,030    2.98c   0.10c   1.81c   3b
Advisor Class:  11/30/16#  10.77    0.10    0.03    0.13    (0.10)   —    (0.10)   10.80    1.24b   102    0.39c   0.11c   1.82c   9b
   5/31/16†  10.86    0.10    0.08    0.18    (0.16)   (0.11)   (0.27)   10.77    1.67b   102    0.39c   0.12c   1.95c   33 
Premier Class:  11/30/16#  10.77    0.09    0.03    0.12    (0.08)   —    (0.08)   10.81    1.07b   216    0.55c   0.25c   1.69c   9b
   5/31/16   11.04    0.21    (0.13)   0.08    (0.24)   (0.11)   (0.35)   10.77    0.76    215    0.53    0.25    1.89    33 
   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    2.91b   1,065    3.13c   0.25c   1.66c   3b
Retirement Class:  11/30/16#  10.76    0.09    0.03    0.12    (0.09)   —    (0.09)   10.79    1.09b   14,310    0.63c   0.35c   1.59c   9b
   5/31/16   11.04    0.19    (0.13)   0.06    (0.23)   (0.11)   (0.34)   10.76    0.56    13,734    0.62    0.35    1.76    33 
   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    2.88b   4,127    2.83c   0.35c   1.56c   3b
Retail Class:  11/30/16#  10.76    0.08    0.04    0.12    (0.09)   —    (0.09)   10.79    1.10b   43,068    0.65c   0.38c   1.56c   9b
   5/31/16   11.04    0.19    (0.14)   0.05    (0.22)   (0.11)   (0.33)   10.76    0.52    37,209    0.65    0.38    1.75    33 
   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    2.73b   4,979    2.82c   0.48c   1.43c   3b

 

32 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 33
 
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   and unrealized   Total gain   Less distributions from   Total   Net asset       Net assets           Net     
   period  value,   investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year
ended		  beginning
of period		   income
(loss		)a  on total
investments		j  investment
operations		   investment
income		   realized
gains		   and
distributions		   end of
period		   Total
return		   period or year
(in thousands		)  Gross
expenses		e  Net
expenses		e  income
(loss		)  turnover
rate		 
                                                            
TIAA-CREF LIFESTYLE CONSERVATIVE                                                      
Institutional Class:  11/30/16# $11.64   $0.09   $  0.14   $  0.23   $(0.09) $     —   $(0.09)  $11.78    2.00%b  $3,935    0.22%c   0.10%c   1.53%c   10%b
   5/31/16   12.13    0.22    (0.27)   (0.05)   (0.27)   (0.17)   (0.44)   11.64    (0.28)   2,749    0.23    0.10    1.88    26 
   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    3.38b   1,033    2.81c   0.10c   1.54c   17b
Advisor Class:  11/30/16#  11.64    0.09    0.15    0.24    (0.09)   —    (0.09)   11.79    2.09b   103    0.23c   0.12c   1.51c   10b
   5/31/16†  11.86    0.09    0.04    0.13    (0.18)   (0.17)   (0.35)   11.64    1.25b   102    0.25c   0.12c   1.70c   26 
Premier Class:  11/30/16#  11.63    0.08    0.15    0.23    (0.07)   —    (0.07)   11.79    1.99b   246    0.39c   0.25c   1.38c   10b
   5/31/16   12.12    0.22    (0.29)   (0.07)   (0.25)   (0.17)   (0.42)   11.63    (0.43)   243    0.39    0.25    1.85    26 
   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    3.23b   1,505    2.90c   0.25c   1.39c   17b
Retirement Class:  11/30/16#  11.62    0.08    0.15    0.23    (0.08)   —    (0.08)   11.77    1.96b   27,346    0.47c   0.35c   1.28c   10b
   5/31/16   12.11    0.20    (0.28)   (0.08)   (0.24)   (0.17)   (0.41)   11.62    (0.53)   26,300    0.48    0.35    1.71    26 
   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    3.20b   4,189    2.66c   0.35c   1.29c   17b
Retail Class:  11/30/16#  11.62    0.07    0.16    0.23    (0.08)   —    (0.08)   11.77    1.96b   117,331    0.49c   0.37c   1.26c   10b
   5/31/16   12.11    0.20    (0.28)   (0.08)   (0.24)   (0.17)   (0.41)   11.62    (0.56)   103,657    0.51    0.38    1.71    26 
   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    3.16b   5,624    2.65c   0.47c   1.18c   17b

 

34 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 35
 
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   and unrealized   Total gain   Less distributions from   Total   Net asset       Net assets           Net     
   period  value,   investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year
ended		  beginning
of period		   income
(loss		)a  on total
investments		j  investment
operations		   investment
income		   realized
gains		   and
distributions		   end of
period		   Total
return		   period or year
(in thousands		)  Gross
expenses		e  Net
expenses		e  income
(loss		)  turnover
rate		 
                                                            
TIAA-CREF LIFESTYLE MODERATE                                                      
Institutional Class:  11/30/16# $12.48   $0.07   $  0.28   $  0.35   $(0.08)  $    —   $(0.08)  $12.75    2.82%b  $   7,964    0.19%c   0.10%c   1.20%c   11%b
   5/31/16   13.25    0.21    (0.42)   (0.21)   (0.29)   (0.27)   (0.56)   12.48    (1.45)   1,779    0.21    0.10    1.67    17 
   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    3.69b   1,037    2.77c   0.10c   1.28c   11b
Advisor Class:  11/30/16#  12.48    0.08    0.27    0.35    (0.08)   —    (0.08)   12.75    2.82b   122    0.23c   0.14c   1.19c   11b
   5/31/16†  12.88    0.08    —    0.08    (0.21)   (0.27)   (0.48)   12.48    0.76b   102    0.23c   0.13c   1.44c   17 
Premier Class:  11/30/16#  12.48    0.07    0.28    0.35    (0.05)   —    (0.05)   12.78    2.83b   276    0.36c   0.25c   1.07c   11b
   5/31/16   13.25    0.23    (0.46)   (0.23)   (0.27)   (0.27)   (0.54)   12.48    (1.59)   250    0.36    0.25    1.81    17 
   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    3.65b   1,036    2.92c   0.25c   1.13c   11b
Retirement Class:  11/30/16#  12.46    0.06    0.28    0.34    (0.06)   —    (0.06)   12.74    2.77b   62,842    0.44c   0.35c   0.97c   11b
   5/31/16   13.24    0.21    (0.46)   (0.25)   (0.26)   (0.27)   (0.53)   12.46    (1.77)   54,776    0.46    0.35    1.67    17 
   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    3.52b   4,244    2.63c   0.35c   1.03c   11b
Retail Class:  11/30/16#  12.46    0.06    0.28    0.34    (0.06)   —    (0.06)   12.74    2.77b   146,524    0.46c   0.37c   0.95c   11b
   5/31/16   13.23    0.20    (0.45)   (0.25)   (0.25)   (0.27)   (0.52)   12.46    (1.73)   131,501    0.48    0.38    1.65    17 
   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    3.48b   6,648    2.60c   0.46c   0.92c   11b

 

36 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2016 Semiannual 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   and unrealized   Total gain   Less distributions from   Total   Net asset       Net assets           Net     
   period  value,   investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year
ended		  beginning
of period		   income
(loss		)a  on total
investments		j  investment
operations		   investment
income		   realized
gains		   and
distributions		   end of
period		   Total
return		   period or year
(in thousands		)  Gross
expenses		e  Net
expenses		e  income
(loss		)  turnover
rate		 
                                                            
TIAA-CREF LIFESTYLE GROWTH                                                            
Institutional Class:  11/30/16#  $13.09    $0.04    $0.45    $  0.49    $     —    $     —    $    —    $13.58    3.74%b   $  2,183    0.30%c   0.10%c   0.66%c   13%b
   5/31/16   14.19    0.20    (0.64)   (0.44)   (0.25)   (0.41)   (0.66)   13.09    (2.96)   1,887    0.29    0.10    1.55    35 
   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    3.24b   1,033    2.77c   0.10c   0.64c   7b
Advisor Class:  11/30/16#  13.09    0.04    0.45    0.49    —    —    —    13.58    3.74b   114    0.33c   0.14c   0.62c   13b
   5/31/16†  13.79    0.05    (0.09)   (0.04)   (0.25)   (0.41)   (0.66)   13.09    (0.16)b   102    0.31c   0.13c   0.87c   35 
Premier Class:  11/30/16#  13.07    0.03    0.45    0.48    —    —    —    13.55    3.67b   287    0.47c   0.25c   0.51c   13b
   5/31/16   14.18    0.20    (0.67)   (0.47)   (0.23)   (0.41)   (0.64)   13.07    (3.19)   267    0.44    0.25    1.47    35 
   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    3.23b   1,065    2.92c   0.25c   0.49c   7b
Retirement Class:  11/30/16#  13.06    0.03    0.44    0.47    —    —    —    13.53    3.60b   26,298    0.54c   0.35c   0.41c   13b
   5/31/16   14.15    0.16    (0.63)   (0.47)   (0.21)   (0.41)   (0.62)   13.06    (3.18)   23,506    0.54    0.35    1.24    35 
   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    3.13b   4,203    2.63c   0.35c   0.39c   7b
Retail Class:  11/30/16#  13.04    0.02    0.45    0.47    —    —    —    13.51    3.60b   58,564    0.58c   0.39c   0.37c   13b
   5/31/16   14.13    0.16    (0.63)   (0.47)   (0.21)   (0.41)   (0.62)   13.04    (3.19)   52,668    0.58    0.40    1.23    35 
   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    3.12b   5,249    2.63c   0.48c   0.27c   7b

 

38 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2016 Semiannual 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   and unrealized   Total gain   Less distributions from   Total   Net asset       Net assets           Net     
   period  value,   investment   gain (loss)  (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year
ended		  beginning
of period		   income
(loss		)a  on total
investments		j  investment
operations		   investment
income		   realized
gains		   and
distributions		   end of
period		   Total
return		   period or year
(in thousands		)  Gross
expenses		e  Net
expenses		e  income
(loss		)  turnover
rate		 
                                                            
TIAA-CREF LIFESTYLE AGGRESSIVE GROWTH                                                        
Institutional Class:  11/30/16#  $13.47    $0.01    $  0.61    $  0.62    $    —    $    —    $    —    $14.09    4.60%b   $  2,936    0.42%c   0.10%c   0.10%c   11%b
   5/31/16   15.14    0.10    (0.82)   (0.72)   (0.20)   (0.75)   (0.95)   13.47    (4.53)   2,755    0.41    0.10    0.75    41 
   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    0.00d   0.29    0.29    —    —    —    10.29    2.90b   1,029    2.79c   0.10c   0.01c   2b
Advisor Class:  11/30/16#  13.47    0.01    0.60    0.61    —    —    —    14.08    4.53b   106    0.43c   0.11c   0.08c   11b
   5/31/16†  14.63    0.02    (0.23)   (0.21)   (0.20)   (0.75)   (0.95)   13.47    (1.21)b   102    0.43c   0.12c   0.26c   41 
Premier Class:  11/30/16#  13.47    (0.00)d   0.60    0.60    —    —    —    14.07    4.45b   281    0.58c   0.25c   (0.06)c   11b
   5/31/16   15.12    0.15    (0.87)   (0.72)   (0.18)   (0.75)   (0.93)   13.47    (4.55)   269    0.56    0.25    1.11    41 
   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    2.80b   1,038    2.94c   0.25c   (0.14)c   2b
Retirement Class:  11/30/16#  13.44    (0.01)   0.61    0.60    —    —    —    14.04    4.46b   19,508    0.66c   0.35c   (0.16)c   11b
   5/31/16   15.10    0.11    (0.86)   (0.75)   (0.16)   (0.75)   (0.91)   13.44    (4.77)   17,752    0.66    0.35    0.81    41 
   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    2.80b   4,224    2.65c   0.35c   (0.24)c   2b
Retail Class:  11/30/16#  13.43    (0.02)   0.61    0.59    —    —    —    14.02    4.39b   26,977    0.74c   0.43c   (0.23)c   11b
   5/31/16   15.08    0.10    (0.85)   (0.75)   (0.15)   (0.75)   (0.90)   13.43    (4.78)   24,905    0.74    0.43    0.76    41 
   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    2.70b   5,039    2.66c   0.49c   (0.37)c   2b
   
# Unaudited
† The Advisor Class commenced operations on December 4, 2015.
‡ The Fund commenced operations on December 9, 2011.
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.

 

40 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 41
 

Notes to financial statements (unaudited)

 

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, LLC (“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. Prior to October 1, 2016, Teachers Advisors, LLC was named Teachers Advisors, Inc. The Funds offer Institutional, Advisor, 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.

 

42 2016 Semiannual Report  ■  TIAA-CREF Lifestyle 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 being 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.

 

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.

 

New rule issuances: In October 2016, the Commission issued Final Rule Release No. 33-10231, Investment Company Reporting Modernization. This final rule modernizes investment company reporting by requiring the filing of new forms N-PORT and N-CEN, and amends Regulation S-X disclosures related to derivatives and other disclosures in the financial statements and other filings. The requirements of this final rule in relation to forms N-PORT and N-CEN must be adopted by June 1, 2018, while the amended disclosures must be adopted by August 1, 2017. Management is currently assessing the impact of this rule to the Funds’ financial statements and other filings.

 

TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 43
 

Notes to financial statements (unaudited)

 

In October 2016, the Commission issued Final Rule Release No. 33-10233, Investment Company Liquidity Risk Management Programs. This final rule requires funds to establish a liquidity risk management program and enhances disclosures regarding funds liquidity. The requirements of this final rule must be adopted by December 1, 2018. Management is currently assessing the impact of this rule to the Funds’ financial statements and other filings.

 

In October 2016, the Commission issued Final Rule Release No. 33-10234, Investment Company Swing Pricing. This final rule permits certain funds to use swing pricing during periods of heavy redemptions and requires certain disclosures regarding the use of swing pricing in forms filed with the Commission. Management may elect to adopt the provisions of this final rule by November 19, 2018. Management is currently assessing the impact of this rule to the Funds’ financial statements and other filings.

 

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.

 

Certain portfolio investments that are measured at fair value using the NAV per share practical expedient are not categorized within the fair value hierarchy. These investments will be disclosed at their fair value to allow reconciliation back to the Statements of Assets and Liabilities. As of November 30, 2016, no investments were valued utilizing the practical expedient.

 

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 NAV on the valuation date. These investments are categorized in Level 1 of the fair value hierarchy.

 

44 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds
 

continued

 

Transfers between levels are recognized at the end of the reporting period. For the period ended November 30, 2016, there were no transfers between levels by the Funds.

 

As of November 30, 2016, 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.

 

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 Advisor 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, 2017, unless changed with the approval of the Board.

 

The Funds may purchase or sell investment securities in transactions with affiliated entities under procedures adopted by the Board, pursuant to the 1940 Act. These transactions are effected at market rates without incurring broker commissions. For the period ended November 30, 2016, these transactions did not materially impact the Funds.

 

TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 45
 

Notes to financial statements (unaudited)

 

The following is the percentage of the Funds’ shares owned by TIAA as of November 30, 2016:

 

Fund  TIAA 
Lifestyle Income   1%
Lifestyle Conservative   — 
Lifestyle Moderate   — 
Lifestyle Growth   1 
Lifestyle Aggressive Growth   1 

 

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 
   Value at   Purchase   Sales   Realized   Dividend   November 30, 
Issue  May 31, 2016   cost   proceeds   gain (loss)  income   2016 
Lifestyle Income Fund                              
TIAA-CREF Bond  $9,920,026   $2,302,647   $464,827   $(1,861)  $147,177   $11,559,727 
TIAA-CREF Bond Plus   10,453,399    1,889,127    1,021,801    (6,878)   165,230    11,184,443 
TIAA-CREF Emerging Markets Equity   651,474    250,702    222,220    (21,121)   —    724,072 
TIAA-CREF Enhanced International Equity Index   675,445    409,156    89,496    (3,813)   —    977,518 
TIAA-CREF Enhanced Large-Cap Growth Index   618,099    229,873    134,773    (1,458)   —    746,592 
TIAA-CREF Enhanced Large-Cap Value Index   590,074    253,341    131,823    (3,381)   —    770,685 
TIAA-CREF Global Natural Resources   158,822    73,942    192,257    (19,001)   —    56,781 
TIAA-CREF Growth & Income   1,547,515    386,389    174,011    (836)   10,752    1,837,717 
TIAA-CREF High-Yield   533,571    25,997    552,537    25,739    8,629    23,347 
TIAA-CREF International Equity   1,167,343    315,984    349,892    (5,024)   —    1,103,532 
TIAA-CREF International Opportunities  780,516    157,658    61,689    (2,363)   —    873,457 
TIAA-CREF Large-Cap Growth   1,858,203    375,539    215,265    (1,848)   —    2,031,904 
TIAA-CREF Large-Cap Value   1,787,638    334,420    220,646    1,371    —    2,105,047 
TIAA-CREF Mid-Cap Growth   55,774    33,380    68,480    (2,919)   —    20,899 
TIAA-CREF Mid-Cap Value   60,111    39,355    77,330    2,203    —    26,008 
TIAA-CREF Money Market   2,998    4    —    —    4    3,002 
TIAA-CREF Short-Term Bond   20,885,859    3,260,457    717,213    (3,164)   208,615    23,354,586 
TIAA-CREF Small-Cap Equity   553,865    195,362    162,637    (30)   —    685,316 
TIAA-CREF Small/Mid-Cap Equity   —    315,476    1,309    7    —    334,326 
   $52,300,732   $10,848,809   $4,858,206   $(44,377)  $540,407   $58,418,959 

 

46 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds
 

continued

 

                       Value at 
   Value at   Purchase   Sales   Realized   Dividend   November 30, 
Issue  May 31, 2016   cost   proceeds   gain (loss)  income   2016 
Lifestyle Conservative Fund                              
TIAA-CREF Bond  $11,887,322   $3,586,537   $563,025   $(2,902)  $184,049   $14,637,849 
TIAA-CREF Bond Plus   39,718,054    6,569,017    2,689,000    (19,762)   638,576    43,033,871 
TIAA-CREF Emerging Markets Equity   2,904,652    1,028,576    609,871    (64,064)   —    3,516,386 
TIAA-CREF Enhanced International Equity Index   3,424,185    1,507,028    171,082    (7,364)   —    4,670,828 
TIAA-CREF Enhanced Large-Cap Growth Index   3,130,415    901,823    368,495    (10,369)   —    3,830,809 
TIAA-CREF Enhanced Large-Cap Value Index   2,991,197    962,515    312,723    (12,142)   —    3,945,341 
TIAA-CREF Global Natural Resources   803,923    106,838    858,764    (90,360)   —    136,281 
TIAA-CREF Growth & Income   7,843,077    1,632,946    526,721    (8,271)   55,327    9,336,907 
TIAA-CREF High-Yield   1,352,656    52,979    1,386,712    55,691    21,937    59,246 
TIAA-CREF International Equity   5,901,820    1,380,486    1,524,565    (76,169)   —    5,590,095 
TIAA-CREF International Opportunities   3,955,743    798,642    299,922    (8,708)   —    4,431,768 
TIAA-CREF Large-Cap Growth   9,412,141    1,639,614    801,100    (11,514)   —    10,303,933 
TIAA-CREF Large-Cap Value   9,051,412    1,364,627    772,967    (24,713)   —    10,678,687 
TIAA-CREF Mid-Cap Growth   484,052    38,346    423,824    (15,025)   —    106,040 
TIAA-CREF Mid-Cap Value   503,696    100,973    498,610    14,162    —    131,998 
TIAA-CREF Money Market   4,728    7    —    —    7    4,735 
TIAA-CREF Short-Term Bond   26,452,969    4,377,186    1,116,516    (3,440)   267,265    29,615,709 
TIAA-CREF Small-Cap Equity   2,805,413    530,386    766,444    (21,961)   —    3,036,732 
TIAA-CREF Small/Mid-Cap Equity   —    1,598,328    6,429    130    —    1,695,544 
   $132,627,455   $28,176,854   $13,696,770   $(306,781)  $1,167,161   $148,762,759 
Lifestyle Moderate Fund                              
TIAA-CREF Bond Plus  $73,132,064   $15,991,305   $3,998,221   $(30,884)  $1,194,375   $83,957,597 
TIAA-CREF Emerging Markets Equity   5,891,589    1,876,857    793,783    (87,363)   —    7,368,388 
TIAA-CREF Enhanced International Equity Index   7,277,494    3,176,504    303,001    (21,470)   —    9,968,900 
TIAA-CREF Enhanced Large-Cap Growth Index   6,931,329    1,709,104    633,049    (24,246)   —    8,379,348 
TIAA-CREF Enhanced Large-Cap Value Index   6,635,582    1,907,041    562,406    (30,287)   —    8,647,834 
TIAA-CREF Global Natural Resources   1,709,943    161,154    1,666,245    (162,971)   —    409,269 
TIAA-CREF Growth & Income   16,660,574    3,729,725    868,367    (24,456)   116,641    20,364,747 
TIAA-CREF High-Yield   1,917,945    95,289    1,983,126    79,420    30,857    86,409 
TIAA-CREF International Equity   11,993,295    2,655,116    2,061,123    (88,586)   —    12,213,078 
TIAA-CREF International Opportunities   8,408,076    1,795,535    486,963    (16,316)   —    9,665,795 
TIAA-CREF Large-Cap Growth   19,994,019    3,842,197    1,419,280    (27,082)   —    22,537,075 
TIAA-CREF Large-Cap Value   19,227,894    3,193,411    1,291,457    (26,445)   —    23,354,363 
TIAA-CREF Mid-Cap Growth   1,168,121    72,315    1,029,217    (74,940)   —    231,423 
TIAA-CREF Mid-Cap Value   1,211,104    192,372    1,176,130    22,896    —    287,145 
TIAA-CREF Money Market   6,355    9    —    —    9    6,364 
TIAA-CREF Small-Cap Equity   5,959,402    968,107    1,594,127    (102,007)   —    6,310,265 
TIAA-CREF Small/Mid-Cap Equity   —    3,490,740    28,418    (406)   —    3,687,807 
   $188,124,786   $44,856,781   $19,894,913   $(615,143)  $1,341,882   $217,475,807 

 

TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 47
 

Notes to financial statements (unaudited)

 

                       Value at 
   Value at   Purchase   Sales   Realized   Dividend   November 30, 
Issue  May 31, 2016   cost   proceeds   gain (loss)  income   2016 
Lifestyle Growth Fund                              
TIAA-CREF Bond Plus  $14,800,596   $3,548,304   $1,661,549   $(10,186)  $240,571   $16,465,194 
TIAA-CREF Emerging Markets Equity   3,186,366    847,580    423,730    (47,188)   —    3,831,912 
TIAA-CREF Enhanced International Equity Index   4,028,111    1,541,187    218,567    (9,986)   —    5,251,089 
TIAA-CREF Enhanced Large-Cap Growth Index   3,925,668    784,524    439,912    (12,368)   —    4,471,723 
TIAA-CREF Enhanced Large-Cap Value Index   3,760,568    841,960    348,148    (17,224)   —    4,614,661 
TIAA-CREF Global Natural Resources   949,413    86,989    907,498    (114,285)   —    248,321 
TIAA-CREF Growth & Income   9,247,040    1,671,498    490,467    (10,648)   64,374    10,873,923 
TIAA-CREF High-Yield   797,582    40,238    826,568    36,368    12,791    34,612 
TIAA-CREF International Equity   6,491,415    1,287,488    1,069,317    (56,026)   —    6,511,466 
TIAA-CREF International Opportunities   4,646,789    914,202    379,786    (10,075)   —    5,150,740 
TIAA-CREF Large-Cap Growth   11,080,508    1,699,067    822,932    (15,894)   —    12,011,399 
TIAA-CREF Large-Cap Value   10,686,321    1,527,485    967,265    (36,287)   —    12,446,535 
TIAA-CREF Mid-Cap Growth   687,752    39,151    616,686    (42,086)   —    122,561 
TIAA-CREF Mid-Cap Value   711,296    111,117    704,173    32,172    —    152,163 
TIAA-CREF Money Market   3,310    5    —    —    5    3,315 
TIAA-CREF Small-Cap Equity   3,305,735    348,213    895,050    (53,567)   —    3,275,588 
TIAA-CREF Small/Mid-Cap Equity   —    1,879,692    35,702    (143)   —    1,962,031 
   $78,308,470   $17,168,700   $10,807,350   $(367,423)  $317,741   $87,427,233 
Lifestyle Aggressive Growth Fund                              
TIAA-CREF Emerging Markets Equity   $2,286,307   $377,116   $248,401   $(23,480)  $-   $2,585,125 
TIAA-CREF Enhanced International Equity Index   2,934,254    802,073    70,908    (3,345)   —    3,598,475 
TIAA-CREF Enhanced Large-Cap Growth Index   2,894,640    326,023    258,957    (4,689)   —    3,105,010 
TIAA-CREF Enhanced Large-Cap Value Index   2,774,873    360,728    184,599    (3,899)   —    3,205,017 
TIAA-CREF Global Natural Resources   688,359    42,823    633,117    (109,647)   —    186,812 
TIAA-CREF Growth & Income   6,739,885    857,310    233,294    (3,175)   46,517    7,680,341 
TIAA-CREF International Equity   4,662,323    697,145    614,045    (26,409)   —    4,606,973 
TIAA-CREF International Opportunities   3,388,370    503,371    219,948    (5,745)   —    3,649,723 
TIAA-CREF Large-Cap Growth   8,083,030    870,362    501,017    (8,034)   —    8,494,675 
TIAA-CREF Large-Cap Value   7,779,357    711,517    542,845    971    —    8,797,862 
TIAA-CREF Mid-Cap Growth   519,145    12,415    454,320    (17,420)   —    86,711 
TIAA-CREF Mid-Cap Value   535,881    49,677    502,457    50,676    —    107,864 
TIAA-CREF Money Market   4,054    6    —    —    6    4,060 
TIAA-CREF Small-Cap Equity   2,408,504    150,715    640,135    (17,277)   —    2,282,121 
TIAA-CREF Small/Mid-Cap Equity   —    1,318,227    7,907    102    —    1,393,211 
   $45,698,982   $7,079,508   $5,111,950   $(171,371)  $46,523   $49,783,980 

 

48 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds
 

continued

 

Note 4—investments

 

At November 30, 2016, 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 
   Tax   unrealized   unrealized   appreciation 
Fund  cost   appreciation   (depreciation)  (depreciation)
Lifestyle Income  $58,133,540   $818,878   $(533,458)  $285,420 
Lifestyle Conservative   147,147,179    3,292,019    (1,676,439)   1,615,580 
Lifestyle Moderate   213,808,149    6,141,083    (2,473,424)   3,667,659 
Lifestyle Growth   83,543,466    4,718,985    (835,218)   3,883,767 
Lifestyle Aggressive Growth   45,074,569    5,091,667    (382,256)   4,709,411 

 

Purchases and sales: Purchases and sales of securities (other than short-term instruments) for all of the Funds for the period ended November 30, 2016 were as follows:

 

Fund  Purchases   Sales 
Lifestyle Income  $11,027,178   $5,036,438 
Lifestyle Conservative   28,176,854    13,696,770 
Lifestyle Moderate   47,934,373    22,955,583 
Lifestyle Growth   17,168,700    10,807,350 
Lifestyle Aggressive Growth   7,079,508    5,111,950 

 

Note 5—distributions to shareholders and other tax items

 

The tax character of distributions paid to shareholders during the year ended May 31, 2016 was as follows:

 

Fund  Ordinary income   Long-term
capital gains		    Total 
Lifestyle Income   $1,079,791    $   479,259    $1,559,050 
Lifestyle Conservative   2,554,552    1,806,589    4,361,141 
Lifestyle Moderate   3,428,943    3,371,030    6,799,973 
Lifestyle Growth   1,242,115    2,203,087    3,445,202 
Lifestyle Aggressive Growth   493,808    2,228,223    2,722,031 

 

The tax character of the fiscal year 2017 distributions will be determined at the end of the fiscal year.

 

TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 49
 
Notes to financial statements (unaudited) 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. The current facility was entered into on June 21, 2016 expiring on June 20, 2017, replacing the previous facility, which expired June 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 period ended November 30, 2016, 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.

 

50 2016 Semiannual 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 marks of MSCI or its affiliates and have been licensed for use for certain purposes by Teachers Advisors, LLC. 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

 

TIAA-CREF Lifestyle Funds  ■  2016 Semiannual Report 51
 
Additional information about index providers (unaudited) concluded

 

the determination or calculation of the equation by or the consideration into which 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.

 

52 2016 Semiannual Report  ■  TIAA-CREF Lifestyle Funds
 

[This page intentionally left blank.] 

 

[This page intentionally left blank.] 

 

[This page intentionally left blank.] 

 

[This page intentionally left blank.] 

 

How to reach us

 

TIAA website

 

TIAA.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.org, or call 800-842-2252 for the Institutional, Advisor, 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 Global Asset Management provides investment advice and portfolio management services through TIAA and over a dozen affiliated registered investment advisers. TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, members FINRA and SIPC, distribute securities products.

 

 

©2017 Teachers Insurance and Annuity Association of America—College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017-3206

 

 

730 Third Avenue
New York, NY 10017-3206 

  
     

 

PRESORTED STANDARD
U.S. POSTAGE

PAID

TIAA


 


 

 

 

 

 

 

 

 

 

 Printed on paper containing recycled fiber

 

 

 

We’re fond of paper…in its original form.
Switch to eDelivery at
TIAA.org/eDelivery

C37163 A13443 (1/17)
 

730 Third Avenue
New York, NY 10017-3206 

  
     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Printed on paper containing recycled fiber

 

 

C37163 A13443 (1/17)
 

730 Third Avenue
New York, NY 10017-3206 

  
     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C37163 A13443 (1/17)

 

 

 

   

2016 Semiannual Report

 

November 30, 2016

 

TIAA-CREF

Managed Allocation Fund

 

of the TIAA-CREF Funds

      
         
         
  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     9
  Portfolio of investments     10
  Financial statements (unaudited)      
  Statement of assets and liabilities     11
  Statement of operations     12
  Statements of changes in net assets     14
  Financial highlights     16
  Notes to financial statements     18
  Additional information about index providers     24
  How to reach us     Inside back cover
 

Understanding your fund report

 

This semiannual report contains information about the Managed Allocation Fund and describes the fund’s results for the six months ended November 30, 2016. The report contains three main sections:

  • The fund performance section compares the fund’s investment returns with those of its composite benchmark and broad market indexes.
  • The portfolio of investments lists the underlying TIAA-CREF Funds in which the Managed Allocation Fund had investments as of November 30, 2016.
  • 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.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 2016 Semiannual Report  ■  TIAA-CREF Managed Allocation Fund
 

Information for investors

 

Portfolio holdings

 

The complete portfolio of investments for the Managed Allocation Fund appears on page 10 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.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.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

 

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, 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, LLC (formerly known as 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  ■  2016 Semiannual 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 (June 1, 2016–November 30, 2016).

 

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. The fund has a contractual fee reimbursement. Had it not been effect, fund expenses may have been higher.

 

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 2016 Semiannual Report  ■  TIAA-CREF Managed Allocation Fund
 

Important information about expenses

 

Expense example

 

Six months ended November 30, 2016

   Beginning   Ending       Effective 
   account   account   Expenses paid   expenses paid 
   value   value   during period*  during period†
Managed Allocation Fund  (6/1/16)  (11/30/16)  (6/1/16–11/30/16)  (6/1/16–11/30/16)
Institutional Class                    
Actual return  $1,000.00   $1,031.27   $0.00   $1.99 
5% annual hypothetical return   1,000.00    1,025.07    0.00    1.98 
Retirement Class                    
Actual return   1,000.00    1,029.14    1.27    3.31 
5% annual hypothetical return   1,000.00    1,023.82    1.27    3.29 
Retail Class                    
Actual return   1,000.00    1,029.88    1.27    3.31 
5% annual hypothetical return   1,000.00    1,023.82    1.27    3.29 

 

* “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 183/365. There were 183 days in the six months ended November 30, 2016. 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 0.39% for the Institutional Class, 0.65% for the Retirement Class and 0.65% for the Retail Class.

 

TIAA-CREF Managed Allocation Fund  ■  2016 Semiannual Report 5
 

Managed Allocation Fund

 

Performance for the six months ended November 30, 2016

 

For the six-month period ended November 30, 2016, the TIAA-CREF Managed Allocation Fund returned 3.13% for the Institutional Class, compared with the 2.81% return of its benchmark, the Managed Allocation Fund Composite Index. For the one-year period ended November 30, 2016, the fund returned 4.09% versus 4.52% for its composite index. The table on page 8 includes performance data for all share classes of the fund.

 

Global markets produce mixed results

 

The U.S. economy continued on a steady growth trajectory during the six months. Labor markets improved during the period, with the unemployment rate dipping below 5.0%. Meanwhile, the nation’s gross domestic product (GDP), which measures the value of all goods and services produced in the United States, rose at an annual rate of 3.5% during the third quarter of 2016, an increase from the 1.4% annual rate reported in the previous quarter. The Federal Reserve held its federal funds target rate unchanged at 0.25%–0.50% during the reporting period but suggested that a rate hike could occur in the near future.

The broad U.S. stock market, as measured by the Russell 3000® Index, gained 6.93% for the six months. Small caps, which reached double-digit gains, outperformed mid- and large-cap stocks. Value stocks topped their growth counterparts for the period. (Returns are based on Russell indexes.)

Foreign developed-market stocks declined during the period, while emerging-markets stocks showed renewed strength as oil prices recovered. The MSCI All Country World ex USA Index, which measures the performance of large- and mid-cap stocks in 45 developed- and emerging-market countries outside the United States, returned 1.36% in U.S.-dollar terms.

Within the U.S. fixed-income markets, returns were more muted, as investors were attracted to higher equity returns and grew concerned about the possibility of interest-rate increases. The broad domestic investment-grade fixed-rate bond market, as represented by the Bloomberg Barclays U.S. Aggregate Bond Index, returned –0.92% for the six months.

 

6 2016 Semiannual Report  ■  TIAA-CREF Managed Allocation Fund
 

U.S. equity market gains lead the fund higher

 

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 pursues this strategy by investing in various underlying funds that, in turn, buy stocks, bonds and other securities in these market sectors.

For the six months, the Managed Allocation Fund’s absolute returns—that is, without regard to the performance of its composite benchmark—benefited most from gains in U.S. stocks. All of the underlying U.S. equity funds posted gains for the period. The Small-Cap Equity Fund performed best, followed by the Large-Cap Value Fund. With respect to foreign stocks, the Global Natural Resources Fund, which posted substantial double-digit gains, and the Emerging Markets Equity Fund, advanced. All of the other underlying international equity funds ended down. In the fixed-income category, the High-Yield Fund had the best performance in absolute terms. The Bond Plus Fund also ended slightly up. (All fund returns are for the Institutional Class.)

 

Bonds benefit relative performance

 

In terms of U.S. equity relative returns, the Large-Cap Growth Fund was the biggest detractor and underperformed its benchmark. The Large-Cap Value Fund made the strongest contribution to the fund’s relative return.

In the international equity component, the International Equity Fund detracted most from the fund’s relative return and underperformed its benchmark. The International Opportunities Fund was also a sizable detractor. Conversely, the Global Natural Resources Fund contributed most to relative performance, substantially beating its benchmark.

In the fixed-income category, the Bond Plus Fund was the largest contributor, topping its benchmark. The High-Yield Fund further augmented relative returns and also outperformed its benchmark. (Performance of the Managed Allocation Fund’s underlying funds can be found at TIAA.org/performance.)

 

TIAA-CREF Managed Allocation Fund  ■  2016 Semiannual Report 7
 

Managed Allocation Fund

 

Performance as of November 30, 2016

 

      Total return  Average annual
total return
Managed Allocation Fund   Inception date   6 months   1 year   5 years   10 years 
Institutional Class   3/31/2006    3.13%   4.09%   8.52%   5.07%
Retirement Class   3/31/2006    2.91    3.84    8.24    4.79 
Retail Class   3/31/2006    2.99    3.91    8.25    4.89 
Managed Allocation Composite Index*    —    2.81    4.52    8.00    5.12 
Broad market index                         
Russell 3000® Index   —    6.93    8.31    14.41    7.00 
Bloomberg Barclays U.S. Aggregate Bond Index   —    –0.92    2.17    2.43    4.27 

 

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.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 November 30, 2016, the Managed Allocation Fund Composite Index consisted of: 42.0% Russell 3000 Index; 40.0% Bloomberg 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.

 

Asset allocation    
   % of net assets
as of 11/30/2016		  
Equity     
U.S. equity   43.1%
International equity   18.2 
Fixed income   38.6 
Other assets & liabilities, net   0.1 
Total   100.0 

Target allocation

 


8 2016 Semiannual Report  ■  TIAA-CREF Managed Allocation Fund
 

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.
  • Bloomberg 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 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.

 

TIAA-CREF Managed Allocation Fund  ■  2016 Semiannual Report 9
 

Portfolio of investments (unaudited)

 

Managed Allocation Fund  ■  November 30, 2016

 

Shares   Security      Value   % of net
assets		  
AFFILIATED INVESTMENT COMPANIES—99.9% (a)               
FIXED INCOME—38.6%               
 28,200,228   TIAA-CREF Bond Plus Fund      $293,000,374   38.6 %
 31,310   TIAA-CREF High-Yield Fund       301,512   0.0  
     TOTAL FIXED INCOME       293,301,886   38.6  
INTERNATIONAL EQUITY—18.2%               
 2,787,600   TIAA-CREF Emerging Markets Equity Fund       25,701,672   3.4  
 6,218,741   TIAA-CREF Enhanced International Equity Index Fund       41,914,317   5.5  
 160,084   TIAA-CREF Global Natural Resources Fund       1,411,938   0.2  
 3,490,877   TIAA-CREF International Equity Fund       35,432,405   4.7  
 3,360,125   TIAA-CREF International Opportunities Fund       33,769,255   4.4  
     TOTAL INTERNATIONAL EQUITY       138,229,587   18.2  
SHORT-TERM FIXED INCOME—0.0%               
 73,562   TIAA-CREF Money Market Fund       73,562   0.0  
     TOTAL SHORT-TERM FIXED INCOME       73,562   0.0  
U.S. EQUITY—43.1%               
 4,563,522   TIAA-CREF Enhanced Large-Cap Growth Index Fund       52,343,603   6.9  
 5,292,581   TIAA-CREF Enhanced Large-Cap Value Index Fund       53,984,328   7.1  
 5,336,027   TIAA-CREF Growth & Income Fund       64,992,809   8.6  
 3,754,676   TIAA-CREF Large-Cap Growth Fund       58,873,312   7.7  
 3,307,384   TIAA-CREF Large-Cap Value Fund       61,120,453   8.0  
 37,247   TIAA-CREF Mid-Cap Growth Fund       737,489   0.1  
 38,845   TIAA-CREF Mid-Cap Value Fund       917,912   0.1  
 1,211,564   TIAA-CREF Small-Cap Equity Fund       22,547,200   3.0  
 1,118,189   TIAA-CREF Small/Mid-Cap Equity Fund       11,785,708   1.6  
     TOTAL U.S. EQUITY       327,302,814   43.1  
     TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $680,894,333)   758,907,849   99.9  
                    
     TOTAL PORTFOLIO    (Cost $680,894,333)   758,907,849   99.9  
     OTHER ASSETS & LIABILITIES, NET       635,245   0.1  
     NET ASSETS      $759,543,094   100.0%  
                      

 

 

 

(a) The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds.

 

10 2016 Semiannual Report  ■  TIAA-CREF Managed Allocation Fund See notes to financial statements
 

Statement of assets and liabilities (unaudited)

 

Managed Allocation Fund  ■  November 30, 2016

 

ASSETS    
Affiliated investments, at value‡  $758,907,849 
Cash   628,842 
Receivable from securities transactions   6,342,155 
Receivable from Fund shares sold   394,749 
Dividends receivable   734,181 
Due from affiliates   4,267 
Other   56,511 
Total assets   767,068,554 
LIABILITIES     
Service agreement fees payable   1,152 
Distribution fees payable   141,324 
Due to affiliates   4,177 
Payable for securities transactions   6,920,217 
Payable for Fund shares redeemed   327,447 
Payable for trustee compensation   58,863 
Accrued expenses and other payables   72,280 
Total liabilities   7,525,460 
NET ASSETS  $759,543,094 
NET ASSETS CONSIST OF:     
Paid-in-capital  $667,828,910 
Undistributed net investment income (loss)   1,166,017 
Accumulated net realized gain (loss) on total investments   12,534,651 
Net unrealized appreciation (depreciation) on total investments   78,013,516 
NET ASSETS   $759,543,094 
INSTITUTIONAL CLASS:     
Net assets  $  12,321,741 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   1,044,314 
Net asset value per share   $11.80 
RETIREMENT CLASS:     
Net assets  $  56,017,493 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   4,753,616 
Net asset value per share   $11.78 
RETAIL CLASS:     
Net assets  $691,203,860 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   58,451,949 
Net asset value per share   $11.83 
‡ Affiliated investments, cost  $680,894,333 

 

See notes to financial statements TIAA-CREF Managed Allocation Fund  ■  2016 Semiannual Report 11
 

Statement of operations (unaudited)

 

Managed Allocation Fund  ■  For the period ended November 30, 2016

 

INVESTMENT INCOME    
Dividends from affiliated investments  $4,891,889 
Total income   4,891,889 
      
EXPENSES     
Shareholder servicing — Institutional Class   244 
Shareholder servicing — Retirement Class   65,309 
Shareholder servicing — Retail Class   101,347 
Distribution fees — Retail Class   871,320 
Administrative service fees   10,449 
Trustee fees and expenses   2,490 
Other expenses   90,681 
Total expenses   1,141,840 
Less: Expenses reimbursed by the investment adviser   (205,228)
Net expenses   936,612 
Net investment income (loss)   3,955,277 
      
NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS     
Net realized gain (loss) from investments   (83,642)
Net change in unrealized appreciation (depreciation) from affiliated investments   18,277,540 
Net realized and unrealized gain (loss) from investments   18,193,898 
Net increase (decrease) in net assets from operations  $22,149,175 

 

12 2016 Semiannual Report  ■  TIAA-CREF Managed Allocation Fund See notes to financial statements

 

[This page intentionally left blank.]

 

TIAA-CREF Managed Allocation Fund  ■  2016 Semiannual Report 13
 

Statements of changes in net assets

 

Managed Allocation Fund  ■  For the period or year ended

 

   November 30, 2016   May 31, 2016 
   (unaudited)    
OPERATIONS          
Net investment income (loss)  $3,955,277   $13,762,321 
Net realized gain (loss) from investments   (83,642)   20,849,573 
Net change in unrealized appreciation (depreciation) from affiliated investments   18,277,540    (47,434,495)
Net increase (decrease) in net assets from operations   22,149,175    (12,822,601)
           
DISTRIBUTIONS TO SHAREHOLDERS          
From net investment income:  Institutional Class   (91,168)   (344,467)
   Retirement Class   (280,327)   (1,091,795)
   Retail Class   (3,767,888)   (15,288,468)
From realized gains:  Institutional Class   —    (503,575)
   Retirement Class   —    (1,735,791)
   Retail Class   —    (24,217,596)
Total distributions   (4,139,383)   (43,181,692)
           
SHAREHOLDER TRANSACTIONS          
Subscriptions:  Institutional Class   3,555,984    2,367,816 
   Retirement Class   7,935,235    13,372,554 
   Retail Class   17,248,998    43,480,459 
Reinvestments of distributions:  Institutional Class   85,654    788,736 
   Retirement Class   280,327    2,827,586 
   Retail Class   3,611,134    37,967,658 
Redemptions:  Institutional Class   (4,304,720)   (3,720,256)
   Retirement Class   (3,549,610)   (11,560,175)
   Retail Class   (33,311,972)   (63,120,087)
Net increase (decrease) from shareholder transactions   (8,448,970)   22,404,291 
Net increase (decrease) in net assets   9,560,822    (33,600,002)
           
NET ASSETS          
Beginning of period   749,982,272    783,582,274 
End of period  $759,543,094   $749,982,272 
Undistributed net investment income (loss) included in net assets  $1,166,017   $1,350,123 

 

142016 Semiannual Report  ■  TIAA-CREF Managed Allocation Fund See notes to financial statements
 

Statements of changes in net assets

 

Managed Allocation Fund  ■  For the period or year ended

 

      November 30, 2016   May 31, 2016 
      (unaudited)    
CHANGE IN FUND SHARES             
Shares sold:  Institutional Class   307,719    201,339 
   Retirement Class   674,548    1,145,954 
   Retail Class   1,466,581    3,716,772 
Shares reinvested:  Institutional Class   7,406    70,154 
   Retirement Class   24,294    252,041 
   Retail Class   312,163    3,371,852 
Shares redeemed:  Institutional Class   (366,439)   (332,164)
   Retirement Class   (304,392)   (995,136)
   Retail Class   (2,833,333)   (5,426,623)
Net increase (decrease) from shareholder transactions  (711,453)   2,004,189 

 

See notes to financial statementsTIAA-CREF Managed Allocation Fund   ■  2016 Semiannual Report 15
 

Financial highlights

 

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  value,     investment   gain (loss)   (loss) from   Net   Net   dividends   value,       at end of           investment   Portfolio 
   or year  beginning   income   on total   investment   investment   realized   and   end of   Total   period or year   Gross   Net   income   turnover 
   ended  of period   (loss)a  investmentsj  operations   income   gains   distributions   period   return   (in thousands)  expensese  expensese  (loss)  rate 
Institutional Class:  11/30/16# $11.52   $0.08   $0.28   $0.36   $(0.08)  $    —   $(0.08)  $11.80    3.13%b  $  12,322    0.03%c   0.00%c   1.28%c   11%b
   5/31/16   12.42    0.25    (0.44)   (0.19)   (0.29)   (0.42)   (0.71)   11.52    (1.28)   12,625    0.03    0.00    2.12    17 
   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 
Retirement Class:  11/30/16#  11.51    0.06    0.27    0.33    (0.06)   —    (0.06)   11.78    2.91b   56,017    0.28c   0.25c   1.03c   11b
   5/31/16   12.41    0.21    (0.43)   (0.22)   (0.26)   (0.42)   (0.68)   11.51    (1.53)   50,168    0.28    0.25    1.84    17 
   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 
Retail Class:  11/30/16#  11.55    0.06    0.28    0.34    (0.06)   —    (0.06)   11.83    2.99b   691,204    0.31c   0.25c   1.03c   11b
   5/31/16   12.45    0.21    (0.43)   (0.22)   (0.26)   (0.42)   (0.68)   11.55    (1.53)   687,189    0.33    0.25    1.84    17 
   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 
# Unaudited
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.

 

16 2016 Semiannual Report  ■  TIAA-CREF Managed Allocation Fund See notes to financial statements   See notes to financial statements TIAA-CREF Managed Allocation Fund  ■  2016 Semiannual Report 17
 

Notes to financial statements (unaudited)

 

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, LLC (“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. Prior to October 1, 2016, Teachers Advisors, LLC was named Teachers Advisors, Inc. 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 2016 Semiannual 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 being 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.

 

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.

 

New rule issuances: In October 2016, the Commission issued Final Rule Release No. 33-10231, Investment Company Reporting Modernization. This final rule modernizes investment company reporting by requiring the filing of new forms N-PORT and N-CEN, and amends Regulation S-X disclosures related to derivatives and other disclosures in the financial statements and other filings. The requirements of this final rule in relation to forms N-PORT and N-CEN must be adopted by June 1, 2018, while the amended disclosures must be adopted by August 1, 2017. Management

 

TIAA-CREF Managed Allocation Fund  ■  2016 Semiannual Report 19
 

Notes to financial statements (unaudited)

 

is currently assessing the impact of this rule to the Fund’s financial statements and other filings.

 

In October 2016, the Commission issued Final Rule Release No. 33-10233, Investment Company Liquidity Risk Management Programs. This final rule requires funds to establish a liquidity risk management program and enhances disclosures regarding funds liquidity. The requirements of this final rule must be adopted by December 1, 2018. Management is currently assessing the impact of this rule to the Fund’s financial statements and other filings.

 

In October 2016, the Commission issued Final Rule Release No. 33-10234, Investment Company Swing Pricing. This final rule permits certain funds to use swing pricing during periods of heavy redemptions and requires certain disclosures regarding the use of swing pricing in forms filed with the Commission. Management may elect to adopt the provisions of this final rule by November 19, 2018. Management is currently assessing the impact of this rule to the Fund’s financial statements and other filings.

 

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.

 

Certain portfolio investments that are measured at fair value using the NAV per share practical expedient are not categorized within the fair value hierarchy. These investments will be disclosed at their fair value to allow reconciliation back to the Statement of Assets and Liabilities. As of November 30, 2016, no investments were valued utilizing the practical expedient.

 

20 2016 Semiannual Report  ■  TIAA-CREF Managed Allocation Fund
 

continued

 

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 NAV 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 period ended November 30, 2016, there were no transfers between levels by the Fund.

 

As of November 30, 2016, 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 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, 2017, unless changed with approval of the Board.

 

The Fund may purchase or sell investment securities in transactions with affiliated entities under procedures adopted by the Board, pursuant to the 1940 Act. These transactions are effected at market rates without incurring broker commissions. For the period ended November 30, 2016, these transactions did not materially impact the Fund.

 

TIAA-CREF Managed Allocation Fund  ■  2016 Semiannual Report 21
 

Notes to financial statements (unaudited)

 

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, 2016		   Purchase
cost		   Sales
proceeds		   Realized
gain (loss)		   Dividend
income		   Value at
November 30,
2016		 
TIAA-CREF Managed Allocation Fund                          
TIAA-CREF Bond Plus  $291,256,378   $26,200,888   $20,805,420   $(100,218)  $4,437,193   $293,000,374 
TIAA-CREF Emerging Markets Equity   23,411,230    3,752,158    3,171,144    (315,917)   —    25,701,672 
TIAA-CREF Enhanced International Equity Index   36,191,845    7,569,028    1,066,154    (102,599)   —    41,914,317 
TIAA-CREF Enhanced Large-Cap Growth Index   57,347,449    2,934,766    10,738,687    433,290    —    52,343,603 
TIAA-CREF Enhanced Large-Cap Value Index   55,111,340    4,073,266    9,869,430    110,999    —    53,984,328 
TIAA-CREF Global Natural Resources   6,790,143    265,658    6,419,384    (1,295,815)   —    1,411,938 
TIAA-CREF Growth & Income   49,946,845    14,936,240    2,431,298    29,874    335,583    64,992,809 
TIAA-CREF High-Yield   7,610,530    90,667    7,619,520    271,136    119,007    301,512 
TIAA-CREF International Equity   40,602,962    4,194,310    8,234,971    (388,410)   —    35,432,405 
TIAA-CREF International Opportunities   33,487,934    2,898,003    2,459,378    (106,078)   —    33,769,255 
TIAA-CREF Large-Cap Growth   59,921,729    3,102,352    4,520,409    46,494    —    58,873,312 
TIAA-CREF Large-Cap Value   57,683,678    2,234,662    4,858,487    182,754    —    61,120,453 
TIAA-CREF Mid-Cap Growth   3,204,051    93,678    2,606,696    215,435    —    737,489 
TIAA-CREF Mid-Cap Value   3,340,547    264,477    2,854,305    693,287    —    917,912 
TIAA-CREF Money Market   73,562    —    —    —    106    73,562 
TIAA-CREF Small-Cap Equity   23,726,932    2,508,341    7,511,257    241,154    —    22,547,200 
TIAA-CREF Small/Mid-Cap Equity   —    11,097,730    42,888    972    —    11,785,708 
   $749,707,155   $86,216,224   $95,209,428   $(83,642)  $4,891,889   $758,907,849 

 

Note 4—investments

 

Net unrealized appreciation (depreciation): At November 30, 2016, the cost of portfolio investments for federal income tax purposes was $686,562,787. Net unrealized appreciation of portfolio investments for federal income tax purposes was $72,345,062, consisting of gross unrealized appreciation of $80,616,371 and gross unrealized depreciation of $(8,271,309).

 

Purchases and sales: Purchases and sales of portfolio securities (other than short-term instruments) for the period ended November 30, 2016 were $86,216,224 and $95,209,428, respectively.

 

22 2016 Semiannual Report  ■  TIAA-CREF Managed Allocation Fund
 

concluded

 

Note 5—distributions to shareholders and other tax items

 

The tax character of distributions paid to shareholders during the year ended May 31, 2016 was as follows:

 

  Ordinary income Long-term
capital gains		 Total
5/31/2016 $16,724,730 $26,456,962 $43,181,692

 

The tax character of the fiscal year 2017 distributions will be determined at the end of the fiscal year.

 

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. The current facility was entered into on June 21, 2016 expiring on June 20, 2017, replacing the previous facility, which expired June 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 period ended November 30, 2016, there were no borrowings under this credit facility by the Fund.

 

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  ■  2016 Semiannual Report 23
 

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 marks of MSCI or its affiliates and have been licensed for use for certain purposes by Teachers Advisors, LLC. 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

 

24 2016 Semiannual Report  ■  TIAA-CREF Managed Allocation Fund
 

the determination or calculation of the equation by or the consideration into which 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  ■  2016 Semiannual Report 25
 

[This page intentionally left blank.]

 

How to reach us

 

TIAA website

 

TIAA.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.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 Global Asset Management provides investment advice and portfolio management services through TIAA and over a dozen affiliated registered investment advisers. TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., and Nuveen Securities, LLC, members FINRA and SIPC, distribute securities products.

 

©2017 Teachers Insurance and Annuity Association of America—College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017-3206

 
  730 Third Avenue
New York, NY 10017-3206		 PRESORTED STANDARD
U.S. POSTAGE
PAID
TIAA

 

 

 

Printed on paper containing recycled fiber

 

We’re fond of paper…in its original form.

Switch to eDelivery at

TIAA.org/eDelivery

C37164 A12486 (1/17)
 
  730 Third Avenue
New York, NY 10017-3206

 

 

 

Printed on paper containing recycled fiber

 

C37164 A12486 (1/17)
 
  730 Third Avenue
New York, NY 10017-3206

 

C37164 A12486 (1/17)
 

Item 2. Code of Ethics.

 

Not Applicable.

 

Item 3. Audit Committee Financial Expert.

 

Not Applicable.

 

Item 4. Principal Accountant Fees and Services.

 

Not Applicable.

 

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 semi-annual reporting period.

 

(b) There were no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s semi-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)(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
       
Dated:  January 13, 2017   By: /s/Robert G. Leary
      Robert G. Leary
      Principal Executive Officer and President

 

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.

 

Dated:  January 13, 2017   By: /s/Robert G. Leary
      Robert G. Leary
      Principal Executive Officer and President
      (principal executive officer)
       
Dated:  January 13, 2017   By: /s/Glenn E. Brightman
      Glenn E. Brightman
      Principal Financial Officer, Principal Accounting
Officer and Treasurer
      (principal financial officer)
 

EXHIBIT INDEX

 

Item 12. Exhibits.

 

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