N-CSR 1 c101609_ncsr.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)

 

Jeremy D. Franklin, Esq.

TIAA-CREF Funds

8500 Andrew Carnegie Blvd.

Charlotte, N.C. 28262-8500

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 704-595-1000

 

Date of fiscal year end: May 31

 

Date of reporting period: May 31, 2021

 

Item 1. Reports to Stockholders.

 

     
TIAA-CREF
Funds		 May 31,
2021
     

 

 

TIAA-CREF
Lifecycle Funds

The annual report contains the audited financial statements.

 

Fund name Institutional
Class		 Advisor
Class		 Premier
Class		 Retirement
Class		 Retail
Class
Lifecycle Retirement Income Fund TLRIX TLRHX TPILX TLIRX TLRRX
Lifecycle 2010 Fund TCTIX TCLHX TCTPX TCLEX —
Lifecycle 2015 Fund TCNIX TCNHX TCFPX TCLIX —
Lifecycle 2020 Fund TCWIX TCWHX TCWPX TCLTX —
Lifecycle 2025 Fund TCYIX TCQHX TCQPX TCLFX —
Lifecycle 2030 Fund TCRIX TCHHX TCHPX TCLNX —
Lifecycle 2035 Fund TCIIX TCYHX TCYPX TCLRX —
Lifecycle 2040 Fund TCOIX TCZHX TCZPX TCLOX —
Lifecycle 2045 Fund TTFIX TTFHX TTFPX TTFRX —
Lifecycle 2050 Fund TFTIX TFTHX TCLPX TLFRX —
Lifecycle 2055 Fund TTRIX TTRHX TTRPX TTRLX —
Lifecycle 2060 Fund TLXNX TLXHX TLXPX TLXRX —
Lifecycle 2065 Fund TSFTX TSFHX TSFPX TCFRX —

 

Annual
Report

 

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the TIAA-CREF Funds’ (the “Funds”) annual and semiannual shareholder reports will not be sent to you by mail, unless you specifically request paper copies of the reports. Instead, they will be made available on TIAA’s website, TIAA.org, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive shareholder reports and other communications from the Funds electronically anytime by either (1) updating your account settings at TIAA.org/eDelivery, if you invest in the Funds directly or hold your Fund shares through a TIAA-affiliated financial intermediary, account or retirement plan (each, a “TIAA Account”), or (2) contacting your financial intermediary (such as a broker/dealer or bank) through which you hold Fund shares.

If you invest directly with the Funds or through a TIAA Account, you may elect to receive all future shareholder reports in paper free of charge by updating your account settings at TIAA.org/eDelivery or by calling 800-842-2252 during regular business hours. If you invest through another financial intermediary, you can contact your financial intermediary to request that you receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the fund complex if you invest directly with the Funds or through a TIAA Account, or to all funds held through your financial intermediary.

 

Contents

 


 

 

Understanding this report

 

This annual report contains information about certain TIAA-CREF Funds and describes their results for the twelve months ended May 31, 2021. The report contains four main sections:

  • A letter from Brad Finkle, President of the TIAA-CREF Fund Complex.
  • The fund performance section compares each fund’s investment returns with those of its composite benchmark and broad market index.
  • The portfolios of investments list the underlying funds in which each fund had investments as of May 31, 2021.
  • 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. To see the risks of investing in any fund, please read the 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 websites at TIAA.org or nuveen.com, 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.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 3
 

Letter to investors

 

Global financial markets generated mostly positive results for the twelve months ended May 31, 2021, as the economic ramifications of the COVID-19 pandemic diminished. U.S. equities posted double-digit gains amid continued economic expansion during the period. Foreign stocks also soared, with emerging markets faring better than both international developed markets and domestic equities. U.S. fixed-income securities declined modestly as U.S. Treasury yields rose across longer-term maturities (bond prices move in the opposite direction of yields). These market conditions were reflected in the performance of the TIAA-CREF Lifecycle Funds by way of their investments in various asset classes through underlying funds.

 

  • All of the TIAA-CREF Lifecycle Funds delivered strong gains for the period, and all outperformed their respective composite benchmarks. (All fund returns are for the Retirement Class.)
  • Returns for the Retirement Class ranged from 17.4% for the Lifecycle Retirement Income Fund to 41.3% for the Lifecycle 2060 Fund.
  • These results continued to support the solid performance of the TIAA-CREF Lifecycle Funds over longer periods of time.
  • On September 30, 2020, the TIAA-CREF Lifecycle 2065 Fund commenced operations.

 

U.S. and international stocks posted substantial gains

U.S. equities posted impressive gains for the twelve months as many businesses and restaurants resumed operations with the continual easing of COVID-19 restrictions. The broad domestic stock market, as represented by the Russell 3000® Index, advanced 43.9%. The U.S. economy expanded considerably during the third quarter of 2020 and continued its growth trajectory into the fourth quarter of 2020 and the first quarter of 2021. The Federal Reserve kept the federal funds target rate at 0.00%–0.25%, while the federal government took aggressive fiscal action with two large stimulus measures.

International stocks surpassed their U.S. counterparts. The MSCI ACWI ex USA Investable Market Index (IMI), which measures the performance of large-, mid- and small-cap equities in 22 of 23 developed-markets countries (excluding the United States) and 27 emerging-markets countries, returned 44.1% in U.S.-dollar terms. In the fourth quarter of 2020 and the first quarter of 2021, the 19-nation euro area contracted, while China’s economy posted impressive growth—particularly in the first quarter of this year.

U.S. investment-grade bonds suffered a small loss as U.S. Treasury yields rose across longer-term maturities. The domestic investment-grade fixed-rate bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, returned –0.4% for the period.

 

4 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Brad Finkle

 

In investing, change is the only constant

As we enter the summer months and reflect on the transformative and challenging twelve-plus months of the COVID-19 pandemic, it’s heartening to see that businesses are reopening and people are returning to a more “normal” life. But the financial markets always look forward, and recent volatility reflects new concerns about inflation, interest rates, and the pace and duration of the global economic recovery.

In investing, as in life, speculation about what may happen in the future is never-ending. In fact, market fluctuation may be the only constant. As a result, we believe that adhering to a long-term financial plan and staying invested in a diversified portfolio that includes multiple asset classes are wise strategies to deal with the ever-present factors of risk and uncertainty. The TIAA-CREF Lifecycle Funds use dynamic diversification strategies designed to help mitigate the effects of market volatility and keep you on track to achieve your financial goals. Of course, diversification does not guarantee against market losses, and past performance cannot guarantee future results.

We thank you again for trusting us to manage your investments through the TIAA-CREF Lifecycle Funds. If you have any questions or concerns, please consult your financial advisor or call a TIAA financial consultant at 800-842-2252. You can also reach us online by visiting TIAA.org. We always stand ready to assist you.

 

/s/ Brad Finkle

 

Brad Finkle

President of the TIAA-CREF Fund Complex

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 5
 

Information for investors

 

Portfolio holdings

The complete portfolios of investments for the Lifecycle Funds begin on page 46 of this report. You can obtain complete lists of the holdings of the Lifecycle Funds and of the underlying TIAA-CREF Funds in which the Lifecycle Funds invest as of the most recently completed fiscal quarter in the following ways:

  • By visiting our websites at TIAA.org or nuveen.com; or
  • By calling us at 800-842-2252 to request a copy, which will be provided free of charge.

You can also 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-PORT filings. Form N-CSR filings are as of May 31 or November 30; Form N-PORT 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 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 TIAA-CREF Funds of the Lifecycle Funds can be found on our website at TIAA.org or on the SEC’s website at sec.gov. You can also call us at 800-842-2252 to request a free copy. A report of how the Lifecycle Funds’ underlying TIAA-CREF 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 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. The members of this team are responsible for the day-to-day investment management of the funds.

 

6 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

About the funds’ benchmarks

 

Composite benchmark

Each Lifecycle Fund uses a composite benchmark that represents the general market sectors in which that fund invests. These may include U.S. equity (stocks), international equity (foreign stocks), fixed income, short-term fixed income and inflation-protected assets. A fund’s composite benchmark combines the following public indexes in proportions that 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 ACWI ex USA Investable Market Index (IMI) (international equity) measures the performance of large-, mid- and small-cap equities across 22 of 23 developed-markets countries (excluding the United States) and 27 emerging-markets countries. The index is a free-float-adjusted market capitalization index that covers approximately 99% of the global equity opportunity set outside 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).

 

Broad market indexes

The returns shown against the broad-based securities market index compare a fund’s average annual returns with a broad measure of market performance. The S&P Target Date Index Series represents a broadly derived consensus of asset class exposure for the target retirement dates in the series based on market observations acquired through an annual survey of target-date fund managers. The returns of the S&P Target Date Index Series reflect multi-asset class exposure for the same target dates as the Funds.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 7
 

About the funds’ benchmarks

 

Russell 3000 is a trademark and service mark of Frank Russell Company. TIAA products are not promoted or sponsored by, or affiliated with, Frank Russell Company. 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. For additional details about the benchmark indexes, please read the funds’ latest prospectus.

 

8 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Important information about expenses

 

All shareholders of the TIAA-CREF Funds incur ongoing costs, including management fees and other fund expenses. They may also incur transactional costs for redemptions or account maintenance fees.

The expense examples that appear in this report are intended to help you understand your ongoing costs only (in U.S. dollars) and do not reflect transactional costs. 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 total costs for investing in the funds would be higher. Note also that shareholders of the TIAA-CREF Funds do not incur a sales charge for purchases, reinvested dividends or other distributions.

The examples are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (December 1, 2020–May 31, 2021).

 

Actual expenses

The first line of the two lines listed for each fund in the tables uses the Fund’s actual expenses and its actual rate of return. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the six-month period.

Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses paid during period” to estimate the expenses you paid during the six-month period. All of the funds have a contractual fee reimbursement. Had these not been in effect, fund expenses would have been higher.

 

Hypothetical example for comparison purposes

The second line in each Fund’s entry shows a hypothetical account value and hypothetical expenses based on the share class’ 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  ■  2021 Annual Report 9
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

   Beginning   Ending       Effective 
   account   account   Expenses paid   expenses paid 
Lifecycle Funds  value   value   during period*  during period† 
Institutional Class  (12/1/20)  (5/31/21)  (12/1/20–5/31/21)  (12/1/20–5/31/21)
Retirement Income Fund actual return  $1,000.00    $1,064.15              $1.39             $1.85 
5% annual hypothetical return   1,000.00    1,023.59    1.36    1.82 
2010 Fund actual return   1,000.00    1,064.16    1.39    1.80 
5% annual hypothetical return   1,000.00    1,023.59    1.36    1.77 
2015 Fund actual return   1,000.00    1,070.88    1.39    1.86 
5% annual hypothetical return   1,000.00    1,023.59    1.36    1.82 
2020 Fund actual return   1,000.00    1,079.65    1.40    1.92 
5% annual hypothetical return   1,000.00    1,023.59    1.36    1.87 
2025 Fund actual return   1,000.00    1,092.87    1.41    2.03 
5% annual hypothetical return   1,000.00    1,023.59    1.36    1.97 
2030 Fund actual return   1,000.00    1,107.80    1.42    2.10 
5% annual hypothetical return   1,000.00    1,023.59    1.36    2.02 
2035 Fund actual return   1,000.00    1,122.37    1.38    2.17 
5% annual hypothetical return   1,000.00    1,023.64    1.31    2.07 
2040 Fund actual return   1,000.00    1,138.71    1.33    2.19 
5% annual hypothetical return   1,000.00    1,023.68    1.26    2.07 
2045 Fund actual return   1,000.00    1,155.06    1.34    2.31 
5% annual hypothetical return   1,000.00    1,023.68    1.26    2.17 
2050 Fund actual return   1,000.00    1,159.26    1.29    2.26 
5% annual hypothetical return   1,000.00    1,023.73    1.21    2.12 
2055 Fund actual return   1,000.00    1,161.69    1.29    2.32 
5% annual hypothetical return   1,000.00    1,023.73    1.21    2.17 
2060 Fund actual return   1,000.00    1,163.86    1.29    2.32 
5% annual hypothetical return   1,000.00    1,023.73    1.21    2.17 
2065 Fund actual return   1,000.00    1,166.77    1.30    1.89 
5% annual hypothetical return   1,000.00    1,023.73    1.21    1.77 

 

10 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Important information about expenses

 

* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 on which this waiver or reimbursement is scheduled to end. Without 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 0.27% for the Retirement Income Fund, 0.27% for the 2010 Fund, 0.27% for the 2015 Fund, 0.27% for the 2020 Fund, 0.27% for the 2025 Fund, 0.27% for the 2030 Fund, 0.26% for the 2035 Fund, 0.25% for the 2040 Fund, 0.25% for the 2045 Fund, 0.24% for the 2050 Fund, 0.24% for the 2055 Fund, 0.24% for the 2060 Fund and 0.24% for the 2065 Fund.
† “Effective expenses paid during period” is 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, 0.35% for the 2010 Fund, 0.36% for the 2015 Fund, 0.37% for the 2020 Fund, 0.39% for the 2025 Fund, 0.40% for the 2030 Fund, 0.41% for the 2035 Fund, 0.41% for the 2040 Fund, 0.43% for the 2045 Fund, 0.42% for the 2050 Fund, 0.43% for the 2055 Fund, 0.43% for the 2060 Fund and 0.35% for the 2065 Fund.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 11
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

   Beginning   Ending       Effective 
   account   account   Expenses paid   expenses paid 
Lifecycle Funds  value   value   during period*  during period† 
Advisor Class  (12/1/20)  (5/31/21)  (12/1/20–5/31/21)  (12/1/20–5/31/21)
Retirement Income Fund actual return  $1,000.00    $1,063.73              $1.96             $2.42 
5% annual hypothetical return   1,000.00    1,023.04    1.92    2.37 
2010 Fund actual return   1,000.00    1,062.79    1.90    2.37 
5% annual hypothetical return   1,000.00    1,023.09    1.87    2.32 
2015 Fund actual return   1,000.00    1,071.17    2.01    2.48 
5% annual hypothetical return   1,000.00    1,022.99    1.97    2.42 
2020 Fund actual return   1,000.00    1,078.03    1.81    2.33 
5% annual hypothetical return   1,000.00    1,023.19    1.77    2.27 
2025 Fund actual return   1,000.00    1,092.49    1.88    2.45 
5% annual hypothetical return   1,000.00    1,023.14    1.82    2.37 
2030 Fund actual return   1,000.00    1,107.15    1.84    2.52 
5% annual hypothetical return   1,000.00    1,023.19    1.77    2.42 
2035 Fund actual return   1,000.00    1,121.72    1.90    2.64 
5% annual hypothetical return   1,000.00    1,023.14    1.82    2.52 
2040 Fund actual return   1,000.00    1,138.25    1.81    2.67 
5% annual hypothetical return   1,000.00    1,023.24    1.72    2.52 
2045 Fund actual return   1,000.00    1,154.68    1.72    2.63 
5% annual hypothetical return   1,000.00    1,023.34    1.61    2.47 
2050 Fund actual return   1,000.00    1,158.36    1.72    2.69 
5% annual hypothetical return   1,000.00    1,023.34    1.61    2.52 
2055 Fund actual return   1,000.00    1,160.89    1.62    2.64 
5% annual hypothetical return   1,000.00    1,023.44    1.51    2.47 
2060 Fund actual return   1,000.00    1,162.96    1.73    2.70 
5% annual hypothetical return   1,000.00    1,023.34    1.61    2.52 
2065 Fund actual return   1,000.00    1,165.45    2.11    2.70 
5% annual hypothetical return   1,000.00    1,022.99    1.97    2.52 

 

12 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Important information about expenses

 

* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 on which this waiver or reimbursement is scheduled to end. Without 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 0.38% for the Retirement Income Fund, 0.37% for the 2010 Fund, 0.39% for the 2015 Fund, 0.35% for the 2020 Fund, 0.36% for the 2025 Fund, 0.35% for the 2030 Fund, 0.36% for the 2035 Fund, 0.34% for the 2040 Fund, 0.32% for the 2045 Fund, 0.32% for the 2050 Fund, 0.30% for the 2055 Fund, 0.32% for the 2060 Fund and 0.39% for the 2065 Fund.
† “Effective expenses paid during period” is 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 0.47% for the Retirement Income Fund, 0.46% for the 2010 Fund, 0.48% for the 2015 Fund, 0.45% for the 2020 Fund, 0.47% for the 2025 Fund, 0.48% for the 2030 Fund, 0.50% for the 2035 Fund, 0.50% for the 2040 Fund, 0.49% for the 2045 Fund, 0.50% for the 2050 Fund, 0.49% for the 2055 Fund, 0.50% for the 2060 Fund and 0.50% for the 2065 Fund.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 13
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

   Beginning   Ending       Effective 
   account   account   Expenses paid   expenses paid 
Lifecycle Funds  value   value   during period*  during period† 
Premier Class  (12/1/20)  (5/31/21)  (12/1/20–5/31/21)  (12/1/20–5/31/21)
Retirement Income Fund actual return  $1,000.00    $1,063.38              $2.16             $2.62 
5% annual hypothetical return   1,000.00    1,022.84    2.12    2.57 
2010 Fund actual return   1,000.00    1,063.63    2.16    2.57 
5% annual hypothetical return   1,000.00    1,022.84    2.12    2.52 
2015 Fund actual return   1,000.00    1,070.56    2.17    2.63 
5% annual hypothetical return   1,000.00    1,022.84    2.12    2.57 
2020 Fund actual return   1,000.00    1,078.23    2.18    2.69 
5% annual hypothetical return   1,000.00    1,022.84    2.12    2.62 
2025 Fund actual return   1,000.00    1,092.69    2.19    2.82 
5% annual hypothetical return   1,000.00    1,022.84    2.12    2.72 
2030 Fund actual return   1,000.00    1,106.79    2.21    2.89 
5% annual hypothetical return   1,000.00    1,022.84    2.12    2.77 
2035 Fund actual return   1,000.00    1,122.06    2.17    2.96 
5% annual hypothetical return   1,000.00    1,022.89    2.07    2.82 
2040 Fund actual return   1,000.00    1,138.47    2.13    2.99 
5% annual hypothetical return   1,000.00    1,022.94    2.02    2.82 
2045 Fund actual return   1,000.00    1,154.29    2.15    3.12 
5% annual hypothetical return   1,000.00    1,022.94    2.02    2.92 
2050 Fund actual return   1,000.00    1,158.30    2.10    3.07 
5% annual hypothetical return   1,000.00    1,022.99    1.97    2.87 
2055 Fund actual return   1,000.00    1,160.17    2.10    3.12 
5% annual hypothetical return   1,000.00    1,022.99    1.97    2.92 
2060 Fund actual return   1,000.00    1,162.89    2.10    3.13 
5% annual hypothetical return   1,000.00    1,022.99    1.97    2.92 
2065 Fund actual return   1,000.00    1,164.51    2.10    2.70 
5% annual hypothetical return   1,000.00    1,022.99    1.97    2.52 

 

14 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Important information about expenses

 

* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 on which this waiver or reimbursement is scheduled to end. Without 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 0.42% for the Retirement Income Fund, 0.42% for the 2010 Fund, 0.42% for the 2015 Fund, 0.42% for the 2020 Fund, 0.42% for the 2025 Fund, 0.42% for the 2030 Fund, 0.41% for the 2035 Fund, 0.40% for the 2040 Fund, 0.40% for the 2045 Fund, 0.39% for the 2050 Fund, 0.39% for the 2055 Fund, 0.39% for the 2060 Fund and 0.39% for the 2065 Fund.
† “Effective expenses paid during period” is 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, 0.50% for the 2010 Fund, 0.51% for the 2015 Fund, 0.52% for the 2020 Fund, 0.54% for the 2025 Fund, 0.55% for the 2030 Fund, 0.56% for the 2035 Fund, 0.56% for the 2040 Fund, 0.58% for the 2045 Fund, 0.57% for the 2050 Fund, 0.58% for the 2055 Fund, 0.58% for the 2060 Fund and 0.50% for the 2065 Fund.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 15
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

   Beginning   Ending       Effective 
   account   account   Expenses paid   expenses paid 
Lifecycle Funds  value   value   during period*  during period† 
Retirement Class  (12/1/20)  (5/31/21)  (12/1/20–5/31/21)  (12/1/20–5/31/21)
Retirement Income Fund actual return  $1,000.00    $1,063.80              $2.68             $3.09 
5% annual hypothetical return   1,000.00    1,022.34    2.62    3.02 
2010 Fund actual return   1,000.00    1,062.56    2.67    3.09 
5% annual hypothetical return   1,000.00    1,022.34    2.62    3.02 
2015 Fund actual return   1,000.00    1,069.93    2.68    3.15 
5% annual hypothetical return   1,000.00    1,022.34    2.62    3.07 
2020 Fund actual return   1,000.00    1,078.63    2.69    3.21 
5% annual hypothetical return   1,000.00    1,022.34    2.62    3.13 
2025 Fund actual return   1,000.00    1,091.86    2.71    3.34 
5% annual hypothetical return   1,000.00    1,022.34    2.62    3.23 
2030 Fund actual return   1,000.00    1,106.47    2.73    3.41 
5% annual hypothetical return   1,000.00    1,022.34    2.62    3.28 
2035 Fund actual return   1,000.00    1,121.60    2.70    3.49 
5% annual hypothetical return   1,000.00    1,022.39    2.57    3.33 
2040 Fund actual return   1,000.00    1,137.34    2.66    3.52 
5% annual hypothetical return   1,000.00    1,022.44    2.52    3.33 
2045 Fund actual return   1,000.00    1,154.03    2.69    3.65 
5% annual hypothetical return   1,000.00    1,022.44    2.52    3.43 
2050 Fund actual return   1,000.00    1,157.48    2.64    3.60 
5% annual hypothetical return   1,000.00    1,022.49    2.47    3.38 
2055 Fund actual return   1,000.00    1,160.07    2.64    3.66 
5% annual hypothetical return   1,000.00    1,022.49    2.47    3.43 
2060 Fund actual return   1,000.00    1,162.34    2.64    3.67 
5% annual hypothetical return   1,000.00    1,022.49    2.47    3.43 
2065 Fund actual return   1,000.00    1,163.30    2.64    3.24 
5% annual hypothetical return   1,000.00    1,022.49    2.47    3.02 

 

16 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Important information about expenses

 

* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 on which this waiver or reimbursement is scheduled to end. Without 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 0.52% for the Retirement Income Fund, 0.52% for the 2010 Fund, 0.52% for the 2015 Fund, 0.52% for the 2020 Fund, 0.52% for the 2025 Fund, 0.52% for the 2030 Fund, 0.51% for the 2035 Fund, 0.50% for the 2040 Fund, 0.50% for the 2045 Fund, 0.49% for the 2050 Fund, 0.49% for the 2055 Fund, 0.49% for the 2060 Fund and 0.49% for the 2065 Fund.
† “Effective expenses paid during period” is 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 0.60% for the Retirement Income Fund, 0.60% for the 2010 Fund, 0.61% for the 2015 Fund, 0.62% for the 2020 Fund, 0.64% for the 2025 Fund, 0.65% for the 2030 Fund, 0.66% for the 2035 Fund, 0.66% for the 2040 Fund, 0.68% for the 2045 Fund, 0.67% for the 2050 Fund, 0.68% for the 2055 Fund, 0.68% for the 2060 Fund and 0.60% for the 2065 Fund.

 

Expense examples

 

Six months ended May 31, 2021

   Beginning   Ending       Effective 
   account   account   Expenses paid   expenses paid 
Lifecycle Funds  value   value   during period*  during period† 
Retail Class  (12/1/20)  (5/31/21)  (12/1/20–5/31/21)  (12/1/20–5/31/21)
Retirement Income Fund actual return  $1,000.00    $1,062.91             $2.67              $3.14 
5% annual hypothetical return   1,000.00    1,022.34    2.62    3.07 

 

* “Expenses paid during period” is based on the Fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. The expense charges of this fund may at times reflect a waiver or reimbursement. Please see the prospectus for an explanation, including the date on which this waiver or reimbursement is scheduled to end. Without 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 0.52% for the Retirement Income Fund.
† “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 six-month period, the total annualized weighted average expense ratio was 0.61% for the Retirement Income Fund.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 17
 

Investment results of the Lifecycle Funds

 

Performance for the twelve months ended May 31, 2021

All of the TIAA-CREF Lifecycle Funds produced strong double-digit gains and outperformed their respective composite benchmarks. Returns for the Retirement Class ranged from 17.43% for the Lifecycle Retirement Income Fund to 41.31% for the Lifecycle 2060 Fund. The performance tables show returns for all share classes of the funds.

For the twelve months, the margin of outperformance of the Lifecycle Funds, in relation to their respective composite benchmarks, ranged from 0.52 of a percentage point for the 2060 Fund to 0.94 of a percentage point for the 2035 Fund. (All results for the Lifecycle Funds are for the Retirement Class.)

 

Economic recovery drove stocks sharply higher

The U.S. economy grew at a robust pace during the period, staging a strong recovery from the impact of the COVID-19 pandemic. Real gross domestic product (GDP), which measures the value of all goods and services produced in the United States, grew by 33.4% during the third quarter of 2020, bouncing back from a steep contraction the previous three months. GDP expanded by 4.3% during the fourth quarter of 2020 and 6.4% during the first three months of 2021 (the latter according to the government’s “second” estimate). Unemployment declined steadily from 11.1% at the start of the period to 5.8% in May 2021. Core inflation, which includes all items except food and energy, rose by 3.8% over the twelve months ended May 31, 2021.

The Federal Reserve left the federal funds target rate unchanged over the twelve-month period, maintaining the key short-term interest-rate measure at 0.00%–0.25%.

Domestic and foreign stocks generated strong gains for the period. The Russell 3000® Index, a broad measure of the U.S. stock market, climbed 43.91%. The MSCI ACWI ex USA Investable Market Index (IMI), which measures the performance of large-, mid- and small-cap equities in 22 of 23 developed-markets countries (excluding the United States) and 27 emerging-markets countries, advanced 44.08% in U.S.-dollar terms.

U.S. investment-grade bonds were generally hurt by rising long-term interest rates. The broad domestic investment-grade fixed-rate bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, returned -0.40% for the period. Short-term bonds, as measured by the Bloomberg Barclays U.S. 1–3 Year Government/Credit Index, gained 0.80%.

 

Stock funds generated largest gains

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,

 

18 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

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. (Other than the Nuveen Dividend Value Fund, the Nuveen International Growth Fund and the Nuveen Santa Barbara Dividend Growth Fund, all funds mentioned below are TIAA-CREF Funds.)

For the twelve-month period, the funds’ absolute returns—that is, without regard to the performance of their respective composite benchmarks—benefited from strong returns among domestic and international stocks, as well as more modest gains by fixed-income investments. Among domestic stock funds, the Quant Small-Cap Equity Fund delivered the highest return, followed closely by the Quant Small/Mid-Cap Equity Fund, the Large-Cap Value Fund and the Growth & Income Fund. Within the foreign equity category, the Emerging Markets Equity Fund performed best, followed by the International Equity Fund, the Quant International Small-Cap Equity Fund and the International Opportunities Fund. Among fixed-income funds, the Emerging Markets Debt Fund advanced most, followed by the High-Yield Fund and the Inflation-Linked Bond Fund. The Core Bond Fund and Core Plus Bond Fund also generated positive returns.

 

U.S. stock and global bond funds boosted relative performance

All of the Lifecycle Funds outperformed their composite benchmarks, primarily due to the performance of underlying funds investing in U.S. stocks and both foreign and domestic bonds. Among domestic equity funds, the Growth & Income Fund contributed most to relative performance, followed by the Large-Cap Growth Fund, while the Nuveen Santa Barbara Dividend Growth Fund detracted most. Among foreign stock funds, the International Equity Fund was the largest contributor to relative performance, followed by the Emerging Markets Equity Fund. Their impact was partially offset by the Nuveen International Growth Fund and the Quant International Equity Fund, both of which lagged their respective benchmarks.

Among fixed-income funds, the Core Bond Fund and the Core Plus Bond Fund both generated strong relative returns.

The Lifecycle Funds with larger stock allocations produced greater gains for the twelve-month period. For example, the 2050, 2055 and 2060 Funds, each of which seeks to invest at least 90% of its assets in equities, generated returns in excess of 40.0%. By comparison, the Retirement Income Fund, which invests about 35% of its assets in stocks, recorded the smallest gain for the period. (Performance of the Lifecycle Funds’ underlying TIAA-CREF Funds can be found at TIAA.org/performance.)

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 19
 

Lifecycle Retirement Income Fund

 

Performance as of May 31, 2021

Lifecycle Retirement Income Fund         Average annual  Annual operating
      Total Return  total return  expenses*#
   Inception
date		  1 year   5 years   10 years   gross   net 
Institutional Class  11/30/07   17.67%   8.16%   6.71%   0.54%   0.37%
Advisor Class  12/4/15   17.57    8.09    6.56†   0.63    0.47 
Premier Class  9/30/09   17.51    7.98    6.54    0.69    0.52 
Retirement Class  11/30/07   17.43    7.89    6.45    0.78    0.62 
Retail Class  11/30/07   17.31    7.88    6.45    0.81    0.62 
Lifecycle Retirement Income Fund Composite Index‡  —   16.84    8.24    6.67    —    — 
Broad market index                            
S&P Target Date Retirement Income Index  —   11.69    6.36    5.27    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle 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 Index ex USA Investable Market 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.

 

20 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle Retirement Income Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 25.35 24.50
International equity 11.02 10.50
Fixed income    
Fixed income 39.84 40.00
Short-term fixed income 9.96 10.00
Inflation-protected assets 10.00 10.00
Direct real estate 3.73 5.00
Other assets & liabilities, net 0.10 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 21
 

Lifecycle 2010 Fund

 

Performance as of May 31, 2021

Lifecycle 2010 Fund         Average annual  Annual operating
      Total Return  total return  expenses*#
   Inception
date		  1 year   5 years   10 years   gross   net 
Institutional Class  1/17/07   17.75%   8.35%   6.97%   0.52%   0.37%
Advisor Class  12/4/15   17.57    8.35    6.85†   0.61    0.45 
Premier Class  9/30/09   17.62    8.19    6.82    0.67    0.52 
Retirement Class  10/15/04   17.45    8.09    6.71    0.77    0.62 
Lifecycle 2010 Fund Composite Index‡  —   16.69    8.40    6.95    —    — 
Broad market index                            
S&P Target Date 2010 Index  —   14.64    7.28    5.99    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle 2010 Fund Composite Index consisted of: 40.0% Bloomberg Barclays U.S. Aggregate Bond Index; 27.4% Russell 3000® Index; 11.7% MSCI All Country World Index ex USA Investable Market Index; 10.9% 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.

 

22 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2010 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 24.94 24.15
International equity 10.84 10.35
Fixed income    
Fixed income 39.83 40.00
Short-term fixed income 10.83 11.00
Inflation-protected assets 10.00 10.00
Direct real estate 3.42 4.50
Other assets & liabilities, net 0.14 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 23
 

Lifecycle 2015 Fund

 

Performance as of May 31, 2021

Lifecycle 2015 Fund         Average annual  Annual operating
      Total Return  total return  expenses*#
   Inception
date		  1 year   5 years   10 years   gross   net 
Institutional Class  1/17/07   19.56%   8.94%   7.41%   0.52%   0.38%
Advisor Class  12/4/15   19.60    8.91    7.27†   0.60    0.46 
Premier Class  9/30/09   19.47    8.78    7.24    0.68    0.53 
Retirement Class  10/15/04   19.34    8.68    7.14    0.77    0.63 
Lifecycle 2015 Fund Composite Index‡  —   18.67    9.03    7.44    —    — 
Broad market index                            
S&P Target Date 2015 Index  —   16.93    8.02    6.63    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle 2015 Fund Composite Index consisted of: 39.2% Bloomberg Barclays U.S. Aggregate Bond Index; 30.8% Russell 3000® Index; 13.2% MSCI All Country World Index ex USA Investable Market Index; 8.4% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 8.4% 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 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2015 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 28.22 27.30
International equity 12.24 11.70
Fixed income    
Fixed income 39.01 39.20
Short-term fixed income 8.30 8.40
Inflation-protected assets 8.35 8.40
Direct real estate 3.75 5.00
Other assets & liabilities, net 0.13 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 25
 

Lifecycle 2020 Fund

 

Performance as of May 31, 2021

Lifecycle 2020 Fund         Average annual  Annual operating
      Total Return  total return  expenses*#
   Inception
date		  1 year   5 years   10 years   gross   net 
Institutional Class  1/17/07   21.61%   9.63%   7.94%   0.53%   0.39%
Advisor Class  12/4/15   21.43    9.60    7.79†   0.61    0.47 
Premier Class  9/30/09   21.37    9.47    7.77    0.68    0.54 
Retirement Class  10/15/04   21.27    9.38    7.67    0.78    0.64 
Lifecycle 2020 Fund Composite Index‡  —   20.67    9.77    8.03    —    — 
Broad market index                            
S&P Target Date 2020 Index  —   18.34    8.60    7.14    —    — 

 

The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit TIAA.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle 2020 Fund Composite Index consisted of: 38.2% Bloomberg Barclays U.S. Aggregate Bond Index; 34.3% Russell 3000® Index; 14.7% MSCI All Country World Index ex USA Investable Market Index; 6.4% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 6.4% 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.

 

26 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2020 Fund

 

$10,000 over 10 years

Retirement Class

 

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 31.70 30.80
International equity 13.76 13.20
Fixed income    
Fixed income 38.00 38.20
Short-term fixed income 6.32 6.40
Inflation-protected assets 6.35 6.40
Direct real estate 3.73 5.00
Other assets & liabilities, net 0.14 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 27
 

Lifecycle 2025 Fund

 

Performance as of May 31, 2021

Lifecycle 2025 Fund         Average annual  Annual operating
      Total Return  total return  expenses*#
   Inception
date		  1 year   5 years   10 years   gross   net 
Institutional Class  1/17/07   24.96%   10.61%   8.59%   0.55%   0.41%
Advisor Class  12/4/15   24.93    10.55    8.44†   0.63    0.49 
Premier Class  9/30/09   24.80    10.44    8.43    0.70    0.56 
Retirement Class  10/15/04   24.64    10.33    8.32    0.80    0.66 
Lifecycle 2025 Fund Composite Index‡  —   23.94    10.74    8.72    —    — 
Broad market index                            
S&P Target Date 2025 Index  —   22.88    9.71    7.84    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle 2025 Fund Composite Index consisted of: 39.6% Russell 3000® Index; 34.7% Bloomberg Barclays U.S. Aggregate Bond Index; 16.9% MSCI All Country World Index ex USA Investable Market Index; 4.4% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 4.4% 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.
   
28 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2025 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 37.32 36.54
International equity 16.20 15.66
Fixed income    
Fixed income 33.91 34.00
Short-term fixed income 4.35 4.40
Inflation-protected assets 4.35 4.40
Direct real estate 3.72 5.00
Other assets & liabilities, net 0.15 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 29
 

Lifecycle 2030 Fund

 

Performance as of May 31, 2021

Lifecycle 2030 Fund         Average annual  Annual operating
      Total Return  total return  expenses*#
   Inception
date		  1 year   5 years   10 years   gross   net 
Institutional Class  1/17/07   28.49%   11.55%   9.21%   0.56%   0.42%
Advisor Class  12/4/15   28.41    11.51    9.06†   0.64    0.50 
Premier Class  9/30/09   28.35    11.39    9.06    0.71    0.57 
Retirement Class  10/15/04   28.25    11.28    8.94    0.81    0.67 
Lifecycle 2030 Fund Composite Index‡  —   27.39    11.72    9.41    —    — 
Broad market index                            
S&P Target Date 2030 Index  —   27.24    10.69    8.48    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle 2030 Fund Composite Index consisted of: 45.2% Russell 3000® Index; 30.7% Bloomberg Barclays U.S. Aggregate Bond Index; 19.3% MSCI All Country World Index ex USA Investable Market Index; 2.4% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 2.4% 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.

 

30 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2030 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 43.42 42.84
International equity 18.82 18.36
Fixed income    
Fixed income 29.15 29.00
Short-term fixed income 2.34 2.40
Inflation-protected assets 2.35 2.40
Direct real estate 3.72 5.00
Other assets & liabilities, net 0.20 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 31
 

Lifecycle 2035 Fund

 

Performance as of May 31, 2021

Lifecycle 2035 Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years 10 years    gross    net 
Institutional Class  1/17/07   32.19%   12.50%   9.78%   0.58%   0.43%
Advisor Class  12/4/15   32.02    12.43    9.63†   0.66    0.51 
Premier Class  9/30/09   31.99    12.34    9.63    0.73    0.58 
Retirement Class  10/15/04   31.86    12.22    9.51    0.83    0.68 
Lifecycle 2035 Fund Composite Index‡  —   30.92    12.68    10.06    —    — 
Broad market index                            
S&P Target Date 2035 Index  —   32.22    11.72    9.12    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle 2035 Fund Composite Index consisted of: 50.8% Russell 3000® Index; 26.7% Bloomberg Barclays U.S. Aggregate Bond Index; 21.7% MSCI All Country World Index ex USA Investable Market Index; 0.4% Bloomberg Barclays U.S. 1–3 Year Government/Credit Bond Index; and 0.4% 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.

 

32 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2035 Fund

 

$10,000 over 10 years

Retirement Class

 

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation    
  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 49.50 49.14
International equity 21.48 21.06
Fixed income    
Fixed income 24.40 24.00
Short-term fixed income 0.34 0.40
Inflation-protected assets 0.36 0.40
Direct real estate 3.72 5.00
Other assets & liabilities, net 0.20 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 33
 

Lifecycle 2040 Fund

 

Performance as of May 31, 2021

Lifecycle 2040 Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years   10 years    gross    net 
Institutional Class  1/17/07   35.87%   13.41%   10.32%   0.60%   0.44%
Advisor Class  12/4/15   35.84    13.36    10.17†   0.68    0.52 
Premier Class  9/30/09   35.81    13.23    10.16    0.75    0.59 
Retirement Class  10/15/04   35.59    13.14    10.05    0.85    0.69 
Lifecycle 2040 Fund Composite Index‡  —   34.73    13.63    10.64    —    — 
Broad market index                            
S&P Target Date 2040 Index  —   35.70    12.43    9.56    —    — 

 

The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit TIAA.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle 2040 Fund Composite Index consisted of: 56.4% Russell 3000® Index; 24.1% MSCI All Country World Index ex USA Investable Market Index; and 19.5% 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.

 

34 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2040 Fund

 

$10,000 over 10 years

Retirement Class

 

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation    
  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 55.58 55.44
International equity 24.11 23.76
Fixed income 16.41 15.80
Direct real estate 3.72 5.00
Other assets & liabilities, net 0.18 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 35
 

Lifecycle 2045 Fund

 

Performance as of May 31, 2021

Lifecycle 2045 Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years 10 years    gross    net 
Institutional Class  11/30/07   39.80%   14.09%   10.65%   0.61%   0.45%
Advisor Class  12/4/15   39.64    14.07    10.50†   0.69    0.53 
Premier Class  9/30/09   39.52    13.91    10.49    0.76    0.60 
Retirement Class  11/30/07   39.38    13.81    10.37    0.86    0.70 
Lifecycle 2045 Fund Composite Index‡  —   38.66    14.32    10.99    —    — 
Broad market index                            
S&P Target Date 2045 Index  —   37.83    12.86    9.85    —    — 

 

The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit TIAA.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle 2045 Fund Composite Index consisted of: 62.0% Russell 3000® Index; 26.5% MSCI All Country World Index ex USA Investable Market Index; and 11.5% 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.

 

36 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2045 Fund

 

$10,000 over 10 years

Retirement Class

 

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation    
  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 61.57 61.74
International equity 26.75 26.46
Fixed income 7.73 6.80
Direct real estate 3.71 5.00
Other assets & liabilities, net 0.24 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 37
 

Lifecycle 2050 Fund

 

Performance as of May 31, 2021

Lifecycle 2050 Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years   10 years    gross    net 
Institutional Class  11/30/07   40.55%   14.27%   10.74%   0.62%   0.45%
Advisor Class  12/4/15   40.56    14.24    10.60†   0.70    0.53 
Premier Class  9/30/09   40.35    14.08    10.57    0.77    0.60 
Retirement Class  11/30/07   40.27    13.98    10.46    0.87    0.70 
Lifecycle 2050 Fund Composite Index‡  —   39.54    14.51    11.09    —    — 
Broad market index                            
S&P Target Date 2050 Index  —   38.92    13.15    10.07    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle 2050 Fund Composite Index consisted of: 63.7% Russell 3000® Index; 27.3% MSCI All Country World Index ex USA Investable Market Index; and 9.0% 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.

 

38 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2050 Fund

 

$10,000 over 10 years

Retirement Class

 

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation    
  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 63.30 63.70
International equity 27.54 27.30
Fixed income 5.20 4.00
Direct real estate 3.71 5.00
Other assets & liabilities, net 0.25 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 39
 

Lifecycle 2055 Fund

 

Performance as of May 31, 2021

Lifecycle 2055 Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years   10 years    gross    net 
Institutional Class  4/29/11   41.14%   14.37%   10.82%   0.64%   0.45%
Advisor Class  12/4/15   41.04    14.35    10.68†   0.72    0.53 
Premier Class  4/29/11   40.88    14.20    10.65    0.79    0.60 
Retirement Class  4/29/11   40.80    14.09    10.55    0.89    0.70 
Lifecycle 2055 Fund Composite Index‡  —   40.16    14.66    11.17    —    — 
Broad market index                            
S&P Target Date 2055 Index  —   39.49    13.31    10.24    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle 2055 Fund Composite Index consisted of: 64.6% Russell 3000® Index; 27.7% MSCI All Country World Index ex USA Investable Market Index; and 7.7% 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.

 

40 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2055 Fund

 

$10,000 over 10 years

Retirement Class

 

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation    
  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 64.16 64.58
International equity 27.89 27.67
Fixed income 3.97 2.75
Direct real estate 3.70 5.00
Other assets & liabilities, net 0.28 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 41
 

Lifecycle 2060 Fund

 

Performance as of May 31, 2021

Lifecycle 2060 Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years    since inception    gross    net 
Institutional Class  9/26/14   41.61%   14.49%   11.28%   0.72%   0.45%
Advisor Class  12/4/15   41.50    14.45    11.21†   0.80    0.53 
Premier Class  9/26/14   41.44    14.34    11.12    0.87    0.60 
Retirement Class  9/26/14   41.31    14.21    11.01    0.97    0.70 
Lifecycle 2060 Fund Composite Index‡  —   40.79    14.80    11.50§   —    — 
Broad market index                            
S&P Target Date 2060+ Index  —   39.42    13.45    10.50§   —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle 2060 Fund Composite Index consisted of: 65.5% Russell 3000® Index; 28.0% MSCI All Country World Index ex USA Investable Market Index; and 6.5% 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.

 

42 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2060 Fund

 

$10,000 invested at Fund’s inception

Retirement Class (inception September 26, 2014)

 

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation    
  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 64.90 65.45
International equity 28.24 28.05
Fixed income 2.75 1.50
Direct real estate 3.69 5.00
Other assets & liabilities, net 0.42 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 43
 

Lifecycle 2065 Fund

 

Performance as of May 31, 2021

Lifecycle 2065 Fund     Cumulative
total return		  Annual operating
expenses*#
   Inception
date		   since
inception		    gross    net 
Institutional Class  9/30/20   27.76%   3.94%   0.45%
Advisor Class  9/30/20   27.62    4.02    0.53 
Premier Class  9/30/20   27.51    4.12    0.60 
Retirement Class  9/30/20   27.38    4.23    0.70 
Lifecycle 2065 Fund Composite Index‡  —   27.27§   —    — 
Broad market index                  
S&P Target Date 2060+ Index  —   27.51§   —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and certain waivers will continue through at least September 30, 2021, and certain other waivers will remain in effect through at least September 30, 2023, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
‡ As of the close of business on May 31, 2021, the Lifecycle 2065 Fund Composite Index consisted of: 66.4% Russell 3000® Index; 28.4% MSCI All Country World Index ex USA Investable Market Index; and 5.2% 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.

 

44 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Lifecycle 2065 Fund

 

$10,000 invested at Fund’s inception

Retirement Class (inception September 30, 2020)

 

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation    
  % of net
assets as of
5/31/21		 % of target
allocation
for 6/30/21
Equity    
U.S. equity 66.07 66.33
International equity 28.69 28.42
Fixed income 1.48 0.25
Direct real estate 3.72 5.00
Other assets & liabilities, net 0.04 —
Total 100.00 100.00

Target allocation

 

For June 30, 2021

 

 


 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 45
 

Portfolio of investments

 

Lifecycle Retirement Income Fund  ■  May 31, 2021

 

Shares     Security  Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a
DIRECT REAL ESTATE—3.7%          
 2,047,005  b  TIAA-CREF Real Property Fund LP (purchased 8/01/16–4/13/21; cost $21,643,175)      $22,742,229    3.7%
       TOTAL DIRECT REAL ESTATE   22,742,229    3.7 
FIXED INCOME—39.8%
 11,723,649     TIAA-CREF Core Bond Fund   125,911,988    20.7 
 7,233,749     TIAA-CREF Core Plus Bond Fund   78,920,204    12.9 
 1,275,093     TIAA-CREF Emerging Markets Debt Fund   13,018,696    2.1 
 1,263,316     TIAA-CREF High-Yield Fund   12,115,204    2.0 
 1,265,885     TIAA-CREF International Bond Fund   12,684,170    2.1 
       TOTAL FIXED INCOME   242,650,262    39.8 
INFLATION-PROTECTED ASSETS—10.0%
 4,867,075     TIAA-CREF Inflation-Linked Bond Fund   60,887,103    10.0 
       TOTAL INFLATION-PROTECTED ASSETS   60,887,103    10.0 
INTERNATIONAL EQUITY—11.0%
 244,582     Nuveen International Growth Fund   14,422,981    2.4 
 620,558     TIAA-CREF Emerging Markets Equity Fund   8,768,479    1.4 
 1,379,686     TIAA-CREF International Equity Fund   20,088,228    3.3 
 749,196     TIAA-CREF International Opportunities Fund   14,414,533    2.4 
 765,274     TIAA-CREF Quant International Small-Cap Equity Fund       9,443,481    1.5 
       TOTAL INTERNATIONAL EQUITY   67,137,702    11.0 
SHORT-TERM FIXED INCOME—10.0%
 5,781,700     TIAA-CREF Short-Term Bond Fund   60,650,028    10.0 
       TOTAL SHORT-TERM FIXED INCOME   60,650,028    10.0 
U.S. EQUITY—25.4%
 1,504,281     Nuveen Dividend Value Fund   24,444,566    4.0 
 411,040     Nuveen Santa Barbara Dividend Growth Fund   21,633,040    3.6 
 1,183,269     TIAA-CREF Growth & Income Fund   21,831,321    3.6 
 960,863     TIAA-CREF Large-Cap Growth Fund   23,666,058    3.9 
 449,420     TIAA-CREF Large-Cap Growth Index Fund   23,585,542    3.9 
 1,092,589     TIAA-CREF Large-Cap Value Fund   24,430,298    4.0 
 306,927     TIAA-CREF Quant Small-Cap Equity Fund   6,881,292    1.1 
 456,322     TIAA-CREF Quant Small/Mid-Cap Equity Fund   7,880,687    1.3 
       TOTAL U.S. EQUITY   154,352,804    25.4 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $520,543,915)   608,420,128    99.9 
                  
       TOTAL PORTFOLIO   (Cost $520,543,915)   608,420,128    99.9 
       OTHER ASSETS & LIABILITIES, NET     590,590    0.1 
       NET ASSETS    $609,010,718    100.0%

 

 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $22,742,229 or 3.7% of net assets.
   
46 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

Portfolio of investments

 

Lifecycle 2010 Fund  ■  May 31, 2021

 

Shares     Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a
DIRECT REAL ESTATE—3.4%
 3,952,796  b  TIAA-CREF Real Property Fund LP (purchased 7/01/16–4/13/21; cost $41,267,598)     $43,915,568    3.4%
       TOTAL DIRECT REAL ESTATE      43,915,568    3.4 
FIXED INCOME—39.8%
 24,686,405     TIAA-CREF Core Bond Fund      265,131,993    20.7 
 15,238,339     TIAA-CREF Core Plus Bond Fund      166,250,283    12.9 
 2,685,362     TIAA-CREF Emerging Markets Debt Fund      27,417,546    2.1 
 2,658,215     TIAA-CREF High-Yield Fund      25,492,278    2.0 
 2,666,368     TIAA-CREF International Bond Fund      26,717,006    2.1 
       TOTAL FIXED INCOME      511,009,106    39.8 
INFLATION-PROTECTED ASSETS—10.0%
 10,251,011     TIAA-CREF Inflation-Linked Bond Fund      128,240,143    10.0 
       TOTAL INFLATION-PROTECTED ASSETS      128,240,143    10.0 
INTERNATIONAL EQUITY—10.9%
 506,689     Nuveen International Growth Fund      29,879,445    2.4 
 1,288,855     TIAA-CREF Emerging Markets Equity Fund      18,211,525    1.4 
 2,857,145     TIAA-CREF International Equity Fund      41,600,025    3.3 
 1,548,051     TIAA-CREF International Opportunities Fund      29,784,494    2.3 
 1,585,960     TIAA-CREF Quant International Small-Cap Equity Fund      19,570,744    1.5 
       TOTAL INTERNATIONAL EQUITY      139,046,233    10.9 
SHORT-TERM FIXED INCOME—10.8%
 13,239,100     TIAA-CREF Short-Term Bond Fund      138,878,161    10.8 
       TOTAL SHORT-TERM FIXED INCOME      138,878,161    10.8 
U.S. EQUITY—25.0%
 3,121,652     Nuveen Dividend Value Fund      50,726,852    4.0 
 852,072     Nuveen Santa Barbara Dividend Growth Fund      44,844,531    3.5 
 2,452,843     TIAA-CREF Growth & Income Fund      45,254,956    3.5 
 1,989,240     TIAA-CREF Large-Cap Growth Fund      48,994,974    3.8 
 930,905     TIAA-CREF Large-Cap Growth Index Fund      48,853,882    3.8 
 2,265,305     TIAA-CREF Large-Cap Value Fund      50,652,227    4.0 
 636,435     TIAA-CREF Quant Small-Cap Equity Fund      14,268,876    1.1 
 947,125     TIAA-CREF Quant Small/Mid-Cap Equity Fund      16,356,847    1.3 
       TOTAL U.S. EQUITY      319,953,145    25.0 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $1,070,589,647)   1,281,042,356    99.9 
                     
       TOTAL PORTFOLIO  (Cost $1,070,589,647)   1,281,042,356    99.9 
       OTHER ASSETS & LIABILITIES, NET      1,916,908    0.1 
       NET ASSETS     $1,282,959,264    100.0%

 

 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $43,915,568 or 3.4% of net assets.
   
See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 47
 

Portfolio of investments

 

Lifecycle 2015 Fund  ■  May 31, 2021

 

Shares     Security  Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a
DIRECT REAL ESTATE—3.8%
 6,171,039  b  TIAA-CREF Real Property Fund LP (purchased 11/28/16–4/13/21; cost $65,035,725)      $68,560,246    3.8%
       TOTAL DIRECT REAL ESTATE       68,560,246    3.8 
FIXED INCOME—39.0%
 34,568,639     TIAA-CREF Core Bond Fund       371,267,182    20.2 
 21,346,011     TIAA-CREF Core Plus Bond Fund       232,884,983    12.7 
 3,775,949     TIAA-CREF Emerging Markets Debt Fund       38,552,440    2.1 
 3,725,975     TIAA-CREF High-Yield Fund       35,732,102    2.0 
 3,735,187     TIAA-CREF International Bond Fund   37,426,571    2.0 
       TOTAL FIXED INCOME   715,863,278    39.0 
INFLATION-PROTECTED ASSETS—8.4%
 12,246,524     TIAA-CREF Inflation-Linked Bond Fund   153,204,019    8.4 
       TOTAL INFLATION-PROTECTED ASSETS   153,204,019    8.4 
INTERNATIONAL EQUITY—12.2%
 817,508     Nuveen International Growth Fund   48,208,431    2.6 
 2,087,358     TIAA-CREF Emerging Markets Equity Fund   29,494,373    1.6 
 4,612,208     TIAA-CREF International Equity Fund   67,153,753    3.7 
 2,496,450     TIAA-CREF International Opportunities Fund   48,031,689    2.6 
 2,563,080     TIAA-CREF Quant International Small-Cap Equity Fund       31,628,406    1.7 
       TOTAL INTERNATIONAL EQUITY       224,516,652    12.2 
SHORT-TERM FIXED INCOME—8.3%
 14,532,912     TIAA-CREF Short-Term Bond Fund       152,450,243    8.3 
       TOTAL SHORT-TERM FIXED INCOME       152,450,243    8.3 
U.S. EQUITY—28.2%
 5,047,163     Nuveen Dividend Value Fund   82,016,394    4.5 
 1,380,129     Nuveen Santa Barbara Dividend Growth Fund       72,636,185    4.0 
 3,970,846     TIAA-CREF Growth & Income Fund       73,262,115    4.0 
 3,217,925     TIAA-CREF Large-Cap Growth Fund       79,257,488    4.3 
 1,507,308     TIAA-CREF Large-Cap Growth Index Fund       79,103,505    4.3 
 3,667,085     TIAA-CREF Large-Cap Value Fund       81,996,023    4.5 
 1,029,930     TIAA-CREF Quant Small-Cap Equity Fund       23,091,025    1.2 
 1,535,233     TIAA-CREF Quant Small/Mid-Cap Equity Fund       26,513,467    1.4 
       TOTAL U.S. EQUITY   517,876,202    28.2 
       TOTAL AFFILIATED INVESTMENT COMPANIES   (Cost $1,594,655,701)   1,832,470,640    99.9 
                      
       TOTAL PORTFOLIO   (Cost $1,594,655,701)   1,832,470,640    99.9 
       OTHER ASSETS & LIABILITIES, NET       2,430,094    0.1 
       NET ASSETS      $1,834,900,734    100.0%

 

 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $68,560,246 or 3.8% of net assets.
   
48 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

Portfolio of investments

 

Lifecycle 2020 Fund  ■  May 31, 2021

 

Shares     Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a
DIRECT REAL ESTATE—3.7%
 13,308,668  b  TIAA-CREF Real Property Fund LP (purchased 11/28/16–4/13/21; cost $140,609,020)     $147,859,298    3.7%
       TOTAL DIRECT REAL ESTATE      147,859,298    3.7 
FIXED INCOME—38.0%
 72,645,329     TIAA-CREF Core Bond Fund      780,210,833    19.7 
 44,870,965     TIAA-CREF Core Plus Bond Fund      489,542,233    12.4 
 7,981,111     TIAA-CREF Emerging Markets Debt Fund      81,487,147    2.0 
 7,828,888     TIAA-CREF High-Yield Fund      75,079,034    1.9 
 7,842,801     TIAA-CREF International Bond Fund      78,584,864    2.0 
       TOTAL FIXED INCOME      1,504,904,111    38.0 
INFLATION-PROTECTED ASSETS—6.4%
 20,082,472     TIAA-CREF Inflation-Linked Bond Fund      251,231,727    6.4 
       TOTAL INFLATION-PROTECTED ASSETS      251,231,727    6.4 
INTERNATIONAL EQUITY—13.8%
 1,983,649     Nuveen International Growth Fund      116,975,755    3.0 
 5,064,990     TIAA-CREF Emerging Markets Equity Fund      71,568,309    1.8 
 11,193,458     TIAA-CREF International Equity Fund      162,976,748    4.1 
 6,065,202     TIAA-CREF International Opportunities Fund      116,694,493    3.0 
 6,215,970     TIAA-CREF Quant International Small-Cap Equity Fund      76,705,068    1.9 
       TOTAL INTERNATIONAL EQUITY      544,920,373    13.8 
SHORT-TERM FIXED INCOME—6.3%
 23,845,426     TIAA-CREF Short-Term Bond Fund      250,138,520    6.3 
       TOTAL SHORT-TERM FIXED INCOME      250,138,520    6.3 
U.S. EQUITY—31.7%
 12,229,804     Nuveen Dividend Value Fund      198,734,317    5.0 
 3,348,523     Nuveen Santa Barbara Dividend Growth Fund      176,232,787    4.5 
 9,627,206     TIAA-CREF Growth & Income Fund      177,621,950    4.5 
 7,790,852     TIAA-CREF Large-Cap Growth Fund      191,888,674    4.9 
 3,652,810     TIAA-CREF Large-Cap Growth Index Fund      191,699,478    4.8 
 8,894,972     TIAA-CREF Large-Cap Value Fund      198,891,564    5.0 
 2,497,020     TIAA-CREF Quant Small-Cap Equity Fund      55,983,198    1.4 
 3,719,816     TIAA-CREF Quant Small/Mid-Cap Equity Fund      64,241,222    1.6 
       TOTAL U.S. EQUITY      1,255,293,190    31.7 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $3,391,098,809)   3,954,347,219    99.9 
                     
       TOTAL PORTFOLIO  (Cost $3,391,098,809)   3,954,347,219    99.9 
       OTHER ASSETS & LIABILITIES, NET      5,606,558    0.1 
       NET ASSETS     $3,959,953,777    100.0%

 

 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $147,859,298 or 3.7% of net assets.
   
See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 49
 

Portfolio of investments

 

Lifecycle 2025 Fund  ■  May 31, 2021

 

Shares     Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a
DIRECT REAL ESTATE—3.7%
 18,327,433  b  TIAA-CREF Real Property Fund LP (purchased 8/01/16–5/12/21; cost $194,822,771)     $203,617,781    3.7%
       TOTAL DIRECT REAL ESTATE      203,617,781    3.7 
FIXED INCOME—33.9%
 89,351,444     TIAA-CREF Core Bond Fund      959,634,504    17.5 
 55,229,513     TIAA-CREF Core Plus Bond Fund      602,553,985    11.0 
 9,962,370     TIAA-CREF Emerging Markets Debt Fund      101,715,793    1.9 
 9,625,193     TIAA-CREF High-Yield Fund      92,305,596    1.7 
 9,650,510     TIAA-CREF International Bond Fund      96,698,108    1.8 
       TOTAL FIXED INCOME      1,852,907,986    33.9 
INFLATION-PROTECTED ASSETS—4.4%
 18,985,052     TIAA-CREF Inflation-Linked Bond Fund      237,502,998    4.4 
       TOTAL INFLATION-PROTECTED ASSETS      237,502,998    4.4 
INTERNATIONAL EQUITY—16.2%
 3,215,707     Nuveen International Growth Fund      189,630,242    3.5 
 8,241,103     TIAA-CREF Emerging Markets Equity Fund      116,446,785    2.1 
 18,219,822     TIAA-CREF International Equity Fund      265,280,616    4.8 
 9,851,164     TIAA-CREF International Opportunities Fund      189,536,388    3.5 
 10,112,300     TIAA-CREF Quant International Small-Cap Equity Fund      124,785,786    2.3 
       TOTAL INTERNATIONAL EQUITY      885,679,817    16.2 
SHORT-TERM FIXED INCOME—4.3%
 22,555,019     TIAA-CREF Short-Term Bond Fund      236,602,151    4.3 
       TOTAL SHORT-TERM FIXED INCOME      236,602,151    4.3 
U.S. EQUITY—37.4%
 19,895,965     Nuveen Dividend Value Fund      323,309,436    5.9 
 5,462,971     Nuveen Santa Barbara Dividend Growth Fund      287,516,169    5.3 
 15,624,366     TIAA-CREF Growth & Income Fund      288,269,562    5.3 
 12,667,978     TIAA-CREF Large-Cap Growth Fund      312,012,310    5.7 
 5,932,942     TIAA-CREF Large-Cap Growth Index Fund      311,360,793    5.7 
 14,421,131     TIAA-CREF Large-Cap Value Fund      322,456,486    5.9 
 4,058,028     TIAA-CREF Quant Small-Cap Equity Fund      90,980,983    1.7 
 6,042,135     TIAA-CREF Quant Small/Mid-Cap Equity Fund      104,347,663    1.9 
       TOTAL U.S. EQUITY      2,040,253,402    37.4 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $4,599,058,560)   5,456,564,135    99.9 
                     
       TOTAL PORTFOLIO  (Cost $4,599,058,560)   5,456,564,135    99.9 
       OTHER ASSETS & LIABILITIES, NET      8,003,422    0.1 
       NET ASSETS     $5,464,567,557    100.0%

 

 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $203,617,781 or 3.7% of net assets.
   
50 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

Portfolio of investments

 

Lifecycle 2030 Fund  ■  May 31, 2021

 

Shares     Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.8%a
DIRECT REAL ESTATE—3.7%
 19,562,420  b  TIAA-CREF Real Property Fund LP (purchased 8/01/16–5/12/21; cost $208,754,299)     $217,338,488    3.7%
       TOTAL DIRECT REAL ESTATE      217,338,488    3.7 
FIXED INCOME—29.2%
 81,885,408     TIAA-CREF Core Bond Fund      879,449,285    15.1 
 50,756,152     TIAA-CREF Core Plus Bond Fund      553,749,615    9.5 
 9,334,035     TIAA-CREF Emerging Markets Debt Fund      95,300,493    1.6 
 8,857,685     TIAA-CREF High-Yield Fund      84,945,200    1.5 
 8,878,823     TIAA-CREF International Bond Fund      88,965,810    1.5 
       TOTAL FIXED INCOME      1,702,410,403    29.2 
INFLATION-PROTECTED ASSETS—2.4%
 10,954,242     TIAA-CREF Inflation-Linked Bond Fund      137,037,572    2.4 
       TOTAL INFLATION-PROTECTED ASSETS      137,037,572    2.4 
INTERNATIONAL EQUITY—18.8%
 4,006,883     Nuveen International Growth Fund      236,285,904    4.0 
 10,216,057     TIAA-CREF Emerging Markets Equity Fund      144,352,884    2.5 
 22,601,712     TIAA-CREF International Equity Fund      329,080,932    5.6 
 12,230,734     TIAA-CREF International Opportunities Fund      235,319,324    4.0 
 12,526,930     TIAA-CREF Quant International Small-Cap Equity Fund      154,582,319    2.7 
       TOTAL INTERNATIONAL EQUITY      1,099,621,363    18.8 
SHORT-TERM FIXED INCOME—2.3%
 13,007,824     TIAA-CREF Short-Term Bond Fund      136,452,076    2.3 
       TOTAL SHORT-TERM FIXED INCOME      136,452,076    2.3 
U.S. EQUITY—43.4%
 24,764,614     Nuveen Dividend Value Fund      402,424,985    6.9 
 6,785,418     Nuveen Santa Barbara Dividend Growth Fund      357,116,544    6.1 
 19,404,110     TIAA-CREF Growth & Income Fund      358,005,834    6.1 
 15,730,707     TIAA-CREF Large-Cap Growth Fund      387,447,316    6.6 
 7,381,826     TIAA-CREF Large-Cap Growth Index Fund      387,398,235    6.6 
 17,941,610     TIAA-CREF Large-Cap Value Fund      401,174,390    6.9 
 5,045,684     TIAA-CREF Quant Small-Cap Equity Fund      113,124,228    2.0 
 7,530,311     TIAA-CREF Quant Small/Mid-Cap Equity Fund      130,048,477    2.2 
       TOTAL U.S. EQUITY      2,536,740,009    43.4 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $4,814,322,344)   5,829,599,911    99.8 
                     
       TOTAL PORTFOLIO  (Cost $4,814,322,344)   5,829,599,911    99.8 
       OTHER ASSETS & LIABILITIES, NET      11,784,500    0.2 
       NET ASSETS     $5,841,384,411    100.0%
                     
 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $217,338,488 or 3.7% of net assets.
   
See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 51
 

Portfolio of investments

 

Lifecycle 2035 Fund  ■  May 31, 2021

 

Shares     Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.8%a
DIRECT REAL ESTATE—3.7%
 20,160,819  b  TIAA-CREF Real Property Fund LP (purchased 8/01/16–5/26/21; cost $215,213,192)     $223,986,695    3.7%
       TOTAL DIRECT REAL ESTATE      223,986,695    3.7 
FIXED INCOME—24.4%
 70,490,686     TIAA-CREF Core Bond Fund      757,069,968    12.6 
 43,817,724     TIAA-CREF Core Plus Bond Fund      478,051,365    7.9 
 8,282,124     TIAA-CREF Emerging Markets Debt Fund      84,560,486    1.4 
 7,646,308     TIAA-CREF High-Yield Fund      73,328,098    1.2 
 7,665,452     TIAA-CREF International Bond Fund      76,807,826    1.3 
       TOTAL FIXED INCOME      1,469,817,743    24.4 
INFLATION-PROTECTED ASSETS—0.4%
 1,686,114     TIAA-CREF Inflation-Linked Bond Fund      21,093,288    0.4 
       TOTAL INFLATION-PROTECTED ASSETS      21,093,288    0.4 
INTERNATIONAL EQUITY—21.5%
 4,721,984     Nuveen International Growth Fund      278,455,419    4.6 
 12,019,413     TIAA-CREF Emerging Markets Equity Fund      169,834,312    2.8 
 26,571,651     TIAA-CREF International Equity Fund      386,883,242    6.5 
 14,414,168     TIAA-CREF International Opportunities Fund      277,328,594    4.6 
 14,702,476     TIAA-CREF Quant International Small-Cap Equity Fund      181,428,549    3.0 
       TOTAL INTERNATIONAL EQUITY      1,293,930,116    21.5 
SHORT-TERM FIXED INCOME—0.3%
 2,001,395     TIAA-CREF Short-Term Bond Fund      20,994,636    0.3 
       TOTAL SHORT-TERM FIXED INCOME      20,994,636    0.3 
U.S. EQUITY—49.5%
 29,125,390     Nuveen Dividend Value Fund      473,287,592    7.9 
 7,953,895     Nuveen Santa Barbara Dividend Growth Fund      418,613,470    6.9 
 22,800,928     TIAA-CREF Growth & Income Fund      420,677,129    7.0 
 18,492,518     TIAA-CREF Large-Cap Growth Fund      455,470,724    7.6 
 8,675,950     TIAA-CREF Large-Cap Growth Index Fund      455,313,843    7.6 
 21,091,268     TIAA-CREF Large-Cap Value Fund      471,600,744    7.8 
 5,930,378     TIAA-CREF Quant Small-Cap Equity Fund      132,959,083    2.2 
 8,856,568     TIAA-CREF Quant Small/Mid-Cap Equity Fund      152,952,936    2.5 
       TOTAL U.S. EQUITY      2,980,875,521    49.5 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $4,849,476,569)   6,010,697,999    99.8 
                     
       TOTAL PORTFOLIO  (Cost $4,849,476,569)   6,010,697,999    99.8 
       OTHER ASSETS & LIABILITIES, NET      12,027,688    0.2 
       NET ASSETS     $6,022,725,687    100.0%
                     
 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $223,986,695 or 3.7% of net assets.
   
52 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

Portfolio of investments

 

Lifecycle 2040 Fund  ■  May 31, 2021

 

Shares     Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.8%a
DIRECT REAL ESTATE—3.7%
 23,900,638  b  TIAA-CREF Real Property Fund LP (purchased 8/01/16–5/26/21; cost $254,391,689)     $265,536,087    3.7%
       TOTAL DIRECT REAL ESTATE      265,536,087    3.7 
FIXED INCOME—16.4%
 55,683,847     TIAA-CREF Core Bond Fund      598,044,518    8.4 
 34,962,104     TIAA-CREF Core Plus Bond Fund      381,436,559    5.3 
 7,175,380     TIAA-CREF Emerging Markets Debt Fund      73,260,635    1.0 
 6,100,907     TIAA-CREF High-Yield Fund      58,507,699    0.8 
 6,116,305     TIAA-CREF International Bond Fund      61,285,376    0.9 
       TOTAL FIXED INCOME      1,172,534,787    16.4 
INTERNATIONAL EQUITY—24.1%
 6,298,368     Nuveen International Growth Fund      371,414,771    5.2 
 16,005,219     TIAA-CREF Emerging Markets Equity Fund      226,153,739    3.2 
 35,420,215     TIAA-CREF International Equity Fund      515,718,337    7.2 
 19,126,508     TIAA-CREF International Opportunities Fund      367,994,023    5.1 
 19,589,414     TIAA-CREF Quant International Small-Cap Equity Fund      241,733,372    3.4 
       TOTAL INTERNATIONAL EQUITY      1,723,014,242    24.1 
U.S. EQUITY—55.6%
 38,713,969     Nuveen Dividend Value Fund      629,101,989    8.8 
 10,582,421     Nuveen Santa Barbara Dividend Growth Fund      556,952,799    7.8 
 30,393,944     TIAA-CREF Growth & Income Fund      560,768,260    7.8 
 24,633,697     TIAA-CREF Large-Cap Growth Fund      606,727,949    8.5 
 11,563,791     TIAA-CREF Large-Cap Growth Index Fund      606,867,748    8.5 
 28,144,756     TIAA-CREF Large-Cap Value Fund      629,316,745    8.8 
 7,890,515     TIAA-CREF Quant Small-Cap Equity Fund      176,905,346    2.5 
 11,819,927     TIAA-CREF Quant Small/Mid-Cap Equity Fund      204,130,141    2.9 
       TOTAL U.S. EQUITY      3,970,770,977    55.6 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $5,613,891,658)   7,131,856,093    99.8 
                     
       TOTAL PORTFOLIO  (Cost $5,613,891,658)   7,131,856,093    99.8 
       OTHER ASSETS & LIABILITIES, NET      13,149,049    0.2 
       NET ASSETS     $7,145,005,142    100.0%
                     
 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $265,536,087 or 3.7% of net assets.
   
See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 53
 

Portfolio of investments

 

Lifecycle 2045 Fund  ■  May 31, 2021

 

Shares     Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.8%a
DIRECT REAL ESTATE—3.7%
 15,512,823  b  TIAA-CREF Real Property Fund LP (purchased 8/01/16–5/26/21; cost $166,230,526)     $172,347,468    3.7%
       TOTAL DIRECT REAL ESTATE      172,347,468    3.7 
FIXED INCOME—7.7%
 16,511,302     TIAA-CREF Core Bond Fund      177,331,385    3.8 
 10,704,449     TIAA-CREF Core Plus Bond Fund      116,785,542    2.5 
 2,799,340     TIAA-CREF Emerging Markets Debt Fund      28,581,265    0.6 
 1,867,914     TIAA-CREF High-Yield Fund      17,913,290    0.4 
 1,872,738     TIAA-CREF International Bond Fund      18,764,837    0.4 
       TOTAL FIXED INCOME      359,376,319    7.7 
INTERNATIONAL EQUITY—26.8%
 4,537,499     Nuveen International Growth Fund      267,576,315    5.8 
 11,577,954     TIAA-CREF Emerging Markets Equity Fund      163,596,497    3.5 
 25,517,218     TIAA-CREF International Equity Fund      371,530,698    8.0 
 13,840,640     TIAA-CREF International Opportunities Fund      266,293,919    5.7 
 14,101,440     TIAA-CREF Quant International Small-Cap Equity Fund      174,011,770    3.8 
       TOTAL INTERNATIONAL EQUITY      1,243,009,199    26.8 
U.S. EQUITY—61.6%
 27,936,127     Nuveen Dividend Value Fund      453,962,068    9.8 
 7,621,644     Nuveen Santa Barbara Dividend Growth Fund      401,127,110    8.6 
 21,862,954     TIAA-CREF Growth & Income Fund      403,371,499    8.7 
 17,765,165     TIAA-CREF Large-Cap Growth Fund      437,556,011    9.4 
 8,320,033     TIAA-CREF Large-Cap Growth Index Fund      436,635,340    9.4 
 20,254,490     TIAA-CREF Large-Cap Value Fund      452,890,386    9.7 
 5,699,662     TIAA-CREF Quant Small-Cap Equity Fund      127,786,413    2.8 
 8,537,738     TIAA-CREF Quant Small/Mid-Cap Equity Fund      147,446,729    3.2 
       TOTAL U.S. EQUITY      2,860,775,556    61.6 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $3,518,643,606)   4,635,508,542    99.8 
                     
       TOTAL PORTFOLIO  (Cost $3,518,643,606)   4,635,508,542    99.8 
       OTHER ASSETS & LIABILITIES, NET      11,041,328    0.2 
       NET ASSETS     $4,646,549,870    100.0%
                     
 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $172,347,468 or 3.7% of net assets.
   
54 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

Portfolio of investments

 

Lifecycle 2050 Fund  ■  May 31, 2021

 

Shares     Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.7%a
DIRECT REAL ESTATE—3.7%
 11,285,019  b  TIAA-CREF Real Property Fund LP (purchased 8/01/16–5/26/21; cost $121,335,792)     $125,376,563    3.7%
       TOTAL DIRECT REAL ESTATE      125,376,563    3.7 
FIXED INCOME—5.2%
 7,819,691     TIAA-CREF Core Bond Fund      83,983,479    2.5 
 5,246,145     TIAA-CREF Core Plus Bond Fund      57,235,438    1.7 
 1,641,030     TIAA-CREF Emerging Markets Debt Fund      16,754,916    0.5 
 916,665     TIAA-CREF High-Yield Fund      8,790,817    0.2 
 917,689     TIAA-CREF International Bond Fund      9,195,242    0.3 
       TOTAL FIXED INCOME      175,959,892    5.2 
INTERNATIONAL EQUITY—27.5%
 3,392,825     Nuveen International Growth Fund      200,074,884    5.9 
 8,682,778     TIAA-CREF Emerging Markets Equity Fund      122,687,657    3.6 
 19,093,861     TIAA-CREF International Equity Fund      278,006,623    8.2 
 10,405,746     TIAA-CREF International Opportunities Fund      200,206,561    5.9 
 10,564,555     TIAA-CREF Quant International Small-Cap Equity Fund      130,366,607    3.9 
       TOTAL INTERNATIONAL EQUITY      931,342,332    27.5 
U.S. EQUITY—63.3%
 20,857,118     Nuveen Dividend Value Fund      338,928,175    10.0 
 5,728,757     Nuveen Santa Barbara Dividend Growth Fund      301,504,465    8.9 
 16,351,622     TIAA-CREF Growth & Income Fund      301,687,420    8.9 
 13,313,083     TIAA-CREF Large-Cap Growth Fund      327,901,227    9.7 
 6,222,413     TIAA-CREF Large-Cap Growth Index Fund      326,552,258    9.7 
 15,150,312     TIAA-CREF Large-Cap Value Fund      338,760,968    10.0 
 4,262,811     TIAA-CREF Quant Small-Cap Equity Fund      95,572,233    2.8 
 6,379,607     TIAA-CREF Quant Small/Mid-Cap Equity Fund      110,175,816    3.3 
       TOTAL U.S. EQUITY      2,141,082,562    63.3 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $2,574,255,857)   3,373,761,349    99.7 
                     
       TOTAL PORTFOLIO  (Cost $2,574,255,857)   3,373,761,349    99.7 
       OTHER ASSETS & LIABILITIES, NET      8,603,793    0.3 
       NET ASSETS     $3,382,365,142    100.0%
                     
 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $125,376,563 or 3.7% of net assets.
   
See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 55
 

Portfolio of investments

 

Lifecycle 2055 Fund  ■  May 31, 2021

 

Shares     Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.7%a
DIRECT REAL ESTATE—3.7%
 4,745,636  b  TIAA-CREF Real Property Fund LP (purchased 8/01/16–5/26/21; cost $51,485,583)     $52,724,015    3.7%
       TOTAL DIRECT REAL ESTATE      52,724,015    3.7 
FIXED INCOME—4.0%
 2,432,033     TIAA-CREF Core Bond Fund      26,120,033    1.8 
 1,683,997     TIAA-CREF Core Plus Bond Fund      18,372,405    1.3 
 608,901     TIAA-CREF Emerging Markets Debt Fund      6,216,882    0.5 
 294,241     TIAA-CREF High-Yield Fund      2,821,772    0.2 
 294,569     TIAA-CREF International Bond Fund      2,951,583    0.2 
       TOTAL FIXED INCOME      56,482,675    4.0 
INTERNATIONAL EQUITY—27.9%
 1,447,352     Nuveen International Growth Fund      85,350,362    6.0 
 3,697,637     TIAA-CREF Emerging Markets Equity Fund      52,247,617    3.7 
 8,147,305     TIAA-CREF International Equity Fund      118,624,755    8.3 
 4,426,275     TIAA-CREF International Opportunities Fund      85,161,535    6.0 
 4,503,890     TIAA-CREF Quant International Small-Cap Equity Fund      55,578,001    3.9 
       TOTAL INTERNATIONAL EQUITY      396,962,270    27.9 
U.S. EQUITY—64.1%
 8,900,781     Nuveen Dividend Value Fund      144,637,686    10.2 
 2,443,337     Nuveen Santa Barbara Dividend Growth Fund      128,592,824    9.0 
 6,974,049     TIAA-CREF Growth & Income Fund      128,671,201    9.0 
 5,680,114     TIAA-CREF Large-Cap Growth Fund      139,901,196    9.8 
 2,653,736     TIAA-CREF Large-Cap Growth Index Fund      139,268,054    9.8 
 6,455,848     TIAA-CREF Large-Cap Value Fund      144,352,754    10.1 
 1,819,129     TIAA-CREF Quant Small-Cap Equity Fund      40,784,872    2.9 
 2,715,386     TIAA-CREF Quant Small/Mid-Cap Equity Fund      46,894,709    3.3 
       TOTAL U.S. EQUITY      913,103,296    64.1 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $1,114,022,230)   1,419,272,256    99.7 
                     
       TOTAL PORTFOLIO  (Cost $1,114,022,230)   1,419,272,256    99.7 
       OTHER ASSETS & LIABILITIES, NET      4,030,850    0.3 
       NET ASSETS     $1,423,303,106    100.0%
                     
 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $52,724,015 or 3.7% of net assets.
   
56 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

Portfolio of investments

 

Lifecycle 2060 Fund  ■  May 31, 2021

 

Shares     Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.6%a
DIRECT REAL ESTATE—3.7%
 1,319,118  b  TIAA-CREF Real Property Fund LP (purchased 8/01/16–5/26/21; cost $14,410,712)     $14,655,401    3.7%
       TOTAL DIRECT REAL ESTATE      14,655,401    3.7 
FIXED INCOME—2.8%
 439,102     TIAA-CREF Core Bond Fund      4,715,956    1.2 
 323,623     TIAA-CREF Core Plus Bond Fund      3,530,732    0.9 
 146,833     TIAA-CREF Emerging Markets Debt Fund      1,499,162    0.4 
 56,543     TIAA-CREF High-Yield Fund      542,246    0.1 
 56,606     TIAA-CREF International Bond Fund      567,194    0.2 
       TOTAL FIXED INCOME      10,855,290    2.8 
INTERNATIONAL EQUITY—28.2%
 407,690     Nuveen International Growth Fund      24,041,485    6.0 
 1,043,611     TIAA-CREF Emerging Markets Equity Fund      14,746,218    3.7 
 2,295,168     TIAA-CREF International Equity Fund      33,417,648    8.4 
 1,250,518     TIAA-CREF International Opportunities Fund      24,059,959    6.1 
 1,277,724     TIAA-CREF Quant International Small-Cap Equity Fund      15,767,115    4.0 
       TOTAL INTERNATIONAL EQUITY      112,032,425    28.2 
U.S. EQUITY—64.9%
 2,509,286     Nuveen Dividend Value Fund      40,775,890    10.3 
 689,189     Nuveen Santa Barbara Dividend Growth Fund      36,272,001    9.1 
 1,971,438     TIAA-CREF Growth & Income Fund      36,373,039    9.2 
 1,603,064     TIAA-CREF Large-Cap Growth Fund      39,483,473    9.9 
 747,033     TIAA-CREF Large-Cap Growth Index Fund      39,204,294    9.9 
 1,822,667     TIAA-CREF Large-Cap Value Fund      40,754,826    10.3 
 513,224     TIAA-CREF Quant Small-Cap Equity Fund      11,506,473    2.9 
 763,800     TIAA-CREF Quant Small/Mid-Cap Equity Fund      13,190,831    3.3 
       TOTAL U.S. EQUITY      257,560,827    64.9 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $321,949,338)   395,103,943    99.6 
                     
       TOTAL PORTFOLIO  (Cost $321,949,338)   395,103,943    99.6 
       OTHER ASSETS & LIABILITIES, NET      1,673,334    0.4 
       NET ASSETS     $396,777,277    100.0%
                     
 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $14,655,401 or 3.7% of net assets.
   
See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 57
 

Portfolio of investments

 

Lifecycle 2065 Fund  ■  May 31, 2021

 

Shares     Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—100.0%a
DIRECT REAL ESTATE—3.7%          
 23,348  b  TIAA-CREF Real Property Fund LP (purchased 9/30/20–5/26/21; cost $251,135)     $259,395    3.7%
       TOTAL DIRECT REAL ESTATE      259,395    3.7 
FIXED INCOME—1.5%          
 4,351     TIAA-CREF Core Bond Fund      46,725    0.7 
 3,082     TIAA-CREF Core Plus Bond Fund      33,621    0.5 
 1,160     TIAA-CREF Emerging Markets Debt Fund      11,842    0.1 
 539     TIAA-CREF High-Yield Fund      5,168    0.1 
 533     TIAA-CREF International Bond Fund      5,339    0.1 
       TOTAL FIXED INCOME      102,695    1.5 
INTERNATIONAL EQUITY—28.7%             
 7,290     Nuveen International Growth Fund      429,907    6.2 
 18,630     TIAA-CREF Emerging Markets Equity Fund      263,240    3.8 
 40,923     TIAA-CREF International Equity Fund      595,838    8.5 
 22,317     TIAA-CREF International Opportunities Fund      429,385    6.2 
 22,731     TIAA-CREF Quant International Small-Cap Equity Fund      280,495    4.0 
       TOTAL INTERNATIONAL EQUITY      1,998,865    28.7 
U.S. EQUITY—66.1%          
 44,891     Nuveen Dividend Value Fund      729,483    10.5 
 12,325     Nuveen Santa Barbara Dividend Growth Fund      648,640    9.3 
 35,284     TIAA-CREF Growth & Income Fund      650,986    9.3 
 28,583     TIAA-CREF Large-Cap Growth Fund      704,007    10.1 
 13,368     TIAA-CREF Large-Cap Growth Index Fund      701,566    10.1 
 32,561     TIAA-CREF Large-Cap Value Fund      728,068    10.4 
 9,169     TIAA-CREF Quant Small-Cap Equity Fund      205,562    3.0 
 13,639     TIAA-CREF Quant Small/Mid-Cap Equity Fund      235,542    3.4 
       TOTAL U.S. EQUITY      4,603,854    66.1 
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $5,946,904)   6,964,809    100.0 
                     
       TOTAL PORTFOLIO  (Cost $5,946,904)   6,964,809    100.0 
       OTHER ASSETS & LIABILITIES, NET      3,186    0.0 
       NET ASSETS     $6,967,995    100.0%
                     
 

 

a The Fund invests its assets in the affiliated TIAA-CREF Real Property Fund LP, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.
b Restricted security. At 5/31/21, the total value of this security amounted to $259,395 or 3.7% of net assets.
   
58 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

[This page intentionally left blank.]

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 59
 

Statements of assets and liabilities

 

TIAA-CREF Lifecycle Funds  ■  May 31, 2021

 

   Lifecycle                     
   Retirement   Lifecycle   Lifecycle   Lifecycle   Lifecycle   Lifecycle 
   Income Fund   2010 Fund   2015 Fund   2020 Fund   2025 Fund   2030 Fund 
ASSETS                              
Affiliated investments, at value‡  $608,420,128   $1,281,042,356   $1,832,470,640   $3,954,347,219   $5,456,564,135   $5,829,599,911 
Cash   568,443    809,878    —    2,663,752    6,661,924    8,289,405 
Receivable from securities transactions   1,055,949    2,347,174    4,219,732    7,555,769    11,589,586    13,766,793 
Receivable from Fund shares sold   379,705    993,319    983,667    2,555,050    4,610,069    7,261,013 
Dividends receivable   538,353    1,150,994    1,552,637    3,151,753    3,754,249    3,321,394 
Due from affiliates   82,894    143,978    204,038    432,516    589,893    636,113 
Other   37,171    114,531    170,678    282,440    307,687    302,107 
Total assets   611,082,643    1,286,602,230    1,839,601,392    3,970,988,499    5,484,077,543    5,863,176,736 
LIABILITIES                              
Management fees payable   192,828    407,286    585,853    1,268,756    1,752,865    1,878,167 
Service agreement fees payable   42,371    77,850    105,777    209,424    256,781    263,246 
Distribution fees payable   32,763    9,843    14,611    32,077    42,391    46,480 
Due to affiliates   5,227    5,398    6,136    8,991    10,609    10,912 
Overdraft payable   —    —    673,303    —    —    — 
Payable for securities transactions   1,497,540    2,891,085    3,078,386    9,020,945    16,075,428    19,131,582 
Payable for Fund shares redeemed   237,023    100,446    16,308    116,709    939,219    23,680 
Payable for trustee compensation   37,503    115,248    171,687    284,616    310,584    305,153 
Accrued expenses and other payables   26,670    35,810    48,597    93,204    122,109    133,105 
Total liabilities   2,071,925    3,642,966    4,700,658    11,034,722    19,509,986    21,792,325 
NET ASSETS  $609,010,718   $1,282,959,264   $1,834,900,734   $3,959,953,777   $5,464,567,557   $5,841,384,411 
NET ASSETS CONSIST OF:                              
Paid-in-capital  $506,036,440   $1,030,075,365   $1,547,064,736   $3,265,140,567   $4,406,910,490   $4,589,430,887 
Total distributable earnings (loss)   102,974,278    252,883,899    287,835,998    694,813,210    1,057,657,067    1,251,953,524 
NET ASSETS  $609,010,718   $1,282,959,264   $1,834,900,734   $3,959,953,777   $5,464,567,557   $5,841,384,411 
INSTITUTIONAL CLASS:                              
Net assets  $244,923,329   $836,684,007   $1,217,691,110   $2,712,681,295   $3,909,832,580   $4,216,718,318 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   19,118,960    68,587,801    112,597,638    240,902,593    332,543,779    350,956,500 
Net asset value per share  $12.81   $12.20   $10.81   $11.26   $11.76   $12.01 
ADVISOR CLASS:                              
Net assets  $596,026   $164,359   $255,031   $726,407   $552,617   $519,906 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   46,528    13,445    23,602    64,548    47,026    43,275 
Net asset value per share  $12.81   $12.22   $10.81   $11.25   $11.75   $12.01 
PREMIER CLASS:                              
Net assets  $19,161,380   $77,845,066   $116,117,054   $252,875,609   $336,772,916   $369,689,844 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   1,496,663    6,398,256    10,788,574    22,522,355    28,785,551    30,942,655 
Net asset value per share  $12.80   $12.17   $10.76   $11.23   $11.70   $11.95 
RETIREMENT CLASS:                              
Net assets  $200,299,639   $368,265,832   $500,837,539   $993,670,466   $1,217,409,444   $1,254,456,343 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   15,676,326    24,882,906    36,243,482    67,252,519    77,903,848    76,676,475 
Net asset value per share  $12.78   $14.80   $13.82   $14.78   $15.63   $16.36 
RETAIL CLASS:                              
Net assets  $144,030,344   $—   $—   $—   $—   $— 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   11,260,491    —    —    —    —    — 
Net asset value per share  $12.79   $—   $—   $—   $—   $— 
‡   Affiliated investments, cost  $520,543,915   $1,070,589,647   $1,594,655,701   $3,391,098,809   $4,599,058,560   $4,814,322,344 

 

60 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 61

 
Statements of assets and liabilities concluded
   
TIAA-CREF Lifecycle Funds  ■  May 31, 2021  

 

   Lifecycle   Lifecycle   Lifecycle   Lifecycle   Lifecycle   Lifecycle   Lifecycle 
   2035 Fund   2040 Fund   2045 Fund   2050 Fund   2055 Fund   2060 Fund   2065 Fund 
ASSETS                                   
Affiliated investments, at value‡  $6,010,697,999   $7,131,856,093   $4,635,508,542   $3,373,761,349   $1,419,272,256   $395,103,943   $6,964,809 
Cash   6,699,677    8,188,284    6,184,441    5,140,231    2,619,132    1,066,568    — 
Receivable from securities transactions   17,390,458    21,187,032    15,997,041    11,567,245    4,682,196    1,265,153    25,228 
Receivable from Fund shares sold   7,682,497    7,900,982    7,654,449    6,178,708    3,077,815    1,436,584    5,477 
Dividends receivable   2,719,066    2,128,731    635,499    307,634    96,782    17,941    177 
Due from affiliates   705,186    886,626    574,783    451,885    205,482    65,930    16,354 
Other   304,949    384,738    165,386    106,019    30,792    5,235    23 
Total assets   6,046,199,832    7,172,532,486    4,666,720,141    3,397,513,071    1,429,984,455    398,961,354    7,012,068 
LIABILITIES                                   
Management fees payable   1,944,837    2,303,767    1,489,587    1,082,023    453,996    125,463    2,209 
Service agreement fees payable   242,940    292,016    162,979    114,839    49,513    13,222    44 
Distribution fees payable   49,690    55,507    38,687    25,699    11,670    2,322    91 
Due to affiliates   11,045    12,385    9,200    7,630    5,304    4,089    3,720 
Overdraft payable   —    —    —    —    —    —    10,888 
Payable for securities transactions   20,461,243    24,113,456    18,115,714    13,617,764    5,981,352    1,966,485    21,343 
Payable for Fund shares redeemed   325,235    215,857    80,114    108,294    101,705    45,627    — 
Payable for trustee compensation   308,080    388,447    167,759    107,729    31,489    5,405    26 
Accrued expenses and other payables   131,075    145,909    106,231    83,951    46,320    21,464    5,752 
Total liabilities   23,474,145    27,527,344    20,170,271    15,147,929    6,681,349    2,184,077    44,073 
NET ASSETS  $6,022,725,687   $7,145,005,142   $4,646,549,870   $3,382,365,142   $1,423,303,106   $396,777,277   $6,967,995 
NET ASSETS CONSIST OF:                                   
Paid-in-capital  $4,589,678,840   $5,270,258,122   $3,279,579,234   $2,412,834,270   $1,057,554,717   $312,609,462   $5,725,512 
Total distributable earnings (loss)   1,433,046,847    1,874,747,020    1,366,970,636    969,530,872    365,748,389    84,167,815    1,242,483 
NET ASSETS  $6,022,725,687   $7,145,005,142   $4,646,549,870   $3,382,365,142   $1,423,303,106   $396,777,277   $6,967,995 
INSTITUTIONAL CLASS:                                   
Net assets  $4,468,950,332   $5,311,332,362   $3,557,269,300   $2,626,383,085   $1,092,033,006   $313,864,462   $4,818,337 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   361,213,700    424,108,666    228,451,338    165,948,871    59,418,240    20,428,436    387,146 
Net asset value per share  $12.37   $12.52   $15.57   $15.83   $18.38   $15.36   $12.45 
ADVISOR CLASS:                                   
Net assets  $472,449   $304,500   $152,523   $394,863   $161,709   $240,582   $622,013 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   38,240    24,344    9,796    24,957    8,801    15,672    50,000 
Net asset value per share  $12.35   $12.51   $15.57   $15.82   $18.37   $15.35   $12.44 
PREMIER CLASS:                                   
Net assets  $396,128,131   $441,951,214   $309,233,775   $205,712,706   $93,441,966   $18,792,349   $725,766 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   32,130,546    35,416,573    19,961,252    13,053,766    5,105,085    1,225,956    58,402 
Net asset value per share  $12.33   $12.48   $15.49   $15.76   $18.30   $15.33   $12.43 
RETIREMENT CLASS:                                   
Net assets  $1,157,174,775   $1,391,417,066   $779,894,272   $549,874,488   $237,666,425   $63,879,884   $801,879 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   67,004,757    77,140,104    50,545,526    35,072,270    12,996,557    4,174,883    64,583 
Net asset value per share  $17.27   $18.04   $15.43   $15.68   $18.29   $15.30   $12.42 
‡ Affiliated investments, cost  $4,849,476,569   $5,613,891,658   $3,518,643,606   $2,574,255,857   $1,114,022,230   $321,949,338   $5,946,904 

 

62 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 63

 

Statements of operations

 

TIAA-CREF Lifecycle Funds  ■  For the year ended May 31, 2021

 

   Lifecycle                     
   Retirement   Lifecycle   Lifecycle   Lifecycle   Lifecycle   Lifecycle 
   Income Fund   2010 Fund   2015 Fund   2020 Fund   2025 Fund   2030 Fund 
INVESTMENT INCOME                        
Dividends from affiliated investments      $12,490,376    $26,472,145   $38,112,422   $81,533,998   $104,327,415   $105,328,340 
Total income   12,490,376    26,472,145    38,112,422    81,533,998    104,327,415    105,328,340 
                               
EXPENSES                              
Management fees   2,274,964    4,856,358    7,096,909    15,435,612    20,614,017    21,766,798 
Shareholder servicing – Institutional Class   769    841    1,146    2,400    3,139    3,238 
Shareholder servicing – Advisor Class   362    113    229    254    188    317 
Shareholder servicing – Premier Class   91    108    122    203    223    245 
Shareholder servicing – Retirement Class   480,127    925,726    1,258,466    2,480,412    2,965,442    2,958,668 
Shareholder servicing – Retail Class   36,364    —    —    —    —    — 
Distribution fees – Premier Class   27,505    115,643    169,039    382,345    478,365    516,844 
Distribution fees – Retail Class   335,120    —    —    —    —    — 
Registration fees   76,049    68,835    68,694    83,228    74,676    72,984 
Administrative service fees   47,869    48,761    55,415    81,035    96,504    99,344 
Professional fees   15,576    17,150    18,417    23,872    27,633    28,265 
Trustee fees and expenses   6,458    13,764    19,899    42,825    56,107    58,270 
Shareholder reports   —    22,656    15,302    24,751    43,438    46,954 
Other expenses   95,061    207,718    288,363    592,086    762,840    793,427 
Total expenses   3,396,315    6,277,673    8,992,001    19,149,023    25,122,572    26,345,354 
Less: Expenses reimbursed by the investment adviser   (198,442)   (204,386)   (214,491)   (308,922)   (363,610)   (385,486)
Fee waiver by investment adviser and Nuveen Securities   (686,575)   (1,466,404)   (2,125,215)   (4,623,120)   (6,149,687)   (6,481,694)
Net expenses   2,511,298    4,606,883    6,652,295    14,216,981    18,609,275    19,478,174 
Net investment income (loss)   9,979,078    21,865,262    31,460,127    67,317,017    85,718,140    85,850,166 
                               
NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS                              
Realized gain (loss) from sale of affiliated investments   27,474,218    84,710,093    71,850,094    170,718,619    229,471,532    247,475,000 
Realized gain distributions from affiliated investments   14,935,969    31,166,596    50,239,399    119,717,132    179,126,145    209,270,539 
Net realized gain (loss) from investments   42,410,187    115,876,689    122,089,493    290,435,751    408,597,677    456,745,539 
Net change in unrealized appreciation (depreciation) from affiliated investments   39,922,185    60,717,409    162,629,645    383,314,339    615,869,733    757,057,969 
Net realized and unrealized gain (loss) from investments   82,332,372    176,594,098    284,719,138    673,750,090    1,024,467,410    1,213,803,508 
Net increase (decrease) in net assets from operations  $92,311,450   $198,459,360   $316,179,265   $741,067,107   $1,110,185,550   $1,299,653,674 

 

64 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 65
 

Statements of operations concluded
   
TIAA-CREF Lifecycle Funds  ■  For the year ended May 31, 2021  

 

   Lifecycle   Lifecycle   Lifecycle   Lifecycle   Lifecycle   Lifecycle   Lifecycle 
   2035 Fund   2040 Fund   2045 Fund   2050 Fund   2055 Fund   2060 Fund   2065 Fund§ 
INVESTMENT INCOME                            
Dividends from affiliated investments  $104,317,904   $116,961,811   $69,794,232   $49,296,155   $19,925,172   $4,923,484   $80,244 
Total income   104,317,904    116,961,811    69,794,232    49,296,155    19,925,172    4,923,484    80,244 
                                    
EXPENSES                                   
Management fees   22,517,492    26,782,107    16,928,260    12,098,737    4,921,853    1,229,611    15,388 
Shareholder servicing – Institutional Class   3,423    3,861    7,779    2,623    140,089    1,289    1,564 
Shareholder servicing – Advisor Class   367    185    77    122    57    82    1,526 
Shareholder servicing – Premier Class   244    270    202    158    116    93    1,547 
Shareholder servicing – Retirement Class   2,717,038    3,259,080    1,791,629    1,237,678    531,517    126,803    2,553 
Distribution fees – Premier Class   545,182    618,442    411,844    270,766    118,157    22,635    606 
Registration fees   68,066    70,785    68,272    66,352    64,133    60,291    88,981 
Administrative service fees   100,535    112,406    83,539    69,435    48,272    37,231    25,819 
Professional fees   28,492    30,703    24,965    22,021    17,385    14,849    14,005 
Trustee fees and expenses   59,368    69,988    43,873    31,313    12,705    3,146    35 
Shareholder reports   53,076    60,621    57,072    60,087    43,294    26,143    10,435 
Other expenses   791,588    900,911    572,741    419,483    188,820    68,184    27,274 
Total expenses   26,884,871    31,909,359    19,990,253    14,278,775    6,086,398    1,590,357    189,733 
Less: Expenses reimbursed by the investment adviser   (385,162)   (426,346)   (358,318)   (316,704)   (371,416)   (175,545)   (171,687)
Fee waiver by investment adviser and Nuveen Securities   (6,990,234)   (8,832,528)   (5,474,564)   (4,127,237)   (1,679,845)   (425,192)   (5,921)
Net expenses   19,509,475    22,650,485    14,157,371    9,834,834    4,035,137    989,620    12,125 
Net investment income (loss)   84,808,429    94,311,326    55,636,861    39,461,321    15,890,035    3,933,864    68,119 
                                    
NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS                                   
Realized gain (loss) from sale of affiliated investments   278,599,141    368,897,673    247,336,556    150,240,401    40,474,589    5,711,615    (1,004)
Realized gain distributions from affiliated investments   237,535,039    305,647,560    209,109,782    151,927,338    62,656,732    15,754,409    299,829 
Realized gain (loss) from sale of unaffiliated investments   —    —    —    —    —    837    2,939 
Net realized gain (loss) from investments   516,134,180    674,545,233    456,446,338    302,167,739    103,131,321    21,466,861    301,764 
Net change in unrealized appreciation (depreciation) from affiliated investments   874,364,600    1,149,563,307    802,570,683    613,929,377    273,582,516    73,268,079    1,017,905 
Net realized and unrealized gain (loss) from investments   1,390,498,780    1,824,108,540    1,259,017,021    916,097,116    376,713,837    94,734,940    1,319,669 
Net increase (decrease) in net assets from operations  $1,475,307,209   $1,918,419,866   $1,314,653,882   $955,558,437   $392,603,872   $98,668,804   $1,387,788 
§  For the period September 30, 2020 to May 31, 2021.

 

66 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 67
 

Statements of changes in net assets

 

TIAA-CREF Lifecycle Funds  ■  For the year ended

 

      Lifecycle Retirement Income Fund  Lifecycle 2010 Fund  Lifecycle 2015 Fund
       May 31, 2021     May 31, 2020     May 31, 2021     May 31, 2020     May 31, 2021     May 31, 2020 
                                  
OPERATIONS                                 
Net investment income (loss)  $9,979,078   $14,706,996   $21,865,262   $32,505,291   $31,460,127   $47,924,909 
Net realized gain (loss) from investments   42,410,187    2,997,209    115,876,689    21,816,028    122,089,493    4,350,408 
Net change in unrealized appreciation (depreciation) from affiliated investments   39,922,185    12,579,050    60,717,409    16,049,528    162,629,645    54,691,770 
Net increase (decrease) in net assets from operations   92,311,450    30,283,255    198,459,360    70,370,847    316,179,265    106,967,087 
 
DISTRIBUTIONS TO SHAREHOLDERS                    
   Institutional Class   (13,292,127)   (8,374,807)   (63,091,692)   (36,395,223)   (70,995,502)   (50,045,203)
   Advisor Class   (19,563)   (11,774)   (13,352)   (7,261)   (14,828)   (8,322)
   Premier Class   (994,097)   (893,499)   (6,130,724)   (3,961,923)   (6,453,978)   (5,185,965)
   Retirement Class   (10,268,344)   (6,877,611)   (24,848,226)   (14,298,436)   (23,365,699)   (17,751,257)
   Retail Class   (7,195,960)   (4,547,608)   —    —    —    — 
Total distributions   (31,770,091)   (20,705,299)   (94,083,994)   (54,662,843)   (100,830,007)   (72,990,747)
 
SHAREHOLDER TRANSACTIONS                    
Subscriptions:  Institutional Class   43,900,793    55,860,963    169,967,222    109,146,947    128,945,911    108,723,437 
   Advisor Class   238,116    —    4,195    3,618,336    35,000    55,000 
   Premier Class   4,897,482    7,223,588    10,144,416    12,884,799    14,025,542    15,236,370 
   Retirement Class   22,640,293    32,180,765    31,070,718    30,976,016    20,342,406    23,598,582 
   Retail Class   12,729,295    14,655,005    —    —    —    — 
Reinvestments of distributions:  Institutional Class   13,191,569    8,326,784    63,079,864    36,377,668    70,875,182    49,958,348 
   Advisor Class   13,004    7,575    3,790    1,862    7,916    3,626 
   Premier Class   993,063    892,453    6,130,724    3,961,923    6,453,978    5,185,965 
   Retirement Class   10,268,346    6,877,611    24,848,226    14,298,436    23,365,699    17,751,257 
   Retail Class   6,988,443    4,393,020    —    —    —    — 
Redemptions:  Institutional Class   (55,656,684)   (41,609,186)   (180,930,067)   (106,402,474)   (207,223,499)   (146,537,165)
   Advisor Class   (8,337)   —    (338)   (3,614,560)   —    — 
   Premier Class   (6,074,799)   (20,362,821)   (17,791,112)   (59,071,396)   (24,739,297)   (91,736,585)
   Retirement Class   (31,796,413)   (42,698,499)   (75,481,816)   (73,992,878)   (100,996,727)   (111,296,095)
   Retail Class   (12,425,992)   (16,322,482)   —    —    —    — 
Net increase (decrease) from shareholder transactions   9,898,179    9,424,776    31,045,822    (31,815,321)   (68,907,889)   (129,057,260)
Net increase (decrease) in net assets   70,439,538    19,002,732    135,421,188    (16,107,317)   146,441,369    (95,080,920)
 
NET ASSETS                                 
Beginning of period      538,571,180    519,568,448    1,147,538,076    1,163,645,393    1,688,459,365    1,783,540,285 
End of period     $609,010,718   $538,571,180   $1,282,959,264   $1,147,538,076   $1,834,900,734   $1,688,459,365 
 
CHANGE IN FUND SHARES                                 
Shares sold:  Institutional Class   3,559,443    4,816,566    14,418,958    9,555,803    12,603,762    11,084,291 
   Advisor Class   19,210    —    364    312,042    3,597    5,510 
   Premier Class   397,719    630,222    857,964    1,148,850    1,361,143    1,604,581 
   Retirement Class   1,842,517    2,771,863    2,174,784    2,284,375    1,540,135    1,931,159 
   Retail Class   1,030,119    1,268,225    —    —    —    — 
Shares reinvested:  Institutional Class   1,078,515    727,356    5,409,937    3,193,825    6,901,186    5,118,683 
   Advisor Class   1,061    661    324    163    771    372 
   Premier Class   81,178    77,685    527,147    348,454    630,887    533,536 
   Retirement Class   840,635    600,183    1,754,818    1,048,272    1,778,211    1,440,849 
   Retail Class   571,584    383,309    —    —    —    — 
Shares redeemed:  Institutional Class   (4,527,666)   (3,617,480)   (15,215,826)   (9,419,425)   (20,100,659)   (15,252,924)
   Advisor Class   (655)   —    (29)   (311,197)   —    — 
   Premier Class   (494,181)   (1,762,127)   (1,484,308)   (5,137,686)   (2,382,966)   (9,375,291)
   Retirement Class   (2,590,037)   (3,740,843)   (5,258,927)   (5,477,167)   (7,693,734)   (9,217,811)
   Retail Class   (1,008,412)   (1,441,183)   —    —    —    — 
Net increase (decrease) from shareholder transactions   801,030    714,437    3,185,206    (2,453,691)   (5,357,667)   (12,127,045)

 

68 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 69
 
Statements of changes in net assets continued
   
TIAA-CREF Lifecycle Funds  ■  For the year ended  

 

      Lifecycle 2020 Fund  Lifecycle 2025 Fund  Lifecycle 2030 Fund
       May 31, 2021     May 31, 2020     May 31, 2021     May 31, 2020     May 31, 2021     May 31, 2020 
                                  
OPERATIONS                              
Net investment income (loss)  $67,317,017   $98,766,006   $85,718,140   $117,946,291   $85,850,166   $113,914,992 
Net realized gain (loss) from investments   290,435,751    17,255,073    408,597,677    26,905,180    456,745,539    41,431,960 
Net change in unrealized appreciation (depreciation) from affiliated investments   383,314,339    110,622,046    615,869,733    136,815,368    757,057,969    128,992,041 
Net increase (decrease) in net assets from operations   741,067,107    226,643,125    1,110,185,550    281,666,839    1,299,653,674    284,338,993 
 
DISTRIBUTIONS TO SHAREHOLDERS                    
   Institutional Class   (169,542,639)   (112,429,895)   (228,400,100)   (155,088,365)   (253,904,486)   (164,151,998)
   Advisor Class   (7,787)   (9,991)   (9,950)   (7,414)   (31,365)   (8,075)
   Premier Class   (15,870,159)   (12,576,922)   (19,632,772)   (15,741,468)   (22,524,246)   (17,409,332)
   Retirement Class   (48,465,010)   (34,197,762)   (55,917,737)   (41,100,056)   (58,159,418)   (40,086,706)
Total distributions   (233,885,595)   (159,214,570)   (303,960,559)   (211,937,303)   (334,619,515)   (221,656,111)
 
SHAREHOLDER TRANSACTIONS                    
Subscriptions:  Institutional Class   273,046,939    255,979,577    400,871,182    433,414,654    423,447,803    501,980,292 
   Advisor Class   944,061    249,390    383,323    21,753    140,974    244,370 
   Premier Class   17,377,062    45,938,845    32,920,235    64,075,000    39,187,488    63,927,651 
   Retirement Class   45,567,956    50,859,094    71,398,285    84,243,325    81,716,107    91,695,792 
Reinvestments of distributions:  Institutional Class   169,095,637    112,157,010    227,226,911    154,325,378    253,167,318    163,689,187 
   Advisor Class   262    5,021    2,302    2,062    23,125    2,430 
   Premier Class   15,867,142    12,575,958    19,632,772    15,741,468    22,524,246    17,409,332 
   Retirement Class   48,462,386    34,196,137    55,916,502    41,099,334    58,158,131    40,085,948 
Redemptions:  Institutional Class   (435,250,022)   (270,781,843)   (413,178,900)   (259,151,983)   (373,856,722)   (235,812,294)
   Advisor Class   (628,688)   (113,123)   (5,318)   (15,898)   (38,856)   (30,725)
   Premier Class   (63,109,751)   (222,775,468)   (61,742,663)   (288,750,168)   (64,887,458)   (292,982,851)
   Retirement Class   (190,216,613)   (195,522,535)   (217,012,692)   (179,121,829)   (183,071,813)   (154,743,530)
Net increase (decrease) from shareholder transactions   (118,843,629)   (177,231,937)   116,411,939    65,883,096    256,510,343    195,465,602 
Net increase (decrease) in net assets   388,337,883    (109,803,382)   922,636,930    135,612,632    1,221,544,502    258,148,484 
NET ASSETS                              
Beginning of period   3,571,615,894    3,681,419,276    4,541,930,627    4,406,317,995    4,619,839,909    4,361,691,425 
End of period     $3,959,953,777   $3,571,615,894   $5,464,567,557   $4,541,930,627   $5,841,384,411   $4,619,839,909 
 
CHANGE IN FUND SHARES                    
Shares sold:  Institutional Class   25,649,378    25,351,376    36,496,743    42,121,512    37,991,391    48,806,490 
   Advisor Class   87,067    25,617    34,023    2,083    12,974    23,022 
   Premier Class   1,630,836    4,658,146    2,986,571    6,414,318    3,506,632    6,390,008 
   Retirement Class   3,260,988    3,950,850    4,896,842    6,330,219    5,399,842    6,736,189 
Shares reinvested:  Institutional Class   15,892,447    11,115,660    20,656,992    14,968,514    22,766,845    15,784,878 
   Advisor Class   25    498    210    200    2,080    235 
   Premier Class   1,495,489    1,248,854    1,792,947    1,532,762    2,036,550    1,686,950 
   Retirement Class   3,469,033    2,620,394    3,822,044    3,042,141    3,836,288    2,885,957 
Shares redeemed:  Institutional Class   (40,645,402)   (27,478,152)   (37,691,035)   (25,877,663)   (33,867,496)   (23,539,755)
   Advisor Class   (58,111)   (11,081)   (471)   (1,632)   (3,453)   (3,404)
   Premier Class   (5,879,748)   (22,000,955)   (5,586,772)   (27,984,298)   (5,780,028)   (28,360,090)
   Retirement Class   (13,584,155)   (15,378,499)   (14,830,291)   (13,770,119)   (12,064,916)   (11,591,335)
Net increase (decrease) from shareholder transactions   (8,682,153)   (15,897,292)   12,577,803    6,778,037    23,836,709    18,819,145 

 

70 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 71
 
Statements of changes in net assets continued
   
TIAA-CREF Lifecycle Funds  ■  For the year ended  

 

      Lifecycle 2035 Fund  Lifecycle 2040 Fund  Lifecycle 2045 Fund
       May 31, 2021     May 31, 2020     May 31, 2021     May 31, 2020     May 31, 2021     May 31, 2020 
                                  
OPERATIONS                    
Net investment income (loss)  $84,808,429   $111,173,558   $94,311,326   $124,064,801   $55,636,861   $69,099,983 
Net realized gain (loss) from investments   516,134,180    59,474,335    674,545,233    90,622,015    456,446,338    70,509,586 
Net change in unrealized appreciation (depreciation) from affiliated investments   874,364,600    120,333,513    1,149,563,307    134,324,800    802,570,683    57,807,701 
Net increase (decrease) in net assets from operations   1,475,307,209    290,981,406    1,918,419,866    349,011,616    1,314,653,882    197,417,270 
 
DISTRIBUTIONS TO SHAREHOLDERS                    
   Institutional Class   (286,156,220)   (183,315,563)   (371,346,365)   (225,412,596)   (219,792,380)   (134,318,406)
   Advisor Class   (30,802)   (20,162)   (20,305)   (11,862)   (13,606)   (9,164)
   Premier Class   (25,272,007)   (20,653,531)   (31,398,502)   (26,133,682)   (19,260,742)   (16,183,219)
   Retirement Class   (55,861,878)   (39,472,208)   (71,910,536)   (48,477,562)   (51,651,316)   (35,705,959)
Total distributions      (367,320,907)   (243,461,464)   (474,675,708)   (300,035,702)   (290,718,044)   (186,216,748)
 
SHAREHOLDER TRANSACTIONS                    
Subscriptions:  Institutional Class   400,726,391    526,447,739    393,505,873    589,037,036    358,204,753    514,722,289 
   Advisor Class   7,000    254,534    44,310    104,698    —    40,379 
   Premier Class   33,730,604    69,367,394    30,467,712    70,118,830    28,909,155    59,130,694 
   Retirement Class   64,509,776    74,652,742    61,605,749    73,107,584    54,990,544    64,196,727 
Reinvestments of distributions:  Institutional Class   285,384,360    182,804,884    370,539,877    224,953,060    219,189,825    133,930,001 
   Advisor Class   21,817    13,988    10,334    5,405    3,319    1,979 
   Premier Class   25,272,007    20,653,531    31,398,502    26,133,682    19,260,742    16,183,219 
   Retirement Class   55,849,449    39,464,176    71,892,450    48,466,788    51,644,106    35,702,177 
Redemptions:  Institutional Class   (378,123,271)   (203,660,302)   (412,209,014)   (230,760,496)   (230,254,889)   (115,582,820)
   Advisor Class   (4,341)   (2,644)   (9,362)   (33,172)   (47,195)   (1,979)
   Premier Class   (62,116,062)   (333,644,459)   (85,769,384)   (425,313,568)   (44,242,600)   (291,540,374)
   Retirement Class   (183,116,951)   (137,997,608)   (225,239,956)   (161,191,151)   (132,607,623)   (80,272,924)
Net increase (decrease) from shareholder transactions   242,140,779    238,353,975    236,237,091    214,628,696    325,050,137    336,509,368 
Net increase (decrease) in net assets   1,350,127,081    285,873,917    1,679,981,249    263,604,610    1,348,985,975    347,709,890 
NET ASSETS                              
Beginning of period      4,672,598,606    4,386,724,689    5,465,023,893    5,201,419,283    3,297,563,895    2,949,854,005 
End of period     $6,022,725,687   $4,672,598,606   $7,145,005,142   $5,465,023,893   $4,646,549,870   $3,297,563,895 
 
CHANGE IN FUND SHARES                    
Shares sold:  Institutional Class   35,285,927    50,647,268    34,643,712    57,080,976    25,783,485    41,478,971 
   Advisor Class   607    23,989    3,861    9,877    —    3,161 
   Premier Class   2,950,557    6,821,213    2,660,627    7,050,707    2,062,781    4,862,316 
   Retirement Class   4,074,502    5,324,705    3,796,695    5,115,143    3,962,329    5,262,906 
Shares reinvested:  Institutional Class   25,188,381    17,376,890    32,675,474    21,403,717    15,723,804    10,545,669 
   Advisor Class   1,927    1,331    912    515    238    156 
   Premier Class   2,236,461    1,968,878    2,778,628    2,493,672    1,388,662    1,279,306 
   Retirement Class   3,528,076    2,738,666    4,397,092    3,274,783    3,736,911    2,831,259 
Shares redeemed:  Institutional Class   (33,775,898)   (19,964,269)   (36,762,028)   (22,640,026)   (16,750,949)   (9,403,059)
   Advisor Class   (383)   (252)   (827)   (3,137)   (3,399)   (156)
   Premier Class   (5,429,866)   (31,838,711)   (7,456,320)   (40,819,062)   (3,155,713)   (23,240,276)
   Retirement Class   (11,583,502)   (10,019,572)   (13,764,325)   (11,442,586)   (9,460,984)   (6,603,510)
Net increase (decrease) from shareholder transactions   22,476,789    23,080,136    22,973,501    21,524,579    23,287,165    27,016,743 

 

72 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 73
 
Statements of changes in net assets continued
   
TIAA-CREF Lifecycle Funds  ■  For the year ended  

 

      Lifecycle 2050 Fund  Lifecycle 2055 Fund  Lifecycle 2060 Fund
       May 31, 2021     May 31, 2020     May 31, 2021     May 31, 2020     May 31, 2021     May 31, 2020 
                                  
OPERATIONS                    
Net investment income (loss)  $39,461,321   $46,874,807   $15,890,035   $17,109,810   $3,933,864   $3,457,100 
Net realized gain (loss) from investments   302,167,739    46,695,925    103,131,321    15,658,564    21,466,861    2,990,328 
Net change in unrealized appreciation (depreciation) from affiliated investments   613,929,377    40,545,583    273,582,516    15,144,174    73,268,079    2,451,647 
Net increase (decrease) in net assets from operations   955,558,437    134,116,315    392,603,872    47,912,548    98,668,804    8,899,075 
 
DISTRIBUTIONS TO SHAREHOLDERS                    
   Institutional Class   (148,512,585)   (91,480,543)   (49,583,491)   (30,385,948)   (10,426,088)   (5,607,924)
   Advisor Class   (9,660)   (7,200)   (8,250)   (6,801)   (6,520)   (5,635)
   Premier Class   (11,719,937)   (10,929,088)   (4,268,491)   (4,093,723)   (684,320)   (567,784)
   Retirement Class   (32,907,302)   (23,778,848)   (11,625,296)   (9,084,771)   (2,264,142)   (1,492,657)
Total distributions      (193,149,484)   (126,195,679)   (65,485,528)   (43,571,243)   (13,381,070)   (7,674,000)
 
SHAREHOLDER TRANSACTIONS                    
Subscriptions:  Institutional Class   293,468,235    450,009,845    193,224,719    251,263,792    98,630,215    85,299,732 
   Advisor Class   235,170    647    —    1,000    78,019    — 
   Premier Class   23,008,007    52,994,395    14,998,337    29,559,086    5,891,351    11,872,766 
   Retirement Class   48,985,065    54,343,285    27,529,742    36,732,199    17,187,660    15,142,557 
Reinvestments of distributions:  Institutional Class   148,342,907    91,386,755    49,456,094    30,293,881    10,404,168    5,600,373 
   Advisor Class   —    37    62    —    197    167 
   Premier Class   11,717,967    10,927,652    4,267,574    4,092,975    678,121    562,463 
   Retirement Class   32,907,260    23,778,838    11,622,900    9,083,428    2,263,534    1,492,133 
Redemptions:  Institutional Class   (126,856,018)   (72,388,271)   (48,460,548)   (30,246,298)   (16,914,706)   (16,637,126)
   Advisor Class   (16,000)   (556)   —    —    (98)   (105)
   Premier Class   (30,167,278)   (244,238,489)   (10,645,488)   (112,876,550)   (3,042,802)   (21,115,091)
   Retirement Class   (89,070,051)   (54,437,980)   (42,766,910)   (20,965,693)   (9,098,680)   (5,219,950)
Net increase (decrease) from shareholder transactions   312,555,264    312,376,158    199,226,482    196,937,820    106,076,979    76,997,919 
Net increase (decrease) in net assets   1,074,964,217    320,296,794    526,344,826    201,279,125    191,364,713    78,222,994 
NET ASSETS                                 
Beginning of period      2,307,400,925    1,987,104,131    896,958,280    695,679,155    205,412,564    127,189,570 
End of period     $3,382,365,142   $2,307,400,925   $1,423,303,106   $896,958,280   $396,777,277   $205,412,564 
 
CHANGE IN FUND SHARES                    
Shares sold:  Institutional Class   20,942,238    36,142,068    11,972,711    17,719,332    7,240,931    7,385,146 
   Advisor Class   16,210    50    —    65    5,354    — 
   Premier Class   1,626,882    4,341,324    925,109    2,108,858    438,803    1,037,574 
   Retirement Class   3,508,863    4,430,908    1,700,785    2,621,233    1,264,795    1,320,228 
Shares reinvested:  Institutional Class   10,505,871    7,145,172    3,019,298    2,069,254    761,095    463,991 
   Advisor Class   —    3    4    —    14    14 
   Premier Class   832,833    857,743    261,494    280,533    49,716    46,639 
   Retirement Class   2,348,841    1,873,825    712,624    622,579    166,070    123,829 
Shares redeemed:  Institutional Class   (9,127,666)   (5,789,237)   (2,999,911)   (2,090,141)   (1,293,940)   (1,451,132)
   Advisor Class   (1,059)   (53)   —    —    (7)   (8)
   Premier Class   (2,133,139)   (19,377,435)   (646,619)   (7,827,560)   (219,819)   (1,797,075)
   Retirement Class   (6,329,649)   (4,453,736)   (2,618,595)   (1,501,051)   (677,230)   (459,990)
Net increase (decrease) from shareholder transactions   22,190,225    25,170,632    12,326,900    14,003,102    7,735,782    6,669,216 

 

74 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 75
 
Statements of changes in net assets concluded
   
TIAA-CREF Lifecycle Funds  ■  For the year ended  

 

        Lifecycle 2065 Fund    
      May 31, 2021§  
           
OPERATIONS          
Net investment income (loss)                 $68,119            
Net realized gain (loss) from investments   301,764   
Net change in unrealized appreciation (depreciation) from affiliated investments   1,017,905   
Net increase (decrease) in net assets from operations   1,387,788   
 
DISTRIBUTIONS TO SHAREHOLDERS   
   Institutional Class   (101,770)  
   Advisor Class   (14,285)  
   Premier Class   (14,286)  
   Retirement Class   (14,151)  
Total distributions      (144,492)  
 
SHAREHOLDER TRANSACTIONS       
Subscriptions:  Institutional Class   3,988,378   
   Advisor Class   500,000   
   Premier Class   598,791   
   Retirement Class   678,273   
Reinvestments of distributions:  Institutional Class   461   
   Advisor Class   —   
   Premier Class   —   
   Retirement Class   —   
Redemptions:  Institutional Class   (41,150)  
   Advisor Class   —   
   Premier Class   (14)  
   Retirement Class   (40)  
Net increase (decrease) from shareholder transactions   5,724,699   
Net increase (decrease) in net assets   6,967,995   
NET ASSETS          
Beginning of period      —   
End of period     $6,967,995   
 
CHANGE IN FUND SHARES          
Shares sold:  Institutional Class   390,564   
   Advisor Class   50,000   
   Premier Class   58,403   
   Retirement Class   64,587   
Shares reinvested:  Institutional Class   42   
   Advisor Class   —   
   Premier Class   —   
   Retirement Class   —   
Shares redeemed:  Institutional Class   (3,460)  
   Advisor Class   —   
   Premier Class   (1)  
   Retirement Class   (4)  
Net increase (decrease) from shareholder transactions   560,131   
§For the period September 30, 2020 to May 31, 2021.

 

76 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements
 

[This page intentionally left blank.]

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 77
 

Financial highlights

 

TIAA-CREF 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
or year
ended		  value,
beginning
of period		   investment
income
(loss		)a   gain (loss
on total
investments		)

j 		  (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands		)  Gross
expenses		   Net
expenses		   investment
income
(loss		)  Portfolio
turnover
rate		 
LIFECYCLE RETIREMENT INCOME FUND                                    
Institutional Class:    5/31/21  $11.52   $0.23   $ 1.76   $1.99   $(0.31)  $(0.39)  $(0.70)  $12.81    17.67%  $244,923    0.43%g    0.29%g    1.87%   41%
   5/31/20   11.29    0.33    0.36    0.69    (0.29)   (0.17)   (0.46)   11.52    6.14    219,016    0.48g    0.33g    2.84    30 
   5/31/19   11.68    0.29    (0.04)   0.25    (0.32)   (0.32)   (0.64)   11.29    2.48    192,832    0.38f    0.22f    2.52    25 
   5/31/18   11.40    0.26    0.43    0.69    (0.31)   (0.10)   (0.41)   11.68    6.02    202,413    0.15e    0.00e    2.24    18 
   5/31/17   10.87    0.24    0.72    0.96    (0.27)   (0.16)   (0.43)   11.40    9.09    179,048    0.16e    0.00e    2.14    21 
Advisor Class:  5/31/21   11.52    0.20    1.78    1.98    (0.30)   (0.39)   (0.69)   12.81    17.57    596    0.52g    0.38g    1.63    41 
   5/31/20   11.29    0.32    0.36    0.68    (0.28)   (0.17)   (0.45)   11.52    6.04    310    0.57g    0.42g    2.74    30 
   5/31/19   11.68    0.30    (0.05)   0.25    (0.32)   (0.32)   (0.64)   11.29    2.43    296    0.47f    0.31f    2.68    25 
   5/31/18   11.41    0.25    0.43    0.68    (0.31)   (0.10)   (0.41)   11.68    5.91    216    0.18e    0.03e    2.14    18 
   5/31/17   10.88    0.24    0.72    0.96    (0.27)   (0.16)   (0.43)   11.41    9.07    107    0.17e    0.02e    2.14    21 
Premier Class:  5/31/21   11.51    0.21    1.76    1.97    (0.29)   (0.39)   (0.68)   12.80    17.51    19,161    0.58g    0.44g    1.71    41 
   5/31/20   11.28    0.31    0.36    0.67    (0.27)   (0.17)   (0.44)   11.51    5.97    17,410    0.63g    0.48g    2.69    30 
   5/31/19   11.67    0.27    (0.03)   0.24    (0.31)   (0.32)   (0.63)   11.28    2.33    28,947    0.53f    0.37f    2.40    25 
   5/31/18   11.40    0.25    0.42    0.67    (0.30)   (0.10)   (0.40)   11.67    5.77    36,733    0.30e    0.15e    2.11    18 
   5/31/17   10.87    0.22    0.73    0.95    (0.26)   (0.16)   (0.42)   11.40    8.93    37,047    0.31e    0.15e    2.01    21 
Retirement Class:  5/31/21   11.49    0.20    1.76    1.96    (0.28)   (0.39)   (0.67)   12.78    17.43    200,300    0.68g    0.54g    1.61    41 
   5/31/20   11.26    0.30    0.36    0.66    (0.26)   (0.17)   (0.43)   11.49    5.88    179,106    0.73g    0.58g    2.59    30 
   5/31/19   11.65    0.26    (0.04)   0.22    (0.29)   (0.32)   (0.61)   11.26    2.23    179,625    0.63f    0.48f    2.27    25 
   5/31/18   11.38    0.23    0.43    0.66    (0.29)   (0.10)   (0.39)   11.65    5.68    192,819    0.40e    0.25e    2.00    18 
   5/31/17   10.85    0.21    0.72    0.93    (0.24)   (0.16)   (0.40)   11.38    8.84    174,950    0.41e    0.25e    1.89    21 
Retail Class:  5/31/21   11.51    0.20    1.75    1.95    (0.28)   (0.39)   (0.67)   12.79    17.31    144,030    0.71g    0.54g    1.62    41 
   5/31/20   11.27    0.30    0.37    0.67    (0.26)   (0.17)   (0.43)   11.51    5.97    122,730    0.75g    0.58g    2.58    30 
   5/31/19   11.66    0.26    (0.04)   0.22    (0.29)   (0.32)   (0.61)   11.27    2.14    117,869    0.66f    0.48f    2.28    25 
   5/31/18   11.39    0.23    0.43    0.66    (0.29)   (0.10)   (0.39)   11.66    5.76    115,783    0.43e    0.25e    2.00    18 
   5/31/17   10.86    0.21    0.72    0.93    (0.24)   (0.16)   (0.40)   11.39    8.82    104,158    0.44e    0.25e    1.90    21 

 

78 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 79
 
Financial highlights continued
   
TIAA-CREF 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
or year
ended		    value,
beginning
of period		   investment
income
(loss		)a   gain (loss
on total
investments		)

j 		  (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands		)  Gross
expenses		   Net
expenses		   investment
income
(loss		)  Portfolio
turnover
rate		 
LIFECYCLE 2010 FUND                                                      
Institutional Class:  5/31/21  $11.27   $0.22   $ 1.73   $ 1.95   $(0.34)  $(0.68)  $(1.02)  $12.20    17.75%  $  836,684    0.42%g    0.29%g    1.84%   38%
   5/31/20   11.14    0.32    0.38    0.70    (0.30)   (0.27)   (0.57)   11.27    6.29    720,990    0.46g    0.33g    2.85    28 
   5/31/19   11.65    0.28    (0.06)   0.22    (0.35)   (0.38)   (0.73)   11.14    2.26    675,843    0.35f    0.23f    2.50    22 
   5/31/18   11.48    0.26    0.47    0.73    (0.33)   (0.23)   (0.56)   11.65    6.45    698,687    0.12e    0.00e    2.23    21 
   5/31/17   10.93    0.24    0.77    1.01    (0.28)   (0.18)   (0.46)   11.48    9.59    639,496    0.12e    0.00e    2.11    26 
Advisor Class:  5/31/21   11.30    0.22    1.71    1.93    (0.33)   (0.68)   (1.01)   12.22    17.57    164    0.49g    0.36g    1.81    38 
   5/31/20   11.15    0.19    0.53    0.72    (0.30)   (0.27)   (0.57)   11.30    6.45    144    0.56g    0.37g    1.67    28 
   5/31/19   11.66    0.27    (0.06)   0.21    (0.34)   (0.38)   (0.72)   11.15    2.33    131    0.39f    0.27f    2.39    22 
   5/31/18   11.48    0.26    0.48    0.74    (0.33)   (0.23)   (0.56)   11.66    6.44    117    0.13e    0.01e    2.24    21 
   5/31/17   10.93    0.24    0.77    1.01    (0.28)   (0.18)   (0.46)   11.48    9.57    108    0.14e    0.02e    2.13    26 
Premier Class:  5/31/21   11.24    0.20    1.73    1.93    (0.32)   (0.68)   (1.00)   12.17    17.62    77,845    0.57g    0.44g    1.70    38 
   5/31/20   11.11    0.31    0.37    0.68    (0.28)   (0.27)   (0.55)   11.24    6.10    73,048    0.61g    0.48g    2.68    28 
   5/31/19   11.62    0.27    (0.07)   0.20    (0.33)   (0.38)   (0.71)   11.11    2.10    112,673    0.50f    0.37f    2.39    22 
   5/31/18   11.45    0.24    0.47    0.71    (0.31)   (0.23)   (0.54)   11.62    6.31    147,851    0.27e    0.15e    2.09    21 
   5/31/17   10.90    0.22    0.78    1.00    (0.27)   (0.18)   (0.45)   11.45    9.45    150,928    0.27e    0.15e    2.00    26 
Retirement Class:  5/31/21   13.48    0.23    2.07    2.30    (0.30)   (0.68)   (0.98)   14.80    17.45    368,266    0.67g    0.54g    1.62    38 
   5/31/20   13.22    0.35    0.45    0.80    (0.27)   (0.27)   (0.54)   13.48    6.02    353,355    0.71g    0.58g    2.58    28 
   5/31/19   13.68    0.30    (0.07)   0.23    (0.31)   (0.38)   (0.69)   13.22    2.01    374,999    0.60f    0.48f    2.26    22 
   5/31/18   13.39    0.27    0.55    0.82    (0.30)   (0.23)   (0.53)   13.68    6.16    409,891    0.37e    0.25e    1.97    21 
   5/31/17   12.66    0.25    0.91    1.16    (0.25)   (0.18)   (0.43)   13.39    9.42    434,448    0.37e    0.25e    1.90    26 
LIFECYCLE 2015 FUND                                                        
Institutional Class:  5/31/21   9.62    0.19    1.66    1.85    (0.30)   (0.36)   (0.66)   10.81    19.56    1,217,691    0.42g    0.29g    1.83    36 
   5/31/20   9.45    0.27    0.34    0.61    (0.26)   (0.18)   (0.44)   9.62    6.43    1,088,594    0.46g    0.34g    2.80    26 
   5/31/19   10.05    0.24    (0.10)   0.14    (0.30)   (0.44)   (0.74)   9.45    1.89    1,061,156    0.35f    0.23f    2.43    21 
   5/31/18   9.97    0.22    0.48    0.70    (0.29)   (0.33)   (0.62)   10.05    7.09    1,070,488    0.12e    0.00e    2.18    19 
   5/31/17   9.61    0.20    0.77    0.97    (0.26)   (0.35)   (0.61)   9.97    10.51    988,229    0.12e    0.00e    2.10    25 
Advisor Class:  5/31/21   9.61    0.18    1.67    1.85    (0.29)   (0.36)   (0.65)   10.81    19.60    255    0.52g    0.39g    1.75    36 
   5/31/20   9.45    0.26    0.34    0.60    (0.26)   (0.18)   (0.44)   9.61    6.29    185    0.55g    0.39g    2.66    26 
   5/31/19   10.05    0.23    (0.09)   0.14    (0.30)   (0.44)   (0.74)   9.45    1.88    126    0.38f    0.26f    2.38    21 
   5/31/18   9.96    0.22    0.49    0.71    (0.29)   (0.33)   (0.62)   10.05    7.16    107    0.13e    0.02e    2.19    19 
   5/31/17   9.61    0.20    0.75    0.95    (0.25)   (0.35)   (0.60)   9.96    10.38    106    0.15e    0.03e    2.10    25 
Premier Class:  5/31/21   9.57    0.17    1.66    1.83    (0.28)   (0.36)   (0.64)   10.76    19.47    116,117    0.57g    0.44g    1.67    36 
   5/31/20   9.41    0.25    0.33    0.58    (0.24)   (0.18)   (0.42)   9.57    6.14    107,025    0.61g    0.49g    2.61    26 
   5/31/19   10.01    0.22    (0.09)   0.13    (0.29)   (0.44)   (0.73)   9.41    1.83    173,266    0.49f    0.37f    2.31    21 
   5/31/18   9.92    0.21    0.49    0.70    (0.28)   (0.33)   (0.61)   10.01    6.96    235,104    0.27e    0.15e    2.04    19 
   5/31/17   9.57    0.19    0.75    0.94    (0.24)   (0.35)   (0.59)   9.92    10.28    256,577    0.27e    0.15e    1.97    25 
Retirement Class:  5/31/21   12.13    0.21    2.11    2.32    (0.27)   (0.36)   (0.63)   13.82    19.34    500,838    0.67g    0.54g    1.60    36 
   5/31/20   11.82    0.31    0.41    0.72    (0.23)   (0.18)   (0.41)   12.13    6.06    492,656    0.71g    0.59g    2.54    26 
   5/31/19   12.37    0.26    (0.10)   0.16    (0.27)   (0.44)   (0.71)   11.82    1.74    548,992    0.60f    0.48f    2.19    21 
   5/31/18   12.12    0.24    0.60    0.84    (0.26)   (0.33)   (0.59)   12.37    6.87    635,454    0.37e    0.25e    1.93    19 
   5/31/17   11.56    0.22    0.92    1.14    (0.23)   (0.35)   (0.58)   12.12    10.18    683,089    0.37e    0.25e    1.86    25 

 

80 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 81
 
Financial highlights continued
   
TIAA-CREF 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
or year
ended		    value,
beginning
of period		   investment
income
(loss		)a   gain (loss
on total
investments		)

j 		  (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands		)  Gross
expenses		   Net
expenses		   investment
income
(loss		)  Portfolio
turnover
rate		 
LIFECYCLE 2020 FUND                                                      
Institutional Class:  5/31/21  $ 9.89   $0.20   $ 1.90   $2.10   $(0.32)  $(0.41)  $(0.73)  $11.26    21.61%  $ 2,712,681    0.42%g    0.29%g    1.82%   38%
   5/31/20   9.73    0.27    0.37    0.64    (0.25)   (0.23)   (0.48)   9.89    6.43    2,374,405    0.47g    0.35g    2.75    26 
   5/31/19   10.43    0.23    (0.13)   0.10    (0.31)   (0.49)   (0.80)   9.73    1.45    2,247,877    0.36f    0.24f    2.33    23 
   5/31/18   10.22    0.22    0.61    0.83    (0.30)   (0.32)   (0.62)   10.43    8.07    2,188,054    0.11e    0.00e    2.11    17 
   5/31/17   9.77    0.20    0.88    1.08    (0.25)   (0.38)   (0.63)   10.22    11.57    1,894,346    0.11e    0.00e    2.04    21 
Advisor Class:  5/31/21   9.89    0.14    1.94    2.08    (0.31)   (0.41)   (0.72)   11.25    21.43    726    0.48g    0.35g    1.26    38 
   5/31/20   9.73    0.26    0.38    0.64    (0.25)   (0.23)   (0.48)   9.89    6.42    352    0.51g    0.39g    2.61    26 
   5/31/19   10.42    0.23    (0.13)   0.10    (0.30)   (0.49)   (0.79)   9.73    1.39    200    0.35f    0.24f    2.32    23 
   5/31/18   10.21    0.19    0.64    0.83    (0.30)   (0.32)   (0.62)   10.42    8.17    226    0.17e    0.06e    1.85    17 
   5/31/17   9.76    0.21    0.87    1.08    (0.25)   (0.38)   (0.63)   10.21    11.56    107    0.13e    0.02e    2.06    21 
Premier Class:  5/31/21   9.87    0.18    1.89    2.07    (0.30)   (0.41)   (0.71)   11.23    21.37    252,876    0.57g    0.45g    1.66    38 
   5/31/20   9.70    0.25    0.38    0.63    (0.23)   (0.23)   (0.46)   9.87    6.35    249,364    0.62g    0.50g    2.53    26 
   5/31/19   10.40    0.22    (0.14)   0.08    (0.29)   (0.49)   (0.78)   9.70    1.27    401,306    0.50f    0.38f    2.21    23 
   5/31/18   10.19    0.21    0.61    0.82    (0.29)   (0.32)   (0.61)   10.40    7.94    503,806    0.26e    0.15e    1.97    17 
   5/31/17   9.74    0.19    0.87    1.06    (0.23)   (0.38)   (0.61)   10.19    11.44    513,388    0.26e    0.15e    1.90    21 
Retirement Class:  5/31/21   12.79    0.22    2.46    2.68    (0.28)   (0.41)   (0.69)   14.78    21.27    993,670    0.67g    0.55g    1.59    38 
   5/31/20   12.45    0.32    0.47    0.79    (0.22)   (0.23)   (0.45)   12.79    6.21    947,495    0.72g    0.60g    2.50    26 
   5/31/19   13.10    0.27    (0.16)   0.11    (0.27)   (0.49)   (0.76)   12.45    1.18    1,032,037    0.60f    0.49f    2.09    23 
   5/31/18   12.69    0.24    0.76    1.00    (0.27)   (0.32)   (0.59)   13.10    7.89    1,146,465    0.36e    0.25e    1.86    17 
   5/31/17   11.98    0.22    1.09    1.31    (0.22)   (0.38)   (0.60)   12.69    11.33    1,151,160    0.36e    0.25e    1.80    21 
LIFECYCLE 2025 FUND                                                        
Institutional Class:  5/31/21   10.04    0.19    2.27    2.46    (0.31)   (0.43)   (0.74)   11.76    24.96    3,909,833    0.43g    0.30g    1.76    40 
   5/31/20   9.89    0.27    0.40    0.67    (0.25)   (0.27)   (0.52)   10.04    6.59    3,142,487    0.48g    0.36g    2.66    28 
   5/31/19   10.68    0.22    (0.21)   0.01    (0.30)   (0.50)   (0.80)   9.89    0.58    2,786,751    0.37f    0.25f    2.18    20 
   5/31/18   10.33    0.21    0.75    0.96    (0.30)   (0.31)   (0.61)   10.68    9.46    2,580,691    0.11e    0.00e    2.00    16 
   5/31/17   9.76    0.20    1.01    1.21    (0.24)   (0.40)   (0.64)   10.33    12.89    2,135,802    0.11e    0.00e    1.97    20 
Advisor Class:  5/31/21   10.03    0.15    2.31    2.46    (0.31)   (0.43)   (0.74)   11.75    24.93    553    0.49g    0.36g    1.35    40 
   5/31/20   9.88    0.27    0.39    0.66    (0.24)   (0.27)   (0.51)   10.03    6.55    133    0.54g    0.42g    2.66    28 
   5/31/19   10.68    0.22    (0.22)   0.00    (0.30)   (0.50)   (0.80)   9.88    0.53    125    0.40f    0.28f    2.18    20 
   5/31/18   10.33    0.21    0.75    0.96    (0.30)   (0.31)   (0.61)   10.68    9.30    133    0.17e    0.05e    1.96    16 
   5/31/17   9.76    0.20    1.00    1.20    (0.23)   (0.40)   (0.63)   10.33    12.86    125    0.15e    0.04e    1.97    20 
Premier Class:  5/31/21   9.99    0.18    2.25    2.43    (0.29)   (0.43)   (0.72)   11.70    24.80    336,773    0.58g    0.45g    1.59    40 
   5/31/20   9.84    0.24    0.40    0.64    (0.22)   (0.27)   (0.49)   9.99    6.41    295,668    0.63g    0.51g    2.39    28 
   5/31/19   10.63    0.21    (0.22)   (0.01)   (0.28)   (0.50)   (0.78)   9.84    0.51    488,247    0.51f    0.39f    2.06    20 
   5/31/18   10.28    0.20    0.75    0.95    (0.29)   (0.31)   (0.60)   10.63    9.24    573,643    0.26e    0.15e    1.86    16 
   5/31/17   9.72    0.18    1.00    1.18    (0.22)   (0.40)   (0.62)   10.28    12.67    573,869    0.26e    0.15e    1.84    20 
Retirement Class:  5/31/21   13.14    0.22    2.97    3.19    (0.27)   (0.43)   (0.70)   15.63    24.64    1,217,409    0.68g    0.55g    1.52    40 
   5/31/20   12.79    0.32    0.51    0.83    (0.21)   (0.27)   (0.48)   13.14    6.40    1,103,642    0.73g    0.61g    2.39    28 
   5/31/19   13.57    0.26    (0.27)   (0.01)   (0.27)   (0.50)   (0.77)   12.79    0.33    1,131,196    0.61f    0.50f    1.95    20 
   5/31/18   12.97    0.24    0.94    1.18    (0.27)   (0.31)   (0.58)   13.57    9.12    1,220,041    0.36e    0.25e    1.75    16 
   5/31/17   12.10    0.22    1.26    1.48    (0.21)   (0.40)   (0.61)   12.97    12.60    1,164,361    0.36e    0.25e    1.74    20 

 

82 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 83
 
Financial highlights continued
   
TIAA-CREF 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
or year
ended		    value,
beginning
of period		   investment
income
(loss		)a   gain (loss
on total
investments		)

j 		  (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands		)  Gross
expenses		   Net
expenses		   investment
income
(loss		)  Portfolio
turnover
rate		 
LIFECYCLE 2030 FUND                                                      
Institutional Class:  5/31/21  $10.01   $0.19   $ 2.60   $ 2.79   $(0.32)  $(0.47)  $(0.79)  $12.01    28.49%  $ 4,216,718    0.43%g    0.30%g    1.69%   41%
   5/31/20   9.87    0.26    0.42    0.68    (0.23)   (0.31)   (0.54)   10.01    6.69    3,244,106    0.49g    0.37g    2.57    26 
   5/31/19   10.78    0.21    (0.29)   (0.08)   (0.30)   (0.53)   (0.83)   9.87    (0.25)   2,793,594    0.38f    0.26f    2.03    20 
   5/31/18   10.33    0.20    0.90    1.10    (0.31)   (0.34)   (0.65)   10.78    10.76    2,626,467    0.11e    0.00e    1.89    12 
   5/31/17   9.68    0.19    1.12    1.31    (0.23)   (0.43)   (0.66)   10.33    14.06    2,139,891    0.11e    0.00e    1.90    20 
Advisor Class:  5/31/21   10.01    0.18    2.60    2.78    (0.31)   (0.47)   (0.78)   12.01    28.41    520    0.50g    0.37g    1.65    41 
   5/31/20   9.87    0.20    0.47    0.67    (0.22)   (0.31)   (0.53)   10.01    6.65    317    0.56g    0.44g    2.02    26 
   5/31/19   10.78    0.21    (0.30)   (0.09)   (0.29)   (0.53)   (0.82)   9.87    (0.32)   117    0.43f    0.32f    2.01    20 
   5/31/18   10.34    0.20    0.89    1.09    (0.31)   (0.34)   (0.65)   10.78    10.63    124    0.15e    0.04e    1.88    12 
   5/31/17   9.68    0.19    1.12    1.31    (0.22)   (0.43)   (0.65)   10.34    14.15    109    0.13e    0.02e    1.92    20 
Premier Class:  5/31/21   9.96    0.17    2.59    2.76    (0.30)   (0.47)   (0.77)   11.95    28.35    369,690    0.58g    0.45g    1.52    41 
   5/31/20   9.82    0.23    0.42    0.65    (0.20)   (0.31)   (0.51)   9.96    6.52    310,511    0.64g    0.52g    2.26    26 
   5/31/19   10.73    0.20    (0.30)   (0.10)   (0.28)   (0.53)   (0.81)   9.82    (0.33)   505,271    0.52f    0.40f    1.90    20 
   5/31/18   10.28    0.19    0.89    1.08    (0.29)   (0.34)   (0.63)   10.73    10.56    585,462    0.26e    0.15e    1.76    12 
   5/31/17   9.64    0.17    1.11    1.28    (0.21)   (0.43)   (0.64)   10.28    13.85    562,680    0.26e    0.15e    1.76    20 
Retirement Class:  5/31/21   13.39    0.22    3.51    3.73    (0.29)   (0.47)   (0.76)   16.36    28.25    1,254,456    0.68g    0.55g    1.46    41 
   5/31/20   13.04    0.31    0.54    0.85    (0.19)   (0.31)   (0.50)   13.39    6.42    1,064,906    0.74g    0.62g    2.29    26 
   5/31/19   13.96    0.24    (0.37)   (0.13)   (0.26)   (0.53)   (0.79)   13.04    (0.54)   1,062,709    0.62f    0.50f    1.79    20 
   5/31/18   13.21    0.23    1.14    1.37    (0.28)   (0.34)   (0.62)   13.96    10.43    1,139,069    0.36e    0.25e    1.64    12 
   5/31/17   12.20    0.21    1.43    1.64    (0.20)   (0.43)   (0.63)   13.21    13.83    1,064,614    0.36e    0.25e    1.66    20 
LIFECYCLE 2035 FUND                                                        
Institutional Class:  5/31/21   10.07    0.19    2.97    3.16    (0.32)   (0.54)   (0.86)   12.37    32.19    4,468,950    0.44g    0.30g    1.63    44 
   5/31/20   9.97    0.25    0.44    0.69    (0.23)   (0.36)   (0.59)   10.07    6.67    3,369,098    0.50g    0.38g    2.48    23 
   5/31/19   10.99    0.20    (0.38)   (0.18)   (0.29)   (0.55)   (0.84)   9.97    (1.08)   2,855,455    0.38f    0.27f    1.87    17 
   5/31/18   10.44    0.19    1.04    1.23    (0.31)   (0.37)   (0.68)   10.99    11.98    2,729,789    0.11e    0.00e    1.76    13 
   5/31/17   9.68    0.18    1.24    1.42    (0.21)   (0.45)   (0.66)   10.44    15.36    2,238,549    0.11e    0.00e    1.79    21 
Advisor Class:  5/31/21   10.06    0.18    2.96    3.14    (0.31)   (0.54)   (0.85)   12.35    32.02    472    0.52g    0.39g    1.56    44 
   5/31/20   9.96    0.28    0.40    0.68    (0.22)   (0.36)   (0.58)   10.06    6.64    363    0.58g    0.46g    2.74    23 
   5/31/19   10.98    0.20    (0.38)   (0.18)   (0.29)   (0.55)   (0.84)   9.96    (1.11)   110    0.40f    0.29f    1.89    17 
   5/31/18   10.43    0.19    1.04    1.23    (0.31)   (0.37)   (0.68)   10.98    11.96    121    0.15e    0.04e    1.74    13 
   5/31/17   9.68    0.18    1.23    1.41    (0.21)   (0.45)   (0.66)   10.43    15.24    114    0.13e    0.02e    1.82    21 
Premier Class:  5/31/21   10.04    0.17    2.96    3.13    (0.30)   (0.54)   (0.84)   12.33    31.99    396,128    0.59g    0.45g    1.46    44 
   5/31/20   9.93    0.22    0.45    0.67    (0.20)   (0.36)   (0.56)   10.04    6.59    324,978    0.65g    0.53g    2.14    23 
   5/31/19   10.95    0.18    (0.38)   (0.20)   (0.27)   (0.55)   (0.82)   9.93    (1.25)   550,501    0.52f    0.41f    1.75    17 
   5/31/18   10.41    0.18    1.03    1.21    (0.30)   (0.37)   (0.67)   10.95    11.76    627,471    0.26e    0.15e    1.63    13 
   5/31/17   9.65    0.16    1.25    1.41    (0.20)   (0.45)   (0.65)   10.41    15.25    592,434    0.26e    0.15e    1.65    21 
Retirement Class:  5/31/21   13.78    0.22    4.09    4.31    (0.28)   (0.54)   (0.82)   17.27    31.86    1,157,175    0.69g    0.55g    1.40    44 
   5/31/20   13.44    0.31    0.58    0.89    (0.19)   (0.36)   (0.55)   13.78    6.48    978,160    0.75g    0.63g    2.21    23 
   5/31/19   14.50    0.23    (0.49)   (0.26)   (0.25)   (0.55)   (0.80)   13.44    (1.37)   980,659    0.63f    0.51f    1.63    17 
   5/31/18   13.58    0.22    1.35    1.57    (0.28)   (0.37)   (0.65)   14.50    11.67    1,038,703    0.36e    0.25e    1.51    13 
   5/31/17   12.40    0.20    1.61    1.81    (0.18)   (0.45)   (0.63)   13.58    15.10    970,096    0.36e    0.25e    1.55    21 

 

84 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 85
 
Financial highlights continued
   
TIAA-CREF 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
or year
ended		    value,
beginning
of period		   investment
income
(loss		)a   gain (loss
on total
investments		)

j 		  (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands		)  Gross
expenses		   Net
expenses		   investment
income
(loss		)  Portfolio
turnover
rate		 
LIFECYCLE 2040 FUND                                                      
Institutional Class:  5/31/21  $ 9.99   $0.18   $3.30   $3.48   $(0.33)  $(0.62)  $(0.95)  $12.52    35.87%  $5,311,332    0.44%g    0.29%g    1.54%   46%
   5/31/20   9.91    0.24    0.46    0.70    (0.20)   (0.42)   (0.62)   9.99    6.74    3,930,425    0.51g    0.39g    2.36    23 
   5/31/19   11.15    0.18    (0.47)   (0.29)   (0.29)   (0.66)   (0.95)   9.91    (2.09)   3,346,627    0.39f    0.27f    1.68    18 
   5/31/18   10.51    0.18    1.20    1.38    (0.32)   (0.42)   (0.74)   11.15    13.28    3,322,450    0.11e    0.00e    1.60    14 
   5/31/17   9.67    0.17    1.37    1.54    (0.19)   (0.51)   (0.70)   10.51    16.65    2,799,289    0.11e    0.00e    1.67    25 
Advisor Class:  5/31/21   9.98    0.17    3.30    3.47    (0.32)   (0.62)   (0.94)   12.51    35.84    305    0.51g    0.37g    1.48    46 
   5/31/20   9.90    0.23    0.47    0.70    (0.20)   (0.42)   (0.62)   9.98    6.70    204    0.57g    0.45g    2.27    23 
   5/31/19   11.14    0.18    (0.48)   (0.30)   (0.28)   (0.66)   (0.94)   9.90    (2.13)   130    0.41f    0.30f    1.70    18 
   5/31/18   10.50    0.18    1.20    1.38    (0.32)   (0.42)   (0.74)   11.14    13.27    117    0.14e    0.03e    1.62    14 
   5/31/17   9.67    0.17    1.36    1.53    (0.19)   (0.51)   (0.70)   10.50    16.52    110    0.13e    0.02e    1.70    25 
Premier Class:  5/31/21   9.95    0.15    3.31    3.46    (0.31)   (0.62)   (0.93)   12.48    35.81    441,951    0.59g    0.45g    1.36    46 
   5/31/20   9.87    0.20    0.48    0.68    (0.18)   (0.42)   (0.60)   9.95    6.55    372,625    0.66g    0.54g    1.97    23 
   5/31/19   11.11    0.16    (0.47)   (0.31)   (0.27)   (0.66)   (0.93)   9.87    (2.28)   678,439    0.53f    0.41f    1.56    18 
   5/31/18   10.47    0.16    1.20    1.36    (0.30)   (0.42)   (0.72)   11.11    13.17    781,576    0.26e    0.15e    1.48    14 
   5/31/17   9.65    0.15    1.36    1.51    (0.18)   (0.51)   (0.69)   10.47    16.30    752,059    0.26e    0.15e    1.52    25 
Retirement Class:  5/31/21   14.05    0.21    4.69    4.90    (0.29)   (0.62)   (0.91)   18.04    35.59    1,391,417    0.69g    0.55g    1.31    46 
   5/31/20   13.71    0.30    0.62    0.92    (0.16)   (0.42)   (0.58)   14.05    6.51    1,161,770    0.76g    0.64g    2.08    23 
   5/31/19   15.03    0.21    (0.62)   (0.41)   (0.25)   (0.66)   (0.91)   13.71    (2.37)   1,176,223    0.63f    0.52f    1.44    18 
   5/31/18   13.93    0.20    1.60    1.80    (0.28)   (0.42)   (0.70)   15.03    13.05    1,283,032    0.36e    0.25e    1.36    14 
   5/31/17   12.61    0.19    1.80    1.99    (0.16)   (0.51)   (0.67)   13.93    16.29    1,182,985    0.36e    0.25e    1.43    25 
LIFECYCLE 2045 FUND                                                        
Institutional Class:  5/31/21   11.98    0.20    4.45    4.65    (0.36)   (0.70)   (1.06)   15.57    39.80    3,557,269    0.44g    0.30g    1.44    46 
   5/31/20   11.89    0.28    0.55    0.83    (0.22)   (0.52)   (0.74)   11.98    6.60    2,441,105    0.52g    0.40g    2.25    19 
   5/31/19   12.88    0.19    (0.59)   (0.40)   (0.30)   (0.29)   (0.59)   11.89    (2.79)   1,915,136    0.40f    0.28f    1.55    13 
   5/31/18   11.73    0.19    1.44    1.63    (0.37)   (0.11)   (0.48)   12.88    13.96    1,756,138    0.11e    0.00e    1.52    11 
   5/31/17   10.42    0.18    1.55    1.73    (0.14)   (0.28)   (0.42)   11.73    17.07    1,337,130    0.12e    0.00e    1.61    23 
Advisor Class:  5/31/21   11.99    0.22    4.41    4.63    (0.35)   (0.70)   (1.05)   15.57    39.64    153    0.50g    0.35g    1.57    46 
   5/31/20   11.89    0.27    0.57    0.84    (0.22)   (0.52)   (0.74)   11.99    6.66    155    0.56g    0.44g    2.23    19 
   5/31/19   12.88    0.20    (0.60)   (0.40)   (0.30)   (0.29)   (0.59)   11.89    (2.79)   117    0.39f    0.28f    1.57    13 
   5/31/18   11.73    0.19    1.44    1.63    (0.37)   (0.11)   (0.48)   12.88    13.94    126    0.12e    0.01e    1.53    11 
   5/31/17   10.42    0.18    1.55    1.73    (0.14)   (0.28)   (0.42)   11.73    17.05    115    0.13e    0.01e    1.64    23 
Premier Class:  5/31/21   11.93    0.18    4.42    4.60    (0.34)   (0.70)   (1.04)   15.49    39.52    309,234    0.59g    0.45g    1.26    46 
   5/31/20   11.83    0.22    0.59    0.81    (0.19)   (0.52)   (0.71)   11.93    6.50    234,573    0.67g    0.55g    1.81    19 
   5/31/19   12.82    0.17    (0.59)   (0.42)   (0.28)   (0.29)   (0.57)   11.83    (2.96)   435,004    0.54f    0.42f    1.41    13 
   5/31/18   11.68    0.17    1.43    1.60    (0.35)   (0.11)   (0.46)   12.82    13.78    451,707    0.26e    0.15e    1.39    11 
   5/31/17   10.38    0.16    1.55    1.71    (0.13)   (0.28)   (0.41)   11.68    16.88    390,630    0.27e    0.15e    1.47    23 
Retirement Class:  5/31/21   11.89    0.17    4.39    4.56    (0.32)   (0.70)   (1.02)   15.43    39.38    779,894    0.69g    0.55g    1.21    46 
   5/31/20   11.80    0.24    0.56    0.80    (0.19)   (0.52)   (0.71)   11.89    6.40    621,730    0.77g    0.65g    1.98    19 
   5/31/19   12.78    0.16    (0.58)   (0.42)   (0.27)   (0.29)   (0.56)   11.80    (3.00)   599,598    0.64f    0.52f    1.30    13 
   5/31/18   11.65    0.16    1.42    1.58    (0.34)   (0.11)   (0.45)   12.78    13.62    609,733    0.36e    0.25e    1.27    11 
   5/31/17   10.35    0.15    1.55    1.70    (0.12)   (0.28)   (0.40)   11.65    16.82    532,695    0.37e    0.25e    1.38    23 

 

86 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 87
 
Financial highlights continued
   
TIAA-CREF 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  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)  expenses   expenses   (loss)  rate 
LIFECYCLE 2050 FUND
Institutional Class:  5/31/21  $12.05   $0.20   $  4.57   $  4.77   $(0.36)  $(0.63)  $(0.99)  $15.83    40.55%  $2,626,383    0.45%g   0.29%g   1.43%   43%
   5/31/20   11.94    0.28    0.56    0.84    (0.22)   (0.51)   (0.73)   12.05    6.70    1,730,080    0.52g   0.40g   2.24    18 
   5/31/19   12.95    0.19    (0.61)   (0.42)   (0.30)   (0.29)   (0.59)   11.94    (2.97)   1,267,704    0.40f   0.28f   1.52    12 
   5/31/18   11.77    0.19    1.47    1.66    (0.37)   (0.11)   (0.48)   12.95    14.16    1,131,187    0.12e   0.00e   1.49    10 
   5/31/17   10.42    0.17    1.59    1.76    (0.14)   (0.27)   (0.41)   11.77    17.29    819,879    0.12e   0.00e   1.59    22 
Advisor Class:  5/31/21   12.04    0.14    4.63    4.77    (0.36)   (0.63)   (0.99)   15.82    40.56    395    0.49g   0.33g   0.96    43 
   5/31/20   11.95    0.28    0.54    0.82    (0.22)   (0.51)   (0.73)   12.04    6.51    118    0.55g   0.42g   2.22    18 
   5/31/19   12.95    0.19    (0.60)   (0.41)   (0.30)   (0.29)   (0.59)   11.95    (2.90)   117    0.40f   0.28f   1.55    12 
   5/31/18   11.77    0.19    1.47    1.66    (0.37)   (0.11)   (0.48)   12.95    14.15    127    0.13e   0.01e   1.50    10 
   5/31/17   10.42    0.18    1.58    1.76    (0.14)   (0.27)   (0.41)   11.77    17.27    115    0.14e   0.01e   1.62    22 
Premier Class:  5/31/21   12.00    0.18    4.55    4.73    (0.34)   (0.63)   (0.97)   15.76    40.35    205,713    0.60g   0.44g   1.25    43 
   5/31/20   11.89    0.22    0.59    0.81    (0.19)   (0.51)   (0.70)   12.00    6.50    152,698    0.67g   0.55g   1.74    18 
   5/31/19   12.89    0.17    (0.60)   (0.43)   (0.28)   (0.29)   (0.57)   11.89    (3.07)   319,987    0.55f   0.43f   1.38    12 
   5/31/18   11.72    0.17    1.46    1.63    (0.35)   (0.11)   (0.46)   12.89    13.99    319,950    0.27e   0.15e   1.37    10 
   5/31/17   10.39    0.16    1.57    1.73    (0.13)   (0.27)   (0.40)   11.72    16.99    269,303    0.27e   0.15e   1.45    22 
Retirement Class:  5/31/21   11.94    0.17    4.53    4.70    (0.33)   (0.63)   (0.96)   15.68    40.27    549,874    0.70g   0.54g   1.19    43 
   5/31/20   11.85    0.24    0.55    0.79    (0.19)   (0.51)   (0.70)   11.94    6.33    424,505    0.77g   0.65g   1.95    18 
   5/31/19   12.85    0.16    (0.60)   (0.44)   (0.27)   (0.29)   (0.56)   11.85    (3.19)   399,296    0.65f   0.53f   1.27    12 
   5/31/18   11.68    0.16    1.46    1.62    (0.34)   (0.11)   (0.45)   12.85    13.93    396,498    0.37e   0.25e   1.25    10 
   5/31/17   10.35    0.15    1.57    1.72    (0.12)   (0.27)   (0.39)   11.68    16.95    338,305    0.37e   0.25e   1.35    22 
LIFECYCLE 2055 FUND
Institutional Class:  5/31/21   13.77    0.23    5.32    5.55    (0.41)   (0.53)   (0.94)   18.38    41.14    1,092,033    0.47g   0.29g   1.41    41 
   5/31/20   13.61    0.31    0.63    0.94    (0.25)   (0.53)   (0.78)   13.77    6.56    653,177    0.54g   0.40g   2.24    18 
   5/31/19   14.69    0.21    (0.70)   (0.49)   (0.33)   (0.26)   (0.59)   13.61    (3.04)   404,603    0.43f   0.29f   1.49    10 
   5/31/18   13.31    0.21    1.67    1.88    (0.39)   (0.11)   (0.50)   14.69    14.29    307,441    0.14e   0.00e   1.45    9 
   5/31/17   11.72    0.19    1.82    2.01    (0.17)   (0.25)   (0.42)   13.31    17.43    182,552    0.16e   0.00e   1.56    18 
Advisor Class:  5/31/21   13.77    0.23    5.30    5.53    (0.40)   (0.53)   (0.93)   18.37    41.04    162    0.50g   0.33g   1.40    41 
   5/31/20   13.61    0.31    0.63    0.94    (0.25)   (0.53)   (0.78)   13.77    6.56    121    0.56g   0.41g   2.20    18 
   5/31/19   14.69    0.22    (0.71)   (0.49)   (0.33)   (0.26)   (0.59)   13.61    (3.05)   119    0.42f   0.28f   1.52    10 
   5/31/18   13.31    0.21    1.67    1.88    (0.39)   (0.11)   (0.50)   14.69    14.28    128    0.15e   0.01e   1.47    9 
   5/31/17   11.72    0.20    1.80    2.00    (0.16)   (0.25)   (0.41)   13.31    17.41    116    0.18e   0.02e   1.59    18 
Premier Class:  5/31/21   13.72    0.20    5.29    5.49    (0.38)   (0.53)   (0.91)   18.30    40.88    93,442    0.60g   0.44g   1.24    41 
   5/31/20   13.56    0.24    0.67    0.91    (0.22)   (0.53)   (0.75)   13.72    6.37    62,637    0.69g   0.55g   1.68    18 
   5/31/19   14.63    0.19    (0.69)   (0.50)   (0.31)   (0.26)   (0.57)   13.56    (3.14)   135,603    0.57f   0.43f   1.35    10 
   5/31/18   13.26    0.19    1.67    1.86    (0.38)   (0.11)   (0.49)   14.63    14.13    118,351    0.29e   0.15e   1.35    9 
   5/31/17   11.68    0.17    1.81    1.98    (0.15)   (0.25)   (0.40)   13.26    17.27    84,446    0.31e   0.15e   1.42    18 
Retirement Class:  5/31/21   13.71    0.19    5.29    5.48    (0.37)   (0.53)   (0.90)   18.29    40.80    237,666    0.71g   0.54g   1.18    41 
   5/31/20   13.56    0.27    0.63    0.90    (0.22)   (0.53)   (0.75)   13.71    6.28    181,024    0.79g   0.65g   1.95    18 
   5/31/19   14.63    0.17    (0.68)   (0.51)   (0.30)   (0.26)   (0.56)   13.56    (3.24)   155,354    0.67f   0.53f   1.24    10 
   5/31/18   13.26    0.17    1.67    1.84    (0.36)   (0.11)   (0.47)   14.63    14.03    137,389    0.39e   0.25e   1.22    9 
   5/31/17   11.69    0.16    1.80    1.96    (0.14)   (0.25)   (0.39)   13.26    17.06    101,070    0.41e   0.25e   1.31    18 

 

88 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 89
 
Financial highlights concluded
   
TIAA-CREF 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  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)  expenses   expenses   (loss)  rate 
LIFECYCLE 2060 FUND
Institutional Class:  5/31/21   $11.35   $0.19   $ 4.45   $  4.64   $(0.32)  $(0.31)  $(0.63)  $15.36    41.61%  $313,864    0.49%g   0.29%g   1.39%   40%
   5/31/20   11.13    0.25    0.52    0.77    (0.21)   (0.34)   (0.55)   11.35    6.60    155,744    0.62g   0.39g   2.18    22 
   5/31/19   12.02    0.18    (0.59)   (0.41)   (0.27)   (0.21)   (0.48)   11.13    (3.17)   81,477    0.55f   0.29f   1.54    36 
   5/31/18   10.81    0.16    1.39    1.55    (0.29)   (0.05)   (0.34)   12.02    14.51    58,836    0.34e   0.00e   1.39    37 
   5/31/17   9.51    0.14    1.50    1.64    (0.14)   (0.20)   (0.34)   10.81    17.52    19,932    0.75e   0.00e   1.44    79 
Advisor Class:  5/31/21   11.35    0.17    4.46    4.63    (0.32)   (0.31)   (0.63)   15.35    41.50    241    0.54g   0.34g   1.25    40 
   5/31/20   11.13    0.25    0.51    0.76    (0.20)   (0.34)   (0.54)   11.35    6.60    117    0.66g   0.44g   2.16    22 
   5/31/19   12.02    0.17    (0.58)   (0.41)   (0.27)   (0.21)   (0.48)   11.13    (3.20)   115    0.55f   0.30f   1.51    36 
   5/31/18   10.81    0.16    1.39    1.55    (0.29)   (0.05)   (0.34)   12.02    14.47    133    0.38e   0.04e   1.41    37 
   5/31/17   9.51    0.15    1.48    1.63    (0.13)   (0.20)   (0.33)   10.81    17.50    119    0.77e   0.03e   1.53    79 
Premier Class:  5/31/21   11.33    0.17    4.44    4.61    (0.30)   (0.31)   (0.61)   15.33    41.44    18,792    0.64g   0.44g   1.25    40 
   5/31/20   11.11    0.19    0.56    0.75    (0.19)   (0.34)   (0.53)   11.33    6.48    10,846    0.77g   0.55g   1.68    22 
   5/31/19   12.00    0.16    (0.59)   (0.43)   (0.25)   (0.21)   (0.46)   11.11    (3.31)   18,553    0.70f   0.44f   1.39    36 
   5/31/18   10.80    0.15    1.38    1.53    (0.28)   (0.05)   (0.33)   12.00    14.32    13,028    0.49e   0.15e   1.30    37 
   5/31/17   9.50    0.13    1.49    1.62    (0.12)   (0.20)   (0.32)   10.80    17.41    5,826    0.90e   0.15e   1.32    79 
Retirement Class:  5/31/21   11.31    0.16    4.43    4.59    (0.29)   (0.31)   (0.60)   15.30    41.31    63,880    0.74g   0.54g   1.16    40 
   5/31/20   11.10    0.22    0.51    0.73    (0.18)   (0.34)   (0.52)   11.31    6.32    38,705    0.87g   0.65g   1.91    22 
   5/31/19   11.99    0.15    (0.59)   (0.44)   (0.24)   (0.21)   (0.45)   11.10    (3.41)   27,045    0.79f   0.53f   1.27    36 
   5/31/18   10.79    0.13    1.39    1.52    (0.27)   (0.05)   (0.32)   11.99    14.24    24,314    0.59e   0.25e   1.07    37 
   5/31/17   9.50    0.12    1.49    1.61    (0.12)   (0.20)   (0.32)   10.79    17.23    10,908    1.00e   0.25e   1.20    79 
LIFECYCLE 2065 FUND
Institutional Class:  5/31/21§  10.00    0.14    2.60    2.74    (0.26)   (0.03)   (0.29)   12.45    27.76b   4,818    4.73c,g   0.26c,g   1.81c   49b
Advisor Class:  5/31/21§  10.00    0.13    2.60    2.73    (0.26)   (0.03)   (0.29)   12.44    27.62b   622    5.07c,g   0.41c,g   1.70c   49b
Premier Class:  5/31/21§  10.00    0.12    2.60    2.72    (0.26)   (0.03)   (0.29)   12.43    27.51b   726    5.20c,g   0.41c,g   1.60c   49b
Retirement Class:  5/31/21§  10.00    0.12    2.58    2.70    (0.25)   (0.03)   (0.28)   12.42    27.38b   802    5.33c,g   0.51c,g   1.54c   49b

 

§ The Fund commenced operations on September 30, 2020.
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.
f From June 1, 2018 through September 30, 2018, the Fund’s expenses do not include the expenses of the Underlying Funds. Beginning October 1, 2018, the Lifecycle Funds expenses include the expenses of the Underlying Funds, excluding the expenses of the Real Property Fund.
g The Fund’s expenses include the expenses of the Underlying Funds, excluding the expenses of the Real Property Fund.
j Short-term and long-term capital gain distributions received from the underlying Funds are presented in net realized and unrealized gain (loss) on total investments for all periods presented.

90 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 91
 

Notes to financial statements

 

TIAA-CREF Lifecycle Funds

 

Note 1—organization

 

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 U.S. Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The Lifecycle 2065 Fund commenced operations on September 30, 2020.

 

Teachers Advisors, LLC (“Advisors”), a wholly owned indirect subsidiary of Teachers Insurance and Annuity Association of America (“TIAA”), is registered with the SEC as an investment adviser and provides investment management services for the Funds.

 

The Funds offer their shares, without a sales load, through their principal underwriter, Nuveen Securities, LLC (“Nuveen Securities”), which is a wholly owned indirect subsidiary of TIAA.

 

Each Fund is a “fund of funds” that diversifies its assets by investing in Class W shares of other funds of the Trust and potentially other investment pools or investment products. The Funds offer up to five share classes, although any one Fund may not necessarily offer all five classes. The Funds may offer Institutional Class, Advisor Class, Premier Class, Retirement Class and Retail Class shares. Each class differs by the allocation of class-specific expenses and voting rights in matters affecting a single class.

 

Note 2—significant accounting policies

 

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.

 

Investments and investment income: Securities transactions are accounted for as of the trade date for financial reporting purposes. Interest income is recorded on an accrual basis and includes accretion of discounts and amortization of premiums. Dividend income is recorded on the ex-dividend date. Realized gains and losses on securities transactions are based upon the specific identification method. Distributions received on securities that represent a return of capital or capital gains are recorded as a reduction of cost of investments and/or as a realized gain. The

 

92 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Funds estimate the components of distributions received that may be considered return of capital distributions or capital gain distributions.

 

Multiclass operations and allocations: 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 are recorded on the ex-dividend date. The amount, character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

 

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 separately 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.

 

Indemnification: Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

Other matters: The outbreak of the novel coronavirus (“COVID-19”) and subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the calendar quarter ended March 31, 2020. The worldwide spread of COVID-19 has created significant uncertainty in the global economy. The duration and extent of COVID-19 over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Funds’ normal course of business, results of operations, investments, and cash flows will depend on future developments, which are highly uncertain and difficult to predict. Management continues to monitor and evaluate this situation.

 

New rule issuance: In December 2020, the SEC voted to adopt a new rule governing fund valuation practices. New Rule 2a-5 under the 1940 Act establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 93
 

Notes to financial statements

 

market quotations are “readily available” for purposes of Section 2(a)(41) of the 1940 Act, which requires a fund to fair value a security when market quotations are not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth the recordkeeping requirements associated with fair value determinations. Finally, the SEC is rescinding previously issued guidance on related issues, including the role of a board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, with a compliance date of September 8, 2022. A fund may voluntarily comply with the rules after the effective date, and in advance of the compliance date, under certain conditions. Management is currently assessing the impact of these provisions on the Funds’ financial statements.

 

Note 3—valuation of investments

 

The Funds’ investments in securities are recorded at their estimated fair value utilizing valuation methods approved by the Board. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. U.S. GAAP establishes the three-tier hierarchy which is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect management’s assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.

 

• Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
• Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.).
• Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
     

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

 

Investments in registered investment companies: Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.

 

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

 

94 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

The following table summarizes the market value of the Funds’ investments as of May 31, 2021, based on the inputs used to value them:

 

Fund  Level 1   Level 2   Level 3   Fair value
using practical
expedienta		   Total 
Lifecycle Retirement Income                         
Registered investment companies  $585,677,899   $—   $—   $—   $585,677,899 
TIAA-CREF Real Property Fund LP   —    —    —    22,742,229    22,742,229 
Total  $585,677,899   $—   $—   $22,742,229   $608,420,128 
Lifecycle 2010                         
Registered investment companies  $1,237,126,788   $—   $—   $—   $1,237,126,788 
TIAA-CREF Real Property Fund LP   —    —    —    43,915,568    43,915,568 
Total  $1,237,126,788   $—   $—   $43,915,568   $1,281,042,356 
Lifecycle 2015                         
Registered investment companies  $1,763,910,394   $—   $—   $—   $1,763,910,394 
TIAA-CREF Real Property Fund LP   —    —    —    68,560,246    68,560,246 
Total  $1,763,910,394   $—   $—   $68,560,246   $1,832,470,640 
Lifecycle 2020                         
Registered investment companies  $3,806,487,921   $—   $—   $—   $3,806,487,921 
TIAA-CREF Real Property Fund LP   —    —    —    147,859,298    147,859,298 
Total  $3,806,487,921   $—   $—   $147,859,298   $3,954,347,219 
Lifecycle 2025                         
Registered investment companies  $5,252,946,354   $—   $—   $—   $5,252,946,354 
TIAA-CREF Real Property Fund LP   —    —    —    203,617,781    203,617,781 
Total  $5,252,946,354   $—   $—   $203,617,781   $5,456,564,135 
Lifecycle 2030                         
Registered investment companies  $5,612,261,423   $—   $—   $—   $5,612,261,423 
TIAA-CREF Real Property Fund LP   —    —    —    217,338,488    217,338,488 
Total  $5,612,261,423   $—   $—   $217,338,488   $5,829,599,911 
Lifecycle 2035                         
Registered investment companies  $5,786,711,304   $—   $—   $—   $5,786,711,304 
TIAA-CREF Real Property Fund LP   —    —    —    223,986,695    223,986,695 
Total  $5,786,711,304   $—   $—   $223,986,695   $6,010,697,999 
Lifecycle 2040                         
Registered investment companies  $6,866,320,006   $—   $—   $—   $6,866,320,006 
TIAA-CREF Real Property Fund LP   —    —    —    265,536,087    265,536,087 
Total  $6,866,320,006   $—   $—   $265,536,087   $7,131,856,093 
Lifecycle 2045                         
Registered investment companies  $4,463,161,074   $—   $—   $—   $4,463,161,074 
TIAA-CREF Real Property Fund LP   —    —    —    172,347,468    172,347,468 
Total  $4,463,161,074   $—   $—   $172,347,468   $4,635,508,542 

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 95
 

Notes to financial statements

 

Fund  Level 1   Level 2   Level 3   Fair value
using practical
expedienta		   Total 
Lifecycle 2050                    
Registered investment companies  $3,248,384,786   $—   $—   $—   $3,248,384,786 
TIAA-CREF Real Property Fund LP   —    —    —    125,376,563    125,376,563 
Total  $3,248,384,786   $—   $—   $125,376,563   $3,373,761,349 
Lifecycle 2055                         
Registered investment companies  $1,366,548,241   $—   $—   $—   $1,366,548,241 
TIAA-CREF Real Property Fund LP   —    —    —    52,724,015    52,724,015 
Total  $1,366,548,241   $—   $—   $52,724,015   $1,419,272,256 
Lifecycle 2060                         
Registered investment companies  $380,448,542   $—   $—   $—   $380,448,542 
TIAA-CREF Real Property Fund LP   —    —    —    14,655,401    14,655,401 
Total  $380,448,542   $—   $—   $14,655,401   $395,103,943 
Lifecycle 2065                         
Registered investment companies  $6,705,414   $—   $—   $—   $6,705,414 
TIAA-CREF Real Property Fund LP   —    —    —    259,395    259,395 
Total  $6,705,414   $—   $—   $259,395   $6,964,809 

 

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 4—investments

 

Restricted securities: Restricted securities held by the Funds, if any, may not be sold except in exempt transactions or in a public offering registered under the Securities Act of 1933, as amended. The risk of investing in such securities is generally greater than the risk of investing in securities that are widely held and publicly traded.

 

Real Property Fund (“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 SEC. 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. As such, this investment has been designated as restricted and the value is reflected in the portfolio of investments.

 

96 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Purchases and sales: Purchases and sales of securities (other than short-term instruments) for all of the Funds for the year ended May 31, 2021 were as follows (dollar amounts are in thousands):

 

Fund  Non-U.S.
government
purchases		   Non-U.S.
government
sales		 
Lifecycle Retirement Income       $237,718       $234,254 
Lifecycle 2010   471,349    481,224 
Lifecycle 2015   647,095    732,878 
Lifecycle 2020   1,448,312    1,612,727 
Lifecycle 2025   2,108,546    2,030,000 
Lifecycle 2030   2,365,113    2,148,901 
Lifecycle 2035   2,545,957    2,349,567 
Lifecycle 2040   3,075,658    2,915,145 
Lifecycle 2045   2,102,355    1,805,021 
Lifecycle 2050   1,530,226    1,221,865 
Lifecycle 2055   686,466    475,147 
Lifecycle 2060   228,849    116,324 
Lifecycle 2065   8,515    2,570 

 

Note 5—Income tax and other tax matters

 

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.

 

For the year ended May 31 2021, permanent book and and tax differences resulting primarily from the reclassification of short-term capital gain distributions received from underlying funds from realized gain (loss) to ordinary income, dividend reclassifications, investments in partnerships, the utilization of tax equalization credits, and nondeductible 12b-1 fees were identified and reclassified among the components of certain Funds’ net assets. Net investment income and net realized gains (losses), as disclosed on the Statements of operations, and net assets were not affected by these reclassifications.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 97
 

Notes to financial statements

 

Net unrealized appreciation (depreciation): At May 31, 2021, net unrealized appreciation (depreciation) based on the aggregate cost of all investments for federal income tax purposes, consisting of gross unrealized appreciation and gross unrealized depreciation, was as follows (dollar amounts are in thousands):

 

Fund  Tax
cost		   Gross
unrealized
appreciation		   Gross
unrealized
(depreciation		)  Net unrealized
appreciation
(depreciation		)
Lifecycle Retirement Income  $528,284       $87,876            $(7,740)       $80,136 
Lifecycle 2010   1,089,582    210,453    (18,993)   191,460 
Lifecycle 2015   1,619,789    237,815    (25,134)   212,681 
Lifecycle 2020   3,439,779    563,248    (48,680)   514,568 
Lifecycle 2025   4,653,111    857,506    (54,052)   803,454 
Lifecycle 2030   4,862,434    1,015,278    (48,111)   967,167 
Lifecycle 2035   4,894,991    1,161,229    (45,522)   1,115,707 
Lifecycle 2040   5,663,814    1,517,964    (49,922)   1,468,042 
Lifecycle 2045   3,551,383    1,116,865    (32,739)   1,084,126 
Lifecycle 2050   2,596,313    799,505    (22,057)   777,448 
Lifecycle 2055   1,123,107    305,250    (9,084)   296,166 
Lifecycle 2060   325,591    73,155    (3,642)   69,513 
Lifecycle 2065   5,934    1,057    (27)   1,030 

 

For purposes of this disclosure, tax cost generally includes the cost of portfolio investments as well as up-front fees or premiums exchanged on derivatives and any amounts unrealized for income statement reporting but realized in income and/or capital gains for tax reporting.

 

Distributions to shareholders: The tax character of distributions paid to shareholders during the years ended May 31, 2021 and May 31, 2020 was as follows:

 

   5/31/2021   5/31/2020 
Fund  Ordinary
income		   Long-term
capital gains		   Total   Ordinary
income		   Long-term
capital gains		   Total 
Lifecycle Retirement Income  $14,302,738   $17,467,353   $31,770,091   $12,946,594   $7,758,705   $20,705,299 
Lifecycle 2010   34,604,447    59,479,547    94,083,994    33,381,576    21,281,267    54,662,843 
Lifecycle 2015   48,522,263    52,307,744    100,830,007    43,063,258    29,927,489    72,990,747 
Lifecycle 2020   108,863,757    125,021,838    233,885,595    82,302,049    76,912,521    159,214,570 
Lifecycle 2025   134,425,131    169,535,428    303,960,559    100,377,682    111,559,621    211,937,303 
Lifecycle 2030   143,026,796    191,592,719    334,619,515    90,932,206    130,723,905    221,656,111 
Lifecycle 2035   142,574,750    224,746,157    367,320,907    91,038,059    152,423,405    243,461,464 
Lifecycle 2040   169,558,271    305,117,437    474,675,708    94,348,532    205,687,170    300,035,702 
Lifecycle 2045   108,458,841    182,259,203    290,718,044    55,442,955    130,773,793    186,216,748 
Lifecycle 2050   80,540,450    112,609,034    193,149,484    37,900,523    88,295,156    126,195,679 
Lifecycle 2055   34,830,539    30,654,989    65,485,528    13,951,395    29,619,848    43,571,243 
Lifecycle 2060   8,321,478    5,059,592    13,381,070    2,877,499    4,796,501    7,674,000 
Lifecycle 2065   144,492    —    144,492    —    —    — 

 

98 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Components of accumulated earnings: As of May 31, 2021, the components of accumulated earnings on a tax basis were as follows:

 

Fund  Undistributed
ordinary
income		   Undistributed
long-term
capital gains		   Unrealized
appreciation
(depreciation		)  Total 
Lifecycle Retirement Income       $3,190,790     $19,684,128    $80,136,533    $103,011,451 
Lifecycle 2010   11,030,070    50,508,306    191,460,055    252,998,431 
Lifecycle 2015   13,970,463    61,355,006    212,681,207    288,006,676 
Lifecycle 2020   30,993,450    149,533,998    514,568,202    695,095,650 
Lifecycle 2025   34,147,206    220,364,052    803,453,499    1,057,964,757 
Lifecycle 2030   30,295,424    254,793,850    967,166,357    1,252,255,631 
Lifecycle 2035   28,013,938    289,630,465    1,115,707,392    1,433,351,795 
Lifecycle 2040   29,543,947    377,545,507    1,468,042,301    1,875,131,755 
Lifecycle 2045   16,624,450    266,385,955    1,084,125,616    1,367,136,021 
Lifecycle 2050   9,860,457    182,327,947    777,448,487    969,636,891 
Lifecycle 2055   3,574,927    66,038,712    296,165,541    365,779,180 
Lifecycle 2060   610,032    14,050,444    69,512,573    84,173,049 
Lifecycle 2065   22,170    189,861    1,030,474    1,242,505 

 

The difference between book basis and tax basis net investment income, net realized gains and losses, and unrealized appreciation and depreciation is attributable primarily to the tax deferral of losses on wash sales.

 

Note 6—investment adviser and other transactions with affiliates

 

Under the terms of its Investment Management Agreement, Advisors is entitled to a fee that is made up of two components, which are added together to create the total investment management fee. The first component, the asset allocation fee rate, is an annual rate of 0.10% of the average daily net assets of each Fund. The second component, the Underlying Funds fee rate, is calculated as follows: for each Underlying Fund of the Trust in which a Fund is invested, the effective Underlying Fund’s annual investment management fee rate, as determined pursuant to its investment management agreement, net of any fee waivers or reimbursements applicable to the Underlying Fund (excluding the Class W shares investment management fee waiver and/or reimbursement) in proportion to the percentage of the Fund’s net assets invested in the Underlying Fund, applied to the average daily net assets of the Fund. Advisors has contractually agreed to waive in full the asset allocation fee rate component of the management fee on each Fund. This waiver will remain in effect through September 30, 2023, unless changed with approval of the Board. In addition, Advisors has voluntarily agreed to waive certain amounts of the Underlying Funds fee rate portion of each Fund’s management fee through September 30, 2021. As of May 31, 2021, Advisors received from the Funds the following effective annual rate as a percentage of average daily net assets of each Fund:

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 99
 

Notes to financial statements

 

FundInvestment management
fee—effective rate		 
Lifecycle Retirement Income   0.29%
Lifecycle 2010   0.29 
Lifecycle 2015   0.30 
Lifecycle 2020   0.30 
Lifecycle 2025   0.31 
Lifecycle 2030   0.31 
Lifecycle 2035   0.32 
Lifecycle 2040   0.32 
Lifecycle 2045   0.32 
Lifecycle 2050   0.32 
Lifecycle 2055   0.32 
Lifecycle 2060   0.32 
Lifecycle 2065   0.30 

 

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 the distribution Rule 12b-1 plan, the Retirement Class of each Fund and the Retail Class of the Retirement Income Fund compensated Nuveen Securities 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, Nuveen Securities 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, 2021. 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 Nuveen Securities 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, extraordinary expenses and the management fees and certain other expenses originally attributable to Class W shares of the affiliated TIAA-CREF Funds) exceeds 0.00% of average daily net assets for the Institutional

 

100 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

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, 2021, unless changed with approval of the Board.

 

Effective May 1, 2021, Advisors has agreed to implement a voluntary waiver reducing the Lifecycle Retirement Income Fund expense cap for the Retirement Class to 0.235%. Prior to May 1, 2021, the expense cap was 0.25%. The waiver is voluntary in nature and can be discontinued at any time without prior notice to shareholders upon Board approval.

 

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 year ended May 31, 2021, the Funds did not engage in security transactions with affiliated entities.

 

The following is the percentage of the Funds’ shares owned by TIAA and its registered separate account (“TIAA Access”) as of May 31, 2021:

 

Fund  TIAA   TIAA Access   Total 
Lifecycle Retirement Income   —%   10%   10%
Lifecycle 2010   —    10    10 
Lifecycle 2015   —    11    11 
Lifecycle 2020   —    13    13 
Lifecycle 2025   —    13    13 
Lifecycle 2030   —    13    13 
Lifecycle 2035   —    13    13 
Lifecycle 2040   —    13    13 
Lifecycle 2045   —    14    14 
Lifecycle 2050   —    18    18 
Lifecycle 2055   —    14    14 
Lifecycle 2060   —    14    14 
Lifecycle 2065   89    2    91 

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 101
 

Notes to financial statements

 

Investments in other investment companies advised by Advisors and Nuveen Fund Advisors, LLC are deemed to be affiliated investments. The Funds invest their assets in the RPF, Class W shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds. Information regarding transactions with affiliated companies is as follows (dollar amounts are in thousands^):

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle Retirement Income Fund                                                    
Nuveen Funds:                                   
Dividend Value  $9,522   $13,946   $5,583   $(415)             $6,975   $335   $24,445 
International Growth   —    15,316    2,677    2    1,782    —    14,423 
Santa Barbara Dividend Growth   —    22,768    4,133    737    2,839    164    21,633 
TIAA-CREF Funds:                                   
Core Bond   110,523    37,775    20,781    2,000    (1,481)   2,859    125,912 
Core Plus Bond   69,398    20,487    11,655    552    695    2,084    78,920 
Emerging Markets Debt   10,262    4,710    3,216    (30)   1,293    588    13,019 
Emerging Markets Equity   10,671    2,061    7,716    1,978    2,475    154    8,768 
Growth & Income   28,967    5,501    20,207    5,148    3,799    388    21,831 
High-Yield   12,155    3,698    4,610    (65)   937    675    12,115 
Inflation-Linked Bond   53,284    14,258    9,742    27    3,060    916    60,887 
International Bond   11,125    3,645    2,100    110    13    276    12,684 
International Equity   12,941    8,955    8,297    477    6,013    288    20,089 
International Opportunities   12,090    4,922    7,081    1,019    3,747    145    14,415 
Large-Cap Growth   29,241    15,269    23,562    12,015    (2,590)   197    23,666 
Large-Cap Growth Index   —    24,299    3,445    340    2,644    150    23,586 
Large-Cap Value   21,828    11,629    17,593    1,235    7,331    532    24,430 
Quant International Equity   14,780    497    16,573    872    424    328    — 
Quant International Small-Cap Equity   7,547    1,400    2,620    (66)   3,182    225    9,443 
Quant Large-Cap Growth   25,435    597    28,908    13,828    (9,234)   182    — 
Quant Large-Cap Value   9,539    2,844    12,854    1,702    (818)   171    — 
Quant Small-Cap Equity   5,999    2,127    4,555    633    2,677    65    6,881 
Quant Small/Mid-Cap Equity   4,895    2,570    2,935    381    3,050    76    7,881 
Short-Term Bond   53,210    16,627    9,701    37    514    1,049    60,650 
TIAA-CREF Real Property Fund LPa   24,147    1,817    3,710    (107)   595    643    22,742 
   $537,559   $237,718   $234,254   $42,410   $39,922   $12,490   $608,420 

 

102 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle 2010 Fund                                   
Nuveen Funds:                                   
Dividend Value  $20,290   $30,749   $14,877   $(1,088)  $15,653   $713   $50,727 
International Growth   —    31,950    5,767    50    3,646    —    29,879 
Santa Barbara Dividend Growth   —    48,981    10,670    1,597    6,144    349    44,845 
TIAA-CREF Funds:                                   
Core Bond   235,308    74,796    41,478    4,223    (3,250)   6,083    265,132 
Core Plus Bond   147,990    39,247    22,377    1,136    1,426    4,428    166,250 
Emerging Markets Debt   22,021    9,798    7,038    (84)   2,721    1,245    27,418 
Emerging Markets Equity   22,816    4,895    17,470    5,120    4,313    321    18,212 
Growth & Income   61,891    7,389    40,347    16,531    2,661    819    45,255 
High-Yield   25,788    8,225    10,365    (33)   1,877    1,437    25,492 
Inflation-Linked Bond   112,843    28,057    19,257    124    6,473    1,939    128,240 
International Bond   23,674    7,704    4,683    226    26    580    26,717 
International Equity   27,694    17,622    17,297    1,614    11,967    602    41,600 
International Opportunities   25,808    9,188    14,632    2,622    7,387    302    29,784 
Large-Cap Growth   62,625    20,892    40,812    31,590    (11,318)   410    48,995 
Large-Cap Growth Index   —    52,598    9,714    775    5,722    313    48,854 
Large-Cap Value   46,663    14,158    29,140    5,323    13,648    1,113    50,652 
Quant International Equity   31,592    1,419    35,771    3,095    (335)   679    — 
Quant International Small-Cap Equity   16,166    2,826    6,004    (119)   6,702    470    19,571 
Quant Large-Cap Growth   54,477    1,638    62,366    35,259    (25,450)   377    — 
Quant Large-Cap Value   20,405    6,251    27,674    5,039    (3,166)   353    — 
Quant Small-Cap Equity   12,822    2,106    7,917    1,981    5,277    135    14,269 
Quant Small/Mid-Cap Equity   10,463    5,561    6,909    1,059    6,350    158    16,357 
Short-Term Bond    112,768          42,851        17,821      72               1,090       2,310      138,878 
TIAA-CREF Real Property Fund LPa   51,387    2,448    10,838    (235)   1,153    1,336    43,915 
   $1,145,491   $471,349   $481,224   $115,877   $60,717   $26,472   $1,281,042 

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 103
 

Notes to financial statements

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle 2015 Fund                                                                     
Nuveen Funds:                                   
Dividend Value  $34,333   $47,285   $23,350   $(1,655)  $25,403   $1,164   $82,016 
International Growth   —    49,585    7,441    83    5,982    —    48,209 
Santa Barbara Dividend Growth   —    79,154    17,125    2,562    10,042    562    72,636 
TIAA-CREF Funds:                                   
Core Bond   336,764    99,293    59,929    6,028    (4,523)   8,570    371,267 
Core Plus Bond   211,612    52,753    33,518    1,660    2,043    6,245    232,885 
Emerging Markets Debt   31,270    12,510    8,972    (197)   3,941    1,779    38,552 
Emerging Markets Equity   38,032    6,033    27,683    5,383    10,148    532    29,494 
Growth & Income   103,931    7,977    65,497    19,591    12,014    1,356    73,262 
High-Yield   36,786    10,265    13,927    (1,369)   3,977    2,033    35,732 
Inflation-Linked Bond   132,624    33,958    21,118    82    7,658    2,294    153,204 
International Bond   33,890    10,573    7,070    314    48    827    37,427 
International Equity   46,175    25,521    26,799    493    21,764    996    67,154 
International Opportunities   43,715    9,677    20,962    4,589    11,988    501    48,032 
Large-Cap Growth   104,374    29,030    64,335    41,217    (7,868)   679    79,258 
Large-Cap Growth Index   —    85,029    15,694    1,299    9,342    518    79,104 
Large-Cap Value   77,891    20,316    47,211    2,833    28,167    1,843    81,996 
Quant International Equity   52,974    1,094    58,645    (2,164)   6,741    1,127    — 
Quant International Small-Cap Equity   27,053    2,902    9,134    (301)   11,109    776    31,629 
Quant Large-Cap Growth   91,264    307    101,947    40,341    (24,048)   628    — 
Quant Large-Cap Value   34,239    8,574    44,503    (1,510)   4,617    586    — 
Quant Small-Cap Equity   21,458    2,472    12,768    1,306    10,623    223    23,091 
Quant Small/Mid-Cap Equity   17,511    7,981    10,840    1,665    10,473    262    26,513 
Short-Term Bond   132,365    41,672    22,854    84    1,277    2,620    152,450 
TIAA-CREF Real Property Fund LPa   75,515    3,134    11,556    (245)   1,712    1,991    68,560 
   $1,683,776   $647,095   $732,878   $122,089   $162,630   $38,112   $1,832,471 

 

104 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle 2020 Fund                                                                 
Nuveen Funds:                                   
Dividend Value  $81,541   $111,110   $51,301   $(3,246)  $60,630   $2,803   $198,734 
International Growth   —    120,025    17,672    108    14,515    —    116,976 
Santa Barbara Dividend Growth   —    186,381    35,724    6,100    24,353    1,349    176,233 
TIAA-CREF Funds:                                   
Core Bond   691,856    223,481    124,547    12,003    (9,114)   17,916    780,211 
Core Plus Bond   435,050    119,988    69,552    3,031    4,550    13,062    489,542 
Emerging Markets Debt   64,583    26,684    17,596    (364)   8,180    3,744    81,487 
Emerging Markets Equity   90,128    12,918    62,766    13,269    23,912    1,296    71,568 
Growth & Income   246,974    16,078    149,847    45,358    30,654    3,271    177,622 
High-Yield   76,323    22,110    28,817    (2,546)   8,009    4,264    75,079 
Inflation-Linked Bond   209,767    60,413    31,432    47    12,437    3,734    251,232 
International Bond   69,674    22,576    13,688    605    114    1,754    78,585 
International Equity   109,469    59,577    59,564    1,689    51,806    2,429    162,977 
International Opportunities   104,438    22,082    47,399    10,558    29,397    1,222    116,694 
Large-Cap Growth   248,744    67,421    148,126    97,432    (17,098)   1,656    191,889 
Large-Cap Growth Index   —    202,995    34,993    3,182    22,643    1,265    191,699 
Large-Cap Value   185,302    44,719    105,848    6,814    67,905    4,492    198,892 
Quant International Equity   126,167    2,002    139,055    (3,226)   14,112    2,738    — 
Quant International Small-Cap Equity   64,483    5,836    19,658    (500)   26,544    1,888    76,705 
Quant Large-Cap Growth   216,894    549    241,953    96,391    (57,481)   1,527    — 
Quant Large-Cap Value   81,507    18,490    104,072    (2,596)   10,110    1,422    — 
Quant Small-Cap Equity   50,991    4,847    28,637    2,837    25,945    543    55,983 
Quant Small/Mid-Cap Equity   41,424    17,916    23,753    3,964    25,366    640    64,241 
Short-Term Bond   209,527    73,272    34,673    124    2,043    4,244    250,139 
TIAA-CREF Real Property Fund LPa   159,887    6,842    22,054    (598)   3,782    4,275    147,859 
   $3,564,729   $1,448,312   $1,612,727   $290,436   $383,314   $81,534   $3,954,347 

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 105
 

Notes to financial statements

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle 2025 Fund                                                              
Nuveen Funds:                                   
Dividend Value  $123,692   $171,370   $61,892   $(4,031)  $94,170   $4,391   $323,309 
International Growth   —    185,108    18,486    139    22,869    —    189,630 
Santa Barbara Dividend Growth   —    289,688    42,673    8,761    39,396    2,149    287,516 
TIAA-CREF Funds:                                   
Core Bond   762,951    312,487    102,451    14,514    (12,288)   20,689    959,634 
Core Plus Bond   480,090    170,723    52,168    3,832    4,183    15,120    602,554 
Emerging Markets Debt   71,335    39,115    17,718    (382)   9,366    4,374    101,716 
Emerging Markets Equity   136,689    20,508    88,498    18,928    37,983    2,015    116,447 
Growth & Income   374,810    25,911    212,191    61,298    56,485    5,059    288,270 
High-Yield   85,859    29,865    29,731    (2,540)   8,853    5,014    92,306 
Inflation-Linked Bond   176,753    67,946    18,262    (9)   11,075    3,306    237,503 
International Bond   76,920    32,231    12,366    699    22    2,035    96,698 
International Equity   165,117    89,698    72,449    832    82,083    3,784    265,281 
International Opportunities   159,853    33,223    62,148    12,477    49,831    1,899    189,536 
Large-Cap Growth   376,880    100,557    201,289    142,137    (18,374)   2,577    312,012 
Large-Cap Growth Index   —    312,385    38,376    4,496    36,170    1,969    311,361 
Large-Cap Value   281,002    65,049    140,289    5,706    110,988    6,988    322,456 
Quant International Equity   191,034    2,708    210,299    (3,760)   20,317    4,242    — 
Quant International Small-Cap Equity   97,628    9,793    23,092    (920)   41,377    2,936    124,786 
Quant Large-Cap Growth   329,052    523    366,606    143,159    (83,781)   2,371    — 
Quant Large-Cap Value   123,316    27,192    156,887    (3,354)   15,053    2,200    — 
Quant Small-Cap Equity   77,084    6,716    37,571    2,200    42,552    844    90,981 
Quant Small/Mid-Cap Equity   62,792    27,885    30,927    4,848    40,803    997    104,348 
Short-Term Bond   176,641    78,602    20,339    124    1,710    3,762    236,602 
TIAA-CREF Real Property Fund LPa   203,176    9,263    13,292    (556)   5,027    5,606    203,618 
   $4,532,674   $2,108,546   $2,030,000   $408,598   $615,870   $104,327   $5,456,564 

 

106 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle 2030 Fund                                                            
Nuveen Funds:                                   
Dividend Value  $145,607   $206,326   $59,078   $(3,789)  $113,359   $5,315   $402,425 
International Growth   —    222,923    14,516    89    27,790    —    236,286 
Santa Barbara Dividend Growth   —    348,624    41,042    10,394    48,446    2,627    357,117 
TIAA-CREF Funds:                                   
Core Bond   656,966    320,528    85,486    13,069    (11,816)   18,348    879,449 
Core Plus Bond   414,620    180,457    44,314    3,423    3,223    13,464    553,750 
Emerging Markets Debt   62,217    41,352    16,288    (353)   8,373    3,977    95,301 
Emerging Markets Equity   161,262    25,984    99,620    21,397    46,371    2,428    144,353 
Growth & Income   442,133    30,263    233,938    66,407    74,885    6,074    358,006 
High-Yield   75,685    32,210    28,638    (2,152)   7,840    4,553    84,945 
Inflation-Linked Bond   88,651    49,430    6,975    (9)   5,941    1,776    137,038 
International Bond   66,501    33,730    11,129    637    (53)   1,813    88,966 
International Equity   194,273    106,535    71,333    (306)   99,912    4,564    329,081 
International Opportunities   189,983    42,713    67,943    11,317    63,709    2,289    235,319 
Large-Cap Growth   444,501    120,111    219,258    164,441    (16,417)   3,105    387,447 
Large-Cap Growth Index   —    370,881    28,801    4,942    44,371    2,374    387,398 
Large-Cap Value   332,225    77,393    149,440    2,488    138,508    8,426    401,174 
Quant International Equity   225,192    4,307    249,043    (4,497)   24,041    5,095    — 
Quant International Small-Cap Equity   115,004    13,557    22,684    (1,633)   50,338    3,541    154,582 
Quant Large-Cap Growth   387,692    602    431,648    168,249    (98,019)   2,851    — 
Quant Large-Cap Value   145,660    32,707    186,010    (3,058)   17,083    2,639    — 
Quant Small-Cap Equity   91,228    7,921    39,965    1,139    52,801    1,016    113,124 
Quant Small/Mid-Cap Equity   74,436    32,459    30,735    4,693    50,467    1,204    130,049 
Short-Term Bond   88,601    54,903    7,903    69    856    2,025    136,452 
TIAA-CREF Real Property Fund LPa   206,417    9,197    3,114    (211)   5,049    5,824    217,338 
   $4,608,854   $2,365,113   $2,148,901   $456,746   $757,058   $105,328   $5,829,600 

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 107
 

Notes to financial statements

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle 2035 Fund                                                           
Nuveen Funds:                                   
Dividend Value  $167,949   $229,632   $51,553   $(3,037)  $130,297   $6,158   $473,288 
International Growth   —    261,027    14,959    85    32,302    —    278,455 
Santa Barbara Dividend Growth   —    403,249    42,238    12,188    56,334    3,062    418,613 
TIAA-CREF Funds:                                   
Core Bond   542,727    315,245    89,919    10,865    (10,159)   15,473    757,070 
Core Plus Bond   343,453    177,377    45,055    2,885    2,509    11,419    478,051 
Emerging Markets Debt   51,606    42,349    16,295    (272)   7,172    3,487    84,560 
Emerging Markets Equity   185,549    30,906    111,884    24,462    53,630    2,821    169,834 
Growth & Income   509,083    35,176    261,793    74,289    89,204    7,038    420,677 
High-Yield   64,860    33,204    29,700    (2,120)   7,084    3,967    73,328 
Inflation-Linked Bond   —    20,941    252    —^   404    128    21,093 
International Bond   55,122    32,237    10,393    549    (93)   1,546    76,808 
International Equity   223,054    121,770    73,198    (900)   116,157    5,310    386,883 
International Opportunities   218,385    51,064    74,227    12,428    74,863    2,661    277,329 
Large-Cap Growth   511,656    136,899    241,018    189,116    (18,013)   3,611    455,471 
Large-Cap Growth Index   —    426,905    24,134    5,495    51,695    2,762    455,314 
Large-Cap Value   382,664    87,368    161,977    521    163,025    9,793    471,601 
Quant International Equity   259,482    5,648    287,609    (4,752)   27,231    5,908    — 
Quant International Small-Cap Equity   132,520    16,808    24,338    (2,029)   58,468    4,143    181,429 
Quant Large-Cap Growth   446,669    798    497,174    194,585    (113,677)   3,310    — 
Quant Large-Cap Value   167,691    39,263    215,829    (3,340)   19,611    3,058    — 
Quant Small-Cap Equity   104,789    8,239    42,544    448    62,027    1,181    132,959 
Quant Small/Mid-Cap Equity   85,334    36,161    31,024    4,811    59,151    1,401    152,953 
Short-Term Bond   —    21,407    403    5    (8)   145    20,995 
TIAA-CREF Real Property Fund LPa   208,751    12,284    2,051    (148)   5,151    5,936    223,987 
   $4,661,344   $2,545,957   $2,349,567   $516,134   $874,365   $104,318   $6,010,698 

 

108 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle 2040 Fund                                                        
Nuveen Funds:                                   
Dividend Value  $220,112   $298,905   $58,463   $(3,051)  $171,599   $8,153   $629,102 
International Growth   —    342,190    13,681    145    42,761    —    371,415 
Santa Barbara Dividend Growth   —    527,918    47,258    16,390    74,523    4,058    556,953 
TIAA-CREF Funds:                                   
Core Bond   382,591    303,052    78,573    7,875    (8,155)   11,535    598,044 
Core Plus Bond   245,615    168,852    34,183    2,093    1,449    8,685    381,437 
Emerging Markets Debt   37,409    47,839    17,557    (213)   5,783    2,925    73,261 
Emerging Markets Equity   243,166    40,250    143,143    31,699    71,157    3,733    226,154 
Growth & Income   668,010    45,007    334,579    97,696    118,093    9,297    560,768 
High-Yield   51,524    35,897    33,122    (887)   5,096    3,288    58,508 
International Bond   39,454    30,190    8,163    416    (142)   1,183    61,285 
International Equity   291,459    159,103    87,000    (1,692)   153,848    7,031    515,718 
International Opportunities   287,250    62,500    90,109    16,174    99,045    3,523    367,994 
Large-Cap Growth   671,026    176,819    303,605    249,561    (24,065)   4,779    606,728 
Large-Cap Growth Index   —    566,279    29,095    7,173    68,663    3,656    606,868 
Large-Cap Value   501,969    109,475    198,313    (1,550)   217,736    12,973    629,317 
Quant International Equity   340,216    10,736    380,369    (6,133)   35,550    7,804    — 
Quant International Small-Cap Equity   173,690    24,239    30,811    (2,375)   76,990    5,503    241,733 
Quant Large-Cap Growth   585,497    1,038    651,544    258,896    (152,644)   4,375    — 
Quant Large-Cap Value   220,226    48,722    280,645    (3,159)   24,617    4,036    — 
Quant Small-Cap Equity   137,485    9,527    52,685    (187)   82,765    1,562    176,905 
Quant Small/Mid-Cap Equity   111,898    46,257    36,662    5,913    78,684    1,856    204,130 
TIAA-CREF Real Property Fund LPa   244,287    20,863    5,585    (239)   6,210    7,007    265,536 
   $5,452,884   $3,075,658   $2,915,145   $674,545   $1,149,563   $116,962   $7,131,856 

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 109
 

Notes to financial statements

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle 2045 Fund                                                           
Nuveen Funds:                                   
Dividend Value  $146,745   $218,376   $29,921   $(1,605)  $120,367   $5,681   $453,962 
International Growth   —    246,034    8,585    46    30,081    —    267,576 
Santa Barbara Dividend Growth   —    378,635    31,477    11,325    52,996    2,869    401,127 
TIAA-CREF Funds:                                   
Core Bond   82,742    128,611    31,150    1,782    (2,432)   2,904    177,332 
Core Plus Bond   56,757    73,549    13,439    482    100    2,358    116,786 
Emerging Markets Debt   8,932    27,273    9,492    (27)   1,895    1,073    28,581 
Emerging Markets Equity   162,358    34,777    91,799    24,086    46,065    2,615    163,597 
Growth & Income   444,984    37,227    204,422    54,029    94,996    6,418    403,371 
High-Yield   16,862    18,815    19,327    502    1,061    1,162    17,913 
International Bond   9,095    12,618    2,838    98    (78)   328    18,765 
International Equity   194,341    118,621    47,097    340    105,326    4,928    371,531 
International Opportunities   192,501    55,324    56,430    7,917    71,804    2,475    266,294 
Large-Cap Growth   447,444    128,287    178,998    159,923    (4,889)   3,348    437,556 
Large-Cap Growth Index   —    400,871    13,370    4,754    48,692    2,562    436,636 
Large-Cap Value   333,988    82,937    114,986    (3,770)   154,721    9,081    452,890 
Quant International Equity   226,521    11,721    257,973    5,906    13,825    5,459    — 
Quant International Small-Cap Equity   115,556    23,289    16,607    (1,812)   53,586    3,865    174,012 
Quant Large-Cap Growth   389,323    3,327    435,415    182,689    (111,056)   3,062    — 
Quant Large-Cap Value   146,675    37,621    192,118    5,546    9,100    2,821    — 
Quant Small-Cap Equity   91,521    7,722    29,006    1,346    56,203    1,094    127,786 
Quant Small/Mid-Cap Equity   74,661    33,157    18,136    3,013    56,126    1,301    147,447 
TIAA-CREF Real Property Fund LPa   147,261    23,563    2,435    (124)   4,082    4,390    172,347 
   $3,288,267   $2,102,355   $1,805,021   $456,446   $802,571   $69,794   $4,635,509 

 

110 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle 2050 Fund                                                             
Nuveen Funds:                                   
Dividend Value  $103,923   $164,037   $16,325   $(579)  $87,872   $4,137   $338,928 
International Growth   —    182,154    4,220    21    22,120    —    200,075 
Santa Barbara Dividend Growth   —    277,850    16,192    7,983    39,449    2,112    301,504 
TIAA-CREF Funds:                                   
Core Bond   43,270    65,890    23,830    764    (1,030)   1,428    83,983 
Core Plus Bond   30,642    35,661    9,075    229    122    1,226    57,235 
Emerging Markets Debt   4,933    17,674    6,975    (15)   1,138    657    16,755 
Emerging Markets Equity   115,140    29,053    63,329    16,278    34,222    1,908    122,688 
Growth & Income   315,148    30,165    134,710    33,898    74,294    4,644    301,687 
High-Yield   10,408    11,555    14,152    486    494    693    8,791 
International Bond   4,910    6,426    2,090    42    (25)   171    9,195 
International Equity   137,847    88,737    25,598    (343)   77,364    3,597    278,007 
International Opportunities   136,862    47,396    38,417    4,947    52,942    1,808    200,207 
Large-Cap Growth   317,152    97,464    115,475    109,166    2,944    2,443    327,901 
Large-Cap Growth Index   —    296,821    6,414    3,303    35,988    1,870    326,552 
Large-Cap Value   237,007    65,389    74,181    (3,387)   113,933    6,630    338,761 
Quant International Equity   160,779    9,993    184,834    2,992    11,070    3,983    — 
Quant International Small-Cap Equity   81,909    19,257    8,496    (1,256)   38,953    2,818    130,367 
Quant Large-Cap Growth   276,221    3,675    309,995    123,540    (72,377)   2,234    — 
Quant Large-Cap Value   103,995    28,169    137,725    2,084    8,455    2,058    — 
Quant Small-Cap Equity   65,073    6,779    18,210    317    41,613    798    95,572 
Quant Small/Mid-Cap Equity   53,029    25,367    10,399    1,764    41,418    950    110,176 
TIAA-CREF Real Property Fund LPa   102,982    20,714    1,223    (66)   2,970    3,131    125,377 
   $2,301,230   $1,530,226   $1,221,865   $302,168   $613,929   $49,296   $3,373,761 

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 111
 

Notes to financial statements

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle 2055 Fund                                                                      
Nuveen Funds:                                   
Dividend Value  $40,960   $72,259   $5,058   $(277)  $36,754   $1,710   $144,638 
International Growth   —    78,377    2,259    (3)   9,235    —    85,350 
Santa Barbara Dividend Growth   —    119,400    7,532    3,276    16,597    885    128,593 
TIAA-CREF Funds:                                   
Core Bond   11,078    24,732    9,265    168    (288)   403    26,120 
Core Plus Bond   8,375    13,988    3,961    55    21    372    18,372 
Emerging Markets Debt   1,406    6,997    2,582    (4)   400    234    6,217 
Emerging Markets Equity   45,394    14,229    24,218    5,830    14,600    789    52,248 
Growth & Income   123,945    18,831    51,396    11,459    32,907    1,896    128,671 
High-Yield   3,497    4,666    5,693    195    157    244    2,822 
International Bond   1,342    2,464    835    10    (9)   52    2,951 
International Equity   54,231    42,327    9,665    (386)   32,118    1,487    118,625 
International Opportunities   53,666    23,360    14,013    1,726    21,882    749    85,161 
Large-Cap Growth   124,772    46,744    42,983    41,151    4,687    1,011    139,901 
Large-Cap Growth Index   —    126,724    2,565    1,303    15,107    773    139,268 
Large-Cap Value   93,204    31,650    26,314    (1,693)   47,506    2,740    144,353 
Quant International Equity   63,403    5,478    74,468    (37)   5,624    1,647    — 
Quant International Small-Cap Equity   32,310    9,993    2,224    (407)   15,906    1,167    55,578 
Quant Large-Cap Growth   108,902    3,601    124,282    41,753    (21,264)   924    — 
Quant Large-Cap Value   40,939    12,216    55,366    (1,193)   5,462    851    — 
Quant Small-Cap Equity   25,609    4,684    6,779    (351)   17,622    329    40,785 
Quant Small/Mid-Cap Equity   20,886    12,005    3,454    572    17,301    393    46,895 
TIAA-CREF Real Property Fund LPa   39,976    11,741    235    (16)   1,258    1,269    52,724 
   $893,895   $686,466   $475,147   $103,131   $273,583   $19,925   $1,419,272 

 

112 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle 2060 Fund                                                                           
Nuveen Funds:                                   
Dividend Value  $9,456   $22,492   $686   $(92)  $9,606   $437   $40,776 
International Growth   —    22,282    622    (8)   2,390    —    24,042 
Santa Barbara Dividend Growth   —    32,644    793    805    4,423    232    36,272 
TIAA-CREF Funds:                                   
Core Bond   1,222    6,248    2,679    9    (42)   58    4,716 
Core Plus Bond   1,097    3,509    1,060    8    (5)   62    3,531 
Emerging Markets Debt   203    1,877    665    (1)   85    50    1,499 
Emerging Markets Equity   10,471    5,693    5,445    1,268    3,662    199    14,746 
Growth & Income   28,600    10,399    11,911    2,487    8,580    469    36,373 
High-Yield   672    1,226    1,429    41    32    51    542 
International Bond   176    601    206    1    (2)   9    567 
International Equity   12,514    14,991    2,112    (121)   8,146    375    33,418 
International Opportunities   12,351    9,311    3,061    376    5,452    189    24,060 
Large-Cap Growth   28,823    17,176    9,155    9,484    1,840    255    39,484 
Large-Cap Growth Index   —    35,602    373    322    3,981    195    39,204 
Large-Cap Value   21,506    12,821    5,291    (477)   12,196    690    40,755 
Quant International Equity   14,652    2,406    18,355    (108)   1,405    415    — 
Quant International Small-Cap Equity   7,444    4,970    550    (124)   4,027    294    15,767 
Quant Large-Cap Growth   25,130    2,350    30,115    8,199    (3,370)   233    — 
Quant Large-Cap Value   9,445    3,399    13,334    (476)   1,484    214    — 
Quant Small-Cap Equity   5,908    2,489    1,241    (191)   4,541    83    11,506 
Quant Small/Mid-Cap Equity   4,823    4,664    741    66    4,484    99    13,191 
TIAA-CREF Real Property Fund LPa   9,105    5,223    24    (2)   353    314    14,655 
   $203,598   $222,373   $109,848   $21,466   $73,268   $4,923   $395,104 

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 113
 

Notes to financial statements

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss		)  Change in
unrealized
appreciation
(depreciation		)  Dividend
income		   Value at
5/31/21		 
Lifecycle 2065 Fund                                                                                 
Nuveen Funds:                                   
Dividend Value  $—   $586   $28   $ —^  $171   $5   $729 
International Growth   —    398    13    —^   45    —^   430 
Santa Barbara Dividend Growth   —    628    59    15    80    4    649 
TIAA-CREF Funds:                                   
Core Bond   —    81    34    —^   —^   —^   47 
Core Plus Bond   —    52    18    —^   —^   —^   34 
Emerging Markets Debt   —    17    6    —^   1    —^   12 
Emerging Markets Equity   —    340    111    23    28    4    263 
Growth & Income   —    812    269    44    98    5    651 
High-Yield   —    17    12    —^   —^   —^   5 
International Bond   —    9    4    —^   —^   —^   5 
International Equity   —    518    39    1    116    7    596 
International Opportunities   —    414    46    8    60    4    429 
Large-Cap Growth   —    903    151    158    (40)   5    704 
Large-Cap Growth Index   —    645    14    6    71    4    702 
Large-Cap Value   —    686    149    8    183    12    728 
Quant International Equity   —    343    348    5    —^   8    — 
Quant International Small-Cap Equity   —    241    13    —^   52    6    280 
Quant Large-Cap Growth   —    553    525    14    —^   4    — 
Quant Large-Cap Value   —    249    250    11    —^   4    — 
Quant Small-Cap Equity   —    163    31    3    71    2    206 
Quant Small/Mid-Cap Equity   —    173    12    3    74    2    236 
TIAA-CREF Real Property Fund LPa   —    258    7    —^   8    4    259 
   $—   $8,086   $2,139   $299   $1,018   $80   $6,965 

 

^ Some amounts represent less than $1,000.
a Restricted security

 

Note 7—inter-fund lending program

 

Pursuant to an exemptive order issued by the SEC, the Funds may participate in an inter-fund lending program. This program allows the Funds to lend cash to and/or borrow cash from certain other affiliated Funds for temporary purposes, (e.g., to satisfy redemption requests or to cover unanticipated cash shortfalls). The program is subject to a number of conditions, including the requirement that no Fund may borrow or lend money under the program unless it receives a more favorable interest rate than is available from a bank or other financial institution for a comparable transaction. In addition, a Fund may participate in the program only if its participation is consistent with the Fund’s investment policies and limitations and authorized by its portfolio manager(s). During the year ended May 31, 2021, there were no inter-fund borrowing or lending transactions.

 

114 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

concluded

 

Note 8—line of credit

 

The Funds participate in a $1 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 15, 2021 expiring on June 14, 2022, replacing the previous facility, which expired June 2021. Certain affiliated accounts and mutual funds, each of which is managed by Advisors, or an affiliate of Advisors, also participate in this facility. An annual commitment fee for the credit facility is borne by the participating accounts and mutual funds on a pro rata basis. Interest associated with any borrowing under the facility is charged to the borrowing accounts or mutual funds at a specified rate of interest. The Funds are not liable for borrowings under the facility by other affiliated accounts or mutual funds. For the year ended May 31, 2021, there were no borrowings under this credit facility by the Funds.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 115
 

Report of independent registered public accounting firm

 

To the Board of Trustees of TIAA-CREF Funds and Shareholders of TIAA-CREF Lifecycle Retirement Income Fund, TIAA-CREF Lifecycle 2010 Fund, TIAA-CREF Lifecycle 2015 Fund, TIAA-CREF Lifecycle 2020 Fund, TIAA-CREF Lifecycle 2025 Fund, TIAA-CREF Lifecycle 2030 Fund, TIAA-CREF Lifecycle 2035 Fund, TIAA-CREF Lifecycle 2040 Fund, TIAA-CREF Lifecycle 2045 Fund, TIAA-CREF Lifecycle 2050 Fund, TIAA-CREF Lifecycle 2055 Fund, TIAA-CREF Lifecycle 2060 Fund, and TIAA-CREF Lifecycle 2065 Fund

 

Opinions on the Financial Statements

 

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of TIAA-CREF Lifecycle Retirement Income Fund, TIAA-CREF Lifecycle 2010 Fund, TIAA-CREF Lifecycle 2015 Fund, TIAA-CREF Lifecycle 2020 Fund, TIAA-CREF Lifecycle 2025 Fund, TIAA-CREF Lifecycle 2030 Fund, TIAA-CREF Lifecycle 2035 Fund, TIAA-CREF Lifecycle 2040 Fund, TIAA-CREF Lifecycle 2045 Fund, TIAA-CREF Lifecycle 2050 Fund, TIAA-CREF Lifecycle 2055 Fund, TIAA-CREF Lifecycle 2060 Fund and TIAA-CREF Lifecycle 2065 Fund (thirteen of the funds constituting TIAA-CREF Funds, hereafter collectively referred to as the “Funds”) as of May 31, 2021, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of May 31, 2021, the results of each of their operations and the changes in each of their net assets for each of the periods indicated in the table below, and each of the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.

 

TIAA-CREF Lifecycle Retirement Income Fund(1) TIAA-CREF Lifecycle 2040 Fund(1)
TIAA-CREF Lifecycle 2010 Fund(1) TIAA-CREF Lifecycle 2045 Fund(1)
TIAA-CREF Lifecycle 2015 Fund(1) TIAA-CREF Lifecycle 2050 Fund(1)
TIAA-CREF Lifecycle 2020 Fund(1) TIAA-CREF Lifecycle 2055 Fund(1)
TIAA-CREF Lifecycle 2025 Fund(1) TIAA-CREF Lifecycle 2060 Fund(1)
TIAA-CREF Lifecycle 2030 Fund(1) TIAA-CREF Lifecycle 2065 Fund(2)
TIAA-CREF Lifecycle 2035 Fund(1)  
(1) Statement of operations for the year ended May 31, 2021 and statement of changes in net assets for the years ended May 31, 2021 and 2020
(2) Statement of operations and statement of changes in net assets for the period September 30, 2020 (commencement of operations) through May 31, 2021

 

116 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Basis for Opinions

 

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of May 31, 2021 by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinions.

 

/s/ PricewaterhouseCoopers LLP

Baltimore, Maryland
July 16, 2021

 

We have served as the auditor of one or more investment companies in TIAA-CREF Funds’ investment company group since 2005.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 117
 

Important tax information (unaudited)

 

For the year ended May 31, 2021, the Lifecycle Funds designate the following distribution amounts (or the maximum amount allowable) as being from net long-term capital gains.

 

Fund  Long term
capital gains
Lifecycle Retirement Income  $18,800,844
Lifecycle 2010   64,184,214
Lifecycle 2015   56,564,600
Lifecycle 2020   136,211,654
Lifecycle 2025   180,173,690
Lifecycle 2030   201,935,494
Lifecycle 2035   235,630,338
Lifecycle 2040   319,823,750
Lifecycle 2045   192,079,893
Lifecycle 2050   117,998,821
Lifecycle 2055   32,579,506
Lifecycle 2060   5,456,079
Lifecycle 2065   1,015

 

For the year ended May 31, 2021, the Lifecycle Funds designate the following percentages (or the maximum amount allowable) of ordinary income dividends paid as qualified dividends.

 

Fund  Percentage
Lifecycle Retirement Income   22.0%
Lifecycle 2010   19.4 
Lifecycle 2015   23.0 
Lifecycle 2020   24.9 
Lifecycle 2025   31.3 
Lifecycle 2030   35.3 
Lifecycle 2035   41.1 
Lifecycle 2040   45.7 
Lifecycle 2045   49.7 
Lifecycle 2050   48.6 
Lifecycle 2055   46.2 
Lifecycle 2060   48.2 
Lifecycle 2065   45.9 

 

For the year ended May 31, 2021, the Lifecycle Funds designate the following percentages (or the maximum amount allowable) of ordinary income dividends paid as qualifying for the corporate dividends received deduction.

 

Fund  Percentage
Lifecycle Retirement Income   15.4%
Lifecycle 2010   13.7 
Lifecycle 2015   16.2 
Lifecycle 2020   17.5 
Lifecycle 2025   21.9 
Lifecycle 2030   24.7 
Lifecycle 2035   28.8 
Lifecycle 2040   32.0 
Lifecycle 2045   34.7 
Lifecycle 2050   33.9 
Lifecycle 2055   32.1 
Lifecycle 2060   33.3 
Lifecycle 2065   29.6 

 

118 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

For the year ended May 31, 2021, the Lifecycle Funds received the following amounts of income from their respective underlying funds that was from foreign sources:

 

Fund  Foreign
source income		   Foreign source
income per share
Lifecycle Retirement Income  $1,217,936   $0.02559
Lifecycle 2010   2,538,284    0.02541
Lifecycle 2015   4,201,837    0.02632
Lifecycle 2020   10,234,870    0.03095
Lifecycle 2025   15,903,808    0.03620
Lifecycle 2030   19,154,202    0.04176
Lifecycle 2035   22,277,753    0.04839
Lifecycle 2040   29,489,461    0.05495
Lifecycle 2045   20,667,774    0.06913
Lifecycle 2050   15,081,028    0.07044
Lifecycle 2055   6,238,967    0.08047
Lifecycle 2060   1,572,150    0.06083
Lifecycle 2065   30,006    0.05357

 

For the year ended May 31, 2021, the Lifecycle Funds have elected to pass through the following amounts of foreign taxes paid by their respective underlying funds:

 

Fund  Foreign taxes
paid		   Foreign taxes
paid per share
Lifecycle Retirement Income  $103,236   $0.00217
Lifecycle 2010   215,180    0.00215
Lifecycle 2015   356,186    0.00223
Lifecycle 2020   867,625    0.00262
Lifecycle 2025   1,348,227    0.00307
Lifecycle 2030   1,623,866    0.00354
Lifecycle 2035   1,889,073    0.00410
Lifecycle 2040   2,500,938    0.00466
Lifecycle 2045   1,753,024    0.00586
Lifecycle 2050   1,279,159    0.00597
Lifecycle 2055   529,224    0.00683
Lifecycle 2060   133,369    0.00516
Lifecycle 2065   2,545    0.00454

 

The information and distributions reported herein may differ from the information and distributions reported to shareholders for the calendar year ending December 31, 2021, which will be reported in conjunction with your 2021 Form 1099-DIV.

 

By early 2022, shareholders should receive their Form 1099-DIV and a tax information letter from the Funds. For your specific situation, we recommend that you consult a professional tax adviser.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 119
 

Trustees and officers (unaudited)

 

TIAA-CREF Funds  ■  May 31, 2021

 

Trustees

 

Name, Address and
Year of Birth (“YOB”)		   Position(s)
Held with
Fund		   Term of
Office and
Length
of Time
Served		   Principal Occupation(s) During Past 5 Years
and other relevant experience and qualifications		   Number of
Portfolios in
Fund Complex
Overseen
by Trustee		   Other Directorship(s)
Held by Trustee
Forrest Berkley
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1954		   Trustee   Indefinite term.
Trustee since 2006.		   Retired Partner (since 2006), Partner (1990–2005) and Head of Global Product Management (2003–2005), GMO (formerly, Grantham, Mayo, Van Otterloo & Co.) (investment management); and member of asset allocation portfolio management team, GMO (2003–2005).   88   Director, Save the Children Federation, Inc.; Investment Committee Member, Maine Community Foundation.
Joseph A. Boateng
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1963		   Trustee   Indefinite term.
Trustee since 2019.		   Chief Investment Officer, Casey Family Programs (since 2007). Director of U.S. Pension Plans at Johnson & Johnson (2002–2006). Manager, Financial Services Consultant, KPMG Consulting (2000–2002).   88   Board Member, Lumina Foundation and Waterside School; Investment Advisory Committee Chair, Seattle City Employees’ Retirement System; Investment Committee Member, The Seattle Foundation.
Janice C. Eberly
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		   Trustee   Indefinite term.
Trustee since 2018.		   James R. and Helen D. Russell Professor of Finance at the Kellogg School of Management, Northwestern University (2002–2011 and since 2013), Senior Associate Dean for Strategy and Academics (since 2020) and Chair of the Finance Department (2005–2007). Vice President, American Economic Association (2020). Assistant Secretary for Economic Policy, United States Department of the Treasury (2011–2013).   88   Member of the Board of the Office of Finance, Federal Home Loan Banks; Director, Avant, LLC.

 

120 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 
Nancy A. Eckl
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		   Trustee   Indefinite term.
Trustee since 2007.		   Vice President (1990–2006), American Beacon Advisors, Inc., and of certain funds advised by American Beacon Advisors, Inc.   88   Independent Director, The Lazard Funds, Inc., Lazard Retirement Series, Inc., and Lazard Global Total Return and Income Fund, Inc.
Michael A. Forrester
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1967		   Trustee   Indefinite term.
Trustee since 2007.		   Chief Executive Officer (2014–2021) and Chief Operating Officer (2007–2014), Copper Rock Capital Partners, LLC. Chief Operating Officer, DDJ Capital Management (2003–2006).   88   Trustee, Dexter Southfield School; Member, Governing Council of the Independent Directors Council.
Howell E. Jackson
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1954		   Trustee   Indefinite term.
Trustee since 2005.		   James S. Reid, Jr. Professor of Law (since 2004), Senior Advisor to President and Provost (2010–2012), Acting Dean (2009), Vice Dean for Budget (2003–2006) and on the faculty (since 1989) of Harvard Law School.   88   Director, Commonwealth (non-profit organization).
Thomas J. Kenny
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1963		   Chairman of the Board and Trustee   Indefinite term.
Trustee since 2011; Chairman for term ending June 30, 2023. Chairman since September 13, 2017.		   Advisory Director (2010–2011), Partner (2004–2010), Managing Director (1999–2004) and Co-Head of Global Cash and Fixed Income Portfolio Management Team (2002–2010), Goldman Sachs Asset Management.   88   Director and Chair of the Finance and Investment Committee, Aflac Incorporated; Director and Investment Committee Member, Sansum Clinic; Director, ParentSquare; Member, University of California at Santa Barbara Arts and Lectures Advisory Council.
James M. Poterba
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1958		   Trustee   Indefinite term. Trustee since 2006.   President and Chief Executive Officer (since 2008) and Program Director (1990-2008), National Bureau of Economic Research. Mitsui Professor of Economics, Massachusetts Institute of Technology (“MIT”) (since 1996); Affiliated Faculty Member of the Finance Group, Alfred P. Sloan School of Management (since 2014); Head (2006–2008) and Associate Head (1994–2000 and 2001–2006), Economics Department of MIT.   88   Director, National Bureau of Economic Research; Trustee, Alfred P. Sloan Foundation; Member, Congressional Budget Office Panel of Economic Advisers.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 121
 
Trustees and officers (unaudited) continued

 

TIAA-CREF Funds  ■  May 31, 2021

 

Trustees – concluded

 

Name, Address and
Year of Birth (“YOB”)		   Position(s)
Held with
Fund		   Term of
Office and
Length
of Time
Served		   Principal Occupation(s) During Past 5 Years
and other relevant experience and qualifications		   Number of
Portfolios in
Fund Complex
Overseen
by Trustee		   Other Directorship(s)
Held by Trustee
Maceo K. Sloan
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1949		   Trustee   Indefinite term.
Trustee since 1999.		   Chairman, President and Chief Executive Officer, Sloan Financial Group, Inc. (1991–2018); Chairman and Chief Executive Officer (1991–2016), Chief Investment Officer (1991–2013) and Chief Compliance Officer (2015–2016), NCM Capital Management Group, Inc.; Chairman, Chief Executive Officer (2003–2016), Chief Investment Officer (2003–2013) and Chief Compliance Officer (2015–2016), NCM Capital Advisers, Inc.; and Chairman, President and Principal Executive Officer, NCM Capital Investment Trust (2007–2012).   88   Director, TheraTrue Inc.
Laura T. Starks
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1950		   Trustee   Indefinite term.
Trustee since 2006.		   Charles E. and Sarah M. Seay Regents Chair in Finance (since 2002), Co-Executive Director, Social Innovation Initiative (since 2015), Director, AIM Investment Center (2000–2016), Associate Dean for Research (2011–2016), Chairman, Department of Finance (2002–2011) and Professor (since 1987), McCombs School of Business, University of Texas at Austin. President (2019–2020), Vice President (2013–2018), Society of Financial Studies. President (since 2020), Vice President (2019–2020) American Finance Association.   88   Texa$aver Product Committee Member, Employees Retirement System of Texas.

 

122 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Officers

 

Name, Address and
Year of Birth (“YOB”)		   Position(s)
Held with
Fund		   Term of
Office and
Length
of Time
Served		   Principal Occupation(s) During Past 5 Years
Richard S. Biegen
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		   Chief Compliance Officer   One-year term. Chief Compliance Officer since 2008.   Senior Managing Director, TIAA. Chief Compliance Officer of the College Retirement Equities Fund (“CREF”), TIAA Separate Account VA-1, TIAA-CREF Funds and TIAA-CREF Life Funds (collectively, the “TIAA-CREF Fund Complex”).
Derek B. Dorn
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1976		   Senior Managing Director and Corporate Secretary   One-year term. Senior Managing Director and Corporate Secretary since 2020.   Senior Managing Director and Corporate Secretary of Teachers Insurance and Annuity Association of America (“TIAA”) and the TIAA-CREF Fund Complex. Formerly, Managing Director, Special Assistant to the CEO, and Managing Director, Regulatory Affairs, TIAA. Prior to joining TIAA, Mr. Dorn served as a partner at Davis & Harman LLP and an adjunct professor of Law at Georgetown University Law Center.
Bradley Finkle
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1973		   Principal Executive Officer and President   One-year term. Principal Executive Officer and President since 2017.   Chief Operating Officer, Nuveen. Principal Executive Officer and President of the TIAA-CREF Funds and TIAA-CREF Life Funds. Chief Executive Officer and President of CREF and TIAA Separate Account VA-1. Formerly, Senior Managing Director, Co-Head Nuveen Equities & Fixed Income and President of TIAA Investments.
Jose Minaya
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1971		   Executive Vice President   One-year term. Executive Vice President since 2018.   Chief Executive Officer, Nuveen. Executive Vice President of the TIAA-CREF Fund Complex. Formerly, Executive Vice President, President and Chief investment Officer, Nuveen; Executive Vice President, Chief Investment Officer and President, Nuveen Global Investments; and Senior Managing Director, President, Global Investments, TIAA.
David Nason
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1970		   Executive Vice President   One-year term. Executive Vice President since 2020.   Senior Executive Vice President, Chief Legal, Risk and Compliance Officer of TIAA. Executive Vice President of the TIAA-CREF Fund Complex. Formerly, Executive Vice President, Chief Risk and Compliance Officer, TIAA. Prior to joining TIAA, Mr. Nason served as President and CEO of GE Energy Financial Services.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 123
 
Trustees and officers (unaudited) concluded

 

TIAA-CREF Funds  ■  May 31, 2021

    

Officers – concluded

 

Name, Address and
Year of Birth (“YOB”)		   Position(s)
Held with
Fund		   Term of
Office and
Length
of Time
Served		   Principal Occupation(s) During Past 5 Years
Phillip T. Rollock
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		   Executive Vice President and Chief Legal Officer   One-year term. Executive Vice President and Chief Legal Officer since 2018.   Executive Vice President and Chief Legal Officer of TIAA and the TIAA-CREF Fund Complex. Formerly, Executive Vice President, Deputy Chief Legal Officer, TIAA and Senior Managing Director, Senior General Counsel and Corporate Secretary of TIAA and the TIAA-CREF Fund Complex.
E. Scott Wickerham
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1973		   Principal Financial Officer, Principal Accounting Officer and Treasurer   One-year term. Principal Financial Officer, Principal Accounting Officer and Treasurer since 2017.   Senior Managing Director, Head, Publics Investment Finance, Nuveen. Principal Financial Officer, Principal Accounting Officer and Treasurer of the TIAA-CREF Fund Complex; and Vice President and Controller of the Nuveen Funds. Formerly, Managing Director, Head, TC Fund Administration, Nuveen.
Sean N. Woodroffe
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1963		   Executive Vice President   One-year term. Executive Vice President since 2018.   Senior Executive Vice President, Chief Human Resources Officer of TIAA, and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Mr. Woodroffe served as Chief People Officer at National Life Group.

Please note that the Funds’ Statement of Additional Information (SAI) includes additional information about the Funds’ trustees and is available, without charge, through our website, TIAA.org, or by calling 800 223-1200.

 

124 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Approval of investment management agreement (unaudited)

 

Board renewal of the investment management agreement for the TIAA-CREF Lifecycle Funds

 

The Board of Trustees (the “Board” or the “Trustees”) of the TIAA-CREF Funds (the “Trust”) determines whether to initially approve and periodically renew the investment management agreement (the “Agreement”) between Teachers Advisors, LLC (“Advisors”) and the Trust on behalf of each series of the Trust. Under the Agreement, Advisors is responsible for providing investment advisory services to each series of the Trust and overseeing the everyday operations and other service providers of the Trust. Below is a summary of the process the Board undertook related to its most recent renewal of the Agreement with respect to each series of the TIAA-CREF Lifecycle Funds (the “Funds”).

 

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), requires that, after an initial period of up to two years, the Agreement for each Fund will remain in effect only if the Board, including a majority of those Trustees who have no direct or indirect interest in the Agreement, and who are independent Trustees because they are not “interested persons” of the Trust, as that term is defined in the 1940 Act, annually renews the Agreement. None of the Trustees is an interested person of the Trust under the 1940 Act. Rather, they are all deemed to be independent Trustees.

 

Under normal circumstances, Section 15(c) requires any initial approval or annual renewal of an investment management agreement to be made at an in-person meeting of the Board. However, due to the COVID-19 pandemic, the Securities and Exchange Commission (“SEC”) issued a temporary, conditional exemptive order (the “SEC Order”), permitting mutual fund boards to vote to approve matters subject to the Section 15(c) in-person approval requirement at a meeting that is not held in person if the board determines that reliance on the SEC Order is necessary or appropriate due to prevailing circumstances related to the current or potential effects of COVID-19 and the board ratifies any action taken pursuant to the SEC Order at its next in-person meeting.

 

Overview of the renewal process

 

The Board held a videoconference meeting on March 12, 2021, in order to consider the annual renewal of the Agreement with respect to each applicable Fund using the process established by the Board described further below. At the outset of the meeting, the Board considered reliance upon the SEC Order and determined that such reliance was necessary due to, among other considerations, COVID-19 pandemic-related social distancing requirements, travel restrictions and other governmental mandates imposed for health and safety reasons. The Board noted that it would ratify actions taken at this meeting pursuant to the SEC Order at its next in-person meeting.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 125
 

Approval of investment management agreement (unaudited)

 

As part of the Board’s established process, the Board delegated certain tasks to its Operations Committee. Among these tasks, the Operations Committee or certain of its designated members worked with Advisors, other Board members and legal counsel to the Trustees to develop guidance and specific requests relating to the types of information to be provided to the Board in connection with the proposed contract renewals.

 

Among other matters, the Operations Committee or certain of its designated members, following consultations with representatives of Advisors, other Board members, legal counsel to the Trustees and legal counsel to Advisors and the Trust, confirmed or established certain guidance regarding the preparation of reports to be provided to the Board with respect to each Fund by the Board Reporting and Compliance unit of Broadridge Financial Solutions, Inc. (“Broadridge”), using data from Lipper, Inc., an independent provider of investment company data. The Operations Committee considered that Broadridge is widely recognized as a leading provider of comparative analyses used by independent directors and trustees of investment companies during their advisory contract review processes.

 

Based on guidance provided by the Operations Committee or certain of its designated members on behalf of the Board, Broadridge produced, among other information, comparative performance and expense data for each Fund, including data relating to each Fund’s management fee rate, total expense ratio, short-term and long-term investment performance, brokerage commission costs and portfolio turnover rate (as applicable). Broadridge compared this data, as relevant, for each Fund against a universe of investment companies (except for brokerage commission costs) and against a more selective peer group of mutual funds with similar investment objectives and strategies, each of which was selected by Broadridge, and also compared the performance of each Fund against one or more appropriate broad-based indices. In each case, Broadridge summarized, and the Board considered, the methodologies Broadridge employed to provide the data contained in its reports. In addition, Broadridge represented to the Board that its reports were designed specifically to provide the Board with the fee, expense and performance information that is necessary to help the Board satisfy its duties under Section 15(c) of the 1940 Act. Broadridge also represented that the purpose of its reports is to provide an objective view of each Fund’s relative position regarding the level of fees, expenses and performance against a competitive peer group and universe (as applicable) selected by Broadridge (and not Advisors or the Board). The Board considered the propriety of each Fund’s applicable peer group as selected by Broadridge and use of the Institutional Class shares as the base shareclass for comparison purposes.

 

In advance of the Board meeting held on March 12, 2021, legal counsel for the Trustees requested on behalf of the Board, and Advisors provided, information that was designed to assist the Board in its consideration of whether to renew the Agreement for each Fund. In addition to the data provided by Broadridge as described above, this information included, but was not limited to, the following:

 

126 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

(1) further information relating to each Fund’s investment performance and a narrative analysis of the performance of each Fund that had underperformed certain Board-specified criteria, together with an explanation of any events that had a material impact on the Fund’s performance during that period; (2) a description of any fee waiver or expense reimbursement arrangements that were proposed or were in place during the prior year and the extent to which such arrangements would be continued or modified in the coming year; (3) a comparison of each Fund’s management fee rate and performance to other accounts with comparable strategies managed by Advisors or certain of its affiliates; (4) any “fall-out” benefits that accrued or were identified as reasonably likely to accrue to Advisors or its affiliates due to their relationship with the Funds in addition to the Funds’ direct fee payments to Advisors pursuant to the Agreement; (5) information regarding Advisors’ financial resources, senior professional personnel, overall staffing levels, portfolio manager compensation arrangements, capacity to manage the Funds at current and foreseeable asset levels, insurance coverage, portfolio trading and best execution practices, and any actual and potential conflicts of interest identified by Advisors in connection with rendering services to the Funds; (6) information as to any profits earned by Advisors in connection with its services pursuant to the Agreement; (7) a copy of the Agreement and certain related agreements between the Funds and affiliates of Advisors; (8) a copy of Advisors’ Form ADV as filed with the SEC (which was presented only to legal counsel for the Trustees); and (9) draft narrative explanations to be included in the shareholder reports of reasons why the Board should renew the Agreement. The Trustees were also provided with performance ratings of Morningstar, Inc. (“Morningstar”), which is a widely recognized mutual fund ranking service. Addititonally, the Board received information from management on the impact of the COVID-19 pandemic on the Teachers Insurance and Annuity Association of America (“TIAA”) enterprise generally and the Funds in particular including, among other information, the current and expected impact on the Funds’ performance and operations.

 

On March 4, 2021, the Board held a videoconference meeting with legal counsel to the Trustees to discuss Advisors’ materials, which led to the Trustees providing additional questions to, and requesting additional information from, Advisors. Subsequently, at the March 12, 2021 meeting, the Trustees were given the opportunity to, and did, ask additional questions and they discussed responses from Advisors to the Board’s follow-up questions and requests presented by the Board after its initial review of the information described above.

 

In considering whether to renew the Agreement with respect to each Fund, the Board considered various factors, including: (1) the nature, extent and quality of services provided or to be provided by Advisors to the Fund; (2) the Fund’s investment performance; (3) the costs of the services provided to the Fund and the profits realized or potential profits to be realized (if any) by Advisors from their relationship with the Fund; (4) fees charged to comparable mutual funds by other advisers; (5) the extent to which economies of scale have been realized or are anticipated to be realized as the Fund grows; (6) how such economies of scale are shared with the

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 127
 

Approval of investment management agreement (unaudited)

 

Fund for the benefit of its investors, such as, if applicable, through management fee breakpoints; (7) comparisons, if applicable, of the services provided by Advisors to, and the fee rates and performance of, the Fund to other clients to whom Advisors provides comparable services; and (8) any other benefits identified by Advisors derived or anticipated to be derived by Advisors or its affiliates from their relationship with the Fund. As a general matter, the Board considered these factors, and any other factors deemed relevant by the Trustees, in their totality, and no single factor was identified as being the determining factor in deciding whether to renew the Agreement.

 

In addition to the March 12, 2021 meeting that included Advisors’ personnel, the Trustees met in executive sessions, at which no representatives of Advisors were present, to discuss the proposed renewal of the Agreement for each Fund. The Board also received and considered information from its legal counsel as to certain relevant guidance that relates to the renewal process under Section 15(c) of the 1940 Act and certain other legal authorities.

 

While the contract renewal process included a series of discussions and meetings leading up to the March 12, 2021 meeting, the oversight and evaluation of Advisors’ services to the Funds by the Board and its Committees is an ongoing process. The Board, as well as its Committees, discussed reports on various investment and operational topics that had been identified by the Board or its Committees for review in the year since the last annual renewal process. Further, at their regularly scheduled meetings, the Board and its Investment Committee and its other Committees receive and discuss information regarding the performance of the Funds and other matters. Thus, in reaching its decisions regarding the renewal of the Agreement for each Fund, the Board took into account the information described herein and other information provided to the Board and its Committees throughout the year.

 

The Board received and considered both Trust-level and Fund-specific information, but made its renewal determinations on a Fund-by-Fund basis. In deciding whether to renew the Agreement for each Fund, each Trustee may have accorded different weight to different factors and, thus, may have had a different basis for his or her ultimate decision to vote to renew the Agreement for each Fund. At its meeting on March 12, 2021, all Board members voted unanimously to renew the Agreement for each Fund. Set forth below is a summary of the primary factors the Board considered with respect to each Fund.

 

The nature, extent and quality of services

 

The Board considered the level and depth of knowledge of Advisors, including the professional experience and qualifications of its personnel. The Board also considered that Advisors is an experienced investment adviser that has managed the Funds since their operations commenced. Investment professionals at Advisors also manage various other funds and accounts of the Trust, College Retirement Equities

 

128 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

Fund, the TIAA-CREF Life Funds and TIAA Separate Account VA-1, as well as advise and sub-advise other investment companies and vehicles. Under the Agreement, Advisors is responsible for, among other duties: managing the assets of the Funds (which are funds of funds that may invest their assets in the securities of affiliated and unaffiliated investment companies or other investment pools, referred to as “Underlying Funds”), including conducting research, identifying investments and placing orders to buy and sell shares of Underlying Funds for the Funds’ investment portfolios; active daily monitoring of the Funds’ investment portfolios; reporting on the investment performance and other metrics of the Funds to the Board on a regular basis; responding to Fund flows; compliance monitoring; coordinating the activities of each Fund’s service providers; and overseeing the provision of various administrative services to the Funds. The Board considered that Advisors has carried out these responsibilities in a competent and professional manner. The Board also considered that Advisors has committed significant resources to supporting the series of the Trust, including the Funds. It also considered Advisors’ compliance program and resources and its compliance record with respect to the Funds.

 

The Board also considered, among other factors, the performance of each Fund, as discussed below. In addition, the Board considered the nature and quality of non-portfolio management services provided by Advisors and its affiliates. In this regard, the Board considered its ongoing review of the performance of certain affiliated and unaffiliated service providers, including the quality of services provided by those firms and Advisors’ oversight of those service providers and the outsourcing of certain services to other firms.

 

During its review, the Board noted its ongoing efforts to examine the level of personnel and other resources available to Advisors to provide portfolio management and other services to the Funds, including the impact of recent and anticipated regulatory requirements and operational changes on such resources, so as to assess the adequacy of the resources devoted to these services.

 

Investment performance

 

The Board considered the investment performance of each Fund, over the periods indicated in the Fund-by-Fund synopsis below. The Board considered each Fund’s performance as compared to its peer group and peer universe (as applicable) and its benchmark index. For details regarding each Fund’s performance, see the Fund-by-Fund synopsis below. The Board concluded that, under the totality of circumstances considered, the investment performance of each Fund was reasonable.

 

Cost and profitability

 

The Board considered financial and profitability data relating to Advisors’ services to the Funds for the calendar year 2020. The Board considered Advisors’ profit calculations with respect to its services to each Fund both before and after taking into account the costs incurred directly or indirectly by Advisors in connection with

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 129
 

Approval of investment management agreement (unaudited)

 

the distribution of shares of the Fund. The Board considered that this data included the effect of the Fund’s unique fee structure where the Funds invest in fee-waived Class W shares of the TIAA-CREF Underlying Funds and the Funds pay the equivalent of these Underlying Funds’ management fees and other expenses directly as part of the Funds’ management fee rates under the Agreement, along with the Funds’ existing annual management fee rate of 0.10% of average daily net assets. The Board considered that the Broadridge fee comparisons would be affected because most of the Funds’ peers do not have a similar fee structure.

 

The Board acknowledged the reasonableness of having management fee rates which permit Advisors to maintain and improve the quality of services provided to the Funds and recognized the entrepreneurial and other risks assumed by Advisors in managing the Funds. The Board also noted Advisors’ waiver of 0.10% of each Fund’s management fee since inception, which will continue through at least September 30, 2023. The Board also considered that Advisors had agreed to additional waivers of the Funds’ fees, which will continue through at least September 30, 2021. The Board also acknowledged certain fee waivers and reimbursements of expenses above specified amounts undertaken by Advisors with respect to many of the Underlying Funds which, in turn, reduce the management fees charged to the Funds. The Board also recognized Advisors’ commitment to reimburse Fund expenses to the extent that total annual operating expenses exceeded certain specified amounts. The Board considered that Advisors had calculated that it incurred losses with respect to each Fund under the Agreement for the one-year period ended December 31, 2020.

 

Fees charged by other advisers

 

The Board considered comparative information regarding each Fund’s contractual and effective management fee rates and the contractual and effective management fee rates paid by similar mutual funds to other advisers, as analyzed by Broadridge and reflected in the Fund-by-Fund synopsis below. The Board acknowledged Advisors’ assertion that, while the Funds’ expense structure makes the Funds’ contractual and effective management fee rates appear higher as compared to its peers (most of whom have a traditional funds of funds fee structure), the Funds’ total expenses were favorable as compared to most of their peers. In this connection, the Board also considered the inherent limitations of such comparisons in light of uncertainty as to how the fees of such similar mutual funds are set and potentially material differences between a Fund and its comparable mutual funds. The Board considered Broadridge’s treatment of all fund fee waivers, regardless of their type, as management fee waivers, which could materially impact how the Funds’ actual management fee rates compare to those of similar mutual funds. Additionally, the Board considered the potential limitations of such comparisons due to, among other factors, the fact that, in many instances, Broadridge based its comparisons on financial data relating to fiscal periods that differed from the period for which the Fund’s data were derived. Based on all factors considered, the Board concluded that the management fee rates under the Agreement with respect to each Fund were

 

130 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

reasonable in relation to those charged by appropriate groups of comparable mutual funds.

 

Economies of scale

 

The Board considered whether Advisors has experienced or is anticipated to experience economies of scale in connection with the operation of each Fund, and whether any such economies are shared with the Funds. The Board also considered that because Advisors operated each Fund at a loss, and has waived 0.10% of its management fees for the Funds since inception, there had been little opportunity to pass on economies of scale to Fund shareholders. Based on all factors considered, the Board concluded that the Funds’ management fee rate schedules were reasonable in light of current economies of scale considerations and current asset levels.

 

Fee and performance comparisons with other Advisors clients

 

The Board considered that Advisors provides similar investment management services to other investment companies. The Board noted that Advisors provides funds of funds management services to the TIAA-CREF Lifestyle Funds and the TIAA-CREF Life Balanced Fund, with annual management fee rates of 0.10% of average daily net assets, and the TIAA-CREF Managed Allocation Fund, for which Advisors receives no management fee. The Board also considered that Advisors also manages the TIAA-CREF Lifecycle Index Funds, which have the same fee structure as the Funds. The Board also discussed the performance of these other funds of funds while discussing the performance of the Funds.

 

Other benefits

 

The Board also considered additional “fall-out benefits” to Advisors and its affiliates arising from the Agreement. Such benefits include, among others, other fees paid by the Funds to Advisors or its affiliates for other services, such as distribution and administration, and investment-related benefits, such as economies of scale to the extent the Funds share investment resources and/or personnel with other clients of Advisors and the ability to incubate strategies within one or more Funds that could be subsequently utilized to manage other non-Fund products. Advisors and its affiliates may also benefit from the level of business and relationships the Funds have with certain service providers. Advisors and/or its affiliates also may benefit to the extent that the Funds add scale to the TIAA-CREF Underlying Funds. Also, Advisers and its affiliates earn fees on the Funds’ investments in other affiliated products, such as Nuveen Funds and the TIAA-CREF Real Property Fund. Additionally, the Funds may be utilized as investment options for other products and businesses of Advisors and its affiliates, such as variable products, fund of funds and 529 education savings plans. Also, Advisors and its affiliates may benefit from their relationship with the Funds to the extent that this relationship results in potential

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 131
 

Approval of investment management agreement (unaudited)

 

investors viewing TIAA, of which Advisors is an indirect, wholly-owned subsidiary, as a leading retirement plan provider in the academic and non-profit markets and as a single source for all their financial service needs.

 

Fund-by-fund synopsis of factors

 

The Board considered the following specific factors (among others) in connection with its determination to renew the Agreement with respect to each Fund. If a Fund is described in the following discussions as being in the “1st” quintile, it is in the best of five groups (that is, the group has the best performance or the lowest expenses, as the case may be). References below to quintiles are based on data provided to the Board in the reports prepared by Broadridge. The specific management fee, expense and performance factors outlined below are based on the Institutional Class shares of each Fund. Because the Institutional Class generally has lower non-management expenses than the other classes of these Funds, the expenses and performance of these other classes will differ from the expenses and performance shown for the Institutional Class. All time periods referenced below are ended December 31, 2020. Under the Morningstar rating system, an Overall Morningstar Rating of 5 stars is the highest (best) rating category and 1 star is the lowest (worst) rating category. The Morningstar data is as of December 31, 2020. Statements below regarding a Fund’s “effective management fee rate” refer to the overall effective blended fee rate that applied to that Fund after taking into account any breakpoints in the management fee rate schedule for the Fund and any applicable fee waivers and/or expense reimbursements. Statements below regarding “net loss” refer to Advisors’ calculation that it incurred a loss for the services that it rendered to a Fund during 2020 under the Agreement.

 

Lifecycle Retirement Income Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.273% of average daily net assets, which includes the effect of a voluntary management fee rate waiver of 0.10% ending September 30, 2022, as well as the effect of a voluntary waiver on the Fund’s other expense by Advisors. The voluntary management fee rate waiver subsequently has been extended by Advisors through September 30, 2023.
• The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate each ranked 1 out of 3 funds within the group of comparable funds selected by Broadridge for expense comparison purposes (“Expense Group”). The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate were in the
   
132 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

  1st, 4th and 1st quintiles of the universe of comparable funds selected by Broadridge for expense comparison purposes (“Expense Universe”), respectively.
• The Fund ranked 1 out of 3 funds, 2 out of 3 funds, 1 out of 3 funds and 2 out of 3 funds within the group of comparable funds selected by Broadridge for performance comparison purposes (“Performance Group”) for the one-, three-, five-and ten-year periods, respectively. The Fund was in the 1st quintile of the universe of comparable funds selected by Broadridge for performance comparison purposes (“Performance Universe”) for each of the one-, three-, five- and ten-year periods.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

Lifecycle 2010 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.288% of average daily net assets, which includes the effect of a voluntary management fee rate waiver of 0.10% ending September 30, 2022, as well as the effect of a voluntary waiver on the Fund’s other expense by Advisors. The voluntary management fee rate waiver subsequently has been extended by Advisors through September 30, 2023.
• The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate ranked 1 out of 4 funds, 2 out of 3 funds and 2 out of 3 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate were in the 1st, 3rd and 2nd quintiles of its Expense Universe, respectively.
• The Fund ranked 1 out of 4 funds, 1 out of 4 funds, 1 out of 4 funds and 1 out of 2 funds within its Performance Group for the one-, three-, five- and ten-year periods, respectively. The Fund was in the 1st, 2nd, 1st and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   
TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 133
 

Approval of investment management agreement (unaudited)

 

Lifecycle 2015 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.301% of average daily net assets, which includes the effect of a voluntary management fee rate waiver of 0.10% ending September 30, 2022, as well as the effect of a voluntary waiver on the Fund’s other expense by Advisors. The voluntary management fee rate waiver subsequently has been extended by Advisors through September 30, 2023.
• The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate ranked 1 out of 4 funds, 2 out of 3 funds and 2 out of 3 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate were in the 1st, 4th and 3rd quintiles of its Expense Universe, respectively.
• The Fund ranked 3 out of 4 funds, 2 out of 4 funds, 2 out of 4 funds and 1 out of 2 funds within its Performance Group for the one-, three-, five- and ten-year periods, respectively. The Fund was in the 2nd, 2nd, 1st and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   

Lifecycle 2020 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.315% of average daily net assets, which includes the effect of a voluntary management fee rate waiver of 0.10% ending September 30, 2022, as well as the effect of a voluntary waiver on the Fund’s other expense by Advisors. The voluntary management fee rate waiver subsequently has been extended by Advisors through September 30, 2023.
• The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate ranked 1 out of 4 funds, 2 out of 3 funds and 2 out of 3 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual
   
134 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

  management fee rate were in the 1st, 5th and 2nd quintiles of its Expense Universe, respectively.
• The Fund ranked 3 out of 4 funds, 3 out of 4 funds, 3 out of 4 funds and 1 out of 2 funds within its Performance Group for the one-, three-, five- and ten-year periods, respectively. The Fund was in the 2nd, 2nd, 1st and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   

Lifecycle 2025 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.328% of average daily net assets, which includes the effect of a voluntary management fee rate waiver of 0.10% ending September 30, 2022, as well as the effect of a voluntary waiver on the Fund’s other expense by Advisors. The voluntary management fee rate waiver subsequently has been extended by Advisors through September 30, 2023.
• The Fund’s total expense ratio was in the 1st quintile of its Expense Group, while its actual management fee rate (including the waiver) and contractual management fee rate both ranked 2 out of 5 funds within its Expense Group. The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate were in the 1st, 4th and 2nd quintiles of its Expense Universe, respectively.
• The Fund was in the 3rd, 4th and 2nd quintiles of its Performance Group for the one-, three- and five-year periods, respectively, and ranked 1 out of 4 funds in its Performance Group for the ten-year period. The Fund was in the 2nd, 2nd, 2nd and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   

Lifecycle 2030 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF
   
TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 135
 

Approval of investment management agreement (unaudited)

 

  Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.339% of average daily net assets, which includes the effect of a voluntary management fee rate waiver of 0.10% ending September 30, 2022, as well as the effect of a voluntary waiver on the Fund’s other expense by Advisors. The voluntary management fee rate waiver subsequently has been extended by Advisors through September 30, 2023.
• The Fund’s total expense ratio was in the 1st quintile of its Expense Group, while its actual management fee rate (including the waiver) and contractual management fee rate both ranked 2 out of 5 funds within its Expense Group. The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate were in the 1st, 4th and 2nd quintiles of its Expense Universe, respectively.
• The Fund was in the 3rd, 4th, 3rd quintiles of its Performance Group for the one-, three- and five-year periods, respectively, and ranked 1 out of 4 funds in its Performance Group for the ten-year period. The Fund was in the 2nd, 2nd, 2nd and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   

Lifecycle 2035 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.351% of average daily net assets, which includes the effect of a voluntary management fee rate waiver of 0.10% ending September 30, 2022, as well as the effect of a voluntary waiver on the Fund’s other expense by Advisors. The voluntary management fee rate waiver subsequently has been extended by Advisors through September 30, 2023.
• The Fund’s total expense ratio was in the 1st quintile of its Expense Group, while its actual management fee rate (including the waiver) and contractual management fee rate both ranked 3 out of 5 and 2 out of 5 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate were in the 1st, 5th and 2nd quintiles of its Expense Universe, respectively.
   
136 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

• The Fund was in the 3rd, 4th and 3rd quintiles of its Performance Group for the one-, three- and five-year periods, respectively, and ranked 1 out of 4 funds in its Performance Group for the ten-year period. The Fund was in the 2nd, 2nd, 2nd and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   

Lifecycle 2040 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.356% of average daily net assets, which includes the effect of a voluntary management fee rate waiver of 0.10% ending September 30, 2022, as well as the effect of a voluntary waiver on the Fund’s other expense by Advisors. The voluntary management fee rate waiver subsequently has been extended by Advisors through September 30, 2023.
• The Fund’s total expense ratio was in the 1st quintile of its Expense Group, while its actual management fee rate (including the waiver) and contractual management fee rate both ranked 2 out of 5 funds within its Expense Group. The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate were in the 1st, 4th and 2nd quintiles of its Expense Universe, respectively.
• The Fund was in the 3rd, 4th and 3rd quintiles of its Performance Group for the one-, three- and five-year periods, respectively, and ranked 1 out of 4 funds in its Performance Group for the ten-year period. The Fund was in the 2nd, 2nd, 2nd and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   

Lifecycle 2045 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate
   
TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 137
 

Approval of investment management agreement (unaudited)

 

  daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.362% of average daily net assets, which includes the effect of a voluntary management fee rate waiver of 0.10% ending September 30, 2022, as well as the effect of a voluntary waiver on the Fund’s other expense by Advisors. The voluntary management fee rate waiver subsequently has been extended by Advisors through September 30, 2023.
• The Fund’s total expense ratio was in the 1st quintile of its Expense Group, while its actual management fee rate (including the waiver) and contractual management fee rate ranked 3 out of 5 and 2 out of 5 funds within its Expense Group. The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate were in the 1st, 4th and 2nd quintiles of its Expense Universe, respectively.
• The Fund was in the 3rd quintile of its Performance Group for each of the one-, three- and five-year periods, and ranked 1 out of 4 funds in its Performance Group for the ten-year period. The Fund was in the 2nd, 2nd, 1st and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   

Lifecycle 2050 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.360% of average daily net assets, which includes the effect of a voluntary management fee rate waiver of 0.10% ending September 30, 2022, as well as the effect of a voluntary waiver on the Fund’s other expense by Advisors. The voluntary management fee rate waiver subsequently has been extended by Advisors through September 30, 2023.
• The Fund’s total expense ratio was in the 1st quintile of its Expense Group, while its actual management fee rate (including the waiver) and contractual management fee rate ranked 3 out of 5 and 2 out of 5 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate were in the 1st, 5th and 2nd quintiles of its Expense Universe, respectively.
• The Fund was in the 4th, 4th and 3rd quintiles of its Performance Group for the one-, three- and five-year periods, respectively, and ranked 1 out of 4 funds in its
   
138 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

continued

 

  Performance Group for the ten-year period. The Fund was in the 2nd, 2nd, 1st and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   

Lifecycle 2055 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.346% of average daily net assets, which includes the effect of a voluntary management fee rate waiver of 0.10% ending September 30, 2022, as well as the effect of a voluntary waiver on the Fund’s other expense by Advisors. The voluntary management fee rate waiver subsequently has been extended by Advisors through September 30, 2023.
• The Fund’s total expense ratio was in the 1st quintile of its Expense Group, while its actual management fee rate (including the waiver) and contractual management fee rate ranked 3 out of 5 and 2 out of 5 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate were in the 1st, 4th and 2nd quintiles of its Expense Universe, respectively.
• The Fund was in the 3rd, 4th and 1st quintiles of its Performance Group for the one-, three- and five-year periods, respectively. The Fund was in the 2nd, 2nd and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   

Lifecycle 2060 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective
   
TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 139
 
Approval of investment management agreement (unaudited) concluded

 

  management fee rate was 0.261% of average daily net assets, which includes the effect of a voluntary management fee rate waiver of 0.10% ending September 30, 2022, as well as the effect of a voluntary waiver on the Fund’s other expense by Advisors. The voluntary management fee rate waiver subsequently has been extended by Advisors through September 30, 2023.
• The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate ranked 1 out of 5, 2 out of 4 and 1 out of 4 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate (including the waiver) and contractual management fee rate were in the 1st, 4th and 2nd quintiles of its Expense Universe, respectively.
• The Fund ranked 3 out of 5, 4 out of 5 and 2 out of 4 funds within its Performance Group for the one- and three- and five-year periods, respectively, The Fund was in the 2nd, 2nd and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

 

 

 

Based primarily on the foregoing factors and considerations, the Board renewed the Agreement for each Fund.

 

140 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Liquidity risk management program

 

Discussion of the operation and effectiveness of the Funds’ liquidity risk management program

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), each series of the Trust covered by this Report (the “Funds”) has adopted and implemented a liquidity risk management program (the “Program”), which is reasonably designed to assess and manage the Funds’ liquidity risk. The Program consists of various provisions relating to assessing and managing Fund liquidity risk, as discussed further below. The Funds’ Board of Trustees (the “Board”) previously approved the designation of Advisors (the “Administrator”) as Program administrator. The Liquidity Monitoring and Analysis Team (the “LMAT”) carries out day-to-day Program management with oversight by the Liquidity Oversight Committee (the “LOSC”). Personnel from the Administrator and Nuveen Fund Advisors, LLC, an affiliate of the Administrator, comprise the LMAT and LOSC.

 

At a February 9, 2021 Board meeting, the Administrator provided the Board with a written report addressing the Program’s operation, adequacy, and effectiveness of implementation for the period from January 1, 2020 through December 31, 2020 (the “Review Period”), as required under the Liquidity Rule. The report noted that the Program has been and continues to be adequately and effectively implemented to monitor and (as applicable) respond to the Funds’ liquidity developments.

 

In accordance with the Program, the LMAT assesses each Fund’s liquidity risk no less frequently than annually based on various factors, such as (i) the Fund’s investment strategy and the liquidity of portfolio investments, (ii) cash flow projections, and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

 

Each Fund portfolio investment is classified into one of four liquidity categories (including “highly liquid investments” and “illiquid investments,” discussed below). The classification is based on a determination of how long it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading, and investment-specific considerations, as well as market depth, and utilize third-party vendor data.

 

Any Fund that does not primarily hold highly liquid investments must, among other things, determine a minimum percentage of Fund net assets that must be invested in highly liquid investments (a “Highly Liquid Investment Minimum”). During the Review Period, each Fund primarily held highly liquid investments and therefore was exempt from the requirement to adopt a Highly Liquid Investment Minimum and to comply with the related requirements under the Liquidity Rule.

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 141
 
Liquidity risk management program concluded

 

The Liquidity Rule also limits the Funds’ investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if doing so would result in the Fund holding more than 15% of its net assets in illiquid investments and requires certain reporting anytime a Fund’s holdings of illiquid investments exceed 15% of net assets. During the Review Period, no Fund exceeded the 15% limit on illiquid investments.

 

142 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

Additional information about index providers (unaudited)

 

Russell Indexes

 

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.

 

MSCI Indexes

 

Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)

 

Bloomberg Barclays Indexes

 

Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg's licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

 

Standard & Poor’s Index

 

The Indexes in the S&P Target Date Index Series are products of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”), and have been licensed

 

TIAA-CREF Lifecycle Funds  ■  2021 Annual Report 143
 
Additional information about index providers (unaudited) concluded

 

for use by the funds. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). It is not possible to invest directly in an index. The funds are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the funds or any member of the public regarding the advisability of investing in securities generally or in the funds particularly or the ability of the S&P Target Date Index Series to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices’ only relationship to the funds with respect to the S&P Target Date Index Series is the licensing of the Indexes and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The Indexes in the S&P Target Date Index Series are determined, composed and calculated by S&P Dow Jones Indices without regard to the funds. S&P Dow Jones Indices has no obligation to take the needs of the funds or the owners of the funds into consideration in determining, composing or calculating the S&P Target Date Index Series. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of the funds or the timing of the issuance or sale of fund shares or in the determination or calculation of the equation by which fund shares are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of the funds. There is no assurance that investment products based on the S&P Target Date Index Series will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment or tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.

 

S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P TARGET DATE INDEX SERIES OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY THE FUNDS, OWNERS OF THE FUNDS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P TARGET DATE INDEX SERIES OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND THE FUNDS, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.

 

144 2021 Annual Report  ■  TIAA-CREF Lifecycle Funds
 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

How to reach us

 

Websites

 

TIAA.org

 

nuveen.com

 

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

 

 

You should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other 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 Federal Deposit Insurance Corporation (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. Nuveen, a subsidiary of TIAA, provides investment advice and portfolio management services through a dozen affiliated registered investment advisers. Nuveen Securities, LLC and TIAA-CREF Individual & Institutional Services, LLC, members FINRA, distribute securities products.

 

This material is for informational or educational purposes only and does not constitute fiduciary investment advice under ERISA, a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor’s own objectives and circumstances.

 

 

©2021 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

 

1655020 A11067 (7/21)
 
  730 Third Avenue
New York, NY 10017-3206		  

 

 

 

Printed on paper containing recycled fiber

 

1655020 A11067 (7/21)
 
  730 Third Avenue
New York, NY 10017-3206		  

 

1655020 A11067 (7/21)
 
     
TIAA-CREF
Funds		 May 31,
2021
     

 

TIAA-CREF
Lifecycle Index Funds

The annual report contains the audited financial statements.

 

  Institutional Advisor Premier Retirement
Fund name Class Class Class Class
Lifecycle Index Retirement Income Fund TRILX TLIHX TLIPX TRCIX
Lifecycle Index 2010 Fund TLTIX TLTHX TLTPX TLTRX
Lifecycle Index 2015 Fund TLFIX TLFAX TLFPX TLGRX
Lifecycle Index 2020 Fund TLWIX TLWHX TLWPX TLWRX
Lifecycle Index 2025 Fund TLQIX TLQHX TLVPX TLQRX
Lifecycle Index 2030 Fund TLHIX TLHHX TLHPX TLHRX
Lifecycle Index 2035 Fund TLYIX TLYHX TLYPX TLYRX
Lifecycle Index 2040 Fund TLZIX TLZHX TLPRX TLZRX
Lifecycle Index 2045 Fund TLXIX TLMHX TLMPX TLMRX
Lifecycle Index 2050 Fund TLLIX TLLHX TLLPX TLLRX
Lifecycle Index 2055 Fund TTIIX TTIHX TTIPX TTIRX
Lifecycle Index 2060 Fund TVIIX TVIHX TVIPX TVITX
Lifecycle Index 2065 Fund TFITX TFIHX TFIPX TFIRX

 

Annual
Report

 

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the TIAA-CREF Funds’ (the “Funds”) annual and semiannual shareholder reports will not be sent to you by mail, unless you specifically request paper copies of the reports. Instead, they will be made available on TIAA’s website, TIAA.org, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive shareholder reports and other communications from the Funds electronically anytime by either (1) updating your account settings at TIAA.org/eDelivery, if you invest in the Funds directly or hold your Fund shares through a TIAA-affiliated financial intermediary, account or retirement plan (each, a “TIAA Account”), or (2) contacting your financial intermediary (such as a broker/dealer or bank) through which you hold Fund shares.

If you invest directly with the Funds or through a TIAA Account, you may elect to receive all future shareholder reports in paper free of charge by updating your account settings at TIAA.org/eDelivery or by calling 800-842-2252 during regular business hours. If you invest through another financial intermediary, you can contact your financial intermediary to request that you receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the fund complex if you invest directly with the Funds or through a TIAA Account, or to all funds held through your financial intermediary.

 

Contents

 


 

 

Understanding this report

 

This annual report contains information about certain TIAA-CREF Funds and describes their results for the twelve months ended May 31, 2021. The report contains four main sections:

  • A letter from Brad Finkle, President of the TIAA-CREF Fund Complex.
  • The fund performance section compares each fund’s investment returns with those of its composite benchmark and broad market index.
  • The portfolios of investments list the underlying TIAA-CREF Funds in which each fund had investments as of May 31, 2021.
  • 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. To see the risks of investing in any fund, please read the 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 websites at TIAA.org or nuveen.com, or call 800-842-2252. We urge you to read the prospectus carefully before investing.

 

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 3
 

Letter to investors

 

Global financial markets generated mostly positive results for the twelve months ended May 31, 2021, as the economic ramifications of the COVID-19 pandemic diminished. U.S. equities posted double-digit gains amid continued economic expansion during the period. Foreign stocks also soared, with emerging markets faring better than both international developed markets and domestic equities. U.S. fixed-income securities declined modestly as U.S. Treasury yields rose across longer-term maturities (bond prices move in the opposite direction of yields). These market conditions were reflected in the performance of the TIAA-CREF Lifecycle Index Funds by way of their investments in various asset classes through underlying funds.

 

  • All of the TIAA-CREF Lifecycle Index Funds delivered strong gains for the period but trailed the performance of their respective composite benchmarks. (All fund returns are for the Retirement Class.)
  • Returns for the Retirement Class ranged from 15.9% for the Lifecycle Index 2010 Fund to 39.3% for the Lifecycle Index 2060 Fund.
  • These results continued to support the solid performance of the TIAA-CREF Lifecycle Index Funds over longer periods of time.
  • On September 30, 2020, the TIAA-CREF Lifecycle Index 2065 Fund commenced operations.

 

U.S. and international stocks posted substantial gains

U.S. equities posted impressive gains for the twelve months as many businesses and restaurants resumed operations with the continual easing of COVID-19 restrictions. The broad domestic stock market, as represented by the Russell 3000® Index, advanced 43.9%. The U.S. economy expanded considerably during the third quarter of 2020 and continued its growth trajectory into the fourth quarter of 2020 and the first quarter of 2021. The Federal Reserve kept the federal funds target rate at 0.00%–0.25%, while the federal government took aggressive fiscal action with two large stimulus measures.

International stocks surpassed their U.S. counterparts. The MSCI EAFE+Emerging Markets (EM) Index, which measures the performance of leading stocks in 21 developed-markets countries outside North America and 27 emerging-markets countries, returned 42.2% in U.S.-dollar terms. In the fourth quarter of 2020 and the first quarter of 2021, the 19-nation euro area contracted, while China’s economy posted impressive growth—particularly in the first quarter of this year.

U.S. investment-grade bonds suffered a small loss as U.S. Treasury yields rose across longer-term maturities. The domestic investment-grade fixed-rate bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, returned –0.4% for the period.

 

4 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 



Brad Finkle

In investing, change is the only constant

As we enter the summer months and reflect on the transformative and challenging twelve-plus months of the COVID-19 pandemic, it’s heartening to see that businesses are reopening and people are returning to a more “normal” life. But the financial markets always look forward, and recent volatility reflects new concerns about inflation, interest rates, and the pace and duration of the global economic recovery.

In investing, as in life, speculation about what may happen in the future is never-ending. In fact, market fluctuation may be the only constant. As a result, we believe that adhering to a long-term financial plan and staying invested in a diversified portfolio that includes multiple asset classes are wise strategies to deal with the ever-present factors of risk and uncertainty. The TIAA-CREF Lifecycle Index Funds use dynamic diversification strategies designed to help mitigate the effects of market volatility and keep you on track to achieve your financial goals. Of course, diversification does not guarantee against market losses, and past performance cannot guarantee future results.

We thank you again for trusting us to manage your investments through the TIAA-CREF Lifecycle Index Funds. If you have any questions or concerns, please consult your financial advisor or call a TIAA financial consultant at 800-842-2252. You can also reach us online by visiting TIAA.org. We always stand ready to assist you.

 

/s/ Brad Finkle

 

Brad Finkle

President of the TIAA-CREF Fund Complex

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 5
 

Information for investors

 

Portfolio holdings

The complete portfolios of investments for the Lifecycle Index Funds begin on page 46 of this report. You can obtain complete lists of the holdings of the Lifecycle Index Funds and of the underlying funds in which the Lifecycle Index Funds invest as of the most recently completed fiscal quarter in the following ways:

  • By visiting our websites at TIAA.org or nuveen.com; or
  • By calling us at 800-842-2252 to request a copy, which will be provided free of charge.

You can also 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-PORT filings. Form N-CSR filings are as of May 31 or November 30; Form N-PORT 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 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 sec.gov. You can 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 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. The members of this team are responsible for the day-to-day investment management of the funds.

 

6 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

About the funds’ benchmarks

 

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 correspond to 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-markets countries outside North America—in Europe, Australasia and the Far East—and in 27 emerging-markets 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 (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).

 

Broad market indexes

The returns shown against the broad-based securities market index compare a fund’s average annual returns with a broad measure of market performance. The S&P Target Date Index Series represents a broadly derived consensus of asset class exposure for the target retirement dates in the series based on market observations acquired through an annual survey of target-date fund managers. The returns of the S&P Target Date Index Series reflect multi-asset class exposure for the same target dates as the Funds.

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 7
 

About the funds’ benchmarks

 

Russell 3000 is a trademark and service mark of Frank Russell Company. TIAA products are not promoted or sponsored by, or affiliated with, Frank Russell Company. 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. For additional details about the benchmark indexes, please read the funds’ latest prospectus.

 

8 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Important information about expenses

 

All shareholders of the TIAA-CREF Funds incur ongoing costs, including management fees and other fund expenses. They may also incur transactional costs for redemptions or account maintenance fees.

The expense examples that appear in this report are intended to help you understand your ongoing costs only (in U.S. dollars) and do not reflect transactional costs. 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 total costs for investing in the funds would be higher. Note also that shareholders of the TIAA-CREF Funds do not incur a sales charge for purchases, reinvested dividends or other distributions.

The examples are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (December 1, 2020–May 31, 2021).

 

Actual expenses

The first line of the two lines listed for each fund in the tables uses the Fund’s actual expenses and its actual rate of return. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the six-month period.

Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses paid during period” to estimate the expenses you paid during the six-month period. All of the funds have a contractual fee reimbursement. Had these not been in effect, fund expenses would have been higher.

 

Hypothetical example for comparison purposes

The second line in each Fund’s entry shows a hypothetical account value and hypothetical expenses based on the share class’ 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  ■  2021 Annual Report 9
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

Lifecycle Index Funds
Institutional Class		  Beginning
account
value
(12/1/20)		   Ending
account
value
(5/31/21)		   Expenses paid
during period*
(12/1/20–5/31/21)		 
Retirement Income Fund actual return  $1,000.00   $1,058.61                    $0.51 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
2010 Fund actual return   1,000.00    1,057.59    0.51 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
2015 Fund actual return   1,000.00    1,065.13    0.51 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
2020 Fund actual return   1,000.00    1,072.99    0.52 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
2025 Fund actual return   1,000.00    1,085.78    0.52 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
2030 Fund actual return   1,000.00    1,099.75    0.52 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
2035 Fund actual return   1,000.00    1,113.34    0.53 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
2040 Fund actual return   1,000.00    1,128.87    0.53 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
2045 Fund actual return   1,000.00    1,145.13    0.53 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
2050 Fund actual return   1,000.00    1,149.08    0.54 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
2055 Fund actual return   1,000.00    1,151.85    0.54 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
2060 Fund actual return   1,000.00    1,153.42    0.54 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
2065 Fund actual return   1,000.00    1,154.82    0.54 
5% annual hypothetical return   1,000.00    1,024.43    0.50 
                
10 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Important information about expenses

 

* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 on which this waiver or reimbursement is scheduled to end. Without 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 0.10% for the Retirement Income Fund, 0.10% for the 2010 Fund, 0.10% for the 2015 Fund, 0.10% for the 2020 Fund, 0.10% for the 2025 Fund, 0.10% for the 2030 Fund, 0.10% for the 2035 Fund, 0.10% for the 2040 Fund, 0.10% for the 2045 Fund, 0.10% for the 2050 Fund, 0.10% for the 2055 Fund, 0.10% for the 2060 Fund and 0.10% for the 2065 Fund.
   
TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 11
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

Lifecycle Index Funds
Advisor Class		  Beginning
account
value
(12/1/20)		   Ending
account
value
(5/31/21)		   Expenses paid
during period*
(12/1/20–5/31/21)		 
Retirement Income Fund actual return  $1,000.00   $1,057.53                      $1.08 
5% annual hypothetical return   1,000.00    1,023.88    1.06 
2010 Fund actual return   1,000.00    1,057.23    1.03 
5% annual hypothetical return   1,000.00    1,023.93    1.01 
2015 Fund actual return   1,000.00    1,064.75    1.03 
5% annual hypothetical return   1,000.00    1,023.93    1.01 
2020 Fund actual return   1,000.00    1,072.69    1.03 
5% annual hypothetical return   1,000.00    1,023.93    1.01 
2025 Fund actual return   1,000.00    1,085.32    1.04 
5% annual hypothetical return   1,000.00    1,023.93    1.01 
2030 Fund actual return   1,000.00    1,099.19    1.05 
5% annual hypothetical return   1,000.00    1,023.93    1.01 
2035 Fund actual return   1,000.00    1,112.83    1.05 
5% annual hypothetical return   1,000.00    1,023.93    1.01 
2040 Fund actual return   1,000.00    1,128.80    1.06 
5% annual hypothetical return   1,000.00    1,023.93    1.01 
2045 Fund actual return   1,000.00    1,144.68    1.07 
5% annual hypothetical return   1,000.00    1,023.93    1.01 
2050 Fund actual return   1,000.00    1,148.61    1.07 
5% annual hypothetical return   1,000.00    1,023.93    1.01 
2055 Fund actual return   1,000.00    1,150.91    1.07 
5% annual hypothetical return   1,000.00    1,023.93    1.01 
2060 Fund actual return   1,000.00    1,152.79    1.07 
5% annual hypothetical return   1,000.00    1,023.93    1.01 
2065 Fund actual return   1,000.00    1,156.11    1.34 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
                
12 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Important information about expenses

 

* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 on which this waiver or reimbursement is scheduled to end. Without 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 0.21% for the Retirement Income Fund, 0.20% for the 2010 Fund, 0.20% for the 2015 Fund, 0.20% for the 2020 Fund, 0.20% for the 2025 Fund, 0.20% for the 2030 Fund, 0.20% for the 2035 Fund, 0.20% for the 2040 Fund, 0.20% for the 2045 Fund, 0.20% for the 2050 Fund, 0.20% for the 2055 Fund, 0.20% for the 2060 Fund and 0.25% for the 2065 Fund.
   
TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 13
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

Lifecycle Index Funds
Premier Class		  Beginning
account
value
(12/1/20)		   Ending
account
value
(5/31/21)		   Expenses paid
during period*
(12/1/20–5/31/21)		 
Retirement Income Fund actual return  $1,000.00   $1,057.14                      $1.28 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
2010 Fund actual return   1,000.00    1,056.42    1.28 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
2015 Fund actual return   1,000.00    1,064.48    1.29 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
2020 Fund actual return   1,000.00    1,072.41    1.29 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
2025 Fund actual return   1,000.00    1,085.25    1.30 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
2030 Fund actual return   1,000.00    1,098.38    1.31 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
2035 Fund actual return   1,000.00    1,112.58    1.32 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
2040 Fund actual return   1,000.00    1,128.22    1.33 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
2045 Fund actual return   1,000.00    1,144.12    1.34 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
2050 Fund actual return   1,000.00    1,148.18    1.34 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
2055 Fund actual return   1,000.00    1,150.52    1.34 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
2060 Fund actual return   1,000.00    1,152.61    1.34 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
2065 Fund actual return   1,000.00    1,156.11    1.34 
5% annual hypothetical return   1,000.00    1,023.68    1.26 
                
14 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Important information about expenses

 

* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 on which this waiver or reimbursement is scheduled to end. Without 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 Income Fund, 0.25% for the 2010 Fund, 0.25% for the 2015 Fund, 0.25% for the 2020 Fund, 0.25% for the 2025 Fund, 0.25% for the 2030 Fund, 0.25% for the 2035 Fund, 0.25% for the 2040 Fund, 0.25% for the 2045 Fund, 0.25% for the 2050 Fund, 0.25% for the 2055 Fund, 0.25% for the 2060 Fund and 0.25% for the 2065 Fund.
   
TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 15
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

Lifecycle Index Funds
Retirement Class		  Beginning
account
value
(12/1/20)		   Ending
account
value
(5/31/21)		   Expenses paid
during period*
(12/1/20–5/31/21)		 
Retirement Income Fund actual return  $1,000.00   $1,056.81                       $1.79 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
2010 Fund actual return   1,000.00    1,055.71    1.79 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
2015 Fund actual return   1,000.00    1,063.60    1.80 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
2020 Fund actual return   1,000.00    1,071.61    1.81 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
2025 Fund actual return   1,000.00    1,084.62    1.82 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
2030 Fund actual return   1,000.00    1,098.28    1.83 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
2035 Fund actual return   1,000.00    1,112.04    1.84 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
2040 Fund actual return   1,000.00    1,127.72    1.86 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
2045 Fund actual return   1,000.00    1,143.31    1.87 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
2050 Fund actual return   1,000.00    1,147.47    1.87 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
2055 Fund actual return   1,000.00    1,149.94    1.88 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
2060 Fund actual return   1,000.00    1,152.01    1.88 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
2065 Fund actual return   1,000.00    1,154.90    1.88 
5% annual hypothetical return   1,000.00    1,023.19    1.77 
                
16 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Important information about expenses

 

* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 on which this waiver or reimbursement is scheduled to end. Without 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 0.35% for the Retirement Income Fund, 0.35% for the 2010 Fund, 0.35% for the 2015 Fund, 0.35% for the 2020 Fund, 0.35% for the 2025 Fund, 0.35% for the 2030 Fund, 0.35% for the 2035 Fund, 0.35% for the 2040 Fund, 0.35% for the 2045 Fund, 0.35% for the 2050 Fund, 0.35% for the 2055 Fund, 0.35% for the 2060 Fund and 0.35% for the 2065 Fund.
   
TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 17
 

Investment results of the Lifecycle Index Funds

 

Performance for the twelve months ended May 31, 2021

All of the TIAA-CREF Lifecycle Index Funds produced gains that generally approximated the performance of their respective composite benchmarks. Returns for the Retirement Class ranged from 15.91% for the 2010 Fund to 39.33% for the 2060 Fund. The performance tables show returns for all share classes of the funds.

   While lower, the funds’ returns were generally within range of their composite benchmarks, which represent market performance without any fees or expenses. For the twelve months, the difference between the individual Lifecycle Index Funds’ returns and those of their respective benchmarks ranged from 0.58 of a percentage point for the 2015 and 2020 Funds to 0.94 of a percentage point for the 2060 Fund. (All results for the Lifecycle Index Funds are for the Retirement Class.)

 

Economic recovery drove stocks sharply higher

The U.S. economy grew at a robust pace during the period, staging a strong recovery from the impact of the COVID-19 pandemic. Real gross domestic product (GDP), which measures the value of all goods and services produced in the United States, grew by 33.4% during the third quarter of 2020, bouncing back from a steep contraction the previous three months. GDP expanded by 4.3% during the fourth quarter of 2020 and 6.4% during the first three months of 2021 (the latter according to the government’s “second” estimate). Unemployment declined steadily from 11.1% at the start of the period to 5.8% in May 2021. Core inflation, which includes all items except food and energy, rose by 3.8% over the twelve months ended May 31, 2021. Oil prices rose sharply during the period.

The Federal Reserve left the federal funds target rate unchanged over the twelve-month period, maintaining the key short-term interest-rate measure at 0.00%–0.25%.

Domestic and foreign stocks generated strong gains for the period. The Russell 3000® Index, a broad measure of the U.S. stock market, climbed 43.91%. The MSCI EAFE+Emerging Markets (EM) Index, which measures the performance of leading stocks in 21 developed-markets countries outside North America and 27 emerging-markets countries, advanced 42.18% in U.S.-dollar terms.

U.S. investment-grade bond performance was hindered by the impact of rising yields on longer-term securities (bond prices move in the opposite direction of yields). The broad domestic investment-grade fixed-rate bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, returned –0.40% for the period. Short-term bonds, as measured by the Bloomberg Barclays U.S. 1–3 Year Government/Credit Index, gained 0.80%.

 

18 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Stock funds delivered largest gains

The Lifecycle Index Funds may invest in up to five sectors of the investment market: 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 funds that are managed to track individual benchmark indexes.

For the twelve-month period, the funds’ absolute returns—that is, without regard to the performance of their respective composite benchmarks—benefited most from gains achieved by U.S. and foreign stock funds. The Emerging Markets Equity Index Fund recorded the best performance among all of the underlying funds. The Equity Index Fund and the International Equity Index Fund also turned in strong results. Fixed-income returns were mixed. The Inflation-Linked Bond Fund generated the best gain, while the Short-Term Bond Index Fund advanced modestly and the Bond Index Fund recorded a small decline.

 

Funds with larger equity weightings generated higher returns

The Lifecycle Index Funds with larger equity allocations generated higher returns. As examples, the 2050, 2055 and 2060 Funds all allocated at least 90% of their assets to stocks and produced gains in excess of 38.0% for the period. By comparison, the 2010 Fund, which aims to invest 60% of its assets in fixed-income sectors, returned just under 16.0%. (Performance of the Lifecycle Index Funds’ underlying funds can be found at TIAA.org/performance.)

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 19
 

Lifecycle Index Retirement Income Fund

 

Performance as of May 31, 2021

Lifecycle Index Retirement Income Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years   10 years   gross   net 
Institutional Class  9/30/09   16.36%   8.14%   6.65%   0.26%   0.10%
Advisor Class  12/4/15   16.16    8.08    6.49†   0.37    0.22 
Premier Class  9/30/09   16.12    7.97    6.49    0.41    0.25 
Retirement Class  9/30/09   16.04    7.86    6.38    0.51    0.35 
Lifecycle Index Retirement Income Fund Composite Index‡  —   16.65    8.21    6.76    —    — 
Broad market index                            
S&P Target Date Retirement Income Index  —   11.69    6.36    5.27    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, 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 + Emerging Markets 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.

 

20 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index Retirement Income Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

   % of net
assets as of
5/31/21		   % of target
allocation
for 6/30/21		 
Equity          
U.S. equity   28.01    28.00 
International equity   12.17    12.00 
Fixed income          
Fixed income   39.95    40.00 
Short-term fixed income   9.99    10.00 
Inflation-protected assets   10.02    10.00 
Other assets & liabilities, net   –0.14    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 21
 

Lifecycle Index 2010 Fund

 

Performance as of May 31, 2021

Lifecycle Index 2010 Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years   10 years   gross   net 
Institutional Class  9/30/09   16.22%   8.26%   6.89%   0.25%   0.10%
Advisor Class  12/4/15   16.18    8.22    6.75†   0.33    0.18 
Premier Class  9/30/09   15.99    8.08    6.73    0.40    0.25 
Retirement Class  9/30/09   15.91    7.98    6.62    0.50    0.35 
Lifecycle Index 2010 Fund Composite Index‡  —   16.51    8.38    7.01    —    — 
Broad market index
S&P Target Date 2010 Index		  —   14.64    7.28    5.99    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle Index 2010 Fund Composite Index consisted of: 40.0% Bloomberg Barclays U.S. Aggregate Bond Index; 27.4% Russell 3000® Index; 11.7% MSCI EAFE + Emerging Markets Index; 10.9% 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.

 

22 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2010 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

   % of net
assets as of
5/31/21		   % of target
allocation
for 6/30/21		 
Equity          
U.S. equity   27.34    27.30 
International equity   11.77    11.70 
Fixed income          
Fixed income   39.92    40.00 
Short-term fixed income   10.85    11.00 
Inflation-protected assets   9.99    10.00 
Other assets & liabilities, net   0.13    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 23
 

Lifecycle Index 2015 Fund

 

Performance as of May 31, 2021

Lifecycle Index 2015 Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years   10 years   gross   net 
Institutional Class  9/30/09   18.16%   8.90%   7.37%   0.23%   0.10%
Advisor Class  12/4/15   18.05    8.85    7.23†   0.31    0.18 
Premier Class  9/30/09   18.00    8.75    7.21    0.38    0.25 
Retirement Class  9/30/09   17.88    8.63    7.11    0.48    0.35 
Lifecycle Index 2015 Fund Composite Index‡  —   18.46    9.01    7.48    —    — 
Broad market index
S&P Target Date 2015 Index		  —   16.93    8.02    6.63    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle Index 2015 Fund Composite Index consisted of: 39.2% Bloomberg Barclays U.S. Aggregate Bond Index; 30.8% Russell 3000® Index; 13.2% MSCI EAFE + Emerging Markets Index; 8.4% Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index; and 8.4% 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 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2015 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

   % of net
assets as of
5/31/21		   % of target
allocation
for 6/30/21		 
Equity          
U.S. equity   30.81    30.80 
International equity   13.39    13.20 
Fixed income          
Fixed income   39.00    39.20 
Short-term fixed income   8.31    8.40 
Inflation-protected assets   8.35    8.40 
Other assets & liabilities, net   0.14    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 25
 

Lifecycle Index 2020 Fund

 

Performance as of May 31, 2021

Lifecycle Index 2020 Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years   10 years   gross   net 
Institutional Class  9/30/09   20.14%   9.64%   7.94%   0.21%   0.10%
Advisor Class  12/4/15   20.00    9.55    7.77†   0.32    0.21 
Premier Class  9/30/09   19.89    9.47    7.77    0.36    0.25 
Retirement Class  9/30/09   19.85    9.36    7.67    0.46    0.35 
Lifecycle Index 2020 Fund Composite Index‡  —   20.43    9.74    8.05    —    — 
Broad market index
S&P Target Date 2020 Index		  —   18.34    8.60    7.14    —    — 

 

The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit TIAA.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle Index 2020 Fund Composite Index consisted of: 38.2% Bloomberg Barclays U.S. Aggregate Bond Index; 34.3% Russell 3000® Index; 14.7% MSCI EAFE + Emerging Markets Index; 6.4% Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index; and 6.4% 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.

 

26 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2020 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

   % of net
assets as of
5/31/21		   % of target
allocation
for 6/30/21		 
Equity          
U.S. equity   34.30    34.30 
International equity   14.90    14.70 
Fixed income          
Fixed income   38.03    38.20 
Short-term fixed income   6.33    6.40 
Inflation-protected assets   6.35    6.40 
Other assets & liabilities, net   0.09    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 27
 

Lifecycle Index 2025 Fund

 

Performance as of May 31, 2021

Lifecycle Index 2025 Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years   10 years   gross   net 
Institutional Class  9/30/09   23.29%   10.61%   8.62%   0.20%   0.10%
Advisor Class  12/4/15   23.20    10.52    8.45†   0.30    0.20 
Premier Class  9/30/09   23.11    10.45    8.46    0.35    0.25 
Retirement Class  9/30/09   22.99    10.32    8.35    0.46    0.35 
Lifecycle Index 2025 Fund Composite Index‡  —   23.66    10.71    8.73    —    — 
Broad market index
S&P Target Date 2025 Index		  —   22.88    9.71    7.84    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle Index 2025 Fund Composite Index consisted of: 39.6% Russell 3000® Index; 34.7% Bloomberg Barclays U.S. Aggregate Bond Index; 16.9% MSCI EAFE + Emerging Markets Index; 4.4% Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index; and 4.4% 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.

 

28 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2025 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

    % of net
assets as of
5/31/21		    % of target
allocation
for 6/30/21		 
Equity          
U.S. equity   39.49    39.48 
International equity   17.16    16.92 
Fixed income          
Fixed income   34.55    34.80 
Short-term fixed income   4.33    4.40 
Inflation-protected assets   4.35    4.40 
Other assets & liabilities, net   0.12    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 29
 

Lifecycle Index 2030 Fund

 

Performance as of May 31, 2021

Lifecycle Index 2030 Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years   10 years   gross   net 
Institutional Class  9/30/09   26.70%   11.58%   9.29%   0.20%   0.10%
Advisor Class  12/4/15   26.54    11.49    9.12†   0.30    0.20 
Premier Class  9/30/09   26.45    11.41    9.13    0.35    0.25 
Retirement Class  9/30/09   26.40    11.31    9.03    0.45    0.35 
Lifecycle Index 2030 Fund Composite Index‡  —   27.06    11.69    9.41    —    — 
Broad market index
S&P Target Date 2030 Index		  —   27.24    10.69    8.48    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle Index 2030 Fund Composite Index consisted of: 45.2% Russell 3000® Index; 30.7% Bloomberg Barclays U.S. Aggregate Bond Index; 19.3% MSCI EAFE + Emerging Markets Index; 2.4% Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index; and 2.4% 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.

 

30 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2030 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

    % of net
assets as of
5/31/21		    % of target
allocation
for 6/30/21		 
Equity          
U.S. equity   45.08    45.08 
International equity   19.58    19.32 
Fixed income          
Fixed income   30.55    30.80 
Short-term fixed income   2.34    2.40 
Inflation-protected assets   2.35    2.40 
Other assets & liabilities, net   0.10    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle index Funds  ■  2021 Annual Report 31
 

Lifecycle Index 2035 Fund

 

Performance as of May 31, 2021

Lifecycle Index 2035 Fund        Average annual  Annual operating
      Total Return  total return  expenses*#
   Inception                    
   date  1 year   5 years   10 years   gross   net 
Institutional Class  9/30/09   30.12%   12.55%   9.94%   0.19%   0.10%
Advisor Class  12/4/15   30.03    12.49    9.78†   0.29    0.20 
Premier Class  9/30/09   29.90    12.39    9.77    0.34    0.25 
Retirement Class  9/30/09   29.81    12.28    9.67    0.44    0.35 
Lifecycle Index 2035 Fund Composite Index‡  —   30.54    12.65    10.06    —    — 
Broad market index                            
S&P Target Date 2035 Index  —   32.22    11.72    9.12    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle Index 2035 Fund Composite Index consisted of: 50.8% Russell 3000® Index; 26.7% Bloomberg Barclays U.S. Aggregate Bond Index; 21.7% MSCI EAFE + Emerging Markets Index; 0.4% Bloomberg Barclays U.S. 1-3 Year Government/Credit Bond Index; and 0.4% 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.

 

32 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2035 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

   % of net   % of target 
   assets as of   allocation 
   5/31/21   for 6/30/21 
Equity          
U.S. equity   50.61    50.68 
International equity   21.99    21.72 
Fixed income          
Fixed income   26.55    26.80 
Short-term fixed income   0.35    0.40 
Inflation-protected assets   0.35    0.40 
Other assets & liabilities, net   0.15    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 33
 

Lifecycle Index 2040 Fund

 

Performance as of May 31, 2021

Lifecycle Index 2040 Fund        Average annual  Annual operating
      Total Return  total return  expenses*#
   Inception                    
   date  1 year   5 years   10 years   gross   net 
Institutional Class  9/30/09   33.87%   13.51%   10.53%   0.19%   0.10%
Advisor Class  12/4/15   33.78    13.43    10.37†   0.28    0.19 
Premier Class  9/30/09   33.69    13.34    10.37    0.34    0.25 
Retirement Class  9/30/09   33.55    13.22    10.26    0.44    0.35 
Lifecycle Index 2040 Fund Composite Index‡  —   34.30    13.59    10.64    —    — 
Broad market index                            
S&P Target Date 2040 Index  —   35.70    12.43    9.56    —    — 

 

The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit TIAA.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle Index 2040 Fund Composite Index consisted of: 56.4% Russell 3000® Index; 24.1% MSCI EAFE + Emerging Markets Index; and 19.5% 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.

 

34 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2040 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

   % of net   % of target 
   assets as of   allocation 
   5/31/21   for 6/30/21 
Equity          
U.S. equity   56.15    56.28 
International equity   24.43    24.12 
Fixed income   19.28    19.60 
Other assets & liabilities, net   0.14    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 35
 

Lifecycle Index 2045 Fund

 

Performance as of May 31, 2021

Lifecycle Index 2045 Fund        Average annual  Annual operating
      Total Return  total return  expenses*#
   Inception                    
   date  1 year   5 years   10 years   gross   net 
Institutional Class  9/30/09   37.71%   14.19%   10.87%   0.19%   0.10%
Advisor Class  12/4/15   37.58    14.10    10.70†   0.29    0.21 
Premier Class  9/30/09   37.48    14.03    10.70    0.33    0.25 
Retirement Class  9/30/09   37.32    13.91    10.59    0.43    0.35 
Lifecycle Index 2045 Fund Composite Index‡  —   38.17    14.28    10.98    —    — 
Broad market index                            
S&P Target Date 2045 Index  —   37.83    12.86    9.85    —    — 

 

The returns in this report show past performance, which is no guarantee of future results. The returns do not reflect taxes that a shareholder would pay on fund distributions or on the sale of fund shares. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your shares. For current performance information, including performance to the most recent month-end, please visit TIAA.org. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle Index 2045 Fund Composite Index consisted of: 62.0% Russell 3000® Index; 26.5% MSCI EAFE + Emerging Markets Index; and 11.5% 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.

 

36 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2045 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

   % of net   % of target 
   assets as of   allocation 
   5/31/21   for 6/30/21 
Equity          
U.S. equity   61.69    61.88 
International equity   26.80    26.52 
Fixed income   11.32    11.60 
Other assets & liabilities, net   0.19    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 37
 

Lifecycle Index 2050 Fund

 

Performance as of May 31, 2021

Lifecycle Index 2050 Fund        Average annual  Annual operating
      Total Return  total return  expenses*#
   Inception                    
   date  1 year   5 years   10 years   gross   net 
Institutional Class  9/30/09   38.50%   14.38%   10.97%   0.19%   0.10%
Advisor Class  12/4/15   38.42    14.30    10.80†   0.28    0.20 
Premier Class  9/30/09   38.36    14.22    10.81    0.34    0.25 
Retirement Class  9/30/09   38.15    14.10    10.69    0.44    0.35 
Lifecycle Index 2050 Fund Composite Index‡  —   39.04    14.47    11.08    —    — 
Broad market index                            
S&P Target Date 2050 Index  —   38.92    13.15    10.07    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle Index 2050 Fund Composite Index consisted of: 63.7% Russell 3000® Index; 27.3% MSCI EAFE + Emerging Markets Index; and 9.0% 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.

 

38 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2050 Fund

 

$10,000 over 10 years

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

   % of net   % of target 
   assets as of   allocation 
   5/31/21   for 6/30/21 
Equity          
U.S. equity   63.36    63.70 
International equity   27.52    27.30 
Fixed income   8.90    9.00 
Other assets & liabilities, net   0.22    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 39
 

Lifecycle Index 2055 Fund

 

Performance as of May 31, 2021

Lifecycle Index 2055 Fund        Average annual  Annual operating
      Total Return  total return  expenses*#
   Inception                    
   date  1 year   5 years   10 years   gross   net 
Institutional Class  4/29/11   39.14%   14.52%   11.05%   0.20%   0.10%
Advisor Class  12/4/15   38.98    14.45    10.88†   0.29    0.20 
Premier Class  4/29/11   38.91    14.34    10.88    0.35    0.25 
Retirement Class  4/29/11   38.76    14.24    10.77    0.46    0.35 
Lifecycle Index 2055 Fund Composite Index‡  —   39.66    14.62    11.16    —    — 
Broad market index                            
S&P Target Date 2055 Index  —   39.49    13.31    10.24    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle Index 2055 Fund Composite Index consisted of: 64.6% Russell 3000® Index; 27.7% MSCI EAFE + Emerging Markets Index; and 7.7% 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.

 

40 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2055 Fund

 

$10,000 over 10 years

 

Retirement Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

   % of net   % of target 
   assets as of   allocation 
   5/31/21   for 6/30/21 
Equity          
U.S. equity   64.18    64.58 
International equity   27.87    27.67 
Fixed income   7.66    7.75 
Other assets & liabilities, net   0.29    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 41
 

Lifecycle Index 2060 Fund

 

Performance as of May 31, 2021

Lifecycle Index 2060 Fund        Average annual  Annual operating
      Total Return  total return  expenses*#
   Inception          since         
   date  1 year   5 years   inception   gross   net 
Institutional Class  9/26/14   39.68%   14.66%   11.39%   0.26%   0.10%
Advisor Class  12/4/15   39.51    14.60    11.28†   0.35    0.20 
Premier Class  9/26/14   39.44    14.49    11.22    0.41    0.25 
Retirement Class  9/26/14   39.33    14.37    11.11    0.51    0.35 
Lifecycle Index 2060 Fund Composite Index‡  —   40.27    14.76    11.50§    —    — 
Broad market index                            
S&P Target Date 2060+ Index  —   39.42    13.45    10.50§    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Retirement Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Retirement Class.
‡ As of the close of business on May 31, 2021, the Lifecycle Index 2060 Fund Composite Index consisted of: 65.5% Russell 3000® Index; 28.0% MSCI EAFE + Emerging Markets Index; and 6.5% 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.

 

42 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2060 Fund

 

$10,000 invested at Fund’s inception

 

Retirement Class (inception September 26, 2014)

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

   % of net   % of target 
   assets as of   allocation 
   5/31/21   for 6/30/21 
Equity          
U.S. equity   64.94    65.45 
International equity   28.25    28.05 
Fixed income   6.41    6.50 
Other assets & liabilities, net   0.40    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 43
 

Lifecycle Index 2065 Fund

 

Performance as of May 31, 2021

Lifecycle Index 2065 Fund     Average annual  Annual operating
      total return  expenses*#
   Inception  since         
   date  inception   gross   net 
Institutional Class  9/30/20   26.45%   3.12%   0.10%
Advisor Class  9/30/20   26.48    3.20    0.18 
Premier Class  9/30/20   26.48    3.29    0.25 
Retirement Class  9/30/20   26.35    3.40    0.35 
Lifecycle Index 2065 Fund Composite Index‡  —   26.90§   —    — 
Broad market index                  
S&P Target Date 2060+ Index  —   27.51§    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual waiver or reimbursement of various expenses. The expense reimbursements and waivers will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements and waivers, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
‡ As of the close of business on May 31, 2021, the Lifecycle Index 2065 Fund Composite Index consisted of: 66.4% Russell 3000® Index; 28.4% MSCI EAFE + Emerging Markets Index; and 5.2% 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.

 

44 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Lifecycle Index 2065 Fund

 

$10,000 invested at Fund’s inception

 

Retirement Class (inception September 30, 2020)

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

   % of net   % of target 
   assets as of   allocation 
   5/31/21   for 6/30/21 
Equity          
U.S. equity   65.82    66.33 
International equity   28.62    28.42 
Fixed income   5.17    5.25 
Other assets & liabilities, net   0.39    — 
Total   100.00    100.00 

Target allocation

For June 30, 2021

 


 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 45
 

Portfolio of investments

 

Lifecycle Index Retirement Income Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—100.1%a
FIXED INCOME—39.9%             
 22,201,888   TIAA-CREF Bond Index Fund     $249,105,184    39.9%
     TOTAL FIXED INCOME      249,105,184    39.9 
INFLATION-PROTECTED ASSETS—10.0%
 4,997,118   TIAA-CREF Inflation-Linked Bond Fund      62,513,946    10.0 
     TOTAL INFLATION-PROTECTED ASSETS      62,513,946    10.0 
INTERNATIONAL EQUITY—12.2%
 1,768,054   TIAA-CREF Emerging Markets Equity Index Fund      24,982,599    4.0 
 2,172,729   TIAA-CREF International Equity Index Fund      50,885,316    8.2 
     TOTAL INTERNATIONAL EQUITY      75,867,915    12.2 
SHORT-TERM FIXED INCOME—10.0%
 6,152,855   TIAA-CREF Short-Term Bond Index Fund      62,266,888    10.0 
     TOTAL SHORT-TERM FIXED INCOME      62,266,888    10.0 
U.S. EQUITY—28.0%
 5,593,217   TIAA-CREF Equity Index Fund      174,676,156    28.0 
     TOTAL U.S. EQUITY      174,676,156    28.0 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $512,427,844)   624,430,089    100.1 
                   
     TOTAL PORTFOLIO  (Cost $512,427,844)   624,430,089    100.1 
     OTHER ASSETS & LIABILITIES, NET      (848,386)   (0.1)
     NET ASSETS     $623,581,703    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
46 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Portfolio of investments

 

Lifecycle Index 2010 Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a
FIXED INCOME—39.9%
 24,473,371   TIAA-CREF Bond Index Fund     $274,591,219    39.9%
     TOTAL FIXED INCOME      274,591,219    39.9 
INFLATION-PROTECTED ASSETS—10.0%
 5,496,584   TIAA-CREF Inflation-Linked Bond Fund      68,762,271    10.0 
     TOTAL INFLATION-PROTECTED ASSETS      68,762,271    10.0 
INTERNATIONAL EQUITY—11.8%
 1,896,655   TIAA-CREF Emerging Markets Equity Index Fund      26,799,736    3.9 
 2,314,390   TIAA-CREF International Equity Index Fund      54,203,015    7.9 
     TOTAL INTERNATIONAL EQUITY      81,002,751    11.8 
SHORT-TERM FIXED INCOME—10.9%
 7,375,345   TIAA-CREF Short-Term Bond Index Fund      74,638,492    10.9 
     TOTAL SHORT-TERM FIXED INCOME      74,638,492    10.9 
U.S. EQUITY—27.3%
 6,022,735   TIAA-CREF Equity Index Fund      188,090,003    27.3 
     TOTAL U.S. EQUITY      188,090,003    27.3 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $534,258,514)   687,084,736    99.9 
                   
     TOTAL PORTFOLIO  (Cost $534,258,514)   687,084,736    99.9 
     OTHER ASSETS & LIABILITIES, NET      916,381    0.1 
     NET ASSETS     $688,001,117    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 47
 

Portfolio of investments

 

Lifecycle Index 2015 Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a
FIXED INCOME—39.0%
 41,323,307   TIAA-CREF Bond Index Fund     $463,647,507    39.0%
     TOTAL FIXED INCOME      463,647,507    39.0 
INFLATION-PROTECTED ASSETS—8.4%
 7,933,774   TIAA-CREF Inflation-Linked Bond Fund      99,251,517    8.4 
     TOTAL INFLATION-PROTECTED ASSETS      99,251,517    8.4 
INTERNATIONAL EQUITY—13.4%
 3,699,802   TIAA-CREF Emerging Markets Equity Index Fund      52,278,209    4.4 
 4,561,287   TIAA-CREF International Equity Index Fund      106,825,353    9.0 
     TOTAL INTERNATIONAL EQUITY      159,103,562    13.4 
SHORT-TERM FIXED INCOME—8.3%
 9,766,112   TIAA-CREF Short-Term Bond Index Fund      98,833,056    8.3 
     TOTAL SHORT-TERM FIXED INCOME      98,833,056    8.3 
U.S. EQUITY—30.8%
 11,725,554   TIAA-CREF Equity Index Fund      366,189,047    30.8 
     TOTAL U.S. EQUITY      366,189,047    30.8 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $892,143,590)   1,187,024,689    99.9 
                   
     TOTAL PORTFOLIO  (Cost $892,143,590)   1,187,024,689    99.9 
     OTHER ASSETS & LIABILITIES, NET      1,633,396    0.1 
     NET ASSETS     $1,188,658,085    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
48 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Portfolio of investments

 

Lifecycle Index 2020 Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a
FIXED INCOME—38.0%
 114,105,791   TIAA-CREF Bond Index Fund     $1,280,266,970    38.0%
     TOTAL FIXED INCOME      1,280,266,970    38.0 
INFLATION-PROTECTED ASSETS—6.4%
 17,096,929   TIAA-CREF Inflation-Linked Bond Fund      213,882,586    6.4 
     TOTAL INFLATION-PROTECTED ASSETS      213,882,586    6.4 
INTERNATIONAL EQUITY—14.9%
 11,671,474   TIAA-CREF Emerging Markets Equity Index Fund      164,917,923    4.9 
 14,383,673   TIAA-CREF International Equity Index Fund      336,865,632    10.0 
     TOTAL INTERNATIONAL EQUITY      501,783,555    14.9 
SHORT-TERM FIXED INCOME—6.3%
 21,051,284   TIAA-CREF Short-Term Bond Index Fund      213,038,991    6.3 
     TOTAL SHORT-TERM FIXED INCOME      213,038,991    6.3 
U.S. EQUITY—34.3%
 36,985,285   TIAA-CREF Equity Index Fund      1,155,050,461    34.3 
     TOTAL U.S. EQUITY      1,155,050,461    34.3 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $2,565,522,012)   3,364,022,563    99.9 
                   
     TOTAL PORTFOLIO  (Cost $2,565,522,012)   3,364,022,563    99.9 
     OTHER ASSETS & LIABILITIES, NET      3,161,941    0.1 
     NET ASSETS     $3,367,184,504    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 49
 

Portfolio of investments

 

Lifecycle Index 2025 Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a
FIXED INCOME—34.5%
 161,006,921   TIAA-CREF Bond Index Fund     $1,806,497,651    34.5%
     TOTAL FIXED INCOME      1,806,497,651    34.5 
INFLATION-PROTECTED ASSETS—4.4%
 18,182,255   TIAA-CREF Inflation-Linked Bond Fund      227,460,010    4.4 
     TOTAL INFLATION-PROTECTED ASSETS      227,460,010    4.4 
INTERNATIONAL EQUITY—17.2%
 20,851,693   TIAA-CREF Emerging Markets Equity Index Fund      294,634,428    5.7 
 25,722,005   TIAA-CREF International Equity Index Fund      602,409,367    11.5 
     TOTAL INTERNATIONAL EQUITY      897,043,795    17.2 
SHORT-TERM FIXED INCOME—4.3%
 22,391,632   TIAA-CREF Short-Term Bond Index Fund      226,603,313    4.3 
     TOTAL SHORT-TERM FIXED INCOME      226,603,313    4.3 
U.S. EQUITY—39.5%
 66,124,744   TIAA-CREF Equity Index Fund      2,065,075,759    39.5 
     TOTAL U.S. EQUITY      2,065,075,759    39.5 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $3,977,337,751)   5,222,680,528    99.9 
                   
     TOTAL PORTFOLIO  (Cost $3,977,337,751)   5,222,680,528    99.9 
     OTHER ASSETS & LIABILITIES, NET      6,251,816    0.1 
     NET ASSETS     $5,228,932,344    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
50 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Portfolio of investments

 

Lifecycle Index 2030 Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a
FIXED INCOME—30.6%
 162,333,831   TIAA-CREF Bond Index Fund     $1,821,385,578    30.6%
     TOTAL FIXED INCOME      1,821,385,578    30.6 
INFLATION-PROTECTED ASSETS—2.3%
 11,199,731   TIAA-CREF Inflation-Linked Bond Fund      140,108,631    2.3 
     TOTAL INFLATION-PROTECTED ASSETS      140,108,631    2.3 
INTERNATIONAL EQUITY—19.6%
 27,155,561   TIAA-CREF Emerging Markets Equity Index Fund      383,708,083    6.4 
 33,471,733   TIAA-CREF International Equity Index Fund      783,907,996    13.2 
     TOTAL INTERNATIONAL EQUITY      1,167,616,079    19.6 
SHORT-TERM FIXED INCOME—2.3%
 13,782,926   TIAA-CREF Short-Term Bond Index Fund      139,483,213    2.3 
     TOTAL SHORT-TERM FIXED INCOME      139,483,213    2.3 
U.S. EQUITY—45.1%
 86,053,785   TIAA-CREF Equity Index Fund      2,687,459,705    45.1 
     TOTAL U.S. EQUITY      2,687,459,705    45.1 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $4,429,321,512)   5,956,053,206    99.9 
                   
     TOTAL PORTFOLIO  (Cost $4,429,321,512)   5,956,053,206    99.9 
     OTHER ASSETS & LIABILITIES, NET      5,915,393    0.1 
     NET ASSETS     $5,961,968,599    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 51
 

Portfolio of investments

 

Lifecycle Index 2035 Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a
FIXED INCOME—26.5%
 133,331,556   TIAA-CREF Bond Index Fund     $1,495,980,055    26.5%
     TOTAL FIXED INCOME      1,495,980,055    26.5 
INFLATION-PROTECTED ASSETS—0.4%
 1,584,253   TIAA-CREF Inflation-Linked Bond Fund      19,819,004    0.4 
     TOTAL INFLATION-PROTECTED ASSETS      19,819,004    0.4 
INTERNATIONAL EQUITY—22.0%
 28,811,272   TIAA-CREF Emerging Markets Equity Index Fund      407,103,280    7.2 
 35,517,520   TIAA-CREF International Equity Index Fund      831,820,323    14.8 
     TOTAL INTERNATIONAL EQUITY      1,238,923,603    22.0 
SHORT-TERM FIXED INCOME—0.4%
 1,950,475   TIAA-CREF Short-Term Bond Index Fund      19,738,808    0.4 
     TOTAL SHORT-TERM FIXED INCOME      19,738,808    0.4 
U.S. EQUITY—50.6%
 91,320,427   TIAA-CREF Equity Index Fund      2,851,936,932    50.6 
     TOTAL U.S. EQUITY      2,851,936,932    50.6 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $4,051,966,152)   5,626,398,402    99.9 
                   
     TOTAL PORTFOLIO  (Cost $4,051,966,152)   5,626,398,402    99.9 
     OTHER ASSETS & LIABILITIES, NET      8,404,713    0.1 
     NET ASSETS     $5,634,803,115    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
52 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Portfolio of investments

 

Lifecycle Index 2040 Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a
FIXED INCOME—19.3%
 99,885,096   TIAA-CREF Bond Index Fund     $1,120,710,772    19.3%
     TOTAL FIXED INCOME      1,120,710,772    19.3 
INTERNATIONAL EQUITY—24.4%
 33,053,108   TIAA-CREF Emerging Markets Equity Index Fund      467,040,420    8.0 
 40,685,218   TIAA-CREF International Equity Index Fund      952,847,817    16.4 
     TOTAL INTERNATIONAL EQUITY      1,419,888,237    24.4 
U.S. EQUITY—56.2%
 104,530,990   TIAA-CREF Equity Index Fund      3,264,502,828    56.2 
     TOTAL U.S. EQUITY      3,264,502,828    56.2 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $3,999,416,847)   5,805,101,837    99.9 
                   
     TOTAL PORTFOLIO  (Cost $3,999,416,847)   5,805,101,837    99.9 
     OTHER ASSETS & LIABILITIES, NET      8,046,612    0.1 
     NET ASSETS     $5,813,148,449    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 53
 

Portfolio of investments

 

Lifecycle Index 2045 Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.8%a
FIXED INCOME—11.3%
 43,737,892   TIAA-CREF Bond Index Fund     $490,739,152    11.3%
     TOTAL FIXED INCOME      490,739,152    11.3 
INTERNATIONAL EQUITY—26.8%
 27,007,453   TIAA-CREF Emerging Markets Equity Index Fund      381,615,305    8.8 
 33,304,087   TIAA-CREF International Equity Index Fund      779,981,716    18.0 
     TOTAL INTERNATIONAL EQUITY      1,161,597,021    26.8 
U.S. EQUITY—61.7%
 85,608,030   TIAA-CREF Equity Index Fund      2,673,538,792    61.7 
     TOTAL U.S. EQUITY      2,673,538,792    61.7 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $3,000,661,868)   4,325,874,965    99.8 
                   
     TOTAL PORTFOLIO  (Cost $3,000,661,868)   4,325,874,965    99.8 
     OTHER ASSETS & LIABILITIES, NET      8,150,357    0.2 
     NET ASSETS     $4,334,025,322    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
54 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Portfolio of investments

 

Lifecycle Index 2050 Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.8%a
FIXED INCOME—8.9%
 28,093,614   TIAA-CREF Bond Index Fund     $315,210,351    8.9%
     TOTAL FIXED INCOME      315,210,351    8.9 
INTERNATIONAL EQUITY—27.5%
 22,658,540   TIAA-CREF Emerging Markets Equity Index Fund      320,165,163    9.0 
 27,939,114   TIAA-CREF International Equity Index Fund      654,334,058    18.5 
     TOTAL INTERNATIONAL EQUITY      974,499,221    27.5 
U.S. EQUITY—63.4%
 71,835,784   TIAA-CREF Equity Index Fund      2,243,431,529    63.4 
     TOTAL U.S. EQUITY      2,243,431,529    63.4 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $2,468,758,213)   3,533,141,101    99.8 
                   
     TOTAL PORTFOLIO  (Cost $2,468,758,213)   3,533,141,101    99.8 
     OTHER ASSETS & LIABILITIES, NET      7,718,018    0.2 
     NET ASSETS     $3,540,859,119    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 55
 

Portfolio of investments

 

Lifecycle Index 2055 Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.7%a
FIXED INCOME—7.6%
 12,136,971   TIAA-CREF Bond Index Fund     $136,176,814    7.6%
     TOTAL FIXED INCOME      136,176,814    7.6 
INTERNATIONAL EQUITY—27.9%
 11,529,813   TIAA-CREF Emerging Markets Equity Index Fund      162,916,255    9.2 
 14,210,707   TIAA-CREF International Equity Index Fund      332,814,749    18.7 
     TOTAL INTERNATIONAL EQUITY      495,731,004    27.9 
U.S. EQUITY—64.2%
 36,551,417   TIAA-CREF Equity Index Fund      1,141,500,745    64.2 
     TOTAL U.S. EQUITY      1,141,500,745    64.2 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $1,295,956,032)   1,773,408,563    99.7 
                   
     TOTAL PORTFOLIO  (Cost $1,295,956,032)   1,773,408,563    99.7 
     OTHER ASSETS & LIABILITIES, NET      5,178,976    0.3 
     NET ASSETS     $1,778,587,539    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
56 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

Portfolio of investments

 

Lifecycle Index 2060 Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.6%a
FIXED INCOME—6.4%
 4,012,590   TIAA-CREF Bond Index Fund     $45,021,261    6.4%
     TOTAL FIXED INCOME      45,021,261    6.4 
INTERNATIONAL EQUITY—28.3%
 4,632,018   TIAA-CREF Emerging Markets Equity Index Fund      65,450,409    9.3 
 5,681,827   TIAA-CREF International Equity Index Fund      133,068,383    19.0 
     TOTAL INTERNATIONAL EQUITY      198,518,792    28.3 
U.S. EQUITY—64.9%
 14,612,682   TIAA-CREF Equity Index Fund      456,354,065    64.9 
     TOTAL U.S. EQUITY      456,354,065    64.9 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $538,441,861)   699,894,118    99.6 
                   
     TOTAL PORTFOLIO  (Cost $538,441,861)   699,894,118    99.6 
     OTHER ASSETS & LIABILITIES, NET      2,827,787    0.4 
     NET ASSETS     $702,721,905    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 57
 

Portfolio of investments

 

Lifecycle Index 2065 Fund  ■  May 31, 2021

 

Shares   Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.6%a
FIXED INCOME—5.2%
 41,872   TIAA-CREF Bond Index Fund     $469,800    5.2%
     TOTAL FIXED INCOME      469,800    5.2 
INTERNATIONAL EQUITY—28.6%
 60,829   TIAA-CREF Emerging Markets Equity Index Fund      859,510    9.4 
 74,337   TIAA-CREF International Equity Index Fund      1,740,976    19.2 
     TOTAL INTERNATIONAL EQUITY      2,600,486    28.6 
U.S. EQUITY—65.8%
 191,520   TIAA-CREF Equity Index Fund      5,981,161    65.8 
     TOTAL U.S. EQUITY      5,981,161    65.8 
     TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $7,688,916)   9,051,447    99.6 
                   
     TOTAL PORTFOLIO  (Cost $7,688,916)   9,051,447    99.6 
     OTHER ASSETS & LIABILITIES, NET      35,206    0.4 
     NET ASSETS     $9,086,653    100.0%

 

 

 

a The Fund invests its assets in Class W shares of the affiliated TIAA-CREF Funds.
     
58 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

[This page intentionally left blank.]

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 59
 

Statements of assets and liabilities

 

TIAA-CREF Funds  ■  May 31, 2021

 

   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‡       $624,430,089    $687,084,736   $1,187,024,689   $3,364,022,563     $5,222,680,528      $5,956,053,206 
Cash   861,284    —    1,053,028    4,372,024    9,169,863    5,985,869 
Receivable from securities transactions   798,532    3,081,608    1,694,264    5,125,638    9,043,608    11,758,163 
Receivable from Fund shares sold   318,858    678,719    980,152    3,461,524    5,122,699    5,069,930 
Dividends receivable   447,406    493,017    815,042    2,213,970    3,049,553    3,022,618 
Due from affiliates   72,388    75,323    114,332    285,742    405,903    428,581 
Other   15,048    25,814    47,533    102,791    126,419    134,464 
Total assets   626,943,605    691,439,217    1,191,729,040    3,379,584,252    5,249,598,573    5,982,452,831 
LIABILITIES                              
Management fees payable   100,528    110,021    185,797    514,451    767,239    846,342 
Service agreement fees payable   10,826    17,759    27,213    68,248    104,590    109,334 
Distribution fees payable   3,208    5,532    12,455    40,048    58,917    59,833 
Due to affiliates   4,458    4,590    5,208    7,976    9,969    10,704 
Overdraft payable   —    2,492,407    —    —    —    — 
Payable for securities transactions   1,437,957    344,457    2,282,045    8,070,268    15,649,989    14,424,945 
Payable for Fund shares redeemed   1,762,448    409,609    479,129    3,514,239    3,808,084    4,725,482 
Payable for trustee compensation   15,374    26,177    48,166    104,579    129,109    137,502 
Accrued expenses and other payables   27,103    27,548    30,942    79,939    138,332    170,090 
Total liabilities   3,361,902    3,438,100    3,070,955    12,399,748    20,666,229    20,484,232 
NET ASSETS  $623,581,703   $688,001,117   $1,188,658,085   $3,367,184,504   $5,228,932,344   $5,961,968,599 
NET ASSETS CONSIST OF:                              
Paid-in-capital  $511,625,569   $532,284,070   $883,557,055     $2,539,722,320   $3,965,703,256   $4,437,379,686 
Total distributable earnings (loss)   111,956,134    155,717,047    305,101,030    827,462,184    1,263,229,088    1,524,588,913 
NET ASSETS  $623,581,703       $688,001,117     $1,188,658,085   $3,367,184,504   $5,228,932,344   $5,961,968,599 
INSTITUTIONAL CLASS:                              
Net assets  $547,545,081   $560,852,072   $962,219,545   $2,729,083,605   $4,263,285,986   $4,966,053,161 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   31,841,491    30,938,041    50,239,803    131,845,777    190,658,414    206,238,940 
Net asset value per share  $17.20   $18.13   $19.15   $20.70   $22.36   $24.08 
ADVISOR CLASS:                              
Net assets  $2,241,752   $1,950,433   $1,396,275   $11,420,208   $17,472,379   $23,351,592 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   130,391    107,581    72,948    552,510    782,905    971,335 
Net asset value per share  $17.19   $18.13   $19.14   $20.67   $22.32   $24.04 
PREMIER CLASS:                              
Net assets  $25,448,602   $43,665,028   $98,139,909   $316,253,121   $466,891,759   $475,692,701 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   1,480,895    2,417,428    5,147,231    15,357,433    20,976,368    19,857,757 
Net asset value per share  $17.18   $18.06   $19.07   $20.59   $22.26   $23.96 
RETIREMENT CLASS:                              
Net assets  $48,346,268   $81,533,584   $126,902,356   $310,427,570   $481,282,220   $496,871,145 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   2,817,549    4,539,076    6,678,665    15,129,581    21,725,419    20,835,549 
Net asset value per share  $17.16   $17.96   $19.00   $20.52   $22.15   $23.85 
‡   Affiliated investments, cost  $512,427,844   $534,258,514   $892,143,590   $2,565,522,012   $3,977,337,751   $4,429,321,512 
                               
60 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 61
 
Statements of assets and liabilities concluded

 

TIAA-CREF Funds  ■  May 31, 2021

 

   Lifecycle Index
2035 Fund		   Lifecycle Index
2040 Fund		   Lifecycle Index
2045 Fund		   Lifecycle Index
2050 Fund		   Lifecycle Index
2055 Fund		   Lifecycle Index
2060 Fund		   Lifecycle Index
2065 Fund		 
ASSETS                                   
Affiliated investments, at value‡     $5,626,398,402      $5,805,101,837      $4,325,874,965      $3,533,141,101      $1,773,408,563        $699,894,118              $9,051,447 
Cash   7,419,995    6,984,446    5,626,415    5,888,233    3,124,966    1,561,773    6,193 
Receivable from securities transactions   11,835,720    14,372,219    10,350,580    8,049,826    3,974,639    1,779,049    22,158 
Receivable from Fund shares sold   6,127,013    6,119,506    6,076,797    6,050,392    4,196,862    2,421,969    35,718 
Dividends receivable   2,419,989    1,802,802    786,427    508,776    218,543    71,956    737 
Due from affiliates   368,632    357,749    253,891    214,648    116,824    57,717    14,319 
Other   124,776    134,620    83,860    62,945    24,830    6,752    22 
Total assets   5,654,694,527    5,834,873,179    4,349,052,935    3,553,915,921    1,785,065,227    705,793,334    9,130,594 
LIABILITIES                                   
Management fees payable   770,634    774,924    562,276    456,526    226,843    88,718    1,120 
Service agreement fees payable   97,770    94,491    71,211    61,564    32,585    12,476    41 
Distribution fees payable   58,974    55,807    44,135    37,038    17,778    5,069    80 
Due to affiliates   10,259    10,525    8,656    7,704    5,554    4,355    3,720 
Overdraft payable   —    —    —    —    —    —    — 
Payable for securities transactions   15,742,782    17,131,400    12,349,002    10,861,680    5,530,244    2,717,567    33,123 
Payable for Fund shares redeemed   2,927,289    3,368,630    1,781,147    1,455,042    567,817    193,403    2 
Payable for trustee compensation   127,628    137,584    86,037    64,714    25,658    7,064    26 
Accrued expenses and other payables   156,076    151,369    125,149    112,534    71,209    42,777    5,829 
Total liabilities   19,891,412    21,724,730    15,027,613    13,056,802    6,477,688    3,071,429    43,941 
NET ASSETS  $5,634,803,115   $5,813,148,449   $4,334,025,322   $3,540,859,119   $1,778,587,539   $702,721,905   $9,086,653 
NET ASSETS CONSIST OF:                                   
Paid-in-capital  $4,067,005,415   $4,017,059,845   $3,018,403,009   $2,484,743,422   $1,306,045,186   $544,053,323   $7,723,284 
Total distributable earnings (loss)   1,567,797,700    1,796,088,604    1,315,622,313    1,056,115,697    472,542,353    158,668,582    1,363,369 
NET ASSETS  $5,634,803,115   $5,813,148,449   $4,334,025,322   $3,540,859,119   $1,778,587,539   $702,721,905   $9,086,653 
INSTITUTIONAL CLASS:                                   
Net assets  $4,697,188,596   $4,914,220,478   $3,640,347,148   $2,948,578,365   $1,478,110,632   $600,347,616   $7,130,600 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   182,240,399    180,727,278    130,115,793    104,362,718    65,124,972    34,267,943    572,646 
Net asset value per share  $25.77   $27.19   $27.98   $28.25   $22.70   $17.52   $12.45 
ADVISOR CLASS:                                   
Net assets  $15,230,692   $16,071,153   $12,840,336   $10,851,369   $8,250,533   $5,527,341   $626,069 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   591,951    591,788    459,811    384,707    364,097    315,704    50,259 
Net asset value per share  $25.73   $27.16   $27.93   $28.21   $22.66   $17.51   $12.46 
PREMIER CLASS:                                   
Net assets  $470,422,138   $447,061,455   $352,495,560   $295,691,030   $142,662,478   $40,943,470   $636,674 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   18,353,949    16,534,739    12,664,485    10,526,076    6,307,046    2,341,664    51,116 
Net asset value per share  $25.63   $27.04   $27.83   $28.09   $22.62   $17.48   $12.46 
RETIREMENT CLASS:                                   
Net assets  $451,961,689   $435,795,363   $328,342,278   $285,738,355   $149,563,896   $55,903,478   $693,310 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   17,712,613    16,181,479    11,853,555    10,221,807    6,629,571    3,205,655    55,714 
Net asset value per share  $25.52   $26.93   $27.70   $27.95   $22.56   $17.44   $12.44 
‡   Affiliated investments, cost  $4,051,966,152   $3,999,416,847   $3,000,661,868   $2,468,758,213   $1,295,956,032   $538,441,861   $7,688,916 
                                    
62 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 63
 

Statements of operations

 

TIAA-CREF Funds  ■  For the year ended May 31, 2021

 

   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         $10,311,969           $11,476,546        $20,086,662   $56,629,266   $83,240,826   $91,959,969 
Total income   10,311,969    11,476,546    20,086,662    56,629,266    83,240,826    91,959,969 
                               
EXPENSES                              
Management fees   1,084,281    1,195,311    2,055,488    5,621,530    8,027,077    8,606,265 
Shareholder servicing — Institutional Class   10,075    6,455    7,048    15,843    15,417    17,277 
Shareholder servicing — Advisor Class   1,622    714    1,239    7,687    9,313    13,256 
Shareholder servicing — Premier Class   105    90    117    231    305    293 
Shareholder servicing — Retirement Class   110,227    199,387    311,424    784,293    1,149,041    1,171,501 
Distribution fees — Premier Class   40,302    55,748    137,801    434,563    620,135    607,667 
Registration fees   65,494    64,287    65,794    70,646    75,043    77,797 
Administrative service fees   40,908    41,589    47,583    73,552    93,070    99,593 
Professional fees   15,846    15,910    17,417    24,068    29,072    30,459 
Trustee fees and expenses   6,390    7,025    12,404    34,704    50,900    56,166 
Other expenses   112,593    120,753    167,974    415,773    611,207    671,437 
Total expenses   1,487,843    1,707,269    2,824,289    7,482,890    10,680,580    11,351,711 
Less: Expenses reimbursed by the investment adviser   (187,282)   (185,016)   (199,466)   (317,428)   (434,937)   (489,190)
Fee waiver by investment adviser and Nuveen Securities   (595,275)   (656,074)   (1,082,081)   (2,843,168)   (3,870,887)   (3,935,814)
Net expenses   705,286    866,179    1,542,742    4,322,294    6,374,756    6,926,707 
Net investment income (loss)   9,606,683    10,610,367    18,543,920    52,306,972    76,866,070    85,033,262 
                               
NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS              
Realized gain (loss) from sale of affiliated investments   6,268,038    10,682,953    27,794,956    60,297,261    47,590,654    27,429,367 
Realized gain distributions from affiliated investments   1,896,061    2,159,290    3,552,984    9,603,431    12,561,996    12,062,169 
Realized gain (loss) from sale of unaffiliated investments   (83,305)   —    —    —    —    — 
Net realized gain (loss) from investments   8,080,794    12,842,243    31,347,940    69,900,692    60,152,650    39,491,536 
Net change in unrealized appreciation (depreciation) from affiliated investments   67,871,509    70,795,592    134,741,041    443,123,278    810,056,672    1,055,965,505 
Net realized and unrealized gain (loss) from investments   75,952,303    83,637,835    166,088,981    513,023,970    870,209,322    1,095,457,041 
Net increase (decrease) in net assets from operations  $85,558,986   $94,248,202   $184,632,901         $565,330,942        $947,075,392     $1,180,490,303 
                               
64 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 65
 
Statements of operations concluded
   
TIAA-CREF Funds  ■  For the year ended May 31, 2021  
   
   Lifecycle Index
2035 Fund		   Lifecycle Index
2040 Fund		   Lifecycle Index
2045 Fund		   Lifecycle Index
2050 Fund		   Lifecycle Index
2055 Fund		   Lifecycle Index
2060 Fund		   Lifecycle Index
2065 Fund§		 
                                    
INVESTMENT INCOME                                   
Dividends from affiliated investments    $85,717,369   $87,249,444   $62,265,727   $50,091,315   $23,617,450   $8,428,934   $96,295 
Total income   85,717,369    87,249,444    62,265,727    50,091,315    23,617,450    8,428,934    96,295 
                                    
EXPENSES                                   
Management fees   7,753,822    7,790,851    5,522,418    4,446,934    2,105,382    757,603    6,685 
Shareholder servicing — Institutional Class   16,308    18,092    15,637    17,181    13,417    13,062    1,826 
Shareholder servicing — Advisor Class   8,812    7,809    7,190    5,989    4,373    2,871    1,527 
Shareholder servicing — Premier Class   288    278    243    217    185    133    1,541 
Shareholder servicing — Retirement Class   1,052,282    1,000,528    736,288    645,154    348,154    119,338    2,661 
Distribution fees — Premier Class   594,626    541,183    426,622    359,961    161,569    41,794    575 
Registration fees   69,301    71,269    66,321    66,538    65,005    62,694    89,374 
Administrative service fees   95,000    96,527    79,526    70,893    51,356    40,001    25,824 
Professional fees   29,088    29,327    25,154    23,119    18,428    15,555    14,002 
Trustee fees and expenses   52,230    53,754    38,923    31,497    14,834    5,310    38 
Other expenses   609,463    618,566    481,608    418,799    226,567    120,494    33,515 
Total expenses   10,281,220    10,228,184    7,399,930    6,086,282    3,009,270    1,178,855    177,568 
Less: Expenses reimbursed by the investment adviser   (461,514)   (463,615)   (393,772)   (378,839)   (273,855)   (213,638)   (168,342)
Fee waiver by investment adviser and Nuveen Securities   (3,351,619)   (3,258,332)   (2,210,423)   (1,782,097)   (833,504)   (301,293)   (2,635)
Net expenses   6,468,087    6,506,237    4,795,735    3,925,346    1,901,911    663,924    6,591 
Net investment income (loss)   79,249,282    80,743,207    57,469,992    46,165,969    21,715,539    7,765,010    89,704 
                                    
NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS                 
Realized gain (loss) from sale of affiliated investments   18,994,077    19,398,087    3,502,571    733,535    (1,216,469)   (488,485)   917 
Realized gain distributions from affiliated investments   9,570,588    6,993,222    2,895,682    1,939,948    787,185    235,176    2,212 
Realized gain (loss) from sale of unaffiliated investments   —    —    —    —    —    (152)   279 
Net realized gain (loss) from investments   28,564,665    26,391,309    6,398,253    2,673,483    (429,284)   (253,461)   3,408 
Net change in unrealized appreciation (depreciation) from affiliated investments   1,119,326,981    1,296,453,349    1,049,794,069    868,582,425    418,136,772    151,099,298    1,362,531 
Net realized and unrealized gain (loss) from investments   1,147,891,646    1,322,844,658    1,056,192,322    871,255,908    417,707,488    150,845,837    1,365,939 
Net increase (decrease) in net assets from operations  $1,227,140,928     $1,403,587,865     $1,113,662,314        $917,421,877        $439,423,027         $158,610,847            $1,455,643 
§ For the period September 30, 2020 to May 31, 2021.
   
66 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 67
 

Statements of changes in net assets

 

TIAA-CREF Funds  ■  For the period or year ended

 

      Lifecycle Index Retirement Income Fund  Lifecycle Index 2010 Fund  Lifecycle Index 2015 Fund
      May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020 
                            
OPERATIONS                                 
Net investment income (loss)  $9,606,683   $9,999,845   $10,610,367   $11,340,949   $18,543,920   $22,155,468 
Net realized gain (loss) from investments   8,080,794    (1,901,952)   12,842,243    (688,796)   31,347,940    (1,405,140)
Net change in unrealized appreciation (depreciation) from affiliated investments   67,871,509    23,290,186    70,795,592    26,877,289    134,741,041    51,478,456 
Net increase (decrease) in net assets from operations   85,558,986    31,388,079    94,248,202    37,529,442    184,632,901    72,228,784 
                                  
DISTRIBUTIONS TO SHAREHOLDERS                      
   Institutional Class   (10,719,953)   (8,965,127)   (12,730,910)   (9,420,155)   (24,713,823)   (19,014,280)
   Advisor Class   (27,271)   (29,859)   (11,125)   (2,781)   (55,732)   (12,473)
   Premier Class   (475,508)   (696,931)   (844,649)   (764,977)   (2,362,930)   (2,144,320)
   Retirement Class   (839,863)   (839,397)   (1,726,732)   (1,584,095)   (3,021,603)   (2,790,646)
Total distributions      (12,062,595)   (10,531,314)   (15,313,416)   (11,772,008)   (30,154,088)   (23,961,719)
                                  
SHAREHOLDER TRANSACTIONS                           
Subscriptions:  Institutional Class   191,059,210    218,936,807    204,675,178    150,337,322    256,019,114    275,486,482 
   Advisor Class   1,151,737    1,932,945    2,040,506    3,001    2,283,793    441,470 
   Premier Class   5,387,782    4,136,935    14,807,214    6,402,768    17,437,097    9,883,404 
   Retirement Class   16,656,962    18,247,325    21,371,071    20,378,677    23,321,006    28,892,475 
Reinvestments of distributions:  Institutional Class   9,891,486    8,308,363    12,335,607    9,130,272    24,089,091    18,485,431 
   Advisor Class   24,677    27,086    8,082    —    52,169    9,565 
   Premier Class   401,241    627,297    649,065    576,947    2,030,375    1,736,116 
   Retirement Class   839,553    839,068    1,726,732    1,584,095    3,021,603    2,790,647 
Redemptions:  Institutional Class   (154,741,004)   (114,157,477)   (162,616,004)   (72,350,030)   (261,631,976)   (164,612,219)
   Advisor Class   (103,505)   (1,039,449)   (293,271)   —    (1,658,284)   (33,853)
   Premier Class   (13,145,146)   (6,699,145)   (7,935,555)   (9,856,228)   (19,377,422)   (25,534,337)
   Retirement Class   (10,549,640)   (19,996,474)   (26,196,110)   (21,578,978)   (39,554,431)   (47,170,736)
Net increase (decrease) from shareholder transactions   46,873,353    111,163,281    60,572,515    84,627,846    6,032,135    100,374,445 
Net increase (decrease) in net assets   120,369,744    132,020,046    139,507,301    110,385,280    160,510,948    148,641,510 
                                  
NET ASSETS                                 
Beginning of period   503,211,959    371,191,913    548,493,816    438,108,536    1,028,147,137    879,505,627 
End of period     $623,581,703   $503,211,959   $688,001,117   $548,493,816   $1,188,658,085   $1,028,147,137 
                                  
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   11,729,754    14,694,972    11,895,936    9,534,748    14,121,658    16,668,093 
   Advisor Class   69,635    129,393    115,954    215    122,916    26,702 
   Premier Class   328,083    279,073    857,362    413,105    966,252    603,597 
   Retirement Class   1,034,496    1,226,980    1,248,175    1,318,280    1,280,351    1,774,638 
Shares reinvested:  Institutional Class   606,170    566,464    708,535    574,231    1,317,064    1,109,570 
   Advisor Class   1,507    1,848    464    —    2,854    574 
   Premier Class   24,708    42,676    37,389    36,377    111,437    104,585 
   Retirement Class   51,449    57,036    99,984    100,386    166,388    168,619 
Shares redeemed:  Institutional Class   (9,450,485)   (7,745,476)   (9,353,376)   (4,620,687)   (14,411,717)   (10,088,563)
   Advisor Class   (6,247)   (76,923)   (16,521)   —    (88,396)   (2,117)
   Premier Class   (800,784)   (452,497)   (461,304)   (632,796)   (1,078,201)   (1,562,217)
   Retirement Class   (647,992)   (1,345,058)   (1,521,120)   (1,380,562)   (2,195,503)   (2,887,454)
Net increase (decrease) from shareholder transactions   2,940,294    7,378,488    3,611,478    5,343,297    315,103    5,916,027 
           
68 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 69
 
Statements of changes in net assets continued
   
TIAA-CREF Funds  ■  For the period or year ended  
   
      Lifecycle Index 2020 Fund  Lifecycle Index 2025 Fund  Lifecycle Index 2030 Fund
      May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020 
                            
OPERATIONS                                 
Net investment income (loss)  $52,306,972   $57,841,070   $76,866,070   $77,287,473   $85,033,262   $82,287,548 
Net realized gain (loss) from investments   69,900,692    (7,986,715)   60,152,650    (10,762,047)   39,491,536    (10,596,269)
Net change in unrealized appreciation (depreciation) from affiliated investments   443,123,278    136,948,347    810,056,672    175,425,295    1,055,965,505    177,175,196 
Net increase (decrease) in net assets from operations   565,330,942    186,802,702    947,075,392    241,950,721    1,180,490,303    248,866,475 
                                  
DISTRIBUTIONS TO SHAREHOLDERS                          
   Institutional Class   (59,350,887)   (47,265,526)   (82,165,521)   (61,882,352)   (89,228,567)   (68,257,501)
   Advisor Class   (138,305)   (106,244)   (187,460)   (46,935)   (221,354)   (84,189)
   Premier Class   (6,260,956)   (6,001,263)   (8,459,860)   (7,669,546)   (7,879,150)   (7,448,255)
   Retirement Class   (6,560,542)   (6,638,471)   (8,941,972)   (8,988,441)   (8,721,340)   (8,749,573)
Total distributions   (72,310,690)   (60,011,504)   (99,754,813)   (78,587,274)   (106,050,411)   (84,539,518)
                                  
SHAREHOLDER TRANSACTIONS                          
Subscriptions:  Institutional Class   702,553,353    830,193,214    1,165,705,174    1,244,518,379    1,321,985,086    1,302,791,628 
   Advisor Class   8,409,953    4,320,846    14,368,483    1,923,615    18,010,084    4,556,025 
   Premier Class   46,561,317    32,790,549    78,190,697    49,154,107    78,554,197    43,562,836 
   Retirement Class   53,648,706    70,125,141    81,639,842    95,012,622    87,820,262    93,165,489 
Reinvestments of distributions:  Institutional Class   57,085,062    45,586,269    78,478,792    59,244,104    86,314,543    66,014,974 
   Advisor Class   135,232    103,403    184,443    44,115    218,383    81,277 
   Premier Class   4,958,387    4,773,985    6,556,141    6,043,989    6,544,917    6,362,260 
   Retirement Class   6,560,541    6,638,471    8,941,972    8,988,441    8,721,340    8,749,573 
Redemptions:  Institutional Class   (648,385,502)   (384,017,042)   (817,662,750)   (378,209,118)   (779,002,362)   (332,938,822)
   Advisor Class   (3,012,073)   (384,918)   (1,458,004)   (230,073)   (2,975,477)   (280,697)
   Premier Class   (49,438,854)   (41,281,500)   (51,651,674)   (44,822,610)   (39,349,260)   (42,172,053)
   Retirement Class   (103,546,576)   (108,195,577)   (118,617,109)   (113,733,979)   (118,598,827)   (99,155,440)
Net increase (decrease) from shareholder transactions   75,529,546    460,652,841    444,676,007    927,933,592    668,242,886    1,050,737,050 
Net increase (decrease) in net assets   568,549,798    587,444,039    1,291,996,586    1,091,297,039    1,742,682,778    1,215,064,007 
                                  
NET ASSETS                                 
Beginning of period   2,798,634,706    2,211,190,667    3,936,935,758    2,845,638,719    4,219,285,821    3,004,221,814 
End of period     $3,367,184,504   $2,798,634,706   $5,228,932,344   $3,936,935,758   $5,961,968,599   $4,219,285,821 
                                  
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   36,277,439    47,406,231    56,100,150    67,266,664    59,733,903    66,948,983 
   Advisor Class   424,790    247,404    688,505    105,983    797,998    232,187 
   Premier Class   2,386,110    1,896,433    3,793,312    2,710,168    3,538,775    2,280,482 
   Retirement Class   2,765,304    4,060,106    3,928,447    5,243,010    3,966,169    4,882,191 
Shares reinvested:  Institutional Class   2,905,092    2,569,688    3,729,981    3,151,282    3,846,459    3,322,344 
   Advisor Class   6,885    5,835    8,779    2,349    9,745    4,095 
   Premier Class   253,367    270,328    312,793    322,690    292,969    321,651 
   Retirement Class   336,438    376,972    428,461    481,954    391,970    443,916 
Shares redeemed:  Institutional Class   (33,359,287)   (22,275,501)   (39,311,519)   (20,837,720)   (35,125,172)   (17,505,515)
   Advisor Class   (153,543)   (21,412)   (67,729)   (12,295)   (129,075)   (15,196)
   Premier Class   (2,578,410)   (2,404,780)   (2,525,387)   (2,473,559)   (1,819,139)   (2,235,731)
   Retirement Class   (5,341,634)   (6,235,251)   (5,728,505)   (6,185,839)   (5,351,773)   (5,120,482)
Net increase (decrease) from shareholder transactions   3,922,551    25,896,053    21,357,288    49,774,687    30,152,829    53,558,925 
           
70 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 71
 
Statements of changes in net assets continued
   
TIAA-CREF Funds  ■  For the period or year ended  
   
      Lifecycle Index 2035 Fund  Lifecycle Index 2040 Fund  Lifecycle Index 2045 Fund
      May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020 
                            
OPERATIONS                                 
Net investment income (loss)  $79,249,282   $74,497,633   $80,743,207   $77,343,070   $57,469,992   $52,004,630 
Net realized gain (loss) from investments   28,564,665    (7,128,597)   26,391,309    (6,955,353)   6,398,253    (1,467,360)
Net change in unrealized appreciation (depreciation) from affiliated investments   1,119,326,981    154,902,423    1,296,453,349    151,181,293    1,049,794,069    89,244,274 
Net increase (decrease) in net assets from operations   1,227,140,928    222,271,459    1,403,587,865    221,569,010    1,113,662,314    139,781,544 
                                  
DISTRIBUTIONS TO SHAREHOLDERS                     
   Institutional Class   (82,185,463)   (62,098,684)   (83,659,458)   (67,356,967)   (54,740,019)   (44,810,822)
   Advisor Class   (153,634)   (65,909)   (131,413)   (67,557)   (105,720)   (49,289)
   Premier Class   (7,680,349)   (7,206,604)   (6,708,888)   (6,397,082)   (4,787,925)   (4,911,571)
   Retirement Class   (7,749,057)   (7,973,672)   (7,058,535)   (7,569,623)   (4,714,349)   (5,580,972)
Total distributions   (97,768,503)   (77,344,869)   (97,558,294)   (81,391,229)   (64,348,013)   (55,352,654)
                                  
SHAREHOLDER TRANSACTIONS                          
Subscriptions:  Institutional Class   1,241,437,681    1,163,653,447    1,149,358,957    1,072,690,067    939,605,770    864,379,658 
   Advisor Class   10,974,172    2,804,473    12,207,148    1,545,264    9,715,991    1,467,232 
   Premier Class   78,268,375    45,246,452    82,514,378    42,977,457    61,217,669    38,116,232 
   Retirement Class   75,491,056    81,244,619    83,180,775    76,793,463    61,598,832    63,033,407 
Reinvestments of distributions:  Institutional Class   79,186,655    60,042,625    81,363,405    65,713,552    52,966,805    43,648,069 
   Advisor Class   150,602    62,904    128,407    64,494    102,944    46,191 
   Premier Class   6,335,010    6,163,529    5,966,697    5,808,191    4,266,206    4,454,664 
   Retirement Class   7,749,057    7,973,672    7,058,535    7,569,623    4,714,349    5,580,972 
Redemptions:  Institutional Class   (708,354,007)   (255,951,791)   (716,339,444)   (216,178,284)   (498,315,421)   (150,706,405)
   Advisor Class   (1,412,301)   (327,459)   (1,355,923)   (560,337)   (1,360,605)   (261,189)
   Premier Class   (39,105,175)   (32,006,666)   (28,603,553)   (29,355,809)   (22,075,495)   (22,219,264)
   Retirement Class   (103,950,144)   (92,556,210)   (109,354,690)   (92,884,129)   (82,098,171)   (61,969,623)
Net increase (decrease) from shareholder transactions   646,770,981    986,349,595    566,124,692    934,183,552    530,338,874    785,569,944 
Net increase (decrease) in net assets   1,776,143,406    1,131,276,185    1,872,154,263    1,074,361,333    1,579,653,175    869,998,834 
                                  
NET ASSETS                                 
Beginning of period   3,858,659,709    2,727,383,524    3,940,994,186    2,866,632,853    2,754,372,147    1,884,373,313 
End of period     $5,634,803,115   $3,858,659,709   $5,813,148,449   $3,940,994,186   $4,334,025,322   $2,754,372,147 
                                  
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   53,093,882    57,272,985    47,330,590    51,278,553    38,051,346    41,322,794 
   Advisor Class   465,332    138,659    486,605    74,728    386,255    72,286 
   Premier Class   3,332,791    2,268,052    3,326,310    2,092,134    2,460,351    1,861,972 
   Retirement Class   3,210,198    4,109,003    3,384,557    3,762,615    2,462,770    3,089,834 
Shares reinvested:  Institutional Class   3,328,569    2,874,228    3,278,139    3,038,074    2,096,865    2,000,370 
   Advisor Class   6,339    3,014    5,178    2,983    4,080    2,119 
   Premier Class   267,639    296,323    241,567    269,772    169,630    205,001 
   Retirement Class   328,628    384,830    286,816    352,732    188,273    257,901 
Shares redeemed:  Institutional Class   (30,110,477)   (12,880,082)   (29,104,126)   (10,594,726)   (19,783,206)   (7,293,648)
   Advisor Class   (59,228)   (16,382)   (55,341)   (26,637)   (51,774)   (12,242)
   Premier Class   (1,712,473)   (1,632,962)   (1,199,194)   (1,436,905)   (928,111)   (1,085,785)
   Retirement Class   (4,423,500)   (4,572,589)   (4,456,676)   (4,439,592)   (3,308,782)   (2,955,104)
Net increase (decrease) from shareholder transactions   27,727,700    48,245,079    23,524,425    44,373,731    21,747,697    37,465,498 
           
72 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 73
 
Statements of changes in net assets continued
   
TIAA-CREF Funds  ■  For the period or year ended  
   
      Lifecycle Index 2050 Fund  Lifecycle Index 2055 Fund  Lifecycle Index 2060 Fund
      May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020 
                            
OPERATIONS                                 
Net investment income (loss)  $46,165,969   $40,226,435   $21,715,539   $17,646,205   $7,765,010   $4,931,860 
Net realized gain (loss) from investments   2,673,483    (895,623)   (429,284)   (354,602)   (253,461)   (290,779)
Net change in unrealized appreciation (depreciation) from affiliated investments   868,582,425    67,242,429    418,136,772    25,056,311    151,099,298    6,746,014 
Net increase (decrease) in net assets from operations   917,421,877    106,573,241    439,423,027    42,347,914    158,610,847    11,387,095 
                                  
DISTRIBUTIONS TO SHAREHOLDERS                      
   Institutional Class   (42,430,221)   (33,967,239)   (19,292,672)   (14,697,222)   (6,976,807)   (4,203,800)
   Advisor Class   (91,551)   (53,022)   (72,735)   (25,176)   (42,596)   (19,937)
   Premier Class   (3,947,333)   (4,015,779)   (1,715,800)   (1,545,016)   (432,574)   (286,719)
   Retirement Class   (4,010,091)   (4,746,122)   (2,153,322)   (2,397,731)   (737,157)   (691,668)
Total distributions   (50,479,196)   (42,782,162)   (23,234,529)   (18,665,145)   (8,189,134)   (5,202,124)
                                  
SHAREHOLDER TRANSACTIONS                          
Subscriptions:  Institutional Class   813,431,107    753,846,142    479,956,773    407,584,379    281,188,730    181,794,482 
   Advisor Class   7,206,914    1,551,422    5,757,157    800,606    3,754,798    732,456 
   Premier Class   52,560,460    37,059,256    38,644,994    26,046,960    18,114,313    10,430,273 
   Retirement Class   54,707,156    58,046,790    34,204,930    39,101,739    21,821,410    22,702,101 
Reinvestments of distributions:  Institutional Class   40,994,173    32,968,516    18,203,312    14,139,713    6,684,976    4,019,014 
   Advisor Class   88,840    49,910    70,061    22,083    40,105    17,012 
   Premier Class   3,507,602    3,678,576    1,498,630    1,392,509    359,085    234,855 
   Retirement Class   4,010,091    4,746,122    2,153,020    2,397,372    736,927    691,392 
Redemptions:  Institutional Class   (407,143,274)   (111,619,974)   (161,196,776)   (75,207,035)   (81,222,292)   (34,636,333)
   Advisor Class   (675,195)   (313,433)   (385,131)   (80,329)   (422,458)   (73,883)
   Premier Class   (20,998,387)   (17,041,829)   (9,636,115)   (8,435,522)   (3,853,209)   (1,803,263)
   Retirement Class   (69,958,388)   (57,748,674)   (44,408,997)   (30,215,676)   (18,899,836)   (13,223,954)
Net increase (decrease) from shareholder transactions   477,731,099    705,222,824    364,861,858    377,546,799    228,302,549    170,884,152 
Net increase (decrease) in net assets   1,344,673,780    769,013,903    781,050,356    401,229,568    378,724,262    177,069,123 
                                  
NET ASSETS                                 
Beginning of period   2,196,185,339    1,427,171,436    997,537,183    596,307,615    323,997,643    146,928,520 
End of period     $3,540,859,119   $2,196,185,339   $1,778,587,539   $997,537,183   $702,721,905   $323,997,643 
                                  
CHANGE IN FUND SHARES                              
Shares sold:  Institutional Class   32,551,557    35,975,444    23,898,376    24,185,539    18,088,666    14,134,700 
   Advisor Class   284,899    73,996    287,032    48,310    239,023    57,311 
   Premier Class   2,119,729    1,806,790    1,916,847    1,594,984    1,163,078    822,237 
   Retirement Class   2,183,270    2,828,051    1,715,991    2,361,850    1,418,338    1,774,966 
Shares reinvested:  Institutional Class   1,611,406    1,504,038    892,319    805,223    424,983    297,484 
   Advisor Class   3,496    2,279    3,438    1,258    2,551    1,258 
   Premier Class   138,586    168,587    73,643    79,481    22,857    17,396 
   Retirement Class   159,131    218,514    106,060    137,071    47,028    51,290 
Shares redeemed:  Institutional Class   (15,906,221)   (5,378,938)   (7,976,809)   (4,506,804)   (5,222,822)   (2,682,020)
   Advisor Class   (26,590)   (14,202)   (18,933)   (4,802)   (27,251)   (5,752)
   Premier Class   (866,647)   (835,477)   (491,181)   (522,532)   (252,220)   (144,083)
   Retirement Class   (2,777,186)   (2,726,554)   (2,161,601)   (1,770,172)   (1,195,996)   (1,007,770)
Net increase (decrease) from shareholder transactions   19,475,430    33,622,528    18,245,182    22,409,406    14,708,235    13,317,017 
           
74 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 75
 
Statements of changes in net assets concluded
   
TIAA-CREF Funds  ■  For the period or year ended  
   
      Lifecycle Index 2065 Fund
      May 31, 2021§ 
        
OPERATIONS        
Net investment income (loss)  $89,704 
Net realized gain (loss) from investments   3,408 
Net change in unrealized appreciation (depreciation) from affiliated investments   1,362,531 
Net increase (decrease) in net assets from operations   1,455,643 
         
DISTRIBUTIONS TO SHAREHOLDERS     
   Institutional Class   (66,007)
   Advisor Class   (8,865)
   Premier Class   (8,865)
   Retirement Class   (8,734)
Total distributions   (92,471)
         
SHAREHOLDER TRANSACTIONS     
Subscriptions:  Institutional Class   6,581,831 
   Advisor Class   503,092 
   Premier Class   516,791 
   Retirement Class   583,151 
Reinvestments of distributions:  Institutional Class   4,735 
   Advisor Class   — 
   Premier Class   — 
   Retirement Class   8 
Redemptions:  Institutional Class   (448,475)
   Advisor Class   — 
   Premier Class   (3,596)
   Retirement Class   (14,056)
Net increase (decrease) from shareholder transactions   7,723,481 
Net increase (decrease) in net assets   9,086,653 
         
NET ASSETS        
Beginning of period   — 
End of period     $9,086,653 
         
CHANGE IN FUND SHARES     
Shares sold:  Institutional Class   609,815 
   Advisor Class   50,259 
   Premier Class   51,411 
   Retirement Class   56,856 
Shares reinvested:  Institutional Class   424 
   Advisor Class   — 
   Premier Class   — 
   Retirement Class   1 
Shares redeemed:  Institutional Class   (37,593)
   Advisor Class   — 
   Premier Class   (295)
   Retirement Class   (1,143)
Net increase (decrease) from shareholder transactions   729,735 
§ For the period September 30, 2020 to May 31, 2021.
   
76 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements
 

[This page intentionally left blank.]

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 77
 

Financial highlights

 

TIAA-CREF 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
or year
ended		  value,
beginning
of period		   investment
income
(loss)		a   gain (loss)
on total
investments		j    (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands)		   Gross
expenses		   Net
expenses		   investment
income
(loss)		   Portfolio
turnover
rate		 
LIFECYCLE INDEX RETIREMENT INCOME FUND                                                        
Institutional Class:  5/31/21   $15.10    $0.28    $2.16    $2.44    $(0.29)   $(0.05)   $(0.34)   $17.20    16.36%   $547,545    0.23%g    0.10%g    1.69%   23%
   5/31/20   14.31    0.34    0.82    1.16    (0.35)   (0.02)   (0.37)   15.10    8.17    437,256    0.26g    0.10g    2.32    27 
   5/31/19   14.22    0.34    0.15    0.49    (0.34)   (0.06)   (0.40)   14.31    3.66    306,742    0.24f    0.07f    2.39    23 
   5/31/18   13.81    0.29    0.43    0.72    (0.29)   (0.02)   (0.31)   14.22    5.16    233,165    0.21e    0.00e    2.09    26 
   5/31/17   13.09    0.25    0.76    1.01    (0.26)   (0.03)   (0.29)   13.81    7.81    79,296    0.27e    0.00e    1.90    40 
Advisor Class:  5/31/21   15.10    0.24    2.18    2.42    (0.28)   (0.05)   (0.33)   17.19    16.16    2,242    0.34g    0.20g    1.49    23 
   5/31/20   14.31    0.36    0.79    1.15    (0.34)   (0.02)   (0.36)   15.10    8.08    989    0.37g    0.22g    2.41    27 
   5/31/19   14.22    0.33    0.16    0.49    (0.34)   (0.06)   (0.40)   14.31    3.64    160    0.27f    0.10f    2.33    23 
   5/31/18   13.82    0.30    0.41    0.71    (0.29)   (0.02)   (0.31)   14.22    5.07    111    0.21e    0.01e    2.13    26 
   5/31/17   13.09    0.27    0.75    1.02    (0.26)   (0.03)   (0.29)   13.82    7.86    108    0.29e    0.03e    2.03    40 
Premier Class:  5/31/21   15.09    0.27    2.14    2.41    (0.27)   (0.05)   (0.32)   17.18    16.12    25,449    0.38g    0.25g    1.63    23 
   5/31/20   14.30    0.32    0.82    1.14    (0.33)   (0.02)   (0.35)   15.09    8.09    29,105    0.40g    0.25g    2.17    27 
   5/31/19   14.20    0.31    0.17    0.48    (0.32)   (0.06)   (0.38)   14.30    3.44    29,443    0.39f    0.22f    2.20    23 
   5/31/18   13.81    0.28    0.40    0.68    (0.27)   (0.02)   (0.29)   14.20    4.94    20,117    0.35e    0.15e    2.00    26 
   5/31/17   13.08    0.26    0.74    1.00    (0.24)   (0.03)   (0.27)   13.81    7.73    11,670    0.41e    0.15e    1.95    40 
Retirement Class:  5/31/21   15.07    0.24    2.16    2.40    (0.26)   (0.05)   (0.31)   17.16    16.04    48,346    0.48g    0.35g    1.45    23 
   5/31/20   14.28    0.31    0.81    1.12    (0.31)   (0.02)   (0.33)   15.07    7.91    35,862    0.50g    0.35g    2.09    27 
   5/31/19   14.19    0.31    0.15    0.46    (0.31)   (0.06)   (0.37)   14.28    3.40    34,847    0.49f    0.32f    2.19    23 
   5/31/18   13.79    0.26    0.42    0.68    (0.26)   (0.02)   (0.28)   14.19    4.83    39,058    0.45e    0.25e    1.88    26 
   5/31/17   13.07    0.23    0.75    0.98    (0.23)   (0.03)   (0.26)   13.79    7.57    37,211    0.51e    0.25e    1.70    40 
LIFECYCLE INDEX 2010 FUND                                                               
Institutional Class:  5/31/21   15.97    0.30    2.28    2.58    (0.31)   (0.11)   (0.42)   18.13    16.22    560,852    0.23g    0.10g    1.71    28 
   5/31/20   15.11    0.36    0.87    1.23    (0.35)   (0.02)   (0.37)   15.97    8.18    442,192    0.25g    0.10g    2.32    22 
   5/31/19   15.04    0.36    0.15    0.51    (0.35)   (0.09)   (0.44)   15.11    3.57    335,348    0.22f    0.07f    2.40    19 
   5/31/18   14.59    0.32    0.45    0.77    (0.29)   (0.03)   (0.32)   15.04    5.29    265,521    0.15e    0.00e    2.13    16 
   5/31/17   13.76    0.29    0.85    1.14    (0.27)   (0.04)   (0.31)   14.59    8.47    195,420    0.16e    0.00e    2.04    16 
Advisor Class:  5/31/21   15.97    0.22    2.35    2.57    (0.30)   (0.11)   (0.41)   18.13    16.18    1,950    0.32g    0.19g    1.28    28 
   5/31/20   15.11    0.36    0.87    1.23    (0.35)   (0.02)   (0.37)   15.97    8.16    123    0.26g    0.12g    2.30    22 
   5/31/19   15.05    0.39    0.11    0.50    (0.35)   (0.09)   (0.44)   15.11    3.52    113    0.27f    0.13f    2.57    19 
   5/31/18   14.59    0.31    0.47    0.78    (0.29)   (0.03)   (0.32)   15.05    5.28    177    0.17e    0.02e    2.06    16 
   5/31/17   13.77    0.29    0.84    1.13    (0.27)   (0.04)   (0.31)   14.59    8.38    109    0.18e    0.02e    2.04    16 
Premier Class:  5/31/21   15.92    0.27    2.26    2.53    (0.28)   (0.11)   (0.39)   18.06    15.99    43,665    0.38g    0.25g    1.56    28 
   5/31/20   15.06    0.35    0.86    1.21    (0.33)   (0.02)   (0.35)   15.92    8.06    31,580    0.40g    0.25g    2.20    22 
   5/31/19   15.00    0.35    0.13    0.48    (0.33)   (0.09)   (0.42)   15.06    3.42    32,634    0.36f    0.21f    2.35    19 
   5/31/18   14.54    0.30    0.47    0.77    (0.28)   (0.03)   (0.31)   15.00    5.18    47,385    0.30e    0.15e    2.03    16 
   5/31/17   13.73    0.27    0.83    1.10    (0.25)   (0.04)   (0.29)   14.54    8.19    32,513    0.31e    0.15e    1.92    16 
Retirement Class:  5/31/21   15.83    0.25    2.26    2.51    (0.27)   (0.11)   (0.38)   17.96    15.91    81,534    0.48g    0.35g    1.46    28 
   5/31/20   14.98    0.32    0.87    1.19    (0.32)   (0.02)   (0.34)   15.83    7.93    74,599    0.50g    0.35g    2.08    22 
   5/31/19   14.92    0.32    0.14    0.46    (0.31)   (0.09)   (0.40)   14.98    3.32    70,013    0.47fe    0.32fe    2.16    19 
   5/31/18   14.47    0.28    0.46    0.74    (0.26)   (0.03)   (0.29)   14.92    5.02    77,207    0.40e    0.25e    1.88    16 
   5/31/17   13.66    0.26    0.83    1.09    (0.24)   (0.04)   (0.28)   14.47    8.15    68,843    0.41e    0.25e    1.83    16 

 

78 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds   ■  2021 Annual Report 79
 
Financial highlights continued
   
TIAA-CREF 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
or year
ended		  value,
beginning
of period		   investment
income
(loss)		a   gain (loss)
on total
investments		j    (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands)		   Gross
expenses		   Net
expenses		   investment
income
(loss)		   Portfolio
turnover
rate		 
LIFECYCLE INDEX 2015 FUND
Institutional Class:  5/31/21   $16.65    $0.31    $2.69    $3.00    $(0.34)   $(0.16)   $(0.50)   $19.15    18.16%   $  962,220    0.21%g    0.10%g    1.71%   26%
   5/31/20   15.76    0.38    0.92    1.30    (0.38)   (0.03)   (0.41)   16.65    8.24    819,474    0.23g    0.10g    2.33    25 
   5/31/19   15.74    0.37    0.13    0.50    (0.37)   (0.11)   (0.48)   15.76    3.40    654,257    0.20f    0.07f    2.38    17 
   5/31/18   15.15    0.34    0.58    0.92    (0.30)   (0.03)   (0.33)   15.74    6.01    533,409    0.13e    0.00e    2.16    11 
   5/31/17   14.20    0.30    1.00    1.30    (0.29)   (0.06)   (0.35)   15.15    9.28    377,197    0.14e    0.01e    2.05    14 
Advisor Class:  5/31/21   16.65    0.23    2.75    2.98    (0.33)   (0.16)   (0.49)   19.14    18.05    1,396    0.31g    0.20g    1.28    26 
   5/31/20   15.76    0.39    0.90    1.29    (0.37)   (0.03)   (0.40)   16.65    8.19    592    0.30g    0.18g    2.38    25 
   5/31/19   15.74    0.37    0.12    0.49    (0.36)   (0.11)   (0.47)   15.76    3.31    164    0.24f    0.11f    2.38    17 
   5/31/18   15.16    0.33    0.58    0.91    (0.30)   (0.03)   (0.33)   15.74    5.99    114    0.14e    0.01e    2.13    11 
   5/31/17   14.21    0.30    1.00    1.30    (0.29)   (0.06)   (0.35)   15.16    9.25    110    0.15e    0.02e    2.07    14 
Premier Class:  5/31/21   16.58    0.28    2.68    2.96    (0.31)   (0.16)   (0.47)   19.07    18.00    98,140    0.36g    0.25g    1.55    26 
   5/31/20   15.69    0.36    0.91    1.27    (0.35)   (0.03)   (0.38)   16.58    8.12    85,350    0.37g    0.25g    2.18    25 
   5/31/19   15.68    0.36    0.10    0.46    (0.34)   (0.11)   (0.45)   15.69    3.19    94,174    0.34f    0.21f    2.31    17 
   5/31/18   15.10    0.32    0.57    0.89    (0.28)   (0.03)   (0.31)   15.68    5.83    101,715    0.28e    0.15e    2.05    11 
   5/31/17   14.15    0.28    1.00    1.28    (0.27)   (0.06)   (0.33)   15.10    9.15    71,489    0.29e    0.16e    1.92    14 
Retirement Class:  5/31/21   16.52    0.26    2.67    2.93    (0.29)   (0.16)   (0.45)   19.00    17.88    126,902    0.46g    0.35g    1.44    26 
   5/31/20   15.64    0.33    0.91    1.24    (0.33)   (0.03)   (0.36)   16.52    7.96    122,731    0.47g    0.35g    2.05    25 
   5/31/19   15.62    0.33    0.13    0.46    (0.33)   (0.11)   (0.44)   15.64    3.09    130,910    0.45f    0.32f    2.14    17 
   5/31/18   15.05    0.29    0.58    0.87    (0.27)   (0.03)   (0.30)   15.62    5.73    133,557    0.38e    0.25e    1.87    11 
   5/31/17   14.11    0.26    1.00    1.26    (0.26)   (0.06)   (0.32)   15.05    9.03    118,186    0.39e    0.26e    1.81    14 
LIFECYCLE INDEX 2020 FUND
Institutional Class:  5/31/21   17.63    0.33    3.20    3.53    (0.36)   (0.10)   (0.46)   20.70    20.14    2,729,084    0.20g    0.10g    1.72    21 
   5/31/20   16.65    0.40    0.99    1.39    (0.39)   (0.02)   (0.41)   17.63    8.36    2,221,699    0.21g    0.10g    2.32    20 
   5/31/19   16.63    0.39    0.08    0.47    (0.38)   (0.07)   (0.45)   16.65    3.07    1,636,541    0.19f    0.08f    2.34    12 
   5/31/18   15.87    0.36    0.73    1.09    (0.31)   (0.02)   (0.33)   16.63    6.85    1,176,623    0.12e    0.01e    2.17    8 
   5/31/17   14.70    0.31    1.21    1.52    (0.30)   (0.05)   (0.35)   15.87    10.50    710,053    0.13e    0.02e    2.07    9 
Advisor Class:  5/31/21   17.61    0.27    3.23    3.50    (0.34)   (0.10)   (0.44)   20.67    20.00    11,420    0.30g    0.20g    1.37    21 
   5/31/20   16.64    0.43    0.94    1.37    (0.38)   (0.02)   (0.40)   17.61    8.25    4,832    0.31g    0.21g    2.51    20 
   5/31/19   16.62    0.38    0.08    0.46    (0.37)   (0.07)   (0.44)   16.64    2.95    708    0.27f    0.16f    2.30    12 
   5/31/18   15.86    0.36    0.72    1.08    (0.30)   (0.02)   (0.32)   16.62    6.85    200    0.18e    0.07e    2.17    8 
   5/31/17   14.70    0.37    1.14    1.51    (0.30)   (0.05)   (0.35)   15.86    10.42    244    0.18e    0.06e    2.44    9 
Premier Class:  5/31/21   17.55    0.30    3.17    3.47    (0.33)   (0.10)   (0.43)   20.59    19.89    316,253    0.35g    0.25g    1.55    21 
   5/31/20   16.57    0.38    0.99    1.37    (0.37)   (0.02)   (0.39)   17.55    8.25    268,403    0.36g    0.25g    2.16    20 
   5/31/19   16.55    0.37    0.07    0.44    (0.35)   (0.07)   (0.42)   16.57    2.86    257,430    0.33f    0.22f    2.24    12 
   5/31/18   15.80    0.33    0.73    1.06    (0.29)   (0.02)   (0.31)   16.55    6.75    250,375    0.27e    0.16e    2.02    8 
   5/31/17   14.64    0.30    1.19    1.49    (0.28)   (0.05)   (0.33)   15.80    10.32    175,521    0.28e    0.17e    1.95    9 
Retirement Class:  5/31/21   17.48    0.28    3.17    3.45    (0.31)   (0.10)   (0.41)   20.52    19.85    310,428    0.45g    0.35g    1.46    21 
   5/31/20   16.51    0.35    0.99    1.34    (0.35)   (0.02)   (0.37)   17.48    8.10    303,700    0.46g    0.35g    2.05    20 
   5/31/19   16.49    0.34    0.09    0.43    (0.34)   (0.07)   (0.41)   16.51    2.76    316,512    0.43f    0.32f    2.09    12 
   5/31/18   15.74    0.30    0.74    1.04    (0.27)   (0.02)   (0.29)   16.49    6.66    318,125    0.37e    0.26e    1.86    8 
   5/31/17   14.60    0.28    1.18    1.46    (0.27)   (0.05)   (0.32)   15.74    10.14    267,914    0.38e    0.27e    1.85    9 

 

80 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds   ■  2021 Annual Report 81
 
Financial highlights continued
   
TIAA-CREF 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
or year
ended		  value,
beginning
of period		   investment
income
(loss)		a   gain (loss)
on total
investments		j    (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands)		   Gross
expenses		   Net
expenses		   investment
income
(loss)		   Portfolio
turnover
rate		 
LIFECYCLE INDEX 2025 FUND
Institutional Class:  5/31/21   $18.53    $0.35    $  3.94    $4.29    $(0.37)   $(0.09)   $(0.46)   $22.36    23.29%   $4,263,286    0.19%g    0.10%g    1.71%   18%
   5/31/20   17.49    0.42    1.05    1.47    (0.41)   (0.02)   (0.43)   18.53    8.35    3,152,216    0.20g    0.11g    2.31    17 
   5/31/19   17.51    0.40    0.02    0.42    (0.39)   (0.05)   (0.44)   17.49    2.58    2,108,199    0.18f    0.08f    2.28    11 
   5/31/18   16.54    0.37    0.95    1.32    (0.33)   (0.02)   (0.35)   17.51    7.99    1,456,072    0.12e    0.01e    2.14    7 
   5/31/17   15.14    0.33    1.44    1.77    (0.31)   (0.06)   (0.37)   16.54    11.90    778,157    0.13e    0.02e    2.07    9 
Advisor Class:  5/31/21   18.50    0.31    3.96    4.27    (0.36)   (0.09)   (0.45)   22.32    23.20    17,472    0.29g    0.20g    1.47    18 
   5/31/20   17.47    0.42    1.03    1.45    (0.40)   (0.02)   (0.42)   18.50    8.23    2,837    0.30g    0.21g    2.30    17 
   5/31/19   17.50    0.40    (0.00)   0.40    (0.38)   (0.05)   (0.43)   17.47    2.51    1,001    0.28f    0.18f    2.28    11 
   5/31/18   16.53    0.31    1.00    1.31    (0.32)   (0.02)   (0.34)   17.50    7.89    438    0.21e    0.09e    1.82    7 
   5/31/17   15.14    0.32    1.44    1.76    (0.31)   (0.06)   (0.37)   16.53    11.82    140    0.15e    0.04e    2.06    9 
Premier Class:  5/31/21   18.45    0.32    3.92    4.24    (0.34)   (0.09)   (0.43)   22.26    23.11    466,892    0.34g    0.25g    1.55    18 
   5/31/20   17.41    0.39    1.05    1.44    (0.38)   (0.02)   (0.40)   18.45    8.24    357,784    0.35g    0.26g    2.15    17 
   5/31/19   17.44    0.38    0.01    0.39    (0.37)   (0.05)   (0.42)   17.41    2.44    328,028    0.33f    0.22f    2.20    11 
   5/31/18   16.47    0.35    0.95    1.30    (0.31)   (0.02)   (0.33)   17.44    7.84    299,291    0.27e    0.16e    2.01    7 
   5/31/17   15.09    0.31    1.42    1.73    (0.29)   (0.06)   (0.35)   16.47    11.66    186,729    0.28e    0.17e    1.98    9 
Retirement Class:  5/31/21   18.36    0.30    3.90    4.20    (0.32)   (0.09)   (0.41)   22.15    22.99    481,282    0.44g    0.35g    1.46    18 
   5/31/20   17.34    0.37    1.03    1.40    (0.36)   (0.02)   (0.38)   18.36    8.05    424,099    0.46g    0.36g    2.05    17 
   5/31/19   17.36    0.35    0.03    0.38    (0.35)   (0.05)   (0.40)   17.34    2.33    408,411    0.43f    0.32f    2.03    11 
   5/31/18   16.40    0.31    0.96    1.27    (0.29)   (0.02)   (0.31)   17.36    7.76    372,112    0.37e    0.26e    1.84    7 
   5/31/17   15.04    0.29    1.41    1.70    (0.28)   (0.06)   (0.34)   16.40    11.50    293,959    0.38e    0.27e    1.86    9 
LIFECYCLE INDEX 2030 FUND
Institutional Class:  5/31/21   19.40    0.38    4.77    5.15    (0.39)   (0.08)   (0.47)   24.08    26.70    4,966,053    0.19g    0.10g    1.70    16 
   5/31/20   18.33    0.44    1.08    1.52    (0.43)   (0.02)   (0.45)   19.40    8.25    3,449,438    0.20g    0.10g    2.30    15 
   5/31/19   18.42    0.41    (0.04)   0.37    (0.41)   (0.05)   (0.46)   18.33    2.13    2,291,258    0.18f    0.08f    2.24    10 
   5/31/18   17.23    0.38    1.19    1.57    (0.35)   (0.03)   (0.38)   18.42    9.10    1,517,858    0.12e    0.02e    2.11    5 
   5/31/17   15.60    0.34    1.69    2.03    (0.33)   (0.07)   (0.40)   17.23    13.20    818,138    0.13e    0.03e    2.09    6 
Advisor Class:  5/31/21   19.38    0.31    4.80    5.11    (0.37)   (0.08)   (0.45)   24.04    26.54    23,352    0.29g    0.20g    1.38    16 
   5/31/20   18.31    0.42    1.09    1.51    (0.42)   (0.02)   (0.44)   19.38    8.20    5,671    0.30g    0.21g    2.20    15 
   5/31/19   18.41    0.43    (0.08)   0.35    (0.40)   (0.05)   (0.45)   18.31    2.03    1,311    0.28f    0.18f    2.36    10 
   5/31/18   17.22    0.36    1.19    1.55    (0.33)   (0.03)   (0.36)   18.41    9.00    165    0.21e    0.11e    2.00    5 
   5/31/17   15.60    0.32    1.70    2.02    (0.33)   (0.07)   (0.40)   17.22    13.12    150    0.17e    0.07e    1.97    6 
Premier Class:  5/31/21   19.31    0.34    4.75    5.09    (0.36)   (0.08)   (0.44)   23.96    26.45    475,693    0.34g    0.25g    1.54    16 
   5/31/20   18.24    0.41    1.09    1.50    (0.41)   (0.02)   (0.43)   19.31    8.14    344,547    0.35g    0.25g    2.14    15 
   5/31/19   18.34    0.40    (0.07)   0.33    (0.38)   (0.05)   (0.43)   18.24    1.98    318,862    0.32f    0.22f    2.16    10 
   5/31/18   17.15    0.36    1.19    1.55    (0.33)   (0.03)   (0.36)   18.34    8.95    307,155    0.27e    0.17e    1.97    5 
   5/31/17   15.54    0.32    1.67    1.99    (0.31)   (0.07)   (0.38)   17.15    12.97    206,717    0.28e    0.18e    1.98    6 
Retirement Class:  5/31/21   19.22    0.32    4.72    5.04    (0.33)   (0.08)   (0.41)   23.85    26.40    496,871    0.44g    0.35g    1.45    16 
   5/31/20   18.16    0.39    1.08    1.47    (0.39)   (0.02)   (0.41)   19.22    8.02    419,628    0.45g    0.35g    2.04    15 
   5/31/19   18.26    0.36    (0.05)   0.31    (0.36)   (0.05)   (0.41)   18.16    1.88    392,792    0.42f    0.32f    2.01    10 
   5/31/18   17.08    0.33    1.19    1.52    (0.31)   (0.03)   (0.34)   18.26    8.82    368,806    0.37e    0.27e    1.81    5 
   5/31/17   15.48    0.31    1.66    1.97    (0.30)   (0.07)   (0.37)   17.08    12.90    287,818    0.38e    0.28e    1.92    6 

 

82 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds   ■  2021 Annual Report 83
 
Financial highlights continued
   
TIAA-CREF 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
or year
ended		  value,
beginning
of period		   investment
income
(loss)		a   gain (loss)
on total
investments		j    (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands)		   Gross
expenses		   Net
expenses		   investment
income
(loss)		   Portfolio
turnover
rate		 
LIFECYCLE INDEX 2035 FUND
Institutional Class:  5/31/21   $20.21    $0.40    $  5.64    $6.04    $(0.40)   $(0.08)  $(0.48)   $25.77    30.12%   $4,697,189    0.18%g    0.10%g    1.70%   15%
   5/31/20   19.12    0.46    1.11    1.57    (0.46)   (0.02)   (0.48)   20.21    8.12    3,151,680    0.19g    0.11g    2.30    14 
   5/31/19   19.32    0.42    (0.14)   0.28    (0.42)   (0.06)   (0.48)   19.12    1.66    2,077,146    0.17f    0.08f    2.20    7 
   5/31/18   17.89    0.40    1.43    1.83    (0.37)   (0.03)   (0.40)   19.32    10.17    1,453,606    0.12e    0.02e    2.09    5 
   5/31/17   16.01    0.35    1.95    2.30    (0.34)   (0.08)   (0.42)   17.89    14.60    822,392    0.13e    0.03e    2.09    5 
Advisor Class:  5/31/21   20.18    0.32    5.70    6.02    (0.39)   (0.08)   (0.47)   25.73    30.03    15,231    0.28g    0.20g    1.37    15 
   5/31/20   19.10    0.50    1.04    1.54    (0.44)   (0.02)   (0.46)   20.18    8.02    3,623    0.29g    0.20g    2.51    14 
   5/31/19   19.31    0.40    (0.13)   0.27    (0.42)   (0.06)   (0.48)   19.10    1.52    1,036    0.27f    0.18f    2.12    7 
   5/31/18   17.88    0.38    1.44    1.82    (0.36)   (0.03)   (0.39)   19.31    10.22    133    0.14e    0.04e    2.02    5 
   5/31/17   16.00    0.36    1.94    2.30    (0.34)   (0.08)   (0.42)   17.88    14.59    115    0.14e    0.04e    2.13    5 
Premier Class:  5/31/21   20.11    0.36    5.61    5.97    (0.37)   (0.08)   (0.45)   25.63    29.90    470,422    0.33g    0.25g    1.54    15 
   5/31/20   19.02    0.43    1.11    1.54    (0.43)   (0.02)   (0.45)   20.11    8.02    331,062    0.34g    0.26g    2.15    14 
   5/31/19   19.22    0.40    (0.14)   0.26    (0.40)   (0.06)   (0.46)   19.02    1.46    295,473    0.32f    0.23f    2.10    7 
   5/31/18   17.81    0.37    1.41    1.78    (0.34)   (0.03)   (0.37)   19.22    10.03    276,476    0.27e    0.17e    1.95    5 
   5/31/17   15.94    0.33    1.94    2.27    (0.32)   (0.08)   (0.40)   17.81    14.45    184,167    0.28e    0.18e    1.98    5 
Retirement Class:  5/31/21   20.02    0.33    5.60    5.93    (0.35)   (0.08)   (0.43)   25.52    29.81    451,962    0.43g    0.35g    1.45    15 
   5/31/20   18.94    0.41    1.10    1.51    (0.41)   (0.02)   (0.43)   20.02    7.89    372,294    0.44g    0.36g    2.04    14 
   5/31/19   19.14    0.37    (0.13)   0.24    (0.38)   (0.06)   (0.44)   18.94    1.36    353,729    0.42f    0.33f    1.94    7 
   5/31/18   17.73    0.33    1.43    1.76    (0.32)   (0.03)   (0.35)   19.14    9.97    331,850    0.37e    0.27e    1.78    5 
   5/31/17   15.88    0.31    1.93    2.24    (0.31)   (0.08)   (0.39)   17.73    14.31    253,984    0.38e    0.28e    1.85    5 
LIFECYCLE INDEX 2040 FUND
Institutional Class:  5/31/21   20.71    0.41    6.56    6.97    (0.41)   (0.08)   (0.49)   27.19    33.87    4,914,220    0.18g    0.10g    1.68    14 
   5/31/20   19.65    0.47    1.08    1.55    (0.47)   (0.02)   (0.49)   20.71    7.81    3,297,735    0.19g    0.10g    2.28    11 
   5/31/19   19.96    0.42    (0.25)   0.17    (0.43)   (0.05)   (0.48)   19.65    1.08    2,269,054    0.17f    0.08f    2.14    6 
   5/31/18   18.30    0.39    1.68    2.07    (0.38)   (0.03)   (0.41)   19.96    11.32    1,613,765    0.12e    0.03e    2.02    3 
   5/31/17   16.19    0.36    2.19    2.55    (0.35)   (0.09)   (0.44)   18.30    16.02    953,151    0.13e    0.04e    2.08    5 
Advisor Class:  5/31/21   20.69    0.31    6.64    6.95    (0.40)   (0.08)   (0.48)   27.16    33.78    16,071    0.28g    0.20g    1.25    14 
   5/31/20   19.63    0.47    1.07    1.54    (0.46)   (0.02)   (0.48)   20.69    7.75    3,215    0.28g    0.19g    2.30    11 
   5/31/19   19.94    0.40    (0.24)   0.16    (0.42)   (0.05)   (0.47)   19.63    0.96    2,047    0.25f    0.16f    2.02    6 
   5/31/18   18.29    0.50    1.55    2.05    (0.37)   (0.03)   (0.40)   19.94    11.29    547    0.23e    0.14e    2.53    3 
   5/31/17   16.19    0.55    1.99    2.54    (0.35)   (0.09)   (0.44)   18.29    15.94    213    0.18e    0.09e    3.19    5 
Premier Class:  5/31/21   20.60    0.36    6.54    6.90    (0.38)   (0.08)   (0.46)   27.04    33.69    447,061    0.33g    0.25g    1.50    14 
   5/31/20   19.55    0.44    1.07    1.51    (0.44)   (0.02)   (0.46)   20.60    7.65    291,837    0.34g    0.25g    2.12    11 
   5/31/19   19.86    0.41    (0.27)   0.14    (0.40)   (0.05)   (0.45)   19.55    0.87    258,812    0.31f    0.23f    2.09    6 
   5/31/18   18.21    0.37    1.67    2.04    (0.36)   (0.03)   (0.39)   19.86    11.24    264,272    0.27e    0.18e    1.88    3 
   5/31/17   16.12    0.33    2.18    2.51    (0.33)   (0.09)   (0.42)   18.21    15.81    185,887    0.28e    0.19e    1.95    5 
Retirement Class:  5/31/21   20.52    0.34    6.51    6.85    (0.36)   (0.08)   (0.44)   26.93    33.55    435,795    0.43g    0.35g    1.42    14 
   5/31/20   19.47    0.42    1.07    1.49    (0.42)   (0.02)   (0.44)   20.52    7.58    348,208    0.44g    0.35g    2.02    11 
   5/31/19   19.78    0.37    (0.25)   0.12    (0.38)   (0.05)   (0.43)   19.47    0.77    336,720    0.42f    0.33f    1.89    6 
   5/31/18   18.15    0.33    1.67    2.00    (0.34)   (0.03)   (0.37)   19.78    11.05    310,574    0.37e    0.28e    1.70    3 
   5/31/17   16.07    0.32    2.17    2.49    (0.32)   (0.09)   (0.41)   18.15    15.73    229,150    0.38e    0.29e    1.89    5 

 

84 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds   ■  2021 Annual Report 85
 
Financial highlights continued
   
TIAA-CREF 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
or year
ended		  value,
beginning
of period		   investment
income
(loss)		a  gain (loss)
on total
investments		j   (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands)		   Gross
expenses		   Net
expenses		   investment
income
(loss)		   Portfolio
turnover
rate		 
LIFECYCLE INDEX 2045 FUND
Institutional Class:  5/31/21   $20.68    $0.41    $  7.34    $7.75    $(0.41)   $(0.04)   $(0.45)   $27.98    37.71%   $3,640,347    0.17%g    0.10%g    1.65%   11%
   5/31/20   19.69    0.47    1.02    1.49    (0.48)   (0.02)   (0.50)   20.68    7.43    2,269,913    0.19g    0.10g    2.27    6 
   5/31/19   20.09    0.42    (0.34)   0.08    (0.43)   (0.05)   (0.48)   19.69    0.58    1,451,216    0.17f    0.08f    2.10    4 
   5/31/18   18.32    0.40    1.78    2.18    (0.38)   (0.03)   (0.41)   20.09    11.97    982,189    0.13e    0.03e    2.02    3 
   5/31/17   16.13    0.35    2.27    2.62    (0.35)   (0.08)   (0.43)   18.32    16.51    513,660    0.14e    0.04e    2.06    4 
Advisor Class:  5/31/21   20.65    0.32    7.39    7.71    (0.39)   (0.04)   (0.43)   27.93    37.58    12,840    0.28g    0.20g    1.29    11 
   5/31/20   19.66    0.48    0.99    1.47    (0.46)   (0.02)   (0.48)   20.65    7.37    2,504    0.29g    0.21g    2.31    6 
   5/31/19   20.08    0.42    (0.37)   0.05    (0.42)   (0.05)   (0.47)   19.66    0.41    1,162    0.27f    0.18f    2.10    4 
   5/31/18   18.32    0.37    1.79    2.16    (0.37)   (0.03)   (0.40)   20.08    11.85    422    0.25e    0.15e    1.88    3 
   5/31/17   16.12    0.36    2.27    2.63    (0.35)   (0.08)   (0.43)   18.32    16.57    117    0.15e    0.05e    2.11    4 
Premier Class:  5/31/21   20.58    0.36    7.31    7.67    (0.38)   (0.04)   (0.42)   27.83    37.48    352,496    0.32g    0.25g    1.47    11 
   5/31/20   19.60    0.44    1.01    1.45    (0.45)   (0.02)   (0.47)   20.58    7.28    225,642    0.34g    0.25g    2.12    6 
   5/31/19   20.00    0.41    (0.35)   0.06    (0.41)   (0.05)   (0.46)   19.60    0.43    195,595    0.32f    0.22f    2.05    4 
   5/31/18   18.24    0.36    1.79    2.15    (0.36)   (0.03)   (0.39)   20.00    11.83    191,402    0.28e    0.18e    1.86    3 
   5/31/17   16.06    0.33    2.26    2.59    (0.33)   (0.08)   (0.41)   18.24    16.37    133,862    0.29e    0.19e    1.96    4 
Retirement Class:  5/31/21   20.49    0.34    7.26    7.60    (0.35)   (0.04)   (0.39)   27.70    37.32    328,342    0.42g    0.35g    1.40    11 
   5/31/20   19.51    0.42    1.01    1.43    (0.43)   (0.02)   (0.45)   20.49    7.21    256,314    0.44g    0.35g    2.03    6 
   5/31/19   19.91    0.36    (0.32)   0.04    (0.39)   (0.05)   (0.44)   19.51    0.32    236,400    0.42f    0.32f    1.83    4 
   5/31/18   18.16    0.32    1.80    2.12    (0.34)   (0.03)   (0.37)   19.91    11.71    219,919    0.38e    0.28e    1.66    3 
   5/31/17   16.00    0.32    2.24    2.56    (0.32)   (0.08)   (0.40)   18.16    16.24    169,479    0.39e    0.29e    1.88    4 
LIFECYCLE INDEX 2050 FUND
Institutional Class:  5/31/21   20.75    0.41    7.53    7.94    (0.41)   (0.03)   (0.44)   28.25    38.50    2,948,578    0.18g    0.10g    1.63    9 
   5/31/20   19.75    0.47    1.03    1.50    (0.48)   (0.02)   (0.50)   20.75    7.46    1,786,312    0.19g    0.10g    2.26    5 
   5/31/19   20.17    0.42    (0.35)   0.07    (0.44)   (0.05)   (0.49)   19.75    0.47    1,066,667    0.18f    0.08f    2.08    5 
   5/31/18   18.36    0.39    1.84    2.23    (0.39)   (0.03)   (0.42)   20.17    12.16    667,846    0.13e    0.03e    2.01    3 
   5/31/17   16.13    0.35    2.31    2.66    (0.35)   (0.08)   (0.43)   18.36    16.75    346,490    0.15e    0.04e    2.06    7 
Advisor Class:  5/31/21   20.72    0.33    7.58    7.91    (0.39)   (0.03)   (0.42)   28.21    38.42    10,851    0.27g    0.20g    1.30    9 
   5/31/20   19.73    0.50    0.97    1.47    (0.46)   (0.02)   (0.48)   20.72    7.35    2,546    0.28g    0.20g    2.41    5 
   5/31/19   20.16    0.41    (0.36)   0.05    (0.43)   (0.05)   (0.48)   19.73    0.37    1,200    0.27f    0.17f    2.07    5 
   5/31/18   18.35    0.37    1.84    2.21    (0.37)   (0.03)   (0.40)   20.16    12.08    212    0.19e    0.09e    1.90    3 
   5/31/17   16.13    0.55    2.10    2.65    (0.35)   (0.08)   (0.43)   18.35    16.67    227    0.20e    0.09e    3.22    7 
Premier Class:  5/31/21   20.63    0.36    7.51    7.87    (0.38)   (0.03)   (0.41)   28.09    38.36    295,691    0.33g    0.25g    1.47    9 
   5/31/20   19.65    0.44    1.01    1.45    (0.45)   (0.02)   (0.47)   20.63    7.26    188,481    0.34g    0.25g    2.11    5 
   5/31/19   20.07    0.41    (0.37)   0.04    (0.41)   (0.05)   (0.46)   19.65    0.32    157,105    0.32f    0.22f    2.06    5 
   5/31/18   18.28    0.36    1.82    2.18    (0.36)   (0.03)   (0.39)   20.07    11.97    148,822    0.28e    0.18e    1.83    3 
   5/31/17   16.06    0.33    2.30    2.63    (0.33)   (0.08)   (0.41)   18.28    16.61    101,527    0.30e    0.19e    1.94    7 
Retirement Class:  5/31/21   20.54    0.34    7.45    7.79    (0.35)   (0.03)   (0.38)   27.95    38.15    285,738    0.43g    0.35g    1.41    9 
   5/31/20   19.56    0.42    1.01    1.43    (0.43)   (0.02)   (0.45)   20.54    7.19    218,846    0.45g    0.35g    2.04    5 
   5/31/19   19.98    0.36    (0.34)   0.02    (0.39)   (0.05)   (0.44)   19.56    0.21    202,199    0.42f    0.32f    1.83    5 
   5/31/18   18.20    0.33    1.82    2.15    (0.34)   (0.03)   (0.37)   19.98    11.86    178,268    0.38e    0.28e    1.68    3 
   5/31/17   16.00    0.32    2.28    2.60    (0.32)   (0.08)   (0.40)   18.20    16.49    128,210    0.40e    0.29e    1.89    7 

 

86 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds   ■  2021 Annual Report 87
 
Financial highlights continued
   
TIAA-CREF 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
or year
ended		  value,
beginning
of period		   investment
income
(loss)		a  gain (loss)
on total
investments		j   (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands)		   Gross
expenses		   Net
expenses		   investment
income
(loss)		   Portfolio
turnover
rate		 
LIFECYCLE INDEX 2055 FUND
Institutional Class:  5/31/21   $16.59    $0.32    $  6.14    $6.46    $(0.33)   $(0.02)   $(0.35)   $22.70    39.14%   $1,478,111    0.18%g    0.10%g    1.61%   6%
   5/31/20   15.80    0.37    0.82    1.19    (0.38)   (0.02)   (0.40)   16.59    7.37    801,496    0.20g    0.11g    2.23    7 
   5/31/19   16.15    0.33    (0.30)   0.03    (0.35)   (0.03)   (0.38)   15.80    0.34    439,798    0.20f    0.09f    2.04    4 
   5/31/18   14.67    0.32    1.49    1.81    (0.31)   (0.02)   (0.33)   16.15    12.35    239,571    0.18e    0.03e    2.02    5 
   5/31/17   12.84    0.28    1.86    2.14    (0.27)   (0.04)   (0.31)   14.67    16.95    99,158    0.24e    0.04e    2.05    11 
Advisor Class:  5/31/21   16.57    0.29    6.13    6.42    (0.31)   (0.02)   (0.33)   22.66    38.98    8,251    0.28g    0.20g    1.46    6 
   5/31/20   15.79    0.35    0.82    1.17    (0.37)   (0.02)   (0.39)   16.57    7.24    1,534    0.29g    0.20g    2.13    7 
   5/31/19   16.14    0.33    (0.31)   0.02    (0.34)   (0.03)   (0.37)   15.79    0.30    755    0.28f    0.17f    2.11    4 
   5/31/18   14.67    0.31    1.49    1.80    (0.31)   (0.02)   (0.33)   16.14    12.27    142    0.19e    0.05e    1.95    5 
   5/31/17   12.83    0.29    1.86    2.15    (0.27)   (0.04)   (0.31)   14.67    17.02    118    0.26e    0.05e    2.10    11 
Premier Class:  5/31/21   16.54    0.29    6.11    6.40    (0.30)   (0.02)   (0.32)   22.62    38.91    142,662    0.33g    0.25g    1.45    6 
   5/31/20   15.76    0.35    0.81    1.16    (0.36)   (0.02)   (0.38)   16.54    7.19    79,521    0.35g    0.26g    2.09    7 
   5/31/19   16.11    0.34    (0.33)   0.01    (0.33)   (0.03)   (0.36)   15.76    0.20    57,625    0.34f    0.23f    2.10    4 
   5/31/18   14.64    0.28    1.50    1.78    (0.29)   (0.02)   (0.31)   16.11    12.19    47,812    0.32e    0.18e    1.80    5 
   5/31/17   12.82    0.27    1.85    2.12    (0.26)   (0.04)   (0.30)   14.64    16.77    23,295    0.39e    0.19e    1.95    11 
Retirement Class:  5/31/21   16.50    0.28    6.08    6.36    (0.28)   (0.02)   (0.30)   22.56    38.76    149,564    0.43g    0.35g    1.44    6 
   5/31/20   15.73    0.34    0.79    1.13    (0.34)   (0.02)   (0.36)   16.50    7.05    114,986    0.46g    0.36g    2.02    7 
   5/31/19   16.07    0.29    (0.29)   0.00d    (0.31)   (0.03)   (0.34)   15.73    0.16    98,131    0.44f    0.33f    1.84    4 
   5/31/18   14.61    0.26    1.50    1.76    (0.28)   (0.02)   (0.30)   16.07    12.03    78,137    0.42e    0.28e    1.68    5 
   5/31/17   12.79    0.25    1.86    2.11    (0.25)   (0.04)   (0.29)   14.61    16.74    50,546    0.49e    0.28e    1.80    11 
LIFECYCLE INDEX 2060 FUND
Institutional Class:  5/31/21   12.75    0.25    4.78    5.03    (0.25)   (0.01)   (0.26)   17.52    39.68    600,348    0.21g    0.10g    1.59    6 
   5/31/20   12.14    0.28    0.63    0.91    (0.29)   (0.01)   (0.30)   12.75    7.36    267,485    0.26g    0.11g    2.21    16 
   5/31/19   12.44    0.26    (0.24)   0.02    (0.27)   (0.05)   (0.32)   12.14    0.25    112,059    0.32f    0.08f    2.15    28 
   5/31/18   11.29    0.25    1.16    1.41    (0.24)   (0.02)   (0.26)   12.44    12.44    58,145    0.42e    0.03e    2.04    32 
   5/31/17   9.89    0.21    1.47    1.68    (0.22)   (0.06)   (0.28)   11.29    17.22    18,596    0.93e    0.04e    2.02    36 
Advisor Class:  5/31/21   12.75    0.20    4.81    5.01    (0.24)   (0.01)   (0.25)   17.51    39.51    5,527    0.30g    0.20g    1.31    6 
   5/31/20   12.15    0.27    0.62    0.89    (0.28)   (0.01)   (0.29)   12.75    7.21    1,292    0.35g    0.20g    2.11    16 
   5/31/19   12.45    0.26    (0.25)   0.01    (0.26)   (0.05)   (0.31)   12.15    0.22    590    0.39f    0.17f    2.16    28 
   5/31/18   11.29    0.23    1.18    1.41    (0.23)   (0.02)   (0.25)   12.45    12.52    157    0.42e    0.05e    1.92    32 
   5/31/17   9.89    0.22    1.46    1.68    (0.22)   (0.06)   (0.28)   11.29    17.20    118    0.94e    0.05e    2.10    36 
Premier Class:  5/31/21   12.73    0.22    4.77    4.99    (0.23)   (0.01)   (0.24)   17.48    39.44    40,943    0.35g    0.25g    1.42    6 
   5/31/20   12.13    0.27    0.61    0.88    (0.27)   (0.01)   (0.28)   12.73    7.17    17,927    0.41g    0.26g    2.09    16 
   5/31/19   12.43    0.24    (0.24)   0.00d    (0.25)   (0.05)   (0.30)   12.13    0.12    8,644    0.46f    0.23f    1.95    28 
   5/31/18   11.28    0.18    1.21    1.39    (0.22)   (0.02)   (0.24)   12.43    12.34    5,040    0.55e    0.18e    1.51    32 
   5/31/17   9.88    0.20    1.46    1.66    (0.20)   (0.06)   (0.26)   11.28    17.05    1,810    1.07e    0.19e    1.92    36 
Retirement Class:  5/31/21   12.70    0.22    4.75    4.97    (0.22)   (0.01)   (0.23)   17.44    39.33    55,903    0.45g    0.35g    1.43    6 
   5/31/20   12.11    0.26    0.60    0.86    (0.26)   (0.01)   (0.27)   12.70    7.01    37,293    0.51g    0.36g    2.00    16 
   5/31/19   12.41    0.23    (0.24)   (0.01)   (0.24)   (0.05)   (0.29)   12.11    0.05    25,636    0.56f    0.33f    1.89    28 
   5/31/18   11.26    0.19    1.19    1.38    (0.21)   (0.02)   (0.23)   12.41    12.29    15,437    0.65e    0.28e    1.59    32 
   5/31/17   9.88    0.18    1.46    1.64    (0.20)   (0.06)   (0.26)   11.26    16.84    5,413    1.15e    0.28e    1.71    36 

 

88 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds   ■  2021 Annual Report 89
 
Financial highlights concluded
   
TIAA-CREF 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
or year
ended		  value,
beginning
of period		   investment
income
(loss)		a  gain (loss)
on total
investments 		j  (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands)		   Gross
expenses		   Net
expenses		   investment
income
(loss)		   Portfolio
turnover
rate		 
LIFECYCLE INDEX 2065 FUND
Institutional Class:  5/31/21§   $10.00    $0.15    $2.48    $2.63    $(0.18)   $—    $(0.18)   $12.45    26.45%b   $7,131    3.91%c,g   0.10%c,g   2.02%c   36%b
Advisor Class:  5/31/21§   10.00    0.16    2.48    2.64    (0.18)   —    (0.18)   12.46    26.48b    626    4.26c,g   0.25c,g   2.16c   36b
Premier Class:  5/31/21§   10.00    0.16    2.48    2.64    (0.18)   —    (0.18)   12.46    26.48b    637    4.41c,g   0.25c,g   2.14c   36b
Retirement Class:  5/31/21§   10.00    0.15    2.46    2.61    (0.17)   —    (0.17)   12.44    26.35b    693    4.54c,g   0.35c,g   2.00c   36b
§ The Fund commenced operations on September 30, 2020.
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.
f From June 1, 2018 through September 30, 2018, the Fund’s expenses do not include the expenses of the Underlying Funds. Beginning October 1, 2018, the Lifecycle Index Fund’s expenses include the expenses of the Underlying Funds.
g The Fund’s expenses include the expenses of the Underlying Funds.
j Short-term and long-term capital gain distributions received from the underlying Funds are presented in net realized and unrealized gain (loss) on total investments for all periods presented.

 

90 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifecycle Index Funds   ■  2021 Annual Report 91
 

Notes to financial statements

 

TIAA-CREF Lifecycle Index Funds

 

Note 1—organization

 

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 U.S. Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The Lifecycle Index 2065 Fund commenced operations on September 30, 2020.

 

Teachers Advisors, LLC (“Advisors”), a wholly owned indirect subsidiary of Teachers Insurance and Annuity Association of America (“TIAA”), is registered with the SEC as an investment adviser and provides investment management services for the Funds.

 

The Funds offer their shares, without a sales load, through their principal underwriter, Nuveen Securities, LLC (“Nuveen Securities”), which is a wholly owned indirect subsidiary of TIAA.

 

Each Fund is a “fund of funds” that diversifies its assets by investing in Class W shares of other funds of the Trust and potentially other investment pools or investment products. The Funds offer Institutional Class, Advisor Class, Premier Class and Retirement Class shares. Each class differs by the allocation of class-specific expenses and voting rights in matters affecting a single class.

 

Note 2—significant accounting policies

 

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.

 

Investments and investment income: Securities transactions are accounted for as of the trade date for financial reporting purposes. Interest income is recorded on an accrual basis and includes accretion of discounts and amortization of premiums. Dividend income is recorded on the ex-dividend date. Realized gains and losses on securities transactions are based upon the specific identification method. Distributions received on securities that represent a return of capital or capital gains are recorded as a reduction of cost of investments and/or as a realized gain. The Funds estimate the components of distributions received that may be considered return of capital distributions or capital gain distributions.

 

92 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Multiclass operations and allocations: 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 are recorded on the ex-dividend date. The amount, character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

 

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 separately 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.

 

Indemnification: Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

Other matters: The outbreak of the novel coronavirus (“COVID-19”) and subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the calendar quarter ended March 31, 2020. The worldwide spread of COVID-19 has created significant uncertainty in the global economy. The duration and extent of COVID-19 over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Funds’ normal course of business, results of operations, investments, and cash flows will depend on future developments, which are highly uncertain and difficult to predict. Management continues to monitor and evaluate this situation.

 

New rule issuance: In December 2020, the SEC voted to adopt a new rule governing fund valuation practices. New Rule 2a-5 under the 1940 Act establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of Section 2(a)(41) of the 1940

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 93
 

Notes to financial statements

 

Act, which requires a fund to fair value a security when market quotations are not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth the recordkeeping requirements associated with fair value determinations. Finally, the SEC is rescinding previously issued guidance on related issues, including the role of a board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, with a compliance date of September 8, 2022. A fund may voluntarily comply with the rules after the effective date, and in advance of the compliance date, under certain conditions. Management is currently assessing the impact of these provisions on the Funds’ financial statements.

 

Note 3—valuation of investments

 

The Funds’ investments in securities are recorded at their estimated fair value utilizing valuation methods approved by the Board. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. U.S. GAAP establishes the three-tier hierarchy that is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect management’s assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.

 

• Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
• Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.).
• Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

 

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

 

Investments in registered investment companies: Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.

 

As of May 31, 2021, all of the investments in the Funds were valued based on Level 1 inputs.

 

94 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

Note 4—investments

 

Purchases and sales: Purchases and sales of securities (other than short-term instruments) for all of the Funds for the year ended May 31, 2021 were as follows (dollar amounts are in thousands):

 

Fund  Non-U.S.
government
Purchases		   Non-U.S.
government
Sales		 
Lifecycle Index Retirement Income   177,185    128,969 
Lifecycle Index 2010   235,782    177,731 
Lifecycle Index 2015   289,621    292,074 
Lifecycle Index 2020   724,015    660,291 
Lifecycle Index 2025   1,263,154    830,705 
Lifecycle Index 2030   1,459,341    800,049 
Lifecycle Index 2035   1,340,970    705,986 
Lifecycle Index 2040   1,231,257    676,783 
Lifecycle Index 2045   900,506    378,458 
Lifecycle Index 2050   733,019    260,539 
Lifecycle Index 2055   442,236    80,686 
Lifecycle Index 2060   258,082    31,384 
Lifecycle Index 2065   9,851    2,164 

 

Note 5—Income tax and other tax matters

 

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.

 

For the year ended May 31, 2021, permanent book and tax differences resulting primarily from the reclassification of short-term capital gain distributions received from underlying funds from realized gain (loss) to ordinary income, the utilization of tax equalization credits, and nondeductible 12b-1 fees, were identified and reclassified among the components of certain Funds’ net assets. Net investment income and net

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 95
 

Notes to financial statements

 

realized gains (losses), as disclosed on the Statements of operations, and net assets were not affected by these reclassifications.

 

Net unrealized appreciation (depreciation): At May 31, 2021, net unrealized appreciation (depreciation) based on the aggregate cost of all investments for federal income tax purposes, consisting of gross unrealized appreciation and gross unrealized depreciation, was as follows (dollar amounts are in thousands):

 

Fund  Tax cost   Gross
unrealized
appreciation		   Gross
unrealized
(depreciation)		   Net unrealized
appreciation
(depreciation)		 
Lifecycle Index Retirement Income   $  519,183    $   112,002    $  (6,755)   $   105,247 
Lifecycle Index 2010   541,936    152,826    (7,678)   145,148 
Lifecycle Index 2015   904,328    294,881    (12,184)   282,697 
Lifecycle Index 2020   2,595,467    798,501    (29,946)   768,555 
Lifecycle Index 2025   4,016,527    1,245,343    (39,189)   1,206,154 
Lifecycle Index 2030   4,472,443    1,526,732    (43,122)   1,483,610 
Lifecycle Index 2035   4,088,340    1,574,478    (36,419)   1,538,059 
Lifecycle Index 2040   4,035,758    1,805,685    (36,341)   1,769,344 
Lifecycle Index 2045   3,019,225    1,325,213    (18,563)   1,306,650 
Lifecycle Index 2050   2,482,172    1,064,383    (13,414)   1,050,969 
Lifecycle Index 2055   1,301,756    477,453    (5,801)   471,652 
Lifecycle Index 2060   541,441    161,541    (3,088)   158,453 
Lifecycle Index 2065   7,696    1,374    (18)   1,356 

 

For purposes of this disclosure, tax cost generally includes the cost of portfolio investments as well as up-front fees or premiums exchanged on derivatives and any amounts unrealized for income statement reporting but realized in income and/or capital gains for tax reporting.

 

Distributions to shareholders: The tax character of distributions paid to shareholders during the years ended May 31, 2021 and May 31, 2020 was as follows:

 

    5/31/2021     5/31/2020  
Fund   Ordinary
income		     Long-term
capital gains		     Total     Ordinary
income		     Long-term
capital gains		     Total  
Lifecycle Index Retirement Income   $ 11,237,378       $  825,217     $ 12,062,595     $ 10,281,606       $   249,708     $ 10,531,314  
Lifecycle Index 2010     12,439,690       2,873,726       15,313,416       11,556,368       215,640       11,772,008  
Lifecycle Index 2015     22,866,991       7,287,097       30,154,088       23,124,293       837,426       23,961,719  
Lifecycle Index 2020     63,783,593       8,527,097       72,310,690       58,674,748       1,336,756       60,011,504  
Lifecycle Index 2025     94,822,266       4,932,547       99,754,813       76,333,389       2,253,885       78,587,274  
Lifecycle Index 2030     103,718,573       2,331,838       106,050,411       81,703,376       2,836,142       84,539,518  
Lifecycle Index 2035     95,237,190       2,531,313       97,768,503       74,270,783       3,074,086       77,344,869  
Lifecycle Index 2040     94,411,870       3,146,424       97,558,294       77,729,094       3,662,135       81,391,229  
Lifecycle Index 2045     61,965,333       2,382,680       64,348,013       52,735,276       2,617,378       55,352,654  
Lifecycle Index 2050     48,633,893       1,845,303       50,479,196       40,799,549       1,982,613       42,782,162  
Lifecycle Index 2055     22,398,370       836,159       23,234,529       17,880,351       784,794       18,665,145  
Lifecycle Index 2060     7,954,357       234,777       8,189,134       5,024,752       177,372       5,202,124  
Lifecycle Index 2065     92,471       —       92,471       —       —       —  

 

96 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

Components of accumulated earnings: As of May 31, 2021, the components of accumulated earnings on a tax basis were as follows:

 

Fund  Undistributed
ordinary
income		   Undistributed
long-term
capital gains		   Unrealized
appreciation
(depreciation)		   Total 
Lifecycle Index Retirement Income   $   2,070,413    $   4,653,532    $   105,247,237   $111,971,182 
Lifecycle Index 2010   5,834,310    4,760,130    145,148,419    155,742,859 
Lifecycle Index 2015   6,454,702    15,997,310    282,696,549    305,148,561 
Lifecycle Index 2020   19,518,579    39,490,911    768,555,486    827,564,976 
Lifecycle Index 2025   28,422,570    28,779,391    1,206,153,546    1,263,355,507 
Lifecycle Index 2030   33,871,880    7,241,014    1,483,610,483    1,524,723,377 
Lifecycle Index 2035   23,795,702    6,068,007    1,538,058,767    1,567,922,476 
Lifecycle Index 2040   22,723,930    4,155,108    1,769,344,186    1,796,223,224 
Lifecycle Index 2045   6,937,219    2,118,808    1,306,650,147    1,315,706,174 
Lifecycle Index 2050   3,800,680    1,408,677    1,050,969,283    1,056,178,640 
Lifecycle Index 2055   348,396    566,690    471,652,099    472,567,185 
Lifecycle Index 2060   74,389    147,794    158,453,150    158,675,333 
Lifecycle Index 2065   6,038    1,572    1,355,781    1,363,391 

 

The difference between book basis and tax basis net investment income, net realized gains and losses, and unrealized appreciation and depreciation is attributable primarily to the tax deferral of losses on wash sales.

 

Note 6—investment adviser and other transactions with affiliates

 

Under the terms of its Investment Management Agreement, Advisors is entitled to a fee that is made up of two components, which are added together to create the total investment management fee. The first component, the asset allocation fee rate, is an annual rate of 0.10% of the average daily net assets of each Fund. The second component, the Underlying Funds fee rate is calculated as follows: for each Underlying Fund of the Trust in which a Fund is invested, the effective Underlying Fund’s annual investment management fee rate, as determined pursuant to its investment management agreement, net of any fee waivers or reimbursements applicable to the Underlying Fund (excluding the Class W shares investment management fee waiver and/or reimbursement), in proportion to the percentage of the Fund’s net assets invested in the Underlying Fund, applied to the Fund’s average daily net assets. Advisors has contractually agreed to waive a portion of the asset allocation fee rate (and, for the Lifecycle Index Retirement Income and Lifecycle Index 2010 Funds, a portion of the Underlying Funds fee rate) equal to, on an annual basis, the following percentages of the average daily net assets of each Fund. As of May 31, 2021, Advisors received from the Funds the following effective annual rate as a percentage of average daily net assets of each Fund:

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 97
 

Notes to financial statements

 

       Investment management
fee waiver		 
Fund  Investment management
fee — effective rate		   Effective
9/30/20		*  Prior to
9/30/20		 
Lifecycle Index Retirement Income   0.09%   0.104%   0.102%
Lifecycle Index 2010   0.09    0.104    0.102 
Lifecycle Index 2015   0.09    0.098    0.095 
Lifecycle Index 2020   0.09    0.092    0.089 
Lifecycle Index 2025   0.09    0.085    0.082 
Lifecycle Index 2030   0.09    0.078    0.075 
Lifecycle Index 2035   0.09    0.071    0.069 
Lifecycle Index 2040   0.09    0.067    0.065 
Lifecycle Index 2045   0.09    0.062    0.062 
Lifecycle Index 2050   0.09    0.062    0.061 
Lifecycle Index 2055   0.09    0.061    0.060 
Lifecycle Index 2060   0.09    0.061    0.060 
Lifecycle Index 2065   0.09    0.060    N/A 

 

* These waivers will remain in effect through September 30, 2021, unless changed with approval of the Board.

 

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 Nuveen Securities 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, Nuveen Securities 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, 2021. This agreement may be terminated before this date with the approval of the Board.

 

98 2021 Annual 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, extraordinary expenses and the management fees and certain other expenses originally attributable to Class W shares of the affiliated TIAA-CREF Funds) exceeds the following percentages of average daily net assets for each class:

 

   Maximum expense amounts 
   Institutional
Class		   Advisor
Class		   Premier
Class		   Retirement
Class		 
Fund  Effective
9/30/20†		   Prior to
9/30/20		   Effective
9/30/20†		   Prior to
9/30/20		   Effective
9/30/20†		   Prior to
9/30/20		   Effective
9/30/20†		   Prior to
9/30/20		 
Lifecycle Index Retirement Income   0.000%   0.000%   0.150%   0.150%   0.150%   0.150%   0.250%   0.250%
Lifecycle Index 2010   0.000    0.000    0.150    0.150    0.150    0.150    0.250    0.250 
Lifecycle Index 2015   0.002    0.005    0.152    0.155    0.152    0.155    0.252    0.255 
Lifecycle Index 2020   0.008    0.011    0.158    0.161    0.158    0.161    0.258    0.261 
Lifecycle Index 2025   0.015    0.018    0.165    0.168    0.165    0.168    0.265    0.268 
Lifecycle Index 2030   0.022    0.025    0.172    0.175    0.172    0.175    0.272    0.275 
Lifecycle Index 2035   0.029    0.031    0.179    0.181    0.179    0.181    0.279    0.281 
Lifecycle Index 2040   0.033    0.035    0.183    0.185    0.183    0.185    0.283    0.285 
Lifecycle Index 2045   0.038    0.038    0.188    0.188    0.188    0.188    0.288    0.288 
Lifecycle Index 2050   0.038    0.039    0.188    0.189    0.188    0.189    0.288    0.289 
Lifecycle Index 2055   0.039    0.040    0.189    0.190    0.189    0.190    0.289    0.290 
Lifecycle Index 2060   0.039    0.040    0.189    0.190    0.189    0.190    0.289    0.290 
Lifecycle Index 2065   0.040    N/A    0.190    N/A    0.190    N/A    0.290    N/A 

 

† The expense reimbursement arrangements will continue through at least September 30, 2021, unless changed with approval of the Board.

 

The Funds may purchase or sell investment securities in transactions with affiliated entities under procedure adopted by the Board, pursuant to the 1940 Act. These transactions are effected at market rates without incurring broker commissions. For the year ended May 31, 2021, the Funds did not engage in security transactions with affiliated entities.

 

The following is the percentage of the Funds’ shares owned by TIAA as of May 31, 2021:

 

Fund   TIAA  
Lifecycle Index Retirement Income   — %
Lifecycle Index 2010   —  
Lifecycle Index 2015   —  
Lifecycle Index 2020   —  
Lifecycle Index 2025   —  
Lifecycle Index 2030   —  
Lifecycle Index 2035   —  
Lifecycle Index 2040   —  
Lifecycle Index 2045   —  
Lifecycle Index 2050   —  
Lifecycle Index 2055   —  
Lifecycle Index 2060   —  
Lifecycle Index 2065   69  

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 99
 

Notes to financial statements

 

Investments in other investment companies advised by Advisors are deemed to be affiliated investments. The Funds invest their assets in the Class W shares of the affiliated TIAA-CREF Funds. Information regarding transactions with affiliated companies is as follows (dollar amounts are in thousands):

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss)		   Change in
unrealized
appreciation
(depreciation)		   Dividend
income		   Value at
5/31/21		 
Lifecycle Index Retirement Income Fund                          
TIAA-CREF Funds:                                   
Bond Index  $199,322       $84,764     $26,677     $1,322            $(7,874)  $4,801   $249,105 
Emerging Markets Equity Index   18,063    6,210    7,288    130    7,868    517    24,983 
Equity Index   142,439    34,798    59,833    6,427    50,845    2,452    174,676 
Inflation-Linked Bond   49,866    16,816    7,222    1    3,053    905    62,514 
International Equity Index   42,701    10,089    16,421    165    14,351    966    50,885 
Short-Term Bond Index   49,767    19,643    6,748    120    (371)   671    62,267 
   $502,158   $172,320   $124,189   $8,165   $67,872   $10,312   $624,430 
Lifecycle Index 2010 Fund                          
TIAA-CREF Funds:                                   
Bond Index  $217,213   $111,396   $44,674   $1,104   $(8,459)  $5,288   $274,591 
Emerging Markets Equity Index   19,751    7,576    9,320    369    8,424    583    26,800 
Equity Index   155,760    46,851    77,571    10,135    52,915    2,756    188,090 
Inflation-Linked Bond   54,120    23,654    12,383    39    3,332    1,007    68,762 
International Equity Index   46,698    13,592    22,153    1,071    14,995    1,082    54,203 
Short-Term Bond Index   54,013    32,713    11,630    124    (411)   761    74,639 
   $547,555   $235,782   $177,731   $12,842   $70,796   $11,477   $687,085 
Lifecycle Index 2015 Fund                          
TIAA-CREF Funds:                                   
Bond Index  $396,903   $149,392   $67,258   $2,351   $(14,416)  $9,077   $463,648 
Emerging Markets Equity Index   41,561    10,091    16,941    728    16,839    1,123    52,278 
Equity Index   328,129    53,691    140,158    26,561    97,966    5,307    366,189 
Inflation-Linked Bond   81,041    28,022    14,678    69    4,798    1,432    99,252 
International Equity Index   98,402    15,081    38,246    1,459    30,129    2,087    106,825 
Short-Term Bond Index   80,906    33,344    14,793    180    (575)   1,061    98,833 
   $1,026,942   $289,621   $292,074   $31,348   $134,741     $20,087   $1,187,025 
Lifecycle Index 2020 Fund                          
TIAA-CREF Funds:                                   
Bond Index  $1,049,991   $400,487   $127,492   $6,913   $(40,514)  $24,715   $1,280,267 
Emerging Markets Equity Index   125,812    26,707    41,879    1,571    52,707    3,499    164,918 
Equity Index   993,356    133,998    357,433    59,126    326,003    16,624    1,155,050 
Inflation-Linked Bond   165,036    57,979    19,335    18    10,185    3,012    213,883 
International Equity Index   297,977    36,683    95,641    1,865    95,982    6,550    336,866 
Short-Term Bond Index   164,707    68,161    18,511    408    (1,240)   2,229    213,039 
   $2,796,879   $724,015   $660,291   $69,901   $443,123   $56,629   $3,364,023 

 

100 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss)		   Change in
unrealized
appreciation
(depreciation)		   Dividend
income		   Value at
5/31/21		 
Lifecycle Index 2025 Fund                                   
TIAA-CREF Funds:                                   
Bond Index  $1,319,833   $667,640   $123,055     $9,837   $(55,677)    $32,722   $1,806,498 
Emerging Markets Equity Index   204,769    58,982    59,804    255    90,433    5,963    294,635 
Equity Index   1,615,649    286,206    487,630    50,434    600,417    28,220    2,065,076 
Inflation-Linked Bond   154,011    78,322    14,952    (22)   10,101    3,002    227,460 
International Equity Index   484,538    84,170    131,549    (775)   166,025    11,140    602,409 
Short-Term Bond Index   153,784    87,834    13,715    424    (1,242)   2,194    226,603 
   $3,932,584   $1,263,154   $830,705   $60,153   $810,057   $83,241   $5,222,681 
Lifecycle Index 2030 Fund                          
TIAA-CREF Funds:                                   
Bond Index  $1,245,280   $745,001   $111,121   $9,491   $(55,481)  $31,954   $1,821,385 
Emerging Markets Equity Index   249,178    77,999    55,914    (848)   113,293    7,504    383,708 
Equity Index   1,966,372    390,853    486,118    33,263    783,090    35,516    2,687,460 
Inflation-Linked Bond   81,440    58,969    6,052    (19)   5,771    1,719    140,109 
International Equity Index   589,786    122,253    135,495    (2,645)   210,009    14,022    783,908 
Short-Term Bond Index   81,311    64,266    5,349    249    (716)   1,245    139,483 
   $4,213,367   $1,459,341   $800,049   $39,491   $1,055,966   $91,960   $5,956,053 
Lifecycle Index 2035 Fund                          
TIAA-CREF Funds:                                   
Bond Index  $982,813   $656,499   $96,255   $7,357   $(44,883)  $25,799   $1,495,980 
Emerging Markets Equity Index   255,125    86,872    51,815    (894)   117,815    7,848    407,103 
Equity Index   2,011,851    418,921    430,406    24,548    827,023    37,210    2,851,937 
Inflation-Linked Bond   —    19,797    346    (2)   370    115    19,819 
International Equity Index   603,304    138,739    126,810    (2,461)   219,048    14,672    831,820 
Short-Term Bond Index   —    20,142    354    17    (46)   73    19,739 
   $3,853,093   $1,340,970   $705,986   $28,565   $1,119,327   $85,717   $5,626,398 
Lifecycle Index 2040 Fund                          
TIAA-CREF Funds:                                   
Bond Index  $691,654   $535,704   $71,609   $5,061   $(33,106)  $18,780   $1,120,711 
Emerging Markets Equity Index   288,317    108,124    62,274    (1,572)   134,445    9,023    467,040 
Equity Index   2,273,187    437,105    416,610    25,626    945,195    42,652    3,264,503 
International Equity Index   681,619    150,324    126,290    (2,724)   249,919    16,794    952,848 
   $3,934,777   $1,231,257   $676,783   $26,391   $1,296,453   $87,249   $5,805,102 
Lifecycle Index 2045 Fund                          
TIAA-CREF Funds:                                   
Bond Index  $271,438   $259,700   $25,522   $2,042   $(14,023)  $7,780   $490,739 
Emerging Markets Equity Index   220,798    92,042    35,724    (1,280)   105,779    7,190    381,615 
Equity Index   1,737,350    399,723    231,686    7,672    760,480    33,954    2,673,539 
International Equity Index   520,944    149,041    85,526    (2,035)   197,558    13,342    779,982 
   $2,750,530   $900,506   $378,458   $6,399   $1,049,794   $62,266   $4,325,875 

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 101
 

Notes to financial statements

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain
(loss)		   Change in
unrealized
appreciation
(depreciation)		   Dividend
income		   Value at
5/31/21		 
Lifecycle Index 2050 Fund                           
TIAA-CREF Funds:                                   
Bond Index  $189,066       $154,287   $18,299      $1,365             $(9,269)    $5,234   $315,210 
Emerging Markets Equity Index   178,327    84,817    28,550    (1,090)   86,661    5,919    320,165 
Equity Index   1,403,245    363,162    155,414    3,793    628,646    27,953    2,243,432 
International Equity Index   420,707    130,753    58,275    (1,395)   162,544    10,985    654,334 
   $2,191,345   $733,019   $260,538   $2,673   $868,582   $50,091   $3,533,141 
Lifecycle Index 2055 Fund                           
TIAA-CREF Funds:                                   
Bond Index  $73,538   $71,069   $4,387   $681   $(3,937)  $2,134   $136,177 
Emerging Markets Equity Index   82,065    49,809    9,576    (409)   41,027    2,834    162,916 
Equity Index   645,730    237,600    44,737    (40)   302,948    13,388    1,141,501 
International Equity Index   193,605    83,758    21,986    (661)   78,099    5,261    332,815 
   $994,938   $442,236   $80,686   $(429)  $418,137   $23,617   $1,773,409 
Lifecycle Index 2060 Fund                             
TIAA-CREF Funds:                                   
Bond Index  $19,877   $27,687   $1,284   $201   $(1,225)  $643   $45,021 
Emerging Markets Equity Index   26,974    27,318    3,086    (125)   14,370    1,028    65,451 
Equity Index   212,135    147,844    13,133    (86)   109,594    4,853    456,354 
International Equity Index   63,600    49,541    8,190    (243)   28,360    1,905    133,068 
   $322,586   $252,390   $25,693   $(253)  $151,099   $8,429   $699,894 
Lifecycle Index 2065 Fund                           
TIAA-CREF Funds:                                   
Bond Index  $—   $504   $23   $2   $(11)  $4   $470 
Emerging Markets Equity Index   —    798    50    (2)   113    12    859 
Equity Index   —    5,340    348    —^   989    57    5,981 
International Equity Index   —    1,624    158    3    272    23    1,741 
   $—   $8,266   $579   $3   $1,363   $96   $9,051 

 

^ Some amounts represent less than $1,000.

 

102 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

concluded

 

Note 7—inter-fund lending program

 

Pursuant to an exemptive order issued by the SEC, the Funds may participate in an inter-fund lending program. This program allows the Funds to lend cash to and/or borrow cash from certain other affiliated Funds for temporary purposes, (e.g., to satisfy redemption requests or to cover unanticipated cash shortfalls). The program is subject to a number of conditions, including the requirement that no Fund may borrow or lend money under the program unless it receives a more favorable interest rate than is available from a bank or other financial institution for a comparable transaction. In addition, a Fund may participate in the program only if its participation is consistent with the Fund’s investment policies and limitations and authorized by its portfolio manager(s). During the year ended May 31, 2021, there were no inter-fund borrowing or lending transactions.

 

Note 8—line of credit

 

The Funds participate in a $1 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 15, 2021 expiring on June 14, 2022, replacing the previous facility, which expired June 2021. Certain affiliated accounts and mutual funds, each of which is managed by Advisors, or an affiliate of Advisors, also participate in this facility. An annual commitment fee for the credit facility is borne by the participating accounts and mutual funds on a pro rata basis. Interest associated with any borrowing under the facility is charged to the borrowing accounts or mutual funds at a specified rate of interest. The Funds are not liable for borrowings under the facility by other affiliated accounts or mutual funds. For the year ended May 31, 2021, there were no borrowings under this credit facility by the Funds.

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 103
 

Report of independent registered public accounting firm

 

To the Board of Trustees of TIAA-CREF Funds and Shareholders of TIAA-CREF Lifecycle Index Retirement Income Fund, TIAA-CREF Lifecycle Index 2010 Fund, TIAA-CREF Lifecycle Index 2015 Fund, TIAA-CREF Lifecycle Index 2020 Fund, TIAA-CREF Lifecycle Index 2025 Fund, TIAA-CREF Lifecycle Index 2030 Fund, TIAA-CREF Lifecycle Index 2035 Fund, TIAA-CREF Lifecycle Index 2040 Fund, TIAA-CREF Lifecycle Index 2045 Fund, TIAA-CREF Lifecycle Index 2050 Fund, TIAA-CREF Lifecycle Index 2055 Fund, TIAA-CREF Lifecycle Index 2060 Fund, and TIAA-CREF Lifecycle Index 2065 Fund

 

Opinions on the Financial Statements

 

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of TIAA-CREF Lifecycle Index Retirement Income Fund, TIAA-CREF Lifecycle Index 2010 Fund, TIAA-CREF Lifecycle Index 2015 Fund, TIAA-CREF Lifecycle Index 2020 Fund, TIAA-CREF Lifecycle Index 2025 Fund, TIAA-CREF Lifecycle Index 2030 Fund, TIAA-CREF Lifecycle Index 2035 Fund, TIAA-CREF Lifecycle Index 2040 Fund, TIAA-CREF Lifecycle Index 2045 Fund, TIAA-CREF Lifecycle Index 2050 Fund, TIAA-CREF Lifecycle Index 2055 Fund, TIAA-CREF Lifecycle Index 2060 Fund and Lifecycle Index 2065 Fund (thirteen of the funds constituting TIAA-CREF Funds, hereafter collectively referred to as the “Funds”) as of May 31, 2021, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of May 31, 2021, the results of each of their operations and the changes in each of their net assets for of the periods indicated in the table below, and each of the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.

 

TIAA-CREF Lifecycle Index Retirement Income Fund(1)   TIAA-CREF Lifecycle Index 2040 Fund(1)  
TIAA-CREF Lifecycle Index 2010 Fund(1)   TIAA-CREF Lifecycle Index 2045 Fund(1)  
TIAA-CREF Lifecycle Index 2015 Fund(1)   TIAA-CREF Lifecycle Index 2050 Fund(1)  
TIAA-CREF Lifecycle Index 2020 Fund(1)   TIAA-CREF Lifecycle Index 2055 Fund(1)  
TIAA-CREF Lifecycle Index 2025 Fund(1)   TIAA-CREF Lifecycle Index 2060 Fund(1)  
TIAA-CREF Lifecycle Index 2030 Fund(1)   TIAA-CREF Lifecycle Index 2065 Fund(2)  
TIAA-CREF Lifecycle Index 2035 Fund(1)      

 

(1) Statement of operations for the year ended May 31, 2021 and statement of changes in net assets for the years ended May 31, 2021 and 2020.
(2) Statement of operations and statement of changes in net assets for the period September 30, 2020 (commencement of operations) through May 31, 2021.

 

104 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Basis for Opinions

 

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of May 31, 2021 by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinions.

 

/s/ PricewaterhouseCoopers LLP

Baltimore, Maryland
July 16, 2021

 

We have served as the auditor of one or more investment companies in TIAA-CREF Funds’ investment company group since 2005.

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 105
 

Important tax information (unaudited)

 

For the year ended May 31, 2021, the Lifecycle Index Funds designate the following distribution amounts (or the maximum amount allowable) as being from net long-term capital gains.

 

Fund  Long term
capital gains
Lifecycle Index Retirement Income  $1,006,452
Lifecycle Index 2010   3,572,579
Lifecycle Index 2015   8,577,029
Lifecycle Index 2020   11,906,736
Lifecycle Index 2025   7,306,033
Lifecycle Index 2030   3,946,446
Lifecycle Index 2035   3,626,493
Lifecycle Index 2040   3,841,499
Lifecycle Index 2045   2,514,782
Lifecycle Index 2050   1,933,648
Lifecycle Index 2055   867,945
Lifecycle Index 2060   255,227
Lifecycle Index 2065   5

 

For the year ended May 31, 2021, the Lifecycle Index Funds designate the following percentages (or the maximum amount allowable) of ordinary income dividends paid as qualified dividends.

 

Fund  Percentage 
Lifecycle Index Retirement Income   29.2%
Lifecycle Index 2010   29.9 
Lifecycle Index 2015   31.3 
Lifecycle Index 2020   35.1 
Lifecycle Index 2025   40.2 
Lifecycle Index 2030   46.2 
Lifecycle Index 2035   52.7 
Lifecycle Index 2040   60.9 
Lifecycle Index 2045   73.9 
Lifecycle Index 2050   77.5 
Lifecycle Index 2055   80.6 
Lifecycle Index 2060   82.2 
Lifecycle Index 2065   83.9 

 

For the year ended May 31, 2021, the Lifecycle Index Funds designate the following percentages (or the maximum amount allowable) of ordinary income dividends paid as qualifying for the corporate dividends received deduction.

 

Fund  Percentage 
Lifecycle Index Retirement Income   19.5%
Lifecycle Index 2010   20.0 
Lifecycle Index 2015   20.9 
Lifecycle Index 2020   23.5 
Lifecycle Index 2025   26.8 
Lifecycle Index 2030   30.9 
Lifecycle Index 2035   35.2 
Lifecycle Index 2040   40.7 
Lifecycle Index 2045   49.4 
Lifecycle Index 2050   51.8 
Lifecycle Index 2055   54.0 
Lifecycle Index 2060   55.0 
Lifecycle Index 2065   56.1 

 

106 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

For the year ended May 31, 2021, the Lifecycle Index Funds received the following amounts of income from their respective underlying funds that was from foreign sources:

 

Fund  Foreign
source income		   Foreign source
income per share
Lifecycle Index Retirement Income  $1,405,101   $0.03874
Lifecycle Index 2010   1,577,184    0.04150
Lifecycle Index 2015   3,039,947    0.04892
Lifecycle Index 2020   9,518,800    0.05844
Lifecycle Index 2025   16,200,223    0.06919
Lifecycle Index 2030   20,389,920    0.08225
Lifecycle Index 2035   21,331,555    0.09745
Lifecycle Index 2040   24,450,743    0.11424
Lifecycle Index 2045   19,443,675    0.12537
Lifecycle Index 2050   16,007,923    0.12756
Lifecycle Index 2055   7,666,311    0.09775
Lifecycle Index 2060   2,777,572    0.06921
Lifecycle Index 2065   32,928    0.04512

 

For the year ended May 31, 2021, the Lifecycle Index Funds have elected to pass through the following amounts of foreign taxes paid by their respective underlying funds:

 

Fund  Foreign taxes
paid		   Foreign taxes
paid per share
Lifecycle Index Retirement Income  $121,650   $0.00335
Lifecycle Index 2010   136,640    0.00360
Lifecycle Index 2015   263,325    0.00424
Lifecycle Index 2020   823,971    0.00506
Lifecycle Index 2025   1,402,590    0.00599
Lifecycle Index 2030   1,765,313    0.00712
Lifecycle Index 2035   1,846,736    0.00844
Lifecycle Index 2040   2,117,690    0.00989
Lifecycle Index 2045   1,684,500    0.01086
Lifecycle Index 2050   1,386,825    0.01105
Lifecycle Index 2055   664,143    0.00847
Lifecycle Index 2060   240,668    0.00600
Lifecycle Index 2065   2,852    0.00391

 

The information and distributions reported herein may differ from the information and distributions reported to shareholders for the calendar year ending December 31, 2021, which will be reported in conjunction with your 2021 Form 1099-DIV.

 

By early 2022, shareholders should receive their Form 1099-DIV and a tax information letter from the Funds. For your specific situation, we recommend that you consult a professional tax adviser.

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 107
 

Trustees and officers (unaudited)

 

TIAA-CREF Funds  ■  May 31, 2021

 

Trustees

 

Name, Address and
Year of Birth (“YOB”)		  Position(s)
Held with
Fund		  Term of
Office and
Length
of Time
Served		  Principal Occupation(s) During Past 5 Years
and other relevant experience and qualifications		  Number of
Portfolios in
Fund Complex
Overseen
by Trustee		  Other Directorship(s)
Held by Trustee
Forrest Berkley
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1954		  Trustee  Indefinite term. Trustee since 2006.  Retired Partner (since 2006), Partner (1990–2005) and Head of Global Product Management (2003–2005), GMO (formerly, Grantham, Mayo, Van Otterloo & Co.) (investment management); and member of asset allocation portfolio management team, GMO (2003–2005).  88  Director, Save the Children Federation, Inc.; Investment Committee Member, Maine Community Foundation.
Joseph A. Boateng
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1963		  Trustee  Indefinite term. Trustee since 2019.  Chief Investment Officer, Casey Family Programs (since 2007). Director of U.S. Pension Plans at Johnson & Johnson (2002–2006). Manager, Financial Services Consultant, KPMG Consulting (2000–2002).  88  Board Member, Lumina Foundation and Waterside School; Investment Advisory Committee Chair, Seattle City Employees’ Retirement System; Investment Committee Member, The Seattle Foundation.
Janice C. Eberly
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		  Trustee  Indefinite term. Trustee since 2018.  James R. and Helen D. Russell Professor of Finance at the Kellogg School of Management, Northwestern University (2002–2011 and since 2013), Senior Associate Dean for Strategy and Academics (since 2020) and Chair of the Finance Department (2005–2007). Vice President, American Economic Association (2020). Assistant Secretary for Economic Policy, United States Department of the Treasury (2011–2013).  88  Member of the Board of the Office of Finance, Federal Home Loan Banks; Director, Avant, LLC.
   
108 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 
Nancy A. Eckl
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		  Trustee  Indefinite term. Trustee since 2007.  Vice President (1990–2006), American Beacon Advisors, Inc., and of certain funds advised by American Beacon Advisors, Inc.  88  Independent Director, The Lazard Funds, Inc., Lazard Retirement Series, Inc., and Lazard Global Total Return and Income Fund, Inc.
Michael A. Forrester
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1967		  Trustee  Indefinite term. Trustee since 2007.  Chief Executive Officer (2014–2021) and Chief Operating Officer (2007–2014), Copper Rock Capital Partners, LLC. Chief Operating Officer, DDJ Capital Management (2003–2006).  88  Trustee, Dexter Southfield School; Member, Governing Council of the Independent Directors Council.
Howell E. Jackson
 c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1954		  Trustee  Indefinite term. Trustee since 2005.  James S. Reid, Jr. Professor of Law (since 2004), Senior Advisor to President and Provost (2010–2012), Acting Dean (2009), Vice Dean for Budget (2003–2006) and on the faculty (since 1989) of Harvard Law School.  88  Director, Commonwealth (non-profit organization).
Thomas J. Kenny
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1963		  Chairman of the Board and Trustee  Indefinite term. Trustee since 2011; Chairman for term ending June 30, 2023. Chairman since September 13, 2017.  Advisory Director (2010–2011), Partner (2004–2010), Managing Director (1999–2004) and Co-Head of Global Cash and Fixed Income Portfolio Management Team (2002–2010), Goldman Sachs Asset Management.  88  Director and Chair of the Finance and Investment Committee, Aflac Incorporated; Director and Investment Committee Member, Sansum Clinic; Director, ParentSquare; Member, University of California at Santa Barbara Arts and Lectures Advisory Council.
James M. Poterba
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1958		  Trustee  Indefinite term. Trustee since 2006.  President and Chief Executive Officer (since 2008) and Program Director (1990-2008), National Bureau of Economic Research. Mitsui Professor of Economics, Massachusetts Institute of Technology (“MIT”) (since 1996); Affiliated Faculty Member of the Finance Group, Alfred P. Sloan School of Management (since 2014); Head (2006–2008) and Associate Head (1994–2000 and 2001–2006), Economics Department of MIT.  88  Director, National Bureau of Economic Research; Trustee, Alfred P. Sloan Foundation; Member, Congressional Budget Office Panel of Economic Advisers.
   
TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 109
 
Trustees and officers (unaudited) continued
   
TIAA-CREF Funds  ■  May 31, 2021  
   
Trustees – concluded  
   
Name, Address and
Year of Birth (“YOB”)		  Position(s)
Held with
Fund		  Term of
Office and
Length
of Time
Served		  Principal Occupation(s) During Past 5 Years
and other relevant experience and qualifications		  Number of
Portfolios in
Fund Complex
Overseen
by Trustee		  Other Directorship(s)
Held by Trustee
Maceo K. Sloan
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1949		  Trustee  Indefinite term. Trustee since 1999.  Chairman, President and Chief Executive Officer, Sloan Financial Group, Inc. (1991–2018); Chairman and Chief Executive Officer
(1991–2016), Chief Investment Officer
(1991–2013) and Chief Compliance Officer
(2015–2016), NCM Capital Management
Group, Inc.; Chairman, Chief Executive Officer
(2003–2016), Chief Investment Officer
(2003–2013) and Chief Compliance Officer
(2015–2016), NCM Capital Advisers, Inc.; and Chairman, President and Principal Executive Officer, NCM Capital Investment Trust (2007–2012).		  88  Director, TheraTrue Inc.
Laura T. Starks
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1950		  Trustee  Indefinite term. Trustee since 2006.  Charles E. and Sarah M. Seay Regents Chair in Finance (since 2002), Co-Executive Director, Social Innovation Initiative (since 2015), Director, AIM Investment Center (2000–2016), Associate Dean for Research (2011–2016), Chairman, Department of Finance (2002–2011) and Professor (since 1987), McCombs School of Business, University of Texas at Austin. President (2019–2020), Vice President (2013–2018), Society of Financial Studies. President (since 2020), Vice President (2019–2020) American Finance Association.  88  Texa$aver Product Committee Member, Employees Retirement System of Texas.
   
110 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Officers

 

Name, Address and
Year of Birth (“YOB”)		  Position(s)
Held with
Fund		  Term of
Office and
Length
of Time
Served		  Principal Occupation(s) During Past 5 Years
Richard S. Biegen
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		  Chief Compliance Officer  One-year term. Chief Compliance Officer since 2008.  Senior Managing Director, TIAA. Chief Compliance Officer of the College Retirement Equities Fund (“CREF”), TIAA Separate Account VA-1, TIAA-CREF Funds and TIAA-CREF Life Funds (collectively, the “TIAA-CREF Fund Complex”).
Derek B. Dorn
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1976		  Senior Managing Director and Corporate Secretary  One-year term. Senior Managing Director and Corporate Secretary since 2020.  Senior Managing Director and Corporate Secretary of Teachers Insurance and Annuity Association of America (“TIAA”) and the TIAA-CREF Fund Complex. Formerly, Managing Director, Special Assistant to the CEO, and Managing Director, Regulatory Affairs, TIAA. Prior to joining TIAA, Mr. Dorn served as a partner at Davis & Harman LLP and an adjunct professor of Law at Georgetown University Law Center.
Bradley Finkle
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1973		  Principal Executive Officer and President  One-year term. Principal Executive Officer and President since 2017.  Chief Operating Officer, Nuveen. Principal Executive Officer and President of the TIAA-CREF Funds and TIAA-CREF Life Funds. Chief Executive Officer and President of CREF and TIAA Separate Account VA-1. Formerly, Senior Managing Director, Co-Head Nuveen Equities & Fixed Income and President of TIAA Investments.
Jose Minaya
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1971		  Executive Vice President  One-year term. Executive Vice President since 2018.  Chief Executive Officer, Nuveen. Executive Vice President of the TIAA-CREF Fund Complex. Formerly, Executive Vice President, President and Chief investment Officer, Nuveen; Executive Vice President, Chief Investment Officer and President, Nuveen Global Investments; and Senior Managing Director, President, Global Investments, TIAA.
David Nason
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1970		  Executive Vice President  One-year term. Executive Vice President since 2020.  Senior Executive Vice President, Chief Legal, Risk and Compliance Officer of TIAA. Executive Vice President of the TIAA-CREF Fund Complex. Formerly, Executive Vice President, Chief Risk and Compliance Officer, TIAA. Prior to joining TIAA, Mr. Nason served as President and CEO of GE Energy Financial Services.
   
TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 111
 
Trustees and officers (unaudited) concluded
   
TIAA-CREF Funds  ■  May 31, 2021  
   
Officers – concluded  
   
Name, Address and
Year of Birth (“YOB”)		  Position(s)
Held with
Fund		  Term of
Office and
Length
of Time
Served		  Principal Occupation(s) During Past 5 Years
Phillip T. Rollock
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		  Executive Vice President and Chief Legal Officer  One-year term. Executive Vice President and Chief Legal Officer since 2018.  Executive Vice President and Chief Legal Officer of TIAA and the TIAA-CREF Fund Complex. Formerly, Executive Vice President, Deputy Chief Legal Officer, TIAA and Senior Managing Director, Senior General Counsel and Corporate Secretary of TIAA and the TIAA-CREF Fund Complex.
E. Scott Wickerham
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1973		  Principal Financial Officer, Principal Accounting Officer and Treasurer  One-year term. Principal Financial Officer, Principal Accounting Officer and Treasurer since 2017.  Senior Managing Director, Head, Publics Investment Finance, Nuveen. Principal Financial Officer, Principal Accounting Officer and Treasurer of the TIAA-CREF Fund Complex; and Vice President and Controller of the Nuveen Funds. Formerly, Managing Director, Head, TC Fund Administration, Nuveen.
Sean N. Woodroffe
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1963		  Executive Vice President  One-year term. Executive Vice President since 2018.  Senior Executive Vice President, Chief Human Resources Officer of TIAA, and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Mr. Woodroffe served as Chief People Officer at National Life Group.

Please note that the Funds’ Statement of Additional Information (SAI) includes additional information about the Funds’ trustees and is available, without charge, through our website, TIAA.org, or by calling 800 223-1200.

 

112 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

Approval of investment management agreement (unaudited)

 

Board renewal of the investment management agreement for the TIAA-CREF Lifecycle Index Funds

 

The Board of Trustees (the “Board” or the “Trustees”) of the TIAA-CREF Funds (the “Trust”) determines whether to initially approve and periodically renew the investment management agreement (the “Agreement”) between Teachers Advisors, LLC (“Advisors”) and the Trust on behalf of each series of the Trust. Under the Agreement, Advisors is responsible for providing investment advisory services to each series of the Trust and overseeing the everyday operations and other service providers of the Trust. Below is a summary of the process the Board undertook related to its most recent renewal of the Agreement with respect to each series of the TIAA-CREF Lifecycle Index Funds (the “Funds”).

 

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), requires that, after an initial period of up to two years, the Agreement for each Fund will remain in effect only if the Board, including a majority of those Trustees who have no direct or indirect interest in the Agreement, and who are independent Trustees because they are not “interested persons” of the Trust, as that term is defined in the 1940 Act, annually renews the Agreement. None of the Trustees is an interested person of the Trust under the 1940 Act. Rather, they are all deemed to be independent Trustees.

 

Under normal circumstances, Section 15(c) requires any initial approval or annual renewal of an investment management agreement to be made at an in-person meeting of the Board. However, due to the COVID-19 pandemic, the Securities and Exchange Commission (“SEC”) issued a temporary, conditional exemptive order (the “SEC Order”), permitting mutual fund boards to vote to approve matters subject to the Section 15(c) in-person approval requirement at a meeting that is not held in person if the board determines that reliance on the SEC Order is necessary or appropriate due to prevailing circumstances related to the current or potential effects of COVID-19 and the board ratifies any action taken pursuant to the SEC Order at its next in-person meeting.

 

Overview of the renewal process

 

The Board held a videoconference meeting on March 12, 2021, in order to consider the annual renewal of the Agreement with respect to each applicable Fund using the process established by the Board described further below. At the outset of the meeting, the Board considered reliance upon the SEC Order and determined that such reliance was necessary due to, among other considerations, COVID-19 pandemic-related social distancing requirements, travel restrictions and other governmental mandates imposed for health and safety reasons. The Board noted that it would ratify actions taken at this meeting pursuant to the SEC Order at its next in-person meeting.

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 113
 

Approval of investment management agreement (unaudited)

 

As part of the Board’s established process, the Board delegated certain tasks to its Operations Committee. Among these tasks, the Operations Committee or certain of its designated members worked with Advisors, other Board members and legal counsel to the Trustees to develop guidance and specific requests relating to the types of information to be provided to the Board in connection with the proposed contract renewals.

 

Among other matters, the Operations Committee or certain of its designated members, following consultations with representatives of Advisors, other Board members, legal counsel to the Trustees and legal counsel to Advisors and the Trust, confirmed or established certain guidance regarding the preparation of reports to be provided to the Board with respect to each Fund by the Board Reporting and Compliance unit of Broadridge Financial Solutions, Inc. (“Broadridge”), using data from Lipper, Inc., an independent provider of investment company data. The Operations Committee considered that Broadridge is widely recognized as a leading provider of comparative analyses used by independent directors and trustees of investment companies during their advisory contract review processes.

 

Based on guidance provided by the Operations Committee or certain of its designated members on behalf of the Board, Broadridge produced, among other information, comparative performance and expense data for each Fund, including data relating to each Fund’s management fee rate, total expense ratio, short-term and long-term investment performance, brokerage commission costs and portfolio turnover rate (as applicable). Broadridge compared this data, as relevant, for each Fund against a universe of investment companies and against a more selective peer group of mutual funds with similar investment objectives and strategies, each of which was selected by Broadridge, and also compared the performance of each Fund against one or more appropriate broad-based indices. In each case, Broadridge summarized, and the Board considered, the methodologies Broadridge employed to provide the data contained in its reports. In addition, Broadridge represented to the Board that its reports were designed specifically to provide the Board with the fee, expense and performance information that is necessary to help the Board satisfy its duties under Section 15(c) of the 1940 Act. Broadridge also represented that the purpose of its reports is to provide an objective view of each Fund’s relative position regarding the level of fees, expenses and performance against a competitive peer group and universe (as applicable) selected by Broadridge (and not Advisors or the Board). The Board considered the propriety of each Fund’s applicable peer group as selected by Broadridge and use of the Institutional Class shares as the base share class for comparison purposes.

 

In advance of the Board meeting held on March 12, 2021, legal counsel for the Trustees requested on behalf of the Board, and Advisors provided, information that was designed to assist the Board in its consideration of whether to renew the Agreement for each Fund. In addition to the data provided by Broadridge as described above, this information included, but was not limited to, the following: (1) further information relating to each Fund’s investment performance and a

 

114 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

narrative analysis of the performance of each Fund that had underperformed certain Board-specified criteria, together with an explanation of any events that had a material impact on the Fund’s performance during that period; (2) a description of any fee waiver or expense reimbursement arrangements that were proposed or were in place during the prior year and the extent to which such arrangements would be continued or modified in the coming year; (3) a comparison of each Fund’s management fee rate and performance to other accounts with comparable strategies managed by Advisors or certain of its affiliates; (4) any “fall-out” benefits that accrued or were identified as reasonably likely to accrue to Advisors or its affiliates due to their relationship with the Funds in addition to the Funds’ direct fee payments to Advisors pursuant to the Agreement; (5) information regarding Advisors’ financial resources, senior professional personnel, overall staffing levels, portfolio manager compensation arrangements, capacity to manage the Funds at current and foreseeable asset levels, insurance coverage, portfolio trading, soft dollar usage and best execution practices, and any actual and potential conflicts of interest identified by Advisors in connection with rendering services to the Funds; (6) information as to any profits earned by Advisors in connection with its services pursuant to the Agreement; (7) a copy of the Agreement and certain related agreements between the Funds and affiliates of Advisors; (8) a copy of Advisors’ Form ADV as filed with the SEC (which was presented only to legal counsel for the Trustees); and (9) draft narrative explanations to be included in the shareholder reports of reasons why the Board should renew the Agreement. The Trustees were also provided with performance ratings of Morningstar, Inc. (“Morningstar”), which is a widely recognized mutual fund ranking service. Additionally, the Board received information from management on the impact of the COVID-19 pandemic on the Teachers Insurance and Annuity Association of America (“TIAA”) enterprise generally and the Funds in particular including, among other information, the current and expected impact on the Funds’ performance and operations.

 

On March 4, 2021, the Board held a videoconference meeting with legal counsel to the Trustees to discuss Advisors’ materials, which led to the Trustees providing additional questions to, and requesting additional information from, Advisors. Subsequently, at the March 12, 2021 meeting, the Trustees were given the opportunity to, and did, ask additional questions and they discussed responses from Advisors to the Board’s follow-up questions and requests presented by the Board after its initial review of the information described above.

 

In considering whether to renew the Agreement with respect to each Fund, the Board considered various factors, including: (1) the nature, extent and quality of services provided or to be provided by Advisors to the Fund; (2) the Fund’s investment performance; (3) the costs of the services provided to the Fund and the profits realized or potential profits to be realized (if any) by Advisors from their relationship with the Fund; (4) fees charged to comparable mutual funds by other advisers; (5) the extent to which economies of scale have been realized or are anticipated to be realized as the Fund grows; (6) how such economies of scale are shared with the Fund for the benefit of its investors, such as, if applicable, through management fee

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 115
 

Approval of investment management agreement (unaudited)

 

breakpoints; (7) comparisons, if applicable, of the services provided by Advisors to, and the fee rates and performance of, the Fund to other clients to whom Advisors provides comparable services; and (8) any other benefits identified by Advisors derived or anticipated to be derived by Advisors or its affiliates from their relationship with the Fund. As a general matter, the Board considered these factors, and any other factors deemed relevant by the Trustees, in their totality, and no single factor was identified as being the determining factor in deciding whether to renew the Agreement.

 

In addition to the March 12, 2021 meeting that included Advisors’ personnel, the Trustees met in executive sessions, at which no representatives of Advisors were present, to discuss the proposed renewal of the Agreement for each Fund. The Board also received and considered information from its legal counsel as to certain relevant guidance that relates to the renewal process under Section 15(c) of the 1940 Act and certain other legal authorities.

 

While the contract renewal process included a series of discussions and meetings leading up to the March 12, 2021 meeting, the oversight and evaluation of Advisors’ services to the Funds by the Board and its Committees is an ongoing process. The Board, as well as its Committees, discussed reports on various investment and operational topics that had been identified by the Board or its Committees for review in the year since the last annual renewal process. Further, at their regularly scheduled meetings, the Board and its Investment Committee and its other Committees receive and discuss information regarding the performance of the Funds and other matters. Thus, in reaching its decisions regarding the renewal of the Agreement for each Fund, the Board took into account the information described herein and other information provided to the Board and its Committees throughout the year.

 

The Board received and considered both Trust-level and Fund-specific information, but made its renewal determinations on a Fund-by-Fund basis. In deciding whether to renew the Agreement for each Fund, each Trustee may have accorded different weight to different factors and, thus, may have had a different basis for his or her ultimate decision to vote to renew the Agreement for each Fund. At its meeting on March 12, 2021, all Board members voted unanimously to renew the Agreement for each Fund. Set forth below is a summary of the primary factors the Board considered with respect to each Fund.

 

The nature, extent and quality of services

 

The Board considered the level and depth of knowledge of Advisors, including the professional experience and qualifications of its personnel. The Board also considered that Advisors is an experienced investment adviser that has managed the Funds since their operations commenced. Investment professionals at Advisors also manage various other funds and accounts of the Trust, College Retirement Equities Fund, the TIAA-CREF Life Funds and TIAA Separate Account VA-1, as well as advise

 

116 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

and sub-advise other investment companies and vehicles. Under the Agreement, Advisors is responsible for, among other duties: managing the assets of the Funds (which are funds of funds that may invest their assets in the securities of affiliated and unaffiliated investment companies or other investment pools, referred to as “Underlying Funds”), including conducting research, identifying investments and placing orders to buy and sell shares of Underlying Funds for the Funds’ investment portfolios; active daily monitoring of the Funds’ investment portfolios; reporting on the investment performance and other metrics of the Funds to the Board on a regular basis; responding to Fund flows; compliance monitoring; coordinating the activities of each Fund’s service providers; and overseeing the provision of various administrative services to the Funds. The Board considered that Advisors has carried out these responsibilities in a competent and professional manner. The Board also considered that Advisors has committed significant resources to supporting the series of the Trust, including the Funds. It also considered Advisors’ compliance program and resources and its compliance record with respect to the Funds.

 

The Board also considered, among other factors, the performance of each Fund, as discussed below. In addition, the Board considered the nature and quality of non-portfolio management services provided by Advisors and its affiliates. In this regard, the Board considered its ongoing review of the performance of certain affiliated and unaffiliated service providers, including the quality of services provided by those firms and Advisors’ oversight of those service providers and the outsourcing of certain services to other firms.

 

During its review, the Board noted its ongoing efforts to examine the level of personnel and other resources available to Advisors to provide portfolio management and other services to the Funds, including the impact of recent and anticipated regulatory requirements and operational changes on such resources, so as to assess the adequacy of the resources devoted to these services.

 

Investment performance

 

The Board considered the investment performance of each Fund, over the periods indicated in the Fund-by-Fund synopsis below. The Board considered each Fund’s performance as compared to its peer group and peer universe (as applicable) and its benchmark index. For details regarding each Fund’s performance, see the Fund-by-Fund synopsis below. The Board concluded that, under the totality of circumstances considered, the investment performance of each Fund was reasonable.

 

Cost and profitability

 

The Board considered financial and profitability data relating to Advisors’ services to the Funds for the calendar year 2020. The Board considered Advisors’ profit calculations with respect to its services to each Fund both before and after taking into account the costs incurred directly or indirectly by Advisors in connection with the distribution of shares of the Fund. The Board considered that this data included

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 117
 

Approval of investment management agreement (unaudited)

 

the effect of the Fund’s unique fee structure where the Funds invest in fee-waived Class W shares of the TIAA-CREF Underlying Funds and the Funds pay the equivalent of these Underlying Funds’ management fees and other expenses directly as part of the Funds’ management fee rates under the Agreement, along with the Funds’ existing annual management fee rate of 0.10% of average daily net assets. The Board considered that the Broadridge fee comparisons would be affected because most of the Funds’ peers do not have a similar fee structure.

 

The Board acknowledged the reasonableness of having management fee rates which permit Advisors to maintain and improve the quality of services provided to the Funds and recognized the entrepreneurial and other risks assumed by Advisors in managing the Funds. The Board also considered that Advisors had agreed to additional waivers of the Lifecycle Index Retirement Income and the Lifecycle Index 2010 Funds’ fees, which will continue through at least September 30, 2021. The Board also acknowledged certain reimbursements of expenses above specified amounts undertaken by Advisors with respect to many of the Underlying Funds which, in turn, reduce the management fees charged to the Funds. The Board also recognized Advisors’ commitment to reimburse Fund expenses to the extent that total annual operating expenses exceeded certain specified amounts. The Board considered that Advisors had calculated that it incurred losses with respect to each Fund under the Agreement for the one-year period ended December 31, 2020.

 

Fees charged by other advisers

 

The Board considered comparative information regarding each Fund’s contractual and effective management fee rates and the contractual and effective management fee rates paid by similar mutual funds to other advisers, as analyzed by Broadridge and reflected in the Fund-by-Fund synopsis below. The Board acknowledged Advisors’ assertion that, while the Funds’ expense structure makes the Funds’ contractual and effective management fee rates appear higher as compared to its peers (most of whom have a traditional funds of funds fee structure), the Funds’ total expenses were favorable as compared to most of their peers. In this connection, the Board also considered the inherent limitations of such comparisons in light of uncertainty as to how the fees of such similar mutual funds are set and potentially material differences between a Fund and its comparable mutual funds. The Board considered Broadridge’s treatment of all fund fee waivers, regardless of their type, as management fee waivers, which could materially impact how the Funds’ actual management fee rates compare to those of similar mutual funds. Additionally, the Board considered the potential limitations of such comparisons due to, among other factors, the fact that, in many instances, Broadridge based its comparisons on financial data relating to fiscal periods that differed from the period for which the Fund’s data were derived. Based on all factors considered, the Board concluded that the management fee rates under the Agreement with respect to each Fund were reasonable in relation to those charged by appropriate groups of comparable mutual funds.

 

118 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

Economies of scale

 

The Board considered whether Advisors has experienced or is anticipated to experience economies of scale in connection with the operation of each Fund, and whether any such economies are shared with the Funds. The Board also considered that because Advisors operated each Fund at a loss, and has waived a portion of its management fees for each of the Funds, there had been little opportunity to pass on economies of scale to Fund shareholders. Based on all factors considered, the Board concluded that the Funds’ management fee rate schedules were reasonable in light of current economies of scale considerations and current asset levels.

 

Fee and performance comparisons with other Advisors clients

 

The Board considered that Advisors provides similar investment management services to other investment companies. The Board noted that Advisors provides funds of funds management services to the TIAA-CREF Lifestyle Funds and the TIAA-CREF Life Balanced Fund, with annual management fee rates of 0.10% of average daily net assets, and the TIAA-CREF Managed Allocation Fund, for which Advisors receives no management fee. The Board also considered that Advisors also manages the TIAA-CREF Lifecycle Funds, which have the same fee structure as the Funds. The Board also discussed the performance of these other funds of funds while discussing the performance of the Funds.

 

Other benefits

 

The Board also considered additional “fall-out benefits” to Advisors and its affiliates arising from the Agreement. Such benefits include, among others, other fees paid by the Funds to Advisors or its affiliates for other services, such as distribution, administration and investment-related benefits and/or personnel with other clients of Advisors, such as economies of scale to the extent the Funds share investment resources and the ability to incubate strategies within one or more Funds that could be subsequently utilized to manage other non-Fund products. Advisors and its affiliates may also benefit from the level of business and relationships the Funds have with certain service providers. Advisors and/or its affiliates also may benefit to the extent that the Funds add scale to the TIAA-CREF Underlying Funds. Additionally, the Funds may be utilized as investment options for other products and businesses of Advisors and its affiliates, such as variable products, fund of funds and 529 education savings plans. Also, Advisors and its affiliates may benefit from their relationship with the Funds to the extent that this relationship results in potential investors viewing TIAA, of which Advisors is an indirect, wholly-owned subsidiary, as a leading retirement plan provider in the academic and non-profit markets and as a single source for all their financial service needs.

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 119
 

Approval of investment management agreement (unaudited)

 

Fund-by-fund synopsis of factors

 

The Board considered the following specific factors (among others) in connection with its determination to renew the Agreement with respect to each Fund. If a Fund is described in the following discussions as being in the “1st” quintile, it is in the best of five groups (that is, the group has the best performance or the lowest expenses, as the case may be). References below to quintiles are based on data provided to the Board in the reports prepared by Broadridge. The specific management fee, expense and performance factors outlined below are based on the Institutional Class shares of each Fund. Because the Institutional Class generally has lower non-management expenses than the other classes of these Funds, the expenses and performance of these other classes will differ from the expenses and performance shown for the Institutional Class. All time periods referenced below are ended December 31, 2020. Under the Morningstar rating system, an Overall Morningstar Rating of 5 stars is the highest (best) rating category and 1 star is the lowest (worst) rating category. The Morningstar data is as of December 31, 2020. Statements below regarding a Fund’s “effective management fee rate” refer to the overall effective blended fee rate that applied to that Fund after taking into account any breakpoints in the management fee rate schedule for the Fund and any applicable fee waivers and/or expense reimbursements. Statements below regarding “net loss” refer to Advisors’ calculation that it incurred a loss for the services that it rendered to a Fund during 2020 under the Agreement.

 

Lifecycle Index Retirement Income Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.032% of average daily net assets, which includes the effect of certain voluntary waivers provided by Advisors.
• The Fund’s total expense ratio was in the 1st quintile of the group of comparable funds selected by Broadridge for expense comparison purposes (“Expense Group”), while its actual management fee rate and contractual management fee rate ranked 3 out of 5 funds and 2 out of 5 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were in the 2nd, 2nd and 1st quintiles of the universe of comparable funds selected by Broadridge for expense comparison purposes (“Expense Universe”), respectively.
• The Fund was in the 1st quintile of both the group of comparable funds selected by Broadridge for performance comparison purposes (“Performance Group”) and the universe of comparable funds selected by Broadridge for performance comparison (“Performance Universe”) for each of the one-, three- and five-year

 

120 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

  periods. For the ten-year period, the Fund ranked 1 out of 3 funds within its Performance Group and was in the 1st quintile of its Performance Universe.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

Lifecycle Index 2010 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.044% of average daily net assets which includes the effect of certain voluntary waivers provided by Advisors.
• The Fund’s total expense ratio, actual management fee rate and contractual management fee rate ranked 3 out of 3 funds, 2 out of 3 funds and 3 out of 3 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were in the 2nd, 1st and 2nd quintiles of its Expense Universe, respectively.
• The Fund ranked 1 out of 3, 1 out of 3, 1 out of 2 and 1 out of 1 funds within its Performance Group for the one-, three-, five- and ten-year periods, respectively. The Fund was in the 1st quintile of its Performance Universe for each of the one-, three-, five- and ten-year periods.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

Lifecycle Index 2015 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.061% of average daily net assets.
• The Fund’s total expense ratio, actual management fee rate and contractual management fee rate ranked 3 out of 3, 2 out of 3 and 3 out of 3 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 121
 

Approval of investment management agreement (unaudited)

 

  fee rate and contractual management fee rate were in the 2nd, 1st and 2nd quintiles of its Expense Universe, respectively.
• The Fund ranked 1 out of 3, 1 out of 3, 1 out of 2 and 1 out of 1 funds within its Performance Group for the one-, three-, five- and ten-year periods, respectively. The Fund was in the 1st quintile of its Performance Universe for each of the one-, three-, five- and ten-year periods.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

Lifecycle Index 2020 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.073% of average daily net assets.
• The Fund’s total expense ratio, actual management fee rate and contractual management fee rate each ranked 3 out of 4 funds within its Expense Group. The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were in the 1st, 3rd and 1st quintiles of its Expense Universe, respectively.
• The Fund ranked 1 out of 4, 1 out of 4, 2 out of 3 and 1 out of 1 funds within its Performance Group for the one-, three-, five- and ten-year periods, respectively. The Fund was in the 1st quintile of its Performance Universe for each of the one-, three-, five- and ten-year periods.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

Lifecycle Index 2025 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.076% of average daily net assets.

 

122 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

• The Fund’s total expense ratio, actual management fee rate and contractual management fee rate ranked 4 out of 5, 5 out of 5 and 3 out of 5 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were in the 1st, 3rd and 1st quintiles of its Expense Universe, respectively.
• The Fund ranked 2 out of 5, 2 out of 5, 2 out of 4 and 1 out of 1 funds within its Performance Group for the one-, three-, five- and ten-year periods, respectively. The Fund was in the 1st quintile of its Performance Universe for each of the one-, three-, five- and ten-year periods.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

Lifecycle Index 2030 Fund

•As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.075% of average daily net assets.
• The Fund’s total expense ratio, actual management fee rate and contractual management fee rate ranked 4 out of 5, 4 out of 5 and 3 out of 5 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were in the 1st, 3rd and 1st quintiles of its Expense Universe, respectively.
• The Fund ranked 2 out of 5, 2 out of 5, 3 out of 4 and 1 out of 1 funds within its Performance Group for the one-, three-, five- and ten-year periods, respectively. The Fund was in the 2nd, 1st, 1st and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

Lifecycle Index 2035 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 123
 

Approval of investment management agreement (unaudited)

 

  part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.077% of average daily net assets.
• The Fund’s total expense ratio, actual management fee rate and contractual management fee rate ranked 3 out of 5, 5 out of 5 and 3 out of 5 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were in the 1st, 3rd and 1st quintiles of its Expense Universe, respectively.
• The Fund ranked 3 out of 5, 3 out of 5, 3 out of 4 and 1 out of 1 funds within its Performance Group for the one-, three-, five- and ten-year periods, respectively. The Fund was in the 2nd, 1st, 1st and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

Lifecycle Index 2040 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.075% of average daily net assets.
• The Fund’s total expense ratio, actual management fee rate and contractual management fee rate ranked 3 out of 5, 4 out of 5 and 3 out of 5 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were in the 1st, 3rd and 1st quintiles of its Expense Universe, respectively.
• The Fund ranked 3 out of 5, 3 out of 5, 3 out of 4 and 1 out of 1 funds within its Performance Group for the one-, three-, five- and ten-year periods, respectively. The Fund was in the 2nd, 1st, 1st and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

Lifecycle Index 2045 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate

 

124 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

continued

 

  daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.071% of average daily net assets.
• The Fund’s total expense ratio, actual management fee rate and contractual management fee rate ranked 3 out of 5, 4 out of 5 and 3 out of 5 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were in the 1st, 3rd and 1st quintiles of its Expense Universe, respectively.
• The Fund ranked 2 out of 5, 2 out of 5, 2 out of 4 and 1 out of 1 funds within its Performance Group for the one-, three-, five- and ten-year periods, respectively. The Fund was in the 2nd, 1st, 1st and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

Lifecycle Index 2050 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.067% of average daily net assets.
• The Fund’s total expense ratio, actual management fee rate and contractual management fee rate ranked 3 out of 5, 4 out of 5 and 3 out of 5 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were in the 1st, 3rd and 1st quintiles of its Expense Universe, respectively.
• The Fund ranked 2 out of 5, 2 out of 5, 2 out of 4 and 1 out of 1 funds within its Performance Group for the one-, three-, five- and ten-year periods, respectively. The Fund was in the 2nd, 1st, 1st and 1st quintiles of its Performance Universe for the one-, three-, five- and ten-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 125
 

Approval of investment management agreement (unaudited)

 

Lifecycle Index 2055 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.055% of average daily net assets.
• The Fund’s total expense ratio, actual management fee rate and contractual management fee rate ranked 4 out of 5, 4 out of 5 and 3 out of 5 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were in the 1st, 4th and 1st quintiles of its Expense Universe, respectively.
• The Fund ranked 2 out of 5, 2 out of 5 and 2 out of 4 funds within its Performance Group for the one-, three- and five-year periods, respectively. The Fund was in the 2nd, 1st and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

Lifecycle Index 2060 Fund

• As discussed above, instead of incurring the TIAA-CREF Underlying Fund expenses indirectly, the Fund would invest in the fee-waived Class W of the TIAA-CREF Underlying Funds and pay such expenses directly. These expenses may fluctuate daily based upon the Fund’s actual allocations to the Underlying Funds. The Fund also incurs an annual asset allocation fee of 0.10% of average daily net assets as part of its management fee rate. As of December 31, 2020, the Fund’s effective management fee rate was 0.00% of average daily net assets.
• The Fund’s total expense ratio, actual management fee rate and contractual management fee rate ranked 4 out of 5, 1 out of 5 and 3 out of 5 funds within its Expense Group, respectively. The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were each in the 1st quintile of its Expense Universe.
• The Fund ranked 2 out of 5, 2 out of 5, and 1 out of 3 funds within its Performance Group for the one-, three- and five-year periods, respectively. The Fund was in the 2nd, 1st, and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 5 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in

 

126 2021 Annual Report  ■  TIAA-CREF Lifecycle Index Funds
 

concluded

 

  the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

 

 

Based primarily on the foregoing factors and considerations, the Board renewed the Agreement for each Fund.

 

TIAA-CREF Lifecycle Index Funds  ■  2021 Annual Report 127
 

Liquidity risk management program

 

Discussion of the operation and effectiveness of the Funds’ liquidity risk management program

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), each series of the Trust covered by this Report (the “Funds”) has adopted and implemented a liquidity risk management program (the “Program”), which is reasonably designed to assess and manage the Funds’ liquidity risk. The Program consists of various provisions relating to assessing and managing Fund liquidity risk, as discussed further below. The Funds’ Board of Trustees (the “Board”) previously approved the designation of Advisors (the “Administrator”) as Program administrator. The Liquidity Monitoring and Analysis Team (the “LMAT”) carries out day-to-day Program management with oversight by the Liquidity Oversight Committee (the “LOSC”). Personnel from the Administrator and Nuveen Fund Advisors, LLC, an affiliate of the Administrator, comprise the LMAT and LOSC.

 

At a February 9, 2021 Board meeting, the Administrator provided the Board with a written report addressing the Program’s operation, adequacy, and effectiveness of implementation for the period from January 1, 2020 through December 31, 2020 (the “Review Period”), as required under the Liquidity Rule. The report noted that the Program has been and continues to be adequately and effectively implemented to monitor and (as applicable) respond to the Funds’ liquidity developments.

 

In accordance with the Program, the LMAT assesses each Fund’s liquidity risk no less frequently than annually based on various factors, such as (i) the Fund’s investment strategy and the liquidity of portfolio investments, (ii) cash flow projections, and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

 

Each Fund portfolio investment is classified into one of four liquidity categories (including “highly liquid investments” and “illiquid investments,” discussed below). The classification is based on a determination of how long it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading, and investment-specific considerations, as well as market depth, and utilize third-party vendor data.

 

Any Fund that does not primarily hold highly liquid investments must, among other things, determine a minimum percentage of Fund net assets that must be invested in highly liquid investments (a “Highly Liquid Investment Minimum”). During the Review Period, each Fund primarily held highly liquid investments and therefore was exempt from the requirement to adopt a Highly Liquid Investment Minimum and to comply with the related requirements under the Liquidity Rule.

 

128 2021 Annual Report  ■  TIAA-CREF Lifestyle Index Funds
 

The Liquidity Rule also limits the Funds’ investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if doing so would result in the Fund holding more than 15% of its net assets in illiquid investments and requires certain reporting anytime a Fund’s holdings of illiquid investments exceed 15% of net assets. During the Review Period, no Fund exceeded the 15% limit on illiquid investments.


 

TIAA-CREF Lifestyle Index Funds  ■  2021 Annual Report 129
 

Additional information about index providers (unaudited)

 

Russell Indexes

 

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.

 

MSCI Indexes

 

Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)

 

Bloomberg Barclays Indexes

 

Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

 

Standard & Poor’s Index

 

The Indexes in the S&P Target Date Index Series are products of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates (“SPDJI”), and have been licensed for use by the funds. Standard & Poor’s® and S&P® are registered

 

130 2021 Annual Report  ■  TIAA-CREF Lifestyle Index Funds
 

trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). It is not possible to invest directly in an index. The funds are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the funds or any member of the public regarding the advisability of investing in securities generally or in the funds particularly or the ability of the S&P Target Date Index Series to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices’ only relationship to the funds with respect to the S&P Target Date Index Series is the licensing of the Indexes and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The Indexes in the S&P Target Date Index Series are determined, composed and calculated by S&P Dow Jones Indices without regard to the funds. S&P Dow Jones Indices has no obligation to take the needs of the funds or the owners of the funds into consideration in determining, composing or calculating the S&P Target Date Index Series. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of the funds or the timing of the issuance or sale of fund shares or in the determination or calculation of the equation by which fund shares are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of the funds. There is no assurance that investment products based on the S&P Target Date Index Series will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment or tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.

 

S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P TARGET DATE INDEX SERIES OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY THE FUNDS, OWNERS OF THE FUNDS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P TARGET DATE INDEX SERIES OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND THE FUNDS, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.


 

TIAA-CREF Lifestyle Index Funds  ■  2021 Annual Report 131
 

[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

 

Websites

 

TIAA.org

 

nuveen.com

 

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

 

 

You should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other information, please visit TIAA.org, or call 800-842-2252. Please read the prospectus carefully before investing. Investment, insurance and annuity products are not Federal Deposit Insurance Corporation (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. Nuveen, a subsidiary of TIAA, provides investment advice and portfolio management services through a dozen affiliated registered investment advisers. Nuveen Securities, LLC and TIAA-CREF Individual & Institutional Services, LLC, members FINRA, distribute securities products.

 

This material is for informational or educational purposes only and does not constitute fiduciary investment advice under ERISA, a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor’s own objectives and circumstances.

 

 

©2021 Teachers Insurance and Annuity Association of America—College Retirement Equities Fund, 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

 

1655026 A12027 (7/21)
 

 

 

  Printed on paper containing recycled fiber

 

1655026 A12027 (7/21)
 

 

1655026 A12027 (7/21)
 
     
TIAA-CREF
Funds		 May 31,
2021
     

 

TIAA-CREF
Lifestyle Funds

The annual report contains the audited financial statements.

 

Fund name Institutional
Class		 Advisor
Class		 Premier
Class		 Retirement
Class		 Retail
Class
Lifestyle Income Fund TSITX TSIHX TSIPX TLSRX TSILX
Lifestyle Conservative Fund TCSIX TLSHX TLSPX TSCTX TSCLX
Lifestyle Moderate Fund TSIMX TSMHX TSMPX TSMTX TSMLX
Lifestyle Growth Fund TSGGX TSGHX TSGPX TSGRX TSGLX
Lifestyle Aggressive Growth Fund TSAIX TSAHX TSAPX TSARX TSALX

 

Annual
Report

 

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the TIAA-CREF Funds’ (the “Funds”) annual and semiannual shareholder reports will not be sent to you by mail, unless you specifically request paper copies of the reports. Instead, they will be made available on TIAA’s website, TIAA.org, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive shareholder reports and other communications from the Funds electronically anytime by either (1) updating your account settings at TIAA.org/eDelivery, if you invest in the Funds directly or hold your Fund shares through a TIAA-affiliated financial intermediary, account or retirement plan (each, a “TIAA Account”), or (2) contacting your financial intermediary (such as a broker/dealer or bank) through which you hold Fund shares.

If you invest directly with the Funds or through a TIAA Account, you may elect to receive all future shareholder reports in paper free of charge by updating your account settings at TIAA.org/eDelivery or by calling 800-842-2252 during regular business hours. If you invest through another financial intermediary, you can contact your financial intermediary to request that you receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the fund complex if you invest directly with the Funds or through a TIAA Account, or to all funds held through your financial intermediary.

 

Contents

 


 

 

Understanding this report

 

This annual report contains information about certain TIAA-CREF Funds and describes their results for the twelve months ended May 31, 2021. The report contains four main sections:

  • A letter from Brad Finkle, President of the TIAA-CREF Fund Complex.
  • The fund performance section compares each fund’s investment returns with those of its composite benchmark and broad market index.
  • The portfolios of investments list the underlying funds in which each fund had investments as of May 31, 2021.
  • 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. To see the risks of investing in any fund, please read the 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 websites at TIAA.org or nuveen.com, 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.

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 3
 

Letter to investors

 

Global financial markets generated mostly positive results for the twelve months ended May 31, 2021, as the economic ramifications of the COVID-19 pandemic diminished. U.S. equities posted double-digit gains amid continued economic expansion during the period. Foreign stocks also soared, with emerging markets faring better than both international developed markets and domestic equities. U.S. fixed-income securities declined modestly as U.S. Treasury yields rose across longer-term maturities (bond prices move in the opposite direction of yields). These market conditions were reflected in the performance of the TIAA-CREF Lifestyle Funds by way of their investments in various asset classes through underlying funds.

 

  • All five TIAA-CREF Lifestyle Funds delivered strong gains for the period, and all outperformed their respective composite benchmarks. (All fund returns are for the Institutional Class.)
  • Returns for the Institutional Class ranged from 10.6% for the Lifestyle Income Fund to 44.8% for the Lifestyle Aggressive Growth Fund.
  • These results continued to support the solid performance of the TIAA-CREF Lifestyle Funds over longer periods of time.

 

U.S. and international stocks posted substantial gains

U.S. equities posted impressive gains for the twelve months as many businesses and restaurants resumed operations with the continual easing of COVID-19 restrictions. The broad domestic stock market, as represented by the Russell 3000® Index, advanced 43.9%. The U.S. economy expanded considerably during the third quarter of 2020 and continued its growth trajectory into the fourth quarter of 2020 and the first quarter of 2021. The Federal Reserve kept the federal funds target rate at 0.00%–0.25%, while the federal government took aggressive fiscal action with two large stimulus measures.

International stocks surpassed their U.S. counterparts. The MSCI ACWI ex USA Investable Market Index (IMI), which measures the performance of large-, mid- and small-cap equities in 22 of 23 developed-markets countries (excluding the United States) and 27 emerging-markets countries, returned 44.1% in U.S.-dollar terms. The economy of the 19-nation euro area contracted in both the fourth quarter of 2020 and the first quarter of 2021. However, China’s economy posted solid growth in the fourth quarter of 2020 and grew at its fastest pace in three decades in the first quarter of 2021.

U.S. investment-grade bonds suffered a small loss as U.S. Treasury yields rose across longer-term maturities. The domestic investment-grade fixed-rate bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, returned –0.4% for the period.

 

4 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 



Brad Finkle

In investing, change is the only constant

As we enter the summer months and reflect on the transformative and challenging twelve-plus months of the COVID-19 pandemic, it’s heartening to see that businesses are reopening and people are returning to a more “normal” life. But the financial markets always look forward, and recent volatility reflects new concerns about inflation, interest rates, and the pace and duration of the global economic recovery.

In investing, as in life, speculation about what may happen in the future is never-ending. In fact, market fluctuation may be the only constant. As a result, we believe that adhering to a long-term financial plan and staying invested in a diversified portfolio that includes multiple asset classes are wise strategies to deal with the ever-present factors of risk and uncertainty. The TIAA-CREF Lifestyle Funds use dynamic diversification strategies designed to help mitigate the effects of market volatility and keep you on track to achieve your financial goals. Of course, diversification does not guarantee against market losses, and past performance cannot guarantee future results.

We thank you again for trusting us to manage your investments through the TIAA-CREF Lifestyle Funds. If you have any questions or concerns, please consult your financial advisor or call a TIAA financial consultant at 800-842-2252. You can also reach us online by visiting TIAA.org. We always stand ready to assist you.

 

/s/ Brad Finkle

 

Brad Finkle

President of the TIAA-CREF Fund Complex

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 5
 

Information for investors

 

Portfolio holdings

The complete portfolios of investments for the Lifestyle Funds begin on page 26 of this report. You can obtain complete lists of the holdings of the Lifestyle Funds and of the underlying TIAA-CREF Funds in which the Lifestyle Funds invest as of the most recently completed fiscal quarter in the following ways:

  • By visiting our websites at TIAA.org or nuveen.com; or
  • By calling us at 800-842-2252 to request a copy, which will be provided free of charge.

 You can also 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-PORT filings. Form N-CSR filings are as of May 31 or November 30; Form N-PORT 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 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 TIAA-CREF Funds of the Lifestyle Funds can be found on our website at TIAA.org or on the SEC’s website at sec.gov. You can also call us at 800-842-2252 to request a free copy. A report of how the Lifestyle Funds’ underlying TIAA-CREF 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 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. The members of this team are responsible for the day-to-day investment management of the funds.

 

6 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

About the funds’ benchmarks

 

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 ACWI ex USA Investable Market Index (IMI) (international equity) measures the performance of large-, mid- and small-cap equities across 22 of 23 developed-markets countries (excluding the United States) and 27 emerging-markets countries. The index is a free-float-adjusted market capitalization index that covers approximately 99% of the global equity opportunity set outside 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.

 

Broad market indexes

The returns shown against the broad-based securities market index compare a fund’s average annual returns with a broad measure of market performance. The Morningstar Target Risk Index Series is an asset allocation index series comprised of constituent Morningstar indexes and reflects global equity market exposures of 20%, 40%, 60%, 80% or 95% based on an asset allocation methodology from Ibbotson Associates, a Morningstar company. The returns of the Morningstar Target Risk Index Series reflect multi-asset class exposure and similar risk profiles as the Funds.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses. For additional details about the benchmark indexes, please read the funds’ latest prospectus.

 

Russell 3000 is a trademark and service mark of Frank Russell Company. TIAA products are not promoted or sponsored by, or affiliated with, Frank Russell Company. 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.

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 7
 

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 this report are intended to help you understand your ongoing costs only (in U.S. dollars) and do not reflect transactional costs. 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 total costs for investing in the funds would be higher. Note also that shareholders of the TIAA-CREF Funds do not incur a sales charge for purchases, reinvested dividends or other distributions.

The examples are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (December 1, 2020–May 31, 2021).

 

Actual expenses

The first line of the two lines listed for each fund in the tables uses the Fund’s actual expenses and its actual rate of return. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the six-month period.

Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses paid during period” to estimate the expenses you paid during the six-month period. All of the funds have a contractual fee reimbursement. Had these not been in effect, fund expenses would have been higher.

 

Hypothetical example for comparison purposes

The second line in each Fund’s entry shows a hypothetical account value and hypothetical expenses based on the share class’ 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.

 

8 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

Lifestyle Funds
Institutional Class		  Beginning
account
value
(12/1/20		)  Ending
account
value
(5/31/21		)  Expenses paid
during period
(12/1/20–5/31/21		*
)		  Effective
expenses paid
during period
(12/1/20–5/31/21		†
)
Income Fund actual return  $1,000.00   $1,031.33             $0.51              $2.13 
5% annual hypothetical return   1,000.00    1,024.43    0.50    2.12 
Conservative Fund actual return   1,000.00    1,065.03    0.51    2.37 
5% annual hypothetical return   1,000.00    1,024.43    0.50    2.32 
Moderate Fund actual return   1,000.00    1,099.19    0.47    2.62 
5% annual hypothetical return   1,000.00    1,024.48    0.45    2.52 
Growth Fund actual return   1,000.00    1,135.72    0.48    2.88 
5% annual hypothetical return   1,000.00    1,024.48    0.45    2.72 
Aggressive Growth Fund actual return   1,000.00    1,172.66    0.38    3.03 
5% annual hypothetical return   1,000.00    1,024.58    0.35    2.82 
* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 their performance lower. The expense ratio for the period was 0.10% for the Income Fund, 0.10% for the Conservative Fund, 0.09% for the Moderate Fund, 0.09% for the Growth Fund and 0.07% for the Aggressive Growth Fund.
† “Effective expenses paid during period” is 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 0.42% for the Income Fund, 0.46% for the Conservative Fund, 0.50% for the Moderate Fund, 0.54% for the Growth Fund and 0.56% for the Aggressive Growth Fund.
   
TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 9
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

Lifestyle Funds
Advisor Class		  Beginning
account
value
(12/1/20		)  Ending
account
value
(5/31/21		)  Expenses paid
during period
(12/1/20–5/31/21		*
)		  Effective
expenses paid
during period
(12/1/20–5/31/21		†
)
Income Fund actual return  $1,000.00   $1,030.50             $0.91              $2.53 
5% annual hypothetical return   1,000.00    1,024.03    0.91    2.52 
Conservative Fund actual return   1,000.00    1,063.80    1.03    2.93 
5% annual hypothetical return   1,000.00    1,023.93    1.01    2.87 
Moderate Fund actual return   1,000.00    1,098.14    0.94    3.09 
5% annual hypothetical return   1,000.00    1,024.03    0.91    2.97 
Growth Fund actual return   1,000.00    1,134.97    0.90    3.30 
5% annual hypothetical return   1,000.00    1,024.08    0.86    3.13 
Aggressive Growth Fund actual return   1,000.00    1,172.38    0.92    3.52 
5% annual hypothetical return   1,000.00    1,024.08    0.86    3.28 
* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 on which this waiver or reimbursement is scheduled to end. Without 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 0.18% for the Income Fund, 0.20% for the Conservative Fund, 0.18% for the Moderate Fund, 0.17% for the Growth Fund and 0.17% for the Aggressive Growth Fund.
† “Effective expenses paid during period” is 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 0.50% for the Income Fund, 0.57% for the Conservative Fund, 0.59% for the Moderate Fund, 0.62% for the Growth Fund and 0.65% for the Aggressive Growth Fund.
   
10 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

Lifestyle Funds
Premier Class		  Beginning
account
value
(12/1/20		)  Ending
account
value
(5/31/21		)  Expenses paid
during period
(12/1/20–5/31/21		*
)		  Effective
expenses paid
during period
(12/1/20–5/31/21		†
)
Income Fund actual return  $1,000.00   $1,030.62             $1.27              $2.89 
5% annual hypothetical return   1,000.00    1,023.68    1.26    2.87 
Conservative Fund actual return   1,000.00    1,063.44    1.29    3.14 
5% annual hypothetical return   1,000.00    1,023.68    1.26    3.07 
Moderate Fund actual return   1,000.00    1,098.18    1.26    3.40 
5% annual hypothetical return   1,000.00    1,023.73    1.21    3.28 
Growth Fund actual return   1,000.00    1,134.87    1.28    3.67 
5% annual hypothetical return   1,000.00    1,023.73    1.21    3.48 
Aggressive Growth Fund actual return   1,000.00    1,171.84    1.25    3.84 
5% annual hypothetical return   1,000.00    1,023.78    1.16    3.58 
* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 on which this waiver or reimbursement is scheduled to end. Without 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 Income Fund, 0.25% for the Conservative Fund, 0.24% for the Moderate Fund, 0.24% for the Growth Fund and 0.23% for the Aggressive Growth Fund.
† “Effective expenses paid during period” is 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 0.57% for the Income Fund, 0.61% for the Conservative Fund, 0.65% for the Moderate Fund, 0.69% for the Growth Fund and 0.71% for the Aggressive Growth Fund.
   
TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 11
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

Lifestyle Funds
Retirement Class		  Beginning
account
value
(12/1/20		)  Ending
account
value
(5/31/21		)  Expenses paid
during period
(12/1/20–5/31/21		*
)		  Effective
expenses paid
during period
(12/1/20–5/31/21		†
)
Income Fund actual return  $1,000.00   $1,030.18             $1.77              $3.39 
5% annual hypothetical return   1,000.00    1,023.19    1.77    3.38 
Conservative Fund actual return   1,000.00    1,063.12    1.75    3.60 
5% annual hypothetical return   1,000.00    1,023.24    1.72    3.53 
Moderate Fund actual return   1,000.00    1,097.31    1.78    3.92 
5% annual hypothetical return   1,000.00    1,023.24    1.72    3.78 
Growth Fund actual return   1,000.00    1,133.84    1.81    4.20 
5% annual hypothetical return   1,000.00    1,023.24    1.72    3.98 
Aggressive Growth Fund actual return   1,000.00    1,171.61    1.73    4.39 
5% annual hypothetical return   1,000.00    1,023.34    1.61    4.08 
* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 on which this waiver or reimbursement is scheduled to end. Without 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 0.35% for the Income Fund, 0.34% for the Conservative Fund, 0.34% for the Moderate Fund, 0.34% for the Growth Fund and 0.32% for the Aggressive Growth Fund.
† “Effective expenses paid during period” is 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 0.67% for the Income Fund, 0.70% for the Conservative Fund, 0.75% for the Moderate Fund, 0.79% for the Growth Fund and 0.81% for the Aggressive Growth Fund.
   
12 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Important information about expenses

 

Expense examples

 

Six months ended May 31, 2021

Lifestyle Funds
Retail Class		  Beginning
account
value
(12/1/20		)  Ending
account
value
(5/31/21		)  Expenses paid
during period
(12/1/20–5/31/21		*
)		  Effective
expenses paid
during period
(12/1/20–5/31/21		†
)
Income Fund actual return  $1,000.00   $1,030.05             $1.97              $3.59 
5% annual hypothetical return   1,000.00    1,022.99    1.97    3.58 
Conservative Fund actual return   1,000.00    1,063.01    1.90    3.75 
5% annual hypothetical return   1,000.00    1,023.09    1.87    3.68 
Moderate Fund actual return   1,000.00    1,097.27    1.88    4.03 
5% annual hypothetical return   1,000.00    1,023.14    1.82    3.88 
Growth Fund actual return   1,000.00    1,133.71    1.92    4.31 
5% annual hypothetical return   1,000.00    1,023.14    1.82    4.08 
Aggressive Growth Fund actual return   1,000.00    1,171.36    2.00    4.60 
5% annual hypothetical return   1,000.00    1,023.09    1.87    4.28 
* “Expenses paid during period” is based on each fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. 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 on which this waiver or reimbursement is scheduled to end. Without 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 0.39% for the Income Fund, 0.37% for the Conservative Fund, 0.36% for the Moderate Fund, 0.36% for the Growth Fund and 0.37% for the Aggressive Growth Fund.
† “Effective expenses paid during period” is 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 0.71% for the Income Fund, 0.73% for the Conservative Fund, 0.77% for the Moderate Fund, 0.81% for the Growth Fund and 0.85% for the Aggressive Growth Fund.
   
TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 13
 

Investment results of the Lifestyle Funds

 

Performance for the twelve months ended May 31, 2021

All five of the Lifestyle Funds produced double-digit gains for the twelve-month period and outperformed their respective composite benchmarks. Institutional Class returns ranged from 10.58% for the Lifestyle Income Fund to 44.79% for the Lifestyle Aggressive Growth Fund. The performance tables show returns for all share classes of the funds.

The margin of outperformance of individual Lifestyle Funds, in relation to their respective composite benchmarks, ranged from 0.78 of a percentage point for the Lifestyle Aggressive Growth Fund to 2.81 percentage points for the Lifestyle Moderate Fund. (All results for the Lifestyle Funds are for the Institutional Class.)

 

Economic recovery drove stocks sharply higher

The U.S. economy grew at a robust pace during the period, staging a strong recovery from the impact of the COVID-19 pandemic. Real gross domestic product (GDP), which measures the value of all goods and services produced in the United States, grew by 33.4% during the third quarter of 2020, bouncing back from a steep contraction the previous three months. GDP expanded by 4.3% during the fourth quarter of 2020 and 6.4% during the first three months of 2021 (the latter according to the government’s “second” estimate). Unemployment declined steadily from 11.1% at the start of the period to 5.8% in May 2021. Core inflation, which includes all items except food and energy, rose by 3.8% over the twelve months ended May 31, 2021. Oil prices rose sharply during the period.

The Federal Reserve left the federal funds target rate unchanged over the twelve-month period, maintaining the key short-term interest-rate measure at 0.00%–0.25%.

Domestic and foreign stocks generated strong gains for the period. The Russell 3000® Index, a broad measure of the U.S. stock market, climbed 43.91%. The MSCI ACWI ex USA Investable Market Index (IMI), which measures the performance of large-, mid- and small-cap equities in 22 of 23 developed-markets countries (excluding the United States) and 27 emerging-markets countries, advanced 44.08% in U.S.-dollar terms.

U.S. investment-grade bond performance was hindered by the impact of rising yields on longer-term securities (bond prices move in the opposite direction of yields). The broad domestic investment-grade fixed-rate bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, returned –0.40% for the period. Short-term bonds, as measured by the Bloomberg Barclays U.S. 1–3 Year Government/Credit Index, gained 0.80%.

 

14 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Equity funds posted largest gains

The Lifestyle Funds may invest in up to four sectors of the investment markets: U.S. equity (stocks), international equity (foreign stocks), fixed income and short-term fixed income. The Lifestyle Funds do this by investing in various underlying funds that, in turn, buy stocks, bonds and other securities in these market sectors. (Other than the Nuveen Dividend Value Fund, the Nuveen Santa Barbara Dividend Growth Fund and the Nuveen International Growth Fund, all funds mentioned below are TIAA-CREF Funds.)

For the twelve months, the domestic and international equity sectors both recorded strong results that contributed most to the funds’ absolute returns—that is, without regard to performance relative to their respective composite benchmarks. Within the U.S. equity category, the Quant Small-Cap Equity Fund and the Quant Small/Mid-Cap Equity Fund posted sizable double-digit gains. Among foreign stock funds, the Emerging Markets Equity Fund performed best, followed by the International Equity Fund. Within fixed income, the Core Plus Bond Fund produced a solid single-digit return. (All fund returns are for the Institutional Class.)

 

U.S. bond and domestic stock funds benefited relative performance

All of the Lifestyle Funds outperformed their respective composite benchmarks, primarily due to the relative strength of underlying funds investing in fixed income and U.S. equities.

In the fixed-income sector, the Core Plus Bond Fund was a substantial contributor to the relative performance of all Lifestyle Funds except the Lifestyle Aggressive Growth Fund, which has a target allocation of 100% equities. The Short-Term Bond Fund and the Core Bond Fund also benefited the performance of the Lifestyle Income Fund and the Lifestyle Conservative Fund.

Within U.S. equities, the Growth & Income Fund was the largest contributor to relative performance across all Lifestyle Funds. The Large-Cap Growth Fund, the Quant Small/Mid-Cap Equity Fund and the Large-Cap Value Fund also enhanced the Funds’ relative performance. In contrast, the Nuveen Santa Barbara Dividend Growth Fund and the Nuveen Dividend Value Fund detracted most from the relative performance of all Lifestyle Funds.

In the foreign stock category, the International Equity Fund contributed most to the Lifestyle Funds’ relative performance, followed by the Emerging Markets Equity Fund and the International Opportunities Fund. However, these positive effects were offset by the relative underperformance of the Nuveen International Growth Fund and the Quant International Small-Cap Equity Fund. (Performance of the Lifestyle Funds’ underlying TIAA-CREF Funds can be found at TIAA.org/performance.)

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 15
 

Lifestyle Income Fund

 

Performance as of May 31, 2021

Lifestyle Income Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years   since
inception		   gross   net 
Institutional Class  12/9/11   10.58%   5.63%   5.13%   0.69%   0.43%
Advisor Class  12/4/15   10.48    5.60    5.10†    0.77    0.51 
Premier Class  12/9/11   10.32    5.44    4.96    0.85    0.58 
Retirement Class  12/9/11   10.23    5.36    4.85    0.93    0.68 
Retail Class  12/9/11   10.21    5.33    4.82    0.96    0.71 
Lifestyle Income Fund Composite Index‡  —   7.98    5.30    4.64§    —    — 
Broad market index                            
Morningstar Conservative Target Risk Index  —   8.80    5.63    4.73§    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual reimbursement of various expenses. The expense reimbursement will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Institutional Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Institutional Class.
‡ As of the close of business on May 31, 2021, 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 Index ex USA Investable Market Index. The Fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time.
§ Performance is calculated from the inception date of the Institutional Class.

 

16 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Lifestyle Income Fund

 

$2,000,000 invested at Fund’s inception

 

Institutional Class (inception December 9, 2011)

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

  % of net assets
as of 5/31/21
Equity  
U.S. equity 13.98
International equity 6.08
Fixed income  
Fixed income 39.88
Short-term fixed income 39.86
Other assets & liabilities, net 0.20
Total 100.00

Target allocation

 


 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 17

 

Lifestyle Conservative Fund

 

Performance as of May 31, 2021

Lifestyle Conservative Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years   since
inception		   gross   net 
Institutional Class  12/9/11   18.77%   8.24%   7.49%   0.56%   0.47%
Advisor Class  12/4/15   18.57    8.16    7.44†    0.66    0.57 
Premier Class  12/9/11   18.49    8.07    7.32    0.72    0.62 
Retirement Class  12/9/11   18.44    7.97    7.21    0.80    0.72 
Retail Class  12/9/11   18.40    7.95    7.19    0.82    0.74 
Lifestyle Conservative Fund Composite Index‡  —   16.09    8.05    7.07§    —    — 
Broad market index                            
Morningstar Moderately Conservative Target Risk Index  —   16.87    8.17    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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual reimbursement of various expenses. The expense reimbursement will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Institutional Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Institutional Class.
‡ As of the close of business on May 31, 2021, 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 Index ex USA Investable Market Index. The Fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time.
§ Performance is calculated from the inception date of the Institutional Class.

 

18 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Lifestyle Conservative Fund

 

$2,000,000 invested at Fund’s inception

 

Institutional Class (inception December 9, 2011)

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

  % of net assets
as of 5/31/21
Equity  
U.S. equity 27.97
International equity 12.16
Fixed income  
Fixed income 39.86
Short-term fixed income 19.92
Other assets & liabilities, net 0.09
Total 100.00

Target allocation

 


 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 19
 

Lifestyle Moderate Fund

 

Performance as of May 31, 2021

Lifestyle Moderate Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		   1 year    5 years    since
inception		    gross    net 
Institutional Class  12/9/11   27.47%   10.86%   9.84%   0.58%   0.52%
Advisor Class  12/4/15   27.29    10.77    9.79†    0.68    0.62 
Premier Class  12/9/11   27.22    10.68    9.67    0.74    0.67 
Retirement Class  12/9/11   27.12    10.58    9.56    0.83    0.77 
Retail Class  12/9/11   27.02    10.55    9.53    0.85    0.79 
Lifestyle Moderate Fund Composite Index‡  —   24.66    10.75    9.47§    —    — 
Broad market index                            
Morningstar Moderate Target Risk Index  —   25.54    10.34    8.89§    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual reimbursement of various expenses. The expense reimbursement will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Institutional Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Institutional Class.
‡ As of the close of business on May 31, 2021, 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 Index ex USA Investable Market Index. The Fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time.
§ Performance is calculated from the inception date of the Institutional Class.

 

20 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Lifestyle Moderate Fund

 

$2,000,000 invested at Fund’s inception

 

Institutional Class (inception December 9, 2011)

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

  % of net assets
as of 5/31/21
Equity  
U.S. equity 41.90
International equity 18.22
Fixed income 39.82
Other assets & liabilities, net 0.06
Total 100.00

Target allocation

 


 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 21
 

Lifestyle Growth Fund

 

Performance as of May 31, 2021

Lifestyle Growth Fund     Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year   5 years   since
inception		   gross   net 
Institutional Class  12/9/11   35.87%   12.98%   11.63%   0.67%   0.56%
Advisor Class  12/4/15   35.72    12.89    11.58†    0.76    0.66 
Premier Class  12/9/11   35.62    12.81    11.45    0.82    0.71 
Retirement Class  12/9/11   35.51    12.68    11.34    0.91    0.81 
Retail Class  12/9/11   35.45    12.64    11.30    0.94    0.84 
Lifestyle Growth Fund Composite Index‡  —   34.06    13.15    11.51§    —    — 
Broad market index                            
Morningstar Moderately Aggressive Target Risk Index  —   34.76    12.49    10.72§    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual reimbursement of various expenses. The expense reimbursement will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Institutional Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Institutional Class.
‡ As of the close of business on May 31, 2021, the Lifestyle Growth Fund Composite Index consisted of: 56.0% Russell 3000® Index; 24.0% MSCI All Country World Index ex USA Investable Market 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.
§ Performance is calculated from the inception date of the Institutional Class.

 

22 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Lifestyle Growth Fund

 

$2,000,000 invested at Fund’s inception

 

Institutional Class (inception December 9, 2011)

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

  % of net assets
as of 5/31/21
Equity  
U.S. equity 55.79
International equity 24.27
Fixed income 19.88
Other assets & liabilities, net 0.06
Total 100.00

Target allocation

 


 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 23
 

Lifestyle Aggressive Growth Fund

 

Performance as of May 31, 2021

Lifestyle Aggressive Growth Fund    Total Return  Average annual
total return		  Annual operating
expenses*#
   Inception
date		  1 year    5 years    since
inception		    gross    net 
Institutional Class  12/9/11   44.79%   15.13%   13.42%   0.75%   0.60%
Advisor Class  12/4/15   44.68    15.06    13.38†    0.83    0.69 
Premier Class  12/9/11   44.54    14.94    13.25    0.89    0.75 
Retirement Class  12/9/11   44.47    14.84    13.14    0.99    0.85 
Retail Class  12/9/11   44.41    14.76    13.06    1.04    0.90 
Lifestyle Aggressive Growth Fund Composite Index‡  —   44.01    15.49    13.51§    —    — 
Broad market index                            
Morningstar Aggressive Target Risk Index  —   42.04    13.94    12.03§    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual reimbursement of various expenses. The expense reimbursement will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
† The performance shown for the Advisor Class that is prior to its inception date is based on performance of the Institutional Class. The performance for these periods has not been restated to reflect the actual expenses of the Advisor Class. If these actual expenses had been reflected, the performance of the Advisor Class shown for these periods would have been different because the Advisor Class has different expenses than the Institutional Class.
‡ As of the close of business on May 31, 2021, the Lifestyle Aggressive Growth Fund Composite Index consisted of: 70.0% Russell 3000® Index; and 30.0% MSCI All Country World Index ex USA Investable Market Index. The Fund’s benchmark, the components that make up the composite benchmark and the method of calculating the composite benchmark’s performance may vary over time.
§ Performance is calculated from the inception date of the Institutional Class.

 

24 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Lifestyle Aggressive Growth Fund

 

$2,000,000 invested at Fund’s inception

 

Institutional Class (inception December 9, 2011)

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

  % of net assets
as of 5/31/21
Equity  
U.S. equity 69.69
International equity 30.30
Other assets & liabilities, net 0.01
Total 100.00

Target allocation

 


 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 25
 

Portfolio of investments

 

Lifestyle Income Fund  ■  May 31, 2021

 

Shares   Security    Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.8%a            
FIXED INCOME—39.9%            
 1,859,452   TIAA-CREF Core Bond Fund    $19,970,520    19.9%
 1,830,484   TIAA-CREF Core Plus Bond Fund     19,970,576    20.0 
     TOTAL FIXED INCOME     39,941,096    39.9 
INTERNATIONAL EQUITY—6.1%            
 22,152   Nuveen International Growth Fund     1,306,280    1.3 
 56,962   TIAA-CREF Emerging Markets Equity Fund     802,601    0.8 
 125,217   TIAA-CREF International Equity Fund     1,818,151    1.8 
 67,942   TIAA-CREF International Opportunities Fund     1,302,453    1.3 
 70,174   TIAA-CREF Quant International Small-Cap Equity Fund     862,436    0.9 
     TOTAL INTERNATIONAL EQUITY     6,091,921    6.1 
SHORT-TERM FIXED INCOME—39.8%            
 3,806,576   TIAA-CREF Short-Term Bond Fund     39,930,983    39.8 
     TOTAL SHORT-TERM FIXED INCOME     39,930,983    39.8 
U.S. EQUITY—14.0%            
 136,512   Nuveen Dividend Value Fund     2,218,326    2.2 
 37,499   Nuveen Santa Barbara Dividend Growth Fund     1,973,595    2.0 
 107,216   TIAA-CREF Growth & Income Fund     1,977,059    2.0 
 87,071   TIAA-CREF Large-Cap Growth Fund     2,141,951    2.2 
 40,739   TIAA-CREF Large-Cap Growth Index Fund     2,136,781    2.1 
 99,290   TIAA-CREF Large-Cap Value Fund     2,216,149    2.2 
 27,940   TIAA-CREF Quant Small-Cap Equity Fund     625,585    0.6 
 41,649   TIAA-CREF Quant Small/Mid-Cap Equity Fund     717,199    0.7 
     TOTAL U.S. EQUITY     14,006,645    14.0 
     TOTAL AFFILIATED INVESTMENT COMPANIES (Cost $92,878,683)   99,970,645    99.8 
                  
     TOTAL PORTFOLIO (Cost $92,878,683)   99,970,645    99.8 
     OTHER ASSETS & LIABILITIES, NET     222,627    0.2 
     NET ASSETS    $100,193,272    100.0%

 

 

 

a The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.

 

26 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements
 

Portfolio of investments

 

Lifestyle Conservative Fund  ■  May 31, 2021

 

Shares   Security    Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a            
FIXED INCOME—39.9%            
 3,422,951   TIAA-CREF Core Bond Fund    $36,762,491    10.0%
 10,108,905   TIAA-CREF Core Plus Bond Fund     110,288,154    29.9 
     TOTAL FIXED INCOME     147,050,645    39.9 
INTERNATIONAL EQUITY—12.1%            
 163,761   Nuveen International Growth Fund     9,656,981    2.6 
 417,569   TIAA-CREF Emerging Markets Equity Fund     5,883,544    1.6 
 919,552   TIAA-CREF International Equity Fund     13,351,901    3.6 
 503,653   TIAA-CREF International Opportunities Fund     9,655,021    2.6 
 513,814   TIAA-CREF Quant International Small-Cap Equity Fund     6,314,774    1.7 
     TOTAL INTERNATIONAL EQUITY     44,862,221    12.1 
SHORT-TERM FIXED INCOME—19.9%            
 7,005,412   TIAA-CREF Short-Term Bond Fund     73,486,769    19.9 
     TOTAL SHORT-TERM FIXED INCOME     73,486,769    19.9 
U.S. EQUITY—28.0%            
 1,006,638   Nuveen Dividend Value Fund     16,357,869    4.4 
 277,158   Nuveen Santa Barbara Dividend Growth Fund     14,586,810    4.0 
 788,292   TIAA-CREF Growth & Income Fund     14,536,095    3.9 
 641,324   TIAA-CREF Large-Cap Growth Fund     15,776,574    4.3 
 300,244   TIAA-CREF Large-Cap Growth Index Fund     15,747,806    4.3 
 729,762   TIAA-CREF Large-Cap Value Fund     16,288,290    4.4 
 205,728   TIAA-CREF Quant Small-Cap Equity Fund     4,606,258    1.3 
 306,498   TIAA-CREF Quant Small/Mid-Cap Equity Fund     5,277,901    1.4 
     TOTAL U.S. EQUITY     103,177,603    28.0 
     TOTAL AFFILIATED INVESTMENT COMPANIES (Cost $323,913,429)   368,577,238    99.9 
                  
     TOTAL PORTFOLIO (Cost $323,913,429)   368,577,238    99.9 
     OTHER ASSETS & LIABILITIES, NET     415,051    0.1 
     NET ASSETS    $368,992,289    100.0%

 

 

 

a The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.

 

See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 27
 

Portfolio of investments

 

Lifestyle Moderate Fund  ■  May 31, 2021

 

Shares   Security    Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a            
FIXED INCOME—39.8%            
 22,756,566   TIAA-CREF Core Plus Bond Fund    $248,274,136    39.8%
     TOTAL FIXED INCOME     248,274,136    39.8 
INTERNATIONAL EQUITY—18.2%            
 413,419   Nuveen International Growth Fund     24,379,305    3.9 
 1,059,927   TIAA-CREF Emerging Markets Equity Fund     14,934,371    2.4 
 2,341,190   TIAA-CREF International Equity Fund     33,994,082    5.4 
 1,269,632   TIAA-CREF International Opportunities Fund     24,338,840    3.9 
 1,300,579   TIAA-CREF Quant International Small-Cap Equity Fund     15,984,114    2.6 
     TOTAL INTERNATIONAL EQUITY     113,630,712    18.2 
U.S. EQUITY—41.9%            
 2,546,298   Nuveen Dividend Value Fund     41,377,338    6.6 
 697,857   Nuveen Santa Barbara Dividend Growth Fund     36,728,196    5.9 
 2,002,363   TIAA-CREF Growth & Income Fund     36,923,580    5.9 
 1,626,870   TIAA-CREF Large-Cap Growth Fund     40,020,990    6.4 
 760,287   TIAA-CREF Large-Cap Growth Index Fund     39,877,057    6.4 
 1,853,311   TIAA-CREF Large-Cap Value Fund     41,365,898    6.6 
 520,595   TIAA-CREF Quant Small-Cap Equity Fund     11,656,131    1.9 
 776,005   TIAA-CREF Quant Small/Mid-Cap Equity Fund     13,362,798    2.2 
     TOTAL U.S. EQUITY     261,311,988    41.9 
     TOTAL AFFILIATED INVESTMENT COMPANIES (Cost $517,615,745)   623,216,836    99.9 
                  
     TOTAL PORTFOLIO (Cost $517,615,745)   623,216,836    99.9 
     OTHER ASSETS & LIABILITIES, NET     513,661    0.1 
     NET ASSETS    $623,730,497    100.0%

 

 

 

a The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.

 

28 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements
 

Portfolio of investments

 

Lifestyle Growth Fund  ■  May 31, 2021

 

Shares   Security    Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a            
FIXED INCOME—19.9%            
 6,016,124   TIAA-CREF Core Plus Bond Fund    $65,635,911    19.9%
     TOTAL FIXED INCOME     65,635,911    19.9 
INTERNATIONAL EQUITY—24.2%            
 291,795   Nuveen International Growth Fund     17,207,148    5.2 
 748,495   TIAA-CREF Emerging Markets Equity Fund     10,546,293    3.2 
 1,651,938   TIAA-CREF International Equity Fund     23,986,144    7.2 
 895,770   TIAA-CREF International Opportunities Fund     17,171,918    5.2 
 913,753   TIAA-CREF Quant International Small-Cap Equity Fund     11,230,020    3.4 
     TOTAL INTERNATIONAL EQUITY     80,141,523    24.2 
U.S. EQUITY—55.8%            
 1,795,366   Nuveen Dividend Value Fund     29,174,695    8.8 
 491,852   Nuveen Santa Barbara Dividend Growth Fund     25,886,168    7.9 
 1,410,863   TIAA-CREF Growth & Income Fund     26,016,317    7.9 
 1,146,031   TIAA-CREF Large-Cap Growth Fund     28,192,356    8.5 
 536,561   TIAA-CREF Large-Cap Growth Index Fund     28,142,627    8.5 
 1,306,733   TIAA-CREF Large-Cap Value Fund     29,166,279    8.8 
 366,812   TIAA-CREF Quant Small-Cap Equity Fund     8,212,921    2.5 
 547,720   TIAA-CREF Quant Small/Mid-Cap Equity Fund     9,431,735    2.9 
     TOTAL U.S. EQUITY     184,223,098    55.8 
     TOTAL AFFILIATED INVESTMENT COMPANIES (Cost $261,853,654)   330,000,532    99.9 
                  
     TOTAL PORTFOLIO (Cost $261,853,654)   330,000,532    99.9 
     OTHER ASSETS & LIABILITIES, NET     269,130    0.1 
     NET ASSETS    $330,269,662    100.0%

 

 

 

a The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.

 

See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 29
 

Portfolio of investments

 

Lifestyle Aggressive Growth Fund  ■  May 31, 2021

 

Shares   Security    Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—100.0%a          
INTERNATIONAL EQUITY—30.3%            
 263,165   Nuveen International Growth Fund    $15,518,868    6.5%
 677,612   TIAA-CREF Emerging Markets Equity Fund     9,547,555    4.0 
 1,490,820   TIAA-CREF International Equity Fund     21,646,705    9.0 
 809,166   TIAA-CREF International Opportunities Fund     15,511,708    6.5 
 829,709   TIAA-CREF Quant International Small-Cap Equity Fund     10,197,118    4.3 
     TOTAL INTERNATIONAL EQUITY     72,421,954    30.3 
U.S. EQUITY—69.7%            
 1,623,373   Nuveen Dividend Value Fund     26,379,809    11.0 
 445,730   Nuveen Santa Barbara Dividend Growth Fund     23,458,754    9.8 
 1,275,870   TIAA-CREF Growth & Income Fund     23,527,045    9.9 
 1,035,856   TIAA-CREF Large-Cap Growth Fund     25,482,065    10.7 
 484,759   TIAA-CREF Large-Cap Growth Index Fund     25,425,616    10.6 
 1,179,808   TIAA-CREF Large-Cap Value Fund     26,333,309    11.0 
 331,516   TIAA-CREF Quant Small-Cap Equity Fund     7,422,645    3.1 
 495,921   TIAA-CREF Quant Small/Mid-Cap Equity Fund     8,539,756    3.6 
     TOTAL U.S. EQUITY     166,568,999    69.7 
     TOTAL AFFILIATED INVESTMENT COMPANIES (Cost $182,195,523)   238,990,953    100.0 
                  
     TOTAL PORTFOLIO (Cost $182,195,523)   238,990,953    100.0 
     OTHER ASSETS & LIABILITIES, NET     83,443    0.0 
     NET ASSETS    $239,074,396    100.0%

 

 

 

a The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.

 

30 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements
 

[This page intentionally left blank.]

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 31
 

Statements of assets and liabilities

 

TIAA-CREF Lifestyle Funds  ■  May 31, 2021

 

    Lifestyle
Income Fund		   Lifestyle
Conservative
Fund		   Lifestyle
Moderate Fund		   Lifestyle
Growth Fund		   Lifestyle
Aggressive
Growth Fund		 
ASSETS                          
Affiliated investments, at value‡    $99,970,645   $368,577,238   $623,216,836   $330,000,532   $238,990,953 
Cash    231,508    326,702    798,177    318,101    319,809 
Receivable from securities transactions    79,973    614,859    1,413,247    997,813    771,082 
Receivable from Fund shares sold    150,795    210,409    201,722    101,442    165,973 
Dividends receivable    118,730    356,752    469,285    122,969    — 
Due from affiliates    17,534    18,218    24,294    19,435    25,248 
Other    4,745    13,136    19,620    9,423    6,591 
Total assets    100,573,930    370,117,314    626,143,181    331,569,715    240,279,656 
LIABILITIES                          
Management fees payable    8,396    31,005    52,868    27,687    19,913 
Service agreement fees payable    5,500    14,416    27,873    13,557    15,057 
Distribution fees payable    12,189    51,488    86,408    44,874    24,708 
Due to affiliates    4,565    4,889    5,193    4,827    4,701 
Payable for securities transactions    327,018    896,291    2,000,282    1,106,055    864,366 
Payable for Fund shares redeemed    4,876    78,193    154,369    48,713    238,300 
Payable for trustee compensation    4,806    13,324    19,807    9,586    6,716 
Accrued expenses and other payables    13,308    35,419    65,884    44,754    31,499 
Total liabilities    380,658    1,125,025    2,412,684    1,300,053    1,205,260 
NET ASSETS   $100,193,272   $368,992,289   $623,730,497   $330,269,662   $239,074,396 
NET ASSETS CONSIST OF:                          
Paid-in-capital   $91,779,517   $314,220,791   $495,543,296   $249,483,627   $171,434,345 
Total distributable earnings (loss)    8,413,755    54,771,498    128,187,201    80,786,035    67,640,051 
NET ASSETS   $100,193,272   $368,992,289   $623,730,497   $330,269,662   $239,074,396 
INSTITUTIONAL CLASS:                          
Net assets   $15,514,418   $53,419,963   $77,428,614   $48,422,444   $45,922,894 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)    1,296,087    3,749,011    4,641,925    2,551,302    2,154,207 
Net asset value per share   $11.97   $14.25   $16.68   $18.98   $21.32 
ADVISOR CLASS:                          
Net assets   $133,277   $7,122,108   $13,718,781   $7,975,575   $9,162,720 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)    11,140    499,964    822,759    420,624    429,773 
Net asset value per share   $11.96   $14.25   $16.67   $18.96   $21.32 
PREMIER CLASS:                          
Net assets   $360,593   $773,531   $688,682   $2,021,901   $427,433 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)    30,106    54,250    41,200    106,564    20,000 
Net asset value per share   $11.98   $14.26   $16.72   $18.97   $21.37 
RETIREMENT CLASS:                          
Net assets   $26,139,482   $63,022,139   $121,361,287   $59,232,261   $65,639,626 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)    2,186,093    4,429,387    7,287,904    3,134,786    3,092,303 
Net asset value per share   $11.96   $14.23   $16.65   $18.90   $21.23 
RETAIL CLASS:                          
Net assets   $58,045,502   $244,654,548   $410,533,133   $212,617,481   $117,921,723 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)    4,854,838    17,202,845    24,665,482    11,269,889    5,565,667 
Net asset value per share   $11.96   $14.22   $16.64   $18.87   $21.19 
‡   Affiliated investments, cost   $92,878,683   $323,913,429   $517,615,745   $261,853,654   $182,195,523 

 

32 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds   See notes to financial statements    See notes to financial statements   TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 33
 

Statements of operations

 

TIAA-CREF Lifestyle Funds  ■  For the year ended May 31, 2021

 

   Lifestyle
Income Fund		   Lifestyle
Conservative
Fund		   Lifestyle
Moderate Fund		   Lifestyle
Growth Fund		   Lifestyle
Aggressive
Growth Fund		 
INVESTMENT INCOME                         
Dividends from affiliated investments  $1,604,820   $5,756,921   $9,471,505   $4,081,062   $2,279,395 
Total income   1,604,820    5,756,921    9,471,505    4,081,062    2,279,395 
EXPENSES                         
Management fees   90,285    333,149    563,441    287,906    196,796 
Shareholder servicing – Institutional Class   390    1,199    467    502    1,031 
Shareholder servicing – Advisor Class   53    7,056    10,904    7,371    7,841 
Shareholder servicing – Premier Class   66    76    63    71    52 
Shareholder servicing – Retirement Class   57,086    137,895    276,656    126,697    133,392 
Shareholder servicing – Retail Class   19,343    48,632    82,621    56,221    50,279 
Distribution fees – Premier Class   510    1,093    948    2,476    562 
Distribution fees – Retail Class   137,411    567,841    931,168    469,168    249,801 
Administrative service fees   41,778    44,849    47,708    44,257    43,088 
Registration fees   73,505    80,194    80,533    76,059    75,939 
Trustee fees and expenses   1,023    3,678    6,196    3,154    2,158 
Other expenses   50,579    85,913    130,742    98,901    81,765 
Total expenses   472,029    1,311,575    2,131,447    1,172,783    842,704 
Less: Expenses reimbursed by the investment adviser   (167,491)   (221,642)   (266,584)   (223,256)   (210,743)
 Fee waiver by investment adviser and Nuveen Securities   (3,250)   (11,945)   (53,894)   (27,650)   (31,099)
Net expenses   301,288    1,077,988    1,810,969    921,877    600,862 
Net investment income (loss)   1,303,532    4,678,933    7,660,536    3,159,185    1,678,533 
NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS               
Realized gain (loss) from sale of affiliated investments   2,212,288    12,303,346    27,619,330    15,452,095    10,957,305 
Realized gain distributions from affiliated investments   1,532,661    8,844,587    20,407,376    13,083,151    10,734,011 
Realized gain (loss) from sale of unaffiliated investments   (1,269)   (12,669)   (25,069)   (26,362)   (14,112)
Net realized gain (loss) from investments   3,743,680    21,135,264    48,001,637    28,508,884    21,677,204 
Net change in unrealized appreciation (depreciation) from affiliated investments   3,544,521    29,481,343    76,880,654    54,177,879    47,534,325 
Net realized and unrealized gain (loss) from investments   7,288,201    50,616,607    124,882,291    82,686,763    69,211,529 
Net increase (decrease) in net assets from operations  $8,591,733   $55,295,540   $132,542,827   $85,845,948   $70,890,062 

 

34 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 35
 

Statements of changes in net assets

 

TIAA-CREF Lifestyle Funds  ■  For the year ended

 

      Lifestyle Income Fund  Lifestyle Conservative Fund  Lifestyle Moderate Fund
      May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020 
OPERATIONS                              
Net investment income (loss)  $1,303,532   $1,641,189   $4,678,933   $5,624,279   $7,660,536   $8,756,441 
Net realized gain (loss) from investments   3,743,680    460,714    21,135,264    2,650,111    48,001,637    5,968,147 
Net change in unrealized appreciation (depreciation) from affiliated investments   3,544,521    1,704,131    29,481,343    6,132,044    76,880,654    10,223,187 
Net increase (decrease) in net assets from operations   8,591,733    3,806,034    55,295,540    14,406,434    132,542,827    24,947,775 
DISTRIBUTIONS TO SHAREHOLDERS                           
   Institutional Class   (427,252)   (283,593)   (1,992,675)   (1,246,088)   (3,642,954)   (2,262,993)
   Advisor Class   (4,121)   (3,938)   (322,458)   (87,884)   (733,146)   (259,983)
   Premier Class   (11,719)   (12,383)   (32,907)   (23,165)   (34,762)   (34,321)
   Retirement Class   (773,711)   (585,654)   (2,464,691)   (1,635,540)   (5,988,959)   (4,382,431)
   Retail Class   (1,833,065)   (1,674,077)   (9,960,005)   (5,953,830)   (19,898,063)   (11,666,976)
Total distributions   (3,049,868)   (2,559,645)   (14,772,736)   (8,946,507)   (30,297,884)   (18,606,704)
SHAREHOLDER TRANSACTIONS                              
Subscriptions:  Institutional Class   11,740,958    3,511,997    39,283,272    17,762,239    59,135,882    21,604,803 
   Advisor Class   16,008    1,992    924,621    1,010,365    1,450,139    1,002,866 
   Premier Class   22,871    28,048    1,849    12,731    —    452 
   Retirement Class   8,824,223    6,182,077    12,591,347    8,763,699    14,594,049    10,579,881 
   Retail Class   8,401,620    8,692,775    28,522,800    20,954,305    33,062,718    25,150,555 
Fund reorganization:‡  Advisor Class   —    —    —    8,131,840    —    17,748,392 
   Retail Class   —    —    —    47,414,432    —    128,111,049 
Reinvestments of distributions:   Institutional Class   426,579    283,196    1,991,976    1,245,624    3,642,068    2,262,319 
   Advisor Class   130    231    300,444    76,795    703,866    244,911 
   Premier Class   3,608    4,742    20,492    14,262    17,483    21,261 
   Retirement Class   773,317    585,285    2,464,030    1,635,105    5,988,110    4,381,791 
   Retail Class   1,786,314    1,638,191    9,682,138    5,868,063    19,414,934    11,429,389 
Redemptions:  Institutional Class   (5,564,950)   (4,380,122)   (27,525,400)   (12,584,139)   (49,057,996)   (11,713,906)
   Advisor Class   —    (4,769)   (1,532,103)   (3,054,206)   (3,918,131)   (6,718,950)
   Premier Class   —    (542,803)   (3,558)   (78,104)   (826)   (496,775)
   Retirement Class   (4,600,573)   (2,858,598)   (4,878,768)   (9,394,796)   (12,889,828)   (15,437,146)
   Retail Class   (6,466,973)   (8,439,810)   (27,554,449)   (30,086,703)   (40,690,105)   (53,162,619)
Net increase (decrease) from shareholder transactions   15,363,132    4,702,432    34,288,691    57,691,512    31,452,363    135,008,273 
Net increase (decrease) in net assets   20,904,997    5,948,821    74,811,495    63,151,439    133,697,306    141,349,344 
NET ASSETS                              
Beginning of period79,288,275    73,339,454    294,180,794    231,029,355    490,033,191    348,683,847 
End of period  $100,193,272   $79,288,275   $368,992,289   $294,180,794   $623,730,497   $490,033,191 

 

36 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 37
 
Statements of changes in net assets continued
   
TIAA-CREF Lifestyle Funds   ■  For the year ended  

 

      Lifestyle Income Fund  Lifestyle Conservative Fund  Lifestyle Moderate Fund
      May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020 
                            
CHANGE IN FUND SHARES                     
Shares sold:  Institutional Class   998,197    312,649    2,849,607    1,409,735    3,714,237    1,536,021 
   Advisor Class   1,366    177    68,305    80,042    92,621    72,160 
   Premier Class   1,948    2,503    136    991    —    32 
   Retirement Class   750,041    554,999    924,631    698,531    959,969    752,785 
   Retail Class   715,344    773,394    2,091,802    1,670,687    2,097,629    1,809,034 
Shares from fund
reorganization:‡		  Advisor Class   —    —    —    651,653    —    1,281,261 
   Retail Class   —    —    —    3,804,454    —    9,262,047 
Shares reinvested:  Institutional Class   36,471    25,689    146,803    101,284    235,023    164,683 
   Advisor Class   11    21    22,152    6,413    45,461    17,989 
   Premier Class   308    429    1,509    1,157    1,125    1,535 
   Retirement Class   66,176    53,099    181,659    132,721    386,540    318,276 
   Retail Class   152,817    148,466    714,563    477,792    1,254,035    831,842 
Shares redeemed:  Institutional Class   (472,175)   (392,946)   (2,000,061)   (1,011,987)   (3,070,275)   (842,949)
   Advisor Class   —    (451)   (112,355)   (247,179)   (252,998)   (485,904)
   Premier Class   —    (48,541)   (263)   (6,260)   (53)   (35,206)
   Retirement Class   (390,892)   (256,120)   (361,252)   (772,340)   (828,902)   (1,122,066)
   Retail Class   (551,745)   (766,007)   (2,027,385)   (2,430,297)   (2,630,036)   (3,879,675)
Net increase (decrease) from shareholder transactions  1,307,867    407,361    2,499,851    4,567,397    2,004,376    9,681,865 

 

‡ Refer to Note 2—significant accounting policies for further details.

 

38 2021 Annual Report   ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds   ■  2021 Annual Report 39
 
Statements of changes in net assets continued
   
TIAA-CREF Lifestyle Funds   ■  For the year ended  

 

      Lifestyle Growth Fund  Lifestyle Aggressive Growth Fund
      May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020 
                    
OPERATIONS                    
Net investment income (loss)  $3,159,185   $3,965,089   $1,678,533   $2,256,612 
Net realized gain (loss) from investments   28,508,884    3,862,533    21,677,204    1,734,228 
Net change in unrealized appreciation (depreciation) from affiliated investments   54,177,879    4,008,989    47,534,325    2,990,561 
Net increase (decrease) in net assets from operations   85,845,948    11,836,611    70,890,062    6,981,401 
                        
DISTRIBUTIONS TO SHAREHOLDERS                
   Institutional Class   (2,455,260)   (2,046,831)   (1,920,530)   (1,656,950)
   Advisor Class   (554,493)   (171,898)   (448,551)   (81,293)
   Premier Class   (100,977)   (71,803)   (20,795)   (22,195)
   Retirement Class   (3,004,778)   (2,131,844)   (2,865,671)   (2,464,215)
   Retail Class   (11,319,326)   (5,657,002)   (5,277,511)   (3,168,673)
Total distributions   (17,434,834)   (10,079,378)   (10,533,058)   (7,393,326)
                        
SHAREHOLDER TRANSACTIONS                    
Subscriptions:  Institutional Class   27,347,896    15,120,483    21,912,076    12,697,075 
   Advisor Class   665,627    641,744    768,249    1,238,277 
   Premier Class   248,456    83,326    —    8,235,685 
   Retirement Class   10,155,112    6,565,838    11,885,468    6,437,842 
   Retail Class   16,934,283    14,590,401    10,570,580    8,207,062 
Fund reorganization:‡  Advisor Class   —    12,805,475    —    7,717,718 
   Retail Class   —    80,141,179    —    39,932,063 
Reinvestments of distributions:   Institutional Class   2,454,427    2,046,203    1,919,463    1,655,989 
   Advisor Class   437,229    141,521    251,697    49,081 
   Premier Class   79,238    55,513    —    3,581 
   Retirement Class   3,003,707    2,131,045    2,856,907    2,463,292 
   Retail Class   11,172,649    5,595,567    5,217,620    3,140,086 
Redemptions:  Institutional Class   (24,541,484)   (17,594,605)   (14,978,368)   (12,654,034)
   Advisor Class   (4,170,543)   (5,003,703)   (1,453,916)   (2,138,365)
   Premier Class   (53,082)   (361,683)   (889)   (8,268,956)
   Retirement Class   (8,298,491)   (7,556,845)   (8,052,833)   (8,648,485)
   Retail Class   (22,460,424)   (23,632,882)   (12,455,733)   (15,611,749)
Net increase (decrease) from shareholder transactions   12,974,600    85,768,577    18,440,321    44,456,162 
Net increase (decrease) in net assets   81,385,714    87,525,810    78,797,325    44,044,237 
                     
NET ASSETS                       
Beginning of period      248,883,948    161,358,138    160,277,071    116,232,834 
End of period     $330,269,662   $248,883,948   $239,074,396   $160,277,071 

 

40 2021 Annual Report   ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds   ■  2021 Annual Report 41
 
Statements of changes in net assets concluded
   
TIAA-CREF Lifestyle Funds   ■  For the year ended  

 

      Lifestyle Growth Fund  Lifestyle Aggressive Growth Fund
      May 31, 2021   May 31, 2020   May 31, 2021   May 31, 2020 
                    
CHANGE IN FUND SHARES                
Shares sold:  Institutional Class   1,530,465    987,740    1,131,984    792,907 
   Advisor Class   38,117    41,923    40,697    83,798 
   Premier Class   13,630    5,451    —    500,123 
   Retirement Class   583,370    465,419    623,284    411,685 
   Retail Class   965,753    985,938    554,398    524,599 
Shares from fund
reorganization:‡		  Advisor Class   —    855,350    —    490,942 
   Retail Class   —    5,373,025    —    2,554,015 
Shares reinvested:  Institutional Class   142,533    135,302    101,828    104,266 
   Advisor Class   25,406    9,142    13,345    2,981 
   Premier Class   4,598    3,669    —    225 
   Retirement Class   175,041    141,311    152,044    155,993 
   Retail Class   651,847    369,806    278,125    198,290 
Shares redeemed:  Institutional Class   (1,406,655)   (1,145,058)   (782,424)   (821,452)
   Advisor Class   (239,820)   (333,131)   (77,673)   (137,606)
   Premier Class   (2,878)   (23,890)   (50)   (503,799)
   Retirement Class   (480,635)   (504,713)   (435,841)   (558,541)
   Retail Class   (1,322,215)   (1,612,063)   (685,883)   (1,022,226)
Net increase (decrease) from shareholder transactions   678,557    5,755,221    913,834    2,776,200 

 

‡ Refer to Note 2—significant accounting policies for further details.

 

42 2021 Annual Report   ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds   ■  2021 Annual Report 43
 

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    
      Net asset   Net   and unrealized   Total gain   Less distributions from  Total   Net asset       Net assets           Net     
   For the
year
ended		  value,
beginning
of period		   investment
income
(loss		)a   gain (loss)
on total
investments 		j  (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands		)  Gross
expenses		e  Net
expenses		e  investment
income
(loss		)  Portfolio
turnover
rate		 
LIFESTYLE INCOME FUND                                                   
Institutional Class:  5/31/21  $11.22    $0.20    $0.98   $1.18    $(0.26)   $(0.17)   $(0.43)   $11.97    10.58%   $15,514    0.29%   0.10%   1.67%   27%
   5/31/20   11.02    0.26    0.33    0.59    (0.27)   (0.12)   (0.39)   11.22    5.53    8,234    0.36    0.10    2.37    27 
   5/31/19   11.08    0.28    0.05    0.33    (0.29)   (0.10)   (0.39)   11.02    3.26    8,683    0.36    0.10    2.57    29 
   5/31/18   11.04    0.24    0.13    0.37    (0.27)   (0.06)   (0.33)   11.08    3.25    3,498    0.36    0.10    2.19    19 
   5/31/17   10.77    0.22    0.38    0.60    (0.26)   (0.07)   (0.33)   11.04    5.72    1,455    0.39    0.10    2.03    18 
Advisor Class:  5/31/21   11.22    0.19    0.98    1.17    (0.26)   (0.17)   (0.43)   11.96    10.48    133    0.33    0.14    1.63    27 
   5/31/20   11.02    0.26    0.33    0.59    (0.27)   (0.12)   (0.39)   11.22    5.47    110    0.41    0.15    2.31    27 
   5/31/19   11.07    0.28    0.06    0.34    (0.29)   (0.10)   (0.39)   11.02    3.24    110    0.37    0.13    2.53    29 
   5/31/18   11.04    0.24    0.12    0.36    (0.27)   (0.06)   (0.33)   11.07    3.24    105    0.37    0.11    2.17    19 
   5/31/17   10.77    0.22    0.38    0.60    (0.26)   (0.07)   (0.33)   11.04    5.70    104    0.40    0.12    2.03    18 
Premier Class:  5/31/21   11.23    0.18    0.98    1.16    (0.24)   (0.17)   (0.41)   11.98    10.32    361    0.45    0.25    1.53    27 
   5/31/20   11.02    0.25    0.34    0.59    (0.26)   (0.12)   (0.38)   11.23    5.47    313    0.52    0.25    2.15    27 
   5/31/19   11.09    0.27    0.04    0.31    (0.28)   (0.10)   (0.38)   11.02    3.02    810    0.51    0.25    2.44    29 
   5/31/18   11.05    0.23    0.12    0.35    (0.25)   (0.06)   (0.31)   11.09    3.10    255    0.52    0.25    2.04    19 
   5/31/17   10.77    0.21    0.37    0.58    (0.23)   (0.07)   (0.30)   11.05    5.46    234    0.55    0.25    1.89    18 
Retirement Class:  5/31/21   11.21    0.17    0.98    1.15    (0.23)   (0.17)   (0.40)   11.96    10.23    26,139    0.54    0.35    1.43    27 
   5/31/20   11.00    0.24    0.34    0.58    (0.25)   (0.12)   (0.37)   11.21    5.35    19,742    0.60    0.35    2.11    27 
   5/31/19   11.06    0.25    0.06    0.31    (0.27)   (0.10)   (0.37)   11.00    2.92    15,504    0.60    0.35    2.29    29 
   5/31/18   11.03    0.21    0.12    0.33    (0.24)   (0.06)   (0.30)   11.06    3.00    16,847    0.61    0.35    1.93    19 
   5/31/17   10.76    0.20    0.37    0.57    (0.23)   (0.07)   (0.30)   11.03    5.44    15,646    0.64    0.35    1.80    18 
Retail Class:  5/31/21   11.21    0.16    0.99    1.15    (0.23)   (0.17)   (0.40)   11.96    10.21    58,046    0.57    0.38    1.40    27 
   5/31/20   11.01    0.23    0.33    0.56    (0.24)   (0.12)   (0.36)   11.21    5.23    50,890    0.63    0.38    2.09    27 
   5/31/19   11.07    0.25    0.05    0.30    (0.26)   (0.10)   (0.36)   11.01    2.98    48,233    0.63    0.38    2.27    29 
   5/31/18   11.03    0.21    0.13    0.34    (0.24)   (0.06)   (0.30)   11.07    2.97    50,449    0.63    0.37    1.91    19 
   5/31/17   10.76    0.19    0.38    0.57    (0.23)   (0.07)   (0.30)   11.03    5.43    48,011    0.66    0.38    1.77    18 

 

44 2021 Annual Report   ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds   ■  2021 Annual Report 45
 

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    
      Net asset   Net   and unrealized   Total gain   Less distributions from  Total   Net asset       Net assets           Net     
   For the
year
ended		  value,
beginning
of period		   investment
income
(loss		)a   gain (loss
on total
investments

)

 

j 

  (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands		)  Gross
expenses		e  Net
expenses		e  investment
income
(loss		)  Portfolio
turnover
rate		 
                                                                          
LIFESTYLE CONSERVATIVE FUND                                                         
Institutional Class:  5/31/21   $12.57   $0.22   $ 2.11   $2.33   $(0.32)  $(0.33)  $(0.65)  $14.25    18.77%  $ 53,420    0.17%   0.10%   1.63%   35%
   5/31/20   12.26    0.28    0.49    0.77    (0.23)   (0.23)   (0.46)   12.57    6.44    34,603    0.19    0.10    2.25    29 
   5/31/19   12.58    0.29    (0.10)   0.19    (0.33)   (0.18)   (0.51)   12.26    1.68    27,635    0.20    0.10    2.34    24 
   5/31/18   12.22    0.26    0.49    0.75    (0.32)   (0.07)   (0.39)   12.58    6.17    18,299    0.25    0.10    2.05    13 
   5/31/17   11.64    0.23    0.78    1.01    (0.28)   (0.15)   (0.43)   12.22    8.87    5,087    0.22    0.10    1.96    15 
Advisor Class:  5/31/21   12.57    0.21    2.10    2.31    (0.30)   (0.33)   (0.63)   14.25    18.57    7,122    0.26    0.20    1.54    35 
   5/31/20   12.26    0.30    0.46    0.76    (0.22)   (0.23)   (0.45)   12.57    6.33    6,559    0.29    0.20    2.45    29 
   5/31/19   12.58    0.26    (0.08)   0.18    (0.32)   (0.18)   (0.50)   12.26    1.62    379    0.27    0.18    2.16    24 
   5/31/18   12.23    0.25    0.48    0.73    (0.31)   (0.07)   (0.38)   12.58    6.07    172    0.22    0.12    2.00    13 
   5/31/17   11.64    0.23    0.78    1.01    (0.27)   (0.15)   (0.42)   12.23    8.94    107    0.24    0.12    1.97    15 
Premier Class:  5/31/21   12.58    0.20    2.11    2.31    (0.30)   (0.33)   (0.63)   14.26    18.49    774    0.32    0.25    1.48    35 
   5/31/20   12.27    0.26    0.49    0.75    (0.21)   (0.23)   (0.44)   12.58    6.27    665    0.35    0.25    2.05    29 
   5/31/19   12.59    0.27    (0.10)   0.17    (0.31)   (0.18)   (0.49)   12.27    1.62    699    0.35    0.25    2.17    24 
   5/31/18   12.23    0.24    0.49    0.73    (0.30)   (0.07)   (0.37)   12.59    5.93    269    0.38    0.25    1.91    13 
   5/31/17   11.63    0.22    0.77    0.99    (0.24)   (0.15)   (0.39)   12.23    8.77    256    0.39    0.25    1.84    15 
Retirement Class:  5/31/21   12.55    0.19    2.10    2.29    (0.28)   (0.33)   (0.61)   14.23    18.44    63,022    0.41    0.34    1.39    35 
   5/31/20   12.25    0.25    0.48    0.73    (0.20)   (0.23)   (0.43)   12.55    6.11    46,255    0.43    0.33    1.98    29 
   5/31/19   12.57    0.26    (0.10)   0.16    (0.30)   (0.18)   (0.48)   12.25    1.51    44,397    0.44    0.35    2.08    24 
   5/31/18   12.21    0.23    0.49    0.72    (0.29)   (0.07)   (0.36)   12.57    5.83    42,506    0.45    0.35    1.81    13 
   5/31/17   11.62    0.20    0.79    0.99    (0.25)   (0.15)   (0.40)   12.21    8.70    33,907    0.47    0.35    1.71    15 
Retail Class:  5/31/21   12.55    0.18    2.10    2.28    (0.28)   (0.33)   (0.61)   14.22    18.40    244,655    0.44    0.37    1.36    35 
   5/31/20   12.24    0.25    0.49    0.74    (0.20)   (0.23)   (0.43)   12.55    6.16    206,100    0.45    0.37    1.99    29 
   5/31/19   12.56    0.25    (0.10)   0.15    (0.29)   (0.18)   (0.47)   12.24    1.41    157,919    0.46    0.37    2.06    24 
   5/31/18   12.20    0.22    0.49    0.71    (0.28)   (0.07)   (0.35)   12.56    5.90    163,097    0.47    0.37    1.79    13 
   5/31/17   11.62    0.20    0.77    0.97    (0.24)   (0.15)   (0.39)   12.20    8.59    139,697    0.49    0.37    1.70    15 

 

46 2021 Annual Report   ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds   ■  2021 Annual Report 47
 
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    
      Net asset   Net   and unrealized   Total gain   Less distributions from  Total   Net asset       Net assets           Net     
   For the
year
ended		  value,
beginning
of period		   investment
income
(loss		)a   gain (loss
on total
investments

)

 

j 

  (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands		)  Gross
expenses		e  Net
expenses		e  investment
income
(loss		)  Portfolio
turnover
rate		 
LIFESTYLE MODERATE FUND                                                      
Institutional Class:  5/31/21  $13.84   $0.25   $ 3.47   $ 3.72   $(0.38)  $(0.50)  $(0.88)  $16.68    27.47%  $77,429    0.15%   0.09%   1.58%   47%
   5/31/20   13.55    0.29    0.67    0.96    (0.28)   (0.39)   (0.67)   13.84    7.23    52,090    0.16    0.10    2.10    31 
   5/31/19   14.18    0.29    (0.30)   (0.01)   (0.36)   (0.26)   (0.62)   13.55    0.14    39,367    0.17    0.10    2.16    23 
   5/31/18   13.44    0.26    0.94    1.20    (0.37)   (0.09)   (0.46)   14.18    9.04    24,246    0.18    0.10    1.88    10 
   5/31/17   12.48    0.27    1.21    1.48    (0.30)   (0.22)   (0.52)   13.44    12.19    10,416    0.19    0.10    2.10    19 
Advisor Class:  5/31/21   13.84    0.23    3.47    3.70    (0.37)   (0.50)   (0.87)   16.67    27.29    13,719    0.23    0.17    1.50    47 
   5/31/20   13.55    0.37    0.58    0.95    (0.27)   (0.39)   (0.66)   13.84    7.12    12,977    0.26    0.20    2.64    31 
   5/31/19   14.18    0.28    (0.29)   (0.01)   (0.36)   (0.26)   (0.62)   13.55    0.09    707    0.23    0.16    2.02    23 
   5/31/18   13.44    0.26    0.93    1.19    (0.36)   (0.09)   (0.45)   14.18    8.96    163    0.26    0.18    1.86    10 
   5/31/17   12.48    0.24    1.23    1.47    (0.29)   (0.22)   (0.51)   13.44    12.15    161    0.23    0.14    1.85    19 
Premier Class:  5/31/21   13.87    0.23    3.48    3.71    (0.36)   (0.50)   (0.86)   16.72    27.22    689    0.31    0.24    1.45    47 
   5/31/20   13.58    0.24    0.70    0.94    (0.26)   (0.39)   (0.65)   13.87    7.03    557    0.32    0.25    1.72    31 
   5/31/19   14.21    0.28    (0.30)   (0.02)   (0.35)   (0.26)   (0.61)   13.58    0.01    1,001    0.32    0.25    2.06    23 
   5/31/18   13.47    0.21    0.96    1.17    (0.34)   (0.09)   (0.43)   14.21    8.79    310    0.34    0.25    1.53    10 
   5/31/17   12.48    0.23    1.24    1.47    (0.26)   (0.22)   (0.48)   13.47    12.10    292    0.36    0.25    1.79    19 
Retirement Class:  5/31/21   13.82    0.21    3.47    3.68    (0.35)   (0.50)   (0.85)   16.65    27.12    121,361    0.40    0.34    1.35    47 
   5/31/20   13.53    0.25    0.68    0.93    (0.25)   (0.39)   (0.64)   13.82    6.95    93,587    0.41    0.35    1.81    31 
   5/31/19   14.17    0.26    (0.31)   (0.05)   (0.33)   (0.26)   (0.59)   13.53    (0.11)   92,295    0.42    0.35    1.87    23 
   5/31/18   13.43    0.23    0.94    1.17    (0.34)   (0.09)   (0.43)   14.17    8.70    93,842    0.43    0.35    1.68    10 
   5/31/17   12.46    0.22    1.23    1.45    (0.26)   (0.22)   (0.48)   13.43    12.00    74,577    0.44    0.35    1.69    19 
Retail Class:  5/31/21   13.82    0.20    3.46    3.66    (0.34)   (0.50)   (0.84)   16.64    27.02    410,533    0.42    0.36    1.32    47 
   5/31/20   13.52    0.27    0.67    0.94    (0.25)   (0.39)   (0.64)   13.82    7.01    330,823    0.43    0.37    1.95    31 
   5/31/19   14.16    0.25    (0.30)   (0.05)   (0.33)   (0.26)   (0.59)   13.52    (0.20)   215,314    0.43    0.37    1.85    23 
   5/31/18   13.42    0.23    0.93    1.16    (0.33)   (0.09)   (0.42)   14.16    8.76    213,691    0.44    0.37    1.67    10 
   5/31/17   12.46    0.21    1.23    1.44    (0.26)   (0.22)   (0.48)   13.42    11.90    174,595    0.47    0.37    1.64    19 

 

48 2021 Annual Report   ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds   ■  2021 Annual Report 49
 
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    
      Net asset   Net   and unrealized   Total gain    Less distributions from  Total   Net asset       Net assets           Net     
   For the
year
ended		  value,
beginning
of period		   investment
income
(loss		)a   gain (loss
on total
investments

)

 

j 

  (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands		)  Gross
expenses		e   Net
expenses		e   investment
income
(loss		)  Portfolio
turnover
rate		 
                                                            
LIFESTYLE GROWTH FUND                                                     
Institutional Class:  5/31/21   $14.87    $0.23    $ 4.99    $ 5.22    $(0.41)   $(0.70)   $(1.11)   $18.98    35.87%  $48,422    0.18%   0.09%   1.34%   54%
   5/31/20   14.66    0.28    0.78    1.06    (0.28)   (0.57)   (0.85)   14.87    7.18    33,985    0.21    0.10    1.87    35 
   5/31/19   15.75    0.26    (0.63)   (0.37)   (0.36)   (0.36)   (0.72)   14.66    (2.07)   33,809    0.23    0.10    1.76    29 
   5/31/18   14.53    0.25    1.49    1.74    (0.42)   (0.10)   (0.52)   15.75    12.02    18,485    0.24    0.10    1.59    18 
   5/31/17   13.09    0.19    1.76    1.95    (0.17)   (0.34)   (0.51)   14.53    15.24    4,899    0.29    0.10    1.36    22 
Advisor Class:  5/31/21   14.86    0.22    4.98    5.20    (0.40)   (0.70)   (1.10)   18.96    35.72    7,976    0.26    0.17    1.28    54 
   5/31/20   14.65    0.38    0.66    1.04    (0.26)   (0.57)   (0.83)   14.86    7.03    8,870    0.30    0.20    2.57    35 
   5/31/19   15.74    0.22    (0.60)   (0.38)   (0.35)   (0.36)   (0.71)   14.65    (2.13)   346    0.29    0.17    1.45    29 
   5/31/18   14.52    0.22    1.52    1.74    (0.42)   (0.10)   (0.52)   15.74    12.03    195    0.31    0.17    1.41    18 
   5/31/17   13.09    0.22    1.72    1.94    (0.17)   (0.34)   (0.51)   14.52    15.12    123    0.32    0.14    1.60    22 
Premier Class:  5/31/21   14.87    0.20    4.99    5.19    (0.39)   (0.70)   (1.09)   18.97    35.62    2,022    0.33    0.24    1.18    54 
   5/31/20   14.65    0.25    0.79    1.04    (0.25)   (0.57)   (0.82)   14.87    7.02    1,356    0.36    0.25    1.64    35 
   5/31/19   15.75    0.24    (0.64)   (0.40)   (0.34)   (0.36)   (0.70)   14.65    (2.24)   1,553    0.38    0.25    1.63    29 
   5/31/18   14.53    0.22    1.51    1.73    (0.41)   (0.10)   (0.51)   15.75    11.93    361    0.42    0.25    1.39    18 
   5/31/17   13.07    0.20    1.72    1.92    (0.12)   (0.34)   (0.46)   14.53    15.01    327    0.46    0.25    1.46    22 
Retirement Class:  5/31/21   14.81    0.18    4.98    5.16    (0.37)   (0.70)   (1.07)   18.90    35.51    59,232    0.43    0.34    1.07    54 
   5/31/20   14.60    0.23    0.78    1.01    (0.23)   (0.57)   (0.80)   14.81    6.87    42,326    0.45    0.35    1.55    35 
   5/31/19   15.69    0.23    (0.64)   (0.41)   (0.32)   (0.36)   (0.68)   14.60    (2.34)   40,228    0.47    0.35    1.52    29 
   5/31/18   14.48    0.19    1.52    1.71    (0.40)   (0.10)   (0.50)   15.69    11.83    45,329    0.49    0.35    1.26    18 
   5/31/17   13.06    0.18    1.72    1.90    (0.14)   (0.34)   (0.48)   14.48    14.86    30,614    0.54    0.35    1.33    22 
Retail Class:  5/31/21   14.79    0.18    4.97    5.15    (0.37)   (0.70)   (1.07)   18.87    35.45    212,617    0.46    0.37    1.05    54 
   5/31/20   14.58    0.27    0.74    1.01    (0.23)   (0.57)   (0.80)   14.79    6.85    162,347    0.48    0.38    1.79    35 
   5/31/19   15.67    0.22    (0.64)   (0.42)   (0.31)   (0.36)   (0.67)   14.58    (2.32)   85,422    0.50    0.38    1.44    29 
   5/31/18   14.46    0.19    1.51    1.70    (0.39)   (0.10)   (0.49)   15.67    11.73    89,044    0.52    0.38    1.25    18 
   5/31/17   13.04    0.18    1.71    1.89    (0.13)   (0.34)   (0.47)   14.46    14.83    70,977    0.58    0.39    1.30    22 

 

50 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 51
 
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    
      Net asset   Net   and unrealized   Total gain    Less distributions from  Total   Net asset       Net assets           Net     
   For the
year
ended		  value,
beginning
of period		   investment
income
(loss		)a   gain (loss
on total
investments

)

 

j 

  (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands		)  Gross
expenses		e   Net
expenses		e   investment
income
(loss		)  Portfolio
turnover
rate		 
                                                
LIFESTYLE AGGRESSIVE GROWTH FUND                                               
Institutional Class:  5/31/21   $15.55    $0.20    $ 6.64    $ 6.84    $(0.50)   $(0.57)   $(1.07)   $21.32    44.79%   $45,923    0.21%   0.08%   1.08%   56%
   5/31/20   15.40    0.25    0.87    1.12    (0.17)   (0.80)   (0.97)   15.55    7.14    26,474    0.25    0.10    1.56    33 
   5/31/19   16.95    0.23    (0.98)   (0.75)   (0.37)   (0.43)   (0.80)   15.40    (4.11)   25,052    0.28    0.10    1.42    24 
   5/31/18   15.28    0.18    2.12    2.30    (0.44)   (0.19)   (0.63)   16.95    15.14    15,252    0.30    0.10    1.09    38 
   5/31/17   13.47    0.16    2.21    2.37    (0.12)   (0.44)   (0.56)   15.28    18.09    4,376    0.40    0.10    1.13    20 
Advisor Class:  5/31/21   15.55    0.18    6.64    6.82    (0.48)   (0.57)   (1.05)   21.32    44.68    9,163    0.30    0.18    0.98    56 
   5/31/20   15.40    0.37    0.72    1.09    (0.14)   (0.80)   (0.94)   15.55    7.01    7,051    0.33    0.19    2.39    33 
   5/31/19   16.94    0.18    (0.93)   (0.75)   (0.36)   (0.43)   (0.79)   15.40    (4.10)   205    0.30    0.14    1.08    24 
   5/31/18   15.28    0.19    2.09    2.28    (0.43)   (0.19)   (0.62)   16.94    15.04    164    0.35    0.15    1.14    38 
   5/31/17   13.47    0.18    2.19    2.37    (0.12)   (0.44)   (0.56)   15.28    18.07    115    0.41    0.12    1.27    20 
Premier Class:  5/31/21   15.59    0.18    6.64    6.82    (0.47)   (0.57)   (1.04)   21.37    44.54    427    0.37    0.23    0.95    56 
   5/31/20   15.43    0.03    1.06    1.09    (0.13)   (0.80)   (0.93)   15.59    7.00    313    0.39    0.25    0.17    33 
   5/31/19   16.99    0.20    (0.99)   (0.79)   (0.34)   (0.43)   (0.77)   15.43    (4.31)   363    0.43    0.25    1.22    24 
   5/31/18   15.32    0.17    2.10    2.27    (0.41)   (0.19)   (0.60)   16.99    14.93    390    0.46    0.25    1.01    38 
   5/31/17   13.47    0.15    2.21    2.36    (0.07)   (0.44)   (0.51)   15.32    17.95    375    0.56    0.25    1.08    20 
Retirement Class:  5/31/21   15.49    0.15    6.62    6.77    (0.46)   (0.57)   (1.03)   21.23    44.47    65,640    0.45    0.33    0.82    56 
   5/31/20   15.35    0.20    0.87    1.07    (0.13)   (0.80)   (0.93)   15.49    6.85    42,644    0.49    0.35    1.29    33 
   5/31/19   16.89    0.18    (0.96)   (0.78)   (0.33)   (0.43)   (0.76)   15.35    (4.33)   42,107    0.52    0.35    1.09    24 
   5/31/18   15.24    0.15    2.09    2.24    (0.40)   (0.19)   (0.59)   16.89    14.82    46,425    0.55    0.35    0.90    38 
   5/31/17   13.44    0.13    2.20    2.33    (0.09)   (0.44)   (0.53)   15.24    17.79    27,905    0.65    0.35    0.95    20 
Retail Class:  5/31/21   15.46    0.14    6.61    6.75    (0.45)   (0.57)   (1.02)   21.19    44.41    117,922    0.50    0.38    0.78    56 
   5/31/20   15.33    0.24    0.82    1.06    (0.13)   (0.80)   (0.93)   15.46    6.80    83,795    0.54    0.40    1.56    33 
   5/31/19   16.88    0.17    (0.97)   (0.80)   (0.32)   (0.43)   (0.75)   15.33    (4.45)   48,507    0.57    0.40    1.04    24 
   5/31/18   15.22    0.14    2.10    2.24    (0.39)   (0.19)   (0.58)   16.88    14.84    52,360    0.60    0.41    0.85    38 
   5/31/17   13.43    0.13    2.18    2.31    (0.08)   (0.44)   (0.52)   15.22    17.64    35,262    0.72    0.42    0.91    20 

 

a Based on average shares outstanding.
e The Fund’s expenses do not include the expenses of the Underlying Funds.
j Short-term and long-term capital gain distributions received from the Underlying Funds are presented in net realized and unrealized gain (loss) on total investments for all periods presented.

 

52 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds See notes to financial statements See notes to financial statements TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 53
 

Notes to financial statements

 

TIAA-CREF Lifestyle Funds

 

Note 1—organization

 

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 U.S. Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company.

 

Teachers Advisors, LLC (“Advisors”), a wholly owned indirect subsidiary of Teachers Insurance and Annuity Association of America (“TIAA”), is registered with the SEC as an investment adviser and provides investment management services for the Funds.

 

The Funds offer their shares, without a sales load, through their principal underwriter, Nuveen Securities, LLC (“Nuveen Securities”), which is a wholly owned indirect subsidiary of TIAA.

 

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 Institutional Class, Advisor Class, Premier Class, Retirement Class and Retail Class shares. Each class differs by the allocation of class-specific expenses and voting rights in matters affecting a single class.

 

Note 2—significant accounting policies

 

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.

 

Investments and investment income: Securities transactions are accounted for as of the trade date for financial reporting purposes. Interest income is recorded on an accrual basis and includes accretion of discounts and amortization of premiums. Dividend income is recorded on the ex-dividend date. Realized gains and losses on securities transactions are based upon the specific identification method. Distributions received on securities that represent a return of capital or capital gains are recorded as a reduction of cost of investments and/or as a realized gain. The Funds estimate the components of distributions received that may be considered return of capital distributions or capital gain distributions.

 

54 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Multiclass operations and allocations: 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 are recorded on the ex-dividend date. The amount, character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

 

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 separately 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.

 

Indemnification: Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

Fund reorganizations: During the prior fiscal period, the Funds’ Board approved the following Fund reorganizations (each the “Reorganization” and collectively, the “Reorganizations”).

 

The following Reorganizations were effective at the close of business on October 18, 2019:

 

Target Fund   Acquiring Fund
Nuveen Strategy Conservative Allocation Fund TIAA-CREF Lifestyle Conservative Fund
Nuveen Strategy Balanced Allocation Fund TIAA-CREF Lifestyle Moderate Fund
Nuveen Strategy Growth Allocation Fund TIAA-CREF Lifestyle Growth Fund
Nuveen Strategy Aggressive Growth Allocation Fund TIAA-CREF Lifestyle Aggressive Growth Fund

 

Upon the closing of a Reorganization, the Target Funds transferred all of their assets and liabilities to the Acquiring Funds in exchange for Acquiring Fund shares of equal value. Shares of the Acquiring Funds were then distributed to shareholders of the Target Funds and the Target Funds were terminated. As a result of a Reorganization,

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 55
 

Notes to financial statements

 

shareholders of the Target Funds became shareholders of the Acquiring Funds. The shareholders of the Target Funds received Acquiring Fund shares with a total value equal to the total value of their Target Fund shares immediately prior to the closing of the Reorganization. For accounting and performance reporting purposes, each Acquiring Fund is the survivor.

 

Other matters: The outbreak of the novel coronavirus (“COVID-19”) and subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the calendar quarter ended March 31, 2020. The worldwide spread of COVID-19 has created significant uncertainty in the global economy. The duration and extent of COVID-19 over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Funds’ normal course of business, results of operations, investments, and cash flows will depend on future developments, which are highly uncertain and difficult to predict. Management continues to monitor and evaluate this situation.

 

New rule issuance: In December 2020, the SEC voted to adopt a new rule governing fund valuation practices. New Rule 2a-5 under the 1940 Act establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of Section 2(a)(41) of the 1940 Act, which requires a fund to fair value a security when market quotations are not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth the recordkeeping requirements associated with fair value determinations. Finally, the SEC is rescinding previously issued guidance on related issues, including the role of a board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, with a compliance date of September 8, 2022. A fund may voluntarily comply with the rules after the effective date, and in advance of the compliance date, under certain conditions. Management is currently assessing the impact of these provisions on the Funds’ financial statements.

 

Note 3—valuation of investments

 

The Funds’ investments in securities are recorded at their estimated fair value utilizing valuation methods approved by the Board. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. U.S. GAAP establishes the three-tier hierarchy which is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect management’s assumptions about the assumptions market participants

 

56 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

continued

 

would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.

 

• Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
• Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.).
• Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

 

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

 

Investments in registered investment companies: Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.

 

As of May 31, 2021, all of the investments in the Funds were valued based on Level 1 inputs.

 

Note 4—investments

 

Purchases and sales: Purchases and sales of securities (other than short-term instruments) for all of the Funds for the year ended May 31, 2021 were as follows:

 

Fund  Non-U.S.
 government
purchases		   Non-U.S. government sales 
Lifestyle Income  $  39,075   $  24,109 
Lifestyle Conservative   147,756    115,098 
Lifestyle Moderate   289,211    260,306 
Lifestyle Growth   165,455    153,201 
Lifestyle Aggressive Growth   129,310    109,078 

 

Note 5—income tax and other tax matters

 

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.

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 57
 

Notes to financial statements

 

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. GAAP. Reclassifications are made to a Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.

 

For the year ended May 31, 2021, permanent book and tax differences resulting primarily from the reclassification of short-term capital gain distributions received from underlying funds from realized gain (loss) to ordinary income and the utilization of equalization credits, were identified and reclassified among the components of the Funds’ net assets. Net investment income and net realized gains (losses), as disclosed on the Statements of Operations, and net assets were not affected by these reclassifications.

 

Net unrealized appreciation (depreciation): At May 31, 2021, net unrealized appreciation (depreciation) based on the aggregate cost of all investments for federal income tax purposes, consisting of gross unrealized appreciation and gross unrealized depreciation, was as follows (dollar amounts are in thousands):

 

Fund  Tax
cost		   Gross
unrealized
appreciation		   Gross
unrealized
(depreciation		)  Net unrealized
 appreciation
(depreciation		)
Lifestyle Income   $  93,892    $    7,092    $(1,013)  $  6,079 
Lifestyle Conservative   328,176    44,664    (4,263)   40,401 
Lifestyle Moderate   525,196    105,601    (7,580)   98,021 
Lifestyle Growth   266,620    68,147    (4,767)   63,380 
Lifestyle Aggressive Growth   185,755    56,795    (3,559)   53,236 

 

For purposes of this disclosure, tax cost generally includes the cost of portfolio investments as well as up-front fees or premiums exchanged on derivatives and any amounts unrealized for income statement reporting but realized in income and/or capital gains for tax reporting.

 

Distributions to shareholders: The tax character of distributions paid to shareholders during the years ended May 31, 2021 and May 31, 2020 was as follows:

 

   5/31/2021   5/31/2020 
   Ordinary
income		   Long-term
capital gains		   Total   Ordinary
income		   Long-term
capital gains		   Total 
Lifestyle Income   $  1,752,910    $ 1,296,958   $  3,049,868   $1,695,266    $    864,379    $ 2,559,645 
Lifestyle Conservative   6,911,296    7,861,440    14,772,736    4,471,869    4,474,638    8,946,507 
Lifestyle Moderate   12,508,904    17,788,980    30,297,884    8,440,472    10,166,232    18,606,704 
Lifestyle Growth   6,110,621    11,324,213    17,434,834    3,823,626    6,255,752    10,079,378 
Lifestyle Aggressive Growth   4,718,204    5,814,854    10,533,058    1,444,218    5,949,108    7,393,326 

 

58 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

continued

 

Components of accumulated earnings: As of May 31, 2021, the components of accumulated earnings on a tax basis were as follows:

 

Fund  Undistributed
ordinary
income		   Undistributed
long-term
capital gains		   Unrealized
appreciation
(depreciation		)  Total 
Lifestyle Income   $   198,918   $  2,140,458    $  6,079,124    $   8,418,500 
Lifestyle Conservative   1,714,082    12,669,339    40,401,212    54,784,633 
Lifestyle Moderate   836,797    29,348,783    98,021,109    128,206,689 
Lifestyle Growth   495,422    16,919,541    63,380,495    80,795,458 
Lifestyle Aggressive Growth   105,619    14,304,827    53,236,195    67,646,641 

 

The difference between book basis and tax basis net investment income, net realized gains and losses, and unrealized appreciation and depreciation is attributable primarily to the tax deferral of losses on wash sales.

 

Note 6—investment adviser and other transactions with 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 Retail Class of each Fund compensates Nuveen Securities 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. The Premier Class of each Fund is subject to a distribution Rule 12b-1 plan that compensates Nuveen Securities for providing distribution, promotional and/or shareholder services to the Premier Class of the Fund at the annual rate of 0.15% of the 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 or other transactional expenses, acquired fund fees and expenses and extraordinary expenses) exceeds certain percentages. As of May 1, 2021, the maximum expense amounts (after waivers and reimbursements) are equal to the following noted annual percentage of average daily net assets for each class:

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 59
 

Notes to financial statements

 

   Investment   Maximum expense amounts‡
Fund  management
fee		   Institutional
Class		   Advisor
Class		   Premier
Class		   Retirement
Class		   Retail
Class		 
Lifestyle Income   0.100%a   0.100%a   0.250%a   0.250%a   0.350%a    0.490%a
Lifestyle Conservative   0.100a   0.100a   0.250a   0.250a   0.350a   0.490a
Lifestyle Moderate   0.100b   0.100b   0.250b   0.250b   0.350b   0.490b
Lifestyle Growth   0.100b   0.100b   0.250b   0.250b   0.350b   0.490b
Lifestyle Aggressive Growth   0.100c   0.070c,d   0.250c   0.250c   0.350c   0.490c

 

‡ Maximum expense amounts reflect all expenses excluding interest, taxes, brokerage commissions or other transactional expenses, Acquired fund fees and expenses and extraordinary expenses. The expense reimbursement arrangements will continue through at least September 30, 2021. The reimbursement arrangements can only be changed with the approval of the Board of Trustees.
a Prior to May 1, 2021, Advisors agreed to voluntarily waive a portion of the investment management fee for the Lifestyle Income Fund and the Lifestyle Conservative Fund. The investment management fee after the waiver was 0.094% of daily average net assets. This waiver was voluntary in nature and has been discontinued. Prior to May 1, 2021, the expense caps were 0.094% for Institutional Class, 0.244% for the Advisor Class, 0.244% for Premier Class, and 0.484% for the Retail Class. Prior to May 1, 2021 the Retirement Class expense caps for the Lifestyle Income Fund and the Lifestyle Conservative Fund were 0.344% and 0.335%, respectively.
b Prior to May 1, 2021, Advisors agreed to voluntarily waive a portion of the investment management fee for the Lifestyle Moderate Fund and the Lifestyle Growth Fund. The investment management fee after the waiver was 0.084% of daily average net assets. This waiver was voluntary in nature and has been discontinued. Prior to May 1, 2021, the expense caps were 0.084% for Institutional Class, 0.234% for the Advisor Class, 0.234% for Premier Class, 0.334% for the Retirement Class, and 0.474% for the Retail Class.
c Prior to May 1, 2021, Advisors agreed to voluntarily waive a portion of the investment management fee for the Lifestyle Aggressive Growth Fund. The investment management fee after the waiver was 0.074% of daily average net assets. This waiver was voluntary in nature and has been discontinued. Prior to May 1, 2021, the expense caps were 0.074% for Institutional Class, 0.224% for the Advisor Class, 0.224% for Premier Class, 0.324% for the Retirement Class, and 0.464% for the Retail Class.
d Effective May 1, 2021, Advisors agreed to voluntarily waive a portion of the Institutional Class expenses for the Lifestyle Aggressive Growth Fund. This waiver is voluntary in nature and can be discontinued at any time without prior notice to shareholders upon Board approval. Prior to May 1, 2021, the expense cap was 0.074% for Institutional Class.

 

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 year ended May 31, 2021, the Funds did not engage in security transactions with affiliated entities.

 

60 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

continued

 

Investments in other investment companies advised by Advisors and Nuveen Fund Advisors LLC are deemed to be affiliated investments. The Funds invest their assets in Institutional Class shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds. Information regarding transactions with affiliated companies is as follows (dollar amounts are in thousands):

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales proceeds   Realized
gain (loss		)  Change in unrealized appreciation (depreciation)  Dividend income   Value at 5/31/21 
Lifestyle Income Fund                          
Nuveen Funds:                                   
Dividend Value   $458        $1,732       $550        $(18)        $596       $24       $2,218 
International Growth   —    1,417    268    —^   157    —    1,306 
Santa Barbara Dividend Growth   —    2,228    528    63    266    14    1,974 
TIAA-CREF Funds:                          
Core Bond   15,778    6,411    1,942    288    (231)   382    19,971 
Core Plus Bond   15,778    5,815    1,759    115    159    446    19,971 
Emerging Markets Equity   904    271    692    204    178    6    803 
Growth & Income   2,585    510    1,806    510    302    25    1,977 
International Equity   1,321    710    820    128    479    20    1,818 
International Opportunities   965    620    653    206    189    6    1,302 
Large-Cap Growth   3,262    1,084    2,559    1,438    (454)   9    2,142 
Large-Cap Growth Index   —    2,297    413    27    248    13    2,137 
Large-Cap Value   2,427    879    1,958    214    654    41    2,216 
Quant International Equity   1,035    51    1,177    (1)   92    21    — 
Quant International Small-Cap Equity   632    244    283    (2)   271    16    862 
Quant Large-Cap Growth   1,439    20    1,611    478    (234)   6    — 
Quant Large-Cap Value   457    97    578    (28)   75    8    — 
Quant Small-Cap Equity   277    367    299    38    243    4    626 
Quant Small/Mid-Cap Equity   435    275    297    62    249    5    717 
Short-Term Bond   31,496    12,393    4,263    23    306    559    39,931 
   $79,249   $37,421   $22,456   $3,745   $3,545   $1,605   $99,971 

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 61
 

Notes to financial statements

 

Issue  Value at
5/31/20		   Purchases
cost		   Sales
proceeds		   Realized
gain (loss		)   Change in unrealized appreciation (depreciation)   Dividend income   Value at 5/31/21 
Lifestyle Conservative Fund                          
Nuveen Funds:                                   
Dividend Value      $3,377       $11,581       $2,828       $(103)        $4,331       $179     $16,358 
International Growth   —    9,677    1,166    3    1,143    —    9,657 
Santa Barbara Dividend Growth   —    14,968    2,391    415    1,982    105    14,587 
TIAA-CREF Funds:                                   
Core Bond   29,124    11,265    3,122    531    (435)   699    36,762 
Core Plus Bond   87,431    30,730    8,607    609    869    2,451    110,287 
Emerging Markets Equity   6,576    1,501    4,500    1,245    1,514    41    5,884 
Growth & Income   19,090    2,031    11,637    2,932    3,013    184    14,536 
International Equity   9,455    4,021    4,492    631    3,737    149    13,352 
International Opportunities   7,518    2,893    3,578    964    2,039    45    9,655 
Large-Cap Growth   23,986    6,352    17,223    9,423    (2,228)   62    15,777 
Large-Cap Growth Index   —    15,845    1,932    189    1,808    95    15,748 
Large-Cap Value   17,925    4,986    12,955    603    5,729    299    16,288 
Quant International Equity   7,618    153    8,442    105    566    149    — 
Quant International Small-Cap Equity   4,666    964    1,285    (22)   1,992    114    6,315 
Quant Large-Cap Growth   10,104    2    11,183    3,243    (1,526)   44    — 
Quant Large-Cap Value   3,382    619    4,188    (206)   549    54    — 
Quant Small-Cap Equity   2,544    1,729    1,773    265    1,841    27    4,606 
Quant Small/Mid-Cap Equity   3,216    1,501    1,661    282    1,992    33    5,278 
Short-Term Bond   58,136    21,938    7,148    39    565    1,027    73,487 
   $294,148    $142,756   $110,111   $21,148   $29,481   $5,757   $368,577 

 

62 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

continued

 

Issue  Value at 5/31/20   Purchases cost   Sales proceeds   Realized
gain (loss		)  Change in unrealized appreciation (depreciation)   Dividend income   Value at 5/31/21 
Lifestyle Moderate Fund                                   
Nuveen Funds:                                   
Dividend Value      $8,410       $28,344       $6,034       $(128)        $10,785       $451       $41,377 
International Growth   —    23,881    2,376    15    2,859    —    24,379 
Santa Barbara Dividend Growth   —    37,644    5,980    1,100    4,945    268    36,728 
TIAA-CREF Funds:                                   
Core Plus Bond   193,091    83,902    30,257    1,346    1,860    5,496    248,274 
Emerging Markets Equity   16,270    3,722    10,785    2,856    4,006    103    14,934 
Growth & Income   47,494    4,805    28,044    6,406    8,510    465    36,924 
International Equity   23,354    8,678    8,937    1,117    9,782    375    33,994 
International Opportunities   18,995    5,960    7,799    2,256    5,385    113    24,339 
Large-Cap Growth   59,606    15,498    41,730    22,308    (4,254)   157    40,021 
Large-Cap Growth Index   —    39,624    4,371    488    4,544    239    39,877 
Large-Cap Value   44,509    11,896    30,976    693    15,245    752    41,367 
Quant International Equity   18,924    285    20,886    316    1,361    370    — 
Quant International Small-Cap Equity   11,587    2,266    2,825    (108)   5,064    288    15,984 
Quant Large-Cap Growth   24,196    24    26,849    8,497    (4,277)   111    — 
Quant Large-Cap Value   8,402    1,610    10,495    (527)   1,392    132    — 
Quant Small-Cap Equity   7,056    3,185    3,934    711    4,638    68    11,656 
Quant Small/Mid-Cap Equity   7,957    3,403    3,584    681    5,036    84    13,363 
   $489,851   $274,727   $245,862   $48,027   $76,881   $9,472   $623,217 

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 63
 

Notes to financial statements

 

Issue  Value at 5/31/20   Purchases cost   Sales
 proceeds		   Realized
gain (loss		)  Change in unrealized appreciation (depreciation)  Dividend income   Value at 5/31/21 
Lifestyle Growth Fund                          
Nuveen Funds:                                   
Dividend Value      $5,648       $19,326       $3,062       $(69)      $7,332       $307      $29,175 
International Growth   —    16,310    1,038    (4)   1,939    —    17,207 
Santa Barbara Dividend Growth   —    26,121    3,690    725    3,406    182    25,886 
TIAA-CREF Funds:                                   
Core Plus Bond   48,728    26,137    9,582    363    413    1,395    65,636 
Emerging Markets Equity   10,903    3,006    7,185    1,832    2,756    70    10,546 
Growth & Income   31,905    3,032    17,409    3,623    6,382    313    26,016 
International Equity   15,626    5,989    4,961    463    6,869    253    23,986 
International Opportunities   12,822    3,688    4,174    1,085    4,061    77    17,172 
Large-Cap Growth   40,044    9,718    25,943    14,189    (2,112)   106    28,192 
Large-Cap Growth Index   —    27,445    2,445    287    3,131    162    28,143 
Large-Cap Value   29,945    7,862    19,388    156    10,592    508    29,167 
Quant International Equity   12,722    287    14,121    157    955    248    — 
Quant International Small-Cap Equity   7,781    1,666    1,565    (97)   3,445    195    11,230 
Quant Large-Cap Growth   15,916    —    17,623    5,622    (2,847)   74    — 
Quant Large-Cap Value   5,641    1,029    6,985    (369)   939    88    — 
Quant Small-Cap Equity   5,106    1,736    2,253    229    3,395    46    8,213 
Quant Small/Mid-Cap Equity   5,355    2,207    1,906    343    3,522    57    9,432 
   $248,142   $155,559   $143,330   $28,535   $54,178   $4,081   $330,001 
Lifestyle Aggressive Growth Fund                          
Nuveen Funds:                                   
Dividend Value  $4,512   $17,373   $1,703   $(21)  $6,219   $263   $26,380 
International Growth   —    15,212    1,399    (2)   1,708    —    15,519 
Santa Barbara Dividend Growth   —    22,932    2,428    595    2,930    158    23,459 
TIAA-CREF Funds:                                   
Emerging Markets Equity   8,745    3,002    5,396    1,463    2,384    59    9,548 
Growth & Income   25,617    3,777    12,956    2,659    5,718    262    23,527 
International Equity   12,476    7,565    4,686    250    6,042    215    21,647 
International Opportunities   10,368    5,351    4,349    1,063    3,342    65    15,511 
Large-Cap Growth   32,212    9,637    19,839    11,018    (1,009)   90    25,482 
Large-Cap Growth Index   —    23,506    764    234    2,684    137    25,426 
Large-Cap Value   24,073    7,793    14,632    (310)   9,409    431    26,333 
Quant International Equity   10,253    546    11,721    128    794    210    — 
Quant International Small-Cap Equity   6,284    2,728    1,677    (199)   3,061    165    10,197 
Quant Large-Cap Growth   12,667    78    14,098    4,682    (2,427)   63    — 
Quant Large-Cap Value   4,526    913    5,707    (142)   624    74    — 
Quant Small-Cap Equity   4,236    1,691    1,570    108    2,957    39    7,422 
Quant Small/Mid-Cap Equity   4,313    1,908    869    165    3,098    48    8,540 
   $160,282   $124,012   $103,794   $21,691          $47,534   $2,279   $238,991 

 

^ Some amounts represent less than $1,000.

 

64 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

concluded

 

Note 7—inter-fund lending program

 

Pursuant to an exemptive order issued by the SEC, the Funds may participate in an inter-fund lending program. This program allows the Funds to lend cash to and/or borrow cash from certain other affiliated Funds for temporary purposes, (e.g., to satisfy redemption requests or to cover unanticipated cash shortfalls). The program is subject to a number of conditions, including the requirement that no Fund may borrow or lend money under the program unless it receives a more favorable interest rate than is available from a bank or other financial institution for a comparable transaction. In addition, a Fund may participate in the program only if its participation is consistent with the Fund’s investment policies and limitations and authorized by its portfolio manager(s). During the year ended May 31, 2021, there were no inter-fund borrowing or lending transactions.

 

Note 8—line of credit

 

The Funds participate in a $1 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 July 15, 2021 expiring on June 14, 2022, replacing the previous facility, which expired June 2021. Certain affiliated accounts and mutual funds, each of which is managed by Advisors, or an affiliate of Advisors, also participate in this facility. An annual commitment fee for the credit facility is borne by the participating accounts and mutual funds on a pro rata basis. Interest associated with any borrowing under the facility is charged to the borrowing accounts or mutual funds at a specified rate of interest. The Funds are not liable for borrowings under the facility by other affiliated accounts or mutual funds. For the year ended May 31, 2021, there were no borrowings under this credit facility by the Funds.

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 65
 

Report of independent registered public accounting firm

 

To the Board of Trustees of TIAA-CREF Funds and Shareholders of TIAA-CREF Lifestyle Income Fund, TIAA-CREF Lifestyle Conservative Fund, TIAA-CREF Lifestyle Moderate Fund, TIAA-CREF Lifestyle Growth Fund, and TIAA-CREF Lifestyle Aggressive Growth Fund

 

Opinions on the Financial Statements

 

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of TIAA-CREF Lifestyle Income Fund, TIAA-CREF Lifestyle Conservative Fund, TIAA-CREF Lifestyle Moderate Fund, TIAA-CREF Lifestyle Growth Fund, and TIAA-CREF Lifestyle Aggressive Growth Fund (five of the funds constituting TIAA-CREF Funds hereafter collectively referred to as the “Funds”) as of May 31, 2021, the related statements of operations for the year ended May 31, 2021, the statements of changes in net assets for each of the two years in the period ended May 31, 2021, including the related notes, and the financial highlights for each of the five years in the period ended May 31, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of May 31, 2021, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended May 31, 2021, and each of the financial highlights for each of the five years in the period ended March 31, 2021 in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinions

 

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the

 

66 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

overall presentation of the financial statements. Our procedures included confirmation of securities owned as of May 31, 2021 by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinions.

 

/s/ PricewaterhouseCoopers LLP

Baltimore, Maryland

July 16, 2021

 

We have served as the auditor of one or more investment companies in TIAA-CREF Funds’ investment company group since 2005.

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report  67
 

Important tax information (unaudited)

 

For the year ended May 31, 2021, the Lifestyle Funds designate the following distribution amounts (or the maximum amount allowable) as being from net long-term capital gains.

 

Fund  Long-term
capital gains
Lifestyle Income  $1,489,444
Lifestyle Conservative   8,991,562
Lifestyle Moderate   20,425,500
Lifestyle Growth   12,893,871
Lifestyle Aggressive Growth   6,840,224

 

For the year ended May 31, 2021, the Lifestyle Funds designate the following percentages (or the maximum amount allowable) of ordinary income dividends paid as qualified dividends.

 

Fund  Percentage 
Lifestyle Income   11.8%
Lifestyle Conservative   22.0 
Lifestyle Moderate   31.4 
Lifestyle Growth   43.5 
Lifestyle Aggressive Growth   47.5 

 

For the year ended May 31, 2021, the Lifestyle Funds designate the following percentages (or the maximum amount allowable) of ordinary income dividends paid as qualifying for the corporate dividends received deduction.

 

Fund  Percentage 
Lifestyle Income   8.4%
Lifestyle Conservative   15.7 
Lifestyle Moderate   22.3 
Lifestyle Growth   30.9 
Lifestyle Aggressive Growth   33.7 

 

For the year ended May 31, 2021, the Lifestyle Funds received the following amounts of income from their respective underlying funds that was from foreign sources:

 

Fund  Foreign
source income		   Foreign source
income per share
Lifestyle Income   $     77,473   $0.00925
Lifestyle Conservative   555,269    0.02141
Lifestyle Moderate   1,394,610    0.03723
Lifestyle Growth   941,160    0.05383
Lifestyle Aggressive Growth   797,980    0.07086

 

68 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

For the year ended May 31, 2021, the Lifestyle Funds have elected to pass through the following amounts of foreign taxes paid by their respective underlying funds:

 

Fund  Foreign
taxes paid		   Foreign taxes
paid per share
Lifestyle Income    $8,899   $0.00106
Lifestyle Conservative   63,924    0.00246
Lifestyle Moderate   160,690    0.00429
Lifestyle Growth   108,489    0.00621
Lifestyle Aggressive Growth   92,013    0.00817

 

The information and distributions reported herein may differ from the information and distributions reported to shareholders for the calendar year ending December 31, 2021, which will be reported in conjunction with your 2021 Form 1099-DIV.

 

By early 2022, shareholders should receive their Form 1099-DIV and a tax information letter from the Funds. For your specific situation, we recommend that you consult a professional tax advisor.

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report  69
 

Trustees and officers (unaudited)

 

TIAA-CREF Funds  ■  May 31, 2021

 

Trustees

 

Name, Address and
Year of Birth (“YOB”)		   Position(s)
Held with
Fund		   Term of
Office and
Length
of Time
Served		   Principal Occupation(s) During Past 5 Years
and other relevant experience and qualifications		   Number of
Portfolios in
Fund Complex
Overseen
by Trustee		   Other Directorship(s)
Held by Trustee
Forrest Berkley
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1954		   Trustee   Indefinite term.
Trustee since 2006.		   Retired Partner (since 2006), Partner (1990–2005) and Head of Global Product Management (2003–2005), GMO (formerly, Grantham, Mayo, Van Otterloo & Co.) (investment management); and member of asset allocation portfolio management team, GMO (2003–2005).   88   Director, Save the Children Federation, Inc.; Investment Committee Member, Maine Community Foundation.
Joseph A. Boateng
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1963		   Trustee   Indefinite term.
Trustee since 2019.		   Chief Investment Officer, Casey Family Programs (since 2007). Director of U.S. Pension Plans at Johnson & Johnson (2002–2006). Manager, Financial Services Consultant, KPMG Consulting (2000–2002).   88   Board Member, Lumina Foundation and Waterside School; Investment Advisory Committee Chair, Seattle City Employees’ Retirement System; Investment Committee Member, The Seattle Foundation.
Janice C. Eberly
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		   Trustee   Indefinite term.
Trustee since 2018.		   James R. and Helen D. Russell Professor of Finance at the Kellogg School of Management, Northwestern University (2002–2011 and since 2013), Senior Associate Dean for Strategy and Academics (since 2020) and Chair of the Finance Department (2005–2007). Vice President, American Economic Association (2020). Assistant Secretary for Economic Policy, United States Department of the Treasury (2011–2013).   88   Member of the Board of the Office of Finance, Federal Home Loan Banks; Director, Avant, LLC.

 

70 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 
Nancy A. Eckl
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		   Trustee   Indefinite term.
Trustee since 2007.		   Vice President (1990–2006), American Beacon Advisors, Inc., and of certain funds advised by American Beacon Advisors, Inc.   88   Independent Director, The Lazard Funds, Inc., Lazard Retirement Series, Inc., and Lazard Global Total Return and Income Fund, Inc.
Michael A. Forrester
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1967		   Trustee   Indefinite term.
Trustee since 2007.		   Chief Executive Officer (2014–2021) and Chief Operating Officer (2007–2014), Copper Rock Capital Partners, LLC. Chief Operating Officer, DDJ Capital Management (2003–2006).   88   Trustee, Dexter Southfield School; Member, Governing Council of the Independent Directors Council.
Howell E. Jackson
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1954		   Trustee   Indefinite term.
Trustee since 2005.		   James S. Reid, Jr. Professor of Law (since 2004), Senior Advisor to President and Provost (2010–2012), Acting Dean (2009), Vice Dean for Budget (2003–2006) and on the faculty (since 1989) of Harvard Law School.   88   Director, Commonwealth (non-profit organization).
Thomas J. Kenny
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1963		   Chairman of the Board and Trustee   Indefinite term. Trustee since 2011; Chairman for term ending June 30, 2023. Chairman since September 13, 2017.   Advisory Director (2010–2011), Partner (2004–2010), Managing Director (1999–2004) and Co-Head of Global Cash and Fixed Income Portfolio Management Team (2002–2010), Goldman Sachs Asset Management.   88   Director and Chair of the Finance and Investment Committee, Aflac Incorporated; Director and Investment Committee Member, Sansum Clinic; Director, ParentSquare; Member, University of California at Santa Barbara Arts and Lectures Advisory Council.
James M. Poterba
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1958		   Trustee   Indefinite term.
Trustee since 2006.		   President and Chief Executive Officer (since 2008) and Program Director (1990-2008), National Bureau of Economic Research. Mitsui Professor of Economics, Massachusetts Institute of Technology (“MIT”) (since 1996); Affiliated Faculty Member of the Finance Group, Alfred P. Sloan School of Management (since 2014); Head (2006–2008) and Associate Head (1994–2000 and 2001–2006), Economics Department of MIT.   88   Director, National Bureau of Economic Research; Trustee, Alfred P. Sloan Foundation; Member, Congressional Budget Office Panel of Economic Advisers.

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report  71
 
Trustees and officers (unaudited) continued

 

TIAA-CREF Funds  ■  May 31, 2021

 

Trustees – concluded  

 

Name, Address and
Year of Birth (“YOB”)		   Position(s)
Held with
Fund		   Term of
Office and
Length
of Time
Served		   Principal Occupation(s) During Past 5 Years
and other relevant experience and qualifications		   Number of
Portfolios in
Fund Complex
Overseen
by Trustee		   Other Directorship(s)
Held by Trustee
Maceo K. Sloan
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1949		   Trustee   Indefinite term.
Trustee since 1999.		   Chairman, President and Chief Executive Officer, Sloan Financial Group, Inc. (1991–2018); Chairman and Chief Executive Officer (1991–2016), Chief Investment Officer (1991–2013) and Chief Compliance Officer (2015–2016), NCM Capital Management Group, Inc.; Chairman, Chief Executive Officer (2003–2016), Chief Investment Officer (2003–2013) and Chief Compliance Officer (2015–2016), NCM Capital Advisers, Inc.; and Chairman, President and Principal Executive Officer, NCM Capital Investment Trust (2007–2012).   88   Director, TheraTrue Inc.
Laura T. Starks
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1950		   Trustee   Indefinite term.
Trustee since 2006.		   Charles E. and Sarah M. Seay Regents Chair in Finance (since 2002), Co-Executive Director, Social Innovation Initiative (since 2015), Director, AIM Investment Center (2000–2016), Associate Dean for Research (2011–2016), Chairman, Department of Finance (2002–2011) and Professor (since 1987), McCombs School of Business, University of Texas at Austin. President (2019–2020), Vice President (2013–2018), Society of Financial Studies. President (since 2020), Vice President (2019–2020) American Finance Association.   88   Texa$aver Product Committee Member, Employees Retirement System of Texas.

 

72 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Officers

 

Name, Address and
Year of Birth (“YOB”)		   Position(s)
Held with
Fund		   Term of
Office and
Length
of Time
Served		   Principal Occupation(s) During Past 5 Years
Richard S. Biegen
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		   Chief Compliance Officer   One-year term.
Chief Compliance
Officer since 2008.		   Senior Managing Director, TIAA. Chief Compliance Officer of the College Retirement Equities Fund (“CREF”), TIAA Separate Account VA-1, TIAA-CREF Funds and TIAA-CREF Life Funds (collectively, the “TIAA-CREF Fund Complex”).
Derek B. Dorn
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1976		   Senior Managing Director and Corporate Secretary  

One-year term. Senior Managing Director and Corporate Secretary since 2020.

   Senior Managing Director and Corporate Secretary of Teachers Insurance and Annuity Association of America (“TIAA”) and the TIAA-CREF Fund Complex. Formerly, Managing Director, Special Assistant to the CEO, and Managing Director, Regulatory Affairs, TIAA. Prior to joining TIAA, Mr. Dorn served as a partner at Davis & Harman LLP and an adjunct professor of Law at Georgetown University Law Center.
Bradley Finkle
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1973		   Principal Executive Officer and President   One-year term.
Principal Executive
Officer and President
since 2017.		   Chief Operating Officer, Nuveen. Principal Executive Officer and President of the TIAA-CREF Funds and TIAA-CREF Life Funds. Chief Executive Officer and President of CREF and TIAA Separate Account VA-1. Formerly, Senior Managing Director, Co-Head Nuveen Equities & Fixed Income and President of TIAA Investments.
Jose Minaya
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1971		   Executive Vice President   One-year term.
Executive Vice
President since 2018.		   Chief Executive Officer, Nuveen. Executive Vice President of the TIAA-CREF Fund Complex. Formerly, Executive Vice President, President and Chief investment Officer, Nuveen; Executive Vice President, Chief Investment Officer and President, Nuveen Global Investments; and Senior Managing Director, President, Global Investments, TIAA.
David Nason
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1970		   Executive Vice President   One-year term.
Executive Vice
President since
2020.		   Senior Executive Vice President, Chief Legal, Risk and Compliance Officer of TIAA. Executive Vice President of the TIAA-CREF Fund Complex. Formerly, Executive Vice President, Chief Risk and Compliance Officer, TIAA. Prior to joining TIAA, Mr. Nason served as President and CEO of GE Energy Financial Services.

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 73
 
Trustees and officers (unaudited) concluded

 

TIAA-CREF Funds  ■  May 31, 2021

 

Officers – concluded

 

Name, Address and
Year of Birth (“YOB”)		   Position(s)
Held with
Fund		   Term of
Office and
Length
of Time
Served		   Principal Occupation(s) During Past 5 Years
Phillip T. Rollock
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		   Executive Vice President and Chief Legal Officer   One-year term.
Executive Vice
President and
Chief Legal Officer
since 2018.		   Executive Vice President and Chief Legal Officer of TIAA and the TIAA-CREF Fund Complex. Formerly, Executive Vice President, Deputy Chief Legal Officer, TIAA and Senior Managing Director, Senior General Counsel and Corporate Secretary of TIAA and the TIAA-CREF Fund Complex.
E. Scott Wickerham
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1973		   Principal Financial Officer, Principal Accounting Officer and Treasurer   One-year term.
Principal Financial
Officer, Principal
Accounting Officer
and Treasurer
since 2017.		   Senior Managing Director, Head, Publics Investment Finance, Nuveen. Principal Financial Officer, Principal Accounting Officer and Treasurer of the TIAA-CREF Fund Complex; and Vice President and Controller of the Nuveen Funds. Formerly, Managing Director, Head, TC Fund Administration, Nuveen.
Sean N. Woodroffe
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1963		   Executive Vice President   One-year term.
Executive Vice
President since
2018.		   Senior Executive Vice President, Chief Human Resources Officer of TIAA, and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Mr. Woodroffe served as Chief People Officer at National Life Group.

Please note that the Funds’ Statement of Additional Information (SAI) includes additional information about the Funds’ trustees and is available, without charge, through our website, TIAA.org, or by calling 800 223-1200.

 

74 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Approval of investment management agreement (unaudited)

 

Board renewal of the investment management agreement for the TIAA-CREF Lifestyle Funds

 

The Board of Trustees (the “Board” or the “Trustees”) of the TIAA-CREF Funds (the “Trust”) determines whether to initially approve and periodically renew the investment management agreement (the “Agreement”) between Teachers Advisors, LLC (“Advisors”) and the Trust on behalf of each series of the Trust. Under the Agreement, Advisors is responsible for providing investment advisory services to each series of the Trust and overseeing the everyday operations and other service providers of the Trust. Below is a summary of the process the Board undertook related to its most recent renewal of the Agreement with respect to each series of the TIAA-CREF Lifestyle Funds (the “Funds”).

 

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), requires that, after an initial period of up to two years, the Agreement for each Fund will remain in effect only if the Board, including a majority of those Trustees who have no direct or indirect interest in the Agreement, and who are independent Trustees because they are not “interested persons” of the Trust, as that term is defined in the 1940 Act, annually renews the Agreement. None of the Trustees is an interested person of the Trust under the 1940 Act. Rather, they are all deemed to be independent Trustees.

 

Under normal circumstances, Section 15(c) requires any initial approval or annual renewal of an investment management agreement to be made at an in-person meeting of the Board. However, due to the COVID-19 pandemic, the Securities and Exchange Commission (“SEC”) issued a temporary, conditional exemptive order (the “SEC Order”), permitting mutual fund boards to vote to approve matters subject to the Section 15(c) in-person approval requirement at a meeting that is not held in person if the board determines that reliance on the SEC Order is necessary or appropriate due to prevailing circumstances related to the current or potential effects of COVID-19 and the board ratifies any action taken pursuant to the SEC Order at its next in-person meeting.

 

Overview of the renewal process

 

The Board held a videoconference meeting on March 12, 2021, in order to consider the annual renewal of the Agreement with respect to each applicable Fund using the process established by the Board described further below. At the outset of the meeting, the Board considered reliance upon the SEC Order and determined that such reliance was necessary due to, among other considerations, COVID-19 pandemic-related social distancing requirements, travel restrictions and other governmental mandates imposed for health and safety reasons. The Board noted that it would ratify actions taken at this meeting pursuant to the SEC Order at its next in-person meeting.

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 75
 

Approval of investment management agreement (unaudited)

 

As part of the Board’s established process, the Board delegated certain tasks to its Operations Committee. Among these tasks, the Operations Committee or certain of its designated members worked with Advisors, other Board members and legal counsel to the Trustees to develop guidance and specific requests relating to the types of information to be provided to the Board in connection with the proposed contract renewals.

 

Among other matters, the Operations Committee or certain of its designated members, following consultations with representatives of Advisors, other Board members, legal counsel to the Trustees and legal counsel to Advisors and the Trust, confirmed or established certain guidance regarding the preparation of reports to be provided to the Board with respect to each Fund by the Board Reporting and Compliance unit of Broadridge Financial Solutions, Inc. (“Broadridge”), using data from Lipper, Inc., an independent provider of investment company data. The Operations Committee considered that Broadridge is widely recognized as a leading provider of comparative analyses used by independent directors and trustees of investment companies during their advisory contract review processes.

 

Based on guidance provided by the Operations Committee or certain of its designated members on behalf of the Board, Broadridge produced, among other information, comparative performance and expense data for each Fund, including data relating to each Fund’s management fee rate, total expense ratio, short-term and long-term investment performance and portfolio turnover rate (as applicable). Broadridge compared this data, as relevant, for each Fund against a universe of investment companies and against a more selective peer group of mutual funds with similar investment objectives and strategies, each of which was selected by Broadridge, and also compared the performance of each Fund against one or more appropriate broad-based indices. In each case, Broadridge summarized, and the Board considered, the methodologies Broadridge employed to provide the data contained in its reports. In addition, Broadridge represented to the Board that its reports were designed specifically to provide the Board with the fee, expense and performance information that is necessary to help the Board satisfy its duties under Section 15(c) of the 1940 Act. Broadridge also represented that the purpose of its reports is to provide an objective view of each Fund’s relative position regarding the level of fees, expenses and performance against a competitive peer group and universe (as applicable) selected by Broadridge (and not Advisors or the Board). The Board considered the propriety of each Fund’s applicable peer group as selected by Broadridge and use of the Institutional Class shares as the base share class for comparison purposes.

 

In advance of the Board meeting held on March 12, 2021, legal counsel for the Trustees requested on behalf of the Board, and Advisors provided, information that was designed to assist the Board in its consideration of whether to renew the Agreement for each Fund. In addition to the data provided by Broadridge as described above, this information included, but was not limited to, the following: (1) further information relating to each Fund’s investment performance and a

 

76 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

continued

 

narrative analysis of the performance of each Fund that had underperformed certain Board-specified criteria, together with an explanation of any events that had a material impact on the Fund’s performance during that period; (2) a description of any fee waiver or expense reimbursement arrangements that were proposed or were in place during the prior year and the extent to which such arrangements would be continued or modified in the coming year; (3) a comparison of each Fund’s management fee rate and performance to other accounts with comparable strategies managed by Advisors or certain of its affiliates; (4) any “fall-out” benefits that accrued or were identified as reasonably likely to accrue to Advisors or its affiliates due to their relationship with the Funds in addition to the Funds’ direct fee payments to Advisors pursuant to the Agreement; (5) information regarding Advisors’ financial resources, senior professional personnel, overall staffing levels, portfolio manager compensation arrangements, capacity to manage the Funds at current and foreseeable asset levels, insurance coverage, portfolio trading and best execution practices, and any actual and potential conflicts of interest identified by Advisors in connection with rendering services to the Funds; (6) information as to any profits earned by Advisors in connection with its services pursuant to the Agreement; (7) a copy of the Agreement and certain related agreements between the Funds and affiliates of Advisors; (8) a copy of Advisors’ Form ADV as filed with the SEC (which was presented only to legal counsel for the Trustees); and (9) draft narrative explanations to be included in the shareholder reports of reasons why the Board should renew the Agreement. The Trustees were also provided with performance ratings of Morningstar, Inc. (“Morningstar”), which is a widely recognized mutual fund ranking service. Additionally, the Board received information from management on the impact of the COVID-19 pandemic on the Teachers Insurance and Annuity Association of America (“TIAA”) enterprise generally and the Funds in particular including, among other information, the current and expected impact on the Funds’ performance and operations.

 

On March 4, 2021, the Board held a videoconference meeting with legal counsel to the Trustees to discuss Advisors’ materials, which led to the Trustees providing additional questions to, and requesting additional information from, Advisors. Subsequently, at the March 12, 2021 meeting, the Trustees were given the opportunity to, and did, ask additional questions and they discussed responses from Advisors to the Board’s follow-up questions and requests presented by the Board after its initial review of the information described above.

 

In considering whether to renew the Agreement with respect to each Fund, the Board considered various factors, including: (1) the nature, extent and quality of services provided or to be provided by Advisors to the Fund; (2) the Fund’s investment performance; (3) the costs of the services provided to the Fund and the profits realized or potential profits to be realized (if any) by Advisors from their relationship with the Fund; (4) fees charged to comparable mutual funds by other advisers; (5) the extent to which economies of scale have been realized or are anticipated to be realized as the Fund grows; (6) how such economies of scale are shared with the Fund for the benefit of its investors, such as, if applicable, through management fee

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 77
 

Approval of investment management agreement (unaudited)

 

breakpoints; (7) comparisons, if applicable, of the services provided by Advisors to, and the fee rates and performance of, the Fund to other clients to whom Advisors provides comparable services; and (8) any other benefits identified by Advisors derived or anticipated to be derived by Advisors or its affiliates from their relationship with the Fund. As a general matter, the Board considered these factors, and any other factors deemed relevant by the Trustees, in their totality, and no single factor was identified as being the determining factor in deciding whether to renew the Agreement.

 

In addition to the March 12, 2021 meeting that included Advisors’ personnel, the Trustees met in executive sessions, at which no representatives of Advisors were present, to discuss the proposed renewal of the Agreement for each Fund. The Board also received and considered information from its legal counsel as to certain relevant guidance that relates to the renewal process under Section 15(c) of the 1940 Act and certain other legal authorities.

 

While the contract renewal process included a series of discussions and meetings leading up to the March 12, 2021 meeting, the oversight and evaluation of Advisors’ services to the Funds by the Board and its Committees is an ongoing process. The Board, as well as its Committees, discussed reports on various investment and operational topics that had been identified by the Board or its Committees for review in the year since the last annual renewal process. Further, at their regularly scheduled meetings, the Board and its Investment Committee and its other Committees receive and discuss information regarding the performance of the Funds and other matters. Thus, in reaching its decisions regarding the renewal of the Agreement for each Fund, the Board took into account the information described herein and other information provided to the Board and its Committees throughout the year.

 

The Board received and considered both Trust-level and Fund-specific information, but made its renewal determinations on a Fund-by-Fund basis. In deciding whether to renew the Agreement for each Fund, each Trustee may have accorded different weight to different factors and, thus, may have had a different basis for his or her ultimate decision to vote to renew the Agreement for each Fund. At its meeting on March 12, 2021, all Board members voted unanimously to renew the Agreement for each Fund. Set forth below is a summary of the primary factors the Board considered with respect to each Fund.

 

The nature, extent and quality of services

 

The Board considered the level and depth of knowledge of Advisors, including the professional experience and qualifications of its personnel. The Board also considered that Advisors is an experienced investment adviser that has managed the Funds since their operations commenced. Investment professionals at Advisors also manage various other funds and accounts of the Trust, College Retirement Equities Fund, the TIAA-CREF Life Funds and TIAA Separate Account VA-1, as well as advise

 

78 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

continued

 

and sub-advise other investment companies and vehicles. Under the Agreement, Advisors is responsible for, among other duties: managing the assets of the Funds (which are funds of funds that may invest their assets in the securities of affiliated and unaffiliated investment companies or other investment pools, referred to as “Underlying Funds”), including conducting research, identifying investments and placing orders to buy and sell shares of Underlying Funds for the Funds’ investment portfolios; active daily monitoring of the Funds’ investment portfolios; reporting on the investment performance and other metrics of the Funds to the Board on a regular basis; responding to Fund flows; compliance monitoring; coordinating the activities of each Fund’s service providers; and overseeing the provision of various administrative services to the Funds. The Board considered that Advisors has carried out these responsibilities in a competent and professional manner. The Board also considered that Advisors has committed significant resources to supporting the series of the Trust, including the Funds. It also considered Advisors’ compliance program and resources and its compliance record with respect to the Funds.

 

The Board also considered, among other factors, the performance of each Fund, as discussed below. In addition, the Board considered the nature and quality of non-portfolio management services provided by Advisors and its affiliates. In this regard, the Board considered its ongoing review of the performance of certain affiliated and unaffiliated service providers, including the quality of services provided by those firms and Advisors’ oversight of those service providers and the outsourcing of certain services to other firms.

 

During its review, the Board noted its ongoing efforts to examine the level of personnel and other resources available to Advisors to provide portfolio management and other services to the Funds, including the impact of recent and anticipated regulatory requirements and operational changes on such resources, so as to assess the adequacy of the resources devoted to these services.

 

Investment performance

 

The Board considered the investment performance of each Fund, over the periods indicated in the Fund-by-Fund synopsis below. The Board considered each Fund’s performance as compared to its peer group and peer universe (as applicable) and its benchmark index. For details regarding each Fund’s performance, see the Fund-by-Fund synopsis below. The Board concluded that, under the totality of circumstances considered, the investment performance of each Fund was reasonable.

 

Cost and profitability

 

The Board considered financial and profitability data relating to Advisors’ services to the Funds for the calendar year 2020. The Board considered Advisors’ profit calculations with respect to its services to each Fund both before and after taking into account the costs incurred directly or indirectly by Advisors in connection with the distribution of shares of the Fund. The Board acknowledged the reasonableness

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 79
 

Approval of investment management agreement (unaudited)

 

of having management fee rates which permit Advisors to maintain and improve the quality of services provided to the Funds and recognized the entrepreneurial and other risks assumed by Advisors in managing the Funds. The Board also acknowledged certain fee waivers and reimbursements of expenses above specified amounts undertaken by Advisors with respect to many of the Underlying Funds which, in turn, reduce the expenses of the Funds. The Board also recognized Advisors’ commitment to reimburse Fund expenses to the extent that total annual operating expenses exceeded certain specified amounts. The Board considered that Advisors had calculated that it incurred losses with respect to each Fund under the Agreement for the one-year period ended December 31, 2020. The Board also considered that, in the aggregate, Advisors had generated indirect earnings with respect to the Funds’ investment in Underlying Funds also managed by Advisors.

 

Fees charged by other advisers

 

The Board considered comparative information regarding each Fund’s contractual and effective management fee rates and the contractual and effective management fee rates paid by similar mutual funds to other advisers, as analyzed by Broadridge and reflected in the Fund-by-Fund synopsis below. The Board determined that the management fee rate charged to a Fund under the Agreement typically was lower than the management fee rates charged to many or most other comparable mutual funds. In this connection, the Board also considered the inherent limitations of such comparisons in light of uncertainty as to how the fees of such similar mutual funds are set and potentially material differences between a Fund and its comparable mutual funds. The Board considered Broadridge’s treatment of all fund fee waivers, regardless of their type, as management fee waivers, which could materially impact how the Funds’ actual management fee rates compare to those of similar mutual funds. Additionally, the Board considered the potential limitations of such comparisons due to, among other factors, the fact that, in many instances, Broadridge based its comparisons on financial data relating to fiscal periods that differed from the period for which the Fund’s data were derived. Based on all factors considered, the Board concluded that the management fee rates under the Agreement with respect to each Fund were reasonable in relation to those charged by appropriate groups of comparable mutual funds.

 

Economies of scale

 

The Board considered whether Advisors has experienced or is anticipated to experience economies of scale in connection with the operation of each Fund, and whether any such economies are shared with the Funds. The Board also considered that because Advisors operated each Fund at a loss, there had been little opportunity to pass on economies of scale to Fund shareholders. Based on all factors considered, the Board concluded that the Funds’ management fee rate schedules were reasonable in light of current economies of scale considerations and current asset levels.

 

80 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

continued

 

Fee and performance comparisons with other Advisors clients

 

The Board considered that Advisors provides similar investment management services to other investment companies. The Board noted that Advisors provides funds of funds management services to the TIAA-CREF Life Balanced Fund, with an annual management fee rate of 0.10% of average daily net assets, and the TIAA-CREF Managed Allocation Fund, for which Advisors receives no management fee. The Board also considered that Advisors also manages the TIAA-CREF Lifecycle and Lifecycle Index Funds, which have a different expense structure where both the fund of fund fees and the underlying fund fees are charged to the funds of funds directly. The Board also discussed the performance of these other funds of funds while discussing the performance of the Funds.

 

Other benefits

 

The Board also considered additional “fall-out benefits” to Advisors and its affiliates arising from the Agreement. Such benefits include, among others, other fees paid by the Funds to Advisors or its affiliates for other services, such as distribution, administration and investment-related benefits and/or personnel with other clients of Advisors, such as economies of scale to the extent the Funds share investment resources and the ability to incubate strategies within one or more Funds that could be subsequently utilized to manage other non-Fund products. Advisors and its affiliates may also benefit from the level of business and relationships the Funds have with certain service providers. Advisors and/or its affiliates also may benefit to the extent that the Funds add scale to the TIAA-CREF Underlying Funds. Also, Advisers and its affiliates earn fees on the Funds’ investments in other affiliated products, such as Nuveen Funds. Additionally, the Funds may be utilized as investment options for other products and businesses of Advisors and its affiliates, such as variable products, fund of funds and 529 education savings plans. Also, Advisors and its affiliates may benefit from their relationship with the Funds to the extent that this relationship results in potential investors viewing TIAA, of which Advisors is an indirect, wholly-owned subsidiary, as a leading retirement plan provider in the academic and non-profit markets and as a single source for all their financial service needs.

 

Fund-by-fund synopsis of factors

 

The Board considered the following specific factors (among others) in connection with its determination to renew the Agreement with respect to each Fund. If a Fund is described in the following discussions as being in the “1st” quintile, it is in the best of five groups (that is, the group has the best performance or the lowest expenses, as the case may be). References below to quintiles are based on data provided to the Board in the reports prepared by Broadridge. The specific management fee, expense and performance factors outlined below are based on the Retail Class shares of each Fund. Because the Retail Class generally has higher non-

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 81
 

Approval of investment management agreement (unaudited)

 

management expenses than the other classes of these Funds, the expenses and performance of these other classes will differ from the expenses and performance shown for the Retail Class. All time periods referenced below are ended December 31, 2020. Under the Morningstar rating system, an Overall Morningstar Rating of 5 stars is the highest (best) rating category and 1 star is the lowest (worst) rating category. The Morningstar data is as of December 31, 2020. Statements below regarding “net loss” refer to Advisors’ calculation that it incurred a loss for the services that it rendered to a Fund during 2020 under the Agreement.

 

Lifestyle Aggressive Growth Fund
• The Fund’s annual contractual management fee rate is 0.10% of average daily net assets.
• The Fund’s total expense ratio, actual management fee rate and contractual fee rate were each in the 1st quintile of the group of comparable funds selected by Broadridge for expense comparison purposes (“Expense Group”) and of the universe of comparable funds selected by Broadridge for expense comparison purposes (“Expense Universe”).
• The Fund was in the 1st, 2nd and 1st quintiles of both the group of comparable funds selected by Broadridge for performance comparison purposes (“Performance Group”) and the universe of comparable funds selected by Broadridge for performance comparison purposes (“Performance Universe”) for the one-, three- and five-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   
Lifestyle Growth Fund
• The Fund’s annual contractual management fee rate is 0.10% of average daily net assets.
• The Fund’s total expense ratio and actual management fee were in the 2nd and 1st quintiles of its Expense Group, respectively, while the Fund’s contractual fee rate ranked 1 out of 4 funds within its Expense Group. The Fund’s total expense ratio, actual management fee rate and contractual fee rate were each in the 1st, 1st and 2nd quintiles of its Expense Universe, respectively.
• The Fund was in the 1st quintile of its Performance Group for each of the one-, three- and five-year periods, respectively. The Fund was in the 1st, 2nd and 1st quintiles of its Performance Universe for the one-, three- and five-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in

 

82  2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

continued

 

  the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   
Lifestyle Moderate Fund
• The Fund’s annual contractual management fee rate is 0.10% of average daily net assets.
• The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were each in the 1st quintile of its Expense Group. The Fund’s total expense ratio, actual management fee rate and contractual management fee rate were in the 1st, 2nd and 2nd quintiles of its Expense Universe, respectively.
• The Fund was in the 1st quintile of both its Performance Group and Performance Universe for each of the one-, three- and five-year periods.
• The Fund received an Overall Morningstar Rating of 3 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   
Lifestyle Conservative Fund
• The Fund’s annual contractual management fee rate is 0.10% of average daily net assets.
• The Fund’s total expense ratio and actual management fee rate were each in the 1st quintile of both its Expense Group and Expense Universe. The Fund’s contractual management fee rate was in the 2nd quintile of both its Expense Group and Expense Universe.
• The Fund was in the 1st quintile of both its Performance Group and Performance Universe for each of the one-, three- and five-year periods.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.
   
Lifestyle Income Fund
• The Fund’s annual contractual management fee rate is 0.10% of average daily net assets.
• The Fund’s total expense ratio and actual management fee rate were each in the 1st quintile of both its Expense Group and Expense Universe. The Fund’s contractual management fee rate was in the 2nd quintile of both its Expense Group and Expense Universe.
• The Fund was in the 4th, 4th and 5th quintiles of its Performance Group for the one-, three- and five-year periods, respectively. The Fund was in the 3rd, 3rd and

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 83
 
Approval of investment management agreement (unaudited) concluded

 

  4th quintiles of its Performance Universe for the one-, three- and five-year periods, respectively.
• The Fund received an Overall Morningstar Rating of 3 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned in the aggregate with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

 

 

Based primarily on the foregoing factors and considerations, the Board renewed the Agreement for each Fund.

 

84  2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Liquidity risk management program

 

Discussion of the operation and effectiveness of the Funds’ liquidity risk management program

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), each series of the Trust covered by this Report (the “Funds”) has adopted and implemented a liquidity risk management program (the “Program”), which is reasonably designed to assess and manage the Funds’ liquidity risk. The Program consists of various provisions relating to assessing and managing Fund liquidity risk, as discussed further below. The Funds’ Board of Trustees (the “Board”) previously approved the designation of Advisors (the “Administrator”) as Program administrator. The Liquidity Monitoring and Analysis Team (the “LMAT”) carries out day-to-day Program management with oversight by the Liquidity Oversight Committee (the “LOSC”). Personnel from the Administrator and Nuveen Fund Advisors, LLC, an affiliate of the Administrator, comprise the LMAT and LOSC.

 

At a February 9, 2021 Board meeting, the Administrator provided the Board with a written report addressing the Program’s operation, adequacy, and effectiveness of implementation for the period from January 1, 2020 through December 31, 2020 (the “Review Period”), as required under the Liquidity Rule. The report noted that the Program has been and continues to be adequately and effectively implemented to monitor and (as applicable) respond to the Funds’ liquidity developments.

 

In accordance with the Program, the LMAT assesses each Fund’s liquidity risk no less frequently than annually based on various factors, such as (i) the Fund’s investment strategy and the liquidity of portfolio investments, (ii) cash flow projections, and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

 

Each Fund portfolio investment is classified into one of four liquidity categories (including “highly liquid investments” and “illiquid investments,” discussed below). The classification is based on a determination of how long it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading, and investment-specific considerations, as well as market depth, and utilize third-party vendor data.

 

Any Fund that does not primarily hold highly liquid investments must, among other things, determine a minimum percentage of Fund net assets that must be invested in highly liquid investments (a “Highly Liquid Investment Minimum”). During the Review Period, each Fund primarily held highly liquid investments and therefore was exempt from the requirement to adopt a Highly Liquid Investment Minimum and to comply with the related requirements under the Liquidity Rule.

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 85
 
Liquidity risk management program concluded

 

The Liquidity Rule also limits the Funds’ investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if doing so would result in the Fund holding more than 15% of its net assets in illiquid investments and requires certain reporting anytime a Fund’s holdings of illiquid investments exceed 15% of net assets. During the Review Period, no Fund exceeded the 15% limit on illiquid investments.

 

86  2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

Additional information about index providers (unaudited)

 

Russell Indexes

 

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.

 

MSCI Indexes

 

Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)

 

Bloomberg Barclays Indexes

 

Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

 

TIAA-CREF Lifestyle Funds  ■  2021 Annual Report 87
 
Additional information about index providers (unaudited) concluded

 

Morningstar Index

 

©2021 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

 

88 2021 Annual Report  ■  TIAA-CREF Lifestyle Funds
 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

How to reach us

 

Websites

 

TIAA.org

 

nuveen.com

 

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

 

 

 

You should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other 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 Federal Deposit Insurance Corporation (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. Nuveen, a subsidiary of TIAA, provides investment advice and portfolio management services through a dozen affiliated registered investment advisers. Nuveen Securities, LLC and TIAA-CREF Individual & Institutional Services, LLC, members FINRA, distribute securities products.

 

This material is for informational or educational purposes only and does not constitute fiduciary investment advice under ERISA, a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor’s own objectives and circumstances.

 

 

©2021 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

 

1655021 A13442 (7/21)
 
 

 

730 Third Avenue
New York, NY 10017-3206

  

 

 

 Printed on paper containing recycled fiber

 

1655021 A13442 (7/21)
 
 

 

730 Third Avenue
New York, NY 10017-3206

  

 

 

1655021 A13442 (7/21)
 
     
TIAA-CREF
Funds		 May 31,
2021
     

 

TIAA-CREF

Managed Allocation Fund

The annual report contains the audited financial statements.

 

  Institutional Retirement Retail
Fund name Class Class Class
Managed Allocation Fund TIMIX TITRX TIMRX

 

Annual
Report

 

As permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the TIAA-CREF Funds’ (the “Funds”) annual and semiannual shareholder reports will not be sent to you by mail, unless you specifically request paper copies of the reports. Instead, they will be made available on TIAA’s website, TIAA.org, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive shareholder reports and other communications from the Funds electronically anytime by either (1) updating your account settings at TIAA.org/eDelivery, if you invest in the Funds directly or hold your Fund shares through a TIAA-affiliated financial intermediary, account or retirement plan (each, a “TIAA Account”), or (2) contacting your financial intermediary (such as a broker/dealer or bank) through which you hold Fund shares.

If you invest directly with the Funds or through a TIAA Account, you may elect to receive all future shareholder reports in paper free of charge by updating your account settings at TIAA.org/eDelivery or by calling 800-842-2252 during regular business hours. If you invest through another financial intermediary, you can contact your financial intermediary to request that you receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held with the fund complex if you invest directly with the Funds or through a TIAA Account, or to all funds held through your financial intermediary.

 

Contents

 

 

Understanding this report

 

This annual report contains information about the Managed Allocation Fund and describes the Fund’s results for the twelve months ended May 31, 2021. The report contains four main sections:

 •A letter from Brad Finkle, President of the TIAA-CREF Fund Complex.
  • The Fund performance section compares the Fund’s investment returns with those of its composite benchmark and broad market index.
  • The portfolio of investments lists the underlying funds in which the Fund had investments as of May 31, 2021.
  • 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. To see the risks of investing in the Fund, please read the 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 websites at TIAA.org or nuveen.com, 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.

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 3
 

Letter to investors

 

Global financial markets generated mostly positive results for the twelve months ended May 31, 2021, as the economic ramifications of the COVID-19 pandemic diminished. U.S. equities posted double-digit gains amid continued economic expansion during the period. Foreign stocks also soared, with emerging markets faring better than both international developed markets and domestic equities. U.S. fixed-income securities declined modestly as U.S. Treasury yields rose across longer-term maturities (bond prices move in the opposite direction of yields). These market conditions were reflected in the performance of the TIAA-CREF Managed Allocation Fund by way of its investments in various asset classes through underlying funds.

 

  • The Fund’s Institutional Class gained 27.5%, outperforming the 24.7% return of its composite benchmark.
  • Relative outperformance of the Fund’s underlying funds, particularly within fixed income and U.S. equity, contributed to its result.
  • This result continued to support the solid performance of the TIAA-CREF Managed Allocation Fund over longer periods of time.

 

U.S. and international stocks posted substantial gains

U.S. equities posted impressive gains for the twelve months as many businesses and restaurants resumed operations with the continual easing of COVID-19 restrictions. The broad domestic stock market, as represented by the Russell 3000® Index, advanced 43.9%. The U.S. economy expanded considerably during the third quarter of 2020 and continued its growth trajectory into the fourth quarter of 2020 and the first quarter of 2021. The Federal Reserve kept the federal funds target rate at 0.00%–0.25%, while the federal government took aggressive fiscal action with two large stimulus measures.

International stocks surpassed their U.S. counterparts. The MSCI ACWI ex USA Investable Market Index (IMI), which measures the performance of large-, mid- and small-cap equities in 22 of 23 developed-markets countries (excluding the United States) and 27 emerging-markets countries, returned 44.1% in U.S.-dollar terms. The economy of the 19-nation euro area contracted in both the fourth quarter of 2020 and the first quarter of 2021. However, China’s economy posted solid growth in the fourth quarter of 2020 and grew at its fastest pace in three decades in the first quarter of 2021.

U.S. investment-grade bonds suffered a small loss as U.S. Treasury yields rose across longer-term maturities. The domestic investment-grade fixed-rate bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, returned –0.4% for the period.

 

4 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 



Brad Finkle

In investing, change is the only constant

As we enter the summer months and reflect on the transformative and challenging twelve-plus months of the COVID-19 pandemic, it’s heartening to see that businesses are reopening and people are returning to a more “normal” life. But the financial markets always look forward, and recent volatility reflects new concerns about inflation, interest rates, and the pace and duration of the global economic recovery.

In investing, as in life, speculation about what may happen in the future is never-ending. In fact, market fluctuation may be the only constant. As a result, we believe that adhering to a long-term financial plan and staying invested in a diversified portfolio that includes multiple asset classes are wise strategies to deal with the ever-present factors of risk and uncertainty. The TIAA-CREF Managed Allocation Fund uses a dynamic diversification strategy designed to help mitigate the effects of market volatility and keep you on track to achieve your financial goals. Of course, diversification does not guarantee against market losses, and past performance cannot guarantee future results.

We thank you again for trusting us to manage your investments through the TIAA-CREF Managed Allocation Fund. If you have any questions or concerns, please consult your financial advisor or call a TIAA financial consultant at 800-842-2252. You can also reach us online by visiting TIAA.org. We always stand ready to assist you.

 

/s/ Brad Finkle

 

Brad Finkle

President of the TIAA-CREF Fund Complex

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 5
 

Information for investors

 

Portfolio holdings

The complete portfolio of investments for the Managed Allocation Fund appears on page 14 of this report. You can obtain a complete list of the holdings of the Managed Allocation Fund and of the underlying TIAA-CREF Funds in which the Managed Allocation Fund invests as of the most recently completed fiscal quarter in the following ways:

  • By visiting our websites at TIAA.org or nuveen.com; or
  • By calling us at 800-842-2252 to request a copy, which will be provided free of charge.

You can also 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-PORT filings. Form N-CSR filings are as of May 31 or November 30; Form N-PORT 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 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 TIAA-CREF Funds of the Managed Allocation Fund can be found on our website at TIAA.org or on the SEC’s website at 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 TIAA-CREF 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 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. The members of this team are responsible for the day-to-day investment management of the Fund.

 

6 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

About the Fund’s benchmarks

 

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:

  • 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 ACWI ex USA Investable Market Index (IMI) (international equity) measures the performance of large-, mid- and small-cap equities across 22 of 23 developed-markets countries (excluding the United States) and 27 emerging-markets countries. The index is a free-float-adjusted market capitalization index that covers approximately 99% of the global equity opportunity set outside 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.

 

Broad market index

The returns shown against the broad-based securities market index compare the Fund’s average annual returns with a broad measure of market performance. The Morningstar Moderate Target Risk Index is an asset allocation index comprised of constituent Morningstar indexes and reflects global equity market exposure of 60% based on an asset allocation methodology from Ibbotson Associates, a Morningstar company. The returns of the Morningstar Moderate Target Risk Index reflect multi-asset class exposure and a similar risk profile as the Fund.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses. For additional details about the benchmark index, please read the Fund’s latest prospectus.

 

Russell 3000 is a trademark and service mark of Frank Russell Company. TIAA products are not promoted or sponsored by, or affiliated with, Frank Russell Company. 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.

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 7
 

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 this report is intended to help you understand your ongoing costs only (in U.S. dollars) and does not reflect transactional costs. 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 costs for investing in the Fund would be higher. Note also that shareholders of the TIAA-CREF Funds do not incur a sales charge for purchases, reinvested dividends or other distributions.

The example is based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (December 1, 2020–May 31, 2021).

 

Actual expenses

The first line of the two lines listed for each share class in the table uses that class’ 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 in effect, fund expenses would have been higher.

 

Hypothetical example for comparison purposes

The second line in each share class’ entry shows hypothetical account values and expenses based on the share class’ 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’ 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.

 

8 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

Important information about expenses

 

Expense example

 

Six months ended May 31, 2021

               Effective 
   Beginning   Ending   Expenses paid   expenses paid 
   account value   account value   during period*   during period† 
Managed Allocation Fund  (12/1/20)   (5/31/21)   (12/1/20–5/31/21)   (12/1/20–5/31/21)
Actual return                    
Institutional Class   $1,000.00    $1,098.93                       $0.00                       $2.15 
Retirement Class   1,000.00    1,097.69    1.31    3.45 
Retail Class   1,000.00    1,098.00    1.31    3.45 
5% annual hypothetical return                    
Institutional Class   1,000.00    1,024.93    0.00    2.07 
Retirement Class   1,000.00    1,023.68    1.26    3.33 
Retail Class   1,000.00    1,023.68    1.26    3.33 

 

* “Expenses paid during period” is based on the Fund’s actual expense ratio for the most recent fiscal half-year, multiplied by the average account value over the six-month period, multiplied by 182/365. There were 182 days in the six months ended May 31, 2021. The Fund’s annualized six-month expense ratios for that period were 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 reflect a waiver and/or reimbursement. Please see the prospectus for an explanation, including the date on which this reimbursement is scheduled to end. Without such waiver and/or reimbursement, the expenses of the affected share classes would be higher and their 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 six-month period, the total annualized weighted average expense ratio was 0.41% for the Institutional Class, 0.66% for the Retirement Class and 0.66% for the Retail Class.

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 9
 

Managed Allocation Fund

 

Performance for the twelve months ended May 31, 2021

The Managed Allocation Fund returned 27.52% for the Institutional Class, compared with the 24.66% return of its benchmark, the Managed Allocation Fund Composite Index. The performance table shows returns for all share classes of the Fund.

 

Economic recovery drove stocks sharply higher

The U.S. economy grew at a robust pace during the period, staging a strong recovery from the impact of the COVID-19 pandemic. Real gross domestic product (GDP), which measures the value of all goods and services produced in the United States, grew by 33.4% during the third quarter of 2020, bouncing back from a steep contraction the previous three months. GDP expanded by 4.3% during the fourth quarter of 2020 and 6.4% during the first three months of 2021 (the latter according to the government’s “second” estimate). Unemployment declined steadily from 11.1% at the start of the period to 5.8% in May 2021. Core inflation, which includes all items except food and energy, rose by 3.8% over the twelve months ended May 31, 2021. Oil prices rose sharply during the period.

The Federal Reserve left the federal funds target rate unchanged over the twelve-month period, maintaining the key short-term interest-rate measure at 0.00%–0.25%.

Domestic and foreign stocks generated strong gains for the period. The Russell 3000® Index, a broad measure of the U.S. stock market, climbed 43.91%. The MSCI ACWI ex USA Investable Market Index (IMI), which measures the performance of large-, mid- and small-cap equities in 22 of 23 developed-markets countries (excluding the United States) and 27 emerging-markets countries, advanced 44.08% in U.S.-dollar terms.

U.S. investment-grade bond performance was hindered by the impact of rising yields on longer-term securities (bond prices move in the opposite direction of yields). The broad domestic investment-grade fixed-rate bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, returned –0.40% for the period.

 

10 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

Equity funds posted largest gains

The Managed Allocation Fund may invest in up to three sectors of the investment markets: U.S. equity (stocks), international equity (foreign stocks) and fixed income. The Fund does this by investing in various underlying funds that, in turn, buy stocks, bonds and other securities in these market sectors. (Other than the Nuveen Dividend Value Fund, the Nuveen Santa Barbara Dividend Growth Fund and the Nuveen International Growth Fund, all funds mentioned below are TIAA-CREF Funds.)

For the twelve months, domestic and international equity sectors both produced strong results that contributed most to the Fund’s absolute return—that is, without regard to the performance of its composite benchmark. Within the U.S. equity category, the Quant Small-Cap Equity Fund and the Quant Small/Mid-Cap Equity Fund posted sizable double-digit gains. Among foreign stock funds, the Emerging Markets Equity Fund performed best, followed by the International Equity Fund. Within fixed income, the Core Plus Bond Fund produced a solid return. (All fund returns are for the Institutional Class.)

 

U.S. bond and domestic stock funds benefited relative performance

For the twelve months, the Fund outperformed its composite benchmark primarily due to the relative strength of underlying funds investing in bonds and domestic equities. The Core Plus Bond Fund was by far the largest single contributor to the Fund’s relative performance among all underlying funds.

Within U.S. equities, the Growth & Income Fund was the largest contributor to relative performance. The Large-Cap Growth Fund, the Quant Small/Mid-Cap Equity Fund and the Large-Cap Value Fund also enhanced the Fund’s relative performance. In contrast, the Nuveen Santa Barbara Dividend Growth Fund detracted most from relative performance, followed by the Nuveen Dividend Value Fund.

In the foreign stock category, the International Equity Fund contributed most to the Fund’s relative performance, followed by the Emerging Markets Equity Fund and the International Opportunities Fund. However, these positive effects were offset by the relative underperformance of the Nuveen International Growth Fund and the Quant International Small-Cap Equity Fund. (Performance of the Managed Allocation Fund’s underlying TIAA-CREF Funds can be found at TIAA.org/performance.)

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 11
 

Managed Allocation Fund

 

Performance as of May 31, 2021

Managed Allocation Fund       Average annual  Annual operating
     Total Return  total return  expenses*#
  Inception                    
  date  1 year   5 years   10 years   gross   net 
Institutional Class  3/31/06   27.52%   10.94%   8.74%   0.45%   0.42%
Retirement Class  3/31/06   27.15    10.66    8.47    0.70    0.67 
Retail Class  3/31/06   27.20    10.66    8.47    0.74    0.67 
Managed Allocation Fund Composite Index‡  —   24.66    10.75    8.57    —    — 
Broad market index                            
Morningstar Moderate Target Risk Index  —   25.54    10.34    7.83    —    — 

 

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 would be lower.

 

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

 

* The gross and net annual operating expenses are taken from the Fund’s prospectus. The net annual operating expenses may at times reflect a contractual reimbursement of various expenses. The expense reimbursement will continue through at least September 30, 2021, unless changed with the approval of the Board of Trustees. Without these reimbursements, expenses would be higher and returns lower. Refer to the Financial highlights later in this report for the Fund’s expense ratios as of the end of the reporting period.
# These expenses include underlying fund expenses.
‡ As of the close of business on May 31, 2021, 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 Index ex USA Investable Market 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.

 

12 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

Managed Allocation Fund

 

$2,000,000 over 10 years

Institutional Class

 

 

Ending amounts are as of May 31, 2021. For the purpose of comparison, the graph also shows the change in the values of the Fund’s composite benchmark and a broad market index during the same period. The performance of the other share classes varies due to differences in expense charges.

 

Asset allocation

  % of net assets
  as of 5/31/21
Equity  
U.S. equity 41.97
International equity 18.17
Fixed income 39.78
Other assets & liabilities, net 0.08
Total 100.00

Target allocation

 


TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 13
 

Portfolio of investments

 

Managed Allocation Fund  ■  May 31, 2021

 

Shares     Security     Value   % of net
assets
AFFILIATED INVESTMENT COMPANIES—99.9%a              
FIXED INCOME—39.8%                 
 37,649,150     TIAA-CREF Core Plus Bond Fund     $410,752,228     39.8 %
       TOTAL FIXED INCOME      410,752,228     39.8  
INTERNATIONAL EQUITY—18.2%                
 680,263     Nuveen International Growth Fund      40,115,114     3.9  
 1,749,701     TIAA-CREF Emerging Markets Equity Fund      24,653,294     2.4  
 3,876,481     TIAA-CREF International Equity Fund      56,286,508     5.4  
 2,093,139     TIAA-CREF International Opportunities Fund      40,125,471     3.9  
 2,150,128     TIAA-CREF Quant International Small-Cap Equity Fund      26,425,072     2.6  
       TOTAL INTERNATIONAL EQUITY      187,605,459     18.2  
U.S. EQUITY—41.9%                
 4,219,490     Nuveen Dividend Value Fund      68,566,705     6.6  
 1,160,670     Nuveen Santa Barbara Dividend Growth Fund      61,086,063     5.9  
 3,317,996     TIAA-CREF Growth & Income Fund      61,183,844     5.9  
 2,693,784     TIAA-CREF Large-Cap Growth Fund      66,267,076     6.4  
 1,262,382     TIAA-CREF Large-Cap Growth Index Fund      66,211,924     6.4  
 3,068,262     TIAA-CREF Large-Cap Value Fund      68,483,619     6.6  
 861,435     TIAA-CREF Quant Small-Cap Equity Fund      19,287,531     1.9  
 1,284,666     TIAA-CREF Quant Small/Mid-Cap Equity Fund      22,121,954     2.2  
       TOTAL U.S. EQUITY      433,208,716     41.9  
       TOTAL AFFILIATED INVESTMENT COMPANIES  (Cost $807,786,979)   1,031,566,403     99.9  
                        
       TOTAL PORTFOLIO  (Cost $807,786,979)   1,031,566,403     99.9  
       OTHER ASSETS & LIABILITIES, NET      867,285     0.1  
       NET ASSETS     $1,032,433,688     100.0%  

 

 

 

a The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds and Class R6 shares of the affiliated Nuveen Funds.

 

14 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund See notes to financial statements
 

Statement of assets and liabilities

 

Managed Allocation Fund  ■  May 31, 2021

 

ASSETS     
Affiliated investments, at value‡  $1,031,566,403 
Cash   830,800 
Receivable from securities transactions   2,007,754 
Receivable from Fund shares sold   35,654 
Dividends receivable   770,634 
Due from affiliates   47,164 
Other   105,642 
Total assets   1,035,364,051 
LIABILITIES     
Service agreement fees payable   18,575 
Distribution fees payable   193,370 
Due to affiliates   4,221 
Payable for securities transactions   2,490,543 
Payable for Fund shares redeemed   38,878 
Payable for trustee compensation   106,183 
Accrued expenses and other payables   78,593 
Total liabilities   2,930,363 
NET ASSETS  $1,032,433,688 
      
NET ASSETS CONSIST OF:     
Paid-in-capital  $761,188,908 
Total distributable earnings (loss)   271,244,780 
NET ASSETS  $1,032,433,688 
      
INSTITUTIONAL CLASS:     
Net assets  $24,884,621 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   1,720,649 
Net asset value per share  $14.46 
      
RETIREMENT CLASS:     
Net assets  $88,692,714 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   6,141,550 
Net asset value per share  $14.44 
      
RETAIL CLASS:     
Net assets  $918,856,353 
Outstanding shares of beneficial interest, unlimited shares authorized ($.0001 par value)   63,323,977 
Net asset value per share  $14.51 
‡    Affiliated investments, cost  $807,786,979 

 

See notes to financial statements TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 15
 

Statement of operations

 

Managed Allocation Fund  ■  For the year ended May 31, 2021

 

INVESTMENT INCOME    
Dividends from affiliated investments  $16,350,895 
Total income   16,350,895 
EXPENSES     
Shareholder servicing — Institutional Class   153 
Shareholder servicing — Retirement Class   198,000 
Shareholder servicing — Retail Class   314,342 
Distribution fees — Retail Class   2,112,465 
Administrative service fees   37,869 
Trustee fees and expenses   10,397 
Other expenses   155,932 
Total expenses   2,829,158 
Less: Expenses reimbursed by the investment adviser   (518,800)
Net expenses   2,310,358 
Net investment income (loss)   14,040,537 
NET REALIZED AND UNREALIZED GAIN (LOSS) ON TOTAL INVESTMENTS     
Realized gain (loss) from sale of affiliated investments   68,586,051 
Realized gain distributions from affiliated investments   35,751,853 
Net realized gain (loss) from affiliated investments   104,337,904 
Net change in unrealized appreciation (depreciation) from affiliated investments   105,074,208 
Net realized and unrealized gain (loss) from affiliated investments   209,412,112 
Net increase (decrease) in net assets from operations  $223,452,649 

 

16 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund See notes to financial statements
 

Statements of changes in net assets

 

Managed Allocation Fund  ■  For the year ended

 

      May 31, 2021   May 31, 2020 
OPERATIONS             
Net investment income (loss)         $14,040,537       $16,887,839 
Net realized gain (loss) from affiliated investments     104,337,904    19,932,836 
Net change in unrealized appreciation (depreciation) from affiliated investments   105,074,208    18,788,498 
Net increase (decrease) in net assets from operations   223,452,649    55,609,173 
              
DISTRIBUTIONS TO SHAREHOLDERS             
Institutional Class      (1,525,703)   (1,048,523)
Retirement Class      (6,320,184)   (4,053,827)
Retail Class      (67,216,778)   (41,755,875)
Total distributions      (75,062,665)   (46,858,225)
              
SHAREHOLDER TRANSACTIONS             
Subscriptions:  Institutional Class   9,502,258    5,567,619 
   Retirement Class   8,658,798    7,298,040 
   Retail Class   33,364,881    28,727,109 
Reinvestments of distributions:  Institutional Class   1,489,157    1,025,027 
   Retirement Class   6,320,184    4,053,827 
   Retail Class   64,644,539    40,142,425 
Redemptions:  Institutional Class   (6,142,752)   (8,065,771)
   Retirement Class   (9,103,439)   (11,472,317)
   Retail Class   (62,934,267)   (71,498,083)
Net increase (decrease) from shareholder transactions   45,799,359    (4,222,124)
Net increase (decrease) in net assets   194,189,343    4,528,824 
              
NET ASSETS             
Beginning of period      838,244,345    833,715,521 
End of period     $1,032,433,688   $838,244,345 
              
CHANGE IN FUND SHARES             
Shares sold:  Institutional Class   689,159    443,102 
   Retirement Class   629,973    575,538 
   Retail Class   2,424,304    2,284,052 
Shares reinvested:  Institutional Class   110,473    81,998 
   Retirement Class   469,041    323,956 
   Retail Class   4,776,405    3,193,075 
Shares redeemed:  Institutional Class   (458,026)   (650,617)
   Retirement Class   (677,150)   (942,245)
   Retail Class   (4,607,581)   (5,788,917)
Net increase (decrease) from shareholder transactions     3,356,598    (480,058)

 

See notes to financial statements TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 17
 

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   and unrealized   Total gain   Less distributions from   Total   Net asset       Net assets           Net     
   period
or year
ended		  value,
beginning
of period		   investment
income
(loss		)a   gain (loss)
on total
investments		j  (loss) from
investment
operations		   Net
investment
income		   Net
realized
gains		   dividends
and
distributions		   value,
end of
period		   Total
return		   at end of
period or year
(in thousands)		   Gross
expenses		e  Net
expenses		e  investment
income
(loss)		   Portfolio
turnover
rate		 
Institutional Class:  5/31/21  $12.32   $0.23   $3.07   $3.30   $(0.37)  $(0.79)  $(1.16)  $ 14.46    27.52%  $24,885    0.02%   0.00%   1.71%   42%
   5/31/20   12.18    0.28    0.58    0.86    (0.28)   (0.44)   (0.72)   12.32    7.09    16,997    0.03    0.00    2.21    27 
   5/31/19   12.89    0.29    (0.29)   0.00d    (0.35)   (0.36)   (0.71)   12.18    0.40    18,320    0.03    0.00    2.34    20 
   5/31/18   12.32    0.27    0.84    1.11    (0.36)   (0.18)   (0.54)   12.89    9.04    17,468    0.03    0.00    2.09    12 
   5/31/17   11.52    0.24    1.14    1.38    (0.29)   (0.29)   (0.58)   12.32    12.39    13,288    0.03    0.00    2.02    21 
Retirement Class:  5/31/21   12.31    0.20    3.05    3.25    (0.33)   (0.79)   (1.12)   14.44    27.15    88,693    0.27    0.25    1.48    42 
   5/31/20   12.16    0.25    0.59    0.84    (0.25)   (0.44)   (0.69)   12.31    6.91    70,404    0.28    0.25    1.98    27 
   5/31/19   12.87    0.25    (0.28)   (0.03)   (0.32)   (0.36)   (0.68)   12.16    0.14    70,068    0.28    0.25    2.03    20 
   5/31/18   12.31    0.23    0.84    1.07    (0.33)   (0.18)   (0.51)   12.87    8.70    72,981    0.28    0.25    1.83    12 
   5/31/17   11.51    0.21    1.14    1.35    (0.26)   (0.29)   (0.55)   12.31    12.13    64,068    0.28    0.25    1.82    21 
Retail Class:  5/31/21   12.36    0.20    3.07    3.27    (0.33)   (0.79)   (1.12)   14.51    27.20    918,856    0.31    0.25    1.48    42 
   5/31/20   12.21    0.25    0.59    0.84    (0.25)   (0.44)   (0.69)   12.36    6.87    750,844    0.32    0.25    1.97    27 
   5/31/19   12.92    0.25    (0.28)   (0.03)   (0.32)   (0.36)   (0.68)   12.21    0.14    745,328    0.32    0.25    2.00    20 
   5/31/18   12.35    0.23    0.85    1.08    (0.33)   (0.18)   (0.51)   12.92    8.75    779,099    0.31    0.25    1.83    12 
   5/31/17   11.55    0.21    1.14    1.35    (0.26)   (0.29)   (0.55)   12.35    12.07    737,685    0.32    0.25    1.80    21 
a Based on average shares outstanding.
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 and long-term capital gain distributions received from the Underlying Funds are presented in net realized and unrealized gain (loss) on total investments for all periods presented.

 

18 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund See notes to financial statements See notes to financial statements TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 19
 

Notes to financial statements

 

Managed Allocation Fund

 

Note 1—organization

 

The 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 U.S. Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company.

 

Teachers Advisors, LLC (“Advisors”), a wholly owned indirect subsidiary of Teachers Insurance and Annuity Association of America (“TIAA”), is registered with the SEC as an investment adviser and provides investment management services for the Fund.

 

The Fund offers its shares, without a sales load, through its principal underwriter, Nuveen Securities, LLC (“Nuveen Securities”), which is a wholly owned indirect subsidiary of TIAA.

 

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 three share classes: Institutional Class, Retirement Class and Retail Class shares. Each class differs by the allocation of class-specific expenses and voting rights in matters affecting a single class.

 

Note 2—significant accounting policies

 

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.

 

Investments and investment income: Securities transactions are accounted for as of the trade date for financial reporting purposes. Interest income is recorded on an accrual basis and includes accretion of discounts and amortization of premiums. Dividend income is recorded on the ex-dividend date. Realized gains and losses on securities transactions are based upon the specific identification method. Distributions received on securities that represent a return of capital or capital gains are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions.

 

20 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

Multiclass operations and allocations: 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, 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 are recorded on the ex-dividend date. The amount, character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

 

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 separately 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.

 

Indemnification: Under the Trust’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

 

Other matters: The outbreak of the novel coronavirus (“COVID-19”) and subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the calendar quarter ended March 31, 2020. The worldwide spread of COVID-19 has created significant uncertainty in the global economy. The duration and extent of COVID-19 over the long term cannot be reasonably estimated at this time. The ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Fund’s normal course of business, results of operations, investments, and cash flows will depend on future developments, which are highly uncertain and difficult to predict. Management continues to monitor and evaluate this situation.

 

New rule issuance: In December 2020, the SEC voted to adopt a new rule governing fund valuation practices. New Rule 2a-5 under the 1940 Act establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 21
 

Notes to financial statements

 

Section 2(a)(41) of the 1940 Act, which requires a fund to fair value a security when market quotations are not readily available. The SEC also adopted new Rule 31a-4 under the 1940 Act, which sets forth the recordkeeping requirements associated with fair value determinations. Finally, the SEC is rescinding previously issued guidance on related issues, including the role of a board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, with a compliance date of September 8, 2022. A fund may voluntarily comply with the rules after the effective date, and in advance of the compliance date, under certain conditions. Management is currently assessing the impact of these provisions on the Fund’s financial statements.

 

Note 3—valuation of investments

 

The Fund’s investments in securities are recorded at their estimated fair value utilizing valuation methods approved by the Board. Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. U.S. GAAP establishes the three-tier hierarchy that is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect management’s assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.

 

• Level 1 – Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities.
• Level 2 – Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, credit spreads, etc.).
• Level 3 – Prices are determined using significant unobservable inputs (including management’s assumptions in determining the fair value of investments).

 

A description of the valuation techniques applied to the Fund’s major classifications of assets and liabilities measured at fair value follows:

 

Investments in registered investment companies: Investments in investment companies are valued at their respective NAVs on the valuation date and are generally classified as Level 1.

 

As of May 31, 2021, all of the investments in the Fund were valued based on Level 1 inputs.

 

22 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

continued

 

Note 4—investments

 

Purchases and sales: Purchases and sales of securities (other than short-term instruments) for the Fund for the year ended May 31, 2021 were as follows (dollar amounts are in thousands):

 

Non-U.S. government purchases   Non-U.S. government sales  
$410,724   $390,769  

 

Note 5—income tax and other tax matters

 

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.

 

For the year ended May 31, 2021, permanent book and tax differences resulting primarily from the reclassification of short-term capital gain distributions received from underlying funds from realized gain (loss) to ordinary income, the utilization of tax equalization credits were identified and reclassified among the components of the Fund’s net assets. Net investment income and net realized gains (losses), as disclosed on the Statement of operations, and net assets were not affected by these reclassifications.

 

Net unrealized appreciation (depreciation): At May 31, 2021, net unrealized appreciation (depreciation) based on the aggregate cost of all investments for federal income tax purposes, consisting of gross unrealized appreciation and gross unrealized depreciation, was as follows (dollar amounts are in thousands):

 

Tax cost Gross
unrealized
appreciation		 Gross
unrealized
(depreciation		 ) Net unrealized
appreciation
(depreciation		 )
$817,921 $223,779 $(10,134 ) $213,645  

 

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 23
 

Notes to financial statements

 

For purposes of this disclosure, tax cost generally includes the cost of portfolio investments as well as up-front fees or premiums exchanged on derivatives and any amounts unrealized for income statement reporting but realized in income and/or capital gains for tax reporting.

 

Distributions to shareholders: The tax character of distributions paid to shareholders during the years ended May 31, 2021 and May 31, 2020 was as follows:

 

  Ordinary income Long-term capital gains Total  
5/31/2021 $24,932,075 $50,130,590 $75,062,665  
5/31/2020 17,101,766 29,756,459 46,858,225  

 

 

Components of accumulated earnings: As of May 31, 2021, the components of accumulated earnings on a tax basis were as follow:

 

Undistributed
ordinary income		 Undistributed
long-term
capital gains		 Unrealized
appreciation
(depreciation		 ) Total  
$7,800,387 $49,891,289 $213,645,785   $271,337,461  

 

The difference between book basis and tax basis net investment income, net realized gains and losses, and unrealized appreciation and depreciation is attributable primarily to the tax deferral of losses on wash sales.

 

Note 6—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 Nuveen Securities 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

 

24 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

continued

 

assets for the Retirement and Retail Class shares. The expense reimbursement arrangements will continue through at least September 30, 2021, unless changed with approval of the Board.

 

Investments in other investment companies advised by Advisors and Nuveen Fund Advisors, LLC are deemed to be affiliated investments. The Fund invests its assets in Institutional Class shares of the affiliated TIAA-CREF Funds and Class R6 of the affiliated Nuveen Funds. Information regarding transactions with affiliated companies is as follows (dollar amounts are in thousands):

 

Issue  Value at
5/31/20		   Purchase
cost		   Sales
proceeds		   Realized
gain
(loss)		   Change in
unrealized
appreciation
(depreciation)		   Dividend
income		   Value at
5/31/21		 
Nuveen Funds:                                   
Dividend Value  $25,143   $33,084   $8,779   $(514)      $19,633   $899   $68,567 
International Growth   —    37,102    1,708    (30)   4,751    —    40,115 
Santa Barbara Dividend Growth   —    57,426    5,031    1,830    8,517    441    61,086 
TIAA-CREF Funds:                                   
Core Plus Bond   330,320    123,430    45,604    2,505    2,910    9,240    410,752 
Emerging Markets Equity   27,694    4,030    16,725    4,159    7,406    174    24,653 
Growth & Income   76,107    5,165    40,711    12,933    11,421    754    61,184 
International Equity   33,380    20,226    14,311    376    16,616    619    56,287 
International Opportunities   32,493    6,833    11,148    2,130    10,586    190    40,125 
Large-Cap Growth   76,524    25,459    43,217    30,392    (4,647)   251    66,267 
Large Cap Growth Index   —    62,142    4,258    828    8,186    403    66,212 
Large-Cap Value   57,160    17,690    30,813    3,674    20,773    1,202    68,484 
Quant International Equity   38,796    210    42,360    934    2,420    743    — 
Quant International Small-Cap Equity   19,793    2,907    4,529    (349)   8,603    480    26,425 
Quant Large-Cap Growth   69,997    —    77,604    37,156    (24,921)   322    — 
Quant Large-Cap Value   25,088    4,301    30,805    6,110    (3,595)   379    — 
Quant Small-Cap Equity   12,670    5,225    7,751    1,285    7,858    114    19,287 
Quant Small/Mid-Cap Equity   12,786    5,494    5,415    919    8,557    140    22,122 
   $837,951   $410,724   $390,769   $104,338     $105,074     $16,351   $1,031,566 

 

Note 7—inter-fund lending program

 

Pursuant to an exemptive order issued by the SEC, the Fund may participate in an inter-fund lending program. This program allows the Fund to lend cash to and/or borrow cash from certain other affiliated Funds for temporary purposes, (e.g., to satisfy redemption requests or to cover unanticipated cash shortfalls). The program is subject to a number of conditions, including the requirement that the Fund may not borrow or lend money under the program unless it receives a more favorable interest rate than is available from a bank or other financial institution for a comparable transaction. In addition, the Fund may participate in the program only if its participation is consistent with the Fund’s investment policies and limitations

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 25
 
Notes to financial statements concluded

 

and authorized by its portfolio manager(s). During the year ended May 31, 2021, there were no inter-fund borrowing or lending transactions.

 

Note 8—line of credit

 

The Fund participates in a $1 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 15, 2021 expiring on June 14, 2022, replacing the previous facility, which expired June 2021. Certain affiliated accounts and mutual funds, each of which is managed by Advisors, or an affiliate of Advisors, also participate in this facility. An annual commitment fee for the credit facility is borne by the participating accounts and mutual funds on a pro rata basis. Interest associated with any borrowing under the facility is charged to the borrowing accounts or mutual funds at a specified rate of interest. The Fund is not liable for borrowings under the facility by other affiliated accounts or mutual funds. For the year ended May 31, 2021, there were no borrowings under this credit facility by the Fund.

 

26 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

Report of independent registered public accounting firm

 

To the Board of Trustees of TIAA-CREF Funds and Shareholders of TIAA-CREF Managed Allocation Fund

 

Opinion on the Financial Statements

 

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of TIAA-CREF Managed Allocation Fund (one of the funds constituting TIAA-CREF Funds hereafter referred to as the “Fund”) as of May 31, 2021, the related statement of operations for the year ended May 31, 2021, the statement of changes in net assets for each of the two years in the period ended May 31, 2021, including the related notes, and the financial highlights for each of the five years in the period ended May 31, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of May 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended May 31, 2021 and the financial highlights for each of the five years in the period ended May 31, 2021 in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 27
 
Report of independent registered public accounting firm concluded

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of May 31, 2021 by correspondence with the transfer agent. We believe that our audits provide a reasonable basis for our opinion.

 

/s/ PricewaterhouseCoopers LLP

Baltimore, Maryland
July 16, 2021

 

We have served as the auditor of one or more investment companies in TIAA-CREF Funds’ investment company group since 2005.

 

28 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

Important tax information (unaudited)

 

For the year ended May 31, 2021, the Fund designates $52,035,209 (or the maximum amount allowable) as being from net long-term capital gains.

 

For the year ended May 31, 2021, the Fund designates 29.0% (or the maximum amount allowable) of ordinary income dividends paid as qualified dividends.

 

For the year ended May 31, 2021, the Fund designates 21.0% (or the maximum amount allowable) of ordinary income dividends paid as qualifying for the corporate dividends received deduction.

 

During the year ended May 31, 2021, the Managed Allocation Fund received income of 2,451,260 ($0.03443 per share) from underlying funds that was from foreign sources, and has elected to pass through foreign taxes paid by underlying funds of $280,296 ($0.00394 per share).

 

The information and distributions reported herein may differ from the information and distributions reported to shareholders for the calendar year ending December 31, 2021 which will be reported in conjunction with your 2021 Form 1099-DIV.

 

By early 2022, shareholders should receive their Form 1099-DIV and a tax information letter from the Fund. For your specific situation, we recommend that you consult a professional tax adviser.

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 29
 

Trustees and officers (unaudited)

 

TIAA-CREF Funds  ■  May 31, 2021

 

Trustees

 

Name, Address and
Year of Birth (“YOB”)		   Position(s)
Held with
Fund		   Term of
Office and
Length
of Time
Served		   Principal Occupation(s) During Past 5 Years
and other relevant experience and qualifications		   Number of
Portfolios in
Fund Complex
Overseen
by Trustee		   Other Directorship(s)
Held by Trustee
Forrest Berkley
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1954		   Trustee   Indefinite term.
Trustee since 2006.		   Retired Partner (since 2006), Partner (1990–2005) and Head of Global Product Management (2003–2005), GMO (formerly, Grantham, Mayo, Van Otterloo & Co.) (investment management); and member of asset allocation portfolio management team, GMO (2003–2005).   88   Director, Save the Children Federation, Inc.; Investment Committee Member, Maine Community Foundation.
Joseph A. Boateng
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1963		   Trustee   Indefinite term.
Trustee since 2019.		   Chief Investment Officer, Casey Family Programs (since 2007). Director of U.S. Pension Plans at Johnson & Johnson (2002–2006). Manager, Financial Services Consultant, KPMG Consulting (2000–2002).   88   Board Member, Lumina Foundation and Waterside School; Investment Advisory Committee Chair, Seattle City Employees’ Retirement System; Investment Committee Member, The Seattle Foundation.
Janice C. Eberly
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		   Trustee   Indefinite term.
Trustee since 2018.		   James R. and Helen D. Russell Professor of Finance at the Kellogg School of Management, Northwestern University (2002–2011 and since 2013), Senior Associate Dean for Strategy and Academics (since 2020) and Chair of the Finance Department (2005–2007). Vice President, American Economic Association (2020). Assistant Secretary for Economic Policy, United States Department of the Treasury (2011–2013).   88   Member of the Board of the Office of Finance, Federal Home Loan Banks; Director, Avant, LLC.

 

30 2021 Annual Report  ■  TIAA-CREF  Managed Allocation Fund
 
Nancy A. Eckl
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		   Trustee   Indefinite term.
Trustee since 2007.		   Vice President (1990–2006), American Beacon Advisors, Inc., and of certain funds advised by American Beacon Advisors, Inc.   88   Independent Director, The Lazard Funds, Inc., Lazard Retirement Series, Inc., and Lazard Global Total Return and Income Fund, Inc.
Michael A. Forrester
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1967		   Trustee   Indefinite term.
Trustee since 2007.		   Chief Executive Officer (2014–2021) and Chief Operating Officer (2007–2014), Copper Rock Capital Partners, LLC. Chief Operating Officer, DDJ Capital Management (2003–2006).   88   Trustee, Dexter Southfield School; Member, Governing Council of the Independent Directors Council.
Howell E. Jackson
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1954		   Trustee   Indefinite term.
Trustee since 2005.		   James S. Reid, Jr. Professor of Law (since 2004), Senior Advisor to President and Provost (2010–2012), Acting Dean (2009), Vice Dean for Budget (2003–2006) and on the faculty (since 1989) of Harvard Law School.   88   Director, Commonwealth (non-profit organization).
Thomas J. Kenny
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1963		   Chairman of the Board and Trustee   Indefinite term.
Trustee since 2011; Chairman for term ending June 30, 2023. Chairman since September 13, 2017.		   Advisory Director (2010–2011), Partner (2004–2010), Managing Director (1999–2004) and Co-Head of Global Cash and Fixed Income Portfolio Management Team (2002–2010), Goldman Sachs Asset Management.   88   Director and Chair of the Finance and Investment Committee, Aflac Incorporated; Director and Investment Committee Member, Sansum Clinic; Director, ParentSquare; Member, University of California at Santa Barbara Arts and Lectures Advisory Council.
James M. Poterba
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1958		   Trustee   Indefinite term. Trustee since 2006.   President and Chief Executive Officer (since 2008) and Program Director (1990-2008), National Bureau of Economic Research. Mitsui Professor of Economics, Massachusetts Institute of Technology (“MIT”) (since 1996); Affiliated Faculty Member of the Finance Group, Alfred P. Sloan School of Management (since 2014); Head (2006–2008) and Associate Head (1994–2000 and 2001–2006), Economics Department of MIT.   88   Director, National Bureau of Economic Research; Trustee, Alfred P. Sloan Foundation; Member, Congressional Budget Office Panel of Economic Advisers.

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 31
 
Trustees and officers (unaudited) continued

 

TIAA-CREF Funds  ■  May 31, 2021

 

Trustees – concluded

 

Name, Address and
Year of Birth (“YOB”)		   Position(s)
Held with
Fund		   Term of
Office and
Length
of Time
Served		   Principal Occupation(s) During Past 5 Years
and other relevant experience and qualifications		   Number of
Portfolios in
Fund Complex
Overseen
by Trustee		   Other Directorship(s)
Held by Trustee
Maceo K. Sloan
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1949		   Trustee   Indefinite term.
Trustee since 1999.		   Chairman, President and Chief Executive Officer, Sloan Financial Group, Inc. (1991–2018); Chairman and Chief Executive Officer (1991–2016), Chief Investment Officer (1991–2013) and Chief Compliance Officer (2015–2016), NCM Capital Management Group, Inc.; Chairman, Chief Executive Officer (2003–2016), Chief Investment Officer (2003–2013) and Chief Compliance Officer (2015–2016), NCM Capital Advisers, Inc.; and Chairman, President and Principal Executive Officer, NCM Capital Investment Trust (2007–2012).   88   Director, TheraTrue Inc.
Laura T. Starks
c/o Corporate Secretary
730 Third Avenue
New York, NY 10017-3206
YOB: 1950		   Trustee   Indefinite term.
Trustee since 2006.		   Charles E. and Sarah M. Seay Regents Chair in Finance (since 2002), Co-Executive Director, Social Innovation Initiative (since 2015), Director, AIM Investment Center (2000–2016), Associate Dean for Research (2011–2016), Chairman, Department of Finance (2002–2011) and Professor (since 1987), McCombs School of Business, University of Texas at Austin. President (2019–2020), Vice President (2013–2018), Society of Financial Studies. President (since 2020), Vice President (2019–2020) American Finance Association.   88   Texa$aver Product Committee Member, Employees Retirement System of Texas.

 

32 2021 Annual Report  ■  TIAA-CREF  Managed Allocation Fund
 

Officers

 

Name, Address and
Year of Birth (“YOB”)		   Position(s)
Held with
Fund		   Term of
Office and
Length
of Time
Served		   Principal Occupation(s) During Past 5 Years
Richard S. Biegen
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		   Chief Compliance Officer   One-year term. Chief Compliance Officer since 2008.   Senior Managing Director, TIAA. Chief Compliance Officer of the College Retirement Equities Fund (“CREF”), TIAA Separate Account VA-1, TIAA-CREF Funds and TIAA-CREF Life Funds (collectively, the “TIAA-CREF Fund Complex”).
Derek B. Dorn
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1976		   Senior Managing Director and Corporate Secretary   One-year term. Senior Managing Director and Corporate Secretary since 2020.   Senior Managing Director and Corporate Secretary of Teachers Insurance and Annuity Association of America (“TIAA”) and the TIAA-CREF Fund Complex. Formerly, Managing Director, Special Assistant to the CEO, and Managing Director, Regulatory Affairs, TIAA. Prior to joining TIAA, Mr. Dorn served as a partner at Davis & Harman LLP and an adjunct professor of Law at Georgetown University Law Center.
Bradley Finkle
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1973		   Principal Executive Officer and President   One-year term. Principal Executive Officer and President since 2017.   Chief Operating Officer, Nuveen. Principal Executive Officer and President of the TIAA-CREF Funds and TIAA-CREF Life Funds. Chief Executive Officer and President of CREF and TIAA Separate Account VA-1. Formerly, Senior Managing Director, Co-Head Nuveen Equities & Fixed Income and President of TIAA Investments.
Jose Minaya
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1971		   Executive Vice President   One-year term. Executive Vice President since 2018.   Chief Executive Officer, Nuveen. Executive Vice President of the TIAA-CREF Fund Complex. Formerly, Executive Vice President, President and Chief investment Officer, Nuveen; Executive Vice President, Chief Investment Officer and President, Nuveen Global Investments; and Senior Managing Director, President, Global Investments, TIAA.
David Nason
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1970		   Executive Vice President   One-year term. Executive Vice President since 2020.   Senior Executive Vice President, Chief Legal, Risk and Compliance Officer of TIAA. Executive Vice President of the TIAA-CREF Fund Complex. Formerly, Executive Vice President, Chief Risk and Compliance Officer, TIAA. Prior to joining TIAA, Mr. Nason served as President and CEO of GE Energy Financial Services.

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 33
 
Trustees and officers (unaudited) concluded

 

 

TIAA-CREF Funds  ■  May 31, 2021

 

Officers – concluded

 

Name, Address and
Year of Birth (“YOB”)		   Position(s)
Held with
Fund		   Term of
Office and
Length
of Time
Served		   Principal Occupation(s) During Past 5 Years
Phillip T. Rollock
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1962		   Executive Vice President and Chief Legal Officer   One-year term. Executive Vice President and Chief Legal Officer since 2018.   Executive Vice President and Chief Legal Officer of TIAA and the TIAA-CREF Fund Complex. Formerly, Executive Vice President, Deputy Chief Legal Officer, TIAA and Senior Managing Director, Senior General Counsel and Corporate Secretary of TIAA and the TIAA-CREF Fund Complex.
E. Scott Wickerham
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1973		   Principal Financial Officer, Principal Accounting Officer and Treasurer   One-year term. Principal Financial Officer, Principal Accounting Officer and Treasurer since 2017.   Senior Managing Director, Head, Publics Investment Finance, Nuveen. Principal Financial Officer, Principal Accounting Officer and Treasurer of the TIAA-CREF Fund Complex; and Vice President and Controller of the Nuveen Funds. Formerly, Managing Director, Head, TC Fund Administration, Nuveen.
Sean N. Woodroffe
TIAA
730 Third Avenue
New York, NY 10017-3206
YOB: 1963		   Executive Vice President   One-year term. Executive Vice President since 2018.   Senior Executive Vice President, Chief Human Resources Officer of TIAA, and Executive Vice President of the TIAA-CREF Fund Complex. Prior to joining TIAA, Mr. Woodroffe served as Chief People Officer at National Life Group.

Please note that the Funds’ Statement of Additional Information (SAI) includes additional information about the Funds’ trustees and is available, without charge, through our website, TIAA.org, or by calling 800 223-1200.

 

34 2021 Annual Report  ■  TIAA-CREF  Managed Allocation Fund
 

Approval of investment management agreement (unaudited)

 

Board renewal of the investment management agreement for the TIAA-CREF Managed Allocation Fund

 

The Board of Trustees (the “Board” or the “Trustees”) of the TIAA-CREF Funds (the “Trust”) determines whether to initially approve and periodically renew the investment management agreement (the “Agreement”) between Teachers Advisors, LLC (“Advisors”) and the Trust on behalf of each series of the Trust. Under the Agreement, Advisors is responsible for providing investment advisory services to each series of the Trust and overseeing the everyday operations and other service providers of the Trust. Below is a summary of the process the Board undertook related to its most recent renewal of the Agreement with respect to the TIAA-CREF Managed Allocation Fund (the “Fund”).

 

Section 15(c) of the Investment Company Act of 1940, as amended (the “1940 Act”), requires that, after an initial period of up to two years, the Agreement for the Fund will remain in effect only if the Board, including a majority of those Trustees who have no direct or indirect interest in the Agreement, and who are independent Trustees because they are not “interested persons” of the Trust, as that term is defined in the 1940 Act, annually renews the Agreement. None of the Trustees is an interested person of the Trust under the 1940 Act. Rather, they are all deemed to be independent Trustees.

 

Under normal circumstances, Section 15(c) requires any initial approval or annual renewal of an investment management agreement to be made at an in-person meeting of the Board. However, due to the COVID-19 pandemic, the Securities and Exchange Commission (“SEC”) issued a temporary, conditional exemptive order (the “SEC Order”), permitting mutual fund boards to vote to approve matters subject to the Section 15(c) in-person approval requirement at a meeting that is not held in person if the board determines that reliance on the SEC Order is necessary or appropriate due to prevailing circumstances related to the current or potential effects of COVID-19 and the board ratifies any action taken pursuant to the SEC Order at its next in-person meeting.

 

Overview of the renewal process

 

The Board held a videoconference meeting on March 12, 2021, in order to consider the annual renewal of the Agreement with respect to the Fund using the process established by the Board described further below. At the outset of the meeting, the Board considered reliance upon the SEC Order and determined that such reliance was necessary due to, among other considerations, COVID-19 pandemic-related social distancing requirements, travel restrictions and other governmental mandates imposed for health and safety reasons. The Board noted that it would ratify actions taken at this meeting pursuant to the SEC Order at its next in-person meeting.

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 35
 

Approval of investment management agreement (unaudited)

 

As part of the Board’s established process, the Board delegated certain tasks to its Operations Committee. Among these tasks, the Operations Committee or certain of its designated members worked with Advisors, other Board members and legal counsel to the Trustees to develop guidance and specific requests relating to the types of information to be provided to the Board in connection with the proposed contract renewals.

 

Among other matters, the Operations Committee or certain of its designated members, following consultations with representatives of Advisors, other Board members, legal counsel to the Trustees and legal counsel to Advisors and the Trust, confirmed or established certain guidance regarding the preparation of reports to be provided to the Board with respect to Fund by the Board Reporting and Compliance unit of Broadridge Financial Solutions, Inc. (“Broadridge”), using data from Lipper, Inc., an independent provider of investment company data. The Operations Committee considered that Broadridge is widely recognized as a leading provider of comparative analyses used by independent directors and trustees of investment companies during their advisory contract review processes.

 

Based on guidance provided by the Operations Committee or certain of its designated members on behalf of the Board, Broadridge produced, among other information, comparative performance and expense data for the Fund, including data relating to the Fund’s management fee rate, total expense ratio, short-term and long-term investment performance and portfolio turnover rate. Broadridge compared this data, as relevant, for the Fund against a universe of investment companies and against a more selective peer group of mutual funds with similar investment objectives and strategies, each of which was selected by Broadridge, and also compared the performance of the Fund against one or more appropriate broad-based indices. In each case, Broadridge summarized, and the Board considered, the methodologies Broadridge employed to provide the data contained in its reports. In addition, Broadridge represented to the Board that its reports were designed specifically to provide the Board with the fee, expense and performance information that is necessary to help the Board satisfy its duties under Section 15(c) of the 1940 Act. Broadridge also represented that the purpose of its reports is to provide an objective view of the Fund’s relative position regarding the level of fees, expenses and performance against a competitive peer group and universe (as applicable) selected by Broadridge (and not Advisors or the Board). The Board considered the propriety of the Fund’s applicable peer group as selected by Broadridge and use of the Institutional Class shares as the base share class for comparison purposes.

 

In advance of the Board meeting held on March 12, 2021, legal counsel for the Trustees requested on behalf of the Board, and Advisors provided, information that was designed to assist the Board in its consideration of whether to renew the Agreement for the Fund. In addition to the data provided by Broadridge as described above, this information included, but was not limited to, the following: (1) further information relating to the Fund’s investment performance and an explanation of any

 

36 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

continued

 

events that had a material impact on the Fund’s performance during that period; (2) a description of any fee waiver or expense reimbursement arrangements that were proposed or were in place during the prior year and the extent to which such arrangements would be continued or modified in the coming year; (3) a comparison of the Fund’s management fee rate and performance to other accounts with comparable strategies managed by Advisors or certain of its affiliates; (4) any “fall-out” benefits that accrued or were identified as reasonably likely to accrue to Advisors or its affiliates due to their relationship with the Fund in addition to the Fund’s direct fee payments to Advisors pursuant to the Agreement; (5) information regarding Advisors’ financial resources, senior professional personnel, overall staffing levels, portfolio manager compensation arrangements, capacity to manage the Fund at current and foreseeable asset levels, insurance coverage, portfolio trading and best execution practices, and any actual and potential conflicts of interest identified by Advisors in connection with rendering services to the Fund; (6) information as to any profits earned by Advisors in connection with its services pursuant to the Agreement; (7) a copy of the Agreement and certain related agreements between the Fund and affiliates of Advisors; (8) a copy of Advisors’ Form ADV as filed with the SEC (which was presented only to legal counsel for the Trustees); and (9) proposed narrative explanations of reasons why the Board should renew the Agreement. The Trustees were also provided with performance ratings of Morningstar, Inc. (“Morningstar”), which is a widely recognized mutual fund ranking service. Additionally, the Board received information from management on the impact of the COVID-19 pandemic on the Teachers Insurance and Annuity Association of America (“TIAA”) enterprise generally and the Fund in particular including, among other information, the current and expected impact on the Fund’s performance and operations.

 

On March 4, 2021, the Board held a videoconference meeting with legal counsel to the Trustees to discuss Advisors’ materials, which led to the Trustees providing additional questions to, and requesting additional information from, Advisors. Subsequently, at the March 12, 2021 meeting, the Trustees were given the opportunity to, and did, ask additional questions and they discussed responses from Advisors to the Board’s follow-up questions and requests presented by the Board after its initial review of the information described above.

 

In considering whether to renew the Agreement with respect to the Fund, the Board considered various factors, including: (1) the nature, extent and quality of services provided or to be provided by Advisors to the Fund; (2) the Fund’s investment performance; (3) the costs of the services provided to the Fund and the profits realized or potential profits to be realized (if any) by Advisors from their relationship with the Fund; (4) fees charged to comparable mutual funds by other advisers; (5) the extent to which economies of scale have been realized or are anticipated to be realized as the Fund grows; (6) how such economies of scale are shared with the Fund for the benefit of its investors, such as, if applicable, through management fee breakpoints; (7) comparisons, if applicable, of the services provided by Advisors to, and the fee rates and performance of, the Fund to other clients to whom Advisors

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 37
 

Approval of investment management agreement (unaudited)

 

provides comparable services; and (8) any other benefits identified by Advisors derived or anticipated to be derived by Advisors or its affiliates from their relationship with the Fund. As a general matter, the Board considered these factors, and any other factors deemed relevant by the Trustees, in their totality, and no single factor was identified as being the determining factor in deciding whether to renew the Agreement.

 

In addition to the March 12, 2021 meeting that included Advisors’ personnel, the Trustees met in executive sessions, at which no representatives of Advisors were present, to discuss the proposed renewal of the Agreement for the Fund. The Board also received and considered information from its legal counsel as to certain relevant guidance that relates to the renewal process under Section 15(c) of the 1940 Act and certain other legal authorities.

 

While the contract renewal process included a series of discussions and meetings leading up to the March 12, 2021 meeting, the oversight and evaluation of Advisors’ services to the Fund by the Board and its Committees is an ongoing process. The Board, as well as its Committees, discussed reports on various investment and operational topics that had been identified by the Board or its Committees for review in the year since the last annual renewal process. Further, at their regularly scheduled meetings, the Board and its Investment Committee and its other Committees receive and discuss information regarding the performance of the Fund and other matters. Thus, in reaching its decisions regarding the renewal of the Agreement for the Fund, the Board took into account the information described herein and other information provided to the Board and its Committees throughout the year.

 

The Board received and considered both Trust-level and Fund-specific information, but made its renewal determinations on a Fund-level basis. In deciding whether to renew the Agreement for the Fund, each Trustee may have accorded different weight to different factors and, thus, may have had a different basis for his or her ultimate decision to vote to renew the Agreement for the Fund. At its meeting on March 12, 2021, all Board members voted unanimously to renew the Agreement for the Fund. Set forth below is a summary of the primary factors the Board considered with respect to the Fund.

 

The nature, extent and quality of services

 

The Board considered the level and depth of knowledge of Advisors, including the professional experience and qualifications of its personnel. The Board also considered that Advisors is an experienced investment adviser that has managed the Fund since its operations commenced. Investment professionals at Advisors also manage various other funds and accounts of the Trust, College Retirement Equities Fund, the TIAA-CREF Life Funds and TIAA Separate Account VA-1, as well as advise and sub-advise other investment companies and vehicles. Under the Agreement, Advisors is responsible for, among other duties: managing the assets of the Fund

 

38 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

continued

 

(which is a fund of funds that may invest its assets in the securities of affiliated and unaffiliated investment companies or other investment pools, referred to as “Underlying Funds”), including conducting research, identifying investments and placing orders to buy and sell shares of Underlying Funds for the Fund’s investment portfolio; active daily monitoring of the Fund’s investment portfolios; reporting on the investment performance and other metrics of the Fund to the Board on a regular basis; responding to Fund flows; compliance monitoring; coordinating the activities of the Fund’s service providers; and overseeing the provision of various administrative services to the Fund. The Board considered that Advisors has carried out these responsibilities in a competent and professional manner. The Board also considered that Advisors has committed significant resources to supporting the series of the Trust, including the Fund. It also considered Advisors’ compliance program and resources and its compliance record with respect to the Fund.

 

The Board also considered, among other factors, the performance of the Fund, as discussed below. In addition, the Board considered the nature and quality of non-portfolio management services provided by Advisors and its affiliates. In this regard, the Board considered its ongoing review of the performance of certain affiliated and unaffiliated service providers, including the quality of services provided by those firms and Advisors’ oversight of those service providers and the outsourcing of certain services to other firms.

 

During its review, the Board noted its ongoing efforts to examine the level of personnel and other resources available to Advisors to provide portfolio management and other services to the Fund, including the impact of recent and anticipated regulatory requirements and operational changes on such resources, so as to assess the adequacy of the resources devoted to these services.

 

Investment performance

 

The Board considered the investment performance of the Fund over the one-, three-, five- and ten-year periods ended December 31, 2020. The Board considered the Fund’s performance as compared to its peer group and peer universe and its benchmark index. For details regarding the Fund’s performance, see the synopsis below. The Board concluded that, under the totality of circumstances considered, the investment performance of the Fund was reasonable.

 

Cost and profitability

 

The Board considered financial and profitability data relating to Advisors’ services to the Fund for the calendar year 2020. The Board considered Advisors’ profit calculations with respect to its services to the Fund both before and after taking into account the costs incurred directly or indirectly by Advisors in connection with the distribution of shares of the Fund. The Board considered that Advisors had incurred a net loss with respect to the Fund in 2020, which was because Advisors did not charge the Fund any fees under the Agreement. The Board also acknowledged

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 39
 

Approval of investment management agreement (unaudited)

 

certain fee waivers and reimbursements of expenses above specified amounts undertaken by Advisors with respect to many of the Underlying Funds which, in turn, reduce the expenses of the Fund. The Board also recognized Advisors’ commitment to reimburse Fund expenses to the extent that total annual operating expenses exceeded certain specified amounts. The Board also considered that, in the aggregate, Advisors had generated indirect earnings with respect to the Fund’s investment in Underlying Funds also managed by Advisors.

 

Fees charged by other advisers

 

The Board considered comparative information regarding the Fund’s contractual and effective management fee rates and the contractual and effective management fee rates paid by similar mutual funds to other advisers, as analyzed by Broadridge and reflected in the synopsis below. The Board acknowledged that Advisors did not charge a management fee to the Fund.

 

Economies of scale

 

The Board considered whether Advisors has experienced or is anticipated to experience economies of scale in connection with the operation of the Fund. The Board also considered that because Advisors operated the Fund at a loss and did not charge the Fund a management fee, there had been little opportunity to pass on economies of scale to Fund shareholders. Based on all factors considered, the Board concluded that the Fund’s management fee rate schedule was reasonable in light of current economies of scale considerations and the Fund’s current asset level.

 

Fee and performance comparisons with other Advisors clients

 

The Board considered that Advisors provides investment management services to other investment companies, including foreign funds (UCITS), and separately managed accounts. However, the Board acknowledged that Advisors did not charge a management fee to the Fund.

 

Other benefits

 

The Board also considered additional “fall-out benefits” to Advisors and its affiliates arising from the Agreement. Such benefits include, among others, other fees paid by the Fund to Advisors or its affiliates for other services, such as distribution, administration and investment-related benefits and/or personnel with other clients of Advisors, such as economies of scale to the extent the Fund shares investment resources Advisors and its affiliates may also benefit from the level of business and relationships the Fund has with certain service providers. Advisors and/or its affiliates also may benefit to the extent that the Fund adds scale to the TIAA-CREF Underlying Funds. Additionally, the Fund may be utilized as an investment option for other products and businesses of Advisors and its affiliates, such as variable products, fund of funds

 

40 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

continued

 

and 529 education savings plans. Also, Advisors and its affiliates may benefit from their relationship with the Fund to the extent that this relationship results in potential investors viewing TIAA, of which Advisors is an indirect, wholly-owned subsidiary, as a leading retirement plan provider in the academic and non-profit markets and as a single source for all their financial service needs.

 

Synopsis of factors

 

The Board considered the following specific factors (among others) in connection with its determination to renew the Agreement with respect to the Fund. When the Fund is described in the following discussion as being in the “1st” quintile, it is in the best of five groups (that is, the group has the best performance or the lowest expenses, as the case may be). References below to quintiles are based on data provided to the Board in the reports prepared by Broadridge. The specific management fee, expense and performance factors outlined below are based on the Institutional Class shares of the Fund. Because the Institutional Class generally has lower non-management expenses than the other classes of the Fund, the expenses and performance of these other classes will differ from the expenses and performance shown for the Institutional Class. All time periods referenced below are ended December 31, 2020. Under the Morningstar rating system, an Overall Morningstar Rating of 5 stars is the highest (best) rating category and 1 star is the lowest (worst) rating category. The Morningstar data is as of December 31, 2020. The statement below regarding “net loss” refers to Advisors’ calculation that it incurred a loss for the services that it rendered to a Fund during 2020 under the Agreement.

 

• The Fund’s annual contractual management fee rate is 0.00% of average daily net assets.
• The Fund’s total expense ratio was in the 1st qsuintile of both the group of comparable funds selected by Broadridge for expense comparison purposes (“Expense Group”) and the universe of comparable funds selected by Broadridge for expense comparison purposes (“Expense Universe”). The Fund did not have an Expense Group or Expense Universe with respect to its actual management fee rate and contractual management fee rate because the Fund is not charged a management fee.
• The Fund was in the 1st quintile of the group of comparable funds selected by Broadridge for performance comparison purposes (“Performance Group”) for the one-, three- and five-year periods, and ranked 1 out of 4 funds within its Performance Group for the ten-year period. The Fund was in the 1st quintile of the universe of comparable funds selected by Broadridge for performance comparison purposes for each of the one-, three-, five- and ten-year periods.
• The Fund received an Overall Morningstar Rating of 4 stars.
• Advisors calculated that it incurred a net loss with respect to its services to the Fund for the one-year period without taking into account profits Advisors earned

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 41
 
Approval of investment management agreement (unaudited) concluded

 

with respect to the Underlying Funds that are also managed by Advisors in which this Fund invests.

 

 

 

Based primarily on the foregoing factors and considerations, the Board renewed the Agreement for the Fund.

 

42 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

Liquidity risk management program

 

Discussion of the operation and effectiveness of the Fund’s liquidity risk management program

 

In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), the series of the Trust covered by this Report (the “Fund”) has adopted and implemented a liquidity risk management program (the “Program”), which is reasonably designed to assess and manage the Fund’s liquidity risk. The Program consists of various provisions relating to assessing and managing Fund liquidity risk, as discussed further below. The Fund’s Board of Trustees (the “Board”) previously approved the designation of Advisors (the “Administrator”) as Program administrator. The Liquidity Monitoring and Analysis Team (the “LMAT”) carries out day-to-day Program management with oversight by the Liquidity Oversight Committee (the “LOSC”). Personnel from the Administrator and Nuveen Fund Advisors, LLC, an affiliate of the Administrator, comprise the LMAT and LOSC.

 

At a February 9, 2021 Board meeting, the Administrator provided the Board with a written report addressing the Program’s operation, adequacy, and effectiveness of implementation for the period from January 1, 2020 through December 31, 2020 (the “Review Period”), as required under the Liquidity Rule. The report noted that the Program has been and continues to be adequately and effectively implemented to monitor and (as applicable) respond to the Fund’s liquidity developments.

 

In accordance with the Program, the LMAT assesses the Fund’s liquidity risk no less frequently than annually based on various factors, such as (i) the Fund’s investment strategy and the liquidity of portfolio investments, (ii) cash flow projections, and (iii) holdings of cash and cash equivalents and borrowing arrangements and other funding sources. Certain factors are considered under both normal and reasonably foreseeable stressed conditions.

 

Fund portfolio investments are classified into one of four liquidity categories (including “highly liquid investments” and “illiquid investments,” discussed below). The classification is based on a determination of how long it is reasonably expected to take to convert the investment into cash, or sell or dispose of the investment, in current market conditions without significantly changing the market value of the investment. Liquidity classification determinations take into account various market, trading, and investment-specific considerations, as well as market depth, and utilize third-party vendor data.

 

A Fund that does not primarily hold highly liquid investments must, among other things, determine a minimum percentage of Fund net assets that must be invested in highly liquid investments (a “Highly Liquid Investment Minimum”). During the Review Period, the Fund primarily held highly liquid investments and therefore was exempt from the requirement to adopt a Highly Liquid Investment Minimum and to comply with the related requirements under the Liquidity Rule.

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 43
 
Liquidity risk management program concluded

 

The Liquidity Rule also limits the Fund’s investments in illiquid investments. Specifically, the Liquidity Rule prohibits acquisition of illiquid investments if doing so would result in the Fund holding more than 15% of its net assets in illiquid investments and requires certain reporting anytime a Fund’s holdings of illiquid investments exceed 15% of net assets. During the Review Period, the Fund did not exceed the 15% limit on illiquid investments.

 

44 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

Additional information about index providers (unaudited)

 

Russell Indexes

 

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.

 

MSCI Indexes

 

Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)

 

Bloomberg Barclays Indexes

 

Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

 

TIAA-CREF Managed Allocation Fund  ■  2021 Annual Report 45
 
Additional information about index providers (unaudited) concluded

 

Morningstar Index

 

©2021 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

 

46 2021 Annual Report  ■  TIAA-CREF Managed Allocation Fund
 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

[This page intentionally left blank.]

 

How to reach us

 

Websites

 

TIAA.org

 

nuveen.com

 

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

 

 

You should carefully consider the investment objectives, risks, charges and expenses of any fund before investing. For a prospectus that contains this and other 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 Federal Deposit Insurance Corporation (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. Nuveen, a subsidiary of TIAA, provides investment advice and portfolio management services through a dozen affiliated registered investment advisers. Nuveen Securities, LLC and TIAA-CREF Individual & Institutional Services, LLC, members FINRA, distribute securities products.

 

This material is for informational or educational purposes only and does not constitute fiduciary investment advice under ERISA, a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor’s own objectives and circumstances.

 

 

©2021 Teachers Insurance and Annuity Association of America—College Retirement Equities Fund, 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

 

1655025 A12452 (7/21)
 

 

 

 

Printed on paper containing recycled fiber

 

1655025 A12452 (7/21)
 

 

 

1655025 A12452 (7/21)
 

Item 2. Code of Conduct.

 

2(a) The Board of Trustees of the TIAA-CREF Funds (the “Registrant”) has adopted a code of conduct for senior financial officers, including the Registrant’s principal executive officer, principal financial officer, principal accounting officer, or controller, and persons performing similar functions, in conformity with rules promulgated under the Sarbanes-Oxley Act of 2002.

 

2(b) No response required.

 

2(c) During the reporting period, there were no amendments to the code of conduct.

 

2(d) During the reporting period, there were no implicit or explicit waivers granted by the Registrant from any provision of the code of conduct.

 

2(e) Not applicable.

 

2(f) A copy of the current code of conduct is filed as an exhibit to this Form N-CSR.

 

Item 3. Audit Committee Financial Expert.

 

3(a)(1) The Registrant’s Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its Audit and Compliance Committee.

 

3(a)(2) Maceo K. Sloan is the Registrant’s audit committee financial expert and is “independent” for purposes of Item 3 of Form N-CSR.

 

Item 4. Principal Accountant Fees and Services.

 

PricewaterhouseCoopers LLP (“PwC”) performs independent audits of the Registrant’s financial statements. To maintain auditor independence and avoid even the appearance of conflicts of interest, the Registrant, as a policy, does not engage PwC for management advisory or consulting services.

 

The aggregate fees billed by PwC as disclosed below for the fiscal years ended May 31, 2021 and May 31, 2020 may not align with the figures reported and filed with the Securities and Exchange Commission in Form N-CEN or Form N-CSR for each period, respectively, (SEC File No. 811-09301) because the fees disclosed in this proxy statement reflect fees updated after the date of that Form N-CEN or Form N-CSR for the relevant period.

 

4(a) Audit Fees.

 

For the fiscal years ended May 31, 2021 and May 31, 2020, PwC’s aggregate fees for the audit of the Registrant’s annual financial statements were $491,120 and $494,557, respectively.

 

4(b) Audit Related Fees.

 

For the fiscal years ended May 31, 2021 and May 31, 2020, PwC’s aggregate fees for services related to the performance of the audit of the Registrant’s annual financial statements were $0 and $0, respectively.

 

For the fiscal years ended May 31, 2021 and May 31, 2020, the Audit-Related Fees billed by PwC to Teachers Advisors, LLC (“Advisors”) or to any entity controlling, controlled by or under common control with Advisors that provides ongoing services to the Registrant (collectively, “Fund Service Providers”) were $0 and $0, respectively.

 

4(c) Tax Fees.

 

For the fiscal years ended May 31, 2021 and May 31, 2020, PwC’s aggregate fees for tax services billed to the Registrant were $0 and $0, respectively.

 

For the fiscal years ended May 31, 2021 and May 31, 2020, the Tax Fees billed by PwC to the Fund Service Providers were $0 and $0, respectively.

 

4(d) All Other Fees.

 

For the fiscal years ended May 31, 2021 and May 31, 2020, PwC’s aggregate fees for all other services billed to the Registrant were $0 and $12,753, respectively.

 

For the fiscal years ended May 31, 2021 and May 31, 2020, PwC’s aggregate fees for all other services billed to the Fund Service Providers were $0 and $0, respectively.

 

4(e)(1) Preapproval Policy.

 

The Registrant’s audit and compliance committee (“Audit Committee”) has adopted a Preapproval Policy for External Audit Firm Services (the “Policy”). The Policy describes the types of services that may be provided by the independent auditor to the Registrant and certain of its affiliates without impairing the auditor’s independence. Under the Policy, the Audit Committee is required to preapprove all services to be performed by the Registrant’s independent auditor in order to ensure that such services do not impair the auditor’s independence.

 

The Policy requires the Audit Committee to: (i) appoint the independent auditor to perform the financial statements audit for the Registrant and certain of its affiliates, including approving the terms of the engagement, and (ii) preapprove the audit, audit-related, tax and other services to be provided by the independent auditor to the Registrant and certain of its affiliates and the fees to be charged for provision of such services from year to year.

 

4(e)(2) Services provided pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (the “de minimis exception”):

 

Audit-Related Fees.

 

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended May 31, 2021 and May 31, 2020 on behalf of the Registrant.

 

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended May 31, 2021 and May 31, 2020 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of the Registrant.

 

Tax Fees.

 

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended May 31, 2021 and May 31, 2020 on behalf of the Registrant.

 

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended May 31, 2021 and May 31, 2020 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of the Registrant.

 

All Other Fees.

 

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended May 31, 2021 and May 31, 2020 on behalf of the Registrant.

 

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended May 31, 2021 and May 31, 2020 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of the Registrant.

 

4(f) The percentage of hours expended by PwC’s engagement to audit the Registrant’s financial statements for the most recent fiscal year attributable to work performed by persons other than PwC’s full-time, permanent employees was less than 50%.

 

4(g) Non-Audit Fees for Related Entities.

 

For the fiscal years ended May 31, 2021 and May 31, 2020, aggregate non-audit fees billed to the Registrant and to its Fund Service Providers by PwC were $374,917 and $304,917, respectively.

 

4(h) The Registrant’s Audit Committee has considered whether the non-audit services that were rendered by PwC to the Registrant’s Fund Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X are compatible with maintaining PwC’s independence.

 

Item 5. Audit Committee of Listed Registrants.

 

Not Applicable.

 

Item 6. Schedule of Investments.

 

Not Applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not Applicable.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

 

Not Applicable.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

Not Applicable.

 

Item 10. Submission of Matters to a Vote of Security Holders.

 

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.

 

Item 11. Controls and Procedures.

 

(a) An evaluation was performed within 90 days of the filing date of the report under the supervision of the Registrant’s management, including the principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on that evaluation, the Registrant’s management, including the principal executive officer and principal financial officer, concluded that the Registrant’s disclosure controls and procedures were effective for this annual reporting period.

 

(b) There were no changes in the Registrant’s internal control over financial reporting that occurred during the Registrant’s annual period covered by this report that materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

 

Not Applicable.

 

Item 13. Exhibits.

 

13(a)(1) Copy of current SOX code of conduct for Senior Financial Officers

13(a)(2)(i) Section 302 certification of the principal executive officer

13(a)(2)(ii) Section 302 certification of the principal financial officer

13(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:  July 16, 2021 By: /s/Bradley Finkle
    Bradley Finkle
    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:  July 16, 2021 By: /s/Bradley Finkle
    Bradley Finkle
    Principal Executive Officer and President
(principal executive officer)
     
Dated:  July 16, 2021 By: /s/E. Scott Wickerham
    E. Scott Wickerham
    Principal Financial Officer, Principal Accounting Officer and Treasurer
(principal financial officer)