N-CSR 1 d424468dncsr.htm TIAA-CREF FUNDS TIAA-CREF Funds

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: October 31

Date of reporting period: October 31, 2022


Item 1.


Equity
Funds
TIAA-CREF
Annual
Report
TIAA-CREF
Funds
October
31,
2022
The
annual
report
contains
the
audited
financial
statements.
Fund
name
Institutional
Class
Advisor
Class
Premier
Class
Retirement
Class
Retail
Class
Class
W
2.1
Growth
&
Income
Fund
TIGRX
TGIHX
TRPGX
TRGIX
TIIRX
TGIWX
2.2
Large-Cap
Growth
Fund
TILGX
TILHX
TILPX
TILRX
TIRTX
TILWX
2.3
Large-Cap
Value
Fund
TRLIX
TRLHX
TRCPX
TRLCX
TCLCX
TRLWX
2.4
Mid-Cap
Growth
Fund
TRPWX
TCMHX
TRGPX
TRGMX
TCMGX
2.5
Mid-Cap
Value
Fund
TIMVX
TRVHX
TRVPX
TRVRX
TCMVX
2.6
Quant
Small-Cap
Equity
Fund
TISEX
TSCHX
TSRPX
TRSEX
TCSEX
TSCWX
2.7
Quant
Small/Mid-Cap
Equity
Fund
TSMWX
TSMNX
TSMMX
TSMOX
TSMEX
TSMUX
2.8
Social
Choice
Equity
Fund
TISCX
TICHX
TRPSX
TRSCX
TICRX
2.9
Social
Choice
Low
Carbon
Equity
Fund
TNWCX
TCCHX
TPWCX
TEWCX
TLWCX
3.01
Emerging
Markets
Equity
Fund
TEMLX
TEMHX
TEMPX
TEMSX
TEMRX
TEMVX
3.1
International
Equity
Fund
TIIEX
TIEHX
TREPX
TRERX
TIERX
TIEWX
3.2
International
Opportunities
Fund
TIOIX
TIOHX
TIOPX
TIOTX
TIOSX
TIOVX
3.3
Quant
International
Small-Cap
Equity
Fund
TIISX
TAISX
TPISX
TTISX
TLISX
TAIWX
3.4
Social
Choice
International
Equity
Fund
TSONX
TSOHX
TSOPX
TSOEX
TSORX
Contents
Understanding
this
report
3
Letter
to
investors
4
Market
monitor
6
About
the
funds’
benchmarks
7
Fund
performance
Portfolio
managers’
comments
8
Growth
&
Income
Fund
19
Large-Cap
Growth
Fund
21
Large-Cap
Value
Fund
23
Mid-Cap
Growth
Fund
25
Mid-Cap
Value
Fund
27
Quant
Small-Cap
Equity
Fund
29
Quant
Small/Mid-Cap
Equity
Fund
31
Social
Choice
Equity
Fund
33
Social
Choice
Low
Carbon
Equity
Fund
35
Emerging
Markets
Equity
Fund
37
International
Equity
Fund
39
International
Opportunities
Fund
41
Quant
International
Small-Cap
Equity
Fund
43
Social
Choice
International
Equity
Fund
45
Expense
examples
47
Portfolio
of
investments
53
Audited
financial
statements
Statements
of
assets
and
liabilities
146
Statements
of
operations
154
Statements
of
changes
in
net
assets
158
Financial
highlights
164
Notes
to
financial
statements
192
Report
of
Independent
Registered
Public
Accounting
Firm
206
Important
tax
information
207
Additional
fund
information
209
Trustees
and
officers
210
Additional
information
about
index
providers
213
How
to
reach
us
Inside
Back
Cover
3
TIAA-CREF
Funds:
Equity
Funds
2022
Annual
Report
Understanding
this
report
For
the
purposes
of
this
report,
“TIAA-CREF
Funds”
refers
only
to
the
TIAA-CREF
Equity
Funds
listed
on
the
cover
of
this
report.
This
annual
report
contains
information
about
certain
TIAA-CREF
Funds
and
describes
their
results
for
the
twelve
months
ended
October
31,
2022
.
The
report
contains
four
main
sections:
A
letter
from
Brad
Finkle,
Principal
Executive
Officer
and
President
of
the
TIAA-CREF
Funds
and
TIAA-CREF
Life
Funds.
The
fund
performance
section
compares
each
fund’s
investment
returns
with
those
of
its
benchmark
index.
The
portfolios
of
investments
list
the
industries
and
types
of
securities
in
which
each
fund
had
investments
as
of
October
31,
2022
.
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.
4
2022
Annual
Report
TIAA-CREF
Funds:
Equity
Funds
Letter
to
investors
Brad
Finkle
Global
stocks
posted
losses
for
the
twelve
months
ended
October
31,
2022.
The
U.S.
economy
fluctuated
during
the
period,
experiencing
both
contraction
and
expansion.
The
Federal
Reserve
responded
to
growing
inflationary
pressure
by
aggressively
tightening
monetary
policy.
Other
economies
around
the
world
generally
grew
at
a
moderate
pace,
but
persistent
inflation
was
a
common
concern.
For
the
twelve
months:
The
Russell
3000®
Index,
which
measures
the
performance
of
the
broad
U.S.
stock
market,
returned
−16.5%.
Please
see
page
7
for
benchmark
definitions.
The
MSCI
EAFE®
Index,
which
represents
stocks
in
21
developed-markets
nations
outside
North
America,
returned
−23.0%.
The
MSCI
Emerging
Markets
Index,
which
tracks
the
performance
of
stocks
in
24
developing
nations,
returned
−31.0%.
Institutional
class
returns
were
negative
for
all
14
TIAA-CREF
Equity
Funds.
However,
six
of
the
funds
outperformed
their
respective
benchmarks
for
the
period.
U.S.
economy
produced
mixed
results
Domestic
stocks
recorded
declines
for
the
twelve
months
as
concerns
over
inflation
and
rising
interest
rates
strained
financial
markets.
The
U.S.
economy
grew
at
a
strong
pace
in
the
fourth
quarter
of
2021,
but
it
contracted
over
the
following
two
quarters
before
expanding
again
in
the
third
quarter
of
2022.
Unemployment
declined,
while
inflation
accelerated
over
the
twelve
months.
The
Fed
raised
the
federal
funds
target
rate
five
times
during
the
twelve-month
period
ended
October
2022,
and
policymakers
indicated
that
ongoing
increases
would
be
appropriate.
For
the
twelve
months,
small-cap
stocks
trailed
large-
and
mid-sized
equities,
while
growth
shares
underperformed
value
stocks.
(Returns
by
investment
style
and
capitalization
size
are
based
on
the
Russell
indexes.)
Foreign
developed
markets
lost
ground
Foreign
developed-markets
stocks
declined,
though
many
of
the
world’s
larger
economies
continued
to
grow.
The
19-nation
euro
area
recorded
moderate
economic
expansion
throughout
the
period;
however,
rising
prices,
particularly
those
for
energy,
became
increasingly
worrisome.
The
European
Central
Bank
began
to
tighten
monetary
policy
with
three
increases
to
its
suite
of
benchmark
interest
rates.
The
Bank
of
England
increased
its
benchmark
rate
to
2.25%.
Emerging
markets
stocks
posted
losses
Of
the
24
countries
in
the
MSCI
Emerging
Markets
Index,
more
than
one-half
declined
in
U.S.-dollar
terms.
China,
which
accounted
for
more
than
26.0%
of
the
index
at
period-end,
registered
a
larger
loss
than
the
index,
primarily
due
to
government-imposed
COVID-19
restrictions.
Taiwan
and
South
Korea,
which
represented
more
than
25.0%
of
the
index
combined,
also
underperformed
the
benchmark.
Six
funds
outperformed
their
benchmarks
All
14
TIAA-CREF
Equity
Funds
posted
losses,
though
six
outpaced
the
returns
of
their
respective
benchmarks.
Declines
for
the
twelve
months
ranged
from
a
−5.3%
return
for
the
Mid-Cap
Value
Fund
to
a
−37.8%
return
for
the
Mid-Cap
Growth
Fund.
Fund
performance
generally
reflected
market
trends
that
did
not
favor
smaller-
cap
and
growth-oriented
shares.
The
Large-Cap
Growth
Fund
returned
−32.1%,
and
the
Mid-Cap
Growth
Fund
returned
−37.8%.
Both
funds
trailed
their
respective
benchmarks,
the
Russell
1000®
Growth
Index
and
the
Russell
Midcap®
Growth
Index.
5
TIAA-CREF
Funds:
Equity
Funds
2022
Annual
Report
The
Social
Choice
Equity
Fund
returned
−16.5%
and
outpaced
the
Russell
3000
Index.
The
Social
Choice
Low
Carbon
Equity
Fund
returned
−17.3%,
lagging
the
same
benchmark.
The
Growth
&
Income
Fund
trailed
its
S&P
500®
Index
benchmark
with
a
return
of
−18.5%.
The
Quant
Small-Cap
Equity
Fund
outperformed
its
Russell
2000®
Index
benchmark
with
a
return
of
−12.4%.
The
Quant
Small/Mid-Cap
Equity
Fund’s
−13.7%
return
outpaced
the
performance
of
the
Russell
2500®
Index.
The
Mid-Cap
Value
Fund’s
−5.3%
return
outperformed
the
Russell
Midcap
Value
Index.
The
Large-Cap
Value
Fund
returned
−6.8%,
outpacing
the
Russell
1000
Value
Index.
Among
international
funds,
the
Emerging
Markets
Equity
Fund
returned
−31.7%
to
trail
its
benchmark,
the
MSCI
Emerging
Markets
Index.
The
International
Opportunities
Fund
returned
−30.8%,
lagging
the
MSCI
All
Country
World
(ACWI)
ex
USA
Index.
The
Quant
International
Small-Cap
Equity
Fund
returned
−26.4%,
outpacing
the
MSCI
All
Country
World
(ACWI)
ex
USA
Small
Cap
Index.
The
Social
Choice
International
Equity
Fund
returned
−23.5%,
and
the
International
Equity
Fund
returned
−25.1%.
Both
funds
trailed
their
shared
benchmark,
the
MSCI
EAFE
Index.
A
detailed
overview
of
the
financial
markets
during
the
twelve-month
period
appears
on
page
6,
and
a
discussion
of
how
each
fund
performed
in
relation
to
its
benchmark
begins
on
page
8.
Navigating
markets
with
long-term
goals
in
mind
After
more
than
a
decade
of
above-average
returns
in
the
equity
markets,
a
down
year—such
as
the
one
we
are
witnessing—is
not
unusual.
Nevertheless,
it’s
natural
for
investors
to
feel
concerned
when
their
portfolios
are
showing
negative
results.
As
such,
we
remind
our
investors
that,
historically,
markets
have
weathered
periods
of
volatility,
and
that
these
experiences
can
serve
to
reinforce
the
value
of
a
well-developed
investment
plan
designed
to
help
investors
achieve
their
financial
goals.
We
believe
a
diversified
portfolio
of
stocks,
bonds
and
other
assets,
managed
by
professionals,
can
play
an
important
role
in
that
strategy.
Of
course,
diversification
cannot
guarantee
against
market
losses,
and
past
performance
cannot
guarantee
future
results.
If
you
have
any
questions
or
would
like
to
talk
about
your
portfolio,
please
contact
your
financial
advisor
or
call
a
TIAA
financial
consultant
at
800-842-2252.
We
would
be
happy
to
help
you.
Brad
Finkle
Principal
Executive
Officer
and
President
of
the
TIAA-CREF
Funds
and
TIAA-CREF
Life
Funds
Market
monitor
6
2022
Annual
Report
TIAA-CREF
Funds:
Equity
Funds
Stocks
fell
as
inflation
rose
For
the
twelve
months
ended
October
31,
2022,
U.S.
stocks
declined
as
persistent
inflation
and
rising
interest
rates
caused
concern
among
investors.
The
Russell
3000®
Index,
a
broad
measure
of
the
U.S.
stock
market,
returned
−16.5%,
while
international
developed-
and
emerging-markets
equities
posted
larger
losses.
U.S.
economy
turned
in
mixed
performance
During
the
twelve
months,
the
U.S.
economy
experienced
periods
of
growth
and
contraction.
Strong
consumer
spending
and
solid
job
growth
gave
the
economy
a
boost,
while
increasing
inflation
and
rising
interest
rates
created
headwinds.
Real
gross
domestic
product
(GDP),
which
measures
the
value
of
all
goods
and
services
produced
in
the
United
States,
grew
at
an
annualized
rate
of
7.0%
during
the
fourth
quarter
of
2021.
But
GDP
contracted
by
1.6%
in
the
first
quarter
of
2022
and
by
0.6%
in
the
second
quarter.
However,
GDP
expanded
by
2.6%
in
the
third
quarter
according
to
the
government’s
“advance”
estimate.
The
unemployment
rate
declined
during
the
period,
dropping
from
4.2%
in
November
2021
to
3.7%
in
October
2022.
The
jobless
rate
fell
to
a
low
of
3.5%
late
in
the
period,
a
level
not
seen
since
before
the
COVID-19
pandemic.
Core
inflation,
which
includes
all
items
except
food
and
energy,
increased
6.3%
for
the
twelve
months
ended
in
October.
Oil
prices
had
large
swings
but
ended
only
slightly
higher.
The
price
of
West
Texas
Intermediate
crude
oil
rose
from
$84
per
barrel
on
November
1,
2021,
to
less
than
$87
on
October
31,
2022.
The
dollar
rose
against
most
major
currencies
during
the
period.
Small-cap
and
growth
stocks
experienced
the
largest
losses
Among
U.S.
equity
investment
styles,
small-cap
shares
underperformed
mid-
and
large-cap
stocks,
while
growth
equities
lagged
value
shares
in
all
size
categories.
Small-cap
stocks
returned
−18.5%,
while
mid-cap
stocks
returned
−17.2%
and
large-cap
equities
returned
−16.4%.
Among
small
caps,
growth
stocks
returned
−26.0%
and
value
shares
returned
−10.7%.
In
the
mid-cap
category,
growth
equities
returned
−28.9%,
while
value
stocks
returned
−10.2%.
Within
large
caps,
growth
equities
returned
−24.6%
and
value
stocks
returned
−7.0%.
(Returns
by
investment
style
and
capitalization
size
are
based
on
the
Russell
indexes.)
International
stocks
experienced
generally
larger
declines
for
the
period.
The
MSCI
Emerging
Markets
Index
returned
−31.0%,
while
the
MSCI
EAFE®
Index,
which
measures
stock
performance
in
21
developed-markets
countries
outside
North
America,
returned
−23.0%.
Rising
inflation
and
interest
rates
weighed
on
U.S.
stocks
For
the
twelve-month
period,
U.S.
equities
declined
amid
concerns
over
the
pace
of
inflation
and
rising
interest
rates.
The
Federal
Reserve
acted
forcefully
in
response
to
inflation
concerns,
increasing
the
federal
funds
target
rate
five
times
during
the
period.
The
key
short-term
interest-rate
measure
was
raised
to
3.00%–3.25%,
its
highest
level
since
2008.
Policymakers
indicated
that
further
increases
were
likely
and
raised
the
benchmark
rate
again
a
few
days
after
the
period
ended.
Economies
around
the
world
grew
at
varying
rates
during
the
twelve
months.
The
19-nation
euro
area
expanded
for
four
consecutive
quarters,
but
higher
prices—particularly
those
for
energy—posed
an
increasing
challenge.
China’s
economy
also
grew
at
a
moderate
rate
despite
aggressive
action
by
the
government
to
limit
exposure
to
COVID-19
variants.
Central
banks
moved
to
tighten
monetary
policies
in
response
to
accelerating
global
inflation.
The
European
Central
Bank
raised
its
benchmark
rates
by
a
total
of
2.00
percentage
points,
while
the
Bank
of
England
increased
its
benchmark
rate
to
2.25%.
Global
equities
posted
declines
across
the
board
Performance
for
the
twelve
months
ended
October
31,
2022
Source:
U.S.
small-cap
growth:
Russell
2000®
Growth
Index;
U.S.
small-cap
value:
Russell
2000
Value
Index;
U.S.
mid-cap
growth:
Russell
Midcap®
Growth
Index;
U.S.
mid-cap
value:
Russell
Midcap
Value
Index;
U.S.
large-cap
growth:
Russell
1000®
Growth
Index;
U.S.
large-cap
value:
Russell
1000
Value
Index;
Emerging
markets:
MSCI
Emerging
Markets
Index;
Foreign
developed
markets:
MSCI
EAFE®
Index.
Twelve-month
returns
as
of
October
31,
2022.
7
TIAA-CREF
Funds:
Equity
Funds
2022
Annual
Report
About
the
funds’
benchmarks
Broad
market
indexes
The
Russell
3000®
Index
measures
the
performance
of
the
stocks
of
the
3,000
largest
publicly
traded
U.S.
companies,
based
on
market
capitalization.
The
index
measures
the
performance
of
about
98%
of
the
total
market
capitalization
of
the
publicly
traded
U.S.
equity
market.
The
MSCI
All
Country
World
ex
USA
Index
measures
the
performance
of
large-
and
mid-cap
stocks
in
46
developed
and
emerging-markets
countries,
excluding
the
United
States.
The
MSCI
EAFE®
Index
measures
the
performance
of
the
leading
stocks
in
21
developed-markets
countries
outside
North
America—in
Europe,
Australasia
and
the
Far
East.
The
MSCI
Emerging
Markets
Index
measures
the
performance
of
the
leading
stocks
in
24
emerging-markets
countries
in
Europe,
Asia,
Africa,
Latin
America
and
the
Middle
East.
Large-cap
indexes
The
S&P
500®
Index
is
a
market-capitalization-weighted
index
of
the
stocks
of
500
leading
companies
in
major
industries
of
the
U.S.
economy.
The
Russell
1000®
Growth
Index
is
a
subset
of
the
Russell
1000
Index,
which
measures
the
performance
of
the
stocks
of
the
1,000
largest
companies
in
the
Russell
3000
Index,
based
on
market
capitalization.
The
Russell
1000
Growth
Index
measures
the
performance
of
those
stocks
of
the
Russell
1000
Index
with
higher
relative
forecasted
growth
rates
and
price/
book
ratios.
The
Russell
1000
Value
Index
is
a
subset
of
the
Russell
1000
Index,
which
measures
the
performance
of
the
stocks
of
the
1,000
largest
companies
in
the
Russell
3000
Index,
based
on
market
capitalization.
The
Russell
1000
Value
Index
measures
the
performance
of
those
stocks
of
the
Russell
1000
Index
with
lower
relative
forecasted
growth
rates
and
price/book
ratios.
Mid-cap
indexes
The
Russell
Midcap®
Growth
Index
is
a
subset
of
the
Russell
Midcap
Index,
which
measures
the
performance
of
the
stocks
of
the
800
smallest
companies
in
the
Russell
1000
Index,
based
on
market
capitalization.
The
Russell
Midcap
Growth
Index
measures
the
performance
of
those
stocks
of
the
Russell
Midcap
Index
with
higher
relative
forecasted
growth
rates
and
price/
book
ratios.
The
Russell
Midcap
Value
Index
is
a
subset
of
the
Russell
Midcap
Index,
which
measures
the
performance
of
the
stocks
of
the
800
smallest
companies
in
the
Russell
1000
Index,
based
on
market
capitalization.
The
Russell
Midcap
Value
Index
measures
the
performance
of
those
stocks
of
the
Russell
Midcap
Index
with
lower
relative
forecasted
growth
rates
and
price/
book
ratios.
Small/mid-cap
index
The
Russell
2500®
Index
is
a
subset
of
the
Russell
3000
Index
and
measures
the
smallest
2,500
companies,
covering
small-
and
mid-cap
market
capitalizations,
in
the
Russell
3000
Index.
Small-cap
indexes
The
Russell
2000®
Index
measures
the
performance
of
the
stocks
of
the
2,000
smallest
companies
in
the
Russell
3000
Index,
based
on
market
capitalization.
The
MSCI
ACWI
ex
USA
Small
Cap
Index
measures
the
performance
of
small-cap
stocks
in
22
developed-markets
countries,
excluding
the
United
States,
and
24
emerging-markets
countries.
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.
London
Stock
Exchange
Group
plc
and
its
group
undertakings
(collectively,
the
“LSE
Group”).
©
LSE
Group
2022.
FTSE
Russell
is
a
trading
name
of
certain
of
the
LSE
Group
companies.
“FTSE®,”
“Russell®”
and
“FTSE
Russell®”
are
trademarks
of
the
relevant
LSE
Group
companies
and
are
used
by
any
other
LSE
Group
company
under
license.
All
rights
in
the
FTSE
Russell
indexes
or
data
vest
in
the
relevant
LSE
Group
company
which
owns
the
index
or
the
data.
Neither
LSE
Group
nor
its
licensors
accept
any
liability
for
any
errors
or
omissions
in
the
indexes
or
data
and
no
party
may
rely
on
any
indexes
or
data
contained
in
this
communication.
No
further
distribution
of
data
from
the
LSE
Group
is
permitted
without
the
relevant
LSE
Group
company’s
express
written
consent.
The
LSE
Group
does
not
promote,
sponsor
or
endorse
the
content
of
this
communication.
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.
S&P
500
is
a
registered
trademark
and
service
mark
of
Standard
&
Poor’s
Financial
Services,
LLC,
a
division
of
S&P
Global.
Portfolio
managers’
comments
8
2022
Annual
Report
TIAA-CREF
Funds:
Equity
Funds
Growth
&
Income
Fund
Performance
for
the
twelve
months
ended
October
31,
2022
The
Growth
&
Income
Fund returned
-18.53%
for
the
Institutional
Class,
compared
with
the
-14.61% return
of
its
benchmark,
the
S&P
500®
Index.
The
performance
table
shows
returns
for
all
share
classes
of
the
Fund.
U.S.
stocks
fell
amid
mixed
economic
performance
The
U.S.
economy
grew
at
a
robust
pace
early
in
the
fourth
quarter
of
2021,
but
then
contracted
for
two
consecutive
quarters
before
expanding
again
in
the
third
quarter
of
2022.
Key
economic
drivers,
such
as
consumer
spending
and
job
growth,
remained
solid.
However,
inflation
concerns
and
rising
interest
rates
took
a
toll
on
economic
momentum.
The
unemployment
rate
declined
throughout
the
period,
falling
to
3.7%
in
October
2022.
Core
inflation,
which
includes
all
items
except
food
and
energy,
rose
6.3%
for
the
twelve
months
ended
in
October.
Oil
prices
were
volatile
but
finished
the
period
only
modestly
higher.
Equity
markets
recorded
declines
across
all
size
and
style
categories
as
investors
responded
to
aggressive
monetary
policy
actions
aimed
at
taming
inflation.
The
Federal
Reserve
raised
the
federal
funds
target
rate
five
times
during
the
twelve-month
period
ended
October
2022.
The
Fed
increased
the
key
short-term
interest-rate
measure
to
3.00%–3.25%,
its
highest
level
since
January
2008.
For
the
twelve
months,
the
large-cap-oriented
S&P
500
Index
outperformed
the
Russell
3000®
Index,
a
broad
measure
of
the
U.S.
stock
market,
which
returned
−16.52%.
A
portion
of
the
Russell
3000
Index
consists
of
small-cap
equities,
which
underperformed
large
caps
for
the
period.
Most
benchmark
sectors
declined
Seven
of
the
eleven
industry
sectors
in
the
S&P
500
Index
posted
losses
for
the
twelve
months.
Communication
services
returned
−40.6%
and
was
the
worst
performer,
hurt
by
broad
weakness
in
media
and
entertainment
stocks.
Next
came
consumer
discretionary
and
real
estate,
which
returned
−28.5%
and
−20.6%,
respectively,
followed
by
information
technology—the
largest
sector—which
returned
−20.3%.
Together,
these
four
sectors
represented
more
than
45.0%
of
the
benchmark’s
total
market
capitalization
on
October
31,
2022.
Energy
was
the
best
performer,
gaining
an
impressive
65.0%.
The
defensive
consumer
staples,
utilities
and
health
care
sectors
also
advanced,
rising
4.9%,
2.9%
and
0.8%,
respectively.
For
the
twelve-month
period,
only
one
of
the
five
largest
stocks
in
the
S&P
500
Index
generated
a
return
that
surpassed
the
overall
return
of
the
index.
That
stock
was
Apple,
which
posted
a
modest
gain
amid
resilient
demand
for
the
company’s
products.
The
remaining
four
stocks
lagged
the
benchmark
by
a
sizeable
margin.
Amazon.com
registered
the
sharpest
decline,
hurt
by
a
slowdown
in
its
core
retail
business,
followed
by
Tesla,
which
was
pressured
by
several
factors,
including
supply-chain
disruptions
and
higher
input
costs.
Next
in
line
were
Alphabet
(the
parent
company
of
Google)
and
Microsoft.
Fund
trailed
its
benchmark
The
Fund
underperformed
its
benchmark
mainly
because
of
allocation
decisions
that
did
not
perform
as
anticipated.
The
largest
detractors
were
underweight
positions
in
Chevron,
which
announced
record
profits,
and
Berkshire
Hathaway,
which
reported
earnings
growth
across
all
of
its
major
business
units.
The
next-largest
detractor
was
an
overweight
position
in
technology
company
salesforce.com,
which
performed
poorly
on
softening
customer
demand.
Other
stock
choices
bolstered
the
Fund’s
relative
return.
The
top
contributors
were
an
overweight
position
in
ConocoPhillips
and
an
out-of-benchmark
position
in
Cheniere
Energy.
An
overweight
position
in
agriculture
company
Corteva
was
also
helpful,
as
the
company
experienced
strong
sales
of
its
crop-protection
products.
Large-Cap
Growth
Fund
Performance
for
the
twelve
months
ended
October
31,
2022
The
Large-Cap
Growth
Fund returned
-32.08%
for
the
Institutional
Class,
compared
with
the
-24.60% return
of
its
benchmark,
the
Russell
1000®
Growth
Index.
The
performance
table
shows
returns
for
all
share
classes
of
the
Fund.
U.S.
stocks
fell
amid
mixed
economic
performance
The
U.S.
economy
grew
at
a
robust
pace
early
in
the
fourth
quarter
of
2021,
but
then
contracted
for
two
consecutive
quarters
before
expanding
again
in
the
third
quarter
of
2022.
Key
economic
drivers,
such
as
consumer
spending
and
job
growth,
remained
solid.
However,
inflation
concerns
and
rising
interest
rates
took
a
toll
on
economic
momentum.
The
unemployment
rate
declined
throughout
the
period,
falling
to
3.7%
in
October
2022.
Core
inflation,
which
includes
all
items
except
food
and
energy,
rose
6.3%
for
the
twelve
months
ended
in
October.
Oil
prices
were
volatile
but
finished
the
period
only
modestly
higher.
9
TIAA-CREF
Funds:
Equity
Funds
2022
Annual
Report
Portfolio
managers’
comments
continued
Equity
markets
recorded
declines
across
all
size
and
style
categories
as
investors
responded
to
aggressive
monetary
policy
actions
aimed
at
taming
inflation.
The
Federal
Reserve
raised
the
federal
funds
target
rate
five
times
during
the
twelve-month
period
ended
October
2022.
The
Fed
increased
the
key
short-term
interest-rate
measure
to
3.00%–3.25%,
its
highest
level
since
January
2008.
For
the
twelve
months,
the
Russell
3000®
Index,
a
broad
measure
of
the
U.S.
stock
market,
returned
−16.52%.
Large-
cap
stocks
outperformed
smaller
equities,
while
value
shares
outpaced
growth
stocks.
(Returns
by
investment
style
and
capitalization
size
are
based
on
the
Russell
indexes.)
Most
benchmark
sectors
declined
Eight
of
the
eleven
industry
sectors
in
the
Russell
1000
Growth
Index
registered
losses
for
the
twelve
months.
Communication
services
and
consumer
discretionary
were
the
worst
performers,
returning
−47.1%
and
−33.1%,
respectively.
Information
technology—the
largest
sector,
representing
more
than
45.0%
of
the
benchmark’s
total
market
capitalization
on
October
31,
2022—returned
−23.8%
and
detracted
most
from
the
index’s
performance.
Together,
these
three
sectors
accounted
for
almost
three-quarters
of
the
benchmark’s
total
market
capitalization
on
October
31,
2022.
Energy
was
the
best
performer,
surging
61.6%,
followed
by
the
defensive
consumer
staples
and
utilities
sectors,
which
gained
2.8%
and
2.3%,
respectively.
For
the
twelve-month
period,
only
one
of
the
five
largest
stocks
in
the
Russell
1000
Growth
Index
posted
a
return
that
surpassed
the
overall
return
of
the
index.
That
stock
was
Apple,
which
advanced
amid
resilient
demand
for
the
company’s
products.
The
remaining
four
stocks
trailed
the
benchmark
by
a
significant
margin.
Amazon.com
generated
the
steepest
decline,
hurt
by
a
slowdown
in
its
core
retail
business.
Next
came
Tesla,
followed
by
Alphabet
(the
parent
company
of
Google)
and
Microsoft.
Fund
trailed
its
benchmark
The
Fund
underperformed
its
benchmark
as
certain
stock
allocations
did
not
perform
as
anticipated,
most
notably
an
underweight
position
in
Apple.
The
next-largest
detractors
were
overweight
positions
in
technology
company
salesforce.com,
which
experienced
softening
demand,
and
Meta
Platforms
(Facebook),
which
faced
several
headwinds,
including
changes
to
Apple’s
privacy
policy
that
reduced
spending
on
digital
advertising.
On
the
plus
side,
the
top
contributing
factor
was
an
underweight
position
in
Netflix,
which
declined
following
two
consecutive
quarters
of
subscriber
losses.
Next
came
an
overweight
position
in
credit
card
issuer
Visa
and
an
out-of-benchmark
position
in
energy
company
ConocoPhillips.
Large-Cap
Value
Fund
Performance
for
the
twelve
months
ended
October
31,
2022
The
Large-Cap
Value
Fund returned
-6.76%
for
the
Institutional
Class,
compared
with
the
-7.00% return
of
its
benchmark,
the
Russell
1000®
Value
Index.
The
performance
table
shows
returns
for
all
share
classes
of
the
Fund.
U.S.
stocks
fell
amid
mixed
economic
performance
The
U.S.
economy
grew
at
a
robust
pace
early
in
the
fourth
quarter
of
2021,
but
then
contracted
for
two
consecutive
quarters
before
expanding
again
in
the
third
quarter
of
2022.
Key
economic
drivers,
such
as
consumer
spending
and
job
growth,
remained
solid.
However,
inflation
concerns
and
rising
interest
rates
took
a
toll
on
economic
momentum.
The
unemployment
rate
declined
throughout
the
period,
falling
to
3.7%
in
October
2022.
Core
inflation,
which
includes
all
items
except
food
and
energy,
rose
6.3%
for
the
twelve
months
ended
in
October.
Oil
prices
were
volatile
but
finished
the
period
only
modestly
higher.
Equity
markets
recorded
declines
across
all
size
and
style
categories
as
investors
responded
to
aggressive
monetary
policy
actions
aimed
at
taming
inflation.
The
Federal
Reserve
raised
the
federal
funds
target
rate
five
times
during
the
twelve-month
period
ended
October
2022.
The
Fed
increased
the
key
short-term
interest-rate
measure
to
3.00%–3.25%,
its
highest
level
since
January
2008.
For
the
twelve
months,
the
Russell
3000®
Index,
a
broad
measure
of
the
U.S.
stock
market,
returned
−16.52%.
Large-
cap
stocks
outperformed
smaller
equities,
while
value
shares
outpaced
growth
stocks.
(Returns
by
investment
style
and
capitalization
size
are
based
on
the
Russell
indexes.)
Portfolio
managers’
comments
10
2022
Annual
Report
TIAA-CREF
Funds:
Equity
Funds
continued
Most
benchmark
sectors
declined
Seven
of
the
eleven
industry
sectors
in
the
Russell
1000
Value
Index
posted
losses
for
the
twelve
months.
Communication
services,
which
returned
−30.3%,
was
the
worst
performer
and
largest
detractor
from
the
index’s
performance.
Information
technology
and
real
estate
were
the
next-worst
performers,
returning
−22.7%
and
−20.8%,
respectively.
Financials—the
benchmark’s
largest
sector—was
more
resilient
but
still
weak
with
a
−12.9%
return.
Together,
these
four
sectors
represented
almost
45.0%
of
the
index’s
total
market
capitalization
on
October
31,
2022.
Energy,
which
soared
64.9%
on
elevated
oil
prices,
was
the
best-performing
sector
and
largest
contributor
to
the
index’s
return.
Consumer
staples
was
the
next-best
performer,
climbing
5.2%
as
investors
rewarded
stocks
with
stable
demand
characteristics.
For
the
twelve-month
period,
four
of
the
five
largest
stocks
in
the
Russell
1000
Value
Index
generated
returns
that
surpassed
the
overall
return
of
the
index.
Exxon
Mobil
and
Chevron
led
the
way,
posting
outsized
gains
on
the
back
of
strong
earnings
reports
from
both
companies.
While
substantially
lower,
returns
were
also
positive
for
Johnson
&
Johnson
and
Berkshire
Hathaway.
JPMorgan
Chase
trailed
the
index
due
to
several
factors,
including
a
slowdown
in
capital
markets
activity
and
an
increase
in
reserves
set
aside
for
potential
loan
losses.
Fund
outperformed
its
benchmark
A
number
of
stock
choices
helped
the
Fund
outperform
its
benchmark.
The
top
contributor
was
an
overweight
position
in
ConocoPhillips,
which
surged
in
response
to
the
company’s
strong
operating
performance
and
increases
in
the
amount
of
capital
it
expected
to
return
to
shareholders
in
2022.
The
next-largest
contributors
were
overweight
positions
in
Chevron
and
EOG
Resources,
an
oil
and
gas
producer.
Conversely,
the
largest
detractor
was
a
lack
of
exposure
to
Exxon
Mobil.
An
overweight
position
in
communications
provider
Comcast
and
an
out-of-benchmark
position
in
Microsoft
also
hurt
relative
performance.
Mid-Cap
Growth
Fund
Performance
for
the
twelve
months
ended
October
31,
2022
The
Mid-Cap
Growth
Fund returned
-37.82%
for
the
Institutional
Class,
compared
with
the
-28.94% return
of
its
benchmark,
the
Russell
Midcap®
Growth
Index.
The
performance
table
shows
returns
for
all
share
classes
of
the
Fund.
U.S.
stocks
fell
amid
mixed
economic
performance
The
U.S.
economy
grew
at
a
robust
pace
early
in
the
fourth
quarter
of
2021,
but
then
contracted
for
two
consecutive
quarters
before
expanding
again
in
the
third
quarter
of
2022.
Key
economic
drivers,
such
as
consumer
spending
and
job
growth,
remained
solid.
However,
inflation
concerns
and
rising
interest
rates
took
a
toll
on
economic
momentum.
The
unemployment
rate
declined
throughout
the
period,
falling
to
3.7%
in
October
2022.
Core
inflation,
which
includes
all
items
except
food
and
energy,
rose
6.3%
for
the
twelve
months
ended
in
October.
Oil
prices
were
volatile
but
finished
the
period
only
modestly
higher.
Equity
markets
recorded
declines
across
all
size
and
style
categories
as
investors
responded
to
aggressive
monetary
policy
actions
aimed
at
taming
inflation.
The
Federal
Reserve
raised
the
federal
funds
target
rate
five
times
during
the
twelve-month
period
ended
October
2022.
The
Fed
increased
the
key
short-term
interest-rate
measure
to
3.00%–3.25%,
its
highest
level
since
January
2008.
For
the
twelve
months,
the
Russell
3000®
Index,
a
broad
measure
of
the
U.S.
stock
market,
returned
−16.52%.
Large-
cap
stocks
outperformed
smaller
equities,
while
value
shares
outpaced
growth
stocks.
(Returns
by
investment
style
and
capitalization
size
are
based
on
the
Russell
indexes.)
Nearly
all
benchmark
sectors
declined
Nine
of
the
eleven
industry
sectors
in
the
Russell
Midcap
Growth
Index
posted
losses
for
the
twelve
months.
Communication
services
and
consumer
discretionary
were
the
worst
performers,
returning
−55.4%
and
−34.1%,
respectively.
Next
came
information
technology—the
biggest
sector—which
returned
−34.0%
and
detracted
most
from
the
index’s
performance.
Together,
these
three
sectors
accounted
for
more
than
one-half
of
the
benchmark’s
total
market
capitalization
on
October
31,
2022.
On
the
plus
side,
energy
was
the
best
performer,
surging
65.0%,
while
utilities
rose
2.3%.
For
the
period,
all
of
the
five
largest
stocks
in
the
Russell
Midcap
Growth
Index
registered
returns
that
surpassed
the
overall
return
of
the
benchmark.
Car
parts
retailer
AutoZone
led
the
way
and
was
the
only