TIAA-CREF reports strong financial position and reaffirms commitment to clients
New York, July 15, 2014 — TIAA-CREF, a leading financial services provider, today held the 2014 CREF Meeting of Participants at its Charlotte, N.C., office.1 TIAA-CREF provides retirement plans, IRAs, mutual funds, brokerage services, life insurance, college savings plans, trust services and outsourced endowment management services to the not-for-profit market.
“For nearly 100 years, TIAA-CREF has been focused helping our clients – the people who make a real difference in our world – achieve the lifelong financial well-being they deserve,” said Roger W. Ferguson Jr., president and chief executive officer of TIAA-CREF. “We are proud of our progress over the past year as we work to fulfill this noble mission.”
Ferguson cited the following key indicators of the organization’s strong financial position:
- Assets under management - TIAA-CREF ended 2013 with $564 billion in assets under management. In 2014, TIAA-CREF’s assets under management continued to grow, standing at approximately $613 billion as of June 30.
- Capital reserves - TIAA-CREF’s capital reserves also remained at record levels at the end of 2013. By year’s end, TIAA’s total adjusted capital was more than $36.4 billion. This measure of the company’s financial strength is critically important because it underscores TIAA-CREF’s ability to fulfill the promises made to provide clients with lifetime income.
- Ratings – TIAA-CREF continues to receive high ratings2 from leading insurance company rating agencies.
Ferguson reaffirmed TIAA-CREF’s commitment to putting its clients first and outlined the progress that the organization is making to strengthen, grow and diversify its business. Highlights of the company’s advances include:
- Meeting the evolving needs of clients –TIAA-CREF continues to enhance its portfolio of advice and financial education resources. This includes updating its enhanced Online Advice and Guidance Center, expanding its Woman to Woman Financial Empowerment Series, bolstering its “Financial Essentials” financial education program and introducing the Starting Your Financial Life website for young adults. In addition, the company has expanded its Individual Advisory Services business by growing its number of advisors and local offices. It also is increasing its lineup of products and services to meet clients’ diverse needs at every stage of life – whether that be saving for a college education through 529 plans or ensuring the financial well-being of loved ones through life insurance.
- Expanding our asset management business – In April 2014, TIAA-CREF closed the previously announced $23 billion real estate joint venture with Henderson Global Investors and announced its intention to acquire Nuveen Investments ("Nuveen"), a diversified investment management company with approximately $221 billion in assets under management. The Nuveen acquisition will further strengthen TIAA-CREF as a leading provider of retirement and financial services while adding scale, expertise and new investment capabilities.
- Continuing to demonstrate thought leadership – TIAA-CREF is positioning itself as a thought leader in the financial services industry by regularly conducting and releasing research through white papers and surveys. Since January 2014, the company has published white papers on retirement readiness and lifetime income; surveys on investment options, IRAs and borrowing against retirement savings; and research studies on the financial capability of women and young adults.
- Promoting financial education for students and the benefits of college savings – TIAA-CREF continues to collaborate with the Council of Graduate Schools and leading universities to develop financial education programs for graduate and undergraduate students. The program currently is reaching tens of thousands of students across 34 campuses. In February 2014, CGS launched GradSense, a one-of-a-kind debt-to-salary calculator that helps students make more informed decisions about what type of degrees and fields of study they should pursue. In addition, TIAA-CREF continues to educate parents and grandparents about the benefits of 529 college savings plans through the AARP College Savings Solutions from TIAA-CREF program, which launched in 2013.
In meeting-related actions, CREF participants:
- Elected trustees Forrest Berkley, Nancy A. Eckl, Michael A. Forrester, Howell E. Jackson, Nancy L. Jacob, Thomas J. Kenny, Bridget A. Macaskill, James M. Poterba, Maceo K. Sloan and Laura T. Starks to four-year terms.
- Ratified the trustees’ selection of PricewaterhouseCoopers LLP as CREF’s independent auditors for the fiscal year ending December 31, 2014, with preliminary results voting in favor of ratification.
In addition, TIAA policyholders expressed support for the organization’s executive compensation policies through an advisory vote on the compensation of TIAA’s named executive officers. Preliminary results of the TIAA advisory vote on executive compensation show that the TIAA policyholders approved of the quality of TIAA's executive compensation plan and disclosure, including its connection to performance, achievement of TIAA’s business objectives and creation of long-term value for policyholders.
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $613 billion in assets under management (as of 6.30.14) and is the leading provider of retirement services in the academic, research, medical and cultural fields.