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TIAA-CREF Launches 2060 Target-Date Funds
Offers simple and effective way for younger people to start saving for retirement
New York, September 30, 2014 — TIAA-CREF, a leading financial services organization, today announced the launch of the TIAA-CREF Lifecycle 2060 and Lifecycle Index 2060 Funds (TLXNX, TLXPX, TLXRX, TVIIX, TVIPX, TVITX), broadly diversified funds designed to meet the needs of investors who will be retiring within a few years of 2060.
The Lifecycle 2060 and Lifecycle Index 2060 Funds are the latest additions to TIAA-CREF's Lifecycle Funds series and Lifecycle Index Funds series. Both Lifecycle series include 11 funds offered in five year increments, as well as a Retirement Income Fund. The new funds will follow the same glide-path as other funds in their respective series, which is designed to allow for continued asset growth during an investor's working years and to help meet the financial needs of investors long after they leave the workforce.
"Target-date funds are a simple and effective way for young people now entering the workforce to start saving for retirement," said Randall Lowry, managing director and product manager for the TIAA-CREF Lifecycle Funds. "TIAA-CREF has a long history of helping clients meet their lifelong financial needs and we look forward to helping the new generation of investors reach their goals."
The Lifecycle 2060 Fund and the Lifecycle Index 2060 Fund will allocate 90 percent of assets to equity and 10 percent to fixed income at the outset and will gradually move to a target allocation of approximately 50 percent equity and 50 percent fixed income by 2060, reaching its final target allocation of approximately 40 percent equity and 60 percent fixed income between 2067 and 2070. TIAA-CREF's Lifecycle Funds draw on more than 60 years of asset allocation experience and aim to provide an effective and convenient tool for investors to prepare for, and meet, their retirement savings objectives.
TIAA-CREF's Lifecycle Funds series receives a "Bronze" rating from Morningstar.1 As of August 31, 2014, 97 percent of the Lifecycle Funds, and 100 percent of the Lifecycle Index Funds, have an overall Morningstar rating of 4 or 5 stars (For the Lifecycle Funds, 85% are rated 4 stars and 12% are rated 5 stars; for the Lifecycle Index Funds, 42% are rated 4 stars and 58% are rated 5 stars). The Lifecycle Funds and Lifecycle Index Funds series combined have aggregate assets of more than $20.9 billion (as of 6.30.14).
TIAA-CREF (www.tiaa.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.