Fees. You will be charged an asset-based fee of 30 basis points (0.30%) annually (the "Program Fee") for participation in the TIAA Personal Portfolio program (the "Program"). The Program Fee covers the costs associated with managing your Program account, developing the Program's advice, custody of Program assets, trade execution, client reporting and other administrative expenses. The Program excludes cash balances that are in your Program account when calculating the Program Fee. The Program Fee does not include any fees, costs and expenses inherent in underlying mutual funds or ETFs (together, the "Funds"), including investment advisory, administrative, distribution, transfer agent, custodial, legal, audit, contingent deferred sales charges or redemption fees and other customer fees and expenses related to investments in these products, which are described in the relevant prospectus or similar disclosure documents. Consequently, this means you will pay the Fund fees and expenses as a Fund shareholder, except where expressly qualified below in connection with your individual retirement accounts enrolled in the Program ("IRAs").
The Program Fee does not include costs associated with additional services requested by you, including wire or electronic fund transfer fees, overnight delivery fees, duplicate statement fees, account transfer fees, and reorganization fees.
The Program Fee is payable quarterly in arrears. It is calculated by multiplying the daily market value of your Program account by the pro-rata daily Program Fee (the "daily fee calculation") and summing the value of the daily fee calculations during the preceding quarter. The Program determines market value in reliance upon published net asset values and prices reported on national exchanges. Should neither be available for a particular security, the Program will price the relevant security based upon fair valuation principles that attempt to estimate what the security would bring upon sale. Advice and Planning Services ("APS") will deduct the Program Fee from the Program account on a quarterly basis, generally within thirty business days after each quarter's end, by charging cash balances or redeeming Fund shares within the Program account. For the initial enrollment quarter, Program Fees will be deducted as described above for the remainder of that quarter.
Fee Credit for IRAs. For IRAs enrolled in the Program, APS will reduce the Program Fee by a fee credit for IRA assets invested in Affiliated Funds. The fee credit will be calculated by offsetting both (i) the investment management portion of the proprietary fund expenses ("Affiliated Fund management fees") that TIAA affiliates receive in connection with the Affiliated Funds held in the IRA, and (ii) the administrative and other fees that TIAA affiliates receive from such Affiliated Funds included in the Affiliated Fund's expenses. APS may exclude from the fee credit amount any reimbursable expenses paid by the Affiliated Funds to TIAA affiliates which are reasonable direct expenses of the TIAA affiliates. This includes expenses such as salaries of affiliate personnel attributable to work performed for the Affiliated Funds held in your IRA and third party custodial fees and transfer agent fees associated with the Affiliated Funds held in your IRA. APS also may reduce the fee credit amount to reflect fee waivers and reimbursements granted by TIAA affiliates to the Affiliated Funds as disclosed in the applicable fund prospectus. The fee credit may vary depending upon the particular Affiliated Fund employed, as the fees differ from fund to fund.
With regard to any Affiliated Funds and unaffiliated mutual funds held in your IRA which levy a 12b-1 fee, APS will deposit directly into your IRA whatever portion of the 12b-1 fee it receives. The remaining portion of the 12b-1 fee is retained by TIAA-CREF Individual & Institutional Services, LLC ("TC Services") clearing firm Pershing without benefit to TC Services. For all Program accounts other than IRAs, APS will retain whatever portion of the 12b-1 fee it receives from a mutual fund.