Teachers Insurance and Annuity Association –

 College Retirement Equities Fund

(TIAA-CREF)

 

Headquarters: 730 3rd Ave., New York, NY 10017 USA

Phone: +1 212-490-9000

Fax: +1 212-916-4840

Web Site: http://www.tiaa-cref.com

 

TIAA-CREF Annual Report

 

If you were one of the US's largest private pension systems, you'd throw your weight around boardrooms too. The Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF) is known for active and choosy investing.

 

The New York City-based not-for-profit organization provides benefits for more than 2 million members of the academic community and for investors outside academia's ivied confines. TIAA-CREF continues its historical core business of offering members financial advice, investment information, pensions, and annuities. It targets the general public with such offerings as mutual funds, tuition financing, and trust services (through savings bank TIAA-CREF Trust). The system is exiting the group life and group disability business, selling its operations to StanCorp Financial Group.

 

As one of the US' biggest institutional investors, TIAA-CREF is not afraid to use its clout to sway portfolio companies' management. The organization is a vocal critic of extravagant executive compensation packages. With an increasing share of its investment assets overseas, TIAA-CREF is also leading the crusade for global corporate governance standards.

 

#80 in FORTUNE 500

 

History

 

With $15 million, the Carnegie Foundation for the Advancement of Teaching in 1905 founded the Teachers Insurance and Annuity Association (TIAA) in New York City to provide retirement benefits and other forms of financial security to educators. When Carnegie's original endowment was found to be insufficient, another $1 million reorganized the fund into a defined- contribution plan in 1918. TIAA was the first portable pension plan, letting participants change employers without losing benefits and offering a fixed annuity. The fund required infusions of Carnegie cash until 1947.

 

In 1952 TIAA CEO William Greenough pioneered the variable annuity, based on common stock investments, and created the College Retirement Equities Fund (CREF) to offer it. Designed to supplement TIAA's fixed annuity, CREF invested participants' premiums in stocks. CREF and TIAA were subject to New York insurance (but not SEC) regulation.

 

During the 1950s, TIAA led the fight for Social Security benefits for university employees and began offering group total disability coverage (1957) and group life insurance (1958).

 

In 1971 TIAA-CREF began helping colleges boost investment returns from endowments, then moved into endowment management. It helped found a research center to provide objective investment information in 1972.

 

For 70 years retirement was the only way members could exit TIAA-CREF. Their only investment choices were stocks through CREF or a one-way transfer into TIAA's annuity accounts based on long-term bond, real estate, and mortgage investments. In the 1980s CREF indexed its funds to the S&P average.

 

By 1987's stock crash, TIAA-CREF had a million members, many of whom wanted more protection from stock market fluctuations. After the crash, Clifton Wharton (the first African- American to head a major US financial organization) became CEO; the next year CREF added a money market fund, for which the SEC required complete transferability, even outside TIAA- CREF. Now open to competition, TIAA-CREF became more flexible, adding investment options and long-term-care plans.

 

John Biggs became CEO in 1993. After the 1994 bond crash, TIAA-CREF began educating members on the ABCs of retirement investing, hoping to persuade them not to switch to flashy short-term investments and not to panic during such cyclical events as the crash.

 

In 1996 it went international, buying interests in UK commercial and mixed-use property. TIAA- CREF filed for SEC approval of more mutual funds in 1997. Although Federal tax legislation took away TIAA-CREF's tax-exempt status in 1997, the change was made without decreasing annuity incomes for the year.

 

The status change let TIAA-CREF offer no-load mutual funds to the public in 1998. A trust company and financial planning services were added; all new products were sold at cost, with TIAA-CREF waiving fees. TIAA-CREF in 1998 became the first pension fund to force out an entire board of directors (that of sputtering cafeteria firm Furr's/Bishop's). Also that year TIAA- CREF's crusade to curb "dead hand" poison pills (an antitakeover defense measure) found favor with the shareholders of Bergen Brunswig (now AmerisourceBergen), Lubrizol, and Mylan Laboratories. Late in 1999, the organization sold half of its stake in the Mall of America to Simon Property Group, keeping 27%. The next year it made a grab for more market share when it launched five new mutual funds.

 

Auditors: Deloitte & Touche LLP

2001 Employees: 6,700 (Company Job Openings )

1-Year Employee Growth: 34.0%

 

 

Offices

Atlanta

Bloomington, MN (Minneapolis-St. Paul)

Boston

Chicago

Denver

Dublin, OH (Columbus)

Indianapolis

Kirkland, WA (Seattle)

Las Colinas, TX (Dallas)

Morrisville, NC (Raleigh-Durham)

New York

Newport Beach, CA (Los Angeles)

Philadelphia

Pittsburgh

Rochester, NY

San Francisco

Southfield, MI (Detroit)

Tampa

Washington, DC

 

Selected Subsidiaries and Units

Teachers Personal Investors Services, Inc. (mutual fund management)

TIAA-CREF Individual & Institutional Services, Inc. (broker-dealer)

TIAA-CREF Institute (think tank)

TIAA-CREF Life Insurance Company (insurance and annuities)

TIAA-CREF Trust Company, FSB (trust services)

TIAA-CREF Tuition Financing, Inc. (state tuition savings program management)

 

Selected Mutual Funds

Bond Plus Fund

Equity Index Fund

Growth & Income Fund

Growth Equity Fund

High-Yield Bond Fund

International Equity Fund

Managed Allocation Fund

Money Market Fund

Short-Term Bond Fund

Social Choice Equity Fund

 

(source: http://www.hoovers.com/uk/premium/profile/7/0,2147,40457,00.html )

 

 

Dec 15, 2000

 

Joseph W. Luik, senior managing director of TIAA-CREF's Mortgage and Real Estate Division, hailed the sale to RFR Holding, citing that organization's

"firm commitment to continue the excellent standards established by TIAA for maintaining and operating this landmark property."  TIAA had retained

Insignia/ESG to represent its interest in this transaction.”

 

“TIAA is recognized as one of the nation's leading investors in commercial mortgage financing and commercial real estate property.  Currently TIAA's

Mortgage and Real Estate Division manages a general account mortgage and real estate portfolio of $38 billion and a Separate Real Estate Account portfolio

of $2.4 billion, altogether invested in 43 states, the District of Columbia, Canada and Western Europe.  TIAA invests primarily in office buildings,

regional shopping centers, industrial parks, multi-family residential apartments, hotels and retirement communities.”

 

http://www.prnewswire.com/cgi-bin/micro_stories.pl?ACCT=840938&TICK=TIAA&STORY=/www/story/12-15-2000/0001387726&EDATE=Dec+15,+2000

 

Luik is also on the Real Estate Roundtable  Board of Directors

 

 

 7/1/02

 

“The slow deliberation by Congress and the SEC has left a vacuum for reformers, and private groups are filling that hole. Last week the Conference Board, a nonprofit group of corporate executives, announced it had formed a committee to draft standards for corporate governance and auditing. The group, cochaired by Blackstone Group Chairman Pete Peterson, will include Intel Chairman Andrew Grove, former Federal Reserve Chairman Paul Volcker, former SEC Chairman Arthur Levitt, and John Biggs, CEO of teachers pension fund giant TIAA-CREF.”

http://www.usnews.com/usnews/biztech/articles/020701/1sec.htm

 

Members of the Commission include:

 

Peter G. Peterson, Chairman of The Blackstone Group, former Secretary of Commerce and Chairman of the Federal Reserve Bank of New York

John W. Snow, Chairman, CSX Corporation and former Chairman, Business Roundtable

John H. Biggs, Chairman, President and CEO, TIAA-CREF

John Bogle, Founder and former Chairman, Vanguard Group, Inc.

Charles A. Bowsher, former Comptroller General

Andrew S. Grove, Chairman of Intel Corporation

Arthur Levitt, former SEC Chairman and former Chairman of the American Business Conference

Ralph Larsen, former Chairman and CEO of Johnson & Johnson, former Chairman of The Business Council

Professor Lynn Paine, Harvard Business School

Former Senator Warren Rudman, Paul, Weiss, Rifkind, Wharton & Garrison

Paul A.Volcker, former Chairman of the Board of Governors, Federal Reserve System

 

http://www.conference-board.org/search/dpress.cfm?pressid=1122

http://www.conference-board.org/newsletter/blueribbon.cfm

 

 

 

Executive Management

 

 

John H. Biggs

 

Chairman, President, and Chief Executive Officer; TIAA trustee since 1989; CREF trustee since 1983; Overseer since 1993

A.B., Harvard University; Ph.D., Washington University in St. Louis

 

**

 

Martin L. Leibowitz

 

Vice Chairman and Chief Investment Officer; TIAA and CREF trustee since 1995

B.A., M.S., University of Chicago; Ph.D., New York University

 

**

 

C. Victoria Apter

 

Executive Vice President, Information Technology

B.S., Pennsylvania State University

 

**

 

Scott C. Evans

 

Executive Vice President, CREF Investments

BA, Tufts University; Master of Management degree, Northwestern University

 

**

 

Martin E. Galt, III

 

Executive Vice President and President, TIAA-CREF Investment Products

BA, Washington and Lee University; J.D. and L.L.M., Washington University

 

**

 

Joseph J. Gazzoli

 

Vice President and President, TIAA-CREF Trust Company, FSB

BA, University of Virginia; JD, St. Louis University School of Law

 

**

 

Richard L. Gibbs

 

Executive Vice President, Finance and Planning

BA, Lehigh University; M.A., University of Michigan

 

**

 

Don W. Harrell

 

Executive Vice President, External Affairs

BA, Hendrix College; MA, American University; MA, George Washington University; Ph.D., Vanderbilt University

 

**

 

Ira J. Hoch

 

Executive Vice President, Financial Operations and Facilities

BS, Brooklyn College

 

**

 

Matina S. Horner

 

Executive Vice President, Human Resources

AB, Bryn Mawr College; MA and Ph.D., University of Michigan

 

**

 

E. Laverne Jones

 

Vice President and Corporate Secretary

BA, University of Illinois; JD, Northwestern University School of Law

 

**

 

Harry I. Klaristenfeld

 

Executive Vice President

and Chief Actuary,

BS, Brooklyn College

 

**

 

Frances Nolan

 

Executive Vice President, Retirement Services Administration

B.B.A., Dowling College; M.B.A., Iona College

 

**

 

Bertram L. Scott

 

Executive Vice President and President,

TIAA-CREF Life Insurance Company

BA, DePaul University

 

**

 

Deanne J. Shallcross

 

Executive Vice President, Marketing

AB, Mount Holyoke College; MBA Pace University

 

**

 

David A. Shunk

 

Executive Vice President, Consulting Services

BS, Rider College

 

**

 

John A. Somers

 

Executive Vice President, TIAA Investments

BS, Villanova University; MBA, University of Connecticut

 

**

 

Charles H. Stamm

 

Executive Vice President and General Counsel

AB, Princeton University; JD, Yale University

 

**

 

Mary Ann Werner

 

Executive Vice President and President,

Shared Services

BA, City College of New York

 

**

 

James A. Wolf

 

Executive Vice President and President,

Retirement Services

BS, Boston College

 

 

2001-2002 Boards of Overseers of TIAA and CREF

 

Lucius J. Barker

 

William Bennett Munro

Professor of Political Science Emeritus,

Stanford University

 

**

 

John H. Biggs

 

Chairman, President, and Chief Executive Officer, TIAA and CREF

 

**

 

William G. Bowen

 

President, The Andrew W. Mellon Foundation

 

**

 

Stanley O. Ikenberry

Regent Professor and President Emeritus, University of Illinois

 

**

 

Franklin D. Raines

 

Chairman and Chief Executive Officer, Fannie Mae (Federal National Mortgage Association).

 

**

 

Alair Ane Townsend

 

Publisher, Crain's New York Business and Vice President, Crain Communications, Inc.

 

**

 

Paul A. Volcker

 

Former Chairman, Federal Reserve Board, and Frederick H. Schultz Professor of International Economic Policy Emeritus, Princeton University

 

Paul A. Volcker was North American Chairman of the Trilateral Commission from 1991-2001. Mr. Volcker is former Chairman of Wolfensohn & Co., Inc.  (1988-96) and Frederick H. Schultz Professor Emeritus of International Economic Policy, Princeton University (1988-96). Mr. Volcker served as Chairman of the Board of Governors of the U.S. Federal Reserve System from 1979-87. Educated at Princeton and Harvard and the London School of Economics, Mr. Volcker divided the earlier stages of his career between the Federal Reserve Bank of New York, Chase Manhattan Bank, and the Treasury Department. He is a director, trustee, or member of several corporations and nonprofit organizations.

 

 

2001-2002 Trustees of TIAA

 

David Alexander

 

President Emeritus, Pomona College

 

**

 

Marcus Alexis

 

Visiting Professor of Economics, Stanford University and Board of Trustees Professor of Economics and Professor of Management and Strategy, Northwestern University

 

**

 

John H. Biggs

 

Chairman, President, and Chief Executive Officer, TIAA and CREF

 

**

 

Willard T. Carleton

 

Donald R. Diamond Professor of Finance Emeritus, College of Business and Public Administration, University of Arizona

 

**

 

Robert C. Clark

 

Dean and Royall Professor of Law, Harvard Law School, Harvard University

 

**

 

Estelle A. Fishbein

 

Vice President and General Counsel, The Johns Hopkins University

 

**

 

Frederick R. Ford

 

Executive Vice President and Treasurer Emeritus, Purdue University

 

**

 

Ruth Simms Hamilton

 

Professor of Sociology and Director of African Diaspora Research Project, Michigan State University

 

**

 

Rochelle B. Lazarus

 

Chairman and Chief Executive Officer, Ogilvy & Mather Worldwide

 

**

 

Martin L. Leibowitz

 

Vice Chairman and Chief Investment Officer, TIAA and CREF

 

**

 

Robert M. O’Neil

 

Director, The Thomas Jefferson Center for the Protection of Free Expression;

Professor of Law, University of Virginia

 

**

 

Leonard S. Simon

 

Vice Chairman, Charter One Financial Inc.

 

**

 

Ronald L. Thompson

 

Chairman and Chief Executive Officer, Midwest Stamping Co.

 

**

 

Paul R. Tregurtha

 

Chairman and Chief Executive Officer, Mormac Marine Group, Inc. and Moran Transportation Company, Inc.; Vice Chairman,The Interlake Steamship Company

 

**

 

William H. Waltrip

 

Chairman and Chief Executive Officer, Bausch & Lomb, Incorporated; Chairman, Technology Solutions Company

 

**

 

Rosalie J. Wolf

 

Managing Director, Laurel Management Company, LLC

 

 

2001-2002 Trustees of CREF

 

Elizabeth E. Bailey

 

John C. Hower Professor of Public Policy and Management, The Wharton School, University of Pennsylvania

 

**

 

John H. Biggs

 

Chairman, President, and Chief Executive Officer, CREF and TIAA

 

**

 

Joyce A. Fecske

 

Vice President Emerita, DePaul University

 

**

 

Edes P. Gilbert

 

Retired Head, The Spence School; Acting President, Independent Educational Services

 

**

 

Martin J. Gruber

 

Nomura Professor of Finance, Leonard N. Stern School of Business, New York University

 

**

 

Nancy L. Jacob

 

President and Managing Principal, Windermere Investment Associates

 

**

 

Marjorie Fine Knowles

 

Professor of Law, College of Law, Georgia State University

 

**

 

Martin L. Leibowitz

 

Vice Chairman and Chief Investment Officer, CREF and TIAA

 

**

 

Bevis Longstreth

 

Of Counsel, Debevoise & Plimpton

 

**

 

Stephen A. Ross

 

Franco Modigliani Professor of Finance and Economics, Sloan School of Management, Massachusetts Institute of Technology

 

**

 

Nestor V. Santiago

 

Vice President and Chief Investment Officer, Howard Hughes Medical Institute

 

**

 

Eugene C. Sit

 

Chairman, Chief Executive Officer, and Chief Investment Officer, Sit Investment Associates, Inc. and Sit/Kim International Investment Associates, Inc.

 

**

 

Maceo K. Sloan

 

Chairman and Chief Executive Officer, NCM Capital Management Group, Inc. and Sloan Financial Group, Inc.

 

**

 

David K. Storrs

 

President and Chief Executive Officer, Alternative Investment Group, L.L.C.

 

**

 

Robert W. Vishny

 

Eric J. Gleacher Professor of Finance, Graduate School of Business, University of Chicago

 

 

(source: http://www.tiaa-cref.org/pressroom/bios.html  )