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 SAN FRANCISCO, Nov. 12 /PRNewswire/ -- College Retirement Equities Fund (CREF), the $59 billion equity component of the nationwide TIAA- CREF pension system for higher education, held its annual meeting for policyholders in San Francisco today. (TIAA Trustees also elected. See below.)
 Speaking at the Stouffer Stanford Court Hotel, TIAA-CREF Chairman and CEO John H. Biggs reported on the substantial growth of the $125 billion TIAA-CREF pension system, now in its 75th year, and TIAA-CREF's products and services for 1.6 million participants at 5,200 educational institutions across the U.S.
 The CREF annual meeting was held consistent with the Investment Company Act of 1940 and the regulations of the Securities and Exchange Commission.
 CREF Investment Operations
 Reporting on CREF investment operations, Biggs said that all five CREF variable annuity investment accounts -- Stock, Global Equities, Money Market, Bond Market, and Social Choice -- have posted favorable returns year-to-date as of Sept. 30, as reported directly to all 1.3 million participants currently accumulating future pension benefits in TIAA-CREF. (See below for CREF Performance figures.)
 CREF's flagship Stock Account, with $54 billion in assets at Sept. 30, remains the nation's single largest managed equity fund. "The Stock Account has benefited from the decision of trustees and management to have approximately 15 percent of its portfolio invested in foreign stocks, and to diversify domestic stocks into small stock categories," Biggs said. "With an average annualized return of 14.4 percent for the ten years ended Sept. 30, the CREF Stock Account has outperformed the Lipper General Equity Funds, Growth Fund and Growth-and-Income Fund Averages for this period."
 Global Equities Account Tops $l Billion in First Year
 Biggs reported that the CREF Global Equities Account, introduced in May 1992, has already topped $1 billion in assets, "perhaps among the most rapidly growing funds in the history of the mutual fund business."
 "CREF's long-standing commitment to international diversification, dating back to the early 1970s, has positioned us well in today's global economic and investment climate," he said. "The enthusiastic reception of the new CREF Global Equities Account underscores the awareness of the company to its participants and their investment interests."
 The CREF Social Choice Account, introduced in March 1990, also demonstrates this awareness, Biggs said. With over $664 million in assets, up from $275 million a year ago, it is now the largest fund of its kind in the U.S. The CREF Board is moving toward eliminating the screen on South Africa-related investments, Biggs said, in recognition of developments presaging the end of apartheid. The other CREF Social Choice Account screens -- relating to military weapons, the environment, nuclear energy, tobacco and alcohol products, and operations in Northern Ireland -- will remain in effect.
 The CREF Bond Market Account, with $639 million in assets, and the $2.6 billion CREF Money Market Account, complement the CREF Stock, Global Equities and Social Choice Accounts, Biggs said, "offering participants excellent opportunity for diversifying their retirement savings."
 TIAA Investments
 Biggs also reported that the TIAA investment portfolio -- diversified among public bonds, direct placements, and high-quality commercial mortgages and real estate -- will exceed $66 billion by year-end 1993, up from $61.7 billion at year-end 1992. TIAA is one of only three U.S. life insurance companies -- out of 2,200 -- now holding the highest possible Triple-A ratings for overall financial strength and claims-paying ability from all four of the nation's top independent ratings agencies -- Moody's Investor Service, Standard & Poor's, Duff & Phelps, and A.M. Best Co.
 Growth in Pensions and Insurances
 Biggs noted the extraordinary growth in TIAA-CREF's assets, and in its pension and insurance operations, as the organization marks its 75th anniversary this year.
 The number of participants accumulating future benefits is expected to reach 1,316,000 by year-end, up from 1,240,000 at year-end 1992. Over 200 new participating institutions will join TIAA-CREF this year, bringing the total to 5,200.
 Total TIAA-CREF assets are projected to top $127 billion by year-end, up over 12 percent from $113 billion at year-end 1992. Total premium income is estimated to be $5.3 billion, up from $4.8 billion in 1992. TIAA individual life insurance issues are running 15 percent ahead of 1992, he said, and individual life insurance in force is estimated to reach $28 billion by year-end, up from $25.1 billion at year-end 1992.
 "TIAA-CREF began the year as the country's outstanding provider of retirement and insurance programs in education," Biggs concluded. "We believe we will reach year-end with that enviable position strengthened, and with significant new ideas for enhancing future services to the constituency we serve."
 Election of CREF Trustees
 Proxy voting among nearly one million CREF participants re-elected four CREF trustees to additional four-year terms on the CREF Board, and elected one new CREF trustee to a four-year term. The four re-elected trustees are Edes P. Gilbert, head of The Spence School; Stephen A. Ross, Sterling Professor of Economics and Finance at Yale University's School of Organization and Management; Maceo K. Sloan, chairman, president and CEO of Sloan Financial Group, Inc. and NCM Capital Management Group, Inc.; and Harry K. Spindler, senior vice chancellor, Division of Administrative Affairs, State University of New York System. Newly elected to a four-year term as CREF Trustee is Joyce A. Fecske, vice president for human resources at DePaul University.
 Proxy Voting on Other Items
 The order of business at the annual meeting also included the participants' ratification of the selection by CREF of Deloitte & Touche as its independent auditor, and action on a proxy resolution filed by a CREF participant.
 This resolution, which proposed that compensation of CREF officers and employees be governed by compensation policies in effect for "comparable positions in government and in public institutions of higher learning," was defeated by CREF participants in the proxy ballot voting, with 31.9 percent of the votes cast for the proposal, 54.9 percent against, and 13.2 percent abstained.
 NEW YORK -- In a separate but related action, four trustees were re-elected to the TIAA Board of Trustees to serve additional four-year terms on the TIAA Board, and one new TIAA Trustee was elected. Although officially elected by the seven member TIAA Board of Overseers, these choices reflected ballot preferences of TIAA participants.
 Re-elected for terms ending in 1997 are Flora Mancuso Edwards, president of Middlesex County College; Leonard S. Simon, chairman and CEO of The Rochester Community Savings Bank; Paul R. Tregurtha, chairman, CEO and a director of Mormac Marine Group, and vice chairman of Interlake Steamship Company; and Charles J. Urstadt, chairman and president of HRE Properties. Newly elected to a four-year term as TIAA Trustee is Robert M. O'Neil, professor of law at the University of Virginia, and director of The Thomas Jefferson Center for the Protection of Free Expression.
 Seeking Strength through Diversity
 TIAA-CREF Chairman John Biggs noted that the TIAA and CREF operating Boards seek strength through diversity of expertise as well as through age, gender, ethnic and racial diversity. Of the 38 TIAA and CREF trustees, 17 are from college campuses (seven presidents and administrators, and ten faculty members); 15 are executives experienced in investment, finance, and business; one member is from an independent school and another from an educational association; and three are TIAA-CREF management officers. Ten trustees are women, and ten are minorities. The 38 trustees include 25 participants, one of whom is an annuitant.
 Average Annual
 Periods Compound Rates Cumulative Rates
 CREF ACCOUNT Ending 9/30/93 of Total Return of Total Return
 Stock 1 year 16.01 percent 16.01 percent
 5 years 13.76 percent 90.53 percent
 10 years 14.48 percent 286.77 percent
 Money Market 1 year 3.08 percent 3.08 percent
 5 years 6.38 percent 36.24 percent
 Since inception
 (4/1/88) 6.46 percent 41.12 percent
 For the seven days ending Sept. 30, 1993:
 Net annualized current yield: 3.04 percent
 Net annualized effective yield: 3.09 percent
 Bond Market 1 year 11.61 percent 11.61 percent
 Since inception
 (3/1/90) 12.23 percent 51.21 percent
 Social Choice 1 year 14.84 percent 14.84 percent
 Since inception
 (3/1/90) 13.91 percent 59.45 percent
 Global Equities 1 year 21.86 percent 21.86 percent
 Since inception
 (5/1/92) 16.73 percent 24.50 percent
 Performance information for CREF variable annuity investment accounts reflects past investment results. Yields may vary, and the total return for each account may rise or fall. CREF investment results shown above are after all investment, administrative and distribution expenses.
 NOTE: For more complete information about CREF, including charges and expenses, obtain a prospectus from College Retirement Equities Fund, 730 Third Ave., New York, NY 10017. Read the prospectus carefully before you invest or send money.
 -0- 11/12/93
 /CONTACT: Claire M. Sheahan, public information officer of TIAA-CREF, 212-916-4666/

CO: College Retirement Equities Fund ST: California, New York IN: SU:

SH-MP -- NY030 -- 3771 11/12/93 14:45 EST
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Date:Nov 12, 1993

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