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NEW CREF GLOBAL EQUITIES ACCOUNT EXPANDS DIVERSIFICATION OF TIAA-CREF RETIREMENT SYSTEM

 NEW CREF GLOBAL EQUITIES ACCOUNT EXPANDS DIVERSIFICATION
 OF TIAA-CREF RETIREMENT SYSTEM
 NEW YORK, April 13 /PRNewswire/ -- College Retirement Equities Fund announced today that it will introduce a new CREF Global Equities account on July 1, 1992. CREF is the equity investment component of TIAA-CREF, the nation's largest pension fund with $104 billion in assets under management. The CREF Global Equities Account's investment objective is to achieve favorable long-term returns through capital appreciation and investment income, from a broadly diversified portfolio consisting primarily of foreign and domestic common stocks.
 "We are delighted to add the CREF Global Equities Accounts to the select investment vehicles available to our participants," said Dr. Clifton R. Wharton Jr., TIAA-CREF chairman and chief executive officer. "This new account -- the fourth introduced since 1988 -- will provide for both diversification and the growth opportunities afforded by the increasingly important global market."
 Like three other CREF Accounts -- Bond Market, Social Choice, and Money Market -- the Global Equities Account is designed to handle most participants to fulfill specific investment objectives, while they continue to use the "classic" CREF Stock Account and the TIAA Traditional Annuity as the foundation of their retirement savings. As such, TIAA-CREF suggests that the Global Equities Account should supplement, rather than replace, participation in the CREF Stock Account, which was introduced in 1952 as the nation's first variable annuity.
 "The dramatic breaking down of barriers between the world's capital markets is largely responsible for TIAA-CREF's decision to design and introduce the Global Equities Account," said James S. Martin, CREF executive vice president. "From 1984 to 1990, cross-border equity flows increased from $300 billion to about $1.7 trillion annually. The non- U.S. share of the world's total equity market capitalization has increased to 62 percent today.
 "Current international economic conditions make the Global Equities Account particularly attractive for participants seeking long-term growth opportunities necessary to outpace inflation," Martin added. "Recent and pending developments in Europe, the Far East, and Latin America make it likely that foreign markets will continue to expand. The Global Equities Account will enable participants to invest more of their retirement savings in the growing international financial marketplace."
 Initial plans call for at least 50 percent of the Global Equities Account's assets to be in foreign securities and 25 percent in domestic securities, with the balance distributed as deemed appropriate by CREF at any given time. The account will initially invest largely in counties with well-established markets, but may invest increasingly in economically developing nations as such opportunities emerge.
 The Global Equities Account will adhere to TIAA-CREF's long-standing policy of prudent retirement planning through investment diversification. "Investment diversification in international securities may also help somewhat offset fluctuations in domestic markets," Martin said.
 The account will be actively managed by the same investment professionals responsible for the CREF Stock Account, which has invested a portion of its portfolio in foreign securities since 1973, when it became one of the first pension funds to invest globally. Currently, about 14 percent, or $6 billion, of the $44 billion CREF Stock Account is invested in the markets of 27 foreign countries.
 "Active management of the Global Equities Account will enable us to select attractive investments throughout the world," Martin said, "Over the long-term, we will seek to produce growth that exceeds the markets in general."
 As is true for all CREF Accounts, the Global Equities Account is a variable investment, and its returns will fluctuate. The new account's total annual expenses are estimated to be approximately 0.47 percent of assets, slightly more than the other three CREF accounts due to higher costs associated with foreign investing.
 As with the CREF Bond Market and Social Choice Accounts, TIAA-CREF participants will be able to invest in the new CREF Global Equities Account providing that their employer elects to make it available as part of the institution's TIAA-CREF Retirement or Group Retirement Annuity. The Global Equities Account will be used as both an accumulation and payout vehicle.
 TIAA-CREF currently serves 1.5 million employees at 4,800 educational and research institutions.
 CREF certificates are distributed by TIAA-CREF Individual & Institutional Services. Investment advisory services are provided to CREF by TIAA-CREF Investment Management.
 Information contained herein is subject to completion and amendment. A registration statement relating to the CREF Global Equities Account has been filed with the Securities and Exchange Commission. Money may not be invested in the account before the time the registration statement becomes effective. This press release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 -0- 4/13/92
 /CONTACT: Tom Pinto of TIAA-CREF, 212-916-5986/ CO: College Retirement Equities Fund ST: New York IN: FIN SU: PDT


CK-TS -- NY025 -- 7659 04/13/92 10:35 EDT
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Publication:PR Newswire
Date:Apr 13, 1992
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