UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
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TIAA-CREF INSTITUTIONAL MUTUAL FUNDS | |||
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145810-2
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Dear Shareholder:
On January X, 2006, the TIAA-CREF Institutional Mutual Funds will hold a special meeting of the shareholders of its International Equity, Large-Cap Value, Small-Cap Equity, Real Estate Securities, Social Choice Equity, Bond, Inflation-Linked Bond and Money Market Funds.
The purpose of this meeting is to vote on a proposed new investment management agreement with Teachers Advisors, Inc. (the “Advisor”), the current investment advisor to these Funds. This proposal is the same as the proposal for these eight Funds originally presented for shareholder approval in a proxy statement dated July 5, 2005, and voted on at a special shareholder meeting on August 31, 2005.
Because approval of the proposed agreement is vital to the future operation of these Funds, and because some shareholders have indicated a willingness to re-examine their vote if given more time to fully consider the proposal, the Advisor has recommended, and we have agreed, to provide a second opportunity to do so.As before, we, the Funds’ independent Board of Trustees, unanimously recommend that you vote “FOR” the new investment management agreement.
As explained in the original proxy materials, the proposed new investment management agreement would help ensure that the Funds remain fairly and competitively priced and continue to serve shareholder needs, while also providing a sustainable fee and expense structure that enables the Advisor to continue managing the Funds. It’s important for you to understand that although the new agreement would result in higher advisory fees, the Funds would remain competitive with the lower-priced offerings in the industry.
In submitting this proposal to you a second time, we want to offer additional perspective on both the proposal itself and on the careful deliberative process that led to the Board’s unanimous recommendation so that you have a fuller understanding of these matters and can make an informed decision.
• | Thorough, independent review of the proposal.The Board of Trustees of the TIAA-CREF Institutional Mutual Funds is completely independent of the management of the Advisor. In considering the proposal, the Board conducted a comprehensive review process that began in December 2004 and concluded in May 2005. We questioned the Advisor rigorously and compared the Funds’ performance and expenses with those of competing funds, using data supplied by Lipper, Inc., widely recognized as a leading independent provider of investment company data. In addition, we had the benefit of independent legal counsel throughout our deliberations. |
• | Benefits of the proposal.As a result of our in-depth review, we determined that the proposal would benefit shareholders because it enables the Funds’ Advisor to: |
— | Continue to manage the day-to-day business affairs of the Funds; |
— | Retain and attract highly qualified investment professionals; |
— | Increase the capacity of its investment management staff and expand the depth and scope of its analysts’ coverage; and |
— | Continue to offer a high level of service to shareholders. |
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• | Potential consequences if proposal is not approved.If shareholders do not approve the proposed new investment management agreement, the Advisor has informed the Board that it may no longer be able to serve in its advisory role to the Funds. In that case, the Advisor will recommend other possible courses of action, including closing the Funds to new investments or liquidating them, which could have negative consequences for shareholders. The Board would consider the Advisor’s recommendations, along with all other possible alternatives, in determining a course of action that would be in the best interests of Fund shareholders. |
• | Fiduciary responsibility and ongoing oversight.The Board has a fiduciary responsibility to protect shareholder interests, which includes ensuring that all fees are appropriate, fair, and conducive to the efficient and effective operation of the Funds. If the proposed fee increases are approved by shareholders, the Board will review the Advisor’s profitability levels during its annual review of the Funds’ management arrangements to ensure that the fees and any profits earned by the Advisor remain reasonable in light of the Funds’ asset levels and performance. |
In conclusion, the Board remains unanimous in its support of the proposal because we are convinced that its approval represents the best possible outcome for shareholders. We urge you to read the information on the following pages carefully, along with the enclosed proxy statement, and vote “FOR” the new investment management agreement.
The Board of Trustees
TIAA-CREF Institutional Mutual Funds
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TIAA-CREF INSTITUTIONAL MUTUAL FUNDS
Special Shareholder Meeting • January X, 2006
Important Voting Information for Shareholders
The TIAA-CREF Institutional Mutual Funds (the “Institutional Funds”) will hold a special meeting of the shareholders of its International Equity, Large-Cap Value, Small-Cap Equity, Real Estate Securities, Social Choice Equity, Bond, Inflation-Linked Bond and Money Market Funds on January X, 2006, to consider and vote on an important proposal affecting these Funds. As a shareholder of record as of October 31, 2005, you are entitled to vote on this proposal, and your Board of Trustees urges you to do so.
YOUR VOTE IS IMPORTANT
The following Q&A provides a summary of the proposal and describes the convenient options available for voting your shares. (For a complete discussion of the proposal, please see the enclosed proxy statement.) To help reach the level of shareholder participation required, please vote today, even if you plan to attend the special meeting on January X. Simply follow the instructions on the enclosed proxy card(s) and choose the voting method that works best for you— Internet, telephone or mail. Your prompt action will ensure your voice is heard, so vote your shares now!
1. What proposal am I being asked to consider?
You are being asked to approve the adoption of a new investment management agreement that would apply to each of the following TIAA-CREF Institutional Mutual Funds: International Equity; Large-Cap Value; Small-Cap Equity; Real Estate Securities; Social Choice Equity; Bond; Inflation-Linked Bond; and Money Market Funds. This proposal, which would result in higher advisory fees for these eight Funds, is the same as the proposal for these Funds originally presented for shareholder approval in a proxy statement dated July 5, 2005, and voted on at a special shareholder meeting on August 31, 2005.
2. Why has this proposal been resubmitted to shareholders?
In the original proxy vote, shareholders of 21 Funds offered by TIAA-CREF Institutional Mutual Funds approved a new investment management agreement with Teachers Advisors, Inc. (the “Advisor”), the current investment advisor to the Funds. Although many individual Fund shareholders supported the proposal, it was not approved for the eight Funds listed above, primarily as a result of the voting by a few large, institutional shareholders. However, because some of these shareholders have indicated a willingness to re-examine their vote if given more time to fully consider the proposal, the Advisor has recommended, and the Funds’ independent Board of Trustees has agreed, to provide a second opportunity to vote on it.
3. The Growth Equity Fund was among the Institutional Funds included in the original proxy vote. Why is it not part of this second vote?
In the original vote, shareholders of the Growth Equity Fund did not approve the proposed new investment management agreement. The Advisor determined, and the Board concurred,
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that shareholders of this Fund were unlikely to change their votes. In addition, as noted in the original proxy statement, the Advisor had previously committed not to raise the advisory fee rate on the Growth Equity Fund until April 2007. For these reasons, the Growth Equity Fund is not part of the current proxy solicitation.
4. I voted on this proposal during the original proxy vote held last August. Do I need to vote again?
Yes. We are holding a new meeting to consider this proposal, with a new shareholder record date.Any vote that you cast on this proposal for the prior meeting does not count for this meeting, and you will need to vote again.
5. What will happen if shareholders do not approve the new investment management agreement?
The Advisor has indicated that it may not be able to continue in its advisory role to the eight Funds unless the new investment management agreement is approved, since the fees under the current agreement are not adequate to cover the costs of operating the Funds. If the new agreement is not approved, the Advisor may recommend to the Board of Trustees other possible courses of action, including a likely series of steps that could have negative consequences for shareholders:
• | First, the Funds would be closed to new investments. |
• | Second, subject to shareholder approval, the Advisor would seek to merge the Funds into new funds with the same objectives, strategies and portfolio management, but with higher fee rates comparable to those specified in the proposed new investment management agreement. |
• | Finally, if shareholders were to reject this proposed future merger, the Funds might ultimately be liquidated, which could have negative tax consequences for shareholders. |
The Board would consider the Advisor’s recommendations, along with all other possible alternatives, in determining a course of action that is in the best interests of Fund shareholders.
6. How will shareholders be affected if any of the Funds need to be closed or liquidated?
Either of these actions could have serious consequences for shareholders. Closing any of the Funds to new investments would likely result in a decline in the Fund’s total assets under management. This would reduce the Fund’s current economies of scale and make the effective management of the Fund more difficult. Liquidating any of the Funds could result in the sale of some holdings at prices disadvantageous to investors. Additionally, liquidation could result in unexpected capital gains distributions to investors, which could have adverse tax consequences for many of them. The Funds’ Board of Trustees believes that approval of the new investment management agreement is a better outcome for shareholders than closing or liquidating the Funds.
7. Has the Board of Trustees approved this proposal?
Yes. At a meeting held on May 17, 2005, the Board of Trustees of the TIAA-CREF Institutional Mutual Funds unanimously approved the Advisor’s recommended proposal listed above and described in full in the enclosed proxy statement. On October 26, 2005, the Board unanimously approved the Advisor’s recommendation to resubmit the same proposal to shareholders.
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8. How does the Board of Trustees suggest that I vote?
The Board unanimously recommends that all eligible shareholders vote “FOR” the proposal. In addition, at the time of the original proxy vote on this proposal, Institutional Shareholder Services (ISS) also recommended that shareholders vote “FOR” the new investment management agreement. ISS is recognized as a leading independent proxy advisory firm whose recommendations are relied upon by major institutional investment firms, mutual funds, and other fiduciaries.
9. I have other accounts with TIAA-CREF. Will they be affected by this proposal?
No. The specific proposals affect only the eight TIAA-CREF Institutional Mutual Funds specified in the enclosed proxy statement. Theydo not affectany of the following TIAA-CREF products:
• | College Retirement Equities Fund (CREF) investment accounts; |
• | TIAA Real Estate Account; |
• | TIAA Traditional Annuity; |
• | After-tax annuities; |
• | Variable life insurance products; or |
• | Other funds of the TIAA-CREF Institutional Mutual Funds that are not being resolicited for a vote. |
While not the subject of this proxy vote, the Advisor is expected to recommend that the TIAA-CREF Mutual Funds — a separate fund family designed primarily for retail investors — be consolidated with the TIAA-CREF Institutional Mutual Funds in the near future if this vote is successful. If and when this proposed consolidation is approved, the TIAA-CREF Mutual Funds would be merged into a corresponding TIAA-CREF Institutional Mutual Fund and would become subject to the fee and expense structure of that Fund.
10. Why is the investment management agreement being changed?
Since the Funds were established, the Advisor has been committed to providing high-quality investment management services at a low cost to shareholders. However, it has become clear that the Advisor set its fees too low to continue to cover its costs of operating the Funds. As a result, the Advisor has always operated the Funds at a loss. Despite these annual losses, the Advisor has not requested a fee increase since the Funds’ inception in 1999. It has become clear that this situation cannot be sustained, particularly in light of continued escalating costs related to increased compliance, regulatory, and reporting requirements, as well as intensified competition for investment management talent.
The proposed new investment management agreement with the Advisor is designed to provide a reasonable and sustainable fee and expense structure for the Funds while maintaining overall expenses at levels that are competitive with those of other low-cost providers in the mutual fund industry. In addition, the proposed fee increase would give the Advisor the flexibility and means to increase the capacity of its investment management staff, expand the depth and scope of analyst coverage, and attract and retain highly qualified investment management professionals in a competitive environment — all of which would enhance the Advisor’s ability to seek favorable investment returns for shareholders.
11. How will the new investment management agreement affect the Funds?
For each of the eight Funds, the new investment management agreement will raise advisory fees.
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12. How will TIAA-CREF’s proposed fund fees compare to those of other companies?
Even after adopting the higher fees, the Funds would remain competitive with the lower-priced offerings in the industry. (Please see pages XX-XX of the proxy statement for a comparison of each Fund’s total expenses to those of similar funds in its industry peer group.)
13. Is TIAA-CREF still committed to being a low-cost, high-value provider?
Yes. TIAA-CREF is committed to operating low-cost, high-value mutual funds for all shareholders. For this reason, the proposal to raise advisory fees on the actively managed Institutional Mutual Funds was made only after thorough and deliberate consideration of shareholders’ interests by the Funds’ Board of Trustees. The Board determined that the current level of fees being charged was too low for the Advisor to sustain and that the proposed increase in fees would not unduly benefit the Advisor at the expense of Fund shareholders. As part of its ongoing oversight of the Funds, the Board of Trustees will annually monitor the level of fees and the Advisor’s profits generated by the new agreement to ensure that they are reasonable.
14. As a shareholder, how will I benefit from the new investment management agreement?
The Board of Trustees has determined that the new investment management agreement is fair and reasonable to the Funds and to shareholders because it would:
• | Enable the Funds’ investment advisor to continue to offer you and other shareholders the high-quality service you have come to expect from TIAA-CREF, and to expand these shareholder services; |
• | Allow the Advisor to continue to retain and attract talented investment professionals and add new investment management personnel, which would benefit the Advisor’s overall investment management program; and |
• | Help ensure that the TIAA-CREF organization can continue to offer the Funds while remaining competitive with other low-cost providers in our industry. |
15. In addition to this specific proposal, does TIAA-CREF have an overall long-term plan for its mutual fund offerings?
TIAA-CREF is committed to operating low-cost, high-value mutual funds for all shareholders. Approval of the new investment management agreement is an essential first step in a broader effort to restructure and enhance TIAA-CREF’s mutual fund offerings so that the funds remain fairly and competitively priced for shareholders and continue to serve shareholder needs.
Assuming the new investment management agreement is approved, a planned second step, while not part of this proxy vote, would be the consolidation of the TIAA-CREF Mutual Funds into the TIAA-CREF Institutional Mutual Funds in the near future. If and when this proposed consolidation is approved, it would result in a streamlined fund family with greater efficiency, consistent pricing and improved economies of scale — all of which would permit the Funds to better serve your investment needs. As mentioned previously, if the new investment management agreement is not approved, the Advisor may create new funds with the same objectives, strategies and portfolio management as these eight Funds (but with the higher advisory fees specified in the enclosed proxy statement), into which the existing eight Funds may be merged, subject to shareholder approval. If these mergers are not approved, the Funds might then be liquidated.
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16. When will the proposed change take effect?
If approved by shareholders, changes to the investment management agreement would likely be implemented by February 1, 2006.
17. What level of shareholder support is needed to approve the proposal?
Approval of the new investment management agreement requires the lesser of (1) more than 50 percent of the total outstanding shares of the respective Funds or (2) at least 67 percent of the shares present at the respective shareholders’ meetings, either in person or by proxy, if more than 50 percent of the outstanding shares are represented.
18. Who is entitled to vote on these changes?
For each of the eight Funds, all shareholders of record as of October 31, 2005, are eligible to vote on this proposal and are urged to do so.
19. Who is bearing the costs associated with conducting this second proxy vote?
All expenses associated with this proxy vote, including the costs of holding the shareholder meeting and soliciting shareholders, are being borne by the Advisor, and not by any of the Institutional Funds.
20. When and where is the special shareholders’ meeting?
The special meeting of the shareholders of the TIAA-CREF Institutional Mutual Funds has been scheduled for January X, 2006, at X:XX p.m., at 730 Third Avenue, 17th Floor, New York, New York.
21. What method of voting may I use?
Simply select the voting format that you find most convenient:
• | Telephone (automated service): Call the toll-free number shown on your proxy card(s) and follow the recorded instructions |
• | Telephone(to speak to a representative of D.F. King & Co., the Funds’ proxy solicitor): 800 755-7250 (toll free) |
• | Internet: Access the Web site shown on your proxy card(s) and follow the online instructions |
• | Mail: Complete and return the enclosed proxy card(s) |
• | In person: Attend the special shareholder meeting on January XX, 2006 |
Whichever method you choose, please be sure to cast your vote as soon as possible. Even if you plan to attend the special shareholder meeting, you can vote in advance using one of the other methods.
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22. Who should I call if I have additional questions?
If you have questions related to the proxy material or need assistance in voting your shares, please contact D.F. King & Co., the Funds’ proxy solicitor, toll free at 800 755-7250.
730 Third Avenue
New York, New York 10017-3206
TO BE HELD ON JANUARY , 2006
1. | To approve a new investment management agreement between each Fund and Teachers Advisors, Inc. |
2. | To address any other business that may properly come before the meeting or any adjournments thereof. |
Secretary
730 Third Avenue
New York, New York 10017-3206
Special Meeting of Shareholders
to be held on January , 2006
1. | Approve a new investment management agreement between each Fund and Teachers Advisors, Inc. (the “Advisor”); |
2. | Address any other business that may properly come before the meeting or any adjournments thereof. |
(1) | By marking, signing, and mailing the enclosed proxy card in the postage-paid envelope provided; |
(2) | By logging on to the Internet site shown on your proxy card(s) and follow the on-screen instructions; |
(3) | By dialing the toll free telephone number shown on your proxy card(s) and follow the recorded instructions; and |
(4) | By voting in person at the special meeting. |
Fund | | Retail Class | | Institutional Class | | Retirement Class | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
International Equity Fund | — | 54,105,522.16 | 16,342,901.94 | |||||||||||
Large-Cap Value Fund | 12,547,012.12 | 14,544,078.16 | 10,106,655.68 | |||||||||||
Small-Cap Equity Fund | 4,502,858.92 | 7,258,791.26 | 10,256,090.72 | |||||||||||
Real Estate Securities Fund | 10,332,969.24 | 15,817,406.47 | 8,787,899.09 | |||||||||||
Social Choice Equity Fund | — | 9,600,840.56 | 4,447,029.03 | |||||||||||
Bond Fund | — | 130,949,369.43 | — | |||||||||||
Inflation-Linked Bond Fund | 6,326,951.48 | 27,172,970.32 | — | |||||||||||
Money Market Fund | — | 183,390,244.53 | — |
• | Restructure the pricing and the services to be provided by the Advisor under the Current Agreement, which will increase the level of advisory fees on the Funds. See pages for details on the fees to be charged under the Proposed Agreement. |
• | At the Board’s request, introduce a breakpoint schedule for the Funds (except for Money Market Fund and Social Choice Equity Fund), which may eventually reduce the advisory fee rates modestly on those Funds as total asset levels increase. |
• | Include provisions that will be applicable to all of the Funds making the Advisor responsible for providing certain additional management and administrative services necessary for the operation of the Funds, including providing office space, equipment and facilities for maintaining its operations and supervising relations with the Funds’ other service providers. Some of these services are currently paid for by the Funds as “other expenses” under a service agreement with the Advisor, which will be discontinued if shareholders approve the Proposed Agreement (except with respect to retirement plan platform fees for the Retirement Class). See page for more details. |
• | Continue to manage the day-to-day business affairs of the Funds |
• | Cover the costs of operating mutual funds |
• | Retain and attract highly qualified investment professionals |
• | Increase the capacity of its investment management staff and expand the depth and scope of its analysts’ coverage |
• | Continue to offer a high level of service to our shareholders and take steps to enhance those services. |
• | First, the Funds would be closed to new investments; |
• | Second, subject to shareholder approval, the Advisor would seek to merge each Fund into a corresponding new fund with the same objective, strategies and portfolio management, but with higher fee rates comparable to those specified in the Proposed Agreement; and |
• | Finally, if shareholders of any Fund rejected the merger, then that Fund would ultimately be liquidated, which might involve negative tax consequences for shareholders. |
• | The Proposed Agreement provides for an increase in the management fees for the Funds, as described below. |
• | At the Board’s request, the Proposed Agreement introduces a breakpoint schedule for most of the Funds, which may eventually modestly reduce the advisory fee rates on those Funds as total asset levels increase. |
• | The Proposed Agreement includes provisions making the Advisor responsible for providing certain additional management and administrative services necessary for the operation of the Funds, including providing office space, equipment and facilities for maintaining its operations and supervising relations with the Funds’ other service providers. Many of these services are currently paid for by the Funds as “other expenses” under a Service Agreement with the Advisor, which will be discontinued (except with respect to retirement plan platform fees for the Retirement Class) if shareholders approve the Proposed Agreement. |
FUND | | CURRENT AGREEMENT | | PROPOSED AGREEMENT | ||||||
---|---|---|---|---|---|---|---|---|---|---|
INTERNATIONAL EQUITY FUND | 0.09% | 0.50% or less* | ||||||||
LARGE-CAP VALUE FUND | 0.08% | 0.45% or less* | ||||||||
SMALL-CAP EQUITY FUND | 0.08% | 0.48% or less* | ||||||||
SOCIAL CHOICE EQUITY FUND | 0.04% | 0.15% | ||||||||
REAL ESTATE SECURITIES FUND | 0.09% | 0.50% or less* | ||||||||
BOND FUND | 0.08% | 0.30% or less* | ||||||||
INFLATION-LINKED BOND FUND | 0.09% | 0.30% or less* | ||||||||
MONEY MARKET FUND | 0.04% | 0.10% |
* | At the Board’s request, the management fees of these Funds have modest breakpoints that may eventually gradually reduce the fee rates from the amounts indicated in the chart as each Fund’s assets grow. To see the full breakpoint schedule for these Funds please see Exhibit A. To understand the impact of these breakpoints, please see the Funds’ most recent shareholder report or go to www.tiaa-cref.org for the Funds’ net assets as of a relatively recent date. |
FUND | | CURRENT FEES | | PRO FORMA FEES | | % INCREASE | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
INTERNATIONAL EQUITY FUND | $ | 519,437 | $ | 2,885,761 | 455.6 | % | ||||||||
LARGE-CAP VALUE FUND | $ | 167,917 | $ | 944,533 | 462.5 | % | ||||||||
SMALL-CAP EQUITY FUND | $ | 167,424 | $ | 1,004,544 | 500.0 | % | ||||||||
SOCIAL CHOICE EQUITY FUND | $ | 40,941 | $ | 153,529 | 275.0 | % | ||||||||
REAL ESTATE SECURITIES FUND | $ | 273,632 | $ | 1,520,178 | 455.6 | % | ||||||||
BOND FUND | $ | 757,785 | $ | 2,841,694 | 275.0 | % | ||||||||
INFLATION-LINKED BOND FUND | $ | 385,466 | $ | 1,284,887 | 233.3 | % | ||||||||
MONEY MARKET FUND | $ | 69,776 | $ | 174,440 | 150.0 | % |
* | Please note that Eugene Flood, Jr. and Howell E. Jackson, who are currently Trustees of the Funds, did not become members of the Board until August 31, 2005. |
• | First, closing the Funds to new investments; |
• | Second, subject to shareholder approval, seeking to merge each Fund into a corresponding new fund with the same objective, strategies and portfolio management, but with higher fee rates comparable to those specified in the Proposed Agreement; and |
• | Finally, if shareholders of any Fund rejected the merger, then liquidating that Fund, which could involve negative tax consequences for shareholders. |
Fund | | Proposed Total Expense Ratio | | Median Peer Total Expense Ratio | | Difference | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
INTERNATIONAL EQUITY FUND — Institutional | 0.59 | % | 1.19 | % | –0.60 | % | ||||||||
INTERNATIONAL EQUITY FUND — Retirement | 0.80 | % | 1.19 | % | –0.39 | % | ||||||||
LARGE-CAP VALUE FUND — Institutional | 0.50 | % | 1.07 | % | –0.57 | % | ||||||||
LARGE-CAP VALUE FUND — Retirement | 0.75 | % | 1.07 | % | –0.32 | % | ||||||||
LARGE-CAP VALUE FUND — Retail | 0.99 | % | 1.05 | % | –0.06 | % | ||||||||
SMALL-CAP EQUITY FUND — Institutional | 0.55 | % | 1.15 | % | –0.60 | % | ||||||||
SMALL-CAP EQUITY FUND — Retirement | 0.78 | % | 1.15 | % | –0.37 | % | ||||||||
SMALL-CAP EQUITY FUND — Retail | 1.16 | % | 1.26 | % | –0.10 | % | ||||||||
SOCIAL CHOICE EQUITY FUND — Institutional | 0.25 | % | 0.99 | % | –0.74 | % | ||||||||
SOCIAL CHOICE EQUITY FUND — Retirement | 0.48 | % | 0.99 | % | –0.51 | % | ||||||||
REAL ESTATE SECURITIES FUND — Institutional | 0.59 | % | 1.11 | % | –0.52 | % | ||||||||
REAL ESTATE SECURITIES FUND — Retirement | 0.80 | % | 1.11 | % | –0.31 | % | ||||||||
REAL ESTATE SECURITIES FUND — Retail | 0.99 | % | 1.18 | % | –0.19 | % | ||||||||
BOND FUND — Institutional | 0.34 | % | 0.69 | % | –0.35 | % | ||||||||
INFLATION-LINKED BOND FUND — Institutional | 0.35 | % | 0.35 | % | 0.00 | % | ||||||||
INFLATION-LINKED BOND FUND — Retail | 0.80 | % | 0.72 | % | +0.08 | % | ||||||||
MONEY MARKET FUND — Institutional | 0.15 | % | 0.43 | % | –0.28 | % |
highly qualified investment and administrative professionals in a competitive investment management environment. Heightened competition from traditional asset managers, banks, insurance companies and, particularly in recent years, hedge funds, has driven up the costs of attracting and retaining key personnel and the cost of technology to update and maintain necessary systems for effective investment management operations continues to grow. The Board also considered that the Advisor would like the flexibility and means to increase the capacity of its investment management staff and expand the depth and scope of analyst coverage, to enhance its investment management services to the Funds.
[UPDATE WITH 2005 NUMBERS]
| Management Fees | | Other Expenses | | Total Annual Fund Operating Expenses | | Expense Reimbursement | | Net Annual Fund Operating Expenses | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
INTERNATIONAL EQUITY FUND | ||||||||||||||||||||||
Current | 0.09 | % | 0.11 | % | 0.20 | % | — | 0.20 | % | |||||||||||||
Pro Forma | 0.50 | % | 0.06 | % | 0.56 | % | — | 0.56 | % | |||||||||||||
LARGE CAP VALUE FUND | ||||||||||||||||||||||
Current | 0.08 | % | 0.09 | % | 0.17 | % | 0.03 | % | 0.14 | % | ||||||||||||
Pro Forma | 0.45 | % | 0.03 | % | 0.48 | % | — | 0.48 | % | |||||||||||||
SMALL-CAP EQUITY FUND | ||||||||||||||||||||||
Current | 0.08 | % | 0.12 | % | 0.20 | % | 0.05 | % | 0.15 | % | ||||||||||||
Pro Forma | 0.48 | % | 0.08 | % | 0.56 | % | 0.01 | % | 0.55 | % | ||||||||||||
SOCIAL CHOICE EQUITY FUND | ||||||||||||||||||||||
Current | 0.04 | % | 0.06 | % | 0.10 | % | — | 0.10 | % | |||||||||||||
Pro Forma | 0.15 | % | 0.05 | % | 0.20 | % | — | 0.20 | % | |||||||||||||
REAL ESTATE SECURITIES FUND | ||||||||||||||||||||||
Current | 0.09 | % | 0.07 | % | 0.16 | % | — | 0.16 | % | |||||||||||||
Pro Forma | 0.50 | % | 0.06 | % | 0.56 | % | 0.01 | % | 0.55 | % | ||||||||||||
BOND FUND | ||||||||||||||||||||||
Current | 0.08 | % | 0.06 | % | 0.14 | % | — | 0.14 | % | |||||||||||||
Pro Forma | 0.30 | % | 0.03 | % | 0.33 | % | — | 0.33 | % | |||||||||||||
INFLATION-LINKED BOND FUND | ||||||||||||||||||||||
Current | 0.09 | % | 0.06 | % | 0.15 | % | 0.01 | % | 0.14 | % | ||||||||||||
Pro Forma | 0.30 | % | 0.04 | % | 0.34 | % | — | 0.34 | % | |||||||||||||
MONEY MARKET FUND | ||||||||||||||||||||||
Current | 0.04 | % | 0.05 | % | 0.09 | % | — | 0.09 | % | |||||||||||||
Pro Forma | 0.10 | % | 0.05 | % | 0.15 | % | — | 0.15 | % |
| Management Fees | | Other Expenses | | Total Annual Fund Operating Expenses | | Expense Reimbursement | | Net Annual Fund Operating Expenses | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
INTERNATIONAL EQUITY FUND | ||||||||||||||||||||||
Current | 0.09 | % | 0.49 | % | 0.58 | % | 0.03 | % | 0.55 | % | ||||||||||||
Pro Forma | 0.50 | % | 0.37 | % | 0.87 | % | 0.07 | % | 0.80 | % | ||||||||||||
LARGE-CAP VALUE FUND | ||||||||||||||||||||||
Current | 0.08 | % | 0.43 | % | 0.51 | % | 0.03 | % | 0.48 | % | ||||||||||||
Pro Forma | 0.45 | % | 0.34 | % | 0.79 | % | 0.04 | % | 0.75 | % | ||||||||||||
SMALL-CAP EQUITY FUND | ||||||||||||||||||||||
Current | 0.08 | % | 0.46 | % | 0.54 | % | 0.06 | % | 0.48 | % | ||||||||||||
Pro Forma | 0.48 | % | 0.37 | % | 0.85 | % | 0.07 | % | 0.78 | % | ||||||||||||
SOCIAL CHOICE EQUITY FUND | ||||||||||||||||||||||
Current | 0.04 | % | 0.48 | % | 0.52 | % | 0.08 | % | 0.44 | % | ||||||||||||
Pro Forma | 0.15 | % | 0.39 | % | 0.54 | % | 0.06 | % | 0.48 | % | ||||||||||||
REAL ESTATE SECURITIES FUND | ||||||||||||||||||||||
Current | 0.09 | % | 0.41 | % | 0.50 | % | 0.03 | % | 0.47 | % | ||||||||||||
Pro Forma | 0.50 | % | 0.34 | % | 0.84 | % | 0.03 | % | 0.81 | % |
| Management Fees | | Distribution (12b-1) Fees | | Other Expenses | | Total Annual Fund Operating Expenses | | Expense Reimbursement | | Net Annual Fund Operating Expenses | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
LARGE-CAP VALUE FUND | ||||||||||||||||||||||||||
Current | 0.08 | % | 0.00 | % | 0.41 | % | 0.49 | % | 0.05 | % | 0.44 | % | ||||||||||||||
Pro Forma | 0.45 | % | 0.25 | % | 0.29 | % | 0.99 | % | 0.19 | % | 0.80 | % | ||||||||||||||
SMALL-CAP EQUITY FUND | ||||||||||||||||||||||||||
Current | 0.08 | % | 0.00 | % | 0.30 | % | 0.38 | % | 0.08 | % | 0.30 | % | ||||||||||||||
Pro Forma | 0.48 | % | 0.25 | % | 0.43 | % | 1.16 | % | 0.31 | % | 0.85 | % | ||||||||||||||
REAL ESTATE SECURITIES FUND | ||||||||||||||||||||||||||
Current | 0.09 | % | 0.00 | % | 0.41 | % | 0.50 | % | 0.05 | % | 0.45 | % | ||||||||||||||
Pro Forma | 0.50 | % | 0.25 | % | 0.24 | % | 0.99 | % | 0.09 | % | 0.90 | % | ||||||||||||||
INFLATION-LINKED BOND FUND | ||||||||||||||||||||||||||
Current | 0.09 | % | 0.00 | % | 0.24 | % | 0.33 | % | 0.03 | % | 0.30 | % | ||||||||||||||
Pro Forma | 0.30 | % | 0.25 | % | 0.25 | % | 0.80 | % | 0.30 | % | 0.50 | % |
| 1 Year | | 3 Years | | 5 Years | | 10 Years | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
INTERNATIONAL EQUITY FUND | ||||||||||||||||||
Current | $ | 20 | $ | 64 | $ | 113 | $ | 255 | ||||||||||
Pro Forma | $ | 57 | $ | 179 | $ | 313 | $ | 701 | ||||||||||
LARGE-CAP VALUE FUND | ||||||||||||||||||
Current | $ | 14 | $ | 52 | $ | 93 | $ | 214 | ||||||||||
Pro Forma | $ | 49 | $ | 154 | $ | 269 | $ | 604 | ||||||||||
SMALL-CAP EQUITY FUND | ||||||||||||||||||
Current | $ | 15 | $ | 59 | $ | 108 | $ | 250 | ||||||||||
Pro Forma | $ | 56 | $ | 178 | $ | 312 | $ | 701 | ||||||||||
REAL ESTATE SECURITIES FUND | ||||||||||||||||||
Current | $ | 16 | $ | 52 | $ | 90 | $ | 205 | ||||||||||
Pro Forma | $ | 56 | $ | 178 | $ | 312 | $ | 701 | ||||||||||
SOCIAL CHOICE EQUITY FUND | ||||||||||||||||||
Current | $ | 10 | $ | 32 | $ | 56 | $ | 128 | ||||||||||
Pro Forma | $ | 20 | $ | 64 | $ | 113 | $ | 255 | ||||||||||
BOND FUND | ||||||||||||||||||
Current | $ | 14 | $ | 45 | $ | 79 | $ | 179 | ||||||||||
Pro Forma | $ | 34 | $ | 106 | $ | 185 | $ | 418 | ||||||||||
INFLATION-LINKED BOND FUND | ||||||||||||||||||
Current | $ | 14 | $ | 47 | $ | 84 | $ | 191 | ||||||||||
Pro Forma | $ | 35 | $ | 109 | $ | 191 | $ | 431 | ||||||||||
MONEY MARKET FUND | ||||||||||||||||||
Current | $ | 9 | $ | 29 | $ | 51 | $ | 115 | ||||||||||
Pro Forma | $ | 15 | $ | 48 | $ | 85 | $ | 192 |
| 1 Year | | 3 Years | | 5 Years | | 10 Years | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
INTERNATIONAL EQUITY FUND | ||||||||||||||||||
Current | $ | 56 | $ | 183 | $ | 321 | $ | 723 | ||||||||||
Pro Forma | $ | 82 | $ | 271 | $ | 476 | $ | 1,069 | ||||||||||
LARGE-CAP VALUE FUND | ||||||||||||||||||
Current | $ | 49 | $ | 161 | $ | 282 | $ | 638 | ||||||||||
Pro Forma | $ | 77 | $ | 248 | $ | 435 | $ | 976 | ||||||||||
SMALL-CAP EQUITY FUND | ||||||||||||||||||
Current | $ | 49 | $ | 167 | $ | 296 | $ | 671 | ||||||||||
Pro Forma | $ | 80 | $ | 264 | $ | 465 | $ | 1,046 | ||||||||||
SOCIAL CHOICE EQUITY FUND | ||||||||||||||||||
Current | $ | 45 | $ | 159 | $ | 283 | $ | 645 | ||||||||||
Pro Forma | $ | 49 | $ | 167 | $ | 296 | $ | 673 | ||||||||||
REAL ESTATE SECURITIES FUND | ||||||||||||||||||
Current | $ | 48 | $ | 157 | $ | 277 | $ | 625 | ||||||||||
Pro Forma | $ | 83 | $ | 265 | $ | 463 | $ | 1,036 |
| 1 Year | | 3 Years | | 5 Years | | 10 Years | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
LARGE-CAP VALUE FUND | ||||||||||||||||||
Current | $ | 45 | $ | 152 | $ | 269 | $ | 611 | ||||||||||
Pro Forma | $ | 82 | $ | 297 | $ | 530 | $ | 1,205 | ||||||||||
SMALL-CAP EQUITY FUND | ||||||||||||||||||
Current | $ | 31 | $ | 114 | $ | 205 | $ | 473 | ||||||||||
Pro Forma | $ | 87 | $ | 339 | $ | 612 | $ | 1,400 | ||||||||||
REAL ESTATE SECURITIES FUND | ||||||||||||||||||
Current | $ | 46 | $ | 155 | $ | 275 | $ | 623 | ||||||||||
Pro Forma | $ | 92 | $ | 307 | $ | 539 | $ | 1,209 | ||||||||||
INFLATION-LINKED BOND FUND | ||||||||||||||||||
Current | $ | 31 | $ | 103 | $ | 182 | $ | 415 | ||||||||||
Pro Forma | $ | 51 | $ | 226 | $ | 417 | $ | 975 |
Name | | Fund and Class | | Shares | | Percentage | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Herbert M. Allison, Jr. | Large-Cap Value Fund (Retail Class) | 95,206.65 | 2.11% | |||||||||||
subsequent shareholders’ meeting will vote in their discretion with respect to proposals submitted on an untimely basis.
commission rates available, if Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage, research and other services provided by such broker or dealer, viewed in terms of either that particular transaction or Advisor’s overall responsibilities with respect to each Fund. The policies with respect to brokerage allocation, determined from time to time by the Board are those disclosed in the currently effective registration statement. Advisor will periodically evaluate the statistical data, research and other investment services provided to it by brokers and dealers. Such services may be used by Advisor in connection with the performance of its obligations under this Agreement or in connection with other advisory or investment operations including using such information in managing its own accounts.
prepare and to file all periodic financial reports or other documents required to be filed with the Securities and Exchange Commission and any other regulatory entity;
materials, registration statements and post-effective amendments thereto, shareholder reports, and Rule 24f-2 notices;
and proxy statements; maintenance of non-investment-related books and records, compliance program development and implementation costs, costs of preparing, printing and mailing registration statements and updated prospectuses to current shareholders; costs in connection with the registration or qualification of shares with federal and state securities authorities and the continued qualification of shares for sale; expenses of all audits by Trust’s independent accountants, costs of preparing and filing reports with regulatory bodies; costs of the maintenance of Trust’s fidelity bond required by Section 17(g) of the 1940 Act, or other insurance premiums; the fees of any trade association of which the Funds are members; fees and expenses of trustees who are not “interested persons” (as such term is defined in the 1940 Act) of Trust (the “disinterested trustees”); brokerage commissions, dealer markups and other expenses incurred in the acquisition or disposition of any securities or other investments; costs, including the interest expense, of borrowing money; preparing and filing tax returns, the payment of any taxes; and extraordinary expenses (including extraordinary litigation expenses and extraordinary consulting expenses).
(a) | If to Trust or the Funds — TIAA-CREF Institutional Mutual Funds 730 Third Avenue New York, New York 10017-3206 Attention: [ ] |
(b) | If to Advisor — Teachers Advisors, Inc. 730 Third Avenue New York, New York 10017-3206 Attention: Scott Evans |
Title: Title:
Title: Title:
Real Estate Securities Fund
Assets Under Management (Billions) | | Fee Rate (average daily net assets) | ||||
---|---|---|---|---|---|---|
$0.0 – $1.0 | 0.50 | % | ||||
Over $1.0 – $2.5 | 0.48 | % | ||||
Over $2.5 – $4.0 | 0.46 | % | ||||
Over $4.0 | 0.44 | % |
Large-Cap Value Fund
Assets Under Management (Billions) | | Fee Rate (average daily net assets) | ||||
---|---|---|---|---|---|---|
$0.0 – $1.0 | 0.45 | % | ||||
Over $1.0 – $2.5 | 0.43 | % | ||||
Over $2.5 – $4.0 | 0.41 | % | ||||
Over $4.0 | 0.39 | % |
Mid-Cap Value Fund
Small-Cap Equity Fund
Assets Under Management (Billions) | | Fee Rate (average daily net assets) | ||||
---|---|---|---|---|---|---|
$0.0 – $0.5 | 0.48 | % | ||||
Over $0.5 – $0.75 | 0.46 | % | ||||
Over $0.75 – $1.00 | 0.44 | % | ||||
Over $1.0 | 0.42 | % |
Assets Under Management (Billions) | | Fee Rate (average daily net assets) | ||||
---|---|---|---|---|---|---|
$0.0 – $1.0 | 0.35 | % | ||||
Over $1.0 – $2.5 | 0.34 | % | ||||
Over $2.5 – $4.0 | 0.33 | % | ||||
Over $4.0 | 0.32 | % |
Bond Plus Fund
Inflation-Linked Bond Fund
Tax-Exempt Bond Fund
Assets Under Management (Billions) | | Fee Rate (average daily net assets) | ||||
---|---|---|---|---|---|---|
$0.0 – $1.0 | 0.30 | % | ||||
Over $1.0 – $2.5 | 0.29 | % | ||||
Over $2.5 – $4.0 | 0.28 | % | ||||
Over $4.0 | 0.27 | % |
Short-Term Bond Fund
Assets Under Management (Billions) | | Fee Rate (average daily net assets) | ||||
---|---|---|---|---|---|---|
$0.0 – $1.0 | 0.25 | % | ||||
Over $1.0 – $2.5 | 0.24 | % | ||||
Over $2.5 – $4.0 | 0.23 | % | ||||
Over $4.0 | 0.22 | % |
Large-Cap Value Index Fund
Equity Index Fund
S&P 500 Index Fund
Mid-Cap Growth Index Fund
Mid-Cap Value Index Fund
Mid-Cap Blend Index Fund
Small-Cap Growth Index Fund
Small-Cap Value Index Fund
Small-Cap Blend Index Fund
International Equity Index Fund
Assets Under Management (Billions) | | Fee Rate (average daily net assets) | ||||
---|---|---|---|---|---|---|
All Assets | 0.04 | % |
Assets Under Management (Billions) | | Fee Rate (average daily net assets) | ||||
---|---|---|---|---|---|---|
All Assets | 0.15 | % |
Assets Under Management (Billions) | | Fee Rate (average daily net assets) | ||||
---|---|---|---|---|---|---|
All Assets | 0.00 | % |
Assets Under Management (Billions) | | Fee Rate (average daily net assets) | ||||
---|---|---|---|---|---|---|
All Assets | 0.10 | % |
Lifecycle Fund — 2015 Fund
Lifecycle Fund — 2020 Fund
Lifecycle Fund — 2025 Fund
Lifecycle Fund — 2030 Fund
Lifecycle Fund — 2035 Fund
Lifecycle Fund — 2040 Fund
Assets Under Management (Billions) | | Fee Rate (average daily net assets) | ||||
---|---|---|---|---|---|---|
All Assets | 0.10 | % |
of the Advisor
Name and Address | | Position with the Advisor | | Principal Occupation | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Scott C. Evans TIAA-CREF 730 Third Avenue New York, NY 10017-3206 | Director, President and Chief Executive Officer | Director Executive Vice President and Chief Investment Officer of TIAA and the TIAA-CREF Funds; President and Chief Executive Officer of Investment Management and Advisors; and Director of TIAA-CREF Life. | ||||||||
Erwin W. Martens TIAA-CREF 730 Third Avenue New York, NY 10017-3206 | Director | Executive Vice President, Risk Management, of TIAA and the TIAA-CREF Funds; Director of Services, TPIS, Tuition Financing and TIAA-CREF Life; and Manager of Investment Management | ||||||||
Russell Noles TIAA-CREF 730 Third Avenue New York, NY 10017-3206 | Director | Vice President and Acting Chief Financial Officer of TIAA and the TIAA-CREF Funds; Vice President of Advisors, TPIS, Tuition Financing and Investment Management and Services; Director of TPIS, Tuition Financing; and Manager of Investment Management and Services. |
Name of Fund | | Net Assets1 | | Rate of Compensation2 3 | | Waivers or Reimbursements | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
TIAA-CREF Life Funds Growth & Income Fund | $ | 46,687,734 | 0.23 | % | None | |||||||||
TIAA-CREF Life Funds International Equity Fund | $ | 54,356,079 | 0.29 | % | None | |||||||||
TIAA-CREF Life Funds Large-Cap Value Fund | $ | 44,669,334 | 0.24 | % | None | |||||||||
TIAA-CREF Life Funds Small-Cap Equity Fund | $ | 45,514,066 | 0.10 | % | None | |||||||||
TIAA-CREF Life Funds Real Estate Securities Fund | $ | 64,171,802 | 0.25 | % | None | |||||||||
TIAA-CREF Life Funds Stock Index Fund | $ | 142,898,809 | 0.06 | % | None | |||||||||
TIAA-CREF Life Funds Social Choice Equity Fund | $ | 27,829,820 | 0.07 | % | None | |||||||||
TIAA-CREF Life Funds Bond Fund | $ | 62,120,852 | 0.10 | % | None | |||||||||
TIAA-CREF Life Funds Money Market Fund | $ | 31,359,347 | 0.06 | % | None | |||||||||
TIAA-CREF Mutual Funds International Equity Fund | $ | 357,215,755 | 0.49 | % | None | |||||||||
TIAA-CREF Mutual Funds Growth & Income Fund | $ | 512,843,301 | 0.43 | % | None | |||||||||
TIAA-CREF Mutual Funds Social Choice Equity Fund | $ | 131,929,828 | 0.27 | % | None | |||||||||
TIAA-CREF Mutual Funds Equity Index Fund | $ | 350,281,375 | 0.26 | % | None | |||||||||
TIAA-CREF Mutual Funds Money Market Fund | $ | 601,850,550 | 0.29 | % | None | |||||||||
TIAA-CREF Mutual Funds Bond Plus Fund | $ | 475,639,913 | 0.30 | % | None | |||||||||
TIAA Separate Account VA-1 | $ | 895,287,922 | 0.30 | % | Waived down to 0.07% |
1 | As of September 30, 2005. |
2 | As a percentage of average daily net assets. |
3 | The fees paid to the Advisor by the Funds in this chart are unitary fees and include expenses other than management fees. |
| | Institutional Class | | Retirement Class | ||||||
---|---|---|---|---|---|---|---|---|---|---|
International Equity Fund | 0.10 | % | 0.30% | |||||||
Large-Cap Value Fund | 0.05 | % | 0.30% | |||||||
Small-Cap Equity Fund | 0.07 | % | 0.30% | |||||||
Social Choice Equity Fund | 0.05 | % | 0.33% | |||||||
Real Estate Securities Fund | 0.05 | % | 0.31% | |||||||
Bond Fund | 0.05 | % | — | |||||||
Inflation-Linked Bond Fund | 0.05 | % | — | |||||||
Money Market Fund | 0.05 | % | — |
| Retail Class | |||||
---|---|---|---|---|---|---|
Large-Cap Value Fund | 0.80 | % | ||||
Small-Cap Equity Fund | 0.85 | % | ||||
Real Estate Securities Fund | 0.90 | % | ||||
Inflation-Linked Bond Fund | 0.50 | % |
(for the 12 months ended September 30, 2005)
Fund/Class | | | Current Fees | | Pro Forma Fees1 | | % Decrease | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
International Equity Fund | — Institutional Class | |||||||||||||||||||||
International Equity Fund | — Retirement Class | |||||||||||||||||||||
Large-Cap Value Fund | — Institutional Class | |||||||||||||||||||||
Large-Cap Value Fund | — Retirement Class | |||||||||||||||||||||
Large-Cap Value Fund | — Retail Class | |||||||||||||||||||||
Small-Cap Equity Fund | — Institutional Class | |||||||||||||||||||||
Small-Cap Equity Fund | — Retirement Class | |||||||||||||||||||||
Small-Cap Equity Fund | — Retail Class | |||||||||||||||||||||
Social Choice Equity Fund | — Institutional Class | |||||||||||||||||||||
Social Choice Equity Fund | — Retirement Class | |||||||||||||||||||||
Real Estate Securities Fund | — Institutional Class | |||||||||||||||||||||
Real Estate Securities Fund | — Retirement Class | |||||||||||||||||||||
Real Estate Securities Fund | — Retail Class | |||||||||||||||||||||
Bond Fund | — Institutional Class | |||||||||||||||||||||
Inflation-Linked Bond Fund | — Institutional Class | |||||||||||||||||||||
Inflation-Linked Bond Fund | — Retail Class | |||||||||||||||||||||
Money Market Fund | — Institutional Class |
1 | Since a new Retirement Class Service Agreement would replace the current Service Agreement if the new investment management arrangements are approved, this column reflects pro forma payments by the Retirement Class only, since the Institutional Class and Retail Class would no longer be subject to a Service Agreement. |
2 | No service agreement payments would be made on a pro forma basis for these Funds because these Funds do not currently offer Retirement Class shares. |
• | The Fund’s new management fees would be in the first quintile of its Expense Universe (ranking 14 out of 96 funds). |
• | The Fund outperformed its benchmark for the one-year and since inception periods ended 12/31/04. |
• | For the one-year period ended 12/31/04, the Fund was in the first quintile of its Performance Universe (ranking 20 out of 470 funds). (The Fund has not been in operation for three years.) |
• | The Advisor earned a modest profit on the Fund for the one-year period ended 12/31/04. |
• | The Fund’s new management fees would be in the first quintile of its Expense Universe (ranking 5 out of 115 funds). |
• | For the one-year period ended 12/31/04, the Fund was in the second quintile of its Performance Universe (ranking 198 out of 560 funds). (The Fund has not been in operation for three years.) |
• | The Fund outperformed its benchmark for the one-year and since inception periods ended 12/31/04. |
• | The Advisor earned a modest profit on the Fund for the one-year period ended 12/31/04. |
• | The Fund’s new management fees would be in the first quintile of its Expense Universe (ranking 3 out of 93 funds). |
• | The Fund outperformed its benchmark for the one-, three- and five-year periods ended 12/31/04, underperformed its benchmark since inception through 12/31/04. |
• | For the one-year period ended 12/31/04, the Fund was in the second quintile of its Performance Universe (ranking 229 out of 697 funds). |
• | For the three- and five-year periods ended 12/31/04, the Fund was in the third quintile of its Performance Universe (ranking 203 out of 501 funds and 202 out of 338 funds, respectively). |
• | The Fund received an Overall Morningstar Rating of three stars for the period ended 12/31/04. |
• | The Advisor had a net loss on the Fund for the one-year period ended 12/31/04. |
• | The Fund’s new management fees would be in the first quintile of its Expense Universe (ranking 8 out of 40 funds). |
• | The Fund slightly underperformed its benchmark for the one-year period and outperformed its benchmark in the three-year period. |
• | For the one-year period ended 12/31/04, the Fund was in the third quintile of its Performance Universe (ranking 88 out of 211 funds). (The Fund has not been in operation for three years.) |
• | The Advisor had a net loss on the Fund for the one-year period ended 12/31/04. |
• | The Fund’s new management fees would be in the first quintile of its Expense Universe (ranking 14 out of 155 funds). |
• | The Fund underperformed its benchmark for the one- and five-year periods, and outperformed its benchmark for the three-year and since inception periods. |
• | For the one-year period ended 12/31/04, the Fund was in the third quintile of its Performance Universe (ranking 151 out of 263 funds). |
• | For the three-year period ended 12/31/04, the Fund was in the second quintile of its Performance Universe. (ranking 58 out of 226 funds) |
• | For the five-year period ended 12/31/04, the Fund was in the fourth quintile of its Performance Universe. (ranking 101 out of 162 funds) |
• | The Fund received an Overall Morningstar Rating of three stars for the period ended 12/31/04. |
• | The Advisor had a net loss on the Fund for the one-year period ended 12/31/04. |
• | The Fund’s new management fees would be in the third quintile of its Expense Universe (ranking 6 out of 10 funds). |
• | The Fund slightly underperformed its benchmark for the one-year and since inception periods. |
• | For the one-year period ended 12/31/04, the Fund was in the second quintile of its Performance Universe (ranking 12 out of 54 funds). (The Fund has not been in operation for three years.) |
• | The Advisor had a net loss on the Fund for the one-year period ended 12/31/04. |
• | The Fund’s new management fees would be in the first quintile of its Expense Universe (ranking 24 out of 121 funds). |
• | The Fund slightly underperformed its benchmark for the one-year period and outperformed its benchmark in the three-year, five-year and since inception periods. |
• | For the one-year period ended 12/31/04, the Fund was in the second quintile of its Performance Universe (ranking 149 out of 458 funds). |
• | For the three- and five-year periods ended 12/31/04, the Fund was in the first quintile of its Performance Universe (ranking 64 out of 379 funds and 46 out of 268 funds). |
• | The Fund received an Overall Morningstar Rating of four stars for the period ended 12/31/04. |
• | The Advisor had a net loss on the Fund for the one-year period ended 12/31/04. |
• | The Fund’s new management fees would be in the first quintile of its Expense Universe (ranking 12 of 249 funds). |
• | The Fund outperformed its benchmark for the one-year, three-year, five-year and since inception periods. |
• | For the one, three- and five-year periods ended 12/31/04, the Fund was in the first quintile of its Performance Universe (ranking 14 out of 295 funds; 31 out of 254 funds; and 37 out of 197 funds, respectively). |
• | The Advisor had a net loss on the Fund for the one-year period ended 12/31/04. |
Retail IMF | A11032 (07/05) |