NEW YORK--(BUSINESS WIRE)--TIAA-CREF today announced the launch of the TIAA-CREF Lifecycle 2055 Fund (TTRLX, TTRIX, TTRPX), a broadly diversified fund designed to meet the needs of investors who today are 18 to 22 years old and plan to retire and leave the workforce in or around 2055.
The Lifecycle 2055 Fund expands TIAA-CREF’s Lifecycle Funds series to 10 offerings in five year increments and a Lifecycle Retirement Income Fund. The TIAA-CREF Lifecycle Funds’ glidepath continues through the retirement date to allow for additional potential growth of assets to fund retirements of potentially 20 years or longer. The Lifecycle Funds glidepath has been customized based on the needs of our retirement plan clients in the nonprofit sector who tend to live longer than the general population.
“As this years’ college graduates begin to enter the workforce, it’s imperative that we encourage them to start saving and investing early. Beginning with their first few paychecks and a tool such as a target-date fund is a simple way to get started,” said Randall Lowry, managing director and product manager for the TIAA-CREF Lifecycle Funds. “We’ve heard from our clients that their evolving workforce requires this later-dated fund. We will manage this fund with the same glidepath as our other existing active Lifecycle Funds, utilizing both quantitative and fundamental strategies, to help reduce volatility, diversify risk and meet their needs over typically longer retirements.”
At the outset, the Lifecycle 2055 Fund allocates 90 percent of assets to equity and 10 percent to fixed income. By its 2055 target retirement year, the allocation will shift to 50 percent equity and 50 percent fixed income, reaching the final allocation of approximately 40 percent equity and 60 percent fixed income between 2062 and 2065.
TIAA-CREF’s Lifecycle Funds have aggregate assets of more than $5.9 billion (3/31/11) after receiving close to $2 billion in net inflows during 2010, fourth highest in net inflows among target date providers.
TIAA-CREF Lifecycle Funds were rated “Above Average,” according to a recent report by Morningstar, Inc., noting the Funds’ moderate costs, high level of management investment in the funds, and highly experienced fund managers.
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Initial Asset Allocation of TIAA-CREF Lifecycle 2055 Fund |
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Asset Class |
Allocation |
Market Sector |
Allocation |
TIAA-CREF Underlying Funds |
Allocation |
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EQUITY |
90.00% | U.S. Equity | 67.50% | • Large-Cap Growth Fund | 12.46% | |||||||||||||||
| • Enhanced Large-Cap Growth Index Fund | 12.46% | |||||||||||||||||||
| • Large-Cap Value Fund | 12.27% | |||||||||||||||||||
| • Enhanced Large-Cap Value Index Fund | 12.27% | |||||||||||||||||||
| • Growth & Income Fund | 10.50% | |||||||||||||||||||
| • Small-Cap Equity Fund | 5.69% | |||||||||||||||||||
| • Mid-Cap Value Fund | 0.97% | |||||||||||||||||||
| • Mid-Cap Growth Fund | 0.88% | |||||||||||||||||||
| International Equity | 22.50% | • International Equity Fund | 8.32% | |||||||||||||||||
| • Enhanced International Equity Index Fund | 8.31% | |||||||||||||||||||
| • Emerging Markets Equity Fund | 5.87% | |||||||||||||||||||
| FIXED-INCOME | 10.00% | Fixed-Income | 10.00% | • Bond Plus Fund | 6.00% | |||||||||||||||
| • High-Yield Fund | 4.00% | |||||||||||||||||||
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Total |
100.00% | 100.00% | 100.00% | |||||||||||||||||
These asset class allocations, market sector allocations within each asset class, and Underlying Fund allocations within each market sector reflect expected allocations as of June 30, 2011. These allocations will change over time.
About TIAA-CREF
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $466 billion in combined assets under management (as of 3/31/11) and is the leading provider of retirement services in the academic, research, medical and cultural fields.
TIAA-CREF Individual & Institutional Services, LLC, and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.
Morningstar ranked Lifecycle offerings by 21 mutual fund families based on an assessment of performance, underlying fund holdings, expense ratios, glidepath construction, portfolio management and corporate governance. Morningstar uses a five point ranking scale, with “Top” the highest ranking. Past performance does not guarantee future results.
As with all mutual funds, the principal value of the Lifecycle Funds is not guaranteed. The target date of the Lifecycle Funds is an approximate date when investors may want to begin withdrawing from the fund. Approximately seven to ten years after a Lifecycle Fund's target date, the fund may merge into the Lifecycle Retirement Income Fund or a similar fund.
Lifecycle funds are subject to risks, including Asset Allocation and Active Management risk, among others.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877-518-9161, or go to www.tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing.
©2011 Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF) New York, NY 10017
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