Teachers Insurance and Annuity Association of America (TIAA), formerly known as TIAA-CREF, was founded by Andrew Carnegie in 1918. As of September 30, 2016, TIAA Global Asset Management had $915 billion assets under management invested in a wide range of securities. The major portion of its assets are allocated to stocks and fixed-income securities. TIAA seeks to offer financial services pertaining to investment advice and portfolio management to a wide range of investors, including individual investors, intermediaries and institutional clients. The company invests in an array of mutual funds, including both equity and fixed-income funds, and U.S. and non-U.S. funds. In November 2016, the fund family won Lipper's Best Overall Large Fund Company award for fourth consecutive year.
Below we share with you four top-rated TIAA Mutual Funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of TIAA Mutual Funds.
TIAA-CREF Bond Plus Fund Adv (MUTF:TCBPX) invests the majority of its assets in bonds, including different types of fixed-income securities. Its portfolio is divided into two segments. The first segment holds more than 70% of the fund's assets, which are invested in a wide variety of fixed-income securities and investment-grade bonds. The second segment has around 30% of its assets invested in fixed-income debt securities with special qualities. The fund has a one-year return of 4.7%.
As of December 2016, TCBPX held 1400 issues, with 2.28% of its assets invested in US Treasury Note 1.875%.
TIAA-CREF High Yield Fund (MUTF:TIHPX) seeks growth of income and capital. It generally invests in fixed-income securities with low credit ratings and high yields. The various types of fixed-income securities the fund invests in are U.S. and non-U.S. corporate bonds, loan participations, debentures, preferred stocks and convertible securities. The fund returned 22.9% in the last one-year period.
TIHPX has an expense ratio of 0.51%, as compared with the category average of 1.08%.
TIAA-CREF Large Cap Value Fund Adv (MUTF:TCLCX) invests a bulk of its assets in large-cap U.S. companies that are believed to be undervalued compared to its industry peers. It uses the market capitalization range of the Russell 1000 Value Index to select large-cap companies. The fund may invest a maximum of 20% of its assets in non-U.S. securities. It has one-year return of 33.8%.
Richard Cutler has been one of the fund managers of TCLCX since 2002.
TIAA-CREF Growth & Income Fund Retirement (MUTF:TRGIX) seeks long-term total return through both capital appreciation and investment income. It normally invests a large portion of its assets in equity securities. The fund will invest in large-cap securities that are expected to have the potential for capital appreciation, dividend income or both. TIAA-CREF Growth & Income Retirement returned 24.7% in the last one-year period.
TRGIX has an expense ratio of 0.67%, as compared with the category average of 1.08%.