TIAA-CREF Seeks Reorganization Of Retail Mutual Funds
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By Arden Dale
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--The Teachers Insurance & Annuity Association - College Retirement Equities Fund is asking shareholders to approve a massive reorganization of its retail mutual funds.
TIAA-CREF on Friday filed a preliminary proxy statement with the Securities and Exchange Commission outlining the proposed restructuring, which would fold the retail funds into a corresponding series of TIAA-CREF institutional mutual funds.
Each of the 11 retail mutual funds offered by TIAA-CREF would be combined into a TIAA-CREF institutional fund with a similar or identical investment objective, and managed by the same portfolio management team. The retail funds will close to new investors on April 28, and existing shareholders in the funds will continue to be able to purchase and redeem shares. New investors will be able to invest in the retail share class of the institutional funds that will become available May 1.
The move is intended to reduce investor confusion and help maintain fees at a competitive level, TIAA-CREF said. It is part of a previously announced plan to "create a single, streamlined family of funds with consistent and sustainable pricing, greater efficiencies, and a continued high level of shareholder services," the organization said in the filing.
First outlined by TIAA-CREF in a filing last year, the proposal will go to vote at a special shareholders meeting on Aug. 8.
The retail funds affected are the International Equity, Growth Equity, Growth & Income, Equity Index, Social Choice Equity, Managed Allocation, Bond Plus, Short-Term Bond, High-Yield Bond, Tax-Exempt Bond and Money Market funds.
The corresponding institutional funds are the International Equity, Large-Cap Growth, Growth & Income, Equity Index, Social Choice Equity, Managed Allocation Fund II, Bond Plus Fund II, Short-Term Bond Fund II, High-Yield Bond Fund II, Tax-Exempt Bond Fund II and Money Market funds.
The boards of the retail and institutional funds have approved the proposal, and are recommending that shareholders do so.
TIAA-CREF spokeswoman Katherine Miller said that the organization is closing the retail funds now "because after the record date (May 11), new shareholders would be invested but unable to vote the proxy. We feel strongly that all shareholders in the funds have the option to vote on the merger."
In a statement outlining the filing, TIAA-CREF noted that its proposal doesn't affect 99% of assets it manages.
-By Arden Dale, Dow Jones Newswires; 201-938-2052; arden.dale@dowjones.com
(END) Dow Jones Newswires
April 21, 2006 17:25 ET (21:25 GMT)
Copyright (c) 2006 Dow Jones & Company, Inc.- - 05 25 PM EDT 04-21-06 |
