TIAA-CREF might liquidate or close to new investors several funds that have "consistently incurred (operating) losses under the current fee structure" after the fund's shareholders failed today to approve a new investment management agreement with its Teachers Advisors Inc. unit, TIAA-CREF said in a statement.
The funds are Growth Equity, International Equity, Small-Cap Equity, Large-Cap Value, Real Estate Securities, Social Choice Equity, Bond, Inflation-Linked Bond and Money Market.
Shareholders of some TIAA-CREF funds approved a new investment management agreement with Teachers Advisors that would address losses by raising fees. Those funds are: Growth & Income; Large-Cap Growth Index; Large-Cap Value Index; Equity Index; Mid-Cap Growth Index; Mid-Cap Value Index; Mid-Cap Value; Mid-Cap Blend Index; Small-Cap Growth Index; Small-Cap Value Index; Small-Cap Blend Index; International Equity Index; S&P 500 Index; and the Lifecycle Funds.
A shareholder vote on the Mid-Cap Growth Fund was adjourned and a meeting was rescheduled for late September.
"The new investment management agreement with the adviser is designed to provide a reasonable and sustainable fee and expense structure for the funds that reflects the true costs associated with operating the funds, while maintaining overall expenses at levels that are competitive with those of other low-cost providers in the mutual fund industry," according to another TIAA-CREF statement.
Institutional Shareholder Services recommended shareholders vote in favor of the new investment management agreement. The funds' boards also recommended a vote for the new agreement.
Also, TIAA-CREF Institutional Mutual Funds shareholders elected all of the nominees to the board of trustees, ratified the selection of PricewaterhouseCoopers as the funds' independent public accounting firm and approved the adoption of a distribution 12(b)-1 fee plan for each fund in the retail class.