TIAA-CREF Institutional Mutual Funds shareholders today overwhelmingly approved a new advisory agreement with Teachers Advisors to raise fees on eight mutual funds, effective Feb. 1, according to Stephanie Cohen Glass, director of corporate media relations. A similar proposal was defeated by shareholders Aug. 31.
"The new management agreement enables the funds to cover their cost of operation while remaining competitive with the lower-priced offerings in the industry," Herb Allison, TIAA-CREF CEO, said in a statement. "Our clients will continue to benefit from high-quality mutual funds for a wide range of investment objectives, and the funds' operations can be financially self-sustainable."
Fees for the International Equity Fund will rise to 0.5% from 0.09%; Large-Cap Value to 0.45% from 0.08; Small-Cap Equity to 0.48% from 0.08%; Social Choice Equity to 0.15% from 0.04%; Real Estate Securities to 0.5% from 0.09%; Bond to 0.3% from 0.08%; Inflation-Linked Bond, to 0.3% from 0.09%; and Money Market to 0.1% from 0.04%
Teachers Advisors is a unit of TIAA-CREF Enterprises.