Teachers Insurance and Annuity Association of America
|Non-profit Corporation owning for-profit subsidiaries|
|Headquarters||Manhattan, New York City, United States|
|Roger W. Ferguson, Jr. (CEO)|
|Revenue||US$36.025 billion (FY 2016)|
|US$1.492 billion (FY 2016)|
|AUM||US$1 trillion (Q4 2017)|
|Total assets||US$583.632 billion (FY 2018) |
Number of employees
|17,500 (Q1 2018)|
The Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA, formerly TIAA-CREF), is a Fortune 100 financial services organization that is the leading provider of financial services in the academic, research, medical, cultural and governmental fields. TIAA serves over 5 million active and retired employees participating at more than 15,000 institutions and has $1 trillion in combined assets under management with holdings in more than 50 countries (as of 31 December 2017[update]).
Long organized as a tax-exempt non-profit organization, a 1997 tax bill removed TIAA's tax exemption. It is now organized as a non-profit organization, the TIAA Board of Overseers, with taxable subsidiaries; all profits are returned to policy holders.
TIAA is headquartered in Manhattan and has major offices in Denver, Colorado; Charlotte, North Carolina; and Dallas, Texas; as well as seventy local offices throughout the U.S. In 2018, TIAA ranked 84th on Fortune's list of the 500 largest corporations in America. As of 2017[update], TIAA is the largest global investor in agriculture, the 2nd largest grower of wine grapes in the United States (by acreage), and the 3rd largest commercial real estate manager in the world.
In 1918, Andrew Carnegie and his Carnegie Foundation for the Advancement of Teaching, under the leadership of Henry S. Pritchett, created the Teachers Insurance and Annuity Association of America (TIAA), a fully funded system of pensions for professors. Funding was provided by a combination of grants from the foundation and Carnegie Corporation of New York, as well as ongoing contributions from participating institutions and individuals. The policyholders voted in 1921 to implement policyholder representation on the TIAA board so that educators would have a role in running the organization.
TIAA's conservative investing helped it survive the 1929 stock market crash and the Great Depression. Albert Einstein became a participant in 1933, which TIAA-CREF advertised in a notable 2001 campaign.
After World War II, in reaction to rising inflation and lengthening life expectancies, and a dramatic expansion of the education sector with the G.I. Bill, TIAA recognized the need for its participants to invest in equities in order to diversify its retirement funds. TIAA created the College Retirement Equities Fund (CREF), a variable annuity, for that purpose, in 1952.
On June 15, 2007, TIAA became one of the first U.S. companies to voluntarily adopt, and the first to implement, a policyholder advisory vote on executive compensation policy.
On February 22, 2016, TIAA-CREF rebranded as simply TIAA as part of a new marketing and imaging campaign. CMO Connie Weaver explained that the old name was perceived by customers as being complicated, and that the new branding scheme was meant to portray a simpler and friendlier image of the organization.
Investments & diversification
- 2012: bought Festival Place, a shopping center in Basingstoke, England for £280 million.
- 2013: purchased a 50% stake in the Grand Canal Shoppes, including the Shoppes at the Palazzo, in Las Vegas, Nevada, for net proceeds of US$410 million as part of a new joint venture with General Growth Properties. GGP will continue to oversee the asset management of the project.
- 2014: announced that it would acquire Nuveen Investments in a deal valued at $6.25 billion.
- 2016: announced deal to buy EverBank Financial Corp. for $2.5 billion in cash; completed June 12, 2017. The combined bank's legal entity name is TIAA, FSB.
On October 17, 2017, The New York Times published a story alleging that TIAA investment advisors had conflicts of interest when making financial recommendations to clients. This was based on a whistle-blower complaint and class action lawsuit, both instigated by former employees.
- "Fortune 500: 84–TIAA". Fortune. Retrieved 6 February 2019.
- "Q4 2017 Facts and Stats" (PDF). TIAA. January 2018. Retrieved 6 February 2019.
- "Q1 2018 Facts and Stats" (PDF). Retrieved 8 March 2019.
- Abelson, Reed. "Budget Deal to Cost T.I.A.A.-C.R.E.F. Its Tax Exemption", The New York Times. 20 July 1997.
- "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved 2018-11-10.
- Jim Lowell (14 October 2006). "TIAA-CREF's 401(k) Options". Forbes. Retrieved 6 February 2019.
- "Our History: 100 years of serving those who do good in the world". Retrieved 6 February 2019.
- "TIAA-CREF campaign: Managing money for people with other things to think about: Albert Einstein".
- Robert D. Hershey Jr. (November 12, 2000). "Teachers' Fund Happily Learns a New Math, Plus Tax". The New York Times.
- Svaldi, Aldo (22 February 2016). "Denver employer TIAA-CREF dropping second half of name". The Denver Post. Retrieved 6 February 2019.
- Monllos, Kristina (22 February 2016). "Rebranded TIAA Hopes Its Shortened Name Makes Financial Planning Seem Simpler". Adweek. Retrieved 6 February 2019.
- Webber, Lauren (21 February 2018). "Some Companies Move to Gender-Blind Leave for New Parents". The Wall Street Journal. Retrieved 22 February 2018.
- Richard Garfield (14 October 2012). "Festival Place is sold for £280 million". Basingstoke Gazette. Retrieved 6 February 2019.
- May 17, David Phillips |; AM, 2013 at 09:38. "GGP and TIAA-CREF Partnership Buys Grand Canal Shoppes for $410M". GlobeSt. Retrieved 2019-04-02.
- Christopher Condon; Charles Stein (14 April 2014). "TIAA-CREF to Buy Nuveen Investments in $6.25 Billion Deal". Bloomberg News. Retrieved 6 February 2019.
- Rachel Louise Ensign; Demos Telis (8 August 2016). "TIAA to buy EverBank for $2.5 billion". The Wall Street Journal. Retrieved 6 February 2019 – via MarketWatch.
- "TIAA Completes Acquisition of EverBank" (Press release). TIAA. Retrieved 6 February 2019.
- Gibbons, Timothy. "As TIAA Bank becomes official, merger 'favorable' to Jacksonville job market". Jacksonville Business Journal. Retrieved 13 June 2018.
- Morgenson, Gretchen (21 October 2017). "The Finger-Pointing at the Finance Firm TIAA". The New York Times. ISSN 0362-4331. Retrieved 2018-02-09.
- "TIAACREF Whistleblower". TIAACREF Whistleblower. Archived from the original on 2018-02-10. Retrieved 2018-02-09.
- tiaa.org, company's official website