a tiaa-cref retirement plan presentation to: january … · for institutional investor use only....
TRANSCRIPT
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.Source: facebook.com/arizonastateuniversity Source: Picasa Web Albums/©Tony Grabenstein
JANUARY 12, 2011
A TIAA-CREF RETIREMENT PLAN PRESENTATION TO:
Source: facebook.com/uarizona
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 1
TODAY’S DISCUSSION
Introductions / Overview……….……………….…………………TERESA HASSARA, Senior Managing DirectorIndividual & Institutional Client Services
I. Understanding ABOR’s Goals …………....………..……… CAROLYN BARBEE, Managing ConsultantInstitutional Relationships
II. Fund Administration……………………………………….… DAVID DUNNE, Senior Vice PresidentShared Services
III. Communication, Education & Advice..………......…………ELENA FRENCH, Vice PresidentMarketing & Communications Strategy
PAUL SOROKA, DirectorField Consulting Group
IV. Investments………………..……….……….....……..……… DAVID WONN, DirectorProducts & Portfolio Management
V. Fees…….…………………………….………………..………CAROLYN BARBEE / TERESA HASSARA
VI. Digital Strategy……..…………………………………………DAVID DUNNE
VII. TIAA-CREF Difference……....……………………………… TERESA HASSARA
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 2
ARIZONA BOARD OF REGENTS AND TIAA-CREF FINANCIAL STRENGTH FROM A BRAND YOU CAN TRUST
Brand Strength**Brand Strength**
**TIAA-CREF received the highest numerical trust score among financial services and insurance industry brands included in The Harris Poll® 2010 EquiTrend® Study, which is based on opinions of 19,708 U.S. consumers ages 15 and over surveyed online between 1/12/10 and 1/ 21/10. Your opinion may differ. “Highest Ranked” was determined by a pure ranking of a sample of financial services and insurance industry brands.
Broad Claims-Paying Ability$10 billion+ in retirement income and otherdisbursements paid to over 500,000 participants in 2009 alone
Strong Capital Position$26.3 billion in TIAA Total Statutory Capital (9/30/10) *
Highest Ratings (TIAA)Triple-A or equivalent **
A.M. Best Company A++ (12/09)Fitch AAA (4/10)Moody’s Investors Service Aaa (7/10)Standard & Poor’s AAA (8/10)
Financial StrengthFinancial Strength
* Capital position applies to TIAA, the insurance company affiliate, which backs TIAA Traditional and our other guaranteed products. Total Statutory Capital comprises capital and surplus, and asset valuation reserve for TIAA.
** TIAA has received the highest ratings for its stability, claims-paying ability and overall financial strength. These ratings do not apply to variable annuities, mutual funds or any other product or service not fully backed by TIAA's claims-paying ability. Ratings may be affirmed or adjusted at any time. There is no guarantee that current ratings will be maintained.
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 3
MARKET SEGMENT
TIAA-CREF RANKING**
Higher Education 1
K-12 1
Hospital & Healthcare 2
Other 1$8
$12,323
$16,049
$10,900
$16,323
$25,463
$40,381
$20,414
$70,832
$242,194
$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000
Prudential
MetLife
Great West
Diversified
Vanguard
Lincoln Financial
ING
VALIC
Fidelity
TIAA-CREF
Millions
TIAA-CREF IS THE NOT-FOR-PROFIT HIGHER EDUCATION MARKET LEADER
Top 10 403(b) Plan Providers*
* Source: PLANSPONSOR’s 2009 Recordkeeping Survey, based on recordkeeping assets; http://plansponsor.com/2010_Recordkeeping_Survey.aspx** Source: LIMRA, Not-for-Profit Market Survey, September 30, 2010. Based on a survey of 30 companies. TIAA-CREF assets under management by
market segment estimated; segment breakdown based on 20 companies representing 97% of the total reported full service assets. Market share ranking does not reflect current investment performance.
K-12 1
Hospital & Healthcare 2
Other NFP 1
NFP MARKET SEGMENT
TIAA-CREF RANKING**
Higher Education 1
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 4FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.Source: facebook.com/arizonastateuniversity Source: Picasa Web Albums/©Tony GrabensteinSource: facebook.com/uarizona
UNDERSTANDING ABOR’S GOALS
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 5FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 5
ARIZONA BOARD OF REGENTS AND TIAA-CREF UNDERSTANDING YOUR OBJECTIVES
CURRENT RELATIONSHIP
Served by TIAA-CREF since 1943
Four institutions: ABOR, Arizona State University, Northern Arizona University and University of Arizona
Current providers: TIAA-CREF, Fidelity, VALIC
GOALS/ KEY CONSIDERATIONS
Simplify and streamline plan administration
Optimize plan and participant experience
Drive successful participant outcomes
Offer a broader range of investment choices at a competitive price
Enhance technology solutions
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 6FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.Source: facebook.com/arizonastateuniversity Source: Picasa Web Albums/©Tony GrabensteinSource: facebook.com/uarizona
FUND ADMINISTRATION
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 7
COMPLIANCE DATA, REMITTANCE DATA, TERMINATION DATA FULL DATA COORDINATION CAPABILITIES
TIAA-CREF provides and participates indata coordination services
Inclusive– Supports multiple universities – Open to all vendors
Easy Access – View individual and aggregated data
across all vendor plans– Verify compliance through enhanced
reporting
Assurance of Data Integrity– Vendors have access only to information
they need – Data for appropriate services use
NAU
VendorVALIC
TIAA-CREF
Data Coordination
Fidelity
ASU
UA
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 8
COMMITMENT TO INFRASTRUCTURE FOCUSED ON OPERATIONAL AND SERVICE EXCELLENCE
Transaction Processing13.5 million contribution transactions each monthGreater than 99% same-day transaction processing rateQuality program links operational performance and customer satisfaction
Service CapacityThree national counseling centers: Denver, Charlotte, DallasCall-handling and interactive voice recognition technologySingle-source participant statement and web management
Systems Stability and SecurityTwo state-of-the-art data centers; Level 9 classificationFully redundant infrastructure ensures business continuity and technical recovery capabilitiesFacilities fully staffed and monitored 24/7
Data as of December 2010
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 9FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.Source: facebook.com/arizonastateuniversity Source: Picasa Web Albums/©Tony GrabensteinSource: facebook.com/uarizona
COMMUNICATION, EDUCATION & ADVICE
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 10
ANALYZE
3
Our four-step approach ensures your plan is tailored to meet your business objectives and the diverse needs of your workforce
WORKING WITH THE ARIZONA BOARD OF REGENTS TO BUILD A CUSTOMIZED COMMUNICATION & EDUCATION PLAN
1 2 PLAN
4EXECUTE MEASURE
Understand key driversDemographicsBehaviorEnvironment
Chart the courseTarget audiencesTiming
– Implementation– Ongoing
Deliver via appropriate channelsIn personBy phoneOnlineMail and e-mail
Assess and modifyMetricsSurveysFeedback
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 11
ARIZONA BOARD OF REGENTS AND TIAA-CREF TARGETED COMMUNICATION THAT ACHIEVES RESULTS
Transition announcements that generate excitement for change
Employee engagement campaigns that maximize participation
Diversification and asset consolidation campaigns to help employees stay on track
Career Stage campaigns to improve outcomes
Campus-level campaigns; customized university enrollment sites
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 12
GoalOptimize participant outcomes through targeted, multi-touch communications using demographic data to create more intelligent messaging and delivery. Use metrics and behavioralchanges to refine campaign strategies as different tactics aredeployed over time.
Targets• Early Career: Under age 35• Mid-Career: Ages 35-54• Pre-Retiree: Over 55 years
Sample Message• What’s your version of a great retirement?• Advice. We promise—it won’t hurt a bit.• Are you ready to make the leap to retirement? Call us. Your
results are in.
Call to ActionSchedule an Advice Session
ARIZONA BOARD OF REGENTS AND TIAA-CREF EXAMPLE: CAREER STAGE CAMPAIGN
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 13
TIAA-CREF EN ESPAÑOL A RECOGNIZED INDUSTRY LEADER IN SPANISH LANGUAGE SERVICES
In-language and in-culture educational materials for the US Hispanic/Latino community
Spanish language website www.tiaa-cref.org/espanol
Spanish-speaking customer service representatives
24-hr automated Spanish-language phone services
Spanish-language financial education seminars
On-site one-on-one sessions in Spanish
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 14
DEDICATED INDIVIDUAL CONSULTANTS COMBINING PERSONALIZED ADVICE WITH TARGETED EDUCATION
TIAA-CREFIndividual
ConsultantsDONN FITCH
NICK HILEMAN
Advice
Education
Enrollment
Information
Account Help
Retirement IncomeStrategies
GroupGroup
One-On-OneOne-On-One
TelephoneTelephone
OnlineOnline
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 15
YOUR DEDICATED INDIVIDUAL CONSULTANTS PUTTING YOUR EMPLOYEES FIRST
The above quotes may not be representative of the experiences of other TIAA-CREF participants, and are not indicative of future performance or success. They stem strictly from participants’ experiences with broker/dealer-related services and not from any investment advisory services offered by a TIAA-CREF affiliate. Survey and data information as of December 31, 2010.
DISTINCTIVE VALUE AFFIRMATION
2010 Participant SurveyResults for IC Donn Fitch
Objective / Integrity: 100% (national goal: 90%)
Distinctiveness: 78% (national goal: 74%)
2010 Participant SurveyResults for IC Nick Hileman
Objective / Integrity: 97% (national goal: 90%)
Distinctiveness: 81% (national goal: 74%)
“The IC is knowledgeable and thorough. The IC doesn’t try to sell me anything. He gave me factual information to compare the different funds.”
– On Donn Fitch, Senior Consultant
“I felt the IC was taking my interests first as his priority. The IC came up with a solution. I never felt pressured for time. Also, I could understand him.”
– On Nick Hileman, Consultant
EXPERIENCE
Donn Fitch
Has Certified Financial Plan® (CFP) designation
6 years at TIAA-CREF, 14 years in the financial services industry
Nick Hileman
Working toward Certified Financial Plan® (CFP) designation
5 years at TIAA-CREF, 9 years in the financial services industry
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 16
TIAA-CREF ADVICE AND PLANNING SERVICES TAILORED TO HELP MEET THE NEEDS OF EVERY PARTICIPANT
CUSTOMIZED FINANCIAL
SOLUTIONS *
Holistic PlanningDiscretionary ManagementFiduciary Services
PERSONALIZED ADVICE
& COUNSELING
Advice and PlanningPersonalized Action PlanFund Recommendations
GUIDANCE & EDUCATION
Asset AllocationSavings RateDistribution OptionsRetirement Age
* These services may not be available to all employees.
Counseling sessions targeted to career and life stages help employees answer three primary questions:
“ Am I saving enough for retirement? ”
“ How should I allocate and invest to reach my goals? ”
“ When can I retire?”
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 17
TIAA-CREF ADVICE AND PLANNING SERVICES SAMPLE PERSONALIZED ACTION REPORT WITH RECOMMENDATIONS
RECOMMENDED SAVINGS RATE RECOMMENDED ASSET ALLOCATION
RECOMMENDED FUND SELECTION
DESIRED RETIREMENT INCOME
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 18
TIAA-CREF ADVICE AND PLANNING SERVICES FOR MORE COMPLEX NEEDS
Dedicated Wealth Management Advisor
Access to an extended team of specialists
Holistic financial planning
Ongoing, proactive relationship managementCHARITABLE
PLANNING
RETIREMENT PLANNING
ASSETPROTECTION
PLANNING
INSURANCEPLANNING
EDUCATIONPLANNING
ESTATE PLANNING
CLIENT ADVISORY SERVICES
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 19FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.Source: facebook.com/arizonastateuniversity Source: Picasa Web Albums/©Tony GrabensteinSource: facebook.com/uarizona
INVESTMENTS
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 20
OPEN ARCHITECTURE INVESTMENT MENUS
EasyFund menu exchanges
AdvantageousPlan expense reimbursements
FlexibleFull open architecture
Inclusive10,000+ funds
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 21
TIERED APPROACH TO BUILDING MENUS ACCOMMODATING ALL EMPLOYEE NEEDS
Tier I Asset Allocation “One Decision” / Target Date Mutual Funds
Tier II Open Architecture Core Options – Mutual Funds / TIAA-CREF Annuities*
Tier III Specialty Options Brokerage Window **
We believe a tiered investment menu offers choice, serves all employees and, ultimately, delivers financial security in retirement
* Guarantees are subject to the issuer’s claims-paying ability.** Individual securities are not allowable investments in 403(b) plans.
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 22
PRESCREENED FUNDS FROM WELL KNOWN FAMILIES MORE THAN 200 HIGH-QUALITY, LOW-COST INVESTMENT CHOICES
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 23FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.Source: facebook.com/arizonastateuniversity Source: Picasa Web Albums/©Tony GrabensteinSource: facebook.com/uarizona
FEES
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 24FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.Source: facebook.com/arizonastateuniversity Source: Picasa Web Albums/©Tony GrabensteinSource: facebook.com/uarizona
DIGITAL STRATEGY
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 25
LEADING EDGE DIGITAL STRATEGIES MORE CHOICES FOR STAYING CONNECTED
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 26FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.Source: facebook.com/arizonastateuniversity Source: Picasa Web Albums/©Tony GrabensteinSource: facebook.com/uarizona
THE TIAA-CREF DIFFERENCE
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 27
ARIZONA BOARD OF REGENTS AND TIAA-CREF
A STRONGPARTNERSHIP+ =
DependabilityLeadershipService
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 28
IMPORTANT INFORMATION
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products. Advisory services offered by Advice and Planning Services, a division of TIAA-CREF Individual & Institutional Services, LLC, a Registered Investment Advisor. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.
TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit tiaa-cref.org for details. Investment products are not FDIC insured, may lose value and are not bank guaranteed.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Go to tiaa-cref.org for a prospectus that contains this and other information. Please read the prospectus carefully before investing.
© 2011 Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), New York, NY 10017
C49891
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 29FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC.Source: facebook.com/arizonastateuniversity Source: Picasa Web Albums/©Tony GrabensteinSource: facebook.com/uarizona
APPENDIX
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 30
INTEGRATED SERVICE DELIVERY. INDUSTRY DISTINCTIVE VALUE.
Managing ConsultantCAROLYN BARBEE
Comprehensive, holistic advice services for more complex needs
MarketingLiaison
DEREK TYSON
InstitutionalLiaison
ALBERT SPANO
IndividualConsultantsDONN FITCH
NICK HILEMAN
Wealth Management Advisors
MARK LARGENT NESTOR MONTOYA
ADMINISTRATION NEEDS
Assurance of effective plan administration
Support for processing and reporting functions
Communication & education plan development and measurement
One-on-one advice consultations
Group education and enrollment meetings
EMPLOYEE NEEDS
Wealth Management Advisors
ADAM SANDERSSCOTT WUBBENA
Comprehensive, holistic advice services for more complex needs
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 31
ASPPA RECORDKEEPER CERTIFICATION FOR ADHERENCE TO EXCELLENCE AND INDUSTRY BEST PRACTICES
Centre for Fiduciary Excellence independent certification program
ASPPA (American Society of Pension Professionals & Actuaries) Recordkeeper Certificate awarded to firms that successfully satisfy audit criteria and meet best practices
– Recordkeeping
– Human resources
– Financial history
– Quality management systems
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 32
TIAA-CREF ADVICE AND PLANNING SERVICES RECOGNIZED FOR EXCELLENCE
Gold: Education Programs for Advice communications
Silver: Language and Cultural Diversity for collaboration with Rice University to provide Spanish- speaking employees with in-language financial education materials, seminars and consultations
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 33FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE PUBLIC. 33
EASY-TO-READ QUARTERLY STATEMENT REINFORCES THE IMPORTANCE OF RETIREMENT READINESS
DALBAR ranked TIAA-CREF 7th out of 25providers based on investor preferences forparticipant statement content and design*
Each quarter, employees can review how much they should be saving to achieve retirement readiness
* Source: 12th Annual Survey, Trends and Best Practices in Investor Statements, December 2009. Based on 300 investor responses.