TIAA-CREF Wins $750 Million Stable Value Fund Mandate from Federated
NEW YORK--(BUSINESS WIRE)--TIAA-CREF, a leading financial services organization, today announced it was selected by Federated Investors, Inc. (NYSE: FII), one of the largest investment managers in the United States, to manage $750 million in stable value assets within a separate account. TIAA-CREF will manage the assets for the Federated Capital Preservation Fund.
“By working with TIAA-CREF, we will be able to further diversify our investments while continuing to pursue steady returns for our clients.”
Stable value funds seek to preserve principal while providing stable returns and the opportunity for plan participants to achieve higher returns than those offered by money market funds. 1
“Our approach to managing stable value assets leverages more than 90 years of experience overseeing retirement and other long-term investments to help support the lifelong financial well-being of our clients,” said Philip Maffei II, senior director of TIAA-CREF’s Stable Value Solutions team. “We are pleased to bring our experience and focus on managing risk to our relationship with Federated.”
TIAA-CREF presently manages $148 billion in stable value assets for defined-contribution plans, retiree healthcare savings plans, 529 college savings plans and stable value funds. 2 The assets are managed through its flagship guaranteed annuity, TIAA Traditional, and other guaranteed investment products.
“We are pleased to team up with a firm that shares our long-term commitment to stable value investing,” said Marian Marinack, senior vice president and senior portfolio manager at Federated Investors. “By working with TIAA-CREF, we will be able to further diversify our investments while continuing to pursue steady returns for our clients.”
“Institutions are outsourcing the management of stable value funds to organizations such as TIAA-CREF which understand how to manage capital preservation products,” said John Panagakis, head of Asset Management Business Development at TIAA-CREF. “Relationships like the one we have with Federated have helped establish TIAA-CREF as a leading provider of stable value solutions.”
The TIAA-CREF Stable Value program’s guaranteed investment contracts (GICs) are issued by TIAA-CREF Life Insurance Company (TC Life). Guarantees are backed by a separate account of TC Life, the underlying assets of which are managed in a high-quality, short-duration fixed-income investment strategy by TIAA-CREF Asset Management through its investment advisor, Teachers Advisors, Inc.
TIAA and TIAA-CREF Life Insurance Company, its wholly-owned subsidiary, continue to hold the highest credit ratings currently awarded from all four leading independent insurance industry ratings agencies. These ratings underscore TIAA’s and TC Life’s stability, claims-paying ability and financial strength.3
About Federated Investors, Inc.
Federated Investors, Inc. is one of the largest investment managers in the United States, managing $376.1 billion in assets as of Dec. 31, 2013. With 135 funds, as well as a variety of separately managed account options, Federated provides comprehensive investment management worldwide to approximately 6,000 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. For more information, visit FederatedInvestors.com.
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $564 billion in assets under management (as of 12/31/2013) and is the leading provider of retirement services in the academic, research, medical and cultural fields.
TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit www.tiaa-cref.org for details.
Investment, insurance and annuity products are not FDEC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may loose value.
1 Past performance does not guarantee future results.
2 As of Dec. 31, 2013.
3 TIAA-CREF Life is a wholly-owned subsidiary of Teachers Insurance and Annuity Association (TIAA). TIAA currently holds the highest possible ratings from the four leading insurance company rating agencies: A.M. Best (A++ as of 5/13), Fitch (AAA as of 6/13), Moody’s Investors Service (Aaa as of 7/13) and Standard & Poor’s (AA+ as of 6/13). Per S&P criteria, the downgrade of U.S. long-term government debt limits the highest rating of U.S. insurers to AA+ (the second-highest rating available). There is no guarantee that current ratings will be maintained. Ratings represent a company’s ability to meet policyholders’ obligations and do not apply to variable annuities, mutual funds or any other product or service not fully backed by TIAA’s claims paying ability.