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.
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.
About TIAA-CREF
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.
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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.
Copyright Business Wire 2014