Mutual Fund Summary Prospectus (497k)
March 01 2013 - 6:02AM
Edgar (US Regulatory)
SUMMARY PROSPECTUS
MARCH
1, 2013
TIAA-CREF SOCIAL CHOICE EQUITY FUND
of the TIAA-CREF Funds
Class
Ticker
: Retail
TICRX
Retirement
TRSCX
Premier
TRPSX
Institutional
TISCX
Before you invest, you may want to review the Funds prospectus, which contains
more information about the Fund and its risks. You can find the Funds prospectus and other information
about the Fund online at www.tiaa-cref.org/tcfsoc. You can also get this information at no cost by calling
800 223-1200 or by sending an e-mail request to disclosure@tiaa-cref.org. The Funds prospectus
and Statement of Additional Information (SAI), each dated March 1, 2013, as subsequently
supplemented, and the sections of the Funds shareholder report dated October 31, 2012 from Summary
Portfolio of Investments through Notes to Financial Statements, are incorporated into
this Summary Prospectus by reference and may be obtained free of charge at the website, phone number
or e-mail address noted above.
INVESTMENT OBJECTIVE
The Fund seeks a favorable long-term total
return that reflects the investment performance of the overall U.S. stock market while giving special
consideration to certain social criteria.
FEES AND EXPENSES
This table describes the fees and expenses
that you may pay if you buy and hold shares of the Fund:
SHAREHOLDER
FEES
(deducted directly from gross amount
of transaction)
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Retail
Class
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Retirement
Class
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Premier
Class
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Institutional
Class
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Maximum Sales Charge Imposed on Purchases
(percentage
of offering price)
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0%
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0%
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0%
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0%
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Maximum
Deferred Sales Charge
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0%
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0%
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0%
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0%
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Maximum
Sales Charge Imposed on Reinvested
Dividends and Other Distributions
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0%
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0%
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0%
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0%
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Redemption or Exchange Fee
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0%
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0%
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0%
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0%
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Account Maintenance Fee
(annual fee on accounts under $2,000)
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$15.00
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0%
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0%
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0%
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TIAA-CREF
Social Choice Equity Fund
■
Summary Prospectus
1
ANNUAL FUND OPERATING EXPENSES
(expenses that you pay each year as a percentage of the value of your investment)
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Retail
Class
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Retirement Class
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Premier Class
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Institutional
Class
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Management Fees
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0.15%
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0.15%
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0.15%
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0.15%
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Distribution (Rule 12b-1) Fees
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0.25%
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0.15%
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Other Expenses
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0.09%
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0.28%
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0.03%
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0.04%
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Total
Annual Fund Operating Expenses
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0.49%
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0.43%
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0.33%
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0.19%
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Waivers and Expense Reimbursements
1
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Total Annual Fund Operating
Expenses After Fee Waiver and/or Expense Reimbursement
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0.49%
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0.43%
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0.33%
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0.19%
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1
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Under the Funds expense
reimbursement arrangements, the Funds investment adviser, Teachers Advisors, Inc. ("Advisors"),
has contractually agreed to reimburse the Fund for any Total Annual Fund Operating Expenses (excluding
interest, taxes, brokerage commissions or other transactional expenses, Acquired Fund Fees and Expenses
and extraordinary expenses ) that exceed: (i) 0.61% of average daily net assets for Retail Class shares;
(ii) 0.47% of average daily net assets for Retirement Class shares; (iii) 0.37% of average daily net
assets for Premier Class shares; and (iv) 0.22% of average daily net assets for Institutional Class shares
of the Fund. These expense reimbursement arrangements will continue through at least February 28, 2014,
unless changed with approval of the Board of Trustees.
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Example
This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The example assumes that you
invest $10,000 in the Fund for the time periods indicated and then redeem all your shares at the end
of those periods. The example also assumes that your investment has a 5% return each year and that the
Funds operating expenses, before expense reimbursements, remain the same. The example assumes that
the Funds expense reimbursement agreement will remain in place through February 28, 2014, but that
there will be no waiver or expense reimbursement agreement in effect thereafter. Although your actual
costs may be higher or lower, based on these assumptions your costs would be:
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Retail
Class
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Retirement Class
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Premier
Class
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Institutional Class
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1 Year
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$
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50
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$
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44
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$
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34
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$
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19
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3
Years
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$
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157
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$
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138
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$
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106
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$
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61
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5
Years
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$
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274
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$
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241
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$
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185
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$
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107
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10 Years
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$
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616
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$
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542
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$
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418
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$
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243
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PORTFOLIO
TURNOVER
The Fund pays transaction costs, such as commissions, when it buys and sells securities
(or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which
are not reflected in annual fund operating expenses or in the example, affect the Funds
2
Summary Prospectus
■
TIAA-CREF Social Choice Equity Fund
performance.
During the fiscal year ended October 31, 2012, the Funds portfolio turnover rate was 17% of the
average value of its portfolio.
PRINCIPAL INVESTMENT STRATEGIES
Under normal circumstances,
the Fund invests at least 80% of its assets in equity securities. The Fund attempts to track the return
of the U.S. stock market as represented by its benchmark, the Russell 3000
®
Index, while
investing only in companies whose activities are consistent with the Funds social criteria. See
Additional Information About the Funds Benchmark Index below for more information about
the Funds benchmark.
The social criteria the Fund takes into consideration, and any
universe of investments that the Fund utilizes, are non-fundamental investment policies. They can be
changed without the approval of the Funds shareholders. For purposes of the 80% investment policy,
the term assets means net assets, plus the amount of any borrowings for investment purposes.
The Funds investments are subject to certain environmental, social and governance
(ESG) criteria. The research vendor currently providing the ESG performance evaluation is
MSCI, Inc. (MSCI). All companies must meet or exceed minimum ESG performance standards to
be eligible for inclusion in the Fund. The evaluation process favors companies with leadership in ESG
performance relative to their peers. Typically, environmental assessment categories include climate change,
natural resource use, waste management and environmental opportunities. Social evaluation categories
include human capital, product safety and social opportunities. Governance assessment categories include
corporate governance, business ethics and government & public policy. How well companies adhere to
international norms and principles and involvement in major ESG controversies (within environment, customers,
human rights & community, labor rights & supply chain, and governance) are other considerations.
The
ESG evaluation process is conducted on an industry-specific basis and involves the identification of
key performance indicators, which are given more relative weight compared to the broader range of potential
assessment categories. Concerns in one area do not automatically eliminate an issuer from being an eligible
investment for the Fund. When ESG concerns exist, the evaluation process gives careful consideration
to how companies address the risks and opportunities they face in the context of their industry and relative
to their peers. The social and environmental impact of corporate activities related to the production
and sale of alcohol, tobacco, military weapons, firearms, nuclear power and gambling products and services
are quantified and incorporated into a companys overall ESG performance assessment. While not automatically
excluded from the Fund, most companies involved in these industries are ineligible for inclusion in the
Fund due to their poor overall ESG performance.
TIAA-CREF Social Choice Equity Fund
■
Summary
Prospectus
3
Once a universe of ESG-eligible companies is established, Advisors then uses quantitative
investment techniques to attempt to closely match, to the extent practicable, the overall risk characteristics
of the benchmark index. The Fund holdings will generally consist of a subset of the eligible investment
universe. The Fund is not required to invest in all companies that meet the ESG criteria.
The Corporate
Governance and Social Responsibility Committee (the CGSR Committee) of the Board of Trustees
of the Trust (Board of Trustees) reviews the ESG criteria used to screen securities held
by the Fund and approves the vendor of that service. Advisors seeks to ensure that the Funds investments
are consistent with its ESG criteria, but Advisors cannot guarantee that this will always be the case
for every Fund investment. Consistent with its responsibilities, the CGSR Committee evaluates options
for implementing the Funds ESG investment criteria and monitors the ESG vendors selected to supply
the ESG-eligible universe. Advisors has the right to change the ESG vendor(s) at any time and to add
to the number of vendors providing the universe of eligible companies. Investing on the basis of ESG
criteria is qualitative and subjective by nature, and there can be no assurance that the process utilized
by the Funds vendor(s) or any judgment exercised by the CGSR Committee or Advisors will reflect
the beliefs or values of any particular investor.
The Fund is not restricted from investing in
any securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The
Fund may also invest in securities issued by other countries or their agencies or instrumentalities as
approved by the CGSR Committee. Consistent with its ESG criteria, the Fund may invest up to 15% of its
assets in foreign investments.
PRINCIPAL INVESTMENT RISKS
You could lose money over short or long periods
by investing in this Fund. An investment in the Fund, due to the nature of the Funds portfolio
holdings, typically is subject to the following principal investment risks:
·
Social Criteria Risk
The risk that because the Funds
social criteria exclude securities of certain issuers for nonfinancial reasons, the Fund may forgo some
market opportunities available to funds that dont use these criteria.
·
Market Risk
The risk that market prices of portfolio
investments held by the Fund may fall rapidly or unpredictably due to a variety of factors, including
changing economic, political or market conditions. Market risk may affect a single issuer, industry or
sector of the economy, or it may affect the market as a whole.
·
Issuer Risk
(often called
Financial Risk
)The risk that an issuers earnings
prospects and overall financial position will deteriorate, causing a decline in the value of the issuers
financial instruments over short or extended periods of time.
4
Summary Prospectus
■
TIAA-CREF Social
Choice Equity Fund
·
Foreign Investment Risk
Foreign
markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political,
regulatory, currency, market or economic developments and can result in greater price volatility and
perform differently from financial instruments of U.S. issuers. This risk may be heightened in emerging
or developing markets. Foreign investments may also be less liquid and more difficult to value than investments
in U.S. issuers.
·
Mid-Cap
Risk
The risk that the stocks of mid-capitalization companies often experience greater price
volatility, lower trading volume and less liquidity than the stocks of larger, more established companies.
·
Small-Cap Risk
The risk that the stocks of small-capitalization
companies
often experience greater price volatility than large- or mid-sized companies because small-cap companies
are often newer or less established than larger companies and are likely to have more limited resources,
products and markets. Securities of small-cap companies are often less liquid than securities of larger
companies as a result of there being a smaller market for their securities.
·
Active Management Risk
The risk that Advisors
strategy, investment selection or trading execution may cause the Fund to underperform relative to the
benchmark index or mutual funds with similar investment objectives.
·
Index Risk
The risk that the Funds performance
will not correspond to its benchmark index for any period of time and may underperform such index or
the overall stock market.
Additionally,
to the extent that the Funds investments vary from the composition of its benchmark index,
the
Funds performance
could potentially vary from the indexs performance to a greater extent than if
the
Fund merely attempted
to replicate the index.
Please see the non-summary portion of the prospectus for more detailed
information about the risks described above.
PAST PERFORMANCE
The following chart and table help illustrate
some of the risks of investing in the Fund by showing changes in the Funds performance from year
to year. The bar chart shows the annual total returns of the Institutional Class of the Fund, before
taxes, in each full calendar year for the last ten years. Because the expenses vary across share classes,
the performance of the Institutional Class may vary from the other share classes. Below the bar chart
are the best and worst returns of the Institutional Class of the Fund for a calendar quarter during the
preceding ten-year period. The performance table following the bar chart shows the Funds average
annual total returns for the Institutional Class, Retirement Class, Premier Class and Retail Class over
the one-year, five-year, ten-year and since-inception periods (where applicable) ended December 31, 2012,
and how those returns compare to those of the Funds benchmark index. After-tax performance is shown
only for Institutional Class shares, and after-tax
TIAA-CREF Social Choice Equity Fund
■
Summary
Prospectus
5
returns
for the other Classes of shares will vary from the after-tax returns presented for Institutional Class
shares.
The returns shown below reflect previous agreements by Advisors to waive or reimburse
the Fund for certain fees and expenses. Without these waivers and reimbursements, the returns of the
Fund would have been lower. Past performance of the Fund (before and after taxes) is not necessarily
an indication of how it will perform in the future. The benchmark index listed below is unmanaged, and
you cannot invest directly in the benchmark index. The returns for the benchmark index reflect no deduction
for fees, expenses or taxes.
For
current performance information of each share class, including performance to the most recent month-end,
please visit www.tiaa-cref.org.
ANNUAL TOTAL RETURNS FOR THE INSTITUTIONAL CLASS SHARES (%)
Best quarter:
17.87%, for the quarter ended June 30, 2009. Worst quarter: -23.79%, for the quarter ended December 31,
2008.
6
Summary
Prospectus
■
TIAA-CREF Social
Choice Equity Fund
AVERAGE
ANNUAL TOTAL RETURNS
For the Periods Ended December 31, 2012
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Inception Date
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One Year
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Five Years
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Ten Years
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Institutional Class
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7/1/99
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$
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$
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$
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Return Before Taxes
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14.05
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%
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2.24
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%
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7.60
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%
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Return After Taxes on Distributions
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13.70
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%
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1.95
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%
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7.28
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%
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Return After Taxes on Distributions
and Sale of
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Fund Shares
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9.58
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%
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1.86
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%
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6.66
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%
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Retail Class
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3/31/06
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Return Before Taxes
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13.71
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%
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2.02
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%
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7.47
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%*
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Retirement Class
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10/1/02
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Return Before Taxes
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13.86
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%
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1.99
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%
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7.27
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%
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Premier Class
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9/30/09
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Return
Before Taxes
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14.01
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%
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2.12
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%*
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7.54
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%*
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Russell 3000
®
Index
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(reflects
no deductions for fees, expenses or taxes)
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16.42
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%
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2.04
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%
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7.68
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%
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Current performance of the Funds shares may be higher or lower
than that shown above.
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*
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The performance shown for the Retail Class and Premier Class that is prior to their
inception date is based on performance of the Funds Institutional Class. The performance for these
periods has not been restated to reflect higher expenses of the Retail Class and Premier Class. If those
expenses had been reflected, the performance would have been lower.
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After-tax
returns are calculated using the historical highest individual federal marginal income tax rates in effect
during the periods shown and do not reflect the impact of state and local taxes. Actual after-tax returns
depend on the investors tax situation and may differ from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(a),
401(k) or 403(b) plans or Individual Retirement Accounts (IRAs). After-tax returns are shown for only
one class, and after-tax returns for other classes will vary.
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PORTFOLIO MANAGEMENT
Investment Adviser.
The Funds
investment adviser is Teachers Advisors, Inc.
Portfolio Managers.
The following persons manage the Fund on a day-to-day basis:
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Name:
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Philip James (Jim) Campagna, CFA
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Anne Sapp, CFA
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Title:
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Director
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Managing Director
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Experience
on Fund:
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since 2005
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since
2004
|
PURCHASE AND SALE OF FUND SHARES
Retail Class shares are available for purchase
through certain financial intermediaries or by contacting the Fund directly at 800 223-1200 or www.tiaa-cref.org.
Retirement Class and Premier Class shares are generally available for purchase through employee benefit
plans or other types of savings plans or
TIAA-CREF Social Choice Equity Fund
■
Summary
Prospectus
7
accounts.
Institutional Class shares are available for purchase directly from the Fund by certain eligible investors
or through financial intermediaries.
·
The minimum initial investment for Retail Class shares
is $2,000 for Traditional IRA, Roth IRA and Coverdell accounts and $2,500 for all other account types.
Subsequent investments for all account types must be at least $100.
·
There is no
minimum initial or subsequent investment for Retirement Class shares. Retirement Class shares are primarily
offered through employer-sponsored employee benefit plans.
·
There is a
$100 million aggregate plan size and $1 million initial minimum plan-level investment requirement for
Premier Class shares. Premier Class shares are primarily offered through certain financial intermediaries
and employer-sponsored employee benefit plans.
·
The minimum initial investment is $2 million and the
minimum subsequent investment is $1,000 for Institutional Class shares, unless an investor purchases
shares by or through financial intermediaries that have entered into an appropriate agreement with the
Fund or its affiliates.
Redeeming
or Exchanging Shares.
You can redeem (sell) or exchange your shares of the Fund on any day that
the New York Stock Exchange (NYSE) is open for business. Exchanges may be made for shares
of the same share class of other funds offered by the Trust. If your shares are held through a third
party, please contact that entity for applicable redemption or exchange requirements. If your shares
are held directly with the Fund, contact the Fund directly in writing or by telephone.
TAX INFORMATION
The Fund
intends to make distributions to shareholders that may be taxed as ordinary income or capital gains.
Distributions made to tax-exempt shareholders or shareholders who hold Fund shares in a tax-deferred
account are generally not subject to income tax in the current year, but redemptions made from tax-deferred
accounts may be subject to income tax.
PAYMENTS TO BROKER-DEALERS AND OTHER
FINANCIAL INTERMEDIARY COMPENSATION
If
you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund
and/or its related companies may pay the intermediary for the sale of Fund shares and related services
or for other investor services. These payments may create a conflict of interest by influencing
the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment.
Ask your salesperson or visit your financial intermediarys website for more information.
8
Summary Prospectus
■
TIAA-CREF Social Choice Equity Fund
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SGS-SFICOC-US10/81462
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