TIAA-CREF MUTUAL FUNDS
MONEY MARKET FUND
BOND PLUS FUND
GROWTH & INCOME FUND
GROWTH EQUITY FUND
INTERNATIONAL EQUITY FUND
MANAGED ALLOCATION FUND
AUDITED FINANCIAL STATEMENTS
INCLUDING STATEMENTS OF INVESTMENTS
DECEMBER 31, 1997
[PHOTOGRAPH]
TIAA-CREF MUTUAL FUNDS 1997 ANNUAL REPORT
<PAGE>
================================================================================
MONEY MARKET FUND
BOND PLUS FUND
GROWTH & INCOME FUND
GROWTH EQUITY FUND
INTERNATIONAL EQUITY FUND
MANAGED ALLOCATION FUND
REPORT OF MANAGEMENT RESPONSIBILITY
REPORT OF INDEPENDENT AUDITORS
FINANCIAL STATEMENTS
STATEMENTS OF INVESTMENTS
MONEY MARKET FUND 26
BOND PLUS FUND 28
GROWTH & INCOME FUND 30
GROWTH EQUITY FUND 38
INTERNATIONAL EQUITY FUND 50
MANAGED ALLOCATION FUND 57
<PAGE>
================================================================================
"TIAA-CREF IS COMMITTED TO PROVIDING PARTICIPANTS WITH THE MEANS TO HELP ENSURE
THEIR FUTURES. WE STRIVE TO OFFER THE PRODUCTS AND FEATURES OUR CUSTOMERS NEED
TO HELP THEM REACH THEIR FINANCIAL GOALS. AND THE INTRODUCTION OF TIAA-CREF
MUTUAL FUNDS CONSTITUTES ANOTHER BIG STEP IN THIS DIRECTION."
[PHOTO OF JOHN H. BIGGS]
John H. Biggs, CHAIRMAN OF THE BOARD, TIAA-CREF MUTUAL FUNDS
================================================================================
A LETTER FROM THE CHAIRMAN
This is the first annual report of the TIAA-CREF Mutual Funds. We began offering
them on September 2, 1997, in response to many requests we'd received from the
two-million-strong participants in the TIAA-CREF retirement system. They wanted
us to extend our full service, low cost, and investment management expertise to
after-tax mutual fund investments that would complement our before-tax products.
And so we have.
TIAA-CREF AND ITS MISSION
TIAA was founded in 1918 by the Carnegie Foundation for the Advancement of
Teaching, exclusively to help colleges and their employees by creating a viable
retirement system. The system and related insurance products are offered at the
lowest possible cost to employers and participants. CREF, a companion
organization, was created in 1952 to offer the first variable annuity, to
bolster the system's ability to cope with inflation. The TIAA-CREF system now
provides retirement and insurance plans at over 8,000 institutions, benefitting
two million participants.
LOW INITIAL INVESTMENT
Through our decades of experience with retirement plan investing, we've seen
that small investors who invest regularly can, over time, accumulate a
significant amount. This is one reason why we've set the minimum for investing
in TIAA-CREF's Mutual Funds at $250 ($25 under our Automatic Investment Plan).
These minimums also enable virtually every investor to diversify among choices
from the six funds at the very beginning.
/s/ John H. Biggs
-----------------------
John H. Biggs
1997 ANNUAL REPORT 1
<PAGE>
"WHILE SOME OTHER COMPANIES ARE FOCUSED ON SHORT-TERM GAINS, TIAA-CREF IS
COMMITTED TO INVESTING FOR THE LONG TERM. AT TIAA-CREF, WE KNOW THE VALUE OF A
CLEAR VISION AND A FLEXIBLE YET CONSISTENT MANAGEMENT STYLE. THIS LONG-TERM
STRATEGIC APPROACH HAS EARNED US THE REPUTATION FOR MAKING HIGH-QUALITY
INVESTMENT DECISIONS THAT HAVE RESULTED IN SOME OF THE STRONGEST FINANCIAL
PRODUCTS AVAILABLE TODAY."
[PHOTO OF MARTIN L. LEIBOWITZ]
Martin L. Leibowitz, CHIEF INVESTMENT OFFICER
================================================================================
A MESSAGE FROM THE
CHIEF INVESTMENT OFFICER
The following dozen pages report and comment on the first four months of
performance of TIAA-CREF Mutual Funds. Each fund manager speaks to issues that
pertain to his or her particular fund. But there are a number of common features
that all six funds share, and these are an important part of each one's
investing approach. So it makes sense to describe them here once, rather than
repeat them in each fund manager's comments.
THE BENCHMARK/ACTIVE APPROACH
Each equity fund consists of two parts. One part aims to match the fund's
benchmark, both in risk characteristics and in returns, or do slightly better.
The other part is actively managed investments selected primarily, if not
solely, to boost the fund's return.
We believe this approach gives the fund managers the best chance to succeed,
because it enables them to focus on what they do best. The benchmark part offers
the following advantages:
o relieves the fund managers of the need to make active investments for
diversification. They can concentrate on finding the stocks they believe have
the best chance for growth and/or income, and buy only those. The managers
don't have to buy investments for which they have no affection simply to
achieve the industry or country diversification of the benchmark.
o enables them to hold the fund's cash to a very low percentage. When the
manager is convinced of the wisdom of buying an investment, the funds to buy
it come from liquidating part of the investments in the benchmark; conversely
for a sale of an actively managed holding.
o frees the managers from the need to sell one investment in the active part in
order to raise funds for the purchase of another they want to add to the
fund, or to buy one with the proceeds of an investment they want to sell.
o controls the risk of deviation from the performance of the benchmark.
LOW COSTS
In part by leveraging TIAA-CREF's existing staff and facilities, Teachers
Advisors, Inc.(a wholly owned subsidiary of Teachers Insurance and Annuity
Association), which manages each fund's assets, is able to keep expenses down.
It's our observation that future performance is uncertain, but expenses are for
sure. The lower we keep our expenses, the more of our investment performance we
can pass on to investors.
THE "SHORT-SHORT" TEST
The IRS requires that, to qualify as a regulated investment company, a mutual
fund must derive less than 30 percent of its gross income from the sale of
securities held less than three months. This rule, which expired on December 31,
1997 (thanks to the Taxpayer Reform Act of 1997), was created to prevent
short-term trading as a normal pattern of investing.
As applied to TIAA-CREF Mutual Funds, this rule effectively meant that we could
not sell securities we'd bought after October 1. While we expect the funds to
have turnover ratios that would generally be characterized as "low," this
restriction temporarily constrained our ability to fine-tune our portfolios as
we would have preferred.
/s/ Martin L. Leibowitz
-----------------------------
Martin L. Leibowitz
2
<PAGE>
================================================================================
[PHOTO OF SCOTT EVANS]
Scott Evans
EXECUTIVE VICE PRESIDENT
================================================================================
[PHOTO OF JOHN A SOMERS]
John A. Somers
EXECUTIVE VICE PRESIDENT
We are confident that our new mutual funds will provide participants with six
excellent vehicles for their after tax investments. Using the extensive
investment management resources that have piloted our pension accounts to four-
and five-star ratings, we plan to use the same time-tested investment approach
in our mutual funds. However, there are two key differences between mutual funds
and pension accounts that will cause us to make subtle changes to our investment
process.
One change involves the realization of capital gains, which produces a tax
obligation for most mutual fund holders, but not for investors in a tax-free
pension account. Therefore, our mutual funds may trade less frequently than our
pension accounts in consideration of our investors' tax burden.
The second difference is that our mutual fund investors are likely to use our
products to pursue a variety of financial goals, including buying a house,
funding a child's college education, or simply setting aside money for a
vacation. So the cash flows in and out of the funds are likely to be less
predictable than in our pension accounts, where participants steadily accumulate
savings for a common long-term purpose: retirement income. We will keep this
distinction in mind when structuring our investment program for each fund.
To get TIAA-CREF Mutual Funds off to a strong start, on July 17, 1997, Teachers
Insurance and Annuity Association (TIAA) invested $250 million in the TIAA-CREF
Mutual Funds. This was "seed money," which the funds used to create their
portfolios and begin operations. The money was allocated $50 million to the
Managed Allocation Fund and the rest as follows (in millions):
DIRECT FROM MANAGED
FUND SEED MONEY ALLOCATION FUND TOTAL
International Equity $44 $6 $50
==========================================================
Growth Equity $38 $12 $50
==========================================================
Growth & Income $38 $12 $50
==========================================================
Bond Plus $32 $18 $50
==========================================================
Money Market $48 $2 $50
==========================================================
Like any investor, TIAA will receive fund returns for its investment. But this
investment is intended to be a temporary one -- just until other shareholders'
purchases make the funds self-sustaining. At that point, TIAA will start to
redeem its shares, recovering the original investment from each fund plus the
returns each has generated since the "seeding" date.
1997 ANNUAL REPORT 3
<PAGE>
"THE TIAA-CREF MONEY MARKET FUND IS A GREAT MATCH FOR INVESTORS WHO ARE LOOKING
FOR A CONSERVATIVE INVESTMENT ON A TEMPORARY BASIS OR WHO WANT TO MAINTAIN AN
EMERGENCY CASH RESERVE. WHAT'S MORE, ITS EXPENSES ARE AMONG THE LOWEST IN THE
INDUSTRY, AND THIS MEANS OPPORTUNITY FOR HIGHER YIELDS FOR OUR SHAREHOLDERS."
[PHOTO OF STEVEN TRAUM]
Steven Traum, DIRECTOR, PORTFOLIO MANAGEMENT, TEACHERS ADVISORS
Mr. Traum joined TIAA-CREF in 1983. He has been responsible for management of
the new CREF Inflation-Linked Bond Account since its inception in 1997 and the
CREF Money Market Account since its inception in 1988.
================================================================================
MONEY MARKET FUND
OBJECTIVE
seeks high current income,
to the extent consistent
with maintaining liquidity and preserving capital.
Q. WHAT IS THE FUND'S INVESTMENT STRATEGY?
A. This fund invests in fixed and floating/variable-rate securities that
represent minimal credit risk and that have a weighted AVERAGE maturity of 90
days or less. The longest maturity will be 397 days. Most of the fund's
investments are in short-term commercial paper, domestic and foreign
certificates of deposit, bankers' acceptances, and securities issued by the U.S.
government and/or its agencies.
Over the last four months, the fund had a longer weighted average maturity
structure than the benchmark's.
The fund's success, compared with its benchmark and other money market mutual
funds, can be attributed to three factors -- its asset allocations, its weighted
average maturities, and its low expenses.
Q. WHAT IS ITS INVESTMENT FOCUS?
A. This fund is suitable for conservative investors who are looking for a high
degree of principal stability and liquidity, and are willing to accept returns
that are generally lower than those offered by longer-term investments.
Credit quality: The fund invests only in money market securities that are
classified as "first tier" securities -- which are securities ranked in the
highest category by nationally recognized statistical rating organizations.
4
<PAGE>
MONEY MARKET FUND
PERFORMANCE AT A GLANCE AS OF 12/31/97
<TABLE>
<CAPTION>
TOTAL RETURN* NET ANNUALIZED YIELD
SINCE 9/2/97 EXPENSE AVERAGE NET ASSETS FOR THE 7 DAYS ENDING 12/30/97
INCEPTION RATIO MATURITY IN MILLIONS CURRENT YIELD EFFECTIVE YIELD
===========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET FUND 1.85% 0.29%*** 62 DAYS $63.6 5.54% 5.69%
===========================================================================================================================
IBC MONEY FUND REPORT AVERAGE- 1.70** 0.50% 54 DAYS 5.12 5.25
ALL TAXABLETM
===========================================================================================================================
LIPPER MONEY MARKET FUNDS AVERAGE 1.63
===========================================================================================================================
* THE PERFORMANCE OF THE FINANCIAL MARKETS FLUCTUATES, SO YOU SHOULD NOT EXPECT A FUND'S
PAST RETURNS TO BE REPEATED IN THE FUTURE.
** 9/1/97 - 12/30/97
*** ANNUALIZED RATE REFLECTING A WAIVER OF A PORTION OF THE FUND'S MANAGEMENT FEE. THE WAIVER
IS CONTRACTUAL AND IS GUARANTEED THROUGH AT LEAST JULY 1, 2000.
====================================================================================================================================
</TABLE>
ASSET ALLOCATION AS OF 12/31/97
===============================
[GRAPHIC PIE CHART]
===============================
o 66% Commercial paper
o 15% Certificates of deposit
o 14% Floating-rate notes
o 5% Bankers' acceptances
$10,000 OVER LIFE OF FUND
[GRAPHIC CHART]
Money Market Fund IBC Money Fund Report
----------------- ---------------------
SEPT 2 $10,000 $10,000
SEPT 30 10,044 10,041
OCT 31 10,090 10,084
NOV. 30 10,132 10,123
DEC 31 10,181 10,170
Money Market Fund
IBC's Money Fund Report Average - ALL TAXABLE
MATURITY OF INVESTMENTS
MONTHLY SUMMARY AS OF 12/31/97
[GRAPHIC CHART]
TOTAL AMOUNT OF INVESTMENTS (MILLIONS)
MATURITY OF INVESTMENTS
MONTHLY SUMMARY AS OF 12/31/97
MONTH %
----- ----
JAN 29.3
FEB 13.2
MAR 1.3
APR 0.4
MAY 6.5
JUN 2.0
JUL 0
AUG 2.0
SEP 6.8
OCT 1.0
NOV 2.0
- -----------------------
The TIAA-CREF Money
Market Fund is neither
insured nor guaranteed
by the U.S. government.
- -----------------------
1997 ANNUAL REPORT 5
<PAGE>
1997 ANNUAL REPORT "THE BOND Plus FUND TAKES A CONSERVATIVE, VALUE- ORIENTED
APPROACH TO BOND INVESTING. OUR DIVERSIFIED, HIGH-QUALITY PORTFOLIO OF FIXED
INCOME SECURITIES IS BEST SUITED FOR LONG-TERM SAVING."
[PHOTO OF ELIZABETH BLACK]
Elizabeth Black, DIRECTOR, PORTFOLIO MANAGEMENT, TEACHERS ADVISORS
Ms. Black has been with TIAA-CREF for ten and a half years and is also
responsible for managing the investments in CREF's Bond Market Account ($1.5
billion in assets) and the fixed income portion of CREF's Social Choice Account
($920 million in assets).
BOND PLUS FUND
================================================================================
OBJECTIVE
- -------------------------------
seeks a favorable long-term
return, primarily through high
current income consistent
with preserving capital.
- -------------------------------
Q. HOW IS THE FUND STRUCTURED?
A. The Bond PLUS Fund aims to match the risk characteristics of, but outperform
the returns of, the Lehman Brothers Aggregate Bond Index (the fund's benchmark).
The fund will invest more heavily than the index (will be overweighted) in
sectors that we believe the market has priced lower than their inherent value
and will be underweighted in sectors we believe are priced higher than their
value. We will also choose investments within the sectors that we believe offer
the best value.
Q. WHAT ARE THE FUND'S HOLDINGS FROM A CREDIT QUALITY VIEWPOINT?
A. The fund owns U.S. Treasury and agency bonds, both guaranteed or backed by
the U.S. government. We also own mortgage-backed securities and corporate bonds.
As of year-end, the entire portfolio was investment grade, although in the
future, the fund might invest in below-investment-grade securities from time to
time.
Q. WHAT IS THE PLUS COMPONENT
OF THE FUND?
A. The "plus" part will be invested in securities not found in the benchmark,
such as high-yield, private placements (including 144As), commercial mortgage
backed and other asset backed securities, and foreign securities. Through
careful underwriting, we believe these securities can add to the portfolio's
returns with modest additional risk. However, throughout 1997, the plus part
wasn't utilized to any great extent. This was primarily because we concentrated
on positioning the Lehman Brothers Aggregate Bond Index part of the fund. Also,
before year-end we took advantage of attractive bids for two of the three "144A"
private placements we had purchased.
The relative sizes of the two parts at any time depend primarily on the
opportunities in any of the plus investments. However, the plus part won't ever
be larger than 25 percent of the portfolio.
TOP FIVE MARKET SECTORS
U.S. Treasury bonds 41.1%
===============================================
Mortgage-backed securities* 27.5
===============================================
Corporate bonds 23.7
===============================================
U.S. agencies 5.2
===============================================
Money market instruments 2.5
===============================================
* INCLUDES GOVERNMENT-BACKED AND PRIVATE-LABEL
SECURITIES
Q. HOW DO YOU SELECT INVESTMENTS?
A. We select investments based on our own credit research, which comes from the
depth of experience that we've developed when investing for the CREF Bond Market
Account (currently with $1.5 billion in assets) and the fixed-income portion of
the CREF Social Choice Account (currently about $920 million).
During the four months in which the fund was in operation, intermediate- and
long-term interest rates generally followed a downward trend. On September 2,
for example, the 30-year U.S. Treasury bond yield was 6.61 percent, but at
year-end it had fallen to 5.97 percent.
6
<PAGE>
<TABLE>
<CAPTION>
BOND PLUS FUND
PERFORMANCE AT A GLANCE AS OF 12/31/97
TOTAL RETURN* EXPENSE NET ASSETS
SINCE 9/2/97 INCEPTION RATIO IN MILLIONS
==========================================================================================
<S> <C> <C> <C>
BOND PLUS 4.51% 0.30%** $58.4
==========================================================================================
LEHMAN BROTHERS AGGREGATE BOND INDEX 4.46
==========================================================================================
LIPPER FIXED INCOME FUNDS AVERAGE 3.25
==========================================================================================
</TABLE>
* THE PERFORMANCE OF THE FINANCIAL MARKETS FLUCTUATES, SO YOU SHOULD NOT
EXPECT A FUND'S PAST RETURNS TO BE REPEATED IN THE FUTURE.
** ANNUALIZED RATE REFLECTING A WAIVER OF A PORTION OF THE FUND'S MANAGEMENT
FEE. THE WAIVER IS CONTRACTUAL AND IS GUARANTEED THROUGH AT LEAST JULY 1,
2000.
================================================================================
$10,000 OVER LIFE OF FUND
[CHART]
DATE Bond Plus Fund Lehman Bros Agg. Bond Index
---- -------------- ---------------------------
SEPT. 2 $10,000 $10,000
SEPT. 30 10,143 10,147
OCT. 31 10,286 10,295
NOV. 30 10,345 10,342
DEC. 31 10,451 10,446
Bond PLUS Fund
Lehman Brothers Aggregate Bond Index
BOND PLUS VS. BENCHMARK AS OF 12/31/97
MEASURE* BOND PLUS LEHMAN BROTHERS
FUND AGGREGATE INDEX
================================================================================
Average maturity (in years) 12.79 14.07
================================================================================
Duration to maturity 6.12 6.54
================================================================================
Average life 8.20 8.34
================================================================================
Option-adjusted duration 4.56 4.60
* AS CALCULATED USING BARRA, A WIDELY RECOGNIZED INVESTMENT RESEARCH FIRM
WHICH CREATED THE FIRST MULTIPLE-FACTOR BOND RISK MODEL.
UNDERSTANDING PERFORMANCE: The option-adjusted duration is the best indicator of
how a fund will move in relation to the index for a given change in interest
rates. For example, if interest rates fall by one percentage point, the fund's
and the index's return will rise by about 4.6 percentage points. By keeping the
fund's option-adjusted duration close to the index's, movement in interest rates
does not materially affect the fund relative to the benchmark.
Q. DOES THE FUND HOLD FOREIGN BONDS?
A. Eventually, the fund will invest in international bonds, but as of year-end
1997 its only international holding was a Province of Quebec bond (payable in
U.S. dollars). We intend to keep investments in foreign bonds (other than those
in U.S. dollars) to no more than 15 percent of the fund.
Q. WHAT'S YOUR OUTLOOK FOR THE FUND IN THE COMING YEAR?
A. It is unlikely that the fund will utilize to a great extent its "plus"
component until the latter part of 1998. At least two factors will affect when
this aspect of the overall strategy will begin. One is the size of the fund.
With a $58 million portfolio, any "round lot" ($1 million) would represent a
significant concentration in the fund. So the faster the fund grows, the sooner
we can focus on the plus part.
Second, we will acquire investments in this segment only when we can find
attractive ones, considering both the risk and the reward potential. There were
only a few such opportunities during the first four months of the fund's
existence.
1997 ANNUAL REPORT 7
<PAGE>
GROWTH & INCOME FUND
PERFORMANCE AT A GLANCE AS OF 12/31/97
TOTAL RETURN* EXPENSE NET ASSETS
SINCE 9/2/97 INCEPTION RATIO IN MILLIONS
================================================================================
GROWTH & INCOME FUND 8.38% 0.43%** $61.8
================================================================================
S&P 500 8.51%
================================================================================
LIPPER GROWTH & INCOME FUND INDEX 6.16%
================================================================================
* THE PERFORMANCE OF THE FINANCIAL MARKETS FLUCTUATES, SO YOU SHOULD NOT
EXPECT A FUND'S PAST RETURNS TO BE REPEATED IN THE FUTURE.
** ANNUALIZED RATE REFLECTING A WAIVER OF A PORTION OF THE FUND'S MANAGEMENT
FEE. THE WAIVER IS CONTRACTUAL AND IS GUARANTEED THROUGH AT LEAST JULY 1,
2000.
================================================================================
Q. HOW IS THE FUND STRUCTURED?
A. The fund consists of two parts. One aims to slightly exceed the Standard &
Poor's 500 Stock Index (the fund's benchmark). The other -- the actively managed
part -- is stocks of companies we believe have strong managements anD excellent
prospects for growth.
Q. HOW DID THE FUND BEGIN?
A. Prior to the September 2 inception date, the Growth & Income Fund was seeded
with $50 million. This money was invested to match the characteristics of the
benchmark. We expect the actively managed part of the fund to become a more
significant element in the fund's performance, though that will depend on
opportunities that are available to us.
Q. HOW DID THE FUND PERFORM?
A. At year-end, the fund had reached $61.8 million in assets -- about 83 percent
in the benchmark part and 17 percent in the active part. This allocation was
influenced, in part, by the need to comply with the "short-short" rule described
on page 2.
The fund returned 8.38 percent net of expenses, between its September 2, 1997
inception date and December 31, 1997. This compares with a return of 8.51
percent for the S&P 500 and 6.16 percent for the Lipper Growth & Income Fund
Index.
The fund has received a relatively steady inflow of funds since its inception.
It generally has had very small redemptions, and on no day in 1997 did the total
dollar amount of redemptions exceed the dollar amount of new deposits.
INDUSTRY DIVERSIFICATION AS OF 12/31/97
========================================
[GRAPHIC PIE CHART]
========================================
o 34% Consumer products & services
o 17% Financial
o 16% Manufacturing & materials
o 12% Technology
o 11% Utilities
o 10% Other
8
<PAGE>
"THERE IS A DUAL BENEFIT TO INVESTING IN THIS FUND BECAUSE IT OFFERS THE
POTENTIAL FOR BOTH CAPITAL APPRECIATION AND CURRENT INCOME. IT IS BEST SUITED
FOR THOSE INVESTORS LOOKING FOR GROWTH POTENTIAL, WITHOUT THE HIGHER LEVELS OF
RISK ASSOCIATED WITH PURE GROWTH OR AGGRESSIVE FUNDS."
[PHOTO OF CARLTON N. MARTIN]
Carlton N. Martin, MANAGING DIRECTOR-GLOBAL RESEARCH, TEACHERS ADVISORS
Mr. Martin joined TIAA-CREF in 1980. He is also responsible for investments in
chemical, paper, and forest products, as well as in the environmental,
engineering, and construction industries for certain CREF accounts.
GROWTH & INCOME FUND
================================================================================
OBJECTIVE
- -----------------------------------
seeks a favorable long-term return
through capital appreciation and
investment income, primarily from
a broadly diversified portfolio of
common stocks
- -----------------------------------
Q. HOW WILL YOU ACHIEVE THE FUND'S OBJECTIVE?
A. The fund aims to have relatively low volatility for a stock fund, but with
growth characteristics. We'll do this by owning what we believe are world-class
companies with excellent managements. We'll buy them when we believe they're
priced fairly or at a discount relative to their growth potential and asset
values. The fund will occasionally buy stocks of foreign-based companies. At
year-end, roughly 7 percent of the fund's assets were in international stocks --
mainly Nokia, Phillips, and Novartis. The benchmark contains no foreign stocks.
$10,000 OVER LIFE OF FUND
[CHART]
DATE GROWTH & INCOME FUND S&P 500 INDEX
---- -------------------- -------------
SEPT. 2 $10,000 $10,000
SEPT. 30 10,542 10,548
OCT. 31 10,207 10,195
NOV. 30 10,667 10,667
DEC. 31 10,837 10,851
1997 ANNUAL REPORT 9
<PAGE>
GROWTH EQUITY FUND
PERFORMANCE AT A GLANCE AS OF 12/31/97
TOTAL RETURN* EXPENSE NET ASSETS
SINCE 9/2/97 INCEPTION RATIO IN MILLIONS
================================================================================
GROWTH EQUITY FUND 8.19% 0.45%** $64.5
================================================================================
RUSSELL 3000 GROWTH INDEX 5.75
================================================================================
LIPPER GROWTH FUND INDEX 6.42
================================================================================
* THE PERFORMANCE OF THE FINANCIAL MARKETS FLUCTUATES, SO YOU SHOULD NOT
EXPECT A FUND'S PAST RETURNS TO BE REPEATED IN THE FUTURE.
** ANNUALIZED RATE REFLECTING A WAIVER OF A PORTION OF THE FUND'S MANAGEMENT
FEE. THE WAIVER IS CONTRACTUAL AND IS GUARANTEED THROUGH AT LEAST JULY 1,
2000.
================================================================================
$10,000 OVER LIFE OF FUND
[CHART]
DATE GROWTH EQUITY FUND RUSSELL 3000 GROWTH INDEX
---- ------------------ -------------------------
SEPT. 2 $10,000 $10,000
SEPT. 30 10,535 10,524
OCT. 31 10,189 10,109
NOV. 30 10,640 10,469
DEC. 31 10,819 10,575
Q. HOW DID THE FUND PERFORM?
A. The Growth Equity Fund returned 8.19 percent between its September 2, 1997
inception date and December 31, 1997. This compares with the 5.75 percent return
of its benchmark, the Russell 3000(R) Growth Index, during that period.* The
Russell 3000 Growth Index, according to the Frank Russell Company, "measures the
performance of those Russell 3000 Index companies with higher price-to-book
ratios and higher forecasted growth values." A subset of the Russell 3000, the
Russell 3000 Growth Index contained 1,839 stocks as of the end of November 1997
(the latest data available). The Lipper Growth Fund Index, which measures the
performance of other U.S. growth funds, gained 6.42 percent during the September
2-December 31, 1997 period.
*The Russell 3000 is a trademark and a
service mark of the Frank Russell Company.
10
<PAGE>
"THIS FUND IS DESIGNED FOR INVESTORS WHO ARE SEEKING ABOVE-AVERAGE RETURNS AND
CAN ACCEPT A HIGHER DEGREE OF RISK. TO PURSUE OUR INVESTMENT OBJECTIVE, WE
CAREFULLY ACQUIRE POSITIONS IN A SELECT GROUP OF OUTSTANDING GROWTH COMPANIES
WHEN WE BELIEVE THE MARKET OFFERS US REASONABLE PRICES FOR THEIR SHARES."
[PHOTO OF JEFFREY SIEGEL]
Jeffrey Siegel, MANAGING DIRECTOR, TEACHERS ADVISORS
Mr. Siegel joined TIAA-CREF in 1988. He is also responsible for managing the
investments of the CREF Growth Account and the CREF Global Equities Account.
GROWTH EQUITY FUND
================================================================================
OBJECTIVE
- -----------------------------------------
seeks a favorable long-term return,
mainly through capital appreciation,
primarily from a diversified portfolio
of common stocks that present the
opportunity for exceptional growth.
- -----------------------------------------
Q. HOW DID THE FUND BEGIN?
A. The TIAA-CREF Growth Equity Fund was seeded with $50 million prior to its
inception date, and on September 2 it was invested entirely to match the
benchmark. Since then we have gradually introduced actively selected companies,
mainly in the technology, health care, and media areas. By year-end the actively
selected part of the fund was approximately 20 percent, so the benchmark part
was about 80 percent.
Q. CAN YOU EXPLAIN WHY YOU HAVE THE FUND STRUCTURED LIKE THAT?
A. The actively selected part of the fund is concentrated in a small number of
companies in which we have developed a strong conviction regarding their upside
potential. These companies all share some common traits. They are rapidly
growing companies dominant in the products and/or services they offer, and they
all generate substantial amounts of cash flow. This allows the managements of
these companies to reinvest the cash flow back into the business, to acquire
other companies, to pay down debt, or any combination of these.
Q. WHAT PART OF YOUR PORTFOLIO IS IN INTERNATIONAL STOCKS?
A. As of year-end, 1.1 percent of the fund was in international stocks, but I
expect this to grow somewhat, as opportunites arise. In contrast, our benchmark
Russell 3000 Growth index has no international stocks.
INDUSTRY DIVERSIFICATION AS OF 12/31/97
========================================
[GRAPHIC - PIE CHART]
========================================
o 46% Consumer products and services
o 23% Technology
o 14% Manufacturing and materials
o 6% Financial
o 5% Utilities
o 6% Other
1997 ANNUAL REPORT 11
<PAGE>
INTERNATIONAL EQUITY FUND
PERFORMANCE AT A GLANCE AS OF 12/31/97
TOTAL RETURN* EXPENSE NET ASSETS
SINCE 9/2/97 INCEPTION RATIO IN MILLIONS
================================================================================
INTERNATIONAL EQUITY FUND -2.30% 0.49%** $47.8
================================================================================
MORGAN STANLEY EAFE -2.67
================================================================================
LIPPER INTERNATIONAL FUNDS INDEX -1.71
================================================================================
* THE PERFORMANCE OF THE FINANCIAL MARKETS FLUCTUATES, SO YOU SHOULD NOT
EXPECT A FUND'S PAST RETURNS TO BE REPEATED IN THE FUTURE.
** ANNUALIZED RATE REFLECTING A WAIVER OF A PORTION OF THE FUND'S MANAGEMENT
FEE. THE WAIVER IS CONTRACTUAL AND IS GUARANTEED THROUGH AT LEAST JULY 1,
2000.
================================================================================
Q. HOW DID THE FUND PERFORM?
A. The International Equity Fund was seeded with $50 million and officially
"went live" on September 2, 1997. Since inception, its return, after all
expenses have been deducted, was -2.30 percent, outperforming by 37 basis points
(hundreths of a percent) the benchmark Morgan Stanley Europe, Australia, and Far
East (EAFE) Index, which returned -2.67 percent.
The fund consists of two parts. One aims to slightly exceed the fund's
benchmark; we'll call this the fund's core. The other -- the actively managed
part -- is international stocks we believe have strong managements and excellent
prospects for growth.
During 1998, the fund expects to invest a greater portion of its assets in the
actively managed part. As a result, the active segment will have more of an
influence on the fund's overall performance.
$10,000 OVER LIFE OF FUND
[CHART]
DATE INTERNATIONAL EQUITY FUND MORGAN STANLEY EAFE
---- ------------------------- -------------------
SEPT 2. $10,000 $10,000
SEPT. 30 10,570 10,560
OCT. 31 9,759 9,748
NOV. 30 9,682 9,649
DEC. 31 9,770 9,733
12
<PAGE>
"THE INTERNATIONAL EQUITY FUND STRIVES TO SEEK OUT AND INVEST IN NON-U.S.
GROWTH-ORIENTED COMPANIES THAT HAVE STRONG MANAGEMENTS WHICH FOCUS ON
SHAREHOLDER RETURNS AND ALLOCATE CAPITAL EFFECTIVELY. THE FUND WILL LET ITS
BOTTOM-UP STOCK-PICKING STYLE DETERMINE ITS COUNTRY ASSET ALLOCATION."
Chris Semenuk, DIRECTOR-GLOBAL PORTFOLIO MANAGEMENT, TEACHERS ADVISORS
Mr. Semenuk joined TIAA-CREF in 1993. He is also responsible for company
research and analysis for the CREF Global Equities Account.
[PHOTO OF CHRIS SEMENUK]
INTERNATIONAL EQUITY FUND
================================================================================
OBJECTIVE
- ------------------------------------------
seeks a favorable long-term return,
mainly through capital appreciation from a
broadly diversified portfolio that
consists primarily of foreign equity
investments.
- ------------------------------------------
Q. HOW DID THE VOLATILITY IN FOREIGN MARKETS AFFECT THE FUND?
A. There was a tremendous amount of volatility in foreign markets during the
latter part of the year, especially in the Asia-Pacific region. The Asian
currency crisis affected both developed markets and emerging markets. Since
inception, the fund has been underweighted in Japan and Southeast Asia, and
overweighted in Europe, compared with the benchmark.
Despite the volatility, we will remain very disciplined in our approach to
finding stocks for the actively managed part, looking for outstanding foreign
companies, whether Asian or European.
COMPOSITION OF THE FUND VS. ITS BENCHMARK
- --------------------------------------------------------------------------------
COUNTRY % OF FUND % OF BENCHMARK FUND COUNTRY WEIGHTS VS. BENCHMARK
(DIFFERENCE IN PERCENTAGE POINTS)
- --------------------------------------------------------------------------------
JAPAN 24.21 25.18
UNITED KINGDOM 22.33 21.60
GERMANY 10.14 9.82
FRANCE 8.24 7.98
SWITZERLAND 7.43 7.83
NETHERLANDS 5.62 5.68
ITALY 3.87 4.02
AUSTRALIA 2.64 2.75
HONG KONG 2.54 2.81
SPAIN 2.43 2.66
SWEDEN 2.36 2.60
NORWAY 2.22 0.53
BELGIUM 1.10 1.27
MALAYSIA 0.95 0.82
DENMARK 0.90 1.14
SINGAPORE 0.79 0.92
FINLAND 0.57 0.75
PORTUGAL 0.51 0.55
AUSTRIA 0.47 0.39
IRELAND 0.38 0.40
NEW ZEALAND 0.30 0.30
- --------------------------------------------------------------------------------
[CHART]
UNDERSTANDING INTERNATIONAL INVESTING RISK: Investing in foreign markets can
involve risks beyond domestic investing, such as changes in currency rates;
possible seizure or nationalization of assets; limited financial information
because of foreign regulations and accounting standards; lower liquidity and
higher volatility in some foreign markets; or the impact of political or social
events. It may be harder to use foreign laws and courts to enforce financial or
legal obligations.
1997 ANNUAL REPORT 13
<PAGE>
"THIS FUND CAN BE LOOKED AT AS A `ONE-STOP INVESTMENT SHOP.' IT OFFERS
SIGNIFICANT DIVERSIFICATION THROUGH A MIX OF EQUITY AND FIXED-INCOME MUTUAL
FUNDS, AND SEEKS TO PROVIDE A SUBSTANTIAL LEVEL OF CURRENT INCOME ALONG WITH
RELATIVELY LOW VOLATILITY."
James G. Fleischmann, SENIOR MANAGING DIRECTOR -- GLOBAL RESEARCH, TEACHERS
ADVISORS
Michael T. O'Kane, SENIOR MANAGING DIRECTOR -- SECURITIES, TEACHERS ADVISORS
Mr. Fleischmann joined TIAA-CREF in 1994 and is also responsible for global
equity research for the CREF accounts. Mr. O'Kane joined TIAA-CREF in 1986 and
also has supervisory responsibility over investments in CREF's Bond Market and
Money Market Accounts and the Securities part of the TIAA general account.
[PHOTO OF JAMES G. FLEISCHMANN AND MICHAEL T. O'KANE]
MANAGED ALLOCATION FUND
================================================================================
OBJECTIVE
- --------------------------------------
seeks favorable long-term returns that
reflect the broad investment performance
of the financial markets through capital
appreciation and investment income,
through investments in the other TIAA-
CREF mutual funds.
Q. HOW DOES THIS FUND DIFFER FROM THE OTHER TIAA-CREF FUNDS?
A. The Managed Allocation Fund does not buy stocks or bonds directly, but rather
buys shares in each of the other funds to achieve its goals. The normal
allocation of the fund will be 60 percent equities and 40 percent fixed income,
but the managers may shift that allocation up or down by up to fifteen
percentage points based on their perception of the relative value of each
sector.
The equity portion will consist of a changing mixture of the three equity funds
(International, Growth, and Growth & Income), while the fixed-income portion
will normally be invested predominantly in the Bond PLUS Fund with occasional
investments in the Money Market Fund.
We think this fund is well suited for those individuals who would like a
balanced portfolio but don't have the time or inclination to invest directly in
each of the other funds.
Q. HOW DID THE FUND PERFORM?
A. Before its inception on September 2, 1997, the fund was seeded with $50
million, which was allocated as follows:
International 12%
===================================
Growth 24
===================================
Growth & Income 24
===================================
Bond PLUS 36
===================================
Money Market 4
===================================
The relatively high allocation to money markets was due to liquidity concerns
caused by the "short-short" rule, discussed on page 2. At year-end, the fund had
reached $59 million in market value, allocated as shown on the pie chart to the
right. Total return since September 2 has been 5.39 percent, compared with 8.51
percent for the S&P 500 and 4.46 percent for the Lehman Brothers Aggregate Bond
Index. Our composite benchmark returned 6.89 percent.
Q. HOW IS THE FUND MANAGED?
A. The two managers meet periodically to discuss the relative merits of the
primary allocation between equity and fixed income, including whether the 60/40
percentages should change. As a general rule, we do not expect frequent or large
changes to this allocation, but when either sector appears over- or
under-valued, we will change the percentage.
Jim Fleischmann is responsible for allocating the equity percentages among the
three equity funds.
Mike O'Kane is responsible for allocating the fixed-income percentages among the
two fixed-income funds.
14
<PAGE>
MANAGED ALLOCATION FUND
PERFORMANCE AT A GLANCE AS OF 12/31/97
TOTAL RETURN* EXPENSE NET ASSETS
SINCE 9/2/97 INCEPTION RATIO IN MILLIONS
================================================================================
MANAGED ALLOCATION FUND 5.39% 0%** $59.1
================================================================================
COMPOSITE BENCHMARK 6.89
================================================================================
LIPPER BALANCED FUND INDEX 5.50
================================================================================
* PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE FUND'S BENCHMARK IS A
COMPOSITE. IT EQUALS 60 PERCENT OF THE PERFORMANCE OF THE S&P 500 INDEX AND
40 PERCENT OF THE PERFORMANCE OF THE LEHMAN BROTHERS AGGREGATE BOND INDEX.
**THE MANAGED ALLOCATION FUND OPERATES AT A ZERO EXPENSE RATIO BECAUSE THE FUND
ADVISOR DOESN'T RECEIVE A MANAGEMENT FEE FOR ITS SERVICES TO THE FUND AND HAS
AGREED TO BE RESPONSIBLE FOR PROVIDING THE SERVICES REASONABLY NECESSARY FOR
THE ORDINARY OPERATIONS OF THE FUND. SHAREHOLDERS INDIRECTLY BEAR THEIR PRO
RATA SHARE OF THE FEES AND EXPENSES OF THE FUNDS IN WHICH THE MANAGED
ALLOCATION FUND INVESTS.
================================================================================
$10,000 OVER LIFE OF FUND
[CHART]
DATE MANAGED ALLOCATION FUND COMPOSITE S&P/LEHMAN
- ---- ----------------------- --------------------
SEPT. 3 $10,000 $10,000
SEPT. 30 10,375 10,388
OCT. 31 10,178 10,235
NOV. 30 10,398 10,537
DEC. 31 10,539 10,689
Composite Benchmark:
60% S&P 500 INDEX
40% LEHMAN BROTHERS
AGGREGATE BOND INDEX
ASSET ALLOCATION AS OF 12/31/97
===============================
[PIE CHART]
===============================
o 36% Bond PLUS Fund
o 25% Growth Equity Fund
o 25% Growth & Income Fund
o 10% International Equity Fund
o 4% Money Market Fund
Q. HOW DID THE MANAGED ALLOCATION PORTFOLIO CHANGE IN 1997?
A. During the fund's four months of operations in 1997, the managers made two
minor allocation shifts.
The first occurred in November, when equities were reduced slightly and bonds
were increased proportionately. In addition, the international component of the
equity portion was reduced about 15 percent. This action was taken as
uncertainties regarding Southeast Asia's economies increased and began to
threaten earnings visibility for many companies. Also, rapidly falling
commodities prices increased the likelihood of lower interest rates and
inflation, thereby increasing the prospects for bonds.
By December, markets had adjusted to some of these events, and the equity/debt
allocations were brought back to their original positions. However, because
there was still significant uncertainty surrounding the Southeast Asian
economies, the proportion of international investments remained at a lower
level.
1997 ANNUAL REPORT 15
<PAGE>
[TIAA
CREF]
- --------------------------------------------------------------------------------
REPORT OF MANAGEMENT RESPONSIBILITY
To the Shareholders of
TIAA-CREF Mutual Funds:
The accompanying financial statements of the Money Market, Bond PLUS, Growth &
Income, Growth Equity, International Equity and Managed Allocation Funds of
TIAA-CREF Mutual Funds ("the Funds") are the responsibility of management. They
have been prepared in accordance with generally accepted accounting principles
and have been presented fairly and objectively in accordance with such
principles.
The Funds have established and maintain a strong system of internal controls
designed to provide reasonable assurance that assets are properly safeguarded
and transactions are properly executed in accordance with management's
authorization, and to carry out the ongoing responsibilities of management for
reliable financial statements. In addition, the Funds' internal audit personnel
provide a continuing review of the internal controls and operations of the
Funds, and the internal Auditor regularly reports to the Audit Committee of the
Funds' Board of Trustees.
The accompanying financial statements have been audited by the independent
auditing firm of Ernst & Young LLP. The independent auditors' report, which
appears on the following page, expresses an independent opinion on the fairness
of presentation of these financial statements.
The Audit Committee of the Funds' Board of Trustees, consisting of trustees who
are not officers of the TIAA-CREF Mutual Funds, meets regularly with management,
representatives of Ernst & Young LLP and internal auditing personnel to review
matters relating to financial reporting, internal controls and auditing. In
addition to the annual audit of the financial statements of all the Funds, the
Securities and Exchange Commission regularly examines the financial statements
of the Funds as part of their periodic corporate examinations.
/s/ THOMAS G. WALSH
-----------------------------------
President
/s/ RICHARD L. GIBBS
-----------------------------------
Executive Vice President and
Principal Accounting Officer
- --------------------------------------------------------------------------------
16 1997 ANNUAL REPORT
<PAGE>
ERNST & YOUNG LLP o 787 Seventh Avenue o Phone 212-773-3000
New York, New York 10019
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees
TIAA-CREF Mutual Funds:
We have audited the accompanying statements of assets and liabilities, including
the statements of investments, of TIAA-CREF Mutual Funds (comprising,
respectively, the Money Market Fund, the Bond PLUS Fund, the Growth & Income
Fund, the Growth Equity Fund, the International Equity Fund, and the Managed
Allocation Fund) as of December 31, 1997, and the related statements of
operations and changes in net assets and financial highlights for the period
July 17, 1997, (commencement of operations) to December 31, 1997. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1997 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Money Market Fund, the Bond PLUS Fund, the Growth & Income Fund, the Growth
Equity Fund, the International Equity Fund, and the Managed Allocation Fund of
TIAA-CREF Mutual Funds as of December 31, 1997, the results of their operations,
changes in their net assets and the financial highlights for the period July 17,
1997 (commencement of operations) to December 31, 1997, in conformity with
generally accepted accounting principles.
/s/ ERNST & YOUNG LLP
-------------------------
ERNST & YOUNG LLP
February 6, 1998
- --------------------------------------------------------------------------------
1997 ANNUAL REPORT 17
<PAGE>
<TABLE>
<CAPTION>
TIAA-CREF MUTUAL FUNDS STATEMENTS OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------------------
DECEMBER 31, 1997
MONEY BOND GROWTH & GROWTH INTERNATIONAL MANAGED
MARKET PLUS INCOME EQUITY EQUITY ALLOCATION
FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C> <C> <C> <C> <C> <C>
Portfolio investments, at cost $64,319,106 $63,249,232 $59,702,181 $63,286,773 $52,782,775 $58,819,255
Net unrealized appreciation
(depreciation) of portfolio investments -- 427,254 1,800,093 518,570 (5,370,045) 20,427
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio investments, at value 64,319,106 63,676,486 61,502,274 63,805,343 47,412,730 58,839,682
Cash 811,666 8,627 776,786 1,049,609 1,544,668 402,040
Receivable from securities transactions -- 6,276,001 -- 17,500 -- --
Receivable for Fund shares sold 450,515 380,460 165,826 381,420 40,119 138,667
Dividends receivable -- -- 82,749 67,481 54,771 --
Interest receivable 218,746 600,736 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 65,800,033 70,942,310 62,527,635 65,321,353 49,052,288 59,380,389
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Accrued management fee 14,631 14,428 21,414 22,929 19,519 --
Payable for securities transactions 2,131,478 12,512,267 682,698 798,042 1,267,412 285,991
Payable for Fund shares redeemed 46,376 6,160 -- 9,392 1,018 2,259
Other payables and accrued expenses 2,293 6,649 1,616 3,550 6,514 5,016
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 2,194,778 12,539,504 705,728 833,913 1,294,463 293,266
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $63,605,255 $58,402,806 $61,821,907 $64,487,440 $47,757,825 $59,087,123
====================================================================================================================================
NET ASSETS CONSIST OF:
Paid in capital $63,605,255 $57,981,622 $60,062,182 $63,889,676 $53,237,621 $59,066,696
Accumulated undistributed (overdistributed)
net investment income -- -- (604) -- (36,509) --
Accumulated undistributed (overdistributed)
net realized gain (loss) on total investments -- (6,070) (39,764) 79,194 (80,154) --
Accumulated net unrealized appreciation
(depreciation) on total investments -- 427,254 1,800,093 518,570 (5,363,133) 20,427
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $63,605,255 $58,402,806 $61,821,907 $64,487,440 $47,757,825 $59,087,123
====================================================================================================================================
Outstanding shares of beneficial interest,
unlimited shares authorized
($.001 par value) 63,605,255 5,788,193 5,988,332 6,374,505 5,356,336 5,904,827
NET ASSET VALUE PER SHARE $1.00 $10.09 $10.32 $10.12 $8.92 $10.01
====================================================================================================================================
THESE FUNDS COMMENCED OPERATIONS ON JULY 17, 1997.
- ------------------------------------------------------------------------------------------------------------------------------------
18 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TIAA-CREF MUTUAL FUNDS STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD JULY 17, 1997 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1997
MONEY BOND GROWTH & GROWTH INTERNATIONAL MANAGED
MARKET PLUS INCOME EQUITY EQUITY ALLOCATION
FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $1,379,291 $1,483,067 $ 99,987 $ 101,374 $ 99,095 $ 32,997
Dividends -- -- 401,624 363,492 310,127 1,237,527
Foreign taxes withheld -- -- (2,132) (1,863) (35,867) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total income 1,379,291 1,483,067 499,479 463,003 373,355 1,270,524
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fee 191,153 190,656 222,604 229,041 215,768 --
Trustee fees and expenses 290 286 288 289 262 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses before waiver 191,443 190,942 222,892 229,330 216,030 --
Less expenses waived by the advisor (120,983) (119,160) (119,679) (120,548) (108,974) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 70,460 71,782 103,213 108,782 107,056 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income 1,308,831 1,411,285 396,266 354,221 266,299 1,270,524
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON TOTAL INVESTMENTS
Realized gain (loss) on:
Portfolio investments -- 626,451 (37,600) 1,065,707 (76,875) --
Foreign currency transactions -- -- (279) 622 46,215 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on total investments -- 626,451 (37,879) 1,066,329 (30,660) --
- ------------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) on:
Portfolio investments -- 427,254 1,800,093 518,570 (5,370,045) 20,427
Translation of assets (other than portfolio
investments) and liabilities in foreign
currencies -- -- -- -- 6,912 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) on total investments -- 427,254 1,800,093 518,570 (5,363,133) 20,427
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on total investments -- 1,053,705 1,762,214 1,584,899 (5,393,793) 20,427
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $1,308,831 $2,464,990 $2,158,480 $1,939,120 $(5,127,494) $1,290,951
====================================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 19
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TIAA-CREF MUTUAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD JULY 17, 1997 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1997
MONEY BOND GROWTH & GROWTH INTERNATIONAL MANAGED
MARKET PLUS INCOME EQUITY EQUITY ALLOCATION
FUND FUND FUND FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income $ 1,308,831 $ 1,411,285 $ 396,266 $ 354,221 $ 266,299 $ 1,270,524
Net realized gain (loss)
on total investments -- 626,451 (37,879) 1,066,329 (30,660) --
Net change in unrealized appreciation
(depreciation) on total investments -- 427,254 1,800,093 518,570 (5,363,133) 20,427
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) from operations 1,308,831 2,464,990 2,158,480 1,939,120 (5,127,494) 1,290,951
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (1,308,831) (1,411,285) (396,266) (354,221) (266,299) (1,270,524)
In excess of net investment income -- -- (2,489) (623) (97,712) --
From net realized gains on
total investments -- (632,521) -- (986,512) -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions (1,308,831) (2,043,806) (398,755) (1,341,356) (364,011) (1,270,524)
- ----------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Seed money subscriptions 48,000,000 32,000,000 38,000,000 38,000,000 44,000,000 50,000,000
Subscriptions 15,370,172 23,894,752 21,780,739 24,185,187 8,920,825 7,498,848
Reinvestment of distributions 1,306,414 2,036,164 397,301 1,338,112 364,011 1,265,457
Exchanges among the Funds (701,535) 151,528 (113,263) 383,490 (23,111) 302,891
Redemptions (369,796) (100,822) (2,595) (17,113) (12,395) (500)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase from share
transactions 63,605,255 57,981,622 60,062,182 63,889,676 53,249,330 59,066,696
- -----------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 63,605,255 58,402,806 61,821,907 64,487,440 47,757,825 59,087,123
NET ASSETS
Beginning of period -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
End of period $63,605,255 $58,402,806 $61,821,907 $64,487,440 $47,757,825 $59,087,123
=============================================================================================================================
CHANGE IN FUND SHARES:
Shares sold 63,370,172 5,581,036 5,960,003 6,205,429 5,320,567 5,747,385
Shares issued in reinvestment
of distributions 1,306,414 202,236 39,864 133,171 39,871 127,521
Shares exchanged among the Funds (701,535) 14,888 (11,283) 37,592 (2,677) 29,971
Shares redeemed (369,796) (9,967) (252) (1,687) (1,425) (50)
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in shares
outstanding 63,605,255 5,788,193 5,988,332 6,374,505 5,356,336 5,904,827
=============================================================================================================================
- -----------------------------------------------------------------------------------------------------------------------------
20 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TIAA-CREF MUTUAL FUNDS FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------
FOR THE PERIOD JULY 17, 1997 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1997
MONEY BOND GROWTH & GROWTH INTERNATIONAL MANAGED
MARKET PLUS INCOME EQUITY EQUITY ALLOCATION
FUND FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER SHARE DATA
Net asset value, beginning of period $1.00 $10.00 $10.00 $10.00 $10.00 $10.00
- ---------------------------------------------------------------------------------------------------------------------------
Gain (loss) from investment operations:
Net investment income 0.02 0.27 0.07 0.06 0.07 0.23
Net realized and unrealized gains (losses)
on investments 0.00 0.20 0.32 0.28 (1.07) 0.01
- ---------------------------------------------------------------------------------------------------------------------------
Total gain (loss) from investment
operations 0.02 0.47 0.39 0.34 (1.00) 0.24
- ----------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income (0.02) (0.27) (0.07) (0.06) (0.07) (0.23)
In excess of net investment income -- -- -- -- (0.01) --
Net realized gains -- (0.11) -- (0.16) -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions (0.02) (0.38) (0.07) (0.22) (0.08) (0.23)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $10.09 $10.32 $10.12 $ 8.92 $10.01
===========================================================================================================================
TOTAL RETURN 2.51% 4.79% 3.96% 3.44% (10.09)% 2.44%
RATIOS AND SUPPLEMENTAL DATA
Net assets at end of period (in thousands) $63,605 $58,403 $61,822 $64,487 $47,758 $59,087
Ratio of expenses to average net assets
before expense waiver 0.36% 0.37% 0.43% 0.44% 0.46% 0.00%
Ratio of expenses to average net assets
after expense waiver 0.13% 0.14% 0.20% 0.21% 0.23% 0.00%
Ratio of net investment income to average
net assets 2.49% 2.72% 0.76% 0.68% 0.56% 2.46%
Portfolio turnover rate n/a 143.61% 1.46% 29.44% 4.56% 0.00%
Average brokerage commissions paid per share n/a n/a $0.0509 $0.0210 $0.0522 n/a
The percentages shown above are not annualized.
===========================================================================================================================
- ---------------------------------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 21
</TABLE>
<PAGE>
TIAA-CREF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
NOTE 1. ORGANIZATION
TIAA-CREF Mutual Funds ("the Funds") is a Delaware business trust that was
organized on January 13, 1997 and is registered with the Securities and Exchange
Commission ("Commission") under the Investment Company Act of 1940 as an
open-end management investment company. The Funds consist of six series (each
referred to as a "Fund"), each of which commenced operations with an investment
by Teachers Insurance and Annuity Association of America ("TIAA") on July 17,
1997. TIAA invested $48,000,000 in the Money Market Fund; $32,000,000 in the
Bond PLUS Fund; $38,000,000 in the Growth & Income Fund; $38,000,000 in the
Growth Equity Fund; $44,000,000 in the International Equity Fund; and
$50,000,000 in the Managed Allocation Fund. Shortly after being seeded, the
Managed Allocation Fund invested its seed money and its earnings to date in the
other Funds ($2,001,160 in the Money Market Fund; $18,010,432 in the Bond PLUS
Fund; $12,006,957 in the Growth & Income Fund; $12,006,957 in the Growth Equity
Fund; and $6,003,473 in the International Equity Fund). On September 2, 1997,
the Funds began to publicly offer their shares, without a sales load, through
their distributor, Teachers Personal Investors Services, Inc. ("TPIS"), a
wholly-owned indirect subsidiary of TIAA, which is registered with the
Commission as a broker-dealer and is a member of the National Association of
Securities Dealers, Inc. Teachers Advisors, Inc. ("Advisors"), a wholly-owned
indirect subsidiary of TIAA, which is registered with the Commission as an
investment adviser, provides investment management services for the Funds and is
also responsible for providing, or obtaining at its own expense, the services
reasonably necessary for the ordinary operation of the Funds.
At December 31, 1997, TIAA owned 49,202,433 shares of the Money Market Fund with
a value of $49,202,433; 3,323,223 shares of the Bond PLUS Fund with a value of
$33,531,320; 3,828,129 shares of the Growth & Income Fund with a value of
$39,506,291; 3,884,176 shares of the Growth Equity Fund with a value of
$39,307,861; 4,435,084 shares of the International Equity Fund with a value of
$39,560,949; and 5,116,691 shares of the Managed Allocation Fund with a value of
$51,218,077.
At December 31, 1997, the Managed Allocation Fund owned 2,203,530 shares in the
Money Market Fund, which amounted to 3.5% of the total shares outstanding;
2,079,260 shares of the Bond PLUS Fund, which amounted to 35.9% of the total
shares outstanding; 1,439,316 shares of the Growth & Income Fund, which amounted
to 24.0% of the total shares outstanding; 1,473,829 shares of the Growth Equity
Fund, which amounted to 23.1% of the total shares outstanding; and 660,036
shares of the International Equity Fund which amounted to 12.3% of the total
shares outstanding.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements may require management to make estimates
and assumptions that affect the reported amounts of assets, liabilities, income,
expenses and related disclosures. Actual results may differ from those
estimates. The following is a summary of the significant accounting policies
followed by the Funds, which are in conformity with generally accepted
accounting principles.
VALUATION OF INVESTMENTS: Securities listed or traded on a national market or
exchange are valued based on their sale price on such market or exchange at the
close of business on the date of valuation, or at the mean of the closing bid
and asked prices if no sale is reported, except for bonds which are valued at
the most recent bid price or the equivalent quoted yield of such bonds. Foreign
investments are valued at the closing values of such securities as of the date
of valuation under the generally accepted valuation method in the country where
traded, converted to U.S. dollars at the prevailing rates of exchange on the
date of valuation. Values for money market instruments (other than those in the
Money Market Fund) with maturities of one year or less are obtained from either
one or more of the major market makers or derived from a pricing matrix that has
various types of money market instruments along one axis and maturities, ranging
from overnight to one year, along the other. This information is derived from
one or more financial information services. For money market instruments with
maturities longer than one year, these values are derived utilizing an
independent pricing service when such prices are believed to reflect the fair
value of these securities. For the Money Market Fund, securities are valued
using the amortized cost method. The amortized cost method initially values
securities at original cost and assumes a constant amortization to maturity of
any discount or premium. Portfolio securities for which market quotations are
not readily available (including restricted securities) are valued at fair
value, as determined in good faith under the direction of the Board of Trustees.
- --------------------------------------------------------------------------------
22 1997 ANNUAL REPORT
<PAGE>
TIAA-CREF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
ACCOUNTING FOR INVESTMENTS: Securities transactions are accounted for as of the
date the securities are purchased or sold (trade date). Realized gains and
losses are based upon the specific identification method for both financial
statement and federal income tax purposes. Interest income is recognized on the
accrual basis, and discounts and premiums on securities purchased are amortized
using the effective yield method. Dividend income is recorded on the ex-dividend
date, except for certain foreign dividends, which are recorded as the Funds are
informed of the ex-dividend date.
FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION: Foreign investments, bank
deposits and forward foreign currency contracts are valued in U.S. dollars,
based on the exchange rate each business day. Investments traded in foreign
currencies are translated at exchange rates prevailing on the respective dates
traded. Income is translated at approximate rates prevailing when earned. Asset
and liability accounts that are denominated in a foreign currency are adjusted
to reflect the exchange rate each business day. The cumulative impact of changes
in foreign exchange rates on portfolio investments sold during the period is
reflected in the net realized gain (loss) on portfolio investments. The
cumulative impact of changes in foreign exchange rates on portfolio investments
held at the end of each business day is reflected in the net change in
unrealized appreciation (depreciation) on portfolio investments. Currency gains
and losses arising from the settlement of forward foreign currency contracts,
changes in exchange rates between the trade and settlement dates of portfolio
investment transactions, and changes in exchange rates between the accrual and
receipt dates for dividend and interest income are recorded as net realized
gains (losses) on foreign currency transactions. For assets other than portfolio
investments and liabilities, changes in foreign exchange rates are reflected in
the net change in unrealized appreciation (depreciation) on translation of
assets (other than portfolio investments) and liabilities in foreign currencies.
FORWARD FOREIGN CURRENCY CONTRACTS: The Funds may enter into forward foreign
currency contracts to purchase or sell foreign currency to accommodate foreign
investment transactions. Forward foreign currency contracts are
"marked-to-market" at the end of each day's trading. Daily changes in the value
of such contracts are reflected in the net change in unrealized appreciation
(depreciation) on translation of assets and liabilities in foreign currencies.
When the contract is closed, payment is received or made and a realized gain or
loss on foreign currency transactions is recognized, equal to the difference
between the cost of the closing transaction and the basis in the contract. A
Fund may also enter into a forward foreign currency contract to offset an
existing contract. Forward foreign currency contracts are entered into directly
with a counterparty and a Fund is exposed to the risk of default of such
counterparty. The maximum potential loss from such risk is the aggregate face
value in U.S. dollars at the time the contract is opened. There is no daily
margin requirement for such contracts.
SECURITIES PURCHASED ON A WHEN-ISSUED OR DELAYED DELIVERY BASIS: The Funds may
purchase securities on a when-issued or delayed delivery basis. In addition to
the normal market risks, this exposes the Funds to the risk that the transaction
may not be consummated. The price and interest rate of such securities are fixed
at trade date. For when-issued purchases, a Fund does not earn interest on such
security until settlement date.
RESTRICTED SECURITIES: Restricted securities held by the Funds, if any, may not
be sold except in exempt transactions or in a public offering registered under
the Securities Act of 1933. The risk of investing in such securities is
generally greater than the risk of investing in securities which are widely held
and publicly traded.
DISTRIBUTIONS TO SHAREHOLDERS: Dividends from net investment income, if any, for
the Bond PLUS Fund are declared and paid monthly; for the Growth & Income and
Managed Allocation Funds are declared and paid quarterly; for the Growth Equity
and International Equity Funds are declared and paid annually; and for the Money
Market Fund are declared daily and paid monthly. Distributions from realized
gains, if any, are declared and paid at least annually for each of the Funds.
Undistributed net investment income and accumulated undistributed net realized
gain (loss) on total investments may include temporary book and tax differences
which will reverse in a subsequent period. Any permanent book and tax basis
differences relating to shareholder distributions will result in
reclassifications to paid in capital.
INCOME TAXES: As qualified regulated investment companies under Subchapter M of
the Internal Revenue Code, the Funds will not be subject to income taxes to the
extent that they distribute substantially all taxable income each year.
- --------------------------------------------------------------------------------
1997 ANNUAL REPORT 23
<PAGE>
TIAA-CREF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
Any net capital losses incurred after October 31 are deemed to arise on the
first day of a Fund's next tax year. The Growth & Income and International
Equity Funds incurred and elected to defer net capital losses during such period
in fiscal 1997 of $25,470 and $103,106, respectively.
NOTE 3. MANAGEMENT AGREEMENT
Under the terms of an Investment Management Agreement, each Fund pays a monthly
fee for the management and administration of the Funds, based on the average
daily net assets of each Fund. Advisors has currently waived its right to
receive a portion of its fee from each Fund until July 1, 2000. As a result,
during such waiver period, Advisors will receive the following percentages of
each Fund's average daily net assets:
MANAGEMENT MANAGEMENT FEE
FEE WAIVER AFTER WAIVER
-------------- -------- --------------
Money Market Fund 0.79% 0.50% 0.29%
Bond PLUS Fund 0.80% 0.50% 0.30%
Growth & Income Fund 0.93% 0.50% 0.43%
Growth Equity Fund 0.95% 0.50% 0.45%
International Equity Fund 0.99% 0.50% 0.49%
Managed Allocation Fund 0.00% 0.00% 0.00%
Advisors will not receive a management fee for its services to the Managed
Allocation Fund. However, shareholders in the Managed Allocation Fund will
indirectly bear their pro rata share of the fees and expenses incurred by the
Funds in which the Managed Allocation Fund invests.
NOTE 4. INVESTMENTS
At December 31, 1997, net unrealized appreciation (depreciation) of portfolio
investments, consisting of gross unrealized appreciation and gross unrealized
depreciation, was as follows:
<TABLE>
<CAPTION>
GROSS UNREALIZED NET UNREALIZED
APPRECIATION (DEPRECIATION) APPRECIATION (DEPRECIATION)
------------ ------------- ---------------------------
<S> <C> <C> <C>
Bond PLUS Fund $ 427,254 $ -- $ 427,254
Growth & Income Fund 4,352,355 (2,552,262) 1,800,093
Growth Equity Fund 3,534,182 (3,015,612) 518,570
International Equity Fund 2,224,773 (7,594,818) (5,370,045)
Managed Allocation Fund 699,045 (678,618) 20,427
</TABLE>
The above amounts are not materially different from such amounts on a federal
income tax basis.
Purchases and sales of portfolio securities, other than short-term money market
instruments, for the Funds other than the Money Market Fund, for the period from
July 17, 1997 (commencement of operations) to December 31, 1997, were as
follows:
<TABLE>
<CAPTION>
NON- NON-
GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT
PURCHASES PURCHASES SALES SALES
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Money Market Fund $192,982,894 $ 26,957,064 $ 98,216 $ --
Bond PLUS Fund 28,033,965 102,002,404 12,593,485 61,582,271
Growth & Income Fund 60,021,122 487,035 768,377 --
Growth Equity Fund 77,249,338 669,952 15,698,224 --
International Equity Fund 54,994,551 -- 2,141,390 --
Managed Allocation Fund 58,819,255 -- -- --
</TABLE>
At December 31, 1997, the International Equity Fund had forward foreign currency
contracts outstanding with a notional amount of $918,000.
- --------------------------------------------------------------------------------
24 1997 ANNUAL REPORT
<PAGE>
TIAA-CREF MUTUAL FUNDS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997
NOTE 5. TRUSTEE FEES
Each Fund, other than the Managed Allocation Fund, pays the Trustees who are not
also officers or affiliated persons of the Funds, certain remuneration for their
services, plus travel and other expenses incurred in attending Board meetings.
Trustees who are also officers or affiliated persons receive no remuneration for
their services as Trustees.
NOTE 6. LINE OF CREDIT
The Growth & Income, Growth Equity, International Equity, and Managed Allocation
Funds share in a $25 million unsecured revolving credit facility for temporary
or emergency purposes, including, without limitation, the funding of shareholder
redemptions that otherwise might require the untimely disposition of securities.
An annual commitment fee for the line of credit is borne by Advisors. Interest
associated with any borrowing under the facility will be charged to the
participating Funds at rates which are based on the Federal Funds Rate in effect
during the time of the borrowing. For the period ended December 31, 1997, there
were no borrowings under the line of credit.
- --------------------------------------------------------------------------------
1997 ANNUAL REPORT 25
<PAGE>
TIAA-CREF MUTUAL FUNDS STATEMENT OF INVESTMENTS MONEY MARKET FUND
DECEMBER 31, 1997 SUMMARY BY INDUSTRY
- ----------------------------------------------------------
VALUE %
- ----------------------------------------------------------
SHORT TERM INVESTMENTS
BANK NOTES $ 4,503,915 7.08%
BANKERS ACCEPTANCES 5,443,619 8.56
CERTIFICATES OF DEPOSIT 4,998,975 7.86
COMMERCIAL PAPER 40,668,226 63.94
VARIABLE RATE NOTES 8,704,371 13.68
----------- -----
TOTAL SHORT TERM INVESTMENTS
(COST $64,319,106) 64,319,106 101.12
----------- -----
TOTAL PORTFOLIO
(COST $64,319,106) 64,319,106 101.12
OTHER ASSETS & LIABILITIES, NET (713,851) (1.12)
----------- -----
NET ASSETS $63,605,255 100.00%
=========== ======
TIAA-CREF MUTUAL FUNDS STATEMENT OF INVESTMENTS MONEY MARKET FUND
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
- --------------------------------------------------------------------------------
SHORT TERM INVESTMENTS -- 101.12%
BANK NOTES -- 7.08%
HUNTINGTON NATIONAL BANK
$2,500,000 5.800%, 09/22/98 $ 2,497,308
NATIONAL BANK OF DETROIT
2,000,000 6.850%, 05/11/98 2,006,607
-----------
4,503,915
-----------
BANKERS ACCEPTANCES -- 8.56%
ASSOCIATES CORP OF
NORTH AMERICA
2,100,000 7.250%, 05/15/98 2,110,332
CITIBANK, N.A.
149,186 6.080%, 01/02/98 149,160
326,930 5.640%, 01/15/98 326,212
193,032 5.980%, 01/16/98 192,551
139,500 5.910%, 02/09/98 138,606
105,572 5.730%, 02/13/98 104,849
179,899 5.800%, 02/26/98 178,275
96,521 5.820%, 02/27/98 95,631
151,850 5.910%, 03/10/98 150,154
RABOBANK
2,000,000 5.530%, 01/08/98 1,997,849
-----------
5,443,619
-----------
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
- --------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT -- 7.86%
CANADIAN IMPERIAL BANK
OF COMMERCE
$1,000,000 5.940%, 10/21/98 $ 999,685
MORGAN GUARANTY TRUST CO
2,000,000 5.930%, 08/31/98 1,999,798
SWISS BANK CORP
2,000,000 5.880%, 11/20/98 1,999,492
-----------
4,998,975
-----------
COMMERCIAL PAPER -- 63.94%
~ ALLIED SIGNAL, INC
2,500,000 6.050%, 01/07/98 2,497,479
B.B.V. FINANCE (DELAWARE), INC
2,500,000 6.500%, 01/09/98 2,496,388
BANKERS TRUST NEW YORK CORP
2,400,000 5.560%, 01/12/98 2,395,922
BELL ATLANTIC FINANCIAL
SERVICES, INC
2,500,000 5.850%, 01/28/98 2,489,031
~ BETA FINANCE, INC
300,000 5.550%, 03/17/98 296,531
CATERPILLAR FINANCIAL
SERVICES CORP
2,000,000 5.520%, 01/13/98 1,996,320
- --------------------------------------------------------------------------------
1997 ANNUAL REPORT 26 SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS MONEY MARKET FUND
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
- --------------------------------------------------------------------------------
COMMERCIAL PAPER -- (Continued)
~ CIESCO LP
$2,350,000 5.700%, 02/24/98 $ 2,329,907
COMMERCIAL CREDIT CO
2,176,000 5.600%, 01/05/98 2,174,646
~ CORPORATE ASSET FUNDING
CORP, INC
797,000 5.750%, 02/26/98 789,871
~ DELAWARE FUNDING CORP
1,425,000 5.530%, 01/06/98 1,423,905
1,000,000 5.620%, 01/15/98 997,814
~ DILLARD INVESTMENT CO, INC
2,500,000 6.000%, 01/06/98 2,497,935
DUPONT (E.I.) DE NEMOURS & CO
1,468,000 5.700%, 02/06/98 1,459,632
~ ENTERPRISE FUNDING
CORP
365,000 5.740%, 01/30/98 363,312
FLORIDA POWER & LIGHT CO
2,500,000 5.850%, 01/29/98 2,488,625
GENERAL ELECTRIC CAPITAL CORP
386,000 5.570%, 04/24/98 379,251
MORGAN (J.P.) & CO
1,500,000 5.700%, 02/10/98 1,490,500
952,000 5.600%, 02/10/98 946,076
MORGAN STANLEY DEAN WITTER
1,808,000 5.830%, 01/23/98 1,801,558
NATIONAL RURAL UTILITIES
CO-OP FINANCE
443,000 5.540%, 01/27/98 441,227
1,200,000 5.750%, 02/17/98 1,190,991
815,000 5.700%, 03/20/98 804,934
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
- --------------------------------------------------------------------------------
~ PARK AVENUE RECEIVABLES CORP
$ 861,000 5.800%, 02/12/98 $ 855,173
~ PENNEY (J.C.) FUNDING CORP
2,483,000 5.720%, 02/11/98 2,466,824
PROCTOR & GAMBLE CO
1,101,000 5.800%, 02/05/98 1,094,791
SARA LEE CORP
2,500,000 6.000%, 01/02/98 2,499,583
------------
40,668,226
------------
VARIABLE RATE NOTES -- 13.68%
CORESTATES BANK NA/
PHILADELPHIA NATIONAL BANK
2,400,000 5.930%, 05/12/98 2,400,000
FORD MOTOR CREDIT CO
2,000,000 6.337%, 06/02/98 2,003,576
PNC BANK, NA
2,300,000 6.020%, 09/25/98 2,301,326
SOCIETE GENERALE
2,000,000 5.925%, 09/08/98 1,999,469
------------
8,704,371
------------
TOTAL SHORT TERM INVESTMENTS
(COST $64,319,106) 64,319,106
------------
TOTAL PORTFOLIO
(COST $64,319,106) $64,319,106
============
- ----------
~ COMMERCIAL PAPER ISSUED UNDER THE PRIVATE PLACEMENT EXEMPTION UNDER SECTION
4(2) OF THE SECURITIES ACT OF 1933, AS AMENDED.
THE COST OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE
SAME AS THE AMOUNT DISCLOSED ABOVE.
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS. 1997 ANNUAL REPORT 27
<PAGE>
TIAA-CREF MUTUAL FUNDS STATEMENT OF INVESTMENTS BOND PLUS FUND
DECEMBER 31, 1997 SUMMARY BY INDUSTRY
- --------------------------------------------------------------------------------
VALUE %
- --------------------------------------------------------------------------------
BONDS
CORPORATE BONDS
AUTOMOTIVE & RELATED $ 3,041,869 5.21%
FINANCIAL -- MISCELLANEOUS 2,036,760 3.49
OFFICE EQUIPMENT 2,063,120 3.53
OTHER -- MORTGAGE BACKED
SECURITIES 1,007,500 1.73
PROPERTY -- REAL ESTATE 2,517,850 4.31
PUBLISHING -- OTHER 2,061,480 3.53
------------ -------
TOTAL CORPORATE BONDS
(COST $12,592,074) 12,728,579 21.80
------------ -------
GOVERNMENT BONDS
AGENCY SECURITIES 3,004,680 5.14
FOREIGN GOVERNMENT BONDS 2,006,920 3.44
MORTGAGE BACKED SECURITIES 14,969,638 25.63
U.S. TREASURY SECURITIES 23,874,628 40.88
------------ -------
- --------------------------------------------------------------------------------
VALUE %
- --------------------------------------------------------------------------------
TOTAL GOVERNMENT BONDS
(COST $43,565,117) $ 43,855,866 75.09%
------------ -------
TOTAL BONDS
(COST $56,157,191) 56,584,445 96.89
------------ -------
SHORT TERM INVESTMENTS
COMMERCIAL PAPER 7,092,041 12.14
------------ -------
TOTAL SHORT TERM INVESTMENTS
(COST $7,092,041) 7,092,041 12.14
------------ -------
TOTAL PORTFOLIO
(COST $63,249,232) 63,676,486 109.03
OTHER ASSETS & LIABILITIES, NET (5,273,680) (9.03)
------------ -------
NET ASSETS $ 58,402,806 100.00%
============ =======
TIAA-CREF MUTUAL FUNDS STATEMENT OF INVESTMENTS BOND PLUS FUND
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
PRINCIPAL RATINGS+ VALUE
- --------------------------------------------------------------------------------
BONDS -- 96.89%
CORPORATE BONDS -- 21.80%
AUTOMOTIVE & RELATED -- 5.21%
^ AMERCO
$1,000,000 6.650%, 10/15/99 BA1 $ 1,001,309
GENERAL MOTORS CORP
2,000,000 7.375%, 09/09/99 A3 2,040,560
-----------
3,041,869
-----------
FINANCIAL -- MISCELLANEOUS -- 3.49%
HOMESIDE LENDING, INC
2,000,000 6.875%, 06/30/02 BAA2 2,036,760
-----------
OFFICE EQUIPMENT -- 3.53%
INTERNATIONAL BUSINESS
MACHINES CORP
2,000,000 7.000%, 10/30/25 A1 2,063,120
-----------
OTHER -- MORTGAGE BACKED SECURITIES -- 1.73%
GMAC COMMERCIAL MORTGAGE
SECURITIES SERIES 1997-C3
(CLASS A3)
1,000,000 6.566%, 11/15/07 AAA 1,007,500
-----------
- --------------------------------------------------------------------------------
PRINCIPAL RATINGS+ VALUE
- --------------------------------------------------------------------------------
PROPERTY-REAL ESTATE -- 4.31%
SIMON DEBARTOLO GROUP
$2,500,000 6.750%, 07/15/04 BAA1 $ 2,517,850
-----------
PUBLISHING -- OTHER -- 3.53%
TIME WARNER, INC
2,000,000 7.950%, 02/01/00 BA1 2,061,480
-----------
TOTAL CORPORATE BONDS
(COST $12,592,074) 12,728,579
-----------
GOVERNMENT BONDS -- 75.09%
AGENCY SECURITIES -- 5.14%
FEDERAL HOME LOAN BANK
2,000,000 6.035%, 09/27/99 AAA 2,006,560
TENNESSEE VALLEY AUTHORITY
1,000,000 6.250%, 12/15/17 AAA 998,120
-----------
3,004,680
-----------
FOREIGN GOVERNMENT BONDS --3 .44%
QUEBEC PROVINCE OF CANADA
2,000,000 6.500%, 01/17/06 A2 2,006,920
-----------
+AS PROVIDED BY MOODY'S INVESTORS SERVICES (UNAUDITED)
- --------------------------------------------------------------------------------
28 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS BOND PLUS FUND
- --------------------------------------------------------------------------------
PRINCIPAL RATINGS+ VALUE
- --------------------------------------------------------------------------------
MORTGAGE BACKED SECURITIES -- 25.63%
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION
$2,234,142 6.000%, 12/01/08 $ 2,211,510
2,131,701 8.000%, 03/01/23 2,219,633
1,912,360 9.000%, 11/01/25 2,038,441
5,200,000 @ 7.000%, 02/25/28 5,237,336
1,000,000 @ 7.500%, 02/25/28 1,023,430
GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION
2,180,035 7.500%, 11/15/23 2,239,288
-----------
14,969,638
-----------
U.S. TREASURY SECURITIES -- 40.88%
U.S. TREASURY BONDS
4,500,000 * 6.000%, 06/30/99 4,522,500
2,000,000 8.000%, 11/15/21 2,493,450
1,600,000 6.500%, 11/15/26 1,708,000
1,200,000 6.375%, 08/15/27 1,265,628
U.S. TREASURY NOTES
3,000,000 5.750%, 10/31/00 3,003,750
4,500,000 * 6.500%, 08/31/01 4,611,780
3,000,000 6.250%, 06/30/02 3,059,520
3,000,000 * 6.875%, 05/15/06 3,210,000
-----------
23,874,628
-----------
TOTAL GOVERNMENT BONDS
(COST $43,565,117) 43,855,866
-----------
TOTAL BONDS
(COST $56,157,191) $56,584,445
-----------
- --------------------------------------------------------------------------------
PRINCIPAL RATINGS+ VALUE
- --------------------------------------------------------------------------------
SHORT TERM INVESTMENTS -- 12.14%
COMMERCIAL PAPER -- 12.14%
ARIZONA PUBLIC SERVICE CO
$2,500,000 6.100%, 01/14/98 $ 2,494,493
BURLINGTON NORTHERN
SANTA FE
853,000 7.000%, 01/02/98 852,834
HOUSTON INDUSTRIES
FINANCE/CO LP
2,453,000 6.120%, 01/14/98 2,447,578
SONAT INC
1,300,000 6.100%, 01/14/98 1,297,136
-----------
7,092,041
-----------
TOTAL SHORT TERM INVESTMENTS
(COST $7,092,041) 7,092,041
-----------
TOTAL PORTFOLIO
(COST $63,249,232) $63,676,486
===========
---------------------
^ SECURITY IS EXEMPT FROM REGISTRATION UNDER RULE 144A OF THE SECURITIES ACT OF
1933 AND MAY BE RESOLD IN TRANSACTIONS EXEMPT FROM REGISTRATION NORMALLY TO
QUALIFIED INSTITUTIONAL BUYERS. AT 12/31/97, THE VALUE OF THESE SECURITIES
AMOUNTED TO $1,001,309 OR 1.71% OF NET ASSETS.
* ALL OR A PORTION OF THIS SECURITY HAS BEEN SEGREGATED BY THE CUSTODIAN TO
COVER SECURITIES PURCHASED ON A DELAYED DELIVERY BASIS.
@ THESE SECURITIES HAVE BEEN PURCHASED ON A DELAYED DELIVERY BASIS.
---------------------
OTHER INFORMATION THE COMPOSITION OF LONG-TERM DEBT HOLDINGS AS A PERCENTAGE
OF TOTAL VALUE OF INVESTMENT IN SECURITIES, IS AS FOLLOWS:
MOODY'S RATINGS+
AAA, AA, A 17.89%
BAA 8.05%
BA 5.41%
U.S. GOVERNMENT OBLIGATIONS REPRESENT 68.65% OF THE LONG TERM DEBT PORTFOLIO
VALUE.
THE COST OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE
SAME AS THE AMOUNT DISCLOSED ABOVE.
+AS PROVIDED BY MOODY'S INVESTORS SERVICES (UNAUDITED)
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 29
<PAGE>
TIAA-CREF MUTUAL FUNDS STATEMENT OF INVESTMENTS GROWTH & INCOME FUND
DECEMBER 31, 1997 SUMMARY BY INDUSTRY
- --------------------------------------------------------------------------------
VALUE %
- --------------------------------------------------------------------------------
COMMON STOCK
AEROSPACE $ 640,251 1.04%
AIR TRANSPORTATION 385,643 0.62
AUTOMOTIVE & RELATED 1,178,322 1.91
BANKS 5,423,688 8.77
BEVERAGES 1,783,199 2.88
BROADCASTERS 403,823 0.65
BUSINESS SERVICES 239,279 0.39
CHEMICALS -- MAJOR 1,725,984 2.79
CHEMICALS -- SPECIALTY 232,654 0.38
COMMUNICATION EQUIPMENT
& SERVICES 1,681,883 2.72
COMPUTER SERVICE 2,090,605 3.38
CONGLOMERATES 1,274,176 2.06
CONSTRUCTION -- MATERIALS
& BUILDERS 157,323 0.26
CONTAINERS 52,174 0.08
COSMETICS 485,774 0.79
ELECTRICAL EQUIPMENT --
INSTRUMENTS 105,524 0.17
ELECTRICAL EQUIPMENT --
COMPONENTS DIVERSIFIED 1,326,019 2.15
ELECTRICAL EQUIPMENT 2,603,982 4.21
ENVIRONMENTAL CONTROL 352,142 0.57
FINANCIAL -- MISCELLANEOUS 1,855,742 3.00
FOODS 2,191,422 3.55
FOREST PRODUCTS 209,092 0.34
HEALTHCARE -- DRUGS 5,170,379 8.36
HEALTHCARE -- HOSPITAL SUPPLY 67,243 0.11
HEALTHCARE -- OTHER 1,484,452 2.40
HEALTHCARE -- SERVICE 453,517 0.73
HOUSEHOLD -- DURABLE GOODS 781,976 1.27
HOUSEHOLD -- PRODUCTS 1,780,064 2.88
INSURANCE -- BROKERS & OTHER 162,317 0.26
INSURANCE -- LIFE 343,753 0.56
- --------------------------------------------------------------------------------
VALUE %
- --------------------------------------------------------------------------------
INSURANCE -- MULTI-LINE,
PROPERTY & CASUALTY $ 2,443,471 3.95%
LEISURE TIME 599,885 0.97
MACHINERY 584,508 0.95
METALS -- ALUMINUM 158,650 0.26
METALS -- GOLD 143,799 0.23
METALS -- NON-FERROUS 70,274 0.11
METALS -- STEEL 105,830 0.17
OFFICE EQUIPMENT 2,421,554 3.92
PAPER 230,617 0.37
PETROLEUM -- EXPLORATION
& PRODUCTION 1,033,553 1.67
PETROLEUM -- INTEGRATED 3,576,566 5.79
PETROLEUM -- SERVICE 565,430 0.91
PHOTOGRAPHY 154,474 0.25
PUBLISHING -- NEWSPAPER 331,543 0.54
PUBLISHING -- OTHER 422,987 0.68
RAILROAD 372,567 0.60
RESTAURANTS & HOTELS 524,221 0.85
RETAIL -- FOOD 269,247 0.44
RETAIL -- GENERAL MERCHANDISE 3,022,629 4.89
TEXTILE & APPAREL 173,661 0.28
TOBACCO 804,736 1.30
TRUCKERS & SHIPPING 60,956 0.10
UTILITIES -- ELECTRIC 1,387,596 2.24
UTILITIES -- GAS & PIPELINE 397,368 0.64
UTILITIES -- TELEPHONE 5,003,750 8.09
----------- ------
TOTAL COMMON STOCK
(COST $59,702,181) 61,502,274 99.48
----------- ------
TOTAL PORTFOLIO
(COST $59,702,181) 61,502,274 99.48
OTHER ASSETS & LIABILITIES, NET 319,633 0.52
----------- ------
NET ASSETS $61,821,907 100.00%
=========== ======
- --------------------------------------------------------------------------------
30 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS STATEMENT OF INVESTMENTS GROWTH & INCOME FUND
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 99.48%
AEROSPACE -- 1.04%
6,720 BOEING CO $ 328,860
300 EG & G, INC 6,243
400 GENERAL DYNAMICS CORP 34,575
1,300 LOCKHEED MARTIN CORP 128,050
400 NORTHROP GRUMMAN CORP 46,000
318 RAYTHEON CO. (CLASS A) 15,723
1,600 RAYTHEON CO. (CLASS B) 80,800
----------
640,251
----------
AIR TRANSPORTATION -- 0.62%
600 oAMR CORP 77,100
2,743 oCONTINENTAL AIRLINES, INC
(CLASS B) 132,006
500 DELTA AIRLINES, INC 59,500
800 oFEDERAL EXPRESS CORP 48,850
1,500 SOUTHWEST AIRLINES CO 36,937
500 oUS AIRWAYS GROUP, INC 31,250
----------
385,643
----------
AUTOMOTIVE & RELATED -- 1.91%
4,700 CHRYSLER CORP 165,381
500 COOPER TIRE & RUBBER CO 12,187
300 CUMMINS ENGINE CO, INC 17,718
700 DANA CORP 33,250
500 EATON CORP 44,625
400 ECHLIN, INC 14,475
8,200 FORD MOTOR CO 399,237
5,000 GENERAL MOTORS CORP 303,125
1,200 GENUINE PARTS CO 40,725
1,100 GOODYEAR TIRE & RUBBER CO 69,987
500 MERITOR AUTOMOTIVE, INC 10,531
500 oNAVISTAR INTERNATIONAL CORP 12,406
500 PACCAR, INC 26,250
400 SAFETY-KLEEN CORP 10,975
400 SNAP-ON, INC 17,450
----------
1,178,322
----------
BANKS -- 8.77%
12,370 BANC ONE CORP 671,845
2,700 BANK OF NEW YORK CO, INC 156,093
4,900 BANKAMERICA CORP 357,700
1,000 BANKBOSTON CORP 93,937
500 BANKERS TRUST NEW YORK CORP 56,218
1,400 BARNETT BANKS, INC 100,625
3,000 CHASE MANHATTAN CORP (NEW) 328,500
3,200 CITICORP CO 404,600
700 COMERICA, INC 63,175
3,738 CORESTATES FINANCIAL CORP 299,273
1,100 FIFTH THIRD BANCORP 89,925
2,100 FIRST CHICAGO NBD CORP 175,350
4,000 FIRST UNION CORP 205,000
1,800 FLEET FINANCIAL GROUP, INC 134,887
1,500 KEYCORP 106,218
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
1,800 MELLON BANK CORP $ 109,125
1,300 MORGAN (J.P.) & CO, INC 146,737
1,500 NATIONAL CITY CORP 98,625
12,499 NATIONSBANK CORP 760,095
5,200 NORWEST CORP 200,850
2,200 PNC BANK CORP 125,537
400 REPUBLIC NEW YORK CORP 45,675
1,500 SUNTRUST BANKS, INC 107,062
1,655 U.S. BANCORP 185,256
1,100 WACHOVIA CORP 89,237
1,700 WASHINGTON MUTUAL, INC 108,481
600 WELLS FARGO & CO 203,662
----------
5,423,688
----------
BEVERAGES -- 2.88%
3,400 ANHEUSER BUSCH COS, INC 149,600
500 BROWN FORMAN, INC (CLASS B) 27,625
17,000 COCA COLA CO 1,132,625
300 COORS (ADOLPH) CO (CLASS B) 9,975
10,500 PEPSICO, INC 382,593
2,500 SEAGRAMS CO LTD (U.S.) 80,781
----------
1,783,199
----------
BROADCASTERS -- 0.65%
4,400 CBS CORP 129,525
2,400 COMCAST CORP (CLASS A) SPECIAL 75,750
300 KING WORLD PRODUCTIONS, INC 17,325
2,927 oTELE-COMMUNICATIONS, INC
(CLASS A) 81,773
2,400 oVIACOM, INC (CLASS B) 99,450
----------
403,823
----------
BUSINESS SERVICES -- 0.39%
300 AUTODESK, INC 11,100
700 BLOCK (H&R), INC 31,368
1,100 COGNIZANT CORP 49,018
600 DELUXE CORP 20,700
200 HARLAND (JOHN H.) CO 4,200
800 INTERPUBLIC GROUP OF COS, INC 39,850
600 MOORE CORP LTD 9,075
300 NATIONAL SERVICE
INDUSTRIES, INC 14,868
1,600 SERVICE CORP INTERNATIONAL 59,100
----------
239,279
----------
CHEMICALS -- MAJOR -- 2.79%
800 AIR PRODUCTS & CHEMICALS, INC 65,800
1,600 DOW CHEMICAL CO 162,400
17,104 DU PONT (E.I.) DE NEMOURS & CO 1,027,309
500 EASTMAN CHEMICAL CO 29,781
400 GOODRICH (B.F.) CO 16,575
700 HERCULES, INC 35,043
4,100 MONSANTO CO 172,200
1,200 PPG INDUSTRIES, INC 68,550
1,100 PRAXAIR, INC 49,500
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 31
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH & INCOME FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
CHEMICALS -- MAJOR -- (Continued)
400 ROHM & HAAS CO $ 38,300
820 SOLUTIA, INC 21,883
900 UNION CARBIDE CORP 38,643
----------
1,725,984
----------
CHEMICALS -- SPECIALTY -- 0.38%
400 ECOLAB, INC 22,175
1,000 ENGELHARD CORP 17,375
300 FOSTER WHEELER CORP 8,118
500 GRACE (W.R.) & CO 40,218
400 GREAT LAKES CHEMICAL CORP 17,950
500 MALLINCKRODT, INC 19,000
1,000 MORTON INTERNATIONAL, INC 34,375
500 NALCO CHEMICAL CORP 19,781
600 RAYCHEM CORP 25,837
700 SIGMA ALDRICH CORP 27,825
----------
232,654
----------
COMMUNICATION EQUIPMENT & SERVICES -- 2.72%
2,300 o3COM CORP 80,356
600 oANDREW CORP 14,400
1,100 oCABLETRON SYSTEMS, INC 16,500
6,900 oCISCO SYSTEMS, INC 384,675
1,600 CORNING, INC 59,400
800 oDSC COMMUNICATIONS CORP 19,200
600 HARRIS CORP 27,525
4,400 LUCENT TECHNOLOGIES, INC 351,450
3,168 NOKIA AB SERIES A ADR 221,760
1,800 NORTHERN
TELECOMMUNICATIONS LTD (U.S.) 160,200
2,400 oNOVELL, INC 18,000
500 SCIENTIFIC-ATLANTA, INC 8,375
1,673 oTELECOM-TCI VENTURES
GROUP (CLASS A) 47,366
5,157 oTELLABS, INC 272,676
----------
1,681,883
----------
COMPUTER SERVICE -- 3.38%
500 ADOBE SYSTEMS, INC 20,625
2,000 AUTOMATIC DATA
PROCESSING, INC 122,750
1,400 oBAY NETWORKS, INC 35,787
600 oCERIDIAN CORP 27,487
7,356 COMPUTER ASSOCIATES
INTERNATIONAL, INC 388,948
500 oCOMPUTER SCIENCES CORP 41,750
3,400 oEMC CORP 93,287
3,100 FIRST DATA CORP 90,675
300 oINTERGRAPH CORP 3,000
8,200 oMICROSOFT CORP 1,059,850
6,750 oORACLE CORP 150,609
900 oPARAMETRIC TECHNOLOGY CORP 42,637
200 SHARED MEDICAL SYSTEMS CORP 13,200
----------
2,090,605
----------
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
CONGLOMERATES -- 2.06%
8,444 ALLIED SIGNAL, INC $ 328,788
300 CRANE CO 13,012
1,200 FORTUNE BRANDS, INC 44,475
800 ITT INDUSTRIES, INC 25,100
600 JOHNSON CONTROLS, INC 28,650
800 LOEWS CORP 84,900
2,900 MINNESOTA MINING &
MANUFACTURING CO 237,981
1,100 TEXTRON, INC 68,750
900 TRW, INC 48,037
5,764 TYCO INTERNATIONAL LTD 259,740
1,600 UNITED TECHNOLOGIES CORP 116,500
700 WHITMAN CORP 18,243
----------
1,274,176
----------
CONSTRUCTION --
MATERIALS & BUILDERS -- 0.26%
300 ARMSTRONG WORLD
INDUSTRIES, INC 22,425
200 CENTEX CORP 12,587
200 FLEETWOOD ENTERPRISES, INC 8,487
300 KAUFMAN & BROAD HOME CORP 6,731
1,100 MASCO CORP 55,962
400 OWENS CORNING CO 13,650
100 PULTE CORP 4,181
1,200 SHERWIN-WILLIAMS CO 33,300
----------
157,323
----------
CONTAINERS -- 0.08%
200 BALL CORP 7,062
900 CROWN CORK & SEAL CO, INC 45,112
----------
52,174
----------
COSMETICS -- 0.79%
400 ALBERTO CULVER CO (CLASS B) 12,825
900 AVON PRODUCTS, INC 55,237
3,800 GILLETTE CO 381,662
700 INTERNATIONAL FLAVORS &
FRAGRANCES, INC 36,050
----------
485,774
----------
ELECTRICAL EQUIPMENT--INSTRUMENTS -- 0.17%
2,400 oAPPLIED MATERIALS, INC 72,300
300 PERKIN-ELMER CORP 21,318
300 TEKTRONIX, INC 11,906
----------
105,524
----------
ELECTRICAL EQUIPMENT --
COMPONENTS DIVERSIFIED -- 2.15%
1,000 oADVANCED MICRO DEVICES, INC 17,937
1,500 AMP, INC 63,000
333 oCOMMSCOPE, INC 4,474
250 oGENERAL SEMICONDUCTOR, INC 2,890
11,200 INTEL CORP 786,800
1,000 oLSI LOGIC CORP 19,750
- --------------------------------------------------------------------------------
32 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH & INCOME FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT --
COMPONENTS DIVERSIFIED -- (Continued)
1,400 oMICRON TECHNOLOGY, INC $ 36,400
4,100 MOTOROLA, INC 233,956
1,000 oNATIONAL SEMICONDUCTOR
CORP 25,937
1,000 oNEXTLEVEL SYSTEMS, INC 17,875
2,600 TEXAS INSTRUMENTS, INC 117,000
----------
1,326,019
----------
ELECTRICAL EQUIPMENT -- 4.21%
800 COOPER INDUSTRIES, INC 39,200
3,100 EMERSON ELECTRIC CO 174,956
26,980 GENERAL ELECTRIC CO 1,979,781
300 GENERAL SIGNAL CORP 12,656
400 GRAINGER (W.W.), INC 38,875
900 HONEYWELL, INC 61,650
3,299 PHILIPS ELECTRONICS NV
(NY REGD) 199,589
1,500 ROCKWELL INTERNATIONAL CORP 78,375
400 THOMAS & BETTS CORP 18,900
----------
2,603,982
----------
ENVIRONMENTAL CONTROL -- 0.57%
1,500 BROWNING FERRIS
INDUSTRIES, INC 55,500
10,787 WASTE MANAGEMENT, INC 296,642
----------
352,142
----------
FINANCIAL -- MISCELLANEOUS -- 3.00%
3,200 AMERICAN EXPRESS CO 285,600
1,700 AMERICAN GENERAL CORP 91,906
400 BENEFICIAL CORP 33,250
500 CASE CORP 30,218
700 COUNTRYWIDE CREDIT
INDUSTRIES, INC 30,012
7,300 FEDERAL NATIONAL
MORTGAGE ASSOCIATION 416,556
4,800 FREDDIE MAC 201,300
400 GOLDEN WEST FINANCIAL CORP 39,125
900 GREEN TREE FINANCIAL CORP 23,568
700 H.F. AHMANSON & CO 46,856
700 HOUSEHOLD INTERNATIONAL, INC 89,293
3,450 MBNA CORP 94,228
2,300 MERRILL LYNCH & CO, INC 167,756
3,900 MORGAN STANLEY,
DEAN WITTER, DISCOVER 230,587
1,800 SCHWAB (CHARLES) CORP 75,487
----------
1,855,742
----------
FOODS -- 3.55%
3,885 ARCHER DANIELS MIDLAND CO 84,255
1,000 BESTFOODS, INC 107,750
3,200 CAMPBELL SOUP CO 186,000
3,200 CONAGRA, INC 105,000
1,100 GENERAL MILLS, INC 78,787
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
2,500 HEINZ (H.J.) CO $ 127,031
1,000 HERSHEY FOODS CORP 61,937
2,800 KELLOGG CO 138,950
12,400 NABISCO HOLDINGS CORP
(CLASS A) 600,625
600 PIONEER-HI-BRED
INTERNATIONAL, INC 64,350
900 QUAKER OATS CO 47,475
700 RALSTON PURINA CO 65,056
3,300 SARA LEE CORP 185,831
4,400 UNILEVER NV - NY SHARES 274,725
800 WRIGLEY (WM) JR CO 63,650
----------
2,191,422
----------
FOREST PRODUCTS -- 0.34%
300 BOISE CASCADE CORP 9,075
700 CHAMPION INTERNATIONAL CORP 31,718
600 GEORGIA PACIFIC CORP
(PAC GROUP) 36,450
600 oGEORGIA-PACIFIC CORP
(TIMBER GROUP) 13,612
800 LOUISIANA PACIFIC CORP 15,200
200 POTLATCH CORP 8,600
1,400 WEYERHAEUSER CO 68,687
800 WILLAMETTE INDUSTRIES, INC 25,750
----------
209,092
----------
HEALTHCARE -- DRUGS -- 8.36%
400 ALLERGAN, INC 13,425
600 ALZA CORP 19,087
8,853 AMERICAN HOME PRODUCTS CORP 677,254
1,800 AMGEN, INC 97,425
6,900 BRISTOL MYERS SQUIBB CO 652,912
30 oCRESCENDO
PHARMACEUTICALS CORP 346
7,600 LILLY (ELI) & CO 529,150
11,105 MERCK & CO, INC 1,179,906
164 NOVARTIS AG (REGD) 266,482
14,216 PFIZER, INC 1,059,980
3,500 PHARMACIA & UPJOHN, INC 128,187
5,000 SCHERING-PLOUGH CORP 310,625
1,900 WARNER-LAMBERT CO 235,600
----------
5,170,379
----------
HEALTHCARE -- HOSPITAL SUPPLY -- 0.11%
700 CARDINAL HEALTH, INC 52,587
500 U.S. SURGICAL CORP 14,656
----------
67,243
----------
HEALTHCARE -- OTHER -- 2.40%
5,500 ABBOTT LABORATORIES CO 360,593
400 BARD (C.R.), INC 12,525
400 BAUSCH & LOMB, INC 15,850
1,900 BAXTER INTERNATIONAL, INC 95,831
800 BECTON DICKINSON & CO 40,000
800 BIOMET, INC 20,500
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 33
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH & INCOME FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
HEALTHCARE -- OTHER -- (Continued)
1,300 oBOSTON SCIENTIFIC CORP $ 59,637
1,000 GUIDANT CORP 62,250
9,100 JOHNSON & JOHNSON CO 599,462
3,200 MEDTRONIC, INC 167,400
300 MILLIPORE CORP 10,181
900 PALL CORP 18,618
318 oPHARMERICA, INC 3,305
600 oST. JUDE MEDICAL, INC 18,300
----------
1,484,452
----------
HEALTHCARE -- SERVICE -- 0.73%
1,000 AETNA, INC 70,562
700 oBEVERLY ENTERPRISES, INC (NEW) 9,100
4,600 COLUMBIA/HCA
HEALTHCARE CORP 136,275
2,400 oHEALTHSOUTH CORP 66,600
1,100 oHUMANA, INC 22,825
400 MANOR CARE, INC 14,000
2,100 oTENET HEALTHCARE CORP 69,562
1,300 UNITED HEALTHCARE CORP 64,593
----------
453,517
----------
HOUSEHOLD -- DURABLE GOODS -- 1.27%
600 BLACK & DECKER CORP 23,437
700 MAYTAG CO 26,118
1,100 NEWELL COS, INC 46,750
13,948 STANLEY WORKS CO 658,171
500 WHIRLPOOL CORP 27,500
----------
781,976
----------
HOUSEHOLD -- PRODUCTS -- 2.88%
800 CLOROX CO 63,250
2,000 COLGATE PALMOLIVE CO 147,000
3,800 KIMBERLY-CLARK CORP 187,387
16,868 PROCTER & GAMBLE CO 1,346,277
1,000 RUBBERMAID, INC 25,000
400 TUPPERWARE CORP 11,150
----------
1,780,064
----------
INSURANCE -- BROKERS & OTHER -- 0.26%
100 oCHOICEPOINT, INC 4,775
1,000 EQUIFAX, INC 35,437
1,100 MARSH & MCLENNAN COS, INC 82,018
600 MBIA, INC 40,087
----------
162,317
----------
INSURANCE -- LIFE -- 0.56%
1,100 AON CORP 64,487
1,300 CONSECO, INC 59,068
500 JEFFERSON-PILOT CORP 38,937
600 PROVIDIAN FINANCIAL CORP 27,112
1,350 SUNAMERICA, INC 57,712
1,000 TORCHMARK CORP 42,062
1,000 UNUM CORP 54,375
----------
343,753
----------
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
INSURANCE -- MULTI-LINE,
PROPERTY & CASUALTY -- 3.95%
9,362 ALLSTATE CORP $ 850,771
4,800 AMERICAN INTERNATIONAL
GROUP, INC 522,000
1,200 CHUBB CORP 90,750
500 CIGNA CORP 86,531
600 GENERAL REINSURANCE CORP 127,200
800 HARTFORD FINANCIAL
SERVICES GROUP, INC 74,850
700 LINCOLN NATIONAL CORP 54,687
800 MGIC INVESTMENT CORP 53,200
900 SAFECO CORP 43,875
600 ST. PAUL COS, INC 49,237
500 TRANSAMERICA CORP 53,250
7,786 TRAVELERS GROUP, INC 419,470
800 USF&G CORP 17,650
----------
2,443,471
----------
LEISURE TIME -- 0.97%
700 BRUNSWICK CORP 21,218
4,600 DISNEY (WALT) CO 455,687
700 oHARRAHS ENTERTAINMENT, INC 13,212
900 HASBRO, INC 28,350
300 JOSTENS, INC 6,918
2,000 MATTEL, INC 74,500
----------
599,885
----------
MACHINERY -- 0.95%
200 AEROQUIP-VICKERS, INC 9,812
200 BRIGGS & STRATTON CORP 9,712
2,600 CATERPILLAR, INC 126,262
300 CINCINNATI MILACRON, INC 7,781
1,800 DEERE & CO 104,962
1,600 DOVER CORP 57,800
300 oFMC CORP 20,193
300 HARNISCHFEGER INDUSTRIES, INC 10,593
1,700 ILLINOIS TOOL WORKS, INC 102,212
1,050 INGERSOLL-RAND CO 42,525
750 PARKER-HANNIFIN CORP 34,406
1,000 oTHERMO ELECTRON CORP 44,500
400 TIMKEN CO 13,750
----------
584,508
----------
METALS -- ALUMINUM -- 0.26%
1,600 ALCAN ALUMINIUM CO LTD (U.S.) 44,200
1,200 ALUMINUM CO OF AMERICA 84,450
500 REYNOLDS METALS CO 30,000
----------
158,650
----------
METALS -- GOLD -- 0.23%
2,600 BARRICK GOLD CORP 48,425
1,600 BATTLE MOUNTAIN GOLD CO 9,400
1,000 ECHO BAY MINES LTD (U.S.) 2,437
1,400 FREEPORT-MCMORAN COPPER
& GOLD INC (CLASS B) 22,050
- --------------------------------------------------------------------------------
34 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH & INCOME FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
METALS -- GOLD -- (Continued)
1,000 HOMESTAKE MINING CO $ 8,875
1,100 NEWMONT MINING CORP 32,312
1,600 PLACER DOME, INC 20,300
----------
143,799
----------
METALS -- NON-FERROUS -- 0.11%
300 ASARCO, INC 6,731
600 CYPRUS AMAX MINERALS CO 9,225
1,100 INCO LTD. CO 18,700
100 NACCO INDUSTRIES, INC (CLASS A) 10,718
400 PHELPS DODGE CORP 24,900
----------
70,274
----------
METALS -- STEEL -- 0.17%
1,200 ALLEGHENY TELEDYNE, INC 31,050
700 oARMCO, INC 3,456
800 oBETHLEHEM STEEL CORP 6,900
300 INLAND STEEL INDUSTRIES, INC 5,137
600 NUCOR CORP 28,987
600 USX-US STEEL GROUP, INC 18,750
700 WORTHINGTON INDUSTRIES, INC 11,550
----------
105,830
----------
OFFICE EQUIPMENT -- 3.92%
900 oAPPLE COMPUTER, INC 11,812
700 AVERY DENNISON CORP 31,325
5,170 COMPAQ COMPUTER CORP 291,781
300 oDATA GENERAL CORP 5,231
2,200 oDELL COMPUTER CORP 184,800
1,000 oDIGITAL EQUIPMENT CORP 37,000
7,000 HEWLETT-PACKARD CO 437,500
900 IKON OFFICE SOLUTIONS, INC 25,312
9,377 INTERNATIONAL BUSINESS
MACHINES CORP 980,482
1,000 PITNEY BOWES, INC 89,937
1,700 oSEAGATE TECHNOLOGY, INC 32,725
1,200 oSILICON GRAPHICS, INC 14,925
2,500 oSUN MICROSYSTEMS, INC 99,687
1,200 oUNISYS CORP 16,650
2,200 XEROX CORP 162,387
----------
2,421,554
----------
PAPER -- 0.37%
400 BEMIS, INC 17,625
600 FORT JAMES CORP 22,950
2,100 INTERNATIONAL PAPER CO 90,562
800 MEAD CORP 22,400
700 STONE CONTAINER CORP 7,306
400 TEMPLE-INLAND, INC 20,925
500 UNION CAMP CORP 26,843
700 WESTVACO CORP 22,006
----------
230,617
----------
PETROLEUM -- EXPLORATION & PRODUCTION -- 1.67%
600 AMERADA HESS CORP 32,925
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
11,046 APACHE CORP $ 387,300
11,170 BURLINGTON RESOURCES, INC 500,555
749 oEEX CORP 6,787
300 KERR-MCGEE CORP 18,993
700 oORYX ENERGY CO 17,850
300 PENNZOIL CO 20,043
700 SANTA FE ENERGY RESOURCES, INC 7,875
1,700 UNION PACIFIC
RESOURCES GROUP, INC 41,225
----------
1,033,553
----------
PETROLEUM -- INTEGRATED -- 5.79%
3,400 AMOCO CORP 289,425
500 ASHLAND, INC 26,843
2,200 ATLANTIC RICHFIELD CO 176,275
4,500 CHEVRON CORP 346,500
17,000 EXXON CORP 1,040,187
5,400 MOBIL CORP 389,812
2,300 OCCIDENTAL PETROLEUM CORP 67,418
1,800 PHILLIPS PETROLEUM CO 87,525
14,700 ROYAL DUTCH PETROLEUM CO
(NY REGD) ADR 796,556
500 SUN CO, INC 21,031
3,706 TEXACO, INC 201,513
1,700 UNOCAL CORP 65,981
2,000 USX-MARATHON GROUP, INC 67,500
----------
3,576,566
----------
PETROLEUM -- SERVICE -- 0.91%
1,100 BAKER HUGHES, INC 47,987
1,200 DRESSER INDUSTRIES, INC 50,325
600 FLUOR CORP 22,425
1,700 HALLIBURTON CO 88,293
200 HELMERICH & PAYNE, INC 13,575
400 MCDERMOTT INTERNATIONAL, INC 14,650
600 oROWAN COS, INC 18,300
3,400 SCHLUMBERGER LTD 273,700
400 oUNOVA, INC 6,575
400 oWESTERN ATLAS, INC 29,600
----------
565,430
----------
PHOTOGRAPHY -- 0.25%
2,300 EASTMAN KODAK CO 139,868
300 POLAROID CORP 14,606
----------
154,474
----------
PUBLISHING -- NEWSPAPER -- 0.54%
700 DOW JONES & CO, INC 37,581
2,000 GANNETT CO, INC 123,625
600 KNIGHT-RIDDER, INC 31,200
700 NEW YORK TIMES CO (CLASS A) 46,287
700 TIMES MIRROR CO SERIES A 43,050
800 TRIBUNE CO 49,800
----------
331,543
----------
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 35
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH & INCOME FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
PUBLISHING -- OTHER -- 0.68%
500 AMERICAN GREETINGS CORP
(CLASS A) $ 19,562
1,000 DONNELLEY (R.R.) & SONS CO 37,250
1,200 DUN & BRADSTREET CORP 37,125
500 HARCOURT GENERAL, INC 27,375
700 MCGRAW HILL COS, INC 51,800
400 MEREDITH CORP 14,275
3,800 TIME WARNER, INC 235,600
----------
422,987
----------
RAILROAD -- 0.60%
1,100 BURLINGTON NORTHERN
SANTA FE CORP 102,231
1,500 CSX CORP 81,000
2,700 NORFOLK SOUTHERN CORP 83,193
1,700 UNION PACIFIC CORP 106,143
----------
372,567
----------
RESTAURANTS & HOTELS -- 0.85%
1,100 DARDEN RESTAURANTS, INC 13,750
1,700 HILTON HOTELS CORP 50,575
800 ITT CORP 66,300
900 MARRIOTT INTERNATIONAL, INC 62,325
4,700 MCDONALDS CORP 224,425
1,200 SYSCO CORP 54,675
1,050 oTRICON GLOBAL
RESTAURANTS, INC 30,515
900 WENDYS INTERNATIONAL, INC 21,656
----------
524,221
----------
RETAIL -- FOOD -- 0.44%
1,700 ALBERTSONS, INC 80,537
1,900 AMERICAN STORES CO 39,068
300 FLEMING COS, INC 4,031
400 GIANT FOOD, INC (CLASS A) 13,475
300 GREAT ATLANTIC & PACIFIC
TEA CO, INC 8,906
1,700 oKROGER CO 62,793
400 SUPERVALU, INC 16,750
1,000 WINN DIXIE STORES, INC 43,687
----------
269,247
----------
RETAIL -- GENERAL MERCHANDISE -- 4.89%
1,000 oAUTOZONE, INC 29,000
5,443 oCENDANT CORP 187,117
700 oCHARMING SHOPPES, INC 3,281
700 CIRCUIT CITY STORES-CIRCUIT
CITY GROUP 24,893
1,400 oCOSTCO COS, INC 62,475
1,100 CVS CORP 70,468
10,648 DAYTON HUDSON CORP 718,740
800 DILLARDS, INC (CLASS A) 28,200
1,400 oFEDERATED DEPARTMENT
STORES, INC 60,287
2,850 GAP, INC 100,996
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
5,000 HOME DEPOT, INC $ 294,375
3,300 oK MART CORP 38,156
1,900 LIMITED, INC 48,450
300 LONGS DRUG STORES CORP 9,637
1,200 LOWES COS, INC 57,225
1,600 MAY DEPARTMENT STORES CO 84,300
300 MERCANTILE STORES CO, INC 18,262
500 NORDSTROM, INC 30,187
1,700 PENNEY (J.C.) CO, INC 102,531
400 PEP BOYS- MANNY, MOE, &
JACK CO 9,550
800 RITE AID CORP 46,950
2,700 SEARS ROEBUCK & CO 122,175
300 STRIDE RITE CORP 3,600
800 TANDY CORP 30,850
1,100 TJX COS, INC 37,812
2,000 oTOYS R US, INC 62,875
15,600 WAL-MART STORES, INC 615,225
3,400 WALGREEN CO 106,675
900 oWOOLWORTH CORP 18,337
----------
3,022,629
----------
TEXTILE & APPAREL -- 0.28%
500 oFRUIT OF THE LOOM, INC (CLASS A) 12,812
500 LIZ CLAIBORNE, INC 20,906
2,000 NIKE, INC (CLASS B) 78,500
400 REEBOK INTERNATIONAL LTD 11,525
300 RUSSELL CORP 7,968
100 SPRING INDUSTRIES, INC 5,200
800 VF CORP 36,750
----------
173,661
----------
TOBACCO -- 1.30%
16,700 PHILIP MORRIS COS, INC 756,718
1,300 UST, INC 48,018
----------
804,736
----------
TRUCKERS & SHIPPING -- 0.10%
300 CALIBER SYSTEM, INC 14,606
2,200 LAIDLAW, INC 29,975
500 RYDER SYSTEM, INC 16,375
----------
60,956
----------
UTILITIES -- ELECTRIC -- 2.24%
1,300 AMERICAN ELECTRIC
POWER CO, INC 67,112
1,000 BALTIMORE GAS & ELECTRIC CO 34,062
1,000 CAROLINA POWER & LIGHT CO 42,437
1,500 CENTRAL & SOUTH WEST CORP 40,593
1,100 CINERGY CORP 42,143
1,600 CONSOLIDATED EDISON CO OF
NEW YORK, INC 65,600
1,300 DOMINION RESOURCES, INC 55,331
1,000 DTE ENERGY CO 34,687
2,500 DUKE ENERGY CORP 138,437
2,800 EDISON INTERNATIONAL CO 76,125
- --------------------------------------------------------------------------------
36 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH & INCOME FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
UTILITIES -- ELECTRIC -- (Continued)
1,600 ENTERGY CORP $ 47,900
1,000 oFIRSTENERGY CORP 29,000
1,300 FPL GROUP, INC 76,943
800 GPU, INC 33,700
1,710 HOUSTON INDUSTRIES, INC 45,635
1,000 oNIAGARA MOHAWK POWER CORP 10,500
500 NORTHERN STATES POWER CO 29,125
2,000 PACIFICORP 54,625
1,500 PECO ENERGY CO 36,375
2,800 PG&E CORP 85,225
1,100 PP&L RESOURCES, INC 26,331
1,600 PUBLIC SERVICE ENTERPRISE
GROUP, INC 50,700
4,700 SOUTHERN CO 121,612
1,612 TEXAS UTILITIES CO 66,998
1,500 UNICOM CORP 46,125
700 UNION ELECTRIC CO 30,275
-----------
1,387,596
-----------
UTILITIES -- GAS & PIPELINE -- 0.64%
700 COASTAL CORP 43,356
400 COLUMBIA GAS SYSTEMS, INC 31,425
700 CONSOLIDATED NATURAL GAS CO 42,350
100 EASTERN ENTERPRISES CO 4,500
2,100 ENRON CORP 87,281
300 NICOR, INC 12,656
200 ONEOK, INC 8,075
600 PACIFIC ENTERPRISES, INC 22,575
200 PEOPLES ENERGY CORP 7,875
600 SONAT, INC 27,450
1,200 TENNECO, INC 47,400
2,200 WILLIAMS COS, INC 62,425
-----------
397,368
-----------
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
UTILITIES -- TELEPHONE -- 8.09%
3,500 oAIRTOUCH
COMMUNICATIONS, INC $ 145,468
1,300 ALLTEL CORP 53,381
3,800 AMERITECH CORP 305,900
19,839 AT & T CORP 1,215,138
5,304 BELL ATLANTIC CORP 482,664
6,800 BELLSOUTH CORP 382,925
1,100 FRONTIER CORP 26,468
6,600 GTE CORP 344,850
4,700 MCI COMMUNICATIONS CORP 201,218
13,446 SBC COMMUNICATIONS, INC 984,919
3,000 SPRINT CORP 175,875
3,300 U.S. WEST COMMUNICATIONS
GROUP, INC 148,912
4,200 oU.S. WEST MEDIA GROUP, INC 121,275
13,711 oWORLDCOM, INC 414,757
-----------
5,003,750
-----------
TOTAL COMMON STOCK
(COST $59,702,181) 61,502,274
-----------
TOTAL PORTFOLIO
(COST $59,702,181) $61,502,274
===========
--------------------
o NON-INCOME PRODUCING
THE COST OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE
SAME AS THE AMOUNT DISCLOSED ABOVE.
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 37
<PAGE>
TIAA-CREF MUTUAL FUNDS STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
DECEMBER 31, 1997 SUMMARY BY INDUSTRY
- --------------------------------------------------------------------------------
VALUE %
- --------------------------------------------------------------------------------
COMMON STOCK
AEROSPACE $ 596,673 0.93%
AIR TRANSPORTATION 84,862 0.13
AUTOMOTIVE & RELATED 280,709 0.44
BANKS 547,420 0.85
BEVERAGES 2,485,643 3.85
BROADCASTERS 2,139,348 3.32
BUSINESS SERVICES 1,082,781 1.68
CHEMICALS -- MAJOR 731,762 1.13
CHEMICALS -- SPECIALTY 267,247 0.41
COMMUNICATION EQUIPMENT
& SERVICES 3,393,908 5.26
COMPUTER SERVICE 4,420,401 6.85
CONGLOMERATES 2,035,335 3.16
CONSTRUCTION -- MATERIALS
& BUILDERS 246,641 0.38
CONTAINERS 42,149 0.07
COSMETICS 814,629 1.26
ELECTRICAL EQUIPMENT --
INSTRUMENTS 521,989 0.81
ELECTRICAL EQUIPMENT --
COMPONENTS DIVERSIFIED 3,777,773 5.86
ELECTRICAL EQUIPMENT 3,017,088 4.68
ENVIRONMENTAL CONTROL 936,230 1.45
FINANCIAL -- MISCELLANEOUS 2,043,453 3.17
FOODS 1,918,085 2.97
FOREST PRODUCTS 83,686 0.13
HEALTHCARE -- DRUGS 6,939,218 10.76
HEALTHCARE -- HOSPITAL SUPPLY 129,312 0.20
HEALTHCARE -- OTHER 3,125,386 4.85
HEALTHCARE -- SERVICE 891,845 1.38
HOUSEHOLD -- CONSUMER
ELECTRONICS 4,350 0.01
HOUSEHOLD -- DURABLE GOODS 163,873 0.25
HOUSEHOLD -- PRODUCTS 1,825,679 2.83
INSURANCE -- BROKERS & OTHER 212,762 0.33
INSURANCE -- LIFE 286,073 0.44
INSURANCE -- MULTI-LINE,
PROPERTY & CASUALTY 677,277 1.05
- --------------------------------------------------------------------------------
VALUE %
- --------------------------------------------------------------------------------
LEISURE TIME $ 1,856,304 2.88%
MACHINERY 367,922 0.57
METALS -- ALUMINUM 92,475 0.14
METALS -- GOLD 128,142 0.20
METALS -- NON-FERROUS 15,300 0.02
METALS -- STEEL 75,287 0.12
MISCELLANEOUS MATERIALS
& COMMODITIES 4,531 0.01
OFFICE EQUIPMENT 2,702,367 4.19
PAPER 74,936 0.12
PETROLEUM -- EXPLORATION
& PRODUCTION 325,464 0.51
PETROLEUM -- INTEGRATED 161,460 0.25
PETROLEUM -- SERVICE 2,012,633 3.12
PHOTOGRAPHY 154,962 0.24
PROPERTY -- REAL ESTATE 2,737 0.00
PUBLISHING -- NEWSPAPER 333,342 0.52
PUBLISHING -- OTHER 297,280 0.46
RAILROAD 46,468 0.07
RESTAURANTS & HOTELS 847,066 1.31
RETAIL -- FOOD 430,622 0.67
RETAIL -- GENERAL MERCHANDISE 2,907,014 4.51
TEXTILE & APPAREL 258,530 0.40
TOBACCO 1,371,336 2.13
TRUCKERS & SHIPPING 64,643 0.10
UTILITIES -- ELECTRIC 116,641 0.18
UTILITIES -- GAS & PIPELINE 267,873 0.42
UTILITIES -- OTHER 19,200 0.03
UTILITIES -- TELEPHONE 3,147,221 4.88
----------- ------
TOTAL COMMON STOCK
(COST $63,286,773) 63,805,343 98.94
----------- ------
TOTAL PORTFOLIO
(COST $63,286,773) 63,805,343 98.94
OTHER ASSETS & LIABILITIES, NET 682,097 1.06
----------- ------
NET ASSETS $64,487,440 100.00%
=========== ======
- --------------------------------------------------------------------------------
38 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCK -- 98.94%
AEROSPACE -- 0.93%
6,960 BOEING CO $ 340,605
300 EG & G, INC 6,243
400 GENERAL DYNAMICS CORP 34,575
1,100 LOCKHEED MARTIN CORP 108,350
300 NORTHROP GRUMMAN CORP 34,500
1,300 RAYTHEON CO. (CLASS B) 65,650
300 oREMEC, INC 6,750
----------
596,673
----------
AIR TRANSPORTATION -- 0.13%
200 oEAGLE USA AIRFREIGHT, INC 5,700
400 oFEDERAL EXPRESS CORP 24,425
700 SOUTHWEST AIRLINES CO 17,237
600 oUS AIRWAYS GROUP, INC 37,500
----------
84,862
----------
AUTOMOTIVE & RELATED -- 0.44%
800 oAMERICREDIT CORP 22,150
400 COOPER TIRE & RUBBER CO 9,750
400 DANA CORP 19,000
400 EATON CORP 35,700
100 ECHLIN, INC 3,618
900 GENUINE PARTS CO 30,543
800 GOODYEAR TIRE & RUBBER CO 50,900
900 oLO-JACK CORP 13,275
300 MERITOR AUTOMOTIVE, INC 6,318
300 oNAVISTAR INTERNATIONAL CORP 7,443
300 PACCAR, INC 15,750
300 oPENSKE MOTORSPORTS, INC 7,462
800 oRENTERS CHOICE, INC 16,400
400 oSAFESKIN CORP 22,700
400 SAFETY-KLEEN CORP 10,975
200 SNAP-ON, INC 8,725
----------
280,709
----------
BANKS -- 0.85%
800 BARNETT BANKS, INC 57,500
100 CAPITAL ONE FINANCIAL CORP 5,418
600 COMERICA, INC 54,150
1,300 FIFTH THIRD BANCORP 106,275
600 oIMPERIAL CREDIT INDUSTRIES, INC 12,300
500 NORWEST CORP 19,312
300 REPUBLIC NEW YORK CORP 34,256
1,200 SUNTRUST BANKS, INC 85,650
300 SYNOVUS FINANCIAL CORP 9,825
604 U.S. BANCORP 67,610
500 U.S. TRUST CORP 31,312
1,000 WASHINGTON MUTUAL, INC 63,812
----------
547,420
----------
BEVERAGES -- 3.85%
2,100 ANHEUSER BUSCH COS, INC 92,400
300 BROWN FORMAN, INC (CLASS B) 16,575
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
25,800 COCA COLA CO $ 1,718,925
1,300 COCA COLA ENTERPRISES, INC 46,231
200 COORS (ADOLPH) CO (CLASS B) 6,650
16,600 PEPSICO, INC 604,862
----------
2,485,643
----------
BROADCASTERS -- 3.32%
400 ACKERLEY GROUP, INC 6,775
100 oBET HOLDINGS, INC (CLASS A) 5,462
27,120 CBS CORP 798,345
3,400 COMCAST CORP (CLASS A) SPL 107,312
7,750 oCOX RADIO, INC (CLASS A) 311,937
500 oLIN TELEVISION CORP 27,250
3,436 oTELE-COMMUNICATIONS, INC
(CLASS A) 95,993
1,300 oVIACOM, INC (CLASS B) 53,868
19,415 oWESTWOOD ONE, INC 720,781
300 oYOUNG BROADCASTING CORP
-(CLASS A) 11,625
----------
2,139,348
----------
BUSINESS SERVICES -- 1.68%
200 oABACUS DIRECT CORP 8,200
1,600 oACCUSTAFF, INC 36,800
100 oADMINSTAFF, INC 2,587
500 oADVO, INC 9,750
600 oALTERNATIVE RESOURCES CORP 13,837
1,800 oAMERICA ONLINE, INC 160,537
700 oAPOLLO GROUP, INC (CLASS A) 33,075
400 AUTODESK, INC 14,800
800 BLOCK (H&R), INC 35,850
100 oBRYLANE, INC 4,925
200 oCARIBINER INTERNATIONAL, INC 8,900
500 oCATALINA MARKETING CORP 23,125
200 oCIBER, INC 11,600
1,700 COGNIZANT CORP 75,756
700 oCOMPUTER HORIZONS CORP 31,500
100 oCOMPUTER LEARNING
CENTERS, INC 6,125
1,700 oCORRECTIONS CORP OF AMERICA 63,006
500 oDATA TRANSMISSION
NETWORK CORP 14,000
500 DELUXE CORP 17,250
800 oDEVRY, INC 25,500
200 oDIALOGIC CORP 8,750
600 oEDUCATION MANAGEMENT CORP 18,600
300 oENCAD, INC 8,250
200 oEQUITY CORP
INTERNATIONAL 4,625
1,000 oFORE SYSTEMS, INC 15,250
400 oHA-LO INDUSTRIES, INC 10,400
200 HARLAND (JOHN H.) CO 4,200
400 HUNT CORP 9,475
600 oINDUSTRI-MATEMATIK
INTERNATIONAL CORP 17,700
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 39
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
BUSINESS SERVICES -- (Continued)
1,000 INTERPUBLIC GROUP OF COS, INC $ 49,812
400 LAMAR ADVERTISING CO.
(CLASS A) 15,900
400 oMANUGISTICS GROUP, INC 17,850
300 NATIONAL SERVICE
INDUSTRIES, INC 14,868
1,100 oNFO WORLDWIDE, INC 23,031
500 oNOVA CORP/GA 12,500
600 OMNICOM GROUP, INC 25,425
400 oOUTDOOR SYSTEMS, INC 15,350
500 oREMEDY CORP 10,500
2,100 SERVICE CORP INTERNATIONAL 77,568
400 SNYDER COMMUNICATIONS, INC 14,600
400 oSOURCE SERVICES CORP 8,650
300 oSTAFFMARK, INC 9,487
500 oSYLVAN LEARNING SYSTEMS, INC 19,500
400 oTHERMOLASE CORP 4,200
300 oUNITED STATIONERS, INC 14,437
400 oUSCS INTERNATIONAL, INC 6,800
200 oVOLT INFORMATION
SCIENCES, INC 10,775
200 oWACKENHUT CORRECTIONS CORP 5,375
500 oWIND RIVER SYSTEMS, INC 19,843
500 WORLD ACCESS, INC 11,937
----------
1,082,781
----------
CHEMICALS -- MAJOR -- 1.13%
300 AIR PRODUCTS & CHEMICALS, INC 24,675
2,700 DU PONT (E.I.) DE NEMOURS & CO 162,168
400 EASTMAN CHEMICAL CO 23,825
300 GOODRICH (B.F.) CO 12,431
800 HERCULES, INC 40,050
5,800 MONSANTO CO 243,600
500 PPG INDUSTRIES, INC 28,562
1,300 PRAXAIR, INC 58,500
1,400 oQUINTILES TRANSNATIONAL CORP 53,550
300 ROHM & HAAS CO 28,725
960 SOLUTIA, INC 25,620
700 UNION CARBIDE CORP 30,056
----------
731,762
----------
CHEMICALS -- SPECIALTY -- 0.41%
1,600 CROMPTON & KNOWLES CORP 42,400
500 ECOLAB, INC 27,718
800 ENGELHARD CORP 13,900
300 FOSTER WHEELER CORP 8,118
600 GRACE (W.R.) & CO 48,262
300 GREAT LAKES CHEMICAL CORP 13,462
400 MALLINCKRODT, INC 15,200
700 MORTON INTERNATIONAL, INC 24,062
400 NALCO CHEMICAL CORP 15,825
800 RAYCHEM CORP 34,450
600 SIGMA ALDRICH CORP 23,850
----------
267,247
----------
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
COMMUNICATION EQUIPMENT
& SERVICES -- 5.26%
900 o360 COMMUNICATIONS CO $ 18,168
2,700 o3COM CORP 94,331
1,100 oADVANCED FIBRE
COMMUNICATIONS 32,037
800 oANDREW CORP 19,200
300 oAPAC TELESERVICES, INC 4,050
3,750 oASCEND COMMUNICATIONS, INC 91,875
200 oASPECT DEVELOPMENT, INC 10,400
1,300 oCABLETRON SYSTEMS, INC 19,500
300 oCELLSTAR CORP 5,962
600 oCELLULAR COMMUNICATIONS
INTERNATIONAL, INC 28,050
1,000 oCIENA CORP 61,125
18,720 oCISCO SYSTEMS, INC 1,043,640
300 oCOHERENT COMMUNICATIONS
SYSTEMS CORP 8,362
1,900 CORNING, INC 70,537
200 oDAVOX CORP 6,525
1,000 oDIGITAL MICROWAVE CORP 14,500
700 oDSC COMMUNICATIONS CORP 16,800
400 EDIFY CORP 7,500
400 oEMMIS BROADCASTING
CORP (CLASS A) 18,250
5,950 oERICSSON TELEFON (LM)
SERIES B ADR 222,009
9,380 GLOBALSTAR
TELECOMMUNICATIONS LTD 460,792
400 HARRIS CORP 18,350
100 oI2 TECHNOLOGIES, INC 5,275
500 oLEVEL ONE COMMUNICATIONS, INC 14,125
100 oLHS GROUP INC 5,975
6,900 LUCENT TECHNOLOGIES, INC 551,137
300 oMASTEC, INC 6,862
300 oNATURAL MICROSYSTEMS CORP 13,950
2,100 NORTHERN
TELECOMMUNICATIONS LTD (U.S.) 186,900
1,600 oNOVELL, INC 12,000
1,000 oP-COM, INC 17,250
1,400 oPAGING NETWORK, INC 15,050
1,500 oPAIRGAIN TECHNOLOGIES, INC 29,062
200 oPREMISYS COMMUNICATIONS, INC 5,225
600 oQUALCOMM, INC 30,300
400 oROMAC INTERNATIONAL,INC 9,775
500 SCIENTIFIC-ATLANTA, INC 8,375
300 oSIEBEL SYSTEMS, INC 12,543
900 oSITEL CORP 8,212
500 SUPERIOR SERVICES, INC 14,437
1,964 oTELECOM-TCI VENTURES
GROUP (CLASS A) 55,605
1,700 oTELLABS, INC 89,887
600 oUNITED VIDEO SATELLITE
GROUP, INC 17,250
- --------------------------------------------------------------------------------
40 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
COMMUNICATION EQUIPMENT
& SERVICES -- (Continued)
1,000 oVANGUARD CELLULAR
SYSTEMS, INC $ 12,750
----------
3,393,908
----------
COMPUTER SERVICE -- 6.85%
500 oACTEL CORP 6,312
700 oACTIVISION, INC 12,512
6,950 oADAPTEC, INC 258,018
1,100 oADC TELECOMMUNICATIONS, INC 45,925
700 ADOBE SYSTEMS, INC 28,875
300 ARBOR SOFTWARE CORP 12,150
2,500 AUTOMATIC DATA
PROCESSING, INC 153,437
2,200 oBAY NETWORKS, INC 56,237
300 oBELL & HOWELL CO 7,256
700 oBISYS GROUP, INC 23,275
1,000 oBMC SOFTWARE, INC 65,625
600 BOOLE & BABBAGE, INC 17,925
700 oBOSTON TECHNOLOGY, INC 17,587
900 oC-CUBE MICROSYSTEMS, INC 14,681
1,100 oCADENCE DESIGN SYSTEMS, INC 26,950
1,000 oCAMBRIDGE TECHNOLOGY
PARTNERS, INC 41,625
200 oCDW COMPUTER CENTERS, INC 10,425
1,600 oCERIDIAN CORP 73,300
200 oCITRIX SYSTEMS, INC 15,200
1,800 oCOMPUSA, INC 55,800
12,955 COMPUTER ASSOCIATES
INTERNATIONAL, INC 684,995
600 oCOMPUTER SCIENCES CORP 50,100
2,000 oCOMPUWARE CORP 64,000
700 oCSG SYSTEMS INTERNATIONAL, INC 28,000
200 oDOCUMENTUM, INC 8,425
3,200 ELECTRONIC DATA SYSTEMS CORP 140,600
5,200 oEMC CORP 142,675
4,000 FIRST DATA CORP 117,000
500 oHARBINGER CORP. 14,062
2,340 HBO & CO 112,320
300 HEALTHPLAN SERVICES CORP. 6,300
100 oHMT TECHNOLOGY CORP 1,300
400 oHNC SOFTWARE 17,200
300 oHYPERION SOFTWARE CORP 10,725
500 IDENTIX, INC 4,812
300 oINTERGRAPH CORP 3,000
600 oINTERSOLV, INC 12,150
600 oINTUIT, INC 24,750
200 oJDA SOFTWARE GROUP, INC 7,000
1,800 oKEANE, INC 73,125
1,100 oLEARNING CO, INC 17,668
200 oLEARNING TREE
INTERNATIONAL, INC 5,775
300 oLEGATO SYSTEMS, INC 13,200
400 oLYCOS, INC 16,550
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
1,500 oMICROCHIP TECHNOLOGY, INC $ 45,000
9,200 oMICROSOFT CORP 1,189,100
8,200 oORACLE CORP 182,962
1,400 oPARAMETRIC TECHNOLOGY CORP 66,325
1,400 oPEOPLESOFT, INC 54,600
200 oPIXAR INC 4,325
800 oPLATINUM TECHNOLOGY, INC 22,600
400 oPLEXUS CORP 5,950
900 oSECURITY DYNAMICS
TECHNOLOGIES, INC 32,175
200 SHARED MEDICAL SYSTEMS CORP 13,200
900 oSTERLING COMMERCE, INC 34,593
900 oSTRUCTURAL DYNAMICS
RESEARCH CORP 20,250
1,530 oSYNOPSYS, INC 54,712
400 oSYSTEMS & COMPUTER
TECHNOLOGY CORP 19,850
300 oTECHNOLOGY SOLUTIONS CO 7,912
700 oTRANSACTION SYSTEM
ARCHITECTURE 26,600
700 oVERITAS SOFTWARE CORP 35,700
500 oVIASOFT, INC 21,125
600 oVISIO CORP 23,025
600 oYAHOO, INC 41,550
----------
4,420,401
----------
CONGLOMERATES -- 3.16%
4,600 ALLIED SIGNAL, INC 179,112
900 oBLYTH INDUSTRIES, INC 26,943
800 oCONCORD EFS, INC 19,900
1,000 oCOPYTELE, INC 3,500
300 CRANE CO 13,012
500 ITT INDUSTRIES, INC 15,687
400 JOHNSON CONTROLS, INC 19,100
500 LOEWS CORP 53,062
3,000 MINNESOTA MINING &
MANUFACTURING CO 246,187
300 TEXTRON, INC 18,750
200 TRW, INC 10,675
28,130 TYCO INTERNATIONAL LTD 1,267,608
1,900 UNITED TECHNOLOGIES CORP 138,343
900 WHITMAN CORP 23,456
----------
2,035,335
----------
CONSTRUCTION -- MATERIALS &
BUILDERS -- 0.38%
200 CENTEX CORP 12,587
1,300 oCHAMPION ENTERPRISES, INC 26,731
700 FASTENAL CO 26,775
2,000 oGREY WOLF, INC 10,750
200 KAUFMAN & BROAD HOME CORP 4,487
900 MASCO CORP 45,787
900 OAKWOOD HOMES CORP 29,868
600 OWENS CORNING CO 20,475
100 PULTE CORP 4,181
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 41
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
CONSTRUCTION -- MATERIALS &
BUILDERS -- (Continued)
200 SERVICE EXPERTS, INC $ 5,725
900 SHERWIN-WILLIAMS CO 24,975
700 oUSG CORP 34,300
----------
246,641
----------
CONTAINERS -- 0.07%
200 BALL CORP 7,062
700 CROWN CORK & SEAL CO, INC 35,087
----------
42,149
----------
COSMETICS -- 1.26%
300 ALBERTO CULVER CO (CLASS B) 9,618
1,500 AVON PRODUCTS, INC 92,062
6,000 GILLETTE CO 602,625
900 INTERNATIONAL FLAVORS
& FRAGRANCES, INC 46,350
1,000 LAUDER (ESTEE) CO (CLASS A) 51,437
300 NU SKIN ASIA PACIFIC, INC
(CLASS A) 5,475
200 oREVLON, INC (CLASS A) 7,062
----------
814,629
----------
ELECTRICAL EQUIPMENT -- INSTRUMENTS -- 0.81%
6,150 oAPPLIED MATERIALS, INC 185,268
400 oBERG ELECTRICS CORP 9,100
600 oELECTRONICS FOR IMAGING, INC 9,975
700 oGENRAD, INC 21,131
6,250 oKLA-TENCOR CORP 241,406
600 oKULICHE & SOFFA
INDUSTRIES, INC 11,175
700 oNIMBUS CD INTERNATIONAL, INC 7,525
400 PERKIN-ELMER CORP 28,425
100 oSANDISK CORP. 2,031
150 TEKTRONIX, INC 5,953
----------
521,989
----------
ELECTRICAL EQUIPMENT --
COMPONENTS DIVERSIFIED -- 5.86%
800 oADVANCED MICRO DEVICES, INC 14,350
10,187 oALTERA CORP 337,444
900 AMP, INC 37,800
400 oANADIGICS, INC 12,050
500 oANALOG DEVICES, INC 13,843
100 oASYST TECHNOLOGIES, INC 2,175
900 oATMEL CORP 16,706
366 oCOMMSCOPE, INC 4,918
700 oCOMPUTER PRODUCTS, INC 15,837
700 oCOMVERSE TECHNOLOGY, INC 27,300
500 oDII GROUP, INC 13,625
600 oETEC SYSTEMS, INC 27,900
275 oGENERAL SEMICONDUCTOR, INC 3,179
100 oHUTCHINSON TECHNOLOGY, INC 2,187
400 INNOVEX, INC 9,175
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
300 oINTEGRATED CIRCUIT
SYSTEMS, INC $ 8,550
20,890 INTEL CORP 1,467,522
200 oJABIL CIRCUIT, INC 7,950
700 oKENT ELECTRONICS CORP 17,587
200 oLATTICE SEMICONDUCTOR CORP 9,475
7,389 LINEAR TECHNOLOGY CO 425,791
1,200 oLSI LOGIC CORP 23,700
2,000 oMAXIM INTEGRATED PRODUCTS 69,000
15,100 oMICRON TECHNOLOGY, INC 392,600
5,700 MOTOROLA, INC 325,256
500 oMRV COMMUNICATIONS, INC 11,937
500 oNATIONAL SEMICONDUCTOR CORP 12,968
1,100 oNEXTLEVEL SYSTEMS, INC 19,662
500 oPLANTRONICS, INC 20,000
700 oPMC-SIERRA, INC 21,700
200 oRAMBUS, INC 9,150
800 RAMTRON INTERNATIONAL CORP 4,450
500 oROBOTIC VISION SYSTEMS, INC 5,750
500 oSANMINA CORP 33,875
100 oSEMTECH CORP 3,912
200 oSIPEX CORP 6,050
600 oSMART MODULAR
TECHNOLOGIES, INC 13,800
200 oTEKELEC 6,100
4,100 TEXAS INSTRUMENTS, INC 184,500
900 oUNIPHASE CORP 37,237
600 oUNITRODE CORP 12,900
1,000 oVITESSE SEMICONDUCTOR CORP 37,750
400 oWATERS CORP 15,050
1,000 oXILINX, INC 35,062
----------
3,777,773
----------
ELECTRICAL EQUIPMENT -- 4.68%
900 oCHS ELECTRONICS, INC 15,412
2,400 EMERSON ELECTRIC CO 135,450
37,235 GENERAL ELECTRIC CO 2,732,289
300 GENERAL SIGNAL CORP 12,656
300 GRAINGER (W.W.), INC 29,156
1,000 HONEYWELL, INC 68,500
300 oMICREL, INC 8,400
300 oSPECTRIAN CORP 5,775
200 THOMAS & BETTS CORP 9,450
----------
3,017,088
----------
ENVIRONMENTAL CONTROL -- 1.45%
900 oALLIED WASTE INDUSTRIES, INC 20,981
1,000 BROWNING FERRIS
INDUSTRIES, INC 37,000
300 DBT ONLINE, INC 7,481
200 INFORMATION MANAGEMENT
RESOURCES, INC 7,500
600 oINTERNATIONAL NETWORK
SERVICES 13,875
200 oREGISTRY (THE), INC 9,175
- --------------------------------------------------------------------------------
42 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
ENVIRONMENTAL CONTROL -- (Continued)
3,400 oREPUBLIC INDUSTRIES, INC $ 79,262
300 SPLASH TECHNOLOGY
HOLDINGS, INC 6,750
17,325 oU.S.A. WASTE SERVICES, INC 680,006
2,200 WASTE MANAGEMENT, INC 60,500
400 WHITTMAN HART, INC 13,700
----------
936,230
----------
FINANCIAL -- MISCELLANEOUS -- 3.17%
500 AAMES FINANCIAL CORP 6,468
3,800 AMERICAN EXPRESS CO 339,150
600 oAMRESCO, INC 18,150
300 BENEFICIAL CORP 24,937
400 CASE CORP 24,175
1,100 oCATELLUS DEVELOPMENT CORP 22,000
200 oCONTIFINANCIAL CORP 5,037
200 COUNTRYWIDE CREDIT
INDUSTRIES, INC 8,575
400 oE TRADE GROUP, INC 9,200
400 oENVOY CORP 11,650
10,300 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 587,743
600 oFIRSTPLUS FINANCIAL GROUP, INC 23,025
400 FRANKLIN RESOURCES, INC 34,775
5,400 FREDDIE MAC 226,462
900 oGARTNER GROUP, INC (CLASS A) 33,525
3,200 GREEN TREE FINANCIAL CORP 83,800
700 HOUSEHOLD INTERNATIONAL, INC 89,293
500 oIMC MORTGAGE CO 5,937
100 oITT EDUCATIONAL SERVICES, INC 2,231
4,050 MBNA CORP 110,615
1,800 MERRILL LYNCH & CO, INC 131,287
800 MORGAN STANLEY, DEAN WITTER,
DISCOVER 47,300
200 oPAYMENTECH, INC 2,950
2,100 SCHWAB (CHARLES) CORP 88,068
600 SLM HOLDING CORP 83,475
200 oSOUTHERN PACIFIC FUNDING CORP 2,625
1,000 THE MONEY STORE, INC 21,000
----------
2,043,453
----------
FOODS -- 2.97%
3,150 ARCHER DANIELS MIDLAND CO 68,315
1,200 BESTFOODS, INC 129,300
2,600 CAMPBELL SOUP CO 151,125
4,300 CONAGRA, INC 141,093
1,300 GENERAL MILLS, INC 93,112
2,000 oGENERAL NUTRITION COS, INC 68,000
2,500 HEINZ (H.J.) CO 127,031
1,300 HERSHEY FOODS CORP 80,518
2,900 KELLOGG CO 143,912
1,000 NATURES SUNSHINE PRODUCTS, INC 26,000
400 oNBTY, INC 13,350
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
700 PIONEER-HI-BRED
INTERNATIONAL, INC $ 75,075
700 QUAKER OATS CO 36,925
900 RALSTON PURINA CO 83,643
3,900 SARA LEE CORP 219,618
500 oSUIZA FOODS CORP 29,781
400 oTHE CHEESECAKE FACTORY CO 12,200
600 oTWINLAB CORP 14,850
5,200 UNILEVER NV - NY SHARES 324,675
1,000 WRIGLEY (WM) JR CO 79,562
----------
1,918,085
----------
FOREST PRODUCTS -- 0.13%
500 CHAMPION INTERNATIONAL CORP 22,656
500 GEORGIA PACIFIC CORP
(PAC GROUP) 30,375
500 oGEORGIA-PACIFIC CORP
(TIMBER GROUP) 11,343
600 WILLAMETTE INDUSTRIES, INC 19,312
----------
83,686
----------
HEALTHCARE -- DRUGS -- 10.76%
900 oADVANCED TISSUE SCIENCE CO 11,137
600 oAFFYMETRIX, INC 18,675
800 oAGOURON PHARMACEUTICALS, INC 23,500
500 ALGOS PHARMACEUTICAL CORP 15,000
400 ALLERGAN, INC 13,425
700 oALZA CORP 22,268
7,300 AMERICAN HOME PRODUCTS CORP 558,450
3,000 oAMGEN, INC 162,375
200 oBARR LABORATORIES, INC 6,825
1,000 oBIO-TECHNOLOGY GENERAL CORP 10,750
1,100 oBIOGEN, INC 40,012
300 BIOMATRIX, INC 9,000
8,200 BRISTOL MYERS SQUIBB CO 775,925
1,300 oCENTOCOR, INC 43,225
800 oCOLUMBIA LABORATORIES, INC 12,700
600 oCOR THERAPEUTICS, INC 13,500
1,000 oCREATIVE BIOMOLECULES, INC 7,375
735 oCRESCENDO
PHARMACEUTICALS CORP 8,498
700 oCYGNUS, INC 13,912
1,200 oDURA PHARMACEUTICALS, INC 55,050
700 oENZO BIOCHEMICAL, INC 10,237
1,900 oGENSIA SICOR, INC 11,043
17,700 GUILFORD PHARMACEUTICALS, INC 356,212
500 oHUMAN GENOME SCIENCES, INC 19,875
900 oICOS CORP 16,481
500 oIDEC PHARMACEUTICALS CORP 17,187
500 oINCYTE PHARMACEUTICALS, INC 22,500
400 INHALE THERAPEUTIC SYSTEMS 10,400
900 oISIS PHARMACEUTICALS, INC 11,081
600 JONES MEDICAL INDUSTRIES, INC 22,950
1,000 oLIGAND PHARMACEUTICALS CO
(CLASS A) 12,875
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 43
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
HEALTHCARE -- DRUGS -- (Continued)
10,000 LILLY (ELI) & CO $ 696,250
400 oMEDICIS PHARMACEUTICAL
CORP (CLASS A) 20,450
600 oMEDIMMUNE, INC 25,725
13,800 MERCK & CO, INC 1,466,250
700 oNEXSTAR PHARMACEUTICALS, INC 7,962
17,050 PFIZER, INC 1,271,290
2,900 PHARMACIA & UPJOHN, INC 106,212
300 oPROTEIN DESIGN
LABORATORIES, INC 12,000
400 oSANGSTAT MEDICAL CORP 16,200
8,000 SCHERING-PLOUGH CORP 497,000
700 oSEPRACOR, INC 28,043
300 THERAGENICS CORP 10,800
700 oVERTEX PHARMACEUTICALS, INC 23,100
800 oVICAL, INC 9,600
2,700 WARNER-LAMBERT CO 334,800
2,500 oWATSON PHARMACEUTICALS, INC 81,093
----------
6,939,218
----------
HEALTHCARE -- HOSPITAL SUPPLY -- 0.20%
600 oAMERISOURCE HEALTH CORP
(CLASS A) 34,950
1,100 CARDINAL HEALTH, INC 82,637
400 U.S. SURGICAL CORP 11,725
----------
129,312
----------
HEALTHCARE -- OTHER -- 4.85%
7,700 ABBOTT LABORATORIES CO 504,831
500 oACCESS HEALTH, INC 14,687
500 oARTERIAL VASCULAR
ENGINEERING, INC 32,500
300 BARD (C.R.), INC 9,393
300 BAUSCH & LOMB, INC 11,887
2,400 BAXTER INTERNATIONAL, INC 121,050
1,100 BECTON DICKINSON & CO 55,000
1,200 BIOMET, INC 30,750
1,600 oBOSTON SCIENTIFIC CORP 73,400
300 oCOOPER COMPANIES, INC 12,262
400 oCURATIVE HEALTH SERVICES, INC 12,150
200 oCYTYC CORP 4,975
18,725 DENTSPLY INTERNATIONAL, INC 571,112
1,500 GUIDANT CORP 93,375
400 oGULF SOUTH MEDICAL
SUPPLY, INC 14,900
400 oHOLOGIC, INC 8,275
1,000 oIMATRON, INC 2,312
14,800 JOHNSON & JOHNSON CO 974,950
300 oMEDQUIST, INC 10,425
4,700 MEDTRONIC, INC 245,868
400 MILLIPORE CORP 13,575
300 oMINIMED, INC 11,662
900 oNEOPATH, INC 11,700
600 ORGANOGENESIS, INC 15,825
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
1,000 PALL CORP $ 20,687
500 oPATHOGENESIS CORP 18,562
264 oPHARMERICA, INC 2,832
1,000 oPHYSICIAN SALES & SERVICE, INC 21,500
800 oPHYSIO-CONTROL
INTERNATIONAL CORP 12,700
700 oRESPIRONICS, INC 15,662
600 oSOFAMOR DANEK GROUP, INC 39,037
200 oSPINE-TECH, INC 10,287
1,100 oST. JUDE MEDICAL, INC 33,550
900 STAAR SURGICAL CO 15,468
900 oSTERIS CORP 43,425
500 oTHERMO CARDIOSYSTEMS, INC 13,375
900 oVIVUS, INC 9,562
2,000 ZILA, INC 11,875
----------
3,125,386
----------
HEALTHCARE -- SERVICE -- 1.38%
200 ALTERNATIVE LIVING
SERVICES, INC 5,912
600 oBEVERLY ENTERPRISES, INC (NEW) 7,800
200 CAREMATRIX CORP 5,750
3,700 COLUMBIA/HCA
HEALTHCARE CORP 109,612
1,600 oCOVANCE, INC 31,800
900 FIRST HEALTH GROUP CORP 46,012
2,400 oFOUNDATION HEALTH
SYSTEMS (CLASS A) 53,700
1,300 oHEALTH MANAGEMENT
ASSOCIATES, INC 32,825
3,500 oHEALTHSOUTH CORP 97,125
900 oHUMANA, INC 18,675
800 oLINCARE HOLDINGS, INC 45,600
400 oMAGELLAN HEALTH
SERVICES, INC 8,600
400 MANOR CARE, INC 14,000
100 oMEDIQ, INC 1,112
2,000 oMEDPARTNERS, INC 44,750
1,100 oMID ATLANTIC MEDICAL
SERVICES, INC 14,025
500 oNATIONAL SURGERY
CENTERS, INC 13,125
900 oORTHODONTIC CENTERS OF
AMERICA, INC 14,962
1,200 oOXFORD HEALTH PLANS, INC 18,675
300 oPEDIATRIX MEDICAL GROUP, INC 12,825
1,800 oPHYCOR, INC 48,600
700 oPRIME MEDICAL SERVICES, INC 9,668
600 oRENAL CARE GROUP, INC 19,200
600 oRENAL TREATMENT CENTERS, INC 21,675
400 oRES-CARE, INC 11,600
200 SABRATEK CORP 5,750
1,700 oTENET HEALTHCARE CORP 56,312
1,100 oTOTAL RENAL CARE
HOLDINGS, INC 30,250
- --------------------------------------------------------------------------------
44 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
HEALTHCARE -- SERVICE -- (Continued)
500 oTRANSITION SYSTEMS, INC $ 11,062
1,100 UNITED HEALTHCARE CORP 54,656
800 oVENCOR, INC 19,550
300 oVISX, INC 6,637
----------
891,845
----------
HOUSEHOLD -- CONSUMER ELECTRONICS -- 0.01%
800 oZENITH ELECTRONICS CORP 4,350
----------
HOUSEHOLD -- DURABLE GOODS -- 0.25%
500 BLACK & DECKER CORP 19,531
100 oBUSH INDUSTRIES, INC (CLASS A) 2,600
200 oCORT BUSINESS SERVICES CORP 7,962
200 LIBBEY, INC 7,575
500 MAYTAG CO 18,656
1,300 NEWELL COS, INC 55,250
300 ROYAL APPLIANCE
MANUFACTURING CO 1,987
600 STANLEY WORKS CO 28,312
400 WHIRLPOOL CORP 22,000
----------
163,873
----------
HOUSEHOLD -- PRODUCTS -- 2.83%
1,400 oBRIGHTPOINT, INC 19,425
200 oCHURCH & DWIGHT CO, INC 5,612
800 CLOROX CO 63,250
2,700 COLGATE PALMOLIVE CO 198,450
1,200 DIAL CORP 24,975
200 FIRST BRANDS CORP 5,387
5,100 KIMBERLY-CLARK CORP 251,493
15,200 PROCTER & GAMBLE CO 1,213,150
1,200 RUBBERMAID, INC 30,000
500 TUPPERWARE CORP 13,937
----------
1,825,679
----------
INSURANCE -- BROKERS & OTHER -- 0.33%
600 oABR INFORMATION
SERVICES, INC 14,325
300 oBLANCH (E.W.) HOLDINGS, INC 10,331
500 oCCC INFORMATION SERVICES
GROUP, INC 9,875
130 oCHOICEPOINT, INC 6,207
1,300 EQUIFAX, INC 46,068
100 oINSIGNIA FINANCIAL GROUP, INC 2,300
1,300 MARSH & MCLENNAN COS, INC 96,931
400 MBIA, INC 26,725
----------
212,762
----------
INSURANCE -- LIFE -- 0.44%
900 AON CORP 52,762
1,000 CONSECO, INC 45,437
400 JEFFERSON-PILOT CORP 31,150
200 PROVIDIAN FINANCIAL CORP 9,037
1,650 SUNAMERICA, INC 70,537
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
800 TORCHMARK CORP $ 33,650
800 UNUM CORP 43,500
----------
286,073
----------
INSURANCE -- MULTI-LINE, PROPERTY
& CASUALTY -- 1.05%
100 AFLAC, INC 5,112
2,000 AMERICAN INTERNATIONAL
GROUP, INC 217,500
500 GENERAL REINSURANCE CORP 106,000
700 MGIC INVESTMENT CORP 46,550
400 TRANSAMERICA CORP 42,600
4,817 TRAVELERS GROUP, INC 259,515
----------
677,277
----------
LEISURE TIME -- 2.88%
300 ACTION PERFORMANCE
COS, INC 11,362
100 oANCHOR GAMING CO 5,575
500 BRUNSWICK CORP 15,156
700 oCAPSTAR HOTEL CO 24,018
15,710 CARNIVAL CORP (CLASS A) 869,941
6,900 DISNEY (WALT) CO 683,531
900 DOVER DOWNS
ENTERTAINMENT, INC 20,643
500 oFLORIDA PANTHERS
HOLDINGS, INC 8,625
700 oGTECH HOLDINGS CORP 22,356
600 oHARRAHS ENTERTAINMENT, INC 11,325
300 HASBRO, INC 9,450
500 oINTERSTATE HOTELS CO 17,531
300 JOSTENS, INC 6,918
2,700 MATTEL, INC 100,575
100 oMIDWAY GAMES, INC 1,818
700 oREGAL CINEMAS, INC 19,512
500 oSPEEDWAY MOTORSPORTS, INC 12,406
600 oVAIL RESORTS, INC 15,562
----------
1,856,304
----------
MACHINERY -- 0.57%
200 AEROQUIP-VICKERS, INC 9,812
200 BRIGGS & STRATTON CORP 9,712
200 CINCINNATI MILACRON, INC 5,187
900 oCOGNEX CORP 24,525
700 oDELTA & PINE LAND CO 21,350
1,000 DOVER CORP 36,125
200 oFMC CORP 13,462
200 HARNISCHFEGER INDUSTRIES, INC 7,062
800 ILLINOIS TOOL WORKS, INC 48,100
900 INGERSOLL-RAND CO 36,450
300 oINTEGRATED PROCESS
EQUIPMENT CORP 4,725
2,000 oNOVELLUS SYSTEMS, INC 64,625
600 PARKER-HANNIFIN CORP 27,525
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 45
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
MACHINERY -- (Continued)
1,100 oTHERMO ELECTRON CORP $ 48,950
300 TIMKEN CO 10,312
----------
367,922
----------
METALS -- ALUMINUM -- 0.14%
800 ALCAN ALUMINIUM CO LTD (U.S.) 22,100
1,000 ALUMINUM CO OF AMERICA 70,375
----------
92,475
----------
METALS -- GOLD -- 0.20%
2,100 BARRICK GOLD CORP 39,112
1,400 BATTLE MOUNTAIN GOLD CO 8,225
900 oECHO BAY MINES LTD (U.S.) 2,193
1,600 FREEPORT-MCMORAN COPPER
& GOLD INC (CLASS B) 25,200
1,300 NEWMONT MINING CORP 38,187
1,200 PLACER DOME, INC 15,225
----------
128,142
----------
METALS -- NON-FERROUS -- 0.02%
900 INCO LTD CO 15,300
----------
METALS -- STEEL -- 0.12%
1,400 ALLEGHENY TELEDYNE, INC 36,225
300 oARMCO, INC 1,481
600 oBETHLEHEM STEEL CORP 5,175
500 NUCOR CORP 24,156
500 WORTHINGTON INDUSTRIES, INC 8,250
----------
75,287
----------
MISCELLANEOUS MATERIALS & COMMODITIES -- 0.01%
500 oOAKLEY, INC 4,531
----------
OFFICE EQUIPMENT -- 4.19%
100 oAPPLIED GRAPHICS
TECHNOLOGIES, INC 5,325
1,400 oASPECT
TELECOMMUNICATIONS CORP 29,225
900 AVERY DENNISON CORP 40,275
7,417 COMPAQ COMPUTER CORP 418,596
200 oCONSOLIDATED GRAPHICS, INC 9,325
3,000 oDELL COMPUTER CORP 252,000
900 oDIGITAL EQUIPMENT CORP 33,300
9,000 HEWLETT-PACKARD CO 562,500
800 IKON OFFICE SOLUTIONS, INC 22,500
4,300 INTERNATIONAL BUSINESS
MACHINES CORP 449,618
3,200 oIOMEGA CORP 39,800
100 oKNOLL, INC 3,212
200 oMICROS SYSTEMS, INC 9,000
700 MILLER (HERMAN), INC 38,193
800 oPAXAR CORP 11,850
1,200 PITNEY BOWES, INC 107,925
11,600 oSEAGATE TECHNOLOGY, INC 223,300
1,000 oSILICON GRAPHICS, INC 12,437
4,000 oSUN MICROSYSTEMS, INC 159,500
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
1,500 oU.S. OFFICE PRODUCTS CO $ 29,437
1,000 oUNISYS CORP 13,875
1,800 oVIKING OFFICE PRODUCTS, INC 39,262
2,600 XEROX CORP 191,912
----------
2,702,367
----------
PAPER -- 0.12%
300 BEMIS, INC 13,218
400 oBUCKEYE TECHNOLOGIES, INC 18,500
500 FORT JAMES CORP 19,125
300 MEAD CORP 8,400
300 TEMPLE-INLAND, INC 15,693
----------
74,936
----------
PETROLEUM -- EXPLORATION &
PRODUCTION -- 0.51%
1,005 BURLINGTON RESOURCES, INC 45,036
749 oEEX CORP 6,787
600 oEVI, INC 31,050
2,300 oFALCON DRILLING CO, INC 80,643
2,900 oHARKEN ENERGY CORP 20,300
300 KERR-MCGEE CORP 18,993
200 oOCEAN ENERGY, INC 9,862
900 oORYX ENERGY CO 22,950
300 PENNZOIL CO 20,043
600 oSANTA FE ENERGY RESOURCES, INC 6,750
2,600 UNION PACIFIC RESOURCES
GROUP, INC 63,050
----------
325,464
----------
PETROLEUM -- INTEGRATED -- 0.25%
400 ASHLAND, INC 21,475
1,500 PHILLIPS PETROLEUM CO 72,937
91 TEXACO, INC 4,948
1,600 UNOCAL CORP 62,100
----------
161,460
----------
PETROLEUM -- SERVICE -- 3.12%
900 BAKER HUGHES, INC 39,262
400 oCLIFFS DRILLING CO 19,950
9,775 DIAMOND OFFSHORE
DRILLING, INC 470,421
1,000 DRESSER INDUSTRIES, INC 41,937
800 ENSCO INTERNATIONAL, INC 26,800
500 FLUOR CORP 18,687
1,500 oGLOBAL INDUSTRIES LTD 25,500
2,100 HALLIBURTON CO 109,068
200 HELMERICH & PAYNE, INC 13,575
13,344 IHC CALAND NV 692,467
300 oKEY ENERGY GROUP, INC 6,506
200 oMARINE DRILLING CO, INC 4,150
200 oMAVERICK TUBE CORP 5,062
300 MCDERMOTT INTERNATIONAL, INC 10,987
1,000 oNATIONAL-OILWELL, INC 34,187
200 oNEWPARK RESOURCES, INC 3,500
700 oNOBLE DRILLING CORP 21,437
- --------------------------------------------------------------------------------
46 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
PETROLEUM -- SERVICE -- (Continued)
300 oPATTERSON ENERGY INC $ 11,606
1,200 oPRIDE INTERNATIONAL, INC 30,300
500 oROWAN COS, INC 15,250
4,000 SCHLUMBERGER LTD 322,000
600 SEITEL, INC 10,275
1,200 oTUBOSCOPE, INC 28,875
300 oUNOVA, INC 4,931
600 oVERITAS DGC, INC 23,700
300 WESTERN ATLAS, INC 22,200
----------
2,012,633
----------
PHOTOGRAPHY -- 0.24%
1,600 EASTMAN KODAK CO 97,300
500 oPANAVISION, INC 12,906
500 oPHOTRONICS, INC 12,125
300 POLAROID CORP 14,606
700 oPRESSTEK, INC 18,025
----------
154,962
----------
PROPERTY -- REAL ESTATE -- 0.00%
200 oGRUBB & ELLIS CO 2,737
----------
PUBLISHING -- NEWSPAPER -- 0.52%
700 AMERICAN MEDIA, INC (CLASS A) 5,425
500 DOW JONES & CO, INC 26,843
200 oEXPRESS SCRIPTS, INC 12,000
2,200 GANNETT CO, INC 135,987
800 oJOURNAL REGISTER CO 16,800
200 KNIGHT-RIDDER, INC 10,400
500 NEW YORK TIMES CO (CLASS A) 33,062
500 TIMES MIRROR CO SERIES A 30,750
700 TRIBUNE CO 43,575
500 oVALASSIS COMMUNICATIONS, INC 18,500
----------
333,342
----------
PUBLISHING -- OTHER -- 0.46%
400 AMERICAN GREETINGS CORP
(CLASS A) 15,650
400 oBIG FLOWER HOLDINGS, INC 9,650
200 DONNELLEY (R.R.) & SONS CO 7,450
1,300 DUN & BRADSTREET CORP 40,218
100 FACTSET RESEARCH SYSTEMS, INC 3,075
400 HARCOURT GENERAL, INC 21,900
300 INFINITY FINANCIAL
TECHNOLOGY, INC 6,281
600 MCGRAW HILL COS, INC 44,400
300 MEREDITH CORP 10,706
600 MERRILL CORP 13,950
2,000 TIME WARNER, INC 124,000
----------
297,280
----------
RAILROAD -- 0.07%
500 BURLINGTON NORTHERN
SANTA FE CORP 46,468
----------
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
RESTAURANTS & HOTELS -- 1.31%
800 APPLE SOUTH, INC $ 10,500
600 APPLEBEES INTERNATIONAL, INC 10,837
600 oBRISTOL HOTEL CO 17,437
500 oCONSOLIDATED PRODUCTS, INC 8,187
900 DARDEN RESTAURANTS, INC 11,250
300 oFOODMAKER, INC 4,518
2,000 HILTON HOTELS CORP 59,500
500 oHOST MARRIOTT SERVICES CORP 7,437
700 oITT CORP 58,012
300 oLANDRYS SEAFOOD
RESTAURANTS, INC 7,200
1,000 MARRIOTT INTERNATIONAL, INC 69,250
6,300 MCDONALDS CORP 300,825
1,200 oNPC INTERNATIONAL, INC 14,550
700 oOUTBACK STEAKHOUSE, INC 20,125
600 oPAPA JOHNS
INTERNATIONAL, INC 20,925
800 oPLANET HOLLYWOOD, INC
(CLASS A) 10,600
1,895 oPROMUS HOTEL CORP (NEW) 79,590
1,500 SYSCO CORP 68,343
1,260 oTRICON GLOBAL
RESTAURANTS, INC 36,618
800 WENDYS INTERNATIONAL, INC 19,250
300 WYNDHAM HOTEL CORP 12,112
----------
847,066
----------
RETAIL -- FOOD -- 0.67%
1,400 ALBERTSONS, INC 66,325
1,500 AMERICAN STORES CO 30,843
400 GIANT FOOD, INC (CLASS A) 13,475
200 GREAT ATLANTIC &
PACIFIC TEA CO, INC 5,937
2,100 oKROGER CO 77,568
300 oQUALITY FOOD CENTERS, INC 20,100
2,400 oSAFEWAY, INC 151,800
900 oSTARBUCKS CORP 34,537
300 SUPERVALU, INC 12,562
400 WINN DIXIE STORES, INC 17,475
----------
430,622
----------
RETAIL -- GENERAL MERCHANDISE -- 4.51%
100 99 CENTS ONLY STORES 2,950
200 oABERCROMBIE & FITCH CO.
(CLASS A) 6,250
1,600 oAUTOZONE, INC 46,400
600 oBARNES & NOBLE, INC 20,025
1,300 oBED BATH & BEYOND, INC 50,050
600 oBORDERS GROUP, INC 18,787
7,764 oCENDANT CORP 266,899
400 oCENTRAL GARDEN & PET CO 10,500
600 oCHARMING SHOPPES, INC 2,812
700 CIRCUIT CITY STORES-
CIRCUIT CITY GROUP 24,893
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 47
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
RETAIL -- GENERAL MERCHANDISE -- (Continued)
400 COLE NATIONAL CORP (CLASS A) $ 11,975
1,200 oCONSOLIDATED STORES CORP 52,725
1,800 oCOSTCO COS, INC 80,325
1,400 CVS CORP 89,687
1,500 DAYTON HUDSON CORP 101,250
600 DILLARDS, INC (CLASS A) 21,150
800 oDOLLAR TREE STORES, INC 33,100
100 ETHAN ALLEN INTERIORS, INC 3,856
1,200 oFEDERATED DEPARTMENT
STORES, INC 51,675
200 oGADZOOKS, INC 4,200
3,300 GAP, INC 116,943
400 GUITAR CENTER, INC 9,200
7,700 HOME DEPOT, INC 453,337
400 oLANDS END, INC 14,025
1,300 LIMITED, INC 33,150
200 oLINENS N THINGS, INC 8,725
200 LONGS DRUG STORES CORP 6,425
1,300 LOWES COS, INC 61,993
500 oMAC FRUGALS BARGAINS
CLOSE-OUTS, INC 20,562
500 MAY DEPARTMENT STORES CO 26,343
400 oMENS WAREHOUSE, INC 13,900
400 oMSC INDUSTRIAL DIRECT CO
(CLASS A) 16,950
500 oNEIMAN-MARCUS GROUP, INC 15,125
200 NORDSTROM, INC 12,075
400 PEP BOYS- MANNY, MOE, &
JACK CO 9,550
1,500 oPETSMART, INC 10,875
900 oREXALL SUNDOWN, INC 27,168
1,000 RITE AID CORP 58,687
400 oSAMSONITE CORP 12,650
2,100 SEARS ROEBUCK & CO 95,025
1,800 oSTAPLES, INC 49,950
400 oSTEIN MART, INC 10,700
300 STRIDE RITE CORP 3,600
1,000 oSUNGLASS HUT
INTERNATIONAL, INC 6,312
600 TANDY CORP 23,137
100 oTIMBERLAND CO 5,806
1,800 TJX COS, INC 61,875
1,600 oTOYS R US, INC 50,300
14,500 WAL-MART STORES, INC 571,843
5,000 WALGREEN CO 156,875
500 oWILLIAMS-SONOMA, INC 20,937
300 oWILMAR INDUSTRIES, INC 7,162
800 oWOOLWORTH CORP 16,300
----------
2,907,014
----------
TEXTILE & APPAREL -- 0.40%
300 oCONVERSE, INC 1,800
400 oFRUIT OF THE LOOM, INC
(CLASS A) 10,250
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
1,000 oGENESCO, INC $ 12,750
400 LIZ CLAIBORNE, INC 16,725
2,400 NIKE, INC (CLASS B) 94,200
400 oPACIFIC SUNWEAR CALIF INC 11,825
500 oREEBOK INTL LTD 14,406
200 RUSSELL CORP 5,312
700 oSTAGE STORES, INC 26,162
800 VF CORP 36,750
600 oWESTPOINT STEVENS, INC 28,350
----------
258,530
----------
TOBACCO -- 2.13%
300 oCONSOLIDATED CIGAR
HOLDINGS, INC 8,268
1,500 DIMON, INC 39,375
600 oGENERAL CIGAR HOLDINGS, INC
(CLASS A) 12,787
27,300 PHILIP MORRIS COS, INC 1,237,031
2,000 UST, INC 73,875
----------
1,371,336
----------
TRUCKERS & SHIPPING -- 0.10%
500 oBUDGET GROUP, INC 17,281
200 CALIBER SYSTEM, INC 9,737
1,800 LAIDLAW, INC 24,525
400 RYDER SYSTEM, INC 13,100
----------
64,643
----------
UTILITIES -- ELECTRIC -- 0.18%
900 oAES CORP 41,962
600 DUKE ENERGY CORP 33,225
800 oFIRSTENERGY CORP 23,200
300 FPL GROUP, INC 17,756
12 TEXAS UTILITIES CO 498
----------
116,641
----------
UTILITIES -- GAS & PIPELINE -- 0.42%
1,000 oAMERICAN STANDARD COS, INC 38,312
600 COASTAL CORP 37,162
300 COLUMBIA GAS SYSTEMS, INC 23,568
1,700 ENRON CORP 70,656
300 SONAT, INC 13,725
500 TENNECO, INC 19,750
500 oTRIARC COS, INC 13,625
1,800 WILLIAMS COS, INC 51,075
----------
267,873
----------
UTILITIES -- OTHER -- 0.03%
400 oBILLING INFORMATION
CONCEPTS CORP 19,200
----------
UTILITIES -- TELEPHONE -- 4.88%
500 oADTRAN, INC 13,750
5,200 oAIRTOUCH
COMMUNICATIONS, INC 216,125
1,100 ALLTEL CORP 45,168
- --------------------------------------------------------------------------------
48 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS GROWTH EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
UTILITIES -- TELEPHONE -- (Continued)
11,495 AT & T CORP $ 704,068
20 BELL ATLANTIC CORP 1,820
1,000 FRONTIER CORP 24,062
700 GTE CORP 36,575
3,900 MCI COMMUNICATIONS CORP 166,968
1,400 oPAGEMART WIRELESS, INC
(CLASS A) 11,025
1,000 SBC COMMUNICATIONS, INC 73,250
1,100 SPRINT CORP 64,487
7,300 oTELEPORT COMMUNICATIONS
GROUP, INC (CLASS A) 400,587
3,400 oU.S. WEST MEDIA GROUP, INC 98,175
600 oWEST TELESERVICES CORP 7,200
42,445 oWORLDCOM, INC 1,283,961
-----------
3,147,221
-----------
TOTAL COMMON STOCK
(COST $63,286,773) $63,805,343
-----------
TOTAL PORTFOLIO
(COST $63,286,773) $63,805,343
===========
--------------------
o NON-INCOME PRODUCING
THE COST OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE
SAME AS THE AMOUNT DISCLOSED ABOVE.
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 49
<PAGE>
TIAA-CREF MUTUAL FUNDS STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
DECEMBER 31, 1997 SUMMARY BY INDUSTRY
- --------------------------------------------------------------------------------
VALUE %
- --------------------------------------------------------------------------------
PREFERRED STOCK
COMMUNICATION EQUIPMENT
& SERVICES $ 127,922 0.27%
COMPUTER SERVICE 130,920 0.27
----------- ------
TOTAL PREFERRED STOCK
(COST $239,893) 258,842 0.54
----------- ------
COMMON STOCK
AEROSPACE 203,304 0.43
AIR TRANSPORTATION 516,686 1.08
AUTOMOTIVE & RELATED 2,471,804 5.18
BANKS 7,629,130 15.97
BEVERAGES 903,368 1.89
BROADCASTERS 262,383 0.55
BUSINESS SERVICES 461,410 0.97
CHEMICALS -- MAJOR 995,876 2.09
CHEMICALS -- SPECIALTY 191,044 0.40
COMMUNICATION EQUIPMENT
& SERVICES 700,221 1.47
COMPUTER SERVICE 151,970 0.32
CONGLOMERATES 598,765 1.25
CONSTRUCTION -- MATERIALS
& BUILDERS 1,137,599 2.38
COSMETICS 195,732 0.41
ELECTRICAL EQUIPMENT --
INSTRUMENTS 353,479 0.74
ELECTRICAL EQUIPMENT --
COMPONENTS DIVERSIFIED 658,284 1.38
ELECTRICAL EQUIPMENT 1,541,296 3.23
FINANCIAL -- MISCELLANEOUS 470,291 0.98
FOODS 1,480,707 3.10
FOREST PRODUCTS 189,292 0.40
HEALTHCARE -- DRUGS 4,292,353 8.99
HOUSEHOLD -- CONSUMER
ELECTRONICS 705,883 1.48
HOUSEHOLD -- DURABLE GOODS 170,604 0.36
INSURANCE -- LIFE 315,120 0.66
- --------------------------------------------------------------------------------
VALUE %
- --------------------------------------------------------------------------------
INSURANCE -- MULTI-LINE,
PROPERTY & CASUALTY $ 2,424,767 5.08%
LEISURE TIME 394,989 0.83
MACHINERY 1,267,467 2.65
METALS -- NON-FERROUS 501,254 1.05
METALS -- STEEL 310,614 0.65
MISCELLANEOUS MATERIALS
& COMMODITIES 124,707 0.26
PAPER 66,942 0.14
PETROLEUM -- EXPLORATION
& PRODUCTION 256,553 0.54
PETROLEUM -- INTEGRATED 2,534,819 5.31
PETROLEUM -- SERVICE 349,807 0.73
PHOTOGRAPHY 269,187 0.56
PROPERTY -- REAL ESTATE 746,878 1.56
PUBLISHING -- NEWSPAPER 219,046 0.46
PUBLISHING -- OTHER 397,001 0.83
RAILROAD 550,765 1.15
RESTAURANTS & HOTELS 429,580 0.90
RETAIL -- FOOD 763,147 1.60
RETAIL -- GENERAL MERCHANDISE 1,134,075 2.37
TEXTILE & APPAREL 441,645 0.92
TOBACCO 221,507 0.46
TRADING COMPANIES 284,830 0.60
TRUCKERS & SHIPPING 747,218 1.56
UTILITIES -- ELECTRIC 1,982,971 4.15
UTILITIES -- GAS & PIPELINE 171,096 0.36
UTILITIES -- OTHER 286,441 0.60
UTILITIES -- TELEPHONE 3,679,981 7.71
----------- ------
TOTAL COMMON STOCK
(COST $52,542,882) 47,153,888 98.74
----------- ------
TOTAL PORTFOLIO
(COST $52,782,775) 47,412,730 99.28
OTHER ASSETS & LIABILITIES, NET 345,095 0.72
----------- ------
NET ASSETS $47,757,825 100.00%
=========== ======
- --------------------------------------------------------------------------------
50 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
DECEMBER 31, 1997 SUMMARY BY COUNTRY
- --------------------------------------------------------------------------------
VALUE %
- --------------------------------------------------------------------------------
AUSTRALIA $ 1,252,211 2.62%
AUSTRIA 222,435 0.47
BELGIUM 521,916 1.09
DENMARK 425,062 0.89
FINLAND 269,598 0.56
FRANCE 3,906,615 8.18
GERMANY 4,809,375 10.07
HOLLAND 2,663,945 5.58
HONG KONG 1,204,832 2.52
IRELAND 178,918 0.37
ITALY 1,836,558 3.85
JAPAN 11,478,576 24.04
MALAYSIA 448,834 0.94
NEW ZEALAND 142,059 0.30
NORWAY 1,044,126 2.21
PORTUGAL 244,657 0.51
SINGAPORE 373,032 0.78
SPAIN 1,152,381 2.41
SWEDEN 1,117,199 2.34
SWITZERLAND 3,523,059 7.38
UNITED KINGDOM 10,586,342 22.17
----------- -----
TOTAL PORTFOLIO $47,412,730 99.28%
=========== =====
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 51
<PAGE>
TIAA-CREF MUTUAL FUNDS STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
PREFERRED STOCK -- 0.54%
COMMUNICATION EQUIPMENT & SERVICES -- 0.27%
1,800 NOKIA AB SERIES A $ 127,922
----------
COMPUTER SERVICE -- 0.27%
400 SAP AG. 130,920
----------
TOTAL PREFERRED STOCK
(COST $239,893) 258,842
----------
COMMON STOCK -- 98.74%
AEROSPACE -- 0.43%
3,600 BRITISH AEROSPACE PLC 102,771
26,000 ROLLS ROYCE LTD 100,533
----------
203,304
----------
AIR TRANSPORTATION -- 1.08%
11,500 oAIRTOURS PLC 233,687
9,900 BRITISH AIRWAYS PLC 91,220
44,000 CATHAY PACIFIC AIRWAYS LTD 35,775
5,000 oDEUTSCHE LUFTHANSA AG (REGD) 95,937
22,000 oJAPAN AIRLINES CO LTD 60,067
----------
516,686
----------
AUTOMOTIVE & RELATED -- 5.18%
7,000 BRIDGESTONE CORP 152,359
4,000 DAIMLER BENZ AG. 280,749
8,000 DENSO CORP 144,591
33,200 FIAT S.P.A. 96,614
5,500 GKN PLC 112,849
8,000 HONDA MOTOR CO LTD 294,721
1,500 MICHELIN S.A. (CLASS B) 75,550
23,000 NISSAN MOTOR CO LTD 95,522
900 PEUGEOT S.A. 113,549
34,900 PIRELLI S.P.A. 93,369
28,000 TOYOTA MOTOR CORP 805,407
200 VOLKSWAGEN AG. 112,566
3,500 VOLVO AB SERIES B FREE 93,958
----------
2,471,804
----------
BANKS -- 15.97%
11,400 ABBEY NATIONAL PLC 204,644
11,200 ABN-AMRO HOLDINGS NV 218,229
5,000 oALMANIJ NV 252,362
2,100 ARGENTARIA S.A. 127,722
20,000 ASAHI BANK LTD 81,525
27,500 BANCA COMMERCIALE
ITALIANA S.P.A. 95,659
5,000 BANCO CENTRALE
HISPANOAMERICANO S.A. 121,706
5,000 BANCO SANTANDER S.A. 166,977
35,000 BANK OF TOKYO MITSUBISHI LTD 484,536
1,600 BANQIE DE PARIBAS S.A. 139,098
2,600 BANQUE NATIONALE DE PARIS 138,257
11,408 BARCLAYS PLC 303,710
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
3,600 BAYERISCHE HYPOTHEKEN-UND
WECHSEL-BANK $ 175,791
3,200 BAYERISCHE VEREINSBANK AG. 209,472
23,500 oCHRISTIANIA BANK OG
KREDITKASSE 94,992
28,000 COMMERCE ASSET HOLDINGS
BERHAD 13,380
1,900 CREDIT SUISSE GROUP (REGD) 294,401
29,500 CREDITO ITALIANO S.P.A. 91,019
4,400 DEUTSCHE BANK AG. 310,782
4,900 oDRESDNER BANK AG. 226,190
22,000 FUJI BANK LTD 89,339
15,400 HANG SENG BANK LTD 148,568
12,700 HSBC HOLDINGS PLC 313,866
6,100 HSBC HOLDINGS LTD
(UNITED KINGDOM) 156,576
20,000 INDUSTRIAL BANK OF JAPAN LTD 143,053
12,300 INSTITUTO BANCARIO
SAN PAOLO DI TURINO 117,573
10,900 ISTITUTO MOBILIARE
ITALIANO S.P.A. 129,468
18,000 JOYO BANK 63,681
38,269 LLOYDS TSB GROUP PLC 495,556
12,000 MALAYAN BANKING BERHAD 34,837
17,200 MEDIOBANCA S.P.A. 135,129
11,000 MITSUBISHI TRUST &
BANKING CORP 110,828
13,000 MITSUI TRUST & BANKING CO LTD 25,295
12,400 NATIONAL AUSTRALIA BANK LTD 173,141
22,000 OVERSEAS-CHINESE BANKING
CORP LTD (FR) 127,957
39,000 RHB CAPITAL BERHAD 18,836
9,000 ROYAL BANK OF SCOTLAND PLC 114,470
28,000 SAKURA BANK LTD 80,325
10,000 SHIZUOKA BANK LTD 107,674
4,700 SKANDINAVISKA ENSKILDA
BANKEN SERIES A 59,532
1,100 SOCIETE GENERALE S.A. 149,936
24,000 SUMITOMO BANK LTD 275,032
2,200 SVENSKA HANDELSBANKEN
SERIES A 76,111
700 SWISS BANK CORP (REGD) 217,887
17,000 TOKAI BANK LTD 79,494
200 UNION BANK OF SWITZERLAND (BR) 289,602
20,000 WESTPAC BANKING CORP 127,915
17,000 YASUDA TRUST &
BANKING CO LTD 16,997
----------
7,629,130
----------
BEVERAGES -- 1.89%
6,947 COCA COLA AMATIL LTD 51,900
33,500 DIAGEO PLC 308,401
61,000 GUINESS ANCHOR BERHAD 75,224
13,000 KIRIN BREWERY CO LTD 94,984
- --------------------------------------------------------------------------------
52 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
BEVERAGES -- (Continued)
600 LVMH MOET HENNESSY
LOUIS VUITTON $ 99,636
2,100 PERNOD-RICARD S.A. 123,573
12,200 SCOTTISH & NEWCASTLE PLC 149,650
----------
903,368
----------
BROADCASTERS -- 0.55%
14,900 BRITISH SKY BROADCASTING
GROUP PLC 111,795
400 CANAL PLUS S.A. 74,403
15,500 MEDIASET S.P.A. 76,185
----------
262,383
----------
BUSINESS SERVICES -- 0.97%
200 ADECCO S.A. (BR) 58,071
69,800 CORPORATE SERVICES GROUP PLC 245,776
14,400 REUTERS HOLDINGS PLC 157,563
----------
461,410
----------
CHEMICALS -- MAJOR -- 2.09%
1,000 AKZO NOBEL NV 172,452
6,300 BASF AG. 223,367
6,700 BAYER AG. 250,405
7,100 BOC GROUP PLC 116,940
8,300 IMPERIAL CHEMICAL
INDUSTRY PLC 129,876
33,000 oMITSUBISHI CHEMICAL CORP 47,461
24,000 SUMITOMO CHEMICAL CO LTD 55,375
----------
995,876
----------
CHEMICALS -- SPECIALTY -- 0.40%
25,000 DAINIPPON INK & CHEMICAL, INC 63,451
10,000 SEKISUI CHEMICAL CO LTD 50,991
4,000 SHIN-ETSU CHEMICAL CO LTD 76,602
----------
191,044
----------
COMMUNICATION EQUIPMENT & SERVICES -- 1.47%
1,200 ALCATEL ALSTHOM CIE GEN 152,596
7,000 oERICSSON TELEFON (LM) AB
SERIES B 263,348
1,000 NOKIA AB SERIES K 71,618
17,000 SIRTI S.P.A. 102,884
52,000 oTELSTRA CORP LTD (P/P) 109,775
----------
700,221
----------
COMPUTER SERVICE -- 0.32%
500 SAP AG. 151,970
----------
CONGLOMERATES -- 1.25%
37,800 BTR PLC 114,440
28,000 HUTCHINSON WHAMPOA LTD 175,626
29,000 KEPPEL CORP 83,302
6,900 NORD-EST S.A. 137,636
16,000 SWIRE PACIFIC LTD (CLASS A) 87,761
----------
598,765
----------
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
CONSTRUCTION -- MATERIALS & BUILDERS -- 2.38%
10,726 BLUE CIRCLE INDUSTRIES PLC $ 60,269
15,271 CRH PLC 178,918
34,900 CSR LTD 118,246
10,000 DAIWA HOUSE INDUSTRY CO LTD 53,068
22,600 HANSON PLC 101,331
100 HOLDERBANK FINANCIERE
GLARUS AG. (REGD) 81,724
17,000 KAJIMA CORP 43,016
5,000 KINDEN CORP 53,452
63,000 MALAYAN CEMENT BERHAD 42,891
13,000 OBAYASHI CORP 44,392
1,400 SCHNEIDER S.A. 76,052
12,000 SEKISUI HOUSE LTD 77,433
1,700 SKANSKA AB SERIES B FREE 69,740
900 ST. GOBAIN 127,911
11,000 #UNITED ENGINEERING BERHAD 9,156
----------
1,137,599
----------
COSMETICS -- 0.41%
500 LOREAL S.A. 195,732
----------
ELECTRICAL EQUIPMENT -- INSTRUMENTS -- 0.74%
7,000 CANON, INC 163,665
4,000 NIKON CORP 39,685
8,000 TOPPAN PRINTING CO LTD 104,598
4,000 YAMAHA CORP 45,531
----------
353,479
----------
ELECTRICAL EQUIPMENT --
COMPONENTS DIVERSIFIED -- 1.38%
500 BARCO INDUSTRIES NV 91,768
5,800 oELECTRICIDADE DE PORTUGAL S.A. 109,946
2,000 HOYA CORP 63,066
1,700 KYOCERA CORP 77,402
7,000 MINEBEA CO LTD 75,372
3,000 MURATA MANUFACTURING CO LTD 75,680
4,000 OMRON CORP 62,759
1,000 ROHM CO 102,291
----------
658,284
----------
ELECTRICAL EQUIPMENT -- 3.23%
7,700 ABB AB SERIES A 91,223
900 ADVANTEST CORP 51,222
15,000 FUJITSU LTD 161,512
25,200 GENERAL ELECTRIC CO
(UNITED KINGDOM) 163,575
26,000 HITACHI LTD 185,969
23,000 MITSUBISHI ELECTRIC CORP 59,082
13,000 NIPPON ELECTRIC CORP (N.E.C.) 138,977
3,960 PHILIPS ELECTRONICS NV 237,534
4,700 SIEMENS AG. 278,385
8,000 SUMITOMO ELECTRIC
INDUSTRIES CO 109,520
2,000 TOKYO ELECTRON CO LTD 64,297
----------
1,541,296
----------
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 53
<PAGE>
TIAA-CREF MUTUAL FUNDS INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
FINANCIAL -- MISCELLANEOUS -- 0.98%
1,800 ACOM CO LTD $ 99,676
2,900 CREDIT SAISON CO LTD 71,819
14,000 DAIWA SECURITIES CO LTD 48,453
14,000 NOMURA SECURITIES CO LTD 187,354
900 ORIX CORP 62,989
----------
470,291
----------
FOODS -- 3.10%
12,000 ASSOCIATED BRITISH FOODS PLC 104,647
300 BONGRAIN S.A. 126,665
12,900 CADBURY SCHWEPPES LTD 130,219
400 NESTLE S.A. (REGD) 600,321
26,000 UNILEVER LTD 222,885
4,800 UNILEVER NV CERTIFICATES 295,970
----------
1,480,707
----------
FOREST PRODUCTS -- 0.40%
5,300 SCA AB SERIES B 119,234
3,500 UPM-KYMMENE OY 70,058
----------
189,292
----------
HEALTHCARE--DRUGS -- 8.99%
10,100 ASTRA AB SERIES A FREE 175,029
15,000 CHUGAI PHARMACEUTICAL CO LTD 77,295
5,000 EISAI CO LTD 76,526
25,064 GLAXO WELLCOME PLC 593,860
1,900 MERCK & CO KGAA 61,817
555 NOVARTIS AG (REGD) 901,977
9,500 RHONE-POULENC S.A. (CLASS A) 425,741
4,500 oRHONE-POULENC WT 11/05/01 15,484
14 ROCHE HOLDINGS AG. (BR) 215,967
58 ROCHE HOLDINGS AG.
(GENUSSCHEINE) 576,798
4,000 SANKYO CO LTD 90,754
39,263 SMITHKLINE BEECHAM/
BECKMAN LTD 402,478
5,000 TAISHO PHARMACEUTICAL
CO LTD 128,056
7,000 TAKEDA CHEMICAL
INDUSTRIES LTD 200,275
5,000 YAMANOUCHI
PHARMACEUTICAL CO LTD 107,677
6,900 ZENECA GROUP PLC 242,619
----------
4,292,353
----------
HOUSEHOLD -- CONSUMER ELECTRONICS -- 1.48%
16,000 MATSUSHITA ELECTRIC
INDUSTRIAL CO LTD 235,038
24,000 SANYO ELECTRIC CO LTD 62,759
10,000 SHARP CORP 69,065
3,800 SONY CORP 339,021
----------
705,883
----------
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
HOUSEHOLD -- DURABLE GOODS -- 0.36%
14,000 CITIZEN WATCH CO LTD $ 94,215
1,100 ELECTROLUX AB SERIES B 76,389
----------
170,604
----------
INSURANCE -- LIFE -- 0.66%
14,200 LEGAL & GENERAL GROUP PLC 124,300
15,800 PRUDENTIAL CORP PLC 190,820
----------
315,120
----------
INSURANCE -- MULTI-LINE,
PROPERTY & CASUALTY -- 5.08%
1,600 ALLIANZ AG. (REGD) 414,673
8,500 ASSICURAZIONI GENERALI S.P.A. 208,894
3,130 AXA UAP 242,299
10,200 COMMERICAL UNION
ASSURANCE CO LTD 142,488
5,863 ING GROEP NV 246,987
107,600 INSTITUTO NAZIONALE DELLE
ASSICURAZION 218,182
1,000 MUENCHENER RUECKVER
AG. (REGD) 377,076
14,997 ROYAL & SUN ALLIANCE
INSURANCE GRP PLC 151,264
12,000 TOKIO MARINE & FIRE
INSURANCE CO LTD 136,593
600 ZURICH INSURANCE CO (REGD) 286,311
----------
2,424,767
----------
LEISURE TIME -- 0.83%
8,900 GRANADA GROUP LTD (CLASS A) 136,189
17,900 LADBROKE GROUP PLC 77,755
17,700 RANK GROUP PLC 98,728
770 TOHO CO LTD 82,317
----------
394,989
----------
MACHINERY -- 2.65%
30,500 AKER MARTIME ASA 649,535
2,800 FANUC LTD 106,382
16,000 KOMATSU LTD 80,602
6,000 MAKITA CORP 57,682
28,000 MITSUBISHI HEAVY INDUSTRIES LTD 117,150
23,000 NTN TOYO BEARING CO LTD 53,422
13,300 SMITH (HOWARD) LTD 110,402
5,000 TOYODA AUTOMATIC LOOM
WORKS LTD 92,292
----------
1,267,467
----------
METALS--NON-FERROUS -- 1.05%
12,000 FURUKAWA ELECTRIC CO LTD 51,591
47,000 JAPAN ENERGY CORP 44,462
27,846 NORTH LTD 73,336
8,800 RIO TINTO LTD 102,651
8,000 RIO TINTO PLC (REGD) 98,592
1,100 oUNION MINIERE GROUP S.A. 76,302
- --------------------------------------------------------------------------------
54 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
METALS -- NON-FERROUS -- (Continued)
15,583 WMC LTD $ 54,320
----------
501,254
----------
METALS -- STEEL -- 0.65%
26,900 BRITISH STEEL PLC 57,760
39,000 KAWASAKI STEEL CORP 53,391
59,000 NIPPON STEEL CORP 87,578
41,000 SUMITOMO METAL INDUSTRIES LTD 52,660
4,100 USINOR S.A. 59,225
----------
310,614
----------
MISCELLANEOUS MATERIALS & COMMODITIES -- 0.26%
15,000 ASAHI GLASS CO LTD 71,526
46,000 GOLDEN HOPE
PLANTATIONS BERHAD 53,181
----------
124,707
----------
PAPER -- 0.14%
17,000 NIPPON PAPER INDUSTRIES CO 66,942
----------
PETROLEUM -- EXPLORATION & PRODUCTION -- 0.54%
27,400 BRITISH-BORNEO PETROLEUM
SYNDICATE PLC 190,705
14,500 LONDON & SCOTTISH
MARINE OIL PLC 65,848
----------
256,553
----------
PETROLEUM -- INTEGRATED -- 5.31%
38,800 BRITISH PETROLEUM PLC 510,732
14,143 BROKEN HILL
PROPRIETARY CO LTD 131,315
27,000 COSMO OIL CO LTD 41,116
1,900 ELF AQUITANE S.A. 221,082
58,900 ENTE NAZIONALE
IDROCARBURI S.P.A. 334,144
2,000 NORSK HYDRO AS 97,528
4,100 REPSOL S.A. 174,850
13,500 ROYAL DUTCH PETROLEUM CO 741,184
21,100 SANTOS LTD 86,887
1,800 TOTAL S.A. 195,981
----------
2,534,819
----------
PETROLEUM -- SERVICE -- 0.73%
4,300 IHC CALAND NV 223,142
1,200 TECHNIP S.A. 126,665
----------
349,807
----------
PHOTOGRAPHY -- 0.56%
7,000 FUJI PHOTO FILM CO LTD 269,187
----------
PROPERTY -- REAL ESTATE -- 1.56%
19,000 CHEUNG KONG HOLDINGS LTD 124,447
12,000 CITY DEVELOPMENT LTD 55,550
6,700 LAND SECURITIES PLC 106,934
11,000 MITSUBISHI ESTATE CO LTD 120,134
9,000 MITSUI FUDOSAN CO LTD 87,216
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
19,000 NEW WORLD
DEVELOPMENT CO LTD $ 65,717
18,000 SUN HUNG KAI PROPERTIES LTD 125,447
28,000 WHARF HOLDINGS LTD 61,433
----------
746,878
----------
PUBLISHING -- NEWSPAPER -- 0.46%
20,353 NEWS CORP LTD 112,323
8,200 PEARSON PLC 106,723
----------
219,046
----------
PUBLISHING -- OTHER -- 0.83%
7,000 DAI NIPPON PRINTING CO LTD 131,901
8,400 ELSEVIER UTIGEVERSMIJ NV 135,909
1,000 WOLTERS KLUWER NV 129,191
----------
397,001
----------
RAILROAD -- 1.15%
36 EAST JAPAN RAILWAY CO 163,081
34,000 NANKAI ELECTRIC RAILWAY CO 149,052
11,100 RAILTRACK GROUP PLC 176,612
16,000 TOKYU CORP 62,020
----------
550,765
----------
RESTAURANTS & HOTELS -- 0.90%
600 ACCOR S.A. 111,604
17,800 COMPASS GROUP PLC 217,903
58,000 HONG KONG & SHANGHAI
HOTELS LTD 47,907
31,000 RESORTS WORLD BERHAD 52,166
----------
429,580
----------
RETAIL -- FOOD -- 1.60%
300 CARREFOUR SUPERMARCHE S.A. 156,586
2,000 DELHAIZE FRERES NV 101,484
1,616 KONINKLIJKE AHOLD NV 42,169
200 PROMODES S.A. 83,013
13,800 SAFEWAY PLC 77,883
17,000 SAINSBURY (J) PLC 142,376
19,600 TESCO PLC 159,636
----------
763,147
----------
RETAIL -- GENERAL MERCHANDISE -- 2.37%
9,400 BOOTS CO LTD 135,566
10,000 DAIEI, INC 41,531
10,500 GREAT UNIVERSAL STORES PLC 132,512
2,100 HENNES & MAURITZ AB SERIES B 92,635
3,000 ITO-YOKADO CO LTD 153,436
3,000 JUSCO CO LTD 42,454
8,300 KINGFISHER PLC 115,809
20,600 MARKS & SPENCER PLC 203,032
5,000 MARUI CO LTD 78,064
900 METRO AG 32,285
200 PINAULT-PRINTEMPS-REDOUTE S.A. 106,751
----------
1,134,075
----------
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 55
<PAGE>
TIAA-CREF MUTUAL FUNDS INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
TEXTILE & APPAREL -- 0.92%
2,870 ADIDAS AG. $ 377,656
26,000 MITSUBISHI RAYON CO LTD 63,989
-----------
441,645
-----------
TOBACCO -- 0.46%
24,300 B.A.T. INDUSTRIES LTD 221,507
-----------
TRADING COMPANIES -- 0.60%
14,000 MITSUBISHI CORP 110,905
17,000 MITSUI & CO LTD 100,937
13,000 SUMITOMO CORP 72,988
-----------
284,830
-----------
TRUCKERS & SHIPPING -- 1.56%
3 DAMPSKIBSSELSKABET AF 1912
(CLASS B) 138,450
2 DAMPSKIBSSELSKABET
SVENDBORG (CLASS B) 131,440
10,200 oDET SONDENFJELDS-NORSKE
DAMPSKIBSSELSKAB (CLASS A) 213,071
35,000 NIPPON YUSEN KABUSHIKI KAISHA 96,368
9,022 PENINSULAR & ORIENTAL
STEAM NAVIGATION 102,800
13,000 SEINO TRANSPORTATION CO LTD 65,089
-----------
747,218
-----------
UTILITIES -- ELECTRIC -- 4.15%
23,500 CHINA LIGHT & POWER CO LTD 130,416
7,600 ENDESA S.A. 134,881
11,300 IBERDROLA S.A. 148,650
8,900 KANSAI ELECTRIC POWER CO, INC 151,275
24,000 NATIONAL GRID GROUP PLC 114,124
11,600 NATIONAL POWER PLC 114,519
2,100 OESTERREICHISCHE
ELEKTRIZITAETSWIRSCHAFTS AG. 222,435
2,400 RHEIN-WESTFALEN ELECTRIC
AG. (STAMM) 128,806
14,100 SCOTTISH POWER PLC 124,816
27,000 TENAGA NASIONAL BERHAD 57,574
10,600 TOKYO ELECTRIC POWER CO, INC 194,030
4,400 VEBA AG. 299,770
300 VIAG AG. 161,675
-----------
1,982,971
-----------
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
UTILITIES -- GAS & PIPELINE -- 0.36%
33,352 BG PLC $ 150,364
400 GAS NATURAL SDG S.A. 20,732
-----------
171,096
-----------
UTILITIES -- OTHER -- 0.60%
1,100 COMPAGNIE GENERALE DES EAUX 153,593
1,200 SUEZ LYONNAISE DES EAUX 132,848
-----------
286,441
-----------
UTILITIES -- TELEPHONE -- 7.71%
47,400 BRITISH
TELECOMMUNICATIONS PLC 373,191
19,300 oCABLE & WIRELESS PLC 169,895
16,300 DEUTSCHE TELEKOM AG 306,864
4,000 oFRANCE TELECOM S.A. 145,149
98,000 HONG KONG
TELECOMMUNICATIONS LTD 201,735
5,300 KONINKLIJKE PTT NEDERLAND NV 221,178
400 MANNESMANN AG. 202,219
96 NIPPON TELEGRAPH &
TELEPHONE CORP 826,942
2,900 PORTUGAL TELECOM S.A. 134,711
57,000 SINGAPORE
TELECOMMUNICATIONS LTD 106,223
29,760 TELCOM ITALIA MOBILE S.P.A. 137,438
2,500 TELE DANMARK AS (CLASS B) 155,172
29,300 TELECOM CORP OF NEW ZEALAND 142,059
9,000 TELEFONICA DE ESPANA S.A. 256,863
31,000 TELEKOM MALAYSIA BERHAD 91,589
28,900 VODAFONE GROUP PLC 208,753
-----------
3,679,981
-----------
TOTAL COMMON STOCK
(COST $52,542,882) 47,153,888
-----------
TOTAL PORTFOLIO
(COST $52,782,775) $47,412,730
===========
--------------------
o NON-INCOME PRODUCING
# RESTRICTED SECURITIES-INVESTMENT IN SECURITIES NOT REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR NOT PUBLICLY TRADED ON FOREIGN MARKETS. ADDITIONAL
INFORMATION ON EACH HOLDING IS AS FOLLOWS:
ACQUISITION ACQUISITION
SECURITY DATE COST
- -------- --------- ---------
UNITED ENGINEERING BERHAD ......... 7/24/97 $79,442
THE COST OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE
SAME AS THE AMOUNT DISCLOSED ABOVE.
- --------------------------------------------------------------------------------
56 1997 ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS
<PAGE>
TIAA-CREF MUTUAL FUNDS STATEMENT OF INVESTMENTS MANAGED ALLOCATION FUND
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
SHARES VALUE %
- --------------------------------------------------------------------------------
TIAA-CREF MUTUAL FUNDS -- 99.58%
2,079,260 BOND PLUS FUND $20,979,737 35.51%
1,439,316 GROWTH &
INCOME FUND 14,853,743 25.14
1,473,829 GROWTH
EQUITY FUND 14,915,151 25.24
660,036 INTERNATIONAL
EQUITY FUND 5,887,521 9.96
2,203,530 MONEY
MARKET FUND 2,203,530 3.73
----------- ------
58,839,682 99.58
----------- ------
TOTAL TIAA-CREF
MUTUAL FUNDS
(COST $58,819,255) 58,839,682 99.58
----------- ------
TOTAL PORTFOLIO
(COST $58,819,255) 58,839,682 99.58
----------- ------
OTHER ASSETS &
LIABILITIES, NET 247,441 0.42
----------- ------
NET ASSETS $59,087,123 100.0%
=========== ======
-----------------------
THE COST OF INVESTMENTS FOR FEDERAL INCOME TAX PURPOSES IS SUBSTANTIALLY THE
SAME AS THE AMOUNT DISCLOSED ABOVE.
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS 1997 ANNUAL REPORT 57
<PAGE>
TIAA-CREF PRODUCTS AND SERVICES
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800 842-2252
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<PAGE>
TIAA-CREF MUTUAL FUNDS 1997 ANNUAL REPORT
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