TIAA-CREF MUTUAL FUNDS
TIAA-CREF MUTUAL FUNDS 1998 SEMI-ANNUAL REPORT
MONEY MARKET FUND
BOND PLUS FUND
GROWTH & INCOME FUND
GROWTH EQUITY FUND
INTERNATIONAL EQUITY FUND
MANAGED ALLOCATION FUND
FINANCIAL STATEMENTS (UNAUDITED)
INCLUDING STATEMENTS OF INVESTMENTS
JUNE 30, 1998
[Graphic Omitted]
<PAGE>
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6 MONEY MARKET FUND
8 BOND PLUS FUND
10 GROWTH & INCOME FUND
12 GROWTH EQUITY FUND
14 INTERNATIONAL EQUITY FUND
16 MANAGED ALLOCATION FUND
18 FINANCIAL STATEMENTS
27 STATEMENTS OF INVESTMENTS
MONEY MARKET FUND 27
BOND PLUS FUND 29
GROWTH & INCOME FUND 32
GROWTH EQUITY FUND 40
INTERNATIONAL EQUITY FUND 52
MANAGED ALLOCATION FUND 59
<PAGE>
"Solid growth, low inflation, and well-behaved interest rates are all the
more satisfying in light of the advanced age of this economic expansion
period. March 1998 marked the beginning of its eighth year."
Martha Peyton, Managing Director, Investment Research and
Portfolio Strategy
[PHOTOGRAPH]
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FIRST HALF OF 1998 -- THE BEST OF TIMES FOR THE U.S. ECONOMY
The best of times continue for the U.S. economy in 1998 on top of last
year's quite satisfying combination of strong growth and low
inflation. The first half of this year was marked by a very strong 5.4
percent inflation-adjusted GDP growth rate in the first quarter and
almost no inflation. The Consumer Price Index rose at an almost
imperceptible 0.5 percent annualized pace in the first quarter. (SEE
FIGURE 1.) The very strong growth ebbed somewhat during the spring
months and inflation stirred languidly, but altogether the best of
times prevail as midyear approaches. Financial market conditions
reflect these best of times. Interest rates on the 30-year maturity
U.S. Treasury bond, used as a barometer of overall market conditions,
bounced in the 5.8 percent to 6.0 percent range over the first half of
the year. This compares with a 6.61 percent average for all of 1997,
and a December 1997 monthly average of 5.99 percent. (SEE FIGURE 2.)
Solid growth, low inflation, and well-behaved interest rates are all
the more satisfying in light of the advanced age of this economic
expansion period. March 1998 marked the beginning of its eighth year,
ranking this economic expansion among the longest-lived in the
post-WWII period. In addition to its longevity, this expansion has
been well balanced throughout the various sectors of the economy. This
balance is evident in the ongoing solid condition of business and
household balance sheets, manageable debt burdens, and an absence of
serious supply-demand excesses throughout the sectors of the real
economy.
Consumers did very well during the first half of 1998 as employment
opportunities soared. Almost 900,000 jobs were created in the first
four months of the year alone, and the unemployment rate hit a 28-year
low of 4.3 percent in April. (SEE FIGURE 3.) While wages have been
rising at an accelerating pace in response to the tightening labor
market, the degree of wage inflation remains surprisingly modest.
Perhaps the primary reason for this is the low overall inflation rate,
which is supporting the real purchasing power of wages and
1998 SEMI-ANNUAL REPORT 1
<PAGE>
FIGURE 1
INFLATION AND REAL GROWTH IN THE U.S. ECONOMY IN THE 1990S
(SEASONALLY ADJUSTED ANNUALIZED RATES, QUARTERLY)
Real GDP CPI
- ---- ---- ----
1990 3.93% 7.06%
1990 1.24% 4.12%
1990 -1.90% 7.08%
1990 -4.05% 6.96%
1991 -2.05% 3.02%
1991 1.81% 2.39%
1991 1.02% 3.08%
1991 1.00% 3.36%
1992 4.70% 2.74%
1992 2.52% 3.11%
1992 3.03% 3.09%
1992 4.31% 3.55%
1993 0.05% 2:84%
1993 2.04% 3.01%
1993 2.13% 1.86%
1993 5.32% 3.26%
l994 2.98% 1.93%
1994 4.73% 2.57%
1994 1.78% 3.75%
1994 3.62% 2.44%
1995 0.91% 2.60%
1995 0.31% 3.40%
1995 3.04% 2.12%
1995 2.22% 2.46%
1996 1.77% 3.16%
1996 5.97% 3.75%
1996 1.03% 2.41%
1996 4.31% 3.34%
1997 4.89% 2.20%
1997 3.31% 1.34%
1997 3.07% 1.93%
1997 3.71% 2.09%
1998 4.79% 0.50%
-4.05% 0.50%
5.97% 7.08%
[Above Table Represents Graph in Printed Report]
FIGURE 2
YIELD ON U.S. TREASURY BONDS IN THE 1990S
(SEASONALLY ADJUSTED ANNUALIZED RATES, QUARTERLY)
Real 10 Yr Treasury 30 Yr Treasury
- ---- -------------- --------------
1990 8.42 8.44
1990 8.68 8.65
1990 8.70 8.80
1990 8.40 8.55
1991 8.02 8.20
1991 8.13 8.32
1991 7.94 8.18
1991 7.35 7.85
1992 7.30 7.80
1992 7.38 7.90
1992 6.62 7.44
1992 6.74 7.53
1993 6.28 7.08
1993 5.99 6.86
1993 5.62 6.32
1993 5.61 6.13
l994 6.07 6.56
1994 7.08 7.36
1994 7.33 7.59
1994 7.84 7.96
1995 7.48 7.64
1995 6.62 6.96
1995 6.32 6.71
1995 5.89 6.23
1996 5.91 6.30
1996 6.72 6.93
1996 6.78 6.97
1996 6.34 6.61
1997 6.56 6.82
1997 6.70 6.93
1997 6.24 6.53
1997 5.91 6.14
1998 5.59 5.88
[Above Table Represents Graph in Printed Report]
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mitigating wage pressures from the tight labor market.
The housing sector has been especially strong this year. New home construction
and sales, existing home resales, and spending on home improvements are all
vibrant. The weather has contributed to housing-market strength as unusually
warm winter weather in the Northeast accommodated construction through the
winter. The lower interest rate environment that took hold during the fourth
quarter of 1997 also contributed by bolstering housing affordability and
stimulating mortgage refinancing to pay for renovations.
The first half of the year presented more challenging conditions for businesses.
Corporate profits declined in the first quarter on top of a decline in the
fourth quarter of 1997; these followed three years of continuous profits growth.
(SEE FIGURE 4.) The reversal in the steady growth in profits was linked to
rising labor costs, a buildup in inventories, and very constrained capacity to
raise prices. On a more positive note, lower interest rates have created a
window of opportunity for business debt refinancing, and the opportunity is not
going unnoticed. Flows of corporate bonds to market have mushroomed this year
and corporate bond spreads have widened. Owing in part to attractive interest
rates, businesses are stepping up investments in new equipment, especially
computers, but investment in nonresidential construction remains moderate.
The government sector of the economy is reaping enormous benefits from these
best of times. Tax revenues are mushrooming for federal, state, and local
governments. The federal budget deficit has been replaced with expectation of a
small surplus for the fiscal year that began last October 1.
2
<PAGE>
FIGURE 3
NONAGRICULTURAL EMPLOYMENT AND UNEMPLOYMENT RATES IN THE 1990S
(SEASONALLY ADJUSTED ANNUALIZED RATES, QUARTERLY)
Employment
Real (Millions) Unemployment
- ---- ---------- ------------
1990 109 5.30
1990 110 5.33
1990 110 5.70
1990 109 6.13
1991 109 6.60
1991 108 6.83
1991 108 6.87
1991 108 7.10
1992 108 7.37
1992 108 7.60
1992 109 7.63
1992 109 7.37
1993 110 7.13
1993 110 7.07
1993 111 6.80
1993 112 6.63
l994 113 6.57
1994 114 6.17
1994 115 6.03
1994 116 5.60
1995 116 5.47
1995 117 5.63
1995 117 5.70
1995 118 5.60
1996 118 5.57
1996 119 5.43
1996 120 5.30
1996 120 5.33
1997 121 5.27
1997 122 4.93
1997 123 4.90
1997 123 4.70
1998 124 4.67
[Above Table Represents Graph in Printed Report]
FIGURE 4
CORPORATE PROFITS AFTER TAXES
(SEASONALLY ADJUSTED ANNUALIZED RATES, QUARTERLY)
Real Corp. Profits
- ---- -------------
1990 55.67%
1990 28.60%
1990 -53.91%
1990 39.36%
1991 79.60%
1991 -18.27%
1991 -7.45%
1991 2.98%
1992 45.98%
1992 -17.38%
1992 -43.24%
1992 126.63%
1993 6.72%
1993 3.80%
1993 26.14%
1993 33.45%
l994 -8.05%
1994 39.68%
1994 18.21%
1994 17.19%
1995 -7.46%
1995 16.05%
1995 37.97%
1995 15.25%
1996 19.19%
1996 12.60%
1996 1.35%
1996 11.32%
1997 13.35%
1997 9.38%
1997 14.13%
1997 -3.19%
1998 9.23%
[Above Table Represents Graph in Printed Report]
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States and localities are accumulating surpluses. With fiscal
pressures on the wane, governments are facing conflicting demands for
tax cuts on the one hand and more generous spending on the other.
If these domestic sectors were the whole story, the year to date would
indeed be the best of times for the U.S. economy. But the story
includes an international sector that has become uncertain and
tumultuous since the Pacific Rim currency crisis erupted in the second
half of last year. The crisis has had indirect benefits for the U.S.
economy over the last few months, including strengthening the dollar,
supplying low-cost imports that have dampened U.S. inflation
pressures, and depressing U.S. interest rates as capital pours into
the safe havens represented by U.S. Treasury securities. Economic and
political pressures and dislocations in Pacific Rim countries continue
as a result of the financial crisis. Elsewhere, financial turmoil is
building in Russia and political tension is growing on the South Asian
subcontinent after nuclear testing by both India and Pakistan.
Are this year's best of times for the U.S. economy too good to last? Perhaps. As
the more temporary factors that contributed to these best of times disappear,
the combination of strong growth and low inflation will be tested. Among these
temporary factors are falling oil prices, the surprising elasticity in the labor
force, ongoing containment in health care costs, and the downward pressure on
interest rates and prices emanating from outside the U.S. The challenge for
economists and investors is to recognize when the best of times are coming to an
end.
/s/Martha S. Peyton
- --------------------
Martha S. Peyton
1998 SEMI-ANNUAL REPORT 3
<PAGE>
"On balance, a buoyant Europe has helped
to offset a gloomy Asia."
Harvey Kerrich, CREF Economist
[PHOTOGRAPH]
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FIRST HALF OF 1998 -- THE INTERNATIONAL PICTURE
In the first half of 1998, economic growth in North America and Western Europe
was well established in a highly favorable financial environment with low
interest rates and strong equity markets. For countries joining the European
Monetary Union, enjoying negligible signs of inflation and sharply reduced
fiscal deficits, confidence remains high that the solid economic growth and a
favorable financial environment currently prevailing are likely to continue into
coming quarters. In Asia, including Japan, the economic context is quite
different, as contractionary forces, the consequence of policy choices and
market perceptions, have resulted in deteriorating prospects for that region.
The silver lining is, however, that weakness in Asia has contributed
significantly to further reductions in already low rates of global inflation.
The difficulties in several Asian emerging-market countries that arose last year
remain unresolved. High rates of economic growth over an extended period
produced an extraordinary level of confidence, within the region itself and
among major financial institutions and other observers elsewhere, in the
perpetuation of this strong trend. The tendency of emerging countries in the
region to either peg their respective currencies to the U.S. dollar, or manage
them while attaching a relatively high weight to the dollar, contributed to a
deterioration in the competitiveness of these countries' goods on international
markets as the U.S. dollar appreciated, especially against the Japanese
currency, the yen. The extent of the underlying risks was not fully appreciated,
leading to excessive levels of investment in a number of economic sectors across
the region, not least in real estate.
The cumulative effect of the resulting economic imbalances and mispricing of
assets and exchange rates as a result of errors in the assessment of risk
contributed importantly to the crisis, triggered in this instance by a loss of
confidence in several of the currencies, particularly of those countries now
known as the "IMF-3": Thailand, Korea, and Indonesia. As a consequence, the
viability of their banking systems and non-financial enterprises has come into
question. In some cases intervention to encourage market and regulatory reforms
has resulted in clear improvements; elsewhere, despite intervention,
deterioration continued.
China has been relatively immune, thus far, from the contagion of currency
weakness as its controls on its capital account limit the extent of potential
speculative attacks on the currency. Added support for the currency comes from
its accumulation of very substantial foreign exchange reserves as a result of
its success in competing in a number of sectors of the global marketplace.
However, an ongoing deflationary trend already in place in China appears to have
accelerated as a result of intensified competition, regionally and in global
markets, since the onset of the Asian crisis, and economic growth is slowing.
Japan, with some 40 percent of its exports destined for Asian markets, is the
most directly exposed major industrialized country to the Asian crisis and has
been seriously affected. Economic growth prospects have therefore been subject
to large downward revisions of already modest expectations. In addition to the
incremental adverse impact of the emerging Asia crisis, Japan has suffered from
a seriously impaired banking system for a number of years, as a result of
generous lending practices followed by sharp declines in prices in the real
estate market and in the equity market.
4
<PAGE>
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The imposition of a consumption tax increase in April 1997 adversely affected
consumer demand. Consumer confidence was further eroded by a rising trend -- to
record levels -- in the unemployment rate, a consequence of poor economic growth
prospects, and much needed restructuring among business enterprises. Business
confidence is very poor, with declining expectations for corporate profits,
leading to a pullback in investment intentions. Given prevailing recessionary
conditions, equity prices deteriorated over much of the first half of 1998, in
marked contrast to equity markets in other major industrialized countries which
registered substantial gains.
In the European Union, decisions have been taken concerning which countries will
participate in monetary union, and the bilateral exchange rates at which
conversion into the Union-wide currency, the "Euro," will occur. Confidence
regarding the commitment to proceed with the European Monetary Union, EMU, is
high. This has contributed to the high degree of convergence of long-term
interest rates of participating countries toward low German levels. The
formation of EMU will increase the competitive pressures on banks within the
Euro area, while they continue to absorb the impact of exposure to troubled
emerging markets. Banks will lose much of their home-currency advantage in
lending and deposit-taking activities, as well as substantial sources of revenue
from currency transactions. A longer-run benefit of EMU, however, is the
elimination of currency risk in cross-border financial transactions, which is
expected to erode the segmentation of capital markets and over time result in
the development of broad and deep Europe-wide securities markets, a trend which
should be reinforced by policies to promote the growth of private pension
schemes.
Through the first half of the 1990s, economic policy conditions in the Euro area
were tight as the Maastricht Treaty requirements powerfully influenced fiscal
policy. Prospective members of monetary union aimed to achieve low targeted
fiscal deficits as a percentage of GDP and low rates of inflation as well.
Unemployment levels moved higher in that environment. Having achieved the
preconditions for EMU, European economic policy is unambiguously oriented toward
supporting growth, which should contribute to improved labor market conditions.
While monetary policy shifted toward ease some time ago, only recently has there
been an end to fiscal tightening. Bond yields are well below year-ago levels,
and equity markets have experienced a powerful rally since the latter part of
last year, driven in considerable part by an increasingly optimistic outlook for
corporate earnings. In the United Kingdom, currently not set to join EMU, output
has risen strongly over the last year, with labor market conditions improving,
and inflation very close to the central bank's announced target rate of 2.5%.
The current account balance was in surplus and the fiscal budget deficit
narrowed sharply to less than 2.0% of GDP. As the economy showed the potential
for exceptionally robust growth over past quarters, monetary and fiscal policies
have been tightened. The latest fiscal budget retains a mildly contractionary
bias, which together with a relatively strong currency, is expected to moderate
economic growth and achieve targeted rates of inflation in the months ahead.
On balance, a buoyant Europe has helped to offset a gloomy Asia.
/s/Harvey Kerrich
- -----------------
Harvey Kerrich
1998 SEMI-ANNUAL REPORT 5
<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."
Steven Traum, Managing Director, Teachers Advisors
[PHOTOGRAPH]
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.
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MONEY MARKET FUND
OBJECTIVE
seeks high current income,to the extent consistent with maintaining liquidity
and preserving capital.
Q. HOW HAS THE FUND PERFORMED?
A. The fund has done quite well. It has been consistently in the top ten among
241 general-purpose money market mutual funds since March (the first full month
the fund was available to the general public), according to the IBC Money Fund
Report. Its net assets have nearly doubled over the first six months of 1998,
from $63.6 million at the start of the year to $120.1 million as of June 30. The
fund's performance, as well as that of its benchmark and its peer funds, is
shown in the table at the top of page 7.
Q. WHAT IS THE FUND'S INVESTMENT STRATEGY?
A. The fund invests only in money market securities that are classified as
"first tier" securities -- that is, securities ranked in the highest category by
nationally ranked statistical rating organizations. The 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. The fund's successes, compared with its benchmark and other
money market mutual funds, can be attributed to three factors -- its asset
allocations among the different types of money market instruments, its weighted
average maturity, and its low expenses.
Q. HOW DID THE FUND'S ASSET ALLOCATION CHANGE?
A. The two pie charts at right show the allocation of the fund's investments
among its four principal sectors, a "before" and "after" look at the first half
of 1998. The changes were slight, as you can see by comparing them.
The economic environment for short-term investing has been fairly calm over the
last six months. Inflation has been steady and low, and the Federal Reserve has
not changed its target for short-term rates during that time. Also, the Asian
crisis led many to expect a slowdown in the U.S. economy, which would keep
short-term rates from rising. Short-term rates have generally moved within a
range of 20 basis points (one basis point equals .01 of 1 percent). There were,
however, a few rate "hiccups" as rates reflected the daily release of economic
and other related information.
ASSET ALLOCATION
================================================================================
AS OF 12/31/97
[The following table represents a pie chart in the Printed Report.]
66% Commercial paper
15% Certificates of deposit
14% Floating-rate notes
5% Bankers' acceptances
MATURITY OF INVESTMENTS: MONTHLY SUMMARY
================================================================================
AS OF 12/31/97
Month Dollars Percent
- ----- ------- -------
January $29.30 45.4%
February $13.20 20.5%
March $ 1.30 2.0%
April $ 0.40 0.6%
May $ 6.50 10.1%
June $ 2.00 3.1%
July $ - 0.0%
August $ 2.00 3.1%
September $ 6.80 10.5%
October $ 1.00 1.6%
November $ 2.00 3.1%
$64.50 100.0%
[Above Table Represents a Bar Chart in Printed Report]
6
<PAGE>
<TABLE>
<CAPTION>
MONEY MARKET FUND
PERFORMANCE AT A GLANCE AS OF 6/30/98
Net Annualized Yield
Total Return* Expense Average Net Assets for 7 days ending 6/30/98
1/1/98 To 6/30/98 since 9/2/97 inception ratio Maturity in millions current yield effective yield
<S> <C> <C> <C> <C> <C> <C> <C>
Money Market Fund
2.72% 4.57% 0.29%*** 54 days $120.1 5.39% 5.53%
IBC Money Fund Report Averages--
All Taxable[TM]
2.52 4.26** 0.50 58 days 5.04 5.16
Lipper Money Market Funds Average
2.42 4.09 0.83
</TABLE>
* 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 - 6/30/98
*** 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.
We will attempt to maintain a stable net asset value of $1.00 Per share for
this fund, but we can't guarantee that we will be able to do so. Note that the
current yield more closely reflects the current earnings of the TIAA-CREF Money
Market Fund than does the total return.
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ASSET ALLOCATION
================================================================================
AS OF 6/30/98
[The following table represents a pie chart in the Printed Report.]
67% Commercial paper
12% Certificates of deposit
15% Floating-rate notes
6% Bankers' acceptances and bank notes
MATURITY OF INVESTMENTS: MONTHLY SUMMARY
================================================================================
AS OF 6/30/98
Month Dollars Percent
- ----- ------- -------
July $ 40.60 33.8%
August $ 31.00 25.8%
September $ 14.80 12.3%
October $ 10.40 8.7%
November $ 3.20 2.7%
December $ 5.80 4.8%
January $ 4.40 3.7%
February $ 7.00 5.8%
March $ - 0.0%
April $ - 0.0%
May $ 3.00 2.5%
$120.20 100.0%
[Above Table Represents a Bar Chart in Printed Report]
The TIAA-CREF Money Market Fund is neither insured nor guaranteed by the U.S.
government.
$10,000 OVER LIFE OF FUND
Fund
Monthly IBC Money Fund
------- --------------
Sep-97 $10,000 Sept 2, 97 10,000
Sep-97 $10,044 Sept 30, 97 10,041
Oct-97 $10,090 Oct 97 10,084
Nov-97 $10,132 Nov 97 10,123
Dec-97 $10,179 Dec 97 10,170
Jan-98 $10,226 Jan 98 10,213
Feb-98 $10,269 Feb 98 10,256
Mar-98 $10,317 Mar 98 10,299
Apr-98 $10,363 Apr 98 10,341
May-98 $10,407 May 98 10,383
Jun-98 $10,458 Jun 98 10,426
[Above Table Represents a Graph in Printed Report]
Q. HOW DID THE FUND'S MATURITY STRUCTURE CHANGE?
A. The two bar graphs at left show the distribution of the maturities of the
fund's investments, a "before" and "after" look at the first half of 1998. We
ended 1997 with a weighted average maturity (WAM) somewhat longer than that of
the benchmark, but our goal for the end of the first half of 1998 was a WAM
close to that of the benchmark, to avoid making a "bet" on the direction of
interest rates vis-a-vis the benchmark.
1998 SEMI-ANNUAL REPORT 7
<PAGE>
"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."
Elizabeth Black, Director, Portfolio Management, Teachers Advisors
Ms. Black has been with TIAA-CREF for eleven years and is also responsible for
managing the investments in CREF's Bond Market Account ($2 billion in assets)
and the fixed income portion of CREF's Social Choice Account ($1.1 billion in
assets).
[PHOTOGRAPH]
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BOND PLUS FUND
OBJECTIVE
seeks a favorable long-term return, primarily through high current income
consistent with preserving capital.
TOP FIVE MARKET SECTORS 12/31/97 6/30/98
U.S. Treasury bonds 41.1% 24.4%
Mortgage-backed securities* 27.5 32.4
Corporate bonds 23.7 26.6
U.S. agencies 5.2 14.7
Money market instruments 2.5 1.9
* Includes government-backed and private-label securities and asset-backed
securities
Q. HOW DID THE FUND PERFORM?
A. For the first six months of 1998, the Bond PLUS Fund's total return was 4.14
percent, outperforming its benchmark, the Lehman Brothers Aggregate Bond Index,
which had a return of 3.93 percent. The Lipper Fixed Income Funds Average return
for the same period was 3.21 percent. The fund outperformed the benchmark
basically because of its securities selection. Compared with the Lehman Brothers
Index, the fund was overweighted in corporate and U.S. agency securities and
underweighted in U.S. Treasury bonds.
The fund had net assets of $103.5 million as of June 30, 1998, up from $58.4
million six months earlier.
Q. HOW HAS THE COMPOSITION OF THE FUND CHANGED?
A. The most significant change from six months ago is the increase in the
percentage of corporate bonds, as shown in the accompanying table, accompanied
by a drop in the percentage of U.S. Treasury bonds. The percentage of U.S.
agency bonds also rose during the period. We increased the proportion of our
investments in U.S. agency securities as a result of acquiring attractive,
highly liquid benchmark notes issued by the Federal National Mortgage
Association (popularly known as Fannie Mae) and the Federal Home Loan Mortgage
Corporation (popularly known as Freddie Mac). And we added a small position in
asset-backed securities and expanded the fund's holdings in mortgage-backed
securities.
Within the corporate bond sector, we added to our holdings in the media and
bank/finance industries, and from a credit-quality standpoint, bought some
below-investment-grade bonds (with BB or B ratings) that offered higher yields
without disproportionately increased risk. The below-investment-grade bonds
constituted about 4 percent of the portfolio as of midyear.
Q. HOW DOES THE FUND'S ASSET ALLOCATION COMPARE WITH ITS BENCHMARK?
A. As of June 30, the fund held a significantly smaller percentage of U.S.
Treasury bonds than the benchmark -- 24.4 percent of the portfolio for the fund,
40.6 percent for the benchmark. Conversely, its corporate bond holdings are
greater than those of its benchmark -- 26.6 percent for the fund compared with
20.6 percent for the benchmark. Both held roughly the same percentage of
mortgage-backed and asset-backed securities.
8
<PAGE>
BOND PLUS FUND
PERFORMANCE AT A GLANCE AS OF 6/30/98
<TABLE>
<CAPTION>
Total Return* Expense Net Assets
1/1/98 To 6/30/98 since 9/2/97 inception Ratio in millions
<S> <C> <C> <C> <C>
Bond PLUS 4.14% 8.83% 0.30%** $103.5
Lehman Brothers Aggregate Bond Index 3.93 8.57
Lipper Fixed Income Funds Average 3.21 6.62
</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.
================================================================================
Q. WHAT ARE THE RISK CHARACTERISTICS
OF THE FUND?
A. The risk characteristics of the fund have been, and will continue to be,
similar to those of its benchmark. The option-adjusted duration of the fund was
4.56 years vs. 4.57 years for the Lehman Index. Other characteristics for the
fund and the benchmark, for the beginning and end of the six months ending June
30, 1998, are in the table at the bottom right of this page.
i 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's return relative to
the benchmark.
$10,000 OVER LIFE OF FUND
Fund Index
Monthly Monthly
------- -------
Sep-97 $10,000 $10,000
Sep-97 $10,143 $10,147
Oct-97 $10,286 $10,295
Nov-97 $10,346 $10,342
Dec-97 $10,451 $10,446
Jan-98 $10,591 $10,580
Feb-98 $10,575 $10,571
Mar-98 $10,627 $10,607
Apr-98 $10,687 $10,662
May-98 $10,781 $10,764
Jun-98 $10,883 $10,855
[Above Table Represents a Graph in Printed Report]
Bond Plus vs. Benchmark: Risk Characteristics
Measure*
Average Life Option-Adjusted
(in years) Duration (in years)
12/31/97 6/30/98 12/31/97 6/30/98
Bond PLUS 8.20 7.90 4.56 4.56
Lehman Brothers 8.34 8.10 4.60 4.57
Aggregate Bond Index
* As calculated using an analytical model developed by BARRA, a widely
recognized investment research firm that created the first multiple-factor
bond risk model.
1998 SEMI-ANNUAL REPORT 9
<PAGE>
<TABLE>
<CAPTION>
GROWTH & INCOME FUND
PERFORMANCE AT A GLANCE AS OF 6/30/98
Total Return* Expense Net Assets
1/1/98 To 6/30/98 since 9/2/97 inception Ratio in millions
<S> <C> <C> <C> <C>
Growth & Income Fund 19.19% 29.18% 0.43%** $147.8
S&P 500 17.71 27.72
Lipper Growth & Income Funds Index 11.62 17.78
</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.
================================================================================
Q. HOW DID THE FUND PERFORM?
A. As of June 30, 1998, net assets of the Growth & Income Fund totaled $147.8
million. From inception (September 2, 1997) through June 30, 1998, the fund
returned 29.18 percent compared with 27.72 percent for its benchmark, the S&P
500 index. For the same period, the fund's peers earned 17.78 percent as
measured by the Lipper Growth & Income Funds Index.
Q. HOW IS THE FUND MANAGED?
A. We are managing the fund to have a relatively low tracking error (currently
less than 2.0 percent). The indexed portion matches the benchmark very closely.
And even in the actively managed portion, for those sectors for which we had no
significant insight or conviction, we kept the sector weights relatively close
to those of the S&P 500. We over- or underweighted sectors only where we had
great conviction. As of June 30, 1998, this approach had led us to underweights
and overweights as shown in the bar chart on page 11.
TEN LARGEST HOLDINGS
Company Shares Market Value (000)
General Electric 55,440 $5,045
Exxon Corp. 61,820 4,409
Merck & Co. 30,738 4,111
Procter & Gamble 38,608 3,516
Nokia Oyj (ADR) 45,012 3,266
Microsoft 28,300 3,067
Pfizer 27,842 3,026
Dayton Hudson 59,478 2,885
AT&T 50,066 2,860
SBC Communications 69,741 2,790
10
<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."
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.
[PHOTOGRAPH]
================================================================================
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
INDUSTRY DIVERSIFICATION
========================
AS OF 6/30/98
[The following table represents a pie chart in the Printed Report.]
34% Consumer products and services
17% Financial
15% Manufacturing and materials
14% Technology
11% Utilities
9% Other
$10,000 OVER LIFE OF FUND
Fund Index
Monthly Monthly
------- -------
Sep-97 $10,000 $10,000
Sep-97 $10,542 $10,548
Oct-97 $10,207 $10,195
Nov-97 $10,667 $10,667
Dec-97 $10,837 $10,851
Jan-98 $10,952 $10,971
Feb-98 $11,708 $11,762
Mar-98 $12,430 $12,365
Apr-98 $12,651 $12,490
May-98 $12,451 $12,275
Jun-98 $12,917 $12,773
[Above Table Represents a Graph in Printed Report]
GROWTH & INCOME RELATIVE SECTOR WEIGHTS AS OF 6/30/98
SECTOR PERCENT OVER/UNDERWEIGHT
AEROSPACE AND DEFENSE -1.12
BASIC INDUSTRIES 0.01
CONSUMER CYCLICALS -2.37
CONSUMER NONCYCLICALS 0.38
ENERGY -0.81
FINANCIAL SERVICES 0.02
HEALTHCARE 0.26
OTHER 0.26
PRODUCER DURABLES 0.55
TECHNOLOGY 0.14
TRANSPORTATION 0.01
UTILITIES (INCLUDING TELECOMS) 2.68
1998 SEMI-ANNUAL REPORT 11
<PAGE>
<TABLE>
<CAPTION>
GROWTH EQUITY FUND
PERFORMANCE AT A GLANCE AS OF 6/30/98
Total Return* Expense Net Assets
1/1/98 to 6/30/98 since 9/2/97 inception Ratio in millions
<S> <C> <C> <C> <C>
Growth Equity Fund 20.75% 30.64% 0.45%** $156.7
Russell 3000(R)Growth Index 18.94 25.78
Lipper Growth Funds Index 15.57 22.99
</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
Fund Index
Monthly Monthly
------- -------
Sep-97 $10,000 $10,000
Sep-97 $10,535 $10,524
Oct-97 $10,189 $10,109
Nov-97 $10,640 $10,469
Dec-97 $10,819 $10,575
Jan-98 $11,097 $10,847
Feb-98 $11,899 $11,675
Mar-98 $12,434 $12,144
Apr-98 $12,658 $12,303
May-98 $12,327 $11,903
Jun-98 $13,064 $12,578
[Above Table Represents a Graph in Printed Report]
Q. HOW DID THE FUND PERFORM DURING THE FIRST HALF OF 1998?
A. During the first half of 1998, the Growth Equity Fund's total return of
20.75 percent outpaced both the benchmark Russell 3000 Growth Index, which
advanced 18.94 percent, and the competition (as measured by the Lipper Growth
Funds Index), which returned 15.57 percent. The fund's second quarter
outperformance -- its return of 5.07 percent bested the benchmark by 150 basis
points and the competition by 223 basis points -- was largely responsible for
the year-to-date results.
The fund's performance during the first half was helped by select holdings of
diversified industrial (Tyco International), telecommunications (WorldCom),
media (CD Radio, Capstar), and leisure (Carnival Cruise) stocks, while it was
hurt by its overweight in energy stocks (Ocean Energy) and its underweight in
healthcare stocks.
The two biggest positive contributors to the fund's performance during the
first half were Tyco International and WorldCom. Tyco recently announced its
intention to acquire U.S. Surgical, which should help it further strengthen its
disposable medical products business through enhancing scale economies in
manufacturing and sales. WorldCom, which is moving closer to completing its
merger with MCI Corp., continued to benefit from its focus on serving the
fastest-growing segments of the telecommunications marketplace, namely
high-speed data, Internet, and international business long-distance. As these
companies have continued to build competitive advantage in their respective
industries, their stock prices have moved higher. Year-to-date, Tyco and
WorldCom shares have appreciated 39.8 percent and 61.8 percent, respectively.
Media stocks also made valuable contributions to performance during the first
half. Among the top performers were CD Radio, Chancellor Media, and a second
quarter IPO, Capstar Broadcasting. A short-lived sell-off during the second
quarter enabled the fund to add opportunistically to positions in Chancellor and
Clear Channel Communications, which resulted in an
12
<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."
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.
[PHOTOGRAPH]
================================================================================
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.
increased overweight in media stocks (6.3 percent overweight vs. the benchmark,
compared with 3.4 percent at the end of the first quarter). By the end of the
second quarter, these stocks had rebounded strongly, with a number of them
reachieving their 52-week price highs. As consolidation in the industry enables
media companies to capture additional revenue and cost synergies, we remain
confident in their ability to generate strong cash-flow growth going forward.
There were also a number of disappointing results in the first half of 1998.
Dentsply International suffered a decline in its stock price following a
negative earnings preannouncement, while the fund's energy holdings (Ocean
Energy and Diamond Offshore) suffered along with the fall in the price of oil.
Additionally, our ownership of Cendant Corp., which announced that it would
restate earnings following the discovery of accounting irregularities, created a
drag on performance.
Q. HOW HAVE THE SECTOR WEIGHTS CHANGED?
A. As a result of initiating new positions or adding to existing ones, there
were a number of important shifts in sector weights during the second quarter.
For instance, the fund's overweight in consumer cyclicals increased largely as a
result of the aforementioned increased holdings of media stocks. Likewise, the
fund's neutral weight in financial services at the end of the first quarter was
brought to a moderate overweight, primarily as a result of the addition of
several insurance stocks. Other significant changes included increased
underweights in both technology and healthcare, and a shift from a modest
underweight to a modest overweight in aerospace and defense (which resulted from
adding to positions in both Hughes Electronics and Loral Space &
Communications).
In closing, I want to acknowledge how much we appreciate your investment in the
Growth Equity Fund.
TEN LARGEST HOLDINGS
Company Shares Market Value (000)
Tyco International 108,165 $6,814
General Electric 66,535 6,055
WorldCom 119,890 5,807
Merck & Co. 34,550 4,621
Microsoft 39,025 4,229
Procter & Gamble 34,215 3,116
Pfizer 28,300 3,076
Lucent Technologies 36,880 3,068
Intel Corp. 39,653 2,939
Ocean Energy 126,308 2,471
1998 SEMI-ANNUAL REPORT 13
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
PERFORMANCE AT A GLANCE AS OF 6/30/98
Total Return* Expense Net Assets
1/1/98 TO 6/30/98 since 9/2/97 inception Ratio in millions
<S> <C> <C> <C> <C>
International Equity Fund 16.59% 13.91% 0.49% ** $80.2
Morgan Stanley EAFE 15.93 12.84
Lipper International Funds
Index 15.81 13.82
</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.
================================================================================
Q. HOW DID THE FUND PERFORM?
A. For the first half of 1998, the TIAA-CREF International Equity Fund was up
16.59 percent, 66 basis points (or 0.66 percent) ahead of our benchmark, the MS
EAFE Index (+15.93 percent) and 78 basis points ahead of the competition, as
measured by the Lipper International Funds Index, which gained 15.81 percent.
During the second quarter 1998, the International Equity Fund rose 1.76 percent,
which was 70 basis points ahead of the MS-EAFE Index (which gained 1.06
percent), and 90 basis points ahead of the competition, which gained 0.85
percent.
Q. HOW DID THE FUND DO IN EUROPE?
A. The European markets continued to be the best-performing markets in the
world. Although the fund was overweight in Europe, it was not able to fully
benefit from this asset allocation since it was more highly exposed to some of
the relatively weaker-performing European markets, such as the United Kingdom
and Norway. Once again it should be mentioned that our country allocation
"evolves" out of our stock selection.
Q. HOW DID THE FUND DO IN THE ASIA/PACIFIC REGION?
A. The fund's continued underweight in Asia was one of the most significant
positive contributors to performance throughout the first half of 1998. The
Asia/Pacific region continued to be the world's worst-performing region and in
most cases remains in negative territory since the year started. Malaysia (-46
percent) and Hong Kong (-26 percent) were especially hard hit during the second
quarter. Furthermore, the Japanese yen suffered a precipitous decline versus the
U.S. dollar during the first half, which enhanced the positive performance
contribution from our Japanese market underweight.
Despite the continued Asian turmoil, we will sift through the region in search
of opportunities. These will be well-managed companies that have sustainable
growth characteristics and focus on shareholder returns.
Q. CAN YOU DESCRIBE THE FUND'S STOCK SELECTION?
A. The fund's overall stock selection during the first six months had a
positive effect due to some good stock selection in the UK, France, and Bermuda.
This was partially offset by poor stock selection in Norway. Especially strong
were our investments
TEN LARGEST HOLDINGS
COMPANY COUNTRY SHARES MARKET VALUE (000)
Union Bank of Switzerland Switzerland 5,178 $1,925
Airtours PLC Great Britain 226,000 1,701
SMH Switzerland 2,105 1,626
Alcatel Alsthom Cie Gen France 7,800 1,588
AXA France 13,405 1,508
Railtrack Group PLC Great Britain 58,500 1,434
Adidas Salomon AG Germany 7,900 1,376
Compass Group PLC Great Britain 115,600 1,329
Mannesmann AG Germany 12,200 1,254
SGS-Thomson
Microelectronics NV France 15,200 1,077
14
<PAGE>
"The International Equity Fund strives to seek out and invest in non-U.S.
growth-oriented companies that have strong managements that 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.
[PHOTOGRAPH]
================================================================================
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.
$10,000 OVER LIFE OF FUND
Fund Index
Monthly Monthly
------- -------
Sep-97 $10,000 $10,000
Sep-97 $10,570 $10,560
Oct-97 $ 9,759 $ 9,748
Nov-97 $ 9,662 $ 9,649
Dec-97 $ 9,770 $ 9,733
Jan-97 $10,186 $10,178
Feb-98 $10,767 $10,831
Mar-98 $11,194 $11,165
Apr-98 $11,292 $11,253
May-98 $11,303 $11,198
Jun-98 $11,391 $11,283
[Above Table Represents a Graph in Printed Report]
in British names such as Railtrack (+54 percent), the rail
infrastructure company, and the contract catering company, Compass (+89
percent). We also managed to identify a recovery in the French construction
industry, which led us to investing in names such as Eiffage (+30 percent) and
GTM Entrepose (+31 percent). Lastly, the fund participated in a Bermuda-based
insurance start-up called Annuity Life Re, which added substantial performance
to the fund's return during the second quarter. Unfortunately, these positive
performances were mitigated by our ownership of Tandberg Data (-32 percent), a
Norwegian technology company that rose dramatically and enhanced the fund's
performance during the first quarter, but later significantly underperformed
during the second quarter, because of a management change. Despite our
confidence in the company's technology, we have lost confidence in the new
management, and as result have sold the position. Having confidence in
management is of paramount importance to our stock selection process. One other
area of underperformance was our investment in the Norwegian oil service company
Aker Maritime (-17 percent), whose shares suffered along with the fall in the
oil price.
1998 SEMI-ANNUAL REPORT 15
<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
Edward J. Grzybowski, Managing Director - TIAA-CREF Investment Management, Inc.
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. Grzybowski joined TIAA-CREF in 1987;
he also has supervisory responsibility over investments in CREF's Bond Market
and Money Market 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.
[PHOTOGRAPH]
Jim Fleischmann
[PHOTOGRAPH]
Ed Grzybowski
[PHOTOGRAPH]
Mike 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 TIAA-CREF mutual 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 Equity, Growth Equity, and Growth & Income), while the
fixed-income portion will normally be invested in the Bond PLUS 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 IS THE FUND MANAGED?
A. The 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 overvalued or
undervalued, we will change the percentage.
Jim Fleischmann is responsible for allocating the equity percentages among the
three equity funds.
Until August 10, 1998, Mike O'Kane was responsible for allocating the
fixed-income percentages among the Bond PLUS and Money Market Funds. Since that
day, Ed Grzybowski has taken over this responsibility.
Q. HOW DID YOU CHANGE THE MANAGED ALLOCATION PORTFOLIO IN THE FIRST HALF OF
1998?
A. Because of concern about the impact of developments in the Asia/Pacific
region on equity values generally, in mid-January we slightly reduced the equity
target and correspondingly increased the fixed-income target for the fund. By
mid-March, however, enough stability had returned that we reverted to the
baseline 60/40 equities/bonds mix for the fund.
ASSET ALLOCATION AS OF 6/30/98
================================================================================
[The following table represents a pie chart in the Printed Report.]
40% Bond PLUS Fund
25% Growth Equity Fund
25% Growth & Income Fund
10% International Equity Fund
16
<PAGE>
MANAGED ALLOCATION FUND
PERFORMANCE AT A GLANCE AS OF 6/30/98
<TABLE>
<CAPTION>
Total Return* Expense Net Assets
1/1/98 to 6/30/98 since 9/2/97 inception Ratio in millions
<S> <C> <C> <C> <C>
Managed Allocation Fund 12.75% 18.82% 0%** $115.9
Composite index 11.98 18.27 N/A
Lipper Balanced Funds Index 9.52 15.66
</TABLE>
* Past performance is no guarantee of future results. The fund's benchmark is
a composite. It equals 48 percent of the performance of the S&P 500 Index,
40 percent of the performance of the Lehman Brothers Aggregate Bond Index,
and 12 percent of the Morgan Stanley EAFE 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
Fund Index
Monthly Monthly
------- -------
Sep-97 $10,000 $10,000.00
Sep-97 $10,375 $10,389.11
Oct-97 $10,178 $10,181.48
Nov-97 $10,396 $10,415.07
Dec-97 $10,539 $10,554.73
Jan-98 $10,728 $10,719.38
Feb-98 $11,139 $11,174.34
Mar-98 $11,499 $11,518.01
Apr-98 $11,637 $11,610.47
May-98 $11,563 $11,541.34
Jun-98 $11,882 $11,827.33
[Above Table Represents a Graph in Printed Report]
Managed Allocation Fund
Composite index:
48% S&P 500 Index
40% Lehman Brothers Aggregate Bond Index
12% Morgan Stanley EAFE Index
O'KANE. Early in January, we shifted the fixed-income portion entirely to the
Bond PLUS Fund. Previously we had had a small amount of the fixed-income portion
in the Money Market Fund, as a means to deal with the "short-short" rule, as
explained in the previous TIAA-CREF Mutual Funds Annual Report. Because that
rule expired at the end of 1997, there was no need for the Money Market element,
and so we quickly converted it to a position in the Bond PLUS Fund.
FLEISCHMANN. In the past six months we've made two small changes in the relative
proportions of the three equity components -- Growth Equity, Growth & Income,
and International Equity -- of the fund. In mid-January, amid growing
uncertainty regarding the economic prospects of the economies of the Southeast
Asia and Pacific regions, we shifted the target components of the equity part of
the fund slightly toward the Growth Equity and Growth & Income Funds and
slightly away from the International Equity Fund.
By mid-April, a degree of stability had returned to the Asian markets, and the
European markets looked robust. Accordingly, we returned the equity targets to
their original positions -- 24 percent of the total portfolio in the Growth
Equity Fund, 24 percent in the Growth & Income Fund, and 12 percent in the
International Fund.
1998 SEMI-ANNUAL REPORT 17
<PAGE>
<TABLE>
TIAA-CREF Mutual Funds STATEMENTS OF ASSETS AND LIABILITIES
- ---------------------------------------------------------------------------------------------------------------------------
June 30, 1998 (Unaudited)
<CAPTION>
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 $119,594,399 $115,738,494 $132,018,315 $139,701,262 $77,693,855 $107,144,584
Net unrealized appreciation
of portfolio investments -- 745,533 16,792,128 17,884,308 2,635,547 8,779,939
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio investments, at value 119,594,399 116,484,027 148,810,443 157,585,570 80,329,402 115,924,523
Cash 12,341 60,744 34,099 29,753 2,041,098 30,289
Receivable from securities transactions -- 15,586,014 -- -- 495,102 --
Receivable for Fund shares sold 694,604 480,587 642,408 455,009 110,125 630,053
Dividends receivable -- -- 122,790 79,700 234,911 --
Interest receivable 515,715 1,021,458 -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Total assets 120,817,059 133,632,830 149,609,740 158,150,032 83,210,638 116,584,865
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Accrued management fee 27,487 24,249 48,546 53,279 30,581 --
Payable for securities transactions -- 30,069,263 1,711,253 1,361,708 2,702,915 620,995
Payable for Fund shares redeemed 677,454 43,810 62,790 37,292 214,243 3,292
Other payables and accrued expenses 9,029 13,076 7,844 354 17,373 19,251
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities 713,970 30,150,398 1,830,433 1,452,633 2,965,112 643,538
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS $120,103,089 $103,482,432 $147,779,307 $156,697,399 $80,245,526 $115,941,327
===========================================================================================================================
Net assets consist of:
Paid in capital $120,103,025 $102,158,258 $130,000,152 $136,934,534 $76,997,448 $107,159,317
Accumulated undistributed
(overdistributed)
net investment income -- (38,667) 32,922 229,264 669,206 2,071
Accumulated undistributed
(overdistributed)
net realized gain on
total investments 64 617,308 954,089 1,649,293 (62,111) --
Accumulated net unrealized appreciation
on total investments -- 745,533 16,792,144 17,884,308 2,640,983 8,779,939
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS $120,103,089 $103,482,432 $147,779,307 $156,697,399 $80,245,526 $115,941,327
===========================================================================================================================
Outstanding shares of beneficial interest,
unlimited shares authorized
($.001 par value) 120,103,025 10,128,522 12,061,690 12,828,245 7,717,621 10,384,516
Net asset value per share $1.00 $10.22 $12.25 $12.22 $10.40 $11.16
===========================================================================================================================
</TABLE>
18 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
TIAA-CREF Mutual Funds STATEMENTS OF OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------------
For the Six Months Ended June 30, 1998 (Unaudited)
Money Bond Growth & Growth International Managed
Market Plus Income Equity Equity Allocation
Fund Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
<S> <C> <C> <C> <C> <C> <C>
Interest $2,523,093 $2,443,805 $ 55,875 $ 69,322 $ 47,308 $ 13,916
Dividends -- -- 706,090 405,519 933,738 1,111,080
Foreign taxes withheld -- -- (7,822) (6,871) (121,465) --
- ---------------------------------------------------------------------------------------------------------------------------
Total income 2,523,093 2,443,805 754,143 467,970 859,581 1,124,996
- ---------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fee 348,921 321,887 466,828 502,595 310,113 --
Trustee fees and expenses 530 483 602 635 376 --
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses before waiver 349,451 322,370 467,430 503,230 310,489 --
Less expenses waived by the advisor (220,836) (201,179) (250,983) (264,524) (156,623) --
- ---------------------------------------------------------------------------------------------------------------------------
Net expenses 128,615 121,191 216,447 238,706 153,866 --
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income 2,394,478 2,322,614 537,696 229,264 705,715 1,124,996
- ---------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON TOTAL INVESTMENTS
Realized gain (loss) on:
Portfolio investments 64 623,378 1,006,086 1,602,776 42,836 --
Foreign currency transactions -- -- (12,233) (32,677) (24,793) --
- ---------------------------------------------------------------------------------------------------------------------------
Net realized gain on total investments 64 623,378 993,853 1,570,099 18,043 --
- ---------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation on:
Portfolio investments -- 318,279 14,992,035 17,365,738 8,005,592 8,759,512
Translation of assets (other than portfolio
investments) and liabilities denominated
in foreign currencies -- -- 16 -- (1,476) --
- ---------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
on total investments -- 318,279 14,992,051 17,365,738 8,004,116 8,759,512
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain on total investments 64 941,657 15,985,904 18,935,837 8,022,159 8,759,512
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations $2,394,542 $3,264,271 $16,523,600 $19,165,101 $8,727,874 $9,884,508
===========================================================================================================================
</TABLE>
See notes to financial statements 1998 SEMI-ANNUAL REPORT 19
<PAGE>
<TABLE>
<CAPTION>
TIAA-CREF Mutual Funds
- ----------------------------------------------------------------------------------------------------------------------------
Money Market Fund Bond Plus Fund
--------------------------- ---------------------------
For the Period For the Period
For the July 17, 1997 For the July 17, 1997
Six Months (Commencement Six Months (Commencement
Ended of Operations) Ended of Operations)
June 30, to December 31, June 30, to December 31,
1998 1997 1998 1997
- ---------------------------------------------------------------------------------------------------------------------------
(Unaudited) (Unaudited)
INCREASE IN NET ASSETS
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income $ 2,394,478 $ 1,308,831 $ 2,322,614 $ 1,411,285
Net realized gain (loss) on total investments 64 -- 623,378 626,451
Net change in unrealized appreciation
(depreciation) on total investments -- -- 318,279 427,254
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 2,394,542 1,308,831 3,264,271 2,464,990
- ---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (2,394,478) (1,308,831) (2,322,614) (1,411,285)
In excess of net investment income -- -- (38,667) --
From net realized gains on total investments -- -- -- (632,521)
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions (2,394,478) (1,308,831) (2,361,281) (2,043,806)
- ---------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Seed money subscriptions -- 48,000,000 -- 32,000,000
Subscriptions 80,753,803 15,370,172 41,684,733 23,894,752
Reinvestment of distributions 2,355,045 1,306,414 2,312,607 2,036,164
Exchanges among the Funds (9,864,660) (701,535) 556,947 151,528
Redemptions (16,746,418) (369,796) (377,651) (100,822)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase from share transactions 56,497,770 63,605,255 44,176,636 57,981,622
- ---------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 56,497,834 63,605,255 45,079,626 58,402,806
NET ASSETS
Beginning of period 63,605,255 -- 58,402,806 --
- ---------------------------------------------------------------------------------------------------------------------------
End of period $120,103,089 $63,605,255 $103,482,432 $58,402,806
===========================================================================================================================
CHANGE IN FUND SHARES:
Shares sold 80,753,803 63,370,172 4,095,672 5,581,036
Shares issued in reinvestment of distributions 2,355,045 1,306,414 227,643 202,236
Shares exchanged among the Funds (9,864,660) (701,535) 54,596 14,888
Shares redeemed (16,746,418) (369,796) (37,582) (9,967)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in shares outstanding 56,497,770 63,605,255 4,340,329 5,788,193
===========================================================================================================================
</TABLE>
20 1998 SEMI-ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Growth & Income Fund Growth Equity Fund
------------------------------- ----------------------------
For the Period For the Period
For the July 17, 1997 For the July 17, 1997
Six Months (Commencement Six Months (Commencement
Ended of Operations) Ended of Operations)
June 30, to December 31, June 30, to December 31,
1998 1997 1998 1997
--------------------------------------------------------------
(Unaudited) (Unaudited)
INCREASE IN NET ASSETS
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income $ 537,696 $ 396,266 $ 229,264 $ 354,221
Net realized gain (loss) on total investments
993,853 (37,879) 1,570,099 1,066,329
Net change in unrealized appreciation
(depreciation) on total investments 14,992,051 1,800,093 17,365,738 518,570
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 16,523,600 2,158,480 19,165,101 1,939,120
- ---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (504,170) (396,266) -- (354,221)
In excess of net investment income -- (2,489) -- (623)
From net realized gains on total investments -- -- -- (986,512)
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions (504,170) (398,755) -- (1,341,356)
- ---------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Seed money subscriptions -- 38,000,000 -- 38,000,000
Subscriptions 67,081,149 21,780,739 71,149,880 24,185,187
Reinvestment of distributions 492,111 397,301 -- 1,338,112
Exchanges among the Funds 3,244,325 (113,263) 2,980,171 383,490
Redemptions (879,615) (2,595) (1,085,193) (17,113)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase from share transactions 69,937,970 60,062,182 73,044,858 63,889,676
- ---------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 85,957,400 61,821,907 92,209,959 64,487,440
NET ASSETS
Beginning of period 61,821,907 -- 64,487,440 --
- ---------------------------------------------------------------------------------------------------------------------------
End of period $147,779,307 $61,821,907 $156,697,399 $64,487,440
===========================================================================================================================
CHANGE IN FUND SHARES:
Shares sold 5,824,185 5,960,003 6,285,996 6,205,429
Shares issued in reinvestment of distributions 40,872 39,864 -- 133,171
Shares exchanged among the Funds 282,978 (11,283) 262,496 37,592
Shares redeemed (74,677) (252) (94,752) (1,687)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in shares outstanding 6,073,358 5,988,332 6,453,740 6,374,505
===========================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------
International Equity Fund Managed Allocation Fund
----------------------------- ---------------------------
For the Period For the Period
For the July 17, 1997 For the July 17, 1997
Six Months (Commencement Six Months (Commencement
Ended of Operations) Ended of Operations)
June 30, to December 31, June 30, to December 31,
1998 1997 1998 1997
---------------------------------------------------------------
(Unaudited) (Unaudited)
INCREASE IN NET ASSETS
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income $ 705,715 $ 266,299 $ 1,124,996 $ 1,270,524
Net realized gain (loss) on total investments
18,043 (30,660) -- --
Net change in unrealized appreciation
(depreciation) on total investments 8,004,116 (5,363,133) 8,759,512 20,427
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 8,727,874 (5,127,494) 9,884,508 1,290,951
- ----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income -- (266,299) (1,122,925) (1,270,524)
In excess of net investment income -- (97,712) -- --
From net realized gains on total investments -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions -- (364,011) (1,122,925) (1,270,524)
- ----------------------------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Seed money subscriptions -- 44,000,000 -- 50,000,000
Subscriptions 22,250,892 8,920,825 46,280,132 7,498,848
Reinvestment of distributions -- 364,011 1,092,923 1,265,457
Exchanges among the Funds 1,728,871 (23,111) 1,354,346 302,891
Redemptions (219,936) (12,395) (634,780) (500)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase from share transactions 23,759,827 53,249,330 48,092,621 59,066,696
- ----------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 32,487,701 47,757,825 56,854,204 59,087,123
NET ASSETS
Beginning of period 47,757,825 -- 59,087,123 --
- ----------------------------------------------------------------------------------------------------------------------------
End of period $80,245,526 $47,757,825 $115,941,327 $59,087,123
============================================================================================================================
CHANGE IN FUND SHARES:
Shares sold 2,209,828 5,320,567 4,310,867 5,747,385
Shares issued in reinvestment of distributions -- 39,871 99,136 127,521
Shares exchanged among the Funds 172,875 (2,677) 127,952 29,971
Shares redeemed (21,418) (1,425) (58,266) (50)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase in shares outstanding 2,361,285 5,356,336 4,479,689 5,904,827
============================================================================================================================
</TABLE>
See notes to financial statements 21
<PAGE>
<TABLE>
<CAPTION>
TIAA-CREF Mutual Funds
- -------------------------------------------------------------------------------------------------------------------------------
Money Market Fund Bond Plus Fund
----------------------- --------------------------
For the Period For the Period
For the July 17, 1997 For the July 17, 1997
Six Months (Commencement Six Months (Commencement
Ended of Operations) Ended of Operations)
June 30, to December 31, June 30, to December 31,
1998 1997 1998 1997
- ----------------------------------------------------------------------------------------------------------------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
SELECTED PER SHARE DATA
Net asset value, beginning of period $1.00 $1.00 $10.09 $10.00
- ----------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.03 0.02 0.28 0.27
Net realized and unrealized gains (losses) on investments -- -- 0.13 0.20
- ----------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations 0.03 0.02 0.41 0.47
- ----------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income (0.03) (0.02) (0.28) (0.27)
In excess of net investment income -- -- -- --
Net realized gains -- -- -- (0.11)
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions (0.03) (0.02) (0.28) (0.38)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $10.22 $10.09
============================================================================================================================
TOTAL RETURN 2.72% 2.51% 4.14% 4.79%
RATIOS AND SUPPLEMENTAL DATA
Net assets at end of period (in thousands) $120,103 $63,605 $103,482 $ 58,403
Ratio of expenses to average net assets before expense waiver 0.39% 0.36% 0.40% 0.37%
Ratio of expenses to average net assets after expense waiver 0.14% 0.13% 0.15% 0.14%
Ratio of net investment income to average net assets after expense waiver 2.69% 2.49% 2.86% 2.72%
Portfolio turnover rate n/a n/a 341.41% 143.61%
The percentages shown above are not annualized.
============================================================================================================================
</TABLE>
22 1998 SEMI-ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Growth & Income Fund Growth Equity Fund
-------------------------- -------------------------
For the Period For the Period
For the July 17, 1997 For the July 17, 1997
Six Months (Commencement Six Months (Commencement
Ended of Operations) Ended of Operations)
June 30, to December 31, June 30, to December 31,
1998 1997 1998 1997
--------------------------------------------------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
SELECTED PER SHARE DATA
Net asset value, beginning of period $10.32 $10.00 $10.12 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.05 0.07 0.02 0.06
Net realized and unrealized gains (losses) on investments 1.93 0.32 2.08 0.28
- ------------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations 1.98 0.39 2.10 0.34
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income (0.05) (0.07) -- (0.06)
In excess of net investment income -- -- -- --
Net realized gains -- -- -- (0.16)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.05) (0.07) -- (0.22)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $12.25 $10.32 $12.22 $10.12
====================================================================================================================================
TOTAL RETURN 19.19% 3.96% 20.75% 3.44%
RATIOS AND SUPPLEMENTAL DATA
Net assets at end of period (in thousands) $147,779 $61,822 $ 156,697 $ 64,487
Ratio of expenses to average net assets before expense waiver 0.46% 0.43% 0.47% 0.44%
Ratio of expenses to average net assets after expense waiver 0.21% 0.20% 0.22% 0.21%
Ratio of net investment income to average net assets after expense waiver 0.53% 0.76% 0.21% 0.68%
Portfolio turnover rate 35.45% 1.46% 10.54% 29.44%
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
- ---------------------------------------------------------------------------------------------------------------------------------
International Equity Fund Managed Allocation Fund
------------------------- ------------------------
For the Period For the Period
For the July 17, 1997 For the July 17, 1997
Six Months (Commencement Six Months (Commencement
Ended of Operations) Ended of Operations)
June 30, to December 31, June 30, to December 31,
1998 1997 1998 1997
---------------------------------------------------------
(Unaudited) (Unaudited)
SELECTED PER SHARE DATA
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.92 $10.00 $10.01 $10.00
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.09 0.07 0.12 0.23
Net realized and unrealized gains (losses) on investments 1.39 (1.07) 1.15 0.01
- ---------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations 1.48 (1.00) 1.27 0.24
- ---------------------------------------------------------------------------------------------------------------------------------
Less distributions from:
Net Investment income -- (0.07) (0.12) (0.23)
In excess of net investment income -- (0.01) -- --
Net realized gains -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (0.08) (0.12) (0.23)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.40 $8.92 $11.16 $10.01
=================================================================================================================================
TOTAL RETURN 16.59% (10.09)% 12.75% 2.44%
RATIOS AND SUPPLEMENTAL DATA
Net assets at end of period (in thousands) $ 80,246 $ 47,758 $ 115,941 $ 59,087
Ratio of expenses to average net assets before expense waiver 0.49% 0.46% 0.00% 0.00%
Ratio of expenses to average net assets after expense waiver 0.24% 0.23% 0.00% 0.00%
Ratio of net investment income to average net assets after expense waive 1.12% 0.56% 1.32% 2.46%
Portfolio turnover rate 8.52% 4.56% 2.77% 0.00%
=================================================================================================================================
</TABLE>
See notes to financial statements 23
<PAGE>
TIAA-CREF Mutual Funds
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)
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. 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 June 30, 1998, TIAA owned 50,535,999 shares of the Money Market Fund with a
value of $50,535,999; 3,416,867 shares of the Bond Plus Fund with a value of
$34,920,381; 3,844,033 shares of the Growth & Income Fund with a value of
$47,089,404; 3,884,176 shares of the Growth Equity Fund with a value of
$47,464,631; 4,435,084 shares of the International Equity Fund with a value of
$46,124,874; and 5,174,670 shares of the Managed Allocation Fund with a value of
$57,749,317.
At June 30, 1998, the Managed Allocation Fund owned 4,501,017 shares in the Bond
Plus Fund, which amounted to 44.4% of the total shares outstanding; 2,249,409
shares in the Growth & Income Fund, which amounted to 18.6% of the total shares
outstanding; 2,268,848 shares in the Growth Equity Fund, which amounted to 17.7%
of the total shares outstanding; and 1,340,725 shares in the International
Equity Fund, which amounted to 17.4% 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.
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 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.
24 1998 SEMI-ANNUAL REPORT
<PAGE>
TIAA-CREF Mutual Funds
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)--(Continued)
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 denominated 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 denominated 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 and delayed delivery purchases, a Fund does not
earn interest on such securities 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.
Dividends 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 annually for each of the Funds.
Undistributed net investment income and accumulated undistributed net realized
gain (loss) on total investments may include temporary book to tax basis
differences which will reverse in a subsequent period. Any permanent book to 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.
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:
1998 SEMI-ANNUAL REPORT 25
<PAGE>
TIAA-CREF Mutual Funds
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited)--(Concluded)
NOTE 3. MANAGEMENT AGREEMENT -- (Concluded)
<TABLE>
<CAPTION>
MANAGEMENT MANAGEMENT FEE
FEE WAIVER AFTER WAIVER
--------------- -------- ----------------
<S> <C> <C> <C>
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%
</TABLE>
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 June 30, 1998, net unrealized appreciation of portfolio investments,
consisting of gross unrealized appreciation and gross unrealized depreciation,
was as follows:
<TABLE>
<CAPTION>
GROSS UNREALIZED NET UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
------------------ ----------------- ------------------
<S> <C> <C> <C>
Bond Plus Fund $ 778,768 $ 33,235 $ 745,533
Growth & Income Fund 19,860,140 3,068,012 16,792,128
Growth Equity Fund 23,199,006 5,314,698 17,884,308
International Equity Fund 11,003,555 8,368,008 2,635,547
Managed Allocation Fund 8,779,939 -- 8,779,939
</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 six months
ended June 30, 1998, were as follows:
<TABLE>
<CAPTION>
NON- NON-
GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT
PURCHASES PURCHASES SALES SALES
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Money Market Fund $412,045,680 $ 11,356,022 $ 2,907,483 $ --
Bond Plus Fund 110,749,458 204,151,866 93,828,705 176,488,001
Growth & Income Fund 103,539,637 1,930,836 35,880,408 --
Growth Equity Fund 84,783,302 -- 11,296,613 --
International Equity Fund 27,884,892 -- 5,262,489 --
Managed Allocation Fund 49,996,442 -- 2,371,113 --
</TABLE>
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, 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
borrowing Funds at rates which are based on the Federal Funds Rate in effect
during the time of the borrowing. For the six months ended June 30, 1998, there
were no borrowings under the line of credit.
26 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS (Unaudited) MONEY MARKET FUND
June 30, 1998 Summary by Industry
---------------------------------------------------------
VALUE %
---------------------------------------------------------
SHORT TERM INVESTMENTS
BANK NOTES $ 5,497,584 4.58%
BANKERS ACCEPTANCES 2,156,981 1.80
CERTIFICATES OF DEPOSIT 14,049,606 11.70
COMMERCIAL PAPER 80,187,106 66.76
VARIABLE RATE NOTES 17,703,122 14.74
------------ -----
TOTAL SHORT TERM INVESTMENTS
(Cost $119,594,399) 119,594,399 99.58
------------ -----
TOTAL PORTFOLIO
(Cost $119,594,399) 119,594,399 99.58
OTHER ASSETS & LIABILITIES, NET 508,690 0.42
------------ -----
NET ASSETS $120,103,089 100.00%
============ ======
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS (Unaudited) MONEY MARKET FUND
June 30, 1998
- --------------------------------------------------
PRINCIPAL VALUE
- --------------------------------------------------
SHORT TERM INVESTMENTS -- 99.58%
BANK NOTES -- 4.58%
FIRST NATIONAL BANK
OF CHICAGO
$3,000,000 5.750%, 05/10/99 $ 2,998,430
HUNTINGTON NATIONAL BANK
2,500,000 5.800%, 09/22/98 2,499,154
-----------
5,497,584
-----------
BANKERS ACCEPTANCES -- 1.80%
CITIBANK, N.A.
91,700 5.600%, 07/17/98 91,472
51,808 5.630%, 07/24/98 51,622
69,112 5.580%, 07/29/98 68,812
60,000 5.580%, 07/31/98 59,721
400,000 5.520%, 08/17/98 397,117
114,336 5.670%, 08/24/98 113,363
125,458 5.670%, 09/01/98 124,233
120,000 5.550%, 09/09/98 118,705
134,519 5.550%, 09/11/98 133,025
76,894 5.700%, 09/24/98 75,859
220,362 5.550%, 09/25/98 217,441
90,000 5.700%, 09/29/98 88,718
74,232 5.700%, 10/02/98 73,139
70,000 5.700%, 10/07/98 68,914
69,000 5.700%, 10/15/98 67,842
187,295 5.670%, 10/16/98 184,138
73,853 5.700%, 11/03/98 72,391
153,985 5.670%, 11/23/98 150,469
-----------
2,156,981
-----------
CERTIFICATES OF DEPOSIT -- 11.70%
AMERICAN EXPRESS
CENTURION BANK
4,000,000 5.540%, 07/06/98 4,000,000
CANADIAN IMPERIAL BANK
OF COMMERCE
1,050,000 5.580%, 09/30/98 1,050,000
1,000,000 5.940%, 10/21/98 999,880
MORGAN GUARANTY TRUST CO
2,000,000 5.930%, 08/31/98 1,999,949
SWISS BANK CORP
2,000,000 5.880%, 11/20/98 1,999,777
WESTDEUTSCHE LANDESBANK
4,000,000 5.590%, 10/01/98 4,000,000
-----------
14,049,606
-----------
COMMERCIAL PAPER -- 66.76%
~ ASSET SECURITIZATION
COOPERATIVE CORP
4,000,000 5.520%, 08/03/98 3,979,760
~ ATLANTIC RICHFIELD CO
3,450,000 5.500%, 10/09/98 3,397,292
B.B.V. FINANCE (DELAWARE), INC
1,640,000 5.480%, 10/05/98 1,616,034
See notes to financial statements 1998 SEMI-ANNUAL REPORT 27
<PAGE>
TIAA-CREF Mutual Funds MONEY MARKET FUND
- ---------------------------------------------------------
PRINCIPAL VALUE
- ---------------------------------------------------------
COMMERCIAL PAPER -- (Continued)
BANKERS TRUST NEW YORK CORP
$1,250,000 5.510%, 12/23/98 $ 1,216,519
2,000,000 5.520%, 12/23/98 1,946,333
750,000 5.560%, 12/23/98 729,729
BELL ATLANTIC FINANCIAL
SERVICES, INC
4,160,000 5.530%, 07/14/98 4,151,693
~ BETA FINANCE, INC
225,000 5.420%, 07/16/98 224,492
3,400,000 5.510%, 08/10/98 3,379,184
CATERPILLAR FINANCIAL
SERVICES CORP
3,240,000 5.490%, 08/07/98 3,221,718
~ CIESCO LP
3,116,000 5.520%, 07/20/98 3,106,922
CIT GROUP HOLDINGS, INC
2,900,000 5.510%, 07/24/98 2,889,791
~ COLGATE-PALMOLIVE CO
3,575,000 5.510%, 07/01/98 3,575,000
~ CORPORATE ASSET FUNDING
CORP, INC
2,800,000 5.470%, 07/02/98 2,799,575
EASTMAN KODAK CO
1,900,000 5.510%, 08/03/98 1,890,403
~ ENTERPRISE FUNDING
CORP
4,300,000 5.520%, 08/31/98 4,259,781
FORD MOTOR CREDIT CO
1,930,000 5.500%, 07/10/98 1,927,346
GENERAL ELECTRIC CAPITAL CORP
1,500,000 5.550%, 07/08/98 1,498,381
2,600,000 5.500%, 09/09/98 2,572,194
GENERAL MOTORS
ACCEPTANCE CORP
1,150,000 5.510%, 07/09/98 1,148,592
GTE FUNDING, INC
700,000 5.600%, 07/09/98 699,129
~ HEINZ (H.J.) CO
4,000,000 5.520%, 07/31/98 3,981,600
IBM CREDIT CORP
1,641,000 5.450%, 09/25/98 1,619,635
MCGRAW-HILL, INC
1,000,000 5.490%, 09/10/98 989,173
NATIONSBANK CORP
197,000 5.420%, 07/07/98 196,822
NORTHERN INDIANA PUBLIC
SERVICE CO
4,000,000 5.600%, 07/10/98 3,994,400
~ SAINT PAUL COS (THE)
3,000,000 5.570%, 08/07/98 2,982,826
~ SC JOHNSON & SON, INC
2,600,000 5.540%, 07/01/98 2,600,000
1,700,000 5.570%, 07/24/98 1,693,950
THE STANLEY WORKS
2,000,000 5.490%, 08/10/98 1,987,800
UBS FINANCE (DELAWARE), INC
4,000,000 5.510%, 08/05/98 3,978,572
WALT DISNEY CO
2,000,000 5.410%, 12/18/98 1,948,906
XEROX CAPITAL (EUROPE) PLC
2,000,000 5.520%, 07/14/98 1,996,013
XEROX CREDIT CORP
2,000,000 5.470%, 08/11/98 1,987,541
------------
80,187,106
------------
VARIABLE RATE NOTES -- 14.74%
BANKERS TRUST CO OF
NEW YORK
3,000,000 5.850%, 02/03/99 3,000,000
BEAR STEARNS CO, INC
2,000,000 5.653%, 01/05/99 2,000,000
GENERAL MOTORS
ACCEPTANCE CORP
1,000,000 5.567%, 09/21/98 999,848
GOLDMAN SACHS GROUP, LP
2,000,000 5.758%, 02/01/99 2,000,826
2,000,000 5.741%, 02/24/99 2,001,582
MERRILL LYNCH & CO, INC,
1,000,000 5.680%, 01/14/99 1,000,000
MORGAN STANLEY DEAN WITTER
1,000,000 5.616%, 11/06/98 1,000,000
1,400,000 5.890%, 01/15/99 1,400,585
PNC BANK, NA
2,300,000 5.676%, 09/25/98 2,300,427
SOCIETE GENERALE
2,000,000 5.775%, 09/08/98 1,999,854
------------
17,703,122
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $119,594,399) 119,594,399
------------
TOTAL PORTFOLIO
(Cost $119,594,399) $119,594,399
============
------------------
~Commercial Paper issued under the private placements 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.
28 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS (Unaudited) BOND PLUS FUND
June 30, 1998 Summary by Industry
- ------------------------------------------------------
VALUE %
- ------------------------------------------------------
BONDS
CORPORATE BONDS
ASSET BACKED $ 2,996,836 2.89%
BUSINESS SERVICES 1,987,600 1.92
COMMUNICATIONS 5,296,990 5.12
DEPOSITORY INSTITUTIONS 5,986,680 5.79
GENERAL MERCHANDISE STORES 1,994,080 1.93
HOLDING AND OTHER INVESTMENT
OFFICES 2,975,058 2.87
INDUSTRIAL MACHINERY AND
EQUIPMENT 2,000,480 1.93
NONDEPOSITORY INSTITUTIONS 4,239,020 4.10
OIL AND GAS EXTRACTION 1,518,060 1.47
PRINTING AND PUBLISHING 3,000,240 2.90
----------- ------
TOTAL CORPORATE BONDS
(Cost $31,901,115) 31,995,044 30.92
----------- ------
GOVERNMENT BONDS
AGENCY SECURITIES 15,038,490 14.53
MORTGAGE BACKED SECURITIES 28,135,689 27.19
U.S. TREASURY SECURITIES 24,928,527 24.09
----------- ------
TOTAL GOVERNMENT BONDS
(Cost $67,451,102) 68,102,706 65.81
------------ -----
TOTAL BONDS
(Cost $99,352,217) $100,097,750 96.73%
------------ -----
SHORT TERM INVESTMENTS
COMMERCIAL PAPER 16,386,277 15.83
------------ -----
TOTAL SHORT TERM INVESTMENTS
(Cost $16,386,277) 16,386,277 15.83
------------ -----
TOTAL PORTFOLIO
(Cost $115,738,494) 116,484,027 112.56
OTHER ASSETS & LIABILITIES, NET (13,001,595) (12.56)
------------ -----
NET ASSETS $103,482,432 100.00%
============ ======
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS (Unaudited) BOND PLUS FUND
June 30, 1998
- -----------------------------------------------------------------
PRINCIPAL RATINGS+ VALUE
- -----------------------------------------------------------------
BONDS -- 96.73%
CORPORATE BONDS -- 30.92%
ASSET BACKED -- 2.89%
CITIBANK CREDIT CARD
MASTER TR SERIES 1998-6
(CLASS A)
$1,000,000 5.855%, 04/10/03 AAA $ 999,883
GREEN TREE HOME
EQUITY LOAN TR
SERIES 1998-C (CLASS A3)
1,000,000 6.180%, 07/15/29 AAA 1,001,328
UCFC HOME EQUITY LOAN
SERIES 1998-B (CLASS A8)
1,000,000 6.180%, 10/15/29 AAA 995,625
----------
2,996,836
----------
BUSINESS SERVICES -- 1.92%
^COMPUTER ASSOCIATES
INTERNATIONAL DEB
2,000,000 6.375%, 04/15/05 BAA1 1,987,600
-----------
COMMUNICATIONS -- 5.12%
VIACOM, INC (SR NOTE)
3,000,000 7.750%, 06/01/05 BA2 3,196,350
WORLDCOM, INC
(SR NOTE)
2,000,000 9.375%, 01/15/04 BAA2 2,100,640
----------
5,296,990
----------
DEPOSITORY INSTITUTIONS -- 5.79%
NATIONSBANK CORP
(SR NOTE)
3,000,000 5.750%, 03/15/01 AA3 2,982,990
^ As provided by Moody's Investors Services
See notes to financial statements 1998 SEMI-ANNUAL REPORT 29
<PAGE>
TIAA-CREF Mutual Funds BOND PLUS FUND
- -----------------------------------------------------------
PRINCIPAL RATINGS VALUE
- -----------------------------------------------------------
DEPOSITORY INSTITUTIONS (Continued)
PROVIDIAN NATIONAL
BANK (SR NOTE)
$3,000,000 6.250%, 05/06/01 BAA3 $ 3,003,690
-----------
5,986,680
-----------
GENERAL MERCHANDISE STORES -- 1.93%
WAL-MART STORES, INC
2,000,000 5.650%, 02/01/10 AA2 1,994,080
-----------
HOLDING AND OTHER INVESTMENT
OFFICES -- 2.87%
^AMERCO, INC
1,000,000 6.650%, 10/15/99 BA1 1,002,558
^CRIIMI MAE CMBS CORP
SERIES 1998-1 (CLASS A1)
1,000,000 5.697%, 10/20/01 AAA 990,313
^CRIIMI MAE CMBS CORP
SERIES 1998-1 (CLASS A3)
1,000,000 6.306%, 12/20/07 AAA 982,187
-----------
2,975,058
-----------
INDUSTRIAL MACHINERY AND
EQUIPMENT -- 1.93%
IBM CORP DEB
2,000,000 6.500%, 01/15/28 A1 2,000,480
-----------
NONDEPOSITORY INSTITUTIONS -- 4.10%
GENERAL MOTORS
2,000,000 7.375%, 09/09/99 A2 2,033,900
MONEY STORE, INC NOTE
2,000,000 8.375%, 04/15/04 BA1 2,205,120
-----------
4,239,020
-----------
OIL AND GAS EXTRACTION -- 1.47%
PETRO GEO-SERVICES ASA
(SR NOTE)
1,500,000 7.125%, 03/30/28 BAA3 1,518,060
-----------
PRINTING AND PUBLISHING -- 2.90%
^TIME WARNER, INC
(PASS-THRU CERT)
2,000,000 6.100%, 12/30/01 BAA3 1,990,240
ZIFF-DAVIS, INC
(SR SUB NOTE)
1,000,000 8.500%, 05/01/08 B2 1,010,000
-----------
3,000,240
-----------
TOTAL CORPORATE BONDS
(Cost $31,901,115) 31,995,044
-----------
GOVERNMENT BONDS -- 65.81%
AGENCY SECURITIES -- 14.53%
FEDERAL HOME LOAN
BANK (FHLB)
2,000,000 6.035%, 09/27/99 2,008,440
500,000 5.370%, 01/16/03 493,435
FEDERAL HOME LOAN
MORTGAGE CORP
(FHLMC)
2,000,000 6.070%, 09/21/00 2,016,560
1,000,000 5.750%, 07/15/03 1,000,470
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION (FNMA)
2,000,000 5.625%, 03/15/01 1,996,880
STUDENT LOAN MARKETING
ASSOCIATION (SLMA)
6,500,000 5.570%, 03/17/00 6,490,835
TENNESSEE VALLEY
AUTHORITY (TVA)
1,000,000 6.250%, 12/15/17 1,031,870
-----------
15,038,490
-----------
MORTGAGE BACKED SECURITIES -- 27.19%
FEDERAL HOME LOAN
MORTGAGE CORP
(FHLMC)
1,750,600 7.000%, 09/01/10 1,791,074
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION (FNMA)
2,049,838 6.000%, 12/01/08 2,037,908
1,482,680 6.500%, 03/01/13 1,491,205
2,017,868 8.000%, 03/01/23 2,093,821
1,488,397 9.000%, 11/01/25 1,575,126
1,000,000 6.500%, 06/01/28 995,938
6,500,000 @ 6.500%, 08/25/28 6,473,545
6,000,000 @ 7.000%, 08/25/28 6,084,360
1,000,000 @ 7.500%, 08/25/28 1,025,620
GOVERNMENT NATIONAL
MORTGAGE
ASSOCIATION (GNMA)
1,988,565 7.500%, 11/15/23 2,046,571
996,205 7.000%, 04/15/28 1,012,503
1,483,744 7.000%, 05/15/28 1,508,018
-----------
28,135,689
-----------
U.S. TREASURY SECURITIES -- 24.09%
U.S. TREASURY BOND
6,700,000 5.625%, 05/15/08 6,791,053
4,600,000 8.000%, 11/15/21 5,929,676
2,300,000 6.125%, 11/15/27 2,464,588
U.S. TREASURY NOTE
1,175,000 6.250%, 02/28/02 1,201,990
2,000,000 7.250%, 05/15/04 2,170,000
6,000,000 6.500%, 10/15/06 6,371,220
-----------
24,928,527
-----------
TOTAL GOVERNMENT BONDS
(Cost $67,451,102) 68,102,706
-----------
TOTAL BONDS
(Cost $99,352,217) 100,097,750
-----------
+ As provided by Moody's Investors Services
30 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds BOND PLUS FUND
- ----------------------------------------------------------
PRINCIPAL VALUE
- ----------------------------------------------------------
SHORT TERM INVESTMENTS -- 15.83%
COMMERCIAL PAPER -- 15.83%
~ ENRON CORP
$2,100,000 # 7.000%, 07/01/98 $ 2,100,000
~ HOUSTON INDUSTRIES
FINANCECO LP
4,000,000 # 5.650%, 07/06/98 3,996,861
~ LOCKHEED MARTIN
2,800,000 # 5.690%, 07/16/98 2,793,362
~ RAYTHEON CO
4,000,000 # 5.690%, 07/06/98 3,996,839
~ SONAT, INC
1,000,000 # 5.650%, 07/06/98 999,215
~ VOLVO GROUP TREASURY
N.A. INC
2,500,000 # 6.500%, 07/01/98 2,500,000
-------------
16,386,277
-------------
TOTAL SHORT TERM INVESTMENTS
(Cost $16,386,277) 16,386,277
-------------
TOTAL PORTFOLIO
(Cost $115,738,494) $116,484,027
=============
------------------------
^ 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 6/30/98, the value of these securities
amounted to $6,952,898 or 6.72% 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.
~ Commercial Paper issued under the private
placements exemption under section 4(2) of the Securities Act of 1933, as
amended.
------------------------
OTHER INFORMATION:
The Composition of Long-Term Debt Holdings as a Percentage of Total Value of
Investment in Debt Securities, is as Follows:
MOODY'S RATINGS
AAA, AA, A 13.97%
BAA 10.59%
BA 6.40%
B 1.01%
U.S. Government obligations represent 68.03% 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.
See notes to financial statements 1998 SEMI-ANNUAL REPORT 31
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH AND INCOME FUND
(Unaudited) Summary by Industry
June 30, 1998
- ---------------------------------------------------------
VALUE %
- ---------------------------------------------------------
PREFERRED STOCK
RUBBER AND MISCELLANEOUS
PLASTICS PRODUCTS $ 9,954 0.01%
------------ -----
TOTAL PREFERRED STOCK
(Cost $10,534) 9,954 0.01
------------ ------
COMMON STOCK
AGRICULTURAL
PRODUCTION-- CROPS 74,475 0.05
AMUSEMENT AND RECREATION
SERVICES 1,622,614 1.10
APPAREL AND ACCESSORY STORES 435,565 0.29
APPAREL AND OTHER
TEXTILE PRODUCTS 107,150 0.07
AUTO REPAIR, SERVICES
AND PARKING 37,053 0.03
AUTOMOTIVE DEALERS AND
SERVICE STATIONS 72,325 0.05
BUILDING MATERIALS AND
GARDEN SUPPLIES 670,094 0.45
BUSINESS SERVICES 6,502,142 4.40
CHEMICALS AND ALLIED
PRODUCTS 25,484,796 17.25
COMMUNICATIONS 17,539,708 11.87
DEPOSITORY INSTITUTIONS 8,079,825 5.47
EATING AND DRINKING PLACES 415,234 0.28
ELECTRIC, GAS, AND
SANITARY SERVICES 2,280,525 1.54
ELECTRONIC & OTHER
ELECTRIC EQUIPMENT 12,436,567 8.42
FABRICATED METAL PRODUCTS 2,448,870 1.66
FOOD AND KINDRED PRODUCTS 6,094,954 4.12
FOOD STORES 2,550,829 1.73
FURNITURE AND
HOMEFURNISHINGS STORES 84,900 0.06
GENERAL BUILDING CONTRACTORS 30,600 0.02
GENERAL MERCHANDISE STORES 4,534,296 3.07
HEALTH SERVICES 530,323 0.36
HEAVY CONSTRUCTION,
EXCEPT BUILDING 37,031 0.03
HOLDING AND OTHER
INVESTMENT OFFICES 992,354 0.67
HOTELS AND OTHER
LODGING PLACES 1,894,648 1.28
INDUSTRIAL MACHINERY
AND EQUIPMENT 7,326,453 4.96
INSTRUMENTS AND RELATED
PRODUCTS 2,947,680 1.99
INSURANCE AGENTS, BROKERS
AND SERVICE 99,722 0.07
INSURANCE CARRIERS 10,540,840 7.13
LEATHER AND LEATHER PRODUCTS 4,519 0.00
LOCAL AND INTERURBAN
PASSENGER TRANSIT 115,281 0.08
LUMBER AND WOOD PRODUCTS 536,275 0.36
METAL MINING 298,494 0.20
MISCELLANEOUS MANUFACTURING
INDUSTRIES 1,605,654 1.09
MISCELLANEOUS RETAIL 786,775 0.53
MOTION PICTURES 635,169 0.43
NONDEPOSITORY INSTITUTIONS 5,228,940 3.54
OIL AND GAS EXTRACTION 9,282,795 6.28
PAPER AND ALLIED PRODUCTS 859,763 0.58
PERSONAL SERVICES 128,613 0.09
PETROLEUM AND COAL PRODUCTS 1,314,814 0.89
PRIMARY METAL INDUSTRIES 396,290 0.27
PRINTING AND PUBLISHING 1,166,994 0.79
RAILROAD TRANSPORTATION 383,969 0.26
RUBBER AND MISCELLANEOUS
PLASTICS PRODUCTS 861,842 0.58
SECURITY AND COMMODITY
BROKERS 925,600 0.63
STONE, CLAY, AND GLASS
PRODUCTS 175,806 0.12
TEXTILE MILL PRODUCTS 13,669 0.01
TOBACCO PRODUCTS 860,850 0.58
TRANSPORTATION BY AIR 1,259,377 0.85
TRANSPORTATION EQUIPMENT 3,343,218 2.26
WHOLESALE TRADE --
DURABLE GOODS 88,813 0.06
WHOLESALE TRADE--
NONDURABLE GOODS 935,396 0.63
------------ ------
TOTAL COMMON STOCK
(Cost $130,287,781) 147,080,489 99.53
------------ ------
SHORT TERM INVESTMENTS
U.S. GOVERNMENT & AGENCIES 1,720,000 1.16
------------ ------
TOTAL SHORT TERM INVESTMENTS
(Cost $1,720,000) 1,720,000 1.16
------------ ------
TOTAL PORTFOLIO
(Cost $132,018,315) 148,810,443 100.70
OTHER ASSETS & LIABILITIES, NET (1,031,136) (0.70)
------------ ------
NET ASSETS $147,779,307 100.00%
============ ======
32 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH AND INCOME FUND
(Unaudited)
June 30, 1998
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
PREFERRED STOCK -- 0.01%
RUBBER AND MISCELLANEOUS
PLASTICS PRODUCTS -- 0.01%
237 SEALED AIR CORP (CLASS A) $ 9,954
----------
TOTAL PREFERRED STOCK
(Cost $10,534) 9,954
----------
COMMON STOCK -- 99.53%
AGRICULTURAL PRODUCTION -- CROPS -- 0.05%
1,800 PIONEER-HI-BRED
INTERNATIONAL, INC 74,475
----------
AMUSEMENT AND RECREATION
SERVICES -- 1.10%
2,100 SMH AG. (BR) 1,622,614
----------
APPAREL AND ACCESSORY STORES -- 0.29%
1,634 oABERCROMBIE & FITCH CO
(CLASS A) 71,896
700 oCHARMING SHOPPES, INC 3,325
2,950 GAP, INC 181,794
500 NORDSTROM, INC 38,625
5,800 TJX COS, INC 139,925
----------
435,565
----------
APPAREL AND OTHER TEXTILE PRODUCTS -- 0.07%
1,200 oFRUIT OF THE LOOM, INC
(CLASS A) 39,825
500 LIZ CLAIBORNE, INC 26,125
800 VF CORP 41,200
----------
107,150
----------
AUTO REPAIR, SERVICES AND PARKING -- 0.03%
116 MIDAS, INC 2,335
1,100 RYDER SYSTEM, INC 34,718
----------
37,053
----------
AUTOMOTIVE DEALERS AND SERVICE
STATIONS -- 0.05%
1,000 oAUTOZONE, INC 31,938
700 CIRCUIT CITY STORES-
CIRCUIT CITY GROUP 32,813
400 PEP BOYS MANNY, MOE, &
JACK CO 7,574
----------
72,325
----------
BUILDING MATERIALS AND GARDEN
SUPPLIES -- 0.45%
6,700 HOME DEPOT, INC 556,519
2,800 LOWES COS, INC 113,575
----------
670,094
----------
BUSINESS SERVICES -- 4.40%
500 ADOBE SYSTEMS, INC 21,219
700 AUTODESK, INC 27,038
2,000 AUTOMATIC DATA
PROCESSING, INC 145,750
600 oCERIDIAN CORP 35,250
100 oCHOICEPOINT, INC 5,063
2,700 COGNIZANT CORP 170,100
21,076 COMPUTER ASSOCIATES
INTERNATIONAL, INC 1,171,035
2,500 oCOMPUTER SCIENCES CORP 160,000
1,200 DUN & BRADSTREET CORP 43,350
1,900 EQUIFAX, INC 68,994
3,100 FIRST DATA CORP 103,269
2,800 HBO& C0 98,700
800 INTERPUBLIC GROUP OF COS, INC 48,550
28,300 oMICROSOFT CORP 3,067,013
2,700 NEWELL COS, INC 134,494
2,400 oNOVELL, INC 30,600
10,750 oORACLE CORP 264,047
1,800 oPARAMETRIC TECHNOLOGY CORP 48,824
200 SHARED MEDICAL SYSTEMS CORP 14,687
26,380 oYOUNG & RUBICAM, INC 844,159
----------
6,502,142
----------
CHEMICALS AND ALLIED PRODUCTS -- 17.25%
13,400 ABBOTT LABORATORIES CO 547,725
1,600 AIR PRODUCTS & CHEMICALS, INC 64,000
400 ALBERT0 CULVER CO(CLASS B) 11,600
20 oALLERGAN SPECIALTY
THERAPEUTICS, INC (CLASS A) 205
1,100 ALLERGAN, INC 51,013
600 oALZA CORP 25,950
46,435 AMERICAN HOME PRODUCTS
CORP 2,403,011
4,700 oAMGEN, INC 307,263
900 AVON PRODUCTS, INC 69,750
23,387 BRISTOL MYERS SQUIBB CO 2,688,043
800 CLOROX CO 76,300
2,000 COLGATE PALMOLIVE CO 176,000
30 oCRESCENDO PHARMACEUTICALS
CORP 381
31,476 DU PONT (E.I.) DE NEMOURS & CO 2,348,897
500 EASTMAN CHEMICAL CO 31,125
1,400 ECOLAB, INC 43,400
500 oFMC CORP 34,094
400 GREAT LAKES CHEMICAL CORP 15,775
1,600 HERCULES, INC 65,800
20,342 oIMPERIAL CHEMICAL INDUSTRIES
PLC (ADR) 1,312,059
2,000 INTERNATIONAL FLAVORS &
FRAGRANCES, INC 86,875
9,100 JOHNSON & JOHNSON CO 671,125
7,600 LILLY (ELI) & CO 502,075
30,738 MERCK & CO, INC 4,111,208
1,300 MORTON INTERNATIONAL, INC 32,500
500 NALCO CHEMICAL CORP 17,563
See notes to financial statements 1998 SEMI-ANNUAL REPORT 33
<PAGE>
TIAA-CREF Mutual Funds GROWTH AND INCOME FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
CHEMICALS AND ALLIED PRODUCTS -- (Continued)
100 oOCTEL CORP $ 1,988
57,609 oOMEGA PROTEIN CORP 885,738
27,842 PFIZER, INC 3,026,077
8,100 PHARMACIA & UPJOHN, INC 373,613
1,100 PRAXAIR, INC 51,494
38,608 PROCTER & GAMBLE CO 3,515,741
400 ROHM & HAAS CO 41,575
14,439 SCHERING-PLOUGH CORP 1,322,973
1,200 SHERWIN-WILLIAMS CO 39,749
700 SIGMA ALDRICH CORP 24,587
2,100 UNION CARBIDE CORP 112,087
5,700 WARNER-LAMBERT CO 395,437
-----------
25,484,796
-----------
COMMUNICATIONS -- 11.87%
31,062 oAIRTOUCH COMMUNICATIONS,
INC 1,815,186
3,400 ALLTEL CORP 158,100
13,200 AMERITECH CORP 592,350
50,066 AT & T CORP 2,860,020
10,608 BELL ATLANTIC CORP 483,990
7,100 BELLSOUTH CORP 476,588
4,400 CBS CORP 139,700
1,000 oCLEAR CHANNEL
COMMUNICATIONS, INC 109,125
21,124 oCOM21, INC 448,885
2,400 COMCAST CORP (CLASS A) SPECIAL 97,425
1,100 FRONTIER CORP 34,650
6,600 GTE CORP 367,125
28,845 LUCENT TECHNOLOGIES, INC 2,399,543
4,700 MCI COMMUNICATIONS CORP 273,188
5,400 oMEDIA ONE GROUP, INC 237,263
500 oNEXTEL COMMUNICATIONS, INC
(CLASS A) 12,438
51,200 oRCN CORP 992,000
69,741 SBC COMMUNICATIONS, INC 2,789,640
3,000 SPRINT CORP 211,500
5,927 oTELE-COMMUNICATIONS, INC
(CLASS A) 227,819
3,346 oTELECOM-TCI VENTURES GROUP
(CLASS A) 67,129
4,014 oUS WEST, INC 188,690
52,797 oWORLDCOM, INC 2,557,354
-----------
17,539,708
-----------
DEPOSITORY INSTITUTIONS -- 5.47%
22,278 ASTORIA FINANCIAL CORP 1,191,873
4,390 BANC ONE CORP 245,017
2,700 BANK OF NEW YORK CO, INC 163,856
22,606 BANKAMERICA CORP 1,954,006
2,000 BANKBOSTON CORP 111,250
500 BANKERS TRUST CORP 58,031
9,500 CHASE MANHATTAN CORP 717,250
4,400 CITICORP CO 656,700
1,050 COMERICA, INC 69,563
1,650 FIFTH THIRD BANCORP 103,950
4,400 FIRST CHICAGO NBD CORP 389,950
1,800 FLEET FINANCIAL GROUP, INC 150,300
700 GOLDEN WEST FINANCIAL CORP 74,419
1,000 H.F. AHMANSON & CO 71,000
8,100 KEYCORP 288,563
1,800 MELLON BANK CORP 125,325
3,000 MORGAN (J.P.) & CO, INC 351,375
1,500 NATIONAL CITY CORP 106,500
5,200 NORWEST CORP 194,350
5,500 PNC BANK CORP 295,969
1,500 SUNTRUST BANKS, INC 121,969
4,965 U.S. BANCORP 213,495
1,100 WACHOVIA CORP 92,950
2,550 WASHINGTON MUTUAL, INC 110,765
600 WELLS FARGO & CO 221,399
-----------
8,079,825
-----------
EATING AND DRINKING PLACES -- 0.28%
2,300 DARDEN RESTAURANTS, INC 36,513
4,700 MCDONALDS CORP 324,300
1,050 oTRICON GLOBAL
RESTAURANTS, INC 33,272
900 WENDYS INTERNATIONAL, INC 21,149
-----------
415,234
-----------
ELECTRIC, GAS, AND SANITARY
SERVICES -- 1.54%
700 AMEREN CORP 27,825
1,300 AMERICAN ELECTRIC POWER
CO, INC 58,988
2,600 BALTIMORE GAS & ELECTRIC CO 80,763
2,700 BROWNING FERRIS INDUSTRIES, INC 93,825
1,000 CAROLINA POWER & LIGHT CO 43,375
1,500 CENTRAL & SOUTH WEST CORP 40,313
2,400 CINERGY CORP 84,000
1,700 COASTAL CORP 118,681
1,600 CONSOLIDATED EDISON CO OF
N.Y., INC 73,700
1,300 DOMINION RESOURCES, INC 52,975
1,900 DTE ENERGY CO 76,713
2,500 DUKE ENERGY CORP 148,125
2,800 EDISON INTERNATIONAL CO 82,775
1,600 ENTERGY CORP 46,000
4,200 FIRSTENERGY CORP 129,150
1,300 FPL GROUP, INC 81,900
800 GPU, INC 30,250
1,710 HOUSTON INDUSTRIES, INC 52,796
1,120 oLAIDLAW ENVIRONMENTAL
SERVICES, INC 4,060
1,000 oNIAGARA MOHAWK POWER CORP 14,938
300 NICOR, INC 12,038
1,000 NORTHERN STATES POWER CO 28,625
200 ONEOK, INC 7,975
2,000 PACIFICORP 45,250
4,100 PECO ENERGY CO 119,669
34 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds GROWTH AND INCOME FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
ELECTRIC, GAS, AND SANITARY
SERVICES -- (Continued)
200 PEOPLES ENERGY CORP $ 7,725
2,800 PG&E CORP 88,375
1,100 PP&L RESOURCES, INC 24,956
3,600 PUBLIC SERVICE ENTERPRISE
GROUP, INC 123,975
902 oSEMPRA ENERGY 25,038
600 SONAT, INC 23,175
4,700 SOUTHERN CO 130,131
1,612 TEXAS UTILITIES CO 67,100
1,500 UNICOM CORP 52,593
3,100 WASTE MANAGEMENT, INC 108,499
2,200 WILLIAMS COS, INC 74,249
-----------
2,280,525
-----------
ELECTRONIC & OTHER ELECTRIC
EQUIPMENT -- 8.42%
1,000 oADVANCED MICRO DEVICES, INC 17,063
1,500 AMP, INC 51,563
1,500 oANDREW CORP 27,094
3,000 oASCEND COMMUNICATIONS, INC 148,688
23,905 COOPER INDUSTRIES, INC 1,313,281
800 oDSC COMMUNICATIONS CORP 24,000
3,100 EMERSON ELECTRIC CO 187,163
55,440 GENERAL ELECTRIC CO 5,045,040
2,700 oGENERAL INSTRUMENT CORP 73,406
250 oGENERAL SEMICONDUCTOR, INC 2,469
1,200 HARRIS CORP 53,625
13,900 INTEL CORP 1,030,338
2,600 oLSI LOGIC CORP 59,963
700 MAYTAG CO 34,563
2,400 oMICRON TECHNOLOGY, INC 59,550
4,100 MOTOROLA, INC 215,506
1,000 oNATIONAL SEMICONDUCTOR
CORP 13,188
45,012 NOKIA OYJ (ADR) 3,266,183
5,600 NORTHERN
TELECOMMUNICATIONS LTD (U.S.) 317,800
500 SCIENTIFIC-ATLANTA, INC 12,687
3,400 oTELLABS, INC 243,524
2,600 TEXAS INSTRUMENTS, INC 151,612
1,000 oTHERMO ELECTRON CORP 34,187
400 THOMAS & BETTS CORP 19,700
500 WHIRLPOOL CORP 34,374
------------
12,436,567
------------
FABRICATED METAL PRODUCTS -- 1.66%
300 AEROQUIP-VICKERS, INC 17,513
200 BALL CORP 8,038
300 CRANE CO 14,569
900 CROWN CORK & SEAL CO, INC 42,750
11,800 GILLETTE CO 668,913
2,400 ILLINOIS TOOL WORKS, INC 160,050
1,100 MASCO CORP 66,550
1,950 PARKER-HANNIFIN CORP 74,344
1,500 ROCKWELL INTERNATIONAL
CORP 72,093
400 SNAP-ON, INC 14,500
31,508 STANLEY WORKS CO 1,309,550
------------
2,448,870
------------
FOOD AND KINDRED PRODUCTS -- 4.12%
70 oAGRIBRANDS INTERNATIONAL, INC 2,118
4,300 ANHEUSER BUSCH COS, INC 202,906
3,885 ARCHER DANIELS MIDLAND CO 75,272
2,000 BESTFOODS, INC 116,125
500 BROWN FORMAN, INC (CLASS B) 32,125
3,200 CAMPBELL SOUP CO 170,000
22,600 COCA COLA CO 1,932,300
6,300 CONAGRA, INC 199,631
300 COORS (ADOLPH) CO (CLASS B) 10,200
250 oCORN PRODUCTS
INTERNATIONAL, INC 8,469
1,200 GENERAL MILLS, INC 82,050
2,500 HEINZ (H.J.) CO 140,313
1,000 HERSHEY FOODS CORP 69,000
2,800 KELLOGG CO 105,175
58,010 PEPSICO, INC 2,389,287
900 QUAKER OATS CO 49,444
700 RALSTON PURINA CO 81,769
3,300 SARA LEE CORP 184,594
3,500 SEAGRAMS CO LTD (U.S.) 143,281
320 oVLASIC FOODS
INTERNATIONAL, INC 6,440
700 WHITMAN CORP 16,055
800 WRIGLEY (WM) JR CO 78,400
------------
6,094,954
------------
FOOD STORES -- 1.73%
1,700 ALBERTSONS, INC 88,081
4,200 AMERICAN STORES CO 101,588
400 GIANT FOOD, INC (CLASS A) 17,225
300 GREAT ATLANTIC & PACIFIC
TEA CO, INC 9,919
1,700 oKROGER CO 72,888
54,315 oSAFEWAY, INC 2,209,941
1,000 WINN DIXIE STORES, INC 51,187
------------
2,550,829
------------
FURNITURE AND HOMEFURNISHINGS
STORES -- 0.06%
1,600 TANDY CORP 84,900
------------
GENERAL BUILDING CONTRACTORS -- 0.02%
400 CENTEX CORP 15,100
300 KAUFMAN & BROAD HOME CORP 9,525
200 PULTE CORP 5,975
------------
30,600
------------
GENERAL MERCHANDISE STORES -- 3.07%
1,400 oCOSTCO COS, INC 88,288
See notes to financial statements 1998 SEMI-ANNUAL REPORT 35
<PAGE>
TIAA-CREF Mutual Funds GROWTH AND INCOME FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
GENERAL MERCHANDISE STORES -- (Continued)
59,478 DAYTON HUDSON CORP $ 2,884,683
800 DILLARDS, INC (CLASS A) 33,150
2,000 oFEDERATED DEPARTMENT
STORES, INC 107,625
500 HARCOURT GENERAL, INC 29,750
4,300 oK MART CORP 82,775
3,000 MAY DEPARTMENT STORES CO 196,500
300 MERCANTILE STORES CO, INC 23,681
1,700 PENNEY, (J.C.) CO, INC 122,931
900 oVENATOR GROUP, INC 17,213
15,600 WAL-MART STORES, INC 947,700
------------
4,534,296
------------
HEALTH SERVICES -- 0.36%
700 oBEVERLY ENTERPRISES, INC 9,669
5,600 COLUMBIA/HCA HEALTHCARE
CORP 163,100
2,400 oHEALTHSOUTH CORP 64,050
1,100 oHUMANA, INC 34,306
1,000 MANOR CARE, INC 38,438
318 oPHARMERICA, INC 3,836
4,300 oTENET HEALTHCARE CORP 134,374
1,300 UNITED HEALTHCARE CORP 82,550
------------
530,323
------------
HEAVY CONSTRUCTION, EXCEPT
BUILDING -- 0.03%
600 FLUOR CORP 30,600
300 FOSTER WHEELER CORP 6,431
------------
37,031
------------
HOLDING AND OTHER INVESTMENT
OFFICES -- 0.67%
3,450 MBNA CORP 113,850
10,362 NATIONSBANK CORP 792,693
800 REPUBLIC NEW YORK CORP 50,350
734 STARWOOD HOTELS & RESORTS 35,461
------------
992,354
------------
HOTELS AND OTHER LODGING PLACES-- 1.28%
83,443 oCENDANT CORP 1,741,873
1,700 oHARRAHS ENTERTAINMENT, INC 39,525
1,700 HILTON HOTELS CORP 48,450
1,800 MARRIOTT INTERNATIONAL
(CLASS A) 58,275
225 oSODEXHO MARRIOTT
SERVICES, INC 6,525
------------
1,894,648
------------
INDUSTRIAL MACHINERY AND
EQUIPMENT -- 4.96%
2,300 o3COM CORP 70,581
900 oAPPLE COMPUTER, INC 25,819
2,400 oAPPLIED MATERIALS, INC 70,800
1,100 BAKER HUGHES, INC 38,019
1,400 oBAY NETWORKS, INC 45,150
600 BLACK & DECKER CORP 36,600
700 BRUNSWICK CORP 17,325
1,100 oCABLETRON SYSTEMS, INC 14,781
500 CASE CORP 24,125
2,600 CATERPILLAR, INC 137,475
600 CINCINNATI MILACRON, INC 14,588
10,400 oCISCO SYSTEMS, INC 957,450
12,608 COMPAQ COMPUTER CORP 357,752
300 CUMMINS ENGINE CO, INC 15,375
300 oDATA GENERAL CORP 4,481
2,900 DEERE & CO 153,338
7,200 oDELL COMPUTER CORP 668,250
1,600 DOVER CORP 54,800
1,200 DRESSER INDUSTRIES, INC 52,875
100 EASTERN ENTERPRISES CO 4,288
700 EATON CORP 54,425
3,400 oEMC CORP 152,363
500 GENERAL SIGNAL CORP 18,000
300 HARNISCHFEGER INDUSTRIES, INC 8,494
7,000 HEWLETT-PACKARD CO 419,125
350 HUSSMANN INTERNATIONAL, INC 6,497
1,050 INGERSOLL-RAND CO 46,266
300 oINTERGRAPH CORP 2,569
17,201 INTERNATIONAL BUSINESS
MACHINES CORP 1,974,890
400 MCDERMOTT INTERNATIONAL,
INC 13,775
900 PALL CORP 18,450
2,000 PITNEY BOWES, INC 96,250
4,500 oSEAGATE TECHNOLOGY, INC 107,156
1,200 oSILICON GRAPHICS, INC 14,550
2,500 oSUN MICROSYSTEMS, INC 108,594
900 TIMKEN CO 27,730
52,561 oUNISYS CORP 1,484,847
400 oUNOVA, INC 8,600
------------
7,326,453
------------
INSTRUMENTS AND RELATED PRODUCTS-- 1.99%
900 BARD (C.R.), INC 34,256
400 BAUSCH & LOMB, INC 20,050
1,900 BAXTER INTERNATIONAL, INC 102,244
800 BECTON DICKINSON & CO 62,100
800 BIOMET, INC 26,450
3,300 oBOSTON SCIENTIFIC CORP 236,363
2,800 EASTMAN KODAK CO 204,575
300 EG & G, INC 9,000
2,000 GUIDANT CORP 142,625
900 HONEYWELL, INC 75,206
600 JOHNSON CONTROLS, INC 34,313
500 MALLINCKRODT, INC 14,844
3,200 MEDTRONIC, INC 204,000
300 MILLIPORE CORP 8,175
300 PERKIN-ELMER CORP 18,656
500 POLAROID CORP 17,781
318 RAYTHEON CO (CLASS A) 18,325
3,400 RAYTHEON CO(CLASS B) 201,025
36 1998 SEMI-ANNUAL REPORT See notes to financial statement
<PAGE>
TIAA-CREF Mutual Funds GROWTH AND INCOME FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
INSTRUMENTS AND RELATED
PRODUCTS -- (Continued)
600 oST. JUDE MEDICAL, INC $ 22,088
300 TEKTRONIX, INC 10,612
500 U.S. SURGICAL CORP 22,812
14,388 XEROX CORP 1,462,180
------------
2,947,680
------------
INSURANCE AGENTS, BROKERS AND
SERVICE -- 0.07%
1,650 MARSH & MCLENNAN COS, INC 99,722
------------
INSURANCE CARRIERS -- 7.13%
1,000 AETNA, INC 76,125
20,971 ALLSTATE CORP 1,920,157
5,700 AMERICAN INTERNATIONAL
GROUP, INC 832,200
1,100 AON CORP 77,275
1,200 CHUBB CORP 96,450
3,900 CIGNA CORP 269,100
1,000 CINCINNATI FINANCIAL CORP 38,375
3,000 CONSECO, INC 140,250
24,985 EXEL LTD 1,944,145
600 GENERAL REINSURANCE CORP 152,100
800 HARTFORD FINANCIAL SERVICES
GROUP, INC 91,500
750 JEFFERSON-PILOT CORP 43,453
27,311 LIFE RE CORP 2,263,399
700 LINCOLN NATIONAL CORP 63,963
800 LOEWS CORP 69,700
600 MBIA, INC 44,925
800 MGIC INVESTMENT CORP 45,650
1,300 PROGRESSIVE CORP 183,300
600 PROVIDIAN FINANCIAL CORP 47,138
900 SAFECO CORP 40,894
1,650 ST. PAUL COS, INC 69,403
1,350 SUNAMERICA, INC 77,541
1,000 TORCHMARK CORP 45,750
500 TRANSAMERICA CORP 57,563
29,608 TRAVELERS GROUP, INC 1,794,984
1,000 UNUM CORP 55,500
------------
10,540,840
------------
LEATHER AND LEATHER PRODUCTS -- 0.00%
300 STRIDE RITE CORP 4,519
------------
LOCAL AND INTERURBAN PASSENGER
TRANSIT -- 0.08%
7,900 LAIDLAW, INC 96,281
1,600 oLAIDLAW, INC (CLASS B) 19,000
------------
115,281
------------
LUMBER AND WOOD PRODUCTS -- 0.36%
600 GEORGIA-PACIFIC CORP
(PACKAGING GROUP) 35,363
600 GEORGIA-PACIFIC CORP
(TIMBER GROUP) 13,838
800 LOUISIANA PACIFIC CORP 14,600
35,800 MACMILLAN BLOEDEL LTD 382,212
1,400 WEYERHAEUSER CO 64,662
800 WILLAMETTE INDUSTRIES, INC 25,600
------------
536,275
------------
METAL MINING -- 0.20%
1,600 ALCAN ALUMINIUM CO LTD (U.S.) 44,200
2,600 BARRICK GOLD CORP 49,888
1,600 BATTLE MOUNTAIN GOLD CO 9,500
600 CYPRUS AMAX MINERALS CO 7,950
1,000 oECHO BAY MINES LTD (U.S.) 2,250
2,500 FREEPORT-MCMORAN COPPER
& GOLD, INC (CLASS B) 37,969
1,000 HOMESTAKE MINING CO 10,375
2,800 INCO LTD CO 38,150
1,100 NEWMONT MINING CORP 25,988
400 PHELPS DODGE CORP 22,874
4,200 PLACER DOME, INC 49,350
------------
298,494
------------
MISCELLANEOUS MANUFACTURING
INDUSTRIES -- 1.09%
300 ARMSTRONG WORLD
INDUSTRIES, INC 20,213
900 HASBRO, INC 35,381
500 JOSTENS, INC 11,938
2,000 MATTEL, INC 84,625
2,900 MINNESOTA MINING &
MANUFACTURING CO 238,344
100 NACCO INDUSTRIES, INC (CLASS A) 12,925
19,083 TYCO INTERNATIONAL LTD 1,202,228
------------
1,605,654
------------
MISCELLANEOUS RETAIL -- 0.53%
2,200 CVS CORP 85,663
600 LONGS DRUG STORES CORP 17,325
1,600 RITE AID CORP 60,100
6,100 SEARS ROEBUCK & CO 372,481
4,700 oTOYS R US, INC 110,744
3,400 WALGREEN CO 140,462
------------
786,775
------------
MOTION PICTURES -- 0.43%
5,900 DISNEY (WALT) CO 619,869
600 oKING WORLD PRODUCTIONS, INC 15,300
------------
635,169
------------
NONDEPOSITORY INSTITUTIONS -- 3.54%
5,500 AMERICAN EXPRESS CO 627,000
1,700 AMERICAN GENERAL CORP 121,019
17,157 oASSOCIATES FIRST CAPITAL CORP 1,318,944
400 BENEFICIAL CORP 61,275
700 COUNTRYWIDE CREDIT
INDUSTRIES, INC 35,525
38,373 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 2,331,160
See notes to financial statements 1998 SEMI-ANNUAL REPORT 37
<PAGE>
TIAA-CREF Mutual Funds GROWTH AND INCOME FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
NONDEPOSITORY INSTITUTIONS -- (Continued)
6,268 oFIRST UNION CORP $ 365,111
4,800 FREDDIE MAC 225,900
900 GREEN TREE FINANCIAL CORP 38,531
2,100 HOUSEHOLD INTERNATIONAL,
INC 104,475
------------
5,228,940
------------
OIL AND GAS EXTRACTION -- 6.28%
12,200 AMOCO CORP 507,825
1,205 BURLINGTON RESOURCES, INC 51,890
600 COLUMBIA ENERGY GROUP 33,375
700 CONSOLIDATED NATURAL
GAS CO 41,213
749 oEEX CORP 7,022
61,820 EXXON CORP 4,409,072
1,700 HALLIBURTON CO 75,756
400 HELMERICH & PAYNE, INC 8,900
700 KERR-MCGEE CORP 40,513
14,009 MOBIL CORP 1,073,440
2,300 OCCIDENTAL PETROLEUM CORP 62,100
1,600 oORYX ENERGY CO 35,400
1,800 PHILLIPS PETROLEUM CO 86,738
600 oROWAN COS, INC 11,663
15,600 ROYAL DUTCH PETROLEUM CO
(N.Y. REGD)ADR 855,075
700 oSANTA FE ENERGY
RESOURCES, INC 7,525
27,236 SCHLUMBERGER LTD 1,860,559
1,700 UNION PACIFIC RESOURCES
GROUP, INC 29,855
1,000 oWESTERN ATLAS, INC 84,874
------------
9,282,795
------------
PAPER AND ALLIED PRODUCTS -- 0.58%
700 AVERY DENNISON CORP 37,625
400 BEMIS, INC 16,350
300 BOISE CASCADE CORP 9,825
700 CHAMPION INTERNATIONAL
CORP 34,431
2,500 FORT JAMES CORP 111,250
2,100 INTERNATIONAL PAPER CO 90,300
5,500 KIMBERLY-CLARK CORP 252,313
1,900 MEAD CORP 60,325
200 POTLATCH CORP 8,400
1,700 oSTONE CONTAINER CORP 26,563
400 TEMPLE-INLAND, INC 21,550
3,100 TENNECO, INC 117,994
500 UNION CAMP CORP 24,813
1,700 WESTVACO CORP 48,024
------------
859,763
------------
PERSONAL SERVICES -- 0.09%
700 BLOCK (H&R), INC 29,488
600 NATIONAL SERVICE
INDUSTRIES, INC 30,525
1,600 SERVICE CORP INTERNATIONAL 68,600
------------
128,613
------------
PETROLEUM AND COAL PRODUCTS -- 0.89%
600 AMERADA HESS CORP 32,588
1,400 ASHLAND, INC 72,275
2,200 ATLANTIC RICHFIELD CO 171,875
7,100 CHEVRON CORP 589,744
300 PENNZOIL CO 15,188
1,500 SUN CO, INC 58,219
3,706 TEXACO, INC 221,201
4,300 UNOCAL CORP 153,724
------------
1,314,814
------------
PRIMARY METAL INDUSTRIES -- 0.27%
1,200 ALLEGHENY TELEDYNE, INC 27,450
2,300 ALUMINUM CO OF AMERICA 151,656
700 oARMCO, INC 4,463
300 ASARCO, INC 6,675
1,400 oBETHLEHEM STEEL CORP 17,413
333 oCOMMSCOPE, INC 5,390
1,000 ENGELHARD CORP 20,250
300 INLAND STEEL INDUSTRIES, INC 8,456
600 NUCOR CORP 27,600
500 REYNOLDS METALS CO 27,969
2,000 USX-MARATHON GROUP, INC 68,625
600 USX-US STEEL GROUP, INC 19,800
700 WORTHINGTON INDUSTRIES, INC 10,543
------------
396,290
------------
PRINTING AND PUBLISHING -- 0.79%
500 AMERICAN GREETINGS CORP
(CLASS A) 25,469
1,400 DELUXE CORP 50,138
1,000 DONNELLEY (R.R.) & SONS CO 45,750
700 DOW JONES & CO, INC 39,025
2,600 GANNETT CO, INC 184,763
200 HARLAND (JOHN H.) CO 3,388
600 KNIGHT-RIDDER, INC 33,038
700 MCGRAW HILL COS, INC 57,094
400 MEREDITH CORP 18,775
600 MOORE CORP LTD 7,950
700 NEW YORK TIMES CO (CLASS A) 55,475
3,800 TIME WARNER, INC 324,663
700 TIMES MIRROR CO SERIES A 44,012
900 TRIBUNE CO 61,930
3,700 oVIACOM, INC (CLASS B) 215,524
------------
1,166,994
------------
RAILROAD TRANSPORTATION -- 0.26%
1,400 BURLINGTON NORTHERN
SANTA FE CORP 137,463
2,000 CSX CORP 91,000
2,700 NORFOLK SOUTHERN CORP 80,494
1,700 UNION PACIFIC CORP 75,012
------------
383,969
------------
38 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds GROWTH AND INCOME FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
RUBBER AND MISCELLANEOUS PLASTICS
PRODUCTS -- 0.58%
500 COOPER TIRE & RUBBER CO $ 10,313
1,600 DOW CHEMICAL CO 154,700
1,100 GOODRICH (B.F.) CO 54,588
1,100 GOODYEAR TIRE & RUBBER CO 70,881
500 oGRACE, W.R. & CO 8,531
5,800 MONSANTO CO 324,075
2,000 NIKE, INC (CLASS B) 97,375
1,300 RAYCHEM CORP 38,431
400 oREEBOK INTERNATIONAL LTD 11,075
1,000 RUBBERMAID, INC 33,188
268 oSEALED AIR CORP 9,849
820 SOLUTIA, INC 23,524
900 TUPPERWARE CORP 25,312
------------
861,842
------------
SECURITY AND COMMODITY BROKERS -- 0.63%
2,200 LEHMAN BROTHERS
HOLDINGS, INC 170,638
2,300 MERRILL LYNCH & CO, INC 212,175
5,300 MORGAN STANLEY, DEAN
WITTER & CO 484,287
1,800 SCHWAB (CHARLES) CORP 58,500
------------
925,600
------------
STONE, CLAY, AND GLASS PRODUCTS-- 0.12%
1,600 CORNING, INC 55,600
900 OWENS CORNING CO 36,731
1,200 PPG INDUSTRIES, INC 83,475
------------
175,806
------------
TEXTILE MILL PRODUCTS -- 0.01%
300 RUSSELL CORP 9,056
100 SPRING INDUSTRIES, INC 4,613
------------
13,669
------------
TOBACCO PRODUCTS -- 0.58%
1,200 FORTUNE BRANDS, INC 46,125
19,800 PHILIP MORRIS COS, INC 779,625
1,300 UST, INC 35,100
------------
860,850
------------
TRANSPORTATION BY AIR -- 0.85%
1,600 oAMR CORP 133,200
14,074 oCONTINENTAL AIRLINES, INC
(CLASS B) 856,755
500 DELTA AIRLINES, INC 64,625
1,040 oFDX CORP 65,260
1,500 SOUTHWEST AIRLINES CO 44,437
1,200 oU.S. AIRWAYS GROUP, INC 95,100
------------
1,259,377
------------
TRANSPORTATION EQUIPMENT -- 2.26%
22,502 ALLIED SIGNAL, INC 998,526
6,720 BOEING CO 299,460
7,700 CHRYSLER CORP 434,088
700 DANA CORP 37,450
400 ECHLIN, INC 19,625
200 FLEETWOOD ENTERPRISES, INC 8,000
8,200 FORD MOTOR CO 483,800
800 GENERAL DYNAMICS CORP 37,200
5,000 GENERAL MOTORS CORP 334,063
800 ITT INDUSTRIES, INC 29,900
1,300 LOCKHEED MARTIN CORP 137,638
500 MERITOR AUTOMOTIVE, INC 12,000
1,100 oNAVISTAR INTERNATIONAL CORP 31,763
1,100 NORTHROP GRUMMAN CORP 113,438
1,100 PACCAR, INC 57,475
1,100 TEXTRON, INC 78,855
1,500 TRW, INC 81,937
1,600 UNITED TECHNOLOGIES CORP 148,000
------------
3,343,218
------------
WHOLESALE TRADE-DURABLE GOODS -- 0.06%
200 BRIGGS & STRATTON CORP 7,488
1,200 GENUINE PARTS CO 41,475
800 GRAINGER (W.W.), INC 39,850
------------
88,813
------------
WHOLESALE TRADE-NONDURABLE GOODS-- 0.63%
2,000 CARDINAL HEALTH, INC 187,500
2,100 ENRON CORP 113,531
300 FLEMING COS, INC 5,269
900 IKON OFFICE SOLUTIONS, INC 13,106
400 SUPERVALU, INC 17,750
2,400 SYSCO CORP 61,500
6,800 UNILEVER NV-- N.Y. SHARES 536,740
------------
935,396
------------
TOTAL COMMON STOCK
(Cost $130,287,781) 147,080,489
------------
SHORT TERM INVESTMENTS -- 1.16%
U.S. GOVERNMENT & AGENCIES -- 1.16%
FEDERAL HOME LOAN BANK
$1,720,000 5.400%, 07/01/98 1,720,000
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $1,720,000) 1,720,000
------------
TOTAL PORTFOLIO
(Cost $132,018,315) $148,810,443
============
- ------------------
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 1998 SEMI-ANNUAL REPORT 39
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
(Unaudited) Summary by Industry
June 30, 1998
- ---------------------------------------------------------
VALUE %
- ---------------------------------------------------------
PREFERRED STOCK
HEALTH SERVICES $ 47 0.00%
RUBBER AND MISCELLANEOUS
PLASTICS PRODUCTS 11,970 0.01
----------- -----
TOTAL PREFERRED STOCK
(Cost $12,766) 12,017 0.01
----------- ------
COMMON STOCK
AGRICULTURAL PRODUCTION --
CROPS 118,038 0.08
AMUSEMENT AND RECREATION
SERVICES 5,544,220 3.54
APPAREL AND ACCESSORY STORES 455,292 0.29
APPAREL AND OTHER TEXTILE
PRODUCTS 75,375 0.05
AUTO REPAIR, SERVICES AND PARKING 54,313 0.04
AUTOMOTIVE DEALERS AND
SERVICE STATIONS 91,488 0.06
BUILDING MATERIALS AND
GARDEN SUPPLIES 829,469 0.53
BUSINESS SERVICES 9,247,502 5.90
CHEMICALS AND ALLIED PRODUCTS 22,953,805 14.65
COMMUNICATIONS 24,593,106 15.69
DEPOSITORY INSTITUTIONS 2,169,557 1.38
EATING AND DRINKING PLACES 637,479 0.41
EDUCATIONAL SERVICES 126,328 0.08
ELECTRIC, GAS, AND SANITARY
SERVICES 1,820,538 1.16
ELECTRONIC & OTHER ELECTRIC
EQUIPMENT 15,985,567 10.20
ENGINEERING AND MANAGEMENT
SERVICES 1,016,494 0.65
FABRICATED METAL PRODUCTS 1,984,872 1.27
FOOD AND KINDRED PRODUCTS 6,104,877 3.90
FOOD STORES 1,827,216 1.17
FURNITURE AND FIXTURES 39,163 0.02
FURNITURE AND HOMEFURNISHINGS
STORES 192,788 0.12
GENERAL BUILDING CONTRACTORS 27,425 0.02
GENERAL MERCHANDISE STORES 1,478,475 0.94
HEALTH SERVICES 811,721 0.52
HEAVY CONSTRUCTION,
EXCEPT BUILDING 31,931 0.02
HOLDING AND OTHER INVESTMENT
OFFICES 303,844 0.19
HOTELS AND OTHER
LODGING PLACES 1,836,250 1.17
INDUSTRIAL MACHINERY AND
EQUIPMENT 8,731,791 5.57
INSTRUMENTS AND RELATED
PRODUCTS 4,963,760 3.17
INSURANCE AGENTS, BROKERS
AND SERVICE $ 134,128 0.09
INSURANCE CARRIERS 7,232,907 4.62
LEATHER AND LEATHER PRODUCTS 13,810 0.01
LOCAL AND INTERURBAN
PASSENGER TRANSIT 21,938 0.01
LUMBER AND WOOD PRODUCTS 98,388 0.06
METAL MINING 154,106 0.10
MISCELLANEOUS MANUFACTURING
INDUSTRIES 8,341,133 5.32
MISCELLANEOUS REPAIR SERVICES 6,900 0.00
MISCELLANEOUS RETAIL 870,050 0.56
MOTION PICTURES 1,277,463 0.82
NONDEPOSITORY INSTITUTIONS 1,984,683 1.27
OIL AND GAS EXTRACTION 5,893,660 3.76
PAPER AND ALLIED PRODUCTS 410,138 0.26
PERSONAL SERVICES 146,700 0.09
PETROLEUM AND COAL PRODUCTS 98,469 0.06
PRIMARY METAL INDUSTRIES 162,318 0.10
PRINTING AND PUBLISHING 757,306 0.48
RAILROAD TRANSPORTATION 49,094 0.03
REAL ESTATE 24,756 0.02
RUBBER AND MISCELLANEOUS
PLASTICS PRODUCTS 2,560,945 1.63
SECURITY AND COMMODITY BROKERS 2,474,736 1.58
SOCIAL SERVICES 16,463 0.01
STONE, CLAY, AND GLASS PRODUCTS 170,844 0.11
TEXTILE MILL PRODUCTS 1,206,413 0.77
TOBACCO PRODUCTS 1,240,913 0.79
TRANSPORTATION BY AIR 494,883 0.32
TRANSPORTATION EQUIPMENT 2,902,086 1.85
TRANSPORTATION SERVICES 978 0.00
WHOLESALE TRADE --
DURABLE GOODS 198,919 0.13
WHOLESALE TRADE--
NONDURABLE GOODS 3,250,742 2.07
----------- ------
TOTAL COMMON STOCK
(Cost $138,363,496) 156,248,553 99.71
----------- ------
SHORT TERM INVESTMENTS
U.S. GOVERNMENT & AGENCIES 1,325,000 0.85
----------- ------
TOTAL SHORT TERM INVESTMENTS
(Cost $1,325,000) 1,325,000 0.85
----------- ------
TOTAL PORTFOLIO
(Cost $139,701,262) 157,585,570 100.57
OTHER ASSETS & LIABILITIES, NET (888,171) (0.57)
------------ ------
NET ASSETS $156,697,399 100.00%
============ ======
40 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
(Unaudited)
June 30, 1998
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
PREFERRED STOCK -- 0.01%
HEALTH SERVICES -- 0.00%
7 oMEDIQ, INC SERIES A 13% $ 47
------------
RUBBER AND MISCELLANEOUS
PLASTICS PRODUCTS -- 0.01%
285 SEALED AIR CORP (CLASS A) 11,970
------------
TOTAL PREFERRED STOCK
(Cost $12,766) 12,017
------------
COMMON STOCK -- 99.71%
AGRICULTURAL PRODUCTION-CROPS -- 0.08%
700 DELTA & PINE LAND CO 31,150
2,100 PIONEER-HI-BRED
INTERNATIONAL, INC 86,888
------------
118,038
------------
AMUSEMENT AND RECREATION
SERVICES -- 3.54%
100 oANCHOR GAMING CO 7,763
48,420 CARNIVAL CORP (CLASS A) 1,918,643
900 DOVER DOWNS
ENTERTAINMENT, INC 27,900
500 oFLORIDA PANTHERS
HOLDINGS, INC 9,844
300 oPENSKE MOTORSPORTS, INC 8,756
21,100 oPREMIER PARKS, INC 1,405,788
15,350 oSFX ENTERTAINMENT, INC
(CLASS A) 704,181
500 oSPEEDWAY MOTORSPORTS, INC 12,780
57,440 oWESTWOOD ONE, INC 1,448,565
------------
5,544,220
------------
APPAREL AND ACCESSORY STORES -- 0.29%
1,318 oABERCROMBIE & FITCH CO
(CLASS A) 57,992
600 oCHARMING SHOPPES, INC 2,850
200 oGADZOOKS, INC 5,512
3,300 GAP, INC 203,363
600 oMENS WAREHOUSE, INC 19,800
200 NORDSTROM, INC 15,450
600 oPACIFIC SUNWEAR
CALIFORNIA, INC 21,000
700 oSTAGE STORES, INC 31,675
800 oSTEIN MART, INC 10,800
3,600 TJX COS, INC 86,850
------------
455,292
------------
APPAREL AND OTHER TEXTILE
PRODUCTS -- 0.05%
400 oFRUIT OF THE LOOM, INC
(CLASS A) 13,275
400 LIZ CLAIBORNE, INC 20,900
800 VF CORP 41,200
------------
75,375
AUTO REPAIR, SERVICES AND PARKING-- 0.04%
500 oBUDGET GROUP, INC 15,969
150 MIDAS, INC 3,019
800 oRENTERS CHOICE, INC 22,700
400 RYDER SYSTEM, INC 12,625
------------
54,313
------------
AUTOMOTIVE DEALERS AND
SERVICE STATIONS -- 0.06%
1,600 oAUTOZONE, INC 51,100
700 CIRCUIT CITY STORES--
CIRCUIT CITY GROUP 32,813
400 PEP BOYS MANNY, MOE, &
JACK CO 7,575
------------
91,488
------------
BUILDING MATERIALS AND
GARDEN SUPPLIES -- 0.53%
700 FASTENAL CO 32,506
8,000 HOME DEPOT, INC 664,500
2,600 LOWES COS, INC 105,463
900 OAKWOOD HOMES CORP 27,000
------------
829,469
------------
BUSINESS SERVICES -- 5.90%
200 oABACUS DIRECT CORP 10,388
600 oABR INFORMATION SERVICES, INC 14,250
1,600 oACCUSTAFF, INC 50,000
400 ACKERLEY GROUP, INC 8,400
700 oACTIVISION, INC 7,218
100 oADMINSTAFF, INC 4,613
700 ADOBE SYSTEMS, INC 29,706
500 oADVO, INC 14,094
600 oALTERNATIVE RESOURCES CORP 7,425
3,600 AMERICA ONLINE, INC 381,600
300 oAPAC TELESERVICES, INC 1,752
300 oARBOR SOFTWARE CORP 9,431
200 oASPECT DEVELOPMENT, INC 15,125
400 AUTODESK, INC 15,450
2,500 AUTOMATIC DATA
PROCESSING, INC 182,188
230 oAZTEC TECHNOLOGY
PARTNERS, INC 1,755
800 oBILLING CONCEPTS CORP 12,400
700 oBISYS GROUP, INC 28,700
2,000 oBMC SOFTWARE, INC 103,874
900 oBOOLE & BABBAGE, INC 21,488
1,100 oCADENCE DESIGN SYSTEMS, INC 34,375
200 oCARIBINER INTERNATIONAL, INC 3,500
500 oCATALINA MARKETING CORP 25,969
500 oCCC INFORMATION SERVICES
GROUP, INC 8,250
See notes to financial statements 1998 SEMI-ANNUAL REPORT 41
<PAGE>
TIAA-CREF Mutual Funds GROWTH EQUITY FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
BUSINESS SERVICES -- (Continued)
1,600 oCERIDIAN CORP $ 94,000
130 oCHOICEPOINT, INC 6,580
400 oCIBER, INC 15,200
300 oCITRIX SYSTEMS, INC 20,513
1,700 COGNIZANT CORP 107,100
9,025 COMPUTER ASSOCIATES
INTERNATIONAL, INC 501,451
700 oCOMPUTER HORIZONS CORP 25,944
1,200 oCOMPUTER SCIENCES CORP 76,800
2,000 oCOMPUWARE CORP 102,250
200 oCORT BUSINESS SERVICES CORP 6,300
700 oCSG SYSTEMS INTERNATIONAL, INC 32,813
500 oDATA TRANSMISSION NETWORK
CORP 20,000
300 oDBT ONLINE, INC 8,100
200 oDOCUMENTUM, INC 9,600
1,300 DUN & BRADSTREET CORP 46,962
400 oE TRADE GROUP, INC 9,175
400 oEDIFY CORP 4,050
3,200 ELECTRONIC DATA SYSTEMS CORP 128,000
600 oELECTRONICS FOR IMAGING, INC 12,675
400 oENVOY CORP 18,950
1,300 EQUIFAX, INC 47,206
100 oFACTSET RESEARCH SYSTEMS, INC 3,250
4,000 FIRST DATA CORP 133,250
1,000 oFORE SYSTEMS, INC 26,500
900 oGARTNER GROUP, INC (CLASS A) 31,500
700 oGTECH HOLDINGS CORP 23,581
750 oHARBINGER CORP 18,141
4,680 HBO & CO 164,970
400 oHNC SOFTWARE 16,324
300 oHYPERION SOFTWARE CORP 8,550
200 oI2 TECHNOLOGIES, INC 7,025
500 oIDENTIX, INC 3,188
600 oINDUSTRI-MATEMATIK
INTERNATIONAL CORP 6,562
300 oINFORMATION MANAGEMENT
RESOURCES, INC 10,144
600 oINTERNATIONAL NETWORK
SERVICES 24,600
1,000 INTERPUBLIC GROUP OF COS, INC 60,688
600 oINTERSOLV, INC 9,638
600 oINTUIT, INC 36,750
200 oJDA SOFTWARE GROUP, INC 8,750
1,800 oKEANE, INC 100,800
600 oLAMAR ADVERTISING CO
(CLASS A) 21,525
1,100 oLEARNING CO, INC 32,588
600 oLEGATO SYSTEMS, INC 23,400
200 oLHS GROUP, INC 13,175
400 oLYCOS, INC 30,150
400 oMANUGISTICS GROUP, INC 9,900
600 oMEDQUIST, INC 17,325
39,025 oMICROSOFT CORP 4,229,333
100 oMIDWAY GAMES, INC 1,563
900 oNEOPATH, INC 6,469
1,300 NEWELL COS, INC 64,756
500 oNOVA CORP/GEORGIA 17,875
1,600 oNOVELL, INC 20,400
600 OMNICOM GROUP, INC 29,925
8,200 oORACLE CORP 201,413
900 oOUTDOOR SYSTEMS, INC 25,200
1,400 oPAGING NETWORK, INC 19,600
2,800 oPARAMETRIC TECHNOLOGY CORP 75,950
200 oPAYMENTECH, INC 4,112
1,400 oPEOPLESOFT, INC 65,800
800 oPLATINUM TECHNOLOGY, INC 22,850
500 oREMEDY CORP 8,500
854 oROMAC INTERNATIONAL, INC 25,940
200 SHARED MEDICAL SYSTEMS CORP 14,688
600 oSIEBEL SYSTEMS, INC 19,350
900 oSITEL CORP 5,962
400 oSNYDER COMMUNICATIONS, INC 17,600
300 oSTAFFMARK, INC 10,988
900 oSTERLING COMMERCE, INC 43,650
900 oSTRUCTURAL DYNAMICS
RESEARCH CORP 20,812
204 oSUNGARD DATA SYSTEMS, INC 7,829
1,530 oSYNOPSYS, INC 69,998
800 oSYSTEMS & COMPUTER
TECHNOLOGY CORP 21,600
300 oTECHNOLOGY SOLUTIONS CO 9,506
700 oTRANSACTION SYSTEM
ARCHITECTURE 26,950
500 oTRANSITION SYSTEMS, INC 5,313
400 oUSCS INTERNATIONAL, INC 8,275
1,050 oVERITAS SOFTWARE CORP 43,444
500 oVIASOFT, INC 8,094
600 oVISIO CORP 28,650
200 oVOLT INFORMATION
SCIENCES, INC 5,425
400 oWHITTMAN HART, INC 19,350
500 oWIND RIVER SYSTEMS, INC 17,938
600 oYAHOO, INC 94,500
25,000 oYOUNG & RUBICAM, INC 800,000
------------
9,247,502
------------
CHEMICALS AND ALLIED PRODUCTS -- 14.65%
32,600 ABBOTT LABORATORIES CO 1,332,525
900 oADVANCED TISSUE SCIENCE CO 3,994
800 oAGOURON PHARMACEUTICALS, INC 24,250
600 AIR PRODUCTS & CHEMICALS, INC 24,000
300 ALBERTO CULVER CO (CLASS B) 8,700
500 oALGOS PHARMACEUTICAL CORP 13,500
20 oALLERGAN SPECIALTY
THERAPEUTICS, INC (CLASS A) 205
400 ALLERGAN, INC 18,550
700 oALZA CORP 30,275
42 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds GROWTH EQUITY FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
CHEMICALS AND ALLIED
PRODUCTS -- (Continued)
27,100 AMERICAN HOME PRODUCTS
CORP $ 1,402,425
3,000 oAMGEN, INC 196,125
1,500 AVON PRODUCTS, INC 116,250
200 oBARR LABORATORIES, INC 7,950
1,000 oBIO-TECHNOLOGY GENERAL
CORP 7,094
1,100 oBIOGEN, INC 53,900
300 oBIOMATRIX, INC 12,300
14,325 BRISTOL MYERS SQUIBB CO 1,646,480
1,300 oCENTOCOR, INC 47,125
200 CHURCH & DWIGHT CO, INC 6,475
800 CLOROX CO 76,300
2,700 COLGATE PALMOLIVE CO 237,600
800 oCOLUMBIA LABORATORIES, INC 4,600
1,600 oCOVANCE, INC 36,000
1,000 oCREATIVE BIOMOLECULES, INC 4,813
735 oCRESCENDO PHARMACEUTICALS
CORP 9,325
1,600 CROMPTON & KNOWLES CORP 40,300
700 oCYGNUS, INC 7,306
200 oCYTEC INDUSTRIES, INC 8,850
1,200 DIAL CORP 31,125
2,700 DU PONT (E.I.) DE NEMOURS & CO 201,488
1,200 oDURA PHARMACEUTICALS, INC 26,850
400 EASTMAN CHEMICAL CO 24,900
1,000 ECOLAB, INC 31,000
200 oFMC CORP 13,638
1,900 oGENSIA SICOR, INC 7,600
300 GREAT LAKES CHEMICAL CORP 11,831
34,630 oGUILFORD PHARMACEUTICALS, INC 610,354
1,000 HERCULES, INC 41,125
500 oHUMAN GENOME SCIENCES, INC 17,844
500 oIDEC PHARMACEUTICALS CORP 11,780
400 oINHALE THERAPEUTIC SYSTEMS 9,900
900 INTERNATIONAL FLAVORS &
FRAGRANCES, INC 39,094
900 oISIS PHARMACEUTICALS, INC 12,319
14,800 JOHNSON & JOHNSON CO 1,091,500
600 JONES PHARMACEUTICAL, INC 19,875
1,000 LAUDER (ESTEE) CO (CLASS A) 69,688
1,000 oLIGAND PHARMACEUTICALS CO
(CLASS A) 12,875
18,650 LILLY (ELI) & CO 1,232,066
400 oMEDICIS PHARMACEUTICAL CORP
(CLASS A) 14,600
600 oMEDIMMUNE, INC 37,424
2,000 oMEDPARTNERS, INC 16,000
34,550 MERCK & CO, INC 4,621,063
700 MORTON INTERNATIONAL, INC 17,500
400 NALCO CHEMICAL CORP 14,050
1,000 NATURES SUNSHINE
PRODUCTS, INC 22,562
1,200 oNBTY, INC 22,050
700 oNEXSTAR PHARMACEUTICALS, INC 6,978
75 oOCTEL CORP 1,491
40,000 oOMEGA PROTEIN CORP 615,000
750 oORGANOGENESIS, INC 14,812
500 oPATHOGENESIS CORP 14,500
28,300 PFIZER, INC 3,075,856
2,900 PHARMACIA & UPJOHN, INC 133,763
1,300 PRAXAIR, INC 60,856
34,215 PROCTER & GAMBLE CO 3,115,703
300 oPROTEIN DESIGN
LABORATORIES, INC 7,228
200 oREVLON, INC (CLASS A) 10,275
300 ROHM & HAAS CO 31,180
400 oSANGSTAT MEDICAL CORP 12,550
8,000 SCHERING-PLOUGH CORP 733,000
900 SHERWIN-WILLIAMS CO 29,813
600 SIGMA ALDRICH CORP 21,075
600 oTWINLAB CORP 26,213
700 UNION CARBIDE CORP 37,363
700 oVERTEX PHARMACEUTICALS, INC 15,750
800 oVICAL, INC 13,550
17,100 WARNER-LAMBERT CO 1,186,312
2,500 oWATSON PHARMACEUTICALS, INC 116,719
2,000 oZILA, INC 14,500
------------
22,953,805
------------
COMMUNICATIONS -- 15.69%
900 o360 COMMUNICATIONS CO 28,800
5,200 oAIRTOUCH COMMUNICATIONS,
INC 303,875
1,100 ALLTEL CORP 51,150
34,395 AT & T CORP 1,964,813
40 BELL ATLANTIC CORP 1,825
100 oBET HOLDINGS, INC (CLASS A) 6,294
68,400 oCAPSTAR BROADCASTING CORP
(CLASS A) 1,718,550
38,720 CBS CORP 1,229,360
900 oCELLULAR COMMUNICATIONS
INTERNATIONAL, INC 44,888
30,150 oCHANCELLOR MEDIA CORP
(CLASS A) 1,497,136
600 CINCINNATI BELL, INC 17,175
20,968 oCLEAR CHANNEL
COMMUNICATIONS, INC 2,288,133
3,400 COMCAST CORP (CLASS A) SPECIAL 138,018
18,050 oCOX RADIO, INC (CLASS A) 780,663
24,598 oEMMIS BROADCASTING CORP
(CLASS A) 1,176,092
1,000 FRONTIER CORP 31,500
26,510 oGLOBALSTAR
TELECOMMUNICATIONS LTD 715,770
700 GTE CORP 38,937
13,200 oHEFTEL BROADCASTING CORP
(CLASS A) 590,700
See notes to financial statements 1998 SEMI-ANNUAL REPORT 43
<PAGE>
TIAA-CREF Mutual Funds GROWTH EQUITY FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
COMMUNICATIONS -- (Continued)
18,500 oLORAL SPACE &
COMMUNICATIONS LTD $ 522,625
36,880 LUCENT TECHNOLOGIES, INC 3,067,955
300 oMASTEC, INC 7,162
3,900 MCI COMMUNICATIONS CORP 226,688
3,400 oMEDIA ONE GROUP, INC 149,388
1,400 oPAGEMART WIRELESS, INC
(CLASS A) 12,688
12,800 oRCN CORP 248,000
2,500 SBC COMMUNICATIONS, INC 100,000
1,100 SPRINT CORP 77,550
3,436 oTELE-COMMUNICATIONS, INC
(CLASS A) 132,070
3,928 oTELECOM-TCI VENTURES GROUP
(CLASS A) 78,806
7,875 oTELEPORT COMMUNICATIONS
GROUP, INC (CLASS A) 427,219
600 oUNITED VIDEO SATELLITE
GROUP, INC 23,775
92 oUS WEST, INC 4,364
1,000 oVANGUARD CELLULAR
SYSTEMS, INC 18,875
600 oWEST TELESERVICES CORP 7,275
24,182 oWINSTAR COMMUNICATIONS, INC 1,038,315
119,890 oWORLDCOM, INC 5,807,172
300 oYOUNG BROADCASTING, INC
(CLASS A) 19,500
------------
24,593,106
------------
DEPOSITORY INSTITUTIONS -- 1.38%
900 COMERICA, INC 59,625
1,200 oCONCORD EFS, INC 31,350
1,950 FIFTH THIRD BANCORP 122,850
500 NORWEST CORP 18,688
1,200 SUNTRUST BANKS, INC 97,575
450 SYNOVUS FINANCIAL CORP 10,688
1,812 U.S. BANCORP 77,915
500 U.S. TRUST CORP 38,125
1,500 WASHINGTON MUTUAL, INC 65,156
4,465 WELLS FARGO & CO 1,647,585
------------
2,169,557
------------
EATING AND DRINKING PLACES -- 0.41%
800 APPLE SOUTH, INC 10,450
600 oAPPLEBEES INTERNATIONAL, INC 13,425
500 oCONSOLIDATED PRODUCTS, INC 10,563
900 DARDEN RESTAURANTS, INC 14,288
300 oFOODMAKER, INC 5,063
300 oLANDRYS SEAFOOD
RESTAURANTS, INC 5,427
6,300 MCDONALDS CORP 434,700
1,200 oNPC INTERNATIONAL, INC 14,700
700 oOUTBACK STEAKHOUSE, INC 27,300
600 oPAPA JOHNS INTERNATIONAL, INC 23,663
800 oPLANET HOLLYWOOD, INC
(CLASS A) 5,600
600 oTHE CHEESECAKE FACTORY CO 13,575
1,260 oTRICON GLOBAL
RESTAURANTS, INC 39,925
800 WENDYS INTERNATIONAL, INC 18,800
------------
637,479
------------
EDUCATIONAL SERVICES -- 0.08%
1,050 oAPOLLO GROUP, INC (CLASS A) 34,716
200 oCOMPUTER LEARNING
CENTERS, INC 4,975
1,600 oDEVRY, INC 35,100
600 oEDUCATION MANAGEMENT CORP 19,725
100 oITT EDUCATIONAL SERVICES, INC 3,225
200 oLEARNING TREE
INTERNATIONAL, INC 4,025
750 oSYLVAN LEARNING SYSTEMS, INC 24,562
------------
126,328
------------
ELECTRIC, GAS, AND SANITARY SERVICES -- 1.16%
900 oAES CORP 47,306
900 oALLIED WASTE INDUSTRIES, INC 21,600
1,000 oAMERICAN STANDARD COS, INC 44,688
1,000 BROWNING FERRIS INDUSTRIES, INC 34,750
600 COASTAL CORP 41,888
600 DUKE ENERGY CORP 35,550
800 FIRSTENERGY CORP 24,600
300 FPL GROUP, INC 18,900
1,120 oLAIDLAW ENVIRONMENTAL
SERVICES, INC 4,060
3,400 oREPUBLIC INDUSTRIES, INC 85,000
300 SONAT, INC 11,588
500 oSUPERIOR SERVICES, INC 15,030
12 TEXAS UTILITIES CO 500
26,275 oU.S.A. WASTE SERVICES, INC 1,297,328
2,200 WASTE MANAGEMENT, INC 77,000
1,800 WILLIAMS COS, INC 60,750
------------
1,820,538
------------
ELECTRONIC & OTHER ELECTRIC
EQUIPMENT -- 10.20%
500 oACTEL CORP 5,375
16,100 oADC TELECOMMUNICATIONS, INC 588,153
500 oADTRAN, INC 13,063
1,100 oADVANCED FIBRE
COMMUNICATIONS 44,069
800 oADVANCED MICRO DEVICES, INC 13,650
14,087 oALTERA CORP 416,447
900 AMP, INC 30,938
400 oANADIGICS, INC 5,450
25,500 oANALOG DEVICES, INC 626,344
800 oANDREW CORP 14,450
700 oARTESYN TECHNOLOGIES, INC 11,200
3,000 oASCEND COMMUNICATIONS, INC 148,688
44 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds GROWTH EQUITY FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
ELECTRONIC & OTHER ELECTRIC
EQUIPMENT -- (Continued)
1,400 oASPECT TELECOMMUNICATIONS
CORP $ 38,325
900 oATMEL CORP 12,263
400 oBERG ELECTRICS CORP 7,825
25,550 oCD RADIO, INC 983,675
1,000 oCIENA CORP 69,625
300 oCOHERENT COMMUNICATIONS
SYSTEMS CORP 14,044
1,155 oCOMVERSE TECHNOLOGY, INC 59,916
8,000 COOPER INDUSTRIES, INC 439,500
200 oDAVOX CORP 4,375
1,000 oDIGITAL MICROWAVE CORP 7,250
500 oDII GROUP, INC 8,531
700 oDSC COMMUNICATIONS CORP 21,000
2,400 EMERSON ELECTRIC CO 144,900
66,535 GENERAL ELECTRIC CO 6,054,685
1,100 oGENERAL INSTRUMENT CORP 29,906
275 oGENERAL SEMICONDUCTOR, INC 2,716
400 HARRIS CORP 17,875
100 oHMT TECHNOLOGY CORP 837
100 oHUTCHINSON TECHNOLOGY, INC 2,725
400 INNOVEX, INC 5,225
39,653 INTEL CORP 2,939,279
200 oJABIL CIRCUIT, INC 6,613
200 oLATTICE SEMICONDUCTOR CORP 5,680
10,225 oLERNOUT & HAUSPIE SPEECH
PRODUCTS 610,305
750 oLEVEL ONE COMMUNICATIONS, INC 17,625
15,989 LINEAR TECHNOLOGY CO 964,336
900 oLO-JACK CORP 11,194
1,600 oLSI LOGIC CORP 36,900
2,000 oMAXIM INTEGRATED PRODUCTS 63,375
500 MAYTAG CO 24,687
300 oMICREL, INC 9,750
1,200 oMICRON TECHNOLOGY, INC 29,775
5,700 MOTOROLA, INC 299,606
500 oMRV COMMUNICATIONS, INC 10,375
500 oNATIONAL SEMICONDUCTOR CORP 6,594
300 oNATURAL MICROSYSTEMS CORP 4,800
700 oNIMBUS CD INTERNATIONAL, INC 7,963
4,200 NORTHERN TELECOMMUNICATIONS
LTD (U.S.) 238,350
1,000 oP-COM, INC 9,155
1,500 oPAIRGAIN TECHNOLOGIES, INC 26,156
500 oPLANTRONICS, INC 25,750
400 oPLEXUS CORP 7,950
700 oPMC-SIERRA, INC 32,813
200 oPREMISYS COMMUNICATIONS, INC 4,975
200 oRAMBUS, INC 12,224
300 oREMEC, INC 3,413
300 oROYAL APPLIANCE
MANUFACTURING CO, INC 1,875
100 oSANDISK CORP 1,381
1,000 oSANMINA CORP 43,375
500 SCIENTIFIC-ATLANTA, INC 12,687
200 oSEMTECH CORP 3,538
200 oSIPEX CORP 4,300
600 oSMART MODULAR
TECHNOLOGIES, INC 8,775
300 oSPECTRIAN CORP 4,856
200 oTEKELEC 8,950
2,700 oTELLABS, INC 193,388
4,100 TEXAS INSTRUMENTS, INC 239,080
1,100 oTHERMO ELECTRON CORP 37,606
200 THOMAS & BETTS CORP 9,850
600 oUNITRODE CORP 6,900
300 oVISX, INC 17,850
2,000 oVITESSE SEMICONDUCTOR CORP 61,750
400 WHIRLPOOL CORP 27,500
500 oWORLD ACCESS, INC 15,000
1,000 oXILINX, INC 34,000
800 oZENITH ELECTRONICS CORP 238
------------
15,985,567
------------
ENGINEERING AND MANAGEMENT
SERVICES -- 0.65%
1,000 oCAMBRIDGE TECHNOLOGY
PARTNERS, INC 54,625
600 oCOR THERAPEUTICS, INC 8,325
1,700 oCORRECTIONS CORP OF AMERICA 39,950
400 oCURATIVE HEALTH SERVICES, INC 11,400
900 oICOS CORP 17,213
500 oINCYTE PHARMACEUTICALS, INC 17,063
1,100 oNFO WORLDWIDE, INC 19,593
9,600 oQUINTILES TRANSNATIONAL CORP 472,200
800 oRAMTRON INTERNATIONAL CORP 2,775
400 oRENAISSANCE WORLDWIDE, INC 8,700
18,700 oSTEVEN MYERS & ASSOCIATES, INC 359,975
200 oWACKENHUT CORRECTIONS CORP 4,675
------------
1,016,494
------------
FABRICATED METAL PRODUCTS -- 1.27%
200 AEROQUIP-VICKERS, INC 11,675
200 BALL CORP 8,038
300 CRANE CO 14,568
700 CROWN CORK & SEAL CO, INC 33,250
30,950 GILLETTE CO 1,754,478
800 ILLINOIS TOOL WORKS, INC 53,350
900 MASCO CORP 54,450
600 PARKER-HANNIFIN CORP 22,875
200 SNAP-ON, INC 7,250
600 STANLEY WORKS CO 24,938
------------
1,984,872
------------
FOOD AND KINDRED PRODUCTS -- 3.90%
90 oAGRIBRANDS INTERNATIONAL, INC 2,723
2,100 ANHEUSER BUSCH COS, INC 99,094
3,150 ARCHER DANIELS MIDLAND CO 61,030
2,400 BESTFOODS, INC 139,350
See notes to financial statements 1998 SEMI-ANNUAL REPORT 45
<PAGE>
TIAA-CREF Mutual Funds GROWTH EQUITY FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
FOOD AND KINDRED PRODUCTS-- (Continued)
300 BROWN FORMAN, INC (CLASS B) $ 19,275
2,600 CAMPBELL SOUP CO 138,125
27,000 COCA COLA CO 2,308,500
1,300 COCA COLA ENTERPRISES, INC 51,025
4,300 CONAGRA, INC 136,256
200 COORS (ADOLPH) CO (CLASS B) 6,800
300 oCORN PRODUCTS
INTERNATIONAL, INC 10,163
1,300 GENERAL MILLS, INC 88,888
2,500 HEINZ (H.J.) CO 140,312
1,300 HERSHEY FOODS CORP 89,700
2,900 KELLOGG CO 108,931
16,600 PEPSICO, INC 683,713
700 QUAKER OATS CO 38,456
13,950 RALSTON PURINA CO 1,629,534
3,900 SARA LEE CORP 218,156
500 oTRIARC COS, INC 10,969
260 oVLASIC FOODS
INTERNATIONAL, INC 5,233
900 WHITMAN CORP 20,644
1,000 WRIGLEY (WM) JR CO 98,000
------------
6,104,877
------------
FOOD STORES -- 1.17%
1,400 ALBERTSONS, INC 72,538
1,500 AMERICAN STORES CO 36,281
400 GIANT FOOD, INC (CLASS A) 17,225
200 GREAT ATLANTIC & PACIFIC
TEA CO, INC 6,613
2,100 oKROGER CO 90,038
37,750 oSAFEWAY, INC 1,535,952
900 oSTARBUCKS CORP 48,094
400 WINN DIXIE STORES, INC 20,475
------------
1,827,216
------------
FURNITURE AND FIXTURES -- 0.02%
100 BUSH INDUSTRIES, INC (CLASS A) 2,175
100 oKNOLL, INC 2,950
1,400 MILLER (HERMAN), INC 34,038
------------
39,163
------------
FURNITURE AND HOMEFURNISHINGS
STORES -- 0.12%
1,300 oBED BATH & BEYOND, INC 67,356
1,800 oCOMPUSA, INC 32,513
100 ETHAN ALLEN INTERIORS, INC 4,993
400 oGUITAR CENTER, INC 12,050
400 oLINENS N THINGS, INC 12,225
600 TANDY CORP 31,838
1,000 oWILLIAMS-SONOMA, INC 31,813
------------
192,788
------------
GENERAL BUILDING CONTRACTORS -- 0.02%
400 CENTEX CORP 15,100
200 KAUFMAN & BROAD HOME CORP 6,350
200 PULTE CORP 5,975
------------
27,425
------------
GENERAL MERCHANDISE STORES -- 0.94%
100 o99 CENTS ONLY STORES 4,150
1,670 oCONSOLIDATED STORES CORP 60,538
1,800 oCOSTCO COS, INC 113,512
3,000 DAYTON HUDSON CORP 145,500
600 DILLARDS, INC (CLASS A) 24,863
400 oDOLLAR GENERAL CORP 15,825
1,200 oDOLLAR TREE STORES, INC 48,750
1,200 oFEDERATED DEPARTMENT
STORES, INC 64,575
570 oFRED MEYER, INC 24,225
400 HARCOURT GENERAL, INC 23,800
500 MAY DEPARTMENT STORES CO 32,750
500 oNEIMAN-MARCUS GROUP, INC 21,718
128 oSCHOOL SPECIALTY, INC 2,094
800 oVENATOR GROUP, INC 15,300
14,500 WAL-MART STORES, INC 880,875
------------
1,478,475
------------
HEALTH SERVICES -- 0.52%
500 oACCESS HEALTH, INC 12,750
600 oBEVERLY ENTERPRISES, INC 8,288
200 oCAREMATRIX CORP 5,388
3,700 COLUMBIA/HCA HEALTHCARE
CORP 107,763
735 oENZO BIOCHEMICAL, INC 9,830
200 oEXPRESS SCRIPTS, INC 16,125
1,800 oFIRST HEALTH GROUP CORP 51,300
1,300 oHEALTH MANAGEMENT
ASSOCIATES, INC (CLASS A) 43,469
3,500 oHEALTHSOUTH CORP 93,406
900 oHUMANA, INC 28,068
1,600 oLINCARE HOLDINGS, INC 67,300
400 oMAGELLAN HEALTH SERVICES, INC 10,150
400 MANOR CARE, INC 15,375
1,100 oMID ATLANTIC MEDICAL
SERVICES, INC 12,650
500 oNATIONAL SURGERY CENTERS, INC 14,530
900 oORTHODONTIC CENTERS OF
AMERICA, INC 18,844
300 oPEDIATRIX MEDICAL GROUP, INC 11,156
273 oPHARMERICA, INC 3,293
1,800 oPHYCOR, INC 29,813
700 oPRIME MEDICAL SERVICES, INC 6,563
1,700 oPSS WORLD MEDICAL, INC 24,862
600 oRENAL CARE GROUP, INC 26,438
1,700 oTENET HEALTHCARE CORP 53,125
1,901 oTOTAL RENAL CARE
HOLDINGS, INC 65,585
1,100 UNITED HEALTHCARE CORP 69,850
800 oVENCOR, INC 5,800
------------
811,721
------------
46 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds GROWTH EQUITY FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
HEAVY CONSTRUCTION,
EXCEPT BUILDING -- 0.02%
500 FLUOR CORP $ 25,500
300 FOSTER WHEELER CORP 6,431
------------
31,931
------------
HOLDING AND OTHER INVESTMENT
OFFICES -- 0.19%
4,050 MBNA CORP 133,650
950 NATIONSBANK CORP 72,675
737 PATRIOT AMERICAN HOSPITALITY,
INC 17,642
600 REPUBLIC NEW YORK CORP 37,763
643 STARWOOD HOTELS & RESORTS 31,064
800 oVENTAS, INC 11,050
------------
303,844
------------
HOTELS AND OTHER LODGING PLACES-- 1.17%
600 oBRISTOL HOTEL CO 14,700
700 oCAPSTAR HOTEL CO 19,600
74,864 oCENDANT CORP 1,562,786
600 oHARRAHS ENTERTAINMENT, INC 13,950
2,000 HILTON HOTELS CORP 57,000
500 oHOST MARRIOTT SERVICES CORP 7,281
2,000 MARRIOTT INTERNATIONAL
(CLASS A) 64,750
1,895 oPROMUS HOTEL CORP 72,958
250 oSODEXHO MARRIOTT SERVICES, INC 7,250
600 oVAIL RESORTS, INC 15,975
------------
1,836,250
------------
INDUSTRIAL MACHINERY AND
EQUIPMENT -- 5.57%
2,700 o3COM CORP 82,856
1,100 oADAPTEC, INC 15,744
27,225 oAPPLIED MATERIALS, INC 803,138
100 oASYST TECHNOLOGIES, INC 1,263
900 BAKER HUGHES, INC 31,106
2,200 oBAY NETWORKS, INC 70,950
300 oBELL & HOWELL CO 7,744
500 BLACK & DECKER CORP 30,500
500 BRUNSWICK CORP 12,375
900 oC-CUBE MICROSYSTEMS, INC 16,706
1,300 oCABLETRON SYSTEMS, INC 17,469
400 CASE CORP 19,300
200 CINCINNATI MILACRON, INC 4,863
23,580 oCISCO SYSTEMS, INC 2,170,834
15,684 COMPAQ COMPUTER CORP 445,048
1,000 oCOPYTELE, INC 2,250
6,000 oDELL COMPUTER CORP 556,875
200 oDIALOGIC CORP 5,950
1,000 DOVER CORP 34,250
1,000 DRESSER INDUSTRIES, INC 44,063
400 EATON CORP 31,100
5,200 oEMC CORP 233,025
300 oENCAD, INC 4,088
600 oETEC SYSTEMS, INC 21,113
300 GENERAL SIGNAL CORP 10,800
200 HARNISCHFEGER INDUSTRIES, INC 5,663
16,750 HEWLETT-PACKARD CO 1,002,906
450 HUSSMANN INTERNATIONAL, INC 8,353
900 INGERSOLL-RAND CO 39,656
300 oINTEGRATED PROCESS
EQUIPMENT CORP 3,375
300 oINTERGRAPH CORP 2,569
4,300 INTERNATIONAL BUSINESS
MACHINES CORP 493,693
3,200 oIOMEGA CORP 18,800
600 oKULICHE & SOFFA INDUSTRIES, INC 10,200
11,850 oLAM RESEARCH CORP 226,631
200 oLEXMARK INTERNATIONAL
GROUP (CLASS A) 12,200
300 MCDERMOTT INTERNATIONAL,
INC 10,330
1,500 oMICROCHIP TECHNOLOGY, INC 39,188
400 oMICROS SYSTEMS, INC 13,238
11,900 oNOVELLUS SYSTEMS, INC 424,681
500 oOAKLEY, INC 6,688
1,000 PALL CORP 20,500
800 oPAXAR CORP 9,200
500 oPHOTRONICS, INC 11,031
2,400 PITNEY BOWES, INC 115,500
700 oPRESSTEK, INC 7,830
2,000 oSEAGATE TECHNOLOGY, INC 47,625
900 oSECURITY DYNAMICS
TECHNOLOGIES, INC 16,650
1,000 oSILICON GRAPHICS, INC 12,125
300 oSPLASH TECHNOLOGY
HOLDINGS, INC 5,156
4,000 oSUN MICROSYSTEMS, INC 173,750
300 TIMKEN CO 9,243
46,200 oUNISYS CORP 1,305,150
300 oUNOVA, INC 6,450
------------
8,731,791
------------
INSTRUMENTS AND RELATED
PRODUCTS -- 3.17%
600 oAFFYMETRIX, INC 14,438
1,000 oARTERIAL VASCULAR
ENGINEERING, INC 35,750
300 BARD (C.R.), INC 11,419
300 BAUSCH & LOMB, INC 15,038
2,400 BAXTER INTERNATIONAL, INC 129,150
1,100 BECTON DICKINSON & CO 85,388
1,200 BIOMET, INC 39,675
1,600 oBOSTON SCIENTIFIC CORP 114,600
900 oCOGNEX CORP 16,650
400 oCOLE NATIONAL CORP (CLASS A) 16,000
300 oCOOPER COS, INC 10,931
200 oCYTEC CORP 3,263
42,400 DENTSPLY INTERNATIONAL, INC 1,060,000
See notes to financial statements 1998 SEMI-ANNUAL REPORT 47
<PAGE>
TIAA-CREF Mutual Funds GROWTH EQUITY FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
INSTRUMENTS AND RELATED
PRODUCTS -- (Continued)
1,600 EASTMAN KODAK CO $ 116,900
300 EG & G, INC 9,000
700 oGENRAD, INC 13,825
1,500 GUIDANT CORP 106,969
400 oHOLOGIC, INC 7,275
1,000 HONEYWELL, INC 83,563
1,000 oIMATRON, INC 2,750
300 oINTEGRATED CIRCUIT
SYSTEMS, INC 4,988
400 JOHNSON CONTROLS, INC 22,875
23,825 oKLA-TENCOR CORP 659,655
400 MALLINCKRODT, INC 11,875
4,700 MEDTRONIC, INC 299,625
400 MILLIPORE CORP 10,900
300 oMINIMED, INC 15,713
23 oPANAVISION, INC 624
400 PERKIN-ELMER CORP 24,875
800 oPHYSIO-CONTROL
INTERNATIONAL CORP 21,050
300 POLAROID CORP 10,669
1,300 RAYTHEON CO (CLASS B) 76,863
700 oRESPIRONICS, INC 10,894
500 oROBOTIC VISION SYSTEMS, INC 2,203
200 oSABRATEK CORP 4,550
700 oSEPRACOR, INC 29,050
600 oSOFAMOR DANEK GROUP, INC 51,938
1,100 oST. JUDE MEDICAL, INC 40,494
900 oSTAAR SURGICAL CO 14,006
900 oSTERIS CORP 57,234
150 TEKTRONIX, INC 5,306
600 oTHERAGENICS CORP 15,637
500 oTHERMO CARDIOSYSTEMS, INC 11,375
400 U.S. SURGICAL CORP 18,250
900 oUNIPHASE CORP 56,502
900 oVIVUS, INC 5,427
400 oWATERS CORP 23,574
15,400 XEROX CORP 1,565,024
------------
4,963,760
------------
INSURANCE AGENTS, BROKERS AND
SERVICE -- 0.09%
300 BLANCH (E.W.) HOLDINGS, INC 11,025
300 HEALTHPLAN SERVICES CORP 5,250
1,950 MARSH & MCLENNAN COS, INC 117,853
------------
134,128
------------
INSURANCE CARRIERS -- 4.62%
24,700 ACE LTD 963,300
200 AETNA, INC 15,225
200 AFLAC, INC 6,063
13,650 AMERICAN INTERNATIONAL
GROUP, INC 1,992,900
900 AON CORP 63,225
1,000 CONSECO, INC 46,750
17,500 EXEL LTD 1,361,719
2,400 oFOUNDATION HEALTH SYSTEMS
(CLASS A) 63,300
500 GENERAL REINSURANCE CORP 126,750
600 JEFFERSON-PILOT CORP 34,763
22,726 LIFE RE CORP 1,883,417
500 LOEWS CORP 43,563
400 MBIA, INC 29,950
700 MGIC INVESTMENT CORP 39,944
1,200 oOXFORD HEALTH PLANS, INC 18,375
100 PROGRESSIVE CORP 14,100
200 PROVIDIAN FINANCIAL CORP 15,712
1,650 SUNAMERICA, INC 94,771
800 TORCHMARK CORP 36,600
400 TRANSAMERICA CORP 46,050
4,817 TRAVELERS GROUP, INC 292,030
800 UNUM CORP 44,400
------------
7,232,907
------------
LEATHER AND LEATHER PRODUCTS -- 0.01%
194 oSAMSONITE CORP 2,098
300 STRIDE RITE CORP 4,519
100 oTIMBERLAND CO 7,193
------------
13,810
------------
LOCAL AND INTERURBAN PASSENGER
TRANSIT -- 0.01%
1,800 LAIDLAW, INC 21,938
------------
LUMBER AND WOOD PRODUCTS -- 0.06%
1,300 oCHAMPION ENTERPRISES, INC 38,188
500 GEORGIA-PACIFIC CORP
(PACKAGING GROUP) 29,469
500 GEORGIA-PACIFIC CORP
(TIMBER GROUP) 11,531
600 WILLAMETTE INDUSTRIES, INC 19,200
------------
98,388
------------
METAL MINING -- 0.10%
800 ALCAN ALUMINIUM CO LTD (U.S.) 22,100
2,100 BARRICK GOLD CORP 40,294
1,400 BATTLE MOUNTAIN GOLD CO 8,313
900 oECHO BAY MINES LTD (U.S.) 2,025
1,600 FREEPORT-MCMORAN COPPER &
GOLD, INC (CLASS B) 24,300
900 INCO LTD CO 12,262
1,300 NEWMONT MINING CORP 30,712
1,200 PLACER DOME, INC 14,100
------------
154,106
------------
MISCELLANEOUS MANUFACTURING
INDUSTRIES -- 5.32%
900 oBLYTH INDUSTRIES, INC 29,925
300 HASBRO, INC 11,794
300 JOSTENS, INC 7,163
29,100 MATTEL, INC 1,231,294
48 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds GROWTH EQUITY FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
MISCELLANEOUS MANUFACTURING
INDUSTRIES -- (Continued)
3,000 MINNESOTA MINING &
MANUFACTURING CO $ 246,563
108,165 TYCO INTERNATIONAL LTD 6,814,394
------------
8,341,133
------------
MISCELLANEOUS REPAIR SERVICES -- 0.00%
200 oSERVICE EXPERTS, INC 6,900
------------
MISCELLANEOUS RETAIL -- 0.56%
600 oBARNES & NOBLE, INC 22,463
600 oBORDERS GROUP, INC 22,200
100 oBRYLANE, INC 4,600
2,800 CVS CORP 109,025
2,000 oGENERAL NUTRITION COS, INC 62,250
400 oLANDS END, INC 12,650
200 LONGS DRUG STORES CORP 5,775
800 oMSC INDUSTRIAL DIRECT CO
(CLASS A) 22,800
1,500 oPETSMART, INC 15,000
2,000 RITE AID CORP 75,125
2,100 SEARS ROEBUCK & CO 128,231
2,700 oSTAPLES, INC 78,131
1,000 oSUNGLASS HUT
INTERNATIONAL, INC 11,063
1,600 oTOYS R US, INC 37,700
1,800 oVIKING OFFICE PRODUCTS, INC 56,475
5,000 WALGREEN CO 206,562
------------
870,050
------------
MOTION PICTURES -- 0.82%
700 oAMERICAN MEDIA, INC (CLASS A) 4,638
12,000 DISNEY (WALT) CO 1,260,750
200 oPIXAR, INC 12,075
------------
1,277,463
------------
NONDEPOSITORY INSTITUTIONS -- 1.27%
500 AAMES FINANCIAL CORP 6,875
3,800 AMERICAN EXPRESS CO 433,200
800 oAMERICREDIT CORP 28,550
600 oAMRESCO, INC 17,475
1,600 oASSOCIATES FIRST CAPITAL CORP 123,000
300 BENEFICIAL CORP 45,956
100 CAPITAL ONE FINANCIAL CORP 12,419
200 oCONTIFINANCIAL CORP 4,625
200 COUNTRYWIDE CREDIT
INDUSTRIES, INC 10,150
10,300 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 625,725
585 oFIRST UNION CORP 34,076
600 oFIRSTPLUS FINANCIAL GROUP, INC 21,600
5,400 FREDDIE MAC 254,138
3,200 GREEN TREE FINANCIAL CORP 137,000
2,100 HOUSEHOLD INTERNATIONAL, INC 104,475
500 oIMC MORTGAGE CO 5,281
600 oIMPERIAL CREDIT INDUSTRIES, INC 14,100
2,100 SLM HOLDING CORP 102,900
200 oSOUTHERN PACIFIC FUNDING
CORP 3,138
------------
1,984,683
------------
OIL AND GAS EXTRACTION -- 3.76%
1,005 BURLINGTON RESOURCES, INC 43,278
400 oCLIFFS DRILLING CO 13,125
450 COLUMBIA ENERGY GROUP 25,031
10,675 DIAMOND OFFSHORE
DRILLING, INC 427,000
749 oEEX CORP 7,022
800 ENSCO INTERNATIONAL, INC 13,900
600 oEVI WEATHERFORD, INC 22,275
1,500 oGLOBAL INDUSTRIES LTD 25,313
2,000 oGREY WOLF, INC 6,375
2,100 HALLIBURTON CO 93,581
2,900 oHARKEN ENERGY CORP 13,956
400 HELMERICH & PAYNE, INC 8,900
37,044 IHC CALAND NV 2,085,091
300 KERR-MCGEE CORP 17,363
300 oKEY ENERGY GROUP, INC 3,938
200 oMARINE DRILLING CO, INC 3,200
200 oNEWPARK RESOURCES, INC 2,225
700 oNOBLE DRILLING CORP 16,844
126,308 oOCEAN ENERGY, INC 2,470,900
900 oORYX ENERGY CO 19,913
600 oPATTERSON ENERGY, INC 5,869
1,500 PHILLIPS PETROLEUM CO 72,281
1,200 oPRIDE INTERNATIONAL, INC 20,325
2,300 oR & B FALCON CORP 52,038
500 oROWAN COS, INC 9,719
600 oSANTA FE ENERGY
RESOURCES, INC 6,450
4,000 SCHLUMBERGER LTD 273,250
600 oSEITEL, INC 9,712
1,200 oTUBOSCOPE, INC 23,700
2,600 UNION PACIFIC RESOURCES
GROUP, INC 45,662
600 oVERITAS DGC, INC 29,962
300 oWESTERN ATLAS, INC 25,462
------------
5,893,660
------------
PAPER AND ALLIED PRODUCTS -- 0.26%
900 AVERY DENNISON CORP 48,375
300 BEMIS, INC 12,263
800 oBUCKEYE TECHNOLOGIES, INC 18,850
500 CHAMPION INTERNATIONAL CORP 24,594
200 FIRST BRANDS CORP 5,125
500 FORT JAMES CORP 22,250
5,100 KIMBERLY-CLARK CORP 233,963
300 MEAD CORP 9,525
300 TEMPLE-INLAND, INC 16,163
See notes to financial statements 1998 SEMI-ANNUAL REPORT 49
<PAGE>
TIAA-CREF Mutual Funds GROWTH EQUITY FUND
- -----------------------------------------------------------
SHARES VALUE
- ----------------------------------------------------------
PAPER AND ALLIED PRODUCTS -- (Continued)
500 TENNECO, INC $ 19,030
------------
410,138
------------
PERSONAL SERVICES -- 0.09%
800 BLOCK (H&R), INC 33,700
200 oEQUITY CORP INTERNATIONAL 4,800
300 NATIONAL SERVICE
INDUSTRIES, INC 15,263
2,100 SERVICE CORP INTERNATIONAL 90,037
400 oTHERMOLASE CORP 2,900
------------
146,700
------------
PETROLEUM AND COAL PRODUCTS -- 0.06%
400 ASHLAND, INC 20,650
300 PENNZOIL CO 15,188
91 TEXACO, INC 5,431
1,600 UNOCAL CORP 57,200
------------
98,469
------------
PRIMARY METAL INDUSTRIES -- 0.10%
1,400 ALLEGHENY TELEDYNE, INC 32,025
1,000 ALUMINUM CO OF AMERICA 65,938
300 oARMCO, INC 1,913
600 oBETHLEHEM STEEL CORP 7,463
366 oCOMMSCOPE, INC 5,925
800 ENGELHARD CORP 16,200
200 oMAVERICK TUBE CORP 2,324
500 NUCOR CORP 23,000
500 WORTHINGTON INDUSTRIES, INC 7,530
------------
162,318
------------
PRINTING AND PUBLISHING -- 0.48%
400 AMERICAN GREETINGS CORP
(CLASS A) 20,375
100 oAPPLIED GRAPHICS
TECHNOLOGIES, INC 4,575
400 oBIG FLOWER HOLDINGS, INC 12,000
200 oCONSOLIDATED GRAPHICS, INC 11,800
500 DELUXE CORP 17,906
200 DONNELLEY (R.R.) & SONS CO 9,150
500 DOW JONES & CO, INC 27,875
2,200 GANNETT CO, INC 156,338
200 HARLAND (JOHN H.) CO 3,388
800 oJOURNAL REGISTER CO 13,400
200 KNIGHT-RIDDER, INC 11,013
600 MCGRAW HILL COS, INC 48,938
300 MEREDITH CORP 14,081
600 MERRILL CORP 13,238
500 NEW YORK TIMES CO (CLASS A) 39,625
2,000 TIME WARNER, INC 170,875
500 TIMES MIRROR CO SERIES A 31,438
800 TRIBUNE CO 55,050
500 oVALASSIS COMMUNICATIONS, INC 19,281
1,300 oVIACOM, INC (CLASS B) 75,724
153 oWORKFLOW MANAGEMENT, INC 1,236
------------
757,306
------------
RAILROAD TRANSPORTATION -- 0.03%
500 BURLINGTON NORTHERN
SANTA FE CORP 49,094
------------
REAL ESTATE -- 0.02%
1,100 oCATELLUS DEVELOPMENT CORP 19,456
200 oGRUBB & ELLIS CO 2,850
100 oINSIGNIA FINANCIAL GROUP, INC 2,450
------------
24,756
------------
RUBBER AND MISCELLANEOUS
PLASTICS PRODUCTS -- 1.63%
300 oCONVERSE, INC 1,650
400 COOPER TIRE & RUBBER CO 8,250
300 GOODRICH (B.F.) CO 14,888
800 GOODYEAR TIRE & RUBBER CO 51,550
600 oGRACE, W.R. & CO 10,238
27,000 MONSANTO CO 1,508,625
16,475 NIKE, INC (CLASS B) 802,127
800 RAYCHEM CORP 23,650
500 oREEBOK INTERNATIONAL LTD 13,844
1,200 RUBBERMAID, INC 39,825
800 oSAFESKIN CORP 32,900
321 oSEALED AIR CORP 11,797
960 SOLUTIA, INC 27,539
500 TUPPERWARE CORP 14,062
------------
2,560,945
------------
SECURITY AND COMMODITY BROKERS -- 1.58%
800 FRANKLIN RESOURCES, INC 43,200
27,750 oFREEDOM SECURITIES CORP 502,969
1,800 MERRILL LYNCH & CO, INC 166,050
800 MORGAN STANLEY, DEAN
WITTER, & CO 73,100
2,100 SCHWAB (CHARLES) CORP 68,250
67,725 WADDELL & REED FINANCIAL
INC (CLASS A) 1,621,167
------------
2,474,736
------------
SOCIAL SERVICES -- 0.01%
200 oALTERNATIVE LIVING
SERVICES, INC 5,400
600 oRES-CARE, INC 11,063
------------
16,463
------------
STONE, CLAY, AND GLASS PRODUCTS-- 0.11%
1,900 CORNING, INC 66,025
200 LIBBEY, INC 7,663
600 OWENS CORNING CO 24,488
500 PPG INDUSTRIES, INC 34,781
700 USG CORP 37,887
------------
170,844
------------
50 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds GROWTH EQUITY FUND
- -----------------------------------------------------------
SHARES VALUE
- -----------------------------------------------------------
TEXTILE MILL PRODUCTS -- 0.77%
200 RUSSELL CORP $ 6,038
36,375 oWESTPOINT STEVENS, INC 1,200,375
------------
1,206,413
------------
TOBACCO PRODUCTS -- 0.79%
300 oCONSOLIDATED CIGAR
HOLDINGS, INC 3,675
600 oGENERAL CIGAR HOLDINGS, INC
(CLASS A) 5,925
29,900 PHILIP MORRIS COS, INC 1,177,313
2,000 UST, INC 54,000
------------
1,240,913
------------
TRANSPORTATION BY AIR -- 0.32%
43,000 oAIR CANADA, INC 384,517
200 oEAGLE U.S.A. AIRFREIGHT, INC 6,938
560 oFDX CORP 35,140
700 SOUTHWEST AIRLINES CO 20,738
600 oU.S. AIRWAYS GROUP, INC 47,550
------------
494,883
------------
TRANSPORTATION EQUIPMENT -- 1.85%
4,600 ALLIED SIGNAL, INC 204,125
6,960 BOEING CO 310,155
400 DANA CORP 21,400
100 ECHLIN, INC 4,906
800 GENERAL DYNAMICS CORP 37,200
25,700 oGENERAL MOTORS CORP
(CLASS H) 1,211,113
400 oGULFSTREAM AEROSPACE CORP 18,600
17,775 HARLEY DAVIDSON, INC 688,781
500 ITT INDUSTRIES, INC 18,688
1,100 LOCKHEED MARTIN CORP 116,463
300 MERITOR AUTOMOTIVE, INC 7,200
300 oNAVISTAR INTERNATIONAL CORP 8,663
300 NORTHROP GRUMMAN CORP 30,938
300 PACCAR, INC 15,675
300 TEXTRON, INC 21,506
200 TRW, INC 10,924
1,900 UNITED TECHNOLOGIES CORP 175,749
------------
2,902,086
------------
TRANSPORTATION SERVICES -- 0.00%
115 oNAVIGANT INTERNATIONAL, INC 978
------------
WHOLESALE TRADE-- DURABLE GOODS-- 0.13%
300 oACTION PERFORMANCE COS, INC 9,656
200 BRIGGS & STRATTON CORP 7,488
1,400 oBRIGHTPOINT, INC 20,300
200 oCDW COMPUTER CENTERS, INC 10,000
600 oCELLSTAR CORP 7,763
900 oCHS ELECTRONICS, INC 16,088
900 GENUINE PARTS CO 31,106
600 GRAINGER (W.W.), INC 29,888
400 oHA-LO INDUSTRIES, INC 12,450
700 oKENT ELECTRONICS CORP 12,819
600 oQUALCOMM, INC 33,712
300 oWILMAR INDUSTRIES, INC 7,649
------------
198,919
------------
WHOLESALE TRADE --
NONDURABLE GOODS -- 2.07%
600 oAMERISOURCE HEALTH CORP
(CLASS A) 39,413
31,100 BERGEN BRUNSWIG CORP
(CLASS A) 1,442,263
10,565 CARDINAL HEALTH, INC 990,469
400 oCENTRAL GARDEN & PET CO 12,450
1,500 DIMON, INC 16,875
1,700 ENRON CORP 91,906
1,000 oGENESCO, INC 16,313
400 HUNT CORP 9,475
800 IKON OFFICE SOLUTIONS, INC 11,650
1,000 oNATIONAL-OILWELL, INC 26,813
300 oNU SKIN ENTERPRISES, INC
(CLASS A) 5,850
900 oREXALL SUNDOWN, INC 31,725
500 oSUIZA FOODS CORP 29,844
300 SUPERVALU, INC 13,313
3,000 SYSCO CORP 76,875
288 oU.S. OFFICE PRODUCTS CO 5,610
5,200 UNILEVER NV-- N.Y. SHARES 410,474
300 oUNITED STATIONERS, INC 19,424
------------
3,250,742
------------
TOTAL COMMON STOCK
(Cost $138,363,496) 156,248,553
-------------
SHORT TERM INVESTMENTS -- 0.85%
U.S. GOVERNMENT & AGENCIES -- 0.85%
FEDERAL HOME LOAN BANK
$1,325,000 5.400, 07/01/98 1,325,000
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $1,325,000) 1,325,000
------------
TOTAL PORTFOLIO
(Cost $139,701,262) $157,585,570
============
- -----------------
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 1998 SEMI-ANNUAL REPORT 51
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
(Unaudited) Summary by Industry
- ---------------------------------------------------------
VALUE %
- ---------------------------------------------------------
PREFERRED STOCK
BUSINESS SERVICES $ 271,463 0.34%
----------- ------
TOTAL PREFERRED STOCK
(Cost $97,298) 271,463 0.34
----------- ------
COMMON STOCK
AMUSEMENT AND RECREATION
SERVICES 2,578,607 3.21
APPAREL AND ACCESSORY STORES 1,376,456 1.72
BUILDING MATERIALS AND
GARDEN SUPPLIES 331,870 0.41
BUSINESS SERVICES 2,301,245 2.87
CHEMICALS AND ALLIED PRODUCTS 6,368,673 7.94
COMMUNICATIONS 4,586,808 5.72
DEPOSITORY INSTITUTIONS 9,380,097 11.69
EATING AND DRINKING PLACES 167,912 0.21
ELECTRIC, GAS, AND SANITARY
SERVICES 2,456,457 3.06
ELECTRONIC & OTHER ELECTRIC
EQUIPMENT 8,584,708 10.70
ENGINEERING AND MANAGEMENT
SERVICES 552,641 0.69
FOOD AND KINDRED PRODUCTS 3,770,706 4.70
FOOD STORES 434,369 0.54
GENERAL BUILDING CONTRACTORS 498,136 0.62
GENERAL MERCHANDISE STORES 1,705,557 2.13
HEAVY CONSTRUCTION,
EXCEPT BUILDING 2,448,489 3.05
HOLDING AND OTHER INVESTMENT
OFFICES 3,084,792 3.84
HOTELS AND OTHER
LODGING PLACES 163,736 0.20
INDUSTRIAL MACHINERY AND
EQUIPMENT 1,677,674 2.09
INSTRUMENTS AND RELATED
PRODUCTS 1,256,065 1.56
INSURANCE AGENTS, BROKERS AND
SERVICE 320,630 0.40
INSURANCE CARRIERS 3,293,962 4.10
LOCAL AND INTERURBAN
PASSENGER TRANSIT 316,115 0.39
LUMBER AND WOOD PRODUCTS 137,236 0.17
METAL MINING 446,318 0.56
NONDEPOSITORY INSTITUTIONS 563,678 0.70
OIL AND GAS EXTRACTION 2,055,397 2.56
PAPER AND ALLIED PRODUCTS 318,913 0.40
PETROLEUM AND COAL PRODUCTS 2,818,050 3.51
PRIMARY METAL INDUSTRIES 1,616,102 2.01
PRINTING AND PUBLISHING 490,417 0.61
RAILROAD TRANSPORTATION 1,505,976 1.88
REAL ESTATE 1,742,471 2.17
RUBBER AND MISCELLANEOUS
PLASTICS PRODUCTS 128,732 0.16
SECURITY AND COMMODITY BROKERS 726,521 0.91
STONE, CLAY, AND GLASS PRODUCTS 208,301 0.26
TEXTILE MILL PRODUCTS 72,688 0.09
TOBACCO PRODUCTS 822,295 1.02
TRANSPORTATION BY AIR 601,970 0.75
TRANSPORTATION EQUIPMENT 2,790,102 3.48
TRANSPORTATION SERVICES 2,469,229 3.08
TRUCKING AND WAREHOUSING 135,482 0.17
WATER TRANSPORTATION 502,356 0.63
----------- ------
TOTAL COMMON STOCK
(Cost $75,346,557) 77,807,939 96.96
----------- ------
SHORT TERM INVESTMENTS
U.S. GOVERNMENT & AGENCIES 2,250,000 2.80
----------- ------
TOTAL SHORT TERM INVESTMENTS
(Cost $2,250,000) 2,250,000 2.80
----------- ------
TOTAL PORTFOLIO
(Cost $77,693,855) 80,329,402 100.10
OTHER ASSETS & LIABILITIES, NET (83,876) (0.10)
----------- ------
NET ASSETS $80,245,526 100.00%
=========== ======
52 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
(Unaudited) Summary by Country
- ----------------------------------------------------------
Value %
- ----------------------------------------------------------
AUSTRALIA $ 1,208,124 1.50%
AUSTRIA 251,358 0.31
BELGIUM 737,030 0.92
CANADA 215,508 0.27
DENMARK 559,689 0.70
FINLAND 603,135 0.75
FRANCE 11,969,073 14.90
GERMANY 8,314,963 10.35
HONG KONG 880,544 1.10
IRELAND 218,413 0.27
ITALY 2,613,374 3.25
JAPAN 12,785,154 15.92
MALAYSIA 301,341 0.38
NETHERLANDS 4,750,639 5.91
NEW ZEALAND 120,761 0.15
NORWAY 1,376,919 1.71
PORTUGAL 288,523 0.36
SINGAPORE 232,970 0.29
SPAIN 2,256,837 2.81
SWEDEN 1,453,379 1.81
SWITZERLAND 8,132,071 10.12
UNITED KINGDOM 18,809,597 23.42
----------- -----
TOTAL FOREIGN 78,079,402 97.20
----------- ------
SHORT TERM INVESTMENTS 2,250,000 2.80
----------- ------
TOTAL PORTFOLIO $80,329,402 100.00%
=========== ======
See notes to financial statements 1998 SEMI-ANNUAL REPORT 53
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
(Unaudited)
- ------------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------------
PREFERRED STOCK -- 0.34%
BUSINESS SERVICES -- 0.34%
400 SAP AG. $ 271,463
-----------
TOTAL PREFERRED STOCK
(Cost $97,298) 271,463
-----------
COMMON STOCK -- 96.96%
AMUSEMENT AND RECREATION SERVICES -- 3.21%
172 KUONI REISEN HOLDING (REGD)
(CLASS B) 853,870
17,900 LADBROKE GROUP PLC 98,260
2,105 SMH AG. (BR) 1,626,477
-----------
2,578,607
-----------
APPAREL AND ACCESSORY STORES -- 1.72%
7,900 ADIDAS SALOMON AG. 1,376,456
-----------
BUILDING MATERIALS AND
GARDEN SUPPLIES -- 0.41%
15,397 CRH PLC 218,414
63,000 MALAYAN CEMENT BERHAD 20,506
12,000 SEKISUI HOUSE LTD 92,950
-----------
331,870
-----------
BUSINESS SERVICES -- 2.87%
200 ADECCO S.A. (BR) 90,189
30,712 BTR PLC 87,113
28,000 COMMERCE ASSET HOLDINGS
BERHAD 10,464
167,600 CORPORATE SERVICES GROUP PLC 666,943
34,900 CSR LTD 100,711
14,000 MITSUBISHI CORP 86,753
17,000 MITSUI & CO LTD 91,869
8,200 PEARSON PLC 150,225
12,480 RUETERS GROUP PLC 142,637
500 SAP AG. 303,318
1,200 LYONNAISE DES EAUX S.A. 197,485
13,000 SUMITOMO CORP 62,478
16,000 TOKYU CORP 48,536
1,100 VIVENDI S.A. 234,881
28,000 WHARF HOLDINGS LTD 27,643
-----------
2,301,245
-----------
CHEMICALS AND ALLIED PRODUCTS -- 7.94%
1,000 AKZO NOBEL NV 222,296
6,300 BASF AG. 299,288
6,700 BAYER AG. 346,686
7,100 BOC GROUP PLC 96,725
15,000 CHUGAI PHARMACEUTICAL
CO LTD 98,138
25,000 DAINIPPON INK & CHEMICAL, INC 76,557
25,064 GLAXO WELLCOME PLC 752,329
8,300 IMPERIAL CHEMICAL
INDUSTRY PLC 133,223
19,016 KONINKLIJKE AHOLD NV 610,427
1,900 MERCK & CO KGAA 85,156
33,000 MITSUBISHI CHEMICAL CORP 59,682
2,000 NORSK HYDRO AS 87,965
643 NOVARTIS AG. (REGD) 1,069,963
500 NOVO NORDISK AS (CLASS B) 68,925
2,700 RHONE-POULENC S.A. (CLASS A) 152,282
14 ROCHE HOLDINGS AG. (BR) 207,442
58 ROCHE HOLDINGS AG.
(GENUSSCHEINE) 569,556
10,000 SEKISUI CHEMICAL CO LTD 51,158
4,000 SHIN-ETSU CHEMICAL CO LTD 69,172
45,722 SMITHKLINE BEECHAM/
BECKMAN LTD 558,040
24,000 SUMITOMO CHEMICAL CO LTD 74,014
5,000 TAISHO PHARMACEUTICAL CO LTD 93,310
7,000 TAKEDA CHEMICAL
INDUSTRIES LTD 186,115
5,000 YAMANOUCHI PHARMACEUTICAL
CO LTD 104,118
6,900 ZENECA GROUP PLC 296,106
-----------
6,368,673
-----------
COMMUNICATIONS -- 5.72%
14,900 BRITISH SKY BROADCASTING
GROUP PLC 107,025
47,400 oBRITISH TELECOMMUNICATIONS
PLC 585,243
400 oCANAL PLUS S.A. 74,760
16,300 DEUTSCHE TELEKOM AG. 446,097
4,000 FRANCE TELECOM S.A. 275,884
98,000 HONG KONG
TELECOMMUNICATIONS LTD 184,021
5,300 KONINKLIJKE KPN NV 204,004
15,500 MEDIASET S.P.A. 98,932
96 NIPPON TELEGRAPH &
TELEPHONE CORP 795,476
2,900 PORTUGAL TELECOM S.A. 153,698
57,000 oSINGAPORE
TELECOMMUNICATIONS LTD 80,972
17,000 SIRTI S.P.A. 92,486
45,960 TELECOM ITALIA MOBILE S.P.A. 281,067
2,500 TELE DANMARK AS (CLASS B) 239,930
29,300 TELECOM CORP OF NEW ZEALAND 120,761
28,000 TELECOM ITALIA 206,125
9,818 TELEFONICA DE ESPANA S.A. 454,695
31,000 TELEKOM MALAYSIA BERHAD 52,321
52,000 TELSTRA CORP LTD (P/P) 133,311
-----------
4,586,808
-----------
DEPOSITORY INSTITUTIONS -- 11.69%
11,200 ABN-AMRO HOLDINGS NV 262,076
8,400 ARGENTARIA S.A. 188,752
20,000 ASAHI BANK LTD 87,906
27,500 BANCA COMMERCIALE
ITALIANA S.P.A. 164,462
54 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------------
DEPOSITORY INSTITUTIONS -- (Continued)
5,000 BANCO CENTRALE
HISPANOAMERICANO S.A. $ 157,424
625 oBANCO CENTRALE
HISPANOAMERICANO S.A. NEW 19,678
10,000 BANCO SANTANDER S.A. 256,385
35,000 BANK OF TOKYO MITSUBISHI LTD 370,466
2,633 BANQUE NATIONALE DE PARIS 212,288
11,408 BARCLAYS PLC 328,912
3,600 BAYERISCHE HYPOTHEKEN-UND
WECHSEL-BANK 228,162
3,200 BAYERISCHE VEREINSBANK AG. 271,241
23,500 CHRISTIANIA BANK OG
KREDITKASSE 98,305
29,500 CREDITO ITALIANO S.P.A. 154,432
4,400 DEUTSCHE BANK AG. 371,982
4,900 DRESDNER BANK AG. 264,676
22,000 FUJI BANK LTD 98,123
200 GENERALE DE BANQUE S.A. 148,482
15,400 HANG SENG BANK LTD 87,051
12,913 HSBC HOLDINGS PLC 312,838
6,202 HSBC HOLDINGS LTD
(UNITED KINGDOM) 157,394
20,000 INDUSTRIAL BANK OF JAPAN LTD 125,374
12,300 INSTITUTO BANCARIO SAN PAOLO
DI TURINO 177,497
10,900 ISTITUTO MOBILIARE
ITALIANO S.P.A. 171,706
18,000 JOYO BANK 66,405
38,770 LLOYDS TSB GROUP PLC 542,406
24,000 MALAYAN BANKING BERHAD 24,188
11,000 MITSUBISHI TRUST &
BANKING CORP 93,447
13,000 MITSUI TRUST & BANKING CO LTD 30,630
12,400 NATIONAL AUSTRALIA BANK LTD 163,556
22,000 OVERSEAS-CHINESE BANKING
CORP LTD (FR) 74,875
1,600 oPARIBAS S.A. 171,220
39,000 RHB CAPITAL BERHAD 15,892
9,176 ROYAL BANK OF SCOTLAND PLC 159,226
87,000 SAKURA BANK LTD 225,673
21,000 oSANWA BANK LTD 187,780
10,000 SHIZUOKA BANK LTD 107,360
4,700 SKANDINAVISKA ENSKILDA
BANKEN SERIES A 80,446
1,100 SOCIETE GENERALE S.A. 228,696
24,000 SUMITOMO BANK LTD 233,455
2,200 SVENSKA HANDELSBANKEN
SERIES A 102,070
17,000 TOKAI BANK LTD 93,584
5,178 oUNION BANK OF SWITZERLAND
AG. (REGD) 1,925,662
20,000 WESTPAC BANKING CORP 121,991
17,000 YASUDA TRUST & BANKING
CO LTD 15,923
-----------
9,380,097
-----------
EATING AND DRINKING PLACES -- 0.21%
600 ACCOR S.A. 167,912
-----------
ELECTRIC, GAS, AND SANITARY SERVICES -- 3.06%
23,500 CLP HOLDINGS LTD 107,058
400 ELECTRABEL NV 113,410
5,800 ELECTRICIDADE DE PORTUGAL S.A. 134,827
7,600 ENDESA S.A. 166,555
400 GAS NATURAL SDG S.A. 28,950
11,300 IBERDROLA S.A. 183,794
8,900 KANSAI ELECTRIC POWER CO, INC 154,549
20,400 NATIONAL GRID GROUP PLC 137,511
11,600 NATIONAL POWER PLC 109,160
2,100 OESTERREICHISCHE
ELEKTRIZITAETSWIRSCHAFTS AG. 251,358
2,400 oRHEIN-WESTFALEN ELECTRIC AG.
(STAMM) 142,003
14,100 SCOTTISH POWER PLC 123,511
27,000 TENAGA NASIONAL BERHAD 32,550
10,600 TOKYO ELECTRIC POWER CO, INC 207,746
2,000 TOKYO ELECTRON CO LTD 61,246
4,400 VEBA AG. 295,806
300 oVIAG AG. 206,423
-----------
2,456,457
-----------
ELECTRONIC & OTHER ELECTRIC
EQUIPMENT -- 10.70%
7,700 ABB AB SERIES A 109,104
900 ADVANTEST CORP 48,377
7,800 ALCATEL ALSTHOM CIE GEN 1,588,117
18,000 oALSTOM 592,455
500 BARCO INDUSTRIES NV 139,747
19,300 CABLE & WIRELESS PLC 234,431
7,000 CANON, INC 158,879
14,000 CITIZEN WATCH CO LTD 115,503
5,500 ELECTROLUX AB SERIES B 94,483
14,000 ERICSSON TELEFON (LM) AB
SERIES B 409,031
12,000 FURUKAWA ELECTRIC CO LTD 40,379
25,200 GENERAL ELECTRIC CO
(UNITED KINGDOM) 217,169
26,000 HITACHI LTD 169,543
2,000 HOYA CORP 56,634
16,000 MATSUSHITA ELECTRIC
INDUSTRIAL CO LTD 257,089
23,000 oMITSUBISHI ELECTRIC CORP 52,866
3,000 MURATA MANUFACTURING
CO LTD 97,273
4,000 NIKON CORP 28,764
13,000 NIPPON ELECTRIC CORP (N.E.C.) 121,116
2,000 NOKIA AB SERIES K 147,271
See notes to financial statements 1998 SEMI-ANNUAL REPORT 55
<PAGE>
TIAA-CREF Mutual Funds INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------------
ELECTRONIC & OTHER ELECTRIC
EQUIPMENT -- (Continued)
3,600 oNOKIA OYJ SERIES A $ 264,760
4,000 OMRON CORP 61,102
11,560 PHILIPS ELECTRONICS NV 971,752
1,000 ROHM CO 102,677
24,000 SANYO ELECTRIC CO LTD 72,630
15,200 oSGS-THOMSON
MICROELECTRONICS NV 1,077,269
10,000 SHARP CORP 80,989
4,700 SIEMENS AG. 286,812
5,800 SONY CORP 499,406
8,000 SUMITOMO ELECTRIC
INDUSTRIES CO 80,873
29,104 VODAFONE GROUP PLC 369,299
4,000 YAMAHA CORP 38,908
-----------
8,584,708
-----------
ENGINEERING AND MANAGEMENT
SERVICES -- 0.69%
10,100 ASTRA AB SERIES A FREE 206,434
5,000 EISAI CO LTD 68,091
500 LOREAL S.A. 278,116
-----------
552,641
-----------
FOOD AND KINDRED PRODUCTS -- 4.70%
12,000 ASSOCIATED BRITISH FOODS PLC 113,224
49,300 BASS PLC 923,746
300 BONGRAIN S.A. 150,644
12,900 CADBURY SCHWEPPES LTD 199,632
7,004 COCA-COLA AMATIL LTD 46,842
28,944 DIAGEO PLC (CLASS A) 342,881
61,000 GUINESS ANCHOR BERHAD 64,714
13,000 oKIRIN BREWERY CO LTD 122,708
600 LVMH MOET HENNESSY
LOUIS VUITTON 120,079
400 NESTLE S.A. REGD 856,006
12,200 SCOTTISH & NEWCASTLE PLC 172,616
26,000 UNILEVER LTD 276,771
4,800 UNILEVER NV CERT 380,843
-----------
3,770,706
-----------
FOOD STORES -- 0.54%
13,986 SAFEWAY PLC 91,592
17,000 SAINSBURY (J) PLC 151,466
19,600 TESCO PLC 191,311
-----------
434,369
-----------
GENERAL BUILDING CONTRACTORS -- 0.62%
10,726 BLUE CIRCLE INDUSTRIES PLC 60,579
10,000 DAIWA HOUSE INDUSTRY CO LTD 88,266
17,000 KAJIMA CORP 46,547
13,000 OBAYASHI CORP 55,078
1,700 SKANSKA AB SERIES B FREE 76,314
900 ST. GOBAIN S.A. 166,870
11,000#oUNITED ENGINEERING BERHAD 4,482
-----------
498,136
-----------
GENERAL MERCHANDISE STORES -- 2.13%
9,400 BOOTS CO LTD 155,741
300 CARREFOUR SUPERMARCHE S.A. 189,794
10,000 DAIEI, INC 23,418
2,000 DELHAIZE FRERES NV 139,747
10,500 GREAT UNIVERSAL STORES PLC 138,402
2,100 HENNES & MAURITZ AB SERIES B 134,032
3,000 ITO-YOKADO CO LTD 141,154
3,000 JUSCO CO LTD 55,013
8,300 KINGFISHER PLC 133,638
20,600 MARKS & SPENCER PLC 187,494
5,000 MARUI CO LTD 74,576
900 oMETRO AG. 54,348
200 oPINAULT-PRINTEMPS-REDOUTE S.A. 167,383
200 PROMODES S.A. 110,817
-----------
1,705,557
-----------
HEAVY CONSTRUCTION,
EXCEPT BUILDING -- 3.05%
9,735 oEIFFAGE 842,107
6,410 GROUPE GTM 665,806
5,000 KINDEN CORP 60,525
1,400 oSCHNEIDER S.A. 111,634
16,250 oSOCIETE GENERALE
DENTERPRISES S.A. 768,417
-----------
2,448,489
-----------
HOLDING AND OTHER INVESTMENT
OFFICES -- 3.84%
115,600 COMPASS GROUP PLC 1,328,933
1,900 CREDIT SUISSE GROUP (REGD) 422,762
22,600 HANSON PLC 137,352
28,000 HUTCHINSON WHAMPOA LTD 147,795
11,000 MITSUBISHI ESTATE CO LTD 96,696
1,000 oMUENCHENER RUECKVER AG.
(REGD) 496,390
2,100 PERNOD-RICARD S.A. 145,534
4,000 SANKYO CO LTD 91,076
770 TOHO CO LTD 81,003
1,000 WOLTERS KLUWER NV 137,251
-----------
3,084,792
-----------
HOTELS AND OTHER LODGING PLACES -- 0.20%
58,000 HONG KONG & SHANGHAI
HOTELS LTD 29,005
18,335 RANK GROUP PLC 100,647
31,000 RESORTS WORLD BERHAD 34,084
-----------
163,736
-----------
INDUSTRIAL MACHINERY AND
EQUIPMENT -- 2.09%
2,800 FANUC LTD 96,841
15,000 FUJITSU LTD 157,798
56 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------------
INDUSTRIAL MACHINERY AND
EQUIPMENT -- (Continued)
11,000 GKN PLC $ 140,129
29,000 KEPPEL CORP 43,599
2,000 oKEYENCE CORP 217,603
73,000 KOMATSU LTD 354,520
1,700 KYOCERA CORP 83,049
6,000 MAKITA CORP 69,129
25,000 MINEBEA CO LTD 248,766
28,000 MITSUBISHI HEAVY
INDUSTRIES LTD 105,718
23,000 NTN TOYO BEARING CO LTD 72,256
5,000 TOYODA AUTOMATIC LOOM
WORKS LTD 88,266
-----------
1,677,674
-----------
INSTRUMENTS AND RELATED PRODUCTS -- 1.56%
7,000 FUJI PHOTO FILM CO LTD 243,615
8,900 GRANADA GROUP LTD (CLASS A) 163,643
42,500 oSIEBE PLC 848,807
-----------
1,256,065
-----------
INSURANCE AGENTS, BROKERS AND
SERVICE -- 0.40%
9,860 oASSICURAZIONI GENERALI S.P.A. 320,630
-----------
INSURANCE CARRIERS -- 4.10%
1,600 oALLIANZ AG. (REGD) 533,176
47 oALLIANZ AG. NEW 15,532
10,200 CGU PLC 190,269
5,863 ING GROEP NV 383,907
107,600 oINSTITUTO NAZIONALE DELLE
ASSICURAZION 305,706
14,200 LEGAL & GENERAL GROUP PLC 151,515
12,000 MITSUI TAISHO MARINE & FIRE
CO LTD 60,266
15,800 PRUDENTIAL CORP PLC 208,130
14,997 ROYAL & SUN ALLIANCE
INSURANCE GROUP PLC 155,014
2,000 oSAMPO INSURANCE CO SERIES A 94,778
9,900 SCOR 627,958
11,000 SUMITOMO MARINE & FIRE
INSURANCE CO 61,505
12,000 TOKIO MARINE & FIRE
INSURANCE CO LTD 123,299
600 ZURICH INSURANCE CO (REGD) 382,907
-----------
3,293,962
-----------
LOCAL AND INTERURBAN PASSENGER
TRANSIT -- 0.39%
36 EAST JAPAN RAILWAY CO 169,125
34,000 NANKAI ELECTRIC RAILWAY CO 146,990
-----------
316,115
-----------
LUMBER AND WOOD PRODUCTS -- 0.17%
5,300 SCA AB SERIES B 137,236
-----------
METAL MINING -- 0.56%
28,202 NORTH LTD 57,981
8,800 RIO TINTO LTD 104,628
8,000 RIO TINTO PLC (REGD) 90,099
13,300 SMITH (HOWARD) LTD 78,242
1,100 UNION MINIERE GROUP S.A. 67,992
15,742 WMC LTD 47,376
-----------
446,318
NONDEPOSITORY INSTITUTIONS -- 0.70%
4,000 AIFUL CORP 195,122
1,500 SHOKOH FUND & CO 368,556
-----------
563,678
-----------
OIL AND GAS EXTRACTION -- 2.56%
30,500 AKER MARTIME ASA 536,584
8,600 IHC CALAND NV 484,067
21,000 oPETROLEUM GEO-SERVICES AS 654,066
1,200 TECHNIP S.A. 146,675
1,800 TOTAL S.A. 234,005
-----------
2,055,397
-----------
PAPER AND ALLIED PRODUCTS -- 0.40%
17,000 NIPPON PAPER INDUSTRIES CO 70,800
6,900 oNORD-EST S.A. 151,786
3,500 UPM-KYMMENE OY 96,327
-----------
318,913
-----------
PETROLEUM AND COAL PRODUCTS -- 3.51%
33,352 BG PLC 192,820
39,115 BRITISH PETROLEUM PLC 570,402
14,407 BROKEN HILL PROPRIETARY
CO LTD 121,778
27,000 COSMO OIL CO LTD 48,636
1,900 ELF AQUITANE S.A. 267,117
58,900 ENTE NAZIONALE
IDROCARBURI S.P.A. 386,048
47,000 JAPAN ENERGY CORP 49,782
14,500 LONDON & SCOTTISH MARINE
OIL PLC 58,064
4,100 REPSOL S.A. 226,305
15,000 ROYAL DUTCH PETROLEUM CO 831,768
21,100 SANTOS LTD 65,330
-----------
2,818,050
-----------
PRIMARY METAL INDUSTRIES -- 2.01%
26,900 BRITISH STEEL PLC 59,133
39,000 KAWASAKI STEEL CORP 70,253
12,200 MANNESMANN AG. 1,253,771
59,000 NIPPON STEEL CORP 103,729
41,000 SUMITOMO METAL
INDUSTRIES LTD 65,879
4,100 oUSINOR 63,337
-----------
1,616,102
-----------
See notes to financial statements 1998 SEMI-ANNUAL REPORT 57
<PAGE>
TIAA-CREF Mutual Funds INTERNATIONAL EQUITY FUND
- ------------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------------
PRINTING AND PUBLISHING -- 0.61%
7,000 DAI NIPPON PRINTING CO LTD $ 111,720
8,400 ELSEVIER UTIGEVERSMIJ NV 126,771
20,386 NEWS CORP LTD 166,384
8,000 TOPPAN PRINTING CO LTD 85,542
-----------
490,417
-----------
RAILROAD TRANSPORTATION -- 1.88%
58,500 oRAILTRACK GROUP PLC 1,433,850
13,000 SEINO TRANSPORTATION
CO LTD 72,126
-----------
1,505,976
-----------
REAL ESTATE -- 2.17%
13,405 AXA 1,507,667
19,000 CHEUNG KONG HOLDINGS LTD 93,424
12,000 CITY DEVELOPMENT LTD 33,525
9,000 MITSUI FUDOSAN CO LTD 71,074
19,000 NEW WORLD DEVELOPMENT
CO LTD 36,781
-----------
1,742,471
-----------
RUBBER AND MISCELLANEOUS
PLASTICS PRODUCTS -- 0.16%
46,000 GOLDEN HOPE PLANTATIONS
BERHAD 42,146
1,500 MICHELIN S.A. (CLASS B) 86,586
-----------
128,732
-----------
SECURITY AND COMMODITY BROKERS-- 0.91%
11,400 ABBEY NATIONAL PLC 202,572
14,000 DAIWA SECURITIES CO LTD 60,223
500 FORTIS AG. 127,654
14,000 NOMURA SECURITIES CO LTD 162,914
3,750 SCHROEDERS LTD 96,731
18,000 SUN HUNG KAI PROPERTIES LTD 76,427
-----------
726,521
-----------
STONE, CLAY, AND GLASS PRODUCTS-- 0.26%
15,000 ASAHI GLASS CO LTD 81,061
100 HOLDERBANK FINANCIERE
GLARUS AG. (BR) 127,240
-----------
208,301
-----------
TEXTILE MILL PRODUCTS -- 0.09%
26,000 MITSUBISHI RAYON CO LTD 72,688
-----------
TOBACCO PRODUCTS -- 1.02%
24,772 B.A.T. INDUSTRIES LTD 247,992
28,000 oTABACALERA S.A. SERIES A (REGD) 574,303
-----------
822,295
-----------
TRANSPORTATION BY AIR -- 0.75%
24,100 oAIR CANADA, INC 215,509
9,984 BRITISH AIRWAYS PLC 108,029
44,000 CATHAY PACIFIC AIRWAYS LTD 30,948
5,000 DEUTSCHE LUFTHANSA AG.
(REGD) 125,898
22,000 oJAPAN AIRLINES CO LTD 61,188
16,000 SWIRE PACIFIC LTD (CLASS A) 60,398
-----------
601,970
-----------
TRANSPORTATION EQUIPMENT -- 3.48%
7,000 BRIDGESTONE CORP 165,436
14,484 BRITISH AEROSPACE PLC 110,924
4,400 DAIMLER BENZ AG. 432,679
8,000 DENSO CORP 132,579
33,200 oFIAT S.P.A. 145,317
8,000 HONDA MOTOR CO LTD 284,757
23,000 NISSAN MOTOR CO LTD 72,421
900 PEUGEOT S.A. 193,515
34,900 PIRELLI S.P.A. 108,973
26,000 ROLLS ROYCE LTD 107,368
28,000 TOYOTA MOTOR CORP 724,287
215 VOLKSWAGEN AG. 207,612
3,500 VOLVO AB SERIES B FREE 104,234
-----------
2,790,102
-----------
TRANSPORTATION SERVICES -- 3.08%
226,000 AIRTOURS PLC 1,700,634
249,000 oTHOMSON TRAVEL GROUP
PLC W/I 768,595
-----------
2,469,229
-----------
TRUCKING AND WAREHOUSING -- 0.17%
5,300 oTNT POST GROUP NV 135,482
-----------
WATER TRANSPORTATION -- 0.63%
15 DAMPSKIBSSELSKABET AF 1912
(CLASS B) 128,690
10 DAMPSKIBSSELSKABET
SVENDBORG (CLASS B) 122,146
35,000 NIPPON YUSEN KABUSHIKI KAISHA 118,529
9,236 PENINSULAR & ORIENTAL
STEAM NAVIGATION CO 132,991
-----------
502,356
-----------
TOTAL COMMON STOCK
(Cost $75,346,557) 77,807,939
-----------
SHORT TERM INVESTMENTS -- 2.80%
U.S. GOVERNMENT & AGENCIES -- 2.80%
FEDERAL HOME LOAN BANK
$2,250,000 5.400, 07/01/98 2,250,000
-----------
TOTAL SHORT TERM INVESTMENTS
(Cost $2,250,000) 2,250,000
-----------
TOTAL PORTFOLIO
(Cost $77,693,855) $80,329,402
===========
- ---------------
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.
58 1998 SEMI-ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS MANAGED ALLOCATION FUND
(Unaudited)
June 30, 1998
- ------------------------------------------------------------------
SHARES/
PRINCIPAL VALUE %
- ------------------------------------------------------------------
TIAA-CREF MUTUAL FUNDS -- 99.38%
4,501,017 BOND PLUS FUND $ 46,000,395 39.68%
2,249,409 GROWTH &
INCOME FUND 27,555,264 23.77
2,268,848 GROWTH
EQUITY FUND 27,725,324 23.91
1,340,725 INTERNATIONAL
EQUITY FUND 13,943,540 12.02
------------ ------
115,224,523 99.38
------------ ------
TOTAL TIAA-CREF
MUTUAL FUNDS
(Cost $106,444,584) 115,224,523 99.38
------------ ------
SHORT TERM INVESTMENTS -- 0.60%
U.S. GOVERNMENT & AGENCIES -- 0.60%
FEDERAL HOME
LOAN BANK
$700,000 5.400%, 07/01/98 700,000 0.60
------------ ------
TOTAL SHORT TERM
INVESTMENTS
(Cost $700,000) 700,000 0.60
------------ ------
TOTAL PORTFOLIO
(Cost $107,144,584) 115,924,523 99.98
OTHER ASSETS &
LIABILITIES, NET 16,804 0.02
------------ ------
NET ASSETS $115,941,327 100.00%
============ ======
- ---------------------------
The cost of investments for federal income tax purposes is substantially the
same as the amount disclosed above.
See notes to financial statements 1998 SEMI-ANNUAL REPORT 59
<PAGE>
TIAA-CREF MUTUAL FUNDS 1998 SEMI-ANNUAL REPORT
|Teachers Insurance and Annuity Association
TIAA|College Retirement Equities Fund
CREF|730 Third Avenue
|New York, NY 10017-3206
| BULK RATE |
|U.S. POSTAGE|
| PAID |
| TIAA-CREF |
TCMFSAR-8/98
