Annual Report 1998
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Audited financial statements
including statements of investments
December 31, 1998
TIAA-CREF Mutual Funds
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[GRAPHIC OMITTED]
Money Market Fund
Bond Plus Fund
Growth & Income Fund
Growth Equity Fund
International Equity Fund
Managed Allocation Fund
<PAGE>
TIAA-CREF MUTUAL FUNDS
1998 ANNUAL REPORT
4 MONEY MARKET FUND
6 BOND PLUS FUND
8 GROWTH & INCOME FUND
10 GROWTH EQUITY FUND
12 INTERNATIONAL EQUITY FUND
14 MANAGED ALLOCATION FUND
16 REPORT OF MANAGEMENT
RESPONSIBILITY
17 REPORT OF INDEPENDENT
AUDITORS
18 FINANCIAL STATEMENTS
27 STATEMENTS OF INVESTMENTS
MONEY MARKET FUND 27
BOND PLUS FUND 29
GROWTH & INCOME FUND 32
GROWTH EQUITY FUND 41
INTERNATIONAL EQUITY FUND 55
MANAGED ALLOCATION FUND 63
64 TAX INFORMATION
[PHOTO OMITTED]
Leo C. Kamp
TIAA-CREF Economist
1998 U.S. Economy:
Continued Expansion
In 1998, despite considerable distress in emerging-market economies, prosperity
continued here in the U.S. Growth remained strong, with the real
(inflation-adjusted) gross domestic product (GDP) posting a gain of 3.9 percent,
a sizable gain for the third year in a row.
Despite the growth, inflation continued to fall, largely as a result of sharp
drops in the prices of globally traded goods, especially commodities such as
oil. The Consumer Price Index (CPI) registered just a 1.6 percent gain for the
twelve months ending December, down slightly from 1.7 percent on a comparable
twelve-month basis in 1997 (see Figure 1). Given lower inflation, interest rates
have continued to trend lower -- ten-year Treasury bond yields reached 4.65
percent at year-end.
With growth came further employment gains. Almost 1.9 million employees were
added during the year, versus 2.8 million in 1997. And the unemployment rate
ended the year at just 4.3 percent (see Figure 1). Wages continued to rise 3.5-4
percent, a faster pace than inflation. Workers thus realized a boost in real
wages.
A strong economy and low interest rates helped propel equity markets to new
heights in 1998. The Russell 3000(R) returned 24 percent, though stocks were
quite volatile at times. Without much inflation risk, the U.S. Federal Reserve
Bank actually chose to start easing rates again, lowering their federal funds
rate target to 4.75 percent to stabilize financial markets and take out some
"insurance" against the economy's faltering after the financial tumult of August
and September following Russia's suspension of debt payments.
All of this is quite remarkable given the longevity of the economic expansion.
The current expansion -- lasting 93 months through December 31 -- is now the
longest peacetime expansion on record, eclipsing the 92-month expansion ending
in July 1990, but not yet overtaking the 106-month overall record set in the
late 1960s during the Vietnam War. Inflation is subdued, inventories remain low
relative to sales, consumer and business balance sheets are in good shape, and
investment has not been excessive (despite the rapid growth of information
technology investment).
The only negative affecting the economy last year was the poor state of
emerging-market economies, many of which became mired in deep recessions
following the onset of the Asian financial crisis in late 1997. The slump in
those markets slowed U.S. real growth in 1998. Our trade position, measured by
real net exports, deteriorated sharply (see Figure 2), cutting 1.2 percent from
overall growth. But that negative factor was mitigated significantly, since
lower inflation and lower interest rates -- partly due to the emerging-market
crisis -- actually stimulated growth in the U.S.
Despite the negative impact from net exports, the U.S. continued to do well.
Consumers remained upbeat: Rising consumer and business demand more than offset
the weaker demand from abroad. By one measure, real domestic demand rose almost
5.1 percent during the year.
The favorable combination of job growth, wage gains, and lower interest rates
substantially enhanced consumer purchasing power in 1998. Furthermore, household
wealth got a massive boost from the huge rise in the stock market over the past
four years. The Russell 3000(R) rose 152 percent over that period.
Given such a positive backdrop, it's no wonder consumer confidence remained at
near-record levels. There was an almost 5 percent rise in consumption
(two-thirds of GDP) in 1998. Spending on big-ticket durables such as autos and
furniture was particularly impressive, posting a 10.1 percent gain for the year.
Housing starts rose to 1.6 million units, compared with 1.5 million in 1997, the
highest annual rate since 1987 (see Figure 3).
Business investment contributed to higher demand, rising almost 12 percent as
<PAGE>
firms continued to strive to improve productivity and lower costs through higher
rates of capital investment. Information technology especially registered sharp
increases, with computer equipment investment rising a stunning 64 percent in
real terms during the year.
Real spending by government also rose in 1998, but at a fairly anemic pace of 1
percent compared with the rest of the economy. The federal government continued
to cut real spending by 1 percent, while state and local government units
moderately increased spending by 2 percent. Strong revenue growth and curtailed
spending allowed the federal government to post its first budget surplus since
fiscal year 1969.
Why such good results? The Federal Reserve Bank deserves much of the credit for
the favorable environment we've enjoyed. The Fed's actions of the recent past,
especially the doubling -- from 3 percent to 6 percent -- of the Fed funds
target during 1994 and into early 1995, put us on a path towards the favorable
climate we are enjoying today.
Product and labor markets have, moreover, been transformed by the increased
openness of our economy and by heightened global competition. Facing increased
pressure from abroad and ongoing deregulation, companies have been forced to
keep a lid on prices. No longer shielded by regulation and protectionist
barriers, they are unable to raise prices at will, or even pass through cost
increases. As a result, organized labor has lost much of its clout to force wage
increases upon companies. In fact, largely because of the growing
ineffectiveness of unions, their representation among private-sector workers has
shrunk dramatically since the 1970s.
Today, any attempt to raise prices generally means lost market share for firms
and fewer jobs for workers. Instead of raising prices, firms and their workers
now concentrate on efficiency gains as a way of preventing cost gains from
flowing through to prices, even when this means painful restructuring or
layoffs. Moreover, a strong dollar exchange rate has been important in keeping
inflation on a downward path. This was especially true in 1998, as the dollar
soared from a weaker Japanese yen during most of the year and from the collapse
of many Asian currencies.
With a strong dollar, foreign firms generally gain price competitiveness at the
expense of U.S. companies. As troubles in Asia increased, prices of exports from
those areas fell, prices of globally traded commodities (e.g., oil) dropped, and
capital flowed from abroad into the perceived safe haven of the U.S.
Lower prices of imports and commodities were major elements underlying low CPI
inflation during the year, and foreign capital inflows contributed to declining
Treasury bond yields.
However, while U.S. economic performance was excellent last year, it wasn't
perfect. With rising labor costs and with virtually no pricing power (from a
strong dollar and the Asian crisis), companies have faced declining profits over
the past year. As a result, employment and wage gains have softened recently.
Should profits continue to deteriorate, employment and wages will be likely to
suffer more, leading to a slowdown in consumer spending and less robust growth.
Also, our current account deficit continues to rise sharply, reflecting a
widening gap between domestic saving and domestic investment. Over the longer
term, mounting current account deficits could lead to sharp downward pressure on
the dollar exchange rate.
There still also remain major uncertainties about the ultimate impact on the
U.S. from the emerging-markets crisis. Hopefully, the recent interest-rate cuts
around the globe will forestall possible difficulties brought on by the Asian
financial crisis.
And while the federal government currently enjoys a relatively small budget
surplus, certain critical longer-term budgetary issues remain unresolved,
especially the looming Medicare and Social Security problems awaiting us in the
next century. The sooner those fiscal challenges are tackled, the brighter are
the prospects for a sustainable fiscal position going forward.
/s/ Leo C. Kamp
FIGURE 1
CPI inflation and the civilian unemployment rate are low and still falling
(The following table represents a graph in the printed piece.)
-- PERCENT --
UNEMPLOYMENT RATE INFLATION (CPI 12-MONTH PERCENTAGE
YEAR (YEAR-END) CHANGE ENDING DECEMBER)
90 6.3 6.25
91 7.3 2.98
92 7.4 2.96
93 6.5 2.81
94 5.4 2.6
95 5.6 2.6
96 5.3 3.31
97 4.7 1.7
98 4.3 1.61
FIGURE 2
Real net exports fell sharply in 1998
because of distress abroad
(The following table represents a graph in the printed piece.)
YEAR BILLIONS OF
CHAINED 1992 DOLLARS
90 -67.06
-66.66
-71.22
-42.5
91 -24.25
-17.1
-29.78
-17.93
92 -14.82
-32.53
-30.81
-40.01
93 -54.68
-62.57
-83.12
-80.55
94 -97.61
-103.89
-111.12
-105.87
95 -109.55
-114.7
-86.84
-74.78
96 -95.46
-113.46
-140.12
-95.92
97 -121.52
-131.61
-142.41
-149
98 -198.53
-245.17
-259.05
-262.9
FIGURE 3
Auto sales and housing continued to benefit from strong consumer fundamentals
(The following table represents a graph in the printed piece.)
LIGHT VEHICLE SALES
YEAR (Millions of Units)
90 13.82
91 12.32
92 12.87
93 13.9
94 15.05
95 14.81
96 15.07
97 15.05
98 15.65
1998 ANNUAL REPORT 1
<PAGE>
[PHOTO OMITTED]
Harvey Kerrich
TIAA-CREF Economist
Global Economic Report
The financial turmoil of 1998 has starkly revealed the extent of market
interdependencies in the global economy -- interdependencies amplified by
greatly enhanced communication capabilities and a broadening trend toward the
freer flow of trade and capital. Adjustments in global trade and capital flows,
combined with increased volatility in the prices of securities, forced global
market investors to reassess the financial risks they were prepared to assume
and the mechanisms in place intended to moderate or limit those risks. But
despite heightened perceptions of risk in the global economic system, world
equity markets ultimately produced returns in 1998 of about 15 percent in U.S.
dollar terms. Global bonds over the year produced similar returns in dollar
terms as yields fell. (See Figure 1.)
These positive overall outcomes masked the effects of a remarkable degree of
volatility in these markets, particularly during the third quarter, when risks
soared dramatically and market liquidity dried up. Actions of the U.S. Federal
Reserve between late September and mid-November were key in easing market
concerns during the rest of the year. It lowered the federal funds rate in three
stages by a total of 75 basis points, to 4.75 percent. Combined with a general
global trend to lower interest rates, the Federal Reserve's eased monetary
policy led to a sharp improvement in investor confidence and in securities
prices worldwide. (See Figure 2.)
For the U.S. and most of Europe, above-average economic growth was evident over
the course of the year. Nevertheless, heightened concerns regarding the
sustainability of economic growth persisted. Chronic weakness in Japan, which
posed potential setbacks in the stabilization efforts for the Asian
emerging-market economies experiencing severe downturns; debt default in Russia;
concerns about the viability of a number of Chinese government-sponsored
enterprises; and the ramifications of attempts to rectify fiscal instability in
Brazil all promoted a cautionary outlook.
Japan, the world's second-largest economy, has yet to deal effectively with the
recessionary forces afflicting it for nearly two years, with no clearcut
remedies on the economic horizon. The full effects of recent fiscal stimulus
plans there remain to be seen. In the third quarter of 1998, however,
public-sector demand contributed to a slight increase in overall demand, which
helped offset lowered demand in the private sector. Domestic confidence levels
in Japan remain extraordinarily weak, and credit growth dampened, as banks in
Japan have been hobbled by massive loan losses incurred at home and abroad. To
be competitive in both domestic and global markets, Japanese companies will have
to undergo large-scale corporate restructuring. This will lead to increased
levels of unemployment, adversely affecting personal income. Deflationary
pressures are intense, as households attempt to increase an already high rate of
savings in the face of increased labor market uncertainties.
The Japanese government's budget deficit is ballooning as a result of massive
fiscal packages and lower-than-expected revenues because of seriously weakened
economic conditions.
FIGURE 1
Global Bond Yields
(in U.S. dollars)
(The following table represents a graph in the printed piece.)
YIELD
12/97 5.05
4.98
4.9
3/98 4.81
4.97
4.78
6/98 4.71
4.73
4.5
9/98 4.02
4.13
4.05
12/98 4.11
source: J.P. Morgan
Bond issuance by the central government is surging, putting upward pressure on
interest rates. Implementation of fiscal stimulus packages has in part been
impaired because of local governments' inability to finance their allocated
share of added public investment in view of their own serious fiscal problems.
In the Asian emerging markets, which first sparked financial turmoil in
mid-1997, economic conditions tended to improve over the course of 1998. Output
has eased from contraction to stability. Current account balances are showing
large surpluses as a result of significantly more competitive currencies and
dampened domestic demand. In a number of Asian emerging econ-omies, interest
rates have declined to levels lower than those observed before the onset of the
Asian financial crisis. Lower interest rates in conjunction with more
competitive exchange rates are important preconditions for stronger real growth
over time. China accounts for almost one-third of Asia's emerging regional
economy. While
2 1998 ANNUAL REPORT
<PAGE>
maintaining a stable currency, spurred by fiscal pump-priming and increased bank
lending associated with sharp cuts in interest rates, China is expected to
exhibit the highest economic growth rate in the region, albeit one slower than
those of the recent past.
European economies exhibited mixed economic signs in 1998. Among the eleven
countries forming the European Monetary Union (EMU) on January 1, 1999, surveys
show that business confidence has deteriorated significantly. Declining from
near-record highs earlier in the year, these lower confidence levels indicate
potential subpar growth, as external conditions have led to a marked slowdown in
demand for exports. Consumer confidence, however, stands at levels that coincide
with those during spending booms of past cycles, supported by subdued inflation,
which helps to boost the purchasing power of household incomes. Also, growth and
employment have become the key policy objectives to emerge from a shift to the
left in recent election outcomes.
Fiscal policy in Europe is set to ease in favor of households, as government
deficits are low and servicing costs are falling in line with declining interest
rates. Over time, households may also experience positive wealth effects
associated with stronger equity markets. Increasingly, households can be
expected to shift their asset composition further in the direction of equity
holdings, as observed total returns in that asset class have been
extraordinarily attractive relative to bank deposits.
Market breadth and liquidity will have the potential to improve dramatically
under the single-currency Euro regime. Furthermore, massive privatization of
state holdings has greatly increased the ability of investors to diversify
across industrial sectors among EMU countries without incurring currency risk.
In the United Kingdom, business confidence has fallen precipitously, reaching
levels last seen during the recession of the early 1980s. A strong currency and
tight labor market have gripped the manufacturing sector in a vice. Expectations
for profitability have been seriously depressed, despite lower commodity and
import prices. Toward year-end the Bank of England loosened monetary policy in
response to evidence suggesting a widening of economic deterioration, and a very
benign outlook for inflation.
Interest rates have declined on a global basis over the year as inflationary
pressures remain dormant. Central banks of major industrialized countries were
more accommodating toward year-end
FIGURE 2
Index of World Equities Prices
(in U.S. dollars; 12/31/69 = 100)
(The following table represents a graph in the printed piece.)
PRICE
12/97 $ 936.59
961.49
1025.3
3/98 1067.35
1076.53
1061.79
6/98 1085.74
1082.74
937.09
9/98 952.39
1037.21
1097.62
12/98 1149.95
source: Morgan Stanley Capital International
as a result. EMU countries, for example, will begin their new monetary regime
with a low official rate of 3.0 percent.
Commodity prices, most notably oil, have fallen dramatically over the year. A
key index of commodity prices reached a historic low in the fourth quarter of
1998. (See Figure 3.) Crude oil prices have declined by about
FIGURE 3
Index of Commodity Prices
(in U.S. dollars; 1990 = 100)
(The following table represents a graph in the printed piece.)
INDEX
12/97 104.2
104.2
100.3
3/98 99.8
98.2
94.8
6/98 92.3
91.1
89
9/98 86.7
86.4
87.7
12/98 86.9
source: The Economist
40 percent during 1998 -- mostly as a result of weak demand in Japan and
troubled emerging-market economies. For major industrialized countries,
depressed oil prices have contributed to sharply lower inflationary
expectations, and to significantly lower interest rates supporting stronger real
income growth than might otherwise have been expected.
The volatility experienced in global capital markets over the past year or so
has heightened the awareness of investors, regulators, and key international
organizations to global markets' interdependence, and the potential for the
rapid transmission of seemingly localized difficulties to distant markets. A
result is likely to be more effective regulation of markets and improved
institutional infrastructure, as well as better dissemination of high-quality
information to market participants. These processes will most likely contribute
to the more effective allocation of capital across the globe, and over the
longer term, better returns to investors.
/s/ Harvey Kerrich
1998 ANNUAL REPORT 3
<PAGE>
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MONEY MARKET FUND
Risk Factor: Very low
Fund Size: $225.2 million
[PHOTO OMITTED]
Steven Traum
Managing Director, Teachers Advisors
Mr. Traum joined TIAA-CREF in 1983. He has been responsible for management of
the new CREF Inflation-Linked Bond Account since its inception in 1997 and the
CREF Money Market Account since its inception in 1988.
"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."
Investment Objective
The TIAA-CREF Money Market Fund seeks high current income, to the extent
consistent with maintaining liquidity and preserving capital.
Investor Profile
This fund is suitable for conservative investors looking for a high degree of
principal stability and liquidity, and willing to accept returns that are lower
than those offered by longer-term investments.
Investment Strategy
This fund invests in fixed and floating/ variable-rate securities. Most of the
fund's investments are in short-term commercial paper, domestic and foreign
certificates of deposit, bankers' acceptances, and securities issued by the U.S.
government and/or its agencies.
Performance Profile
o Invests in money market securities classified as "first-tier securities,"
which are ranked in the highest category by nationally recognized statistical
rating organizations
o Average weighted maturity of 90 days or less
o Longest maturity will be 397 days
Performance in 1998
The TIAA-CREF Money Market Fund's total annual rate of return at year-end is
5.45 percent versus 4.84 percent for the Lipper Money Market Funds Average.
Since inception, the fund's total rate of return is 5.47 percent. The Money
Market Fund's net assets increased by $161.6 million to $225.2 million.
Throughout the year, the TIAA-CREF Money Market Fund maintained its stellar
performance. It held its ranking as one of the top ten among 301 general-purpose
money market funds, according to the IBC Money Fund Report.
During 1998, we changed asset allocations to this fund, since different sectors
offered better relative value than others. Our holdings in commercial paper and
bank liabilities varied at different points in the year, as did our
floating/variable rate holdings. During the second half of the year, we shifted
a percentage of our holdings into U.S. government agency debt. These asset
allocation changes allowed us to achieve more effective returns.
The TIAA-CREF Money Market Fund's weighted average maturity varied from a low of
thirty-seven days to a high of sixty-nine days as compared with that of the IBC
Money Fund Report Averages -- All Taxable(TM), which varied from fifty-one days
to sixty days.
4 1998 ANNUAL REPORT
<PAGE>
Money Market Fund
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[GRAPHIC OMITTED]
$10,000 over Life of Fund
(The following table represents a graph in the printed piece.)
LIPPER IBC MONEY FUND
MONEY MARKET REPORT AVERAGES
FUNDS AVERAGE - ALL TAXABLE SM MONEY MARKET FUND
10000 10000 10000
Sept. 97 10040 10041 10044
10081 10084 10090
10121 10126 10132
Dec. 97 10164 10170 10179
10207 10214 10226
10244 10253 10269
Mar. 98 10286 10297 10317
10328 10340 10363
10370 10384 10407
June 98 10411 10426 10456
10454 10471 10504
10497 10515 10552
Sept. 98 10538 10558 10598
10579 10601 10643
10618 10641 10689
Dec. 98 10658 10682 10734
Asset Allocation AS OF 12/31/98
[The following table was depicted as a pie chart in the printed material.]
74% Commercial paper
16% U.S. government agency notes
5% Variable-rate notes
3% Certificates of deposit
2% Bankers' acceptances and bank notes
Maturity of Investments: Monthly Summary
(The following table represents a graph in the printed piece.)
PERCENTAGE OF
PORTFOLIO
JAN 61
FEB 27
MAR 5
APR 3
MAY 1
JUN 0
JUL 0
AUG 3
SEP 0
OCT 0
NOV 0
DEC 0
Performance at a Glance AS OF 12/31/98
<TABLE>
<CAPTION>
Average Annual Compound Cumulative Rates Average
Rates of Total Return(1) of Total Return(1) Expense Maturity
1 year since inception(2) 1 year since inception(2) Ratio as of 12/29/98
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Money Market Fund 5.45% 5.47% 5.45% 7.35% 0.29%(3) 39
- -------------------------------------------------------------------------------------------------------------------------
IBC Money Fund Report 5.04 5.11 5.04 6.82 0.50 54
Averages--All Taxable(TM)
- -------------------------------------------------------------------------------------------------------------------------
Lipper Money Market Funds Average 4.84 4.87 4.84 6.55
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Net Annualized Yield
Net Assets for the 7 days ending 12/29/98
in millions current yield effective yield
<S> <C> <C> <C>
Money Market Fund $225.2 4.97% 5.09%
- ----------------------------------------------------------------------------------
IBC Money Fund Report 4.53 4.64
Averages--All Taxable(TM)
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Lipper Money Market Funds Average
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</TABLE>
(1) Past performance shouldn't be taken as a guarantee of the same future
rates of return or yields from TIAA-CREF Mutual Funds. Future returns will
fluctuate, as will the value of investment principal. The shares you own
may be worth more or less than their original value upon redemption. We
will attempt to maintain a stable net asset value of $1.00 per share for
this fund, but it is possible to lose money by investing in the fund.
(2) Inception date of TIAA-CREF Mutual Funds was 9/2/97.
(3) This rate reflects a waiver of a portion of the fund's management fee. The
waiver is contractual and is guaranteed through at least July 1, 2000.
- --------------------------------------------------------------------------------
The TIAA-CREF Money Market Fund is neither insured nor guaranteed by the Federal
Deposit Insurance Corporation or any other U.S. government agency.
- --------------------------------------------------------------------------------
1998 ANNUAL REPORT 5
<PAGE>
[GRAPHIC OMITTED]
BOND PLUS FUND
Risk Factor: Low to moderate
Fund Size: $155.0 million
[PHOTO OMITTED]
Elizabeth Black
Managing 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 ($3.1 billion in assets)
and the fixed-income portion of CREF's Social Choice Account ($1.3 billion in
assets).
"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."
Investment Objective
The TIAA-CREF Bond Plus Fund seeks a favorable long-term rate of return,
primarily through high current income consistent with preserving capital.
Investor Profile
This fund is suitable for more-conservative investors who want to invest in a
general bond fund that has the potential for a higher yield with a slightly
higher level of risk.
Investment Strategy
The fund has two component features. The first component, consisting of at least
75 percent of the fund's assets, will be invested primarily in a broad range of
debt securities, such as U.S. Treasury and agency securities, corporate bonds,
foreign (dollar-denominated) bonds, mortgage- and asset-backed securities, and
money market instruments. These securities are found in the fund's benchmark,
the Lehman Brothers Aggregate Bond Index.
The Plus component will be invested primarily in securities not found in the
fund's benchmark. Examples of these securities include private placements and
non-investment-grade securities, which are lower-rated securities that typically
offer higher yields. The Plus part will not be larger than 25 percent of the
entire fund, and currently holds less than 5 percent of the fund's assets.
Performance Profile
o Aims to match the risk characteristics of the benchmark, so returns should be
similar to those of the benchmark index
o Overweights investments in undervalued securities as compared with the
benchmark, and underweights investments in overvalued securities as compared
with the benchmark
o Utilizes sector allocation strategies to maintain optimum portfolio structure
Performance in 1998
The Bond Plus Fund ended the year with a total return of 8.94 percent, beating
its benchmark, the Lehman Brothers Aggregate Bond Index's return of 8.69
percent, by 25 basis points.
Several key factors contributed to the performance of the Bond Plus Fund in
1998. Throughout the year, the fund was overweighted in discount and
current-coupon, mortgage-backed securities, which enjoyed better returns than
premium-coupon securities. Finally, the fund was invested in higher-quality
bonds in the latter half of 1998, a period when lower-rated, less-liquid bonds
underperformed dramatically. In the first half of the year, the fund utilized
the Plus component, purchasing several attractively priced corporate securities
that outperformed the benchmark.
In addition to the fund's strong performance during 1998, the Bond Plus Fund's
net assets grew by $96.6 million to $155 million at year-end.
6 1998 ANNUAL REPORT
<PAGE>
Bond Plus Fund
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
$10,000 over Life of Fund
(The following table represents a graph in the printed piece.)
Lipper Lehman
Intermediate Brothers
Investment Aggregate
Grade Debt Bond
Index Index Bond PLUS Fund
10000 10000 10000
Sept. 97 10144 10147 10143
10266 10295 10286
10295 10342 10345
Dec. 97 10389 10446 10451
10527 10580 10591
10513 10571 10575
Mar. 98 10552 10607 10627
10601 10662 10687
10697 10764 10781
June 98 10782 10855 10883
10804 10878 10914
10950 11055 11114
Sept. 98 11195 11314 11369
11104 11247 11301
11160 11311 11328
Dec. 98 11208 11345 11385
Top Five Market Sectors 6/30/98 12/31/98
- --------------------------------------------------------------------------------
U.S. Treasury bonds 24.4% 31.8%
- --------------------------------------------------------------------------------
Mortgage-backed securities* 32.4 29.7
- --------------------------------------------------------------------------------
Corporate bonds 26.6 24.6
- --------------------------------------------------------------------------------
U.S. government agencies 14.7 10.9
- --------------------------------------------------------------------------------
Money market instruments 1.9 3.0
- --------------------------------------------------------------------------------
*Includes government-backed and private-label securities and asset-backed
securities
Bond Plus vs. Benchmark: Risk Characteristics
Measure* Average Life Option-Adjusted
(in years) Duration (in years)
12/31/98 12/31/98
- --------------------------------------------------------------------------------
Bond Plus 7.22 4.53
- --------------------------------------------------------------------------------
Lehman Brothers 7.67 4.56
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.
Understanding Performance The option-adjusted duration is an 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.
Performance at a Glance AS OF 12/31/98
<TABLE>
<CAPTION>
Average Annual Compound Cumulative Rates
Rates of Total Return(1) of Total Return(1) Expense Net Assets
1 year since inception(2) 1 year since inception(2) Ratio in millions
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Bond Plus Fund 8.94% 10.23% 8.94% 13.85% 0.30%(3) $155.0
- ---------------------------------------------------------------------------------------------------------------------------
Lehman Brothers 8.69 10.00 8.69 13.54
Aggregate Bond Index
- ---------------------------------------------------------------------------------------------------------------------------
Lipper Intermediate Investment 7.87 8.93 7.87 12.08
Grade Debt Index
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Past performance shouldn't be taken as a guarantee of the same future
rates of return or yields from TIAA-CREF Mutual Funds. Future returns will
fluctuate, as will the value of investment principal. The shares you own
may be worth more or less than their original value upon redemption.
(2) Inception date of TIAA-CREF Mutual Funds was 9/2/97.
(3) This rate reflects a waiver of a portion of the fund's management fee. The
waiver is contractual and is guaranteed through at least July 1, 2000.
1998 ANNUAL REPORT 7
<PAGE>
GROWTH & INCOME FUND
Risk Factor: Moderate Fund
Size: $232.6 million
[PHOTO OMITTED]
Carlton N. Martin
Managing Director - Global Research,
Teachers Advisors
Mr. Martin joined TIAA-CREF in 1980. He is also responsible for managing the
CREF Global Equities Account.
"This fund 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."
Investment Objective
The TIAA-CREF Growth & Income Fund seeks favorable long-term returns through
capital appreciation and investment income, primarily from a broadly diversified
portfolio of common stocks.
Investor Profile
This fund is suitable for investors who desire capital appreciation and current
income and who can accept some degree of market fluctuation.
Investment Strategy
This fund will invest at least 80 percent of its total assets in
income-producing equity securities of larger, stable, well-established, mature
growth companies, which we believe are fairly priced. These may include
companies located outside the U.S. The fund consists of two parts. One part is
indexed to slightly exceed its benchmark, the Standard & Poor's 500-Stock Index.
The other part is actively managed by selecting stocks of companies that we
believe have strong managements and excellent prospects for growth. The fund may
invest up to 20 percent of its total assets in foreign securities.
Performance Profile
o Indexed portion (at year-end, 68 percent) aims to slightly exceed the
benchmark, with low volatility
o Actively buys stocks when priced fairly or at a discount to growth potential
and asset values
o Occasionally acquires stocks of foreign-based companies not in the benchmark
Performance in 1998
At year-end, the Growth & Income Fund returned 30.51 percent, compared with a
28.58 percent return for its benchmark, the S&P 500 Index. It more than doubled
the 13.58 percent rate of the Lipper Growth & Income Funds Index, outperforming
it by a wide margin of 16.93 percent.
The fund's strong performance during the year was primarily a result of very
effective stock selection in the utilities/ telecommunications area. In the
technology sector, our selected telecommunication equipment companies performed
extremely well. We also had highly effective stock and sector selection in the
health care industry.
For 1998, net assets of the Growth & Income Fund grew by almost $171 million to
$232.6 million.
8 1998 ANNUAL REPORT
<PAGE>
Growth & Income Fund
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
$10,000 over Life of Fund
(The following table represents a graph in the printed piece.)
Lipper Growth & Growth &
Income Funds Index S&P 500 Index Income Fund
10000 10000 10000
Sept. 97 10505 10548 10542
10156 10195 10207
10440 10667 10667
Dec. 97 10616 10851 10837
10636 10971 10952
11303 11762 11708
Mar. 98 11826 12365 12430
11890 12490 12651
11708 12275 12451
June 98 11849 12773 12917
11559 12636 12854
9926 10809 10934
Sept. 98 10372 11502 11499
11125 12437 12482
11661 13191 13296
Dec. 98 12058 13951 14143
Ten Largest Holdings AS OF 12/31/98
Company Shares Market Value (000)
- --------------------------------------------------------------------------------
Microsoft 52,820 $7,325
- --------------------------------------------------------------------------------
General Electric 69,504 7,094
- --------------------------------------------------------------------------------
Merck & Co. 33,224 4,907
- --------------------------------------------------------------------------------
Exxon 67,094 4,906
- --------------------------------------------------------------------------------
Intel 38,695 4,588
- --------------------------------------------------------------------------------
AT&T 57,396 4,319
- --------------------------------------------------------------------------------
IBM 22,760 4,205
- --------------------------------------------------------------------------------
Wal-Mart 51,350 4,182
- --------------------------------------------------------------------------------
Pfizer 31,824 3,992
- --------------------------------------------------------------------------------
Lucent Technologies 33,296 3,663
- --------------------------------------------------------------------------------
Top Ten Sectors AS OF 12/31/98
Sector Market Value (000)
- --------------------------------------------------------------------------------
Technology $40,620
- --------------------------------------------------------------------------------
Financial Services 34,696
- --------------------------------------------------------------------------------
Health Care 31,589
- --------------------------------------------------------------------------------
Consumer Noncyclicals 27,180
- --------------------------------------------------------------------------------
Utilities 26,908
- --------------------------------------------------------------------------------
Consumer Cyclicals 24,893
- --------------------------------------------------------------------------------
Energy 13,578
- --------------------------------------------------------------------------------
Producer Durables 11,957
- --------------------------------------------------------------------------------
Basic Industries 7,539
- --------------------------------------------------------------------------------
Transportation 2,451
- --------------------------------------------------------------------------------
Performance at a Glance AS OF 12/31/98
<TABLE>
<CAPTION>
Average Annual Compound Cumulative Rates
Rates of Total Return(1) of Total Return(1) Expense Net Assets
1 year since inception(2) 1 year since inception(2) Ratio in millions
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Growth & Income Fund 30.51% 29.74% 30.51% 41.44% 0.43%(3) $232.6
- -------------------------------------------------------------------------------------------------------------------------------
S&P 500 Index 28.58 28.41 28.58 39.51
- -------------------------------------------------------------------------------------------------------------------------------
Lipper Growth & Income Funds Index 13.58 15.00 13.58 20.48
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Past performance shouldn't be taken as a guarantee of the same future
rates of return or yields from TIAA-CREF Mutual Funds. Future returns will
fluctuate, as will the value of investment principal. The shares you own
may be worth more or less than their original value upon redemption.
(2) Inception date of TIAA-CREF Mutual Funds was 9/2/97.
(3) This rate reflects a waiver of a portion of the fund's management fee. The
waiver is contractual and is guaranteed through at least July 1, 2000.
1998 ANNUAL REPORT 9
<PAGE>
[GRAPHIC OMITTED]
GROWTH EQUITY FUND
Risk Factor: Moderate to high
Fund Size: $296.4 million
[PHOTO OMITTED]
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.
"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."
Investment Objective
The TIAA-CREF Growth Equity Fund seeks a favorable rate of return, mainly
through the capital appreciation of a diversified portfolio of common stocks
that have the potential for strong growth.
Investor Profile
This fund is suitable for investors who are looking for long-term capital
appreciation and a hedge against inflation, but who are willing to tolerate
short-term fluctuations in value.
Investment Strategy
This fund invests at least 80 percent of its total assets in the equity
securities of companies that have the potential for capital appreciation.
Companies are selected according to (1) their potential for above-average level
of earnings growth; (2) if they appear to be undervalued based on their current
earnings and assets; and (3) their prospects for growth.
Depending on investment opportunities, the Growth Equity Fund can also have up
to 40 percent of its assets in foreign securities.
Performance Profile
o Benchmarked to the Russell 3000(R) Growth Index to select stocks with higher
growth value (the Russell 3000(R) is a trademark of the Frank Russell Co.)
o Actively managed part of the fund (at year-end, 49 percent) is concentrated in
stocks of rapidly growing companies dominant in products and/or services
o Actively selects international stocks outside of the benchmark as
opportunities arise
Performance in 1998
The Growth Equity Fund got off to a great start in its first full year of
existence, posting a total return of 35.97 percent. This return placed the fund
in the eighty-seventh percentile versus the competition, as measured by the
Lipper Growth Index, which advanced 25.69 percent. The fund also outpaced its
benchmark, the Russell 3000(R) Growth Index, which returned 35.02 percent, by 95
basis points. A significant part of the fund's performance occurred in the
fourth quarter, when its return of 28.36 percent beat both the benchmark (+26.49
percent) and the competition (+22.76 percent).
Among the best-performing sectors of the market were technology (+75 percent)
and health care (+42 percent). While the former benefited from a tremendous
rally in the fourth quarter (following a year-long bear market in most
technology stocks), the latter were the steady performers of the market as a
result of their earnings consistency.
The fund's two largest holdings during 1998, Tyco International (+67 percent)
and MCI WorldCom (+137 percent), were among the fund's top contributors to
performance. By building conviction in these names over a long period of time,
we were unmoved by the market's swoon during October and were able to take
advantage of the situation to add to these leading positions.
The fund had approximately $296.4 million in net assets at year-end. This figure
represents a more than fourfold increase from one year earlier ($64.5 million).
10 1998 ANNUAL REPORT
<PAGE>
Growth Equity Fund
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
$10,000 over Life of Fund
(The following table represents a graph in the printed piece.)
Lipper Russell
Growth 3000(R) Growth
Funds Growth Equity
Index Index Fund
10000 10000 10000
Sept. 97 10572 10524 10535
10231 10109 10189
10466 10469 10640
Dec. 97 10643 10575 10819
10714 10847 11097
11469 11675 11899
Mar. 98 11960 12144 12434
12088 12303 12658
11791 11903 12327
June 98 12300 12578 13064
12170 12409 12883
10215 10465 10638
Sept. 98 10897 11288 11461
11651 12171 12402
12345 13098 13300
Dec. 98 13377 14280 14711
Industry Diversification AS OF 12/31/98
- --------------------------------------------------------------------------------
[The following table was depicted as a pie chart in the printed material.]
42% Consumer products and services
22% Technology
16% Manufacturing and materials
8% Financial
8% Utilities
3% Short-term investments
1% Energy/transportation
Ten Largest Holdings AS OF 12/31/98
Company Shares Market Value (000)
- --------------------------------------------------------------------------------
Tyco International 190,915 $14,402
- --------------------------------------------------------------------------------
MCI WorldCom 196,091 14,070
- --------------------------------------------------------------------------------
Microsoft 98,025 13,595
- --------------------------------------------------------------------------------
General Electric 113,835 11,618
- --------------------------------------------------------------------------------
Waste Management 229,470 10,699
- --------------------------------------------------------------------------------
Merck & Co. 59,400 8,773
- --------------------------------------------------------------------------------
Cisco Systems 70,770 6,568
- --------------------------------------------------------------------------------
Intel 53,853 6,385
- --------------------------------------------------------------------------------
Lucent Technologies 52,080 5,729
- --------------------------------------------------------------------------------
Premier Parks 188,850 5,713
- --------------------------------------------------------------------------------
Performance at a Glance as of 12/31/98
<TABLE>
<CAPTION>
Average Annual Compound Cumulative Rates
Rates of Total Return(1) of Total Return(1) Expense Net Assets
1 year since inception(2) 1 year since inception(2) Ratio in millions
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Growth Equity Fund 35.97% 33.63% 35.97% 47.11% 0.45%(3) $296.4
- ---------------------------------------------------------------------------------------------------------------------------
Russell 3000(R)Growth Index 35.02 30.67 35.02 42.79
- ---------------------------------------------------------------------------------------------------------------------------
Lipper Growth Funds Index 25.69 24.38 25.69 33.76
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Past performance shouldn't be taken as a guarantee of the same future
rates of return or yields from TIAA-CREF Mutual Funds. Future returns will
fluctuate, as will the value of investment principal. The shares you own
may be worth more or less than their original value upon redemption.
(2) Inception date of TIAA-CREF Mutual Funds was 9/2/97.
(3) This rate reflects a waiver of a portion of the fund's management fee. The
waiver is contractual and is guaranteed through at least July 1, 2000.
1998 ANNUAL REPORT 11
<PAGE>
[GRAPHIC OMITTED]
INTERNATIONAL EQUITY FUND
Risk Factor: Moderate to high
Fund Size: $118.6 million
[PHOTO OMITTED]
Chris Semenuk
Director - Global Portfolio Management,
Teachers Advisors
Mr. Semenuk joined TIAA-CREF in 1993. He is also responsible for managing the
CREF Global Equities Account.
"The International Equity Fund strives to seek out and invest in non-U.S.
growth-oriented companies that we believe have strong management, that focus on
shareholder returns and allocate capital effectively. The fund will let its
bottom-up stock-picking style determine its country asset allocation."
Investment Objective
The TIAA-CREF International Equity Fund seeks a favorable long-term return,
mainly through capital appreciation from a broadly diversified portfolio
consisting primarily of foreign equity investments.
Investor Profile
This fund is suitable for investors who are looking for potentially
above-average long-term returns, who are comfortable with investing in foreign
securities, who understand the advantages of diversification across
international markets, and who are willing to tolerate a greater degree of risk.
Investment Strategy
Approximately 80 percent of this fund's assets are invested in the securities of
issuers located in at least three different countries, excluding the United
States. The fund allocates investments to particular countries or regions based
on our assessment of economic growth potential as well as the sales and earnings
outlook for companies in those countries or regions. (Foreign securities often
have risks that differ from those of domestic securities, including changes in
currency exchange rates and the impact of political, social, or diplomatic
events.)
Performance Profile
o Employs a two-pronged investment strategy to achieve returns on international
equities
o Core component of the fund aims to slightly exceed the fund's benchmark, the
Morgan Stanley Europe, Australasia, Far East (EAFE) Index
o Actively managed part comprises international stocks of companies we believe
have strong management and excellent prospects for growth
Performance in 1998
At year-end, the International Equity Fund returned 19.27 percent, 661 basis
points (6.61 percent) ahead of the competition, which posted a gain of 12.66
percent. The fund trailed its benchmark, the Morgan Stanley EAFE Index (+20
percent), by 73 basis points, or just about three-quarters of a full percentage
point. The fund ranked in the 80th percentile versus its competition.
Avoiding positions in the Asian region represented the most positive
contribution to the fund's performance, despite the region's bounce during the
fourth quarter. However, the fund's exposure to the Norwegian market (-29
percent) weakened the fund's overall performance, reflecting the decline in oil
prices. Our country exposure is the result of the fund's stock selection.
Several of the companies that we invest in call a particular country their home,
but in fact conduct their business on a global scale.
Our 1998 stock selection, which we rely on most heavily for our performance, did
not keep us ahead of our benchmark, despite our strong fourth-quarter showing
(+21.86 percent). Our investment in the catering company Compass (+89 percent)
continued to perform well throughout the year. In addition, our ownership of
companies in the mobile communications industry, such as the Finnish company
Sonera (+44 percent) and the Greek company Panafon (+47 percent), contributed
significantly to the fund's performance.
12 1998 ANNUAL REPORT
<PAGE>
International Equity Fund
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
$10,000 over Life of Fund
(The following table represents a graph in the printed piece.)
Lipper Morgan
International Stanley International
Funds EAFE Equity
Index Index Fund
10000 10000 10000
Sept. 97 10642 10560 10570
9834 9748 9759
9753 9649 9682
Dec. 97 9830 9733 9770
10068 10178 10186
10712 10831 10767
Mar. 98 11294 11165 11194
11467 11253 11292
11490 11253 11303
June 98 11390 11339 11391
11565 11453 11479
9901 10034 9967
Sept. 98 9593 9726 9562
10298 10739 10094
10814 11289 11095
Dec. 98 11080 11680 11652
Ten Largest Holdings AS OF 12/31/98
Company Country Shares Market Value (000)
- --------------------------------------------------------------------------------
Pearson PLC United Kingdom 170,400 $3,382
- --------------------------------------------------------------------------------
Mannesman AG Germany 22,950 2,632
- --------------------------------------------------------------------------------
Sonera Group OYJ Finland 145,200 2,581
- --------------------------------------------------------------------------------
Vodafone Group PLC United Kingdom 156,716 2,545
- --------------------------------------------------------------------------------
Railtrack Group PLC United Kingdom 91,460 2,391
- --------------------------------------------------------------------------------
Panafon Hellenic Telecom Greece 84,000 2,232
- --------------------------------------------------------------------------------
Telcom Italia Mobile S.P.A. Italy 257,960 1,909
- --------------------------------------------------------------------------------
AXA France 12,205 1,770
- --------------------------------------------------------------------------------
Airtours PLC United Kingdom 266,000 1,699
- --------------------------------------------------------------------------------
Logica PLC United Kingdom 194,700 1,693
- --------------------------------------------------------------------------------
Performance at a Glance AS OF 12/31/98
<TABLE>
<CAPTION>
Average Annual Compound Cumulative Rates
Rates of Total Return(1) of Total Return(1) Expense Net Assets
1 year since inception(2) 1 year since inception(2) Ratio in millions
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
International Equity Fund 19.27% 12.17% 19.27% 16.52% 0.49%(3) $118.6
- -----------------------------------------------------------------------------------------------------------------------
Morgan Stanley EAFE Index 20.00 12.37 20.00 16.80
- -----------------------------------------------------------------------------------------------------------------------
Lipper International Funds Index 12.66 7.94 12.66 10.72
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Past performance shouldn't be taken as a guarantee of the same future
rates of return or yields from TIAA-CREF Mutual Funds. Future returns will
fluctuate, as will the value of investment principal. The shares you own
may be worth more or less than their original value upon redemption.
(2) Inception date of TIAA-CREF Mutual Funds was 9/2/97.
(3) This rate reflects a waiver of a portion of the fund's management fee. The
waiver is contractual and is guaranteed through at least July 1, 2000.
1998 ANNUAL REPORT 13
<PAGE>
[GRAPHIC OMITTED]
MANAGED ALLOCATION FUND
Risk Factor: Moderate
Fund Size: $162.9 million
[PHOTO OMITTED]
James G. Fleischmann
Senior Managing Director -
Global Research,
Teachers Advisors
[PHOTO OMITTED]
Edward J. Grzybowski
Managing Director -
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.
"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."
Investment Objective
The TIAA-CREF Managed Allocation Fund seeks a favorable total rate of return
primarily through investments in several of the other TIAA-CREF Mutual Funds
that pursue capital appreciation and current income.
Investor Profile
This fund is suitable for investors with time horizons of at least five years,
who seek broad diversification, and who prefer to have their asset allocation
decisions made by professional money managers. This fund can serve as a complete
investment program or as the core of a larger portfolio.
Investment Strategy
Approximately 60 percent of this fund's assets can be invested in shares of the
TIAA-CREF International Equity Fund, the TIAA-CREF Growth Equity Fund, the
TIAA-CREF Growth & Income Fund, and approximately 40 percent in the TIAA-CREF
Bond Plus Fund.
These percentages may fluctuate by as much as 15 percent, depending on market,
economic, and financial conditions. During periods of unusual volatility and/or
flexibility in meeting redemptions and expenses, this fund may also temporarily
invest in government securities, short-term securities, or shares of the
TIAA-CREF Money Market Fund.
Performance Profile
o Allocation mixture of 60 percent equities and 40 percent fixed income may
shift up or down by up to 15 percent, based on the relative values of each
sector
o Equity portion consists of a changing mixture of three equity funds, the
TIAA-CREF International, Growth Equity, and Growth & Income Funds
o Fixed-income portion is invested mostly in the Bond Plus Fund, with occasional
investments in the Money Market Fund
Performance in 1998
The Managed Allocation Fund performed very well in 1998, showing an annual total
return of 21.24 percent. It registered 1.65 percent more than its benchmark, the
Managed Allocation Fund composite index, which posted a 19.59 percent return.
At various times during the year, we changed the allocation structure of the
fund in relation to events that impacted financial markets.
Early in the year, concern about the worsening economic conditions in Southeast
Asia prompted a change in asset allocation. In January, we liquidated the 4
percent held in the Money Market Fund and transferred the proceeds into the Bond
Plus Fund. Also, we changed the equity-to-debt ratio from 60/40 to 58/42. Later,
in March, we moved back to a 60/40 allocation. However, we held the
international equity allocation below the benchmark's allocation as a result of
the lingering weak economic situation in Asia.
14 1998 ANNUAL REPORT
<PAGE>
Managed Allocation Fund
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
$10,000 over Life of Fund
(The following table represents a graph in the printed piece.)
Composite index
(48% S&P 500 Index;
40% Lehman Brothers
Aggregate
Bond Index; Managed
Lipper Balanced 12% Morgan Stanley Allocation
Funds Index EAFE Index) Fund
10000 10000 10000
Sept. 97 10399 10389.1 10375
10210 10181.5 10178
10397 10415.1 10396
Dec. 97 10550 10554.7 10539
10624 10719.4 10728
11046 11174.3 11139
Mar. 98 11384 11518 11499
11463 11610.5 11637
11347 11541.3 11563
June 98 11552 11827.3 11882
11417 11785 11861
10433 10809.4 10839
Sept. 98 10884 11208.6 11207
11291 11754.9 11721
11704 12208 12203
Dec. 98 12136 12639.6 12777
In September, we lowered the fund's equity weight in response to the uncertainty
concerning increasing global liquidity problems. The allocation shifted from
60/40 (equity/debt) to 2.5 percent cash, 57.5 percent equity, and 40 percent
debt. In early November, we increased the allocation within the equity component
to the International Fund by about 7 percent. The allocations to the Growth and
Growth & Income Funds were increased marginally, and we reduced the allocation
to the Money Market Fund from 2.5 percent to 1.25 percent.
As we enter 1999, our current allocations are as follows: 58.75 percent in
equities, 40 percent in bonds, and 1.25 percent in cash. As there are no obvious
impediments to modest growth, with very low inflation both in the U.S. and
globally, we feel the Managed Allocation Fund is well structured to benefit from
the current economic environment.
Asset Allocation AS OF 12/31/98
- --------------------------------------------------------------------------------
[The following table was depicted as a pie chart in the printed material.]
39% Bond Plus Fund
24% Growth Equity Fund
24% Growth & Income Fund
12% International Equity Fund
1% Money Market Fund
Performance at a Glance AS OF 12/31/98
<TABLE>
<CAPTION>
Average Annual Compound Cumulative Rates
Rates of Total Return(1) of Total Return(1) Expense Net Assets
1 year since inception(2) 1 year since inception(2) Ratio in millions
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Managed Allocation Fund 21.24% 20.21% 21.24% 27.77% 0%(3) $162.9
- -----------------------------------------------------------------------------------------------------------------------
Composite index(4) 19.59 19.24 19.59 26.40
- -----------------------------------------------------------------------------------------------------------------------
Lipper Balanced Funds Index 15.09 15.76 15.09 21.54
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Past performance shouldn't be taken as a guarantee of the same future
rates of return or yields from TIAA-CREF Mutual Funds. Future returns will
fluctuate, as will the value of investment principal. The shares you own
may be worth more or less than their original value upon redemption.
(2) Inception date of TIAA-CREF Mutual Funds was 9/2/97.
(3) 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.
(4) Composite index: 48% S&P 500 Index; 40% Lehman Brothers Aggregate Bond
Index; 12% Morgan Stanley EAFE Index.
1998 ANNUAL REPORT 15
<PAGE>
- ----
TIAA
CREF
- ----
- --------------------------------------------------------------------------------
Report of Management Responsibility
To the Shareholders of
TIAA-CREF Mutual Funds:
The accompanying financial statements of the Money Market, Bond Plus, Growth &
Income, Growth Equity, International Equity and Managed Allocation Funds of
TIAA-CREF Mutual Funds ("the Funds") are the responsibility of management. They
have been prepared in accordance with generally accepted accounting principles
and have been presented fairly and objectively in accordance with such
principles.
The Funds have established and maintain a strong system of internal controls
designed to provide reasonable assurance that assets are properly safeguarded
and transactions are properly executed in accordance with management's
authorization, and to carry out the ongoing responsibilities of management for
reliable financial statements. In addition, the Funds' internal audit personnel
provide a continuing review of the internal controls and operations of the
Funds, and the internal Auditor regularly reports to the Audit Committee of the
Funds' Board of Trustees.
The accompanying financial statements have been audited by the independent
auditing firm of Ernst & Young LLP. The independent auditors' report, which
appears on the following page, expresses an independent opinion on the fairness
of presentation of these financial statements.
The Audit Committee of the Funds' Board of Trustees, consisting of trustees who
are not officers of the TIAA-CREF Mutual Funds, meets regularly with management,
representatives of Ernst & Young LLP and internal audit personnel to review
matters relating to financial reporting, internal controls and auditing. In
addition to the annual audit of the financial statements of the Funds by the
independent auditing firm, the Securities and Exchange Commission performs
periodic examinations of the Funds' operations.
/s/ Thomas G. Walsh
-----------------------------------
President
/s/ Richard L. Gibbs
-----------------------------------
Executive Vice President and
Principal Accounting Officer
16 1998 ANNUAL REPORT
<PAGE>
[Letterhead of Ernst & Young LLP]
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees of
TIAA-CREF Mutual Funds:
We have audited the accompanying statements of assets and liabilities, including
the statements of investments, of TIAA-CREF Mutual Funds (comprising,
respectively, the Money Market Fund, the Bond Plus Fund, the Growth & Income
Fund, the Growth Equity Fund, the International Equity Fund, and the Managed
Allocation Fund) as of December 31, 1998, and the related statements of
operations for the year then ended and the statement of changes in net assets
and financial highlights for the year then ended and the period July 17, 1997
(commencement of operations) to December 31, 1997. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of December 31, 1998 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Money Market Fund, the Bond Plus Fund, the Growth & Income Fund, the Growth
Equity Fund, the International Equity Fund, and the Managed Allocation Fund of
TIAA-CREF Mutual Funds as of December 31, 1998, the results of their operations
for the year then ended and the changes in their net assets and the financial
highlights for the year then ended and the period July 17, 1997 to December 31,
1997, in conformity with generally accepted accounting principles.
/s/ Ernst & Young LLP
February 5, 1999
1998 ANNUAL REPORT 17
<PAGE>
TIAA-CREF Mutual Funds STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
December 31, 1998
<TABLE>
<CAPTION>
Money Bond Growth & Growth International Managed
Market Plus Income Equity Equity Allocation
Fund Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Portfolio investments, at cost $224,016,059 $171,212,617 $199,542,226 $242,309,647 $106,037,759 $145,288,454
Net unrealized appreciation
of portfolio investments -- 2,015,947 32,934,060 56,187,626 11,384,900 17,471,877
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio investments, at value 224,016,059 173,228,564 232,476,286 298,497,273 117,422,659 162,760,331
Cash 197,562 98,179 611,882 135,840 257,841 57,418
Receivable from securities transactions -- 21,980,776 119,622 1,081,880 1,334,232 --
Receivable for Fund shares sold 1,409,394 416,939 303,861 542,195 72,030 258,368
Dividends receivable -- -- 209,022 181,046 187,581 --
Interest receivable 275,277 1,814,131 -- 139 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets 225,898,292 197,538,589 233,720,673 300,438,373 119,274,343 163,076,117
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Accrued management fee 53,362 38,089 79,868 104,345 47,523 --
Payable for securities transactions -- 42,364,183 825,509 3,939,870 561,022 161,998
Payable for Fund shares redeemed 634,195 101,300 188,747 31,208 101,737 47,144
Other payables and accrued expenses 23,437 1,302 1,907 1,414 9,102 --
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 710,994 42,504,874 1,096,031 4,076,837 719,384 209,142
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $225,187,298 $155,033,715 $232,624,642 $296,361,536 $118,554,959 $162,866,975
===================================================================================================================================
Net assets consist of:
Paid in capital $225,187,704 $153,169,126 $194,888,226 $239,838,359 $110,917,009 $145,170,927
Accumulated undistributed
(overdistributed) net investment
income -- 21,632 5,517 11,011 (9,196) --
Accumulated undistributed
net realized gain (loss) on total
investments (406) (172,990) 4,795,826 324,540 (3,750,747) 224,171
Accumulated net unrealized appreciation
on investments -- 2,015,947 32,935,073 56,187,626 11,397,893 17,471,877
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $225,187,298 $155,033,715 $232,624,642 $296,361,536 $118,554,959 $162,866,975
===================================================================================================================================
Outstanding shares of beneficial
interest, unlimited shares
authorized ($.0001 par value) 225,187,704 15,052,690 17,449,059 21,708,531 11,248,585 13,810,531
Net asset value per share $1.00 $10.30 $13.33 $13.65 $10.54 $11.79
===================================================================================================================================
</TABLE>
18 1998 ANNUAL REPORT
<PAGE>
TIAA-CREF Mutual Funds STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Money Bond Growth & Growth International Managed
Market Plus Income Equity Equity Allocation
Fund Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest $7,361,329 $6,236,614 $ 118,687 $ 209,290 $ 118,453 $ 28,095
Dividends -- -- 1,848,754 1,093,558 1,418,821 3,029,142
Foreign taxes withheld -- -- (11,746) (7,640) (174,306) --
- -----------------------------------------------------------------------------------------------------------------------------------
Total income 7,361,329 6,236,614 1,955,695 1,295,208 1,362,968 3,057,237
- -----------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Management fees 1,044,565 836,888 1,302,642 1,511,154 784,003 --
Trustee fees and expenses 1,587 1,255 1,681 1,909 2,216 --
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses before waiver 1,046,152 838,143 1,304,323 1,513,063 786,219 --
Less expenses waived by the advisor (661,117) (523,055) (700,345) (795,344) (395,961) --
- -----------------------------------------------------------------------------------------------------------------------------------
Net expenses 385,035 315,088 603,978 717,719 390,258 --
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 6,976,294 5,921,526 1,351,717 577,489 972,710 3,057,237
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON TOTAL INVESTMENTS
Realized gain (loss) on:
Underlying Fund distributions -- -- -- -- -- 953,101
Portfolio investments (406) 1,380,932 5,269,952 2,029,432 (3,637,024) (27,672)
Foreign currency transactions -- -- (7,782) (36,032) 103,343 --
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on total
investments (406) 1,380,932 5,262,170 1,993,400 (3,533,681) 925,429
- -----------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation on:
Portfolio investments -- 1,588,693 31,133,966 55,669,056 16,754,944 17,451,450
Translations of assets (other than
portfolio investments) and
liabilities denominated
in foreign currencies -- -- 1,014 -- 6,082 --
- -----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
on total investments -- 1,588,693 31,134,980 55,669,056 16,761,026 17,451,450
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on total investments (406) 2,969,625 36,397,150 57,662,456 13,227,345 18,376,879
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations $6,975,888 $8,891,151 $37,748,867 $58,239,945 $14,200,055 $21,434,116
===================================================================================================================================
See notes to financial statements 1998 ANNUAL REPORT 19
</TABLE>
<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
Year (Commencement Year (Commencement
Ended of Operations) Ended of Operations)
December 31, to December 31, December 31, to December 31,
1998 1997 1998 1997
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income $6,976,294 $1,308,831 $5,921,526 $1,411,285
Net realized gain (loss) on total
investments (406) -- 1,380,932 626,451
Net change in unrealized
appreciation (depreciation) on
total investments -- -- 1,588,693 427,254
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) from
operations 6,975,888 1,308,831 8,891,151 2,464,990
- -------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (6,976,294) (1,308,831) (5,899,894) (1,411,285)
In excess of net investment income -- -- -- --
From net realized gains on total
investments -- -- (1,547,852) (632,521)
- -------------------------------------------------------------------------------------------------------
Total distributions (6,976,294) (1,308,831) (7,447,746) (2,043,806)
- -------------------------------------------------------------------------------------------------------
SHARE TRANSACTIONS:
Seed money subscriptions -- 48,000,000 -- 32,000,000
Subscriptions 231,893,540 15,370,172 85,689,920 23,894,752
Reinvestment of distributions 6,807,830 1,306,414 7,241,764 2,036,164
Exchanges among the Funds (13,203,378) (701,535) 4,219,339 151,528
Redemptions (63,915,543) (369,796) (1,963,519) (100,822)
- -------------------------------------------------------------------------------------------------------
Net increase from share
transactions 161,582,449 63,605,255 95,187,504 57,981,622
- -------------------------------------------------------------------------------------------------------
Total increase in net assets 161,582,043 63,605,255 96,630,909 58,402,806
NET ASSETS
Beginning of period 63,605,255 -- 58,402,806 --
- -------------------------------------------------------------------------------------------------------
End of period $225,187,298 $63,605,255 $155,033,715 $58,402,806
=======================================================================================================
CHANGE IN FUND SHARES:
Shares outstanding at beginning of
period 63,605,255 -- 5,788,193 --
- -------------------------------------------------------------------------------------------------------
Shares sold 231,893,540 63,370,172 8,343,128 5,581,036
Shares issued in reinvestment of
distributions 6,807,830 1,306,414 705,275 202,236
Shares exchanged among the Funds,
net (13,203,378) (701,535) 406,449 14,888
Shares redeemed (63,915,543) (369,796) (190,355) (9,967)
- -------------------------------------------------------------------------------------------------------
Net increase in shares outstanding 161,582,449 63,605,255 9,264,497 5,788,193
- -------------------------------------------------------------------------------------------------------
Shares outstanding at end of period 225,187,704 63,605,255 15,052,690 5,788,193
=======================================================================================================
</TABLE>
20 1998 ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
Growth & Income Fund Growth Equity Fund International Equity Fund Managed Allocation Fund
- ---------------------------- ---------------------------- ---------------------------- ----------------------------
For the Period For the Period For the Period For the Period
For the July 17, 1997 For the July 17, 1997 For the July 17, 1997 For the July 17, 1997
Year (Commencement Year (Commencement Year (Commencement Year (Commencement
Ended of Operations) Ended of Operations) Ended of Operations) Ended of Operations)
December 31, to December 31, December 31, to December 31, December 31, to December 31, December 31, to December 31,
1998 1997 1998 1997 1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,351,717 $ 396,266 $ 577,489 $ 354,221 $ 972,710 $ 266,299 $ 3,057,237 $ 1,270,524
5,262,170 (37,879) 1,993,400 1,066,329 (3,533,681) (30,660) 925,429 --
31,134,980 1,800,093 55,669,056 518,570 16,761,026 (5,363,133) 17,451,450 20,427
- -----------------------------------------------------------------------------------------------------------------------
37,748,867 2,158,480 58,239,945 1,939,120 14,200,055 (5,127,494) 21,434,116 1,290,951
- -----------------------------------------------------------------------------------------------------------------------
(1,337,813) (396,266) (530,447) (354,221) (936,202) (266,299) (3,754,391) (1,270,524)
-- (2,489) -- (623) (157,715) (97,712) -- --
(434,363) -- (1,784,085) (986,512) -- -- (4,104) --
- -----------------------------------------------------------------------------------------------------------------------
(1,772,176) (398,755) (2,314,532) (1,341,356) (1,093,917) (364,011) (3,758,495) (1,270,524)
- -----------------------------------------------------------------------------------------------------------------------
-- 38,000,000 -- 38,000,000 -- 44,000,000 -- 50,000,000
134,533,838 21,780,739 174,729,292 24,185,187 57,707,599 8,920,825 85,698,266 7,498,848
1,709,177 397,301 2,276,443 1,338,112 1,081,128 364,011 3,631,298 1,265,457
3,567,587 (113,263) 4,689,150 383,490 434,251 (23,111) 293,051 302,891
(4,984,558) (2,595) (5,746,202) (17,113) (1,531,982) (12,395) (3,518,384) (500)
- ----------------------------------------------------------------------------------------------------------------------
134,826,044 60,062,182 175,948,683 63,889,676 57,690,996 53,249,330 86,104,231 59,066,696
- -----------------------------------------------------------------------------------------------------------------------
170,802,735 61,821,907 231,874,096 64,487,440 70,797,134 47,757,825 103,779,852 59,087,123
61,821,907 --
64,487,440 -- 47,757,825 -- 59,087,123 --
- -----------------------------------------------------------------------------------------------------------------------
$232,624,642 $61,821,907 $296,361,536 $64,487,440 $118,554,959 $47,757,825 $162,866,975 $59,087,123
=======================================================================================================================
5,988,332 -- 6,374,505 -- 5,356,336 -- 5,904,827 --
- -----------------------------------------------------------------------------------------------------------------------
11,466,918 5,960,003 15,295,702 6,205,429 5,920,549 5,320,567 7,896,416 5,747,385
138,916 39,864 169,861 133,171 103,161 39,871 324,233 127,521
372,059 37,592 27,698 (2,677) 10,478 29,971
276,826 (11,283)
(503,596) (1,687) (159,159) (1,425) (325,423) (50)
(421,933) (252)
- -----------------------------------------------------------------------------------------------------------------------
11,460,727 5,988,332 15,334,026 6,374,505 5,892,249 5,356,336 7,905,704 5,904,827
- -----------------------------------------------------------------------------------------------------------------------
17,449,059 5,988,332 21,708,531 6,374,505 11,248,585 5,356,336 13,810,531 5,904,827
=======================================================================================================================
See notes to financial statements 1998 ANNUAL REPORT 21
</TABLE>
<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
Year (Commencement Year (Commencement
Ended of Operations) Ended of Operations)
December 31, to December 31, December 31, to December 31,
1998 1997(1) 1998 1997(1)
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SELECTED PER SHARE DATA
Net asset value, beginning of
period $1.00 $1.00 $10.09 $10.00
- -------------------------------------------------------------------------------------------------------
Gain (loss) from investment
operations:
Net investment income 0.05 0.02 0.56 0.27
Net realized and unrealized gain
(loss) on investments -- -- 0.32 0.20
- -------------------------------------------------------------------------------------------------------
Total gain (loss) from investment
operations 0.05 0.02 0.88 0.47
- -------------------------------------------------------------------------------------------------------
Less distributions from:
Net investment income (0.05) (0.02) (0.56) (0.27)
In excess of net investment income -- -- -- --
Net realized gains -- -- (0.11) (0.11)
- -------------------------------------------------------------------------------------------------------
Total distributions (0.05) (0.02) (0.67) (0.38)
- -------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $10.30 $10.09
=======================================================================================================
TOTAL RETURN 5.45% 2.51% 8.94% 4.79%
RATIOS AND SUPPLEMENTAL DATA
Net assets at end of period (in
thousands) $225,187 $63,605 $155,034 $58,403
Ratio of expenses to average net
assets before expense waiver 0.79% 0.36% 0.80% 0.37%
Ratio of expenses to average net
assets after expense waiver 0.29% 0.13% 0.30% 0.14%
Ratio of net investment income to
average net assets 5.28% 2.49% 5.66% 2.72%
Portfolio turnover rate n/a n/a 531.92% 143.61%
(1) The percentages shown for this period are not annualized.
=======================================================================================================
</TABLE>
22 1998 ANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------------------------------------------------
Growth & Income Fund Growth Equity Fund International Equity Fund Managed Allocation Fund
- ---------------------------- ---------------------------- ---------------------------- ----------------------------
For the Period For the Period For the Period For the Period
For the July 17, 1997 For the July 17, 1997 For the July 17, 1997 For the July 17, 1997
Year (Commencement Year (Commencement Year (Commencement Year (Commencement
Ended of Operations) Ended of Operations) Ended of Operations) Ended of Operations)
December 31, to December 31, December 31, to December 31, December 31, to December 31, December 31, to December 31,
1998 1997(1) 1998 1997(1) 1998 1997(1) 1998 1997(1)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <S> <C> <C> <C> <C> <C>
$10.32 $10.00 $10.12 $10.00 $8.92 $10.00 $10.01 $10.00
- -------------------------------------------------------------------------------------------------------------------------
0.10 0.07 0.03 0.06 0.09 0.07 0.34 0.23
3.04 0.32 3.61 0.28 1.63 (1.07) 1.76 0.01
- -------------------------------------------------------------------------------------------------------------------------
3.14 0.39 3.64 0.34 1.72 (1.00) 2.10 0.24
- -------------------------------------------------------------------------------------------------------------------------
(0.10) (0.07) (0.03) (0.06) (0.10) (0.07) (0.32) (0.23)
-- -- -- -- -- (0.01) -- --
(0.03) -- (0.08) (0.16) -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
(0.13) (0.07) (0.11) (0.22) (0.10) (0.08) (0.32) (0.23)
- -------------------------------------------------------------------------------------------------------------------------
$13.33 $10.32 $13.65 $10.12 $10.54 $8.92 $11.79 $10.01
=========================================================================================================================
30.51% 3.96% 35.97% 3.44% 19.27% (10.09)% 21.24% 2.44%
$232,625 $61,822 $296,362 $64,487 $118,555 $47,758 $162,867 $59,087
0.93% 0.43% 0.95% 0.44% 0.99% 0.46% 0.00% 0.00%
0.43% 0.20% 0.45% 0.21% 0.49% 0.23% 0.00% 0.00%
0.97% 0.76% 0.37% 0.68% 1.23% 0.56% 2.80% 2.46%
71.49% 1.46% 49.91% 29.44% 27.20% 4.56% 4.78% 0.00%
========================================================================================================================
See notes to financial statements 1998 ANNUAL REPORT 23
</TABLE>
<PAGE>
TIAA-CREF Mutual Funds
- --------------------------------------------------------------------------------
Notes to Financial Statements December 31, 1998
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 December 31, 1998, TIAA owned 51,877,013 shares of the Money Market Fund with
a value of $51,877,013; 3,546,487 shares of the Bond Plus Fund with a value of
$36,528,820; 3,867,884 shares of the Growth & Income Fund with a value of
$51,588,894; 3,915,637 shares of the Growth Equity Fund with a value of
$53,448,452; 4,476,593 shares of the International Equity Fund with a value of
$47,183,290; and 5,266,926 shares of the Managed Allocation Fund with a value of
$62,097,058.
At December 31, 1998, the Managed Allocation Fund owned 6,163,010 shares in the
Bond Plus Fund, which amounted to 40.94% of the total shares outstanding;
2,886,719 shares in the Growth & Income Fund, which amounted to 16.54% of the
total shares outstanding; 2,906,440 shares in the Growth Equity Fund, which
amounted to 13.39% of the total shares outstanding; 1,805,014 shares in the
International Equity Fund, which amounted to 16.05% of the total shares
outstanding; and 1,840,704 shares in the Money Market Fund, which amounted to
0.82% 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 and premiums on securities purchased are amortized
using the effective yield method. Dividend income is recorded on the ex-dividend
date, except for certain foreign dividends, which are recorded as the Funds are
informed of the ex-dividend date.
24 1998 ANNUAL REPORT
<PAGE>
TIAA-CREF Mutual Funds
- --------------------------------------------------------------------------------
Notes to Financial Statements December 31, 1998 (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 in foreign currencies.
When the contract is closed, payment is received or made and a realized gain or
loss on foreign currency transactions is recognized, equal to the difference
between the cost of the closing transaction and the basis in the contract. A
Fund may also enter into a forward foreign currency contract to offset an
existing contract. Forward foreign currency contracts are entered into directly
with a counterparty and a Fund is exposed to the risk of default of such
counterparty. The maximum potential loss from such risk is the aggregate face
value in U.S. dollars at the time the contract is opened. There is no daily
margin requirement for such contracts.
Securities Purchased on a When-Issued or Delayed Delivery Basis: The Funds may
purchase securities on a when-issued or delayed delivery basis. In addition to
the normal market risks, this exposes the Funds to the risk that the transaction
may not be consummated. The price and interest rate of such securities are fixed
at trade date. For when-issued purchases, a Fund does not earn interest on such
security until settlement date.
Restricted Securities: Restricted securities held by the Funds, if any, may not
be sold except in exempt transactions or in a public offering registered under
the Securities Act of 1933. The risk of investing in such securities is
generally greater than the risk of investing in securities which are widely held
and publicly traded.
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 and tax differences
which will reverse in a subsequent period. Any permanent book and tax basis
differences relating to shareholder distributions will result in
reclassifications to paid in capital.
Income Taxes: As qualified regulated investment companies under Subchapter M of
the Internal Revenue Code, the Funds will not be subject to income taxes to the
extent that they distribute substantially all taxable income each year.
NOTE 3. MANAGEMENT AGREEMENT
Under the terms of an Investment Management Agreement, each Fund pays a 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 ANNUAL REPORT 25
<PAGE>
TIAA-CREF Mutual Funds
- --------------------------------------------------------------------------------
Notes to Financial Statements December 31, 1998 (Concluded)
MANAGEMENT MANAGEMENT FEE
FEE WAIVER AFTER WAIVER
---------- ------ --------------
Money Market Fund 0.79% 0.50% 0.29%
Bond Plus Fund 0.80% 0.50% 0.30%
Growth & Income Fund 0.93% 0.50% 0.43%
Growth Equity Fund 0.95% 0.50% 0.45%
International Equity Fund 0.99% 0.50% 0.49%
Managed Allocation Fund 0.00% 0.00% 0.00%
Advisors will not receive a management fee for its services to the Managed
Allocation Fund. However, shareholders in the Managed Allocation Fund will
indirectly bear their pro rata share of the fees and expenses incurred by the
Funds in which the Managed Allocation Fund invests.
NOTE 4. INVESTMENTS
At December 31, 1998, net unrealized appreciation (depreciation) of portfolio
investments, consisting of gross unrealized appreciation and gross unrealized
depreciation, was as follows:
GROSS UNREALIZED NET UNREALIZED
APPRECIATION DEPRECIATION APPRECIATION
----------- ----------- -----------
Bond Plus Fund $ 2,147,060 $ 131,113 $ 2,015,947
Growth & Income Fund 39,636,503 6,702,443 32,934,060
Growth Equity Fund 64,468,985 8,281,359 56,187,626
International Equity Fund 20,188,433 8,803,533 11,384,900
Managed Allocation Fund 17,471,877 -- 17,471,877
Purchases and sales of portfolio securities, other than short-term money market
instruments, for the Funds other than the Money Market Fund, for the year ended
December 31, 1998, were as follows:
<TABLE>
<CAPTION>
NON- NON-
GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT
PURCHASES PURCHASES SALES SALES
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Bond Plus Fund $178,236,130 $459,112,800 $149,122,783 $390,240,320
Growth & Income Fund 228,000,823 3,208,127 95,734,529 751,849
Growth Equity Fund 247,807,445 810,123 76,114,858 46,790
International Equity Fund 75,180,710 -- 20,005,654 --
Managed Allocation Fund 91,470,045 -- 5,236,082 --
</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 $50 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 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 year ended December 31, 1998, there
were no borrowings under the credit facility.
26 1998 ANNUAL REPORT
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS MONEY MARKET FUND
December 31, 1998 Summary by Industry
--------------------------------------------------------
VALUE %
--------------------------------------------------------
SHORT TERM INVESTMENTS
BANK NOTES $ 2,999,353 1.33%
BANKERS ACCEPTANCES 450,172 0.20
CERTIFICATES OF DEPOSIT 6,499,966 2.89
COMMERCIAL PAPER 167,243,288 74.27
U.S. GOVERNMENT & AGENCIES 35,422,732 15.73
VARIABLE RATE NOTES 11,400,548 5.06
------------ ------
TOTAL SHORT TERM INVESTMENTS
(Cost $224,016,059) 224,016,059 99.48
------------ ------
TOTAL PORTFOLIO
(Cost $224,016,059) 224,016,059 99.48
OTHER ASSETS & LIABILITIES, NET 1,171,239 0.52
------------ ------
NET ASSETS $225,187,298 100.00%
============ ======
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS MONEY MARKET FUND
December 31, 1998
- -------------------------------------------------------------------
PRINCIPAL VALUE
- -------------------------------------------------------------------
SHORT TERM INVESTMENTS -- 99.48%
BANK NOTES -- 1.33%
FIRST NATIONAL BANK
OF CHICAGO
$3,000,000 5.750%, 05/10/99 $ 2,999,353
------------
BANKERS ACCEPTANCES -- 0.20%
CITIBANK NA
276,051 5.600%, 01/07/99 275,793
175,585 5.150%, 02/18/99 174,379
------------
450,172
------------
CERTIFICATES OF DEPOSIT -- 2.89%
CHASE MANHATTAN BANK
6,000,000 5.100%, 01/25/99 6,000,000
500,000 5.745%, 05/10/99 499,966
------------
6,499,966
------------
COMMERCIAL PAPER -- 74.27%
AMERICAN HOME PRODUCTS
7,000,000 5.100%, 02/19/99 6,951,408
ASSOCIATES CORP OF
NORTH AMERICA
2,320,000 5.040%, 01/20/99 2,313,828
2,000,000 5.170%, 02/05/99 1,989,947
BETA FINANCE, INC
2,000,000 ~ 5.250%, 01/15/99 1,995,914
5,000,000 ~ 5.300%, 02/26/99 4,958,778
CAROLINA POWER & LIGHT CO
4,534,000 5.500%, 01/29/99 4,514,604
CATERPILLAR FINANCIAL
SERVICES CORP
2,700,000 5.100%, 01/27/99 2,690,055
3,500,000 5.360%, 02/24/99 3,471,859
CIESCO LP
5,000,000 5.050%, 02/10/99 4,971,944
1,150,000 5.250%, 02/11/99 1,143,123
CIT GROUP HOLDINGS, INC
4,105,000 5.070%, 01/26/99 4,090,546
CITIGROUP
2,000,000 5.200%, 02/01/99 1,991,044
COMMERCIAL CREDIT CO
2,000,000 5.200%, 02/01/99 1,991,044
CORPORATE ASSET FUNDING
CORP, INC
2,100,000 ~ 5.200%, 01/06/99 2,098,483
2,500,000 ~ 5.370%, 01/07/99 2,497,762
2,000,000 ~ 5.300%, 01/27/99 1,992,344
DELAWARE FUNDING CORP
5,000,000 ~ 5.400%, 01/08/99 4,994,750
2,000,000 ~ 5.400%, 01/11/99 1,997,000
DUPONT (E.I.) DE NEMOURS & CO
2,370,000 5.120%, 01/12/99 2,366,292
2,700,000 5.170%, 01/13/99 2,695,347
1,485,000 5.140%, 02/05/99 1,477,578
1998 ANNUAL REPORT 27
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS MONEY MARKET FUND
- -------------------------------------------------------------------
PRINCIPAL VALUE
- -------------------------------------------------------------------
COMMERCIAL PAPER -- (Continued)
EASTMAN KODAK CO
$2,105,000 5.130%, 01/27/99 $ 2,097,200
ENTERPRISE FUNDING CORP
2,320,000 ~ 5.350%, 01/29/99 2,310,346
1,082,000 ~ 5.300%, 02/19/99 1,074,194
970,000 ~ 5.200%, 02/22/99 962,714
FORD MOTOR CREDIT CO
2,000,000 5.140%, 01/21/99 1,994,288
3,395,000 5.460%, 01/27/99 3,381,612
170,000 5.250%, 02/19/99 168,785
GENERAL ELECTRIC CAPITAL CORP
2,000,000 5.320%, 01/12/99 1,996,748
5,000,000 5.320%, 01/19/99 4,986,699
GENERAL MOTORS ACCEPTANCE
CORP
2,950,000 5.150%, 01/29/99 2,938,183
J.P. MORGAN & CO
4,136,000 5.470%, 01/21/99 4,123,431
JOHN DEERE CAPITAL CORP
3,275,000 5.320%, 01/25/99 3,263,384
MAY DEPARTMENT STORES CO
7,000,000 5.225%, 01/08/99 6,992,888
MCCORMICK & CO, INC
7,000,000 5.120%, 01/05/99 6,996,017
MCGRAW-HILL COS, INC
7,000,000 5.200%, 01/29/99 6,971,688
MORGAN STANLEY DEAN WITTER
3,000,000 5.490%, 01/22/99 2,990,392
MOTOROLA CREDIT CORP
1,700,000 4.950%, 02/26/99 1,686,910
MOTOROLA, INC
7,000,000 5.125%, 02/02/99 6,968,111
NATIONAL RURAL UTILITIES
COOP FINANCE
3,700,000 5.070%, 02/22/99 3,672,903
PARK AVENUE RECEIVABLES CORP
1,600,000 ~ 5.320%, 01/21/99 1,595,271
3,000,000 ~ 5.450%, 01/28/99 2,987,737
PENNEY (J.C.) FUNDING CORP
5,706,000 5.020%, 04/19/99 5,620,067
PROCTOR & GAMBLE CO
7,000,000 5.050%, 02/12/99 6,958,758
RESEAU FERRE DE FRANCE
5,000,000 5.050%, 03/02/99 4,957,916
SAINT PAUL COS
5,430,000 ~ 5.300%, 01/22/99 5,413,212
SBC COMMUNICATIONS, INC
2,552,000 5.100%, 01/04/99 2,550,915
SC JOHNSON & SON, INC
1,000,000 ~ 5.100%, 01/20/99 997,308
THE STANLEY WORKS
4,300,000 ~ 5.100%, 02/01/99 4,281,116
XEROX CAPITAL (EUROPE) PLC
3,120,000 5.030%, 01/22/99 3,110,845
------------
167,243,288
------------
U.S. GOVERNMENT & AGENCIES -- 15.73%
FEDERAL HOME LOAN
MORTGAGE CORP
4,100,000 5.000%, 01/15/99 4,092,027
22,400,000 5.010%, 01/15/99 22,356,357
1,625,000 4.940%, 02/26/99 1,612,512
770,000 4.960%, 03/05/99 763,316
4,731,000 4.960%, 03/10/99 4,686,675
1,930,000 4.980%, 03/10/99 1,911,845
------------
35,422,732
------------
VARIABLE RATE NOTES -- 5.06%
FIRST UNION NATIONAL BANK, NC
5,000,000 4.710%, 08/20/99 5,000,000
GOLDMAN SACHS GROUP LP
2,000,000 5.259%, 02/01/99 2,000,119
2,000,000 5.300%, 02/24/99 2,000,359
MERRILL LYNCH & CO, INC
1,000,000 4.930%, 01/14/99 1,000,000
MORGAN STANLEY DEAN WITTER
1,400,000 5.000%, 01/15/99 1,400,070
------------
11,400,548
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $224,016,059) 224,016,059
------------
TOTAL PORTFOLIO
(Cost $224,016,059) $224,016,059
============
- ----------
~ Commerical Paper issued under the private placement exemption under
Section 4(2) of the Securities Act of 1933, as amended.
The cost of investments for federal income tax purposes is substantially
the same as the amount disclosed above.
28 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS BOND PLUS FUND
December 31, 1998 Summary by Industry
- -------------------------------------------------------------------
VALUE %
- -------------------------------------------------------------------
BONDS
CORPORATE BONDS
ASSET BACKED $ 2,502,983 1.61%
CHEMICALS AND ALLIED PRODUCTS 2,260,080 1.46
COMMUNICATIONS 7,288,370 4.70
DEPOSITORY INSTITUTIONS 4,064,990 2.62
EATING AND DRINKING PLACES 2,000,280 1.29
ELECTRIC, GAS, AND SANITARY
SERVICES 4,015,141 2.59
FOOD AND KINDRED PRODUCTS 2,119,820 1.37
GENERAL MERCHANDISE STORES 2,006,620 1.29
HOLDING AND OTHER INVESTMENT
OFFICES 1,964,651 1.27
NATIONAL SECURITY AND
INTERNATIONAL AFFAIRS 1,080,010 0.70
NONDEPOSITORY INSTITUTIONS 5,007,570 3.23
PRINTING AND PUBLISHING 3,049,680 1.97
SECURITY AND COMMODITY
BROKERS 3,035,760 1.96
TRANSPORTATION EQUIPMENT 1,028,750 0.66
------------ ------
TOTAL CORPORATE BONDS
(Cost $40,985,495) 41,424,705 26.72
------------ ------
GOVERNMENT BONDS
AGENCY SECURITIES 16,804,294 10.84%
FOREIGN GOVERNMENT BONDS 1,004,530 0.65
MORTGAGE BACKED SECURITIES 42,452,734 27.38
U.S. TREASURY SECURITIES 49,179,999 31.72
------------ ------
TOTAL GOVERNMENT BONDS
(Cost $107,864,820) 109,441,557 70.59
------------ ------
TOTAL BONDS
(Cost $148,850,315) 150,866,262 97.31
------------ ------
SHORT TERM INVESTMENTS
COMMERCIAL PAPER 22,362,302 14.43
------------ ------
TOTAL SHORT TERM INVESTMENTS
(Cost $22,362,302) 22,362,302 14.43
------------ ------
TOTAL PORTFOLIO
(Cost $171,212,617) 173,228,564 111.74
OTHER ASSETS & LIABILITIES, NET (18,194,849) (11.74)
------------ ------
NET ASSETS $155,033,715 100.00%
============ ======
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS BOND PLUS FUND
December 31, 1998
- -------------------------------------------------------------------
PRINCIPAL RATINGS+ VALUE
- -------------------------------------------------------------------
BONDS -- 97.31%
CORPORATE BONDS -- 26.72%
ASSET BACKED -- 1.61%
COMED TRANSITIONAL
FUNDING TRUST
SERIES 1998-1 (CLASS A5)
$1,500,000 5.440%, 03/25/07 AAA $ 1,497,363
GREEN TREE HOME
EQUITY LOAN TRUST
SERIES 1998-C (CLASS A3)
1,000,000 6.180%, 07/15/29 AAA 1,005,620
------------
2,502,983
------------
CHEMICALS AND ALLIED PRODUCTS -- 1.46%
AMERICAN HOME
PRODUCTS NOTE
2,000,000 7.900%, 02/15/05 A2 2,260,080
------------
COMMUNICATIONS -- 4.70%
BELLSOUTH
TELECOMMUNICATIONS
NOTE
$2,000,000 6.500%, 06/15/05 AAA 2,128,220
U.S. WEST
COMMUNICATIONS
NOTE
1,000,000 5.625%, 11/15/08 A2 1,009,370
MCI WORLDCOM, INC
(SR NOTE)
2,000,000 9.375%, 01/15/04 BAA2 2,072,140
2,000,000 6.400%, 08/15/05 BAA2 2,078,640
------------
7,288,370
------------
+ As provided by Moody's Investors Services (Unaudited)
See notes to financial statements 1998 ANNUAL REPORT 29
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS BOND PLUS FUND
- -------------------------------------------------------------------
PRINCIPAL RATINGS+ VALUE
- -------------------------------------------------------------------
DEPOSITORY INSTITUTIONS -- 2.62%
BANK ONE CORP
(SUB NOTE)
$1,000,000 6.375%, 01/30/09 A1 $ 1,039,490
NATIONSBANK CORP
(SR NOTE)
3,000,000 5.750%, 03/15/01 AA2 3,025,500
------------
4,064,990
------------
EATING AND DRINKING PLACES -- 1.29%
MCDONALD'S CORP
(SR NOTE)
2,000,000 5.350%, 09/15/08 AA2 2,000,280
------------
ELECTRIC, GAS, AND SANITARY
SERVICES -- 2.59%
GEORGIA POWER CO
(SR NOTE)
1,000,000 5.500%, 12/01/05 A2 996,541
U.S.A. WASTE Services,
INC NOTE
3,000,000 6.125%, 07/15/01 BAA3 3,018,600
------------
4,015,141
------------
FOOD AND KINDRED PRODUCTS -- 1.37%
HEINZ (H.J.) & CO DEB
2,000,000 6.375%, 07/15/28 A1 2,119,820
------------
GENERAL MERCHANDISE STORES -- 1.29%
WAL-MART STORES, INC
2,000,000 5.650%, 02/01/10 AA2 2,006,620
------------
HOLDING AND OTHER INVESTMENT
OFFICES -- 1.27%
^ AMERCO, INC NOTE
1,000,000 6.650%, 10/15/99 BA1 1,005,964
^ CRIIMI MAE CMBS CORP
SERIES 1998-1 (CLASS A1)
965,855 5.697%, 10/20/01 AAA 958,687
------------
1,964,651
------------
NATIONAL SECURITY AND INTERNATIONAL
AFFAIRS -- 0.70%
QUEBEC PROVINCE DEB
1,000,000 7.000%, 01/30/07 A2 1,080,010
------------
NONDEPOSITORY INSTITUTIONS -- 3.23%
ASSOCIATES CORP NA
(SR NOTE)
1,000,000 5.750%, 11/01/03 AA3 1,008,970
GENERAL MOTORS
ACCEPTANCE COrp
NOTE
2,000,000 5.480%, 12/16/02 A2 1,996,460
HOUSEHOLD FINANCE
CORP (SR NOTE)
2,000,000 5.875%, 09/25/04 A2 2,002,140
------------
5,007,570
------------
PRINTING AND PUBLISHING -- 1.97%
^ TIME WARNER, INC
(PASS-THRU CERT)
2,000,000 6.100%, 12/30/01 BAA3 2,032,220
TIME WARNER, INC
(GUARANTEE DEB)
1,000,000 6.625%, 05/15/29 BAA3 1,017,460
------------
3,049,680
------------
SECURITY AND COMMODITY
BROKERS -- 1.96%
SALOMON SMITH BARNEY
HOLDINGS
3,000,000 6.250%, 05/15/03 AA3 3,035,760
------------
TRANSPORTATION EQUIPMENT -- 0.66%
LOCKHEED MARTIN CORP
1,000,000 6.850%, 05/15/01 A3 1,028,750
------------
TOTAL CORPORATE BONDS
(Cost $40,985,495) 41,424,705
------------
GOVERNMENT BONDS -- 70.59%
AGENCY SECURITIES -- 10.84%
FEDERAL HOME LOAN
MORTGAGE CORP
(FHLMC)
2,000,000 6.070%, 09/21/00 2,035,320
1,700,000 5.125%, 10/15/08 1,683,799
FEDERAL NATIONAL
MORTGAGE ASSOCIATION
(FNMA)
1,500,000 6.375%, 01/16/02 1,555,545
4,000,000 4.750%, 11/14/03 3,948,760
STUDENT LOAN
MARKETING
ASSOCIATION
(SLMA)
6,500,000 5.570%, 03/17/00 6,543,680
TENNESSEE VALLEY
AUTHORITY DEB
1,000,000 6.250%, 12/15/17 1,037,190
------------
16,804,294
------------
FOREIGN GOVERNMENT BONDS -- 0.65%
CANADA GOVERNMENT
1,000,000 5.250%, 11/05/08 AA1 1,004,530
------------
MORTGAGE BACKED SECURITIES -- 27.38%
FEDERAL HOME LOAN
MORTGAGE CORP
(FHLMC)
1,495,255 7.000%, 09/01/10 1,527,492
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION (FNMA)
1,843,039 6.000%, 12/01/08 1,854,300
+ As provided by Moody's Investors Services (Unaudited)
30 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS BOND PLUS FUND
- -------------------------------------------------------------------
PRINCIPAL VALUE
- -------------------------------------------------------------------
MORTGAGE BACKED SECURITIES -- (Continued)
FEDERAL NATIONAL
MORTGAGE
ASSOCIATION (FNMA)
$1,234,958 6.500%, 03/01/13 $ 1,252,766
1,669,462 8.000%, 03/01/23 1,733,636
712,185 9.000%, 11/01/25 753,798
714,531 9.000%, 10/01/26 755,945
1,694,801 8.500%, 02/01/28 1,774,762
248,861 6.000%, 10/01/28 245,593
2,250,000 @ 6.000%, 02/25/29 2,220,458
13,500,000 @ 6.500%, 02/25/29 13,588,560
1,500,000 @ 7.000%, 02/25/29 1,530,000
GOVERNMENT NATIONAL
MORTGAGE
ASSOCIATION (GNMA)
462,759 6.500%, 09/15/23 467,817
1,712,543 7.500%, 11/15/23 1,767,361
916,328 7.000%, 04/15/28 938,027
1,367,673 7.000%, 05/15/28 1,400,060
957,775 7.000%, 07/15/28 979,919
714,743 7.500%, 08/15/28 737,523
5,981,158 7.000%, 10/15/28 6,119,442
2,777,500 6.500%, 12/15/28 2,805,275
------------
42,452,734
------------
U.S. TREASURY SECURITIES -- 31.72%
U.S. TREASURY BONDS
2,000,000 14.000%, 11/15/11 3,168,440
1,700,000 12.000%, 08/15/13 2,595,424
1,100,000 8.125%, 08/15/21 1,486,375
5,500,000 8.000%, 11/15/21 7,353,665
5,000,000 6.375%, 08/15/27 5,746,850
U.S. TREASURY NOTES
3,000,000 5.750%, 11/15/00 3,060,820
3,500,000 5.625%, 02/28/01 3,570,000
4,000,000 7.500%, 11/15/01 4,301,240
4,500,000 5.750%, 10/31/02 4,661,730
1,000,000 4.250%, 11/15/03 987,190
1,000,000 6.500%, 05/15/05 1,095,940
5,500,000 7.000%, 07/15/06 6,262,245
3,500,000 6.500%, 10/15/06 3,882,270
1,000,000 4.750%, 11/15/08 1,007,810
------------
49,179,999
------------
TOTAL GOVERNMENT BONDS
(Cost $107,864,820) 109,441,557
------------
TOTAL BONDS
(Cost $148,850,315) 150,866,262
------------
SHORT TERM INVESTMENTS -- 14.43%
COMMERCIAL PAPER -- 14.43%
CIESCO LP
4,893,000 5.250%, 01/04/99 4,890,859
COX COMMUNICATIONS,
INC
7,500,000 *~5.880%, 01/11/99 7,487,753
TEXAS UTILITIES CO
10,000,000 *~5.870%, 01/11/99 9,983,690
------------
22,362,302
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $22,362,302) 22,362,302
------------
TOTAL PORTFOLIO
(Cost $171,212,617) $173,228,564
============
- ----------
~ Commercial Paper issued under the private placement exemption under
Section 4(2) of the Securities Act of 1933, as amended.
^ 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 December 31, 1998, the
value of these securities amounted to $3,996,871 or 2.58% 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 were purchased on a delayed delivery basis.
- ----------
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 20.68%
BAA 6.77%
BA 0.67%
U.S. Government obligations represent 71.88% of the long-term debt
portfolio value and are not reflected in the above ratings.
The cost of investments for federal income tax purposes is substantially
the same as the amount disclosed above.
See notes to financial statements 1998 ANNUAL REPORT 31
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH & INCOME FUND
December 31, 1998 Summary by Industry
- -------------------------------------------------------------------
VALUE %
- -------------------------------------------------------------------
PREFERRED STOCK
RUBBER AND MISCELLANEOUS
PLASTIC PRODUCTS $ 12,294 0.00%
------------ ------
TOTAL PREFERRED STOCK
(Cost $10,534) 12,294 0.00
------------ ------
COMMON STOCK
AGRICULTURAL
PRODUCTION-CROPS 140,400 0.06
AMUSEMENT AND RECREATION
SERVICES 34,512 0.01
APPAREL AND ACCESSORY STORES 1,078,147 0.46
APPAREL AND OTHER TEXTILE
PRODUCTS 158,918 0.07
AUTO REPAIR, SERVICES AND PARKING 32,210 0.01
AUTOMOTIVE DEALERS AND
SERVICE STATIONS 39,212 0.02
BUILDING MATERIALS AND
GARDEN SUPPLIES 2,431,810 1.05
BUSINESS SERVICES 15,002,190 6.45
CHEMICALS AND ALLIED PRODUCTS 32,816,492 14.11
COMMUNICATIONS 30,249,933 13.00
DEPOSITORY INSTITUTIONS 13,000,436 5.59
EATING AND DRINKING PLACES 1,027,532 0.44
ELECTRIC, GAS, AND SANITARY
SERVICES 4,705,182 2.02
ELECTRONIC AND OTHER ELECTRIC
EQUIPMENT 17,777,802 7.64
ENGINEERING AND MANAGEMENT
SERVICES 46,218 0.02
FABRICATED METAL PRODUCTS 1,546,326 0.66
FOOD AND KINDRED PRODUCTS 9,621,640 4.14
FOOD STORES 2,529,994 1.09
FORESTRY 14,287 0.01
FURNITURE AND HOME
FURNISHINGS STORES 150,281 0.06
GENERAL BUILDING CONTRACTORS 60,105 0.03
GENERAL MERCHANDISE STORES 6,872,815 2.95
HEALTH SERVICES 1,363,772 0.59
HEAVY CONSTRUCTION, EXCEPT
BUILDING 39,368 0.02
HOLDING AND OTHER
INVESTMENT OFFICES 16,652 0.01
HOTELS AND OTHER LODGING PLACES 163,044 0.07
INDUSTRIAL MACHINERY AND
EQUIPMENT 18,721,285 8.05
INSTRUMENTS AND RELATED
PRODUCTS 5,656,955 2.43
INSURANCE AGENTS, BROKERS
AND SERVICE 96,421 0.04
INSURANCE CARRIERS 15,621,151 6.72
LEATHER AND LEATHER PRODUCTS 2,625 0.00
LOCAL AND INTERURBAN
PASSENGER TRANSIT 346,150 0.15
LUMBER AND WOOD PRODUCTS 131,911 0.06
METAL MINING 250,349 0.11
MISCELLANEOUS MANUFACTURING
INDUSTRIES 91,230 0.04
MISCELLANEOUS RETAIL 858,728 0.37
MOTION PICTURES 1,460,662 0.63
NONDEPOSITORY INSTITUTIONS 6,722,131 2.89
OIL AND GAS EXTRACTION 1,813,429 0.78
PAPER AND ALLIED PRODUCTS 2,105,312 0.91
PERSONAL SERVICES 141,900 0.06
PETROLEUM AND COAL PRODUCTS 10,959,408 4.71
PRIMARY METAL INDUSTRIES 446,682 0.19
PRINTING AND PUBLISHING 3,963,333 1.70
RAILROAD TRANSPORTATION 654,937 0.28
RUBBER AND MISCELLANEOUS
PLASTIC PRODUCTS 1,729,200 0.74
SECURITY AND COMMODITY
BROKERS 2,056,850 0.88
STONE, CLAY, AND GLASS PRODUCTS 297,371 0.13
TEXTILE MILL PRODUCTS 10,236 0.00
TOBACCO PRODUCTS 2,241,400 0.96
TRANSPORTATION BY AIR 1,421,079 0.61
TRANSPORTATION EQUIPMENT 7,552,218 3.25
WATER TRANSPORTATION 81,600 0.04
WHOLESALE TRADE-DURABLE
GOODS 948,686 0.41
WHOLESALE TRADE-NONDURABLE
GOODS 2,938,263 1.26
------------ ------
TOTAL COMMON STOCK
(Cost $197,308,480) 230,240,780 98.98
------------ ------
SHORT TERM INVESTMENT
U.S. GOVERNMENT AGENCy 2,223,212 0.96
------------ ------
TOTAL SHORT TERM INVESTMENT
(Cost $2,223,212) 2,223,212 0.96
------------ ------
TOTAL PORTFOLIO
(Cost $199,542,226) 232,476,286 99.94
OTHER ASSETS & LIABILITIES, NET 148,356 0.06
------------ ------
NET ASSETS $232,624,642 100.00%
============ ======
32 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH & INCOME FUND
December 31, 1998
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
PREFERRED STOCK -- 0.00%
RUBBER AND MISCELLANEOUS
PLASTIC PRODUCTS -- 0.00%
237 SEALED AIR CORP (CLASS A) $ 12,294
------------
TOTAL PREFERRED STOCK
(Cost $10,534) 12,294
------------
COMMON STOCK -- 98.98%
AGRICULTURAL PRODUCTION--CROPS -- 0.06%
5,200 PIONEER-HI-BRED
INTERNATIONAL, INC 140,400
------------
AMUSEMENT AND RECREATION
SERVICES -- 0.01%
2,200* HARRAH'S ENTERTAINMENT,
INC 34,512
------------
APPAREL AND ACCESSORY STORES -- 0.46%
1,634 *ABERCROMBIE & FITCH CO
(CLASS A) 115,605
700 *CHARMING SHOPPES, INC 3,018
13,142 GAP, INC 739,237
1,000 NORDSTROM, INC 34,687
6,400 TJX COS, INC 185,600
------------
1,078,147
------------
APPAREL AND OTHER TEXTILE PRODUCTS -- 0.07%
1,200 *FRUIT OF THE LOOM, INC
(CLASS A) 16,575
500 LIZ CLAIBORNE, INC 15,781
2,700 VF CORP 126,562
------------
158,918
------------
AUTO REPAIR, SERVICES AND PARKING -- 0.01%
116 MIDAS, INC 3,610
1,100 RYDER SYSTEM, INC 28,600
------------
32,210
------------
AUTOMOTIVE DEALERS AND SERVICE
STATIONS -- 0.02%
1,000 *AUTOZONE, INC 32,937
400 PEP BOYS MANNY, MOE,
& JACK CO 6,275
------------
39,212
------------
BUILDING MATERIALS AND GARDEN
SUPPLIES -- 1.05%
30,625 HOME DEPOT, INC 1,873,867
10,900 LOWES COS, INC 557,943
------------
2,431,810
------------
BUSINESS SERVICES -- 6.45%
35,000 *24/7 MEDIA, INC 980,000
500 ADOBE SYSTEMS, INC 23,375
21,650 *ASCEND COMMUNICATIONS,
INC 1,423,487
1,000 AUTODESK, INC 42,687
2,000 AUTOMATIC DATA PROCESSING, INC 160,375
2,200 *BMC SOFTWARE, INC 98,037
600 *CERIDIAN CORP 41,887
100 *CHOICEPOINT, INC 6,450
16,550 COMPUTER ASSOCIATES
INTERNATIONAL, INC 705,443
2,500 *COMPUTER SCIENCES CORP 161,093
1,000 ELECTRONIC DATA SYSTEMS CORP 50,250
4,000 EQUIFAX, INC 136,750
15,100 FIRST DATA CORP 478,481
16,600 HBO & CO 476,212
2,700 IMS HEALTH, INC 203,681
300 *INTERGRAPH CORP 1,725
3,570 INTERPUBLIC GROUP OF COS, INC 284,707
52,820 *MICROSOFT CORP 7,325,473
900 NIELSEN MEDIA RESEARCH 16,200
2,400 *NOVELL, INC 43,500
233 OMNICOM GROUP, INC 13,514
24,950 *ORACLE CORP 1,075,968
1,800 *PARAMETRIC TECHNOLOGY CORP 29,475
3,400 PAYCHEX, INC 174,887
280 *SAFETY-KLEEN CORP 3,955
200 SHARED MEDICAL SYSTEMS CORP 9,975
5,400 *SUN MICROSYSTEMS, INC 462,375
17,675 *YOUNG & RUBICAM, INC 572,228
------------
15,002,190
------------
CHEMICALS AND ALLIED PRODUCTS -- 14.11%
27,461 ABBOTT LABORATORIES CO 1,345,589
6,200 AIR PRODUCTS & CHEMICALS, INC 248,000
1,100 ALBERTO CULVER CO (CLASS B) 29,356
20 *ALLERGAN SPECIALTY
THERAPEUTICS, INC (CLASS A) 186
1,100 ALLERGAN, INC 71,225
600 *ALZA CORP 31,350
45,291 AMERICAN HOME PRODUCTS
CORP 2,550,449
9,800 *AMGEN, INC 1,024,712
1,800 AVON PRODUCTS, INC 79,650
23,365 BRISTOL MYERS SQUIBB CO 3,126,529
1,300 CLOROX CO 151,856
13,591 COLGATE PALMOLIVE CO 1,262,264
30 *CRESCENDO PHARMACEUTICALS
CORP 408
1,600 DOW CHEMICAL CO 145,500
13,200 DU PONT (E.I.) DE NEMOURS & CO 700,425
500 EASTMAN CHEMICAL CO 22,375
2,200 ECOLAB, INC 79,612
900 *FMC CORP 50,400
500 *GRACE W.R. & CO 7,843
400 GREAT LAKES CHEMICAL CORP 16,000
See notes to financial statements 1998 ANNUAL REPORT 33
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH & INCOME FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
CHEMICALS AND ALLIED PRODUCTS -- (Continued)
2,400 HERCULES, INC $ 65,700
2,000 INTERNATIONAL FLAVORS &
FRAGRANCES, INC 88,375
15,900 JOHNSON & JOHNSON CO 1,333,612
22,000 LILLY (ELI) & CO 1,955,250
500 MALLINCKRODT, INC 15,406
33,224 MERCK & CO, INC 4,906,769
5,800 MONSANTO CO 275,500
2,500 MORTON INTERNATIONAL, INC 61,250
500 NALCO CHEMICAL CORP 15,500
100 *OCTEL CORP 1,387
31,824 PFIZER, INC 3,991,923
8,100 PHARMACIA & UPJOHN, INC 458,662
3,700 PPG INDUSTRIES, INC 215,525
5,300 PRAXAIR, INC 186,825
37,591 PROCTER & GAMBLE CO 3,432,528
27,921 ROHM & HAAS CO 841,120
30,174 SCHERING-PLOUGH CORP 1,667,113
1,200 SHERWIN-WILLIAMS CO 35,250
700 SIGMA ALDRICH CORP 20,562
2,100 UNION CARBIDE CORP 89,250
80,000 USEC, INC 1,110,000
14,700 WARNER-LAMBERT CO 1,105,256
------------
32,816,492
------------
COMMUNICATIONS -- 13.00%
10,585 *AIRTOUCH COMMUNICATIONS,
INC 763,443
652 *ALCATEL S.A. ADR 15,933
10,200 ALLTEL CORP 610,087
16,500 AMERITECH CORP 1,045,687
57,396 AT & T CORP 4,319,049
30,208 BELL ATLANTIC CORP 1,601,024
29,600 BELLSOUTH CORP 1,476,300
4,400 CBS CORP 144,100
21,574 *CHANCELLOR MEDIA CORP
(CLASS A) 1,032,855
24,646 *CLEAR CHANNEL
COMMUNICATIONS, INC 1,343,207
6,900 COMCAST CORP (CLASS A) SPECIAL 404,943
31,892 *ERICSSON TELEFON (LM)
SERIES B ADR 763,414
1,100 FRONTIER CORP 37,400
16,700 GTE CORP 1,085,500
22,620 *INFINITY BROADCASTING CORP
(CLASS A) 619,222
33,296 LUCENT TECHNOLOGIES, INC 3,662,560
40,896 *MCI WORLDCOM, INC 2,934,288
7,600 *MEDIA ONE GROUP, INC 357,200
1,200 *NEXTEL COMMUNICATIONS, INC
(CLASS A) 28,350
150,000 *OMNIPOINT CORP 1,396,875
58,794 SBC COMMUNICATIONS, INC 3,152,828
3,000 SPRINT CORP (FON GROUP) 252,375
1,500 *SPRINT CORP (PCS GROUP) 34,687
6,927 *TELE-COMMUNICATIONS, INC
(CLASS A) 383,149
3,346 *TELECOM-TCI VENTURES GROUP
(CLASS A) 78,840
12,514 U.S. WEST, INC 808,717
7,100 *VIACOM, INC (CLASS B) 525,400
60,000 *VIATEL, INC 1,372,500
------------
30,249,933
------------
DEPOSITORY INSTITUTIONS -- 5.59%
5,400 BANK OF NEW YORK CO, INC 217,350
28,434 BANK ONE CORP 1,451,911
41,892 BANKAMERICA CORP 2,518,756
3,400 BANKBOSTON CORP 132,387
500 BANKERS TRUST CORP 42,718
1,100 *BB&T CORP 44,343
15,000 CHASE MANHATTAN CORP 1,020,937
2,950 COMERICA, INC 201,153
3,050 FIFTH THIRD BANCORP 217,503
14,479 FIRST UNION CORP 880,504
9,700 FLEET FINANCIAL GROUP, INC 433,468
1,800 *GOLDEN WEST FINANCIAL CORP 165,037
4,200 HUNTINGTON BANCSHARES, INC 126,262
15,100 KEYCORP 483,200
12,275 MBNA CORP 306,107
1,800 MELLON BANK CORP 123,750
6,000 MERCANTILE BANCORP, INC 276,750
3,500 MORGAN (J.P.) & CO, INC 367,718
4,900 NATIONAL CITY CORP 355,250
11,900 PNC BANK CORP 644,087
4,650 PROVIDIAN FINANCIAL CORP 348,750
2,500 REPUBLIC NEW YORK CORP 113,906
3,700 SUMMIT BANCORP 161,643
2,200 SUNTRUST BANKS, INC 168,300
4,965 U.S. BANCORP 176,257
5,000 *UNION PLANTERS CORP 226,562
1,100 WACHOVIA CORP 96,181
5,530 WASHINGTON MUTUAL, INC 211,176
37,270 WELLS FARGO CO 1,488,470
------------
13,000,436
------------
EATING AND DRINKING PLACES -- 0.44%
2,300 DARDEN RESTAURANTS, INC 41,400
1,800 MARRIOTT INTERNATIONAL
(CLASS A) 52,200
11,164 MCDONALD'S CORP 855,441
225 *SODEXHO MARRIOTT
SERVICES, INC 6,229
1,050 *TRICON GLOBAL
RESTAURANTS, INC 52,631
900 WENDYS INTERNATIONAL, INC 19,631
------------
1,027,532
------------
34 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH & INCOME FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
ELECTRIC, GAS, AND SANITARY
SERVICES -- 2.02%
4,600 AMEREN CORP $ 196,362
6,500 AMERICAN ELECTRIC POWER
CO, INC 305,906
3,200 BALTIMORE GAS & ELECTRIC CO 98,800
3,700 BROWNING FERRIS INDUSTRIES, INC 105,218
1,000 CAROLINA POWER & LIGHT CO 47,062
4,900 CENTRAL & SOUTH WEST CORP 134,443
5,600 CINERGY CORP 192,500
5,400 COASTAL CORP 188,662
1,700 COLUMBIA ENERGY GROUP 98,175
1,600 CONSOLIDATED EDISON CO
OF N.Y., INC 84,600
2,500 CONSOLIDATED NATURAL GAS CO 135,000
1,300 DOMINION RESOURCES, INC 60,775
5,100 DTE ENERGY CO 218,662
2,500 DUKE ENERGY CORP 160,156
100 EASTERN ENTERPRISES CO 4,375
7,500 EDISON INTERNATIONAL CO 209,062
2,600 ENRON CORP 148,362
4,300 ENTERGY CORP 133,837
8,000 FIRSTENERGY CORP 260,500
1,755 FPL GROUP, INC 108,151
4,200 GPU, INC 185,587
1,710 HOUSTON INDUSTRIES, INC 54,933
4,354 *NIAGARA MOHAWK POWER CORP 70,208
400 NICOR, INC 16,900
5,300 NORTHERN STATES POWER CO 147,075
200 ONEOK, INC 7,225
2,000 PACIFICORP 42,125
4,900 PECO ENERGY CO 203,962
200 PEOPLES ENERGY CORP 7,975
2,800 PG&E CORP 88,200
2,647 PP&L RESOURCES, INC 73,785
5,100 PUBLIC SERVICE ENTERPRISE
GROUP, INC 204,000
4,102 SEMPRA ENERGY 104,088
600 SONAT, INC 16,237
4,700 SOUTHERN CO 136,593
1,612 TEXAS UTILITIES CO 75,260
1,500 UNICOM CORP 57,843
5,447 WASTE MANAGEMENT, INC 253,966
2,200 WILLIAMS COS, INC 68,612
------------
4,705,182
------------
ELECTRONIC AND OTHER ELECTRIC
EQUIPMENT -- 7.64%
1,000 *ADVANCED MICRO DEVICES, INC 28,937
500 AEROQUIP-VICKERS, INC 14,968
3,600 ALLEGHENY TELEDYNE, INC 73,575
1,308 AMP, INC 68,097
1,500 *ANDREW CORP 24,750
333 *COMMSCOPE, INC 5,598
16,280 COOPER INDUSTRIES, INC 776,352
5,200 EMERSON ELECTRIC CO 314,600
69,504 GENERAL ELECTRIC CO 7,093,752
3,300 *GENERAL INSTRUMENT CORP 111,993
250 *GENERAL SEMICONDUCTOR, INC 2,046
1,700 HARRIS CORP 62,262
38,695 INTEL CORP 4,587,775
3,100 *LSI LOGIC CORP 49,987
700 MAYTAG CO 43,575
2,400 *MICRON TECHNOLOGY, INC 121,350
5,900 MOTOROLA, INC 360,268
1,000 *NATIONAL SEMICONDUCTOR
CORP 13,500
600 NATIONAL SERVICE INDUSTRIES,
INC 22,800
20,800 *NEWBRIDGE NETWORKS CORP 631,800
15,083 NOKIA OYJ ADR 1,816,558
10,040 NORTHERN
TELECOMMUNICATIONS LTD (U.S.) 503,255
1,800 RAYCHEM CORP 58,162
500 SCIENTIFIC-ATLANTA, INC 11,406
3,900 *TELLABS, INC 267,393
6,700 TEXAS INSTRUMENTS, INC 573,268
1,000 THOMAS & BETTS CORP 43,312
1,742 WHIRLPOOL CORP 96,463
------------
17,777,802
------------
ENGINEERING AND MANAGEMENT
SERVICES -- 0.02%
1,200 DUN & BRADSTREET CORP 37,875
300 EG & G, INC 8,343
------------
46,218
------------
FABRICATED METAL PRODUCTS -- 0.66%
200 BALL CORP 9,150
450 CRANE CO 13,584
900 CROWN CORK & SEAL CO, INC 27,731
18,900 GILLETTE CO 913,106
8,600 MASCO CORP 247,250
2,850 PARKER-HANNIFIN CORP 93,337
3,500 ROCKWELL INTERNATIONAL
CORP 169,968
400 SNAP-ON, INC 13,925
2,100 STANLEY WORKS CO 58,275
------------
1,546,326
------------
FOOD AND KINDRED PRODUCTS -- 4.14%
70 *AGRIBRANDS INTERNATIONAL, INC 2,100
8,300 ANHEUSER BUSCH COS, INC 544,687
20,179 ARCHER DANIELS MIDLAND CO 346,826
5,800 BESTFOODS, INC 308,850
500 BROWN FORMAN, INC (CLASS B) 37,843
4,600 CAMPBELL SOUP CO 253,000
40,126 COCA COLA CO 2,683,426
8,500 COCA COLA ENTERPRISES, INC 303,875
See notes to financial statements 1998 ANNUAL REPORT 35
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH & INCOME FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
FOOD AND KINDRED PRODUCTS -- (Continued)
9,600 CONAGRA, INC $ 302,400
300 COORS (ADOLPH) CO (CLASS B) 16,931
250 CORN PRODUCTS
INTERNATIONAL, INC 7,593
5,300 GENERAL MILLS, INC 412,075
4,300 HEINZ (H.J.) CO 243,487
1,000 HERSHEY FOODS CORP 62,187
2,800 KELLOGG CO 95,550
45,532 PEPSICO, INC 1,863,966
4,000 QUAKER OATS CO 238,000
45,800 RALSTON PURINA CO 1,482,775
6,600 SARA LEE CORP 186,037
3,500 SEAGRAMS CO LTD (U.S.) 133,000
320 *VLASIC FOODS
INTERNATIONAL, INC 7,620
700 WHITMAN CORP 17,762
800 WRIGLEY (WM) JR CO 71,650
------------
9,621,640
------------
FOOD STORES -- 1.09%
4,200 ALBERTSONS, INC 267,487
4,700 AMERICAN STORES CO 173,606
300 GREAT ATLANTIC & PACIFIC
TEA CO, INC 8,887
7,500 *KROGER CO 453,750
25,951 *SAFEWAY, INC 1,581,389
1,000 WINN DIXIE STORES, INC 44,875
------------
2,529,994
------------
FORESTRY -- 0.01%
600 GEORGIA-PACIFIC CORP
(TIMBER GROUP) 14,287
------------
FURNITURE AND HOMEFURNISHINGS
STORES -- 0.06%
700 CIRCUIT CITY STORES-CIRCUIT
CITY GROUP 34,956
2,800 TANDY CORP 115,325
------------
150,281
------------
GENERAL BUILDING CONTRACTORS -- 0.03%
700 CENTEX CORP 31,543
800 KAUFMAN & BROAD HOME CORP 23,000
200 PULTE CORP 5,562
------------
60,105
------------
GENERAL MERCHANDISE STORES -- 2.95%
1,400 *COSTCO COS, INC 101,062
21,920 DAYTON HUDSON CORP 1,189,160
2,200 DILLARDS, INC (CLASS A) 62,425
3,000 *FEDERATED DEPARTMENT
STORES, INC 130,687
500 HARCOURT GENERAL, INC 26,593
16,700 *K MART CORP 255,718
3,000 MAY DEPARTMENT STORES CO 181,125
1,700 PENNEY (J.C.) CO, INC 79,687
15,500 SEARS ROEBUCK & CO 658,750
900 *VENATOR GROUP, INC 5,793
51,350 WAL-MART STORES, INC 4,181,815
------------
6,872,815
------------
HEALTH SERVICES -- 0.59%
700 *BEVERLY ENTERPRISES, INC 4,725
6,100 COLUMBIA/HCA HEALTHCARE
CORP 150,975
1,000 *HCR MANOR CARE 29,375
5,616 *HEALTHSOUTH CORP 86,697
41,600 *TENET HEALTHCARE CORP 1,092,000
------------
1,363,772
------------
HEAVY CONSTRUCTION, EXCEPT
BUILDING -- 0.02%
600 FLUOR CORP 25,537
300 FOSTER WHEELER CORP 3,956
400 MCDERMOTT INTERNATIONAL,
INC 9,875
------------
39,368
------------
HOLDING AND OTHER INVESTMENT
OFFICES -- 0.01%
734 STARWOOD HOTELS &
RESORTS TRUST 16,652
------------
16,652
------------
HOTELS AND OTHER LODGING PLACES -- 0.07%
5,443 *CENDANT CORP 103,757
3,100 HILTON HOTELS CORP 59,287
------------
163,044
------------
INDUSTRIAL MACHINERY AND
EQUIPMENT -- 8.05%
33,555 *3COM CORP 1,503,683
4,100 *APPLE COMPUTER, INC 167,843
6,100 *APPLIED MATERIALS, INC 260,393
5,840 BAKER HUGHES, INC 103,295
600 BLACK & DECKER CORP 33,637
700 BRUNSWICK CORP 17,325
1,100 *CABLETRON SYSTEMS, INC 9,212
500 CASE CORP 10,906
2,600 CATERPILLAR, INC 119,600
25,850 *CISCO SYSTEMS, INC 2,399,203
21,108 COMPAQ COMPUTER CORP 885,216
300 CUMMINS ENGINE CO, INC 10,650
300 *DATA GENERAL CORP 4,931
4,700 DEERE & CO 155,687
36 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH & INCOME FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
INDUSTRIAL MACHINERY AND
EQUIPMENT -- (Continued)
34,990 *DELL COMPUTER CORP $ 2,560,830
1,600 DOVER CORP 58,600
9,000 *EMC CORP 765,000
300 HARNISCHFEGER INDUSTRIES, INC 3,056
17,076 HEWLETT-PACKARD CO 1,166,504
350 HUSSMANN INTERNATIONAL, INC 6,781
2,350 INGERSOLL-RAND CO 110,303
22,760 INTERNATIONAL BUSINESS
MACHINES CORP 4,204,910
600 MILACRON, INC 11,550
2,900 MINNESOTA MINING &
MANUFACTURING CO 206,262
100 NACCO INDUSTRIES, INC (CLASS A) 9,200
900 PALL CORP 22,781
2,000 PITNEY BOWES, INC 132,125
8,600 *SEAGATE TECHNOLOGY, INC 260,150
6,400 *SILICON GRAPHICS, INC 82,400
3,700 TENNECO, INC 126,031
900 TIMKEN CO 16,987
43,051 TYCO INTERNATIONAL LTD 3,247,659
1,200 *UNISYS CORP 41,325
400 *UNOVA, INC 7,250
------------
18,721,285
------------
INSTRUMENTS AND RELATED PRODUCTS -- 2.43%
900 BARD (C.R.), INC 44,550
1,400 BAUSCH & LOMB, INC 84,000
1,900 BAXTER INTERNATIONAL, INC 122,193
1,600 BECTON DICKINSON & CO 68,300
800 BIOMET, INC 32,200
6,600 *BOSTON SCIENTIFIC CORP 176,962
8,600 EASTMAN KODAK CO 619,200
3,300 GUIDANT CORP 363,825
3,300 HONEYWELL, INC 248,531
600 JOHNSON CONTROLS, INC 35,400
10,800 MEDTRONIC, INC 801,900
300 MILLIPORE CORP 8,531
300 PERKIN-ELMER CORP 29,268
900 POLAROID CORP 16,818
318 RAYTHEON CO (CLASS A) 16,436
4,891 RAYTHEON CO (CLASS B) 260,445
1,800 *ST. JUDE MEDICAL, INC 49,837
300 TEKTRONIX, INC 9,018
2,100 THE SWATCH GROUP AG. (BR) 1,299,616
1,000 *THERMO ELECTRON CORP 16,937
11,466 XEROX CORP 1,352,988
------------
5,656,955
------------
INSURANCE AGENTS, BROKERS AND
SERVICE -- 0.04%
1,650 MARSH & MCLENNAN COS, INC 96,421
------------
INSURANCE CARRIERS -- 6.72%
1,000 AETNA, INC 78,625
37,112 ALLSTATE CORP 1,433,451
1,700 AMERICAN GENERAL CORP 132,600
37,492 AMERICAN INTERNATIONAL
GROUP, INC 3,622,664
1,100 AON CORP 60,912
63 *BERKSHIRE HATHAWAY, INC
(CLASS B) 148,050
105,800 CAPITAL RE CORP 2,122,612
1,200 CHUBB CORP 77,850
5,005 CIGNA CORP 386,949
1,000 CINCINNATI FINANCIAL CORP 36,625
48,606 CITIGROUP, INC 2,405,997
7,424 CONSECO, INC 226,896
16,740 EXEL LTD (CLASS A) 1,255,500
1,600 HARTFORD FINANCIAL
SERVICES GROUP, INC 87,800
1,100 *HUMANA, INC 19,593
1,450 JEFFERSON-PILOT CORP 108,750
1,200 LINCOLN NATIONAL CORP 98,175
4,500 LOEWS CORP 442,125
600 MBIA, INC 39,337
2,900 MGIC INVESTMENT CORP 115,456
1,400 PROGRESSIVE CORP 237,125
4,500 PROVIDENT COS, INC 186,750
900 SAFECO CORP 38,643
1,650 ST. PAUL COS, INC 57,337
2,350 SUNAMERICA, INC 190,643
1,000 TORCHMARK CORP 35,312
500 TRANSAMERICA CORP 57,750
40,600 UNITED HEALTHCARE CORP 1,748,337
2,900 UNUM CORP 169,287
------------
15,621,151
------------
LEATHER AND LEATHER PRODUCTS -- 0.00%
300 STRIDE RITE CORP 2,625
------------
LOCAL AND INTERURBAN PASSENGER
TRANSIT -- 0.15%
34,400 LAIDLAW, INC 346,150
------------
LUMBER AND WOOD PRODUCTS -- 0.06%
600 GEORGIA-PACIFIC CORP
(PACKAGING GROUP) 35,137
1,400 LOUISIANA PACIFIC CORP 25,637
1,400 WEYERHAEUSER CO 71,137
------------
131,911
------------
METAL MINING -- 0.11%
2,600 BARRICK GOLD CORP 50,700
1,600 BATTLE MOUNTAIN GOLD CO 6,600
600 CYPRUS AMAX MINERALS CO 6,000
1,000* ECHO BAY MINES LTD (U.S.) 1,750
See notes to financial statements 1998 ANNUAL REPORT 37
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH & INCOME FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
METAL MINING -- (Continued)
4,300 FREEPORT-MCMORAN COPPER
& GOLD, INC (CLASS B) $ 44,881
1,000 HOMESTAKE MINING CO 9,187
2,800 INCO LTD CO (U.S.) 29,575
1,700 NEWMONT MINING CORP 30,706
400 PHELPS DODGE CORP 20,350
4,400 PLACER DOME, INC 50,600
------------
250,349
------------
MISCELLANEOUS MANUFACTURING
INDUSTRIES -- 0.04%
900 HASBRO, INC 32,512
500 JOSTENS, INC 13,093
2,000 MATTEL, INC 45,625
------------
91,230
------------
MISCELLANEOUS RETAIL -- 0.37%
3,800 CVS CORP 209,000
600 LONGS DRUG STORES CORP 22,500
1,600 RITE AID CORP 79,300
4,000 *STAPLES, INC 174,750
4,700 *TOYS R US, INC 79,312
5,018 WALGREEN CO 293,866
------------
858,728
------------
MOTION PICTURES -- 0.63%
48,100 DISNEY (WALT) CO 1,443,000
600 *KING WORLD PRODUCTIONS, INC 17,662
------------
1,460,662
------------
NONDEPOSITORY INSTITUTIONS -- 2.89%
7,000 AMERICAN EXPRESS CO 715,750
25,334 ASSOCIATES FIRST CAPITAL CORP 1,073,528
500 CAPITAL ONE FINANCIAL CORP 57,500
28,676 CIT GROUP, INC (CLASS A) 912,255
700 COUNTRYWIDE CREDIT
INDUSTRIES, INC 35,131
40,819 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 3,020,606
12,036 FREDDIE MAC 775,569
3,326 HOUSEHOLD INTERNATIONAL,
INC 131,792
------------
6,722,131
------------
OIL AND GAS EXTRACTION -- 0.78%
1,205 BURLINGTON RESOURCES, INC 43,154
249 *EEX CORP 1,743
3,200 HALLIBURTON CO 94,800
400 HELMERICH & PAYNE, INC 7,750
700 KERR-MCGEE CORP 26,775
2,300 OCCIDENTAL PETROLEUM CORP 38,812
1,600 *ORYX ENERGY CO 21,500
2,200 *ROWAN COS, INC 22,000
25,828 ROYAL DUTCH PETROLEUM CO
(N.Y. REGD) ADR 1,236,515
700 *SANTA FE ENERGY RESOURCES,
INC 5,162
6,500 SCHLUMBERGER LTD 299,812
1,700 UNION PACIFIC RESOURCES
GROUP, INC 15,406
------------
1,813,429
------------
PAPER AND ALLIED PRODUCTS -- 0.91%
2,400 AVERY DENNISON CORP 108,150
400 BEMIS, INC 15,175
300 BOISE CASCADE CORP 9,300
2,200 CHAMPION INTERNATIONAL CORP 89,100
8,700 FORT JAMES CORP 348,000
2,100 INTERNATIONAL PAPER CO 94,106
9,800 KIMBERLY CLARK CORP 534,100
2,500 MEAD CORP 73,281
200 POTLATCH CORP 7,375
43,223 *SMURFIT-STONE CONTAINER CORP 683,463
400 TEMPLE-INLAND, INC 23,725
500 UNION CAMP CORP 33,750
2,200 WESTVACO CORP 58,987
800 WILLAMETTE INDUSTRIES, INC 26,800
------------
2,105,312
------------
PERSONAL SERVICES -- 0.06%
1,800 BLOCK (H&R), INC 81,000
1,600 SERVICE CORP INTERNATIONAL 60,900
------------
141,900
------------
PETROLEUM AND COAL PRODUCTS -- 4.71%
600 AMERADA HESS CORP 29,850
14,700 AMOCO CORP 867,300
1,700 ASHLAND, INC 82,237
2,200 ATLANTIC RICHFIELD CO 143,550
8,600 CHEVRON CORP 713,262
67,094 EXXON CORP 4,906,248
29,109 MOBIL CORP 2,536,121
300 PENNZENERGY CO 4,443
300 *PENNZOIL-QUAKER STATE CO 4,444
6,300 PHILLIPS PETROLEUM CO 268,537
2,300 SUNOCO, INC 82,943
16,106 TEXACO, INC 851,604
5,330 UNOCAL CORP 155,569
10,400 USX-MARATHON GROUP, INC 313,300
------------
10,959,408
------------
PRIMARY METAL INDUSTRIES -- 0.19%
5,900 ALCAN ALUMINIUM CO LTD (U.S.) 159,668
2,300 ALUMINUM CO OF AMERICA 171,493
700 *ARMCO, INC 3,062
300 ASARCO, INC 4,518
1,400 *BETHLEHEM STEEL CORP 11,725
1,000 ENGELHARD CORP 19,500
38 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH & INCOME FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
PRIMARY METAL INDUSTRIES -- (Continued)
111 INLAND STEEL INDUSTRIES, INC $ 1,873
600 NUCOR CORP 25,950
500 REYNOLDS METALS CO 26,343
600 USX-US STEEL GROUP, INC 13,800
700 WORTHINGTON INDUSTRIES, INC 8,750
------------
446,682
------------
PRINTING AND PUBLISHING -- 1.70%
500 AMERICAN GREETINGS CORP
(CLASS A) 20,531
1,700 DELUXE CORP 62,156
1,000 DONNELLEY (R.R.) & SONS CO 43,812
3,300 DOW JONES & CO, INC 158,812
11,163 GANNETT CO, INC 720,013
200 HARLAND (JOHN H.) CO 3,162
600 KNIGHT-RIDDER, INC 30,675
700 MCGRAW HILL COS, INC 71,312
400 MEREDITH CORP 15,150
600 MOORE CORP LTD (U.S.) 6,600
1,400 NEW YORK TIMES CO (CLASS A) 48,562
240 R.H. DONNELLEY CORP 3,495
26,066 TIME WARNER, INC 1,617,721
700 TIMES MIRROR CO SERIES A 39,200
17,002 TRIBUNE CO 1,122,132
------------
3,963,333
------------
RAILROAD TRANSPORTATION -- 0.28%
7,100 BURLINGTON NORTHERN
SANTA FE CORP 239,625
6,100 CSX CORP 253,150
2,700 NORFOLK SOUTHERN CORP 85,556
1,700 UNION PACIFIC CORP 76,606
------------
654,937
------------
RUBBER AND MISCELLANEOUS PLASTIC
PRODUCTS -- 0.74%
700 ARMSTRONG WORLD
INDUSTRIES, INC 42,218
500 COOPER TIRE & RUBBER CO 10,218
1,100 GOODRICH (B.F.) CO 39,462
2,000 GOODYEAR TIRE & RUBBER CO 100,875
4,592 ILLINOIS TOOL WORKS, INC 266,336
7,800 NIKE, INC (CLASS B) 316,387
400 *REEBOK INTERNATIONAL LTD 5,950
1,000 RUBBERMAID, INC 31,437
268 *SEALED AIR CORP 13,684
39,680 SOLUTIA, INC 887,840
900 TUPPERWARE CORP 14,793
------------
1,729,200
------------
SECURITY AND COMMODITY BROKERS -- 0.88%
2,400 BEAR STEARNS COS, INC 89,700
2,600 LEHMAN BROTHERS HOLDINGS, INC 114,562
2,300 MERRILL LYNCH & CO, INC 153,525
12,080 MORGAN STANLEY,
DEAN WITTER, & CO 857,680
14,850 SCHWAB (CHARLES) CORP 834,384
56 WADDELL & REED FINANCIAL,
INC (CLASS A) 1,326
244 WADDELL & REED FINANCIAL,
INC (CLASS B) 5,673
------------
2,056,850
------------
STONE, CLAY, AND GLASS PRODUCTS -- 0.13%
1,600 CORNING, INC 72,000
3,100 NEWELL COS, INC 127,875
1,200 OWENS CORNING CO 42,525
1,795* OWENS ILLINOIS, INC 54,971
------------
297,371
------------
TEXTILE MILL PRODUCTS -- 0.00%
300 RUSSELL CORP 6,093
100 SPRING INDUSTRIES, INC 4,143
------------
10,236
------------
TOBACCO PRODUCTS -- 0.96%
1,200 FORTUNE BRANDS, INC 37,950
39,100 PHILIP MORRIS COS, INC 2,091,850
3,200 UST, INC 111,600
------------
2,241,400
------------
TRANSPORTATION BY AIR -- 0.61%
2,100* AMR CORP 124,687
9,430* CONTINENTAL AIRLINES, INC
(CLASS B) 315,905
3,400 DELTA AIRLINES, INC 176,800
1,740* FDX CORP 154,860
23,355 SOUTHWEST AIRLINES CO 524,027
2,400* U.S. AIRWAYS GROUP, INC 124,800
------------
1,421,079
------------
TRANSPORTATION EQUIPMENT -- 3.25%
20,331 ALLIED SIGNAL, INC 900,917
17,020 BOEING CO 555,277
18,728* DAIMLERCHRYSLER (U.S.A.) 1,799,058
4,371 DANA CORP 178,664
2,200 EATON CORP 155,512
200 FLEETWOOD ENTERPRISES, INC 6,950
13,600 FORD MOTOR CO 798,150
1,500 GENERAL DYNAMICS CORP 87,937
15,100 GENERAL MOTORS CORP 1,080,593
800 ITT INDUSTRIES, INC 31,800
11,476 LOCKHEED MARTIN CORP 972,591
500 MERITOR AUTOMOTIVE, INC 10,593
1,500* NAVISTAR INTERNATIONAL CORP 42,750
1,300 NORTHROP GRUMMAN CORP 95,062
1,700 PACCAR, INC 69,912
170* SPX CORP 11,390
1,100 TEXTRON, INC 83,531
1,500 TRW, INC 84,281
5,400 UNITED TECHNOLOGIES CORP 587,250
------------
7,552,218
------------
See notes to financial statements 1998 ANNUAL REPORT 39
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH & INCOME FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
WATER TRANSPORTATION -- 0.04%
1,700 CARNIVAL CORP (CLASS A) $ 81,600
------------
WHOLESALE TRADE--DURABLE GOODS -- 0.41%
200 BRIGGS & STRATTON CORP 9,975
1,200 GENUINE PARTS CO 40,125
2,300 GRAINGER (W.W.), INC 95,737
900 IKON OFFICE SOLUTIONS, INC 7,706
7,000,000 *LERADO GROUP HOLDINGS
CO LTD 795,143
------------
948,686
------------
WHOLESALE TRADE--NONDURABLE GOODS -- 1.26%
24,375 CARDINAL HEALTH, INC 1,849,491
300 FLEMING COS, INC 3,112
318 *PHARMERICA, INC 1,908
3,100 SUPERVALU, INC 86,800
5,800 SYSCO CORP 159,137
10,100 UNILEVER NV-N.Y. SHS 837,815
------------
2,938,263
------------
TOTAL COMMON STOCK
(Cost $197,308,480) 230,240,780
------------
SHORT TERM INVESTMENT -- 0.96%
U.S. GOVERNMENT AGENCY -- 0.96%
FEDERAL HOME LOAN
MORTGAGE CORP
2,224,000 4.250%, 01/04/99 2,223,212
------------
TOTAL SHORT TERM INVESTMENT
(Cost $2,223,212) 2,223,212
------------
TOTAL PORTFOLIO
(Cost $199,542,226) $232,476,286
============
- ----------
* Non-income producing
At December 31, 1998, the aggregate cost of portfolio investments for
federal income tax purposes was $200,023,544. Net unrealized appreciation
aggregated $32,452,742, of which $39,155,185 related to appreciated
portfolio investments and $6,702,443 related to depreciated portfolio
investments.
40 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
December 31, 1998 Summary by Industry
- -------------------------------------------------------------------
VALUE %
- -------------------------------------------------------------------
PREFERRED STOCK
HEALTH SERVICES $ 28 0.00%
HOLDING AND OTHER INVESTMENT
OFFICES 962 0.00
RUBBER AND MISCELLANEOUS
PLASTIC PRODUCTS 14,784 0.01
------------ ------
TOTAL PREFERRED STOCK
(Cost $14,052) 15,774 0.01
------------ ------
COMMON STOCK
AGRICULTURAL PRODUCTION-CROPS 82,600 0.03
AGRICULTURAL SERVICES 13,956 0.00
AMUSEMENT AND RECREATION
SERVICES 8,288,478 2.80
APPAREL AND ACCESSORY STORES 1,159,810 0.39
APPAREL AND OTHER TEXTILE
PRODUCTS 201,787 0.06
AUTO REPAIR, SERVICES AND PARKING 62,792 0.02
AUTOMOTIVE DEALERS AND
SERVICE STATIONS 88,331 0.03
BUILDING MATERIALS AND
GARDEN SUPPLIES 2,959,699 1.00
BUSINESS SERVICES 27,698,966 9.35
CHEMICALS AND ALLIED PRODUCTS 44,830,164 15.13
COMMUNICATIONS 49,231,403 16.61
DEPOSITORY INSTITUTIONS 4,629,562 1.56
EATING AND DRINKING PLACES 1,273,620 0.43
EDUCATIONAL SERVICES 212,480 0.07
ELECTRIC, GAS, AND SANITARY
SERVICES 11,297,592 3.81
ELECTRONIC and OTHER ELECTRIC
EQUIPMENT 31,997,262 10.80
ENGINEERING AND MANAGEMENT
SERVICES 385,035 0.13
FABRICATED METAL PRODUCTS 1,858,929 0.63
FOOD AND KINDRED PRODUCTS 8,558,592 2.88
FOOD STORES 1,256,016 0.42
FURNITURE AND FIXTURES 278,860 0.09
FURNITURE AND HOMEFURNISHINGS
STORES 582,360 0.20
GENERAL BUILDING CONTRACTORS 62,162 0.02
GENERAL MERCHANDISE STORES 4,476,904 1.51
HEALTH SERVICES 1,042,533 0.35
HEAVY CONSTRUCTION, EXCEPT
BUILDING 27,581 0.01
HOLDING AND OTHER INVESTMENT
OFFICES 232,918 0.08
HOTELS AND OTHER LODGING
PLACES 1,296,091 0.44
INDUSTRIAL MACHINERY AND
EQUIPMENT 32,354,003 10.92
INSTRUMENTS AND RELATED
PRODUCTS 5,009,647 1.69
INSURANCE AGENTS, BROKERS AND
SERVICE 174,559 0.06
INSURANCE CARRIERS 14,284,637 4.82
LEATHER AND LEATHER PRODUCTS 8,260 0.00
LOCAL AND INTERURBAN PASSENGER
TRANSIT 63,205 0.02
LUMBER AND WOOD PRODUCTS 78,536 0.03
METAL MINING 188,449 0.06
MISCELLANEOUS MANUFACTURING
INDUSTRIES 156,829 0.05
MISCELLANEOUS RETAIL 2,222,790 0.75
MOTION PICTURES 1,708,525 0.58
NONDEPOSITORY INSTITUTIONS 6,491,719 2.19
OIL AND GAS EXTRACTION 3,889,850 1.31
PAPER AND ALLIED PRODUCTS 943,180 0.32
PERSONAL SERVICES 436,186 0.15
PETROLEUM AND COAL PRODUCTS 164,685 0.06
PRIMARY METAL INDUSTRIES 142,111 0.05
PRINTING AND PUBLISHING 1,654,058 0.56
RAILROAD TRANSPORTATION 149,681 0.05
REAL ESTATE 83,711 0.03
RUBBER AND MISCELLANEOUS
PLASTIC PRODUCTS 747,356 0.25
SECURITY AND COMMODITY BROKERS 758,113 0.25
SOCIAL SERVICES 21,662 0.01
SPECIAL TRADE CONTRACTORS 18,362 0.01
STONE, CLAY, AND GLASS PRODUCTS 244,955 0.08
TEXTILE MILL PRODUCTS 1,233,488 0.42
TOBACCO PRODUCTS 3,349,118 1.13
TRANSPORTATION BY AIR 210,067 0.07
TRANSPORTATION EQUIPMENT 3,609,413 1.22
TRANSPORTATION SERVICES 184,121 0.06
TRUCKING AND WAREHOUSING 36,440 0.01
WATER TRANSPORTATION 3,129,991 1.06
WHOLESALE TRADE-
DURABLE GOODS 296,641 0.10
WHOLESALE TRADE-
NONDURABLE GOODS 5,072,538 1.71
------------ ------
TOTAL COMMON STOCK
(Cost $237,017,465) 293,203,369 98.93
------------ ------
SHORT TERM INVESTMENT
U.S. GOVERNMENT AGENCy 5,278,130 1.78
------------ ------
TOTAL SHORT TERM INVESTMENT
(Cost $5,278,130) 5,278,130 1.78
------------ ------
TOTAL PORTFOLIO
(Cost $242,309,647) 298,497,273 100.72
OTHER ASSETS & LIABILITIES, NET (2,135,737) (0.72)
------------ ------
NET ASSETS $296,361,536 100.00%
============ ======
See notes to financial statements 1998 ANNUAL REPORT 41
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
December 31, 1998
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
PREFERRED STOCK -- 0.01%
HEALTH SERVICES -- 0.00%
7 *MEDIQ, INC SERIES A $ 28
------------
HOLDING AND OTHER INVESTMENT
OFFICES -- 0.00%
26 APARTMENT INVESTMENT
& MANAGEMENT CO SERIES E 962
------------
RUBBER AND MISCELLANEOUS
PLASTIC PRODUCTS -- 0.01%
285 SEALED AIR CORP (CLASS A) 14,784
------------
TOTAL PREFERRED STOCK
(Cost $14,052) 15,774
------------
COMMON STOCK -- 98.93%
AGRICULTURAL PRODUCTION CROPS -- 0.03%
700 DELTA & PINE LAND CO 25,900
2,100 PIONEER-HI-BRED
INTERNATIONAL, INC 56,700
------------
82,600
------------
AGRICULTURAL SERVICES -- 0.00%
700 *VETERINARY CENTERS OF
AMERICA, INC 13,956
------------
AMUSEMENT AND RECREATION
SERVICES -- 2.80%
100 *ANCHOR GAMING CO 5,637
1,800 DOVER DOWNS ENTERTAINMENT,
INC 21,712
500 *FLORIDA PANTHERS HOLDINGS, INC 4,656
2,100 *HARRAH'S ENTERTAINMENT, INC 32,943
300 *PENSKE MOTORSPORTS, INC 7,987
188,850 *PREMIER PARKS, INC 5,712,712
45,350 *SFX ENTERTAINMENT, INC
(CLASS A) 2,488,581
500 *SPEEDWAY MOTORSPORTS, INC 14,250
------------
8,288,478
------------
APPAREL AND ACCESSORY STORES -- 0.39%
1,318 *ABERCROMBIE & FITCH CO
(CLASS A) 93,249
700 *AMERICAN EAGLE OUTFITTERS, INC 46,637
200 *GADZOOKS, INC 1,550
12,900 GAP, INC 725,625
1,000 *GENESCO, INC 5,687
1,100 *MENS WAREHOUSE, INC 34,925
400 NORDSTROM, INC 13,875
600 *PACIFIC SUNWEAR CALIFORNIA, INC 9,825
2,400 ROSS STORES, INC 94,500
700 *STAGE STORES, INC 6,562
800 *STEIN MART, INC 5,575
4,200 TJX COS, INC 121,800
------------
1,159,810
------------
APPAREL AND OTHER TEXTILE
PRODUCTS -- 0.06%
400 *FRUIT OF THE LOOM, INC
(CLASS A) 5,525
5,400 *JONES APPAREL GROUP, INC 119,137
400 LIZ CLAIBORNE, INC 12,625
1,800 *NAUTICA ENTERPRISES, INC 27,000
800 VF CORP 37,500
------------
201,787
------------
AUTO REPAIR, SERVICES AND PARKING -- 0.02%
500 *BUDGET GROUP, INC 7,937
1,100 HERTZ CORP (CLASS A) 50,187
150 MIDAS, INC 4,668
------------
62,792
------------
AUTOMOTIVE DEALERS AND
SERVICE STATIONS -- 0.03%
1,600 *AUTOZONE, INC 52,700
1,100 *CSK AUTO CORP 29,356
400 PEP BOYS MANNY, MOE, &
JACK CO 6,275
------------
88,331
------------
BUILDING MATERIALS AND
GARDEN SUPPLIES -- 1.00%
700 FASTENAL CO 30,800
39,000 HOME DEPOT, INC 2,386,312
10,600 LOWES COS, INC 542,587
------------
2,959,699
------------
BUSINESS SERVICES -- 9.35%
200 *ABACUS DIRECT CORP 9,100
600 *ABR INFORMATION SERVICES, INC 11,775
1,500 *ACCLAIM ENTERTAINMENT, INC 18,375
400 ACKERLEY GROUP, INC 7,300
700 *ACTIVISION, INC 7,788
2,900 *ACXIOM CORP 89,900
100 *ADMINSTAFF, INC 2,500
900 ADOBE SYSTEMS, INC 42,075
500 *ADVO, INC 13,187
600 *ALTERNATIVE RESOURCES CORP 6,375
12,200 AMERICA ONLINE, INC 1,952,000
2,400 *AMERICAN MANAGEMENT
SYSTEMS, INC 96,000
700 ANALYSTS INTERNATIONAL CORP 13,475
300 *APAC TELESERVICES, INC 1,134
4,300 *ASCEND COMMUNICATIONS, INC 282,725
400 *ASPECT DEVELOPMENT, INC 17,725
2,500 AUTODESK, INC 106,718
42 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
BUSINESS SERVICES -- (Continued)
5,300 AUTOMATIC DATA
PROCESSING, INC $ 424,993
1,400 *AVANT CORP 22,400
230 *AZTEC TECHNOLOGY
PARTNERS, INC 833
800 *BILLING CONCEPTS CORP 8,800
700 *BISYS GROUP, INC 36,137
7,100 *BMC SOFTWARE, INC 316,393
900 *BOOLE & BABBAGE, INC 26,493
500 *BORON, LEPORE & ASSOCIATES, INC 17,250
1,100 *CADENCE DESIGN SYSTEMS, INC 32,725
1,000 *CAMBRIDGE TECHNOLOGY
PARTNERS, INC 22,125
200 *CARIBINER INTERNATIONAL, INC 1,825
500 *CATALINA MARKETING CORP 34,187
14,400 *CBT GROUP PLC ADR 214,200
500 *CCC INFORMATION SERVICES
GROUP, INC 8,625
400 *CDI CORP 8,075
700 *CENTURY BUSINESS SERVICES, INC 10,062
1,600 *CERIDIAN CORP 111,700
1,300 *CERNER CORP 34,775
2,200 *CHECKFREE HOLDINGS CORP 51,425
830 *CHOICEPOINT, INC 53,535
600 *CIBER, INC 16,762
300 *CITRIX SYSTEMS, INC 29,118
500 *CMGI, INC 53,250
500 *COMPLETE BUSINESS
SOLUTIONS, INC 16,937
13,700 COMPUTER ASSOCIATES
INTERNATIONAL, INC 583,962
1,200 *COMPUTER HORIZONS CORP 31,950
1,700 *COMPUTER SCIENCES CORP 109,543
800 *COMPUTER TASK GROUP, INC 21,700
5,000 *COMPUWARE CORP 390,625
300 *CONCORD COMMUNICATIONS, INC 17,025
200 *CORT BUSINESS SERVICES CORP 4,850
1,300 *CSG SYSTEMS INTERNATIONAL, INC 102,700
300 *DBT ONLINE, INC 7,481
700 *DENDRITE INTERNATIONAL, INC 17,478
200 *DOCUMENTUM, INC 10,687
248 *DST SYSTEMS, INC 14,151
2,600 *ELECTRONIC ARTS, INC 145,925
3,200 ELECTRONIC DATA SYSTEMS CORP 160,800
2,500 *ELECTRONICS FOR IMAGING, INC 100,468
1,100 *ENVOY CORP 64,075
1,300 EQUIFAX, INC 44,443
1,500 *EXCITE, INC 63,093
100 *FACTSET RESEARCH SYSTEMS, INC 6,175
500 FAIR ISSAC & CO, INC 23,093
13,000 FIRST DATA CORP 411,937
2,500 *FORE SYSTEMS, INC 45,781
20,000 *GEOCITIES 672,500
600 *GEOTEL COMMUNICATIONS
CORP 22,350
1,700 *GTECH HOLDINGS CORP 43,562
750 *HARBINGER CORP 6,000
16,005 HBO & CO 459,143
500 *HNC SOFTWARE 20,218
585 *HYPERION SOLUTIONS CORP 10,530
200 *I2 TECHNOLOGIES, INC 6,075
500 *IDENTIX, INC 4,156
300 *IMRGLOBAL CORP 8,831
1,700 IMS HEALTH, INC 128,243
600 *INDUSTRI-MATEMATIK
INTERNATIONAL CORP 3,000
900 *INTERNATIONAL NETWORK
SERVICES 59,850
1,200 INTERPUBLIC GROUP OF COS, INC 95,700
600 *INTUIT, INC 43,500
2,200 *J.D. EDWARDS & CO 62,425
300 *JDA SOFTWARE GROUP, INC 2,906
3,200 *KEANE, INC 127,800
600 KELLY SERVICES, INC (CLASS A) 19,050
600 *LAMAR ADVERTISING CO (CLASS A) 22,350
4,300 *LEARNING CO, INC 111,531
600 *LEGATO SYSTEMS, INC 39,562
15,825 *LERNOUT & HAUSPIE
SPEECH PRODUCTS 516,290
200 *LHS GROUP, INC 10,325
800 *LYCOS, INC 44,450
4,700 *MANPOWER, INC 118,381
400 *MANUGISTICS GROUP, INC 5,000
700 *MAPICS, INC 11,550
600 *MEDQUIST, INC 23,700
1,600 *METAMOR WORLDWIDE, INC 40,000
330 *MICRO FOCUS GROUP PLC ADR 3,114
98,025 *MICROSOFT CORP 13,594,842
100 *MIDWAY GAMES, INC 1,100
900 *MINDSPRING ENTERPRISES, INC 54,956
1,600 *MODIS PROFESSIONAL SERVICES 23,200
200 *NETWORK SOLUTIONS, INC
(CLASS A) 26,175
600 *NETWORKS ASSOCIATES, INC 39,750
3,066 NIELSEN MEDIA RESEARCH 55,188
700 NORRELL CORP 10,325
500 *NOVA CORP (GEORGIA) 17,343
1,600 *NOVELL, INC 29,000
1,600 OMNICOM GROUP, INC 92,800
21,900 *ORACLE CORP 944,437
900 *OUTDOOR SYSTEMS, INC 27,000
2,800 *PARAMETRIC TECHNOLOGY
CORP 45,850
5,700 PAYCHEX, INC 293,193
200 *PAYMENTECH, INC 3,700
1,400 *PEOPLESOFT, INC 26,512
4,500 *PLATINUM TECHNOLOGY, INC 86,062
See notes to financial statements 1998 ANNUAL REPORT 43
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
BUSINESS SERVICES -- (Continued)
1,700 *POLICY MANAGEMENT
SYSTEMS CORP $ 85,850
800 *PROGRESS SOFTWARE CORP 27,000
3,000 *RATIONAL SOFTWARE CORP 79,500
500 *REALNETWORKS, INC 17,937
500 *REMEDY CORP 6,968
800 *RENTERS CHOICE, INC 25,400
1,600 *ROBERT HALF INTERNATIONAL, INC 71,500
1,954 *ROMAC INTERNATIONAL, INC 43,476
280 *SAFETY-KLEEN CORP 3,955
700 SEI INVESTMENT CO 69,562
200 SHARED MEDICAL SYSTEMS CORP 9,975
2,800 *SIEBEL SYSTEMS, INC 95,025
900 *SITEL CORP 2,193
400 *SNYDER COMMUNICATIONS, INC 13,500
300 *STAFFMARK, INC 6,712
900 *STERLING COMMERCE, INC 40,500
1,100 *STERLING SOFTWARE, INC 29,768
1,700 *STRUCTURAL DYNAMICS
RESEARCH CORP 33,787
7,300 *SUN MICROSYSTEMS, INC 625,062
204 *SUNGARD DATA SYSTEMS, INC 8,096
1,000 *SYKES ENTERPRISES, INC 30,500
1,530 *SYNOPSYS, INC 83,002
800 *SYSTEMS & COMPUTER
TECHNOLOGY CORP 11,000
450 *TECHNOLOGY SOLUTIONS CO 4,823
700 *TMP WORLDWIDE, INC 29,400
400 TOTAL SYSTEM SERVICES, INC 9,400
700 *TRANSACTION SYSTEM
ARCHITECTURE 35,000
500 *TRANSITION SYSTEMS, INC 7,500
1,600 TRUE NORTH COMMUNICATIONS,
INC 43,000
1,500 *UNITED RENTALS, INC 49,687
700 *USWEB CORP 18,462
500 *VALASSIS COMMUNICATIONS, INC 25,812
1,050 *VERITAS SOFTWARE CORP 62,934
500 *VIASOFT, INC 3,500
600 *VISIO CORP 21,937
200 *VOLT INFORMATION SCIENCES, INC 4,512
600 *WEST TELESERVICES CORP 5,850
500 *WIND RIVER SYSTEMS, INC 23,500
1,600 *YAHOO, INC 379,100
25,700 *YOUNG & RUBICAM, INC 832,037
------------
27,698,966
------------
CHEMICALS AND ALLIED PRODUCTS -- 15.13%
50,400 ABBOTT LABORATORIES CO 2,469,600
900 *ADVANCED TISSUE SCIENCE CO 2,334
1,800 *AGOURON PHARMACEUTICALS, INC 105,750
600 AIR PRODUCTS & CHEMICALS, INC 24,000
300 ALBERTO CULVER CO (CLASS B) 8,006
500 *ALGOS PHARMACEUTICAL
CORP 13,000
20 *ALLERGAN SPECIALTY
THERAPEUTICS, INC (CLASS A) 186
400 ALLERGAN, INC 25,900
700 *ALZA CORP 36,575
81,300 AMERICAN HOME PRODUCTS
CORP 4,578,206
7,600 *AMGEN, INC 794,675
3,000 AVON PRODUCTS, INC 132,750
200 *BARR LABORATORIES, INC 9,600
1,000 *BIO-TECHNOLOGY GENERAL CORP 6,937
3,200 *BIOGEN, INC 265,600
300 *BIOMATRIX, INC 17,475
23,500 BRISTOL MYERS SQUIBB CO 3,144,593
1,300 *CENTOCOR, INC 58,662
100 *CHATTEM, INC 4,787
200 CHURCH & DWIGHT CO, INC 7,187
2,600 CLOROX CO 303,712
5,400 COLGATE PALMOLIVE CO 501,525
800 *COLUMBIA LABORATORIES, INC 2,450
600 *COR THERAPEUTICS, INC 7,950
1,000 *CREATIVE BIOMOLECULES, INC 3,687
735 *CRESCENDO PHARMACEUTICALS
CORP 10,014
3,700 CROMPTON & KNOWLES CORP 76,543
900 *CYTEC INDUSTRIES, INC 19,125
1,200 DIAL CORP 34,650
8,100 DU PONT (E.I.) DE NEMOURS & CO 429,806
1,200 *DURA PHARMACEUTICALS, INC 18,225
400 EASTMAN CHEMICAL CO 17,900
4,300 ECOLAB, INC 155,606
53,930 *ELAN CORP PLC ADR 3,751,505
1,000 FERRO CORP 26,000
1,900 *GENSIA SICOR, INC 8,609
1,000 *GENZYME CORP
(GENERAL DIVISION) 49,750
108 *GENZYME-MOLECULAR ONCOLOGY 351
600 *GRACE W.R. & CO 9,412
300 GREAT LAKES CHEMICAL CORP 12,000
54,380 *GUILFORD PHARMACEUTICALS,
INC 774,915
2,000 HERCULES, INC 54,750
500 *HUMAN GENOME SCIENCES, INC 17,781
900 *ICOS CORP 26,775
500 *IDEC PHARMACEUTICALS CORP 23,500
900 *IMMUNEX CORP 113,231
400 *INHALE THERAPEUTIC SYSTEMS 13,200
900 INTERNATIONAL FLAVORS &
FRAGRANCES, INC 39,768
900 *ISIS PHARMACEUTICALS, INC 11,643
31,400 JOHNSON & JOHNSON CO 2,633,675
1,200 JONES PHARMACEUTICAL, INC 43,800
2,100 LAUDER (ESTEE) CO (CLASS A) 179,550
44 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
CHEMICALS AND ALLIED PRODUCTS -- (Continued)
1,000 *LIGAND PHARMACEUTICALS CO
(CLASS A) $ 11,625
23,200 LILLY (ELI) & CO 2,061,900
2,200 *LIPOSOME CO, INC 33,962
100 MACDERMID, INC 3,912
400 MALLINCKRODT, INC 12,325
700 *MEDICIS PHARMACEUTICAL CORP
(CLASS A) 41,737
600 *MEDIMMUNE, INC 59,662
59,400 MERCK & CO, INC 8,772,637
700 *MILLENNIUM PHARMACEUTICALS,
INC 18,112
12,200 MONSANTO CO 579,500
700 MORTON INTERNATIONAL, INC 17,150
7,600 MYLAN LABORATORIES, INC 239,400
400 NALCO CHEMICAL CORP 12,400
1,000 NATURES SUNSHINE PRODUCTS, INC 15,250
1,200 *NBTY, INC 8,550
700 *NEXSTAR PHARMACEUTICALS, INC 6,475
75 *OCTEL CORP 1,040
750 *ORGANOGENESIS, INC 8,437
500 *PATHOGENESIS CORP 29,000
31,000 PFIZER, INC 3,888,562
1,900 PRAXAIR, INC 66,975
34,600 PROCTER & GAMBLE CO 3,159,412
300 *PROTEIN DESIGN LABORATORIES,
INC 6,937
200 *REVLON, INC (CLASS A) 3,287
1,700 *REXALL SUNDOWN, INC 23,800
200 ROHM & HAAS CO 6,025
400 *SANGSTAT MEDICAL CORP 8,500
39,000 SCHERING-PLOUGH CORP 2,154,750
600 *THERAGENICS CORP 10,087
400 *THERMOLASE CORP 1,825
700 *TRIANGLE PHARMACEUTICALS, INC 9,537
1,200 *TWINLAB CORP 15,750
700 UNION CARBIDE CORP 29,750
700 *VERTEX PHARMACEUTICALS, INC 20,825
800 *VICAL, INC 11,350
29,600 WARNER-LAMBERT CO 2,225,550
2,500 *WATSON PHARMACEUTICALS, INC 157,187
2,000 *ZILA, INC 19,750
------------
44,830,164
------------
COMMUNICATIONS -- 16.61%
12,500 *AIRTOUCH COMMUNICATIONS,
INC 901,562
570 *ALCATEL S.A. ADR 13,929
3,766 ALLTEL CORP 225,253
46,921 AT & T CORP 3,530,805
4,940 BELL ATLANTIC CORP 261,820
800 *CABLEVISION SYSTEMS CORP
(CLASS A) 40,150
68,400 *CAPSTAR BROADCASTING CORP
(CLASS A) 1,564,650
160,970 CBS CORP 5,271,767
84,650 *CD RADIO, INC 2,899,262
900 *CELLULAR COMMUNICATIONS
INTERNATIONAL, INC 61,200
900 *CENTENNIAL CELLULAR CORP
(CLASS A) 36,900
50,850 *CHANCELLOR MEDIA CORP
(CLASS A) 2,434,443
7,600 CINCINNATI BELL, INC 287,375
74,736 *CLEAR CHANNEL
COMMUNICATIONS, INC 4,073,112
6,400 COMCAST CORP (CLASS A) SPECIAL 375,600
11,750 *COX RADIO, INC (CLASS A) 496,438
71,800 *CROWN CASTLE INTERNATIONAL
CORP 1,687,300
400 *EMMIS COMMUNICATIONS
(CLASS A) 17,350
500 *EXODUS COMMUNICATIONS, INC 32,125
1,000 FRONTIER CORP 34,000
800 *GLOBAL TELESYSTEMS GROUP, INC 44,600
26,510 *GLOBALSTAR
TELECOMMUNICATIONS LTD 533,513
4,500 GTE CORP 292,500
3,100 *HEARST-ARGYLE TELEVISION, INC 102,300
2,300 *HEFTEL BROADCASTING CORP
(CLASS A) 113,275
1,500 *INTERMEDIA COMMUNICATIONS,
INC 25,875
150 *LEAP WIRELESS INTERNATIONAL,
INC 1,087
2,000 *LEVEL 3 COMMUNICATIONS, INC 86,250
4,400 *LIBERTY MEDIA GROUP (CLASS A) 202,675
49,100 *LORAL SPACE &
COMMUNICATIONS LTD 874,593
52,080 LUCENT TECHNOLOGIES, INC 5,728,800
196,091 *MCI WORLDCOM, INC 14,069,529
3,400 *MEDIA ONE GROUP, INC 159,800
2,700 *NEXTLINK COMMUNICATIONS, INC 76,612
1,600 *NTL, INC 90,300
1,400 *PAGEMART WIRELESS, INC (CLASS A) 7,787
5,000 *PAGING NETWORK, INC 23,437
1,200 *RCN CORP 21,225
9,800 SBC COMMUNICATIONS, INC 525,525
3,400 *SKYTEL COMMUNICATIONS, INC 75,225
1,100 SPRINT CORP (FON GROUP) 92,537
2,350 *SPRINT CORP (PCS GROUP) 54,343
700 TCA CABLE TV, INC 24,981
736 *TELE-COMMUNICATIONS, INC
(CLASS A) 40,710
11,328 *TELECOM-TCI VENTURES GROUP
(CLASS A) 266,916
92 U.S. WEST, INC 5,945
See notes to financial statements 1998 ANNUAL REPORT 45
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
COMMUNICATIONS -- (Continued)
1,200 *UNITED VIDEO SATELLITE
GROUP, INC $ 28,350
1,000 *VANGUARD CELLULAR SYSTEMS,
INC 25,812
4,400 *VIACOM, INC (CLASS B) 325,600
2,900 *WESTERN WIRELESS CORP
(CLASS A) 63,800
25,382 *WINSTAR COMMUNICATIONS, INC 989,898
300 *YOUNG BROADCASTING, INC
(CLASS A) 12,562
------------
49,231,403
------------
DEPOSITORY INSTITUTIONS -- 1.56%
6,300 BANK OF NEW YORK CO, INC 253,575
3,800 BANK ONE CORP 194,037
950 BANKAMERICA CORP 57,118
900 COMERICA, INC 61,368
1,500 COMMUNITY FIRST
BANKSHARES, INC 31,593
1,200 *CONCORD EFS, INC 50,850
6,150 FIFTH THIRD BANCORP 438,571
1,300 FIRST BANCORP (PUERTO RICO) 39,243
585 FIRST UNION CORP 35,575
2,000 FIRSTAR CORP 186,500
400 *HUBCO, INC 12,050
1,500 *IMPERIAL BANCORP 24,937
21,275 MBNA CORP 530,545
1,600 MELLON BANK CORP 110,000
2,000 NORTHERN TRUST CORP 174,625
200 *OCWEN FINANCIAL CORP 2,462
700 OLD NATIONAL BANCORP 39,025
4,950 PROVIDIAN FINANCIAL CORP 371,250
600 REPUBLIC NEW YORK CORP 27,337
300 *SILICON VALLEY BANCSHARES 5,109
1,500 *SKY FINANCIAL GROUP, INC 39,656
300 *SOUTHWEST BANCORP OF TEXAS,
INC 5,362
1,600 STATE STREET CORP 111,300
1,200 SUNTRUST BANKS, INC 91,800
450 SYNOVUS FINANCIAL CORP 10,968
500 TR FINANCIAL CORP 19,687
700 TRUST CO OF NEW JERSEY 17,150
13,812 U.S. BANCORP 490,326
500 U.S. TRUST CORP 38,000
700 UNITED BANKSHARES, INC 18,550
1,500 WASHINGTON MUTUAL, INC 57,281
26,200 WELLS FARGO CO 1,046,362
300 WESTERN BANCORP 8,775
1,800 *WESTERNBANK PUERTO RICO 28,575
------------
4,629,562
------------
EATING AND DRINKING PLACES -- 0.43%
600 APPLEBEES INTERNATIONAL, INC 12,375
800 AVADO BRANDS, INC 6,650
1,000 *CEC ENTERTAINMENT, INC 27,750
1,760 CKE RESTAURANTS, INC 51,810
625 *CONSOLIDATED PRODUCTS, INC 12,890
900 DARDEN RESTAURANTS, INC 16,200
1,800 *FOODMAKER, INC 39,712
3,400 HOST MARRIOTT CORP (NEW) 46,963
500 *HOST MARRIOTT SERVICES CORP 5,188
300 *LANDRYS SEAFOOD
RESTAURANTS, INC 2,250
2,000 MARRIOTT INTERNATIONAL
(CLASS A) 58,000
10,500 MCDONALD'S CORP 804,562
1,200 *NPC INTERNATIONAL, INC 14,475
700 *OUTBACK STEAKHOUSE, INC 27,912
900 *PAPA JOHNS INTERNATIONAL, INC 39,712
800 *PLANET HOLLYWOOD, INC
(CLASS A) 1,850
250 *SODEXHO MARRIOTT
SERVICES, INC 6,921
600 *THE CHEESECAKE FACTORY CO 17,793
1,260 *TRICON GLOBAL RESTAURANTS,
INC 63,157
800 WENDY'S INTERNATIONAL, INC 17,450
------------
1,273,620
------------
EDUCATIONAL SERVICES -- 0.07%
1,950 *APOLLO GROUP, INC (CLASS A) 66,056
200 *COMPUTER LEARNING CENTERS,
INC 1,337
1,600 *DEVRY, INC 49,000
1,200 *EDUCATION MANAGEMENT CORP 28,350
100 *ITT EDUCATIONAL SERVICES, INC 3,400
200 *LEARNING TREE INTERNATIONAL,
INC 1,812
2,050 *SYLVAN LEARNING SYSTEMS, INC 62,525
------------
212,480
------------
ELECTRIC, GAS, AND SANITARY SERVICES -- 3.81%
1,500 *AES CORP 71,062
6,600 *ALLIED WASTE INDUSTRIES, INC 155,512
3,000 *AQUA ALLIANCE, INC 6,187
1,000 BROWNING FERRIS INDUSTRIES, INC 28,437
1,200 COASTAL CORP 41,925
450 COLUMBIA ENERGY GROUP 25,987
1,500 *EASTERN ENVIRONMENTAL
SERVICES, INC 44,531
1,000 ENRON CORP 57,062
800 FIRSTENERGY CORP 26,050
700 *NEWPARK RESOURCES, INC 4,768
3,400 *REPUBLIC INDUSTRIES, INC 50,150
300 SONAT, INC 8,118
1,100 *SUPERIOR SERVICES, INC 22,068
12 TEXAS UTILITIES CO 560
229,470 WASTE MANAGEMENT, INC 10,699,038
1,800 WILLIAMS COS, INC 56,137
------------
11,297,592
------------
46 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
ELECTRONIC AND OTHER ELECTRIC
EQUIPMENT -- 10.80%
500 *ACTEL CORP $ 10,000
7,000 *ADC TELECOMMUNICATIONS,
INC 243,250
1,100 *ADTRAN, INC 20,143
1,100 *ADVANCED FIBRE
COMMUNICATIONS 12,031
800 *ADVANCED MICRO DEVICES, INC 23,150
1,400 ALLEGHENY TELEDYNE, INC 28,612
2,300 *ALTERA CORP 140,012
2,400 *AMERICAN POWER CONVERSION
CORP 116,250
90,955 *AMERICAN TOWER SYSTEMS
(CLASS A) 2,688,857
785 AMP, INC 40,869
67,100 *ANALOG DEVICES, INC 2,105,262
2,300 *ANDREW CORP 37,950
1,100 *APPLIED MICRO CIRCUITS CORP 37,365
700 *ARTESYN TECHNOLOGIES, INC 9,800
1,400 *ASPECT TELECOMMUNICATIONS
CORP 24,150
2,400 *ATMEL CORP 36,750
100 *BROADCOM CORP (CLASS A) 12,075
1,000 *CIENA CORP 14,625
366 *COMMSCOPE, INC 6,153
2,355 *COMVERSE TECHNOLOGY, INC 167,205
200 *DAVOX CORP 1,525
1,000 *DIGITAL MICROWAVE CORP 6,843
500 *DII GROUP, INC 11,500
2,400 EMERSON ELECTRIC CO 145,200
113,835 GENERAL ELECTRIC CO 11,618,284
1,100 *GENERAL INSTRUMENT CORP 37,331
275 *GENERAL SEMICONDUCTOR, INC 2,251
400 HARRIS CORP 14,650
100 *HMT TECHNOLOGY CORP 1,281
100 *HUTCHINSON TECHNOLOGY, INC 3,562
400 INNOVEX, INC 5,487
300 *INTEGRATED CIRCUIT SYSTEMS,
INC 5,287
53,853 INTEL CORP 6,384,946
900 *JABIL CIRCUIT, INC 67,162
700 KUHLMAN CORP 26,512
200 *LATTICE SEMICONDUCTOR CORP 9,181
1,950 *LEVEL ONE COMMUNICATIONS,
INC 69,225
40,489 LINEAR TECHNOLOGY CO 3,626,296
900 *LO-JACK CORP 10,687
1,600 *LSI LOGIC CORP 25,800
2,000 *MAXIM INTEGRATED PRODUCTS 87,375
500 MAYTAG CO 31,125
300 *MICREL, INC 16,500
2,300 *MICROCHIP TECHNOLOGY, INC 85,100
1,200 *MICRON TECHNOLOGY, INC 60,675
1,700 *MMC NETWORKS, INC 22,525
2,200 MOLEX, INC 83,875
5,700 MOTOROLA, INC 348,056
500 *MRV COMMUNICATIONS, INC 3,093
500 *NATIONAL SEMICONDUCTOR CORP 6,750
300 NATIONAL SERVICE INDUSTRIES,
INC 11,400
300 *NATURAL MICROSYSTEMS CORP 2,184
1,100 *NEOMAGIC CORP 24,337
19,320 NORTHERN TELECOMMUNICATIONS
LTD (U.S.) 968,415
1,000 *P-COM, INC 3,984
1,500 *PAIRGAIN TECHNOLOGIES, INC 11,531
500 *PHOTRONICS, INC 11,984
500 *PLANTRONICS, INC 43,000
400 *PLEXUS CORP 13,550
700 *PMC-SIERRA, INC 44,187
200 *PREMISYS COMMUNICATIONS, INC 1,837
3,000 *QUALCOMM, INC 155,437
200 *RAMBUS, INC 19,250
2,100 RAYCHEM CORP 67,856
900 *RAYOVAC CORP 24,018
300 *REMEC, INC 5,400
300 *ROYAL APPLIANCE
MANUFACTURING CO, INC 1,106
2,200 *SANMINA CORP 137,500
500 SCIENTIFIC-ATLANTA, INC 11,406
600 *SDL, INC 23,775
200 *SEMTECH CORP 7,175
200 *SIPEX CORP 7,025
600 *SMART MODULAR
TECHNOLOGIES, INC 16,650
2,300 *SOLECTRON CORP 213,756
300 *SPECTRIAN CORP 3,862
1,100 *SUNBEAM CORP 7,700
800 *TECHNITROL, INC 25,500
400 *TEKELEC 6,625
6,516 *TELLABS, INC 446,753
7,800 TEXAS INSTRUMENTS, INC 667,387
200 THOMAS & BETTS CORP 8,662
900 *UNIPHASE CORP 62,437
600 *UNITRODE CORP 10,500
2,000 *VITESSE SEMICONDUCTOR CORP 91,250
400 WHIRLPOOL CORP 22,150
500 *WORLD ACCESS, INC 10,687
3,100 *XILINX, INC 201,887
700 *XYLAN CORP 12,293
800x*ZENITH ELECTRONICS CORP 213
------------
31,997,262
------------
See notes to financial statements 1998 ANNUAL REPORT 47
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
ENGINEERING AND MANAGEMENT
SERVICES -- 0.13%
2,800 *CATALYTICA, INC $ 50,400
1,700 *CORRECTIONS CORP OF AMERICA 29,962
500 *DATA TRANSMISSION NETWORK
CORP 14,437
1,300 DUN & BRADSTREET CORP 41,031
300 EG & G, INC 8,343
900 *GARTNER GROUP, INC (CLASS A) 19,125
500 *INCYTE PHARMACEUTICALS, INC 18,687
1,100 *NFO WORLDWIDE, INC 12,650
3,000 *QUINTILES TRANSNATIONAL CORP 160,125
400 *RENAISSANCE WORLDWIDE, INC 2,450
200 *WACKENHUT CORRECTIONS CORP 5,725
800 *WHITTMAN HART, INC 22,100
------------
385,035
------------
FABRICATED METAL PRODUCTS -- 0.63%
200 BALL CORP 9,150
600 *BARNES GROUP, INC 17,475
450 CRANE CO 13,584
700 CROWN CORK & SEAL CO, INC 21,568
31,850 GILLETTE CO 1,538,753
7,400 MASCO CORP 212,750
600 PARKER-HANNIFIN CORP 19,650
200 SNAP-ON, INC 6,962
600 STANLEY WORKS CO 16,650
200 STRUM, RUGER & CO, INC 2,387
------------
1,858,929
------------
FOOD AND KINDRED PRODUCTS -- 2.88%
90 *AGRIBRANDS INTERNATIONAL, INC 2,700
1,900 ANHEUSER BUSCH COS, INC 124,687
3,307 ARCHER DANIELS MIDLAND CO 56,839
6,600 BESTFOODS, INC 351,450
300 BROWN FORMAN, INC (CLASS B) 22,706
2,600 CAMPBELL SOUP CO 143,000
58,800 COCA COLA CO 3,932,250
9,100 COCA COLA ENTERPRISES, INC 325,325
7,800 CONAGRA, INC 245,700
500 DEAN FOODS CO 20,406
3,000 GENERAL MILLS, INC 233,250
4,000 HEINZ (H.J.) CO 226,500
1,300 HERSHEY FOODS CORP 80,843
1,000 *INTERNATIONAL HOME FOODS, INC 16,875
900 *INTERSTATE BAKERIES CORP 23,793
200 *KEEBLER FOODS CO 7,525
2,900 KELLOGG CO 98,962
1,500 LANCASTER COLONY CORP 48,187
32,400 PEPSICO, INC 1,326,375
4,000 QUAKER OATS CO 238,000
7,000 RALSTON PURINA CO 226,625
17,000 SARA LEE CORP 479,187
1,500 *SMITHFIELD FOODS, INC 50,812
2,100 *SUIZA FOODS CORP 106,968
1,100 TOOTSIE ROLL INDUSTRIES, INC 43,037
500 *TRIARC COS, INC 8,000
260 *VLASIC FOODS INTERNATIONAL,
INC 6,191
900 WHITMAN CORP 22,837
1,000 WRIGLEY (WM) JR CO 89,562
------------
8,558,592
------------
FOOD STORES -- 0.42%
1,400 ALBERTSONS, INC 89,162
1,500 AMERICAN STORES CO 55,406
1,500 FOOD LION, INC (CLASS B) 15,093
2,000 *GENERAL NUTRITION COS, INC 32,500
100 GREAT ATLANTIC & PACIFIC
TEA CO, INC 2,962
2,700 *KROGER CO 163,350
13,900 *SAFEWAY, INC 847,031
900 *STARBUCKS CORP 50,512
------------
1,256,016
------------
FURNITURE AND FIXTURES -- 0.09%
100 BUSH INDUSTRIES, INC (CLASS A) 1,243
100 ETHAN ALLEN INTERIORS, INC 4,100
2,000 *FURNITURE BRANDS
INTERNATIONAL, INC 54,500
3,300 HON INDUSTRIES, INC 78,993
100 *KNOLL, INC 2,962
5,100 MILLER (HERMAN), INC 137,062
------------
278,860
------------
FURNITURE AND HOMEFURNISHINGS
STORES -- 0.20%
5,800 *BED BATH & BEYOND, INC 197,925
700 CIRCUIT CITY STORES-
CIRCUIT CITY GROUP 34,956
3,100 *COMPUSA, INC 40,493
400 *GUITAR CENTER, INC 9,850
400 *LINENS N THINGS, INC 15,850
600 *MUSICLAND STORES CORP 8,962
4,300 *PIER 1 IMPORTS, INC 41,656
4,300 TANDY CORP 177,106
800 *TRANS WORLD ENTERTAINMENT
CORP 15,250
1,000 *WILLIAMS-SONOMA, INC 40,312
------------
582,360
------------
GENERAL BUILDING CONTRACTORS -- 0.02%
400 CENTEX CORP 18,025
200 KAUFMAN & BROAD HOME CORP 5,750
1,300 LENNAR CORP 32,825
200 PULTE CORP 5,562
------------
62,162
------------
48 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
GENERAL MERCHANDISE STORES -- 1.51%
125 *99 CENTS ONLY STORES $ 6,141
2,400 CASEYS GENERAL STORES, INC 31,275
1,670 *CONSOLIDATED STORES CORP 33,713
2,500 *COSTCO COS, INC 180,468
7,300 DAYTON HUDSON CORP 396,025
600 DILLARDS, INC (CLASS A) 17,025
500 DOLLAR GENERAL CORP 11,812
2,500 *DOLLAR TREE STORES, INC 109,218
8,000 FAMILY DOLLAR STORES, INC 176,000
1,200 *FEDERATED DEPARTMENT
STORES, INC 52,275
570 *FRED MEYER, INC 34,342
400 HARCOURT GENERAL, INC 21,275
5,800 *KOHLS CORP 356,337
500 MAY DEPARTMENT STORES CO 30,187
500 *NEIMAN-MARCUS GROUP, INC 12,468
1,500 *SAKS, INC 47,343
2,100 SEARS ROEBUCK & CO 89,250
800 *VENATOR GROUP, INC 5,150
35,200 WAL-MART STORES, INC 2,866,600
------------
4,476,904
------------
HEALTH SERVICES -- 0.35%
600 *BEVERLY ENTERPRISES, INC 4,050
200 *CAREMATRIX CORP 6,125
3,700 COLUMBIA/HCA HEALTHCARE
CORP 91,575
1,600 *COVANCE, INC 46,600
400 *CURATIVE HEALTH SERVICES, INC 13,400
735 *ENZO BIOCHEMICAL, INC 7,579
400 *EXPRESS SCRIPTS, INC 26,850
400 *HCR MANOR CARE 11,750
11,750 *HEALTH MANAGEMENT
ASSOCIATES, INC (CLASS A) NEW 254,093
300 HEALTHPLAN SERVICES CORP 3,450
8,748 *HEALTHSOUTH CORP 135,047
2,100 *LINCARE HOLDINGS, INC 85,181
400 *MAGELLAN HEALTH SERVICES, INC 3,350
300 *MARINER POST-ACUTE NETWORK,
INC 1,368
7,700 *MEDPARTNERS, INC 40,425
900 *ORTHODONTIC CENTERS OF
AMERICA, INC 17,493
300 *PEDIATRIX MEDICAL GROUP, INC 17,981
1,800 *PHYCOR, INC 12,262
1,700 *PSS WORLD MEDICAL, INC 39,100
900 *RENAL CARE GROUP, INC 25,931
5,300 *TENET HEALTHCARE CORP 139,125
1,901 *TOTAL RENAL CARE HOLDINGS,
INC 56,198
800 *VENCOR, INC 3,600
------------
1,042,533
------------
HEAVY CONSTRUCTION,
EXCEPT BUILDING -- 0.01%
500 FLUOR CORP 21,281
300 *MASTEC, INC 6,300
------------
27,581
------------
HOLDING AND OTHER INVESTMENT
OFFICES -- 0.08%
1,200 *COUSINS PROPERTIES, INC 38,700
411 FELCOR LODGING TRUST, INC 9,478
700 *GENERAL GROWTH PROPERTIES,
INC 26,512
100 *HEALTH CARE PROPERTY
INVESTORS, INC 3,075
1,600 *MACERICH CO 41,000
700 MERISTAR HOSPITALITY CORP 12,993
737 PATRIOT AMERICAN HOSPITALITY,
INC 4,422
100 STARWOOD FINANCIAL TRUST 6,000
643 STARWOOD HOTELS & RESORTS
TRUST 14,588
800 *TOWN & COUNTRY TRUST 12,850
800 *VENTAS, INC 9,750
1,200 WEINGARTEN REALTY INVESTORS,
INC 53,550
------------
232,918
------------
HOTELS AND OTHER LODGING PLACES -- 0.44%
300 *BRISTOL HOTELS & RESORTS, INC 1,837
60,464 *CENDANT CORP 1,152,595
340 *CRESTLINE CAPITAL CORP 4,972
2,200 *EXTENDED STAY AMERICA, INC 23,100
2,000 HILTON HOTELS CORP 38,250
300 *MERISTAR HOTELS & RESORTS, INC 787
1,895 *PROMUS HOTEL CORP 61,350
600 *VAIL RESORTS, INC 13,200
------------
1,296,091
------------
INDUSTRIAL MACHINERY AND
EQUIPMENT -- 10.92%
8,100 *3COM CORP 362,981
2,600 *ADAPTEC, INC 45,662
1,000 *AMERICAN STANDARD COS, INC 36,000
5,100 *APPLIED MATERIALS, INC 217,706
100 *ASYST TECHNOLOGIES, INC 2,037
3,910 BAKER HUGHES, INC 69,158
300 *BELL & HOWELL CO 11,343
500 BLACK & DECKER CORP 28,031
2,000 *C-CUBE MICROSYSTEMS, INC 54,250
1,300 *CABLETRON SYSTEMS, INC 10,887
400 CASE CORP 8,725
See notes to financial statements 1998 ANNUAL REPORT 49
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
INDUSTRIAL MACHINERY AND
EQUIPMENT -- (Continued)
70,770 *CISCO SYSTEMS, INC $ 6,568,340
42,184 COMPAQ COMPUTER CORP 1,769,091
28,400 *DELL COMPUTER CORP 2,078,525
200 *DIALOGIC CORP 3,931
1,000 DIEBOLD, INC 35,687
1,000 DOVER CORP 36,625
12,600 *EMC CORP 1,071,000
300 *ENCAD, INC 1,087
600 *ETEC SYSTEMS, INC 24,000
400 GRACO, INC 11,800
200 HARNISCHFEGER INDUSTRIES, INC 2,037
12,500 HEWLETT-PACKARD CO 853,906
450 HUSSMANN INTERNATIONAL, INC 8,718
900 INGERSOLL-RAND CO 42,243
300 *INTEGRATED PROCESS
EQUIPMENT CORP 3,225
3,900 INTERNATIONAL BUSINESS
MACHINES CORP 720,525
3,200 *IOMEGA CORP 23,400
600 *KULICHE & SOFFA INDUSTRIES, INC 10,650
2,400 *LEXMARK INTERNATIONAL
GROUP (CLASS A) 241,200
400 *MICROS SYSTEMS, INC 13,150
3,000 MINNESOTA MINING &
MANUFACTURING CO 213,375
1,700 *NOVELLUS SYSTEMS, INC 84,150
1,000 PALL CORP 25,312
800 *PAXAR CORP 7,150
5,200 PITNEY BOWES, INC 343,525
700 *PRESSTEK, INC 4,768
100 *SANDISK CORP 1,412
3,500 *SEAGATE TECHNOLOGY, INC 105,875
900 *SECURITY DYNAMICS
TECHNOLOGIES, INC 20,700
300 *SPLASH TECHNOLOGY HOLDINGS,
INC 2,231
5,500 *STORAGE TECHNOLOGY CORP 195,593
400 *SYMBOL TECHNOLOGIES, INC 25,575
400 TENNANT CO 16,050
500 TENNECO, INC 17,031
300 TIMKEN CO 5,662
190,915 TYCO INTERNATIONAL LTD 14,402,150
71,400 *UNISYS CORP 2,458,837
300 *UNOVA, INC 5,437
3,000 *VARCO INTERNATIONAL, INC 23,250
800 *VISUAL NETWORKS, INC 30,000
------------
32,354,003
------------
INSTRUMENTS AND RELATED
PRODUCTS -- 1.69%
700 *ADAC LABORATORIES, INC 13,971
600 *AFFYMETRIX, INC 14,625
1,800 *ARTERIAL VASCULAR
ENGINEERING, INC 94,500
300 BARD (C.R.), INC 14,850
300 BAUSCH & LOMB, INC 18,000
3,600 BAXTER INTERNATIONAL, INC 231,525
800 BECKMAN COULTER, INC 43,400
4,500 BECTON DICKINSON & CO 192,093
1,200 BIOMET, INC 48,300
5,700 *BOSTON SCIENTIFIC CORP 152,831
900 *COGNEX CORP 18,000
400 *COLE NATIONAL CORP (CLASS A) 6,850
300 *COOPER COS, INC 6,206
30,100 *CYMER, INC 440,212
200 *CYTYC CORP 5,150
1,900 DENTSPLY INTERNATIONAL, INC 48,925
1,600 EASTMAN KODAK CO 115,200
700 *GENRAD, INC 11,025
4,600 GUIDANT CORP 507,150
400 *HOLOGIC, INC 4,850
2,000 HONEYWELL, INC 150,625
600 INVACARE CORP 14,400
7,900 *KLA-TENCOR CORP 342,662
12,984 MEDTRONIC, INC 964,062
2,200 *METTLER-TOLEDO
INTERNATIONAL, INC 61,737
400 MILLIPORE CORP 11,375
300 *MINIMED, INC 31,425
900 *NEOPATH, INC 5,343
500 *OAKLEY, INC 4,718
23 *PANAVISION, INC NEW 284
400 PERKIN-ELMER CORP 39,025
300 POLAROID CORP 5,606
1,300 RAYTHEON CO (CLASS B) 69,225
100 *RESMED, INC 4,537
700 *RESPIRONICS, INC 14,021
200 *SABRATEK CORP 3,275
700 *SEPRACOR, INC 61,687
600 *SOFAMOR DANEK GROUP, INC 73,050
2,100 *ST. JUDE MEDICAL, INC 58,143
900 *STAAR SURGICAL CO 7,031
3,500 *STERIS CORP 99,531
2,500 *SYBRON INTERNATIONAL CORP 67,968
150 TEKTRONIX, INC 4,509
500 *THERMO CARDIOSYSTEMS, INC 5,218
1,100 *THERMO ELECTRON CORP 18,631
600 *VISX, INC 52,462
900 *VIVUS, INC 2,334
400 *WATERS CORP 34,900
6,900 XEROX CORP 814,200
------------
5,009,647
------------
50 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
INSURANCE AGENTS, BROKERS AND
SERVICE -- 0.06%
300 BLANCH (E.W.) HOLDINGS, INC $ 14,231
2,800 *FIRST HEALTH GROUP CORP 46,375
1,950 MARSH & MCLENNAN COS, INC 113,953
------------
174,559
------------
INSURANCE CARRIERS -- 4.82%
200 AETNA, INC 15,725
3,000 AFLAC, INC 132,000
70,000 ALLSTATE CORP 2,703,750
20,675 AMERICAN INTERNATIONAL
GROUP, INC 1,997,721
700 *AMERIN CORP 16,537
900 AON CORP 49,837
52 *BERKSHIRE HATHAWAY, INC
(CLASS B) 123,375
103,200 CAPITAL RE CORP 2,070,450
40,317 CITIGROUP, INC 1,995,691
600 *CMAC INVESTMENT CORP 27,562
3,932 CONSECO, INC 120,171
29,325 EXEL LTD (CLASS A) 2,199,375
880 FIDELITY NATIONAL FINANCIAL,
INC 26,840
2,600 FIRST AMERICAN FINANCIAL CORP 83,525
2,400 *FOUNDATION HEALTH SYSTEMS
(CLASS A) 28,650
900 *HUMANA, INC 16,031
500 LOEWS CORP 49,125
5,100 MGIC INVESTMENT CORP 203,043
1,100 *MID ATLANTIC MEDICAL
SERVICES, INC 10,793
4,700 *OXFORD HEALTH PLANS, INC 69,912
300 *PACIFICARE HEALTH SYSTEMS, INC
(CLASS B) 23,850
100 PROGRESSIVE CORP 16,937
10,850 SUNAMERICA, INC 880,206
400 TRANSAMERICA CORP 46,200
30,900 UNITED HEALTHCARE CORP 1,330,631
800 UNUM CORP 46,700
------------
14,284,637
------------
LEATHER AND LEATHER PRODUCTS -- 0.00%
194 *SAMSONITE CORP 1,079
300 STRIDE RITE CORP 2,625
100 *TIMBERLAND CO 4,556
------------
8,260
------------
LOCAL AND INTERURBAN PASSENGER
TRANSIT -- 0.02%
1,300 *COACH U.S.A., INC 45,093
1,800 LAIDLAW, INC 18,112
------------
63,205
------------
LUMBER AND WOOD PRODUCTS -- 0.03%
1,300 *CHAMPION ENTERPRISES, INC 35,587
500 GEORGIA-PACIFIC CORP
(PACKAGING GROUP) 29,281
900 OAKWOOD HOMES CORP 13,668
------------
78,536
------------
METAL MINING -- 0.06%
2,100 BARRICK GOLD CORP 40,950
1,400 BATTLE MOUNTAIN GOLD CO 5,775
900 *ECHO BAY MINES LTD (U.S.) 1,575
7,500 FREEPORT-MCMORAN COPPER
& GOLD, INC (CLASS B) 78,281
900 INCO LTD CO (U.S.) 9,506
1,000 NEWMONT MINING CORP 18,062
1,200 PLACER DOME, INC 13,800
500 *STILLWATER MINING CO 20,500
------------
188,449
------------
MISCELLANEOUS MANUFACTURING
INDUSTRIES -- 0.05%
900 *BLYTH INDUSTRIES, INC 28,125
500 BRADY CORP (CLASS A) 13,468
1,700 JOSTENS, INC 44,518
3,100 MATTEL, INC 70,718
------------
156,829
------------
MISCELLANEOUS RETAIL -- 0.75%
300 *AMAZON.COM, INC 96,375
600 *BARNES & NOBLE, INC 25,500
600 *BORDERS GROUP, INC 14,962
100 *BRYLANE, INC 2,325
200 *CDW COMPUTER CENTERS, INC 19,187
1,800 *CORPORATE EXPRESS, INC 9,337
6,700 CVS CORP 368,500
800 *GLOBAL DIRECTMAIL CORP 18,700
700 *INSIGHT ENTERPRISES, INC 35,612
400 *LANDS END, INC 10,775
200 LONGS DRUG STORES CORP 7,500
400 *MICHAELS STORES, INC 7,237
800 *MSC INDUSTRIAL DIRECT CO
(CLASS A) 18,100
7,200 *OFFICE DEPOT, INC 265,950
4,600 OMNICARE, INC 159,850
1,500 *PETSMART, INC 16,500
2,000 RITE AID CORP 99,125
7,700 *STAPLES, INC 336,393
1,000 *SUNGLASS HUT INTERNATIONAL,
INC 7,000
287 *U.S. OFFICE PRODUCTS CO 1,112
12,000 WALGREEN CO 702,750
------------
2,222,790
------------
See notes to financial statements 1998 ANNUAL REPORT 51
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
MOTION PICTURES -- 0.58%
55,900 DISNEY (WALT) CO $ 1,677,000
900 *HOLLYWOOD ENTERTAINMENT
CORP 24,525
200 *PIXAR, INC 7,000
------------
1,708,525
------------
NONDEPOSITORY INSTITUTIONS -- 2.19%
500 AAMES FINANCIAL CORP 1,594
10,600 AMERICAN EXPRESS CO 1,083,850
3,200 *AMERICREDIT CORP 44,200
600 *AMRESCO, INC 5,250
68,400 ASSOCIATES FIRST CAPITAL
CORP 2,898,450
1,100 CAPITAL ONE FINANCIAL CORP 126,500
200 *CONTIFINANCIAL CORP 1,425
200 COUNTRYWIDE CREDIT
INDUSTRIES, INC 10,037
1,800 DORAL FINANCIAL CORP 39,825
13,900 FEDERAL NATIONAL MORTGAGE
ASSOCIATION 1,028,600
600 *FIRSTPLUS FINANCIAL GROUP, INC 1,650
15,200 FREDDIE MAC 979,450
3,019 HOUSEHOLD INTERNATIONAL, INC 119,627
500 *IMC MORTGAGE CO 140
600 *IMPERIAL CREDIT INDUSTRIES, INC 5,025
900 METRIS COS, INC 45,281
2,100 SLM HOLDINGS CORP 100,800
200 *SOUTHERN PACIFIC FUNDING CORP 15
------------
6,491,719
------------
OIL AND GAS EXTRACTION -- 1.31%
13,975 DIAMOND OFFSHORE DRILLING,
INC 331,032
2,416 *EEX CORP 16,912
5,400 ENSCO INTERNATIONAL, INC 57,712
1,500 *GLOBAL INDUSTRIES LTD 9,187
2,000 *GREY WOLF, INC 1,625
5,200 HALLIBURTON CO 154,050
2,900 *HARKEN ENERGY CORP 5,618
400 HELMERICH & PAYNE, INC 7,750
42,944 IHC CALAND NV 1,784,882
300 *KEY ENERGY SERVICES, INC 1,406
2,400 *MARINE DRILLING CO, INC 18,450
700 *NOBLE DRILLING CORP 9,056
189,333 *OCEAN ENERGY, INC 1,195,164
900 *ORYX ENERGY CO 12,093
600 *PATTERSON ENERGY, INC 2,437
1,200 *PRIDE INTERNATIONAL, INC 8,475
2,980 *R & B FALCON CORP 22,722
2,600 *ROWAN COS, INC 26,000
600 *SANTA FE ENERGY RESOURCES, INC 4,425
700 SCHLUMBERGER LTD 32,287
600 *SEITEL, INC 7,462
300 *STONE ENERGY CORP 8,625
3,600 TRANSOCEAN OFFSHORE, INC 96,525
1,400 *TUBOSCOPE, INC 11,375
2,600 UNION PACIFIC RESOURCES
GROUP, INC 23,562
500 VASTAR RESOURCES, INC 21,593
600 *VERITAS DGC, INC 7,800
600 *WEATHERFORD INTERNATIONAL 11,625
------------
3,889,850
------------
PAPER AND ALLIED PRODUCTS -- 0.32%
900 AVERY DENNISON CORP 40,556
300 BEMIS, INC 11,381
800 *BUCKEYE TECHNOLOGIES, INC 11,950
500 CHAMPION INTERNATIONAL CORP 20,250
8,900 FORT JAMES CORP 356,000
8,700 KIMBERLY CLARK CORP 474,150
300 MEAD CORP 8,793
600 WILLAMETTE INDUSTRIES, INC 20,100
------------
943,180
------------
PERSONAL SERVICES -- 0.15%
2,100 BLOCK (H&R), INC 94,500
3,300 CINTAS CORP 232,443
200 *EQUITY CORP INTERNATIONAL 5,312
600 REGIS CORP 24,000
2,100 SERVICE CORP INTERNATIONAL 79,931
------------
436,186
------------
PETROLEUM AND COAL PRODUCTS -- 0.06%
400 ASHLAND, INC 19,350
1,000 PENNZENERGY CO 14,812
1,000 *PENNZOIL-QUAKER STATE CO 14,813
1,500 PHILLIPS PETROLEUM CO 63,937
91 TEXACO, INC 4,811
1,609 UNOCAL CORP 46,962
------------
164,685
------------
PRIMARY METAL INDUSTRIES -- 0.05%
800 ALCAN ALUMINIUM CO LTD (U.S.) 21,650
1,000 ALUMINUM CO OF AMERICA 74,562
300 *ARMCO, INC 1,312
600 *BETHLEHEM STEEL CORP 5,025
200 *MAVERICK TUBE CORP 1,112
500 NUCOR CORP 21,625
900 *STEEL DYNAMICS, INC 10,575
500 WORTHINGTON INDUSTRIES, INC 6,250
------------
142,111
------------
PRINTING AND PUBLISHING -- 0.56%
400 AMERICAN GREETINGS CORP
(CLASS A) 16,425
700 *AMERICAN MEDIA, INC (CLASS A) 3,893
100 *APPLIED GRAPHICS TECHNOLOGIES,
INC 1,650
400 *BIG FLOWER HOLDINGS, INC 8,825
200 *CONSOLIDATED GRAPHICS, INC 13,512
500 DELUXE CORP 18,281
200 DONNELLEY (R.R.) & SONS CO 8,762
52 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
PRINTING AND PUBLISHING -- (Continued)
500 DOW JONES & CO, INC $ 24,062
4,600 GANNETT CO, INC 296,700
200 HARLAND (JOHN H.) CO 3,162
800 *JOURNAL REGISTER CO 12,000
200 KNIGHT-RIDDER, INC 10,225
2,000 LEE ENTERPRISES, INC 63,000
600 MCGRAW HILL COS, INC 61,125
800 MEDIA GENERAL, INC (CLASS A) 42,400
300 MEREDITH CORP 11,362
600 MERRILL CORP 11,587
1,000 NEW YORK TIMES CO (CLASS A) 34,687
400 *PETERSEN COS, INC (CLASS A) 13,550
1,400 REYNOLDS & REYNOLDS CO
(CLASS A) 32,112
11,600 TIME WARNER, INC 719,925
500 TIMES MIRROR CO SERIES A 28,000
3,300 TRIBUNE CO 217,800
153 *WORKFLOW MANAGEMENT, INC 1,013
------------
1,654,058
------------
RAILROAD TRANSPORTATION -- 0.05%
500 BURLINGTON NORTHERN
SANTA FE CORP 16,875
2,700 KANSAS CITY SOUTHERN
INDUSTRIES, INC 132,806
------------
149,681
------------
REAL ESTATE -- 0.03%
1,100 *CATELLUS DEVELOPMENT CORP 15,743
1,300 *FAIRFIELD COMMUNITIES, INC 14,381
200 *GRUBB & ELLIS CO 1,612
66 *INSIGNIA FINANCIAL GROUP, INC 800
2,300 STEWART ENTERPRISES, INC
(CLASS A) 51,175
------------
83,711
------------
RUBBER AND MISCELLANEOUS
PLASTIC PRODUCTS -- 0.25%
800 APTARGROUP, INC 22,450
400 COOPER TIRE & RUBBER CO 8,175
200 FIRST BRANDS CORP 7,887
1,200 GOODRICH (B.F.) CO 43,050
400 GOODYEAR TIRE & RUBBER CO 20,175
5,700 ILLINOIS TOOL WORKS, INC 330,600
3,400 NIKE, INC (CLASS B) 137,912
500 *REEBOK INTERNATIONAL LTD 7,437
1,200 RUBBERMAID, INC 37,725
2,300 *SAFESKIN CORP 55,487
321 *SEALED AIR CORP 16,391
960 SOLUTIA, INC 21,480
400 TREDEGAR INDUSTRIES, INC 9,000
1,800 TUPPERWARE CORP 29,587
------------
747,356
------------
SECURITY AND COMMODITY BROKERS -- 0.25%
400 *E TRADE GROUP, INC 18,712
1,300 EATON VANCE CORP 27,137
800 FRANKLIN RESOURCES, INC 25,600
700 JEFFERIES GROUP, INC 34,737
100 MORGAN STANLEY, DEAN WITTER,
& CO 7,100
700 PRICE (T. ROWE) ASSOCIATES, INC 23,975
10,950 SCHWAB (CHARLES) CORP 615,253
45 WADDELL & REED FINANCIAL, INC
(CLASS A) 1,066
195 WADDELL & REED FINANCIAL, INC
(CLASS B) 4,533
------------
758,113
------------
SOCIAL SERVICES -- 0.01%
200 *ALTERNATIVE LIVING
SERVICES, INC 6,850
600 *RES-CARE, INC 14,812
------------
21,662
------------
SPECIAL TRADE CONTRACTORS -- 0.01%
700 *COMFORT SYSTEMS U.S.A., INC 12,512
200 *SERVICE EXPERTS, INC 5,850
------------
18,362
------------
STONE, CLAY, AND GLASS PRODUCTS -- 0.08%
2,400 CORNING, INC 108,000
200 LIBBEY, INC 5,787
1,800 NEWELL COS, INC 74,250
600 OWENS CORNING CO 21,262
700 USG CORP 35,656
------------
244,955
------------
TEXTILE MILL PRODUCTS -- 0.42%
700 INTERFACE, INC (CLASS A) 6,496
38,875 *WESTPOINT STEVENS, INC 1,226,992
------------
1,233,488
------------
TOBACCO PRODUCTS -- 1.13%
300 *CONSOLIDATED CIGAR
HOLDINGS, INC 5,306
600 *GENERAL CIGAR HOLDINGS, INC
(CLASS A) 5,212
61,100 PHILIP MORRIS COS, INC 3,268,850
2,000 UST, INC 69,750
------------
3,349,118
------------
TRANSPORTATION BY AIR -- 0.07%
500 *ATLAS AIR, INC 24,468
2,400 COMAIR HOLDINGS, INC 81,000
560 *FDX CORP 49,840
1,050 SOUTHWEST AIRLINES CO 23,559
600 *U.S. AIRWAYS GROUP, INC 31,200
------------
210,067
------------
See notes to financial statements 1998 ANNUAL REPORT 53
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS GROWTH EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
TRANSPORTATION EQUIPMENT -- 1.22%
7,000 ALLIED SIGNAL, INC $ 310,187
15,160 BOEING CO 494,595
492 DANA CORP 20,110
4,300 DANAHER CORP 233,543
400 EATON CORP 28,275
800 GENERAL DYNAMICS CORP 46,900
27,925 *GENERAL MOTORS CORP
(CLASS H) 1,108,273
4,200 *GULFSTREAM AEROSPACE CORP 223,650
5,700 HARLEY DAVIDSON, INC 270,037
100 *HAYES LEMMERZ
INTERNATIONAL, INC 3,018
1,900 *HOWMET INTERNATIONAL, INC 30,637
900 LOCKHEED MARTIN CORP 76,275
1,000 *MASCOTECH, INC 17,125
3,900 MERITOR AUTOMOTIVE, INC 82,631
300 *NAVISTAR INTERNATIONAL CORP 8,550
300 NORTHROP GRUMMAN CORP 21,937
300 PACCAR, INC 12,337
600 POLARIS INDUSTRIES, INC 23,512
102 *SPX CORP 6,834
3,000 SUNDSTRAND CORP 155,625
200 TRW, INC 11,237
3,900 UNITED TECHNOLOGIES CORP 424,125
------------
3,609,413
------------
TRANSPORTATION SERVICES -- 0.06%
700 C.H. ROBINSON WORLDWIDE, INC 18,156
200 *EAGLE U.S.A. AIRFREIGHT, INC 4,900
3,700 GALILEO INTERNATIONAL, INC 160,950
15 *NAVIGANT INTERNATIONAL, INC 115
------------
184,121
------------
TRUCKING AND WAREHOUSING -- 0.01%
1,300 *SWIFT TRANSPORTATION CO,
INC 36,440
------------
WATER TRANSPORTATION -- 1.06%
64,870 CARNIVAL CORP (CLASS A) 3,113,760
700 TIDEWATER, INC 16,231
------------
3,129,991
------------
WHOLESALE TRADE--DURABLE GOODS -- 0.10%
300 *ACTION PERFORMANCE COS, INC 10,613
200 BRIGGS & STRATTON CORP 9,975
1,400 *BRIGHTPOINT, INC 19,250
600 *CELLSTAR CORP 4,087
900 *CHS ELECTRONICS, INC 15,243
1,800 *FISHER SCIENTIFIC
INTERNATIONAL, INC 35,887
900 GENUINE PARTS CO 30,093
400 *HA-LO INDUSTRIES, INC 15,050
800 IKON OFFICE SOLUTIONS, INC 6,850
2,600 *INGRAM MICRO, INC (CLASS A) 90,675
700 *KENT ELECTRONICS CORP 8,925
1,600 *SAFEGUARD SCIENTIFICS, INC 43,900
300 *WILMAR INDUSTRIES, INC 6,093
------------
296,641
------------
WHOLESALE TRADE--
NONDURABLE GOODS -- 1.71%
2,800 *AIRGAS, INC 25,025
600 *AMERISOURCE HEALTH CORP
(CLASS A) 39,000
100 *BARNETT RESOURCES CORP 2,400
2,000 BERGEN BRUNSWIG CORP
(CLASS A) 69,750
54,285 CARDINAL HEALTH, INC 4,118,874
400 *CENTRAL GARDEN & PET CO 5,750
1,500 DIMON, INC 11,156
400 HUNT CORP 4,250
3,500 MCKESSON CORP NEW 276,718
1,500 *NATIONAL-OILWELL, INC 16,781
300 *NU SKIN ENTERPRISES, INC
(CLASS A) 7,087
273 *PHARMERICA, INC 1,638
127 *SCHOOL SPECIALTY, INC 2,714
600 SUPERVALU, INC 16,800
5,900 SYSCO CORP 161,881
3,200 UNILEVER NV-N.Y. SHS 265,400
1,000 *UNITED STATIONERS, INC 26,000
600 *UNIVERSAL CORP 21,314
------------
5,072,538
------------
TOTAL COMMON STOCK
(Cost $237,017,465) 293,203,369
------------
SHORT TERM INVESTMENT -- 1.78%
U.S. GOVERNMENT AGENCY -- 1.78%
FEDERAL HOME LOAN
MORTGAGE CORP
$5,280,000 4.250%, 01/04/99 5,278,130
------------
TOTAL SHORT TERM INVESTMENT
(Cost $5,278,130) 5,278,130
------------
TOTAL PORTFOLIO
(Cost $242,309,647) $298,497,273
============
- ----------
* Non-income producing
x In bankruptcy
At December 31, 1998, the aggregate cost of portfolio investments for
federal income tax purposes was $243,373,127.
Net unrealized appreciation aggregated $55,124,146, of which $63,405,505
related to appreciated portfolio investments and $8,281,359 related to
depreciated portfolio investments.
54 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
December 31, 1998 Summary by Industry
- -------------------------------------------------------------------
VALUE %
- -------------------------------------------------------------------
PREFERRED STOCK
BUSINESS SERVICES $ 190,978 0.16%
PRINTING AND PUBLISHING 133,995 0.11
TRANSPORTATION EQUIPMENT 228,156 0.19
------------ ------
TOTAL PREFERRED STOCK
(Cost $478,251) 553,129 0.46
------------ ------
COMMON STOCK
AGRICULTURAL PRODUCTION-CROPS 34,732 0.03
AMUSEMENT AND RECREATION
SERVICES 157,333 0.13
APPAREL AND ACCESSORY STORES 171,512 0.14
BUILDING MATERIALS AND
GARDEN SUPPLIES 266,299 0.22
BUSINESS SERVICES 5,328,934 4.49
CHEMICALS AND ALLIED PRODUCTS 10,656,763 8.99
COMMUNICATIONS 19,931,798 16.81
DEPOSITORY INSTITUTIONS 12,938,842 10.91
EATING AND DRINKING PLACES 1,677,946 1.42
ELECTRIC, GAS, AND SANITARY
SERVICES 4,577,663 3.86
ELECTRONIC AND OTHER ELECTRIC
EQUIPMENT 6,344,837 5.35
FABRICATED METAL PRODUCTS 209,318 0.18
FOOD AND KINDRED PRODUCTS 3,649,032 3.08
FOOD STORES 3,597,940 3.03
GENERAL BUILDING CONTRACTORS 216,306 0.18
GENERAL MERCHANDISE STORES 1,095,519 0.92
HEAVY CONSTRUCTION,
EXCEPT BUILDING 3,427,327 2.89
HOLDING AND OTHER
INVESTMENT OFFICES 659,241 0.56
HOTELS AND OTHER LODGING
PLACES 268,072 0.23
INDUSTRIAL MACHINERY AND
EQUIPMENT 2,112,266 1.78
INSTRUMENTS AND RELATED
PRODUCTS 2,266,460 1.91
INSURANCE AGENTS, BROKERS
AND SERVICE 350,755 0.30
INSURANCE CARRIERS 6,723,182 5.67
LOCAL AND INTERURBAN
PASSENGER TRANSIT 302,083 0.25
LUMBER AND WOOD PRODUCTS 127,131 0.11
METAL MINING 422,401 0.36
MISCELLANEOUS RETAIL 270,743 0.23
MOTION PICTURES 176,293 0.15
NONDEPOSITORY INSTITUTIONS 1,374,388 1.16
OIL AND GAS EXTRACTION 1,005,108 0.85
PAPER AND ALLIED PRODUCTS 476,642 0.40
PETROLEUM AND COAL PRODUCTS 3,935,415 3.32
PRIMARY METAL INDUSTRIES 2,929,798 2.47
PRINTING AND PUBLISHING 4,175,357 3.52
RAILROAD TRANSPORTATION 2,653,299 2.24
REAL ESTATE 990,459 0.84
RUBBER AND MISCELLANEOUS
PLASTIC PRODUCTS 476,126 0.40
SECURITY AND COMMODITY BROKERS 398,335 0.34
SPECIAL TRADE CONTRACTORS 161,116 0.14
STONE, CLAY, AND GLASS PRODUCTS 892,265 0.75
TEXTILE MILL PRODUCTS 71,225 0.06
TOBACCO PRODUCTS 760,780 0.64
TRANSPORTATION BY AIR 443,518 0.37
TRANSPORTATION EQUIPMENT 3,743,159 3.16
TRANSPORTATION SERVICES 2,987,616 2.52
TRUCKING AND WAREHOUSING 245,313 0.21
WATER TRANSPORTATION 426,181 0.36
WHOLESALE TRADE-DURABLE
GOODS 198,902 0.17
------------ ------
TOTAL COMMON STOCK
(Cost $104,995,708) 116,305,730 98.10
------------ ------
SHORT TERM INVESTMENT
U.S. GOVERNMENT AGENCY 563,800 0.48
------------ ------
TOTAL SHORT TERM INVESTMENT
(Cost $563,800) 563,800 0.48
------------ ------
TOTAL PORTFOLIO
(Cost $106,037,759) 117,422,659 99.04
OTHER ASSETS & LIABILITIES, NET 1,132,300 0.96
------------ ------
NET ASSETS $118,554,959 100.00%
============ ======
See notes to financial statements 1998 ANNUAL REPORT 55
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
December 31, 1998 Summary by Country (Unaudited)
-----------------------------------------
VALUE %
-----------------------------------------
AUSTRALIA $ 1,895,051 1.61%
AUSTRIA 321,145 0.28
BELGIUM 1,400,099 1.19
DENMARK 1,271,002 1.08
FINLAND 3,732,159 3.18
FRANCE 12,563,852 10.70
GERMANY 9,667,105 8.23
GREECE 2,232,300 1.90
HONG KONG 2,265,487 1.93
IRELAND 1,293,235 1.10
ITALY 5,568,338 4.74
JAPAN 20,021,568 17.05
MALAYSIA 284,460 0.24
NETHERLANDS 8,110,997 6.91
NEW ZEALAND 127,693 0.11
NORWAY 416,262 0.36
PORTUGAL 1,581,777 1.35
SINGAPORE 368,220 0.31
SPAIN 3,135,293 2.67
SWEDEN 2,971,467 2.53
SWITZERLAND 6,554,295 5.58
UNITED KINGDOM 31,077,054 26.47
------------ ------
TOTAL FOREIGN 116,858,859 99.52
TOTAL SHORT TERM 563,800 0.48
------------ ------
TOTAL PORTFOLIO $117,422,659 100.00%
============ ======
56 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
December 31, 1998
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
PREFERRED STOCK -- 0.46%
BUSINESS SERVICES -- 0.16%
400 SAP AG. $ 190,978
------------
PRINTING AND PUBLISHING -- 0.11%
22,000 *NEWS CORP LTD (LTD-VOTE) 133,995
------------
TRANSPORTATION EQUIPMENT -- 0.19%
100 *PORSCHE AG. 228,156
------------
TOTAL PREFERRED STOCK
(Cost $478,251) 553,129
------------
COMMON STOCK -- 98.10%
AGRICULTURAL PRODUCTION--CROPS -- 0.03%
46,000 GOLDEN HOPE PLANTATIONS
BERHAD 34,732
------------
AMUSEMENT AND RECREATION
SERVICES -- 0.13%
8,900 GRANADA GROUP LTD
(CLASS A) 157,333
------------
APPAREL AND ACCESSORY STORES -- 0.14%
2,100 HENNES & MAURITZ AB
SERIES B 171,512
------------
BUILDING MATERIALS AND
GARDEN SUPPLIES -- 0.22%
15,397 CRH PLC 266,299
------------
BUSINESS SERVICES -- 4.49%
200 ADECCO S.A. (BR) 91,301
600 *CAP GEMINI S.A. 96,347
209,500 CORPORATE SERVICES GROUP PLC 528,077
22,000 *EQUANT NV 1,531,648
10,800 GETRONICS NV 535,204
194,700 *LOGICA PLC 1,692,595
7,000 MEITEC CORP 175,004
21,500 RENTOKIL INITIAL PLC 162,045
12,480 RUETERS GROUP PLC 131,022
700 SAP AG. 302,607
16,000 TOKYU CORP 42,128
28,000 WHARF HOLDINGS LTD 40,841
1,400#*WHARF HOLDINGS LTD
WTS 12/31/99 115
------------
5,328,934
------------
CHEMICALS AND ALLIED PRODUCTS -- 8.99%
4,000 AKZO NOBEL NV 182,238
20,100 ASTRA AB SERIES A FREE 410,404
6,300 BASF AG. 240,573
6,700 BAYER AG. 279,783
7,100 BOC GROUP PLC 101,533
15,000 CHUGAI PHARMACEUTICAL CO LTD 150,270
25,000 DAINIPPON INK & CHEMICAL, INC 68,485
5,000 EISAI CO LTD 97,520
12,700 *ELAN CORP PLC ADR 883,443
900 ELF SANOFI S.A. 148,227
38,764 GLAXO WELLCOME PLC 1,333,767
8,300 IMPERIAL CHEMICAL INDUSTRY
PLC 71,947
28,000 KAO CORP 632,996
400 L'AIR LIQUIDE 73,397
700 LOREAL S.A. 506,265
1,900 MERCK & CO KGAA 85,558
33,000 MITSUBISHI CHEMICAL CORP 69,629
813 NOVARTIS AG. (REGD) 1,598,200
500 NOVO NORDISK AS (CLASS B) 65,992
2,700 RHONE-POULENC S.A. (CLASS A) 139,011
14 ROCHE HOLDINGS AG. (BR) 253,552
80 ROCHE HOLDINGS AG.
(GENUSSCHEINE) 976,204
4,000 SANKYO CO LTD 87,591
10,000 SEKISUI CHEMICAL CO LTD 67,377
4,000 SHIN-ETSU CHEMICAL CO LTD 96,456
60,361 SMITHKLINE BEECHAM PLC 843,600
24,000 SUMITOMO CHEMICAL CO LTD 93,619
5,000 TAISHO PHARMACEUTICAL CO LTD 137,858
9,000 TAKEDA CHEMICAL INDUSTRIES LTD 347,084
5,000 YAMANOUCHI PHARMACEUTICAL
CO LTD 161,352
10,400 ZENECA GROUP PLC 452,832
------------
10,656,763
------------
COMMUNICATIONS -- 16.81%
1,700 ALCATEL 208,163
14,900 BRITISH SKY BROADCASTING
GROUP PLC 113,169
70,600 BRITISH TELECOMMUNICATIONS
PLC 1,063,639
83,700 *CABLE & WIRELESS
COMMUNICATIONS PLC 764,537
27,200 CABLE & WIRELESS PLC 334,437
400 CANAL PLUS S.A. 109,201
23,300 DEUTSCHE TELEKOM AG. 766,629
69,600 ERICSSON TELEFON (LM) AB
SERIES B 1,657,236
7,600 FRANCE TELECOM S.A. 604,081
147,083 HONG KONG
TELECOMMUNICATIONS LTD 257,256
5,300 KONINKLIJKE KPN NV 265,471
15,500 MEDIASET S.P.A. 125,970
151 NIPPON TELEGRAPH &
TELEPHONE CORP 1,167,338
15 *NTT MOBILE COMMUNICATIONS 618,368
84,000 *PANAFON HELLENIC TELECOM
GDR 2,232,300
2,900 PORTUGAL TELECOM S.A. 132,967
See notes to financial statements 1998 ANNUAL REPORT 57
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
COMMUNICATIONS -- (Continued)
57,000 SINGAPORE
TELECOMMUNICATIONS LTD $ 87,056
145,200 *SONERA GROUP OYJ 2,580,931
29,300 TELECOM CORP OF NEW ZEALAND 127,693
30,000 TELECOM ITALIA 256,549
257,960 TELECOM ITALIA MOBILE S.P.A. 1,908,622
7,400 TELE DANMARK AS 998,782
13,018 TELEFONICA DE ESPANA S.A. 579,737
31,000 TELEKOM MALAYSIA BERHAD 57,090
79,000 *TELSTRA CORP 369,715
156,716 VODAFONE GROUP PLC 2,544,861
------------
19,931,798
------------
DEPOSITORY INSTITUTIONS -- 10.91%
16,000 ABBEY NATIONAL PLC 342,610
15,145 ABN-AMRO HOLDINGS NV 318,770
8,000 *ALLIED IRISH BANK PLC 143,493
8,400 ARGENTARIA, CAJA POSTAL Y
BCO HIPOTECA 217,868
20,000 ASAHI BANK LTD 73,406
27,500 BANCA COMMERCIALE ITALIANA
S.P.A. 190,138
12,000 *BANCA INTESA S.P.A. 72,161
17,400 BANCO BILBAO VIZCAYA S.A.
(REGD) 273,235
16,875 BANCO CENTRALE
HISPANOAMERICANO S.A. 200,678
2,600 *BANCO COMERCIAL PORTUGUES
S.A. (REGD) 79,937
14,300 BANCO SANTANDER S.A. 284,605
94,000 BANK OF TOKYO MITSUBISHI LTD 975,028
2,633 BANQUE NATIONALE DE PARIS 216,918
16,908 BARCLAYS PLC 364,585
5,900 BAYERISCHE HYPO-UND
VEREINSBANK AG. 462,287
23,500 CHRISTIANIA BANK OG
KREDITKASSE 81,430
28,000 COMMERCE ASSET HOLDINGS
BERHAD 15,160
2,500 CREDIT SUISSE GROUP (REGD) 391,341
5,400 DEUTSCHE BANK AG. 317,899
4,900 DRESDNER BANK AG. 205,941
3,000 *FORENINGSSPARBANKEN AB 77,724
45,000 FUJI BANK LTD 165,962
15,400 HANG SENG BANK LTD 137,659
23,213 HSBC HOLDINGS LTD PLC 587,050
6,202 HSBC HOLDINGS LTD (U.K.) 168,197
20,000 INDUSTRIAL BANK OF JAPAN LTD 92,378
18,000 JOYO BANK 70,533
2,500 *KBC BANCASSURANCE HOLDINGS
NV 197,946
58,770 LLOYDS TSB GROUP PLC 836,031
24,000 MALAYAN BANKING BERHAD 34,033
11,000 MITSUBISHI TRUST & BANKING
CORP 70,897
13,000 MITSUI TRUST & BANKING CO LTD 14,867
20,400 NATIONAL AUSTRALIA BANK LTD 307,808
22,315 OVERSEAS-CHINESE BANKING
CORP LTD (FR) 151,475
1,600 *PARIBAS S.A. 139,119
39,000 RHB CAPITAL BERHAD 15,226
9,241 ROYAL BANK OF SCOTLAND PLC 147,601
50,000 SAKURA BANK LTD 114,808
47,185 *SAN PAOLO-IMI S.P.A. 835,592
36,000 SANWA BANK LTD 277,986
10,000 SHIZUOKA BANK LTD 123,673
4,700 SKANDINAVISKA ENSKILDA
BANKEN SERIES A 49,577
1,400 SOCIETE GENERALE S.A. 226,816
70,000 SUMITOMO BANK LTD 719,878
2,200 SVENSKA HANDELSBANKEN
SERIES A 92,825
17,000 TOKAI BANK LTD 80,481
64,500 UNCREDITO ITALIANO S.P.A. 383,153
4,703 *UNION BANK OF SWITZERLAND
AG. (REGD) 1,444,988
20,000 WESTPAC BANKING CORP 133,957
17,000 YASUDA TRUST & BANKING
CO LTD 13,112
------------
12,938,842
------------
EATING AND DRINKING PLACES -- 1.42%
106,100 COMPASS GROUP PLC 1,215,402
40,644 DIAGEO PLC (CLASS A) 462,544
------------
1,677,946
------------
ELECTRIC, GAS, AND SANITARY SERVICES -- 3.86%
36,200 *CENTRICA PLC 72,877
23,500 CLP HOLDINGS LTD 117,090
600 ELECTRABEL NV 263,734
8,700 ELECTRICIDADE DE PORTUGAL S.A. 191,553
11,700 ENDESA S.A. 310,477
1,600 GAS NATURAL SDG S.A. 174,463
11,300 IBERDROLA S.A. 211,738
8,900 KANSAI ELECTRIC POWER CO, INC 195,284
20,400 NATIONAL GRID GROUP PLC 162,834
11,600 NATIONAL POWER PLC 99,974
35,000 OSAKA GAS CO LTD 120,703
2,100 OESTERREICHISCHE
ELEKTRIZITAETSWIRSCHAFTS AG. 321,145
5,400 RHEIN-WESTFALEN ELECTRIC AG.
(STAMM) 295,852
14,100 SCOTTISH POWER PLC 144,862
1,800 LYONNAISE DES EAUX S.A. 369,924
27,000 TENAGA NASIONAL BERHAD 38,784
13,600 TOKYO ELECTRIC POWER CO, INC 336,392
40,000 TOKYO GAS CO LTD 105,322
58 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
ELECTRIC, GAS, AND SANITARY
SERVICES -- (Continued)
700 TRACTEBEL NV $ 135,913
3,900 UNITED UTILITIES PLC 54,051
4,400 VEBA AG. 263,388
300 VIAG AG. 175,980
1,600 VIVENDI S.A. 415,323
------------
4,577,663
------------
ELECTRONIC AND OTHER ELECTRIC
EQUIPMENT -- 5.35%
7,700 ABB AB SERIES A 82,172
900 ADVANTEST CORP 57,129
500 BARCO INDUSTRIES NV 141,183
5,500 ELECTROLUX AB SERIES B 94,657
24,000 FUJITSU LTD 320,221
12,000 FURUKAWA ELECTRIC CO LTD 40,958
32,600 GENERAL ELECTRIC CO (U.K.) 294,251
26,000 HITACHI LTD 161,352
3,960 KONINKLIJKE PHILIPS
ELECTRONICS NV 265,875
2,700 KYOCERA CORP 142,902
26,000 MATSUSHITA ELECTRIC
INDUSTRIAL CO LTD 460,775
23,000 *MITSUBISHI ELECTRIC CORP 72,386
11,000 MURATA MANUFACTURING CO
LTD 457,371
13,000 NIPPON ELECTRIC CORP 119,861
2,000 NOKIA AB SERIES K 244,900
6,600 *NOKIA OYJ SERIES A 808,170
1,000 ROHM CO 91,226
24,000 SANYO ELECTRIC CO LTD 74,470
11,550 *SGS-THOMSON MICROELECTRONICS
NV 909,773
10,000 SHARP CORP 90,339
17,000 SIRTI S.P.A. 102,795
6,800 SONY CORP 496,148
8,000 SUMITOMO ELECTRIC INDUSTRIES
CO 90,144
13,018 *TELEFONICA DE ESPANA S.A. RTS 11,576
2,000 TOKYO ELECTRON CO LTD 76,065
100,000 TOSHIBA CORP 596,648
4,000 YAMAHA CORP 41,490
------------
6,344,837
------------
FABRICATED METAL PRODUCTS -- 0.18%
30,712 BTR PLC 63,362
11,000 GKN PLC 145,956
------------
209,318
------------
FOOD AND KINDRED PRODUCTS -- 3.08%
7,000 AJINOMOTO CO LTD 74,470
5,000 ASAHI BREWERIES LTD 73,805
12,000 ASSOCIATED BRITISH FOODS PLC 113,504
5,100 BASS PLC 74,247
300 BONGRAIN S.A. 134,264
12,900 CADBURY SCHWEPPES LTD 219,995
7,154 COCA COLA AMATIL LTD 26,678
7,004 *COCA COLA BEVERAGE 12,892
600 DANONE GROUP 171,857
300 ERIDANIA BEGHIN-SAY S.A. 51,933
61,000 GUINESS ANCHOR BERHAD 42,913
1,900 HEINEKEN NV 114,404
13,000 KIRIN BREWERY CO LTD 165,962
600 LVMH MOET HENNESSY
LOUIS VUITTON 118,796
460 NESTLE S.A. (REGD) 1,001,396
2,100 PERNOD-RICARD S.A. 136,465
12,200 SCOTTISH & NEWCASTLE PLC 141,682
36,500 UNILEVER LTD 409,311
6,600 UNILEVER NV CERT 564,458
------------
3,649,032
------------
FOOD STORES -- 3.03%
1,700 CARREFOUR SUPERMARCHE S.A. 1,283,976
800 *CASINO GUICHARD-PERRACHON
S.A. 83,351
2,000 DELHAIZE FRERES NV 176,987
4,000 ITO-YOKADO CO LTD 280,149
32,289 KONINKLIJKE AHOLD NV 1,194,061
200 PROMODES S.A. 145,506
14,344 SAFEWAY PLC 72,073
17,345 SAINSBURY (J) PLC 139,026
78,200 TESCO PLC 222,811
------------
3,597,940
------------
GENERAL BUILDING CONTRACTORS -- 0.18%
10,000 DAIWA HOUSE INDUSTRY CO LTD 106,651
13,000 OBAYASHI CORP 62,466
1,700 SKANSKA AB SERIES B FREE 47,189
------------
216,306
------------
GENERAL MERCHANDISE STORES -- 0.92%
10,000 DAIEI, INC 27,217
3,000 JUSCO CO LTD 60,773
16,600 KINGFISHER PLC 179,662
31,300 MARKS & SPENCER PLC 214,687
5,000 MARUI CO LTD 96,412
2,880 METRO AG. 229,981
1,500 PINAULT-PRINTEMPS-REDOUTE S.A. 286,787
------------
1,095,519
------------
HEAVY CONSTRUCTION,
EXCEPT BUILDING -- 2.89%
20,000 *BRISA-AUTO ESTRADAS DE
PORTUGAL S.A. 1,177,317
9,735 EIFFAGE 772,211
6,410 GROUPE GTM 665,556
17,000 KAJIMA CORP 44,460
See notes to financial statements 1998 ANNUAL REPORT 59
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
HEAVY CONSTRUCTION,
EXCEPT BUILDING -- (Continued)
16,250 SOCIETE GENERALE
D'ENTERPRISES S.A. $ 762,172
11,000#*UNITED ENGINEERING
BERHAD 5,611
------------
3,427,327
------------
HOLDING AND OTHER INVESTMENT
OFFICES -- 0.56%
12,386 *ALLIED ZURICH PLC 184,749
1,700 *DROTT AB SERIES B 15,625
48,000 HUTCHINSON WHAMPOA LTD 339,226
13,000 SUMITOMO CORP 63,388
107,600 *UNIONE IMMOBILIARE S.P.A. 56,253
------------
659,241
------------
HOTELS AND OTHER LODGING PLACES -- 0.23%
600 ACCOR S.A. 129,967
58,000 HONG KONG & SHANGHAI
HOTELS LTD 41,177
17,900 LADBROKE GROUP PLC 71,923
31,000 RESORTS WORLD BERHAD 25,005
------------
268,072
------------
INDUSTRIAL MACHINERY AND EQUIPMENT -- 1.78%
2,800 FANUC LTD 96,066
29,000 KEPPEL CORP 77,686
73,000 KOMATSU LTD 383,778
6,000 MAKITA CORP 66,969
25,000 MINEBEA CO LTD 286,798
49,000 MITSUBISHI HEAVY INDUSTRIES
LTD 191,140
3,000 NIDEC CORP 367,829
23,000 NTN TOYO BEARING CO LTD 74,221
4,000 OMRON CORP 54,895
5,000 SIDEL S.A. 424,274
5,000 TOYODA AUTOMATIC LOOM
WORKS LTD 88,610
------------
2,112,266
------------
INSTRUMENTS AND RELATED PRODUCTS -- 1.91%
7,000 CANON, INC 149,871
14,000 CITIZEN WATCH CO LTD 84,399
6,000 FUJI PHOTO FILM CO LTD 223,410
2,000 KEYENCE CORP 246,460
4,000 NIKON CORP 39,008
25,000 OLYMPUS OPTICAL CO LTD 287,907
313,300 SIEBE PLC 1,235,405
------------
2,266,460
------------
INSURANCE AGENTS, BROKERS
AND SERVICE -- 0.30%
962 FORTIS AG. 348,645
462 *FORTIS AG. CVG 2,084
462 *FORTIS AG. NPV (STRIP VVPR) 26
------------
350,755
------------
INSURANCE CARRIERS -- 5.67%
500 AACHENER & MUNCHENER
BETEIL (REGD) 73,550
5,200 AEGON NV 638,962
2,547 ALLIANZ AG. (REGD) 934,370
11,000 *AMP LTD 139,493
11,860 ASSICURAZIONI GENERALI S.P.A. 496,297
12,205 AXA 1,769,788
14,700 CGU PLC 230,148
107,600 INSTITUTO NAZIONALE DELLE
ASSICURAZION 284,857
14,200 LEGAL & GENERAL GROUP PLC 184,400
12,000 MITSUI TAISHO MARINE &
FIRE CO LTD 63,299
1,000 MUENCHENER RUECKVER AG.
(REGD) 484,532
22,000 PRUDENTIAL CORP PLC 332,177
14,997 ROYAL & SUN ALLIANCE
INSURANCE GROUP PLC 122,451
90 SCHWEIZERISCHE
RUCKVERSICHERUNG (REGD) 234,651
5,000 SKANDIA FORSAKRINGS AB 76,490
11,000 SUMITOMO MARINE & FIRE
INSURANCE CO 69,824
12,000 TOKIO MARINE & FIRE
INSURANCE CO LTD 143,621
600 *ZURICH ALLIED AG. 444,272
------------
6,723,182
------------
LOCAL AND INTERURBAN PASSENGER
TRANSIT -- 0.25%
54 EAST JAPAN RAILWAY CO 302,083
------------
LUMBER AND WOOD PRODUCTS -- 0.11%
12,000 SEKISUI HOUSE LTD 127,131
------------
METAL MINING -- 0.36%
29,074 NORTH LTD 47,435
8,800 RIO TINTO LTD 104,469
8,000 RIO TINTO LTD PLC (REGD) 93,039
13,300 SMITH (HOWARD) LTD 88,070
1,100 UNION MINIERE GROUP S.A. 41,883
15,742 WMC LTD 47,505
------------
422,401
------------
MISCELLANEOUS RETAIL -- 0.23%
9,400 BOOTS CO LTD 160,072
10,500 GREAT UNIVERSAL STORES PLC 110,671
------------
270,743
------------
MOTION PICTURES -- 0.15%
18,335 RANK GROUP PLC 70,620
770 TOHO CO LTD 105,673
------------
176,293
------------
60 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
NONDEPOSITORY INSTITUTIONS -- 1.16%
18,700 HALIFAX PLC $ 265,394
9,121 ING GROEP NV 556,494
3,750 SCHROEDERS LTD 68,444
1,500 SHOHKOH FUND & CO 484,056
------------
1,374,388
------------
OIL AND GAS EXTRACTION -- 0.85%
8,600 IHC CALAND NV 357,442
14,500 LONDON & SCOTTISH MARINE
OIL PLC 24,125
21,000 *PETROLEUM GEO-SERVICES AS 267,366
1,200 TECHNIP S.A. 112,996
2,400 TOTAL S.A. 243,179
------------
1,005,108
------------
PAPER AND ALLIED PRODUCTS -- 0.40%
17,000 NIPPON PAPER INDUSTRIES CO 77,466
6,900 NORD-EST S.A. 185,284
5,300 SCA AB SERIES B 115,735
3,500 UPM-KYMMENE OY 98,157
------------
476,642
------------
PETROLEUM AND COAL PRODUCTS -- 3.32%
45,052 BG PLC 284,276
62,115 BRITISH PETROLEUM PLC 927,538
27,934 BROKEN HILL PROPRIETARY
CO LTD 205,929
27,000 COSMO OIL CO LTD 40,932
3,000 ELF AQUITANE S.A. 346,938
86,900 ENTE NAZIONALE IDROCARBURI
S.P.A. 569,182
47,000 JAPAN ENERGY CORP 44,584
2,000 NORSK HYDRO AS 67,465
200 PETROFINA S.A. 91,695
4,100 REPSOL S.A. 219,046
21,700 ROYAL DUTCH PETROLEUM CO 1,081,145
21,100 SANTOS LTD 56,685
------------
3,935,415
------------
PRIMARY METAL INDUSTRIES -- 2.47%
26,900 BRITISH STEEL PLC 39,833
39,000 KAWASAKI STEEL CORP 58,432
22,950 MANNESMANN AG. 2,631,873
59,000 NIPPON STEEL CORP 107,228
41,000 SUMITOMO METAL INDUSTRIES
LTD 46,889
4,100 USINOR 45,543
------------
2,929,798
------------
PRINTING AND PUBLISHING -- 3.52%
10,000 DAI NIPPON PRINTING CO LTD 159,756
8,400 ELSEVIER UTIGEVERSMIJ NV 117,719
20,418 NEWS CORP LTD 135,004
170,400 PEARSON PLC 3,382,291
8,500 *REED INTERNATIONAL PLC 66,468
8,000 TOPPAN PRINTING CO LTD 97,875
1,010 WOLTERS KLUWER NV 216,244
------------
4,175,357
------------
RAILROAD TRANSPORTATION -- 2.24%
17,000 KINKI NIPPON RAILWAY CO LTD 91,181
34,000 NANKAI ELECTRIC RAILWAY CO 171,511
91,460 RAILTRACK GROUP PLC 2,390,607
------------
2,653,299
------------
REAL ESTATE -- 0.84%
19,000 CHEUNG KONG HOLDINGS LTD 136,729
12,000 CITY DEVELOPMENT LTD 52,001
2,075,000 *GUANGZHOU INVESTMENT
CO LTD 206,240
11,000 MITSUBISHI ESTATE CO LTD 98,788
9,000 MITSUI FUDOSAN CO LTD 68,220
19,000 NEW WORLD DEVELOPMENT
CO LTD 47,824
52,194 SUN HUNG KAI PROPERTIES LTD 380,657
------------
990,459
------------
RUBBER AND MISCELLANEOUS
PLASTIC PRODUCTS -- 0.40%
700 ADIDAS SALOMON AG. 76,072
10,000 BRIDGESTONE CORP 227,400
1,514 MICHELIN S.A. (CLASS B) 60,576
34,900 PIRELLI S.P.A. 112,078
------------
476,126
------------
SECURITY AND COMMODITY BROKERS -- 0.34%
14,000 DAIWA SECURITIES CO LTD 47,909
14,000 MITSUBISHI CORP 80,676
17,000 MITSUI & CO LTD 95,100
20,000 NOMURA SECURITIES CO LTD 174,650
------------
398,335
------------
SPECIAL TRADE CONTRACTORS -- 0.14%
5,000 KINDEN CORP 76,154
1,400 SCHNEIDER S.A. 84,962
------------
161,116
------------
STONE, CLAY, AND GLASS PRODUCTS -- 0.75%
15,000 ASAHI GLASS CO LTD 93,221
11,020 BLUE CIRCLE INDUSTRIES PLC 56,839
34,900 CSR LTD 85,410
22,600 HANSON PLC 179,454
100 HOLDERBANK FINANCIERE
GLARUS AG. (BR) 118,385
2,000 HOYA CORP 97,520
800 LAFARGE S.A. (BR) 76,047
63,000 MALAYAN CEMENT BERHAD 15,895
1,200 ST. GOBAIN S.A. 169,494
------------
892,265
------------
See notes to financial statements 1998 ANNUAL REPORT 61
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS INTERNATIONAL EQUITY FUND
- -------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------
TEXTILE MILL PRODUCTS -- 0.06%
26,000 MITSUBISHI RAYON CO LTD $ 71,225
------------
TOBACCO PRODUCTS -- 0.64%
12,386 BRITISH AMERICAN TOBACCO PLC 108,912
25,800 TABACALERA S.A. SERIES A (REGD) 651,868
------------
760,780
------------
TRANSPORTATION BY AIR -- 0.37%
7,900 BRITISH AIRPORT AUTHORITIES PLC 92,205
9,984 BRITISH AIRWAYS PLC 67,318
44,000 CATHAY PACIFIC AIRWAYS LTD 43,732
5,000 DEUTSCHE LUFTHANSA AG. (REGD) 110,475
22,000 *JAPAN AIRLINES CO LTD 58,122
16,000 SWIRE PACIFIC LTD (CLASS A) 71,666
------------
443,518
------------
TRANSPORTATION EQUIPMENT -- 3.16%
14,581 BRITISH AEROSPACE PLC 123,604
6,432 *DAIMLERCHRYSLER AG. 635,273
8,000 DENSO CORP 148,231
50,200 FIAT S.P.A. 174,761
11,000 HONDA MOTOR CO LTD 361,801
23,000 NISSAN MOTOR CO LTD 70,551
900 PEUGEOT S.A. 139,366
26,346 ROLLS ROYCE LTD 109,147
5,700 SIEMENS AG. 367,902
45,000 TOYOTA MOTOR CORP 1,224,768
3,850 VOLKSWAGEN AG. 307,440
3,500 VOLVO AB SERIES B FREE 80,315
------------
3,743,159
------------
TRANSPORTATION SERVICES -- 2.52%
266,000 AIRTOURS PLC 1,699,471
56,100 NATIONAL EXPRESS GROUP PLC 1,041,664
335,000 *ROAD KING INFRASTRUCTURE
LTD 246,481
------------
2,987,616
------------
TRUCKING AND WAREHOUSING -- 0.21%
13,000 SEINO TRANSPORTATION CO LTD 74,452
5,300 TNT POST GROUP NV 170,861
------------
245,313
------------
WATER TRANSPORTATION -- 0.36%
15 DAMPSKIBSSELSKABET AF 1912
(CLASS B) 104,881
10 DAMPSKIBSSELSKABET
SVENDBORG (CLASS B) 101,345
35,000 NIPPON YUSEN KABUSHIKI KAISHA 110,774
9,236 PENINSULAR & ORIENTAL STEAM
NAVIGATION CO 109,181
------------
426,181
------------
WHOLESALE TRADE--DURABLE GOODS -- 0.17%
1,750,000 *LERADO GROUP HOLDINGS
CO LTD 198,902
------------
TOTAL COMMON STOCK
(Cost $104,995,708) 116,305,730
------------
SHORT TERM INVESTMENT -- 0.48%
U.S. GOVERNMENT AGENCY -- 0.48%
FEDERAL HOME LOAN
MORTGAGE CORP
$564,000 4.250%, 01/04/99 563,800
------------
TOTAL SHORT TERM INVESTMENT
(Cost $563,800) 563,800
------------
TOTAL PORTFOLIO
(Cost $106,037,759) $117,422,659
============
- ----------
* Non-income producing
# Restricted Securities-Investment in securities not registered under the
Securities Act of 1933 or not publicly traded in foreign markets. At
December 31, 1998, the value of these securities amounted to $5,726 or
0.00% of net assets.
Additional information on each restricted security is as follows:
ACQUISITION ACQUISTION
SECURITY DATE COST
- ---------- -------------- --------------
United Engineering Berhad 07/24/97 $ 79,442
Wharf Holdings Ltd Wts 12/31/99 06/19/98 0
--------
$ 79,442
========
At December 31, 1998, the aggregate cost of portfolio investments for
federal income tax purposes was $106,819,540.
Net unrealized appreciation aggregated $10,603,119, of which $19,406,652
related to appreciated portfolio investments and $8,803,533 related to
depreciated portfolio investments.
62 1998 ANNUAL REPORT See notes to financial statements
<PAGE>
TIAA-CREF Mutual Funds STATEMENT OF INVESTMENTS MANAGED ALLOCATION FUND
December 31, 1998
- -------------------------------------------------------------------
SHARES/
PRINCIPAL VALUE %
- -------------------------------------------------------------------
TIAA-CREF MUTUAL FUNDS -- 99.77%
6,163,010 BOND PLUS FUND $ 63,479,004 38.97%
2,886,719 GROWTH & INCOME
FUND 38,479,969 23.63
2,906,440 GROWTH EQUITY FUND 39,672,902 24.36
1,805,014 INTERNATIONAL EQUITY
FUND 19,024,845 11.68
1,840,704 MONEY MARKET FUND 1,840,704 1.13
------------ ------
162,497,424 99.77
------------ ------
TOTAL TIAA-CREF
MUTUAL FUNDS
(Cost $145,025,547) 162,497,424 99.77
------------ ------
SHORT TERM INVESTMENT -- 0.16%
U.S. GOVERNMENT AGENCY -- 0.16%
FEDERAL HOME LOAN
MORTGAGE CORP
$263,000 4.250%, 01/04/99 262,907 0.16
------------ ------
TOTAL SHORT TERM
INVESTMENT
(Cost $262,907) 262,907 0.16
------------ ------
TOTAL PORTFOLIO
(Cost $145,288,454) 162,760,331 99.93
OTHER ASSETS &
LIABILITIES, NET 106,644 0.07
------------ ------
NET ASSETS $162,866,975 100.00%
============ ======
- ----------
The cost of investments for federal income tax purposes is substantially the
same as the amount disclosed above.
See notes to financial statements 1998 ANNUAL REPORT 63
<PAGE>
IMPORTANT TAX INFORMATION (unaudited)
The following TIAA-CREF Mutual Funds paid distributions which were designated as
being from net long-term capital gains realized by the Funds during 1998:
Amount Amount per share
------ ----------------
Bond Plus Fund $22,692 $0.002
Growth & Income Fund $434,363 $0.025
Growth Equity Fund $1,305,183 $0.061
Managed Allocation Fund $6,863 $0.001
The following TIAA-CREF Mutual Funds paid distributions during 1998 from
ordinary income that partially qualify for the corporate dividends received
deduction. The percentage that qualifies is noted below:
Growth & Income Fund 68.1%
Growth Equity Fund 100.0%
Managed Allocation Fund 8.1%
The International Equity Fund received income from foreign sources during 1998
of $1,424,599 ($0.128 per share) and paid taxes to foreign countries during 1998
of $174,306 ($0.016 per share)
By early 1999, shareholders should have received their Form 1099-DIV and tax
information letter from the Funds. For your specific situation, we recommend
that you consult a professional tax advisor.
64 1998 ANNUAL REPORT
<PAGE>
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TIAA-CREF Mutual Funds shareholders can check fund performance, check their
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For questions about retirement saving and planning, quarterly and annuity
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Visit our World Wide Web site: www.tiaa-cref.org
Through our Inter/ACT system at TIAA-CREF's World Wide Web site, you can also
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