Prospectus
TIAA-CREF Life Funds
Growth Equity Fund
Growth & Income Fund
International Equity Fund
Stock Index Fund
Social Choice Equity Fund
April 3, 2000
This prospectus contains important information about the TIAA-CREF Life Funds,
funds available only through the purchase of a variable annuity or other
variable insurance contract issued by TIAA-CREF Life Insurance Company
(TIAA-CREF Life). Please read this prospectus, along with the prospectus
describing the contract, before investing and keep both prospectuses for future
reference.
The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. Any representation
to the contrary is a criminal offense.
[LOGO: TIAA CREF]
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Table of Contents
3 SUMMARY INFORMATION
3 INVESTMENT OBJECTIVES, STRATEGIES AND RISKS
3 Dual Investment Management Strategy[SM]
4 General Risks of Investing in the Funds
5 Growth Equity Fund
6 Growth & Income Fund
7 International Equity Fund
8 Stock Index Fund
9 Social Choice Equity Fund
10 PAST PERFORMANCE
10 MORE INFORMATION ABOUT THE FUNDS
11 FUNDS USING THE DUAL INVESTMENT MANAGEMENT STRATEGY[SM]
12 Growth Equity Fund
13 Growth & Income Fund
14 International Equity Fund
15 OTHER FUNDS
15 Stock Index Fund
16 Social Choice Equity Fund
18 ADDITIONAL INVESTMENT STRATEGIES
18 FUND MANAGEMENT
19 Prior Performance of Investment Adviser
22 PRICING OF FUND SHARES
22 OFFERING, PURCHASING AND REDEEMING SHARES
23 DIVIDENDS, DISTRIBUTIONS AND TAXES
24 GENERAL MATTERS
24 Voting Rights
24 Electronic Prospectuses
24 Householding
25 FINANCIAL HIGHLIGHTS
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Summary Information
Investment Objectives, Strategies and Risks
TIAA-CREF Life Funds consists of five different investment portfolios (funds):
Growth Equity Fund
Growth & Income Fund
International Equity Fund
Stock Index Fund
Social Choice Equity Fund
Dual Investment Management Strategy[SM]
Three of the funds (the Growth Equity Fund, the Growth & Income Fund, and the
International Equity Fund) use TIAA-CREF's Dual Investment Management
Strategy,[SM] with each having a "stock selection" and an "enhanced index"
segment.
o The stock selection segment holds a relatively small number of stocks that
the fund management team believes offer superior returns. These stocks are
chosen using fundamental analysis.
o The enhanced index segment seeks to outperform the fund's benchmark index
while limiting the possibility of significantly underperforming the
benchmark. The fund management team attempts to outperform the benchmark
index by over- or under-weighting many stocks in the index by small
amounts, based on proprietary scoring models.
The Dual Investment Management Strategy gives fund managers the flexibility to
allocate amounts between the two segments, based on the investment
opportunities that the fund management team determines to be available at a
particular time. This approach enables the funds to stay fully invested even
when the fund management team can't find sufficient investment opportunities
for the stock selection segment.
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General Risks of Investing in the Funds
You can lose money in any of these funds, or the funds could underperform other
investments. In particular, the funds are subject to the following general
risks:
o Market Risk--Stock and bond prices in general can decline over short or
extended periods as a result of political or economic events.
o Interest Rate Risk--Bond or stock prices may decline or a fund's income may
fall if interest rates change.
o Company Risk--A company's current earnings can fall or its overall financial
soundness may decline. As a result, the price of its securities may go
down, or the company may not be able to pay principal and interest on its
bonds when due.
o Foreign Investment Risk--The value of a fund's foreign investments could be
reduced by, among other things, changes in currency exchange rates, the
possible imposition of market controls or currency exchange controls, lower
liquidity and higher volatility in some foreign markets and/or political,
social or diplomatic events.
Special additional risks associated with particular funds are discussed in the
following fund summaries and elsewhere in this prospectus.
An investment in TIAA-CREF Life Funds is not a deposit of any bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
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Growth Equity Fund
<TABLE>
<S> <C>
Investment The fund seeks a favorable long-term return, mainly through capital
objective appreciation, primarily from a diversified portfolio of common stocks
that present the opportunity for exceptional growth.
Principal The fund invests in stocks of companies in new and emerging areas of
investment the economy and companies with distinctive products or promising
strategies market conditions, using the Dual Investment Management Strategy.
For its stock selection segment, the fund looks primarily for companies
that we believe have the potential for strong earnings or sales growth,
or that appear to be undervalued based on current earnings, assets or
growth prospects. It can also invest in companies to benefit from
prospective acquisitions, reorganizations, or corporate restructurings
or other special situations. Foreign investments may range from 0% to
40% of the fund's portfolio. The benchmark index for the fund is the
Russell 3000[RegTM] Growth Index. (Russell 3000 is a trademark and a
service mark of the Frank Russell Company.)
Special The fund may sometimes hold a significant amount of stocks of smaller,
investment lesser-known companies whose stock prices may fluctuate more than
risks those of larger companies. This means the fund will probably be more
volatile than the overall stock market.
Who may The fund may be appropriate for investors who are looking for long-term
want to capital appreciation, but who are willing to tolerate fluctuations in
invest value. The risk of investing in the fund relative to the potential rewards
is moderate to high.
</TABLE>
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<TABLE>
Growth & Income Fund
<S> <C>
Investment The fund seeks a favorable long-term return through capital appreciation
objective and investment income.
Principal The fund invests in a broadly diversified portfolio of common stocks
investment selected for their investment potential, using the Dual Investment
strategies Management Strategy. For its stock selection segment, the fund management
team looks primarily for stocks of larger, well-established, mature
growth companies that we believe are attractively priced, show the
potential to grow faster than the rest of the market, and offer a growing
stream of dividend income. The fund may also invest in rapidly growing
smaller companies and may have up to 20% of its assets in foreign securities.
Normally, at least 80% of the fund's assets will be income-producing equity
securities selected for their investment potential. The benchmark index for
the fund is the Standard & Poor's 500 ("S&P 500") Index.
Special Stocks paying relatively high dividends may significantly underperform
investment other stocks during periods of rapid market appreciation.
risks
Who may The fund may be appropriate for investors who want capital appreciation
want to and income-producing investments but who also can accept the risk of
invest market fluctuations. The risk of investing in the fund relative to its
potential rewards is moderate.
</TABLE>
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International Equity Fund
<TABLE>
<S> <C>
Investment The fund seeks favorable long-term returns, mainly through capital
objective appreciation.
Principal The fund invests in a broadly diversified portfolio of primarily foreign
investment equity investments, using the Dual Investment Management Strategy.
strategies For the fund's stock selection segment, we concentrate on individual
stocks rather than on geographic regions, sectors, or industries. We look
for companies of all sizes that have certain characteristics such as
sustainable growth, consistent cash flow and attractive stock prices based
on current earnings, assets and long-term growth prospects. The bench-mark
index for the fund is the Morgan Stanley Capital International ("MSCI")
EAFE[RegTM] (Europe, Australasia, Far East) Index.
Special Foreign investment risk is the most important risk of investing in this
investment fund. Changes in currency exchange rates, the possible imposition of
risks market controls, currency exchange controls, or foreign taxes, lower
liquidity and higher volatility in some foreign markets and/or political,
social or diplomatic events could reduce the value of the fund's investments.
These risks may be even more pronounced for the fund's investments in
emerging market countries.
Who may The fund may be appropriate for investors who seek above-average long-term
want to returns, understand the advantages of diversification across international
invest markets and are willing to tolerate the greater risks of international
investing. The risk of investing in the fund relative to the potential
rewards is moderate to high.
</TABLE>
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Stock Index Fund
<TABLE>
<S> <C>
Investment The fund seeks a favorable long-term rate of return from a diversified
objective portfolio selected to track the overall market for common stocks publicly
traded in the U.S., as represented by a broad stock market index.
Principal The fund is designed to track U.S. equity markets as a whole and invests
investment in stocks in the Russell 3000[RegTM] Index. The fund uses a sampling
strategies approach to create a portfolio that closely matches the overall investment
characteristics (for example, yield and industry weight) of the index
without actually investing in all 3,000 stocks in the index.
Special While the fund attempts to closely track the Russell 3000[RegTM] Index, it
investment does not invest in all 3,000 stocks in the index. Thus there is no guarantee
risks that the performance of the fund will match that of the index.
Who may The fund may be appropriate for investors who seek a fund that tracks
want to the return of a broad U.S. equity market index. The risk of investing in
invest the fund relative to its potential rewards is moderate.
</TABLE>
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Social Choice Equity Fund
<TABLE>
<S> <C>
Investment The fund seeks a favorable long-term rate of return that tracks the
objective investment performance of the U.S. stock market while giving special
consideration to certain social criteria.
Principal The fund invests primarily in a diversified set of common stocks. The
investment fund attempts to track the return of the U.S. stock market as represented
strategies by the S&P 500 Index, while investing only in companies whose activities
are consistent with the fund's social criteria. It does this primarily
by investing in S&P 500 companies that are not excluded by the fund's
social criteria, so that the fund's portfolio approaches the overall
investment characteristics (e.g., yield and industry weight) of the S&P 500.
Special Because its social criteria exclude some investments, this fund may not
investment be able to take advantage of the same opportunities or market trends as do
risks the funds that don't use such criteria.
Who may The fund may be appropriate for investors who seek an equity investment
want to that is generally broad-based but excludes companies that engage in
invest certain activities. The risk of investing in the fund relative to its
potential rewards is moderate.
</TABLE>
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Past Performance
The following bar chart and table help illustrate the risks of investing in
the Stock Index Fund and how investment performance varies. (Since the other
funds are new, their performance is not presented here.) The bar chart shows
the Stock Index Fund's performance since it was first available publicly on
January 4, 1999, and below the chart we note the Stock Index Fund's best and
worst returns for a calendar quarter since January 4, 1999. The performance
table shows the fund's returns, and how those returns compare to those of a
broad-based securities market index. Keep in mind that the fund's past
performance does not indicate how it will perform in the future.
[begin graphic]
<TABLE>
<S> <C>
1999 21.20%
</TABLE>
Best Quarter: 4th 15.86%; Worst Quarter: 3rd -6.39%
[end graphic]
Cumulative Rates of
Total Return for period ended 12/31/99
1 year (since launch - 1/4/99)
<TABLE>
<S> <C>
Stock Index Fund 21.20%
Russell 3000[RegTM] Index 20.90%
</TABLE>
No performance data for the other funds of the TIAA-CREF Life Funds is included
in this prospectus because none of those funds have been in operation for one
full calendar year. Performance information for other funds managed by the
investment advisory personnel who manage TIAA-CREF Life Funds is provided on
page 21 of this prospectus.
More Information About the Funds
This section provides more information about each fund's investment objective,
the principal investment strategies and techniques each fund uses to accomplish
its objective, and the principal types of securities each fund purchases. These
policies and techniques are not fundamental and may be changed by TIAA-CREF
Life Funds' board of trustees without shareholder approval. However, we'll
notify you of any significant changes. For a complete listing of the funds'
policies and restrictions, see the Statement of Additional Information ("SAI").
We can't guarantee that any fund will meet its investment objective.
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Funds Using the Dual Investment
Management Strategy[SM]
The Growth Equity Fund, the Growth & Income Fund, and the International Equity
Fund use TIAA-CREF's Dual Investment Management Strategy[SM], which works like
this:
Each of these three funds has two separate segments called the "stock
selection" segment and the "enhanced index" segment. The relative sizes of
these two segments vary as the fund management team shifts money between them
in response to investment opportunities.
The stock selection segment holds a relatively small number of stocks that the
fund management team believes offer superior returns. The managers of these
equity funds will usually use fundamental analysis to select individual stocks
or sectors for investment in the stock selection segment. Each fund's stock
selection segment is described further below.
Money that is not invested in a fund's stock selection segment goes to its
enhanced index segment. Here the goal is two-fold: (1) to outperform each
fund's benchmark index and (2) to limit the possibility of significantly
underperforming that benchmark. The funds' managers attempt to outperform the
benchmark indexes by over- or under-weighting many stocks in the index by small
amounts, based on proprietary stock scoring models. In other words, a fund will
hold more or less of some stocks than does its benchmark index. The managers
attempt to control the risk of underperforming the benchmarks by maintaining
the same overall financial characteristics (such as volatility, dividend yield
and industry weights) as the benchmarks.
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The Dual Investment Management Strategy enables the funds to stay fully
invested even when the fund management team can't find sufficient investment
opportunities for the stock selection segment.
The benchmarks for each fund's enhanced index segment currently are as follows:
<TABLE>
<S> <C>
Fund Benchmark
- --------------------------- ------------------------------------------------------
Growth Equity Fund Russell 3000[RegTM] Growth Index
Growth & Income Fund S&P 500[RegTM] Index
International Equity Fund MSCI EAFE[RegTM] (Europe, Australasia, Far East) Index
</TABLE>
Using these benchmarks is not a fundamental policy of any of the TIAA-CREF Life
Funds, so we can substitute other benchmark indices without shareholder
approval. We'll notify you before we make such a change.
Growth Equity Fund
The Growth Equity Fund seeks a favorable long-term return, mainly through
capital appreciation, primarily from a diversified portfolio of common stocks
that present the opportunity for exceptional growth. Normally, the fund will
have at least 80% of its assets in equity securities that have the potential
for capital appreciation.
The fund uses the Dual Investment Management Strategy. The fund's stock
selection segment can invest in companies of all sizes, including companies in
new and emerging areas of the economy and companies with distinctive products
or promising markets. We choose individual investments based on a company's
prospects under current or forecasted economic, financial and market
conditions, looking for companies we believe have the potential for strong
earnings or sales growth, or that appear to be undervalued based on current
earnings, assets, or growth prospects.
The fund can also invest in large, well-known, established companies,
particularly when we believe they have new or innovative products, services, or
processes that enhance future earnings prospects. The fund can also invest in
companies in order to benefit from prospective acquisitions, reorganizations,
or corporate restructurings or other special situations.
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The Growth Equity Fund can buy foreign securities and other instruments if we
believe they have superior investment potential. Depending on investment
opportunities, the fund may have up to 40% of its assets in foreign securities.
The securities will be those traded on foreign exchanges or in other foreign
markets and may be denominated in foreign currencies or other units of account.
Special Investment Risks: The fund is subject to the general investment risks
described on page 4, including the risks of foreign investments. In addition,
there are special risks to investing in growth stocks. The fund may at times
hold a significant amount of stocks of smaller, lesser-known companies. Their
stock prices may fluctuate more than those of larger companies because smaller
companies may depend on narrow product lines, have limited track records, lack
depth of management, or have thinly-traded securities. Also, stocks of
companies involved in reorganizations and other special situations can often
involve more risk than ordinary securities. Accordingly, the Growth Equity Fund
will probably be more volatile than the overall stock market, and it could
significantly outperform or underperform the stock market during any particular
period.
Growth & Income Fund
The Growth & Income Fund seeks a favorable long-term return through capital
appreciation and investment income, primarily from a broadly diversified
portfolio of common stocks. Normally, at least 80% of the fund's assets will be
income-producing equity securities selected for their investment potential.
The fund invests in a broadly diversified portfolio of common stocks, using the
Dual Investment Management Strategy. The fund's stock selection segment
concentrates on individual companies rather than sectors or industries. We look
for stocks of larger, well-established companies that we believe are
attractively priced, show the potential to grow faster than the rest of the
market, and offer a growing stream of dividend income. In particular, we look
for companies that are leaders in their industries. We also look for companies
with shareholder-oriented managements dedicated to creating shareholder value.
The fund may also invest in rapidly growing smaller companies. It can have up
to 20% of its assets in foreign securities.
Special Investment Risks: The fund is subject to the general investment risks
described on page 4, including the risks of foreign investments. In addition,
stocks paying relatively high dividends may at times significantly underperform
other stocks during periods of rapid market appreciation.
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International Equity Fund
The International Equity Fund seeks a favorable long-term return, mainly
through capital appreciation from a broadly diversified portfolio that consists
primarily of foreign equity investments. The fund intends to always have at
least 80% of its assets in equity securities of companies located in at least
three different countries, other than the United States.
The fund uses the Dual Investment Management Strategy. The fund may invest in
companies of all sizes. For the fund's stock selection segment, we concentrate
on individual stocks rather than on geographic regions, sectors, or industries.
We do, however, regularly monitor the the fund's sector and country exposure in
order to control risk.
In particular, we look for companies of all sizes that have certain
characteristics, such as:
o sustainable growth
o focused management with successful track records
o unique and easy-to-understand franchises (brands)
o stock prices that do not fully reflect the inherent value of the security
based on the company's current earnings, assets, and long-term growth
prospects
o consistent generation of free cash flow
Special Investment Risks: The fund is subject to the general investment risks
described on page 4, especially the risks of foreign investments. In
particular, investing in securities traded on foreign exchanges or in foreign
markets can involve risks beyond those of domestic investing. These include:
(1) changes in currency exchange rates; (2) possible imposition of market
controls or currency exchange controls; (3) possible imposition of withholding
taxes on dividends and interest; (4) possible seizure, expropriation, or
nationalization of assets; (5) more limited foreign financial information or
difficulty in interpreting it because of foreign regulations and accounting
standards; (6) the lower liquidity and higher volatility in some foreign
markets; (7) the impact of political, social, or diplomatic events; (8) the
difficulty of evaluating some foreign economic trends; or (9) the possibility
that a foreign government could restrict an issuer from paying principal and
interest to investors outside the country. Brokerage commissions and
transaction costs are often higher for foreign investments, and it may be
harder to use foreign laws and courts to enforce financial or legal
obligations.
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The risks noted above often increase in countries with emerging markets. For
example, these countries may have more unstable governments than developed
countries, and their economies may be based on only a few industries. Because
their securities markets may be very small, share prices may be volatile. In
addition, foreign investors are subject to a variety of special restrictions in
many emerging countries. The fund will focus its investments primarily in those
countries which are included in the MSCI EAFE Index.
Other Funds
Stock Index Fund
The Stock Index Fund seeks a favorable long-term rate of return from a
diversified portfolio selected to track the overall market for common stocks
publicly traded in the U.S., as represented by the Russell 3000[RegTM], a broad
market index.
Although the fund invests in stocks in the Russell 3000 Index, it doesn't
invest in all 3,000 stocks in the index. Rather, we use a sampling approach to
create a portfolio that closely matches the overall investment characteristics
(for example, yield and industry weight) of the index. This means that a
company can remain in the fund even if it performs poorly, unless the company
is removed from the Russell 3000.
Using the Russell 3000 Index isn't fundamental to the fund's investment
objective and policies. We can change the index used in this fund at any time
and will notify you if we do so.
The fund can also invest in securities and other instruments, such as futures,
whose return depends on stock market prices. We select these instruments to
attempt to match the total return of the Russell 3000 but may not always do so.
The Russell 3000 Index is an unmanaged index of stocks of the 3,000 largest
publicly traded U.S. companies, based on market capitalization. Russell 3000
companies represent about 98% of the total market capitalization of the
publicly traded U.S. equity market. The market
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capitalization of the individual companies in the index ranged from $178
million to $407 billion with an average of $5.34 billion as of December 31,
1999. The Frank Russell Company determines the composition of the index based
only on market capitalization and can change its composition at any time. The
Russell 3000 Index is not a mutual fund and you cannot invest directly in the
index.
Special Investment Risks: The fund is subject to the general investment risks
described on page 4, although it does not have foreign investment risk. In
addition, while the fund attempts to closely track the Russell 3000 Index and
changes are made to its holdings to reflect changes in the index, the fund does
not invest in all 3,000 stocks in the index. Thus, there is no guarantee that
the performance of the fund will match that of the index. Also, because the
index's returns aren't reduced by investment and other operating expenses, the
fund's ability to match the index will be adversely affected by the costs of
buying and selling stocks as well as other expenses. The stock prices of
smaller, lesser-known companies, which make up a small portion of the index,
may fluctuate more than those of larger companies because smaller companies may
depend on narrow product lines, have limited track records, lack depth of
management, or have thinly-traded securities.
Social Choice Equity Fund
The Social Choice Equity Fund seeks a favorable long-term rate of return that
reflects the investment performance of the U.S. stock market while giving
special consideration to certain social criteria. Normally, at least 80% of the
fund's assets will be invested in common stocks.
The fund attempts to track the return of the U.S. stock market as represented
by the Standard & Poor's 500 Index. It does this primarily by investing in S&P
500 companies that are not excluded by the fund's social criteria, so that the
fund's portfolio approaches the overall investment characteristics (e.g., yield
and industry weight) of the S&P 500.
The social criteria the fund takes into consideration are non-fundamental
investment policies. They can change without the approval of the fund's
shareholders. Currently, the fund invests only in companies that do not:
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o engage in activities that result or are likely to result in significant
damage to the natural environment;
o have a significant portion of its business in weapons manufacturing;
o produce and market alcoholic beverages or tobacco products;
o produce nuclear energy; or
o have operations in Northern Ireland and have not adopted the MacBride
Principles (a fair employment code for U.S. firms operating in Northern
Ireland) or have not operated consistently with such principles and in
compliance with the Fair Employment Act of 1989 (Northern Ireland).
For the first three criteria, we examine the company to decide whether the
activity is a "significant" part of its business--basing our decision on, for
example, how large a part of a company's operation the activity involves or how
much revenue it brings in. In determining whether a particular activity is
significant to a company, we do not rely on strict objective criteria, but
rather make judgments based on the facts and circumstances pertaining to the
company.
The TIAA-CREF Life Funds board of trustees receives guidance from Teachers
Advisors, Inc. (Advisors), the fund investment adviser, in deciding whether
investments meet the social criteria. Advisors uses information from
independent organizations such as the Investor Responsibility Research Center,
Inc., as well as from information compiled by the affiliated TIAA-CREF
Corporate Governance and Social Responsibility Committees. We'll do our best to
make sure the fund's investments meet the social criteria, but we can't
guarantee that every holding will always do so. Even if an investment is not
excluded by the social criteria, we have the option of excluding it if we
decide it is not suitable.
The fund isn't restricted from investing in any securities issued or guaranteed
by the U.S. government or its agencies or instrumentalities. The fund can also
invest in securities issued by other countries or their agencies and
instrumentalities, as approved by the TIAA-CREF Life Funds' board of trustees.
The fund can also invest up to 15% of its assets in foreign securities.
Special Investment Risks: The fund is subject to the general investment risks
described on page 4. In addition, because its social criteria exclude some
investments, this fund may not be able to take advantage of the same
opportunities or market trends as do the funds that don't use such criteria.
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Additional Investment Strategies
While the funds invest primarily in common stocks, each fund can also invest,
to a limited extent, in other equity securities such as preferred stock,
convertible securities, and warrants. Each fund can also hold short-term debt
securities and other money market or short-term instruments, including those
denominated in foreign currencies. These help the funds maintain liquidity, use
cash balances effectively, and take advantage of attractive investment
opportunities. The funds can also hold fixed-income securities they acquire
because of mergers, recapitalizations, or otherwise.
Similarly, each fund may also buy and sell options, futures contracts, and
options on futures. We intend to use options and futures primarily for hedging
or for cash management. To manage currency risk, the funds can also enter into
forward currency contracts, and buy or sell options and futures on foreign
currencies.
The funds can also invest in newly developed financial instruments, such as
equity swaps (including arrangements where the return is linked to a stock
market index) and equity-linked fixed-income securities, so long as these are
consistent with a fund's investment objective and restrictions.
Fund Management
Teachers Advisors, Inc. (Advisors) manages the TIAA-CREF Life Funds' assets,
under the supervision of the board of trustees of TIAA-CREF Life Funds, and is
a wholly-owned indirect subsidiary of Teachers Insurance and Annuity
Association of America (TIAA). Advisors is registered with the Securities and
Exchange Commission (SEC) under the Investment Advisers Act of 1940. The
specialized portfolio management teams of Advisors who manage the funds also
manage the investments of TIAA Separate Account VA-1, TIAA-CREF Mutual Funds,
and
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TIAA-CREF Institutional Mutual Funds, and, through an affiliated investment
adviser, TIAA-CREF Investment Management, LLC (Investment Management), the
investment accounts of the College Retirement Equities Fund (CREF). Advisors is
located at 730 Third Avenue, New York, New York 10017.
Under its investment management agreement with TIAA-CREF Life Funds, Advisors
is entitled to an annual fee based on a percentage of the average daily net
assets of each fund. Advisors has voluntarily agreed to waive a portion of its
management fee for each fund. The waivers are contractual and will remain in
effect until April 1, 2003. The management fees with and without the waivers
are as follows:
<TABLE>
<CAPTION>
Management Current Management
Fees (before waiver) Waiver Fees (after waiver)
---------------------- ---------- --------------------
<S> <C> <C> <C>
Growth Equity Fund 0.46% 0.21% 0.25%
Growth & Income Fund 0.44% 0.21% 0.23%
International Equity Fund 0.53% 0.24% 0.29%
Stock Index Fund 0.30% 0.23% 0.07%
Social Choice Equity Fund 0.39% 0.21% 0.18%
</TABLE>
Advisors' duties include conducting research, recommending investments, and
placing orders to buy and sell securities. Advisors is also responsible for
providing or obtaining at its own expense the services necessary to operate the
TIAA-CREF Life Funds on a day-to-day basis. These include custodial,
administrative, portfolio accounting, dividend disbursing, auditing, and
ordinary legal services.
The funds are managed by Advisors through specialized portfolio management
teams whose members are jointly responsible for the day-to-day management of
the funds.
Prior Performance of Investment Adviser
The TIAA-CREF Life Funds have a limited performance record. To illustrate the
experience of Advisors' personnel in managing investment portfolios comparable
to the TIAA-CREF Life Funds, we are providing you, in the charts below, with
historical performance for portfolios managed by the same specialized portfolio
management teams that manage the TIAA-CREF Life Funds, with investment
objectives, policies, strategies and risks that are substantially the same as
those of the TIAA-CREF Life Funds. The performance of an appropriate
broad-based
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securities market index, adjusted to reflect the reinvestment of dividends on
securities in the index, is also presented for each fund. The portfolios
presented are:
o the TIAA-CREF Mutual Funds' Growth Equity Fund, Growth & Income Fund, and
International Equity Fund, mutual funds managed by Advisors;
o the Stock Index Account of TIAA Separate Account VA-1, a variable annuity
managed account managed by Advisors; and
o the Growth Account and Equity Index Account of CREF, variable annuity managed
accounts managed by the same portfolio management teams in their capacities
with Investment Management.
(We have not included the performance of the TIAA-CREF Institutional Mutual
Funds in the chart, since its portfolios, some of which are substantially
similar to the TIAA-CREF Life Funds, have not been in operation for a full
year. Also note that, except for the unseasoned Institutional Social Choice
Equity Fund, there is no investment portfolio managed by Advisors' personnel
that is substantially similar to TIAA-CREF Life Fund's Social Choice Equity
Fund.)
The historical performance results presented below are net of investment
management and other operating expenses of the portfolios, including any
applicable waivers. We have included in parenthesis, next to each portfolio,
the annual expense ratios (net of any waivers) for each portfolio, as of
December 31, 1999. (Note that CREF deducts its expenses at cost, and the
expenses quoted below have varied over time.) The expenses for the CREF and
TIAA Separate Account VA-1 accounts include certain administrative and
mortality expenses that, for insurance contract holders indirectly investing in
the TIAA-CREF Life Funds, would be deducted at the contract level and not the
fund level. (The investment management component of the expenses for these
accounts were as follows: CREF Growth Account-0.11%; CREF Equity Index
Account-0.06%; TIAA Separate Account VA-1 Stock Index Account-0.07%.) A
contract holders' actual returns on its indirect investment in the TIAA-CREF
Life Funds will be lower once contract level expenses are deducted. For
example, the TIAA-CREF Life Personal Annuity Select variable annuity contract
deducts an additional 0.30% from fund returns.
20
<PAGE>
The historical performance information presented doesn't represent the
performance of the similarly-named funds described in this prospectus, nor is
the information intended to predict or suggest the returns that the
corresponding fund of TIAA-CREF Life Funds might experience. Please do not
confuse the funds with the other portfolios using very similar or nearly
identical names.
<TABLE>
<CAPTION>
5 years
1 year ended Inception to Inception of
Average Annual ended Dec. Dec. 31, 10 years ended Dec. 31, Account/
Total Return Expenses 31, 1999 1999 Dec. 31, 1999 1999 Fund
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Accounts/Funds similar to:
Growth Equity Fund (0.25%)
- --------------------------------------------------------------------------------------------------------------
Growth Equity Fund of 33.00% N/A N/A 33.36% Sept. 2, 1997
TIAA-CREF Mutual Funds (0.45%)
- --------------------------------------------------------------------------------------------------------------
Russell 3000 Growth Index 33.82% N/A N/A 32.01% Sept. 2, 1997
- --------------------------------------------------------------------------------------------------------------
Growth Account of CREF (0.34%) 32.52% 30.86% N/A 27.74% Apr. 29, 1994
- --------------------------------------------------------------------------------------------------------------
Russell 3000 Growth Index 33.82% 31.10% N/A 28.40% Apr. 29, 1994
- --------------------------------------------------------------------------------------------------------------
Accounts/Funds similar to:
Growth & Income Fund (0.23%)
- --------------------------------------------------------------------------------------------------------------
Growth & Income Fund of 24.46% N/A N/A 27.45% Sept 2, 1997
TIAA-CREF Mutual Funds (0.43%)
- --------------------------------------------------------------------------------------------------------------
S&P 500 Index 21.04% N/A N/A 25.20% Sept. 2, 1997
- --------------------------------------------------------------------------------------------------------------
Accounts/Funds similar to:
International Equity Fund (0.29%)
- --------------------------------------------------------------------------------------------------------------
International Equity Fund of 55.83% N/A N/A 29.16% Sept. 2, 1997
TIAA-CREF Mutual Funds (0.49%)
- --------------------------------------------------------------------------------------------------------------
MSCI EAFE Index 26.97% N/A N/A 18.41% Sept. 2, 1997
- --------------------------------------------------------------------------------------------------------------
Accounts/Funds similar to:
Stock Index Fund (0.07%)
- --------------------------------------------------------------------------------------------------------------
Stock Index Account TIAA 20.21% 26.47% N/A 24.96% Nov. 1, 1994
Separate Account VA-1 (0.37%)
- --------------------------------------------------------------------------------------------------------------
Russell 3000 Index 20.90% 26.94% N/A 25.42% Nov. 1, 1994
- --------------------------------------------------------------------------------------------------------------
Equity Index Account of (0.30%) 20.82% 26.64% N/A 23.82% Apr. 29, 1994
CREF
- --------------------------------------------------------------------------------------------------------------
Russell 3000 Index 20.90% 26.94% N/A 24.12% Apr. 29, 1994
- --------------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
Pricing of Fund Shares
We determine the net asset value (NAV) per share (share price) of a fund on
each day the New York Stock Exchange is open for business, when trading closes
on all U.S. national exchanges where securities or other investments of the
fund are principally traded. We will not price fund shares on days that the New
York Stock Exchange is closed. We compute the fund's NAV by dividing the value
of a fund's assets, less its liabilities, by the number of outstanding shares
of that fund.
We usually use market quotations or independent pricing services to value
securities and other instruments held by the funds. If market quotations or
independent pricing services aren't readily available, we'll use a security's
"fair value", as determined in good faith by or under the direction of the
TIAA-CREF Life Funds' board of trustees. Money market instruments with
maturities of sixty days or less are valued at amortized cost. We also may use
fair value if events materially affecting the value of an investment (as
determined in our sole discretion) occur between the time when its price is
determined and the time the fund's net asset value is calculated.
Offering, Purchasing and Redeeming Shares
Shares of the TIAA-CREF Life Funds are not sold directly to you, but rather are
sold in a continuous offering to TIAA-CREF Life separate accounts to fund
variable annuity or other insurance contracts. Your premiums under the
contracts are placed in the appropriate investment account of the separate
account, and the assets of the investment account are invested in the shares of
the TIAA-CREF Life Funds. The separate account purchases and redeems shares of
the appropriate fund for net asset value without sales or redemption charges.
For each day on which the TIAA-CREF Life Funds' net asset value is calculated,
the separate account transmits to the fund any orders to purchase or redeem
shares of the fund based on the purchase payments, redemption requests, death
benefits, contract charges, and transfer requests from contractowners and
beneficiaries that have been processed on that day. The
22
<PAGE>
separate account purchases and redeems shares of a fund at the fund's net asset
value per share calculated as of that same day.
For more information about investing in the TIAA-CREF Life Funds, see the
prospectus describing the contract, which can be obtained by calling us
toll-free at 800 842-2733, extension 5509.
Dividends, Distributions and Taxes
The tax status of your investment depends upon your variable insurance
contract. For a complete discussion of the tax status of your contract, please
refer to the prospectus describing the contract.
Shares in the funds may only be held through a variable annuity or other
variable insurance contract. Under current tax law, any dividend or capital
gains distributions from the fund will be exempt from current taxation if left
to accumulate within your variable contract. Withdrawals from your contract may
be taxed as ordinary income. You may also be subject to a 10% penalty tax if a
withdrawal is made before age 59-1/2.
The funds expect to declare and distribute to its shareholders (i.e., any
separate accounts) substantially all of their net investment income and net
realized capital gains. Normally, each of the funds will distribute dividends
and capital gains annually. In addition, each fund may occasionally be required
to make supplemental dividend or capital gains distributions at some other time
during the year.
All dividend and capital gains distributions from a fund will be automatically
reinvested by the separate account in additional shares of the fund.
Each fund intends to qualify for taxation as a "regulated investment company"
under the Internal Revenue Code so that it will not be subject to federal
income tax to the extent its
23
<PAGE>
income and net capital gains are distributed to shareholders. In addition, the
funds intend to qualify under the Internal Revenue Code with respect to the
diversification requirements related to the tax-deferred status of insurance
company separate accounts.
General Matters
Voting Rights
We don't plan to hold annual shareholder meetings. However, we may hold special
meetings to elect trustees, change fundamental policies, approve a management
agreement, or for other purposes. Each share (including fractional shares) is
entitled to one vote for each dollar of net asset value represented by that
share on all matters to which shareholders are entitled to vote. You should
refer to the SAI, as well as the separate prospectus describing your contract
and the separate account, which accompanies this prospectus, for more
information on your voting rights.
Electronic Prospectuses
If you received this or the contract prospectus electronically and would like
paper copies, please call 800 842-2733, extension 5509, and we will send paper
copies to you.
Householding
To lower costs and eliminate duplicate documents sent to your home, we may
begin mailing only one copy of this and the contract prospectus, prospectus
supplements, annual and semi-annual reports, or any other required documents,
to your household, even if more than one participant lives there. If you would
prefer to continue receiving your own copy of any of these documents, you may
call us toll-free at 800 842-2733, extension 5509, or write us.
24
<PAGE>
Financial Highlights
Presented below is a financial highlights table for the Stock Index Fund. Since
the other funds have limited operating history, we have not included financial
highlights here for them, although financial statements for those funds are in
the SAI, which is available free upon request.
The following financial highlights table is intended to help you understand the
Stock Index Fund's financial performance since it began operations. Certain
information reflect financial results for a single fund share. Total returns
for each period include the reinvestment of all dividends and distributions.
The information has been derived from the financial statements audited by Ernst
& Young LLP, independent auditors, whose report--along with the Stock Index
Fund's financial statements--is included in the TIAA-CREF Life Funds' most
recent annual report. It is available without charge upon request.
<TABLE>
<CAPTION>
December 1, 1998
Year (commencement of
Ended operations) to
December 31, 1999 December 31, 1998(1)
------------------- ---------------------
<S> <C> <C>
Selected Per Share Data:
Net asset value, beginning of period $ 26.05 $ 25.00
Gain from investment operations:
Net investment income 0.26 0.05
Net realized and unrealized gain on investments 5.26 1.05
------- -------
Total gains from investment operations 5.52 1.10
------- -------
Distributions:
From net investment income (0.26) 0.05
From net realized gains (0.20) --
------- -------
Total distributions (0.46) (0.05)
------- -------
Net asset value, end of period $ 31.11 $ 26.05
======= =======
TOTAL RETURN 21.20% 4.41%
RATIOS AND SUPPLEMENTAL DATA
Net assets at end of period (in thousands) $54,341 $26,212
Ratio of expenses to average net assets before 0.30% 0.03%
expense waiver
Ratio of expenses to average net assets after 0.07% 0.01%
expense waiver
Ratio of net investment income to average net assets 1.28% 0.22%
Portfolio turnover rate 14.22% 0.00%
</TABLE>
(1) The percentages shown for this period are not annualized.
25
<PAGE>
For more information about TIAA-CREF Life Funds
The following documents contain more information about the funds and are
available free upon request:
Statement of Additional Information ("SAI"). The SAI contains more information
about all aspects of the funds. A current SAI has been filed with the U.S.
Securities and Exchange Commission ("SEC") and is incorporated in this
prospectus by reference.
Annual and Semi-Annual Reports. The TIAA-CREF Life Funds' annual and
semi-annual reports provide additional information about the funds'
investments. In the annual report, you will find a discussion of the market
conditions and investment strategies that significantly affected each fund's
performance during the last fiscal year.
Requesting Documents. You can request a copy of the SAI or these reports
without charge in any of the following ways:
By telephone: Call 800-842-2733, extension 5509
In writing: TIAA-CREF Life Funds
730 Third Avenue
New York, NY 10017-3206
Information about TIAA-CREF Life Funds (including the SAI) can be reviewed and
copied at the SEC's public reference room (1-800-SEC-0330) in Washington, D.C.
The reports and other information are also available through the SEC's internet
website at www.sec.gov. Copies of the information can also be obtained, upon
payment of a duplicating fee, by writing the SEC's Public Reference Section,
Washington, D.C. 20549-0102.
If you have any questions about the TIAA-CREF Life Funds or your variable
contract, please call us at 800 223-1200.
April 3, 2000
SEC File Nos. 333-61759, 811-08961
<PAGE>
TIAA-CREF LIFE FUNDS
Growth Equity Fund
Growth & Income Fund
International Equity Fund
Stock Index Fund
Social Choice Equity Fund
STATEMENT OF ADDITIONAL INFORMATION
April 3, 2000
This Statement of Additional Information (SAI) is not a prospectus, although it
should be read carefully in conjunction with the TIAA-CREF Life Funds'
prospectus dated April 3, 2000 (the prospectus). A copy of the prospectus may be
obtained by writing us at TIAA-CREF Life Funds, 730 Third Avenue, New York, New
York 10017-3206 or by calling 800 842-2733, extension 5509. Terms used in the
prospectus are incorporated in this SAI. Certain financial information included
in the TIAA-CREF Life Funds' annual report, including management's discussion of
fund performance, is incorporated by reference into this SAI. You can request a
copy of the report without charge by calling 1 800-842-2733, extension 5509.
[LOGO: TIAA CREF]
<PAGE>
Table of Contents
<TABLE>
<CAPTION>
Item Page
- -------------------------------------------------------------------
<S> <C>
INVESTMENT POLICIES, STRATEGIES AND RESTRICTIONS .......... B-3
MANAGEMENT OF THE FUND .................................... B-11
PRINCIPAL HOLDERS OF SECURITIES ........................... B-12
INVESTMENT ADVISORY AND OTHER SERVICES .................... B-12
FUND HISTORY AND DESCRIPTION OF THE FUND .................. B-13
VALUATION OF ASSETS ....................................... B-13
BROKERAGE ALLOCATION ...................................... B-14
PERFORMANCE INFORMATION ................................... B-15
TAX STATUS ................................................ B-17
UNDERWRITERS .............................................. B-18
LEGAL MATTERS ............................................. B-18
EXPERTS ................................................... B-18
OTHER INFORMATION ......................................... B-18
FINANCIAL STATEMENTS ...................................... B-18
INDEX TO AUDITED FINANCIAL STATEMENTS ..................... B-19
</TABLE>
B-2
<PAGE>
Investment Policies, Strategies and Restrictions
The following information is intended to supplement the description of the
investment objective and policies of each fund in the prospectus. Under the
Investment Company Act of 1940, as amended (the 1940 Act), a fund's fundamental
policies may not be changed without the vote of a majority of the fund's
outstanding voting securities (as defined in the 1940 Act). The non-fundamental
investment restrictions contained in "Non-Principal Investment Strategies and
Risk Considerations" below, may be changed by the TIAA-CREF Life Funds' board of
trustees at any time.
Fundamental Policies
The following restrictions are fundamental policies of each fund:
1. The fund will not issue senior securities except as SEC regulations permit;
2. The fund will not borrow money, except: (a) it may purchase securities on
margin, as described in restriction 8 below; and (b) from banks (only in
amounts not in excess of 33-1/3% of the market value of the fund's assets at
the time of borrowing), and, from other sources, for temporary purposes
(only in amounts not exceeding 5%, or such greater amount as may be
permitted by law, of the fund's total assets taken at market value at the
time of borrowing);
3. The fund will not underwrite the securities of other companies, except to
the extent that it may be deemed an underwriter in connection with the
disposition of securities from its portfolio;
4. The fund will not, with respect to at least 75% of the value of its total
assets, invest more than 5% of its total assets in the securities of any one
issuer, other than securities issued or guaranteed by the United States
Government, its agencies or instrumentalities;
5. The fund will not invest in an industry if after giving effect to that
investment the fund's holding in that industry would exceed 25% of its total
assets; however, this restriction does not apply to investments in
obligations issued or guaranteed by the United States Government, its
agencies or instrumentalities;
6. The fund will not purchase real estate or mortgages directly;
7. The fund will not purchase commodities or commodities contracts, except to
the extent financial contracts (such as futures) are purchased as
described herein; and
8. The fund will not purchase any security on margin except that the fund may
obtain such short-term credit as may be necessary for the clearance of
purchases and sales of portfolio securities).
The following restriction is a fundamental policy of each fund (other than the
Stock Index Fund):
9. The fund will not lend any security or make any other loan if, as a result,
more than 33-1/3% of its total assets would be lent to other parties, but
this limit does not apply to repurchase agreements.
The following restriction is a fundamental policy of the Stock Index Fund:
10. The fund will not make loans, except: (a) that the fund may make loans of
portfolio securities not exceeding 33-1/3% of the value of its total
assets, which are collateralized by either cash, United States Government
securities, or other means permitted by applicable law, equal to at least
the market value of the loaned securities, as reviewed daily; (b) loans
through entry into repurchase agreements; (c) privately-placed debt
securities may be purchased; (d) participation interests in loans, and
similar investments, may be purchased; or (e) through an interfund loan
program with affiliated investment companies, to the extent permitted by
applicable SEC regulations.
If a percentage restriction is adhered to at the time of investment, a later
increase or decrease in percentage beyond the specified limit resulting from a
change of values of portfolio securities will not be considered a violation.
Non-Principal Investment Strategies and Risks
General
The funds, in addition to stocks, can hold other types of securities with equity
characteristics, such as bonds convertible into common stock, warrants,
preferred stock, and depository receipts for such securities. These securities
are generally subject to the same types of market and financial risks that are
described in the prospectus.
When market conditions warrant, the funds can hold debt securities, including
those that it acquires because of mergers, recapitalizations, or otherwise. For
liquidity, the funds can also invest in short-term debt securities and other
money-market instruments, including those denominated in foreign currencies.
Fixed-income securities, including short-term debt securities and other money
market instruments, are subject to interest rate risks and financial risks.
Interest rate risks are the risks that the instrument's value will decline if
interest rates change. A rise in interest rates usually causes the market value
of fixed-rate securities to go down, while rate deductions usually result in a
market value increase. Financial risks come from the possibility the issuer
won't be able to pay principal and interest when due.
The funds also can invest in options and futures, as well as newly developed
financial instruments, such as equity swaps and
B-3
<PAGE>
equity-linked fixed-income securities, so long as these are consistent with its
investment objective and regulatory requirements.
These investments and other fund investment strategies are discussed in detail
below.
Options and Futures
The funds can buy and sell options (puts and calls) and futures to the extent
permitted by the New York State Insurance Department, the SEC, and the Commodity
Futures Trading Commission ("CFTC"). We do not intend to use options and futures
strategies in a speculative manner but rather we would use them primarily as
hedging techniques or for cash management purposes.
Options and futures transactions may increase a fund's transaction costs and
portfolio turnover rate and will be initiated only when consistent with its
investment objectives.
Options. Option-related activities could include: (1) the sale of covered call
option contracts, and the purchase of call option contracts for the purpose of a
closing purchase transaction; (2) buying covered put option contracts, and
selling put option contracts to close out a position acquired through the
purchase of such options; and (3) selling call option contracts or buying put
option contracts on groups of securities and on futures on groups of securities
and buying similar call option contracts or selling put option contracts to
close out a position acquired through a sale of such options. This list of
options-related activities is not intended to be exclusive, and the funds may
engage in other types of options transactions consistent with its investment
objective and policies and applicable law.
A call option is a short-term contract (generally for nine months or less) which
gives the purchaser of the option the right to purchase the underlying security
at a fixed exercise price at any time prior to the expiration of the option
regardless of the market price of the security during the option period. As
consideration for the call option, the purchaser pays the seller a premium,
which the seller retains whether or not the option is exercised. The seller of a
call option has the obligation, upon the exercise of the option by the
purchaser, to sell the underlying security at the exercise price at any time
during the option period. Selling a call option would benefit the seller if,
over the option period, the underlying security declines in value or does not
appreciate above the aggregate of the exercise price and the premium. However,
the seller risks an "opportunity loss" of profits if the underlying security
appreciates above the aggregate value of the exercise price and the premium.
The funds may close out a position acquired through selling a call option by
buying a call option on the same security with the same exercise price and
expiration date as the call option that it had previously sold on that security.
Depending on the premium for the call option purchased by a fund, the fund will
realize a profit or loss on the transaction.
A put option is a similar short-term contract that gives the purchaser of the
option the right to sell the underlying security at a fixed exercise price at
any time prior to the expiration of the option regardless of the market price of
the security during the option period. As consideration for the put option the
purchaser pays the seller a premium, which the seller retains whether or not the
option is exercised. The seller of a put option has the obligation, upon the
exercise of the option by the purchaser, to purchase the underlying security at
the exercise price at any time during the option period. The buying of a covered
put contract limits the downside exposure for the investment in the underlying
security to the combination of the exercise price less the premium paid. The
risk of purchasing a put is that the market price of the underlying stock
prevailing on the expiration date may be above the option's exercise price. In
that case the option would expire worthless and the entire premium would be
lost.
The funds may close out a position acquired through buying a put option by
selling a put option on the same security with the same exercise price and
expiration date as the put option which it had previously bought on the
security. Depending on the premium of the put option sold by a fund, the fund
would realize a profit or loss on the transaction.
In addition to options (both calls and puts) on individual securities, there are
also options on groups of securities, such as the Standard & Poor's 100 Index
traded on the Chicago Board Options Exchange. There are also options on the
futures of groups of securities such as the Standard & Poor's 500 Stock Index
and the New York Stock Exchange Composite Index. The selling of such calls can
be used in anticipation of, or in, a general market or market sector decline
that may adversely affect the market value of a fund's portfolio of securities.
To the extent that a fund's portfolio of securities changes in value in
correlation with a given stock index, the sale of call options on the futures of
that index would substantially reduce the risk to the portfolio of a market
decline, and, by so doing, provides an alternative to the liquidation of
securities positions in the portfolio with resultant transaction costs. A risk
in all options, particularly the relatively new options on groups of securities
and on the futures on groups of securities, is a possible lack of liquidity.
This will be a major consideration before the fund deals in any option.
There is another risk in connection with selling a call option on a group of
securities or on the futures of groups of securities. This arises because of the
imperfect correlation between movements in the price of the call option on a
particular group of securities and the price of the underlying securities held
in the portfolio. Unlike a covered call on an individual security, where a large
movement on the upside for the call option will be offset by a similar move on
the underlying stock, a move in the price of a call option on a group of
securities may not be offset by a similar move in the price of securities held
due to the difference in the composition of the particular group and the
portfolio itself.
B-4
<PAGE>
Futures. To the extent permitted by applicable regulatory authorities, the funds
may purchase and sell futures contracts on securities or other instruments, or
on groups or indexes of securities or other instruments. The purpose of hedging
techniques using financial futures is to protect the principal value of the fund
against adverse changes in the market value of securities or instruments in its
portfolio, and to obtain better returns on future investments than actually may
be available at the future time. Since these are hedging techniques, the gains
or losses on the futures contract normally will be offset by losses or gains
respectively on the hedged investment. Futures contracts also may be offset
prior to the future date by executing an opposite futures contract transaction.
A futures contract on an investment is a binding contractual commitment which,
if held to maturity, will result in an obligation to make or accept delivery,
during a particular future month, of the securities or instrument underlying the
contract. By purchasing a futures contract--assuming a "long" position--a fund
legally will obligate itself to accept the future delivery of the underlying
security or instrument and pay the agreed price. By selling a futures
contract--assuming a "short" position--it legally will obligate itself to make
the future delivery of the security or instrument against payment of the agreed
price.
Positions taken in the futures markets are not normally held to maturity, but
are instead liquidated through offsetting transactions which may result in a
profit or a loss. While futures positions taken by the funds usually will be
liquidated in this manner, the funds may instead make or take delivery of the
underlying securities or instruments whenever it appears economically
advantageous to a fund to do so. A clearing corporation associated with the
exchange on which futures are traded assumes responsibility for closing out
positions and guarantees that the sale and purchase obligations will be
performed with regard to all positions that remain open at the termination of
the contract.
A stock index futures contract, unlike a contract on a specific security, does
not provide for the physical delivery of securities, but merely provides for
profits and losses resulting from changes in the market value of the contract to
be credited or debited at the close of each trading day to the respective
accounts of the parties to the contract. On the contract's expiration date, a
final cash settlement occurs and the futures positions are closed out. Changes
in the market value of a particular stock index futures contract reflect changes
in the specified index of equity securities on which the future is based.
Stock index futures may be used to hedge the equity investments of the funds
with regard to market (systematic) risk (involving the market's assessment of
overall economic prospects), as distinguished from stock specific risk
(involving the market's evaluation of the merits of the issuer of a particular
security). By establishing an appropriate "short" position in stock index
futures, the funds may seek to protect the value of its securities portfolio
against an overall decline in the market for equity securities. Alternatively,
in anticipation of a generally rising market, the funds can seek to avoid losing
the benefit of apparently low current prices by establishing a "long" position
in stock index futures and later liquidating that position as particular equity
securities are in fact acquired. To the extent that these hedging strategies are
successful, the funds will be affected to a lesser degree by adverse overall
market price movements, unrelated to the merits of specific portfolio equity
securities, than would otherwise be the case.
Unlike the purchase or sale of a security, no price is paid or received by the
funds upon the purchase or sale of a futures contract. Initially, the funds will
be required to deposit in a custodial account an amount of cash, United States
Treasury securities, or other permissible assets equal to approximately 5% of
the contract amount. This amount is known as "initial margin." The nature of
initial margin in futures transactions is different from that of margin in
security transactions in that futures contract margin does not involve the
borrowing of funds by the customer to finance the transactions. Rather, the
initial margin is in the nature of a performance bond or good faith deposit on
the contract which is returned to a fund upon termination of the futures
contract assuming all contractual obligations have been satisfied. Subsequent
payments to and from the broker, called "variation margin," will be made on a
daily basis as the price of the underlying stock index fluctuates making the
long and short positions in the futures contract more or less valuable, a
process known as "marking to the market." For example, when a fund has purchased
a stock index futures contract and the price of the underlying stock index has
risen, that position will have increased in value, and the fund will receive
from the broker a variation margin payment equal to that increase in value.
Conversely, where a fund has purchased a stock index futures contract and the
price of the underlying stock index has declined, the position would be less
valuable and the fund would be required to make a variation margin payment to
the broker. At any time prior to expiration of the futures contract, a fund may
elect to close the position by taking an opposite position which will operate to
terminate the fund's position in the futures contract. A final determination of
variation margin is then made, additional cash is required to be paid by or
released to the fund, and the fund realizes a loss or a gain.
There are several risks in connection with the use of a futures contract as a
hedging device. One risk arises because of the imperfect correlation between
movements in the prices of the futures contracts and movements in the securities
or instruments which are the subject of the hedge. The funds will attempt to
reduce this risk by engaging in futures transactions, to the extent possible,
where, in our judgment, there is a significant correlation between changes in
the prices of the futures contracts and the prices of the fund's portfolio
securities or instruments sought to be hedged.
Successful use of futures contracts for hedging purposes also is subject to the
user's ability to predict correctly movements in the direction of the market.
For example, it is possible that, where a
B-5
<PAGE>
fund has sold futures to hedge its portfolio against declines in the market, the
index on which the futures are written may advance and the values of securities
or instruments held in the fund's portfolio may decline. If this occurred, the
fund would lose money on the futures and also experience a decline in value in
its portfolio investments. However, we believe that over time the value of a
fund's portfolio will tend to move in the same direction as the market indices
which are intended to correlate to the price movements of the portfolio
securities or instruments sought to be hedged. It also is possible that, for
example, if a fund has hedged against the possibility of the decline in the
market adversely affecting stocks held in its portfolio and stock prices
increased instead, the fund will lose part or all of the benefit of increased
value of those stocks that it has hedged because it will have offsetting losses
in its futures positions. In addition, in such situations, if a fund has
insufficient cash, it may have to sell securities or instruments to meet daily
variation margin requirements. Such sales may be, but will not necessarily be,
at increased prices which reflect the rising market. The fund may have to sell
securities or instruments at a time when it may be disadvantageous to do so.
In addition to the possibility that there may be an imperfect correlation, or no
correlation at all, between movements in the futures contracts and the portion
of the portfolio being hedged, the prices of futures contracts may not correlate
perfectly with movements in the underlying security or instrument due to certain
market distortions. First, all transactions in the futures market are subject to
margin deposit and maintenance requirements. Rather than meeting additional
margin deposit requirements, investors may close futures contracts through
offsetting transactions which could distort the normal relationship between the
index and futures markets. Second, the margin requirements in the futures market
are less onerous than margin requirements in the securities market, and as a
result the futures market may attract more speculators than the securities
market does. Increased participation by speculators in the futures market also
may cause temporary price distortions. Due to the possibility of price
distortion in the futures market and also because of the imperfect correlation
between movements in the futures contracts and the portion of the portfolio
being hedged, even a correct forecast of general market trends by Advisors, the
investment advisor for each of the funds, still may not result in a successful
hedging transaction over a very short time period.
The funds may also use futures contracts and options on futures contracts to
manage its cash flow more effectively. To the extent that the funds enter into
non-hedging positions, it will do so only in accordance with certain CFTC
exemptive provisions. Thus, pursuant to CFTC Rule 4.5, the aggregate initial
margin and premiums required to establish non-hedging positions in commodity
futures or commodity options contracts may not exceed 5% of the liquidation
value of the fund's portfolio, after-taking into account unrealized profits and
unrealized losses on any such contracts it has entered into (provided that the
in-the-money amount of an option that is in-the-money when purchased may be
excluded in computing such 5%).
Firm Commitment Agreements and Purchase of "When-Issued" Securities
The funds can enter into firm commitment agreements for the purchase of
securities on a specified future date. We expect that these transactions will be
relatively infrequent. When a fund enters into a firm commitment agreement,
liability for the purchase price--and the rights and risks of ownership of the
securities--accrues to the fund at the time it becomes obligated to purchase
such securities, although delivery and payment occur at a later date.
Accordingly, if the market price of the security should decline, the effect of
the agreement would be to obligate the fund to purchase the security at a price
above the current market price on the date of delivery and payment. During the
time a fund is obligated to purchase such securities, it will be required to
segregate assets. See "Segregated Accounts," below.
Securities Lending
Subject to the funds' fundamental investment policies relating to loans of
portfolio securities set forth above, the funds may lend its securities to
brokers and dealers that are not affiliated with TIAA-CREF Life Insurance
Company, are registered with the SEC and are members of the NASD, and also to
certain other financial institutions. All loans will be fully collateralized. In
connection with the lending of its securities, the fund will receive as
collateral cash, securities issued or guaranteed by the United States Government
(i.e., Treasury securities), or other collateral permitted by applicable law,
which at all times while the loan is outstanding will be maintained in amounts
equal to at least 102% of the current market value of the loaned securities, or
such lesser percentage as may be permitted by the Securities and Exchange
Commission (SEC) (not to fall below 100% of the market value of the loaned
securities), as reviewed daily. By lending its securities, the funds will
receive amounts equal to the interest or dividends paid on the securities loaned
and in addition will expect to receive a portion of the income generated by the
short-term investment of cash received as collateral or, alternatively, where
securities or a letter of credit are used as collateral, a lending fee paid
directly to the fund by the borrower of the securities. Such loans will be
terminable by the fund at any time and will not be made to affiliates of TIAA.
The funds may terminate a loan of securities in order to regain record ownership
of, and to exercise beneficial rights related to, the loaned securities,
including but not necessarily limited to voting or subscription rights, and may,
in the exercise of its fiduciary duties, terminate a loan in the event that a
vote of holders of those securities is required on a material matter. The funds
may pay reasonable fees to persons unaffiliated with the fund for services or
for arranging such loans. Loans of securities will be made only to firms deemed
creditworthy. As with any extension of credit, however, there are risks of delay
in recovering the loaned securities, or in liquidating collateral, should the
borrower of securities default, become the subject of bankruptcy proceedings, or
otherwise be unable to fulfill its obligations or fail financially.
Borrowing and Lending Among Affiliates
At some time in the future, the funds may establish a facility for borrowing and
lending money among themselves as well as with
B-6
<PAGE>
TIAA or other registered investment companies managed by Advisors or Investment
Management.
If a fund borrows money, it could leverage its portfolio by keeping securities
it might otherwise have had to sell. Leveraging exposes a fund to special risks,
including greater fluctuations in net asset value in response to market changes.
Preferred Stock
The funds can invest in preferred stock consistent with their investment
objectives.
Illiquid Securities
The funds can invest up to 15% of their assets in investments that may not be
readily marketable. It may be difficult to sell these investments for their fair
market value.
Repurchase Agreements
Repurchase agreements are one of several short-term vehicles the funds can use
to manage cash balances effectively. In a repurchase agreement, we buy an
underlying debt instrument on condition that the seller agrees to buy it back at
a fixed time (usually a relatively short period) and price. The period from
purchase to repurchase is usually no more than a week and never more than a
year. Repurchase agreements have the characteristics of loans, and will be fully
collateralized (either with physical securities or evidence of book entry
transfer to the account of the custodian bank) at all times. During the term of
the repurchase agreement, a fund retains the security subject to the repurchase
agreement as collateral securing the seller's repurchase obligation, continually
monitors the market value of the security subject to the agreement, and requires
the fund's seller to deposit with the fund additional collateral equal to any
amount by which the market value of the security subject to the repurchase
agreement falls below the resale amount provided under the repurchase agreement.
The funds will enter into repurchase agreements only with member banks of the
Federal Reserve System, and with primary dealers in United States Government
securities or their wholly-owned subsidiaries whose creditworthiness has been
reviewed and found satisfactory by Advisors and who have, therefore, been
determined to present minimal credit risk.
Securities underlying repurchase agreements will be limited to certificates of
deposit, commercial paper, bankers' acceptances, or obligations issued or
guaranteed by the United States Government or its agencies or instrumentalities,
in which the fund entering into the agreement may otherwise invest.
If a seller of a repurchase agreement defaults and does not repurchase the
security subject to the agreement, the fund entering into the agreement would
look to the collateral security underlying the seller's repurchase agreement,
including the securities subject to the repurchase agreement, for satisfaction
of the seller's obligation to the fund; in such event the fund might incur
disposition costs in liquidating the collateral and might suffer a loss if the
value of the collateral declines. In addition, if bankruptcy proceedings are
instituted against a seller of a repurchase agreement, realization upon the
collateral may be delayed or limited.
Swap Transactions
The funds may, to the extent permitted by the SEC, enter into privately
negotiated "swap" transactions with other financial institutions in order to
take advantage of investment opportunities generally not available in public
markets. In general, these transactions involve "swapping" a return based on
certain securities, instruments, or financial indices with another party, such
as a commercial bank, in exchange for a return based on different securities,
instruments, or financial indices.
By entering into a swap transaction, the funds may be able to protect the value
of a portion of its portfolio against declines in market value. The funds may
also enter into swap transactions to facilitate implementation of allocation
strategies between different market segments or countries or to take advantage
of market opportunities which may arise from time to time. A fund may be able to
enhance its overall performance if the return offered by the other party to the
swap transaction exceeds the return swapped by the fund. However, there can be
no assurance that the return the fund receives from the counterparty to the swap
transaction will exceed the return it swaps to that party.
While the funds will only enter into swap transactions with counterparties
considered creditworthy (and will monitor the creditworthiness of parties with
which it enters into swap transactions), a risk inherent in swap transactions is
that the other party to the transaction may default on its obligations under the
swap agreement. If the other party to the swap transaction defaults on its
obligations, the fund entering into the agreement would be limited to the
agreement's contractual remedies. There can be no assurance that the fund will
succeed when pursuing its contractual remedies. To minimize a fund's exposure in
the event of default, it will usually enter into swap transactions on a net
basis (i.e., the parties to the transaction will net the payments payable to
each other before such payments are made). When a fund enters into swap
transactions on a net basis, the net amount of the excess, if any, of the fund's
obligations over its entitlements with respect to each such swap agreement will
be accrued on a daily basis and an amount of liquid assets having an aggregate
market value at least equal to the accrued excess will be segregated by the
fund's custodian. To the extent a fund enters into swap transactions other than
on a net basis, the amount segregated will be the full amount of the fund's
obligations, if any, with respect to each such swap agreement, accrued on a
daily basis. See "Segregated Accounts," below.
Swap agreements may be considered illiquid by the SEC staff and subject to the
limitations on illiquid investments. See "Illiquid Securities" above.
B-7
<PAGE>
To the extent that there is an imperfect correlation between a fund's obligation
to its counterparty under the swap and the return on related assets in its
portfolio, the swap transaction may increase a fund's financial risk. No fund
therefore will enter into a swap transaction unless it owns or has the right to
acquire the securities or instruments representative of the return it is
obligated to swap with the counterparty to the swap transaction. It is not the
intention of any fund to engage in swap transactions in a speculative manner but
rather primarily to hedge or manage the risks associated with assets held in, or
to facilitate the implementation of portfolio strategies of purchasing and
selling assets for, the fund.
Segregated Accounts
In connection with when-issued securities, firm commitment agreements, and
certain other transactions in which any of the funds incur an obligation to make
payments in the future, the fund involved may be required to segregate assets
with its custodian bank in amounts sufficient to settle the transaction. To the
extent required, such segregated assets can consist of liquid assets, including
equity or other securities, or other instruments such as cash, United States
Government securities or other obligations as may be permitted by law.
Investment Companies
Each fund can invest up to 10% of its assets in other investment companies.
Borrowing
Each fund can borrow money from banks (no more than 33-1/3% of the market value
of its assets at the time of borrowing), rather than through the sale of
portfolio securities, when such borrowing appears more attractive for the fund.
Each can also borrow money from other sources temporarily (no more than 5% of
the total market value of its assets at the time of borrowing), when, for
example, the fund needs to meet liquidity requirements caused by greater than
anticipated redemptions. See "Fundamental Policies" above.
Currency Transactions
The value of a fund's assets as measured in United States dollars may be
affected favorably or unfavorably by changes in foreign currency exchange rates
and exchange control regulations, and the fund may incur costs in connection
with conversions between various currencies. To minimize the impact of such
factors on net asset values, the fund may engage in foreign currency
transactions in connection with their investments in foreign securities. The
funds will not speculate in foreign currency exchange, and will enter into
foreign currency transactions only to "hedge" the currency risk associated with
investing in foreign securities. Although such transactions tend to minimize the
risk of loss due to a decline in the value of the hedged currency, they also may
limit any potential gain which might result should the value of such currency
increase.
The funds will conduct their currency exchange transactions either on a spot
(i.e., cash) basis at the rate prevailing in the currency exchange market, or
through forward contracts to purchase or sell foreign currencies. A forward
currency contract involves an obligation to purchase or sell a specific currency
at a future date, which may be any fixed number of days from the date of the
contract agreed upon by the parties, at a price set at the time of the contract.
These contracts are entered into with large commercial banks or other currency
traders who are participants in the interbank market.
By entering into a forward contract for the purchase or sale of foreign currency
involved in underlying security transactions, a fund is able to protect itself
against possible loss between trade and settlement dates for that purchase or
sale resulting from an adverse change in the relationship between the U.S.
dollar and such foreign currency. This practice is sometimes referred to as
"transaction hedging." In addition, when it appears that a particular foreign
currency may suffer a substantial decline against the U.S. dollar, a fund may
enter into a forward contract to sell an amount of foreign currency
approximating the value of some or all of its portfolio securities denominated
in such foreign currency. This practice is sometimes referred to as "portfolio
hedging." Similarly, when it appears that the U.S. dollar may suffer a
substantial decline against a foreign currency, a fund may enter into a forward
contract to buy that foreign currency for a fixed dollar amount.
The funds may also hedge their foreign currency exchange rate risk by engaging
in currency financial futures, options and "cross-hedge" transactions. In
"cross-hedge" transactions, a fund holding securities denominated in one foreign
currency will enter into a forward currency contract to buy or sell a different
foreign currency (one that generally tracks the currency being hedged with
regard to price movements). Such cross-hedges are expected to help protect a
fund against an increase or decrease in the value of the U.S. dollar against
certain foreign currencies.
The funds may hold a portion of their respective assets in bank deposits
denominated in foreign currencies, so as to facilitate investment in foreign
securities as well as protect against currency fluctuations and the need to
convert such assets into U.S. dollars (thereby also reducing transaction costs).
To the extent these monies are converted back into U.S. dollars, the value of
the assets so maintained will be affected favorably or unfavorably by changes in
foreign currency exchange rates and exchange control regulations.
The forecasting of short-term currency market movement is extremely difficult
and whether a short-term hedging strategy will be successful is highly
uncertain. Moreover, it is impossible to forecast with absolute precision the
market value of portfolio securities at the expiration of a foreign currency
forward contract. Accordingly, a fund may be required to buy or sell additional
currency on the spot market (and bear the expense of such transaction) if its
predictions regarding the movement of foreign currency or securities markets
prove inaccurate. In addition, the use of cross-hedging transactions may involve
special risks, and may leave a fund in a
B-8
<PAGE>
less advantageous position than if such a hedge had not been established.
Because foreign currency forward contracts are privately negotiated
transactions, there can be no assurance that a fund will have flexibility to
roll-over the foreign currency forward contract upon its expiration if it
desires to do so. Additionally, there can be no assurance that the other party
to the contract will perform its obligations thereunder.
There is no express limitation on the percentage of a fund's assets that may be
committed to foreign currency exchange contracts. A fund will not enter into
foreign currency forward contracts or maintain a net exposure in such contracts
where that fund would be obligated to deliver an amount of foreign currency in
excess of the value of that fund's portfolio securities or other assets
denominated in that currency or, in the case of a cross-hedge transaction,
denominated in a currency or currencies that fund's investment adviser believes
will correlate closely to the currency's price movements. The funds generally
will not enter into forward contracts with terms longer than one year.
Foreign Investments
As described more fully in the prospectus, certain funds may invest in foreign
securities, including those in emerging markets. In addition to the general risk
factors discussed in the Prospectus, there are a number of country- or
region-specific risks and other considerations that may affect these
investments.
Investment in Europe. The total European market (consisting of the European
Union, the European Free Trade Association and Eastern European countries)
contains over 450 million consumers, a market larger than either the United
States or Japan. European businesses compete both intra-regionally and globally
in a wide range of industries, and recent political and economic changes
throughout Europe are likely further to expand the role of Europe in the global
economy. As a result, a great deal of interest and activity has been generated
aimed at understanding and benefiting from the "new" Europe that may result. The
incipient aspects of major developments in Europe as well as other
considerations means that there can be no guarantee that outcomes will be as
anticipated or will have results that investors would regard as favorable.
The European Union. The European Union ("EU") consists of Austria, Belgium,
Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,
Netherlands, Portugal, Spain, Sweden, and the United Kingdom (the "EU Nations"),
with a total population exceeding 370 million. The EU Nations have undertaken to
establish, among themselves, a single market that is largely free of internal
barriers and hindrances to the free movement of goods, persons, services and
capital. Although it is difficult to predict when this goal will be fully
realized, macro- and micro-economic adjustments already in train are indicative
of significant increases in efficiency and the ability of the EU Nations to
compete globally by simplifying product distribution networks, promoting
economies of scale, and increasing labor mobility, among other effects. The
establishment of the eleven-country European Monetary Union, a subset of the
European Union countries, with its own central bank, the European Central Bank;
its own currency, the Euro; and a single interest rate structure, represents a
new economic entity, the Euro-area. While authority for monetary policy thus
shifts from national hands to an independent supranational body, sovereignty
elsewhere remains largely at the national level. Uncertainties with regard to
balancing of monetary policy against national fiscal and other political issues
and their extensive ramifications represent important risk considerations for
investors in these countries.
Investment in the Pacific Basin. The economies of the Pacific Basin vary widely
in their stages of economic development. Some (such as Japan, Australia,
Singapore, and Hong Kong) are considered advanced by Western standards; others
(such as Thailand, Indonesia, and Malaysia) are considered "emerging"--rapidly
shifting from natural resource- and agriculture-based systems to more
technologically advanced systems oriented toward manufacturing and services. The
major reform of China's economy and polity continues to be an important
influence on economic growth internally, and, through trade, across the region.
Intra-regional trade has become increasingly important to a number of these
economies. Japan, the second largest economy in the world, is the dominant
economy in the Pacific Basin, with one of the highest per capita incomes in the
world. Its extensive trade relationships also contribute to expectations for
regional and global economic growth. Economic growth has historically been
relatively strong in the region, but recent economic turmoil among the emerging
economies, and unmitigated recessionary impulses in Japan, in the recent past
have raised important questions with regard to prospective longer-term outcomes.
Potential policy miscalculations or other events could pose important risks to
equity investors in any of these economies.
Investment in Canada. Canada, a country rich in natural resources and a leading
industrial country of the world, is by far the most important trading partner of
the United States. The U.S., Canada, and Mexico have established the North
American Free Trade Agreement ("NAFTA"), which is expected to significantly
benefit the economies of each of the countries through the more rational
allocation of resources and production over the region. Uncertainty regarding
the longer-run political structure of Canada is an added risk to investors,
along with highly volatile commodity prices.
Investment in Latin America. Latin America (including Mexico and Central
America) has a population of approximately 455 million and is rich in natural
resources. Important gains in the manufacturing sector have developed in several
of the major countries in the region. A number of countries in the region have
taken steps to reduce impediments to trade, most notably through the NAFTA
agreement between the U.S., Canada and Mexico and the Mercosur agreement between
Argentina, Brazil, Paraguay and Uruguay, with Chile as an associate member.
Restrictions on international capital flows, intermittent problems with capital
flight, and some potential difficulties in the repayment of external debt,
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<PAGE>
however, remain important concerns in the region--exacerbating the risks in
these equity markets. As a result, Latin American equity markets have been
extremely volatile. Efforts to restructure these economies through privatization
and fiscal and monetary reform have been met with some success, with gains in
output growth and slowing rates of inflation. These efforts may result in
attractive investment opportunities. However, recent events have shown that
large shifts in sentiment in markets elsewhere on the globe may very quickly
reverberate among these markets, adding greater risk to already volatile
markets. There can be no assurance that attempted reforms will ultimately be
successful or will bring about results investors would regard as favorable.
Other Regions. There are developments in other regions and countries around the
world which could lead to additional investment opportunities. We will monitor
these developments and may invest when appropriate.
Depository Receipts. The funds can invest in American, European and Global
Depository Receipts ("ADRs," "EDRs" and "GDRs"). They are alternatives to the
purchase of the underlying securities in their national markets and currencies.
Although their prices are quoted in U.S. dollars, they don't eliminate all the
risks of foreign investing.
ADRs represent the right to receive securities of foreign issuers deposited in a
domestic bank or a foreign correspondent bank. To the extent that a fund
acquires ADRs through banks which do not have a contractual relationship with
the foreign issuer of the security underlying the ADR to issue and service such
ADRs, there may be an increased possibility that the fund would not become aware
of and be able to respond to corporate actions such as stock splits or rights
offerings involving the foreign issuer in a timely manner. In addition, the lack
of information may result in inefficiencies in the valuation of such
instruments. However, by investing in ADRs rather than directly in the stock of
foreign issuers, a fund will avoid currency risks during the settlement period
for either purchases or sales. In general, there is a large, liquid market in
the U.S. for ADRs quoted on a national securities exchange or the NASD's
national market system. The information available for ADRs is subject to the
accounting, auditing and financial reporting standards of the domestic market or
exchange on which they are traded, which standards are more uniform and more
exacting than those to which many foreign issuers may be subject.
EDRs and GDRs are receipts evidencing an arrangement with a non-U.S. bank
similar to that for ADRs and are designed for use in non-U.S. securities
markets. EDRs and GDRs are not necessarily quoted in the same currency as the
underlying security.
Other Investment Techniques and Opportunities
The funds may take certain actions with respect to merger proposals, tender
offers, conversion of equity-related securities and other investment
opportunities with the objective of enhancing the portfolio's overall return,
regardless of how these actions may affect the weight of the particular
securities in the fund's portfolio. It is not our policy to select investments
based primarily on the possibility of one or more of these investment techniques
and opportunities being presented.
Portfolio Turnover
The transactions a fund engages in are reflected in its portfolio turnover rate.
The rate of portfolio turnover is calculated by dividing the lesser of the
amount of purchases or sales of portfolio securities during the fiscal year by
the monthly average of the value of the fund's portfolio securities (excluding
from the computation all securities, including options, with maturities at the
time of acquisition of one year or less). A high rate of portfolio turnover
generally involves correspondingly greater brokerage commission expenses, which
must be borne directly by the fund and ultimately by the fund's shareholders.
However, because portfolio turnover is not a limiting factor in determining
whether or not to sell portfolio securities, a particular investment may be sold
at any time, if investment judgment or account operations make a sale advisable.
The funds do not have fixed policies on portfolio turnover although, because a
higher portfolio turnover rate will increase brokerage costs, Advisors will
carefully weigh the added costs of short term investment against the gains
anticipated from such transactions.
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<PAGE>
Management of the Fund
The Board
A board of trustees (the Board) oversees the TIAA-CREF Life Funds' business
affairs and is responsible for major decisions about its investment objective
and policies. The Board delegates the day-to-day management of the fund to
Advisors and its officers (see below). The Board meets periodically to review
the fund's activities, contractual arrangements with companies that provide
services to the fund, and the performance of the investment portfolio.
Trustees and Officers of the TIAA-CREF Life Funds
<TABLE>
<CAPTION>
Position(s)
Held with Principal Occupation(s)
Name and Address* Age Registrant During Past 5 Years
- --------------------------- ----- ---------------- -----------------------------------------------------------------------
<S> <C> <C> <C>
Laurence W. Franz 60 Trustee Vice President, Business and Finance, and Treasurer, Canisius College
Canisius College
2001 Main Street
Buffalo, New York 14208
Jeanmarie C. Grisi 41 Trustee Senior Manager, Pension Administration, Lucent Technologies Inc.;
Lucent Technologies Inc. formerly, Treasurer, Carnegie Corporation of New York
600 Mountain Avenue-7F-523
Murray Hill, NJ 07974
Richard M. Norman 55 Trustee Vice President for Finance and Business Services and Treasurer, Miami
Miami University University; formerly, Vice President for Administration and Associate
274 McGuffey Hall Treasurer, Rutgers, The State University of New Jersey
Oxford, OH 45056-1846
John J. McCormack** 55 Trustee and Executive Vice President, TIAA and CREF, since November 1983 and
Executive Vice President, TIAA-CREF Enterprises, Inc., since June 1998
President
Martin E. Galt III** 58 President Executive Vice President, TIAA and CREF, since February 2000; formerly
President, Institutional Investment Management Division of Asset
Management Group (September 1997--February 2000) and Principal
Investment Officer, Bank of America (September 1997--September
1998) and Chairman and Chief Executive Officer, Boatman's Trust
Company (May 1995--September 1997)
Richard L. Gibbs 53 Executive Vice Executive Vice President, TIAA, CREF, TIAA-CREF Investment Manage-
President ment, LLC ("Investment Management") and TIAA-CREF Individual &
Institutional Services, Inc. ("Services"), since 1993
Peter C. Clapman 64 Senior Vice Senior Vice President and Chief Counsel, Investments, TIAA and CREF
President,
Secretary and
Chief Counsel,
Investments
Richard J. Adamski 58 Vice President Vice President and Treasurer, Investment Management and Services,
and Treasurer since January 1992 and TPIS, since 1994, and Vice President and
Treasurer, TIAA and CREF
</TABLE>
- -------------
* The address for all officers of the TIAA-CREF Life Funds is 730 Third
Avenue, New York, New York 10017-3206.
** This Trustee is or may be an "interested person" within the meaning of the
Investment Company Act of 1940.
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<PAGE>
Compensation of Trustees
Trustees who are not active officers of Teachers Insurance and Annuity
Association (TIAA) each receive a total of $5,000 per year, plus $1,000 for each
meeting of the board of trustees attended, for their service to both the
TIAA-CREF Life Funds and TIAA Separate Account VA-1 (the "Fund Complex").
Compensation is allocated between the companies in the Fund Complex based on
assets. Trustees who are active officers of TIAA do not receive any additional
compensation for their services as trustees. (See "Advisors and TIAA" below).
The following table sets forth the compensation paid to the TIAA-CREF Life
Funds' trustees for the year ended December 31, 1999:
<TABLE>
<CAPTION>
(2) (4) (5)
Aggregate (3) Estimated Total
(1) Compensation Pension or Retirement Annual Compensation
Name of Person, From TIAA-CREF Benefits Accrued As Benefits Upon From
Position Life Funds Part of Fund Expenses Retirement Fund Complex*
- --------------------- ---------------- ----------------------- --------------- --------------
<S> <C> <C> <C> <C>
Laurence W. Franz, $ 296.10 $-0- $-0- $8,000
Trustee
Jeanmarie C. Grisi, $ 259.09 $-0- $-0- $7,000
Trustee
Richard M. Norman, $ 296.10 $-0- $-0- $8,000
Trustee
</TABLE>
- -------------
* For purposes of this information, the Fund Complex consists of the College
Retirement Equities Fund, TIAA-CREF Mutual Funds, TIAA-CREF Institutional
Mutual Funds, TIAA-CREF Life Funds and TIAA Separate Account VA-1.
Principal Holders of Securities
Teachers Insurance and Annuity Association (TIAA), as the contributor of the
initial capital for each of the funds, owned the following percentages of the
shares of each fund as of March 13, 2000:
<TABLE>
<S> <C>
Growth Equity 99.80%
Growth & Income 99.80%
International Equity 99.80%
Stock Index 52.17%
Social Choice Equity 99.60%
</TABLE>
The TIAA-CREF Life Separate Account VA-1, funding the Personal Annuity Select
contracts, owns the balance of the outstanding shares.
Investment Advisory and Other Services
Investment Advisory Services
As explained in the prospectus, investment advisory services and related
services for the TIAA-CREF Life Funds are provided by personnel of Advisors,
which is registered under the Investment Advisers Act of 1940. Advisors manages
the investment and reinvestment of the assets of the TIAA-CREF Life Funds,
subject to the direction and control of the TIAA-CREF Life Funds' board of
trustees. Advisors' will perform all research, make recommendations, and place
orders for the purchase and sale of securities. Advisors also provides for
portfolio accounting, custodial, and related services for the assets of the
Stock Index Fund.
Advisory fees are payable monthly to Advisors. They are calculated as a
percentage of the average value of the net assets each day for each fund, and
are accrued daily proportionately at 1/365th (1/366th in a leap year) of the
rates set forth in the prospectus. For 1999, the total dollar amount of
investment management expenses for the Stock Index Fund attributable to advisory
fees, before and after Advisors' waiver of a portion of its fees, was $101,980
gross expenses, $78,185 waived expenses and $23,795 net expenses.
Personal Trading Policy. TIAA-CREF Life Funds has adopted a personal trading
policy under Rule 17j-1 of the Investment Company Act of 1940. Under the policy,
personnel of Advisors and members of their households are limited in trading for
their own accounts. The policy generally requires these individuals to preclear
and report all their securities transactions including transactions in
securities that are held or purchased by the TIAA-CREF Life Funds. The policy
can be reviewed and copied at the SEC's Public Reference Room in Washington,
D.C. Information on the operation of the Public Reference Room may be obtained
by calling the SEC at 1-202-942-8090. The policy is also available on the EDGAR
Database on the SEC's Internet site at http://www.sec.gov. Copies of the policy
may be obtained, after paying a duplication fee, by electronic request at the
following e-mail address: [email protected], or by writing the SEC's Public
Reference Section, Washington, D.C. 20549-0102.
Advisors and TIAA
Advisors is a wholly-owned indirect subsidiary of TIAA. The main offices of both
TIAA and Advisors are at 730 Third Avenue, New York, New York 10017-3206. TIAA
is a stock life insurance company, organized under the laws of New York State.
It was founded on March 4, 1918, by the Carnegie Foundation for the Advancement
of Teaching. TIAA is the companion organization of the College Retirement
Equities Fund (CREF), the first company in the United States to issue a variable
annuity. Together, TIAA and CREF
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<PAGE>
form the principal retirement system for the nation's education and research
communities and one of the largest retirement systems in the world, based on
assets under management. TIAA-CREF serves approximately 2.2 million people. As
of December 31, 1999, TIAA's assets were approximately $110 billion; the
combined assets for TIAA and CREF totalled approximately $288 billion.
TIAA owns all of the shares of TIAA-CREF Enterprises, Inc., which in turn owns
all the shares of Advisors, TIAA-CREF Life Insurance Company, and Teachers
Personal Investors Services, Inc., the principal underwriter for the TIAA-CREF
Life Funds and the TIAA-CREF Life Insurance Company variable annuity contracts
funded by the TIAA-CREF Life Funds. TIAA also holds all the shares of TIAA-CREF
Investment Management, LLC ("Investment Management"). Investment Management
provides investment advisory services to the College Retirement Equities Fund,
TIAA's companion organization. All of the foregoing are affiliates of the
TIAA-CREF Life Funds and Advisors.
Custodian
Under the terms of a contract with Advisors, State Street Bank & Trust Company
("State Street"), 225 Franklin Street, Boston, MA 02209 acts as custodian for
the TIAA-CREF Life Funds. Advisors has agreed to pay State Street for these
services.
Administrative Services
Advisors has retained State Street to provide the TIAA-CREF Life Funds with
certain administrative services, including preparation of each fund's federal,
state and local tax returns, preparation of fund financial information, and
various other administrative services. Advisors, not the TIAA-CREF Life Funds,
has agreed to pay State Street a fee for such services.
Auditors
The financial statements of TIAA-CREF Life Funds are audited by Ernst & Young
LLP. The principal business address of Ernst & Young LLP is 787 Seventh Avenue,
New York, New York 10019.
Fund History and Description of the Fund
TIAA-CREF Life Funds is a Delaware business trust organized on August 13, 1998,
and is registered with the U.S. Securities and Exchange Commission (SEC) as a
diversified "open-end" management investment company. It currently has five
investment portfolios (funds). As a Delaware business trust, the fund's
operations are governed by its Declaration of Trust dated August 13, 1998, as
amended (the Declaration). A copy of the fund's Certificate of Trust, dated
August 13, 1998, is on file with the Office of the Secretary of State of the
State of Delaware.
Shareholders Meetings and Voting Rights
Under the Declaration, the TIAA-CREF Life Funds are not required to hold annual
meetings to elect Trustees or for other purposes, and therefore, we do not
anticipate that the fund will hold shareholders' meetings unless required by
law. The TIAA-CREF Life Funds will be required to hold a meeting to elect
Trustees to fill any existing vacancies on the Board if, at any time, fewer than
a majority of the Trustees have been elected by the shareholders of the
TIAA-CREF Life Funds.
With regard to matters for which the Investment Company Act of 1940 requires a
shareholder vote, the separate account which issues the variable contracts
funded by the TIAA-CREF Life Funds, as the legal owner of the TIAA-CREF Life
Funds shares, typically votes fund shares in accordance with instructions
received from contractowners (or annuitants or beneficiaries thereunder) having
a voting interest in the separate account. Shares held by the separate account
for which no instructions are received are generally voted by the separate
account for or against any proposition, or in abstention, in the same proportion
as the shares for which instructions have been received. You should refer to the
separate prospectus, which accompanies this prospectus, describing your contract
and the separate account, for more information on your voting rights.
Shares
The fund is authorized to issue an unlimited number of shares of beneficial
interest in the fund, all without par value. Shares are divided into and may be
issued in a designated series representing beneficial interests in one of the
fund's investment portfolios. There is currently five series of shares and five
investment portfolios.
Each share of a series issued and outstanding is entitled to participate equally
in dividends and distributions declared by such series and, upon liquidation or
dissolution, in net assets allocated to such series remaining after satisfaction
of outstanding liabilities. The shares of each series, when issued, will be
fully paid and non-assessable and have no preemptive or conversion rights.
Each share (including fractional shares) is entitled to one vote for each dollar
of net asset value represented by the share on all matters to which the holder
of that share is entitled to vote. The shares do not have cumulative voting
rights.
Additional Portfolios
The TIAA-CREF Life Funds currently consists of five investment portfolios, or
funds. Pursuant to the Declaration, the Trustees may establish additional
investment funds (technically "series" of shares).
Valuation of Assets
The assets of the TIAA-CREF Life Funds are valued as of the close of each
valuation day in the following manner:
Equity Securities
Investments for which market quotations are readily available are valued at the
market value of such investments, determined as follows:
Equity securities listed or traded on a national market or exchange are valued
based on their sale price on such market or exchange at
B-13
<PAGE>
the close of business (usually 4:00 p.m. eastern time) on the date of valuation,
or at the mean of the closing bid and asked prices if no sale is reported. Such
an equity security may also be valued at fair value as determined in good faith
under the direction of the the board of trustees if events materially affecting
its value occur between the time its price is determined and the time a fund's
net asset value is calculated.
Foreign Investments
Investments traded on a foreign exchange or in foreign markets 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. Since
the trading of investments on a foreign exchange or in foreign markets is
normally completed before the end of a valuation day, such valuation does not
take place contemporaneously with the determination of the valuation of certain
other investments held by the fund. If events materially affecting the value of
foreign investments occur between the time their share price is determined and
the time when a fund's net asset value is calculated, such investments will be
valued at fair value as determined in good faith by the board of trustees.
Debt Securities and Money Market Instruments
Debt securities (excluding money market instruments) for which market quotations
are readily available are valued based on the most recent bid price or the
equivalent quoted yield for such securities (or those of comparable maturity,
quality and type). These values will be derived utilizing an independent pricing
service, except when we believe the prices don't accurately reflect the
security's fair value.
Values for money market instruments with maturities of sixty days or less are
valued at amortized cost, which approximates fair value. Values for money market
instruments with maturities of more than sixty days are valued in the same
manner as debt securities stated in the preceding paragraph, or derived from a
pricing matrix that has various types of money market instruments along one axis
and various maturities along the other.
All debt securities may also be valued at fair value as determined in good faith
by the board of trustees.
Options
Portfolio investments underlying options are valued as described above. Stock
options written by a fund are valued at the last quoted sale price, or at the
closing bid price if no sale is reported for the day of valuation as determined
on the principal exchange on which the option is traded. The value of a fund's
net assets will be increased or decreased by the difference between the premiums
received on writing options and the costs of liquidating such positions measured
by the closing price of the options on the date of valuation.
For example, when a fund writes a call option, the amount of the premium is
included in the fund's assets and an equal amount is included in its
liabilities. The liability thereafter is adjusted to the current market value of
the call. Thus, if the current market value of the call exceeds the premium
received, the excess would be unrealized depreciation; conversely, if the
premium exceeds the current market value, such excess would be unrealized
appreciation. If a call expires or if a fund enters into a closing purchase
transaction it realizes a gain (or a loss if the cost of the transaction exceeds
the premium received when the call was written) without regard to any unrealized
appreciation or depreciation in the underlying securities, and the liability
related to such call is extinguished. If a call is exercised, a fund realizes a
gain or loss from the sale of the underlying securities and the proceeds of the
sale increased by the premium originally received.
A premium paid on the purchase of a put will be deducted from a fund's assets
and an equal amount will be included as an investment and subsequently adjusted
to the current market value of the put. For example, if the current market value
of the put exceeds the premium paid, the excess would be unrealized
appreciation; conversely, if the premium exceeds the current market value, such
excess would be unrealized depreciation.
Stock and bond index futures, and options thereon, which are traded on
commodities exchanges, are valued at their last sale prices as of the close of
such commodities exchanges.
Investments for Which Market Quotations Are Not Readily Available
Portfolio securities or other assets for which market quotations are not readily
available will be valued at fair value as determined in good faith under the
direction of the board of trustees.
Brokerage Allocation
Advisors is responsible for decisions to buy and sell securities for the fund as
well as for selecting brokers and, where applicable, negotiating the amount of
the commission rate paid. It is the intention of Advisors to place brokerage
orders with the objective of obtaining the best execution, which includes such
factors as best price, research and available data. When purchasing or selling
securities traded on the over-the-counter market, Advisors generally will
execute the transactions with a broker engaged in making a market for such
securities. When Advisors deems the purchase or sale of a security to be in the
best interests of the fund, its personnel may, consistent with their fiduciary
obligations, decide either to buy or to sell a particular security for the fund
at the same time as for TIAA Separate Account VA-1, TIAA-CREF Mutual Funds,
TIAA-CREF Institutional Mutual Funds or any other investment account that it may
be managing, or at the same time as for a CREF account or other account that it
may also be managing on behalf of Investment Management, the other investment
adviser affiliated with TIAA. In that event, allocation of the securities
purchased or sold, as well as the expenses incurred in the transaction, will be
made in an equitable manner.
B-14
<PAGE>
Domestic brokerage commissions are negotiated, as there are no standard rates.
All brokerage firms provide the service of execution of the order made; some
brokerage firms also provide research and statistical data, and research reports
on particular companies and industries are customarily provided by brokerage
firms to large investors. In negotiating commissions, consideration is given by
Advisors to the quality of execution provided and to the use and value of the
data. The valuation of such data may be judged with reference to a particular
order or, alternatively, may be judged in terms of its value to the overall
management of the portfolio.
Advisors will place orders with brokers providing useful research and
statistical data services if reasonable commissions can be negotiated for the
total services furnished even though lower commissions may be available from
brokers not providing such services. Advisors follows guidelines established by
the Board for the placing of orders with the brokers providing such services. In
1999, no brokerage commissions were paid by the Stock Index Fund to brokers on
account of research services.
The aggregate amount of brokerage commissions paid by the Stock Index Fund
during 1999 was $7,098.
Research or services obtained for one fund may be used by personnel of Advisors
in managing the other funds or other investment company accounts, or the CREF
accounts for Investment Management. In such circumstances, the expenses incurred
will be allocated in an equitable manner consistent with the fiduciary
obligations of personnel of Advisors to each of the funds.
During 1999, the Stock Index Fund acquired securities of certain of the regular
brokers or dealers or their parents. These entities and the value of the Stock
Index Fund's aggregate holdings in the securities of those entities are set
forth below:
Regular Broker or Dealer based on brokerage commissions paid: None
Regular Broker or Dealer based on entities acting as principal:
<TABLE>
<CAPTION>
Broker Parent Holdings at 12/31/99 (US$)
- ------ ------ ---------------------------
<S> <C> <C>
Chase Securities, Inc. Chase Manhattan Corp. $256,368
Morgan Stanley & Morgan Stanley, Dean Witter & Co., Inc. $314,050
Co., Inc.
Morgan (J.P.) Securities Morgan (J.P.) & Co., Inc. $75,975
Corp.
Goldman Sachs Goldman Sachs Group LP $37,675
Lehman Brothers Lehman Brothers Holdings, Inc. $33,875
</TABLE>
Performance Information
From time to time, we will advertise the total return and average annual total
return of the fund. Total return is computed on a per share basis and assumes
the reinvestment of dividends and distributions. Total return generally is
expressed as a percentage rate which is calculated by combining the income and
principal changes for a specified period and dividing by the net asset value per
share at the beginning of the period. Advertisements may include the percentage
rate of total return or may include the value of a hypothetical investment at
the end of the period, which assumes the application of the percentage rate of
total return.
Average annual total return is calculated pursuant to a standardized formula
which assumes that an investment in the fund was purchased with an initial
payment of $1,000 and that the investment was redeemed at the end of a stated
period of time, after giving effect to the reinvestment of dividends and
distributions during the period. The return is expressed as a percentage rate
which, if applied on a compounded annual basis, would result in the redeemable
value of the investment at the end of the period. Advertisements of the fund's
performance will include the fund's average annual total return for one-, five-
and ten-year periods (and occasionally other periods as well).
All performance figures are based on past investment results. They aren't a
guarantee that the fund will perform equally or similarly in the future. Write
or call us for current performance figures for the fund.
Calculation of Performance Data
We may quote a fund's performance in various ways. All performance information
in advertising is historical and is not intended to indicate future returns. A
fund's share price, yield, and total return fluctuate in response to market
conditions and other factors, and the value of fund shares when redeemed may be
more or less than their original cost. Performance of the funds will be
presented net of any separate account fees and charges.
Total Return Calculations
Total returns quoted in advertising reflect all aspects of a fund's returns,
including the effect of reinvesting dividends and capital gain distributions,
and any change in the fund's NAV over a stated period. Average annual returns
are calculated by determining the
B-15
<PAGE>
growth or decline in value of a hypothetical historical investment in the fund
over a stated period, and then calculating the annually compounded percentage
rate that would have produced the same result if the rate of growth or decline
in value had been constant over the period according to the following formula:
n
P (1 + T) = ERV
where: P = the hypothetical initial payment
T = average annual total return
n = number of years in the period
ERV = ending redeemable value of the hypothetical payment
made at the beginning of the one-, five-, or 10-year
period at the end of the one-, five-, or 10-year period
(or fractional portion thereof).
For example, a cumulative return of 100% over ten years would produce an average
annual return of 7.18%, which is the steady annual rate that would equal 100%
growth on a compounded basis in ten years. While average annual returns are a
convenient means of comparing investment alternatives, investors should realize
that the fund's performance is not constant over time, but changes from year to
year, and that average annual returns represent averaged figures as opposed to
the actual year-to-year performance of the fund.
In addition to average annual returns, we may quote a fund's unaveraged or
cumulative total returns reflecting the actual change in value of an investment
over a stated period. Average annual and cumulative total returns may be quoted
as a percentage or as a dollar amount, and may be calculated for a single
investment, a series of investments, or a series of redemptions, over any time
period. Total returns may be broken down into their components of income and
capital (including capital gains and changes in share price) in order to
illustrate the relationship of these factors and their contributions to total
return. Total returns may be quoted on a before or after tax basis. Total
returns, yields, and other performance information may be quoted numerically or
in a table, graph, or similar illustration.
Performance Returns
Set forth below is the calculation of the Stock Index Fund's performance, which
reflects all expense deductions from fund assets, applied to a hypothetical
investment of $1,000 in that fund. Because they are new, we have not included
the returns of the other funds.
<TABLE>
<CAPTION>
Period Cumulative Total Return
- ------ -----------------------
<S> <C>
Since inception 21.20%
(January 4, 1999 to
December 31, 1999)
</TABLE>
Performance Comparisons
Performance information for the funds, may be compared in advertisements, sales
literature, and reports to shareholders, to the performance information reported
by other investments and to various indices and averages. Such comparisons may
be made with, but are not limited to (1) the S&P 500, (2) the Dow Jones
Industrial Average ("DJIA"), (3) Lipper Analytical Services, Inc. Mutual Fund
Performance Analysis Reports and the Lipper General Equity Funds Average, (4)
Money Magazine Fund Watch, (5) Business Week's Mutual Fund Scoreboard, (6) SEI
Funds Evaluation Services Equity Fund Report, (7) CDA Mutual Funds Performance
Review and CDA Growth Mutual Fund Performance Index, (8) Value Line Composite
Average (geometric), (9) Wilshire Associates indices, (10) Frank Russell Co.
Inc. indices, (11) the Consumer Price Index, published by the U.S. Bureau of
Labor Statistics (measurement of inflation), (12) Morningstar, Inc., and (13)
the Global Market indices created by Morgan Stanley, Inc., including the Europe,
Australasia, Far East (EAFE) Index, the EAFE+Canada Index and the International
Perspective Index. We may also discuss ratings or rankings received from these
entities, accompanied in some cases by an explanation of those ratings or
rankings, when applicable. In addition, advertisements may discuss the
performance of the indices listed above.
The performance of each of the funds also may be compared to other indices or
averages that measure performance of a pertinent group of securities.
Shareholders should keep in mind that the composition of the investments in the
reported averages will not be identical to that of the fund and that certain
formula calculations (e.g., yield) may differ from index to index. In addition,
there can be no assurance that any of the funds will continue its performance as
compared to such indices.
We may also advertise ratings or rankings the funds receive from various rating
services and organizations, including but not limited to any organization listed
above.
The Stock Index Fund is not promoted, sponsored, endorsed, or sold by, nor
affiliated with, Frank Russell Company. Frank Russell Company is not responsible
for and has not reviewed the fund literature or publications and makes no
representation or warranty, express or implied, as to their accuracy,
completeness, or otherwise. Frank Russell Company reserves the right, at any
time and without notice, to change or terminate the Russell 3000 Index. Frank
Russell Company has no obligation to take the needs of the fund or the separate
account contractowners into consideration in determining the index. Frank
Russell Company's publication of the Russell 3000 Index in no way suggests or
implies an opinion by Frank Russell Company as to the attractiveness or
appropriateness of investment in any or all of the securities upon which the
Index is based. Frank Russell Company makes no representation, warranty, or
guarantee as to the accuracy, completeness or reliability of the Index or any
data included in the Index. Frank Russell Company makes no representation or
warranty regarding the use, or the results of use, of the Index or any
securities comprising the Index. FRANK RUSSELL MAKES NO EXPRESS OR IMPLIED
WARRANTIES OF ANY KIND OR NATURE, INCLUDING WITHOUT LIMITATION, WARRANTIES OF
MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE INDEX
OR ANY DATA OR SECURITIES INCLUDED THEREIN.
B-16
<PAGE>
Illustrating Compounding, Tax Deferral, and Expense Deductions
We may illustrate in advertisements, sales literature, and reports to
contractowners or annuitants the effects of tax deferral and/or compounding of
earnings on an investment in the TIAA-CREF Life Funds. We may do this using a
hypothetical investment earning a specified rate of return. To illustrate the
effects of compounding, we would show how the total return from an investment of
the same dollar amount, earning the same or different interest rate, varies
depending on when the investment was made. To illustrate the effects of tax
deferral, we will show how the total return from an investment of the same
dollar amount, earning the same or different interest rates, for individuals in
the same tax bracket, would vary between tax-deferred and taxable investments.
We may also illustrate in advertisements, sales literature, and reports to
contractowners or annuitants the effect of an investment fund's expenses on
total return over time. We may do this using a hypothetical investment earning a
specified rate of return. We would show how the total return, net of expenses,
from an investment of the same dollar amount in funds with the same investment
results but different expense deductions varies increasingly over time. In the
alternative, we would show the difference in the dollar amount of total expense
charges paid over time by an investor in two or more different funds that have
the same annual total return but different asset-based expense charges. We may
also compare the TIAA-CREF Life Funds' expense charges to those of other
investment products.
Net Asset Value
Charts and graphs using a fund's NAVs, adjusted NAVs, and benchmark indices may
be used to exhibit performance. An adjusted NAV includes any distributions paid
by the fund and reflects all elements of its return.
Moving Averages
We may illustrate the fund's performance using moving averages. A long-term
moving average is the average of each week's adjusted closing NAV for a
specified period. A short-term moving average is the average of each day's
adjusted closing NAV for a specified period. "Moving Average Activity
Indicators" combine adjusted closing NAVs from the last business day of each
week with moving averages for a specified period to produce indicators showing
when an NAV has crossed, stayed above, or stayed below its moving average.
Tax Status
Although the TIAA-CREF Life Funds are organized as a Delaware business trust,
neither the TIAA-CREF Life Funds nor any of the funds will be subject to any
corporate excise or franchise tax in the State of Delaware, nor will they be
liable for Delaware income taxes provided that each fund qualifies as a
"regulated investment company" ("RIC") for federal income tax purposes and
satisfies certain income source requirements of Delaware law. If the funds so
qualify and distribute all of their income and capital gains, they will also be
exempt from the New York State franchise tax and the New York City general
corporation tax, except for small minimum taxes.
Each fund intends to qualify as a RIC under Subchapter M of the Code. In
general, to qualify as a RIC: (a) at least 90% of the gross income of the fund
for the taxable year must be derived from dividends, interest, payments with
respect to loans of securities, gains from the sale or other disposition of
securities or foreign currencies, or other income derived with respect to its
business of investing in securities; (b) the fund must distribute to its
shareholders 90% of its ordinary income and net short-term capital gains
(undistributed net income may be subject to tax at the fund level) and (c) the
fund must diversify its assets so that, at the close of each quarter of its
taxable year, (i) at least 50% of the fair market value of its total (gross)
assets is comprised of cash, cash items, U.S. Government securities, securities
of other regulated investment companies and other securities limited in respect
of any one issuer to no more than 5% of the fair market value of the fund's
total assets and 10% of the outstanding voting securities of such issuer and
(ii) no more than 25% of the fair market value of its total assets is invested
in the securities of any one issuer (other than U.S. Government securities and
securities of other regulated investment companies) or of two or more issuers
controlled by the fund and engaged in the same, similar, or related trades or
businesses.
If a fund fails to qualify as a RIC, the fund will be subject to federal and
possibly state and local corporate taxes on its taxable income and gains
(without any deduction for its distributions to its shareholders) and
distributions to its shareholders will constitute ordinary income to the extent
of the fund's available earnings and profits. Owners of a variable annuity or
other variable insurance contracts invested in the fund might be taxed currently
on the investment earnings under their contracts and thereby lose the benefit of
tax deferral. This could also happen if the fund fails to comply with the
diversification requirements required of insurance company separate accounts
under the Code.
Each fund must declare and distribute dividends equal to at least 98% of its
ordinary income (as of the twelve months ended December 31) and distributions of
at least 98% of its capital gain net income (as of the twelve months ended
October 31), in order to avoid a federal excise tax. Each fund intends to make
the required distributions, but they cannot guarantee that they will do so.
Dividends attributable to each fund's ordinary income and capital gains
distributions are taxable as such to shareholders in the year in which they are
received except dividends declared in October, November or December and paid in
January. Dividends in the latter category are treated as paid on December 31.
This discussion of the tax treatment of the funds and their distributions is
based on the federal, Delaware and New York tax laws in effect as of the date of
this SAI. Contractowners should consult their tax advisers to determine the tax
treatment of their investment.
B-17
<PAGE>
Underwriters
The shares of the TIAA-CREF Life Funds are offered continuously by Teachers
Personal Investors Services, Inc. (TPIS), which is registered with the SEC as a
broker-dealer and is a member of the NASD. TPIS may be considered the "principal
underwriter" for the shares of the fund. No commissions are paid in connection
with the distribution of the shares of the TIAA-CREF Life Funds. The principal
business address of TPIS is 730 Third Avenue, New York, New York 10017.
Legal Matters
All matters of applicable state law have been passed upon by Charles H. Stamm,
Executive Vice President and General Counsel of TIAA and CREF. Legal matters
relating to the federal securities laws have been passed upon by Sutherland
Asbill & Brennan LLP, Washington, D.C.
Experts
The financial statements of the TIAA-CREF Life Funds included in this Statement
of Additional Information or incorporated by reference into this registration
statement have been audited by Ernst & Young LLP, independent auditors, as
stated in their report appearing herein, and have been so included in reliance
upon the report of such firm given upon their authority as experts in accounting
and auditing.
Other Information
This Statement of Additional Information and the Prospectus for the TIAA-CREF
Life Funds do not contain all the information set forth in the registration
statement and exhibits relating thereto (including the Declaration of Trust),
which the fund has filed with the SEC, to which reference is hereby made.
Financial Statements
The audited financial statements of the each of the funds of the TIAA-CREF Life
Funds, other than the Stock Index Fund, follow. The audited financial statements
of the Stock Index Fund are incorporated herein by reference to the TIAA-CREF
Life Funds' Annual Report for the year ended December 31, 1999, which has been
filed with the Securities and Exchange Commission, and provided to separate
account contractowners. We will furnish you, without charge, another copy of the
Annual Report upon request.
B-18
<PAGE>
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
TIAA-CREF LIFE FUNDS
Audited Financial Statements -
Growth Equity, Growth & Income, International Equity,
Social Choice Funds
March 10, 2000:
Report of Management Responsibility ................ B-20
Report of Independent Auditors ..................... B-21
Statements of Assets and Liabilities ............... B-22
Statements of Operations ........................... B-23
Statements of Changes in Net Assets ................ B-24
Financial Highlights ............................... B-25
Notes to Financial Statements ...................... B-26
Statements of Investments .......................... B-29
</TABLE>
B-19
<PAGE>
[LOGO: TIAA CREF]
- --------------------------------------------------------------------------------
REPORT OF MANAGEMENT RESPONSIBILITY
To the Shareholders of the TIAA-CREF Life Funds:
The accompanying financial statements of the Growth Equity, Growth & Income,
International Equity and Social Choice Equity Funds of TIAA-CREF Life Funds (the
"Funds") are the responsibility of management. They have been prepared in
accordance with accounting principles generally accepted in the United States
and have been presented fairly and objectively in accordance with such
principles.
TIAA-CREF Life Funds has established and maintains 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.
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.
/s/ Martin E. Galt, III
-----------------------------
President
/s/ Richard E. Gibbs
-----------------------------
Executive Vice President and
Chief Financial Officer
B-20
<PAGE>
[BEGIN GRAPHIC LOGO/LETTERHEAD]
ERNST & YOUNG LLP LOGO
[] 787 Seventh Avenue [] Phone: 212 773 3000
New York, New York 10019
[END GRAPHIC]
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees of
TIAA-CREF Life Funds:
We have audited the accompanying statements of assets and liabilities, including
the statements of investments, of the Growth Equity, Growth & Income,
International Equity and Social Choice Equity Funds (four of the Funds
constituting TIAA-CREF Life Funds) (the "Funds") as of March 10, 2000, and the
related statements of operations and changes in net assets and financial
highlights for the period March 1, 2000 (commencement of operations) to March
10, 2000. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted
in the United States. 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. Our procedures included confirmation of securities
owned as of March 10, 2000, by correspondence with the custodians 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 audit provides 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
Funds at March 10, 2000, and the results of their operations, the changes in
their net assets and the financial highlights for the period from March 1, 2000
to March 10, 2000, in conformity with accounting principles generally accepted
in the United States.
/s/ Ernst & Young LLP
March 21, 2000
B-21
<PAGE>
TIAA-CREF LIFE FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 10, 2000
<TABLE>
<CAPTION>
Growth Equity Growth & Income International Equity Social Choice Equity
Fund Fund Fund Fund
-------------- --------------- -------------------- --------------------
<S> <C> <C> <C> <C>
ASSETS
Portfolio investments, at cost ................ $50,113,488 $50,406,395 $67,983,565 $25,126,549
Net unrealized appreciation (depreciation)
of portfolio investments ..................... 1,313,824 195,642 (363,194) (349,425)
----------- ----------- ----------- -----------
Portfolio investments, at value ............... 51,427,312 50,602,037 67,620,371 24,777,124
Cash .......................................... 307 1,087 2,377,419 756
Dividends and interest receivable ............. 8,568 10,686 6,050 4,641
Receivable from securities transactions ....... 20,044 375,977 -- --
----------- ----------- ----------- -----------
TOTAL ASSETS 51,456,231 50,989,787 70,003,840 24,782,521
----------- ----------- ----------- -----------
LIABILITIES
Payable for securities transactions ........... -- 662,122 20,209,097 --
Accrued expenses .............................. 3,481 3,176 3,994 1,238
----------- ----------- ----------- -----------
TOTAL LIABILITIES 3,481 665,298 20,213,091 1,238
----------- ----------- ----------- -----------
NET ASSETS ..................................... $51,452,750 $50,324,489 $49,790,749 $24,781,283
=========== =========== =========== ===========
Net assets consist of:
Paid in capital ............................... $50,100,000 $50,100,000 $50,100,000 $25,100,000
Accumulated undistributed net investment
income ....................................... 55,359 58,801 70,930 30,708
Accumulated net realized gain (loss) on
total investments ............................ (16,433) (29,954) 9,994 --
Accumulated net unrealized appreciation
(depreciation) on total investments .......... 1,313,824 195,642 (390,175) (349,425)
----------- ----------- ----------- -----------
NET ASSETS ..................................... $51,452,750 $50,324,489 $49,790,749 $24,781,283
=========== =========== =========== ===========
NUMBER OF SHARES OUTSTANDING
$.0001 par value, unlimited number of
shares of beneficial interest authorized ..... 2,004,000 2,004,000 2,004,000 1,004,000
=========== =========== =========== ===========
Net asset value per share ..................... $ 25.68 $ 25.11 $ 24.85 $ 24.68
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
B-22
<PAGE>
TIAA-CREF LIFE FUNDS
STATEMENTS OF OPERATIONS
FOR THE PERIOD MARCH 1, 2000 (COMMENCEMENT
OF OPERATIONS) TO MARCH 10, 2000
<TABLE>
<CAPTION>
Growth Equity Growth & Income International Equity Social Choice Equity
Fund Fund Fund Fund
-------------- ---------------- --------------------- --------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends ....................................... $ 8,568 $ 10,686 $ 6,050 $ 4,641
Interest ........................................ 50,272 51,291 68,874 27,305
---------- --------- ---------- ----------
TOTAL INCOME 58,840 61,977 74,924 31,946
---------- --------- ---------- ----------
Expenses--Notes 3 and 5
Management fee .................................. 6,350 6,019 7,245 2,651
Trustee fees and expenses ....................... 30 30 30 15
---------- --------- ---------- ----------
EXPENSES BEFORE WAIVER 6,380 6,049 7,275 2,666
Less expenses waived by the advisor ............ (2,899) (2,873) (3,281) (1,428)
---------- --------- ---------- ----------
NET EXPENSES 3,481 3,176 3,994 1,238
---------- --------- ---------- ----------
INVESTMENT INCOME--NET 55,359 58,801 70,930 30,708
---------- --------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON TOTAL INVESTMENTS
Realized gain (loss) on:
Portfolio investments ............................ (16,433) (29,954) -- --
Foreign currency transactions .................... -- -- 9,994 --
---------- --------- ---------- ----------
Net realized gain (loss) on total investments ..... (16,433) (29,954) 9,994 --
---------- --------- ---------- ----------
Net change in unrealized appreciation (depreciation) on:
Portfolio investments ............................ 1,313,824 195,642 (363,194) (349,425)
Translation of assets (other than portfolio
investments) and liabilities
denominated in foreign currencies ............... -- -- (26,981) --
---------- --------- ---------- ----------
Net change in unrealized appreciation
(depreciation) on total investments ............. 1,313,824 195,642 (390,175) (349,425)
---------- --------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON TOTAL INVESTMENTS 1,297,391 165,688 (380,181) (349,425)
---------- --------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $1,352,750 $ 224,489 $ (309,251) $ (318,717)
========== ========= ========== ==========
</TABLE>
See notes to financial statements.
B-23
<PAGE>
TIAA-CREF LIFE FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD MARCH 1, 2000 (COMMENCEMENT
OF OPERATIONS) TO MARCH 10, 2000
<TABLE>
<CAPTION>
Growth Equity Growth & Income International Equity Social Choice Equity
Fund Fund Fund Fund
--------------- ----------------- ---------------------- ---------------------
<S> <C> <C> <C> <C>
CHANGE IN NET ASSETS
OPERATIONS:
Investment income--net ......................... $ 55,359 $ 58,801 $ 70,930 $ 30,708
Net realized gain (loss) on total investments .. (16,433) (29,954) 9,994 --
Net change in unrealized appreciation
(depreciation) on total investments ........... 1,313,824 195,642 (390,175) (349,425)
----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS 1,352,750 224,489 (309,251) (318,717)
----------- ----------- ----------- -----------
SHAREHOLDER TRANSACTIONS:
Seed money subscriptions ...................... 50,100,000 50,100,000 50,100,000 25,100,000
----------- ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING
FROM SHAREHOLDER TRANSACTIONS 50,100,000 50,100,000 50,100,000 25,100,000
----------- ----------- ----------- -----------
NET ASSETS, end of period ...................... $51,452,750 $50,324,489 $49,790,749 $24,781,283
=========== =========== =========== ===========
</TABLE>
See notes to financial statements.
B-24
<PAGE>
TIAA-CREF LIFE FUNDS
FINANCIAL HIGHLIGHTS
FOR THE PERIOD MARCH 1, 2000 (COMMENCEMENT
OF OPERATIONS) TO MARCH 10, 2000
<TABLE>
<CAPTION>
Growth Equity Growth & Income International Equity Social Choice Equity
Fund Fund Fund Fund
------------- --------------- -------------------- --------------------
<S> <C> <C> <C> <C>
SELECTED PER SHARE DATA:
Net asset value, beginning of period ............. $ 25.00 $ 25.00 $ 25.00 $ 25.00
------- ------- ------- -------
Gain from investment operations:
Net investment income ........................... 0.03 0.03 0.04 0.03
Net realized and unrealized gain (loss) on
total investments .............................. 0.65 0.08 (0.19) (0.35)
------- ------- ------- -------
Total gain (loss) from investment operations ..... 0.68 0.11 (0.15) (0.32)
------- ------- ------- -------
Net asset value, end of period ................... $ 25.68 $ 25.11 $ 24.85 $ 24.68
======= ======= ======= =======
TOTAL RETURN ..................................... 2.72% 0.44% (0.60%) (1.28%)
RATIOS AND SUPPLEMENTAL DATA
Net assets at end of period (in thousands) ....... $51,453 $50,324 $49,791 $24,781
Ratio of expenses to average net assets before
expense waiver .................................. 0.01% 0.01% 0.02% 0.01%
Ratio of expenses to average net assets after
expense waiver .................................. 0.01% 0.01% 0.01% 0.01%
Ratio of net investment income to average net
assets .......................................... 0.12% 0.13% 0.16% 0.14%
Portfolio turnover rate .......................... 0.00% 0.00% 0.00% 0.00%
</TABLE>
The percentages shown above are not annualized.
See notes to financial statements.
B-25
<PAGE>
TIAA-CREF LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS
NOTE 1--ORGANIZATION
TIAA-CREF Life Funds is a Delaware business trust that was organized on August
13, 1998 and is registered with the Securities and Exchange Commission
("Commission") under the Investment Company Act of 1940 as an open-end
management investment company. It consists of five series, the Stock Index Fund
which invests in a diversified portfolio selected to track the overall market
for common stocks publicly traded in the United States, as represented by a
broad stock market index; the Growth Equity Fund which invests primarily in a
diversified portfolio of common stocks that present the opportunity for
exceptional growth; the Growth & Income Fund which invests primarily in a
broadly diversified portfolio of common stocks selected for their investment
potential; the International Equity Fund which invests primarily in a broadly
diversified portfolio of foreign equity investments and the Social Choice Equity
Fund which invests primarily in a diversified set of common stocks of companies
whose activities are consistent with the Fund's social criteria. These financial
statements consist of the Growth Equity, Growth & Income, International Equity
and Social Choice Equity Funds (the "Funds"). The financial statements of the
Stock Index Fund are not included in these financial statements.
TIAA-CREF Life Separate Account VA-1 (the "Account"), which is registered with
the Commission as a unit investment trust under the 1940 Act consists of five
sub-accounts which correspond to and invest in each of the Funds. The Account is
a separate account of TIAA-CREF Life Insurance Company ("TIAA-CREF Life") which
commenced operations as a legal reserve life insurance company under the
insurance laws of the State of New York on December 18, 1996, and is a
wholly-owned indirect subsidiary of Teachers Insurance and Annuity Association
of America ("TIAA"), also a legal reserve life insurance company which was
established under the insurance laws of the State of New York in 1918.
The Funds commenced operations on March 1, 2000, when the Accounts purchased
4,000 shares at $25.00 per share for a total of $100,000 in each of the
corresponding Funds. On March 1, 2000, TIAA purchased 2,000,000 shares at $25
per share for a total of $50,000,000 in each of the Growth Equity, Growth &
Income and International Equity Funds and also purchased 1,000,000 shares at $25
per share for a total of $25,000,000 in the Social Choice Equity Fund. At March
10, 2000, the values of these investments were as follows:
<TABLE>
<CAPTION>
Accounts TIAA
--------- -----------
<S> <C> <C>
Growth Equity Fund ................. $100,720 $51,352,030
Growth & Income Fund ............... 100,440 50,224,049
International Equity Fund .......... 99,400 49,691,349
Social Choice Equity Fund .......... 98,720 24,682,563
</TABLE>
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. Advisors has borne any costs necessary
to organize the Funds.
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 accounting principles
generally accepted in the United States.
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. Money market instruments are valued at fair market value,
except for such instruments within 60 days to maturity, which are valued at
amortized cost, which approximates market value. 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.
B-26
<PAGE>
TIAA-CREF LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS
Accounting for Investments: Securities transactions are accounted for as of the
date the securities are purchased or sold (trade date). Realized gains and
losses on securities transactions are accounted for on the specific
identification basis. Interest income is recorded as earned and, for short-term
money market instruments, includes accrual of discount and amortization of
premium. Dividend income is recorded on the ex-dividend date, except for certain
foreign dividends which are recorded as the Funds are informed of the
ex-dividend date.
Foreign Currency Transactions and Translation: The records of the Funds are
maintained in U.S. dollars. Portfolio investments and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollars
at the exchange rates prevailing at the end of the period. Purchases and sales
of securities, income receipts and expense payments made in foreign currencies
are translated into U.S. dollars at the exchange rates prevailing on the
respective dates of the transactions. The effects of changes in foreign currency
exchange rates on portfolio investments are included in the realized and
unrealized gains and losses on investments. Net realized gains and losses on
foreign currency transactions include maturities of forward foreign currency
contracts, disposition of foreign currencies, and currency gains and losses
between the accrual and receipt dates of portfolio investment income and between
the trade and settlement dates of portfolio investment transactions.
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 net unrealized gains and losses. Gains or losses are
realized upon maturity or if the counterparties do not perform in accordance
with contractual provisions.
Federal Income Taxes: The Funds intend to qualify as regulated investment
companies under Subchapter M of the Internal Revenue Code, and will not be
subject to income taxes to the extent that they distribute substantially all
taxable income each year.
NOTE 3--MANAGEMENT AGREEMENTS
Under the terms of an Investment Management Agreement, each Fund pays a fee for
investment management services, 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. As a result, Advisors will receive the following annual
percentages of each Fund's average daily net assets:
<TABLE>
<CAPTION>
Management Management Fee
Fee Waiver After Waiver
---------- ---------- --------------
<S> <C> <C> <C>
Growth & Equity Fund .............. 0.43% 0.18% 0.25%
Growth & Income Fund .............. 0.43% 0.20% 0.23%
International Equity Fund ......... 0.52% 0.23% 0.29%
Social Choice Equity Fund ......... 0.39% 0.21% 0.18%
</TABLE>
NOTE 4--INVESTMENTS
At March 10, 2000, the net unrealized appreciation (depreciation) on
investments, consisting of gross unrealized appreciation and gross unrealized
depreciation for the Funds was as follows:
<TABLE>
<CAPTION>
Net Unrealized
Gross Unrealized Appreciation
Appreciation Depreciation (Depreciation)
------------ ------------ --------------
<S> <C> <C> <C>
Growth Equity Fund ................ $2,484,143 $1,170,319 $1,313,824
Growth & Income Fund .............. 1,571,682 1,376,040 195,642
International Equity Fund ......... 1,190,915 1,554,109 (363,194)
Social Choice Equity Fund ......... 528,289 877,714 (349,425)
</TABLE>
B-27
<PAGE>
TIAA-CREF LIFE FUNDS
NOTES TO FINANCIAL STATEMENTS
Purchases and sales of securities, other than short-term money market
instruments, by the Funds for the period March 1, 2000 (commencement of
operations) to March 10, 2000, were as follows:
<TABLE>
<CAPTION>
Purchases Sales
-------------- -----------
<S> <C> <C>
Growth Equity Fund ................. $50,338,891 $308,843
Growth & Income Fund ............... 50,494,427 525,376
International Equity Fund .......... 47,566,851 --
Social Choice Equity Fund .......... 24,936,608 --
</TABLE>
NOTE 5--TRUSTEE FEES
The Funds pay their 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 from
the Funds.
B-28
<PAGE>
TIAA-CREF LIFE FUNDS
STATEMENT OF INVESTMENTS--GROWTH EQUITY FUND
MARCH 10, 2000
SUMMARY BY INDUSTRY
<TABLE>
<CAPTION>
VALUE %
-------------- ----------
<S> <C> <C>
COMMON STOCK
AGRICULTURAL PRODUCTION-CROPS .............. $ 2,203 0.00%
AGRICULTURAL SERVICES ...................... 783 0.00
AMUSEMENT AND RECREATION SERVICES .......... 510,253 0.99
APPAREL AND ACCESSORY STORES ............... 104,865 0.20
APPAREL AND OTHER TEXTILE PRODUCTS ......... 7,291 0.01
AUTO REPAIR, SERVICES AND PARKING .......... 1,196 0.00
AUTOMOTIVE DEALERS AND SERVICE STATIONS 8,574 0.02
BUILDING MATERIALS AND GARDEN SUPPLIES ..... 347,910 0.68
BUSINESS SERVICES .......................... 10,550,373 20.51
CHEMICALS AND ALLIED PRODUCTS .............. 4,529,423 8.80
COMMUNICATIONS ............................. 6,283,280 12.21
DEPOSITORY INSTITUTIONS .................... 264,927 0.52
EATING AND DRINKING PLACES ................. 84,480 0.16
EDUCATIONAL SERVICES ....................... 8,884 0.02
ELECTRIC, GAS, AND SANITARY SERVICES ....... 105,422 0.21
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT 12,068,159 23.46
ENGINEERING AND MANAGEMENT SERVICES ........ 65,756 0.13
FABRICATED METAL PRODUCTS .................. 79,783 0.16
FOOD AND KINDRED PRODUCTS .................. 545,626 1.06
FOOD STORES ................................ 329,890 0.64
FURNITURE AND FIXTURES ..................... 220,436 0.43
FURNITURE AND HOMEFURNISHINGS STORES ....... 318,794 0.62
GENERAL BUILDING CONTRACTORS ............... 1,543 0.00
GENERAL MERCHANDISE STORES ................. 470,768 0.92
HEALTH SERVICES ............................ 128,451 0.25
HEAVY CONSTRUCTION, EXCEPT BUILDING ........ 9,513 0.02
HOLDING AND OTHER INVESTMENT OFFICES ....... 14,711 0.03
HOTELS AND OTHER LODGING PLACES ............ 7,456 0.01
INDUSTRIAL MACHINERY AND EQUIPMENT ......... 9,427,852 18.32
INSTRUMENTS AND RELATED PRODUCTS ........... 846,137 1.64
INSURANCE AGENTS, BROKERS AND SERVICE ...... 6,155 0.01
INSURANCE CARRIERS ......................... 169,850 0.33
LEATHER AND LEATHER PRODUCTS ............... 546 0.00
LEGAL SERVICES ............................. 1,425 0.00
LUMBER AND WOOD PRODUCTS ................... 1,090 0.00
METAL MINING ............................... 9,323 0.02
MISCELLANEOUS MANUFACTURING
INDUSTRIES ................................ 9,452 0.02
MISCELLANEOUS REPAIR SERVICES .............. 328 0.00
</TABLE>
<TABLE>
<CAPTION>
VALUE %
-------------- ----------
<S> <C> <C>
MISCELLANEOUS RETAIL ....................... $ 174,069 0.34%
MOTION PICTURES ............................ 582,889 1.13
NONDEPOSITORY INSTITUTIONS ................. 192,439 0.37
OIL AND GAS EXTRACTION ..................... 71,002 0.14
PAPER AND ALLIED PRODUCTS .................. 58,040 0.11
PERSONAL SERVICES .......................... 13,023 0.03
PETROLEUM AND COAL PRODUCTS ................ 2,756 0.01
PRIMARY METAL INDUSTRIES ................... 1,742 0.00
PRINTING AND PUBLISHING .................... 31,104 0.06
RAILROAD TRANSPORTATION .................... 24,114 0.05
REAL ESTATE ................................ 4,622 0.01
RUBBER AND MISCELLANEOUS PLASTIC0
PRODUCTS .................................. 118,127 0.23
SECURITY AND COMMODITY BROKERS ............. 143,598 0.28
SOCIAL SERVICES ............................ 1,213 0.00
SPECIAL TRADE CONTRACTORS .................. 5,172 0.01
STONE, CLAY, AND GLASS PRODUCTS ............ 279,116 0.54
TEXTILE MILL PRODUCTS ...................... 2,151 0.00
TOBACCO PRODUCTS ........................... 64,296 0.12
TRANSPORTATION BY AIR ...................... 2,600 0.01
TRANSPORTATION EQUIPMENT ................... 1,330,379 2.59
TRANSPORTATION SERVICES .................... 10,977 0.02
TRUCKING AND WAREHOUSING ................... 3,932 0.01
WATER TRANSPORTATION ....................... 208,499 0.41
WHOLESALE TRADE-DURABLE GOODS .............. 12,576 0.02
WHOLESALE TRADE-NONDURABLE GOODS ........... 445,999 0.87
----------- ------
TOTAL COMMON STOCK
(Cost $50,013,519) ......................... 51,327,343 99.76
----------- ------
SHORT TERM INVESTMENT
U.S. GOVERNMENT AGENCY ...................... 99,969 0.19
----------- ------
TOTAL SHORT TERM INVESTMENT .................
(Cost $99,969) ............................. 99,969 0.19
----------- ------
TOTAL PORTFOLIO
(Cost $50,113,488) ......................... 51,427,312 99.95
OTHER ASSETS & LIABILITIES, NET ............. 25,438 0.05
----------- ------
NET ASSETS .................................. $51,452,750 100.00%
=========== ======
</TABLE>
B-29 See notes to financial statements.
<PAGE>
TIAA-CREF LIFE FUNDS
STATEMENT OF INVESTMENTS--GROWTH EQUITY FUND
MARCH 10, 2000
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
COMMON STOCK--99.76%
AGRICULTURAL PRODUCTION-CROPS--0.00%
95 DELTA & PINE LAND CO ..................... $ 1,816
50 * HINES HORTICULTURE, INC .................. 387
--------
2,203
--------
AGRICULTURAL SERVICES--0.00%
87 * CADIZ, INC ............................... 783
--------
AMUSEMENT AND RECREATION SERVICES--0.99%
50 * ARGOSY GAMING CORP ....................... 693
50 * BALLY TOTAL FITNESS HOLDINGS CORP ........ 1,225
67 INTERNATIONAL SPEEDWAY CORP (CLASS A ) ... 2,788
12,266 * PREMIER PARKS, INC ....................... 239,187
7,202 * SFX ENTERTAINMENT, INC (CLASS A) ......... 259,722
50 * STATION CASINOS, INC ..................... 965
85 * WESTWOOD ONE, INC ........................ 5,673
--------
510,253
--------
APPAREL AND ACCESSORY STORES--0.20%
240 * ABERCROMBIE & FITCH CO (CLASS A) ......... 3,660
50 * AMERICAN EAGLE OUTFITTERS, INC ........... 1,346
50 * ANN TAYLOR STORES CORP ................... 1,196
50 * CHILDRENS PLACE RETAIL STORES ............ 700
86 CLAIRES STORES, INC ...................... 1,456
1,619 GAP, INC ................................. 74,676
50 * GENESCO, INC ............................. 493
105 INTIMATE BRANDS, INC (CLASS A) ........... 3,327
63 * MEN'S WEARHOUSE, INC ..................... 1,496
50 NORDSTROM, INC ........................... 1,106
68 * PACIFIC SUNWEAR CALIFORNIA, INC .......... 1,691
102 ROSS STORES, INC ......................... 1,676
50 * STEIN MART, INC .......................... 300
770 TJX COS, INC ............................. 11,742
--------
104,865
--------
APPAREL AND OTHER TEXTILE PRODUCTS--0.01%
259 * JONES APPAREL GROUP, INC ................. 6,604
50 * QUIKSILVER, INC .......................... 687
--------
7,291
--------
AUTO REPAIR, SERVICES AND PARKING--0.00%
50 MIDAS, INC ............................... 1,196
--------
AUTOMOTIVE DEALERS AND SERVICE STATIONS--0.02%
431 * AUTONATION, INC .......................... 3,178
109 * AUTOZONE, INC ............................ 2,377
91 * COPART, INC .............................. 1,541
50 * CSK AUTO CORP ............................ 628
85 * OREILLY AUTOMOTIVE, INC .................. 850
--------
8,574
--------
BUILDING MATERIALS AND GARDEN SUPPLIES--0.68%
69 FASTENAL CO .............................. 2,622
5,719 HOME DEPOT, INC .......................... 307,038
850 LOWES COS, INC ........................... 38,250
--------
347,910
--------
BUSINESS SERVICES--20.51%
102 * ACCLAIM ENTERTAINMENT, INC ............... 522
79 * ACNEILSEN CORP ........................... 1,530
64 * ACTIVISION, INC .......................... 916
61 * ACTUATE CORP ............................. 4,113
146 * ACXIOM CORP .............................. 5,164
307 ADOBE SYSTEMS, INC ....................... 25,557
50 * ADVO, INC ................................ 1,275
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
76 * AFFILIATED COMPUTER SERVICES, INC
(CLASS A) ................................ $ 2,417
5,553 * AMERICA ONLINE, INC ...................... 328,668
104 * AMERICAN MANAGEMENT SYSTEMS, INC ......... 4,257
50 ANALYSTS INTERNATIONAL CORP .............. 550
68 * ANSWERTHINK CONSULTING GROUP ............. 1,802
50 * ASPECT DEVELOPMENT, INC .................. 8,500
50 * ASPEN TECHNOLOGY, INC .................... 2,100
50 AUTODESK, INC ............................ 2,743
1,553 AUTOMATIC DATA PROCESSING, INC ........... 68,526
72 * AVANT CORP ............................... 1,039
61 * AVT CORP ................................. 1,967
50 * AWARE, INC ............................... 2,481
70 * AXENT TECHNOLOGIES, INC .................. 2,135
61 * BANYAN SYSTEMS, INC ...................... 1,258
393 * BEA SYSTEMS, INC ......................... 52,662
60 * BEYOND.COM CORP .......................... 360
96 * BILLING CONCEPTS CORP .................... 846
83 * BINDVIEW DEVELOPMENT CORP ................ 3,460
68 * BISYS GROUP, INC ......................... 3,638
7,000 * BMC SOFTWARE, INC ........................ 363,562
50 * BRIO TECHNOLOGY, INC ..................... 2,000
138 * BROADVISION, INC ......................... 35,638
325 * CADENCE DESIGN SYSTEMS, INC .............. 7,190
127 * CAMBRIDGE TECHNOLOGY PARTNERS, INC ....... 1,730
50 * CCC INFORMATION SERVICES GROUP, INC ...... 1,362
865 * CENDANT CORP ............................. 15,678
161 * CENTURY BUSINESS SERVICES, INC ........... 548
5,915 * CERIDIAN CORP ............................ 111,645
65 * CERNER CORP .............................. 2,112
90 * CHECKFREE HOLDINGS CORP .................. 7,976
73 * CHOICEPOINT, INC ......................... 3,020
112 * CIBER, INC ............................... 2,576
400 * CITRIX SYSTEMS, INC ...................... 43,000
50 * CLARIFY, INC ............................. 8,050
400 * CMGI, INC ................................ 54,575
50 * COMPLETE BUSINESS SOLUTIONS, INC ......... 1,225
1,035 COMPUTER ASSOCIATES INTERNATIONAL, INC ... 68,827
77 * COMPUTER HORIZONS CORP ................... 1,915
50 * COMPUTER NETWORK TECHNOLOGY CORP ......... 1,134
331 * COMPUTER SCIENCES CORP ................... 26,748
50 COMPUTER TASK GROUP, INC ................. 662
400 * COMPUWARE CORP ........................... 9,550
50 * CRITICAL PATH, INC ....................... 5,695
119 * CSG SYSTEMS INTERNATIONAL, INC ........... 7,273
50 * CYBERCASH, INC ........................... 681
75 * DATA BROADCASTING CORP ................... 684
50 * DATASTREAM SYSTEMS, INC .................. 2,171
75 * DENDRITE INTERNATIONAL, INC .............. 1,584
216 * DOUBLECLICK, INC ......................... 25,407
63 * DSP GROUP, INC ........................... 3,528
176 * EARTHLINK, INC ........................... 4,180
74 * EBAY, INC ................................ 14,300
50 * ECHELON CORP ............................. 4,525
87 * ECLIPSYS CORP ............................ 2,495
157 * ELECTRONIC ARTS, INC ..................... 14,571
7,853 ELECTRONIC DATA SYSTEMS CORP ............. 482,959
122 * ELECTRONICS FOR IMAGING, INC ............. 7,724
99 * ELOYALTY CORP ............................ 2,823
50 * ENTRUST TECHNOLOGIES, INC ................ 6,409
101 * EPICOR SOFTWARE CORP ..................... 849
351 EQUIFAX, INC ............................. 7,743
343 * EXCITE AT HOME ........................... 9,796
</TABLE>
B-30 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
BUSINESS SERVICES--(Continued)
50 FACTSET RESEARCH SYSTEMS, INC ........... $ 1,540
76 * FILENET CORP ............................ 3,087
245 FIRST DATA CORP ......................... 10,259
305 * FISERV, INC ............................. 10,408
73 * GETTY IMAGES, INC ....................... 3,494
126 * GO.COM .................................. 3,039
50 * GO2NET, INC ............................. 4,253
60 * GT INTERACTIVE SOFTWARE CORP ............ 240
50 * GTECH HOLDINGS CORP ..................... 968
96 * HARBINGER CORP .......................... 3,318
50 * HEALTHEON/WEBMD CORP .................... 2,050
61 * HNC SOFTWARE ............................ 7,212
80 * HYPERION SOLUTIONS CORP ................. 4,520
166 * I2 TECHNOLOGIES, INC .................... 34,528
87 * IGATE CAPITAL CORP ...................... 5,241
50 * IMRGLOBAL CORP .......................... 787
765 IMS HEALTH, INC ......................... 16,208
72 * INFOCURE CORP ........................... 1,192
600 * INFORMIX CORP ........................... 12,300
118 * INFOSPACE.COM, INC ...................... 28,902
50 * INFOUSA, INC ............................ 762
177 * INKTOMI CORP ............................ 29,968
50 * INTERIM SERVICES, INC ................... 1,356
6,197 INTERPUBLIC GROUP OF COS, INC ........... 229,289
321 * INTUIT, INC ............................. 18,758
63 * ISS GROUP, INC .......................... 7,878
50 * IVILLAGE, INC ........................... 1,193
75 * J.D. EDWARDS & CO ....................... 3,328
140 * KEANE, INC .............................. 3,587
50 * KORN FERRY INTERNATIONAL ................ 1,728
89 * LABOR READY, INC ........................ 750
124 * LAMAR ADVERTISING CO (CLASS A) .......... 6,711
85 * LEARN2.COM, INC ......................... 515
187 * LEGATO SYSTEMS, INC ..................... 6,720
60 * LHS GROUP, INC .......................... 2,640
196 * LYCOS, INC .............................. 14,357
106 * MACROMEDIA, INC ......................... 9,526
50 * MAPICS, INC ............................. 981
89 * MEDQUIST, INC ........................... 2,280
62 * MENTOR GRAPHICS CORP .................... 899
191 * MERCURY INTERACTIVE CORP ................ 21,941
72 * MESSAGEMEDIA, INC ....................... 1,008
85 * METAMOR WORLDWIDE, INC .................. 1,556
50 * MICROMUSE, INC .......................... 9,031
25,700 MICROSOFT CORP .......................... 2,595,700
192 * MICROSTRATEGY, INC ...................... 60,096
66 * MIDWAY GAMES, INC ....................... 1,328
101 * MODIS PROFESSIONAL SERVICES, INC ........ 1,647
80 NATIONAL COMPUTER SYSTEMS, INC .......... 3,965
73 NATIONAL DATA CORP ...................... 2,135
50 * NATIONAL EQUIPMENT SERVICES, INC ........ 303
327 * NETWORK APPLIANCE, INC .................. 77,458
189 * NETWORKS ASSOCIATES, INC ................ 5,894
60 * NEW ERA OF NETWORKS, INC ................ 5,115
108 * NOVA CORP (GEORGIA) ..................... 2,598
800 * NOVELL, INC ............................. 25,100
3,241 OMNICOM GROUP, INC ...................... 271,231
50 * ONEMAIN.COM, INC ........................ 581
84 * OPEN MARKET, INC ........................ 5,076
29,600 * ORACLE CORP ............................. 2,416,100
400 * PARAMETRIC TECHNOLOGY CORP .............. 12,350
300 PAYCHEX, INC ............................ 15,262
50 * PEGASUS SYSTEMS, INC .................... 1,187
400 * PEOPLESOFT, INC ......................... 9,850
69 * PER SE TECHNOLOGIES, INC ................ 448
128 * PEREGRINE SYSTEMS, INC .................. 9,632
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
128 * PEROT SYSTEMS CORP (CLASS A) ............ $ 2,880
88 * POLICY MANAGEMENT SYSTEMS CORP .......... 709
76 * PRICELINE.COM, INC ...................... 7,182
77 * PROGRESS SOFTWARE CORP .................. 1,588
50 * PROTECTION ONE, INC ..................... 84
50 * PROXYMED, INC ........................... 498
2,126 * PSINET, INC ............................. 118,790
50 * QUADRAMED CORP .......................... 343
76 * RARE MEDIUM GROUP, INC .................. 6,688
220 * RATIONAL SOFTWARE CORP .................. 19,126
160 * REALNETWORKS, INC ....................... 13,060
63 * REMEDY CORP ............................. 3,614
50 * RENT WAY, INC ........................... 868
50 * RENT-A-CENTER, INC ...................... 762
223 * ROBERT HALF INTERNATIONAL, INC .......... 8,933
50 ROLLINS, INC ............................ 768
101 * ROMAC INTERNATIONAL, INC ................ 1,451
90 * RSA SECURITY, INC ....................... 7,846
50 * SABRE GROUP HOLDINGS CORP ............... 2,387
71 * SAGA SYSTEMS, INC ....................... 2,476
50 * SANTA CRUZ OPERATION, INC ............... 859
66 * SAPIENT CORP ............................ 7,528
50 SHARED MEDICAL SYSTEMS CORP ............. 2,909
2,140 * SIEBEL SYSTEMS, INC ..................... 348,552
85 * SITEL CORP .............................. 706
127 * SNYDER COMMUNICATIONS, INC .............. 3,071
50 * SOFTNET SYSTEMS, INC .................... 1,731
103 SOTHEBYS HOLDINGS, INC (CLASS A) ........ 2,208
50 * SPORTSLINE.COM .......................... 2,887
50 * SPYGLASS, INC ........................... 4,068
197 * STERLING COMMERCE, INC .................. 8,594
83 * STRUCTURAL DYNAMICS RESEARCH CORP ....... 1,431
9,900 * SUN MICROSYSTEMS, INC ................... 932,456
276 * SUNGARD DATA SYSTEMS, INC ............... 8,556
61 * SVI HOLDINGS, INC ....................... 632
50 * SYKES ENTERPRISES, INC .................. 946
110 * SYMANTEC CORP ........................... 8,889
145 * SYNOPSYS, INC ........................... 6,280
80 * SYSTEMS & COMPUTER TECHNOLOGY CORP ...... 1,920
107 * TECHNOLOGY SOLUTIONS CO ................. 969
50 * TELETECH HOLDINGS, INC .................. 1,956
50 * THQ, INC ................................ 981
134 * TMP WORLDWIDE, INC ...................... 12,194
93 TOTAL SYSTEM SERVICES, INC .............. 1,476
81 * TRANSACTION SYSTEM ARCHITECTURE ......... 2,905
67 TRUE NORTH COMMUNICATIONS, INC .......... 2,680
99 * TYLER TECHNOLOGIES, INC ................. 587
50 * UNITED RENTALS, INC ..................... 728
140 * VALASSIS COMMUNICATIONS, INC ............ 4,541
169 * VERIO, INC .............................. 9,464
191 * VERISIGN, INC ........................... 45,828
3,450 * VERITAS SOFTWARE CORP ................... 581,971
77 * VERITY, INC ............................. 4,268
88 * VERTICALNET, INC ........................ 24,040
60 * VIGNETTE CORP ........................... 17,820
67 * WAVE SYSTEMS CORP (CLASS A) ............. 2,650
131 * WIND RIVER SYSTEMS, INC ................. 6,517
1,300 * YAHOO, INC .............................. 231,481
2,284 YOUNG & RUBICAM, INC .................... 95,071
----------
10,550,373
----------
CHEMICALS AND ALLIED PRODUCTS--8.80%
3,695 ABBOTT LABORATORIES CO .................. 114,314
60 * ALKERMES, INC ........................... 8,572
337 ALLERGAN, INC ........................... 16,049
50 ALPHARMA, INC (CLASS A) ................. 1,893
217 * ALZA CORP ............................... 7,974
8,201 AMERICAN HOME PRODUCTS CORP ............. 405,949
</TABLE>
B-31 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
CHEMICALS AND ALLIED PRODUCTS--(Continued)
2,400 * AMGEN, INC .............................. $ 142,950
50 * ANDRX CORP .............................. 4,987
602 AVON PRODUCTS, INC ...................... 15,802
131 * BIO-TECHNOLOGY GENERAL CORP ............. 2,071
373 * BIOGEN, INC ............................. 31,355
4,648 BRISTOL MYERS SQUIBB CO ................. 243,439
495 * CAREMARK RX, INC ........................ 1,949
50 * CELL PATHWAYS, INC ...................... 1,918
76 * CEPHALON, INC ........................... 4,807
120 * CHIRON CORP ............................. 7,192
97 CHURCH & DWIGHT CO, INC ................. 1,448
107 CK WITCO CORP ........................... 1,056
582 CLOROX CO ............................... 17,387
1,448 COLGATE PALMOLIVE CO .................... 61,902
50 * COLUMBIA LABORATORIES, INC .............. 881
50 * COR THERAPEUTICS, INC ................... 4,384
50 * COULTER PHARMACEUTICALS, INC ............ 2,150
50 * CYGNUS, INC ............................. 887
235 DIAL CORP ............................... 2,585
295 DU PONT (E.I.) DE NEMOURS & CO .......... 13,551
50 * DURA PHARMACEUTICALS, INC ............... 737
50 * DURAMED PHARMACEUTICALS, INC ............ 437
280 ECOLAB, INC ............................. 8,505
6,200 * ELAN CORP PLC ADR ....................... 246,062
91 * ENZON, INC .............................. 6,045
50 FERRO CORP .............................. 931
208 * FOREST LABORATORIES, INC ................ 14,716
69 * GENZYME CORP (GENERAL DIVISION) ......... 3,976
50 * GEORGIA GULF CORP ....................... 1,012
109 * GILEAD SCIENCES, INC .................... 7,813
89 * GRACE W.R. & CO ......................... 912
3,800 * GUILFORD PHARMACEUTICALS, INC ........... 139,412
60 * HEMISPHERX BIOPHARMA, INC ............... 1,061
115 * HUMAN GENOME SCIENCES, INC .............. 19,837
177 ICN PHARMACEUTICALS, INC ................ 4,391
96 * ICOS CORP ............................... 4,644
105 * IDEC PHARMACEUTICALS CORP ............... 13,577
91 * IDEXX LABORATORIES, INC ................. 2,542
71 * IMCLONE SYSTEMS, INC .................... 9,585
187 * IMMUNEX CORP ............................ 39,877
76 * ISIS PHARMACEUTICALS, INC ............... 1,824
243 * IVAX CORP ............................... 6,834
3,741 JOHNSON & JOHNSON CO .................... 264,909
136 JONES PHARMACEUTICAL, INC ............... 5,482
69 * KING PHARMACEUTICALS, INC ............... 3,217
217 LAUDER (ESTEE) CO (CLASS A) ............. 8,625
112 * LIGAND PHARMACEUTICALS CO (CLASS A) ..... 2,072
5,073 LILLY (ELI) & CO ........................ 310,404
97 * LIPOSOME CO, INC ........................ 1,418
50 * MACROCHEM CORP (DELAWARE) ............... 342
71 * MEDICIS PHARMACEUTICAL CORP (CLASS A) ... 3,479
139 * MEDIMMUNE, INC .......................... 26,679
12,405 MERCK & CO, INC ......................... 738,872
92 * MILLENNIUM PHARMACEUTICALS, INC ......... 21,666
1,576 MONSANTO CO ............................. 62,646
271 MYLAN LABORATORIES, INC ................. 7,554
76 * ORGANOGENESIS, INC ...................... 1,372
10,916 PFIZER, INC ............................. 383,424
3,764 PROCTER & GAMBLE CO ..................... 199,727
50 * REVLON, INC (CLASS A) ................... 518
84 * REXALL SUNDOWN, INC ..................... 1,249
11,649 SCHERING-PLOUGH CORP .................... 436,109
168 * SEPRACOR, INC ........................... 18,858
50 * SICOR, INC .............................. 540
50 * SUPERGEN, INC ........................... 3,303
50 * TECHNE CORP ............................. 3,856
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
60 * THERAGENICS CORP ........................ $ 930
50 * TRANSKARYOTIC THERAPIES, INC ............ 3,471
81 * TRIANGLE PHARMACEUTICALS, INC ........... 1,270
50 * VENTIV HEALTH, INC ...................... 468
50 * VICAL, INC .............................. 2,407
3,833 * WARNER-LAMBERT CO ....................... 354,073
221 * WATSON PHARMACEUTICALS, INC ............. 8,301
-----------
4,529,423
-----------
COMMUNICATIONS--12.21%
100 * ADELPHIA COMMUNICATIONS CORP
(CLASS A) ............................... 4,981
60 * ADVANCED RADIO TELECOM CORP ............. 2,621
50 * AERIAL COMMUNICATIONS, INC .............. 2,634
242 * ALLEGIANCE TELECOM, INC ................. 23,927
277 ALLTEL CORP ............................. 18,853
50 * AMERICAN MOBILE SATELLITE CORP .......... 2,015
7,900 * AMFM, INC ............................... 450,300
6,100 AT & T CORP ............................. 331,306
12,639 * AT & T CORP--LIBERTY MEDIA GROUP
(CLASS A) ............................... 665,127
2,742 BROADWING, INC .......................... 106,766
205 * CABLEVISION SYSTEMS CORP (CLASS A) ...... 12,325
82 * CAPROCK COMMUNICATIONS CORP ............. 4,264
11,698 * CBS CORP ................................ 671,172
50 * CITADEL COMMUNICATIONS CORP ............. 2,006
1,154 * CLEAR CHANNEL COMMUNICATIONS, INC ....... 71,475
50 * COM21, INC .............................. 3,525
1,700 COMCAST CORP (CLASS A) SPECIAL .......... 68,743
105 * CONCENTRIC NETWORK CORP ................. 6,030
197 * COVAD COMMUNICATIONS GROUP .............. 19,133
165 * COX COMMUNICATIONS, INC (CLASS A) ....... 7,435
50 * CUMULUS MEDIA, INC ...................... 1,278
127 * E.SPIRE COMMUNICATIONS, INC ............. 1,833
114 * EMMIS COMMUNICATIONS (CLASS A) .......... 3,975
50 * ENTERCOM COMMUNICATIONS CORP ............ 2,293
5,400 ERICSSON TELEFON (LM) SERIES B ADR ...... 543,375
400 * EXODUS COMMUNICATIONS, INC .............. 65,825
335 * FOX ENTERTAINMENT GROUP, INC ............ 8,584
447 * GLOBAL TELESYSTEMS GROUP, INC ........... 13,577
104 * HISPANIC BROADCASTING CORP .............. 10,582
118 * ICG COMMUNICATIONS, INC ................. 4,196
50 * IDT CORP ................................ 1,731
4,622 * INFINITY BROADCASTING CORP (CLASS A) .... 153,103
120 * INTERMEDIA COMMUNICATIONS, INC .......... 8,917
50 * INTERNATIONAL FIBERCOM, INC ............. 1,450
120 * ITC DELTACOM, INC ....................... 5,017
50 * LEAP WIRELESS INTERNATIONAL, INC ........ 4,506
500 * LEVEL 3 COMMUNICATIONS, INC ............. 65,093
114 * LIBERTY DIGITAL, INC (CLASS A) .......... 5,999
19,918 LUCENT TECHNOLOGIES, INC ................ 1,346,954
9,800 * MCI WORLDCOM, INC ....................... 457,537
271 * MCLEODUSA, INC (CLASS A) ................ 28,319
315 * MEDIA ONE GROUP, INC .................... 24,609
268 * METROMEDIA FIBER NETWORK (CLASS A) ...... 22,378
50 * MGC COMMUNICATIONS, INC ................. 3,415
1,600 * NEXTEL COMMUNICATIONS, INC (CLASS A) .... 255,400
178 * NEXTLINK COMMUNICATIONS, INC ............ 21,949
327 * NTL, INC ................................ 34,355
212 * PAGING NETWORK, INC ..................... 1,046
50 * PANAMSAT CORP ........................... 2,753
74 * PAXSON COMMUNICATIONS CORP .............. 703
62 * POWERTEL, INC ........................... 5,487
108 * PRICE COMMUNICATIONS CORP ............... 2,632
71 * PRIMUS TELECOMMUNICATIONS GROUP, INC .... 3,359
87 * PTEK HOLDINGS, INC ...................... 800
303 * QWEST COMMUNICATIONS INTERNATIONAL ,
INC ..................................... 15,964
1,402 * RCN CORP ................................ 93,934
</TABLE>
B-32 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
COMMUNICATIONS--(Continued)
138 * RHYTHMS NETCONNECTIONS, INC ............. $ 5,571
5,054 SBC COMMUNICATIONS, INC ................. 212,268
50 * SIRIUS SATELLITE RADIO, INC ............. 2,962
76 * SPRINT CORP (PCS GROUP) ................. 4,536
90 * STAR TELECOMMUNICATIONS, INC ............ 624
92 * TALK.COM, INC ........................... 1,391
50 * TELIGENT, INC ........................... 4,550
94 * TV GUIDE, INC ........................... 5,507
545 U.S. WEST, INC .......................... 38,354
138 * UNITEDGLOBALCOM, INC (CLASS A) .......... 15,042
196 * UNIVISION COMMUNICATIONS, INC ........... 18,791
615 * VIACOM, INC (CLASS B) ................... 33,248
3,000 * VIATEL, INC ............................. 210,187
188 * VOICESTREAM WIRELESS CORP ............... 22,066
50 * WAVO CORP ............................... 387
113 * WESTERN WIRELESS CORP (CLASS A) ......... 6,215
73 * WINSTAR COMMUNICATIONS, INC ............. 4,015
------------
6,283,280
------------
DEPOSITORY INSTITUTIONS--0.52%
50 * CENTENNIAL BANCORP ...................... 465
50 CHITTENDEN CORP ......................... 1,325
94 COMMUNITY FIRST BANKSHARES, INC ......... 1,304
500 * CONCORD EFS, INC ........................ 8,312
400 FIFTH THIRD BANCORP ..................... 18,350
50 FIRST BANCORP (PUERTO RICO) ............. 862
88 FIRST FINANCIAL BANCORP ................. 1,556
6,032 FIRSTAR CORP ............................ 105,937
106 HUDSON UNITED BANCORP ................... 2,047
50 * IMPERIAL BANCORP ........................ 1,328
1,733 MBNA CORP ............................... 38,234
50 MERCHANTS NEW YORK BANCORP, INC ......... 818
200 NATIONAL COMMERCE BANCORP ............... 3,387
50 * NETBANK, INC ............................ 606
138 NORTHERN TRUST CORP ..................... 7,219
61 PACIFIC CAPITAL BANCORP ................. 1,525
353 PROVIDIAN FINANCIAL CORP ................ 22,900
63 S & T BANCORP, INC ...................... 1,102
93 * S1 CORP ................................. 9,765
169 SKY FINANCIAL GROUP, INC ................ 2,439
70 * SOUTHWEST BANCORP OF TEXAS, INC ......... 1,246
179 STATE STREET CORP ....................... 12,104
65 STERLING BANCSHARES, INC ................ 568
310 SYNOVUS FINANCIAL CORP .................. 4,630
133 TRUSTCO BANK CORP ....................... 1,496
50 U.S. TRUST CORP ......................... 8,768
106 UNITED BANKSHARES, INC .................. 1,868
105 W HOLDING CO, INC ....................... 892
104 ZIONS BANCORP ........................... 3,874
------------
264,927
------------
EATING AND DRINKING PLACES--0.16%
50 APPLEBEES INTERNATIONAL, INC ............ 1,306
68 * CEC ENTERTAINMENT, INC .................. 1,683
84 CKE RESTAURANTS, INC .................... 530
50 * CONSOLIDATED PRODUCTS, INC .............. 475
50 * IHOP CORP (NEW) ......................... 690
102 * JACK IN THE BOX, INC .................... 2,071
203 MARRIOTT INTERNATIONAL (CLASS A) ........ 5,468
1,628 MCDONALD'S CORP ......................... 51,892
149 * OUTBACK STEAKHOUSE, INC ................. 3,892
50 * PAPA JOHNS INTERNATIONAL, INC ........... 1,372
63 RUBY TUESDAY, INC ....................... 1,039
50 SODEXHO MARRIOTT SERVICES, INC .......... 546
50 * SONIC CORP .............................. 1,237
50 * THE CHEESECAKE FACTORY CO ............... 1,571
197 * TRICON GLOBAL RESTAURANTS, INC .......... 5,466
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
93 * U.S. FOODSERVICE, INC ................... $ 2,348
135 VIAD CORP ............................... 2,894
------------
84,480
------------
EDUCATIONAL SERVICES--0.02%
191 * APOLLO GROUP, INC (CLASS A) ............. 4,261
149 * DEVRY, INC .............................. 2,952
50 * EDUCATION MANAGEMENT CORP ............... 703
61 * SYLVAN LEARNING SYSTEMS, INC ............ 968
------------
8,884
------------
ELECTRIC, GAS, AND SANITARY SERVICES--0.21%
358 * AES CORP ................................ 26,134
341 * ALLIED WASTE INDUSTRIES, INC ............ 2,003
111 * CALPINE CORP ............................ 12,321
171 * NEWPARK RESOURCES, INC .................. 1,239
92 * REPUBLIC SERVICES, INC (CLASS A) ........ 1,006
50 * SOUTHERN UNION CO ....................... 665
1,539 WASTE MANAGEMENT, INC ................... 21,546
832 WILLIAMS COS, INC ....................... 40,508
------------
105,422
------------
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT--23.46%
90 * ACTV, INC ............................... 2,964
700 * ADC TELECOMMUNICATIONS, INC ............. 37,625
50 * ADTRAN, INC ............................. 3,975
179 * ADVANCED FIBRE COMMUNICATIONS, INC ...... 14,286
50 * AEROFLEX, INC ........................... 3,500
50 * ALPHA INDUSTRIES, INC ................... 6,800
400 * ALTERA CORP ............................. 37,725
172 * AMERICAN POWER CONVERSION CORP .......... 5,719
4,138 * AMERICAN TOWER SYSTEMS (CLASS A) ........ 226,814
50 * AMERICAN XTAL TECHNOLOGY, INC ........... 2,025
80 AMETEK, INC ............................. 1,340
205 * AMKOR TECHNOLOGY, INC ................... 10,403
63 * AMPEX CORP (CLASS A) .................... 224
67 * ANADIGICS, INC .......................... 6,842
4,333 * ANALOG DEVICES, INC ..................... 749,338
68 * ANCOR COMMUNICATIONS, INC ............... 3,731
50 * ANDREW CORP ............................. 1,428
60 * ANTEC CORP .............................. 2,790
1,426 * APPLIED MICRO CIRCUITS CORP ............. 414,966
83 * ARTESYN TECHNOLOGIES, INC ............... 1,691
80 * ASPECT TELECOMMUNICATIONS CORP .......... 4,880
3,047 * ATMEL CORP .............................. 165,871
50 * BENCHMARK ELECTRONICS, INC .............. 1,700
266 * BROADCOM CORP (CLASS A) ................. 64,654
96 * BURR BROWN CORP ......................... 5,712
61 * C-COR.NET CORP .......................... 2,623
5,541 * CIENA CORP .............................. 902,490
99 * COMMSCOPE, INC .......................... 4,232
173 * COMVERSE TECHNOLOGY, INC ................ 40,417
400 * CONEXANT SYSTEMS, INC ................... 35,225
62 * CREE, INC ............................... 12,028
68 CTS CORP ................................ 3,655
152 * CYPRESS SEMICONDUCTOR CORP .............. 7,315
146 DALLAS SEMICONDUCTOR CORP ............... 6,579
169 * DIGITAL MICROWAVE CORP .................. 6,675
91 * DII GROUP, INC .......................... 10,368
81 * E-TEK DYNAMICS, INC ..................... 23,085
111 * ECHOSTAR COMMUNICATIONS CORP
(CLASS A) ............................... 15,318
50 * ELECTRO SCIENTIFIC INDUSTRIES, INC ...... 3,200
156 * ELOT, INC ............................... 1,111
15,643 GENERAL ELECTRIC CO ..................... 2,059,987
75 * GENERAL SEMICONDUCTOR, INC .............. 1,500
50 * GLOBIX CORP ............................. 3,100
66 * HARMONIC LIGHTWAVES, INC ................ 9,376
50 HELIX TECHNOLOGY CORP ................... 3,637
</TABLE>
B-33 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT--(Continued)
50 * HUTCHINSON TECHNOLOGY, INC .............. $ 851
22,800 INTEL CORP .............................. 2,740,275
50 INTER-TEL, INC .......................... 2,153
121 * INTERDIGITAL COMMUNICATIONS CORP ........ 3,894
50 * INTERNATIONAL RECTIFIER CORP ............ 2,156
80 * INTERVOICE-BRITE, INC ................... 2,980
124 * JABIL CIRCUIT, INC ...................... 11,067
1,500 * JDS UNIPHASE CORP ....................... 414,000
74 * KOPIN CORP .............................. 6,105
81 * L-3 COMMUNICATIONS HOLDINGS, INC ........ 3,609
50 * LASERSIGHT, INC ......................... 465
113 * LATTICE SEMICONDUCTOR CORP .............. 8,934
380 LINEAR TECHNOLOGY CO .................... 38,593
6,880 * LSI LOGIC CORP .......................... 607,160
300 * MAXIM INTEGRATED PRODUCTS ............... 21,037
189 MAYTAG CO ............................... 5,221
62 METHODE ELECTRONICS, INC (CLASS A) ...... 3,534
71 * MICREL, INC ............................. 8,559
190 * MICROCHIP TECHNOLOGY, INC ............... 13,145
86 * MICRON TECHNOLOGY, INC .................. 9,169
79 * MMC NETWORKS, INC ....................... 4,285
90 MOLEX, INC .............................. 5,640
655 * MOTOROLA, INC ........................... 112,700
63 * NEOMAGIC CORP ........................... 346
1,300 * NOKIA OYJ ADR ........................... 279,256
50 * NVIDIA CORP ............................. 5,925
113 * P-COM, INC .............................. 2,641
168 * PAIRGAIN TECHNOLOGIES, INC .............. 3,213
50 * PHOTRONICS, INC ......................... 2,150
50 * PLANTRONICS, INC ........................ 4,131
50 * PLEXUS CORP ............................. 3,303
838 * PMC-SIERRA, INC ......................... 205,676
50 * POLYCOM, INC ............................ 5,850
50 * POWER INTEGRATIONS, INC ................. 2,975
182 * QLOGIC CORP ............................. 32,543
2,700 * QUALCOMM, INC ........................... 367,537
50 * RAMBUS, INC ............................. 21,050
68 * RAYOVAC CORP ............................ 1,292
128 * RF MICRO DEVICES, INC ................... 21,336
1,458 * SANMINA CORP ............................ 185,257
61 * SAWTEK, INC ............................. 3,126
196 * SCI SYSTEMS, INC ........................ 9,016
174 SCIENTIFIC-ATLANTA, INC ................. 23,566
50 * SDL, INC ................................ 21,359
79 * SEMTECH CORP ............................ 5,218
50 * SIPEX CORP .............................. 1,793
50 * SLI, INC ................................ 653
6,144 * SOLECTRON CORP .......................... 219,648
100 * SYCAMORE NETWORKS, INC .................. 17,000
68 * TEKELEC ................................. 3,276
3,100 * TELLABS, INC ............................ 176,700
5,968 TEXAS INSTRUMENTS, INC .................. 1,086,176
125 * TITAN CORP .............................. 5,398
96 * TRANSWITCH CORP ......................... 9,702
74 * TRIQUINT SEMICONDUCTOR, INC ............. 8,177
50 * VARIAN SEMICONDUCTOR EQUIPMENT
ASSOCIATES, INC ......................... 3,303
50 * VICOR CORP .............................. 1,021
391 * VITESSE SEMICONDUCTOR CORP .............. 34,236
83 * WEBLINK WIRELESS, INC ................... 1,644
50 * WESTELL TECHNOLOGIES, INC (CLASS A) ..... 1,950
112 * WORLD ACCESS, INC ....................... 3,010
4,000 * XILINX, INC ............................. 333,250
------------
12,068,159
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
ENGINEERING AND MANAGEMENT SERVICES--0.13%
143 * CATALYTICA, INC ......................... $ 1,588
50 * CELGENE CORP ............................ 8,425
146 * COVANCE, INC ............................ 1,533
50 * FIRST CONSULTING GROUP, INC ............. 912
202 GARTNER GROUP, INC (CLASS A) ............ 2,840
61 * INCYTE PHARMACEUTICALS, INC ............. 12,398
50 * LASON, INC .............................. 433
50 * MARKETING SERVICES GROUP ................ 987
92 * NAVIGANT CONSULTING CO .................. 954
63 * PAREXEL INTERNATIONAL CORP .............. 574
50 * PHARMACEUTICAL PRODUCT DEVELOPMENT ...... 850
89 * PROFIT RECOVERY GROUP INTERNATIONAL ..... 1,902
285 * QUINTILES TRANSNATIONAL CORP ............ 5,468
91 * RENAISSANCE WORLDWIDE, INC .............. 563
731 SERVICEMASTER CO ........................ 8,726
50 * STAFF LEASING, INC ...................... 303
85 * TETRA TECH, INC ......................... 2,125
50 * VALENCE TECHNOLOGY, INC ................. 1,700
275 * WHITTMAN HART, INC ...................... 13,475
------------
65,756
------------
FABRICATED METAL PRODUCTS--0.16%
2,665 GILLETTE CO ............................. 79,783
------------
FOOD AND KINDRED PRODUCTS--1.06%
50 * AMERICAN ITALIAN PASTA CO (CLASS A) ..... 906
322 ANHEUSER BUSCH COS, INC ................. 18,273
50 * BERINGER WINE ESTATES HOLDINGS, INC
(CLASS B) ............................... 1,656
365 BESTFOODS, INC .......................... 14,075
455 CAMPBELL SOUP CO ........................ 13,166
6,467 COCA COLA CO ............................ 288,994
594 COCA COLA ENTERPRISES, INC .............. 12,474
98 * DEL MONTE FOODS CO ...................... 986
374 GENERAL MILLS, INC ...................... 11,734
50 * HAIN FOOD GROUP, INC .................... 1,371
227 HEINZ (H.J.) CO ......................... 7,647
50 * INTERNATIONAL HOME FOODS, INC ........... 793
50 * KEEBLER FOODS CO ........................ 1,243
242 KELLOGG CO .............................. 5,550
248 PEPSI BOTTLING GROUP, INC ............... 4,913
3,616 PEPSICO, INC ............................ 110,966
152 QUAKER OATS CO .......................... 7,096
166 RALSTON PURINA CO ....................... 4,056
2,003 SARA LEE CORP ........................... 29,168
83 * SMITHFIELD FOODS, INC ................... 1,328
50 * TRIARC COS, INC ......................... 1,000
84 WHITMAN CORP ............................ 945
118 WRIGLEY (WM) JR CO ...................... 7,286
------------
545,626
------------
FOOD STORES--0.64%
173 * 7-ELEVEN, INC ........................... 605
196 ALBERTSONS, INC ......................... 4,704
2,061 * KROGER CO ............................... 30,399
8,087 * SAFEWAY, INC ............................ 283,550
200 * STARBUCKS CORP .......................... 7,125
65 * WHOLE FOODS MARKET, INC ................. 2,620
50 * WILD OATS MARKETS, INC .................. 887
------------
329,890
------------
FURNITURE AND FIXTURES--0.43%
94 * ETHAN ALLEN INTERIORS, INC .............. 2,132
99 FURNITURE BRANDS INTERNATIONAL, INC ..... 1,584
196 MILLER (HERMAN), INC .................... 4,042
9,892 NEWELL RUBBERMAID, INC .................. 212,678
------------
220,436
------------
</TABLE>
B-34 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
FURNITURE AND HOMEFURNISHINGS STORES--0.62%
287 * BED BATH & BEYOND, INC .................. $ 6,780
415 * BEST BUY, INC ........................... 25,911
373 CIRCUIT CITY STORES-CIRCUIT CITY GROUP .. 15,945
50 * GUITAR CENTER, INC ...................... 462
98 * LINENS' N THINGS, INC ................... 2,076
75 * MUSICLAND STORES CORP ................... 520
212 PIER 1 IMPORTS, INC ..................... 1,762
6,580 TANDY CORP .............................. 262,377
50 * TRANS WORLD ENTERTAINMENT CORP .......... 518
108 * WILLIAMS-SONOMA, INC .................... 2,443
------------
318,794
------------
GENERAL BUILDING CONTRACTORS--0.00%
50 * BLOUNT INTERNATIONAL, INC ............... 637
50 CENTEX CORP ............................. 906
------------
1,543
------------
GENERAL MERCHANDISE STORES--0.92%
50 * AMES DEPARTMENT STORES, INC ............. 881
111 CASEYS GENERAL STORES, INC .............. 943
120 * CONSOLIDATED STORES CORP ................ 1,365
50 * COST PLUS, INC .......................... 1,006
800 * COSTCO WHOLESALE CORP ................... 35,300
346 DOLLAR GENERAL CORP ..................... 6,876
154 * DOLLAR TREE STORES, INC ................. 6,169
362 FAMILY DOLLAR STORES, INC ............... 5,837
366 * KOHLS CORP .............................. 30,423
70 * NEIMAN MARCUS GROUP, INC (CLASS A) ...... 1,518
118 * SAKS, INC ............................... 1,541
902 * TARGET CORP ............................. 54,852
6,760 WAL-MART STORES, INC .................... 324,057
------------
470,768
------------
HEALTH SERVICES--0.25%
50 * ADVANCE PARADIGM, INC ................... 581
50 * ENZO BIOCHEMICAL, INC ................... 4,328
50 * EXPRESS SCRIPTS, INC .................... 1,700
559 * HEALTH MANAGEMENT ASSOCIATES, INC
(CLASS A) NEW ........................... 6,638
114 * HEALTHSOUTH CORP ........................ 577
72 HOOPER HOLMES, INC ...................... 2,448
63 * LASER VISION CENTERS, INC ............... 555
72 * LCA-VISION, INC ......................... 414
50 * LIFEPOINT HOSPITALS, INC ................ 771
50 * LINCARE HOLDINGS, INC ................... 1,087
101 * ORTHODONTIC CENTERS OF AMERICA, INC ..... 2,007
111 * RENAL CARE GROUP, INC ................... 2,268
5,000 * TENET HEALTHCARE CORP ................... 103,437
186 * TOTAL RENAL CARE HOLDINGS, INC .......... 569
50 * TRIAD HOSPITALS, INC .................... 737
85 * US ONCOLOGY, INC ........................ 334
------------
128,451
------------
HEAVY CONSTRUCTION, EXCEPT BUILDING--0.02%
95 * DYCOM INDUSTRIES, INC ................... 4,767
50 * INSITUFORM TECHNOLOGIES, INC (CLASS A) .. 1,381
50 * MASTEC, INC ............................. 3,365
------------
9,513
------------
HOLDING AND OTHER INVESTMENT OFFICES--0.03%
129 BOSTON PROPERTIES, INC .................. 3,918
50 CHARLES E. SMITH RESIDENTIAL REALTY ..... 1,718
60 COUSINS PROPERTIES, INC ................. 2,171
50 HEALTH CARE PROPERTY INVESTORS, INC ..... 1,225
308 MEDITRUST CORP PAIRED ................... 885
213 STARWOOD FINANCIAL TRUST ................ 3,660
75 WASHINGTON REAL ESTATE INVESTMENT
TRUST ................................... 1,134
------------
14,711
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
HOTELS AND OTHER LODGING PLACES--0.01%
129 * CHOICE HOTELS INTERNATIONAL, INC ........ $ 2,112
88 * EXTENDED STAY AMERICA, INC .............. 616
394 HILTON HOTELS CORP ...................... 2,610
91 STARWOOD HOTELS & RESORTS WORLDWIDE ..... 1,905
76 * SUNTERRA CORP ........................... 213
------------
7,456
------------
INDUSTRIAL MACHINERY AND EQUIPMENT--18.32%
500 * 3COM CORP ............................... 34,468
50 * 3DFX INTERACTIVE, INC ................... 628
184 * ADAPTEC, INC ............................ 8,153
50 * ADVANCED DIGITAL INFORMATION CORP ....... 4,506
50 * APEX, INC ............................... 2,181
940 * APPLIED MATERIALS, INC .................. 181,478
89 APPLIED POWER, INC (CLASS A) ............ 2,275
50 * ASYST TECHNOLOGIES, INC ................. 2,950
50 * ATMI, INC ............................... 2,815
50 * AUSPEX SYSTEMS, INC ..................... 756
50 BAKER HUGHES, INC ....................... 1,362
200 BLACK & DECKER CORP ..................... 6,387
50 * BLACK BOX CORP .......................... 3,628
101 * C-CUBE MICROSYSTEMS, INC ................ 9,898
69 * CABLETRON SYSTEMS, INC .................. 3,307
22,600 * CISCO SYSTEMS, INC ...................... 3,082,075
50 * CMI CORP ................................ 243
10,103 COMPAQ COMPUTER CORP .................... 287,935
129 * CONCURRENT COMPUTER CORP ................ 2,515
15,100 * DELL COMPUTER CORP ...................... 773,875
50 DONALDSON CO, INC ....................... 1,178
10,528 * EMC CORP ................................ 1,373,246
81 * EMULEX CORP ............................. 17,455
50 * ETEC SYSTEMS, INC ....................... 6,209
50 * EXTREME NETWORKS, INC ................... 5,603
100 * FOUNDRY NETWORKS, INC ................... 20,118
373 * GATEWAY, INC ............................ 23,312
2,547 HEWLETT-PACKARD CO ...................... 373,772
9,181 INTERNATIONAL BUSINESS MACHINES CORP .... 964,578
670 * IOMEGA CORP ............................. 2,638
71 JLG INDUSTRIES, INC ..................... 550
73 * LAM RESEARCH CORP ....................... 11,857
317 * LEXMARK INTERNATIONAL GROUP (CLASS A) ... 40,932
50 MANITOWOC, INC .......................... 1,306
169 * MAXTOR CORP ............................. 1,964
50 * MERCURY COMPUTER SYSTEMS, INC ........... 2,481
75 * MICRON ELECTRONICS, INC ................. 1,443
50 * MICROS SYSTEMS, INC ..................... 2,628
76 * MTI TECHNOLOGY CORP ..................... 3,866
60 * NATIONAL INSTRUMENTS CORP ............... 2,801
8,272 * NOVELLUS SYSTEMS, INC ................... 578,523
623 PITNEY BOWES, INC ....................... 28,735
62 * PRESSTEK, INC ........................... 1,488
50 * PRI AUTOMATION, INC ..................... 4,381
50 * QUANTUM CORP -DLT & STORAGE SYSTEMS
GROUP ................................... 603
126 * QUANTUM CORP -HARD DISK DRIVE GROUP ..... 1,118
75 ROPER INDUSTRIES, INC ................... 2,385
122 * SANDISK CORP ............................ 15,349
152 * SEAGATE TECHNOLOGY, INC ................. 9,766
50 * SMITH INTERNATIONAL, INC ................ 3,225
220 SYMBOL TECHNOLOGIES, INC ................ 21,766
50 * TEREX CORP .............................. 596
31,000 TYCO INTERNATIONAL LTD .................. 1,457,000
770 * UNISYS CORP ............................. 20,741
62 * VISUAL NETWORKS, INC .................... 5,138
159 * WESTERN DIGITAL CORP .................... 824
66 * XIRCOM, INC ............................. 3,003
61 * ZEBRA TECHNOLOGY CORP ................... 3,839
------------
9,427,852
------------
</TABLE>
B-35 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
INSTRUMENTS AND RELATED PRODUCTS--1.64%
50 * AFFYMETRIX, INC ......................... $ 12,881
75 BAUSCH & LOMB, INC ...................... 3,923
159 BAXTER INTERNATIONAL, INC ............... 8,913
67 BECKMAN COULTER, INC .................... 3,492
425 BECTON DICKINSON & CO ................... 13,600
249 BIOMET, INC ............................. 7,750
676 * BOSTON SCIENTIFIC CORP .................. 14,322
86 * COGNEX CORP ............................. 4,692
50 * CREDENCE SYSTEMS CORP ................... 6,943
50 * CYBERONICS, INC ......................... 1,125
70 * CYMER, INC .............................. 4,060
89 * CYTYC CORP .............................. 5,061
50 * DIONEX CORP ............................. 1,609
50 * ECLIPSE SURGICAL TECHNOLOGY, INC ........ 484
67 * GENRAD, INC ............................. 1,025
1,651 * GUIDANT CORP ............................ 117,117
50 * HAEMONETICS CORP ........................ 1,187
286 * KLA-TENCOR CORP ......................... 26,061
106 * LTX CORP ................................ 5,260
87 * MEDICAL MANAGER CORP .................... 5,388
6,815 MEDTRONIC, INC .......................... 348,416
50 MENTOR CORP ............................. 1,468
96 * METTLER-TOLEDO INTERNATIONAL, INC ....... 3,600
112 MILLIPORE CORP .......................... 6,909
50 * MINIMED, INC ............................ 6,075
66 * OAKLEY, INC ............................. 594
515 PE CORP-PE BIOSYSTEMS GROUP ............. 59,192
50 PERKINELMER, INC ........................ 3,628
50 * PINNACLE SYSTEMS, INC ................... 3,046
75 * RESPIRONICS, INC ........................ 1,162
61 * ST. JUDE MEDICAL, INC ................... 1,555
168 * STERIS CORP ............................. 1,722
178 STRYKER CORP ............................ 9,489
116 * SUMMIT TECHNOLOGY, INC .................. 1,044
115 * SUNRISE TECHNOLOGY INTERNATIONAL, INC ... 869
258 * SYBRON INTERNATIONAL CORP ............... 6,659
368 * TERADYNE, INC ........................... 33,120
50 * THERMO ELECTRON CORP .................... 1,290
50 * TRIMBLE NAVIGATION LTD .................. 1,475
50 * VARIAN, INC ............................. 2,153
141 * VISX, INC ............................... 2,273
155 * WATERS CORP ............................. 15,703
50 * WESLEY JESSEN VISIONCARE, INC ........... 1,290
3,650 XEROX CORP .............................. 88,512
------------
846,137
------------
INSURANCE AGENTS, BROKERS AND SERVICE--0.01%
90 CRAWFORD & CO (CLASS B) ................. 1,158
101 * FIRST HEALTH GROUP CORP ................. 2,613
50 GALLAGHER (ARTHUR J.) & CO .............. 2,384
------------
6,155
------------
INSURANCE CARRIERS--0.33%
116 AFLAC, INC .............................. 4,074
403 * AMERICAN INTERNATIONAL GROUP, INC ....... 33,474
2,600 CITIGROUP, INC .......................... 127,237
72 HSB GROUP, INC .......................... 1,624
50 * MID ATLANTIC MEDICAL SERVICES, INC ...... 475
202 * OXFORD HEALTH PLANS, INC ................ 2,966
------------
169,850
------------
LEATHER AND LEATHER PRODUCTS--0.00%
94 STRIDE RITE CORP ........................ 546
------------
LEGAL SERVICES--0.00%
50 * PREPAID LEGAL SERVICES, INC ............. 1,425
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ---------
<S> <C> <C>
LUMBER AND WOOD PRODUCTS--0.00%
83 * CHAMPION ENTERPRISES, INC ............... $ 456
50 * PALM HARBOR HOMES, INC .................. 634
------------
1,090
------------
METAL MINING--0.02%
324 * BATTLE MOUNTAIN GOLD CO ................. 668
346 * FREEPORT-MCMORAN COPPER & GOLD, INC
(CLASS B) ............................... 4,519
94 * STILLWATER MINING CO .................... 4,136
------------
9,323
------------
MISCELLANEOUS MANUFACTURING INDUSTRIES--0.02%
86 * BLYTH INDUSTRIES, INC ................... 1,918
75 CALLAWAY GOLF CO ........................ 984
50 * IDENTIX, INC ............................ 1,125
50 JOSTENS, INC ............................ 1,196
406 MATTEL, INC ............................. 3,654
50 * WMS INDUSTRIES, INC ..................... 575
------------
9,452
------------
MISCELLANEOUS REPAIR SERVICES--0.00%
50 * ENCOMPASS SERVICES CORP ................. 328
------------
MISCELLANEOUS RETAIL--0.34%
400 * AMAZON.COM, INC ......................... 26,750
61 * BARNES & NOBLE, INC ..................... 1,071
50 * BARNESANDNOBLE.COM, INC ................. 450
87 * BORDERS GROUP, INC ...................... 1,239
61 * CDW COMPUTER CENTERS, INC ............... 3,892
973 CVS CORP ................................ 29,615
50 * DUANE READE, INC ........................ 1,100
50 * E4L, INC ................................ 109
50 * EGGHEAD.COM, INC ........................ 484
295 * HANOVER DIRECT, INC ..................... 774
50 * INSIGHT ENTERPRISES, INC ................ 1,518
625 * OFFICE DEPOT, INC ....................... 6,523
50 * OFFICEMAX, INC .......................... 312
102 OMNICARE, INC ........................... 1,064
277 * PETSMART, INC ........................... 908
60 * SCHEIN (HENRY), INC ..................... 975
65 * SHOP AT HOME, INC ....................... 641
1,100 * STAPLES, INC ............................ 21,312
102 * SUNGLASS HUT INTERNATIONAL, INC ......... 714
138 TIFFANY & CO ............................ 9,228
93 * VALUEVISION INTERNATIONAL, INC .......... 4,312
2,493 WALGREEN CO ............................. 61,078
------------
174,069
------------
MOTION PICTURES--1.13%
50 * AMC ENTERTAINMENT, INC .................. 328
108 * CNET NETWORKS, INC ...................... 7,317
5,184 DISNEY (WALT) CO ........................ 182,088
78 HOLLYWOOD ENTERTAINMENT CORP ............ 619
2,912 TIME WARNER, INC ........................ 247,520
17,000 TOEI CO ................................. 145,017
------------
582,889
------------
NONDEPOSITORY INSTITUTIONS--0.37%
646 AMERICAN EXPRESS CO ..................... 81,840
186 * AMERICREDIT CORP ........................ 2,139
553 ASSOCIATES FIRST CAPITAL CORP ........... 8,917
490 CAPITAL ONE FINANCIAL CORP .............. 18,038
61 DORAL FINANCIAL CORP .................... 545
401 FEDERAL NATIONAL MORTGAGE
ASSOCIATION ............................. 20,075
148 * FINET.COM, INC .......................... 319
1,080 FREDDIE MAC ............................. 40,702
</TABLE>
B-36 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -----------
<S> <C> <C>
NONDEPOSITORY INSTITUTIONS--(Continued)
142 HOUSEHOLD INTERNATIONAL, INC ................... $ 4,650
96 METRIS COS, INC ................................ 2,616
50 * SIERRACITIES, INC .............................. 840
395 SLM HOLDINGS CORP .............................. 11,652
50 * UNICAPITAL CORP ................................ 106
-----------
192,439
-----------
OIL AND GAS EXTRACTION--0.14%
62 ANADARKO PETROLEUM CORP ........................ 1,922
101 APACHE CORP .................................... 4,115
50 BERRY PETROLEUM CO (CLASS A) ................... 818
84 * CHESAPEAKE ENERGY CORP ......................... 236
104 CROSS TIMBERS OIL CO ........................... 1,196
50 DEVON ENERGY CORP (NEW) ........................ 2,203
50 DIAMOND OFFSHORE DRILLING, INC ................. 1,687
95 ENSCO INTERNATIONAL, INC ....................... 2,909
65 * FOREST OIL CORP ................................ 593
50 * FRIEDE GOLDMAN HALTER, INC ..................... 325
104 * GLOBAL INDUSTRIES LTD .......................... 1,423
50 * GLOBAL MARINE, INC ............................. 1,128
50 * GREY WOLF, INC ................................. 209
571 HALLIBURTON CO ................................. 22,590
60 * HANOVER COMPRESSOR CO .......................... 3,150
66 * MERIDIAN RESOURCE CORP ......................... 247
110 * NABORS INDUSTRIES, INC ......................... 4,015
71 * NEWFIELD EXPLORATION CO ........................ 2,485
137 * NOBLE DRILLING CORP ............................ 5,231
100 POGO PRODUCING CO .............................. 2,662
185 * R & B FALCON CORP .............................. 3,202
50 * STONE ENERGY CORP .............................. 2,500
67 * SYNTROLEUM CORP ................................ 1,444
50 VASTAR RESOURCES, INC .......................... 3,075
100 * VINTAGE PETROLEUM, INC ......................... 1,637
-----------
71,002
-----------
PAPER AND ALLIED PRODUCTS--0.11%
219 AVERY DENNISON CORP ............................ 13,249
423 FORT JAMES CORP ................................ 8,037
50 * GAYLORD CONTAINER CO ........................... 303
718 KIMBERLY-CLARK CORP ............................ 34,105
96 * MAIL-WELL, INC ................................. 714
50 * PLAYTEX PRODUCTS, INC .......................... 546
82 WAUSAU-MOSINEE PAPER CORP ...................... 1,086
-----------
58,040
-----------
PERSONAL SERVICES--0.03%
60 BLOCK (H&R), INC ............................... 2,576
283 CINTAS CORP .................................... 7,835
50 * COINSTAR, INC .................................. 709
50 G & K SERVICES, INC (CLASS A) .................. 812
74 REGIS CORP ..................................... 1,091
-----------
13,023
-----------
PETROLEUM AND COAL PRODUCTS--0.01%
50 ELCOR CORP ..................................... 1,506
50 USX-MARATHON GROUP, INC ........................ 1,250
-----------
2,756
-----------
PRIMARY METAL INDUSTRIES--0.00%
50 GENERAL CABLE CORP ............................. 462
98 * STEEL DYNAMICS, INC ............................ 1,280
-----------
1,742
-----------
PRINTING AND PUBLISHING--0.06%
50 CENTRAL NEWSPAPERS, INC (CLASS A) .............. 1,453
79 DOW JONES & CO, INC ............................ 5,115
73 * JOURNAL REGISTER CO ............................ 1,076
110 LEE ENTERPRISES, INC ........................... 2,351
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -----------
<S> <C> <C>
50 MCGRAW HILL COS, INC ........................... $ 2,450
50 MEREDITH CORP .................................. 1,121
50 PENTON MEDIA, INC .............................. 1,271
50 * PLAYBOY ENTERPRISES, INC (CLASS B) ............. 1,081
145 * PRIMEDIA, INC .................................. 3,788
72 * R.H. DONNELLEY CORP ............................ 1,152
107 READER'S DIGEST ASSOCIATION, INC
(CLASS A) (NON-VOTE) ........................... 3,537
89 TIMES MIRROR CO SERIES A ....................... 4,266
108 * TOPPS, INC ..................................... 813
117 WILEY (JOHN) & SONS, INC (CLASS A) ............. 1,630
-----------
31,104
-----------
RAILROAD TRANSPORTATION--0.05%
275 KANSAS CITY SOUTHERN INDUSTRIES, INC ........... 24,114
-----------
REAL ESTATE--0.01%
154 * CATELLUS DEVELOPMENT CORP ...................... 1,876
110 * FAIRFIELD COMMUNITIES, INC ..................... 866
75 * JONES LANG LA SALLE ............................ 946
64 STEWART ENTERPRISES, INC (CLASS A) ............. 252
60 * TRAMMELL CROW CO ............................... 682
-----------
4,622
-----------
RUBBER AND MISCELLANEOUS PLASTICS PRODUCTS--0.23%
408 ILLINOIS TOOL WORKS, INC ....................... 22,185
3,067 NIKE, INC (CLASS B) ............................ 82,425
84 * PACTIV CORP .................................... 661
208 * SEALED AIR CORP ................................ 9,308
50 TREDEGAR CORP .................................. 1,512
83 TUPPERWARE CORP ................................ 1,348
79 * U.S. PLASTIC LUMBER CORP ....................... 688
-----------
118,127
-----------
SECURITY AND COMMODITY BROKERS--0.28%
50 * AFFILIATED MANAGERS GROUP, INC ................. 1,959
159 * AMERITRADE HOLDINGS CORP (CLASS A) ............. 3,418
500 * E TRADE GROUP, INC ............................. 13,250
75 EATON VANCE CORP ............................... 3,103
141 FEDERATED INVESTORS, INC ....................... 3,357
226 FRANKLIN RESOURCES, INC ........................ 5,932
50 * FRIEDMAN, BILLINGS, RAMSEY GROUP, INC .......... 843
173 * KNIGHT/TRIMARK GROUP, INC ...................... 8,574
50 MORGAN KEEGAN, INC ............................. 637
66 * PIONEER GROUP, INC ............................. 1,417
255 PRICE (T. ROWE) ASSOCIATES, INC ................ 8,175
84 RAYMOND JAMES FINANCIAL CORP ................... 1,596
1,639 SCHWAB (CHARLES) CORP .......................... 85,637
69 UNITED ASSET MANAGEMENT CORP ................... 1,065
144 WADDELL & REED FINANCIAL,INC (CLASS A) ......... 4,635
-----------
143,598
-----------
SOCIAL SERVICES--0.00%
50 * RES-CARE, INC .................................. 435
50 * SUNRISE ASSISTED LIVING, INC ................... 778
-----------
1,213
-----------
SPECIAL TRADE CONTRACTORS--0.01%
69 APOGEE ENTERPRISES, INC ........................ 301
50 * COMFORT SYSTEMS U.S.A., INC .................... 381
50 * INTEGRATED ELECTRICAL SERVICES, INC ............ 278
83 * QUANTA SERVICES, INC ........................... 4,212
-----------
5,172
-----------
STONE, CLAY, AND GLASS PRODUCTS--0.54%
1,445 CORNING, INC ...................................... 276,717
95 DAL-TILE INTERNATIONAL, INC ....................... 712
50 FLORIDA ROCK INDUSTRIES, INC ...................... 1,687
-----------
279,116
-----------
</TABLE>
B-37 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -----------
<S> <C> <C>
TEXTILE MILL PRODUCTS--0.00%
50 * PUBLICARD, INC ................................ $ 640
93 WESTPOINT STEVENS, INC ......................... 1,511
-----------
2,151
-----------
TOBACCO PRODUCTS--0.12%
3,139 PHILIP MORRIS COS, INC ......................... 59,837
85 RJR REYNOLDS TOBACCO HOLDINGS, INC ............. 1,492
172 UST, INC ....................................... 2,967
-----------
64,296
-----------
TRANSPORTATION BY AIR--0.01%
114 * AIRTRAN HOLDINGS, INC .......................... 448
50 OGDEN CORP ..................................... 571
50 SKYWEST, INC ................................... 1,581
-----------
2,600
-----------
TRANSPORTATION EQUIPMENT--2.59%
50 * BE AEROSPACE, INC ............................. 450
258 BOEING CO ...................................... 8,352
236 DANAHER CORP ................................... 9,071
50 * DELCO REMY INTERNATIONAL , INC (CLASS A) 350
115 FEDERAL SIGNAL CORP ............................ 1,789
130 GENERAL DYNAMICS CORP .......................... 5,110
3,757 * GENERAL MOTORS CORP (CLASS H) ................. 487,235
182 GENTEX CORP .................................... 6,222
4,676 HARLEY DAVIDSON, INC ........................... 325,566
50 * HAYES LEMMERZ INTERNATIONAL, INC .............. 987
4,359 HONEYWELL INTERNATIONAL, INC ................... 197,789
86 * HOWMET INTERNATIONAL, INC ..................... 1,596
50 * MILLER INDUSTRIES, INC ........................ 190
50 * MONACO COACH CORP ............................. 803
77 NEWPORT NEWS SHIPBUILDING, INC ................. 2,199
67 * ORBITAL SCIENCES CORP ......................... 1,042
50 POLARIS INDUSTRIES, INC ........................ 1,481
63 * SPX CORP ...................................... 7,327
5,582 UNITED TECHNOLOGIES CORP ....................... 272,820
-----------
1,330,379
-----------
TRANSPORTATION SERVICES--0.02%
90 C.H. ROBINSON WORLDWIDE, INC ................... 4,449
120 EXPEDITORS INTERNATIONAL OF
WASHINGTON ..................................... 4,275
119 GALILEO INTERNATIONAL, INC ..................... 2,253
-----------
10,977
-----------
TRUCKING AND WAREHOUSING--0.01%
82 * IRON MOUNTAIN, INC ............................. 2,572
93 * SWIFT TRANSPORTATION CO, INC ................... 1,360
-----------
3,932
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- -----------
<S> <C> <C>
WATER TRANSPORTATION--0.41%
9,000 CARNIVAL CORP (CLASS A) ........................ $ 207,562
50 * KIRBY CORP .................................... 937
-----------
208,499
-----------
WHOLESALE TRADE-DURABLE GOODS--0.02%
63 * BOYDS COLLECTION LTD .......................... 417
67 * BRIGHTPOINT, INC .............................. 921
85 * CELLSTAR CORP ................................. 779
61 * FISHER SCIENTIFIC INTERNATIONAL, INC .......... 2,928
103 * HA-LO INDUSTRIES, INC ......................... 1,075
73 * INGRAM MICRO, INC (CLASS A) ................... 930
118 * LANIER WORLDWIDE, INC ......................... 309
67 * MSC INDUSTRIAL DIRECT CO (CLASS A) ............ 958
60 * PATTERSON DENTAL CO ........................... 2,032
158 * PSS WORLD MEDICAL, INC ........................ 1,046
50 * TECH DATA CORP ................................ 1,181
-----------
12,576
-----------
WHOLESALE TRADE-NONDURABLE GOODS--0.87%
121 * AMERISOURCE HEALTH CORP (CLASS A) ............. 1,573
71 * BARNETT RESOURCES CORP ........................ 1,624
213 BERGEN BRUNSWIG CORP (CLASS A) ................. 998
9,696 CARDINAL HEALTH, INC ........................... 405,777
126 * ENRON CORP .................................... 8,583
312 MCKESSON HBOC, INC ............................. 5,791
113 * NU SKIN ENTERPRISES, INC (CLASS A) ............ 1,031
50 * SCHOOL SPECIALTY, INC ......................... 871
687 SYSCO CORP ..................................... 19,751
-----------
445,999
-----------
TOTAL COMMON STOCK
(Cost $50,013,519) ............................ 51,327,343
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
- ---------
<S> <C>
SHORT TERM INVESTMENT--0.19%
U.S. GOVERNMENT AGENCY--0.19%
FEDERAL HOME LOAN BANK (FHLB)
$100,000 5.540%, 03/13/00 ............................... 99,969
-----------
TOTAL SHORT TERM INVESTMENT
(Cost $99,969) ............................................... 99,969
-----------
TOTAL PORTFOLIO
(Cost $50,113,488) ........................................... $51,427,312
===========
</TABLE>
- ------------
* Non-income producing
The cost of investments for federal income tax purposes is substantially the
same as the amount disclosed above.
B-38 See notes to financial statements.
<PAGE>
TIAA-CREF LIFE FUNDS
STATEMENT OF INVESTMENTS--GROWTH & INCOME FUND
MARCH 10, 2000
SUMMARY BY INDUSTRY
<TABLE>
<CAPTION>
VALUE %
----------- --------
<S> <C> <C>
COMMON STOCK
AMUSEMENT AND RECREATION SERVICES .......... $ 97,502 0.19%
APPAREL AND ACCESSORY STORES ............... 127,769 0.25
APPAREL AND OTHER TEXTILE PRODUCTS ......... 142,780 0.28
AUTO REPAIR, SERVICES AND PARKING .......... 4,552 0.01
AUTOMOTIVE DEALERS AND SERVICE STATIONS 8,229 0.02
BUILDING MATERIALS AND GARDEN SUPPLIES ..... 732,012 1.46
BUSINESS SERVICES .......................... 6,088,734 12.10
CHEMICALS AND ALLIED PRODUCTS .............. 4,868,573 9.67
COMMUNICATIONS ............................. 5,975,272 11.87
DEPOSITORY INSTITUTIONS .................... 2,125,213 4.22
EATING AND DRINKING PLACES ................. 133,780 0.27
ELECTRIC, GAS, AND SANITARY SERVICES ....... 956,254 1.90
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT 7,933,369 15.76
ENGINEERING AND MANAGEMENT SERVICES ........ 15,111 0.03
FABRICATED METAL PRODUCTS .................. 246,311 0.49
FOOD AND KINDRED PRODUCTS .................. 1,073,223 2.13
FOOD STORES ................................ 102,373 0.20
FURNITURE AND FIXTURES ..................... 225,379 0.45
FURNITURE AND HOMEFURNISHINGS STORES ....... 75,507 0.15
GENERAL BUILDING CONTRACTORS ............... 5,522 0.01
GENERAL MERCHANDISE STORES ................. 1,387,548 2.76
HEALTH SERVICES ............................ 341,152 0.68
HEAVY CONSTRUCTION, EXCEPT BUILDING ........ 5,814 0.01
HOTELS AND OTHER LODGING PLACES ............ 5,823 0.01
INDUSTRIAL MACHINERY AND EQUIPMENT ......... 6,260,514 12.44
INSTRUMENTS AND RELATED PRODUCTS ........... 771,555 1.53
INSURANCE AGENTS, BROKERS AND SERVICE ...... 46,154 0.09
INSURANCE CARRIERS ......................... 1,697,078 3.37
LUMBER AND WOOD PRODUCTS ................... 45,915 0.09
METAL MINING ............................... 56,507 0.11
MISCELLANEOUS MANUFACTURING
INDUSTRIES ................................ 93,293 0.19
MISCELLANEOUS RETAIL ....................... 332,211 0.66
MOTION PICTURES ............................ 717,346 1.43
</TABLE>
<TABLE>
<CAPTION>
VALUE %
----------- --------
<S> <C> <C>
NONDEPOSITORY INSTITUTIONS ................. $ 458,086 0.91%
NONMETALLIC MINERALS, EXCEPT FUELS ......... 9,130 0.02
OIL AND GAS EXTRACTION ..................... 501,371 1.00
PAPER AND ALLIED PRODUCTS .................. 415,487 0.83
PERSONAL SERVICES .......................... 11,909 0.02
PETROLEUM AND COAL PRODUCTS ................ 2,262,050 4.50
PRIMARY METAL INDUSTRIES ................... 361,568 0.72
PRINTING AND PUBLISHING .................... 318,200 0.63
RAILROAD TRANSPORTATION .................... 84,534 0.17
RUBBER AND MISCELLANEOUS PLASTIC
PRODUCTS .................................. 82,169 0.16
SECURITY AND COMMODITY BROKERS ............. 747,503 1.49
STONE, CLAY, AND GLASS PRODUCTS ............ 128,495 0.26
TEXTILE MILL PRODUCTS ...................... 3,794 0.01
TOBACCO PRODUCTS ........................... 112,146 0.22
TRANSPORTATION BY AIR ...................... 302,167 0.60
TRANSPORTATION EQUIPMENT ................... 1,241,927 2.47
WATER TRANSPORTATION ....................... 32,126 0.06
WHOLESALE TRADE-DURABLE GOODS .............. 20,933 0.04
WHOLESALE TRADE-NONDURABLE GOODS ........... 366,204 0.73
----------- ------
TOTAL COMMON STOCK
(Cost $49,962,532) ......................... 50,158,174 99.67
----------- ------
SHORT TERM INVESTMENT
U.S. GOVERNMENT AGENCY ..................... 443,863 0.88
----------- ------
TOTAL SHORT TERM INVESTMENT
(Cost $443,863) ............................ 443,863 0.88
----------- ------
TOTAL PORTFOLIO
(Cost $50,406,395) ......................... 50,602,037 100.55
OTHER ASSETS & LIABILITIES, NET ............. (277,548) (0.55)
----------- ------
NET ASSETS .................................. $50,324,489 100.00%
=========== ======
</TABLE>
B-39 See notes to financial statements.
<PAGE>
TIAA-CREF LIFE FUNDS
STATEMENT OF INVESTMENTS--GROWTH & INCOME FUND
MARCH 10 , 2000
<TABLE>
<CAPTION>
SHARES VALUE
- ------ -----------
<S> <C> <C>
COMMON STOCK--99.67%
AMUSEMENT AND RECREATION SERVICES--0.19%
307 * HARRAH'S ENTERTAINMENT, INC ................... $ 6,178
451 * MIRAGE RESORTS, INC ........................... 8,118
4,267 * PREMIER PARKS, INC ............................ 83,206
-----------
97,502
-----------
APPAREL AND ACCESSORY STORES--0.25%
1,997 GAP, INC ...................................... 92,111
508 LIMITED, INC .................................. 17,272
332 NORDSTROM, INC ................................ 7,345
724 TJX COS, INC .................................. 11,041
-----------
127,769
-----------
APPAREL AND OTHER TEXTILE PRODUCTS--0.28%
5,038 * JONES APPAREL GROUP, INC ...................... 128,469
151 LIZ CLAIBORNE, INC ............................ 6,908
321 VF CORP ....................................... 7,403
-----------
142,780
-----------
AUTO REPAIR, SERVICES AND PARKING--0.01%
242 RYDSYSTEM, INC ................................ 4,552
-----------
AUTOMOTIVE DEALERS AND SERVICE STATIONS--0.02%
343 * AUTOZONE, INC ................................. 7,481
121 PEPYS MANNY, MOE, & JACK CO ................... 748
-----------
8,229
-----------
BUILDING MATERIALS AND GARDEN SUPPLIES--1.46%
9,914 HOME DEPOT, INC ............................... 532,257
4,439 LOWES COS, INC ................................ 199,755
-----------
732,012
-----------
BUSINESS SERVICES--12.10%
279 ADOBE SYSTEMS, INC ............................ 23,226
7,853 * AMERICA ONLINE, INC ........................... 464,799
141 AUTODESK, INC ................................. 7,737
1,465 AUTOMATIC DATA PROCESSING, INC ................ 64,643
560 * BMC SOFTWARE, INC ............................. 29,085
1,663 * CENDANT CORP .................................. 30,141
6,009 * CERIDIAN CORP ................................. 113,419
416 * CITRIX SYSTEMS, INC ........................... 44,720
1,253 COMPUTER ASSOCIATES INTERNATIONAL, INC 83,324
388 * COMPUTER SCIENCES CORP ........................ 31,355
827 * COMPUWARE CORP ................................ 19,744
1,100 ELECTRONIC DATA SYSTEMS CORP .................. 67,650
329 EQUIFAX, INC .................................. 7,258
978 FIRST DATA CORP ............................... 40,953
720 IMS HEALTH, INC ............................... 15,255
659 INTERPUBLIC GROUP OF COS, INC ................. 24,383
22,626 * MICROSOFT CORP ................................ 2,285,226
224 * NCR CORP ...................................... 9,282
347 * NETWORK APPLIANCE, INC ........................ 82,195
772 * NOVELL, INC ................................... 24,221
417 OMNICOM GROUP, INC ............................ 34,897
14,006 * ORACLE CORP ................................... 1,143,239
625 * PARAMETRIC TECHNOLOGY CORP .................... 19,296
578 PAYCHEX, INC .................................. 29,405
620 * PEOPLESOFT, INC ............................... 15,267
5,429 * PSINET, INC ................................... 303,345
62 SHARED MEDICAL SYSTEMS CORP ................... 3,607
7,786 * SUN MICROSYSTEMS, INC ......................... 733,343
1,859 * YAHOO, INC .................................... 331,018
161 * YOUNG & RUBICAM, INC .......................... 6,701
-----------
6,088,734
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ------ -----------
<S> <C> <C>
CHEMICALS AND ALLIED PRODUCTS--9.67%
3,572 ABBOTT LABORATORIES CO ........................ $ 110,508
532 AIR PRODUCTS & CHEMICALS, INC ................. 13,266
133 ALBERTO CULVER CO (CLASS B) ................... 2,601
307 ALLERGAN, INC ................................. 14,620
234 * ALZA CORP ..................................... 8,599
9,102 AMERICAN HOME PRODUCTS CORP ................... 450,549
4,593 * AMGEN, INC .................................... 273,570
557 AVON PRODUCTS, INC ............................ 14,621
348 * BIOGEN, INC ................................... 29,253
8,260 BRISTOL MYERS SQUIBB CO ....................... 432,618
543 CLOROX CO ..................................... 16,222
5,551 COLGATE PALMOLIVE CO .......................... 237,305
3,375 DOW CHEMICAL CO ............................... 330,750
4,501 DU PONT (E.I.) DE NEMOURS & CO ................ 206,764
182 EASTMAN CHEMICAL CO ........................... 6,574
306 ECOLAB, INC ................................... 9,294
69 * FMC CORP ...................................... 3,320
167 * GRACE W.R. & CO ............................... 1,711
135 GREAT LAKES CHEMICAL CORP ..................... 3,796
243 HERCULES, INC ................................. 3,766
242 INTERNATIONAL FLAVORS & FRAGRANCES,
INC ........................................... 7,562
3,231 JOHNSON & JOHNSON CO .......................... 228,795
4,250 LILLY (ELI) & CO .............................. 260,046
166 MALLINCKRODT, INC ............................. 3,952
9,796 MERCK & CO, INC ............................... 583,474
1,476 MONSANTO CO ................................... 58,671
15,299 PFIZER, INC ................................... 537,377
1,208 PHARMACIA & UPJOHN, INC ....................... 62,816
408 PPG INDUSTRIES, INC ........................... 19,048
367 PRAXAIR, INC .................................. 12,294
5,168 PROCTER & GAMBLE CO ........................... 274,227
507 ROHM & HAAS CO ................................ 18,030
7,590 SCHERING-PLOUGH CORP .......................... 284,150
380 SHERWIN-WILLIAMS CO ........................... 7,196
240 SIGMA ALDRICH CORP ............................ 5,310
308 UNION CARBIDE CORP ............................ 14,668
3,387 WARNER-LAMBERT CO ............................. 312,874
223 WATSON PHARMACEUTICALS, INC ................... 8,376
-----------
4,868,573
-----------
COMMUNICATIONS--11.87%
729 ALLTEL CORP ................................... 49,617
17,951 AT & T CORP ................................... 974,963
3,609 BELL ATLANTIC CORP ............................ 206,840
4,376 BELLSOUTH CORP ................................ 204,304
3,139 BROADWING, INC ................................ 122,224
4,066 * CBS CORP ...................................... 233,286
325 CENTURYTEL, INC ............................... 10,826
3,357 * CLEAR CHANNEL COMMUNICATIONS, INC ............. 207,924
1,800 COMCAST CORP (CLASS A) SPECIAL ................ 72,787
3,141 * ERICSSON TELEFON (LM) SERIES B ADR ............ 316,063
1,700 * GLOBAL CROSSING LTD ........................... 98,600
2,258 GTE CORP ...................................... 151,850
14,170 LUCENT TECHNOLOGIES, INC ...................... 958,246
11,168 * MCI WORLDCOM, INC ............................. 521,406
1,424 * MEDIA ONE GROUP, INC .......................... 111,250
845 * NEXTEL COMMUNICATIONS, INC (CLASS A) .......... 134,883
2,215 * RCN CORP ...................................... 148,405
16,386 SBC COMMUNICATIONS, INC ....................... 688,212
2,026 SPRINT CORP (FON GROUP) ....................... 124,345
2,004 * SPRINT CORP (PCS GROUP) ....................... 119,613
1,174 U.S. WEST, INC ................................ 82,620
</TABLE>
B-40 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
- ------ -----------
<S> <C> <C>
COMMUNICATIONS--(Continued)
1,614 * VIACOM, INC (CLASS A) ...................... $ 87,256
4,992 * VIATEL, INC ................................ 349,752
-----------
5,975,272
-----------
DEPOSITORY INSTITUTIONS--4.22%
921 AMSOUTH BANCORP ............................... 12,260
10,227 BANK OF AMERICA CORP .......................... 438,482
1,722 BANK OF NEW YORK CO, INC ...................... 54,673
2,660 BANK ONE CORP ................................. 65,170
825 BB&T CORP ..................................... 18,614
5,483 CHASE MANHATTAN CORP .......................... 431,443
370 COMERICA, INC ................................. 12,603
727 FIFTH THIRD BANCORP ........................... 33,351
2,297 FIRST UNION CORP .............................. 73,216
8,516 FIRSTAR CORP .................................. 149,562
6,534 FLEETBOSTON FINANCIAL CORP .................... 167,842
358 GOLDEN WEST FINANCIAL CORP .................... 9,956
551 HUNTINGTON BANCSHARES, INC .................... 10,227
1,049 KEYCORP ....................................... 16,849
1,857 MBNA CORP ..................................... 40,970
4,535 MELLON FINANCIAL CORP ......................... 124,995
402 MORGAN (J.P.) & CO, INC ....................... 42,637
1,442 NATIONAL CITY CORP ............................ 24,964
523 NORTHERN TRUST CORP ........................... 27,359
288 OLD KENT FINANCIAL CORP ....................... 7,002
690 PNC BANK CORP ................................. 25,831
325 PROVIDIAN FINANCIAL CORP ...................... 21,084
521 REGIONS FINANCIAL CORP ........................ 9,931
400 SOUTHTRUST CORP ............................... 8,575
374 STATE STREET CORP ............................. 25,291
416 SUMMIT BANCORP ................................ 9,542
754 SUNTRUST BANKS, INC ........................... 35,720
681 SYNOVUS FINANCIAL CORP ........................ 10,172
1,694 U.S. BANCORP .................................. 30,492
339 UNION PLANTERS CORP ........................... 8,729
479 WACHOVIA CORP ................................. 26,045
1,310 WASHINGTON MUTUAL, INC ........................ 28,574
3,823 WELLS FARGO CO ................................ 123,052
-----------
2,125,213
-----------
EATING AND DRINKING PLACES--0.27%
297 DARDEN RESTAURANTS, INC ....................... 3,842
592 MARRIOTT INTERNATIONAL (CLASS A) .............. 15,947
3,135 MCDONALD'S CORP ............................... 99,928
354 * TRICON GLOBAL RESTAURANTS, INC ................ 9,823
264 WENDY'S INTERNATIONAL, INC .................... 4,240
-----------
133,780
-----------
ELECTRIC, GAS, AND SANITARY SERVICES--1.90%
480 * AES CORP ...................................... 35,040
409 * ALLIED WASTE INDUSTRIES, INC .................. 2,402
330 AMEREN CORP ................................... 9,281
5,752 AMERICAN ELECTRIC POWER CO, INC ............... 149,911
376 CAROLINA POWER & LIGHT CO ..................... 10,857
512 CENTRAL & SOUTH WEST CORP ..................... 8,096
376 CINERGY CORP .................................. 7,590
246 * CMS ENERGY CORP ............................... 4,228
486 COASTAL CORP .................................. 22,508
176 COLUMBIA ENERGY GROUP ......................... 9,988
513 CONSOLIDATED EDISON CO OF NEW
YORK,INC ...................................... 14,075
351 CONSTELLATION ENERGY GROUP .................... 10,464
566 DOMINION RESOURCES, INC ....................... 20,553
338 DTE ENERGY CO ................................. 10,393
850 DUKE ENERGY CORP .............................. 39,418
46 EASTERN ENTERPRISES CO ........................ 2,627
808 EDISON INTERNATIONAL CO ....................... 12,372
515 EL PASO ENERGY CORP ........................... 20,375
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ------ -----------
<S> <C> <C>
577 ENTERGY CORP .................................. $ 10,349
556 FIRSTENERGY CORP .............................. 10,181
224 FLORIDA PROGRESS CORP ......................... 9,814
3,648 FPL GROUP, INC ................................ 159,600
288 GPU, INC ...................................... 6,912
273 NEW CENTURY ENERGIES, INC ..................... 6,825
463 * NIAGARA MOHAWK HOLDINGS, INC .................. 5,179
79 NICOR, INC .................................... 2,379
7,870 NORTHERN STATES POWER CO ...................... 130,838
64 ONEOK, INC .................................... 1,524
432 PECO ENERGY CO ................................ 16,524
56 PEOPLES ENERGY CORP ........................... 1,540
894 PG&E CORP ..................................... 18,997
198 * PINNACLE WEST CAPITAL CORP .................... 5,185
342 PPL CORP ...................................... 6,583
505 PUBLIC SERVICE ENTERPRISE GROUP, INC .......... 13,193
681 RELIANT ENERGY, INC ........................... 14,386
450 SEMPRA ENERGY ................................. 7,846
1,581 SOUTHERN CO ................................... 33,398
648 TEXAS UTILITIES CO ............................ 17,253
513 UNICOM CORP ................................... 19,269
1,401 WASTE MANAGEMENT, INC ......................... 19,614
1,000 WILLIAMS COS, INC ............................. 48,687
-----------
956,254
-----------
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT--15.76%
692 * ADC TELECOMMUNICATIONS, INC ................... 37,195
349 * ADVANCED MICRO DEVICES, INC ................... 18,409
409 * ANALOG DEVICES, INC ........................... 70,731
185 * ANDREW CORP ................................... 5,284
661 * APPLIED MICRO CIRCUITS CORP ................... 192,351
3,410 * CIENA CORP .................................... 555,403
176 * COMVERSE TECHNOLOGY, INC ...................... 41,118
459 * CONEXANT SYSTEMS, INC ......................... 40,420
204 COOPER INDUSTRIES, INC ........................ 6,375
997 EMERSON ELECTRIC CO ........................... 41,001
13,579 GENERAL ELECTRIC CO ........................... 1,788,184
13,192 INTEL CORP .................................... 1,585,513
7,331 * LSI LOGIC CORP ................................ 646,960
188 MAYTAG CO ..................................... 5,193
630 * MICRON TECHNOLOGY, INC ........................ 67,173
453 MOLEX, INC .................................... 28,390
3,015 MOTOROLA, INC ................................. 518,768
404 * NATIONAL SEMICONDUCTOR CORP ................... 28,280
98 NATIONAL SERVICE INDUSTRIES, INC .............. 2,064
1,891 NOKIA OYJ ADR ................................. 406,210
5,473 NORTEL NETWORKS CORP (U.S.) ................... 675,573
2,814 * QUALCOMM, INC ................................. 383,055
181 SCIENTIFIC-ATLANTA, INC ....................... 24,514
8,356 * SOLECTRON CORP ................................ 298,727
930 * TELLABS, INC .................................. 53,010
1,869 TEXAS INSTRUMENTS, INC ........................ 340,158
124 THOMAS & BETTS CORP ........................... 2,666
168 WHIRLPOOL CORP ................................ 8,410
747 * XILINX, INC ................................... 62,234
-----------
7,933,369
-----------
ENGINEERING AND MANAGEMENT SERVICES--0.03%
384 DUN & BRADSTREET CORP ......................... 10,008
266 * QUINTILES TRANSNATIONAL CORP .................. 5,103
-----------
15,111
-----------
FABRICATED METAL PRODUCTS--0.49%
9,834 AMERICAN NATIONAL CAN GROUP, INC .............. 108,788
77 BALL CORP ..................................... 2,189
151 CRANE CO ...................................... 2,991
317 CROWN CORK & SEAL CO, INC ..................... 4,319
2,486 GILLETTE CO ................................... 74,424
1,035 MASCO CORP .................................... 19,018
</TABLE>
B-41 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
- ------ -----------
<S> <C> <C>
FABRICATED METAL PRODUCTS--(Continued)
261 PARKER-HANNIFIN CORP .......................... $ 9,265
436 ROCKWELL INTERNATIONAL CORP ................... 17,113
132 SNAP-ON, INC .................................. 3,209
206 STANLEY WORKS CO .............................. 4,995
-----------
246,311
-----------
FOOD AND KINDRED PRODUCTS--2.13%
3,352 ANHEUSER BUSCH COS, INC ....................... 190,226
1,408 ARCHER DANIELS MIDLAND CO ..................... 13,464
646 BESTFOODS, INC ................................ 24,911
147 BROWN FORMAN, INC (CLASS B) ................... 6,275
993 CAMPBELL SOUP CO .............................. 28,734
5,737 COCA COLA CO .................................. 256,372
988 COCA COLA ENTERPRISES, INC .................... 20,748
1,137 CONAGRA, INC .................................. 17,765
69 COORS (ADOLPH) CO (CLASS B) ................... 2,751
379 FORTUNE BRANDS, INC ........................... 8,432
703 GENERAL MILLS, INC ............................ 22,056
827 HEINZ (H.J.) CO ............................... 27,859
317 HERSHEY FOODS CORP ............................ 12,680
943 KELLOGG CO .................................... 21,630
747 NABISCO GROUP HOLDINGS ........................ 6,536
7,179 PEPSICO, INC .................................. 220,305
312 QUAKER OATS CO ................................ 14,566
703 RALSTON PURINA CO ............................. 17,179
2,147 SARA LEE CORP ................................. 31,265
990 SEAGRAMS CO LTD (U.S.) ........................ 58,162
1,326 UNILEVER NV (NEW YORK SHS) .................... 54,697
269 WRIGLEY (WM) JR CO ............................ 16,610
-----------
1,073,223
-----------
FOOD STORES--0.20%
1,001 ALBERTSONS, INC ............................... 24,024
104 GREAT ATLANTIC & PACIFIC TEA CO, INC .......... 2,119
1,948 * KROGER CO ..................................... 28,733
1,190 * SAFEWAY, INC .................................. 41,724
368 WINN DIXIE STORES, INC ........................ 5,773
-----------
102,373
-----------
FURNITURE AND FIXTURES--0.45%
455 LEGGETT & PLATT, INC .......................... 7,735
10,123 NEWELL RUBBERMAID, INC ........................ 217,644
-----------
225,379
-----------
FURNITURE AND HOMEFURNISHINGS STORES--0.15%
328 * BED BATH & BEYOND, INC ........................ 7,749
476 * BEST BUY, INC ................................. 29,720
471 CIRCUIT CITY STORES-CIRCUIT CITY GROUP ........ 20,135
449 TANDY CORP .................................... 17,903
-----------
75,507
-----------
GENERAL BUILDING CONTRACTORS--0.01%
124 CENTEX CORP ................................... 2,247
103 KAUFMAN & BROAD HOME CORP ..................... 1,847
90 PULTE CORP .................................... 1,428
-----------
5,522
-----------
GENERAL MERCHANDISE STORES--2.76%
260 * CONSOLIDATED STORES CORP ...................... 2,957
900 * COSTCO WHOLESALE CORP ......................... 39,712
243 DILLARDS, INC (CLASS A) ....................... 3,477
623 DOLLAR GENERAL CORP ........................... 12,382
482 * FEDERATED DEPARTMENT STORES, INC .............. 17,020
173 HARCOURT GENERAL, INC ......................... 6,022
1,124 * K MART CORP ................................... 9,835
379 * KOHLS CORP .................................... 31,504
776 MAY DEPARTMENT STORES CO ...................... 19,400
600 PENNEY, (J.C.) CO, INC ........................ 8,362
868 SEARS ROEBUCK & CO ............................ 24,087
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ------ -----------
<S> <C> <C>
4,019 * TARGET CORP ................................... $ 244,405
20,201 WAL-MART STORES, INC .......................... 968,385
-----------
1,387,548
-----------
HEALTH SERVICES--0.68%
1,347 COLUMBIA/HCA HEALTHCARE CORP .................. 28,202
9,178 * HEALTH MANAGEMENT ASSOCIATES, INC
(CLASS A) NEW ................................. 108,988
916 * HEALTHSOUTH CORP .............................. 4,637
264 * MANOR CARE, INC ............................... 3,498
9,466 * TENET HEALTHCARE CORP ......................... 195,827
-----------
341,152
-----------
HEAVY CONSTRUCTION, EXCEPT BUILDING--0.01%
173 FLUOR CORP .................................... 4,671
122 * MCDERMOTT INTERNATIONAL, INC .................. 1,143
-----------
5,814
-----------
HOTELS AND OTHER LODGING PLACES--0.01%
879 HILTON HOTELS CORP ............................ 5,823
-----------
INDUSTRIAL MACHINERY AND EQUIPMENT--12.44%
802 * 3COM CORP ..................................... 55,288
240 * ADAPTEC, INC .................................. 10,635
373 * APPLE COMPUTER, INC ........................... 46,904
883 * APPLIED MATERIALS, INC ........................ 170,474
3,717 BAKER HUGHES, INC ............................. 101,288
198 BLACK & DECKER CORP ........................... 6,323
230 BRUNSWICK CORP ................................ 3,579
419 * CABLETRON SYSTEMS, INC ........................ 20,086
841 CATERPILLAR, INC .............................. 30,013
13,876 * CISCO SYSTEMS, INC ............................ 1,892,339
15,896 COMPAQ COMPUTER CORP .......................... 453,036
97 CUMMINS ENGINE CO, INC ........................ 3,104
581 DEERE & CO .................................... 20,625
10,514 * DELL COMPUTER CORP ............................ 538,842
471 DOVER CORP .................................... 19,664
6,005 * EMC CORP ...................................... 783,277
734 * GATEWAY, INC .................................. 45,875
2,368 HEWLETT-PACKARD CO ............................ 347,504
385 INGERSOLL-RAND CO ............................. 13,860
7,034 * INTERNATIONAL BUSINESS MACHINES CORP .......... 739,009
296 * LEXMARK INTERNATIONAL GROUP (CLASS A) ......... 38,221
79 MILACRON, INC ................................. 1,091
26 NACCO INDUSTRIES, INC (CLASS A) ............... 1,095
293 PALL CORP ..................................... 6,391
618 PITNEY BOWES, INC ............................. 28,505
482 * SEAGATE TECHNOLOGY, INC ....................... 30,968
424 * SILICON GRAPHICS, INC ......................... 5,220
144 TIMKEN CO ..................................... 2,160
17,569 TYCO INTERNATIONAL LTD ........................ 825,743
720 * UNISYS CORP .................................. 19,395
-----------
6,260,514
-----------
INSTRUMENTS AND RELATED PRODUCTS--1.53%
118 BARD (C.R.), INC .............................. 4,343
132 BAUSCH & LOMB, INC ............................ 6,905
4,500 BAXTER INTERNATIONAL, INC ..................... 252,281
581 BECTON DICKINSON & CO ......................... 18,592
261 BIOMET, INC ................................... 8,123
961 * BOSTON SCIENTIFIC CORP ........................ 20,361
749 EASTMAN KODAK CO .............................. 40,446
713 * GUIDANT CORP .................................. 50,578
198 JOHNSON CONTROLS, INC ......................... 9,627
414 * KLA-TENCOR CORP ............................... 37,725
2,776 MEDTRONIC, INC ................................ 141,923
102 MILLIPORE CORP ................................ 6,292
477 PE CORP-PE BIOSYSTEMS GROUP ................... 54,825
112 PERKINELMER, INC .............................. 8,127
108 POLAROID CORP ................................. 3,051
</TABLE>
B-42 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
- ------ -----------
<S> <C> <C>
INSTRUMENTS AND RELATED PRODUCTS--(Continued)
786 RAYTHEON CO (CLASS B) ......................... $ 13,951
194 * ST. JUDE MEDICAL, INC ......................... 4,947
107 TEKTRONIX, INC ................................ 7,215
395 * TERADYNE, INC ................................. 35,550
365 * THERMO ELECTRON CORP .......................... 9,421
1,537 XEROX CORP .................................... 37,272
-----------
771,555
-----------
INSURANCE AGENTS, BROKERS AND SERVICE--0.09%
619 MARSH & MCLENNAN COS, INC ..................... 46,154
-----------
INSURANCE CARRIERS--3.37%
5,668 ACE LTD ....................................... 85,728
339 AETNA, INC .................................... 18,984
612 AFLAC, INC .................................... 21,496
1,845 ALLSTATE CORP ................................. 33,094
567 AMERICAN GENERAL CORP ......................... 26,790
5,998 AMERICAN INTERNATIONAL GROUP, INC ............. 498,208
588 AON CORP ...................................... 12,678
403 CHUBB CORP .................................... 18,260
426 CIGNA CORP .................................... 27,157
385 CINCINNATI FINANCIAL CORP ..................... 10,346
12,575 CITIGROUP, INC ................................ 615,389
735 CONSECO, INC .................................. 9,141
507 HARTFORD FINANCIAL SERVICES GROUP, INC......... 15,463
411 * HUMANA, INC ................................... 2,645
242 JEFFERSON-PILOT CORP .......................... 12,342
8,386 * JOHN HANCOCK FINANCIAL SERVICES, INC .......... 122,121
442 LINCOLN NATIONAL CORP ......................... 11,077
247 LOEWS CORP .................................... 9,895
228 MBIA, INC ..................................... 8,963
241 MGIC INVESTMENT CORP .......................... 8,028
169 PROGRESSIVE CORP .............................. 8,407
294 SAFECO CORP ................................... 5,457
520 ST. PAUL COS, INC ............................. 11,960
291 TORCHMARK CORP ................................ 5,565
404 UNITED HEALTHCARE CORP ........................ 20,554
537 UNUMPROVIDENT CORP ............................ 6,611
156 WELLPOINT HEALTH NETWORKS, INC ................ 9,155
1,468 XL CAPITAL LTD ................................ 61,564
-----------
1,697,078
-----------
LUMBER AND WOOD PRODUCTS--0.09%
388 GEORGIA-PACIFIC CORP (PACKING GROUP) .......... 13,846
229 LOUISIANA PACIFIC CORP ........................ 2,619
541 WEYERHAEUSER CO ............................... 29,450
-----------
45,915
-----------
METAL MINING--0.11%
935 BARRICK GOLD CORP (U.S.) ...................... 15,135
391 * FREEPORT-MCMORAN COPPER & GOLD, INC
(CLASS B) ..................................... 5,107
631 HOMESTAKE MINING CO ........................... 4,022
456 * INCO LTD CO (U.S.) ............................ 7,495
393 NEWMONT MINING CORP ........................... 9,137
186 PHELPS DODGE CORP ............................. 8,916
782 PLACER DOME, INC (U.S.) ....................... 6,695
-----------
56,507
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES--0.19%
462 HASBRO, INC ................................... 6,612
75 JOSTENS, INC .................................. 1,795
992 MATTEL, INC ................................... 8,928
932 MINNESOTA MINING & MANUFACTURING CO............ 75,958
-----------
93,293
-----------
MISCELLANEOUS RETAIL--0.66%
7,798 CVS CORP ...................................... 237,351
98 LONGS DRUG STORES CORP ........................ 1,696
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ------ -----------
<S> <C> <C>
765 * OFFICE DEPOT, INC ............................. $ 7,984
596 RITE AID CORP ................................. 3,650
900 * STAPLES, INC .................................. 17,437
568 * TOYS R US, INC ................................ 6,567
2,348 WALGREEN CO ................................... 57,526
-----------
332,211
-----------
MOTION PICTURES--1.43%
8,853 DISNEY (WALT) CO .............................. 310,961
4,781 TIME WARNER, INC .............................. 406,385
-----------
717,346
-----------
NONDEPOSITORY INSTITUTIONS--0.91%
1,036 AMERICAN EXPRESS CO ........................... 131,248
4,804 ASSOCIATES FIRST CAPITAL CORP ................. 77,464
453 CAPITAL ONE FINANCIAL CORP .................... 16,676
254 COUNTRYWIDE CREDIT INDUSTRIES, INC ............ 6,175
2,381 FEDERAL NATIONAL MORTGAGE
ASSOCIATION ................................... 119,198
1,616 FREDDIE MAC ................................... 60,903
1,086 HOUSEHOLD INTERNATIONAL, INC .................. 35,566
368 SLM HOLDINGS CORP ............................. 10,856
-----------
458,086
-----------
NONMETALLIC MINERALS, EXCEPT FUELS--0.02%
236 VULCAN MATERIALS CO .......................... 9,130
-----------
OIL AND GAS EXTRACTION--1.00%
303 ANADARKO PETROLEUM CORP ....................... 9,393
3,627 APACHE CORP ................................... 147,800
4,579 BURLINGTON RESOURCES, INC ..................... 144,238
1,024 HALLIBURTON CO ................................ 40,512
223 KERR-MCGEE CORP ............................... 11,749
878 OCCIDENTAL PETROLEUM CORP ..................... 15,310
213 * ROWAN COS, INC ................................ 5,604
1,277 SCHLUMBERGER LTD .............................. 98,807
477 * TRANSOCEAN SEDCO FOREX, INC ................... 21,107
609 UNION PACIFIC RESOURCES GROUP, INC ............ 6,851
-----------
501,371
-----------
PAPER AND ALLIED PRODUCTS--0.83%
262 AVERY DENNISON CORP ........................... 15,851
122 BEMIS, INC .................................... 3,644
128 BOISE CASCADE CORP ............................ 3,608
221 CHAMPION INTERNATIONAL CORP ................... 10,663
6,611 FORT JAMES CORP ............................... 125,609
955 INTERNATIONAL PAPER CO ........................ 34,499
1,263 KIMBERLY-CLARK CORP ........................... 59,992
234 MEAD CORP ..................................... 7,224
70 POTLATCH CORP ................................. 2,725
8,849 * SMURFIT-STONE CONTAINER CORP .................. 129,969
126 TEMPLE-INLAND, INC ............................ 5,685
234 WESTVACO CORP ................................. 6,756
260 WILLAMETTE INDUSTRIES, INC .................... 9,262
-----------
415,487
-----------
PERSONAL SERVICES--0.02%
223 BLOCK (H&R), INC .............................. 9,575
667 SERVICE CORP INTERNATIONAL .................... 2,334
-----------
11,909
-----------
PETROLEUM AND COAL PRODUCTS--4.50%
215 AMERADA HESS CORP ............................ 12,308
162 ASHLAND, INC ................................. 5,143
750 ATLANTIC RICHFIELD CO ........................ 61,546
2,676 BP AMOCO PLC (SPONS ADR) ..................... 142,831
1,525 CHEVRON CORP ................................. 121,714
5,347 CONOCO, INC (CLASS B) ........................ 124,986
17,883 EXXON MOBIL CORP ............................. 1,376,991
605 PHILLIPS PETROLEUM CO ........................ 24,162
</TABLE>
B-43 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
- ------ -----------
<S> <C> <C>
PETROLEUM AND COAL PRODUCTS--(Continued)
4,999 ROYAL DUTCH PETROLEUM CO
(NY REGD) ADR ................................. $ 282,443
186 SUNOCO, INC ................................... 5,208
1,274 TEXACO, INC ................................... 62,107
333 TOSCO CORP .................................... 9,344
564 UNOCAL CORP ................................... 15,792
699 USX-MARATHON GROUP, INC ....................... 17,475
-----------
2,262,050
-----------
PRIMARY METAL INDUSTRIES--0.72%
517 ALCAN ALUMINIUM CO LTD (U.S.) ................. 16,091
4,622 ALCOA, INC .................................... 309,674
219 ALLEGHENY TECHNOLOGIES, INC ................... 3,873
315 * BETHLEHEM STEEL CORP .......................... 2,067
296 ENGELHARD CORP ................................ 4,014
207 NUCOR CORP .................................... 9,948
147 REYNOLDS METALS CO ............................ 8,636
202 USX-US STEEL GROUP, INC ....................... 4,393
222 WORTHINGTON INDUSTRIES, INC ................... 2,872
-----------
361,568
-----------
PRINTING AND PUBLISHING--0.63%
135 AMERICAN GREETINGS CORP (CLASS A) ............. 2,244
167 DELUXE CORP ................................... 4,133
287 DONNELLEY (R.R.) & SONS CO .................... 5,524
210 DOW JONES & CO, INC ........................... 13,597
646 GANNETT CO, INC ............................... 42,353
191 KNIGHT-RIDDER, INC ............................ 8,618
458 MCGRAW HILL COS, INC .......................... 22,442
122 MEREDITH CORP ................................. 2,737
396 NEW YORK TIMES CO (CLASS A) ................... 16,508
143 TIMES MIRROR CO SERIES A ...................... 6,855
5,195 TRIBUNE CO .................................... 193,189
-----------
318,200
-----------
RAILROAD TRANSPORTATION--0.17%
1,039 BURLINGTON NORTHERN SANTA FE CORP ............. 20,455
472 CSX CORP ...................................... 10,502
254 KANSAS CITY SOUTHERN INDUSTRIES, INC .......... 22,273
869 NORFOLK SOUTHERN CORP ......................... 11,459
566 UNION PACIFIC CORP ............................ 19,845
-----------
84,534
-----------
RUBBER AND MISCELLANEOUS PLASTIC PRODUCTS--0.16%
85 ARMSTRONG WORLD INDUSTRIES, INC ............... 1,397
188 COOPER TIRE & RUBBER CO ....................... 1,856
360 GOODYEAR TIRE & RUBBER CO ..................... 7,515
699 ILLINOIS TOOL WORKS, INC ...................... 38,008
679 NIKE, INC (CLASS B) ........................... 18,248
393 * PACTIV CORP ................................... 3,094
155 * REEBOK INTERNATIONAL LTD ...................... 1,404
194 * SEALED AIR CORP ............................... 8,681
121 TUPPERWARE CORP ............................... 1,966
-----------
82,169
-----------
SECURITY AND COMMODITY BROKERS--1.49%
274 BEAR STEARNS COS, INC ......................... 11,285
584 FRANKLIN RESOURCES, INC ....................... 15,330
276 LEHMAN BROTHERS HOLDINGS, INC ................. 22,666
857 MERRILL LYNCH & CO, INC ....................... 89,931
5,613 MORGAN STANLEY DEAN WITTER & CO ............... 486,927
328 PAINE WEBBER GROUP, INC ....................... 12,956
280 PRICE (T. ROWE) ASSOCIATES, INC ............... 8,977
1,903 SCHWAB (CHARLES) CORP ......................... 99,431
----------
747,503
----------
STONE, CLAY, AND GLASS PRODUCTS--0.26%
631 CORNING, INC .................................. 120,836
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ------ -----------
<S> <C> <C>
126 OWENS CORNING CO .............................. $ 1,842
358 * OWENS ILLINOIS, INC ........................... 5,817
----------
128,495
----------
TEXTILE MILL PRODUCTS--0.01%
110 RUSSELL CORP .................................. 1,512
62 SPRING INDUSTRIES, INC ........................ 2,282
----------
3,794
----------
TOBACCO PRODUCTS--0.22%
5,513 PHILIP MORRIS COS, INC ........................ 105,091
409 UST, INC ...................................... 7,055
----------
112,146
----------
TRANSPORTATION BY AIR--0.60%
1,420 * AMR CORP ...................................... 80,762
1,581 * CONTINENTAL AIRLINES, INC (CLASS B) ........... 55,631
317 DELTA AIRLINES, INC ........................... 15,156
647 * FEDEX CORP .................................... 21,715
6,708 SOUTHWEST AIRLINES CO ......................... 125,355
170 * U.S. AIRWAYS GROUP, INC ....................... 3,548
----------
302,167
----------
TRANSPORTATION EQUIPMENT--2.47%
2,188 BOEING CO ..................................... 70,836
1,890 DAIMLERCHRYSLER (U.S.A.) ...................... 113,990
388 DANA CORP ..................................... 8,366
328 DANAHER CORP .................................. 12,607
1,333 DELPHI AUTOMOTIVE SYSTEMS CORP ................ 21,577
169 EATON CORP .................................... 12,865
2,829 FORD MOTOR CO ................................. 116,165
468 GENERAL DYNAMICS CORP ......................... 18,398
1,487 GENERAL MOTORS CORP ........................... 115,707
475 * GENERAL MOTORS CORP (CLASS H) ................ 61,601
254 GOODRICH (B.F.) CO ............................ 6,731
2,272 HARLEY DAVIDSON, INC .......................... 158,188
5,329 HONEYWELL INTERNATIONAL, INC .................. 241,803
210 ITT INDUSTRIES, INC ........................... 5,105
931 LOCKHEED MARTIN CORP .......................... 15,652
145 * NAVISTAR INTERNATIONAL CORP .................. 4,857
164 * NORTHROP GRUMMAN CORP ........................ 7,718
184 PACCAR, INC ................................... 7,831
348 TEXTRON, INC .................................. 18,291
292 TRW, INC ...................................... 15,676
4,255 UNITED TECHNOLOGIES CORP ...................... 207,963
----------
1,241,927
----------
WATER TRANSPORTATION--0.06%
1,393 CARNIVAL CORP (CLASS A) ....................... 32,126
----------
WHOLESALE TRADE-DURABLE GOODS--0.04%
50 BRIGGS & STRATTON CORP ........................ 1,565
418 * GENUINE PARTS CO .............................. 8,647
214 GRAINGER (W.W.), INC .......................... 8,479
345 IKON OFFICE SOLUTIONS, INC .................... 2,242
----------
20,933
----------
WHOLESALE TRADE-NONDURABLE GOODS--0.73%
5,142 CARDINAL HEALTH, INC .......................... 214,849
1,654 ENRON CORP .................................... 112,678
653 MCKESSON HBOC, INC ............................ 12,121
318 SUPERVALU, INC ................................ 4,591
764 SYSCO CORP .................................... 21,965
----------
366,204
----------
TOTAL COMMON STOCK
(Cost $49,962,532) ............................. 50,158,174
----------
</TABLE>
B-44 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
- --------- -----------
<S> <C> <C>
SHORT TERM INVESTMENT--0.88%
U.S. GOVERNMENT AGENCY--0.88%
FEDERAL HOME LOAN BANK (FHLB)
$444,000 5.540%, 03/13/00 ................................ $ 443,863
-----------
TOTAL SHORT TERM INVESTMENT
(Cost $443,863) ........................................... 443,863
-----------
TOTAL PORTFOLIO
(Cost $50,406,395) ........................................ $50,602,037
===========
</TABLE>
- ------------
* Non-income producing
The cost of investments for federal income tax purposes is substantially the
same as the amount disclosed above.
B-45 See notes to financial statements.
<PAGE>
TIAA-CREF LIFE FUNDS
STATEMENT OF INVESTMENTS--INTERNATIONAL EQUITY FUND
MARCH 10, 2000
SUMMARY BY INDUSTRY
<TABLE>
<CAPTION>
VALUE %
--------- -------
<S> <C> <C>
PREFERRED STOCK
BUSINESS SERVICES .......................... $ 1,512,487 3.04%
MOTION PICTURES ............................ 538,159 1.08
------------- -------
TOTAL PREFERRED STOCK
(Cost $1,988,245) .......................... 2,050,646 4.12
------------- -------
COMMON STOCK
AMUSEMENT AND RECREATION SERVICES .......... 36,202 0.07
APPAREL AND ACCESSORY STORES ............... 36,082 0.07
APPAREL AND OTHER TEXTILE PRODUCTS ......... 5,635 0.01
BUILDING MATERIALS AND GARDEN SUPPLIES ..... 17,263 0.04
BUSINESS SERVICES .......................... 9,812,948 19.71
CHEMICALS AND ALLIED PRODUCTS .............. 1,630,422 3.28
COMMUNICATIONS ............................. 13,071,051 26.25
DEPOSITORY INSTITUTIONS .................... 2,838,883 5.70
EATING AND DRINKING PLACES ................. 194,736 0.39
ELECTRIC, GAS, AND SANITARY SERVICES ....... 731,990 1.47
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT 6,465,196 12.99
ENGINEERING AND MANAGEMENT SERVICES ........ 6,867 0.01
FOOD AND KINDRED PRODUCTS .................. 270,118 0.54
FOOD STORES ................................ 161,412 0.32
GENERAL MERCHANDISE STORES ................. 86,851 0.17
HEAVY CONSTRUCTION, EXCEPT BUILDING ........ 32,019 0.06
HOLDING AND OTHER INVESTMENT OFFICES ....... 489,617 0.98
HOTELS AND OTHER LODGING PLACES ............ 10,358 0.02
INDUSTRIAL MACHINERY AND EQUIPMENT ......... 293,280 0.59
INSTRUMENTS AND RELATED PRODUCTS ........... 565,232 1.14
INSURANCE AGENTS, BROKERS AND SERVICE ...... 39,796 0.08
INSURANCE CARRIERS ......................... 734,909 1.48
LOCAL AND INTERURBAN PASSENGER TRANSIT 141,028 0.28
LUMBER AND WOOD PRODUCTS ................... 10,607 0.02
METAL MINING ............................... 41,289 0.08
MISCELLANEOUS MANUFACTURING
INDUSTRIES ................................ 305,383 0.61
MISCELLANEOUS RETAIL ....................... 98,149 0.20
MOTION PICTURES ............................ 518,439 1.04
</TABLE>
<TABLE>
<CAPTION>
VALUE %
--------- -------
<S> <C> <C>
NONDEPOSITORY INSTITUTIONS ................. $ 399,998 0.80%
OIL AND GAS EXTRACTION ..................... 278,791 0.56
PAPER AND ALLIED PRODUCTS .................. 39,214 0.08
PETROLEUM AND COAL PRODUCTS ................ 865,447 1.74
PRIMARY METAL INDUSTRIES ................... 61,714 0.13
PRINTING AND PUBLISHING .................... 1,343,281 2.70
RAILROAD TRANSPORTATION .................... 25,336 0.05
REAL ESTATE ................................ 134,184 0.27
RUBBER AND MISCELLANEOUS PLASTIC
PRODUCTS .................................. 332,483 0.67
SECURITY AND COMMODITY BROKERS ............. 262,093 0.53
SPECIAL TRADE CONTRACTORS .................. 17,750 0.04
STONE, CLAY, AND GLASS PRODUCTS ............ 323,089 0.65
TOBACCO PRODUCTS ........................... 32,874 0.07
TRANSPORTATION BY AIR ...................... 56,336 0.11
TRANSPORTATION EQUIPMENT ................... 952,426 1.91
TRANSPORTATION SERVICES .................... 149,372 0.30
TRUCKING AND WAREHOUSING ................... 44,880 0.09
WATER TRANSPORTATION ....................... 11,116 0.02
WHOLESALE TRADE-DURABLE GOODS .............. 1,176,865 2.37
------------- -------
TOTAL COMMON STOCK
(Cost $45,578,606) ......................... 45,153,011 90.69
------------- -------
SHORT TERM INVESTMENT
U.S. GOVERNMENT AGENCY ..................... 20,416,714 41.00
------------- -------
TOTAL SHORT TERM INVESTMENT
(Cost $20,416,714) ......................... 20,416,714 41.00
------------- -------
TOTAL PORTFOLIO
(Cost $67,983,565) ......................... 67,620,371 135.81
OTHER ASSETS & LIABILITIES, NET ............. (17,829,622) (35.81)
------------- -------
NET ASSETS .................................. $ 49,790,749 100.00%
============= =======
</TABLE>
B-46 See notes to financial statements.
<PAGE>
TIAA-CREF LIFE FUNDS
STATEMENT OF INVESTMENTS--INTERNATIONAL EQUITY FUND
MARCH 10, 2000
SUMMARY BY COUNTRY
<TABLE>
<CAPTION>
VALUE %
--------- -------
<S> <C> <C>
FOREIGN
AUSTRALIA .............. $ 1,122,610 1.66%
AUSTRIA ................ 19,048 0.03
BELGIUM ................ 106,562 0.16
CHINA .................. 12,512 0.02
DENMARK ................ 114,182 0.17
FINLAND ................ 1,773,712 2.62
FRANCE ................. 2,844,612 4.21
GERMANY ................ 6,031,557 8.92
HONG KONG .............. 3,026,404 4.47
INDIA .................. 244,375 0.36
IRELAND ................ 229,546 0.34
ITALY .................. 3,709,418 5.49
JAPAN .................. 8,610,576 12.73
NETHERLANDS ............ 1,771,991 2.62
</TABLE>
<TABLE>
<CAPTION>
VALUE %
--------- -------
<S> <C> <C>
NEW ZEALAND ............ $ 18,984 0.03%
NORWAY ................. 63,139 0.09
PORTUGAL ............... 159,842 0.24
SINGAPORE .............. 974,077 1.44
SPAIN .................. 836,326 1.24
SWEDEN ................. 1,995,862 2.95
SWITZERLAND ............ 1,741,324 2.58
UNITED KINGDOM ......... 11,796,998 17.44
----------- -------
TOTAL FOREIGN ............ 47,203,657 69.81
TOTAL SHORT TERM ......... 20,416,714 30.19
----------- -------
TOTAL PORTFOLIO .......... $67,620,371 100.00%
=========== =======
</TABLE>
B-47 See notes to financial statements.
<PAGE>
TIAA-CREF LIFE FUNDS
STATEMENT OF INVESTMENTS--INTERNATIONAL EQUITY FUND
MARCH 10, 2000
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
PREFERRED STOCK--4.12%
BUSINESS SERVICES--3.04%
1,500 SAP AG. .................................. $ 1,512,487
-----------
MOTION PICTURES--1.08%
3,600 PROSIEBEN MEDIA AG. ...................... 538,159
-----------
TOTAL PREFERRED STOCK
(Cost $1,988,245) ...................................... 2,050,646
-----------
COMMON STOCK--90.69%
AMUSEMENT AND RECREATION SERVICES--0.07%
3,400 GRANADA GROUP LTD (CLASS A) .............. 36,202
-----------
APPAREL AND ACCESSORY STORES--0.07%
1,000 HENNES & MAURITZ AB SERIES B ............. 36,082
-----------
APPAREL AND OTHER TEXTILE PRODUCTS--0.01%
2,900 BENETTON GROUP S.P.A. .................... 5,635
-----------
BUILDING MATERIALS AND GARDEN SUPPLIES--0.04%
1,000 CRH PLC .................................. 17,263
-----------
BUSINESS SERVICES--19.71%
32,000 * ANITE GROUP PLC .......................... 157,859
100 * ASIAINFO HOLDINGS, INC ................... 8,500
3,200 * BIODATA INFORMATION TECHNOLOGY AG. ....... 848,709
129,000 * BMCMEDIA.COM ............................. 554,422
100 CAP GEMINI S.A. .......................... 33,755
3,500 * CHINA.COM CORP (CLASS A) ................. 448,382
200 * DASSAULT SYSTEMS S.A. .................... 21,931
648,000 * E-KONG GROUP LTD ......................... 258,053
2,000 * FANTASTIC CORP ........................... 896,931
1,800 * FRAMTIDSFABRIKEN AB ...................... 56,288
88 * FREENET.DE AG. ........................... 15,531
44,000 * FREESERVE PLC ............................ 419,875
700 * FUJITSU SUPPORT & SERVICE, INC ........... 362,754
100 * GETRONICS NV ............................. 8,954
184 * GIGAMEDIA LTD ............................ 12,512
47,200 HAYS PLC ................................. 273,078
14,000 * INFORMATION HIGHWAY AB ................... 206,070
100 * ISS INTERNATIONAL SERVICE SYSTEM AS
SERIES B ................................. 7,315
200 * LAGARDERE S.C.A. ......................... 19,983
16,700 LOGICA PLC ............................... 707,835
300 * ORACLE CORP (JAPAN) ...................... 265,223
2,200 * PIXELPARK AG. ............................ 364,945
19,600 REUTERS GROUP PLC ........................ 493,037
2,400 * SAGE GROUP PLC ........................... 34,268
200 SAP AG. .................................. 155,661
6,600 SECURICOR PLC ............................ 17,763
4,497,000 * SINO-I.COM LTD ........................... 623,907
300 * SOFTBANK CORP ............................ 279,895
100 TIETOENATOR CORP ......................... 7,377
1,800 * TISCALI S.P.A. ........................... 2,012,020
600 TRANS COSMOS ............................. 206,253
4,000 WHARF HOLDINGS LTD ....................... 6,602
1,400 * WPP GROUP PLC ............................ 27,260
-----------
9,812,948
-----------
CHEMICALS AND ALLIED PRODUCTS--3.28%
400 AKZO NOBEL NV ............................ 15,114
3,000 ASAHI CHEMICAL INDUSTRY CO LTD ........... 19,609
3,300 ASTRAZENECA PLC (UNITED KINGDOM) ......... 129,505
1,500 AVENTIS S.A. ............................. 70,814
1,000 BASF AG. ................................. 44,557
1,200 BAYER AG. ................................ 47,045
200 * FANCL CORP ............................... 43,263
9,900 GLAXO WELLCOME PLC ....................... 251,925
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
1,000 KAO CORP ................................. $ 26,663
100 L'AIR LIQUIDE ............................ 12,798
100 LOREAL S.A. .............................. 59,795
4,000 MITSUBISHI CHEMICAL CORP ................. 14,521
4,500 * MONTEDISON S.P.A. ........................ 7,942
160 NOVARTIS AG. (REGD) ...................... 196,650
200 NOVO NORDISK AS (CLASS B) ................ 26,593
26 ROCHE HOLDINGS AG. (GENUSSCHEINE) ........ 293,914
1,000 SANKYO CO LTD ............................ 22,478
1,400 * SANOFI-SYNTHELABO S.A. ................... 53,590
1,000 SHISEIDO & CO LTD ........................ 12,461
10,300 SMITHKLINE BEECHAM/BECKMAN LTD ........... 120,239
100 SOLVAY ET CIE S.A. ....................... 7,045
4,000 SUMITOMO CHEMICAL CO LTD ................. 17,305
2,000 TAKEDA CHEMICAL INDUSTRIES LTD ........... 116,623
3,000 TORAY INDUSTRIES, INC .................... 10,298
300 UCB S.A. ................................. 9,675
-----------
1,630,422
-----------
COMMUNICATIONS--26.25%
400 ALCATEL .................................. 99,144
3,100 BRITISH SKY BROADCASTING GROUP PLC ....... 103,623
12,300 BRITISH TELECOMMUNICATIONS PLC ........... 262,320
24,000 CABLE & WIRELESS HKT LTD ................. 73,685
48,000 CABLE & WIRELESS PLC ..................... 1,154,776
200 CANAL PLUS S.A. .......................... 69,497
4,400 * CHINA TELECOM LTD (HONG KONG)
(SPONS ADR) .............................. 850,025
11,000 * COLT TELECOM GROUP PLC ................... 656,381
5,200 DEUTSCHE TELEKOM AG. ..................... 490,226
6,000 EIRCOM PLC ............................... 27,732
16,000 ERICSSON TELEFON (LM) AB SERIES B ........ 1,581,670
2,000 FRANCE TELECOM S.A. ...................... 379,990
19 FUJI TELEVISION NETWORK, INC ............. 332,376
800 KONINKLIJKE KPN NV ....................... 114,151
4,900 MARCONI PLC .............................. 70,389
35,900 MEDIASET S.P.A. .......................... 899,864
34 NIPPON TELEGRAPH & TELEPHONE CORP ........ 457,275
12 NTT MOBILE COMMUNICATIONS ................ 437,901
7,800 * OLIVETTI GROUP S.P.A. .................... 34,604
1,500 PORTUGAL TELECOM S.A. .................... 22,133
900 * SERVICOS TELECOMUNICACOE
MULTIMEDIA S.A. .......................... 120,651
14,000 SINGAPORE TELECOMMUNICATIONS LTD ......... 22,185
1,100 SONERA GROUP OYJ ......................... 96,222
100 SWISSCOM AG. (REGD) ...................... 44,066
3,000 TELECOM CORP OF NEW ZEALAND .............. 13,139
6,600 TELECOM ITALIA ........................... 117,121
11,800 TELECOM ITALIA MOBILE S.P.A. ............. 150,107
600 TELE DANMARK AS .......................... 57,097
11,100 * TELEFONICA DE ESPANA S.A. ................ 324,478
16,000 TELSTRA CORP ............................. 78,589
880 * TERRA NETWORKS S.A. ...................... 99,426
1,000 TOKYO BROADCASTING SYSTEMS, INC .......... 40,065
3,500 * UNITED PAN-EUROPE COMMUNICATIONS NV ...... 783,127
456,000 VODAFONE AIRTOUCH PLC .................... 2,762,390
9,000 * YOKOWO CO LTD ............................ 244,626
-----------
13,071,051
-----------
DEPOSITORY INSTITUTIONS--5.70%
2,600 ABBEY NATIONAL PLC ....................... 26,144
2,400 ABN-AMRO HOLDINGS NV ..................... 49,163
2,300 ALLIED IRISH BANK PLC .................... 19,076
25,000 ASAHI BANK LTD ........................... 141,076
</TABLE>
B-48 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
DEPOSITORY INSTITUTIONS--(Continued)
8,600 * BANCA DI ROMA ............................ $ 10,409
7,500 BANCA INTESA S.P.A. ...................... 30,379
6,200 BANCO SANTANDER CENTRAL HISPANO S.A. ..... 66,911
300 BANK AUSTRIA AG. ......................... 13,887
23,000 BANK OF TOKYO MITSUBISHI LTD ............. 316,904
800 BANQUE NATIONALE DE PARIS ................ 65,659
2,700 BARCLAYS PLC ............................. 63,421
700 BAYERISCHE HYPO-UND VEREINSBANK AG. ...... 40,776
4,900 BCO BILBAO VIZCAYA ARGENTARIA ............ 71,028
1,600 CHRISTIANIA BANK OG KREDITKASSE .......... 8,138
600 CREDIT SUISSE GROUP (REGD) ............... 102,162
4,000 DAIWA BANK LTD ........................... 10,721
3,000 * DBS GROUP HOLDINGS LTD ................... 36,976
100 DEN DANSKE BANK AF 1871 .................. 10,746
1,000 * DEUTSCHE BANK AG. (REGD) ................. 72,092
2,300 * DNB HOLDING ASA .......................... 9,041
900 * DRESDNER BANK AG. (REGD) ................. 40,058
1,000 FORENINGSSPARBANKEN AB ................... 12,829
8,000 FUJI BANK LTD ............................ 70,726
2,000 HANG SENG BANK LTD ....................... 18,241
15,500 * HSBC HOLDINGS PLC (UNITED KINGDOM) ....... 173,480
6,000 INDUSTRIAL BANK OF JAPAN LTD ............. 51,521
600 KBC BANCASSURANCE HOLDINGS NV ............ 20,774
10,000 LLOYDS TSB GROUP PLC ..................... 87,059
3,000 MITSUBISHI TRUST & BANKING CORP .......... 26,973
3,000 NATIONAL AUSTRALIA BANK LTD .............. 37,538
3,000 * OVERSEAS CHINESE BANKING CORP LTD ........ 17,607
1,600 ROYAL BANK OF SCOTLAND PLC ............... 20,206
37,000 SAKURA BANK LTD .......................... 229,324
12,200 SAN PAOLO-IMI S.P.A. ..................... 176,846
13,000 SANWA BANK LTD ........................... 133,025
1,000 SHIZUOKA BANK LTD ........................ 8,445
1,000 SKANDINAVISKA ENSKILDA BANKEN SERIES A 10,251
200 SOCIETE GENERALE S.A. .................... 38,577
18,000 SUMITOMO BANK LTD ........................ 226,681
1,000 SVENSKA HANDELSBANKEN SERIES A ........... 11,340
5,000 TOKAI BANK LTD ........................... 29,626
400 UBS AG. (REGD) ........................... 96,046
200 * UNI BANKDANMARK AS (CLASS A) ............. 12,429
8,100 * UNICREDITO ITALIANO S.P.A. ............... 31,951
12,000 * UNITED OVERSEAS BANK LTD ................. 72,544
3,000 WESTPAC BANKING CORP ..................... 20,077
-----------
2,838,883
-----------
EATING AND DRINKING PLACES--0.39%
16,000 COMPASS GROUP PLC ........................ 194,736
-----------
ELECTRIC, GAS, AND SANITARY SERVICES--1.47%
6,400 * BG GROUP PLC ............................. 31,698
7,500 CENTRICA PLC .............................. 29,746
4,000 CLP HOLDINGS LTD .......................... 17,316
1,000 * CONTACT ENERGY LTD ....................... 1,385
100 ELECTRABEL NV ............................. 24,400
900 ELECTRICIDADE DE PORTUGAL S.A. ............ 17,056
1,800 ENDESA S.A. ............................... 36,855
11,800 * ENEL S.P.A. .............................. 48,935
700 GAS NATURAL SDG S.A. ...................... 14,946
8,000 HONG KONG & CHINA GAS CO LTD .............. 9,660
1,500 IBERDROLA S.A. ............................ 18,936
1,100 ITALGAS S.P.A. ............................ 5,834
2,000 KANSAI ELECTRIC POWER CO, INC ............. 29,720
2,600 NATIONAL GRID GROUP PLC ................... 23,559
5,000 OSAKA GAS CO LTD .......................... 10,439
900 RHEIN-WESTFALEN ELECTRIC AG. .............. 27,341
3,300 SCOTTISH POWER PLC ........................ 23,937
300 SUEZ LYONNAISE DES EAUX S.A. .............. 54,973
1,000 TOHOKU ELECTRIC POWER CO, INC ............. 12,405
3,000 TOKYO ELECTRIC POWER CO, INC .............. 68,986
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
6,000 TOKYO GAS CO LTD ......................... $ 11,568
500 * UNION ELECTRICA FENOSA S.A. .............. 10,150
800 VEBA AG. ................................. 33,423
1,100 VIAG AG. ................................. 18,501
1,100 VIVENDI S.A. ............................. 150,221
-----------
731,990
-----------
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT--12.99%
600 * ABB LTD (SWITZERLAND) .................... 64,750
200 ADVANTEST CORP ........................... 34,892
200 * ASM LITHOGRAPHY HOLDINGS NV .............. 29,994
4,500 * CHARTERED SEMICONDUCTOR
MANUFACTURING ............................ 428,625
5,600 * EPCOS AG. ................................ 764,224
27,000 ERG LTD .................................. 208,875
8,000 FUJITSU LTD .............................. 255,066
1,000 FURUKAWA ELECTRIC CO LTD ................. 16,082
8,000 HITACHI LTD .............................. 102,628
29,000 JOHNSON ELECTRIC HOLDINGS LTD ............ 191,857
500 KONINKLIJKE PHILIPS ELECTRONICS NV ....... 97,890
4,000 MATSUSHITA ELECTRIC INDUSTRIAL CO LTD .... 115,118
5,000 MITSUBISHI ELECTRIC CORP ................. 45,144
2,000 MURATA MANUFACTURING CO LTD .............. 393,133
3,000 NIPPON ELECTRIC CORP ..................... 78,015
7,100 * NOKIA OYJ ................................ 1,553,707
1,500 ROHM CO .................................. 486,713
4,000 SANYO ELECTRIC CO LTD .................... 23,700
2,000 SHARP CORP ............................... 42,417
1,300 SONY CORP ................................ 321,560
5,300 ST MICROELECTRONICS NV ................... 1,138,341
1,000 SUMITOMO ELECTRIC INDUSTRIES CO .......... 13,477
7,000 TOSHIBA CORP ............................. 58,988
-----------
6,465,196
-----------
ENGINEERING AND MANAGEMENT SERVICES--0.01%
6,000 SINGAPORE TECHNOLOGIES
ENGINEERING LTD .......................... 6,867
-----------
FOOD AND KINDRED PRODUCTS--0.54%
1,000 AJINOMOTO CO LTD ......................... 11,634
1,000 ASAHI BREWERIES LTD ...................... 9,668
3,800 CADBURY SCHWEPPES LTD .................... 21,760
100 DANONE GROUP ............................. 17,466
6,300 DIAGEO PLC (CLASS A) ..................... 38,189
3,000 FOSTERS BREWING GROUP LTD ................ 7,809
500 HEINEKEN NV .............................. 23,127
2,000 KIRIN BREWERY CO LTD ..................... 23,983
1,000 LION NATHAN LTD .......................... 1,638
100 LVMH MOET HENNESSY LOUIS VUITTON ......... 40,217
600 ORKLA ASA ................................ 9,077
5,300 UNILEVER LTD ............................. 28,739
900 UNILEVER NV CERTIFICATE .................. 36,811
-----------
270,118
-----------
FOOD STORES--0.32%
600 CARREFOUR SUPERMARCHE S.A. ............... 84,080
100 CASINO GUICHARD-PERRACHON S.A. ........... 9,046
100 DELHAIZE FRERES NV ....................... 4,870
1,000 KONINKLIJKE AHOLD NV ..................... 21,815
12,700 TESCO PLC ................................ 35,585
2,000 WOOLWORTHS LTD ........................... 6,016
-----------
161,412
-----------
GENERAL MERCHANDISE STORES--0.17%
2,000 COLES MYER LTD ........................... 7,623
2,500 KINGFISHER PLC ........................... 20,659
5,200 MARKS & SPENCER PLC ...................... 19,085
200 PINAULT-PRINTEMPS-REDOUTE S.A. ........... 39,484
-----------
86,851
-----------
</TABLE>
B-49 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
HEAVY CONSTRUCTION, EXCEPT BUILDING--0.06%
400 GROUPE GTM ............................... $ 32,019
-----------
HOLDING AND OTHER INVESTMENT OFFICES--0.98%
2,900 ALLIED ZURICH PLC ........................ 23,805
22,000 HUTCHINSON WHAMPOA LTD ................... 414,031
1,000 * LEND LEASE CORP LTD ...................... 12,770
200 PROMISE CO LTD ........................... 13,486
2,000 SUMITOMO CORP ............................ 25,525
-----------
489,617
-----------
HOTELS AND OTHER LODGING PLACES--0.02%
300 ACCOR S.A. ............................... 10,358
-----------
INDUSTRIAL MACHINERY AND EQUIPMENT--0.59%
10,000 * JOT AUTOMATION GROUP OYJ ................. 106,667
2,000 KOMATSU LTD .............................. 8,784
3,000 KUBOTA CORP .............................. 9,226
1,000 MINEBEA CO LTD ........................... 12,113
8,000 MITSUBISHI HEAVY INDUSTRIES LTD .......... 22,497
1,000 NSK LTD .................................. 6,771
2,700 THK CO LTD ............................... 127,222
-----------
293,280
-----------
INSTRUMENTS AND RELATED PRODUCTS--1.14%
2,000 CANON, INC ............................... 80,507
1,000 FUJI PHOTO FILM CO LTD ................... 40,912
58,700 INVENSYS PLC ............................. 221,929
300 KEYENCE CORP ............................. 102,703
2,000 RICOH CO LTD ............................. 41,100
1,300 ST ASSEMBLY TEST SERVICES LTD (ADR) ...... 78,081
-----------
565,232
-----------
INSURANCE AGENTS, BROKERS AND SERVICE--0.08%
1,600 FORTIS B ................................. 39,796
-----------
INSURANCE CARRIERS--1.48%
1,100 AEGON NV ................................. 72,723
400 ALLIANZ AG. (REGD) ....................... 158,631
2,000 AMP LTD .................................. 19,622
2,100 ASSICURAZIONI GENERALI S.P.A. ............ 59,747
700 AXA ...................................... 85,874
2,400 CGU PLC .................................. 27,922
1,000 COLONIAL LTD ............................. 4,764
9,400 LEGAL & GENERAL GROUP PLC ................ 22,109
300 MUENCHENER RUECKVER AG. (REGD) ........... 92,586
3,600 PRUDENTIAL PLC ........................... 53,874
900 RAS S.P.A. ............................... 8,133
1,000 SKANDIA FORSAKRINGS AB ................... 56,357
3,000 TOKIO MARINE & FIRE INSURANCE CO LTD ..... 31,798
100 ZURICH ALLIED AG. ........................ 40,769
-----------
734,909
-----------
LOCAL AND INTERURBAN PASSENGER TRANSIT--0.28%
5 CENTRAL JAPAN RAILWAY CO ................. 32,870
23 EAST JAPAN RAILWAY CO .................... 108,158
-----------
141,028
-----------
LUMBER AND WOOD PRODUCTS--0.02%
3,000 CARTER HOLT HARVEY LTD ................... 2,820
1,000 SEKISUI HOUSE LTD ........................ 7,787
-----------
10,607
-----------
METAL MINING--0.08%
10 * ALUSUISSE LONZA HOLDINGS AG. (REGD) ...... 6,031
1,900 RIO TINTO LTD PLC (REGD) ................. 27,743
2,000 WMC LTD .................................. 7,515
-----------
41,289
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES--0.61%
1,700 NINTENDO CO LTD .......................... 305,383
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
MISCELLANEOUS RETAIL--0.20%
3,000 * QXL.COM PLC LTD .......................... $ 98,149
-----------
MOTION PICTURES--1.04%
4,300 EM.TV & MERCHANDISING AG. ................ 441,666
9,000 TOEI CO .................................. 76,773
-----------
518,439
-----------
NONDEPOSITORY INSTITUTIONS--0.80%
4,100 HALIFAX PLC .............................. 39,221
8,500 * ICICI LTD (SPONS ADR) .................... 244,375
1,600 ING GROEP NV ............................. 77,494
900 MEDIOBANCA S.P.A. ........................ 7,985
300 TAKEFUJI CORP ............................ 30,923
-----------
399,998
-----------
OIL AND GAS EXTRACTION--0.56%
1,800 IHC CALAND NV ............................ 79,769
1,400 TOTAL FINA S.A. (CLASS B) ................ 199,022
-----------
278,791
-----------
PAPER AND ALLIED PRODUCTS--0.08%
2,900 * JEFFERSON SMURFIT GROUP PLC .............. 6,153
2,000 NIPPON PAPER INDUSTRIES CO ............... 11,474
2,000 OJI PAPER CO LTD ......................... 11,850
400 UPM-KYMMENE OY ........................... 9,737
-----------
39,214
-----------
PETROLEUM AND COAL PRODUCTS--1.74%
56,000 BP AMOCO PLC ............................. 487,976
3,000 BROKEN HILL PROPRIETARY CO LTD ........... 31,732
13,000 ENTE NAZIONALE IDROCARBURI S.P.A. ........ 62,939
3,000 NIPPON MITSUBISHI OIL CO ................. 11,681
800 NORSK HYDRO AS ........................... 30,210
2,000 REPSOL S.A. .............................. 38,770
3,600 ROYAL DUTCH PETROLEUM CO ................. 202,139
-----------
865,447
-----------
PRIMARY METAL INDUSTRIES--0.13%
7,000 * KAWASAKI STEEL CORP ...................... 10,270
16,000 NIPPON STEEL CORP ........................ 33,406
800 * THYSSEN KRUPP AG. ........................ 18,038
-----------
61,714
-----------
PRINTING AND PUBLISHING--2.70%
1,000 DAI NIPPON PRINTING CO LTD ............... 15,828
14,000 ELSEVIER UTIGEVERSMIJ NV ................. 139,612
700 INDEPENDENT NEWS & MEDIA PLC ............. 7,392
200 MONDADORI (ARNOLDO) EDITORE S.P.A. ....... 6,866
8,000 NEWS CORP LTD ............................ 125,251
24,100 PEARSON PLC .............................. 928,659
200 SCHIBSTED ASA ............................ 6,671
1,600 * SHOBUNSHA PUBLICATIONS, INC .............. 101,575
1,000 TOPPAN PRINTING CO LTD ................... 11,427
-----------
1,343,281
-----------
RAILROAD TRANSPORTATION--0.05%
3,000 KINKI NIPPON RAILWAY CO LTD .............. 12,132
2,000 NIPPON EXPRESS CO LTD .................... 13,204
-----------
25,336
-----------
REAL ESTATE--0.27%
4,000 CHEUNG KONG HOLDINGS LTD ................. 56,523
3,000 MITSUBISHI ESTATE CO LTD ................. 28,074
1,000 MITSUI FUDOSAN CO LTD .................... 9,122
4,000 SUN HUNG KAI PROPERTIES LTD .............. 40,465
-----------
134,184
-----------
RUBBER AND MISCELLANEOUS PLASTIC PRODUCTS--0.67%
2,000 BRIDGESTONE CORP ......................... 41,100
125,000 * OMNI INDUSTRIES LTD ...................... 283,192
3,100 PIRELLI S.P.A. ........................... 8,191
-----------
332,483
-----------
</TABLE>
B-50 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
SECURITY AND COMMODITY BROKERS--0.53%
1,100 3I GROUP PLC ............................. $ 24,015
3,000 DAIWA SECURITIES GROUP, INC .............. 47,937
3,000 * ITOCHU CORP .............................. 15,349
3,000 * MARUBENI CORP ............................ 10,721
3,000 MITSUBISHI CORP .......................... 24,519
3,000 MITSUI & CO LTD .......................... 22,177
4,000 NOMURA SECURITIES CO LTD ................. 117,375
-----------
262,093
-----------
SPECIAL TRADE CONTRACTORS--0.04%
300 SCHNEIDER ELECTRIC S.A. .................. 17,750
-----------
STONE, CLAY, AND GLASS PRODUCTS--0.65%
2,000 ASAHI GLASS CO LTD ....................... 14,540
8,800 CRH PLC .................................. 151,927
21,000 HANSON PLC ............................... 115,695
200 LAFARGE S.A. (BR) ........................ 14,659
1,000 * NIPPON SHEET GLASS CO LTD ................ 10,693
100 ST. GOBAIN S.A. .......................... 11,853
200 * WIENERBERGER BAUSTOFF AG. ................ 3,722
-----------
323,089
-----------
TOBACCO PRODUCTS--0.07%
500 ALTADIS S.A. ............................. 5,449
4 JAPAN TOBACCO, INC ....................... 27,425
-----------
32,874
-----------
TRANSPORTATION BY AIR--0.11%
100 * AUSTRIAN AIRLINES/OEST LUFTV AG. ........ 1,437
6,000 CATHAY PACIFIC AIRWAYS LTD ............... 8,786
4,000 JAPAN AIRLINES CO LTD .................... 9,254
3,000 SINGAPORE AIRLINES LTD (LR) .............. 27,996
2,000 SWIRE PACIFIC LTD (CLASS A) .............. 8,863
-----------
56,336
-----------
TRANSPORTATION EQUIPMENT--1.91%
5,400 BRITISH AEROSPACE PLC .................... 23,953
1,700 DAIMLERCHRYSLER AG. ...................... 103,291
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
2,000 DENSO CORP ............................... $ 41,946
700 FIAT S.P.A. .............................. 23,898
2,000 HONDA MOTOR CO LTD ....................... 72,419
9,000 * NISSAN MOTOR CO LTD ...................... 36,651
1,000 * SIEMENS AG. (REGD) ....................... 179,868
300 * THOMSON-CSF .............................. 13,705
9,000 TOYOTA MOTOR CORP ........................ 407,993
600 VOLKSWAGEN AG. ........................... 23,731
1,000 VOLVO AB SERIES B FREE ................... 24,971
-----------
952,426
-----------
TRANSPORTATION SERVICES--0.30%
11,000 * AMADEUS GLOBAL TRAVEL DISTRIBUTION S.A. 149,372
-----------
TRUCKING AND WAREHOUSING--0.09%
800 TNT POST GROUP NV ........................ 20,098
1,000 YAMATO TRANSPORT CO LTD .................. 24,782
-----------
44,880
-----------
WATER TRANSPORTATION--0.02%
3,000 NIPPON YUSEN KABUSHIKI KAISHA ............ 11,116
-----------
WHOLESALE TRADE-DURABLE GOODS--2.37%
15,300 * ARM HOLDINGS PLC ......................... 1,176,865
-----------
TOTAL COMMON STOCK
(Cost $45,578,606) ...................... 45,153,011
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
- ---------
<S> <C> <C>
SHORT TERM INVESTMENT--41.00%
U.S. GOVERNMENT AGENCY--41.00%
FEDERAL HOME LOAN BANK (FHLB)
$20,423,000 5.540%, 03/13/00 ......................... 20,416,714
-----------
TOTAL SHORT TERM INVESTMENT
(Cost $20,416,714) ..................................... 20,416,714
-----------
TOTAL PORTFOLIO
(Cost $67,983,565) ..................................... $67,620,371
===========
</TABLE>
- ------------
* Non-income producing
The cost of investments for federal income tax purposes is substantially the
same as the amount disclosed above.
B-51 See notes to financial statements.
<PAGE>
TIAA-CREF LIFE FUNDS
STATEMENT OF INVESTMENTS--SOCIAL CHOICE EQUITY FUND
MARCH 10, 2000
SUMMARY BY INDUSTRY
<TABLE>
<CAPTION>
VALUE %
----------- ------
<S> <C> <C>
COMMON STOCK
APPAREL AND ACCESSORY STORES ............... $ 87,222 0.35%
APPAREL AND OTHER TEXTILE PRODUCTS ......... 15,667 0.06
AUTO REPAIR, SERVICES AND PARKING .......... 1,279 0.01
BUILDING MATERIALS AND GARDEN SUPPLIES ..... 342,104 1.38
BUSINESS SERVICES .......................... 2,846,285 11.49
CHEMICALS AND ALLIED PRODUCTS .............. 2,550,076 10.29
COMMUNICATIONS ............................. 3,194,763 12.89
DEPOSITORY INSTITUTIONS .................... 1,391,665 5.62
EATING AND DRINKING PLACES ................. 156,814 0.63
ELECTRIC, GAS, AND SANITARY SERVICES ....... 753,582 3.04
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT 2,403,326 9.70
ENGINEERING AND MANAGEMENT SERVICES ........ 19,389 0.08
FABRICATED METAL PRODUCTS .................. 156,842 0.63
FOOD AND KINDRED PRODUCTS .................. 872,367 3.52
FOOD STORES ................................ 95,924 0.39
FURNITURE AND FIXTURES ..................... 33,690 0.14
FURNITURE AND HOMEFURNISHINGS STORES ....... 18,621 0.07
GENERAL BUILDING CONTRACTORS ............... 7,498 0.03
GENERAL MERCHANDISE STORES ................. 648,099 2.61
HEALTH SERVICES ............................ 74,920 0.30
HOLDING AND OTHER INVESTMENT OFFICES ....... 52,704 0.21
INDUSTRIAL MACHINERY AND EQUIPMENT ......... 3,139,929 12.67
INSTRUMENTS AND RELATED PRODUCTS ........... 452,882 1.83
INSURANCE AGENTS, BROKERS AND SERVICE ...... 100,584 0.41
INSURANCE CARRIERS ......................... 1,028,489 4.15
MISCELLANEOUS MANUFACTURING
INDUSTRIES ................................ 229,837 0.93
MISCELLANEOUS RETAIL ....................... 102,974 0.42
MOTION PICTURES ............................ 503,376 2.03
NONDEPOSITORY INSTITUTIONS ................. 664,974 2.68
</TABLE>
<TABLE>
<CAPTION>
VALUE %
----------- ------
<S> <C> <C>
OIL AND GAS EXTRACTION ..................... $ 688,421 2.78%
PAPER AND ALLIED PRODUCTS .................. 149,791 0.60
PETROLEUM AND COAL PRODUCTS ................ 91,164 0.37
PRIMARY METAL INDUSTRIES ................... 91,910 0.37
PRINTING AND PUBLISHING .................... 260,694 1.05
RAILROAD TRANSPORTATION .................... 52,552 0.21
RUBBER AND MISCELLANEOUS PLASTIC
PRODUCTS .................................. 116,057 0.47
SECURITY AND COMMODITY BROKERS ............. 533,302 2.15
STONE, CLAY, AND GLASS PRODUCTS ............ 154,923 0.62
TRANSPORTATION BY AIR ...................... 118,315 0.48
TRANSPORTATION EQUIPMENT ................... 13,703 0.06
TRUCKING AND WAREHOUSING ................... 3,487 0.01
WHOLESALE TRADE-DURABLE GOODS .............. 84,257 0.34
WHOLESALE TRADE-NONDURABLE GOODS ........... 282,725 1.14
----------- ------
TOTAL COMMON STOCK
(Cost $24,936,608) ......................... 24,587,183 99.21
----------- ------
SHORT TERM INVESTMENT
U.S. GOVERNMENT AGENCY ..................... 189,941 0.77
----------- ------
TOTAL SHORT TERM INVESTMENT
(Cost $189,941) ............................ 189,941 0.77
----------- ------
TOTAL PORTFOLIO
(Cost $25,126,549) ......................... 24,777,124 99.98
OTHER ASSETS & LIABILITIES, NET ............. 4,159 0.02
----------- ------
NET ASSETS .................................. $24,781,283 100.00%
=========== ======
</TABLE>
B-52 See notes to financial statements.
<PAGE>
TIAA-CREF LIFE FUNDS
STATEMENT OF INVESTMENTS--SOCIAL CHOICE EQUITY FUND
MARCH 10, 2000
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
COMMON STOCK--99.21%
APPAREL AND ACCESSORY STORES--0.35%
1,891 GAP, INC ................................. $ 87,222
-----------
APPAREL AND OTHER TEXTILE PRODUCTS--0.06%
162 LIZ CLAIBORNE, INC ....................... 7,411
358 VF CORP .................................. 8,256
-----------
15,667
-----------
AUTO REPAIR, SERVICES AND PARKING--0.01%
68 RYDER SYSTEM, INC ....................... 1,279
-----------
BUILDING MATERIALS AND GARDEN SUPPLIES--1.38%
5,684 HOME DEPOT, INC ......................... 305,159
821 LOWES COS, INC ........................... 36,945
-----------
342,104
-----------
BUSINESS SERVICES--11.49%
5,119 * AMERICA ONLINE, INC ...................... 302,980
2,883 AUTOMATIC DATA PROCESSING, INC ........... 127,212
1,299 COMPUTER ASSOCIATES INTERNATIONAL, INC 86,383
1,368 ELECTRONIC DATA SYSTEMS CORP ............. 84,132
959 FIRST DATA CORP .......................... 40,158
103 * IMATION CORP ............................. 2,871
1,175 IMS HEALTH, INC .......................... 24,895
11,300 * MICROSOFT CORP ........................... 1,141,300
500 * NOVELL, INC .............................. 15,687
505 OMNICOM GROUP, INC ....................... 42,262
6,100 * ORACLE CORP .............................. 497,912
3,400 * SUN MICROSYSTEMS, INC .................... 320,237
900 * YAHOO, INC ............................... 160,256
-----------
2,846,285
-----------
CHEMICALS AND ALLIED PRODUCTS--10.29%
1,913 AIR PRODUCTS & CHEMICALS, INC ............ 47,705
495 ALLERGAN, INC ............................ 23,574
470 * ALZA CORP ................................ 17,272
2,500 * AMGEN, INC ............................... 148,906
1,025 AVON PRODUCTS, INC ....................... 26,906
5,555 BRISTOL MYERS SQUIBB CO .................. 290,943
825 CABOT CORP ............................... 22,326
1,123 CLOROX CO ................................ 33,549
2,203 COLGATE PALMOLIVE CO ..................... 94,178
144 * FOREST LABORATORIES, INC ................. 10,188
234 FULLER (H.B.) CO ......................... 12,051
120 * GENZYME CORP (GENERAL DIVISION) .......... 6,915
63 * GENZYME SURGICAL PRODUCTS ................ 803
154 * GENZYME-MOLECULAR ONCOLOGY ............... 4,774
1,055 HANNA (M.A.) CO .......................... 10,945
723 INTERNATIONAL FLAVORS &
FRAGRANCES, INC .......................... 22,593
192 * IVAX CORP ................................ 5,400
4,246 JOHNSON & JOHNSON CO ..................... 300,669
2,500 LILLY (ELI) & CO ......................... 152,968
414 MALLINCKRODT, INC ........................ 9,858
6,287 MERCK & CO, INC .......................... 374,469
205 MYLAN LABORATORIES, INC .................. 5,714
214 NCH CORP ................................. 9,242
8,952 PFIZER, INC .............................. 314,439
1,040 PHARMACIA & UPJOHN, INC .................. 54,080
2,104 PPG INDUSTRIES, INC ...................... 98,230
1,375 PRAXAIR, INC ............................. 46,062
4,285 PROCTER & GAMBLE CO ...................... 227,372
4,062 SCHERING-PLOUGH CORP ..................... 152,071
800 SCHULMAN (A.), INC ....................... 10,387
700 SIGMA ALDRICH CORP ....................... 15,487
-----------
2,550,076
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
COMMUNICATIONS--12.89%
651 ALLTEL CORP .............................. $ 44,308
8,022 AT & T CORP .............................. 435,694
465 * AT & T CORP--LIBERTY MEDIA GROUP
(CLASS A) ................................ 24,470
4,276 BELL ATLANTIC CORP ....................... 245,068
5,532 BELLSOUTH CORP ........................... 258,275
1,627 * CBS CORP ................................. 93,349
676 * CLEAR CHANNEL COMMUNICATIONS, INC ........ 41,869
1,900 COMCAST CORP (CLASS A) SPECIAL ........... 76,831
651 * COX COMMUNICATIONS, INC (CLASS A) ........ 29,335
1,300 * GLOBAL CROSSING LTD ...................... 75,400
7,440 LUCENT TECHNOLOGIES, INC ................. 503,130
6,000 * MCI WORLDCOM, INC ........................ 280,125
1,747 * MEDIA ONE GROUP, INC ..................... 136,484
700 * NEXTEL COMMUNICATIONS, INC (CLASS A) ..... 111,737
9,148 SBC COMMUNICATIONS, INC .................. 384,216
2,115 SPRINT CORP (FON GROUP) .................. 129,808
1,779 * SPRINT CORP (PCS GROUP) .................. 106,184
1,648 U.S. WEST, INC ........................... 115,978
1,896 * VIACOM, INC (CLASS B) .................... 102,502
-----------
3,194,763
-----------
DEPOSITORY INSTITUTIONS--5.62%
5,181 BANK OF AMERICA CORP ..................... 222,135
2,460 BANK OF NEW YORK CO, INC ................. 78,105
3,484 BANK ONE CORP ............................ 85,358
2,517 CHASE MANHATTAN CORP ..................... 198,056
500 FIFTH THIRD BANCORP ...................... 22,937
3,310 FIRST UNION CORP ......................... 105,506
1,700 FIRSTAR CORP ............................. 29,856
2,385 FLEETBOSTON FINANCIAL CORP ............... 61,264
836 KEYCORP .................................. 13,428
2,881 MBNA CORP ................................ 63,562
1,077 MELLON FINANCIAL CORP .................... 29,684
699 MORGAN (J.P.) & CO, INC .................. 74,137
1,760 NATIONAL CITY CORP ....................... 30,470
1,049 PNC BANK CORP ............................ 39,271
474 PROVIDIAN FINANCIAL CORP ................. 30,750
1,058 SUNTRUST BANKS, INC ...................... 50,122
2,040 U.S. BANCORP ............................. 36,720
645 WACHOVIA CORP ............................ 35,071
1,260 WASHINGTON MUTUAL, INC ................... 27,483
4,901 WELLS FARGO CO ........................... 157,750
-----------
1,391,665
-----------
EATING AND DRINKING PLACES--0.63%
662 DARDEN RESTAURANTS, INC .................. 8,564
4,651 MCDONALD'S CORP .......................... 148,250
-----------
156,814
-----------
ELECTRIC, GAS, AND SANITARY SERVICES--3.04%
696 AGL RESOURCES, INC ....................... 12,049
1,378 COLUMBIA ENERGY GROUP .................... 78,201
1,942 EL PASO ENERGY CORP ...................... 76,830
1,044 EQUITABLE RESOURCES, INC ................. 42,151
857 IDACORP, INC ............................. 27,691
2,545 KEYSPAN CORP ............................. 54,558
1,824 LOUISVILLE GAS & ELECTRIC ENERGY CORP .... 40,128
866 MCN ENERGY GROUP, INC .................... 21,595
1,066 NICOR, INC ............................... 32,113
2,567 NISOURCE, INC ............................ 37,702
2,087 OGE ENERGY CORP .......................... 35,479
879 PEOPLES ENERGY CORP ...................... 24,172
</TABLE>
B-53 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
ELECTRIC, GAS, AND SANITARY SERVICES--(Continued)
2,773 POTOMAC ELECTRIC POWER CO ................ $ 54,766
1,759 PUGET SOUND ENERGY, INC .................. 35,070
200 SOUTHERN UNION CO ........................ 2,662
2,568 TECO ENERGY, INC ......................... 45,742
2,725 WILLIAMS COS, INC ........................ 132,673
-----------
753,582
-----------
ELECTRONIC AND OTHER ELECTRIC EQUIPMENT--9.70%
653 * ADVANCED MICRO DEVICES, INC .............. 34,445
461 BALDOR ELECTRIC CO ....................... 7,721
2,878 EMERSON ELECTRIC CO ...................... 118,357
200 * GLENAYRE TECHNOLOGIES, INC ............... 5,500
7,900 INTEL CORP ............................... 949,481
766 * MICRON TECHNOLOGY, INC ................... 81,674
625 MOLEX, INC ............................... 39,169
654 * NATIONAL SEMICONDUCTOR CORP .............. 45,780
3,050 NORTEL NETWORKS CORP (U.S.) .............. 376,484
1,500 * QUALCOMM, INC ............................ 204,187
370 * SENSORMATIC ELECTRONICS CORP ............. 7,099
1,588 * SOLECTRON CORP ........................... 56,771
900 * TELLABS, INC ............................. 51,300
2,037 TEXAS INSTRUMENTS, INC ................... 370,734
438 THOMAS & BETTS CORP ...................... 9,417
393 * VISHAY INTERTECHNOLOGY, INC .............. 22,179
460 WHIRLPOOL CORP ........................... 23,028
----------
2,403,326
-----------
ENGINEERING AND MANAGEMENT SERVICES--0.08%
717 DUN & BRADSTREET CORP .................... 18,686
50 GARTNER GROUP, INC (CLASS A) ............. 703
-----------
19,389
-----------
FABRICATED METAL PRODUCTS--0.63%
2,764 CROWN CORK & SEAL CO, INC ................ 37,659
2,914 GILLETTE CO .............................. 87,237
281 MARK IV INDUSTRIES, INC .................. 5,707
1,428 MASCO CORP ............................... 26,239
-----------
156,842
-----------
FOOD AND KINDRED PRODUCTS--3.52%
1,267 BESTFOODS, INC ........................... 48,858
1,703 CAMPBELL SOUP CO ......................... 49,280
6,539 COCA COLA CO ............................. 292,211
1,062 COCA COLA ENTERPRISES, INC ............... 22,302
1,634 GENERAL MILLS, INC ....................... 51,266
1,908 HEINZ (H.J.) CO .......................... 64,275
682 HERSHEY FOODS CORP ....................... 27,280
1,564 KELLOGG CO ............................... 35,874
112 MCCORMICK & CO, INC (NON-VOTE) ........... 2,961
641 NABISCO GROUP HOLDINGS ................... 5,608
50 PEPSI BOTTLING GROUP, INC ................ 990
4,410 PEPSICO, INC ............................. 135,331
815 QUAKER OATS CO ........................... 38,050
1,484 UNILEVER NV (NEW YORK SHS) ............... 61,215
313 WHITMAN CORP ............................. 3,521
540 WRIGLEY (WM) JR CO ....................... 33,345
-----------
872,367
-----------
FOOD STORES--0.39%
1,394 ALBERTSONS, INC .......................... 33,456
1,839 * KROGER CO ................................ 27,125
1,008 * SAFEWAY, INC ............................. 35,343
-----------
95,924
-----------
FURNITURE AND FIXTURES--0.14%
1,567 NEWELL RUBBERMAID, INC ................... 33,690
-----------
FURNITURE AND HOMEFURNISHINGS STORES--0.07%
467 TANDY CORP ............................... 18,621
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
GENERAL BUILDING CONTRACTORS--0.03%
251 HILLENBRAND INDUSTRIES, INC .............. $ 7,498
-----------
GENERAL MERCHANDISE STORES--2.61%
500 * COSTCO WHOLESALE CORP .................... 22,062
204 * FEDERATED DEPARTMENT STORES, INC ......... 7,203
1,064 * K MART CORP .............................. 9,310
619 MAY DEPARTMENT STORES CO ................. 15,475
575 PENNEY, (J.C.) CO, INC ................... 8,014
1,059 SEARS ROEBUCK & CO ....................... 29,387
927 * TARGET CORP .............................. 56,373
10,436 WAL-MART STORES, INC ..................... 500,275
-----------
648,099
-----------
HEALTH SERVICES--0.30%
2,250 COLUMBIA/HCA HEALTHCARE CORP ............ 47,109
62 * LIFEPOINT HOSPITALS, INC ................ 957
1,214 * TENET HEALTHCARE CORP ................... 25,114
118 * TRIAD HOSPITALS, INC .................... 1,740
-----------
74,920
-----------
HOLDING AND OTHER INVESTMENT OFFICES--0.21%
80 CARRAMERICA REALTY CORP .................. 1,650
517 CRESCENT REAL ESTATE EQUITIES CO ......... 8,562
284 DUKE-WEEKS REALTY CORP ................... 5,112
50 FIRST INDUSTRIAL REALTY TRUST, INC ....... 1,300
77 LIBERTY PROPERTY TRUST CO ................ 1,732
97 ROUSE CO ................................. 2,037
392 SIMON PROPERTY GROUP, INC ................ 9,016
88 SPIEKER PROPERTIES, INC .................. 3,597
551 WEINGARTEN REALTY INVESTORS, INC ......... 19,698
-----------
52,704
-----------
INDUSTRIAL MACHINERY AND EQUIPMENT--12.67%
700 * 3COM CORP ................................ 48,256
300 * APPLE COMPUTER, INC ...................... 37,725
800 * APPLIED MATERIALS, INC ................... 154,450
7,500 * CISCO SYSTEMS, INC ....................... 1,022,812
4,566 COMPAQ COMPUTER CORP ..................... 130,131
334 CUMMINS ENGINE CO, INC ................... 10,688
1,367 DEERE & CO ............................... 48,528
5,800 * DELL COMPUTER CORP ....................... 297,250
152 DIEBOLD, INC ............................. 3,695
2,521 * EMC CORP ................................. 328,832
755 * GATEWAY, INC ............................. 47,187
329 GRACO, INC ............................... 9,746
2,583 HEWLETT-PACKARD CO ....................... 379,055
844 INGERSOLL-RAND CO ........................ 30,384
4,521 * INTERNATIONAL BUSINESS MACHINES CORP ..... 474,987
238 NORDSON CORP ............................. 10,587
1,247 PITNEY BOWES, INC ........................ 57,517
472 * SMITH INTERNATIONAL, INC ................ 30,444
1,177 TIMKEN CO ................................ 17,655
-----------
3,139,929
-----------
INSTRUMENTS AND RELATED PRODUCTS--1.83%
283 BAUSCH & LOMB, INC ....................... 14,804
827 BAXTER INTERNATIONAL, INC ................ 46,363
1,239 BECTON DICKINSON & CO .................... 39,648
300 BIOMET, INC .............................. 9,337
1,149 * BOSTON SCIENTIFIC CORP ................... 24,344
1,060 * GUIDANT CORP ............................. 75,193
3,540 MEDTRONIC, INC ........................... 180,982
183 * ST. JUDE MEDICAL, INC .................... 4,666
2,373 XEROX CORP ............................... 57,545
-----------
452,882
-----------
INSURANCE AGENTS, BROKERS AND SERVICE--0.41%
1,349 MARSH & MCLENNAN COS, INC ................ 100,584
-----------
</TABLE>
B-54 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
INSURANCE CARRIERS--4.15%
2,551 ALLSTATE CORP ........................... $ 45,758
1,430 AMERICAN GENERAL CORP ................... 67,567
4,459 AMERICAN INTERNATIONAL GROUP, INC ....... 370,375
659 CHUBB CORP .............................. 29,860
691 CIGNA CORP .............................. 44,051
8,932 CITIGROUP, INC .......................... 437,109
120 CNA FINANCIAL CORP ...................... 3,127
689 CONSECO, INC ............................ 8,569
210 JEFFERSON-PILOT CORP .................... 10,710
176 SAFECO CORP ............................. 3,267
352 ST. PAUL COS, INC ....................... 8,096
-----------
1,028,489
-----------
MISCELLANEOUS MANUFACTURING INDUSTRIES--0.93%
887 HASBRO, INC ............................. 12,695
1,642 MATTEL, INC ............................. 14,778
2,483 MINNESOTA MINING & MANUFACTURING CO...... 202,364
-----------
229,837
-----------
MISCELLANEOUS RETAIL--0.42%
957 CVS CORP ................................ 29,128
422 * TOYS R US, INC .......................... 4,879
2,815 WALGREEN CO ............................. 68,967
-----------
102,974
-----------
MOTION PICTURES--2.03%
5,929 DISNEY (WALT) CO ........................ 208,256
3,472 TIME WARNER, INC ........................ 295,120
-----------
503,376
-----------
NONDEPOSITORY INSTITUTIONS--2.68%
1,851 AMERICAN EXPRESS CO ..................... 234,498
2,434 ASSOCIATES FIRST CAPITAL CORP ........... 39,248
3,926 FEDERAL NATIONAL MORTGAGE
ASSOCIATION ............................. 196,545
2,575 FREDDIE MAC ............................. 97,045
2,188 HOUSEHOLD INTERNATIONAL, INC ............ 71,657
150 LEUCADIA NATIONAL CORP .................. 3,178
773 SLM HOLDINGS CORP ....................... 22,803
-----------
664,974
-----------
OIL AND GAS EXTRACTION--2.78%
2,089 ANADARKO PETROLEUM CORP .................. 64,759
1,645 APACHE CORP .............................. 67,033
581 * BJ SERVICES CO ........................... 38,600
2,392 BURLINGTON RESOURCES, INC ................ 75,348
1,404 HELMERICH & PAYNE, INC ................... 37,908
1,201 MITCHELL ENERGY & DEVELOPMENT CORP
(CLASS A) ................................ 27,322
941 * NABORS INDUSTRIES, INC ................... 34,346
1,385 NOBLE AFFILIATES, INC .................... 37,914
912 * NOBLE DRILLING CORP ...................... 34,827
1,564 * PARKER DRILLING CO ....................... 6,647
1,259 * ROWAN COS, INC ........................... 33,127
3,499 * SANTA FE SNYDER CORP ..................... 31,491
1,307 * TRANSOCEAN SEDCO FOREX, INC .............. 57,834
3,917 UNION PACIFIC RESOURCES GROUP, INC ....... 44,066
1,009 VASTAR RESOURCES, INC .................... 62,053
690 * WEATHERFORD INTERNATIONAL, INC ........... 35,146
-----------
688,421
-----------
PAPER AND ALLIED PRODUCTS--0.60%
1,323 AVERY DENNISON CORP ..................... 80,041
1,160 CONSOLIDATED PAPERS, INC ................ 39,150
1,671 SONOCO PRODUCTS CO ...................... 30,600
-----------
149,791
-----------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
------ ---------
<S> <C> <C>
PETROLEUM AND COAL PRODUCTS--0.37%
1,553 MURPHY OIL CORP ......................... $ 87,259
214 WD-40 CO ................................ 3,905
-----------
91,164
-----------
PRIMARY METAL INDUSTRIES--0.37%
1,062 BIRMINGHAM STEEL CORP ................... 3,650
1,298 NUCOR CORP .............................. 62,385
2,000 WORTHINGTON INDUSTRIES, INC ............. 25,875
-----------
91,910
-----------
PRINTING AND PUBLISHING--1.05%
442 DELUXE CORP ............................. 10,939
519 DOW JONES & CO, INC ..................... 33,605
1,396 GANNETT CO, INC ......................... 91,525
299 KNIGHT-RIDDER, INC ...................... 13,492
1,299 MCGRAW HILL COS, INC .................... 63,651
625 NEW YORK TIMES CO (CLASS A) ............. 26,054
447 TIMES MIRROR CO SERIES A ................ 21,428
-----------
260,694
-----------
RAILROAD TRANSPORTATION--0.21%
3,985 NORFOLK SOUTHERN CORP ................... 52,552
-----------
RUBBER AND MISCELLANEOUS PLASTIC PRODUCTS--0.47%
67 BANDAG, INC ............................. 1,591
1,601 ILLINOIS TOOL WORKS, INC ................ 87,054
1,020 NIKE, INC (CLASS B) ..................... 27,412
-----------
116,057
-----------
SECURITY AND COMMODITY BROKERS--2.15%
103 BEAR STEARNS COS, INC ................... 4,242
1,182 MERRILL LYNCH & CO, INC ................. 124,036
3,177 MORGAN STANLEY, DEAN WITTER, & CO ....... 275,604
180 PAINE WEBBER GROUP, INC ................. 7,110
2,037 SCHWAB (CHARLES) CORP ................... 106,433
142 THE GOLDMAN SACHS GROUP, INC ............ 15,877
-----------
533,302
-----------
STONE, CLAY, AND GLASS PRODUCTS--0.62%
809 CORNING, INC ............................ 154,923
-----------
TRANSPORTATION BY AIR--0.48%
659 * AMR CORP ................................ 37,480
404 DELTA AIRLINES, INC ..................... 19,316
946 * FEDEX CORP .............................. 31,750
1,593 SOUTHWEST AIRLINES CO ................... 29,769
-----------
118,315
-----------
TRANSPORTATION EQUIPMENT--0.06%
328 FEDERAL-MOGUL CORP ...................... 5,166
105 FLEETWOOD ENTERPRISES, INC .............. 1,548
292 MODINE MANUFACTURING CO ................. 6,989
-----------
13,703
-----------
TRUCKING AND WAREHOUSING--0.01%
284 ARNOLD INDUSTRIES, INC .................. 3,487
-----------
WHOLESALE TRADE-DURABLE GOODS--0.34%
248 AVNET, INC .............................. 15,732
2,130 GENUINE PARTS CO ........................ 44,064
524 GRAINGER (W.W.), INC .................... 20,763
569 IKON OFFICE SOLUTIONS, INC .............. 3,698
-----------
84,257
-----------
WHOLESALE TRADE-NONDURABLE GOODS--1.14%
50 BERGEN BRUNSWIG CORP (CLASS A) .......... 234
829 CARDINAL HEALTH, INC .................... 34,662
2,903 ENRON CORP .............................. 197,873
605 MCKESSON HBOC, INC ...................... 11,230
1,347 SYSCO CORP .............................. 38,726
-----------
282,725
-----------
TOTAL COMMON STOCK
(Cost $24,936,608) ..................... 24,587,183
-----------
</TABLE>
B-55 See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
PRINCIPAL VALUE
- --------- ---------
<S> <C> <C>
SHORT TERM INVESTMENT--0.77%
U.S. GOVERNMENT AGENCY--0.77%
FEDERAL HOME LOAN BANK (FHLB)
$190,000 5.540%, 03/13/00 .............................. $ 189,941
-----------
TOTAL SHORT TERM INVESTMENT
(Cost $189,941) ....................................... 189,941
-----------
TOTAL PORTFOLIO
(Cost $25,126,549) .................................... $24,777,124
===========
</TABLE>
- ------------
* Non-income producing
The cost of investments for federal income tax purposes is substantially the
same as the amount disclosed above.
B-56 See notes to financial statements.
