U.S.

equities experienced a banner year

The domestic stock market, as represented by
the broad-based Russell 3000®Index, gained
31.0% for the twelve months. Foreign equities,
as measured in U.S.-dollar terms by the MSCI
EAFE®Index, rose 22.0%. U.S. investment-
grade fixed-rate bonds, as represented by the
Bloomberg Barclays U.S. Aggregate Bond
Index, advanced 8.7%. Yields on U.S. Treasury
securities of all maturities declined, pushing
bond prices higher (bond yields move in the
opposite direction of prices).

A prudent approach to pursuing long-term Carol Deckbar

financial goals
As we enter a new decade, it’s worth taking a moment to appreciate the past ten
years. The U.S. economy has enjoyed a steady multiyear expansion, and global
financial markets have prospered. But there were moments when continued
growth appeared far from certain, and investors experienced periods of higher
volatility along the way. As we begin a new year with a presidential election in
November, some analysts anticipate further gains while others expect increased
volatility. Surely, no one can predict where markets are headed in the future. But
those uncertainties and unavoidable periods of higher volatility should not
distract investors from their long-term investment goals. We believe a well-
balanced and diversified portfolio of different asset classes can be a prudent
strategy to help investors manage through the inevitable fluctuations of the
financial markets. Of course, diversification does not guarantee against market
losses, and past performance cannot guarantee future results.
As always, we recommend that you speak with your financial advisor or call a
TIAA financial consultant with any questions about your investments. To learn
more, visit us at TIAA.org or call 800-842-2252. We would be happy to assist you.

Carol W. Deckbar
Principal Executive Officer, CREF
Executive Vice President, TIAA Institutional Investments and Endowment Services

College Retirement Equities Fund 2019 Annual Report 5