The Department of the Treasury and the Internal Revenue Service released new guidance that is “designed to expand the use of income annuities in 401(k) plans.”
NEW YORK, Oct. 1 -- TIAA-CREF issued the following news release:
TIAA-CREF today announced a $725 million mandate from Morley Capital Management, Inc., one of the oldest and largest stable value managers in the United States. Morley's commitment begins with deposits in two separate account guaranteed interest contracts (SAGICs) issued to two pooled stable value funds managed by Morley.
"TIAA-CREF continually seeks to provide solutions that help individuals and institutions manage risk," said Philip Maffei II, senior director overseeing Stable Value products at TIAA-CREF. "Demand from institutional and individual clients seeking safety, stability and peace of mind is significant and on-going. We are pleased to bring our expertise in managing stable value assets and liabilities to bear in support of Morley Capital Management's solutions."
TIAA-CREF's approach to managing stable value assets leverages its more than 90 years of experience in asset, liability and risk management. Through its flagship guaranteed annuity, TIAA Traditional, and other principal protection products, TIAA-CREF currently manages $152.5 billion in stable value accumulation assets (as of June 30, 2012) for defined contribution plans, retiree healthcare savings plans, 529 college savings plans, individual retirement accounts and stable value funds.
"We like to work with asset managers who, like us, have a strong history of providing a conservative disciplined investment approach," said Tim Stumpff, president at Morley Financial Services, Inc. "TIAA-CREF's long-term outlook and experience as a manager of stable value assets made them an ideal partner for this mandate."
TIAA and its wholly owned subsidiary, TIAA-CREF Life Insurance Company ("TC Life"), continue to hold the highest ratings currently awarded from all four leading independent insurance industry ratings agencies.1 These ratings underscore TIAA's and TC Life's stability, claims-paying ability and financial strength.
"Working with Morley is a natural extension of what our portfolio management teams have done successfully for our participants since 1918 and leverages our core strengths in asset, liability and risk management to provide institutional-investment-only stable value solutions," said John Panagakis, senior managing director and head of Asset Management Business Development at TIAA-CREF.
The program's guaranteed interest contracts (GICs) are issued by TC Life and the underlying assets of the separate account portfolio are managed in a high-quality, short-duration investment strategy by TIAA-CREF Asset Management through Teachers Advisors, Inc.
Morley Capital Management, Inc. is a financial investment advisory firm within Morley Financial Services, Inc., with headquarters in Portland, Oregon. Morley is the stable value affiliate of Principal Global Investors.
Morley currently manages approximately $17 billion of assets. Morley Financial Services, Inc. is one of the oldest and largest stable value managers in the country and pioneered the use of managed stable value portfolios in 1982.