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TIAA-CREF Announces Social Choice Fund SRI Allocation
A TIAA-CREF news release said that under the new target allocation, the account will invest in publicly traded fixed income securities that finance initiatives in areas including affordable housing, alternative energy such as hydro-electric power and economic development programs in the United States and abroad.
The new 2% target allocation, subject to market
conditions and valuation parameters, would result in over
$175 million of investments, according to the
company. TIAA-CREF said it expects to begin reporting
progress toward meeting the 2%target investments in the
fourth quarter of 2007.
The investments will be chosen based on the same
financial criteria used by TIAA-CREF’s Global Public
Markets group in selecting fixed-income investments for the
organization’s other funds. The announcement said
the new allocations made in CREF Social Choice will
complement existing private market investments related to
microfinance, affordable housing and community economic
development currently pursued by TIAA-CREF through its TIAA
Traditional account.
“We continue to see increasing demand for socially
responsible investments from our clients and the broader
marketplace, including the ability to invest in initiatives
such as renewable energy sources and economic development
programs in the United States and abroad,” said Herb
Allison, Chief Executive Officer, TIAA-CREF, in the news
release.
CREF Social Choice had $8.9 billion in net assets as of
March 31, 2007, with over 430,000 investors. The
account is a balanced portfolio with an overall target
asset allocation of 60% equity securities and 40% fixed
income securities.