About the manager

Since 1918, TIAA-CREF has focused intently on providing results for clients. Through a disciplined technique of balancing proven strategies with innovative ones, we’ve successfully provided millions of clients with the outcomes they desire. Our forward-thinking approach is a fundamental part of how we deliver the long-term success our clients have come to expect.

TIAA-CREF is a recognized leader in global socially responsible investing, ranking among the largest managers of comprehensively evaluated assets with over $13 billion in assets under management as of December 31, 2012.

TIAA-CREF’s longstanding commitment to socially responsible investing, 90-year history of investing in the fixed income markets, and extensive research capabilities bring experience and institutional presence to the Fund that should serve as a benefit for investors.

Investment philosophy

TIAA-CREF believes that competitive fixed-income returns can be achieved while offering investors the opportunity to align their portfolios with their values by utilizing a strategy subject to overall environmental, social, and governance (ESG) guidelines and by participating in proactive social investments (PSI).

Investment approach

The TIAA-CREF Social Choice Bond Fund is an actively managed core bond fund that invests in a diversified portfolio of U.S. fixed income securities, focusing primarily on undervalued, investment-grade securities. The Fund seeks to add value through duration and yield-curve positioning, sector allocation, security selection and proactive social investments (PSI).

The Fund is benchmarked to the Barclays U.S. Aggregate Bond Index and is subject to overall environmental, social and governance (ESG) guidelines. TIAA-CREF utilizes a "best-in-class" ESG approach across fixed income sectors in determining the ESG-eligible universe.

Proactive Social Investments

The Fund targets 10% of the portfolio towards proactive social investments (PSI) using a proprietary classification and selection framework to determine PSI eligibility from an environmental, social or governance perspective. These investments are subject to the same relative value framework as all Fund investments. Many potential proactive investments are non-index eligible and not widely followed which aligns to TIAA-CREF’s core strengths of relative value and fundamental credit analysis.

The Fund’s allocation to PSI allows investors to have a direct positive social impact through the funding of socially beneficial companies and projects.

PSI investments are focused on four main impact areas:

• affordable housing
• community and economic development
• renewable energy and climate change
• natural resources

Portfolio Managers

Stephen M. Liberatore, CFA
Managing Director, Global Public Markets

Stephen M. Liberatore is a fixed-income portfolio manager for the TIAA-CREF organization. Mr. Liberatore is responsible for investment strategy and securities selection for several of TIAA-CREF’s fixed-income portfolios. 

Mr. Liberatore joined TIAA-CREF in June 2004 and has 18 years of investment management experience, including positions at Nationwide Mutual Insurance Co. and Protective Life Corporation, where he was responsible for portfolio management, credit research and trading for both total return and general account assets.

Mr. Liberatore holds a B.S. from the State University of New York at Buffalo in finance and MIS, and an M.B.A. in finance and operations from Wake Forest University’s Babcock Graduate School of Management. He also holds the Chartered Financial Analyst designation and is a member of the CFA Institute and the CFA North Carolina Society.

Joseph Higgins, CFA

Managing Director, Global Public Markets

• Joined TIAA-CREF in 1995
• 17 years of investment experience

Steven Raab, CFA

Managing Director, Global Public Markets

• Joined TIAA-CREF in 1991
• 21 years of investment experience

ESG commitment

TIAA-CREF is a recognized leader in global socially responsible investing, ranking among the largest managers of comprehensively evaluated assets with over $13 billion in assets under management as of December 31, 2012.

With the belief that good corporate governance and responsible business practices can enhance the long-term economic value of companies, in the early 1970s, TIAA-CREF became one of the first institutional investors to engage with companies on social issues.

Select milestones include:

In 1990, TIAA-CREF launched the CREF Social Choice Account, enabling TIAA-CREF clients to be among the first investors to have direct access to screened investments in retirement plans.

In 1997, TIAA-CREF issued the 1^st Edition of “Policy Statement on Corporate Governance,” now in its 6^th Edition.

In 1999 and 2000, TIAA-CREF launched the Social Choice Equity mutual fund.

In 2000, TIAA-CREF formalized the Corporate Governance Group.

In 2006, TIAA-CREF created the Global Social & Community Investing Department.

In 2012, TIAA-CREF engaged with more than 400 companies on issues that ranged from executive compensation, to climate change, to sustainable energy policies. As one of the world’s leading investors, TIAA-CREF continues to influence many of the companies in which they invest.

TIAA-CREF collaborates with other public and private institutions to strengthen responsible investing practices on a global scale:

• Member of the USSIF: The Forum for Sustainable and Responsible Investment
• Signatory to the United Nations-backed Principles for Responsible Investment (PRI)
• Founding member of the Global Impact Investing Network’s (GIIN) Investors’ Council
• Signatory to and steering committee member of the Principles for Investors in Inclusive Finance (PIIF)

Founding partner and steering committee member of the Global Initiative for Sustainability Ratings (GISR)

Pax World Management makes no assurance that the manner in which TIAA-CREF manages its assets in the ESG Managers® Portfolios is the same as or entirely consistent with the manner in which it manages any of its other Funds or accounts.

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