For the Quarter-to-Date Ending June 30, 2012

TIAA-CREF Fund & Account Commentary Economic & Market Commentary

The U.S. and Global Economies The U.S. economy lost steam in the second quarter of 2012, evidenced by a marked slowdown in key indicators that had been building momentum in the first quarter. As a result, the prospect of a self-sustaining U.S. recovery gave way to the increased likelihood of a third consecutive summer slowdown. Employment. Most gauges of U.S. employment deteriorated in the quarter. Weekly first-time jobless claims jumped by more than 22,000 between March and June, based on four-week moving averages. Meanwhile, the pace of hiring fell sharply, with only 225,000 net jobs created in the second quarter, versus 677,000 in the first. June’s unemployment rate remained stuck at 8.2%, exactly where it was at the end of the first quarter. Manufacturing. U.S. manufacturing activity decelerated from previously encouraging levels. For the first time in nearly three years, the Institute for Supply Management’s Purchasing Managers’ Index (PMI) dipped below 50— the threshold that separates economic expansion from contraction.

Consumer sentiment. The Consumer Confidence Index published by the Conference Board dropped nearly 10 points between February and June. Falling consumer sentiment is seen as a negative for consumer spending, which stagnated in May. Although declining oil prices trimmed inflation and provided a boost to consumer incomes, money saved at the gas pump was not spent on other goods. Not all of the U.S. economic news was discouraging. Housing remained a bright spot, with favorable readings on new and existing home sales, housing starts, building permits, and median home prices. Inflation remained subdued, with the Consumer Price Index (CPI-U) flat in April and slightly negative (-0.3%) in May, reflecting lower gasoline prices. Crude oil prices plunged 17% in the second quarter, driven partly by diminished demand from China. On the policy front, the Federal Reserve announced an extension of its “Operation Twist” program through the end of 2012. This is the Fed’s effort to lower long‑term interest rates and stimulate the economy by selling short-term U.S. Treasury securities and purchasing an equivalent amount of long-term securities.

TIAA-CREF Fund & Account Commentary Quarter-to-Date Ending June 30, 2012

International economies were fragile during the quarter. In Europe, which continued to struggle with sovereign debt and fiscal crises, unemployment hit 11.1% in May, led by Spain, at 24.6%. Major developments in Europe included the election of a new president in France, two rounds of Greek elections that finally produced a pro-bailout coalition government, a sizable program to recapitalize ailing Spanish banks, and a European Union summit at the end of June that yielded a number of tangible policy steps to help address the region’s economic and financial problems. China’s slowing economy prompted the Chinese central bank to cut its key lending rate for the first time since 2008. Among the worrisome indicators for China was a contraction in its manufacturing PMI to 48.2 in June, the eighth consecutive month in which this index remained below 50.

Investment Markets In general, the second quarter was a volatile, “risk off” period that saw investors shun lower-quality investments and seek out safe-haven assets. Equities. U.S. equity markets produced broadly negative returns in the quarter. The S&P 500 Index lost 2.75%, with returns weakest in the economically sensitive Financials (-6.83%), Technology (-6.68%), and Energy (-5.99%) sectors, and strongest in Telecommunications (+14.13%) and Utilities (+6.55%), which are typically more defensive. The broader Russell 3000 Index fell 3.15%. Based on specific Russell market-cap and style indexes, large caps (-3.12%) held up better than both mid caps (-4.40%) and small caps (-3.47%), while value (-2.26%) outperformed growth (-4.02%). Foreign developed and emerging-market equities underperformed their U.S. counterparts, with the MSCI EAFE Index and MSCI Emerging Markets Index returning -7.13% and -8.89%, respectively. Fixed income. The Barclays U.S. Aggregate Bond Index, a broad measure of investment-grade fixed-income performance, returned 2.06%. The Barclays Treasury Index outperformed, returning 2.83%. Longer-dated Treasuries in

particular (+11.80%) were helped by the flight to quality, which drove their prices up and yields down. The daily closing yield on the 10-year Treasury began the quarter at 2.23%, hit a record low of 1.47% on June 1, and settled at 1.67% at quarter-end. Based on Barclays indexes, returns were better for higher-quality sectors such as U.S. inflation-linked bonds (+3.15%) and investment-grade U.S. corporate bonds (+2.52%), and lower for U.S. commercial mortgage-backed securities (+0.86%) and global emerging market bonds (+0.88%). U.S. high-yield bonds performed better (+1.83%) than might have been expected, given the diminished appetite for risk during the quarter.

Outlook The near-term macroeconomic outlook is mixed at best. In May, first-quarter U.S. GDP growth was revised down to 1.9%, from an initial estimate of 2.2%. Moreover, consensus forecasts, for second-quarter GDP growth, have been lowered to approximately 1.8%. Although surveys indicate a need for increased hiring, U.S. employers are taking a wait-and-see attitude before committing to more jobs and capital expenditures. This reluctance can have a self-fulfilling negative impact on overall activity. At roughly 3.2%, consensus forecasts for second-quarter global growth are higher than U.S. estimates but face the possibility of downward revisions in light of China’s growth rate declining from 8.1% in the first quarter to 7.6% in the second—the slowest expansion of the Chinese economy since the 2008–2009 financial crisis. In the eurozone, the faltering economy is close to falling deeper into recession. Against this backdrop, the S&P 500 continues to trade below its historical average price-to-earnings (P/E) ratio, suggesting that stocks are attractively valued and may offer selective long-term investment opportunities. That said, we are mindful of the confidence-draining macro burdens facing the global economy, as well as the threat posed by the U.S. “fiscal cliff” of automatic spending cuts and tax increases that will take effect in January 2013 if no political compromise is reached.

This represents the views of TIAA-CREF Asset Management as of June 2012 and does not reflect the views of any TIAA-CREF affiliate. These views may change in response to changing economic and market conditions. The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons. Past performance is not indicative of future results. TIAA-CREF Asset Management provides investment advice and portfolio management services to the TIAA-CREF group of companies through the following entities: Teachers Advisors, Inc., TIAA‑CREF Investment Management, LLC, and Teachers Insurance and Annuity Association® (TIAA®). Teachers Advisors, Inc., is a registered investment advisor and wholly owned subsidiary of Teachers Insurance and Annuity Association (TIAA). © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5576

TIAA-CREF Fund & Account Commentary

TIAA-CREF Emerging Markets Equity Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights In the second quarter of 2012, the TIAA-CREF Emerging Markets Fund outperformed its benchmark, the MSCI Emerging Markets Index. The second quarter started out strong, both for the Fund and for the emerging markets equity asset class, as investor fears surrounding the eurozone debt crisis briefly subsided. However, as the quarter progressed, equity markets succumbed to intensifying global macro concerns—not just the potential for a breakup of the European Union, but also a sharp slowdown in global demand, evidenced by cooling growth in China and stagnation in the U.S. recovery. Additionally, the currencies of many emerging market countries depreciated sharply against the U.S. dollar. The Brazilian real, the Russian ruble, and the Indian rupee, for example, lost more than 10% of their value versus the dollar. The Fund does not hedge currency as part of its investment strategy, and as a result, currency depreciation has an adverse impact on the Fund’s returns. On a stock-specific basis, an underweight in Petroleo Brasileiro, a Brazilian multinational energy corporation, was the primary contributor to performance. In addition, an overweight in SpiceJet Ltd, an Indian airline that is currently restructuring, and an underweight in Grupo Elektra, a specialty retailer and financial services company headquartered in Mexico and serving Latin America, also contributed. A substantial overweight in Mexican bank Grupo Financiero Banorte also boosted performance.

On a country allocation basis, Fund performance was helped by overweights in Mexico, the Philippines, and Thailand, and an underweight in India. On the other hand, underweights in Hong Kong and Korea detracted from performance. From a sector perspective, Energy and Telecommunications detracted the most from performance, while Industrials was the biggest contributor.

Positioning Looking ahead to the third quarter, the Fund has taken a slightly more defensive posture, placing a greater emphasis on lower-beta stocks (i.e., those that tend to be less aggressive in terms of both risk and return potential) and on dividend yield. We expect to maintain this posture until there is greater clarity on global macroeconomic issues and corporate earnings. Generally, global GDP forecasts continue to be revised downward, and in light of this, the Fund is underweight Russia, India, and China, in favor of opportunities in smaller, less-liquid countries, such as Mexico, the Philippines, Thailand, and Singapore. The Fund also continues to overweight Brazil. Consistent with our investment process, of the more than 300 companies owned in the portfolio, approximately one-third are out-of-benchmark holdings, including midand small-cap names, to the extent that appropriate opportunities are present.

The Fund’s 10 top-performing stocks were concentrated in Mexico, where many companies may be poised to take advantage of a U.S. recovery, and in Latin America, a geographic region that may be receiving more attention from investors as they begin to underweight Brazil. An overweight in South African miner AngloGold detracted from performance, as did the Fund’s underweight in China Mobile.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Emerging Markets Equity Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Emerging Markets Equity Fund–Institutional Class

TEMLX

1.08%/0.95%

8/31/2010

-8.50%

-17.15%

N/A

N/A

N/A

-1.23%

Emerging Markets Equity Fund–Retirement Class

TEMSX

1.33%/1.20%

8/31/2010

-8.51%

-17.27%

N/A

N/A

N/A

-1.45%

Emerging Markets Equity Fund–Retail Class

TEMRX

1.47%/1.34%

8/31/2010

-8.61%

-17.46%

N/A

N/A

N/A

-1.61%

Emerging Markets Equity Fund–Premier Class

TEMPX

1.23%/1.10%

8/31/2010

-8.50%

-17.13%

N/A

N/A

N/A

-1.31%

-8.89%

-15.95%

N/A

N/A

N/A

0.61%

MS Emerging Market

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

Petrobras Petroleo Brasileiro (Pfd)

Consumer Discretionary

SpiceJet Ltd.

Industrials

Grupo Elektra S.A. de C.V.

Financials

Top Detracting Securities

Top Detracting Sectors

AngloGold Ashanti Ltd.

Telecommunication Services

OGX Petroleo e Gas Participacoes S/A

Materials

China Mobile Ltd.

Utilities

Top 10 Holdings Issuer

n Consumer Staples n Health Care n Consumer Discretionary n Energy n Industrials n Information Technology n Materials n Financials n Telecommunications Services n Utilities n Contribution  n Detraction

% of Net Assets

Samsung Electronics Co Ltd

5.1

Taiwan Semiconductor Manufacturing Co Ltd

2.4

Vale S.A.

1.5

Gazprom OAO (ADR)

1.4

Tencent Holdings Ltd

1.4

America Movil S.A. de C.V. (Series L)

1.3

China Mobile Hong Kong Ltd

1.2

Hyundai Motor Co

1.2

Industrial & Commercial Bank of China

1.2

China Construction Bank

1.1

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The net annual expense ratio represents expenses after reimbursement and waivers, while the gross annual expense ratio represents expenses without any reimbursements and waivers. These expense reimbursement arrangements will continue through at least February 28, 2013 and can only be changed with approval of the Board of Trustees. Without these waivers and reimbursements, the Fund expenses would be higher and their performance would have been lower. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Foreign investing involves certain risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity and the potential for market volatility and political instability. In addition, investing in emerging markets may involve a relatively higher degree of volatility. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5580

TIAA-CREF Fund & Account Commentary

TIAA-CREF Global Natural Resources Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights The TIAA-CREF Global Natural Resources Fund outperformed its benchmark, the MSCI ACWI Commodity Producers Sector Capped Index, in the second quarter of 2012. The second quarter saw a sharp pullback in commodity equities, as European debt concerns resurfaced, leading to repeated bouts of risk aversion and heightened fears of a slowdown in global growth. Chinese economic data remained weak, indicating that policy stimulus launched by the government in May has been insufficient so far to jumpstart the economy. The price of Brent crude oil fell by a near-record 22% during the quarter, as worry over a potential conflict with Iran moderated, and traders bet that OPEC production cuts will not be enough to compensate for a contraction in world growth. Metal prices broadly weakened, with aluminum down 10% and copper 9%. U.S. thermal coal equities were among the worst-performing, due to investor concerns about rising inventories and the growing trend of power plants switching from coal to natural gas. The only key natural resources sector of relative strength was agriculture, where a drought in the U.S. Midwest, starting in June, has noticeably improved the supply outlook for grains and oilseeds. The Fund’s relatively conservative positioning helped during the quarter. One of the Fund’s largest positive contributors was London-listed Cove Energy, which was the target of competing takeover offers due to its gas find in Mozambique. The potential size of the discovery was further enhanced through additional drilling. Indonesian poultry producer Charoen Pokphand was another positive contributor, as the firm’s market dominance enabled it to pass on cost increases to its customers, while expanding margins. Other positive contributions came from Newmarket (a U.S.-based petroleum additives company) and an underweight in Xstrata, where a recent controversy surrounding management retention packages has hurt the stock.

The deteriorating outlook for coal production and mining globally (both thermal as well as metallurgical) affected several of the Fund’s coal holdings, including Walter Energy, PTBA, United Tractors, Joy Global and Cliffs Natural (which was also hurt by iron ore weakness). The Fund’s underweight position in Monsanto detracted from performance in the quarter, as the outlook for the agriculture sector improved. Another negative contributor was the Fund’s underweight in Exxon Mobil, which usually tends to hold up well during severe market corrections. As oil prices fell sharply, some of the Fund’s top positive contributors in the first quarter, such as Continental Resources, had the opposite effect in the second quarter.

Positioning Looking ahead, there is a great deal of uncertainty on various fronts. We see no easy or quick resolution to the European debt crisis, and economic growth in the eurozone has continued to contract. In China, where growth has cooled considerably, policy action is somewhat in limbo as a change of government leadership is in progress. Until the transition is complete (by the end 2012), any massive new stimulus program is unlikely. Other emerging markets, including India and Brazil, have also been slowing. In the U.S., growth remains anemic, and the looming “fiscal cliff” of severe budget cuts and expiring tax cuts is approaching in 2013. On the positive side, interest rates remain at record lows, sector valuations are attractive, and there remains the possibility of another round of quantitative easing by the Fed. While maintaining a defensive bias overall, the Fund has been adding back selectively to positions that underperformed in the second quarter’s “risk off” environment, as valuations become more attractive. The energy overweight has been reduced and mostly shifted to the metals and agriculture sectors. As gold mining equities continue to lag the price of gold, the Fund has reduced its underweight in this sub-sector.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Global Natural Resources Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Global Natural Resources Fund–Institutional Class

TNRIX

0.83%/0.75%

11/01/2011

-8.58%

N/A

N/A

N/A

N/A

-2.82%

Global Natural Resources Fund–Retirement Class

TNRRX

1.08%/1.00%

11/01/2011

-8.67%

N/A

N/A

N/A

N/A

-2.94%

Global Natural Resources Fund–Retail Class

TNRLX

1.22%/1.14%

11/01/2011

-8.77%

N/A

N/A

N/A

N/A

-3.06%

Global Natural Resources Fund–Premier Class

TNRPX

0.98%/0.90%

11/01/2011

-8.67%

N/A

N/A

N/A

N/A

-2.92%

-9.06%

N/A

N/A

N/A

N/A

N/A

MSCI All Country World Commodity Producers Sector Capped Index

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

Charoen Pokphand Indonesia

Materials

Cove Energy

Consumer Staples

New Market Corp.

Top 10 Holdings Issuer

n Consumer Staples n Energy n Industrials n Materials n Utilities

% of Net Assets

Syngenta AG.

4.4

Potash Corp of Saskatchewan Toronto

4.2

Exxon Mobil Corp

3.3

Rio Tinto plc

3.1

CF Industries Holdings, Inc

2.6

Top Detracting Securities

Top Detracting Sectors

Monsanto Co

2.4

Exxon Mobil

Energy

Vale S.A. (Preference)

2.3

United Tractors

Industrials

BHP Billiton plc

2.3

Monsanto Co.

Utilities n Contribution  n Detraction

Cove Energy plc

2.0

Chevron Corp

1.9

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The “Since Inception” values presented are cumulative values and not average annualized total returns. The net annual expense ratio represents expenses after reimbursement and waivers, while the gross annual expense ratio represents expenses without any reimbursements and waivers. These expense reimbursement arrangements will continue through at least February 28, 2013 and can only be changed with approval of the Board of Trustees. Without these waivers and reimbursements, the Fund expenses would be higher and their performance would have been lower. Please see the prospectus for details. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Foreign investing involves certain risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity and the potential for market volatility and political instability. In addition, investing in emerging markets may involve a relatively higher degree of volatility. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5579

TIAA-CREF Fund & Account Commentary

TIAA-CREF Growth & Income Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights The TIAA-CREF Growth & Income Fund underperformed its benchmark, the S&P 500 Index, in the second quarter of 2012. Despite the challenging quarter, the Fund continued to outperform the index on a year-to-date basis. Global equity markets declined during the second quarter as investors responded to a variety of fears—predominantly the potential for a breakup of the European Union, but also a sharp slowdown in global demand, evidenced by cooling growth in China and other emerging markets. The pullback in stocks during the quarter was characterized by a move away from relative risk and toward relative safety. In the U.S., the market’s decline was aggravated by fears of further headwinds in the form of the looming “fiscal cliff”: automatic tax increases and spending cuts that are scheduled to take effect in January 2013 unless there is a breakthrough in the current partisan Congressional stalemate. The Growth & Income Fund’s underperformance was spread across several sectors, with stock selection as the primary driver. The broad market selloff affected cyclically oriented sectors more than those with defensive characteristics. Accordingly, within the Fund, Industrials and Information Technology (sectors closely tied to the business cycle) were two of the largest detractors from the Fund’s relative performance. Within Information Technology, detractors included positions in Symantec, Qualcomm, and JDS Uniphase, all of whose share prices suffered on investors’ perception of slowing global demand for PCs and communications equipment/ devices. Within Industrials, semiconductor/graphics company Imagination Technologies, underperformed on concerns about its European exposure. The two best-performing S&P 500 sectors in the quarter were defensively oriented Telecommunications Services and Utilities. The Fund’s mild underweight in Telecommunications Services, combined with not owning Verizon Communications (which enjoyed a move up during the quarter), drove the Fund’s underperformance in this sector. Similarly, our underweight in Utilities was the primary reason for underperformance in that sector.

Investors’ flight to safety benefited the Fund’s overweight in Consumer Staples, where stock selection also proved supportive. Our position in Hershey, the confectionary company, performed very well, helped both by the stability of its business and by its growth potential, including the company’s recent investment in China, where the prospect of future additional growth is significant. Financials had a mixed impact on Fund performance. An underweight in this lagging sector proved beneficial, as did underweights in JPMorgan Chase and Citigroup, given their sharp declines. These positive effects were offset by the Fund’s overweights in Prudential Financial and Blackstone Group, which underperformed.

Positioning Close attention to risk control keeps the Fund’s sector allocations reasonably close to those of the S&P 500 Index (generally within +/- 300 basis points). This enables our research-intensive, bottom-up stock selection process to be the primary driver of relative performance. We focus on finding companies with accelerating revenues and/or earnings that exceed expectations, along with a consistently strong financial profile (margins, cash flows, debt, and cash). Continued uncertainty in the macro environment, coupled with the desire for yield, has led investors to bid up the prices of dividend-paying, large-cap stocks. The run-up in shares of these stocks has caused their prices to become rather full. On the whole, relative to the S&P 500, the Growth & Income Fund has a slightly lower dividend profile, while favoring companies with stronger free cash flow yields. During the quarter, we increased our exposure to Consumer Staples and Financials, reallocating from Energy and Industrials. Although we reduced our exposure to “risk-on” sectors that tend to benefit from an improving GDP environment, the Fund still maintains sufficient exposure to growth, should the market reaccelerate.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Growth & Income Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Growth & Income Fund–Institutional Class

TIGRX

0.48%/0.48%

7/1/1999

-4.08%

4.66%

15.61%

2.50%

6.88%

2.75%

Growth & Income Fund–Retirement Class

TRGIX

0.73%/0.73%

10/1/2002

-4.10%

4.45%

15.27%

2.23%

6.57%

2.52%

Growth & Income Fund–Retail Class

TIIRX

0.83%/0.83%

3/31/2006

-4.15%

4.36%

15.26%

2.26%

6.78%

2.685

Growth & Income Fund–Premier Class

TRPGX

0.62%/0.62%

9/30/2009

-4.12%

4.50%

15.45%

2.41%

6.83%

2.71%

-2.75%

5.45%

16.40%

0.22%

5.33%

N/A

S&P 500 Index

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

Hershey Co.

Consumer Staples

SXC Health Solutions Corp.

Materials

Monster Beverage Corp.

N/A

Top Detracting Securities

Top Detracting Sectors

Verizon Communications Inc.

Health Care

Symantec Corp.

Industrials

Prudential Financial Inc.

Information Technology

Top 10 Holdings Issuer

% of Net Assets

n Consumer Staples n Health Care n Consumer Discretionary n Energy n Industrials n Information Technology n Materials n Financials n Telecommunications Services n Utilities

Apple, Inc

5.0

Exxon Mobil Corp

3.0

Pfizer, Inc

2.3

Wells Fargo & Co

2.1

Philip Morris International, Inc

2.1

Chevron Corp

2.0

AT&T, Inc

1.7

n Contribution  n Detraction

Johnson & Johnson

1.5

Coca-Cola Co

1.9

Microsoft Corp

1.8

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The inception date for the premier class is September 30, 2009, the retail share class is March 31, 2006, and the retirement share class is October 1, 2002. Performance shown prior to the inception of the share classes is based on the performance of the fund’s Institutional Class which began operations on July 1, 1999. Performance has not been restated to reflect the higher expenses of the respective share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: February 28, 2013. Please see the prospectus for details. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Growth stocks may be more volatile than value stocks due to their relatively high valuations, and growth investing may fall out of favor with investors. Please consider all risks carefully prior to investing. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5577

TIAA-CREF Fund & Account Commentary

TIAA-CREF International Equity Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights The TIAA-CREF International Equity Fund underperformed its benchmark, the MSCI EAFE Index, in the second quarter of 2012, but remained ahead of the benchmark for the year to date. International stock markets posted broadly negative returns in the second quarter, as risk aversion returned and investors shifted out of equities in search of safer-haven assets. In Europe, equity markets remained unsettled and resumed their role in setting the direction for other markets. In Asia, concerns about a slowdown in the Chinese economy also weighed on global markets. Within the Fund’s portfolio, companies that released earnings early in the quarter reported strong results, but as worsening market sentiment began to proliferate, a negative feedback loop was established. Companies provided guidance that their customers were beginning to lose confidence in anything beyond near-term demand; as a result, overall inventories remained lean. Much of the Fund’s underperformance stemmed from our more economically sensitive holdings (companies that are more vulnerable to the negative effects of decelerating growth). Examples included two U.K.-based financial stocks, alternative investment management firm MAN Plc and Barclays Bank, as well as holdings in the Materials sector, including two German specialty chemical companies, Laxness and Clariant, which gave back some of their positive performance for the year. Although the Financials Materials and Industrials sectors generally contributed to underperformance, select holdings within these sectors made positive contributions. Specifically, Indian Bank HFDC and French Bank BNP Paribas were positive contributors in the Financials sector, as was U.K.-based materials wholesaler Wolseley plc in the Industrials sector—suggesting that the embedded long-term growth trends particular to these businesses helped insulate them from broader macroeconomic weakness. Among other sectors that detracted was Consumer Staples, but this was largely due to companies that were not held.

The Healthcare and Consumer Discretionary sectors made the strongest contributions in the second quarter. In Healthcare, some of the Fund’s underperformance was mitigated by an overweight in Bayer, the German life sciences franchise, and in Consumer Discretionary, by an overweight in British‑American cruise operator Carnival. Both companies performed well through the first half of 2012. Regionally, the Fund remained overweight in Europe, although, as we anticipated, uncertainty surrounding the ability of EU leaders to address a variety of fiscal, and debt problems has continued to drive volatility in European financial markets. Many of the European multinational companies held in the Fund have indirect exposure to other regions of the world, and thus the potential to remain on a secular uptrend despite macro conditions in Europe. In Asia, economic growth prospects for China remain unclear, particularly because, in the current period of transition to new leadership, both the timing and intentions of government action to stimulate the economy are not yet known. The Fund’s exposure to Asia is spread across the Hong Kong, Indian, and Japanese markets; but we remain underweight in Japan.

Positioning The markets’ fixation on macro events has returned. Despite the challenging quarter, we are pleased that measures we implemented to provide greater resilience to the Fund during extremely volatile periods have met with some success. We have increased the number of stocks held, ending the quarter with 77 names in the portfolio. Additionally, we have reduced the combined allocation to our top 10 positions from 50% of the total portfolio to 40.8% as of June 30, 2012. In markets such as this, we anticipate that we may find opportunities to take advantage of price dislocations in select stocks, allowing us to add companies to the portfolio that meet our investment criteria. We remain committed to our disciplined, cash flow-based stock selection process, seeking high-quality investments in which we have the highest degree of conviction over a five-year horizon.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

TIAA-CREF International Equity Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

International Equity Fund–Institutional Class

TIIEX

International Equity Fund–Retirement Class

TRERX

International Equity Fund–Retail Class International Equity Fund–Premier Class

0.53%/0.53%

7/1/1999

-9.39%

0.78%/0.78%

10/1/2002

-9.43%

TIERX

0.90%/0.90%

3/31/2006

-9.46%

TREPX

0.68%/0.68%

9/30/2009

MSCI EAFE Index

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

Bayer AG

Consumer Discretionary

Carnival PLC

Health Care

HDFC Bank Ltd.

Energy

Top Detracting Securities

Top Detracting Sectors

Man Group PLC

Financials

Clariant AG

Consumer Staples

Lanxess AG

Materials

3 Year

5 Year

10 Year

Since Inception

-19.07%

7.16%

-7.33%

5.18%

3.11%

-19.21%

6.95%

-7.55%

4.74%

2.78%

-19.35%

6.92%

-7.55%

5.27%

3.18%

-9.30%

-19.05%

7.03%

-7.40%

5.14%

3.08%

-7.13%

-13.83%

5.96%

-6.10%

5.14%

N/A

1 Year

Top 10 Holdings Issuer

% of Net Assets

n Consumer Staples n Health Care n Consumer Discretionary n Energy n Industrials n Information Technology n Materials n Financials n Telecommunications Services n Utilities

Bayer AG.

7.3

Carnival plc

5.1

Lanxess AG.

4.1

Henkel KGaA (Preference)

4.0

Reckitt Benckiser Group plc

4.0

n Contribution  n Detraction

Wolseley plc

3.9

Li & Fung Ltd

3.3

Adecco S.A.

3.3

HDFC Bank Ltd

2.8

Clariant AG.

2.8

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The inception date for the premier class is September 30, 2009, the retail share class is March 31, 2006, and the retirement share class is October 1, 2002. Performance shown prior to the inception of the share classes is based on the performance of the fund’s Institutional Class which began operations on July 1, 1999. Performance has not been restated to reflect the higher expenses of the respective share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: February 28, 2013. Please see the prospectus for details. Shares held less than 60 calendar days may be subject to a 2.00% redemption fee. Please see the prospectus for details. The fund performance shown does not reflect the deduction of this fee. Had the fee been deducted, returns would have been lower. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Foreign investing involves certain risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity, and the potential for market volatility and political instability. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5577

TIAA-CREF Fund & Account Commentary

TIAA-CREF Large-Cap Growth Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights The TIAA-CREF Large-Cap Growth Fund underperformed its benchmark, the Russell 1000 Growth Index, in the second quarter of 2012. The second quarter was characterized by fears of a global economic slowdown, with a growing consensus that the U.S.—while perhaps “the best house on a bad block”—has also lost some momentum. Slowing growth in China, India, and other emerging markets, along with continued malaise in the eurozone, was a drag on the market for growth stocks. The second-quarter market environment was clearly not hospitable to high expectations or high-growth companies. Although many of the Fund’s holdings have corrected sharply since May, the primary culprit has been not company fundamentals, but rather macroeconomic concerns and a general desire among investors to “de-risk” their portfolios. From a sector perspective, an overweight in Information Technology detracted the most from performance in the quarter, mostly due to stock selection within the sector. A few out-of-benchmark positions, including Cisco Systems and Chinese search engine Baidu, hurt the Fund. Baidu struggled in the quarter due to slowing growth in China and reduced advertising spending across the country. Cisco reported a solid quarter, but its share price was punished after comments by the CEO regarding the diminishing outlook for global growth and the reluctance of businesses to increase their technology spending. The Fund’s performance relative to its benchmark also suffered because of an underweight in the Consumer Staples sector, where not owning more defensively positioned companies like Coca-Cola, Pepsico and Altria detracted from returns. These are lower-growth companies that aren’t a fit for the Fund’s investment strategy. In the Consumer Discretionary sector, detractors included overweight positions in Nike and Wynn Resorts. Nike faced some foreign exchange headwinds, along with slowing growth in China. We continue to believe Nike is one of the stronger

global consumer franchises with a reasonable valuation. Wynn was also affected by slowing growth in China, but the company remains one of the best casino operators in Macau, and their long-term prospects remain strong. On the positive side, a number of top 10 Fund positions (including amazon.com, Disney, and Monsanto) outperformed and contributed to performance. Amazon continues to execute well, and expectations for future growth remain relatively conservative. Disney has maintained solid fundamentals and is also executing well. Its film studio bounced back from some box-office failures, and Disney’s theme park business continues to show consistent growth. Monsanto remains a top holding, and with renewed momentum from new product launches, appears well-positioned, with limited sensitivity to the global economy.

Positioning As always, the TIAA-CREF Large-Cap Growth investment strategy remains focused on high-quality, blue-chip companies that we believe present opportunities for sustained, above-average growth in revenues, earnings, and cash flows over the long term. As we move through second-quarter earnings season, we will get additional data to assess the market environment. In the meantime, we have already begun to reposition the Fund to better reflect a more subdued global growth outlook. This includes building positions in companies that have a strong domestic presence and are more characteristic of “growth at a reasonable price.” To that end, we have recently added positions in more defensively oriented growth names in the Healthcare and Telecom sectors. We are also seeking to build and add to positions opportunistically in companies that have exceptional consumer global franchises or are secular winners over the long term. Our sector-weighting bias remains in Consumer Discretionary and Information Technology, where we have continued to find compelling long-term growth opportunities over the long-term.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Large-Cap Growth Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Large-Cap Growth Fund–Institutional Class

TILGX

0.48%/0.48%

3/31/2006

-5.59%

4.29%

15.67%

2.29%

N/A

3.56%

Large-Cap Growth Fund–Retirement Class

TILRX

0.73%/0.73%

3/31/2006

-5.61%

3.99%

15.35%

2.03%

N/A

3.30%

Large-Cap Growth Fund–Retail Class

TIRTX

0.90%/0.90%

3/31/2006

-5.68%

3.78%

15.30%

2.03%

N/A

3.32%

Large-Cap Growth Fund–Premier Class

TILPX

0.63%/0.63%

9/30/2009

-5.68%

4.05%

15.51%

2.20%

N/A

3.49%

-4.02%

5.76%

17.50%

2.87%

N/A

N/A

Russell 1000 Growth Index

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

Amazon.com Inc.

Materials

Walt Disney Co.

Industrials

Monsanto Co.

Financials

Top Detracting Securities

Top Detracting Sectors

National Oilwell Varco Inc.

Consumer Staples

Nike Inc. Cl B

Information Technology

Wal-Mart Stores Inc.

Consumer Discretionary

Top 10 Holdings Issuer

n Consumer Staples n Health Care n Consumer Discretionary n Energy n Industrials n Information Technology n Materials n Financials n Telecommunications Services n Utilities n Contribution  n Detraction

% of Net Assets

Apple, Inc

7.4

Amazon.com, Inc

3.9

Intuit, Inc

3.8

Google, Inc (Class A)

3.0

Microsoft Corp

3.0

Monsanto Co

2.8

Starbucks Corp

2.5

Visa, Inc (Class A)

2.4

Walt Disney Co

2.3

Boeing Co

2.2

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The premier class began operations on September 30, 2009. Performance shown for periods prior to the inception of the premier class reflects the performance of the institutional class. Total returns have not been restated to reflect any expense differential between any of the share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: February 28, 2013. Please see the prospectus for details. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Growth stocks may be more volatile than value stocks due to their relatively high valuations, and growth investing may fall out of favor with investors. Please consider all risks carefully prior to investing. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5578

TIAA-CREF Fund & Account Commentary

TIAA-CREF Large-Cap Value Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights The TIAA-CREF Large-Cap Value Fund underperformed its benchmark, the Russell 1000 Value Index, in the second quarter of 2012. The Fund’s underperformance was attributable in large part to portfolio holdings that were levered to global economic growth and to underweights in defensive stocks that outperformed in the Utilities sector. We continued to find sectors such as Information Technology, Energy, Consumer Discretionary (specifically housing-related), and Materials (specifically chemical-related) attractively valued based on normalized earnings. Conversely, we do not see much value in many defensive domestic and demand-related sectors, such as Utilities and real estate investment trusts (REITs). The Fund’s underweight positions in these sectors hurt performance for the quarter, as market concerns about a slowdown in global growth caused a flight to safety. In terms of sector-specific attribution, Utilities detracted the most, primarily because the flight to safety benefited regulated utilities with high earnings visibility and limited foreign revenue and earnings, helping them outperform. Additionally, severe pressure on natural gas and coal prices caused independent power producers (IPPs) and hybrid utilities to lower their earnings estimates. Positions in Southern Company and Duke Energy, among the nation’s largest regulated utilities, detracted for the quarter. Economically sensitive Information Technology names also hurt performance. Hewlett Packard struggled because of its significant European exposure (over 30% of sales) and concerns about global PC sales. Additionally, semiconductor companies with a high degree of operating leverage, like ON Semiconductor and Freescale, performed poorly on global growth concerns. On the positive side, the fund’s investment in AOL contributed to Fund performance, as the company monetized its $1 billion patent portfolio and returned the cash to shareholders. In the Healthcare sector, TEVA, the world’s largest generic pharmaceutical company, underperformed. TEVA was under pressure after weakness in its

European business and patent concerns for a branded drug caused an earnings miss. We remain positive on TEVA based on its valuation, global competitive advantages, and highly capable new management team. Within Consumer Discretionary, an overweight in J.C. Penney detracted, as the company’s turnaround is taking longer than we anticipated. We remain constructive on J.C. Penney’s strategy and still believe the stock is attractively valued on a normalized earnings basis. Energy was a bright spot in the quarter, providing positive performance due to the Fund’s underweight in the overall sector and overweights in natural-gas‑related names such as Exco Resources and Southwestern Energy, which we think offer attractive value. In addition, the Fund underweighted independent energy company Apache Corp, because we believe it is unrealistic to assign full value to its Egyptian assets given the political uncertainty in that country.

Positioning Although the Fund remains positioned for a housing recovery, we have been lowering position sizes incrementally due to relatively high valuations. Domesticrelated investments, including housing, are currently viewed as relatively immune to global growth concerns and are therefore becoming relatively expensive based on normalized earnings. This is particularly true for RBOCs (regional bell operating companies), regulated utilities, areas of retail and REITs. Conversely, sectors tied to global growth, such as Energy, Materials, and Industrials, have underperformed and appear more attractively valued on a relative basis. This assessment of divergent valuations could be rewarded if stimulus policies implemented by China succeed and growth reaccelerates in the fourth quarter. In the meantime, we have been relatively restrained in moving into these “global growth” sectors due to earnings revisions and uncertainty in Europe. If, following second-quarter earnings, there is more clarity regarding European fiscal policy, we will seek to take advantage of opportunities that arise from this valuation disparity.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Large-Cap Value Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Large-Cap Value Fund–Institutional Class

TRLIX

0.47%/0.47%

10/1/2002

-3.06%

-0.53%

14.36%

-2.49%

N/A

7.88%

Large-Cap Value Fund–Retirement Class

TRLCX

0.72%/0.72%

10/1/2002

-3.14%

-0.82%

14.03%

-2.74%

N/A

7.63%

Large-Cap Value Fund–Retail Class

TCLCX

0.83%/0.83%

10/1/2002

-3.15%

-0.92%

14.02%

-2.71%

N/A

7.65%

Large-Cap Value Fund–Premier Class

TRCPX

0.62%/0.62%

9/30/2009

-3.06%

-0.68%

14.21%

-2.57%

N/A

7.84%

-2.20%

3.01%

15.80%

-2.19%

N/A

N/A

Russell 1000 Value Index

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

JPMorgan Chase & Co.

Energy

AOL Inc.

Consumer Staples

AT&T Inc.

Top Detracting Securities

Top Detracting Sectors

J.C. Penney Co. Inc.

Utilities

Teva Pharmaceutical Industries Ltd. ADS

Information Technology

Weatherford International Ltd.

Health Care

Top 10 Holdings Issuer

n Consumer Staples n Health Care n Consumer Discretionary n Energy n Industrials n Information Technology n Materials n Financials n Telecommunications Services n Utilities n Contribution  n Detraction

% of Net Assets

Exxon Mobil Corp

4.8

AT&T, Inc

3.8

General Electric Co

3.3

Pfizer, Inc

2.9

Chevron Corp

2.7

Wells Fargo & Co

2.6

Procter & Gamble Co

2.3

Johnson & Johnson

2.0

Occidental Petroleum Corp

2.0

Citigroup, Inc

1.6

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The premier class began operations on September 30, 2009. Performance shown for periods prior to the inception of the premier class reflects the performance of the institutional class. Total returns have not been restated to reflect any expense differential between any of the share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: February 28, 2013. Please see the prospectus for details. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. The Fund is subject to market risk and risks of value investing, where value stocks may remain undervalued for long periods of time. Please consider all risks carefully prior to investing. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5578

TIAA-CREF Fund & Account Commentary

TIAA-CREF Mid-Cap Growth Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights The TIAA-CREF Mid-Cap Growth Fund outperformed its benchmark, the Russell Midcap Growth Index, in the second quarter of 2012. During the quarter, investor attention turned toward the unresolved monetary and political issues facing the eurozone and to China’s continuing economic slowdown. These concerns were compounded by fears of the looming 2013 “fiscal cliff” facing the U.S. whereby automatic tax increases and spending cuts are scheduled to take effect unless there is a breakthrough in the current partisan Congressional stalemate. The combined effect of these forces was a retreat in global equity markets. The TIAA-CREF Mid-Cap Growth Fund held up somewhat better than its benchmark, with a general emphasis on companies whose growth prospects are less tied to European growth or political/fiscal outcomes in Washington, D.C. It is not uncommon for the Fund’s holdings to become acquisition targets, as the characteristics we use to identify attractive holdings can be similar to those sought by strategic buyers who are willing to pay for growth. This was the case in the second quarter, as two holdings were targeted for acquisition, adding to the Fund’s relative outperformance. The Information Technology, Industrials, and Consumer sectors were the largest positive contributors to Fund performance. Within Information Technology, an overweight in software company Ariba Inc. added value on news of its sale to SAP at a 20% premium. Within Industrials, a sharp rise in the shares of Portfolio Recovery Associates—which purchases and manages portfolios of defaulted and bankrupt consumer receivables—provided a substantial lift. Portfolio holding Cooper Industries contributed positively, as its shares rose on news of its acquisition by Eaton Corp., while avoiding benchmark holding Fastenal Co. also helped, as the company’s shares slipped 25%. These positive contributions were partly offset by a position in oil/gas services company KBR, Inc., whose shares fell with declining energy prices.

Within Consumer Staples, Hain Celestial Group, a natural/organic food products manufacturer, added to relative performance, as did SodaStream International. Within Consumer Discretionary, not owning Tempur-Pedic International proved beneficial, as its share price declined over 72% on concerns about competitive pressures and slowing demand for premium mattresses. Longtime portfolio holding PetSmart added to performance on strong fundamentals, highlighting consumers’ willingness to spend on their pets. Within Telecommunications, online gaming company Zynga detracted from performance, primarily due to the market’s negative association between Zynga and Facebook. Despite the pullback, Zynga offers the potential for higher growth and better margins than more traditional console/PC-based gaming companies. Within Healthcare, not owning shares in outperforming Edwards Lifesciences cost the portfolio, while an overweight in drug manufacturer Akorn contributed positively.

Positioning During the quarter, corporate management teams generally guided down earnings assumptions as negative pre-announcements dominated the landscape. At the margin, there appears to be little incentive for management teams to guide toward higher numbers in the near term, given the cloudy environment. Accordingly, we believe the opportunity for substantial market strength is somewhat limited in the near term but likely better in the fourth quarter when, at a minimum, clarity is established with respect to the domestic political landscape. In recent periods, it has not been uncommon for macroeconomic issues to become the main catalyst for stock moves. At such times, individual stock correlations can rise quickly, which eliminates, or at least hinders, the ability to deliver outperformance by picking superior individual stocks. However, these periods can provide an opportunity to realign the portfolio so that when correlations subside, the portfolio may be in a better position to outperform. We continue to be diligent in managing portfolio risks by trimming allocations to names that have advanced rapidly, using such opportunities to bolster other holdings that offer strong growth prospects but with less exposure to momentum factors.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Mid-Cap Growth Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Mid-Cap Growth Fund–Institutional Class

TRPWX

0.49%/0.49%

10/01/2002

-4.93%

-4.02%

19.77%

2.49%

N/A

10.84%

Mid-Cap Growth Fund–Retirement Class

TRGMX

0.74%/0.74%

10/01/2002

-4.96%

-4.27%

19.46%

2.22%

N/A

10.53%

Mid-Cap Growth Fund–Retail Class

TCMGX

0.85%/0.85%

10/01/2002

-4.96%

-4.27%

19.48%

2.24%

N/A

10.56%

Mid-Cap Growth Fund–Premier Class

TRGPX

0.64%/0.64%

9/30/2009

-4.95%

-4.13%

19.60%

2.40%

N/A

10.79%

-5.60%

-2.99%

19.01%

1.90%

N/A

N/A

Russell Mid Cap Growth Index

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

Ariba Inc.

Information Technology

Portfolio Recovery Associates Inc.

Industrials

Akorn Inc.

Consumer Discretionary

Top Detracting Securities

Top Detracting Sectors

KBR Inc.

Health Care

Edwards Lifesciences Corp.

Telecommunication Services

VeriFone Systems Inc.

Materials

Top 10 Holdings Issuer

n Consumer Staples n Health Care n Consumer Discretionary n Energy n Industrials n Information Technology n Materials n Financials n Telecommunications Services n Utilities n Contribution  n Detraction

% of Net Assets

iShares Russell Midcap Growth Index Fund

2.0

Intuit, Inc

1.7

Alexion Pharmaceuticals, Inc

1.6

Lorillard, Inc

1.4

Citrix Systems, Inc

1.3

Roper Industries, Inc

1.3

Teradata Corp

1.2

Concho Resources, Inc

1.2

Agilent Technologies, Inc

1.2

Flowserve Corp

1.2

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The premier class began operations on September 30, 2009. Performance shown for periods prior to the inception of the premier class reflects the performance of the institutional class. Total returns have not been restated to reflect any expense differential between any of the share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: February 28, 2013. Please see the prospectus for details. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Investments in small- to medium-sized corporations are more vulnerable to financial risks and other risks than larger corporations and may involve a higher degree of price volatility than investments in the general equity markets. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5580

TIAA-CREF Fund & Account Commentary

TIAA-CREF Mid-Cap Value Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights The TIAA-CREF Mid-Cap Value Fund lagged its benchmark, the Russell Midcap Value Index, in the second quarter of 2012. The Fund’s underperformance was largely explained by negative sector attribution. Overall, the Utilities, Energy, and Consumer Staples sectors detracted the most, more than offsetting favorable stock selection in Industrials and Materials. An overweight in Telecommunications and an underweight in Financials also detracted, but to a lesser degree. Overall, the Utilities, Energy, and Consumer Staples sectors detracted the most, more than offsetting favorable stock selection in Industrials and Materials. Several of the Fund’s Energy holdings were hurt by falling oil prices, which affected both oil-sensitive exploration and production (E&P) companies and oil‑service companies. E&P portfolio holdings that tend to be particularly sensitive to oil price dynamics had good operational performance, but this was not enough to offset the impact of declining oil prices. Within Utilities, highly regulated companies—which often serve as a proxy for bonds—benefited from a “flight to quality,” as investors sought refuge from equity market volatility. Utility companies in this specific subcategory were underrepresented in the Fund’s portfolio, detracting from performance. Tempering this negative impact were positive returns from holdings in regulated and “hybrid” utilities.

Corporation also helped. In addition, the Fund benefited from exposure to the Building Products industry, which was helped by improving sales of new and existing homes during the quarter. In Materials, major contributions came from overweighting specialty chemicals manufacturer Ashland Inc. and from not owning International Paper and U.S. Steel. A number of specialty chemicals companies held in the portfolio benefited in the quarter from lower feedstock costs and from company-specific pricing actions.

Positioning At the beginning of the second quarter, our outlook was for a mild cyclical recovery: U.S. GDP growth of 2%–2.5%, a weaker Europe that would nonetheless escape outright recession, and continued expansion in China, albeit at a slower pace. Accordingly, the Fund had a slight cyclical tilt, with overweights in Consumer Discretionary, Energy, Healthcare and Industrials, near market weights in Telecom, Technology, Consumer Staples, and Materials, and underweights in Utilities and Financials. What transpired during the quarter was a weakening of the U.S. recovery to approximately 1.5%–2.0% GDP growth at best; a much more difficult situation in Europe; and growth in China and other Asian economies that was not enough to offset weakness elsewhere in the globe.

In Consumer Staples, concern that hot, dry weather would harm the corn harvest boosted corn prices—a negative for corn purchasers such as chicken processor Sanderson Farms, an out-of-benchmark holding, and Ingredion, which the Fund overweighted.

The fragility of the global economy is evident in a stronger U.S. dollar versus the euro, lower prices for oil and other commodities, and difficulty in raising prices generally. We believe the beneficiaries of this economic backdrop will be U.S. consumers, who should see lower prices for gasoline prices and for imported goods. This should help the Consumer Cyclicals sector, where the Fund remains overweight.

On the positive side, within Industrials, the Transportation sector stood out, with solid contributions from owning airline United Continental Holdings (an out-of-benchmark position) and from avoiding transportation leasing company Ryder System. An underweight in industrial electrical equipment provider Eaton

Entering the third quarter, the Fund is also overweight in the more defensive sectors of Consumer Staples and Utilities, and close to market weight in Healthcare, Industrials, and Telecommunications. Underweighted sectors include Energy, Financials, Technology, and Materials.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Mid-Cap Value Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Mid-Cap Value Fund–Institutional Class

TIMVX

0.46%/0.46%

10/1/2002

-3.79%

-2.08%

17.09%

0.00%

N/A

11.32

Mid-Cap Value Fund–Retirement Class

TRVRX

0.71%/0.71%

10/1/2002

-3.81%

-2.32%

16.83%

-0.25%

N/A

11.01

Mid-Cap Value Fund–Retail Class

TCMVX

0.81%/0.81%

10/1/2002

-3.86%

-2.39%

16.84%

-0.20%

N/A

11.07

Mid-Cap Value Fund–Premier Class

TRVPX

0.61%/0.61%

9/30/2009

-3.80%

-2.22%

16.93%

-0.08%

N/A

11.27

-3.26%

-0.37%

19.92%

-0.13%

N/A

N/A

Russell Mid Cap Value Index

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

Edwards Lifesciences Corp.

Materials

Western Digital Corp.

Industrials

Ryland Group Inc.

Consumer Discretionary

Top Detracting Securities

Top Detracting Sectors

Tempur-Pedic International Inc.

Consumer Staples

Health Net Inc.

Utilities

HCP Inc.

Energy

Top 10 Holdings Issuer

n Consumer Staples n Health Care n Consumer Discretionary n Energy n Industrials n Information Technology n Materials n Financials n Telecommunications Services n Utilities n Contribution  n Detraction

% of Net Assets

Discover Financial Services

1.2

Goodrich Corp

1.1

Lorillard, Inc

1.1

Boston Properties, Inc

1.0

Sempra Energy

1.0

WR Grace & Co

1.0

Sunoco, Inc

1.0

Mead Johnson Nutrition Co

0.9

Centerpoint Energy, Inc

0.9

Spectra Energy Corp

0.9

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The premier class began operations on September 30, 2009. Performance shown for periods prior to the inception of the premier class reflects the performance of the institutional class. Total returns have not been restated to reflect any expense differential between any of the share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: February 28, 2013. Please see the prospectus for details. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Securities of medium-sized companies may be more volatile than those of larger companies. Securities issued by medium-sized companies also may be harder to buy or sell than those of larger, more established companies. Please consider all risks carefully prior to investing. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5577

TIAA-CREF Fund & Account Commentary

TIAA-CREF Real Estate Securities Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights

Positioning

Following a strong start to 2012, the TIAA-CREF Real Estate Securities Fund modestly trailed its benchmark, the FTSE NAREIT All Equity REIT Index, in the second quarter. Year-to-date as of June 30, 2012, the Fund remains ahead of the benchmark.

We expect fundamentals in the REIT market to continue to improve. As the overall economy generates slow, plodding growth, low interest rates should provide attractive borrowing opportunities. Positioning of the Fund will continue to focus on companies in which we have the highest degree of conviction. In general, the Fund remains overweight in REITs that have exposure to U.S. coastal markets and that own high-quality assets. These include long-term holdings in high-quality companies such as SL Green Realty and Boston Properties.

The second-quarter market environment was favorable for real estate investment trusts (REITs). The continued realization that we are in a long-term, slow-growth, low-interest-rate environment favored the income-producing nature of REITs. Investors also found stability in real-estate-related assets and the mostly domestic focus of real estate companies. Fund flows into the REIT sector were strong, primarily due to renewed interest from portfolio managers who were previously underweight the sector. Lower interest rates particularly benefited REITs that hold debt; as cash flows remained consistent, interest payments decreased, resulting in improved earnings. The REIT sector was not immune to the macroeconomic fears that prevailed in the second quarter. Companies such as ProLogis, Inc, a global industrial REIT with a portion of its portfolio in Europe, was the largest detractor from Fund performance, amid heightened anxiety over European sovereign debt problems. Another detractor, HHF Inc., which facilitates mortgage banking and financing, declined due to lower transaction volumes, despite low interest rates.

We also continue to overweight residential REITs, which offer long‑term growth potential, as it will take some time before new construction leads to a shift in market supply. If positive trends in the single-family housing market continue, we will continue to monitor homebuilders for indications that valuations are becoming more attractive. We maintain an underweight allocation to the suburban office sector due to unfavorable employment trends. If the economy were to accelerate significantly, we believe lower-quality, highly leveraged names would be positioned to lead a REIT market rally. Given the most recent employment and economic reports, this does not seem to be the likeliest scenario.

The largest positive contributor to Fund performance, Thomas Properties Group, continued to be a significant turnaround story. The company, which is not held in the benchmark, saw its share price appreciate a strong 18.91% in the quarter, bringing its year-to-date return to 64.46%. Earnings for this full-service office, retail, and residential firm rose as a result of management’s strategy to recapitalize the company’s balance sheet by selling several non-core assets and land parcels.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Real Estate Securities Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Real Estate Securities Fund–Institutional Class

TIREX

0.59%/0.57%

10/01/2002

3.66%

12.93%

32.87%

1.98%

N/A

11.42%

Real Estate Securities Fund–Retirement Class

TRRSX

0.83%/0.82%

10/01/2002

3.57%

12.70%

32.52%

1.78%

N/A

11.22%

Real Estate Securities Fund–Retail Class

TCREX

0.84%/0.84%

10/01/2002

3.61%

12.66%

32.54%

1.78%

N/A

11.23%

Real Estate Securities Fund–Premier Class

TRRPX

0.74%/0.72%

9/30/2009

3.62%

12.83%

32.73%

1.91%

N/A

11.39%

4.00%

12.48%

32.40%

2.60%

N/A

N/A

FTSE NAREIT All Equity REITs Index

Security Effects on Fund Performance

Sector Effects on Fund Performance

Top 10 Holdings

Top Contributing Securities

Top Contributing Sectors

Simon Property Group, Inc

Thomas Properties Group Inc. Ventas Inc. Kimco Realty Corp.

Retail Reits Diversified Reits Diversified Real Estate Activities Mortgage Reits Office Reits

American Tower Corp

5.0

Public Storage, Inc

4.9

Ventas, Inc

4.9

Boston Properties, Inc

4.8

Top Detracting Sectors

Equity Residential

4.8

Residential Reits Industrial Reits Specialized Reits Wireless Telecommunication Services Real Estate

AvalonBay Communities, Inc

4.6

Top Detracting Securities Entertainment Properties Trust Prologis Inc. HFF Inc. Cl A

Issuer

% of Net Assets 10.7

Health Care REIT, Inc

3.9

Federal Realty Investment Trust

3.3

iShares Dow Jones US Real Estate Index Fund

3.1

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The premier class began operations on September 30, 2009. Performance shown for periods prior to the inception of the premier class reflects the performance of the institutional class. Total returns have not been restated to reflect any expense differential between any of the share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: September 30, 2012. Please see the prospectus for details. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. The Fund is subject to the risks associated with real estate ownership, including fluctuations in property values, higher expensed or lower income than expected, and potential environmental problems and liability. Please consider all risks carefully prior to investing. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5580

TIAA-CREF Fund & Account Commentary

TIAA-CREF Small-Cap Equity Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights The TIAA-CREF Small-Cap Equity Fund underperformed its benchmark, the Russell 2000 Index, in the second quarter of 2012. A combination of factors—signs of weakening in the U.S. economic recovery, concern over the debt and fiscal crises in Greece, Spain and Italy, and a marked slowdown in Asia—fueled fears of a global recession and drove the quarter’s negative equity market returns. After a strong start to 2012, the Russell 2000 posted a 3.47% loss in the second quarter. Small-cap companies trailed larger companies, which fell 2.75%, as measured by the S&P 500 Index. Micro-caps continued to hold up better than both small-caps and large-caps, with the Russell Microcap Index posting a 2.19% loss. Typical of weaker market environments, defensive sectors such as Utilities, Healthcare, and Consumer Staples were more resilient than Energy, Materials, and Information Technology. Portfolio overweights in Information Technology and Industrials, along with underweights in Utilities, Healthcare, and Financials, exposed the Fund to the effects of the global economic slowdown. We reduced those exposures over the quarter, believing it will take more time for the weakening global growth scenario to unfold. We still see value in Information Technology and are mindful of high valuations in Utilities. Unlike the market weakness experienced in the third quarter of 2011, the most recent stumble appeared to be driven by companies with high international exposure (particularly to Europe), rather than by a flight to quality. In fact, within the Small-Cap Equity Fund’s investible universe, larger, higher-quality, liquid stocks performed poorly. This contributed to the Fund’s underperformance in the second quarter, as the Fund’s investment strategy favored those attributes. We believe this performance pattern was a product of several factors. First, compared with smaller companies, larger, higher-quality companies tend to have more revenue and earnings exposure to international markets. Second, larger

companies tend to be widely held, so fund outflows typically put pressure on their prices. Finally, outperformance by low-quality names was likely driven by “short covering,” whereby short sellers buy back the shorted stock in order to close out their positions. Low-quality companies tend to be highly shorted, and companies with high short interest performed well over the quarter. During the quarter, as volatility increased and the trading environment became more macro oriented, stock selection played a less prominent role. In terms of the Fund’s stock selection model, we saw weakness in a majority of components, such as valuation, quality, and sentiment. There was some strength in the earnings momentum and estimates revision components of the model, but not enough to offset headwinds in other areas.

Positioning The TIAA-CREF Small-Cap Equity Fund seeks attractive long-term returns by investing in equity securities of smaller domestic companies identified through a quantitative scoring model. We believe that strict adherence to a disciplined process can enhance predictability and produce good performance over time. The pillars of our framework are a fundamentally sound scoring model, strong portfolio construction, low-cost trading, and an attribution feedback system. Going forward, the Fund plans to maintain a balanced approach to weighting the model’s different performance factors. However, we have made changes to the factor model to account for the high correlation between valuation signals and the market’s ongoing “risk-on, risk-off” trading pattern. We will revisit these changes in the context of a more stable market environment. The Fund remains fairly sector-neutral, using modest sector positioning to account for the overall low-growth economic climate while continually evaluating positions as research indicates opportunities to add value.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Small-Cap Equity Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Small-Cap Equity Fund–Institutional Class

TISEX

0.53%/0.53%

10/01/2002

-5.10%

-4.46%

17.75%

-0.20%

N/A

9.39%

Small-Cap Equity Fund–Retirement Class

TRSEX

0.78%/0.78%

10/01/2002

-5.23%

-4.74%

17.42%

-0.44%

N/A

9.08%

Small-Cap Equity Fund–Retail Class

TCSEX

0.92%/0.92%

10/01/2002

-5.26%

-4.84%

17.38%

-0.46%

N/A

9.16%

Small-Cap Equity Fund–Premier Class

TSRPX

0.68%/0.68%

9/30/2009

-5.17%

-4.66%

17.55%

-0.29%

N/A

9.33%

-3.47%

-2.08%

17.80%

0.54%

N/A

N/A

Russell 2000 Index

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

Questcor Pharmaceuticals Inc.

Energy

NuVasive Inc.

Consumer Staples

Liquidity Services Inc.

Telecommunication Services

Top Detracting Securities

Top Detracting Sectors

Wellcare Health Plans Inc.

Consumer Discretionary

Ezcorp Inc. Cl A

Financials

ViroPharma Inc.

Information Technology

Top 10 Holdings Issuer

n Consumer Staples n Health Care n Consumer Discretionary n Energy n Industrials n Information Technology n Materials n Financials n Telecommunications Services n Utilities n Contribution  n Detraction

% of Net Assets

ProAssurance Corp

0.8

MAXIMUS, Inc

0.8

Extra Space Storage, Inc

0.8

SVB Financial Group

0.7

Advisory Board Co

0.7

LaSalle Hotel Properties

0.7

Commvault Systems, Inc

0.7

Equity Lifestyle Properties, Inc

0.7

WellCare Health Plans, Inc

0.7

Post Properties, Inc

0.6

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The premier class began operations on September 30, 2009. Performance shown for periods prior to the inception of the premier class reflects the performance of the institutional class. Total returns have not been restated to reflect any expense differential between any of the share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: February 28, 2013. Please see the prospectus for details. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Investments in small- to medium-sized corporations are more vulnerable to financial risks and other risks than larger corporations and may involve a higher degree of price volatility than investments in the general equity markets. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5579

TIAA-CREF Fund & Account Commentary

TIAA-CREF Social Choice Equity Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights

Positioning

The TIAA-CREF Social Choice Equity Fund underperformed its benchmark, the Russell 3000 Index, in the second quarter of 2012.

The Social Choice Equity Fund uses a quantitative approach to attempt to replicate, to the extent possible given the screened universe, the risk characteristics of its domestic equity benchmark, the Russell 3000 Index. Currently, companies in the universe of stocks represented by the MSCI USA IMI ESG Index—a U.S. index that includes companies with high ESG ratings relative to their sector peers—are deemed as meeting the Fund’s screening criteria.

In the second quarter, the Energy, Consumer Discretionary, and Telecommunication Services sectors detracted the most from the Fund’s performance. In Telecommunication Services, detractors included names that were not held due to the Fund’s environmental, social, and governance (ESG) screening criteria, such as AT&T and Verizon. As equity markets rotated to favor higher-yielding stocks, both of these companies outperformed others in their sector. In the Consumer Discretionary sector, the exclusion of Walmart and Amazon detracted from performance. On the positive side, the Financials and Utilities sectors made the strongest contributions to performance. The fund is unable to own several of the major diversified financial services companies due to ESG concerns. In the second quarter, the exclusion of several of these companies, such as JPMorgan Chase, Citigroup, and Goldman Sachs, contributed positively to performance.

This MSCI index is constructed through a “best-in-class” approach that targets the highest ESG-rated companies making up 50% of the adjusted market capitalization in each sector of the underlying index. Only companies with an ESG rating of “B” or above are eligible for inclusion, and these companies are further ranked in comparison to their sector peers. Each quarter, MSCI updates companies’ ESG profiles and ratings. Quarterly adjustments in companies’ ESG ratings and sector rankings result in both additions and deletions to the index. The Fund incorporates these adjustments as practicable, given market conditions and with consideration to market impact. Typically, the MSCI USA IMI ESG Index has between 1,200 and 1,400 constituents, and of those, the portfolio generally holds between 700–1,000 names.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Social Choice Equity Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Social Choice Equity Fund–Institutional Class

TISCX

0.19%/0.19%

7/1/1999

-4.59%

0.94%

15.52%

0.38%

5.80%

2.23%

Social Choice Equity Fund–Retirement Class

TRSCX

0.44%/0.44%

10/1/2002

-4.62%

0.71%

15.25%

0.14%

5.49%

2.00%

Social Choice Equity Fund–Retail Class

TICRX

0.50%/0.50%

3/31/2006

-4.63%

0.59%

15.27%

0.20%

5.70%

2.15%

Social Choice Equity Fund–Premier Class

TRPSX

0.34%/0.34%

9/30/2009

-4.60%

0.79%

15.32%

0.28%

5.75%

2.19%

-3.15%

3.84%

16.73%

0.39%

5.81%

N/A

Russell 3000 Index

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

JPMorgan Chase & Co.

Financials

Citigroup Inc.

Utilities

Biogen Idec Inc.

N/A

Top Detracting Securities

Top Detracting Sectors

AT&T Inc.

Energy

Verizon Communications Inc.

Consumer Discretionary

Wal-Mart Stores Inc.

Telecommunications Services

Top 10 Holdings Issuer

% of Net Assets

n Consumer Staples n Health Care n Consumer Discretionary n Energy n Industrials n Information Technology n Materials n Financials n Telecommunications Services n Utilities

International Business Machines Corp

1.8

Johnson & Johnson

1.7

Procter & Gamble Co

1.5

Google, Inc (Class A)

1.5

Berkshire Hathaway, Inc (Class B)

1.4

Intel Corp

1.3

Merck & Co, Inc

1.3

Oracle Corp

1.2

PepsiCo, Inc

1.2

n Contribution  n Detraction

Abbott Laboratories

1.1

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The inception date for the premier class is September 30, 2009, the retail share class is March 31, 2006, and the retirement share class is October 1, 2002. Performance shown prior to the inception of the share classes is based on the performance of the fund’s Institutional Class which began operations on July 1, 1999. Performance has not been restated to reflect the higher expenses of the respective share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: February 28, 2013. Please see the prospectus for details. Portfolios within each strategy are subject to certain risks, such as market and investment-style risks. Please consider all risks carefully prior to investing. Because its social screens exclude some investments, the fund may not be able to take advantage of the same opportunities or market trends as funds that do not use such criteria. Investments in small- to medium-sized corporations are more vulnerable to financial risks and other risks than larger corporations and may involve a higher degree of price volatility than investments in the general equity markets. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5577

TIAA-CREF Fund & Account Commentary

TIAA-CREF Bond Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights In the second quarter of 2012, the TIAA-CREF Bond Fund underperformed its benchmark, the Barclays U.S. Aggregate Bond Index. Bond markets realized positive returns overall during the quarter, as renewed fears over Europe’s ongoing sovereign debt crisis and mounting evidence of economic slowing in the U.S. and Asia drove investors toward the safety of high‑quality fixed-income assets. U.S. Treasury yields fell across all maturities, with declines at the long end of the yield curve resulting in an 11.8% total return for 20+ year Treasuries. The margin of incremental yield, or spread, between lower-quality bonds and Treasuries widened during the quarter, limiting returns for such credits. However, despite growing recognition of looming economic challenges, demand for certain types of credit-sector bonds, including high-yield corporate bonds and structured securities, remained robust—a reflection of investors’ ongoing search for yield in the persistently low interest-rate environment and an improved ability of “spread‑sector” credit instruments to perform even under periods of economic or financial stress. During the quarter, the Bond Fund’s performance was hurt by portfolio positioning intended to allow the Fund to benefit on a relative basis from an increase in medium- and long-term interest rates. While the negative effect of this positioning was not particularly large, it was enough to more than outweigh favorable results from holdings in corporate bonds and structured securities. Positive contributions from these sectors were driven primarily by effective security selection, as the Fund emphasized higher-quality assets that provided incremental yields over Treasuries but were somewhat insulated from concerns over a weakening economic environment. Holdings of highestquality commercial mortgage-backed securities, non-agency mortgage-backed securities, and collateralized loan obligations (consisting of securitized pools of high-yield leveraged loans) all performed well, helped by a lack of net new supply that supported strong investor demand for such securities.

The Fund’s overweight in corporate bonds increased during the quarter, as we added to positions in investment-grade and, to a lesser extent, high-yield and emerging markets bonds. In the corporate sector, an emphasis on longer-duration bonds relative to the benchmark and favorable selection of certain bank-issued bonds added to performance. Additionally, a preference for recently issued securities worked to the Fund’s advantage, as liquidity and demand for secondary market securities declined. For the trailing one-year period, the Fund outperformed the benchmark, reflecting prudent security selection in volatile market conditions and the outperformance of spread-sector securities over the period.

Positioning Despite prevailing macroeconomic headwinds, we continue to find value in U.S. corporate and structured securities, and we expect such securities to perform well under a range of economic scenarios. While this represents a somewhat aggressive posture relative to a benchmark that is more heavily weighted toward Treasuries, we have balanced this positioning by emphasizing higher-quality assets within spread sectors and increasing the Fund’s exposure to certain types of bonds, such as mortgage-backed securities, with the potential to outperform under weaker economic conditions—particularly if the Federal Reserve were to engage in another round of quantitative easing. While positioning across the yield curve has not benefited the Fund in a declining rate environment, we continue to maintain overall portfolio duration that is slightly shorter than the benchmark’s. With current Treasury yields already reflecting investor expectations for continued weakening and the possibility of economic shocks, we expect further rate declines—if they occur—to have a more muted impact on portfolio performance. Given the potential for rapid changes in investor sentiment in the event that global economic concerns ease, we believe a more defensive posture with respect to interest rates is warranted.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Bond Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Bond Fund–Institutional Class

TIBDX

0.33%/0.33%

7/1/1999

1.89%

7.61%

7.22%

6.39%

5.45%

6.05%

Bond Fund–Retirement Class

TIDRX

0.58%/0.58%

3/31/2006

1.90%

7.35%

6.95%

6.14%

5.29%

5.92%

Bond Fund–Retail Class

TIORX

0.52%/0.52%

3/31/2006

1.91%

7.33%

6.98%

6.23%

5.35%

5.96%

Bond Fund–Premier Class

TIDPX

0.48%/0.48%

9/30/2009

1.95%

7.44%

7.10%

6.32%

5.42%

6.02%

2.06%

7.47%

6.93%

6.79%

5.63%

N/A

Barclays U.S. Aggregate Bond Index

Top 10 Holdings

Sector Effects on Fund Performance Top Contributing Sectors Corporates Govt Rel.–Credit CMBS

Top Detracting Sectors Treasuries Cash Others

Issuer

n Treasuries n Govt Rel.–Agency n Govt Rel.–Credit n Corporates n MBS n ABS n CMBS n Municipals n Covered Bonds n Cash n Others n Contribution  n Detraction

% of Net Assets

FNMA 3.500%, 07/25/42

4.1

FNMA 5.500%, 07/25/42

4.0

FNMA 4.000%, 12/01/39

3.5

U.S. Treasury Note 0.375%, 06/15/15

2.7

U.S. Treasury Note 0.750%, 06/30/17

2.1

FNMA 6.000%, 07/25/42

2.1

FNMA 4.500%, 04/01/41

1.7

U.S. Treasury Bond 5.375%, 02/15/31

1.6

GNMA 4.000%, 01/20/42

1.3

U.S. Treasury Note 1.750%, 05/15/22

1.1

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The inception date for the premier class is September 30, 2009, the retail and retirement share classes is March 31, 2006. Performance shown prior to the inception of the respective share classes is based on the performance of the fund’s institutional class which began operations on July 1, 1999. Performance has not been restated to reflect the higher expenses of the respective share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: September 30, 2012. Please see the prospectus for details. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Fixed-income securities are subject to interestrate risk. When interest rates rise, the value of fixed-income securities generally declines. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5578

TIAA-CREF Fund & Account Commentary

TIAA-CREF Bond Plus Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights In the second quarter of 2012, the TIAA-CREF Bond Plus Fund outperformed its benchmark, the Barclays U.S. Aggregate Bond Index. Bond markets realized positive returns overall during the quarter, as renewed fears over Europe’s ongoing sovereign debt crisis and mounting evidence of economic slowing in the U.S. and Asia drove investors toward the safety of high‑quality fixed-income assets. U.S. Treasury yields fell across all maturities, with particularly pronounced declines at the long end of the yield curve resulting in an 11.8% total return for 20+ year Treasuries. The margin of incremental yield, or spread, between lower-quality bonds and Treasuries widened during the quarter, limiting returns for such credits. However, despite growing recognition of looming economic challenges, demand for certain types of credit-sector bonds, including high-yield corporate bonds and structured securities, remained strong—a reflection of investors’ ongoing search for yield in the persistently low interest-rate environment and an improved ability of “spread‑sector” credit instruments to perform even under periods of economic or financial stress. Despite maintaining an overweight position in spread-sector credits and an underweight in Treasuries, the Bond Plus Fund nonetheless outperformed its benchmark through careful security selection within sectors and timely trimming of risk during the quarter. The negative effects of the Fund’s underweight in Treasuries was mitigated by a concentration of holdings in longer-dated Treasury and agency securities, which benefited from yield declines. During the quarter, an underweight in investment-grade bonds was closed with a corresponding increase to the underweight in agency mortgage-backed securities (MBS), as spreads widened amid heightened volatility. A preference for shorter‑duration, higher-yielding securities in out-of-benchmark, non-agency MBS and leveraged loans proved effective in capturing incremental yields.

Additionally, the Fund benefited from a bias favoring U.S. high-yield bonds over emerging‑market corporate bonds, as emerging markets were hurt by evidence of a marked economic slowdown in China and elsewhere in Asia. For the trailing one-year period, the Fund outperformed the benchmark, reflecting prudent security selection through volatile market conditions and the outperformance of spread-sector securities over the period.

Positioning Despite prevailing macroeconomic headwinds, we continue to find value in U.S. corporate and structured securities, and we expect such securities to perform well under a range of economic scenarios. The lack of net new supply of certain types of structured securities, including commercial mortgage backed securities (CMBS) and non-agency MBS, is likely to support continued investor interest in these securities. On this basis of these technical and fundamental factors, we maintain active exposures to these sectors. With respect to portfolio duration, we have moved to a shorter posture across the yield curve, representing an overall position that is approximately 10% shorter than the benchmark’s. While considering that the recent extension of the Fed’s “Operation Twist” program may allow for additional yield curve flattening, we believe that further downward extension of interest rates is likely to be limited. At the same time, we are mindful of the potential for rapid changes in market sentiment that may quickly lead to a back-up in interest rates, and have taken on more defensive interest-rate positioning to reflect this concern.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Bond Plus Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Bond Plus Fund–Institutional Class

TIBFX

0.37%/0.35%

3/31/2006

2.24%

8.11%

8.85%

6.26%

N/A

5.91%

Bond Plus Fund–Retirement Class

TCBRX

0.62%/0.60%

3/31/2006

2.18%

7.73%

8.58%

6.00%

N/A

5.66%

Bond Plus Fund–Retail Class

TCBPX

0.59%/0.59%

3/31/2006

2.17%

7.77%

8.58%

6.06%

N/A

5.73%

Bond Plus Fund–Premier Class

TBPPX

0.52%/0.50%

9/30/2009

2.20%

7.94%

8.70%

6.17%

N/A

5.84%

2.06%

7.47%

6.93%

6.79%

N/A

N/A

Barclays U.S. Aggregate Bond Index

Top 10 Holdings

Sector Effects on Fund Performance Top Contributing Sectors Corporates ABS MBS

Top Detracting Sectors Treasuries Cash Govt Rel.–Agency

Issuer

n Treasuries n Govt Rel.–Agency n Govt Rel.–Credit n Corporates n MBS n ABS n CMBS n Municipals n Covered Bonds n Cash n Others n Contribution  n Detraction

% of Net Assets

FNMA 4.000%, 07/25/42

3.4

U.S. Treasury Note 0.750%, 06/30/17

2.3

U.S. Treasury Note 2.375%, 05/31/18

1.8

U.S. Treasury Bond 4.375%, 05/15/41

1.7

FNMA 3.500%, 07/25/42

1.6

GNMA 4.000%, 07/15/42

1.3

FNMA 5.000%, 07/25/42

1.3

U.S. Treasury Bond 5.375%, 02/15/31

1.1

FNMA 3.000%, 07/25/27

1.0

FNMA 4.500%, 07/25/42

1.0

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The premier class began operations on September 30, 2009. Performance shown for periods prior to the inception of the premier class reflects the performance of the institutional class. Total returns have not been restated to reflect any expense differential between any of the share classes. If the expense differential had been reflected, performance for these periods would have been lower. The net annual expense ratio represents expenses after reimbursement and waivers, while the gross annual expense ratio represents expenses without any reimbursements and waivers. These expense reimbursement arrangements will continue through at least September 30, 2012 and can only be changed with approval of the Board of Trustees. Without these waivers and reimbursements, the Fund expenses would be higher and its performance would have been lower. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Fixed-income securities are subject to interestrate risk. When interest rates rise, the value of fixed-income securities generally declines. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5579

TIAA-CREF Fund & Account Commentary

TIAA-CREF High Yield Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights In the second quarter of 2012, the TIAA-CREF High Yield Fund outperformed its benchmark, the BofA Merrill Lynch BB-B US Cash Pay High Yield Constrained Index. The second quarter was somewhat of a mirror image of the first quarter, as renewed fears over Europe’s ongoing sovereign debt crisis and mounting evidence of economic slowing in the U.S. and Asia reversed the optimism that had prevailed in the first three months of the year. Within high-yield markets, higher‑quality BB-rated bonds outperformed lower-quality B-rated and C-CCC‑rated credits, in contrast to the clear outperformance of C-CCC’s in the first quarter. High-yield mutual fund flows also reversed, and primary issuance declined from an all-time high of $113 billion in the first quarter to $63 billion in the second. This change in the investment climate was consistent with the “risk on, risk off” pattern of the past few years, with investors alternately bidding up and selling off risk assets, depending largely on perceptions of the outlook for the European debt crisis and its impact on the U.S. and global economies. Despite a U.S. economic recovery often cited as anemic and below historical trends, GDP growth of 1% or more has been sufficient for issuers of high-yield debt to avoid higher default rates. Compared to a long-term average global default rate of 4.8%, the default rate for U.S. high-yield issuers has been in the 2%–3% range in recent years, and base case forecasts suggest it will remain stable over the next year. Although average bond prices are currently above par, thereby limiting further price appreciation, high yield securities can still be viewed as attractive based on the incremental yields they offer—particularly given the relatively modest credit risk evidenced by their default rates. Despite the low levels of defaults, high-yield spreads are far from their historical lows, and in fact are in line with their long-term averages.

While the Fund’s performance benefited from an overweight in BB’s and a somewhat longer duration as Treasury yields declined during the quarter, the primary driver of the Fund’s excess return was credit selection. The top three contributors to outperformance were overweights in AMC Entertainment and Lyondell Chemical, and an underweight in Nextel International. AMC bonds benefited from news that the company was being sold to Dalian Wanda Group, which is expected to deleverage the balance sheet from the levels of the current private equity owners. Lyondell’s financial performance remained impressive, with positive cash flow that has improved the company’s already strong liquidity. Our decision not to own bonds of Nextel International also helped performance, as those securities traded down during the period due to increased competition and a delayed technology conversion. Detracting from second-quarter returns was a position in Arch Coal, a global coal producer that has faced declining demand and falling prices due to warm weather and abundant natural gas.

Positioning Looking forward, we anticipate a domestic economic recovery that may continue to disappoint, while investors are likely to continue shifting their risk appetites, driven by ongoing uncertainty over the European debt crisis. The Fund enters the third quarter overweight BB rated issues and with out-of-benchmark holdings of C-CCC’s at the low end of the range historically held. While cash was under 2% for much of the first half of 2012, it climbed during June and ended the quarter at nearly 4%. This occurred as we found better opportunities to sell than to buy during the month, in part because primary issuance was muted. As always, we will remain disciplined as we seek investment opportunities that represent long-term value for Fund shareholders.

TIAA-CREF Fund & Account Commentary

TIAA-CREF High Yield Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

High Yield Fund–Institutional Class

TIHYX

0.40%/0.40%

3/31/2006

2.10%

8.08%

14.26%

8.34%

N/A

8.14%

High Yield Fund–Retirement Class

TIHRX

0.65%/0.65%

3/31/2006

2.14%

7.81%

13.93%

8.08%

N/A

7.86%

High Yield Fund–Retail Class

TIYRX

0.59%/0.59%

3/31/2006

2.14%

7.88%

14.02%

8.18%

N/A

8.02%

High Yield Fund–Premier Class

TIHPX

0.55%/0.55%

9/30/2009

2.17%

8.02%

14.14%

8.27%

N/A

8.09%

1.94%

7.07%

14.27%

7.65%

N/A

N/A

Bank of America Merrill Lynch BB/B Cash Pay Issuer Constrained Index

Issuer Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top 10 Holdings

Top Contributing Issuers

Top Contributing Sectors

DISH DBS Corp 4.625%, 07/15/17

1.3

AMC Entertainment Lyondell Basell Ind. NII Capital Corp

Telecom – Wireless Theaters & Entertainment Energy – Exploration & Production Media – Cable Chemicals

CHS 8.000%, 11/15/19

1.1

HCA, Inc 7.500%, 02/15/22

1.0

DineEquity, Inc 9.500%, 10/30/18

0.9

AMC Entertainment, Inc 8.750%, 06/01/19

0.8

Top Detracting Sectors

Arch Coal, Inc 05/16/18

0.8

Aerospace/Defense Metals/Mining Excluding Steel

Ford Motor Co 7.450%, 07/16/31

0.8

Scientific Games Corp 9.250%, 06/15/19

0.7

Tomkins LLC 9.000%, 10/01/18

0.7

Post Holdings, Inc 7.375%, 02/15/22

0.7

Top Detracting Issuers Ford Motor Credit Verso Paper Corp. Arch Coal Inc.

Auto Finance Forestry/Paper Gas Distribution

Issuer

% of Net Assets

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The premier class began operations on September 30, 2009. Performance shown for periods prior to the inception of the premier class reflects the performance of the institutional class. Total returns have not been restated to reflect any expense differential between any of the share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: September 30, 2012. Please see the prospectus for details. Shares held less than 60 calendar days may be subject to a 2.00% redemption fee. Please see the prospectus for details. The fund performance shown does not reflect the deduction of this fee. Had the fee been deducted, returns would have been lower. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Fixed-income securities are subject to interestrate risk. When interest rates rise, the value of fixed-income securities generally declines. High-yield fixed-income securities, also known as “junk bonds,” are considered speculative, involve greater risk for default and tend to be more volatile than investment-grade fixed-income securities. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5579

TIAA-CREF Fund & Account Commentary

TIAA-CREF Inflation-Linked Bond Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights

Positioning

In the second quarter of 2012, the TIAA-CREF Inflation-Linked Bond Fund realized a positive return that was slightly below that of its benchmark, the Barclays U.S. Treasury Inflation-Protected Securities (TIPS) Index. This modest degree of underperformance was almost entirely attributable to Fund expenses.

We consider inflation-protected bond yields to be at reasonable levels, and we maintain a somewhat favorable outlook for TIPS relative to nominal Treasuries of similar duration. While Fed activity in the TIPS market has contributed to performance, it has also led to some challenging market conditions from both a pricing and supply perspective. Therefore, we continue to monitor TIPS pricing versus nominal Treasuries, with an eye on balancing portfolio composition and duration characteristics with trading costs.

Amid continuing fiscal concerns in Europe and a slowdown in key U.S. economic indicators, investors generally favored higher-quality segments of the bond market. Longer-dated nominal Treasuries benefited the most from this flight to safety, as interest rates fell and the back end of the yield curve flattened noticeably over the quarter. The Barclays U.S. 20+ Year Treasury Bond Index, for example, returned 11.80% in the second quarter, as long-term yields were pushed lower. Giving further support to longer-dated Treasuries was the continuation of the Federal Reserve’s “Operation Twist” program, whereby the Fed is attempting to keep long-term rates low by selling short-term securities and using the proceeds to purchase longer-term Treasury debt. Inflation-protected securities participated in the second quarter’s flight to safety, with the Barclays U.S. TIPS Index posting a gain of 3.15%—slightly less than the 3.39% return of 7- to 10-year nominal Treasuries, but ahead of the 2.06% return of the broad Barclays U.S. Aggregate Bond Index. TIPS also outperformed most other bond market segments over the trailing 12-month period ended June 30, 2012, with an 11.66% return Inflation expectations came down during the second quarter, due in large part to a 17% drop in crude oil prices. Although downward revisions to inflation expectations can have a negative impact on TIPS performance, this was more than offset by the beneficial effects of declining interest rates during the period. The Fund’s portfolio maintains overall portfolio characteristics that are largely in line with those of its TIPS-based benchmark. As a result, Fund performance has tended to closely track the benchmark’s return over time.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Inflation-Linked Bond Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inflation-Linked Bond Fund–Institutional Class

TIILX

0.29%/0.29%

Inflation-Linked Bond Fund–Retirement Class

TIKRX

0.54%/0.54%

Inflation-Linked Bond Fund–Retail Class

TCILX

0.47%/0.47%

Inflation-Linked Bond Fund–Premier Class

TIKPX

0.44%/0.44%

Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index

Latest Quarter

1 Year

3 Year

5 Year

10 Year

10/1/2002

3.01%

11.40%

9.32%

8.04%

N/A

6.34%

3/31/2006

2.92%

11.12%

9.05%

7.77%

N/A

6.20%

10/1/2002

2.92%

11.15%

9.10%

7.86%

N/A

6.18%

9/30/2009

2.97%

11.25%

9.15%

7.94%

N/A

6.29%

3.15%

11.66%

9.63%

8.44%

N/A

N/A

Inception

Since Inception

Top 10 Holdings Issuer

% of Net Assets

U.S. Treasury Inflation Indexed Bonds 1.125%, 01/15/21

4.8

U.S. Treasury Inflation Indexed Bonds 0.625%, 07/15/21

4.6

U.S. Treasury Inflation Indexed Bonds 3.875%, 04/15/29

4.5

U.S. Treasury Inflation Indexed Bonds 2.375%, 01/15/25

4.5

U.S. Treasury Inflation Indexed Bonds 1.250%, 07/15/20

4.4

U.S. Treasury Inflation Indexed Bonds 0.125%, 04/15/16

4.4

U.S. Treasury Inflation Indexed Bonds 0.125%, 01/15/22

4.3

U.S. Treasury Inflation Indexed Bonds 2.000%, 07/15/14

3.6

U.S. Treasury Inflation Indexed Bonds 3.625%, 04/15/28

3.6

U.S. Treasury Inflation Indexed Bonds 2.125%, 02/15/41

3.4

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The inception date for the premier class is September 30, 2009 and the retirement share class is March 31, 2006. Performance shown prior to the inception of the share classes is based on the performance of the fund’s institutional class which began operations on October 1, 2002. Performance has not been restated to reflect the higher expenses of the respective share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: September 30, 2012. Please see the prospectus for details. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Fixed-income securities are subject to interestrate risk. When interest rates rise, the value of fixed-income securities generally declines. Investments in inflation-linked securities can be affected by changes in investors’ inflation expectations or changes in real interest rates. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5578

TIAA-CREF Fund & Account Commentary

TIAA-CREF Money Market Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights

Positioning

The TIAA-CREF Money Market Fund realized flat returns during the second quarter of 2012, as short-term interest rates remained at extremely low levels. The slight recovery in rates that began in the first quarter continued, due to the increased supply of Treasury Bills resulting from the Fed’s ongoing sale of short-term securities as part of its “Operation Twist” program.

We remain committed to holding—and will attempt to continue purchasing— longer-dated, floating-rate government agency paper (with 18-month to 2-year maturities) in an effort to capture slightly higher yields.

The Federal Reserve continues to forecast that short-term rates—reflected in the targeted federal funds rate—will remain at or near 0% through the end of 2014, with recent economic concerns potentially extending this time frame into 2015. Commercial paper prices continue to track government debt closely, thanks to a more than $1 trillion drop in outstanding issuance since mid-2007. Industrial corporations continue to hoard cash and have taken advantage of the low interest-rate environment by issuing longer-maturity debt. Market pressure ramped up in Europe during the quarter, with shocks from political events in Greece and from concerns related to the Spanish banking sector and growth prospects in Italy. The Money Market Fund continues to hold no European sovereign debt and has very limited debt exposure to European financial institutions, the only instance of which is an investment in securities issued by U.K.-based Standard Chartered Bank. While the bank is headquartered in Europe, a vast majority of its operations and profits are derived outside of Europe. Overall, we remain cautious about the ongoing difficulties facing this region and will consider additional investments there only after diligent analyst scrutiny. The Money Market Fund continues to invest in a diversified portfolio of high‑quality money market securities, seeking sources of incremental yield in select sectors while remaining within liquidity rules that govern money market fund composition.

Recent news reports suggest that a regulatory proposal affecting money market funds may be voted on by the Securities and Exchange Commission in the near future. A variety of potential measures are being considered, including a floating net asset value (NAV), redemption request stipulations, and/or some form of capital buffer to protect against potential losses. Because several different proposals with a range of implications are possible, we will maintain flexibility in the Fund’s portfolio to ensure that we are able to respond effectively to this or other regulatory changes that may be in store. Given the persistence of the low interest-rate environment, the Fund continues to utilize fee waivers to avoid realizing negative returns. We anticipate that current fee waivers will remain in place.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Money Market Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Money Market Fund–Institutional Class

TCIXX

0.15%/0.15%

7/1/1999

0.01%

0.02%

0.09%

1.21%

2.01%

2.62%

Money Market Fund–Retirement Class

TIEXX

0.40%/0.40%

3/31/2006

0.00%

0.00%

0.00%

1.05%

1.91%

2.54%

Money Market Fund–Retail Class

TIRXX

0.39%/0.39%

3/31/2006

0.00%

0.00%

0.01%

1.11%

1.96%

2.58%

Money Market Fund–Premier Class

TPPXX

0.30%/0.30%

9/30/2009

0.00%

0.00%

0.03%

1.17%

1.99%

2.61%

0.01%

0.02%

0.03%

0.91%

1.60%

N/A

iMoneyNetFund Report Averages–All Taxable 7-day 7-day 7-day 7-day 7-day 7-day 7-day 7-day

current annualized yield 0.05% as of 6/30/12 (Institutional) effective annualized yield 0.05% as of 6/30/12 (Institutional) current annualized yield 0.00% as of 6/30/12 (Retirement) effective annualized yield 0.00% as of 6/30/12 (Retirement) current annualized yield 0.00% as of 6/30/12 (Premier) effective annualized yield 0.00% as of 6/30/12 (Premier) current annualized yield 0.00% as of 6/30/12 (Retail) effective annualized yield 0.00% as of 6/30/12 (Retail)

Beginning August 18, 2009, part or all of the service fee on the Retirement Class of the TIAA-CREF Money Market Fund is being voluntarily waived. Without this waiver, current and effective annualized yields and total returns would have been lower. This 12b-1 waiver may be discontinued at any time without notice. The TIAA-CREF Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the fund. The current yield more closely reflects the fund’s current earnings than does the total return. * The performance data quoted represents past performance, and is no guarantee of future results. Your returns and the principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. The inception date for the premier class is September 30, 2009, the retail and retirement share classes is March 31, 2006. Performance shown prior to the inception of the share classes is based on the performance of the fund’s institutional class which began operations on July 1, 1999. Performance has not been restated to reflect the higher expenses of the respective share classes. If the expense differential had been reflected, performance for these periods would have been lower. A contractual arrangement is in place that limits certain fees and/or expenses. Had fees/expenses not been limited (“capped”), currently or in the past, returns would have been lower. Expense Cap Expiration Date: September 30, 2012. Please see the prospectus for details. As with any investment, money market funds are subject to a number of risks, including all or some of the following: Company Risk, the risk that the financial condition of a company may deteriorate, causing a decline in the value of the securities it issues; Credit Risk, the risk that an issuer of bonds may default; Current Income Risk, the risk that the income an annuity account receives may unexpectedly fall as a result of a decline in interest rates; Extension Risk, the risk that a security’s duration will lengthen, due to a decrease in prepayments caused by rising interest rates; Income Volatility Risk, the risk that the income from a portfolio of securities may decline in certain interest rate environments; Interest Rate Risk, the risk that interest payments of debt securities may become less competitive during periods of rising interest rates and declining bond prices; Market Risk, the risk that the price of securities may fall in response to economic conditions; Prepayment Risk, the risk associated with the early unscheduled return of principal on fixed-income investments, such as mortgage-backed securities. For a detailed discussion of risk, please consult the prospectus. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products. Investment products, insurance and annuity products: are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5577

TIAA-CREF Fund & Account Commentary

TIAA-CREF Short-Term Bond Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights In the second quarter of 2012, the TIAA-CREF Short-Term Bond Fund outperformed its benchmark, the Barclays U.S. 1–5 Year Government/Credit Bond Index. Bond markets realized positive returns overall during the second quarter, as renewed fears over Europe’s ongoing sovereign debt crisis and mounting evidence of economic slowing in the U.S. and Asia drove investors toward the safety of high-quality fixed-income assets. Yields on U.S. Treasuries declined, driving gains for longer-dated Treasury bonds. The margin of incremental yield, or spread, between lower-quality bonds and Treasuries widened during the quarter, limiting returns for such credits. However, despite growing recognition of looming economic challenges, demand for certain types of credit-sector bonds, including high-yield corporate bonds and structured securities, remained strong—a reflection of investors’ ongoing search for yield in the persistently low interest-rate environment and the improved ability of certain “spread-sector” credit instruments to perform even under periods of economic or financial stress. The Fund’s outperformance during the quarter was primarily attributable to effective security selection within spread sectors. During the quarter, the Fund further reduced its exposure to U.S. Treasuries, which, in our view, have become less attractive on the basis of yields. This reduction was offset by increased weightings in corporate issues and asset-backed securities (ABS), where we identified high-quality credits offering incremental yields. Out-of‑benchmark ABS holdings, which were among the largest contributors to the Fund’s excess performance during the quarter, represent about 13% of Fund assets and include investments ranging from home equity- and student loan-related securitizations to securitized debt issued by a utility provider as a means to recover costs of terminated power plants.

The Fund also benefited from positions in foreign sovereign and quasi-sovereign bonds, as well as out-of-benchmark holdings of covered bonds (about 7% of Fund assets), which offer more compelling yields and comparable credit quality relative to U.S.-based alternatives such as government agency-issued securities. Out-of-benchmark holdings in agency and non-agency-issued mortgage-backed securities (MBS), which make up about 4% of Fund assets, detracted from returns during the quarter. For the trailing one-year period, the Fund outperformed the benchmark, reflecting prudent security selection through volatile market conditions and the outperformance of spread-sector securities over the period.

Positioning While we have increased exposure to spread-sector credits during a period of continued macroeconomic uncertainty, we feel that the Fund is positioned to perform well under a range of economic scenarios. The Fund’s focus on high‑quality securities offering attractive yields is based on our view that such securities may perform well should economic conditions improve, but will also be resilient in the event that economic conditions deteriorate. Additionally, we believe returns of securities in certain out-of-benchmark sectors, such as commercial mortgage-backed securities (CMBS), ABS, and non-agency MBS, will likely benefit from a lack of net new supply that will sustain elevated levels of investor demand for these assets. We therefore continue to emphasize positioning within these and other non-Treasury sectors, while maintaining sufficient liquidity within the Fund to be responsive to changing conditions.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Short-Term Bond Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Short-Term Bond Fund–Institutional Class

TISIX

0.32%/0.30%

3/31/2006

0.67%

2.77%

4.39%

4.21%

N/A

4.28%

Short-Term Bond Fund–Retirement Class

TISRX

0.57%/0.55%

3/31/2006

0.60%

2.51%

4.16%

3.97%

N/A

4.04%

Short-Term Bond Fund–Retail Class

TCTRX

0.52%/0.52%

3/31/2006

0.60%

2.48%

4.19%

4.04%

N/A

4.13%

Short-Term Bond Fund–Premier Class

TSTPX

0.47%/0.45%

9/30/2006

0.63%

2.61%

4.28%

4.15%

N/A

4.23%

0.59%

2.50%

3.65%

4.67%

N/A

N/A

Barclays U.S. 1–5 Year Government/Credit Bond Index

Top 10 Holdings

Sector Effects on Fund Performance Top Contributing Sectors Corporates ABS Covered Bonds

Top Detracting Sectors Treasuries Govt Rel.–Agency Cash

Issuer

n Treasuries n Govt Rel.–Agency n Govt Rel.–Credit n Corporates n MBS n ABS n CMBS n Municipals n Covered Bonds n Cash n Others n Contribution  n Detraction

% of Net Assets

U.S. Treasury Note 1.250%, 04/15/14

3.5

FNMA 1.125%, 06/27/14

2.9

U.S. Treasury Inflation Indexed Bonds 0.500%, 04/15/15

2.9

U.S. Treasury Note 1.125%, 06/15/13

2.7

FHLMC 0.500%, 04/17/15

2.3

U.S. Treasury Note 0.375%, 06/15/15

1.3

U.S. Treasury Inflation Indexed Bonds 0.125%, 04/15/16

1.3

Toronto-Dominion Bank 1.625%, 09/14/16

1.2

WF-RBS Commercial Mortgage Trust 2.288%, 06/15/45

1.2

Ally Master Owner Trust 4.250%, 04/15/17

1.0

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The premier class began operations on September 30, 2009. Performance shown for periods prior to the inception of the premier class reflects the performance of the institutional class. Total returns have not been restated to reflect any expense differential between any of the share classes. If the expense differential had been reflected, performance for these periods would have been lower. The net annual expense ratio represents expenses after reimbursement and waivers, while the gross annual expense ratio represents expenses without any reimbursements and waivers. These expense reimbursement arrangements will continue through at least September 30, 2012 and can only be changed with approval of the Board of Trustees. Without these waivers and reimbursements, the Fund expenses would be higher and its performance would have been lower Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please see the prospectus for details. Please consider all risks carefully prior to investing. Fixed-income securities are subject to interest-rate risk. When interest rates rise, the value of fixed-income securities generally declines. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5578

TIAA-CREF Fund & Account Commentary

TIAA-CREF Tax-Exempt Bond Fund

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights In the second quarter of 2012, the TIAA-CREF Tax-Exempt Bond Fund closely tracked its benchmark, the Barclays 10-Year Municipal Bond Index. During the quarter, the municipal bond market followed interest rates lower on the sluggish U.S. economy and continuing fears about Europe’s debt woes. The Municipal Market Data (MMD) 10-year and 30-year yields fell to multi-decade lows of 1.86% and 3.16%, respectively. (MMD is a widely used measure of the overall municipal bond market.) Low U.S. Treasury rates and refundings were two primary drivers of lower interest rates in the municipal market. While overall new-issue supply for the period improved over last year—$114 billion vs. $69 billion—much of the current volume came from refundings, as issuers took advantage of lower rates. Consequently, municipal bond investors have been trying to replace the income lost as their bonds get redeemed from the refundings. The demand for bonds, particularly bonds offering higher yields, continued unabated in the second quarter. In the first half of 2012, municipal fund flows ran positive for 25 out of 26 weeks. Returns reflected this strong demand. The intermediate-term Barclays 10-Year Municipal Bond Index returned 2.08% for the quarter, while the longer-maturity Barclays Municipal Bond Index generated a 1.88% return. From a credit quality standpoint, the Barclays Municipal High Yield Index posted the highest return, 4.03%, reflecting demand for higher-yielding, lower-rated securities. The TIAA-CREF Tax-Exempt Bond Fund continued to generate positive returns in the second quarter. By selectively buying 20+ year maturity bonds offering above‑average yields, the Fund extended its overall duration to 6.76 years from 6.26 years in the beginning of the quarter. However, the Fund also maintained key rate durations (KRDs, a measure of price sensitivity to changes in yields at selected points along the yield curve) that closely tracked those of the benchmark’s intermediate rates.

Relative performance was positively affected by the Fund’s longer duration and the positions in higher-yielding, wider-spread bonds. Sectors that contributed to outperformance were local school districts, California-based borrowers, and health care. In contrast, high-grade, lower-yielding state general obligation bonds tended to underperform.

Positioning The Fund continues to invest in investment-grade credits, focusing in particular on bonds that offer attractive relative values, spread, liquidity, and yield. Consistent with maintaining a broadly diversified portfolio, we continue to seek opportunities to broaden the Fund’s holdings by geography and sector, including investments in higher-yielding bonds. The Fund maintains a majority of its holdings in index-eligible and index-equivalent bonds that are not callable. In comparison, the benchmark has a vast majority of its holdings in bonds that can be called prior to maturity. This could lead to higher price volatility under certain market conditions. Additionally, world economic events now weigh more heavily on what had traditionally been a predominantly domestic market. We anticipate that volatility will continue to be a factor in the municipal market. Accordingly, we remain vigilant in monitoring the investment environment, both to take advantage of opportunities and to protect against risk.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Tax-Exempt Bond Fund

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Ticker

Expense Ratio (gross/net)

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

Tax-Exempt Bond Fund–Institutional Class

TITIX

0.40%/035%

3/31/2006

2.12%

9.33%

7.47%

5.97%

N/A

5.48%

Tax-Exempt Bond Fund–Retail Class

TIXRX

0.55%/0.55%

3/31/2006

2.06%

9.04%

7.26%

5.84%

N/A

5.36%

2.08%

10.3%

8.09%

6.89%

N/A

6.28%

Barclays 10 Year Municipal Bond Index

Top 10 Holdings

Sector Effects on Fund Performance Top Contributing Sectors Muni Local Muni Other Muni Health Care

Top Detracting Sectors Muni Transportation Muni Power Muni Water & Sewer

Issuer

n n Muni Health Care n Muni Housing n Muni Industrial Revenue n Muni Leasing n Muni Local n Muni Other n Muni Power n Muni Solid Waste/Res Recovery n Muni Special Tax n Muni State n Muni Transportation n Muni Water & Sewer Muni Education

n Contribution  n Detraction

% of Net Assets

County of Broward FL Airport System Revenue 5.000%, 10/01/20

1.3

State of Ohio, AMT 4.950%, 09/01/20

1.1

Puerto Rico Commonwealth Infrastructure Financing Authority 5.500%, 07/01/19

1.1

California Pollution Control Financing Authority 4.750%, 12/01/23

1.1

Port of Seattle WA 5.500%, 09/01/17

1.0

Phoenix Industrial Development Authority 5.250%, 06/01/34

1.0

State of California 5.000%, 02/01/38

0.9

East Side Union High School District-Santa Clara County 5.250%, 02/01/23

0.8

Los Angeles Unified School District, COP 5.000%, 10/01/17

0.7

Indiana Bond Bank 5.250%, 04/01/19

0.7

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The net annual expense ratio represents expenses after reimbursement and waivers, while the gross annual expense ratio represents expenses without any reimbursements and waivers. These expense reimbursement arrangements will continue through at least September 30, 2012 and can only be changed with approval of the Board of Trustees. Without these waivers and reimbursements, the Fund expenses would be higher and its performance would have been lower. Please see the prospectus for details. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Fixed-income securities are subject to interest‑rate risk. When interest rates rise, the value of fixed-income securities generally declines. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5580

TIAA-CREF Fund & Account Commentary

TIAA-CREF Lifecycle Funds

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights In the second quarter of 2012, the eleven TIAA-CREF Lifecycle Funds lagged their respective composite benchmarks. Across each of the share classes and target dates, the underperformance ranged from 49 basis points (0.49%) to 101 basis points (1.01%). Despite this second-quarter underperformance, the eleven Lifecycle Funds remain ahead of their respective benchmarks year-to-date as of June 30, 2012. Underperformance in the second quarter was due primarily to the performance of the underlying funds held in the Lifecycle portfolios, particularly the TIAA-CREF International Equity Fund, TIAA-CREF Large-Cap Growth Fund, and TIAA-CREF Growth & Income Fund, each of which posted below-benchmark returns for the quarter, after outperforming in the first quarter of 2012. U.S. equity markets produced negative returns during the second quarter, reversing the optimism that had prevailed in the first three months of the year, when the Russell 3000 Index gained nearly 13%. The markets’ second-quarter decline reflected a variety of investor fears—including the potential for a breakup of the European Union, stagnation in the U.S. recovery, and a sharp slowdown in global demand, evidenced by cooling growth in China and other emerging markets. The pullback in stocks during the quarter was characterized by a move away from relative risk and toward relative safety. Accordingly, defensive sectors such as Utilities, Telecommunications, and Consumer Staples were generally more resilient than Energy, Financials, and Information Technology. Among stocks of different capitalization sizes and investment styles, large caps held up better than both mid caps and small caps, while value outperformed growth (based on the respective Russell market-capitalization size and investment style indexes).

Bond markets realized strongly positive returns overall during the quarter, as investors migrated toward the safety of high-quality fixed-income assets. U.S. Treasury yields fell across each maturity, with particularly pronounced declines at the long end of the yield curve resulting in an 11.8% total return for 20+ year Treasuries. The margin of incremental yield, or spread, between lower-quality bonds and Treasuries widened during the quarter, limiting returns for such credits. However, despite growing recognition of looming economic challenges, demand for certain types of credit-sector bonds, including high-yield corporate bonds and structured securities, remained strong—a reflection of investors’ ongoing search for yield in the persistently low interest-rate environment and an improved ability of certain “spread-sector” credit instruments to perform even under periods of economic or financial stress.

Positioning The Lifecycle Funds are managed to provide automatic investment allocations for investors with specific time horizons ranging from 2010 to 2055 and also include a retirement income option. Their target dates increase in five-year increments.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Lifecycle Funds

Quarter-to-Date Ending June 30, 2012

Average Annual Returns*

Fund

Ticker Symbol

Expense Ratio (Gross/Net)

3 Month From/To 04/01/2012 06/30/2012

1 year From/To 07/01/2011 06/30/2012

TIAA-CREF Lifecycle 2010 Fund–Institutional Class 1

TCTIX

0.54%/0.39%

-1.55%

TIAA-CREF Lifecycle 2010 Fund–Retirement Class 1

TCLEX

0.84%/0.64%

-1.54%

TIAA-CREF Lifecycle 2010 Fund–Premier Class 1

TCTPX

0.69%/0.54%

2010 Fund Composite Index

3 Year From/To 07/01/2009 06/30/2012

5 Year From/To 07/01/2007 06/30/2012

10 year From/To 07/01/2002 06/30/2012

Inception To 06/30/2012

2.88%

11.05%

2.65%

–

4.97%

01/17/2007

2.69%

10.80%

2.41%

–

4.79%

10/15/2004

4.82%

09/30/2009

-1.55%

2.77%

10.88%

2.46%

–

-0.93%

3.74%

10.88%

2.85%

–

Inception Date

TIAA-CREF Lifecycle 2015 Fund–Institutional Class 1

TCNIX

0.56%/0.41%

-1.91%

2.22%

11.65%

2.03%

–

4.91%

01/17/2007

TIAA-CREF Lifecycle 2015 Fund–Retirement Class 1

TCLIX

0.86%/0.66%

-2.09%

1.91%

11.33%

1.76%

–

4.71%

10/15/2004

TIAA-CREF Lifecycle 2015 Fund–Premier Class 1

TCFPX

0.71%/0.56%

4.75%

09/30/2009

2015 Fund Composite Index

-2.11%

2.02%

11.41%

1.81%

–

-1.37%

3.12%

11.46%

2.18%

–

TIAA-CREF Lifecycle 2020 Fund–Institutional Class 1

TCWIX

0.57%/0.42%

-2.56%

1.36%

12.13%

1.27%

–

4.66%

01/17/2007

TIAA-CREF Lifecycle 2020 Fund–Retirement Class 1

TCLTX

0.87%/0.67%

-2.62%

1.06%

11.81%

1.01%

–

4.47%

10/15/2004

TIAA-CREF Lifecycle 2020 Fund–Premier Class 1

TCWPX

0.72%/0.57%

-2.57%

1.15%

11.94%

1.08%

–

4.51%

09/30/2009

-1.87%

2.44%

12.02%

1.46%

–

2020 Fund Composite Index TIAA-CREF Lifecycle 2025 Fund–Institutional Class 1

TCYIX

0.58%/0.43%

-3.13%

0.42%

12.59%

0.54%

–

4.43%

01/17/2007

TIAA-CREF Lifecycle 2025 Fund–Retirement Class 1

TCLFX

0.88%/0.68%

-3.18%

0.17%

12.28%

0.28%

–

4.24%

10/15/2004

TIAA-CREF Lifecycle 2025 Fund–Premier Class 1

TCQPX

0.73%/0.43%

4.26%

09/30/2009

2025 Fund Composite Index

-3.14%

0.21%

12.34%

0.32%

–

-2.37%

1.73%

12.56%

0.74%

–

TIAA-CREF Lifecycle 2030 Fund–Institutional Class 1

TCRIX

0.59%/0.44%

-3.62%

-0.54%

13.00%

-0.23%

–

4.11%

01/17/2007

TIAA-CREF Lifecycle 2030 Fund–Retirement Class 1

TCLNX

0.89%/0.69%

-3.74%

-0.83%

12.69%

-0.49%

–

3.92%

10/15/2004

TIAA-CREF Lifecycle 2030 Fund–Premier Class 1

TCHPX

0.74%/0.59%

3.95%

09/30/2009

2030 Fund Composite Index

-3.74%

-0.65

12.79

-0.44%

–

-2.89%

0.99%

13.06%

0.01%

–

TIAA-CREF Lifecycle 2035 Fund–Institutional Class 1

TCIIX

0.60%/0.45%

-4.28%

-1.53%

13.31%

-0.58%

–

4.12%

01/17/2007

TIAA-CREF Lifecycle 2035 Fund–Retirement Class 1

TCLRX

0.90%/0.70%

-4.42%

-1.83%

13.00%

-0.85%

–

3.92%

10/15/2004

TIAA-CREF Lifecycle 2035 Fund–Premier Class 1

TCYPX

0.75%/0.60%

-4.39%

-1.64%

13.13%

-0.77%

–

3.97%

09/30/2009

-3.41%

0.21%

13.46%

-0.29%

–

2035 Fund Composite Index TIAA-CREF Lifecycle 2040 Fund–Institutional Class *

TCOIX

0.60%/0.45%

-4.57%

-1.73%

13.24%

-0.57%

–

4.37%

01/17/2007

TIAA-CREF Lifecycle 2040 Fund–Retirement Class *

TCLOX

0.90%/0.70%

-4.52%

-1.88%

13.01%

-0.83%

–

4.19%

10/15/2004

TIAA-CREF Lifecycle 2040 Fund–Premier Class *

TCZPX

0.75%/0.60%

-4.58%

-1.84%

13.10%

-0.78%

–

4.22%

09/30/2009

-3.59%

0.06%

13.44%

-0.30%

–

2040 Fund Composite Index

 | 2

TIAA-CREF Fund & Account Commentary

TIAA-CREF Lifecycle Funds

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* 3 Month From/To 04/01/2012 06/30/2012

1 year From/To 07/01/2011 06/30/2012

3 Year From/To 07/01/2009 06/30/2012

5 Year From/To 07/01/2007 06/30/2012

10 year From/To 07/01/2002 06/30/2012

Inception To 06/30/2012

Inception Date

0.65%/0.46%

-4.41%

-1.68%

13.26%

–

–

-1.26%

11/30/2007

0.95%/0.71%

-4.54%

-1.93%

12.90%

–

–

-1.53%

11/30/2007

TTFPX

0.80%/0.61%

-4.53%

-1.89%

13.02%

–

–

-1.46%

09/30/2009

-3.59%

0.06%

13.44%

–

–

TIAA-CREF Lifecycle 2050 Fund–Institutional Class

TFTIX

0.70%/0.46%

-4.54%

-1.72%

13.23%

–

–

-1.32%

11/30/2007

TIAA-CREF Lifecycle 2050 Fund–Retirement Class

TLFRX

0.99%/0.71%

-4.56%

-1.84%

12.98%

–

–

-1.57%

11/30/2007

TIAA-CREF Lifecycle 2050 Fund–Premier Class

TCLPX

0.85%/0.61%

-1.53%

09/30/2009

Fund

Ticker Symbol

Expense Ratio (Gross/Net)

TIAA-CREF Lifecycle 2045 Fund–Institutional Class

TTFIX

TIAA-CREF Lifecycle 2045 Fund–Retirement Class

TTFRX

TIAA-CREF Lifecycle 2045 Fund–Premier Class 2045 Fund Composite Index

2050 Fund Composite Index

-4.55%

-1.93%

13.04%

–

–

-3.59%

0.06%

13.44%

–

–

TIAA-CREF Lifecycle 2055 Fund–Institutional Class

TTRIX

1.24%/0.47%

-4.50%

-1.52%

–

–

-3.84% 2

04/29/2011

TIAA-CREF Lifecycle 2055 Fund–Retirement Class

TTRLX

1.54%/0.72%

-4.50%

-1.77%

–

–

-4.05% 2

04/29/2011

TIAA-CREF Lifecycle 2055 Fund–Premier Class

TTRPX

1.39%/0.62%

-0.96%

3.69%

–

–

2.98% 2

04/29/2011

-3.59%

0.06%

–

–

2055 Fund Composite Index

9.89%

TIAA-CREF Lifecycle Retirement Income Fund–Institutional Class

TLRIX

0.61%/0.38%

-0.92%

3.74%

10.09%

–

–

3.17%

11/30/2007

TIAA-CREF Lifecycle Retirement Income Fund–Retirement Class

TLIRX

0.91%/0.63%

-0.98%

3.58%

9.79%

–

–

2.92%

11/30/2007

TIAA-CREF Lifecycle Retirement Income Fund–Retail Class

TLRRX

0.77%/0.63%

-0.98%

3.59%

9.90%

–

–

3.05%

11/30/2007

TIAA-CREF Lifecycle Retirement Income Fund–Premier Class

TPILX

0.77%/0.53%

-0.96%

3.69%

–

–

7.47%

09/30/2009

-0.43%

4.46%

–

–

Lifecycle Retirement Income Composite Index

10.03%

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The Net Expense Ratio includes fees for the Lifecycle Funds and fees for the underlying funds; each Lifecycle fund indirectly bears its pro rata share of the fees and expenses incurred by the underlying funds. The net annual expense charge reflects a contractual fee waiver and reimbursement of certain expenses by the fund’s adviser through September 30, 2012. The reimbursement does not cover the fee for services provided in connection with the offering of this class on retirement platforms. See the current prospectus for information on expenses. 1 The fund’s Retirement Class began operations on October 15, 2004. Performance shown for the Since Inception period and prior to the inception of the Institutional and Premier Class is based on the performance of the fund’s Retirement Class. Performance has not been restated to reflect the lower expenses of the respective Classes. If the expense differential had been reflected, performance for these periods would have been higher. 2 The “Since Inception” values presented are cumulative values and not average annualized total returns TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

Portfolios within each strategy are subject to certain risks such as market and investment style risk. Please consider all risks carefully prior to investing. You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5580

TIAA-CREF Fund & Account Commentary

TIAA-CREF Lifestyle Funds

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights In the second quarter of 2012, the five TIAA-CREF Lifestyle Funds lagged their respective composite benchmarks. Across all share classes, the underperformance ranged from 15 basis points (0.15%) to 110 basis points (1.10%). Despite this second-quarter underperformance, the Lifestyle Funds remain ahead of their respective benchmarks year-to-date as of June 30, 2012. Underperformance in the second quarter was due primarily to the performance of the underlying funds held in the Lifestyle portfolios, particularly the TIAA-CREF International Equity Fund, TIAA-CREF Large-Cap Growth Fund, and TIAA-CREF Growth & Income Fund, all of which posted below-benchmark returns for the quarter, after outperforming in the first quarter of 2012. U.S. equity markets produced negative returns during the second quarter, reversing the optimism that had prevailed in the first three months of the year, when the Russell 3000 Index gained nearly 13%. The markets’ second-quarter decline reflected a variety of investor fears—including the potential for a breakup of the European Union, stagnation in the U.S. recovery, and a sharp slowdown in global demand, evidenced by cooling growth in China and other emerging markets. The pullback in stocks during the quarter was characterized by a move away from relative risk and toward relative safety. Accordingly, defensive sectors such as Utilities, Telecommunications, and Consumer Staples were generally more resilient than Energy, Financials, and Information Technology. Among stocks of different capitalization sizes and investment styles, large caps held up better than both mid caps and small caps, while value outperformed growth (based on the respective Russell market-capitalization size and investment style indexes). Bond markets realized strongly positive returns overall during the quarter, as investors migrated toward the safety of high-quality fixed-income assets. U.S. Treasury yields fell across all maturities, with particularly pronounced declines at the long end of the yield curve resulting in an 11.8% total return for 20+ year Treasuries.

The margin of incremental yield, or spread, between lower-quality bonds and Treasuries widened during the quarter, limiting returns for such credits. However, despite growing recognition of looming economic challenges, demand for certain types of credit-sector bonds, including high-yield corporate bonds and structured securities, remained robust—a reflection of investors’ ongoing search for yield in the persistently low interest-rate environment and an improved ability of certain “spread-sector” credit instruments to perform even under periods of economic or financial stress.

Positioning Distinct investment mixes in the five Lifestyle Funds are designed to meet a broad range of investment needs and risk preferences. The funds can serve as a stand-alone portfolio or core holding among other investments.

TIAA-CREF Fund & Account Commentary

TIAA-CREF Lifestyle Funds

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* 3 Month From/To 04/01/2012 06/30/2012

1 year From/To 07/01/2011 06/30/2012

3 Year From/To 07/01/2009 06/30/2012

5 Year From/To 07/01/2007 06/30/2012

10 year From/To 07/01/2002 06/30/2012

1.17%/0.46%

0.06%

–

–

–

1.41%/0.71%

0.00%

–

–

–

TSILX

1.54%/0.85%

-0.01%

–

–

TSIPX

1.32%/0.61%

0.03%

–

0.21%

Fund

Ticker Symbol

Expense Ratio (Gross/Net)

TIAA-CREF Lifestyle Income Fund–Institutional Class

TSITX

TIAA-CREF Lifestyle Income Fund–Retirement Class

TLSRX

TIAA-CREF Lifestyle Income Fund–Retail Class TIAA-CREF Lifestyle Income Fund–Premier Class Lifestyle Income Composite

Inception To 06/30/2012

Inception Date

–

4.23%

12/09/2011

–

4.09%

12/09/2011

–

–

4.03%

12/09/2011

–

–

–

4.14%

12/09/2011

–

–

–

–

3.26%

TIAA-CREF Lifestyle Conservative Fund–Institutional Class

TCSIX

1.05%/0.50%

-1.24%

–

–

–

–

5.37%

12/09/2011

TIAA-CREF Lifestyle Conservative Fund–Retirement Class

TSCTX

1.29%/0.75%

-1.30%

–

–

–

–

5.23%

12/09/2011

TIAA-CREF Lifestyle Conservative Fund–Retail Class

TSCLX

1.43%/0.89%

-1.31%

–

–

–

–

5.18%

12/09/2011

TIAA-CREF Lifestyle Conservative Fund–Premier Class

TLSPX

1.20%/0.65%

-1.28%

–

–

–

–

5.28%

12/09/2011

-0.77%

–

–

–

–

4.51%

Lifestyle Conservative Composite TIAA-CREF Lifestyle Moderate Fund–Institutional Class

TSIMX

0.99%/0.55%

-2.27%

–

–

–

–

6.63%

12/09/2011

TIAA-CREF Lifestyle Moderate Fund–Retirement Class

TSMTX

1.23%/0.80%

-2.33%

–

–

–

–

6.50%

12/09/2011

TIAA-CREF Lifestyle Moderate Fund–Retail Class

TSMLX

1.37%/0.94%

-2.43%

–

–

–

–

6.35%

12/09/2011

TIAA-CREF Lifestyle Moderate Fund–Premier Class

TSMPX

1.14%/0.70%

-2.31%

–

–

–

–

6.55%

12/09/2011

-1.79%

–

–

–

–

5.71%

Lifestyle Moderate Composite TIAA-CREF Lifestyle Growth Fund–Institutional Class

TSGGX

1.10%/0.58%

-3.87%

–

–

–

–

6.95%

12/09/2011

TIAA-CREF Lifestyle Growth Fund–Retirement Class

TSGRX

1.34%/0.83%

-3.96%

–

–

–

–

6.73%

12/09/2011

TIAA-CREF Lifestyle Growth Fund–Retail Class

TSGLX

1.48%/0.97%

-3.96%

–

–

–

–

6.72%

12/09/2011

TIAA-CREF Lifestyle Growth Fund–Premier Class

TSGPX

1.25%/0.73%

-3.87%

–

–

–

–

6.84%

12/09/2011

-3.12%

–

–

–

–

6.46% 7.10%

12/09/2011

Lifestyle Growth Composite TIAA-CREF Lifestyle Aggressive Growth Fund–Institutional Class

TSAIX

1.34%/0.61%

-5.47%

–

–

–

–

TIAA-CREF Lifestyle Aggressive Growth Fund–Retirement Class

TSARX

1.58%/0.86%

-5.56%

–

–

–

–

7.00%

12/09/2011

TIAA-CREF Lifestyle Aggressive Growth Fund–Retail Class

TSALX

1.71%/1.00%

-5.57%

–

–

–

–

6.90%

12/09/2011

TIAA-CREF Lifestyle Aggressive Growth Fund–Premier Class

TSAPX

1.49%/0.76%

-5.56%

–

–

–

–

7.00%

12/09/2011

-4.47%

–

–

–

–

7.14%

Lifestyle Aggressive Growth Composite

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. The Net Expense Ratio includes fees for the Lifestyle Funds and fees for the underlying funds; each Lifestyle fund indirectly bears its pro rata share of the fees and expenses incurred by the underlying funds. The net annual expense charge reflects a contractual fee waiver and reimbursement of certain expenses by the fund’s adviser through December 31, 2012. The reimbursement does not cover the fee for services provided in connection with the offering of this class on retirement platforms. See the current prospectus for information on expenses. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products.

Portfolios within each strategy are subject to certain risks such as market and investment style risk. Please consider all risks carefully prior to investing. You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5581

TIAA-CREF Fund & Account Commentary

CREF Equity Index Account

Quarter-to-Date Ending June 30, 2012

Account Performance Highlights

Positioning

The CREF Equity Index Account closely tracked its benchmark, the Russell 3000 Index, during the first quarter of 2012. The Account’s lower return for the period was due primarily to the effect of expenses. The Account has a risk profile similar to that of the Russell 3000.

The CREF Equity Index Account seeks to replicate the Russell 3000 Index to create a portfolio that closely matches the overall investment characteristics of that index.

U.S. equity markets produced negative returns during the second quarter, reversing the optimism that had prevailed in the first three months of the year, when the Russell 3000 Index gained nearly 13%. The markets’ second-quarter decline reflected a variety of investor fears—including the potential for a breakup of the European Union, stagnation in the U.S. recovery, and a sharp slowdown in global demand, evidenced by cooling growth in China and other emerging markets. The pullback in stocks during the quarter was characterized by a move away from relative risk and toward relative safety. Accordingly, defensive sectors such as Utilities, Telecommunications, and Consumer Staples were generally more resilient than Energy, Financials, and Information Technology. Among stocks of different capitalization sizes and investment styles, large caps (-3.12%) held up better than both mid caps (-4.40%) and small caps (-3.47%), while value (-2.26%) outperformed growth (-4.02%). (All returns are based on the respective Russell market-capitalization size and investment style indexes.)

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

CREF Equity Index Account

Quarter-to-Date Ending June 30, 2012

Average Annual Returns*

CREF Inflation-Linked Bond Account

Estimated Annual Expenses

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

0.42%

04/29/1994

-3.21%

3.47%

16.29%

0.03%

5.40%

8.00%

-3.15%

3.84%

16.73%

0.39%

5.81%

7.47%

Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index

Top 10 Holdings Issuer

% of Net Assets

Apple, Inc

3.6

Exxon Mobil Corp

2.7

Microsoft Corp

1.5

General Electric Co

1.5

International Business Machines Corp

1.4

AT&T, Inc

1.4

Chevron Corp

1.4

Johnson & Johnson

1.2

Pfizer, Inc

1.1

Procter & Gamble Co

1.1

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. The Account is subject to market risk and risks of foreign investing, including exchange rate risk. Please consider all risks carefully prior to investing. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5578

TIAA-CREF Fund & Account Commentary

CREF Global Equities Account

Quarter-to-Date Ending June 30, 2012

Account Performance Highlights

Positioning

The CREF Global Equities Account outperformed its benchmark, the MSCI World Index, in the second quarter of 2012, and remained ahead of the benchmark for the year-to-date.

The CREF Global Equities Account is an actively managed, globally diversified equity variable annuity emphasizing low relative risk. Intended as a core equity retirement offering, the Account provides global exposure to large-, mid-, and small-cap stocks across value, growth, and core investment styles. Using a multi‑manager approach, the Account seeks to generate multiple sources of excess return by leveraging the skills and experience of fundamental active portfolio managers, equity research analysts, and index portfolio managers.

The Account consists of ten independently operated strategies (four global and six regional mandates). Of these, four beat their respective benchmarks in the second quarter, while six lagged. Global equity markets produced negative returns during the second quarter, reversing the optimism that had prevailed in the first three months of the year, when the MSCI World Index gained nearly 12%. The markets’ second-quarter decline reflected a variety of investor fears—including the potential for a breakup of the European Union, stagnation in the U.S. recovery, and a sharp slowdown in global demand, evidenced by cooling growth in China and other emerging markets. The pullback in stocks during the quarter was characterized by a move away from relative risk and toward relative safety. Accordingly, defensive sectors such as Utilities, Telecommunications, and Consumer Staples were more resilient than Energy, Financials, and Information Technology. For the CREF Global Equities Account, sector attribution was mixed, with four sectors contributing positively and six sectors detracting. Underweights in Financials and Materials, and an overweight in Consumer Discretionary, made the largest contributions to relative performance versus the benchmark. Sectors that detracted the most included Healthcare, Utilities, and Telecommunication Services.

While the Account’s individual strategies are managed independently, the general theme across strategies is to maintain a balanced approach, which is tempered by a cautious view heading into second-quarter earnings season. The extent of deleveraging needed in the U.S. and European economies could act as a global headwind to expansion for a long time to come. Consensus forecasts for U.S. and global GDP growth have recently been revised downward, while China’s growth rate declined from 8.1% in the first quarter to 7.6% in the second—the slowest expansion of the Chinese economy since the 2008–2009 financial crisis. It remains difficult to project more than a “slow-growth” global economic scenario, at best. Against this backdrop, the Global Equities Account continues to favor stable, higher-quality, higher-growth companies that generate free cash flow, are able to increase dividends, and have strong balance sheets. We will also consider tactical investments when markets reach extreme levels of optimism or pessimism, in part because we believe Europe ultimately has the mechanisms, and the political will, to avoid a worst-case scenario in the long term—but not enough to avoid prolonged periods of below-trend growth in the meantime. We believe the Account’s multi‑manager approach enhances our ability to find diverse, compelling investment opportunities globally, while providing diversification across investment styles—a prudent strategy for navigating these uncertain times.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

CREF Global Equities Account

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Estimated Annual Expenses

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

0.49%

5/01/1992

-4.88%

-4.81%

11.48%

-2.77%

5.01%

6.70%

-5.07%

-4.98%

10.97%

-2.96%

5.18%

6.44%

CREF Global Equities Account Morgan Stanley World Index

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

UCB S.A.

Financials

Remy Cointreau S.A.

Consumer Discretionary

Bayer AG

Materials

Top Detracting Securities

Top Detracting Sectors

OGX Petroleo e Gas Participacoes S/A

Utilities

Wal-Mart Stores Inc.

Health Care

Imagination Technologies Group PLC

Telecommunication Services

Top 10 Holdings Issuer

n Consumer Staples n Health Care n Consumer Discretionary n Energy n Industrials n Information Technology n Materials n Financials n Telecommunications Services n Utilities n Contribution  n Detraction

% of Net Assets

Apple, Inc

2.6

Exxon Mobil Corp

1.4

Microsoft Corp

1.1

Chevron Corp

1.1

Pfizer, Inc

1.1

AT&T, Inc

0.9

Wells Fargo & Co

0.9

International Business Machines Corp

0.9

Philip Morris International, Inc

0.9

iShares MSCI EAFE Index Fund

0.8

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5580

TIAA-CREF Fund & Account Commentary

CREF Growth Account

Quarter-to-Date Ending June 30, 2012

Account Performance Highlights In the second quarter of 2012, the CREF Growth Account underperformed its benchmark, the Russell 1000 Growth Index. U.S. equity markets produced negative returns during the second quarter, reversing the optimism that had prevailed in the first three months of the year. The markets’ second-quarter decline reflected a variety of investor fears— including the potential for a breakup of the European Union, stagnation in the U.S. recovery, and a sharp slowdown in global demand, evidenced by cooling growth in China and other emerging markets. The combination of these events drove a flight to “safe haven” investments, leading to outperformance by defensive, low-beta stocks (i.e., those that tend to be less aggressive in terms of risk and return potential and more resilient in periods of economic uncertainty). The Account’s performance reflects bottom-up stock selection in four portfolio “sleeves”: a pure quantitative strategy; an actively managed strategy that combines both quantitative and fundamental techniques; a traditional actively managed strategy; and an index (pure passive) strategy. The pure quantitative and quantitative/fundamental strategies outperformed for the quarter, but this was offset by underperformance in the traditional actively managed strategy. The passive index sleeve helped reduce volatility and increase consistency of returns relative to the benchmark. In the traditional actively managed sleeve, an overweight in Information Technology detracted the most from performance, primarily due to stock selection. A few out-of-benchmark positions, including Cisco Systems and Chinese search engine Baidu, hurt the Account. Performance also suffered because of a significant underweight in Consumer Staples, where not owning more defensive companies like Coca-Cola, Pepsico, and Altria detracted from returns. For the quantitative/fundamental strategy, we reduced our exposure to the volatile cyclical companies heading into the second quarter, adopting a more neutral stance. Our focus on relatively defensive Consumer Discretionary names

in this sleeve helped boost active returns. The Account also benefited from underweighting Energy and Industrials. In the pure quantitative strategy, performance was hampered by the quarter’s increasingly macro-driven environment. Conservative sector positioning produced a neutral outcome, while strong stock selection in Information Technology was offset by weak selection in Industrials.

Positioning The CREF Growth Account is a variable annuity emphasizing large-cap growth companies and low relative risk. Intended as a core equity holding, the Account seeks to generate attractive, long-term absolute returns by investing in companies that have the potential for sales growth and/or earnings, or that appear to be mispriced based on current earnings, assets, or growth prospects. In the Account’s traditional active sleeve, we have begun to reposition the Account to better reflect a more subdued global growth outlook. This includes building positions in companies with a domestic presence and the potential to offer “growth at a reasonable price.” Accordingly, we recently added some more defensively oriented growth names in the Healthcare and Telecom sectors. We are also seeking opportunities in companies that have consumer global franchises and prospects for long-term business success, regardless of the economic cycle. In the Account’s quantitative/fundamental active strategy, we continue to underweight Consumer Staples and overweight Consumer Discretionary, where we typically find more companies offering “growth at a reasonable price.” We are underweight Industrials primarily due to the aerospace and defense industries, where top-line growth is challenged by government budget limits and potential spending cuts. The Account is neutral in most other sectors and remains focused on stock picking. In the pure quantitative sleeve, we have made no strategic changes to our model or positioning as we enter the third quarter.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

CREF Growth Account

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Estimated Annual Expenses

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

0.45%

4/29/1994

-4.44%

5.03%

16.47%

2.56%

5.36%

6.59%

-4.02%

5.76%

17.50%

2.87%

6.03%

7.65%

CREF Growth Account Russell 1000 Growth Index

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

Amazon.com Inc.

Materials

Walt Disney Co.

Consumer Discretionary

Visa Inc.

Financials

Top Detracting Securities

Top Detracting Sectors

National Oilwell Varco Inc.

Consumer Staples

Herbalife Ltd.

Information Technology

Wal-Mart Stores Inc.

Health Care

Top 10 Holdings Issuer

n Consumer Staples n Health Care n Consumer Discretionary n Energy n Industrials n Information Technology n Materials n Financials n Telecommunications Services n Utilities n Contribution  n Detraction

% of Net Assets

Apple, Inc

8.0

Microsoft Corp

3.1

Google, Inc (Class A)

2.4

International Business Machines Corp

2.4

Amazon.com, Inc

1.9

Philip Morris International, Inc

1.9

Coca-Cola Co

1.5

Visa, Inc (Class A)

1.4

Oracle Corp

1.4

Qualcomm, Inc

1.4

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. The Account is subject to market risk and risks of growth investing, which include potentially higher volatility than value stocks. Please consider all risks carefully prior to investing. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5580

TIAA-CREF Fund & Account Commentary

CREF Social Choice Account

Quarter-to-Date Ending June 30, 2012

Account Performance Highlights In the second quarter of 2012, the CREF Social Choice Account lagged its composite benchmark. While the Account’s international equity and fixed-income segments modestly outperformed their respective components of the composite benchmark, these favorable results were more than offset by the U.S. equity segment, which underperformed the Russell 3000 Index. In the U.S. equity segment, the Energy, Consumer Discretionary, and Telecommunication Services sectors detracted the most. Within Telecommunication Services, detractors included names that were not held due to the Account’s environmental, social, and governance (ESG) screening criteria. These included AT&T and Verizon, both of which outperformed as equity markets rotated to favor higher-yielding stocks. In Consumer Discretionary, the exclusion of Walmart and Amazon detracted from performance. Meanwhile, the Financials and Utilities sectors made the strongest contributions. The Account is unable to own several of the major diversified financial services companies due to ESG concerns. In the second quarter, the exclusions of JPMorgan Chase, Citigroup, and Goldman Sachs, contributed positively to performance.

overweights in high-quality, defensive subsectors and issuers within the corporate, mortgage-backed securities, and government-related credit sectors. The Account’s yield-curve positioning was a slight negative, as a flight to quality and the Fed’s extension of “Operation Twist” benefited longer-term maturities the most.

Positioning The Social Choice Account is a balanced portfolio with equity and fixed-income components. The equity portion uses a quantitative approach to attempt to match, to the extent possible given the screened universe, the risk characteristics of its respective U.S. and international equity benchmarks. Slowing global growth and lingering concerns about Europe support the thesis that we are in a “lower-for-longer” period, referring both to the pace of growth and to levels of interest rates. We expect continued policy action from central banks, but it remains to be seen what marginal impact these moves can have. We also remain wary of the potential impact that the looming U.S. “fiscal cliff” (automatic spending cuts and tax increases scheduled to take effect in 2013, absent a political compromise) could have on the already sluggish recovery.

The international equity portion of the Account ended the quarter modestly ahead of its benchmark, the MSCI EAFE + Canada Index. Internationally, the Energy and Consumer Staples sectors detracted from performance, while Financials, Manufacturing, and Utilities contributed positively. As with the U.S. equity portfolio, the Account does not own several of the major financial names, such as Credit Suisse and Deutsche Bank, and these exclusions benefited the Account’s return.

A slow-growth, low-inflation environment like the current one has historically been among the most favorable for spread-sector performance. The Account’s fixed‑income portfolio remains overweight in spread assets, given persistently low Treasury yields and the degree of marginal yield pick-up possible from spread sectors. We expect spread sectors will continue to be supported by ample liquidity, strong corporate earnings, lower supply, growing demand, and attractive relative valuations.

The fixed-income portion of the Account slightly outperformed its benchmark, the Barclays U.S. Aggregate Index. Asset allocation in this segment, which overweighted “spread sector” credits (lower-rated, higher-yielding non-Treasury categories) detracted from performance. Specific detractors included overweights in government-related credits,, corporate issues, covered Bonds, and commercial mortgage-backed -securities (CMBS). Security selection was a positive, with

Overall, however, we maintain a bias toward higher-quality, “lower beta” sectors and securities (i.e., those that tend to be less aggressive in terms of risk and return potential). In response to the weakening economic outlook and its potential impact on inflation expectations, the Account will carry a more neutral to slightly longer duration profile versus the index.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

CREF Social Choice Account

Quarter-to-Date Ending June 30, 2012

Average Annual Returns*

CREF Social Choice Account

Estimated Annual Expenses

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

0.43%

3/01/1990

-2.15%

2.16%

11.55%

2.44%

5.53%

8.26%

-1.51%

3.28%

11.81%

2.54%

5.66%

8.35%

CREF Social Choice Account Composite Benchmark

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

CREF Social Choice Domestic

CREF Social Choice Domestic

CREF Social Choice International

Top Contributing Issuers

CREF Social Choice International

Top 10 Holdings CREF Social Choice Fixed Income

Top Contributing Sectors

Issuer

% of Net Assets

FNMA 4.500%, 07/25/42

1.3

FNMA 4.000%, 07/25/42

1.2

JPMorgan Chase & Co.

Unilever PLC

Financials

Financials

Corporates

International Business Machines Corp

0.9

Citigroup Inc.

Pearson PLC

Utilities

Industrials

Gov't Rel.–Agency

GNMA 4.000%, 07/15/42

0.8

Biogen Idec Inc.

Novo Nordisk A/S

Utilities

Municipals

Johnson & Johnson

0.8

Procter & Gamble Co

0.7

Top Detracting Issuers

Top Detracting Sectors

AT&T Inc.

Nokia Corp.

Energy

Energy

Treasuries

GNMA 4.500%, 07/15/42

0.7

Verizon Communications Inc.

Xstrata PLC

Consumer Disc.

Consumer Staples

Cash

Google, Inc (Class A)

0.7

Wal-Mart Stores Inc.

Repsol YPF S.A.

Health Care

Info Technology

Others

Berkshire Hathaway, Inc (Class B)

0.7

FNMA 5.000%, 07/25/42

0.6

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. Portfolios within each strategy are subject to certain risks, such as market and investment-style risks. Please consider all risks carefully prior to investing. Because its social screens exclude some investments, the fund may not be able to take advantage of the same opportunities or market trends as funds that do not use such criteria. Investments in small- to medium-sized corporations are more vulnerable to financial risks and other risks than larger corporations and may involve a higher degree of price volatility than investments in the general equity markets. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5580

TIAA-CREF Fund & Account Commentary

CREF Stock Account

Quarter-to-Date Ending June 30, 2012

Account Performance Highlights

Positioning

In the second quarter of 2012, the CREF Stock Account lagged its composite benchmark, which consists of a 70% allocation to the Russell 3000 Index (U.S. markets) and a 30% allocation to the MSCI All-Country World ex-US Index (foreign developed and emerging markets). Year-to-date through June 30, 2012, the Account remains ahead of its benchmark.

The CREF Stock Account is a broadly diversified equity variable annuity emphasizing low relative risk versus the market. Intended as a complete equity holding, the Account provides exposure to all major equity market segments, including large-, mid-, and small-cap stocks, both domestically and within foreign developed and emerging markets. Secular, professional asset allocation takes a long-term view on portfolio positioning to assist participants in planning for retirement. The multi-manager approach leverages the skills and experience of fundamental active portfolio managers, active equity research analysts, quantitative portfolio managers, and index managers to generate multiple sources of excess return.

The CREF Stock Account allocates its assets across four main “sleeves”: active fundamental portfolio management; active research analysis; quantitative portfolio management; and index portfolio management. To provide broad diversification, each sleeve offers a different investment style and approach in its stock selection process. Equity markets produced negative returns during the second quarter, reversing the optimism that had prevailed in the first three months of the year, when major equity benchmark indexes posted double-digit gains. The markets’ second‑quarter decline reflected a variety of investor fears—including the potential for a breakup of the European Union, stagnation in the U.S. recovery, and a slowdown in global demand, evidenced by cooling growth in China and other emerging markets. The pullback in stocks during the quarter was characterized by a move away from relative risk and toward relative safety. Accordingly, defensive sectors such as Utilities, Telecommunications, and Consumer Staples were more resilient than Energy, Financials, and Information Technology.

Looking ahead, with equities continuing to trade below historical average price-toearnings (P/E) ratios, stocks appear attractively valued. Second-quarter earnings season has thus far offered a mixed a bag of optimism and caution, but we think the most likely scenario is that markets will “muddle through” in the near term. That said, we are mindful of the many economic and geopolitical risks that could make the markets volatile for the remainder of 2012 and into 2013. As always, we remain committed to the CREF Stock Account’s investment approach: combining a high level of geographic diversification and a variety of distinctive investment styles to provide attractive long-term return potential without undue risk.

The Account’s U.S. portfolio underperformed its benchmark, the Russell 3000 Index, primarily due to negative stock selection in the sleeves managed by our active portfolio managers, active research analysts, and quantitative portfolio managers. The U.S. portfolio was also hurt by its bias toward more cyclical stocks in a “risk off” market that clearly favored safety and yield. The Account’s international portfolio fared better, reflecting a more defensive positioning and effective stock-picking in Europe.

The sectors referenced in the relative performance commentary above are based on the Global Industry Classification Standard (GICS®). The Global Industry Classification Standard (GICS) was developed by MSCI, a premier independent provider of global indexes and benchmark-related products and services, and Standard & Poor’s (S&P), an independent international financial data and investment services company and a leading provider of global equity indexes.

TIAA-CREF Fund & Account Commentary

CREF Stock Account

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Estimated Annual Expenses

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

0.47%

8/01/1952

-4.84%

-2.71%

13.59%

-1.26%

5.50%

9.63%

-4.52%

-2.02%

13.79%

-1.11%

5.69%

N/A

CREF Stock Account CREF Composite Benchmark

Security Selection Effects on Fund Performance

Sector Effects on Fund Performance

Top Contributing Securities

Top Contributing Sectors

Bayer AG

Financials

SXC Health Solutions Corp. Morgan Stanley

Top Detracting Securities

Top Detracting Sectors

Prudential Financial Inc.

Health Care

Herbalife Ltd.

Energy

Wal-Mart Stores Inc.

Information Technology

Top 10 Holdings Issuer

n Consumer Staples n Health Care n Consumer Discretionary n Energy n Industrials n Information Technology n Materials n Financials n Telecommunications Services n Utilities n Contribution  n Detraction

% of Net Assets

Apple, Inc

2.8

Exxon Mobil Corp

1.6

Microsoft Corp

1.1

Pfizer, Inc

1.0

Wells Fargo & Co

0.9

Chevron Corp

0.9

International Business Machines Corp

0.9

AT&T, Inc

0.9

Philip Morris International, Inc

0.9

General Electric Co

0.8

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5580

TIAA-CREF Fund & Account Commentary

CREF Bond Market Account

Quarter-to-Date Ending June 30, 2012

Account Performance Highlights In the second quarter of 2012, the CREF Bond Market Account underperformed its benchmark, the Barclays U.S. Aggregate Bond Index. Bond markets realized positive returns overall during the quarter, as renewed fears over Europe’s ongoing sovereign debt crisis and mounting evidence of economic slowing in the U.S. and Asia drove investors toward the safety of high‑quality fixed-income assets. U.S. Treasury yields fell across all maturities, with particularly pronounced declines at the long end of the yield curve resulting in an 11.8% total return for 20+ year Treasuries. The margin of incremental yield, or spread, between lower-quality bonds and Treasuries widened during the quarter, limiting returns for such credits. However, despite growing recognition of looming economic challenges, demand for certain types of credit-sector bonds, including high-yield corporate bonds and structured securities, remained strong—a reflection of investors’ ongoing search for yield in the persistently low interest-rate environment and an improved ability of certain “spread-sector” credit instruments to perform even under periods of economic or financial stress. The Account’s underperformance was primarily attributable to the impact of Account expenses, which more than offset positive effects of security selection across a number of bond sectors. Although the Account held an underweight position in Treasury bonds, which outperformed other fixed-income sectors during the quarter, negative effects from this positioning were overcome by the outperformance of the portfolio’s corporate bond and structured securities holdings. Within the corporate sector, an emphasis on longer-duration bonds relative to the benchmark, along with favorable selection of certain bank-issued bonds, added to performance. Additionally, a preference for recently issued securities worked to the Account’s advantage, as liquidity and demand for secondary market securities declined.

Holdings of highest-quality structured securities, including commercial mortgagebacked securities and non-agency mortgage-backed securities, which were somewhat insulated from concerns about a weakening credit environment, performed well during the quarter, benefiting from a lack of net new supply that supported strong investor interest in such securities. No sectors detracted significantly from Account performance for the quarter. For the trailing one-year period, the Account underperformed the benchmark by a narrow margin, primarily reflecting the impact of Account expenses.

Positioning Despite prevailing macroeconomic headwinds, we continue to find value in U.S. corporate and structured securities, and we expect such securities to perform well under a range of economic scenarios. Over the past year, the Account has shifted to more conservative positioning overall, with an emphasis on higher-quality assets within spread sectors. We maintain an underweight exposure to Treasuries relative to the benchmark, preferring to identify other sources of low-risk investments— such as Export-Import Bank guarantee loans and Canadian bank-issued covered bonds—that offer incremental yield while representing only marginally higher risk relative to government-issued securities. We have also increased exposure to certain types of bonds, such as mortgage-backed securities, with the potential to outperform under weaker economic conditions—particularly if the Federal Reserve were to engage in another round of quantitative easing. The Account currently maintains an average duration that is in line with that of its benchmark. While we believe it is possible for interest rates to drift lower given weakening U.S. and global economic conditions, we are also mindful of rapid changes in investor sentiment that may easily cause rates to spike higher on signs of improvement. Accordingly, we feel that a relatively neutral exposure to interest-rate risk is warranted at this time.

TIAA-CREF Fund & Account Commentary

CREF Bond Market Account

Quarter-to-Date Ending June 30, 2012

Average Annual Returns* Estimated Annual Expenses

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

0.44%

3/01/1990

2.01%

7.14%

7.04%

5.98%

5.18%

6.74%

2.06%

7.47%

6.93%

6.79%

5.63%

7.09%

CREF Bond Market Account Barclays U.S. Aggregate Bond Index

Top 10 Holdings

Sector Effects on Fund Performance Top Contributing Sectors Corporates ABS Govt Rel.–Credit

Top Detracting Sectors Treasuries Cash Others

Issuer

n Treasuries n Govt Rel.–Agency n Govt Rel.–Credit n Corporates n MBS n ABS n CMBS n Municipals n Covered Bonds n Cash n Others n Contribution  n Detraction

% of Net Assets

FNMA 4.000%, 07/25/42

3.4

U.S. Treasury Note 8.000%, 11/15/21

2.6

FNMA 5.500%, 07/25/42

2.4

FNMA 5.000%, 07/25/42

2.1

FNMA 6.000%, 07/25/42

2.1

U.S. Treasury Bond 5.375%, 02/15/31

1.9

FNMA 3.500%, 07/25/42

1.6

FNMA 4.500%, 07/25/42

1.4

U.S. Treasury Note 0.375%, 06/15/15

1.3

GNMA 4.000%, 07/15/42

1.3

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Fixed-income securities are subject to interest‑rate risk. When interest rates rise, the value of fixed-income securities generally declines. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5579

TIAA-CREF Fund & Account Commentary

CREF Inflation-Linked Bond Account

Quarter-to-Date Ending June 30, 2012

Account Performance Highlights

Positioning

In the second quarter of 2012, the CREF Inflation-Linked Bond Account realized a positive return that was slightly below that of its benchmark, the Barclays U.S. Treasury Inflation-Protected Securities (TIPS) Index. This modest degree of underperformance was almost entirely attributable to Account expenses.

We consider inflation-protected bond yields to be at reasonable levels, and we maintain a somewhat favorable outlook for TIPS relative to nominal Treasuries of similar duration. While Fed activity in the TIPS market has contributed to performance, it has also led to some challenging market conditions from both a pricing and supply perspective. Therefore, we continue to monitor TIPS pricing versus nominal Treasuries, with an eye on balancing portfolio composition and duration characteristics with trading costs.

Amid continuing fiscal concerns in Europe and a slowdown in key U.S. economic indicators, investors generally favored higher-quality segments of the bond market. Longer-dated nominal Treasuries benefited the most from this flight to safety, as interest rates fell and the back end of the yield curve flattened noticeably over the quarter. The Barclays U.S. 20+ Year Treasury Bond Index, for example, returned 11.80% in the second quarter, as long-term yields were pushed lower. Giving further support to longer-dated Treasuries was the continuation of the Federal Reserve’s “Operation Twist” program, whereby the Fed is attempting to keep long-term rates low by selling short-term securities and using the proceeds to purchase longer-term Treasury debt. Inflation-protected securities participated in the second quarter’s flight to safety, with the Barclays U.S. TIPS Index posting a gain of 3.15%—slightly less than the 3.39% return of 7- to 10-year nominal Treasuries, but ahead of the 2.06% return of the broad Barclays U.S. Aggregate Bond Index. TIPS also outperformed most other bond market segments over the trailing 12-month period ended June 30, 2012, with an 11.66% return. Inflation expectations came down during the second quarter, due in large part to a 17% drop in crude oil prices. Although downward revisions to inflation expectations can have a negative impact on TIPS performance, this was more than offset by the beneficial effects of declining interest rates during the period. The Account’s portfolio maintains overall portfolio characteristics that are largely in line with those of its TIPS-based benchmark. As a result, Account performance has tended to closely track the benchmark’s return over time.

TIAA-CREF Fund & Account Commentary

CREF Inflation-Linked Bond Account

Quarter-to-Date Ending June 30, 2012

Average Annual Returns*

CREF Inflation-Linked Bond Account

Estimated Annual Expenses

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

0.44%

5/01/1997

2.96%

11.18%

9.17%

7.91%

6.74%

6.80%

3.15%

11.66%

9.63%

8.44%

7.23%

7.24%

Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index

Top 10 Holdings Issuer

% of Net Assets

U.S. Treasury Inflation Indexed Bonds 2.375%, 01/15/25

4.5

U.S. Treasury Inflation Indexed Bonds 3.875%, 04/15/29

4.5

U.S. Treasury Inflation Indexed Bonds 0.125%, 04/15/16

4.4

U.S. Treasury Inflation Indexed Bonds 1.125%, 01/15/21

4.4

U.S. Treasury Inflation Indexed Bonds 0.625%, 07/15/21

4.3

U.S. Treasury Inflation Indexed Bonds 3.625%, 04/15/28

3.8

U.S. Treasury Inflation Indexed Bonds 2.000%, 01/15/14

3.5

U.S. Treasury Inflation Indexed Bonds 2.000%, 07/15/14

3.4

U.S. Treasury Inflation Indexed Bonds 1.875%, 07/15/13

3.4

U.S. Treasury Inflation Indexed Bonds 2.000%, 01/15/26

3.3

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. Portfolios within each strategy are subject to certain risks, such as market and investment style risk. Please consider all risks carefully prior to investing. Fixed-income securities are subject to interestrate risk. When interest rates rise, the value of fixed-income securities generally declines. Investments in inflation-linked securities can be affected by changes in investors’ inflation expectations or changes in real interest rates. Top ten holdings are subject to change and may not reflect the current holdings of the funds/accounts. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5579

TIAA-CREF Fund & Account Commentary

CREF Money Market Account

Quarter-to-Date Ending June 30, 2012

Account Performance Highlights

Positioning

The CREF Money Market Account realized flat returns during the second quarter of 2012, as short-term interest rates remained at extremely low levels. The slight recovery in rates that began in the first quarter continued, due to the increased supply of Treasury Bills resulting from the Fed’s ongoing sale of short-term securities as part of its “Operation Twist” program.

We remain committed to holding—and will attempt to continue purchasing— longer-dated, floating-rate government agency paper (with 18-month to 2-year maturities) in an effort to capture slightly higher yields.

The Federal Reserve continues to forecast that short-term rates—reflected in the targeted federal funds rate—will remain at or near 0% through the end of 2014, with recent economic concerns potentially extending this time frame into 2015. Commercial paper prices continue to track government debt closely, thanks to a more than $1 trillion drop in outstanding issuance since mid-2007. Industrial corporations continue to hoard cash and have taken advantage of the low interest-rate environment by issuing longer-maturity debt. Market pressure ramped up in Europe during the quarter, with shocks from political events in Greece and from concerns related to the Spanish banking sector and growth prospects in Italy. The Money Market Account continues to hold no European sovereign debt and has very limited debt exposure to European financial institutions, the only instance of which is an investment in securities issued by U.K.-based Standard Chartered Bank. While the bank is headquartered in Europe, a vast majority of its operations and profits are derived outside of Europe. Overall, we remain cautious about the ongoing difficulties facing this region and will consider additional investments there only after diligent analyst scrutiny. The Money Market Account continues to invest in a diversified portfolio of high‑quality money market securities, seeking sources of incremental yield in select sectors while remaining within liquidity rules that govern money market fund composition.

Recent news reports suggest that a regulatory proposal affecting money market funds may be voted on by the Securities and Exchange Commission in the near future. A variety of potential measures are being considered, including a floating net asset value (NAV), redemption request stipulations, and/or some form of capital buffer to protect against potential losses. Because several different proposals with a range of implications are possible, we will maintain flexibility in the Account’s portfolio to ensure that we are able to respond effectively to this or other regulatory changes that may be in store. Given the persistence of the low interest-rate environment, the Account continues to utilize fee waivers to avoid realizing negative returns. We anticipate that current fee waivers will remain in place.

TIAA-CREF Fund & Account Commentary

CREF Money Market Account

Quarter-to-Date Ending June 30, 2012

Average Annual Returns*

CREF Money Market Account iMoneyNetFund Report Averages–All Taxable

Estimated Annual Expenses

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

0.42%

4/01/1988

0.00%

0.00%

0.00%

0.99%

1.74%

3.94%

0.01%

0.02%

0.03%

0.91%

1.6%

3.65%

7-day current annualized yield 0.00% as of 6/30/12 7-day effective annualized yield 0.00% as of 6/30/12

Beginning July 16, 2009, part or all of the 12b-1 distribution expenses and/or administrative expenses attributable to the CREF Money Market Account are being voluntarily waived. Without these waivers, the 7-day current and effective annualized yields and total returns would have been lower. These waivers may be discontinued at any time without notice. Amounts waived on or after October 1, 2010 are subject to possible recovery by TIAA under certain conditions. Please see the prospectus for additional information. An investment in this account is not a deposit of any bank and is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other U.S. government agency. It is possible to lose money in this Account. The current yield more closely reflects the account’s current earnings than does the total return. * The performance data quoted represents past performance, and is no guarantee of future results. Your returns and the principal value of your investment will fluctuate so that your accumulation units, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. For investments with exceptional performance, please note that performance fluctuates and currently may be lower than noted here. As with any investment, money market annuity accounts are subject to a number of risks, including all or some of the following: Company Risk, the risk that the financial condition of a company may deteriorate, causing a decline in the value of the securities it issues; Credit Risk, the risk that an issuer of bonds may default; Current Income Risk, the risk that the income an annuity account receives may unexpectedly fall as a result of a decline in interest rates; Extension Risk, the risk that a security’s duration will lengthen, due to a decrease in prepayments caused by rising interest rates; Income Volatility Risk, the risk that the income from a portfolio of securities may decline in certain interest rate environments; Interest Rate Risk, the risk that interest payments of debt securities may become less competitive during periods of rising interest rates and declining bond prices; Market Risk, the risk that the price of securities may fall in response to economic conditions; Prepayment Risk, the risk associated with the early unscheduled return of principal on fixed-income investments, such as mortgage-backed securities. For a detailed discussion of risk, please consult the prospectus. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products. Investment products, insurance and annuity products: are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.

You should consider the investment objectives, risks, charges and expenses carefully before investing. Please call 877 518-9161 or log in to tiaa-cref.org for a current prospectus that contains this and other information. Please read the prospectus carefully before investing. © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5577

TIAA-CREF Fund & Account Commentary

TIAA Traditional Annuity

Quarter-to-Date Ending June 30, 2012

Fund Performance Highlights The TIAA Traditional Annuity (Retirement Annuity) is a guaranteed annuity contract that pays a contractual interest rate and offers the opportunity for additional amounts in excess of the guaranteed rate. These additional amounts, when declared by the TIAA Board of Trustees, remain in effect for the “declaration year” that begins each March 1 and are not guaranteed for future years. The rates of return for the contractual plus the additional amounts for the periods ended June 30, 2012, were: 0.74% for the second quarter of 2012; 4.00% for one year; 3.83% for three years; 4.59% for five years; and 4.94% for ten years. The TIAA Traditional Annuity is backed by the stability, financial strength, and claims-paying ability of TIAA, one of only three insurance groups in the United States to hold the highest ratings currently awarded from all four leading independent insurance company rating agencies: A.M. Best (A++ as of 4/12); Fitch (AAA as of 6/12); Moody’s Investors Service (Aaa as of 12/11); and Standard & Poor’s (AA+ as of 5/12). Per S&P criteria, the downgrade of U.S. long-term government debt limits the highest rating of U.S. insurers to AA+ (the second-highest rating available). These ratings are subject to change and do not apply to variable annuities, mutual funds or any other product or service not fully backed by TIAA’s claims-paying ability.

The performance information shows the average annual rates credited to premiums to a TIAA Traditional Annuity over the time periods shown. The rates of return are historical, meaning that if a person contributed a premium 1, 3, 5 or 10 years ago and did not take distributions or transfer out, he/she would have received the interest rate shown for the applicable period. The TIAA Traditional Annuity is a guaranteed annuity backed by TIAA’s claims-paying ability. The TIAA Traditional Annuity’s primary objective is the guarantee of principal and a specified interest rate. It also offers the potential for greater growth through additional amounts, which may be declared on a year-by-year basis by the TIAA Board of Trustees. For Retirement Annuity (RA) contracts, TIAA Traditional guarantees your principal and a 3% minimum annual interest rate for all premiums remitted since 1979. The account also offers the opportunity for additional amounts in excess of the guaranteed rate. When declared, additional amounts remain in effect for the twelve-month period that begins each March 1. For Retirement Annuity contracts, the TIAA annuity contract does not allow lump-sum cash withdrawals from the TIAA Traditional Annuity and transfers must be spread out in ten annual installments. TIAA Traditional is a guaranteed insurance contract and not an investment for Federal Securities Law purposes. The TIAA Traditional Annuity provides a guarantee of principal and a specified interest rate. Interest credited to TIAA Traditional Annuity includes a guaranteed rate, plus additional amounts that are not guaranteed but may be established on a year-by-year basis. TIAA Traditional is issued by TIAA (Teachers Insurance and Annuity Association), 730 Third Avenue, New York, NY 10017. Retirement Annuity (RA) contract form series 1000.24 © 2012 and prior years, Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF), 730 Third Avenue, New York, NY 10017. C5580

TIAA-CREF Fund & Account Commentary

TIAA Real Estate Account

Quarter-to-Date Ending June 30, 2012

Account Performance Highlights The TIAA Real Estate Account returned 2.52% in the second quarter of 2012 and 5.86% for the year to date as of June 30, 2012. Commercial real estate activity continued at a modest pace during the second quarter, as companies exhibited caution given the uncertain outlook for the U.S. economy. Similarly, commercial real estate fundamentals improved modestly. Gains were strongest in the apartment market and more moderate in office, industrial, and retail markets. For the second quarter (through May 2012, pending availability of full-quarter industry data), commercial property sales volumes fell 9%—the first quarterly decline since late 2009—due to investor caution and a lack of quality product. The apartment and retail sectors were the most active, with institutional investor interest remaining concentrated in major markets such as Washington, D.C., New York, Boston, San Francisco, and Los Angeles. Meanwhile, non-institutional investors were active in secondary and tertiary markets. The Green Street Advisors’ Commercial Property Price Index (“CPPI”) rose 1.7% in the second quarter, versus a 1.0% increase in the first. However, commercial property values as estimated by the CPPI have climbed 5% over the past year and are now 6% below their 2007 peak. According to Green Street Advisors, prices are still being held in check despite historically low return hurdles that continue to support valuations. Commercial property total returns moderated slightly in the quarter. The equal‑weight NCREIF Open End Diversified Core Equity (ODCE) Index (net-of-fees) returned 2.38% (versus 2.56% in the first quarter). For the 12 months ended June 30, 2012, the ODCE returned 11.46%.

As of June 30, 2012, the TIAA Real Estate Account’s total net assets were $14.5 billion. The Account’s performance is driven primarily by the Account’s real estate property investment portfolio, representing approximately 83.8% of total net assets and consisting of 102 real estate property investments. The properties are diversified among the four major asset types: office (49%), industrial (14%), retail (17%), and multi-family (17%), with an allocation to a portfolio of self-storage facilities and a fee interest in land and improvements in New York City. All but two of the properties are in the continental United States, with approximately 36% located in the East, 32% in the West, 27% in the South, and 2% in the Midwest. The two foreign assets consist of an office building located in London and a retail property in Paris. In addition to directly owned real estate, the Account invests in an indexed portfolio of REIT (real estate investment trust) stock, valued at $1.4 billion (9.6% of total net assets) and in six private equity real estate funds with a total value of $333.9 million (2.3% of total net assets), as of June 30, 2012. The remainder of the Account’s assets, approximately $2.7 billion (18.4% of total net assets) is held in marketable securities. The outstanding principal on the debt for the Account’s real estate property investments totaled $3.6 billion, a 19.7% loan to value ratio (below its 30% guideline) as of June 30, 2012. No real estate property investment transactions closed during the second quarter.

Positioning The Account will actively pursue new acquisitions, emphasizing industrial, retail, and multi-family properties in order to further rebalance the Account’s exposure to the office sector and target markets. We believe this strategic repositioning should help the Account benefit from the ongoing, albeit modest, U.S. economic recovery. The Account’s focus remains on institutional-quality properties in target markets that have a strong occupancy history, favorable tenant rollover schedules, and solid long-term growth potential.

Portfolios within each strategy are subject to certain risks such as market and investment style risk. Please consider all risks carefully prior to investing.

TIAA-CREF Fund & Account Commentary

TIAA Real Estate Account

Quarter-to-Date Ending June 30, 2012

Average Annual Returns*

TIAA Real Estate Account

Estimated Annual Expenses

Inception

Latest Quarter

1 Year

3 Year

5 Year

10 Year

Since Inception

0.92%

10/2/1995

2.52%

11.09%

5.92%

-2.27%

4.34%

5.85%

Top 10 Holdings Real Estate Investments

% of Total Investments

1001 Pennsylvania Avenue

4.0

Four Oaks Place

2.9

DDR Joint Venture

2.6

50 Fremont

2.4

Fourth and Madison

2.4

99 High Street

2.3

780 Third Avenue

2.1

425 Park Avenue

2.0

The Florida Mall

2.0

Ontario Industrial Portfolio

1.8

* The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown above, and you may have a gain or a loss when you redeem your mutual fund shares/annuity account accumulation units. For current performance information, including performance to the most recent month-end, please visit tiaa-cref.org, or call 800 842-2252. In general, the value of the TIAA Real Estate Account will fluctuate based on the underlying value of the direct real estate or real estate-related securities in which it invests. The risks associated with investing in the Real Estate Account include the risks associated with real estate ownership including among other things fluctuations in property values, higher expenses or lower income than expected, risks associated with borrowing and potential environmental problems and liability, as well as risks associated with participant flows and conflicts of interest. For a more complete discussion of these and other risks, please consult the prospectus. Top ten holdings are subject to change and may not reflect the current holdings of the Account. TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc. distribute securities products. Annuity contracts and certificates are issued by Teachers Insurance and Annuity Association (TIAA) and College Retirement Equities Fund (CREF), New York, NY.

You should consider the investment objectives, risks, charges and expenses carefully before investing. This presentation must be preceded or accompanied by a current prospectus. Please call 888 842-0318 or go to tiaa-cref.org/advisors for additional copies that contain this and other information. Please read the prospectus carefully before investing. For broker/dealer and financial advisor use only. Not for distribution to the general public. The TIAA Real Estate Account has filed a registration statement (including a prospectus) with the Securities and Exchange Commission for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents that the TIAA Real Estate Account has filed with the Securities and Exchange Commission for more complete information about the TIAA Real Estate Account and this offering. You may get these documents for free by visiting EDGAR on the Securities and Exchange Commission website at http://www.sec.gov. Alternatively, the TIAA Real Estate Account, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request by calling toll-free 800 842-2776. TIAA Real Estate Account Prospectus: http://www.tiaa-cref.org/pdf/prospectuses/realestate_prosp.pdf © 2012 Teachers Insurance and Annuity Association-College Retirement Equities Fund, 730 Third Avenue, New York, NY, 10017. C5581