College Retirement Equities Fund N-CSRSCertified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number File No. 811-04415

COLLEGE RETIREMENT EQUITIES FUND

(Exact Name of Registrant as specified in charter)

730 Third Avenue, New York, New York 10017-3206

(Address of Principal Executive Offices) (Zip code)

Rachael M. Zufall, Esq.

College Retirement Equities Fund

8500 Andrew Carnegie Blvd.

Charlotte, North Carolina 28262-8500

(Name and address of agent for service)

Registrant’s telephone number, including area code: 704-595-1000

Date of fiscal year end: December 31

Date of reporting period: June 30, 2021

Item 1. Reports to Stockholders.

As permitted by regulations adopted by the Securities and Exchange Commission (“SEC”), paper copies of the CREF Accounts’ (the “Accounts”) annual and semiannual reports will not be sent to you by mail, unless you specifically request paper copies of the reports. Instead, they will be made available on Teachers Insurance and Annuity Association of America’s (“TIAA”) website, TIAA.org, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive reports and other communications from the Accounts electronically anytime by either (1) updating your account settings at TIAA.org/eDelivery, if you hold your Account units through a TIAA-affiliated financial intermediary, account or retirement plan (each, a “TIAA Account”), or (2) contacting your financial intermediary (such as a broker-dealer or bank) through which you hold Account units.

If you invest in the Accounts through a TIAA Account, you may elect to receive all future reports in paper free of charge by updating your account settings at TIAA.org/eDelivery or by calling 877-518-9161 during regular business hours. If you invest through another financial intermediary, you can contact your financial intermediary to request that you receive paper copies of your reports. Your election to receive reports in paper will apply to all funds held through your financial intermediary or, if you invest through a TIAA Account, to all funds held with the Accounts and any other investment companies within the same group of related investment companies.

Contents

Understanding this report

This semiannual report contains information about the CREF variable annuity accounts and describes their results for the six months ended June 30, 2021. The report contains four main sections:

The views and opinions expressed in this report are through the end of the period, as stated on the cover of this report. They are subject to change at any time based on a variety of factors. As such, they are not guarantees of future performance or investment results and should not be taken as investment advice. To see the risks of investing in any account, please read the latest prospectus.

As always, you should carefully consider the investment objectives, risks, charges and expenses of any account before investing. For a prospectus that contains this and other important information, please visit our website at TIAA.org, or call 877-518-9161. We urge you to read the prospectus carefully before investing.

Letter to CREF participants

Domestic and international stock markets generated solid returns for the period, but global economies experienced mixed results as they recovered from the COVID-19 pandemic. The U.S. economy expanded at a brisk pace during the first quarter of 2021; however, countries in the 19-nation euro area and the United Kingdom contracted. Most central banks around the world kept near-zero benchmark interest rates in place over the six months. The U.S. Federal Reserve maintained the federal funds target rate at 0.00%–0.25% but took note of rising inflation levels in the latter months of the period. The European Central Bank and the Bank of England also left their benchmark rates unchanged.

CREF performance review

Six of the eight CREF accounts generated positive returns for the period. In general, stocks outperformed bonds. Among domestic equities, small-cap shares outperformed larger caps. Domestic equities generally outpaced international stocks.

The Stock Account—the largest CREF account in terms of net assets—gained 13.4% but modestly lagged its composite benchmark due to expenses. The Equity Index Account advanced 14.9% but fell slightly short of its benchmark, primarily due to expenses. The Growth Account returned 13.0% but just slightly trailed its benchmark. The Global Equities Account advanced 10.8% but lagged its benchmark. The Social Choice Account, which excludes certain stocks and bonds due to environmental, social and governance criteria, surpassed its benchmark with an advance of 7.6%.

Among fixed-income accounts, the Bond Market Account returned –1.2%, outperforming its benchmark. The Inflation-Linked Bond Account gained 2.0% but trailed its index. The Money Market Account, which returned 0.0%, slightly underperformed its benchmark. For more information regarding the performance of the CREF accounts, please see the commentaries starting on page 10.

Brad Finkle

Liza Tyler

Stocks gained while bond returns were negative

The domestic stock market, as represented by the Russell 3000^® Index, rose 15.1%. Foreign equities, as measured by the MSCI EAFE^® Index, gained 8.8%. U.S. investment-grade fixed-rate bonds, as represented by the Bloomberg Barclays U.S. Aggregate Bond Index, returned –1.6%. Yields on longer-term U.S. Treasury securities rose, sending bond prices generally lower (bond yields move in the opposite direction of prices).

Staying focused on a long-term financial plan

It’s refreshing to see the pace of life getting back to normal after enduring the challenges of the COVID-19 pandemic. Businesses and restaurants are experiencing increased customer activity, and travel appears to be on the rise.

However, seasoned long-term investors know that they will inevitably experience ups and downs in the financial markets. As such, we believe that no matter what the economic outlook may be, maintaining a diversified portfolio as part of a long-term, well-thought-out financial plan is a wise course of action. Furthermore, our experience has shown that a professionally managed portfolio, which includes multiple asset classes, can provide the means to help investors achieve the appropriate balance of risk and reward and reach their investment goals. Of course, diversification does not guarantee against market losses, and past performance cannot guarantee future results.

If you have questions or concerns about your investments, we recommend that you speak with your financial advisor or call a TIAA financial consultant. To learn more, visit us at TIAA.org or call 800-842-2252. We would be pleased to assist you.

Information for CREF participants

Portfolio holdings

Securities and Exchange Commission (SEC) rules allow investment companies to list the top holdings of each account in their annual and semiannual reports instead of providing complete portfolio listings. CREF also files complete portfolio listings with the SEC, and they are available to the public.

You can obtain a complete list of the CREF accounts’ holdings (Schedules of Investments) as of the most recently completed fiscal quarter in the following ways:

You can also obtain a complete list of the CREF accounts’ portfolio holdings as of the most recently completed fiscal quarter, and for prior quarter-ends, from our SEC Form N-CSR and Form N-PORT or Form N-MFP (for money market products only) filings. Form N-CSR filings are as of December 31 or June 30; Form N-PORT or Form N-MFP filings are as of March 31 or September 30. Copies of these forms are available:

Proxy voting

CREF’s ownership of stock gives it the right to vote on proxy issues of companies in which it invests. A description of our proxy voting policies and procedures can be found on our website at TIAA.org or on the SEC’s website at sec.gov. You can also call us at 800-842-2252 to request a free copy. A report of how the accounts voted during the most recently completed twelve-month period ended June 30 can be found on our website or on Form N-PX at sec.gov.

Contacting TIAA

There are three easy ways to contact us: by email, using the Contact Us link at the top of our home page; by mail at TIAA, 730 Third Avenue, New York, NY 10017-3206; or by phone at 800-842-2252.

Account management

The CREF Accounts are managed by the portfolio management teams of TIAA-CREF Investment Management, LLC. The members of these teams are responsible for the day-to-day investment management of the accounts.

About the accounts’ benchmarks

CREF Stock Account

The Account’s composite benchmark is a weighted average of two unmanaged indexes: the Russell 3000^® Index, which measures the performance of the broad U.S. stock market, and the MSCI All Country World (ACWI) ex USA Investable Market Index (IMI), which measures the performance of small-, mid- and large-cap stocks in 49 developed- and emerging-markets nations throughout the world, excluding the United States.

The Morningstar Aggressive Target Risk Index is a broad-based securities market index for the Stock Account and has a 95% global equity market exposure and a multi-asset class exposure that is similar to the Stock Account.

CREF Global Equities Account

The Account’s benchmark is the MSCI All Country World Index (ACWI), which measures the performance of large- and mid-capitalization stocks in 23 developed-markets countries and 27 emerging-markets countries.

CREF Growth Account

The Account’s benchmark is the Russell 1000^® Growth Index, a subset of the Russell 1000 Index, which measures the performance of the stocks of the 1,000 largest companies in the Russell 3000 Index, based on market capitalization. The Russell 1000 Growth Index measures the performance of those stocks of the Russell 1000 Index with higher relative forecasted growth rates and price/book ratios.

CREF Equity Index Account

The Account’s benchmark is the Russell 3000 Index, which measures the performance of the stocks of the 3,000 largest publicly traded U.S. companies, based on market capitalization. The index measures the performance of about 98% of the total market capitalization of the publicly traded U.S. equity market.

CREF Bond Market Account

The Account’s benchmark is the Bloomberg Barclays U.S. Aggregate Bond Index, which measures the performance of the domestic investment-grade fixed-rate bond market, including government and corporate securities, agency mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities.

About the accounts’ benchmarks

CREF Inflation-Linked Bond Account

The Account’s benchmark is the Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year Index, which measures the performance of fixed-income securities with maturities between 1 and 10 years that are adjusted for inflation, as measured by the Consumer Price Index for All Urban Consumers (CPI-U).

CREF Social Choice Account

The Account’s composite benchmark is a weighted average of three unmanaged indexes: the Russell 3000^® Index, which measures the performance of the broad U.S. stock market; the Bloomberg Barclays U.S. Aggregate Bond Index, which measures the performance of the domestic investment-grade fixed-rate bond market; and the MSCI EAFE+Canada Index, which measures stock performance in 22 developed-markets nations, excluding the United States.

The Morningstar Moderate Target Risk Index is a broad-based securities market index for the Social Choice Account. The index has a multi-asset class exposure (60% global equity, 40% global fixed income) that is similar to the Social Choice Account.

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses. For additional details about the benchmark indexes, please read the accounts’ latest prospectus.

Russell 1000^® and Russell 3000 are trademarks and service marks of Frank Russell Company. TIAA products are not promoted or sponsored by, or affiliated with, Frank Russell Company. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. This report is not approved, reviewed or produced by MSCI. EAFE stands for Europe, Australasia, Far East.

Important information about expenses

All participants in the CREF Accounts incur ongoing costs, including management fees and other account expenses.

The expense examples that appear in this report are intended to help you understand your ongoing costs only (in U.S. dollars) and do not reflect transactional costs. The examples are designed to help you compare these ongoing costs with the ongoing costs of investing in other variable annuity accounts and mutual funds. Participants in the CREF Accounts do not incur a sales charge for purchases or other distributions.

The examples are based on an investment of $1,000 invested at the beginning of the six-month period and held for the entire period (January 1, 2021–June 30, 2021).

Actual expenses

The first section in each table uses the Account’s actual expenses and its actual rate of return. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the six-month period.

Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses paid during period” to estimate the expenses you paid during the six-month period.

Hypothetical example for comparison purposes

The second section in the table shows hypothetical account values and expenses based on the Account’s actual expense ratio for each Class for the six-month period and an assumed 5%-per-year rate of return before expenses. This was not the Account’s actual return.

This hypothetical example cannot be used to estimate the actual expenses you paid for the period, but rather allows you to compare the ongoing costs of investing in the Account with the costs of other accounts. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other variable annuity accounts and mutual funds.

CREF Stock Account

Performance for the six months ended June 30, 2021

The CREF Stock Account returned 13.35% for the period, compared with the 13.45% return of its composite benchmark, a weighted average of the Russell 3000^® Index and the MSCI All Country World (ACWI) ex USA Investable Market Index (IMI). For the twelve months ended June 30, 2021, the Account returned 41.80%, versus 42.09% for the composite index. (All returns for the Account are for Class R1.)

The U.S. economy grew at a solid pace during the period, extending its recovery from the impact of the COVID-19 pandemic. The unemployment rate declined from 6.3% in January 2021 to 5.9% in June. Core inflation, which includes all items except food and energy, rose 4.5% over the twelve months ended June 30, 2021. The Federal Reserve maintained the federal funds target rate at 0.00%–0.25%.

The broad U.S. stock market, as measured by the Russell 3000 Index, gained 15.11% for the period. Value stocks outperformed growth shares, while small-cap equities outperformed larger stocks. (Returns by investment style and capitalization size are based on the Russell indexes.) International stocks, as measured by the MSCI ACWI ex USA IMI, gained 9.58% in U.S.-dollar terms for the six months.

Account slightly lagged its composite benchmark

The Account’s management team typically uses a combination of three different investment strategies—active management, quantitative management and indexing—which, in turn, invest in both domestic and foreign stocks.

For the six-month period, the Account slightly trailed its composite benchmark index, primarily due to its expense charge. In the United States, outperformance by quantitative strategies offset underperformance by active strategies. Among foreign investments, the Account’s actively managed global strategy made a solid contribution, while emerging markets detracted slightly.

The Account’s returns may sometimes diverge from the returns of its benchmark more than would be expected. This divergence may be the result of the Account’s fair value pricing adjustments or of the timing of foreign currency valuations. Many foreign exchanges close for trading before the Account’s accumulation unit value (AUV) is calculated (see the current CREF prospectus for more details on AUV calculations). In the intervening hours, the values of foreign securities can change, and these changes are not reflected immediately in the returns of the Account’s benchmark. These changes are, however, taken into account to value the Account’s portfolio holdings at the time the Account’s AUV is calculated; these are known as fair value pricing adjustments.

CREF Stock Account

Performance as of June 30, 2021

The returns in this report show 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, and you may have a gain or a loss when you redeem your accumulation units. For current performance information, including performance to the most recent month-end, please visit TIAA.org.

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

Expense example

Six months ended June 30, 2021

CREF Stock Account

181 days in the six months ended June 30, 2021. The Account’s annualized six-month expense ratios for that period were 0.47% for Class R1, 0.31% for Class R2 and 0.26% for Class R3.

For more information about this expense example, please see page 9.

CREF Global Equities Account

Performance for the six months ended June 30, 2021

The CREF Global Equities Account returned 10.83% for the period, compared with the 12.30% return of its benchmark, the MSCI All Country World Index (ACWI). For the twelve months ended June 30, 2021, the Account returned 41.57%, versus 39.26% for the index. (All returns for the Account are for Class R1.)

International stocks in both developed and emerging markets posted solid gains for the period, although the pace of economic recovery from the COVID-19 pandemic varied around the world. During the first quarter of 2021, the Chinese economy grew at a robust pace; however, countries in the 19-nation euro area and the United Kingdom contracted. Global central banks generally left accommodative monetary policies unchanged during the period, maintaining very low interest rates and purchasing assets to support their economies. The U.S. Federal Reserve held the federal funds target rate steady at 0.00%–0.25%. The European Central Bank left its benchmark rates unchanged at near-zero levels. The Bank of England maintained its benchmark rate at 0.1%.

Thirty-eight of the 50 countries represented in the MSCI ACWI posted gains in U.S.-dollar terms for the six-month period. In local-currency terms, the returns of most countries were higher than—or the same as—their U.S.-dollar returns.

Account trailed its benchmark

The Account underperformed its benchmark for the six months. An out-of-benchmark investment in British online retailer THG detracted most, followed by overweight positions in Japanese game maker Nintendo and Danish offshore wind farm developer Orsted.

Other positions helped offset these detractors, including overweights in Dutch financial firm ING Groep, copper and gold producer Freeport-McMoRan and financial company Morgan Stanley. ING reported better-than-expected profits, while rising copper prices benefited Freeport-McMoRan. Morgan Stanley saw record revenues, helped by strength in its wealth management business.

The Account’s returns may sometimes diverge from the returns of its benchmark more than would be expected. This divergence may be the result of the Account’s fair value pricing adjustments or of the timing of foreign currency valuations. Many foreign exchanges close for trading before the Account’s accumulation unit value (AUV) is calculated (see the current CREF prospectus for more details on AUV calculations). In the intervening hours, the values of foreign securities can change, and these changes are not reflected immediately in the returns of the Account’s benchmark. These changes are, however, taken into account to value the Account’s portfolio holdings at the time the Account’s AUV is calculated; these are known as fair value pricing adjustments.

CREF Global Equities Account

Performance as of June 30, 2021

The returns in this report show 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, and you may have a gain or a loss when you redeem your accumulation units. For current performance information, including performance to the most recent month-end, please visit TIAA.org.

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

Expense example

Six months ended June 30, 2021

For more information about this expense example, please see page 9.

CREF Global Equities Account

CREF Growth Account

Performance for the six months ended June 30, 2021

The CREF Growth Account returned 12.96% for the period, compared with the 12.99% return of its benchmark, the Russell 1000^® Growth Index. For the twelve months ended June 30, 2021, the Account returned 42.37%, versus 42.50% for the index. (All returns for the Account are for Class R1.)

The U.S. economy grew at a solid pace during the period, extending its recovery from the impact of the COVID-19 pandemic. The unemployment rate declined from 6.3% in January 2021 to 5.9% in June. Core inflation, which includes all items except food and energy, rose 4.5% over the twelve months ended June 30, 2021. The Federal Reserve left the federal funds target rate unchanged during the period, maintaining the key short-term interest-rate measure at 0.00%–0.25%. Crude oil prices rose sharply, reaching their highest level since October 2018.

The broad U.S. stock market, as measured by the Russell 3000^® Index, gained 15.11% for the period. Value stocks outperformed growth shares, while small-cap equities outperformed larger stocks. (Returns by investment style and capitalization size are based on the Russell indexes.)

Account modestly trailed its benchmark

All eleven industry sectors in the Russell 1000 Growth Index advanced for the six months. Energy (up 42.9%) was the best-performing sector amid rising oil prices. Information technology (up 13.1%)—the benchmark’s largest sector—contributed more than 40.0% of the index’s return. The next-largest contributor was communication services (up 26.0%), followed by health care (up 12.4%). Together, these four sectors represented over 70.0% of the benchmark’s total market capitalization on June 30, 2021. Consumer staples (up 3.3%) and materials (up 4.3%) registered the weakest returns.

The Account slightly underperformed its benchmark for the period, as several unfavorable stock allocations limited its relative performance. The largest detractors were an underweight position in Microsoft and an out-of-benchmark position in Flutter Entertainment. Microsoft benefited from strength in its cloud-computing and video gaming businesses, while Flutter Entertainment was hurt by the departure of a key executive. The next-largest detractor was an underweight position in biotechnology firm Moderna.

The top contributor to relative performance was an underweight position in Apple, which was hurt by concerns that a global shortage of semiconductors could slow sales of its products. The next-largest contributors were overweight positions in PayPal Holdings, which reported record earnings as more consumers used digital forms of payment, and Alphabet (the parent company of Google), which benefited from growth in online advertising.

CREF Growth Account

Performance as of June 30, 2021

The returns in this report show 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, and you may have a gain or a loss when you redeem your accumulation units. For current performance information, including performance to the most recent month-end, please visit TIAA.org.

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

Expense example

Six months ended June 30, 2021

For more information about this expense example, please see page 9.

CREF Growth Account

CREF Equity Index Account

Performance for the six months ended June 30, 2021

The CREF Equity Index Account returned 14.92% for the period, compared with the 15.11% return of its benchmark, the Russell 3000^® Index. For the twelve months ended June 30, 2021, the Account returned 43.57%, versus 44.16% for the index. (All returns for the Account are for Class R1.)

For the six-month period, the Account’s return underperformed that of its benchmark index due to the effect of expenses. The Account’s return includes a deduction for expenses, while the benchmark’s does not. The Account had a risk profile similar to that of its benchmark.

The U.S. economy grew at a solid pace during the period, extending its recovery from the impact of the COVID-19 pandemic. The unemployment rate declined from 6.3% in January 2021 to 5.9% in June. Core inflation, which includes all items except food and energy, rose 4.5% over the twelve months ended June 30, 2021. The Federal Reserve left the federal funds target rate unchanged during the period, maintaining the key short-term interest-rate measure at 0.00%–0.25%. Crude oil prices rose sharply, reaching their highest level since October 2018.

The broad U.S. stock market, as measured by the Russell 3000 Index, generated double-digit gains for the period. Value stocks outperformed growth shares, while small-cap equities outperformed larger stocks. (Returns by investment style and capitalization size are based on the Russell indexes.)

All benchmark sectors advanced

All eleven industry sectors in the Russell 3000 Index posted gains for the six months. Energy (up 48.0%) delivered the strongest return, helped by the steep increase in oil prices. Information technology (up 12.9%)—the benchmark’s largest sector—was the top contributor to the index’s return. The next-largest contributors were financials (up 24.8%) and communication services (up 19.3%). Together, these four sectors represented more than one-half of the benchmark’s total market capitalization on June 30, 2021. The worst performers were utilities (up 2.4%) and consumer staples (up 5.8%), two defensive sectors that tend to lag when the economy is accelerating.

For the six-month period, three of the five largest stocks in the Russell 3000 Index registered impressive gains that exceeded the overall return of the benchmark. Alphabet (the parent company of Google) and Facebook performed best, as both companies benefited from strong growth in spending on digital advertising. Next in line was Microsoft, which experienced robust demand for its cloud-computing services and video gaming products. Amazon.com and Apple generated gains but lagged the benchmark.

CREF Equity Index Account

Performance as of June 30, 2021

The returns in this report show 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, and you may have a gain or a loss when you redeem your accumulation units. For current performance information, including performance to the most recent month-end, please visit TIAA.org.

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

Expense example

Six months ended June 30, 2021

For more information about this expense example, please see page 9.

CREF Equity Index Account

CREF Bond Market Account

Performance for the six months ended June 30, 2021

The CREF Bond Market Account returned –1.21% for the period, compared with the –1.60% return of its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index. For the twelve months ended June 30, 2021, the Account returned 1.33% versus –0.33% for the index. (All returns for the Account are for Class R1.)

The U.S. economy grew at a solid pace during the period, extending its recovery from the impact of the COVID-19 pandemic. The unemployment rate declined from 6.3% in January 2021 to 5.9% in June. Core inflation, which includes all items except food and energy, rose 4.5% over the twelve months ended June 30, 2021. Crude oil prices increased sharply, reaching their highest level since October 2018.

The Federal Reserve left the federal funds target rate unchanged during the period, maintaining the key short-term interest-rate measure at 0.00%–0.25%. Yields on short-term U.S. Treasury securities edged lower while yields on intermediate- and long-term securities rose (bond yields move in the opposite direction of prices). Foreign central banks also left accommodative monetary policies in place during the period. The European Central Bank and the Bank of England held benchmark rates at near-zero levels.

Account surpassed its benchmark

Most sectors in the Bloomberg Barclays U.S. Aggregate Bond Index declined for the six-month period due to the rise in intermediate- and long-term bond yields. The U.S. Treasuries sector, the largest in the index with a weight of 37.2%, returned –2.6%. Corporate bonds, the second-largest sector, accounting for 26.7% of the index’s total market capitalization on June 30, 2021, returned –1.3%. Mortgage-backed securities—the benchmark’s third-largest sector at 26.4%—returned –0.8%, while asset-backed securities (ABS) posted a small gain of 0.2%, and commercial mortgage-backed securities (CMBS) were slightly negative at –0.5%.

The Account outperformed its benchmark for the period, primarily due to its sector allocation, with broadly diversified overweights to non-government sectors. An allocation to corporate bonds, including small allocations to high yield and emerging-markets corporates, were especially helpful. Account positions in the emerging-markets debt, ABS, municipal bonds and CMBS sectors also contributed. Corresponding underweights to mortgage-backed securities and U.S. Treasuries were also beneficial as these sectors were hurt by rising interest rates. The Account’s shorter-than-benchmark duration helped as rates rose over the course of the period.

By contrast, the Account’s yield curve positioning—how it was invested across different maturities—was the primary detractor.

CREF Bond Market Account

Performance as of June 30, 2021

The returns in this report show 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, and you may have a gain or a loss when you redeem your accumulation units. For current performance and 30-day SEC yield information, including performance to the most recent month-end, please visit TIAA.org.

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

Expense example

Six months ended June 30, 2021

For more information about this expense example, please see page 9.

CREF Bond Market Account

CREF Inflation-Linked Bond Account

Performance for the six months ended June 30, 2021

The CREF Inflation-Linked Bond Account returned 2.04% for the period, compared with the 2.36% return of its benchmark, the Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) 1–10 Year Index. For the twelve months ended June 30, 2021, the Account returned 5.73% versus 6.60% for the index. (All returns for the Account are for Class R1.)

The U.S. economy grew at a solid pace during the period, extending its recovery from the impact of the COVID-19 pandemic. The unemployment rate declined from 6.3% in January 2021 to 5.9% in June. Core inflation, which includes all items except food and energy, rose 4.5% over the twelve months ended June 30, 2021. Crude oil prices increased sharply, reaching their highest level since October 2018.

The Federal Reserve left the federal funds target rate unchanged during the period, maintaining the key short-term interest-rate measure at 0.00%–0.25%. Yields on short-term U.S. Treasury securities edged lower while yields on intermediate- and long-term securities rose (bond yields move in the opposite direction of prices). Foreign central banks also left accommodative monetary policies in place during the period. The European Central Bank held benchmark rates at near-zero levels, and the Bank of England maintained its benchmark rate at 0.1%.

TIPS surpassed the broader bond market

For the six months, the TIPS 1–10 Year Index outperformed the –1.60% return of the broad domestic investment-grade fixed-rate bond market, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index.

Yields on intermediate- and longer-maturity high-quality bonds rose during the period as investors became concerned that the tight labor markets and peaking U.S. economic growth could lead to an increase in inflation. As a result, bond performance overall was generally negative. However, these developments were more favorable for Treasury inflation-protected securities (TIPS), which outperformed most other bond sectors for the period.

   The Account trailed its benchmark, primarily due to its expense charge. The Account’s return includes a deduction for expenses, while the benchmark’s return does not. Since the Account’s portfolio resembled the composition of its benchmark, the above discussion of the benchmark’s performance also applies to the Account’s performance.

During the period, the Account’s portfolio managers kept the Account’s duration—a measure of its sensitivity to interest-rate changes—close to that of the TIPS 1–10 Year Index. This strategy helped the Account’s risk and reward characteristics to more closely resemble those of its benchmark.

CREF Inflation-Linked Bond Account

Performance as of June 30, 2021

The returns in this report show 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, and you may have a gain or a loss when you redeem your accumulation units. For current performance and 30-day SEC yield information, including performance to the most recent month-end, please visit TIAA.org.

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

Expense example

Six months ended June 30, 2021

For more information about this expense example, please see page 9.

CREF Inflation-Linked Bond Account

CREF Social Choice Account

Performance for the six months ended June 30, 2021

The CREF Social Choice Account returned 7.59% for the period, compared with the 7.30% return of its composite benchmark, a weighted average of the Russell 3000^® Index, the MSCI EAFE+Canada Index and the Bloomberg Barclays U.S. Aggregate Bond Index. For the twelve months ended June 30, 2021, the Account returned 23.28%, versus 23.13% for the benchmark. The Account utilizes environmental, social and governance (ESG) criteria, while the benchmark does not. (All returns for the Account are for Class R1.)

Because of its ESG criteria, the Account did not invest in a number of stocks and bonds that were included in the indexes that comprise its composite benchmark. Avoiding these investments produced mixed results, but the net effect was that the Account outperformed its benchmark.

Relative to the Russell 3000 Index, the performance of the Account’s domestic equity component was helped by omitting Amazon.com, Johnson & Johnson and telecommunications firm Qualcomm. Conversely, excluding ExxonMobil, Facebook and Bank of America was disadvantageous. Relative to the MSCI EAFE+Canada Index, the Account’s foreign holdings benefited from avoiding Swiss drug maker Novartis, Japanese conglomerate Softbank Group and British consumer products giant Unilever. In contrast, omitting French luxury goods firm LVMH, Royal Bank of Canada and Toronto-Dominion Bank was detrimental.

Account outperformed its composite benchmark

To compensate for the Account’s exclusion of some stocks, its managers use quantitative (mathematical) modeling and other techniques in an attempt to match the overall investment characteristics of the portfolio with those of its composite benchmark.

Among the Account’s domestic equity holdings, overweight positions in semiconductor companies NVIDIA and Applied Materials, as well as Marathon Oil, contributed most. Conversely, the holdings that detracted most from relative performance were an overweight investment in Vertex Pharmaceuticals, an underweight in Apple and an overweight in drug maker Merck.

Compared to the MSCI EAFE+Canada Index, the Account’s foreign holdings benefited most from an underweight in Japanese pharmaceutical company Daiichi Sankyo, followed by overweights in Japanese marine transportation company Nippon Yusen and Canada’s Cenovus Energy. By contrast, overweights in Danish wind farm developer Orsted, French digital services provider Atos and Japan’s Chugai Pharmaceutical detracted most from relative performance.

The Account’s fixed-income component outperformed the –1.60% return of the Bloomberg Barclays U.S. Aggregate Bond Index, mainly due to yield curve positioning within the U.S. Treasuries sector.

CREF Social Choice Account

The returns in this report show 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, and you may have a gain or a loss when you redeem your accumulation units. For current performance information, including performance to the most recent month-end, please visit TIAA.org.

You cannot invest directly in any index. Index returns do not include a deduction for fees or expenses.

Expense example

Six months ended June 30, 2021

CREF Social Choice Account

181 days in the six months ended June 30, 2021. The Account’s annualized six-month expense ratios for that period were 0.42% for Class R1, 0.26% for Class R2 and 0.21% for Class R3.

For more information about this expense example, please see page 9.

CREF Money Market Account

Performance for the six months ended June 30, 2021

The CREF Money Market Account returned 0.00% for the six-month period, compared with the 0.01% return of the iMoneyNet Money Fund Averages™—All Government, a simple average of over 500 money market funds that invest in short-term U.S. government securities. The iMoneyNet average is not an index, and its return reflects the deduction of expenses charged by the funds included in the average. (All returns for the Account are for Class R1.)

The U.S. economy grew at a solid pace during the period, extending its recovery from the impact of the COVID-19 pandemic. The unemployment rate declined from 6.3% in January 2021 to 5.9% in June. Core inflation, which includes all items except food and energy, rose 4.5% over the twelve months ended June 30, 2021. Crude oil prices increased sharply, reaching their highest level since October 2018.

The Federal Reserve left the federal funds target rate unchanged during the period, maintaining the key short-term interest-rate measure at 0.00%–0.25%. Yields on short-term U.S. Treasury securities edged lower while yields on intermediate- and long-term securities rose (bond yields move in the opposite direction of prices). Foreign central banks also left accommodative monetary policies in place during the period. The European Central Bank held benchmark rates at near-zero levels, and the Bank of England maintained its benchmark rate at 0.1%.

The low interest-rate environment continued to keep yields on short-term government securities at near-zero levels. The “secured overnight financing rate” (SOFR), which represents dealer transactions in Treasury collateralized overnight repurchase agreements, has become widely accepted by government agencies as a key indicator of short-term government money market rates. Over the six-month period, SOFR declined from 0.10% on January 4, 2021, to 0.05% on June 30, 2021. With short-term interest rates at such low levels, money market fund yields followed suit and remained at almost zero.

Account slightly trailed the iMoneyNet average

In an environment of historically low money market rates, the Money Market Account’s return was zero—slightly lower than that of the iMoneyNet average for the six-month period. The Account continued to invest in floating-rate government agency securities, which provide a yield enhancement over short-term fixed-rate securities while maintaining the high credit quality of government agency issues. As of June 29, 2021, the Account’s weighted average maturity (WAM) was 33 days, versus 36 days for the iMoneyNet average. iMoneyNet releases their data on a weekly basis, and June 29 was the last date of release for the month.

CREF Money Market Account

Net annualized yield for the 7 days ended June 29, 2021^§

The current yield more closely reflects current earnings than does the total return.

Performance as of June 30, 2021

The returns in this report show 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, and you may have a gain or a loss when you redeem your accumulation units. For current performance information, including performance to the most recent month-end, please visit TIAA.org.

You could lose money by investing in this Account. Because the accumulation unit value of the Account will fluctuate, the value of your investment may increase or decrease. An investment in the Account is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The Account’s sponsor has no legal obligation to provide support to the Account, and you should not expect that the sponsor will provide financial support to the Account at any time. For a detailed discussion of risk, please see the prospectus. The current yield more closely reflects current earnings than does the total return.

Note: Unlike most money market funds, the CREF Money Market Account does not distribute income on a daily basis. Therefore, the Account does not maintain a constant value of $1.00 per accumulation unit.

CREF Money Market Account

Expense example

Six months ended June 30, 2021

For more information about this expense example, please see page 9.

Summary portfolio of investments (unaudited)

CREF Stock Account  ■  June 30, 2021