2016 Q4 2016
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Quarterly Report 4th Quarter, 2016 Contents Section I: Asset & Account Growth Section II: Call-Center / Web Data Section III: Investment Performance Section IV: Customer Service Performance Section V: Demographic Information Section VI: Marketing Activity Section VII: Creative Samples Section VIII: Public Relations & Social Media Section IX: Miscellaneous Data 2 Asset & Account Growth 4th Quarter 2016 Highlights and Summary . The 4th quarter 2016 ended with Program assets of $733.3 million, a 1.8% increase from last quarter’s assets of $720.3 million and an 8.2% increase from last year’s 4th quarter results of $677.7 million. At the end of the quarter, total Program accounts were 48,295, up by 1.6% from 3rd quarter 2016 (47,557) and by 3.5% from last year’s 4th quarter results (46,645). TIAA PUBLIC 4 Highlights and Summary Program Highlights - Period Ended December 31st, 2016 Assets Accounts* Average Balance YTD Contributions YTD Redemptions YTD Net Flows $733,310,202 48,295 $15,184 $76,699,027 ($63,180,018) $13,519,009 Program Highlights - 4th Quarter, 2016 Quarterly Quarterly Quarterly Accounts Opened Accounts Closed Net New Accounts Contributions Redemptions Net Flows 1,194 456 738 $22,696,674 ($12,700,989) $9,995,685 Program Asset and Account Growth $ 750,000 48,295 47,557 47,473 48,000 47,072 $ 700,000 46,645 46,109 46,000 $ 650,000 $733,310 $720,315 $710,765 $688,484 $677,694 44,000 $ 600,000 $651,943 $ 550,000 42,000 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Assets Accounts *Accounts are defined as Unique-Owner-Beneficiary Relationships TIAA PUBLIC 5 Account & Net Flow Performance Summary . During the 4th quarter of 2016, the Program added a total of 1,194 new accounts, a 23.7% increase from last year’s 4th quarter results of 965. With 456 accounts closing, there were 738 net new accounts for 4th quarter 2016. Contributions for the 4th quarter were $22.7 million versus $21.5 million for the same time period last year, an increase of 5.5%. Redemptions for the 4th quarter were $12.7 million versus $12.4 million for the same time period last year, an increase of 2.6%. Net Contributions (after redemptions) for the 4th quarter were $10.0 million versus $9.1 million for the same time period last year, up by 9.3%. For the year, qualified withdrawals and outbound rollovers made up 90.4% and 5.0% of total withdrawals respectively. This compares favorably to the same period last year as qualified withdrawals and outbound rollovers made up 89.5% and 5.7% of total withdrawals respectively. Average Program account size at the end of December 2016 was $15,184 up 4.5% from the same period 2015 ($14,529). The 4th quarter closed with 291 employers offering payroll deduction; with 857 employees enrolled and $775,291 thousand in payroll deduction contributions. TIAA PUBLIC 6 Accounts & Net Flow Data 4th Qtr 4th Qtr Q4 '16 v. Full Year 2016 v. Date Full Year 2015 October November December 2015 2016 Q4 '15 2016 2015 Program Contributions (000's) $ 21,521 $ 80,033 $5,904 $5,170 $11,623 $22,697 5.5% $76,699 -4.2% Program Redemptions (000's) $ (12,375) $ (58,362) $ (3,240) $ (2,952) $ (6,508) $ (12,701) 2.6% $ (63,180) 8.3% Program Net Flows (000's) $ 9,146 $ 21,672 $ 2,664 $ 2,218 $5,114 $ 9,996 9.3% $ 13,519 -37.6% Gross New Account Growth 965 3,922 305 296 593 1,194 23.7% 4,030 2.8% Closed Accounts 429 2,106 154 111 191 456 6.3% 2,380 13.0% Net New Account Growth 536 1,816 151 185 402 738 37.7% 1,650 -9.1% 4th Qtr Q4 '16 v. Q4 '16 v. Date Through: October November December 2015 Q3 '16 Q4 '15 Total Program Assets (000's)* $677,694 $712,703 $719,602 $733,310 1.8% 8.2% Total Program Accounts* 46,645 47,708 47,893 48,295 1.6% 3.5% Average Account Size $14,529 $14,939 $15,025 $15,184 0.2% 4.5% *Total assets and total accounts are totals at that point in time, while other metrics such as net flow data and new accounts represent the total for that particular time period. 2016 v 2015 Plan Contributions (000's) Program Quarterly Contributions First Year Contributions - Lower Bar Re-Contributions - Upper Bar & New Accounts 1,194 1,250 For the quarter, first year $ 25,000 1,120 $ 25,000 contributions are up 26% and for the year down 5%, over last year 965 1,000 $ 20,000 908 $ 20,000 808 750 $ 15,000 $ 15,000 $20,485 $17,553 $17,439 $ 22,697 $ 21,521 $18,215 $ 10,000 $ 20,726 500 $14,942 $14,962 $ 10,000 $ 18,153 $12,233 $11,829 $ 15,124 $ 5,000 250 $ 5,000 $5,144 $4,202 $3,557 $4,082 $2,511 $3,190 $3,094 $3,294 0 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2015 Q1 2016 Q2 2015 Q2 2016 Q3 2015 Q3 2016 Q4 2015 Q4 2016 Contributions New Accounts TIAA PUBLIC 7 Net Flow & Account Data Full Year Date Q4 2015 Oct-16 Nov-16 Dec-16 Q4 2016 Full Year 2016 +/- % change 2015 Program Contributions (000's) $21,521 $80,033 $ 5,904 $ 5,170 $ 11,623 $22,697 $76,699 -4.2% Re-Contributions $ 17,439 $ 65,098 $ 4,587 $ 4,055 $ 8,910 $ 17,553 $62,560 -3.9% First Year Contributions $ 4,082 $ 14,935 $ 1,316 $ 1,115 $ 2,713 $ 5,144 $14,140 -5.3% % of Contributions are Rollovers - In 2.6% 4.1% 5.5% 3.2% 7.7% 6.1% 5.5% 1.4% Program Redemptions (000's) $ (12,375) $ (58,362) $ (3,240) $ (2,952) $ (6,508) $ (12,701) $ (63,180) 8.3% Qualified Redemption 90.7% 89.5% 82.0% 78.1% 95.8% 88.2% 90.4% 0.9% Non-Qualified Redemption 4.8% 4.5% 8.5% 6.3% 3.2% 5.3% 4.5% 0.1% Outbound Rollovers 4.1% 5.7% 9.5% 15.6% 0.9% 6.5% 5.0% -0.7% Scholarship (and other) 0.4% 0.3% 0.0% 0.0% 0.0% 0.0% 0.03% -0.2% Program Net Flows (000's) $ 9,146 $ 21,672 $ 2,664 $ 2,218 $ 5,114 $ 9,996 $ 13,519 -37.6% Full Year 2016 v. Full Year 2015 2015 2016 Contribution Breakdown: 4th Quarter by Dollar Amount Check Contribution Averages in $(000's) with # of Contributing Accounts 2016 ACP $4,000 1.8% Payroll ReContribution Rate: ACH-Special 2015 at 52.2% 34.5% 2016 at 51.2% E-Gift $3,000 34.8% $4,038 $3,737 $2,000 $2,781 3,699 3,784 $2,621 $2,952 $2,773 Accounts Accounts 23,408 Accounts 23,873 27,107 27,657 Accounts Accounts 3.4% $1,000 Accounts In a quarter with total contributions up 5%: ACP Contributions were up 5% ACH Special Contributions were up 6%. $- E-Gift Contributions were up 90% Average Contribution Average First Year Average Re-Contribution Contribution 25.5% TIAA PUBLIC 8 Investment Portfolio Data Summary . For the quarter, the Aggressive Age Based Portfolios experienced the greatest increase in accounts with 587. This was followed by the Moderate Age Based Portfolios increasing by 258 and the Equity Index Option with an increase of 185. The Aged Based Portfolios consist of 58.0% of all Plan accounts and 61.0% of total Plan assets. TIAA PUBLIC 9 Accounts by Portfolio Investment Option Totals 12/31/2015 9/30/2016 12/31/2016 Q/Q Change Y/Y Change MODERATE AGED BASED PORTFOLIOS 23,253 23,338 23,596 258 1.1% 343 1.5% AGGRESSIVE AGE BASED PORTFOLIOS 7,486 8,623 9,210 587 6.8% 1,724 23.0% CONSERVATIVE AGE BASED PORTFOLIOS 1,795 2,251 2,434 183 8.1% 639 35.6% EQUITY INDEX OPTION 2,263 2,571 2,756 185 7.2% 493 21.8% BALANCED OPTION 3,978 4,017 4,088 71 1.8% 110 2.8% DIVERSIFIED EQUITY OPTION 2,843 2,907 2,995 88 3.0% 152 5.3% FIXED INCOME OPTION 1,328 1,355 1,395 40 3.0% 67 5.0% 100% EQUITY OPTION 7,317 7,104 7,128 24 0.3% -189 -2.6% GUARANTEED OPTION 6,932 7,070 7,126 56 0.79% 194 2.8% TOTAL 57,195 59,236 60,728 % IN AGE BASED PORTFOLIOS 56.9% 57.8% 58.0% % IN STATIC PORTFOLIOS 43.1% 42.2% 42.0% OKLAHOMA SEED 1,362 1,360 1,360 TIAA PUBLIC 10 Assets by Portfolio Assets by Portfolio 12/31/2015 9/30/2016 12/31/2016 Q/Q Change Y/Y Change MODERATE AGED BASED PORTFOLIOS $ 340,761,511 $ 356,858,594 $ 359,045,303 $ 2,186,709 0.6% $ 18,283,792 5.4% AGGRESSIVE AGE BASED PORTFOLIOS 55,962,477 67,393,496 71,340,198 $ 3,946,701 5.9% $ 15,377,720 27.5% CONSERVATIVE AGE BASED PORTFOLIOS 13,364,755 16,142,417 16,984,835 $ 842,418 5.2% $ 3,620,080 27.1% EQUITY INDEX OPTION 21,314,575 26,336,981 29,343,360 $ 3,006,379 11.4% $ 8,028,785 37.7% BALANCED OPTION 33,111,818 35,459,632 35,761,122 $ 301,489 0.9% $ 2,649,304 8.0% DIVERSIFIED EQUITY OPTION 26,903,918 28,402,310 28,820,587 $ 418,277 1.5% $ 1,916,669 7.1% FIXED INCOME OPTION 10,847,908 11,311,417 11,386,255 $ 74,838 0.7% $ 538,348 5.0% 100% EQUITY OPTION 109,520,309 111,330,954 112,657,427 $ 1,326,473 1.2% $ 3,137,118 2.9% GUARANTEED OPTION 65,906,899 67,078,959 67,971,114 $ 892,155 1.3% $ 2,064,215 3.1% TOTAL $ 677,694,170 $ 720,314,762 $ 733,310,202 % IN AGE BASED PORTFOLIOS 60.5% 61.1% 61.0% % IN STATIC PORTFOLIOS 39.5% 38.9% 39.0% OKLAHOMA SEED $ 1,948,758.96 $ 2,069,245.26 $ 2,059,550.00 $ (9,695) -0.5% $ 110,791 5.7% TIAA PUBLIC 11 Net Rebalance Amount by Portfolio Investment Portfolio Rebalance Amounts Q4 '15 Q3 '15 Q4 '16 MODERATE AGED BASED PORTFOLIOS $ (1,124,299) $ (570,481) $ (873,416) AGGRESSIVE AGE BASED PORTFOLIOS (105,004) (88,499) 192,284 CONSERVATIVE AGE BASED PORTFOLIOS (313,789) 523,206 17,516 EQUITY INDEX OPTION 433,530 94,610 987,088 BALANCED OPTION (588,382) 3,155 (359,807) DIVERSIFIED EQUITY OPTION (151,374) (26,247) (64,950) FIXED INCOME OPTION 83,258 106,070 312,642 100% EQUITY OPTION (630,427) (1,500,585) (1,090,154) GUARANTEED OPTION 2,396,486 1,458,772 878,797 TIAA PUBLIC 12 Call-Center / Web Data 4th Quarter, 2016 Online and Website Activity Summary .