Morningstar Rating

Fund Research and Analysis

by Courtney Goethals Dobrow
TIAA-CREF Bond Plus is becoming a little less cautious.

This fund supplements a core portfolio of high-quality, intermediate bonds with slices of high-yield and emerging-markets debt. That may sound risky, but a moderate approach makes the fund less risky than others using a similar approach, and even the typical intermediate-term bond fund.  Read more 

Kudos

Experienced management posted strong long-term returns at sibling TIAA-CREF Bond Plus, which has merged into this fund. It navigated a credit market correction in the early part of the decade very well.
The fund is backed by a large group of seasoned analysts. Read more 

Risks

The fund may struggle to keep up with rivals during rallies among midquality investment-grade bonds, such as BBB issues. Read more 

Strategy

Manager John Cerra attempts to outperform the Barclays Capital Aggregate Index through modest sector-weight changes and security selection, and he aims to maintain an interest-rate sensitivity similar to this fund's benchmark.  Read more 

Management

Lead manager John Cerra is a TIAA-CREF bond-group veteran who took over this fund from Lisa Black, who is now senior managing director of the fixed-income department. Cerra is supported by a large team of credit analysts and sector portfolio managers.  Read more 

Inside Scoop

This fund does not take large risks versus its benchmark, as its managers try to maintain its credit and interest-rate risk profiles similar to those of the index. They seek to stay competitive during credit market rallies through strong individual bond selection, and they believe the fund's conservative composition will spur outperformance in periods when corporate bonds don't fare well.  Read more 

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