Speaker 1: Bloomberg Audio Studios, podcasts, radio news. The CEO of TIAA
Speaker 1: is sitting down with Bloomberg's speaky jabber inflation and get
Speaker 1: exposure to markets. So we have been in the business
Speaker 1: of guaranteed income for over one hundred years, and I
Speaker 1: can tell you that not a day goes by that
Speaker 1: I hear from either a participant or a family member.
Speaker 2: That says thank you.
Speaker 1: My dad is now ninety years old and he's still
Speaker 1: getting that check. You know, my mother is eighty, her
Speaker 1: husband passed away, and she's still able to get that
Speaker 1: check from tia So the point is that that guaranteed
Speaker 1: income was an annuity.
Speaker 2: It was in their retirement planned.
Speaker 1: And so when I think about where we are today,
Speaker 1: you're right, there's so many permutations around annuities, so many
Speaker 1: different flavors, and so we as an industry have to
Speaker 1: make sure that we can simplify it or that people
Speaker 1: are clear on what it is that they have than
Speaker 1: what it means.
Speaker 2: So there is work that we are doing.
Speaker 1: But when I think about annuities within your allocation, it
Speaker 1: is not complicated. It is you have exposure to the
Speaker 1: stock market, you have exposure to bonds, and then you
Speaker 1: have exposure to insurance. It's simple, It's part of your
Speaker 1: retirement allocation. It's different than a retail annuity. I think
Speaker 1: the most important thing is to understand what it is
Speaker 1: and what it's not.
Speaker 2: An annuity is not exposure to equities.
Speaker 1: In alpha, annuities give you longevity protection, it gives you consistency,
Speaker 1: and it gives you the confidence that you can have
Speaker 1: income that you won't outlive. And I think that in
Speaker 1: this environment is so important that we talk more about annuities,
Speaker 1: make sure people understand it, continue to do our job
Speaker 1: to simplify and make sure people are educated around it.
Speaker 1: But providing access and retirement vehicles is what we've done
Speaker 1: for over one hundred years in the four to three
Speaker 1: B market, and we most recently have rolled it out
Speaker 1: in the four to one K market.
Speaker 3: So going back to nineteen eighteen and that initial million
Speaker 3: dollar contribution from Heady Carnegie to where we are today,
Speaker 3: the company has grown tremendously overseas one point three one
Speaker 3: point four trillion dollars worth of assets. Can you just
Speaker 3: talk a bit about that investing strategy you're alluding to
Speaker 3: it just a moment ago. It strikes me as it's
Speaker 3: kind of very lowercase C conservative. There's not a lot
Speaker 3: exotic about these main portfolios. Could you just talk about
Speaker 3: the company's approach to investing.
Speaker 2: Well for us at TIA and Novene.
Speaker 1: You know, we are a liability driven We want to
Speaker 1: make sure that we are investing in a way that
Speaker 1: our participants can feel confident that twenty thirty, forty fifty
Speaker 1: years from now that the money will be there, it
Speaker 1: will be well invested, and they will be able to
Speaker 1: have income that they cannot outlive. And so when we
Speaker 1: look at what we're doing, we have our general account.
Speaker 1: We also with Navine have third party assets and what's
Speaker 1: important there is whatever returns that we're getting from nav
Speaker 1: that ultimately goes back to our participants. We return all
Speaker 1: of our earnings back to our participants and so that
Speaker 1: allows them to get outside performance over time. And so
Speaker 1: within our company, we serve the four to three B market.
Speaker 1: We've done that that's a not to our heritage. We
Speaker 1: will continue to do that. We see that there's tremendous
Speaker 1: opportunity to make sure the people that are helping and
Speaker 1: serving so many millions of Americans, whether it's higher ed
Speaker 1: and healthcare, can feel comfortable and confident about their retirement plan.
Speaker 2: But we're also in.
Speaker 1: Partnership with Navine taking that benefit into the four to
Speaker 1: one K market so that companies can add insurance into
Speaker 1: their allocation.
Speaker 2: And we're very excited about that.
Speaker 1: And of course with respect to Navine and their investment strategy,
Speaker 1: we do a lot in alternatives. So think about it
Speaker 1: as eighty five percent of our general account is fixed income,
Speaker 1: fifteen percent can be alternatives, and so that allows everyday
Speaker 1: participants through our general account to have access to alternatives,
Speaker 1: to have access to real estate, infrastructure, farm land, etc.
Speaker 1: Pe In a very safe way to generate more alpha
Speaker 1: for them. But the most important thing is that for us,
Speaker 1: it is liability driven. We want to make sure that
Speaker 1: we're investing in a way that will give them the
Speaker 1: performance and accumulation, but give them the confidence and dq
Speaker 1: that they will have income, that they won't outlive, and
Speaker 1: that we will be there for them.
Speaker 3: Going back to the crisis, something that you proposed in
Speaker 3: an op ed you wrote a couple of weeks ago
Speaker 3: for The New York Times is more of a public
Speaker 3: private partnership, more engagement with policymakers in the face of
Speaker 3: this crisis. Here we are a few weeks into a
Speaker 3: new administration, a new Congress. How optimistic are you both
Speaker 3: about the appetite for that by the new president, by
Speaker 3: that Congress, and the level of engagement that we've seen
Speaker 3: such so far on in retirement issues.
Speaker 2: Yeah.
Speaker 1: The good news is when you're talking about retirement, it
Speaker 1: doesn't matter if you are in rural America, urban, suburban.
Speaker 1: It's not a blue state, it's not a red state issue.
Speaker 1: It absolutely is an American issue that we can all
Speaker 1: relate to. And so I am optimistic. And the reason
Speaker 1: why I'm optimistic is that the policy that we have
Speaker 1: been able to achieve over many years as an industry
Speaker 1: have been bipartisan.
Speaker 2: It did not matter who was in office, It did not.
Speaker 1: Matter what the ratios were between Democrats and Republicans. It
Speaker 1: was an issue that everyone came together on. And so
Speaker 1: I'm looking forward to us continuing to tell the story
Speaker 1: about how important retirement security is. I'm excited about some
Speaker 1: of the progress we've made with the Secure Act to
Speaker 1: make it easier for people to have access to retirement,
Speaker 1: and so that conversation will continue. We're looking forward to
Speaker 1: engaging with the new administration and talking about how do
Speaker 1: we continue to make sure that more Americans can have
Speaker 1: access to a secure retirement and how do we make
Speaker 1: sure that by doing that that can put less burden
Speaker 1: on sale security. By doing that that puts more money
Speaker 1: to work so that the caregivers children are not having
Speaker 1: to carry that burden. And so I do think that
Speaker 1: it will continue to be a bipartisan issue, and it
Speaker 1: is so important.
Speaker 2: We cannot close this.
Speaker 1: Retirement gap without private public partnership. We have to have
Speaker 1: good power and we have to make sure that we
Speaker 1: in the private sector are doing our part to educate
Speaker 1: our employees to make sure that the plans are designed
Speaker 1: so that people can have accessed no matter where they
Speaker 1: are within their employee base, whether they're seeingior executives or
Speaker 1: the people that are on the front line are working
Speaker 1: in the mailroom. Having plans that are designed in a
Speaker 1: way where you have education, in a way that it
Speaker 1: has exposure to equities, bonds, and insurance, and having great
Speaker 1: policy so that more people can have access to me
Speaker 1: is the job to be done, and it is something
Speaker 1: that has to be done in both private and public sector.
Speaker 3: I just want to turn to how you're navigating this
Speaker 3: moment and you and I last spoke. It was a
Speaker 3: few years back during COVID I did a piece on
Speaker 3: Black Wall Street and the Tulsa Rays massacre, and I
Speaker 3: asked you just about the long legacy of that, and
Speaker 3: we got to talking about DEI got to talking about
Speaker 3: how you prioritize that within the company. Like you said,
Speaker 3: it was a cornerstone of what TIA has done. You,
Speaker 3: I'm sure, have paid attention to the recent conversation about that.
Speaker 3: Has it changed notionally the way that your company approaches
Speaker 3: these issues. What do you make of companies that have,
Speaker 3: in light of this increased scrutiny, step back from some
Speaker 3: of the commitments they've made before.
Speaker 1: Yeah, I mean, I'll speak to it through the lens
Speaker 1: of TIA and through the lens of me being a CEO.
Speaker 2: I think that for us.
Speaker 1: Our values are very clear, you know, and our values
Speaker 1: go back well over one hundred years, and that will
Speaker 1: continue to remain. I've always said that talent is created equally,
Speaker 1: opportunity is not. And so if the objective is to
Speaker 1: continue a pursuit towards meritocracy, knowing that we started with
Speaker 1: exclusionary practices and not having everyone have access to entering
Speaker 1: corporate America. If the objective is excellent, If the objective
Speaker 1: is to make sure that we can cast the widest
Speaker 1: net across our country, to attract the very best talent,
Speaker 1: to develop that talent, and to make sure that that
Speaker 1: talent stays, then the outcome will continue to be a
Speaker 1: diverse workforce because I do believe that talent is there,
Speaker 1: and so for us, we will absolutely comply with every law,
Speaker 1: every regulation to the highest standard. And we also realize
Speaker 1: that there is a need for more talent.
Speaker 2: We also recognize that there are jobs.
Speaker 1: To be done across our workplace to make sure that
Speaker 1: everyone feels that they can have access.
Speaker 2: And when I say everyone, I mean everyone.
Speaker 1: And so when I think about the opportunity for us,
Speaker 1: I think the opportunity is stay focused on our values,
Speaker 1: to stay focused on making sure that we can cast
Speaker 1: the widest net across our country, and that when people
Speaker 1: enter the workplace a TIA, they wear one jersey that's
Speaker 1: a TIA jersey and they're very aligned with our mission.
Speaker 1: And our mission is to ensure that millions of Americans
Speaker 1: can have a secure retirement. And I believe that if
Speaker 1: we stay focused on that, navigate whatever the environment is
Speaker 1: always complying to the highest standard.
Speaker 2: The outcome of talent will be a diverse workforce.
Speaker 3: So, just to be clear, when the President says last night,
Speaker 3: with the sweep of a pen, he's ended DEI and
Speaker 3: government and in the private sector, nothing has changed.
Speaker 1: I mean, we're always going to understand what the President
Speaker 1: of the United States is requiring for companies and will comply.
Speaker 1: But what has not changed is our commitment to talent.
Speaker 1: What has not changed is making sure that we cast
Speaker 1: a wider net.
Speaker 2: And if the President is very.
Speaker 1: Much focused on excellence, then we are well positioned at
Speaker 1: TIA to continue to make sure that we do just
Speaker 1: that while making sure that we comply to any standards,
Speaker 1: any law, in any regulation, and we will absolutely do that.
Speaker 3: You're in this kind of rareified position, I think like
Speaker 3: the head of counselors is probably in a similar one
Speaker 3: where you're able to exert influence on the companies on
Speaker 3: whom you invest. You can make your opinions known about
Speaker 3: corporate board composition, for instance. Is that something that you
Speaker 3: continue to do, continue to prioritize and does that stand
Speaker 3: to change with what's happened over these last few weeks.
Speaker 1: Yeah, I mean, I think you know clearly, you know,
Speaker 1: making sure that we're navigating the environment and what executive actions,
Speaker 1: executive orders.
Speaker 2: Laws, et cetera.
Speaker 1: And like I said, we'll make sure we do all
Speaker 1: of that. But you know, we're investing in thou of
Speaker 1: companies and it is important for us to understand who
Speaker 1: the company is, what they're about, what is their philosophy,
Speaker 1: what is their strategy, understanding their leadership, and so that
Speaker 1: won't change. If there's things that we have to edit,
Speaker 1: we'll navigate that. But as an institutional investor, it is
Speaker 1: very important where we're deploying our participants' money.
Speaker 2: We want to make sure that we're doing it well and.
Speaker 1: That we understand the companies that we're investing in, so
Speaker 1: that our portfolio managers can have as much information as
Speaker 1: they can to make very sound decisions about the overall
Speaker 1: investment strategy.
Speaker 3: You oversee this huge company that has it's handled so
Speaker 3: many things, and obviously you have to interface with regulators
Speaker 3: as well. Are you worried about the state of regulation
Speaker 3: in this country that you have to interact with them
Speaker 3: at the.
Speaker 2: State level the federal level.
Speaker 3: Do you worry about the cuts that we're seeing in
Speaker 3: terms of the products that you offer. This broader conversation
Speaker 3: about what people have when they retire.
Speaker 1: Well, the good news is we have a range of
Speaker 1: solutions and that hasn't changed, so we haven't seen any
Speaker 1: impact there terms of our investment strategy, in terms of
Speaker 1: what we're here to do. You know, as I think
Speaker 1: about regulation, you know, I think clearly the President's been
Speaker 1: clear in wanting to have some deregulation and that will
Speaker 1: be a positive thing for companies.
Speaker 2: But regulation is good.
Speaker 1: You know, you want to make sure that you know,
Speaker 1: we're in a regulated industry.
Speaker 2: We need to have sound regulation.
Speaker 1: Clearly, if there's opportunities to improve, the President's been clear
Speaker 1: about wanting to do that and what that can leash
Speaker 1: in terms of companies and their earnings. But I think
Speaker 1: the most important thing is one for us making sure
Speaker 1: that we're clear on what we're here to do, which
Speaker 1: is provide a secure retirement for millions of Americans. Understanding
Speaker 1: the regulatory landscape and whatever laws that gets passed with
Speaker 1: the President and the new administration, and adhere to that,
Speaker 1: but never lose sight of the main thing, which is
Speaker 1: to make sure that we have sound investment practices, making
Speaker 1: sure we continue to attract the best talent and make
Speaker 1: sure that we deliver on our retirees. Whatever the regulatory
Speaker 1: environment will be, we will navigate that. You know, we've
Speaker 1: been around for one hundred years. We've seen the highs,
Speaker 1: the lows, and everything in between. But what hasn't changed
Speaker 1: regardless of the environment, is delivering for our participants and
Speaker 1: that won't change regardless of any shifts in the overall environment.
Speaker 3: So the last question, I'm curious how you were thinking
Speaker 3: about the economy, thinking about markets today. We lived through
Speaker 3: a lot just for the last twenty four hours with
Speaker 3: the imposition of this grade war. How are you thinking
Speaker 3: about that?
Speaker 2: All right? That was the CEO of TIA with Bloomberg's
Speaker 2: David Gerra. We got to get her on our show.
Speaker 2: Yeah she was great, Yes, she was fantastic. He's okay,
Speaker 2: he knows what he's talking about.
Speaker 3: Host of the Big Take There You Go podcast, which
Speaker 3: I love.