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TIAA-CREF announced that it succeeded in its second attempt to get shareholder approval for big hikes in management fees at many of its funds, including: TIAA-CREF International Equity
When first vote was held in July shareholders rejected nearly all of the fee hikes.
TIAA-CREF CEO Herb Allison said in a statement, "The board's action--to give shareholders the facts and let them decide--embodies the transparency and fairness that distinguishes our organization."
We wonder whether Allision, therefore, means shareholders didn't have all the facts in the first time around.
Morningstar fund analyst Christopher Davis says that "this outcome will likely result in a downgrade of TIAA-CREF's Stewardship Grade board score given the board's acquiescence to management. It isn't just the fee hikes themselves, but the complete disregard for shareholder wishes that is particularly galling."
The fee hike takes effect Feb. 1.
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