The determination of the College Retirement Equities Fund (CREF) Stock Account’s unit value involves a specific calculation performed daily. This calculation begins by totaling the market value of all stocks and other assets held within the CREF Stock Account. Next, any liabilities are subtracted from this total asset value. The resulting net asset value is then divided by the number of outstanding units in the CREF Stock Account. This process yields the daily unit value, reflecting the account’s performance.
Understanding this valuation method is crucial for participants as it directly influences the value of their retirement savings. The unit value fluctuations reflect the performance of the underlying investments, providing a transparent measure of investment growth or decline. Over time, consistent monitoring of unit values allows participants to assess the effectiveness of their investment strategy and make informed decisions about their retirement planning. Historically, the method has provided a consistent and reliable measure, allowing participants to track their investments against market performance.