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What are my TSP Investment options? 

You can invest any portion of your account in any of the TSP investment funds:

• Government Securities Investment (G) Fund 
• Fixed Income Index Investment (F) Fund
• Common Stock Index Investment (C) Fund
• Small Capitalization Stock Index Investment (S) Fund
• International Stock Index Investment (I) Fund
• Lifecycle (L) Funds  

You can allocate any whole percentage of your future contributions (including loan payments and transfers from traditional IRAs or eligible employer plans) to any of the TSP investment funds by making a contribution allocation.  You can redistribute your existing account balance among the funds by making an interfund transfer.

The TSP investment options include two fixed income funds (the G and F Funds), three stock funds (the C, S, and I Funds), and five lifecycle funds (L 2040, L 2030, L 2020, L 2010, and L Income). Before you make any investment decision, read the Fund Information Sheets on this Web site carefully.  They describe the investment funds and their advantages, risks, and performance histories.  Your account is invested for your retirement, and you should make your investment decisions with this long-term goal in mind.

Who manages the TSP investment funds? 

The assets of the G Fund are managed internally by the Federal Retirement Thrift Investment Board. The assets of the F, C, S, and I Funds are managed by outside investment firms. The Board currently has contracts with Barclays Global Investors, a U.S.—based subsidiary of Barclays PLC (a publicly listed financial services company based in London, England) to manage the F, C, S, and I Fund assets. Barclays invests the assets of the F, C, S, and I Funds into commingled trust funds in which the assets of many tax-deferred employee benefit plans are combined and invested together. The F, C, S, and I Funds remain invested in the Barclays funds regardless of the performance of the securities markets. The Barclays funds in which the F, C, S, and I Funds are invested are index funds, or passively managed funds, each of which has a portfolio based on the composition of a market index. The L Funds are invested in the five individual TSP funds based on professionally determined asset allocations. (Click here to view Investment Management FAQs.)

How will I get up-to-date information about the performance of the TSP investment funds? 

You can obtain the daily share prices for each of the investment funds from this Web site.  You can also obtain the rates of return for each fund for the most recent month and the most recent 12-month period, as well as historical rates of return for the funds and their related indexes.  Returns for each fund are updated monthly.  The daily share prices and rates of return are also available on the ThriftLine. 

Every month the Board publishes the TSP Fact Sheet "TSP Funds Monthly Returns."  The fact sheet contains the monthly returns for the TSP funds.  It also provides the returns for the funds for the last 12 months and the annual returns for recent years.  The version on this Web site also provides returns for the indexes that the investment funds track. 

The newsletter TSP Highlights, published in January, May, July and October, shows the recent monthly performance of the TSP funds and provides a 10-year history of the funds.

What do the earnings on the TSP investment funds consist of? 

G Fund earnings consist of interest paid by the U.S. Government on the G Fund securities. The earnings of the F, C, S, and I Funds have four sources:

• Changes in the market prices of the securities held in the Barclays' index funds, net of trading costs charged to the index funds (In the case of the I Fund, market price changes include the effect of changes in the value of the U.S. dollar in relation to foreign currencies.);
• Interest or dividend income earned by the securities held in the Barclays funds;
• Securities lending income generated by Barclays' short-term lending of securities held in the index fund to a select group of brokers; and
• Interest on money that is temporarily invested in G Fund securities, either because it is awaiting investment in the Barclays index fund, or because of pending disbursements, such as loans or withdrawals.

L Fund earnings are the weighted average of the earnings of the underlying G, F, C, S, and I Funds, calculated in proportion to their allocations in each L Fund. 

The earnings of the G, F, C, S, and I Funds are reduced by their share of the administrative expenses of the TSP. In addition, the earnings on the F, C, S, and I Funds are reduced by Barclays' investment management fees. The net earnings are reflected in the share prices of the funds.  The administrative expenses associated with the L Funds are the weighted average of those of the underlying G, F, C, S, and I Funds, calculated in proportion to their allocations in each L Fund.  The L Funds do not have any additional charges.

How will the performance of the TSP funds compare to the performance of their respective indexes? 

The F, C, S, and I Funds are intended to track the performance of their respective indexes. However, from month to month, the returns of the TSP funds may differ from the returns of these respective indexes.  There are two major reasons for these differences:

• There may be differences between the returns of the TSP funds and the returns of the Barclays funds and the returns of the tracking indexes. This is especially the case for the I Fund on days when there is a fair valuation adjustment of the assets in the Barclays EAFE "E" fund.
   
• There may be differences between the returns of the TSP funds and the returns of the Barclays funds. The returns for the TSP funds are net of accrued TSP administrative expenses, investment management fees, and trading costs. Additionally, some of the money in the F, C, S, and I Funds is temporarily invested in G Fund securities and earns the G Fund return. 

How do the TSP Funds compare? 

Click here for a chart comparing the TSP Funds. For more detailed information about each fund, review the TSP Fund Information Sheets.

Why don't I receive dividends and capital gains distributions from the TSP's C, S, or I Funds?

Under the Internal Revenue Code, the TSP and other similar defined contribution plans (e.g., 401(k) plans) manage dividends and capital gains differently from mutual funds because the individual investments in the plans are made with tax-deferred money.

Barclays Global Investors, which currently manages the index funds in which the C, S, and I Funds are invested, credits dividend income each business day. This income is then reflected in the TSP’s C, S, and I Funds’ share price.

The daily change in TSP share prices reflects all investment income (realized or unrealized capital gains or losses, dividends, interest on short-term investments, and securities lending income) net of TSP administrative expenses and investment management fees.

Is my TSP account FDIC insured?

No.  The FDIC insurance protects you against the loss of your deposits in an FDIC-insured bank or savings association.  FDIC insurance applies to traditional types of bank accounts such as checking, savings, certificates of deposit, and IRA retirement accounts.  It does not cover mutual funds, annuities, life insurance policies, or stocks even if you purchase these products from an insured bank.  Similarly, it does not protect investment accounts such as private sector 401(k) plans or the Thrift Savings Plan.