cancel
Showing results for 
Search instead for 
Did you mean: 
     
Highlighted
Frequent Contributor

TSP I Fund Benchmark Change Blocked

It came to this.

The TSP Board was going ahead to change the benchmark for TSP International I Fund from the current MSCI EAFE to broader MSCI ACWI ex-US in spite of objections raised from DC. The difference between the two indexes is that the current EAFE index is for developed countries but the new index [being all-country ex-US] was going to have substantial exposure to China.

So, came the official top-down order NOT to do it.

https://www.cnbc.com/2020/05/12/white-house-directs-federal-pension-fund-to-halt-investments-in-chin...

https://www.govexec.com/pay-benefits/2020/05/white-house-orders-tsp-board-halt-international-fund-in...

https://www.pionline.com/washington/trump-directs-federal-thrift-board-halt-tsp-china-investment

YBB
0 Kudos
1 Reply
Highlighted
Frequent Contributor

Re: TSP I Fund Benchmark Change Blocked

How is TSP Board appointed?   https://en.wikipedia.org/wiki/Federal_Retirement_Thrift_Investment_Board

".....Governance of the agency is carried out by a five-person, part-time board of presidential appointees and by a full-time executive director selected by those appointees. Of the five appointees, three members are appointed solely by the President without other consideration (of whom one shall be nominated as Chairman), one member is appointed after considering the recommendation of the Speaker of the House (in consultation with the House Minority Leader) and the fifth member is appointed after considering the recommendation of the Senate Majority Leader (in consultation with the Senate Minority Leader). ...."

YBB
0 Kudos
Announcements

Morningstar is here to help you respond to the Coronavirus crisis.