Acceptance of S, I Funds Still Low

As of the end of 2002, the TSP was holding about $102 billion, 48 percent of that in the G fund, 38 percent in the C fund and 11 percent in the F fund. The TSP’s two newest funds, the international stock (I) fund and the small and mid-capitalization stock (S) fund, together had only $1.8 billion, less than 2 percent total. Those funds were launched in May 2001 in order to provide more diversification opportunities for investors, some of whom had been very vocal in complaining about the TSP’s limited investment choices as a three-fund program. However, the actual willingness to invest in the new funds apparently has not matched the level of interest expressed before they were launched. Meanwhile, uniformed military service members, who were allowed to join the TSP in early 2002 and never knew the TSP as only a three-fund program, have embraced the I and S funds much more readily. On average, uniformed members who have money in a fund other than the G fund has 15 percent of their money in the S fund and 6 percent in the I fund.