Categories: Fedweek

Options for Future Left Open

TSP officials left the door open for broadening the TSP fund offerings in the future, however, saying they were opposing the REIT fund idea only for the present. Said Saul, “if one were attempting to devise a more diversified portfolio, several classes of assets are now completely unrepresented in the current TSP investment options. Such asset classes include high-yield debt, inflation-protected bonds (TIPS), commodities, and emerging market equity. Some TSP participants might also benefit from the ability to overweight their TSP portfolios toward growth stocks or toward value stocks, which could be accommodated by offering growth and value index funds. All of these options should be considered.” Similarly Amelio said the TSP’s opposition to adding funds “could change over time.” He said the has decided to hire investment consulting firm to assist in analyzing various in-vestment-related plan issues, which will include a review of investment options.

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