Fedweek

The New York Stock Exchange partially reopened its iconic trading floor on May 26 after a two-month closure. According to the TSP, as the market inched up in April, there was a net transfer of $5.2 billion out of the G fund, with $2.9 billion net going into the large company stock C fund.

The stock market rebound in April allowed TSP investors to regain some of the ground they lost in February and March but account values overall remain below their levels as of the start of the year.

As of the end of April, the average account value among FERS employees and retirees was about $141,000 and for those under CSRS $152,500, up by about $8,000 and $7,500 from the end of March although still down about $10,000 and $8,500 on average from year-end 2019.

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Total account values including military personnel and retirees and survivor accounts rose by more than $36 billion to nearly $594 billion in the month; that was mainly due to investment gains since new investments outpaced withdrawals by only $3 billion. The year-end 2019 total was above $632 billion.

Also in April as market returns improved there was a net transfer out of $5.2 billion from the most conservative of the TSP’s funds, the government securities G fund, with $2.9 billion net going into the large company stock C fund, $1.4 billion into the small company stock S fund and the rest into the bond F fund and international stock I fund.

That was a reversal of what happened in February and March, when a net $9.2 billion and $15.1 billion was moved into the G fund in a “flight to safety.” While that represented a spike in interfund transfer activity, only single-digit percentages of investors made such transfers.

Despite the move of money out of the G fund in April, it remains the largest fund, holding 43.5 percent of assets, up by 5 percentage points from year-end 2019. The C fund is second largest at 33.3 percent, down from 35.9 percent.

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