TSP Money Has Been Shifted

TSP investors have been engaged in a flight to safety for more than a year, data presented at a recent TSP board meeting show. Investors moved money out of the common stock C fund on a net basis every month from January 2008 through February of this year. Money also was moved out of the small company stock S and international stock I funds on a net basis in all but a few months in that period, and investors also fled even the lifecycle L funds in all but four of those months, on a net basis. There was a net transfer of $21.5 billion into the most secure fund, the government securities G fund over that period, with more than $400 million net going into the next-most secure fund, the bond F fund. The G fund now accounts for 57 percent of fund balances, the F fund 7 percent, C fund 19 percent, S fund 4 percent, and the I fund 5 percent, with the rest spread across the five L funds. The total value of TSP accounts was about $191 billion as of that accounting.