Why is the TSP placing limits on the number of interfund transfers a participant may make each month?
The TSP is a retirement savings and investment plan. Investment choices should be made with a long-term objective based on a participant’s time horizon. Although the TSP recognized that once it moved to the new daily valued system, some participants might engage in market timing activities, the practice was minimal at first. Although less than one percent of participants averaged more than one interfund transfer per month in 2007, and nearly 85% of participants did not make any IFTs in 2007, a very small number of TSP participants were requesting IFTs to such an extent that the activity began to adversely affect other participants. For example, in September and October of 2007, the average International Stock Index Investment (I) Fund daily trade amount given to the Investment Manager was $224 million. This compares to average daily I Fund trade amounts of $49 million in 2006 and $27 million in 2005. In September and October 2007, 63% (or $142 million) of the $224 million traded was at
Related Questions
- Why hasn the TSP already placed limits on the number of interfund transfers that a participant can make each month?
- Why is the TSP placing restrictions on the number of interfund transfers a participant may make each month?
- Why is the TSP placing limits on the number of interfund transfers a participant may make each month?
