Federal Retirement Thrift Investment Board will conduct routine searches for managers after picking an investment consultant to review the indexes used in the five investment options of the $163.8 billion Thrift Savings Plan, Washington, said Tom Trabucco, spokesman. The consultant, which will be chosen by the end of next month, will also examine whether the plan should invest in real estate, as recommended by Rep. Jon Porter, R-Nev., chairman of the House Federal Workforce and Agency Organization Subcommittee. Mortgage-backed securities already comprise 37% of the plan's "F" fund index, and REIT investments make up 8% of the "S" fund index.
The four indexes currently used by the retirement plan are the S&P 500 index for the "C" fund, the Lehman Brothers Aggregate Bond index for the "F" fund, the Wilshire 4500 index for the "S" fund, and the MSCI EAFE index for the "I" fund. The "G" fund is invested in government securities.
The board issued an RFP on April 29 for an investment consultant to conduct the review.
Separately, plan participants have already moved $2.8 billion into the plan's new lifecycle funds, which were rolled out at the beginning of August, Mr. Trabucco said.