Thrift Savings Plan, Washington, issued an RFP for managers to run the $313 billion defined contribution plan's F Fund, a fixed-income index fund, according to a news release from the Federal Retirement Thrift Investment Board, which oversees the TSP.
The F Fund, with $21.9 billion in passively managed assets as of April 30, tracks the Barclays Capital U.S. Aggregate Bond index.
The F Fund currently is managed by BlackRock, which also manages the federal employees plan's C Fund, a common-stock index investment fund; the S Fund, a small-cap equity index fund; and the I Fund, an international stock index fund.
BlackRock's contract for all three funds ends in March 2013, though it includes two one-year options after that. RFPs for the other funds will be issued after the F Fund contract is awarded, which is expected by the end of the year, spokeswoman Kim Weaver said in an e-mail
“We decided to compete each fund individually to ensure maximum competition,” Ms. Weaver said.
The contract will be for one year, with four one-year options.
The F Fund was the best performer among the FRTIB's investment funds in 2011, returning 7.58%.
TSP's largest fund with 42% of assets is the $131 billion G Fund, which invests in government securities and is managed internally with the U.S. Treasury.
Hewitt EnnisKnupp is assisting.