Federal Retirement Thrift Investment Board, Washington, hired State Street Global Advisors as the second of two managers to oversee a portion of each of the board's four index funds, the board announced Thursday.
The $651 billion Thrift Savings Plan, the retirement system for 6 million federal employees and members of the uniformed services, offers participants five investment funds: four index funds and one fund made up of specially issued Treasury securities that is managed internally by the board.
The index funds were previously solely managed by BlackRock. But in May 2019, the board issued an RFP seeking two investment managers to mitigate risk, said Kim Weaver, director of external affairs, at the time.
In February, the board rehired BlackRock as the first manager while it continued its search for the second. The contract with each manager will be for a two-year base period, with four two-year extension options, the board said in a news release.
The TSP's F Fund, with $38 billion in assets, is a bond index fund that tracks the Bloomberg Barclays U.S. Aggregate Bond index; the C Fund, with $228 billion in assets, is a stock index fund that tracks the S&P 500 index; the S Fund, with $72 billion in assets, is a stock index fund that tracks the Dow Jones U.S. Completion Total Stock Market index; and the I Fund, with $51 billion in assets, is a stock index fund that tracks the MSCI EAFE (Europe, Australasia, the Far East) index.
