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Investment Management Fees
- Thread starter greensea
- Start date
grandma
Well-known member
greensea said:Can someone tell me where on the tsp site I can get information about what fees the government charges to manage these funds? I can't find anything about this. Thanks
http://www.tsp.gov/features/chapter05.html#sub3
There has been extensive conversation on this subject, scattered around under different threads probably.
I believe Barclays still does the actual managing -
If this doesn't give you the info you want, someone will fill it in behind me.!!
Welcome greensea!
How Returns Are Calculated:
G Fund—By definition, the G Fund never can have a losing month. All investments in the fund earn interest at a rate equal to the average of market yields on Treasury marketable securities with four or more years to maturity.
G Fund returns are reduced by administrative expenses, which are about 0.06 percent, or $.60 for every $1,000 invested.
C, S, I and F Funds—The C, S, I and F Funds can post gains or losses.
The capital gain or loss consists of these elements:
- the change in the price of the stocks in the equity index funds (C, S and I Funds) or the notes in the U.S. Debt Index Fund (F Fund);
- dividend (C, S and I Funds) or interest (F Fund) income credited to the funds;
- interest on short term investments while contributions are awaiting investment;
- income from lending securities (C, S and I Funds) or notes and bonds (F Fund) on a short-term basis;
- administrative expenses, including management fees paid to Barclays, which are about 0.06 percent, or $.60 for every $1,000 invested in the C and F Funds and about 0.05 percent, or $.50 for every $1,000 invested, in the S and I Funds; and
- trading costs.
In addition, the I Fund fluctuates relative to the U.S. dollar’s value against the currencies of the countries in whose stock markets that fund has investments.
How Returns Are Calculated:
G Fund—By definition, the G Fund never can have a losing month. All investments in the fund earn interest at a rate equal to the average of market yields on Treasury marketable securities with four or more years to maturity.
G Fund returns are reduced by administrative expenses, which are about 0.06 percent, or $.60 for every $1,000 invested.
C, S, I and F Funds—The C, S, I and F Funds can post gains or losses.
The capital gain or loss consists of these elements:
- the change in the price of the stocks in the equity index funds (C, S and I Funds) or the notes in the U.S. Debt Index Fund (F Fund);
- dividend (C, S and I Funds) or interest (F Fund) income credited to the funds;
- interest on short term investments while contributions are awaiting investment;
- income from lending securities (C, S and I Funds) or notes and bonds (F Fund) on a short-term basis;
- administrative expenses, including management fees paid to Barclays, which are about 0.06 percent, or $.60 for every $1,000 invested in the C and F Funds and about 0.05 percent, or $.50 for every $1,000 invested, in the S and I Funds; and
- trading costs.
In addition, the I Fund fluctuates relative to the U.S. dollar’s value against the currencies of the countries in whose stock markets that fund has investments.
thanks that's exactly what i was looking for.
at first i thought this was pretty good based on what wiseradviser.com had to say:
"0.58% or less in mutual fund investment management fees is a reasonable standard for what plan participants should pay. "
then i went to motley fool and they had this to say:
Administrative costs
"Costs of record keeping, mailings, maintaining a customer service line, etc. These are all necessary costs, though they vary in size from fund to fund. The thriftiest funds can keep these costs below 0.20% of fund assets, while the ones who use engraved paper, colorful graphics, and phone answers with highfalutin' accents might fail to keep administrative costs below 0.40% of fund assets."
any thoughts?
that's exactly what i was looking for. at first i thought this was pretty good based on what wiseradviser.com had to say:
"0.58% or less in mutual fund investment management fees is a reasonable standard for what plan participants should pay. "
then i went to motley fool and they had this to say:
Administrative costs
"Costs of record keeping, mailings, maintaining a customer service line, etc. These are all necessary costs, though they vary in size from fund to fund. The thriftiest funds can keep these costs below 0.20% of fund assets, while the ones who use engraved paper, colorful graphics, and phone answers with highfalutin' accents might fail to keep administrative costs below 0.40% of fund assets."
any thoughts?
