Investment Management Fees

[greensea]

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

 

[grandma]

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.!!

 

[tsptalk]

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.

 

[greensea]

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?

 

[greensea]

nevermind that last post, just realized that we're talking .06 not .6, which is obviously a much difference story. i'm satisfied!

 

[tsptalk]

That is good and one of the few benefits of TSP over many IRAs.

 

[Mike]

Not getting hit with a $17 transaction fee is nice... unlike those $*(%! fees on scottrade when buying / selling / exchanging most mutual funds.