Playing the I fund

[sugarandspice]

I fund officially down .17 cents to $18.93

 

[Wheels]

Yikes that's a pretty big adjustment. By my count, Barclays now owes the I fund 14 cents.. Hopefully not too many TSPtalkers bailed on the I fund today.

Dave
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[Gilligan]

Yikes that's a pretty big adjustment. By my count, Barclays now owes the I fund 14 cents.. Hopefully not too many TSPtalkers bailed on the I fund today.

Dave
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I figure 14 cents also, thats the largest adjustment that I have seen.

 

[Master]

I missed it by a day (actually barely an hour as I traded around the 11 am EST, after noon it would be posting until today)! Today, would have been a much better re-entry day into the I market as compared to yesterday. In the long run, the I will do well in 2006.

 

[LA_Guy]

MSCI shows EAFE down (0.355%) today. Any reason behind this? I thought this will be a big gain day for I-fund.

 

[Soldat]

Posted this in the daily talk also

As for the I fund, we were un-"fairly adjusted" last night.

28 Feb shows EAFE -.138% or -2.64 cents
28 Feb I fund posts -.89% or 17 cents (~14 cent adjustment due to dollar rising after EAFE close)

29 Feb shows EAFE -.355% or -6.77 cents

This shows us that the EAFE (if it corresponds with the I fund) should post on 29 Feb at 19.006 which would be $19.01

Of course, this goes by the assumption that they repay the full amount of the adjustment and re-value to correspond with the EAFE. It could be under 19.01 if they do not repay in full or over 19.01 if they un-"fairly adjust" the returns again.

 

[nnuut]

CROOKS!!!!!

 

[Robo5555]

Just called TSP....they do not have the Mar 29 share price for the I fund.

 

[LA_Guy]

I have to say this fair value adjustment thing smell like price manipulation to me.

 

[FUTURESTRADER]

Just called TSP....they do not have the Mar 29 share price for the I fund.

9:18 est..still no quotes...probably still figurin an FV that won't won't be too suspicious:0???!!

 

[Soldat]

19.14 now we owe the I fund about 13 cents. Someone up top is playing this in thier favor. Crooks and cheats.

 

[SkyPilot]

Fair Valuation: On some days, the change in the I Fund share price reported by the TSP does not match the change reported for the Morgan Stanley EAFE (Europe, Australasia, Far East) index, which the I Fund tracks. This happens when the Board's investment manager, Barclays Global Investors (BGI) reprices its EAFE Equity Index Fund, in which the TSP invests, after the close of the foreign markets. This process, known as "fair valuation," occurs when there are large U.S. market or currency movements between the time the foreign markets close and 4:00 p.m., eastern time, when BGI's share prices are determined. Fair valuation ensures that traders cannot "market time" the I Fund by making investment decisions based on the "stale" prices, thus diluting the returns of other participants who invest in the I Fund. Because the EAFE uses the foreign market closing prices to calculate its values, its price change will differ from the TSP's on those days: Info from this site and TSP site

 

[sugarandspice]

When we have these FV days, has anyone noticied any kind of patterns the day before these happen so a best guess scenario on pinking up the plus side on one of these FV days.

Offtopic: Why does that fed announcement always have to be at 2:15 eastern?

 

[mlk_man]

My personal opinion is that they have to make adjustments if our markets have large gains or losses after the foreign markets close. Tuesday our markets lost after noon so I believe they adjusted down. Yesterday we had large gains after internationals closed so they had to adjust up. This morning we are seeing our markets drop after a strong start and foreign markets are already closed. If we continue down, will they have to adjust again?

Of course with our cutoff times, it's usually too early to tell what our markets are going to do so we can't do anything about it.

 

[mlk_man]

Duh, I just read Sky's post.................

 

[Rod]

Fair valuation ensures that traders cannot "market time" the I Fund by making investment decisions based on the "stale" prices, thus diluting the returns of other participants who invest in the I Fund.
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Well... someone here will prove them wrong and come up with a timing strategy we all will benefit from.

 

[Wheels]

My personal opinion is that they have to make adjustments if our markets have large gains or losses after the foreign markets close.

True But this time it had as much or more to do with the wild dollar swings each afternoon.

Dave
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[Wheels]

Because of yesterday's FV (2 days in a row but different directions) the I fund is now 13 or 14 cents overvalued and it will have to be shaved off. However, foreign markets are up pretty big today, and the dollar is way down today, so I am thinking that the I fund will survive today's "correction" quite nicely (which I am none too happy about as I am sitting in the G trying to catch the I)

Dave
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[LA_Guy]

They should offset each other since they made a negative adjustment on Tues and positive adjustment yesterday. No???

 

[Wheels]

They should offset each other since they made a negative adjustment on Tues and positive adjustment yesterday. No???

No. They adjusted it on Tues. On Wed, they didn't just "correct" it, they corrected it plus adjusted it some more to the tune of 14 cents too high.

Dave
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