The I-fund Price 5/01/15

[tsptalk]

I'm getting a lot of inquiries about the price given to the I-fund yesterday. A few things to keep in mind:

1) The EAFE Index that the I-fund tracks closes before noon ET.

2) The EFA price at the bottom of tsptalk.com is NOT the I-fund. It is an ETF traded on the U.S. market that is supposed to track the EAFE Index and so we use it for some intraday guidance, but since it is traded like a stock, the price is where the buyers and sellers agree on a price. So while the EAFE is closed, traders are still speculating on a price.

3) The TSP has to come up with a price. This where it gets tricky because they have to decide whether to use the actual EAFE number, or to add / subtract "fair value" based on what's happen in other markets after the EAFE has closed.

The I-fund was given a loss of 0.27% on Friday.

The EFA had a gain of 1.11%.

The EAFE Index actually closed down 0.28% on Friday.



https://www.msci.com/end-of-day-data-search


The EAFE and the TSP will likely adjust on Monday, you'll see.

More on "fair value"... http://www.tsptalk.com/mb/the-i-fund/3111-what-fv-how-does-work.html

 

[Khotso]

I'm getting a lot of inquiries about the price given to the I-fund yesterday. A few things to keep in mind:

1) The EAFE Index that the I-fund tracks closes before noon ET.

2) The EFA price at the bottom of tsptalk.com is NOT the I-fund. It is an ETF traded on the U.S. market that is supposed to track the EAFE Index and so we use it for some intraday guidance, but since it is traded like a stock, the price is where the buyers and sellers agree on a price. So while the EAFE is closed, traders are still speculating on a price.

3) The TSP has to come up with a price. This where it gets tricky because they have to decide whether to use the actual EAFE number, or to add / subtract "fair value" based on what's happen in other markets after the EAFE has closed.

The I-fund was given a loss of 0.27% on Friday.

The EFA had a gain of 1.11%.

The EAFE Index actually closed down 0.28% on Friday.



https://www.msci.com/end-of-day-data-search


The EAFE and the TSP will likely adjust on Monday, you'll see.

More on "fair value"... http://www.tsptalk.com/mb/the-i-fund/3111-what-fv-how-does-work.html

Thanks much for that explanation Tom. The I Fund is really confusing -- and having a 1.38% difference in performance on one day is doubly so.

I'm assuming thew Monday adjustment will be to the plus side. Is that what you'd expect?

 

[tsptalk]

I'm assuming thew Monday adjustment will be to the plus side. Is that what you'd expect?

I'd assume so. They have a lot to make up, and they usually do it quickly.

 

[Nordic]

screwed

FV got us again today. EFA closed at +3.28% yet the I-Fund only closed at +1.97%...no sir, I would not like another!

 

[RealMoneyIssues]

Re: screwed

Excellent reason why I no longer use the "I"nsane fund...

 

[James48843]

Re: screwed

I fund actually is about 1.4% below where it should be - as they blew another .4% earlier in the week.

I am in the I fund now- hope they catch up Monday!

 

[James48843]

Re: screwed

Another divergent day on the "I" fund.

EFA was up 1.22%, yet the EAFE was only up 0.82%.

And the "I" fund value only rose about 0.81%.

Come on baby- let's make it up tomorrow!

 

[FogSailing]

Re: screwed

I hope it gets fixed James. I'm also crossing my fingers and toes for a few more up days in this rally (I hope it isn't just a DCB). Reading the news tonight reminds me why they call it the "wall of worry". I knew I should have listened to my gut and bought in on Friday. Oh well...time for more white water investing. Best of luck to you in your investing.

FS

 

[tsptalk]

Re: screwed

Another divergent day on the "I" fund.

EFA was up 1.22%, yet the EAFE was only up 0.82%.

And the "I" fund value only rose about 0.81%.

Come on baby- let's make it up tomorrow!

They didn't seem to take the afternoon weakness in the dollar into consideration...

Monday's dollar...

 

[Maricar19]

Re: screwed

Another divergent day on the "I" fund.

EFA was up 1.22%, yet the EAFE was only up 0.82%.

And the "I" fund value only rose about 0.81%.

Come on baby- let's make it up tomorrow!

At noon time, it was around .89%. According to Tom, i fund closes at noon time for TSP Purposes. Not the afternoon close.

 

[tsptalk]

Re: screwed

The Asian markets close very early and the European markets close at about 11:30 AM ET (lets say noon), but the I-fund is in reality open until the TSP says it's closed. Sometimes they take the late action into consideration, and sometimes they don't. That's the confusing part.

 

[userque]

After doing a little research not long ago, I believe the TSP uses a fair valuation for the I fund that is based upon the (projected?) current trading price of the EAFE at (or near?) the time the TSP posts its daily prices.

The EAFE begins trading at or after our markets close. So today, it seems that there was a pull-back of sorts. I don't believe that they ever 'owe' us anything with regard to fair valuation.

Best paper so far I've read regarding fair valuation and our funds:

https://www.msci.com/resources/pdfs/FV Research Bulletin_FINAL.pdf

 

[Maricar19]

Re: screwed

The Asian markets close very early and the European markets close at about 11:30 AM ET (lets say noon), but the I-fund is in reality open until the TSP says it's closed. Sometimes they take the late action into consideration, and sometimes they don't. That's the confusing part.

Ever since I tracked it at noon time, I fund had always been close to the reported share price at the end of the day, 9 of 10.
I was trying to track it (noon time values) in my account thread, but got too lazy to continue, plus I fund has something to do with the dollar, too for the FV. Too complicated for me.

 

[James48843]

Re: screwed

Looks like we are going to get slammed in the "I" fund today.

Dollar stronger after China devalues the Yuan slightly, and Japan and much of Europe sinks as a result.


Dang. Missed it again.

 

[James48843]

Re: screwed

Boom!


EFA down big at the open.


(-1.41%)


Ouch.