TSP participants seek safe G Fund haven

[unhappycamper]

TSP participants seek safe G Fund haven
By Stephen Losey - Staff writer
Posted : Tuesday Mar 17, 2009 9:48:42 EDT

Thrift Savings Plan allocations to the G Fund — the safest of TSP’s five funds — hit record highs during February’s stock market declines.

Service members had 53 percent of their savings in the G Fund, and federal civilians in the Federal Employees Retirement System had even more in that fund, 56 percent, the Federal Retirement Thrift Investment Board reported Monday.

The G Fund, invested in government securities, typically yields small returns — 0.21 percent in February — but it does not decline. Many TSP participants have sheltered their investments in the G Fund over the last year as the stock market has steadily declined.

Nearly $109 billion, or 57 percent, of TSP’s $191 billion balance is now invested in the G Fund. In comparison, 38 percent of TSP funds were invested in the G Fund in February 2008.

Participants moved $2 billion to the G Fund from riskier funds in February, and the shift appears to be continuing in March. Tracey Ray, the board’s chief investment officer, said that participants have moved $1.8 billion into the G Fund so far this month.


Rest of article at: http://navytimes.com/news/2009/03/miltary_TSP_GFund_031709w/%2e