Major Shifts to the G Fund Following Brexit
Markets dropped drastically in June after the United Kingdom voted to leave the European Union, and following the fallout from the Brexit, Thrift Savings Plan (TSP) enrollees moved $1.8 billion into the G Fund in June.
The money was transferred from equity funds, including the S Fund, which invests in small and mid-size companies, and the International (I) Fund, which fell sharply in June.
As reported in GovExec, Kim Weaver, a spokeswoman for the Federal Retirement Thrift Investment Board (FRTIB) said the agency cannot be “absolutely positive,” but it is “likely” that the market crash following the Brexit vote caused enrollees to panic and move their funds.
Weaver also noted, “If someone did that and stayed in the G Fund, they would have missed the market growth that we experienced in July.”
Read more on TSP in GovExec.
Posted in General News