Thread: labor day F-fund fiasco

Griffin,

I have a horrible memory but I do remember an adjustment the the tsp.gov did within the last year to a fund. Don't know for what reason, it may have just been an share price human error.

Maybe if one of us that is articulate could draft a short protest with a link to your reference. We can copy and paste an email to tsp.gov. Squeaky wheel gets the oil.

I believe the "F" fund uses a form of Fair Value like the "I" Fund, if you check it out on winning days that are less than .09% we get nothing, but may FV it at a future time. I always wondered what they did with the extras. Some days the fund may make, like .12% and they give is .09, a penny, do they ever make it up?

If you go to stockcharts.com and look at stock symbol:
$BNDUS
You will see that bonds were up on Friday. AGG is a stock that tries to track the bond market, so its price will also be determined by stock traders buying and selling. Over the long term, the charts will be similar, but day to day price changes will not be exact between the actual bonds and the AGG stock.

Another place to look for the closing price of the Lehman Index is from their website:
http://www.lehman.com/LL_S/public/pu...bondindex.html

There, you'll see under the U.S. and Canadian Indices that the U.S. Aggregate was up 0.07% Friday.

Originally Posted by fabijo

If you go to stockcharts.com and look at stock symbol:
$BNDUS
You will see that bonds were up on Friday. AGG is a stock that tries to track the bond market, so its price will also be determined by stock traders buying and selling. Over the long term, the charts will be similar, but day to day price changes will not be exact between the actual bonds and the AGG stock.

Fabijo,

I appreciate the link. I don't watch the f-fund that closely, but it always seemed that the AGG and F-fund operated within a +/- .10% of each other. I had not realized that the AGG had a speculation component.

However, I 'm still not convinced that the odditity's with the pricing posted on the internet and the unusally large discrepency between the AGG and the F-fund are merely coincidence. What I can conclude from this is that TSP basis there numbers off of what Lehman Brother's generates. So I recind my earlier statement about incompetence at TSP.

This is a big help. Thanks.

Originally Posted by nnuut

I believe the "F" fund uses a form of Fair Value like the "I" Fund, if you check it out on winning days that are less than .09% we get nothing, but may FV it at a future time. I always wondered what they did with the extras. Some days the fund may make, like .12% and they give is .09, a penny, do they ever make it up?

Nnuut. This is simple rounding. The fund can only go up or down in increments of 1 cent. So yes it always gets made up (or as close as they can come).

Yes AGG was +.02 Sept 1st and we got a penny +.09. Maybe FV wasn't what happened but there was a carry over from the previous days gains. Yes should have called it something else, but wasn't it fair?

I despise the F fund...

Likewise, always have, but I think it's probably because I really don't quite understand how it works in relation to stocks. I KNOW, it's simple but when you're simple minded sometimes the reasoning escapes you. I never seem it be able to figure out what the "F" is going to do next, erratic is the word.

Originally Posted by Griffin

At least ten of us posting moves, moved in all or part to the F-fund. The fund as reported by at least a dozen different sites all showed the AGG (which is the ishares version of the F-fund and attempts to mirror the exact same index as the F-fund) as closing on Thursday at 99.55. However, on Friday morning the fund opened on all the sites at 99.15, with many of these sites showing the previous close at 99.15 (i.e. someone screwed up some database and changed the previous close price). Therefore, the AGG showed positive all day as it moved up and back down, finally closing at 99.17 - a price difference of .02 for a total gain for the day (from open to close) of .02%. However, the F-fund moved up a penny for a GAIN of .09%. This I can not figure out.....how could they bump the fund up after such a poor performance, even if they did not catch the previous close error? This is **** poor quality control on the part of TSP.

Now, what is the real sticking point of this whole deal is that (as reported by Reuters and a couple other sites) the AGG actually dropped by .38% (99.55 to 99.17). Will TSP go back and adjust the price for Friday, or will they try to cover the mistake on Tuesday by factoring todays drop then? In the later case, anyone who moved into the F fund today (Friday) would be out .47% as a result of this error.

The AGG paid a dividend of $0.393 on Friday morning, the result was the AGG which closed $19.55 on Thursday, opened 0.39 cents lower on Friday.....19.15 or so.....

Originally Posted by The_Technician

The AGG paid a dividend of $0.393 on Friday morning, the result was the AGG which closed $19.55 on Thursday, opened 0.39 cents lower on Friday.....19.15 or so.....

Aha! Seems like we talked about this before because your explanation rung a bell. Thanks Tech!

Originally Posted by The_Technician

The AGG paid a dividend of $0.393 on Friday morning, the result was the AGG which closed $19.55 on Thursday, opened 0.39 cents lower on Friday.....19.15 or so.....

That's good to know...based on this, then I do not have to fear some kind of price adjustment coming down tonight...other then the days action.

Thanks Tech.