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View Full Version : TSP Fund YTD 'I' Fund Total- is FV factored in or out



Tempest
11-29-2007, 09:45 AM
I suspect the YTD total benchmark does not take into account the -FV's that are applied over the year.
Correcto-oh-mondo?

If that is the case-that fund YTD total is more like a 'gross' figure then a 'net' figure. Just wondering.

ChemEng
11-29-2007, 10:39 AM
Interesting question. I havent run the numbers to see. Has anyone looked at this yet?

nelsonal
01-24-2008, 04:39 PM
The FV adjustments are almost always a couple of day event, so by the time year end figures roll around they no longer matter. There seems to be a pretty big misunderstanding about what they are. Most big European stocks (and big stocks have a larger impact on the index) trade in the US, for example Nokia trades more shares here than in Helsinki. As a result, it's not hard to calculate what the impact Nokia's value will have on the index the next day. Repeat this for each of them or just watch the US indexes, FV adjustments almost always occur when the US markets move drastically differently from European ones so the European prices are inaccurate. To prevent folks from spotting these inaccuracies and trading based on the old prices they update the prices (and then reverse them the next day or a day or two later if volatility continues). It helps to plot US and European stocks on a 24 hour chart (in a single time zone to see why FV adjustments are sometimes needed).