DO FED JUDGES HAVE INVESTMENTS IN MBS?-- PAY ATTENTION TO S AND F FUNDS --Federal Government Retirement Funds and FRTIB Minutes Charts

8/3/2019 DO FED JUDGES HAVE INVESTMENTS IN MBS?-- PAY ATTENTION TO S AND F FUNDS --Federal Government Retirement Funds and FRTIB Minutes Charts

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Thrift Savings Plan

S FundSmall Capitalization Stock Index Inves

S Fund Returns*Inception 2010

PercentReturn

40

30

20

10

0

10

20

30

40

50

2001

Fund InformationAs of December 31, 2010

Net Assets$28.0 billion

2010 Administrative Expenses$0.24 per $1,000account balance,

.024% (2.4 basis points)

Benchmark IndexDow Jones U.S.

Completion TSM Indexwww.djindexes.com

Asset ManagerBlackRock Institutional Trust

Company, N.A.

Returns

S Fund*

Dow JonesU.S.

CompletionTSM Index

1-Year 29.06% 28.62%

3-Year 2.39% 2.53%5-Year 5.48% 5.54%

10-Year N/A 6.20%

Since Inception 7.14% 7.22%May 1, 2001

*After expenses

*The 2001 rate of return is a blended return using the return of the Dow Jones U.Sdeductions for management fees, trading costs, or administrative expenses) for tinception on May 1, 2001.

Dow Jones U.S. Completion TTop Ten Holdings f D b 3

Key Features TheSFundofferstheopportunitytoearnapotentia

returnoverthelongtermbyinvestinginthestocks

um-sizedU.S.companies.

TheobjectiveoftheSFundistomatchtheperforman

U.S.CompletionTotalStockMarket(TSM)Index,abr

madeupofstocksofU.S.companiesnotincludedin

ThereisariskoflossiftheDowJonesU.S.Completion

inresponsetochangesinoveralleconomicconditions

Earningsconsistofgains(orlosses)inthepricesofsincome.


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Dow Jones U.S. Completion TSMajor Industry GroupsDecember 31, 2010

Healt11

InformationTechnology

15.9%

Financials20.6%

ConsumerDiscretionary

15.3%Energy 7.0%

Telecom Services 1.6%

Utilities 3.7%

Consumer Staples 3.2%

Materials 7.2%

S Fund FactSBylaw,theSFundmustbeinvestedinaportfoliodesignedtoreplicatetheperformanceofanindexofU.S.c

ingthosethatareheldintheCFund.TheFederalRetirementThriftInvestmentBoardhaschosenasitsbenc

U.S.CompletionTotalStockMarketIndex,whichtrackstheperformanceoftheactivelytradednon-S&P500s

market.

TheDow Jones U.S. Completion Total Stock Market IndexisanindexofallactivelytradedU.S.comincludedintheS&P500Index.Theindexisdesignedtobethebroadestmeasureofthenon-S&P500domes

December31,2010,theindexwascomprisedof3,385commonstocks.TheDowJonesU.S.CompletionTSM

mately25%ofthemarketvalueoftheU.S.stockmarkets;theS&P500accountedfortheother75%.Thus,theco

CFundcovervirtuallytheentireU.S.stockmarket.

TheDowJonesU.S.CompletionTSMIndexisweightedbyoat-adjusted

marketcapitalization,inwhicha

companysmarketvalueandits

weightingintheindexarecalculated

usingthenumberofsharesthatare

freelytraded,ratherthanallout-

standingshares.Sharesthatarenot

freelytraded,suchastheholdingsof

controllingshareholdersandtheirfamilies,companymanagement,and

othercompanies,areexcludedfrom

thecalculation.Acompanysweight-

ingintheindexistheoat-adjusted

marketvalueofthecompany(that

is,thesharepricemultipliedby

thenumberoffreelytradedshares

outstanding)asapercentageofthe

combinedoat-adjustedmarketvalueofallcompaniesintheindex.

AsofDecember31,2010,thelargest

100companiesintheDowJonesU.S.

CompletionTSMIndexrepresented

23.7%oftheindex.

BlackRocks Extended Market

Index Fund TheSFundisinvestedinBlackRocksExtendedMarketIndexFund.TheDowJonesU.S.Com

containsalargenumberofstocks,includingilliquidstockswithlowtradingvolumeandstockswithpricesloshare.Therefore,itisnotefcientforBlackRocksExtendedMarketIndexFundtoinvestineverystockinthe

fundholdsthestocksofmostofthecompaniesintheindexwithmarketvaluesgreaterthan$1billion.Howe

calsamplingtechniqueisusedtoselectamongthesmallerstocks.BlackRocksmathematicalmodelconside

grouptomatchtheindustryweightsintheindex.Withineachindustrygroup,BlackRockselectsstocksthat,

toproduceareturnthatisveryclosetotheindustrysreturnintheDowJonesU.S.CompletionTSMIndex.Th

ExtendedMarketIndexFundisevaluatedonthebasisofhowcloselyitsreturnsmatchthoseoftheDowJone


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F FundFixed Income Index Investment

Thrift Savings Plan

Key Features TheFFundofferstheopportunitytoearnratesofre

thoseofmoneymarketfundsoverthelongterm(paperiodsofdeclininginterestrates),withrelativelylo

TheobjectiveoftheFFundistomatchtheperformaCapitalU.S.AggregateBondIndex,abroadindexre

bondmarket.

Theriskofnonpaymentofinterestorprincipal(credlowbecausethefundincludesonlyinvestment-grad

broadlydiversied.However,theFFundhasmarketthevalueoftheunderlyingsecuritieswilldecline)a

(theriskthatthesecuritywillberepaidbeforeitma

Earningsconsistofinterestincomeonthesecuritielosses)inthevalueofsecurities.

F Fund Returns*Inception 2010

PercentR

eturn





Average Duration

4.5 yearsAverage Current Yield

4.01%

Benchmark IndexBarclays Capital U.S. Aggregate

Bond Indexwww.barcap.com

Asset ManagerBlackRock Institutional TrustCompany, N.A.

Returns

F Fund*

BarclaysU.S.

Aggregate

Index1-Year 6.71% 6.54%3-Year 6.05% 5.90%5-Year 5.93% 5.80%

10-Year 5.91% 5.84%Since Inception 7.09% 7.34%January 29 1988 0

5

10

15

20


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F Fund FactsBylaw,theFFundmustbeinvestedinxed-incomesecurities.TheFederalRetirementThriftInvestm

sentoinvesttheFFundinanindexfundthattrackstheBarclaysCapitalU.S.Aggregate(U.S.Aggreg

merlytheLehmanBrothersU.S.AggregateIndex,abroadlydiversiedindexoftheU.S.bondmarket

TheU.S. Aggregate Indexconsistsofhighqualityxed-incomesecuritieswithmaturitiesofmoret

indexiscomprisedofTreasuryandAgencybonds,asset-backedsecurities,andcorporateandnon-

December31,2010,theindexincluded

7,994notesandbonds.Itsaveragecur-

rentyieldwas4.03%,whichmeansthat,

onanannualbasis,interestincome

equaledapproximately4.03%ofthe

returnoftheU.S.AggregateIndex.Theaverageduration(ameasureofinterest

raterisk)oftheU.S.AggregateIndexwas

4.54years,whichmeansthata1%in-

crease(decrease)ininterestratescould

beexpectedtoresultina4.54%de-

crease(increase)inthepriceofasecu-

rity.Newissuesareaddedcontinuously

totheU.S.AggregateIndex,andolderissuesdropoutastheymovetowithin

oneyearofmaturity.

BlackRocks U.S. Debt Index

Fund TheFFundisinvestedinthe

U.S.DebtIndexFund.BecausetheU.S.

AggregateIndexcontainssuchalarge

numberofsecurities,itisnotfeasiblefortheU.S.DebtIndexFundtoinvest

ineachsecurityintheindex.Instead,

BlackRockselectsalargerepresentative

sampleofthevarioustypesofmort-

gage-backed,U.S.Government,corpo-

rate,andforeigngovernmentsecurities

includedintheoverallindex.Withineachsector,BlackRockselectssecuritiesthat,asawhole,arede

importantindexcharacteristicssuchasduration,yield,andcreditrating.TheperformanceoftheU.

evaluatedonthebasisofhowcloselyitsreturnsmatchthoseoftheU.S.AggregateIndex.

TheFFundinvestsintheU.S.DebtIndexFundbypurchasingsharesoftheU.S.DebtIndexFundE,

sharesoftheU.S.DebtIndexMasterFund.AsofDecember31,2010,FFundholdingsconstituted$19

DebtIndexMasterFund,whichitselfheld$36.1billioninsecurities.

Barclays Capital U.S. AggreBond Market Sectors

December 31, 2010

Asset-BackedSecurities35%

Credit24%

Go


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Allocation TargetsJanuary 2011

L Income L 202

74%

6%12%

5%

3%

G

I

CF S 30%

7%

10

F

C

G

S

Thrift Savings PlanThrift Savings Plan

L FundsLifecycle Funds





Investment Objective

Fund GrowthPreservation

of AssetsL 2050 High Very Low

L 2040 High Low

L 2030 Moderate/High Low

L 2020 Moderate Moderate

L Income Low High

Time Horizons(when you expect to need the money)

Choose: If your time horizon is:L 2050 2045 or later

L 2040 2035 through 2044

L 2030 2025 through 2034

L 2020 2015 through 2024

L Income Now withdrawingor withdrawing soon

Inception

Key Features TheLFundsdiversifyparticipantaccountsamongth

Fundsusingprofessionallydeterminedinvestment

thataretailoredtodifferenttimehorizons.TheLFutotheirtargetallocationseachbusinessday.Thein

eachfundadjustsquarterlytomoreconservativeinv

fundstimehorizonshortens.

TheobjectiveoftheLFundsistoprovidethehighereturnfortheamountofrisktaken.

InvestingintheLFundsisnotaguaranteeagainstleliminaterisk.TheLFundsaresubjecttotherisksi

derlyingfunds,andcanhaveperiodsofgainandlos

TheLFundsreturnswillbeapproximatelyequaltoageoftheG,F,C,S,andIFundsreturns.Earningsa

andthereisadailysharepriceforeachLFund.


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L Fund FactsTheLFundsareintendedtomeettheinvestmentneedsofTSPparticipantswithtimehorizonsthatfallintovedshownonthefront.TheveLFundsweredesignedfortheTSPbyMercerInvestmentConsulting,Inc.TheassetaMercersassumptionsregardingfutureinvestmentreturns,ination,economicgrowth,andinterestrates.TheTSP

tionsatleastannuallytodeterminewhetherchangestotheallocationsarewarranted.

L2050,L2040,L2030,andL2020areforparticipantswithtimehorizonsthatfallwithinthedeneddateranges.ofthesefundsareadjustedquarterly,movingtoamoreconservativemix,graduallyapproachingthatoftheLIncoquarterlyadjustments,theassetallocationofeachfundismaintainedthroughdailyrebalancingtothatfundstarfundreachesitshorizon,itwillrollintotheLIncomeFund,andanewfundwillbeaddedwithamoredistanttime2010,theL2010FundrolledintotheLIncomeFund,andshortlythereaftertheL2050Fundwascreated.

TheLIncomeFundisdesignedtoproducecurrentincomeforparticipantswhoarealreadyreceivingmoneyfrommonthlypaymentsandforparticipantswhoplantowithdrawortobeginwithdrawingfromtheiraccountsinthenallocationoftheLIncomeFunddoesnotchangeovertime;itismaintainedthroughdailyrebalancing.

ThepiechartsonthefrontshowtheJanuary2011targetallocationsoftheLIncome,L2020,L2030,L2040,andLveunderlyingTSPfunds.TheallocationtotheGFund,whichhastheleastamountofrisk,islargestintheLIncosuccessivelysmallerwiththemoredistanttargetdates.Incontrast,theallocationstotheF,C,S,andIFunds,whiofrisk,butalsothepotentialforhigherreturns,arelargestinL2050andsmallestintheLIncomeFund.

ThegraphbelowdepictstheexpectedreturnandriskassociatedwitheachoftheveLFundsbasedonthetarget2011.TheexpectedreturnsarederivedfromMercerseconomicassumptionsandarenotguaranteed.Expectedvamentreturnsisameasureofriskininvesting.Foreachrisklevel,thereisoneoptimalassetallocationthatprovireturn.ThecollectionofoptimalassetallocationsmakeuptheEfcientFrontier,whichisshownbythecurve.AsbelowtheEfcientFrontierarelessthanoptimal,becausethereisanassetallocationalongthefrontierthatprov

thesamelevelofrisk,orlowerriskforthesameexpectedreturn.TheveTSPLFundshaveassetallocationsthatshownontheEfcientFrontier.Putting your entire TSP account into one of the L Funds will help you to achireturn for the amount of ex-pected risk that is appropriatefor your time horizon.

Overtime,theLFunds(exceptfortheLIncomeFund)willrolldowntheEfcientFrontier.Thatmeansthat,astheirallocationsare

adjustedeachquarter,thefundsshiftleftontheline,becominglessrisky,untiltheyeventuallymergeintotheLIncomeFund.

TheadministrativeexpensesassociatedwiththeLFundsarethoseoftheunderlyingG,F,C,S,andIFunds,calculatedinpropor-tiontotheirallocationsineachLFund.TheLFundsdonothaveanyadditionalcharges.TherearenorestrictionsoninvestingintheLFunds.YoumayinvestanypartofyourTSPaccountinanyLFund,andeveninvestinmorethanoneLFund.But it is recommendedthat you put your entire TSP ac-

L Funds and the Efcient Fro

Expected

Return

0% 5% 10% 15%0%

2%

4%

6%

8%

10%

Income

20202030

2040


7/32

Thrift Savings Plan

I FundInternational Stock Index Investme

MSCI EAFE Top Ten Holdas of December 31 2010

PercentRetu

rn

0

200150

40

30

20

10

10

20

30

40

I Fund Returns*Inception 2010

Key Features TheIFundofferstheopportunitytoearnapotentiareturnoverthelongtermbyinvestinginthestocks

velopedcountriesoutsidetheUnitedStates. TheobjectiveoftheIFundistomatchtheperformaStanleyCapitalInternationalEAFE(Europe,Australasi

ThereisariskoflossiftheEAFEIndexdeclinesinresinoveralleconomicconditions(marketrisk)orinreinthevalueoftheU.S.dollar(currencyrisk).

Earningsconsistofgains(orlosses)inthepricesof

changesrelativetotheU.S.dollar,anddividendinc





Benchmark IndexMorgan Stanley CapitalInternational EAFE

Stock Indexwww.msci.com


Company, N.A.

ReturnsI Fund*

EAFEIndex

1-Year 7.94% 7.75%

3-Year 6.86% 7.02%

5-Year 2.61% 2.46%

10-Year N/A 3.50%

Since Inception 4.43% 4.49%May 1, 2001

*After expenses

*The 2001 rate of return is a blended return using the return of the EAFE Indexagement fees, trading costs, or administrative expenses) for the period prior tMay 1, 2001.


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I Fund FactsBylaw,theIFundmustbeinvestedinaportfoliodesignedtotracktheperformanceofanindexofcommon

ternationalstockmarketsoutsideoftheUnitedStates.TheFederalRetirementThriftInvestmentBoardhasc

theMorganStanleyCapitalInternationalEAFE(Europe,Australasia,FarEast)Index,whichtrackstheoveral

jorcompaniesandindustriesintheEuropean,Australian,andAsianstockmarkets.

AsignicantcomponentofthereturnoftheEAFEIndex(andtheIFund)resultsfromchangesinthevalueo

tivetothecurrenciesofthecountriesrepresentedintheindex.Forexample,theEAFEIndexreturned7.75%

includedadecreaseinthevalueoftheU.S.dollarwhich

increasedthereturnby2.93%.

TheEAFE Index,publishedbyMorganStanleyCapitalIn-ternational(MSCI),isanindexoftheequitymarketsofthe

developedworldoutsideoftheUnitedStatesandCanada.

Itisthemostwidelyusedinternationalstockindex.AsofDecember31,2010,theindexcoveredtheequitymarkets

of22countries,asshowninthetable.

ThecompaniesintheEAFEIndexarelargecompanies.

Theindexisweightedbyoat-adjustedmarketcapitaliza-

tion,inwhichacompanysmarketvalueanditsweighting

intheindexarecalculatedusingthenumberofshares

thatarefreelytraded,ratherthanalloutstandingshares.

Sharesthatarenotfreelytraded,suchastheholdings

ofcontrollingshareholdersandtheirfamilies,companymanagement,andothercompanies,areexcludedfrom

thecalculation.Alsoexcludedaresharessubjecttofor-

eignownershiplimitationsimposedbygovernmentsor

companies.Withineachcountry,acompanysweighting

istheoat-adjustedmarketvalueofthecompany(thatis,

thesharepricemultipliedbythenumberoffreelytraded

sharesoutstanding)asapercentageofthecombined

oat-adjustedmarketvalueofallcompaniesintheindex.

Similarly,acountrysweightingintheEAFEIndexistheoat-adjustedmarketvalueofitsstockmarketasaper-

centageofthecombinedoat-adjustedmarketvalueofall

stockmarketsincludedintheEAFEIndex.

BlackRocks EAFE Index Fund TheBlackRockFund

holdscommonstocksofallthecompaniesrepresented

intheEAFEIndexinvirtuallythesameweightsthatthey

haveintheindex.ThereturnontheBlackRockFund(and

ontheIFund)willdifferfromthatoftheEAFEIndexon

dayswhenBlackRockmakesafairvaluationadjustmenttorepricethesecuritiesheldbythefund.Fairvaluation

adjustmentsaremadeondayswhentherearelargemove-

mentsineitherU.S.equitymarketsorcurrencyexchange

ratesaftertheforeignmarketshaveclosed.Fairvaluation

preventstradersfromexploitingstaleprices,thusdilut-

ing the returns of other TSP participants who invest in the I Fund

EAFE IndeCountry ComposiDecember 31, 20

CountryPercent

of Index

EuropeAustria 0.3Belgium 0.9Denmark 1.0Finland 1.1France 9.5

Germany 8.2Greece 0.2Ireland 0.2Israel 0.8 Italy 2.6Netherlands 2.5Norway 0.8Portugal 0.3Spain 3.3Sweden 3.2Switzerland 8.0United Kingdom 21.3

Europe 64.4%

Australasia/Far EastAustralia 8.8Hong Kong 2.9

Japan 22.1New Zealand 0.1Singapore 1.7

Australasia/Far East 35.6%Total EAFE Index 100.0%

*Weight as a percentage of index (based on fowhich reects the free oat available to foreig

Source: Morgan


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Thrift Savings Plan

G FundGovernment Securities Investmen

G Fund Returns1988 2010

ercentReturn

$

Key Features TheGFundoerstheopportunitytoearnratesoin

thoseolong-termGovernmentsecuritiesbutwithooprincipalandverylittlevolatilityoearnings.

TheobjectiveotheGFundistomaintainahigherrwithoutexposingtheundtoriskodeaultorchang

TheGFundisinvestedinshort-termU.S.TreasurysissuedtotheTSP.Paymentoprincipalandinterest

theU.S.Government.Thus,thereisnocreditrisk.

TheinterestrateresetsmonthlyandisbasedontheyieldoalloutstandingTreasurynotesandbondsw

tomaturity.

Earningsconsistentirelyointerestincomeonthes

InterestonGFundsecuritieshas,overtime,outpaced90-dayT-bills.





ReturnsAfter Expenses

1-Year 2.81%

3-Year 3.18%

5-Year 3.86%

10-Year 4.26%

Since Inception 5.93%April 1, 1987


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Thrift Savings Plan

C FundCommon Stock Index Investment

C Fund Returns*Inception 2010

PercentRetur n

40

30

20

10

0

10

20

30

40

1988

Key Features TheCFundoerstheopportunitytoearnapotentiareturnoverthelongtermromabroadlydiversifed

olargeandmedium-sizedU.S.companies.

TheobjectiveotheCFundistomatchtheperormdard&Poors500(S&P500)Index,abroadmarketi

stockso500largetomedium-sizedU.S.companies

ThereisariskolossitheS&P500Indexdeclinesichangesinoveralleconomicconditions(marketrisk

Earningsconsistogains(orlosses)inthepricesodividendincome.





Benchmark IndexStandard & Poors 500

Stock Indexwww.standardandpoors.com


Company, N.A.

Returns

C Fund*S&P 500

Index

1-Year 15.06% 15.06%

3-Year 2.80% 2.86%

5-Year 2.34% 2.29%

10-Year 1.42% 1.41%Since Inception 9.55% 9.78%January 29, 1988

*After expenses

S&P 500 Top Ten Holdi

*1988 return shown is a partial-year return.


12/32

C Fund FaCtsBylaw,theCFundmustbeinvestedinaportoliodesignedtoreplicatetheperormanceoanindexingtheU.S.stockmarket.TheFederalRetirementThritInvestmentBoardhaschosenasitsbenchmPoors500(S&P500)Index,whichtrackstheperormanceomajorU.S.companiesandindustries.

TheS&P 500 Indexisanindexo500largetomedium-sizedU.S.companiesthataretradedintheTheindexwasdesignedbyStandard&PoorsCorporation(S&P)toprovidearepresentativemeasurperormance.Thecompaniesintheindexrepresent132sub-industriesclassifedintothe10majorininthechart.ThestocksintheS&P500Indexrepresentapproximately75%othemarketvalueothe

TheS&P500isconsideredabigcompanyindex.AsoDecember31,2010,thelargest100companiesintheS&P500representedapproximately65%otheindexsmarketvalue.TheS&P500Indexincludes401se-curitiestradedontheNewYorkStockExchangeand99securi-tiesthataretradedonNASDAQ.Themarketvalueothelargest

companyintheindexisapproxi-mately$369billion;themarketvalueothesmallestcompanyisapproximately$1.3billion.

TheS&P500Indexisweightedbyoat-adjustedmarketcapi-talization,inwhichacompanysmarketvalueanditsweighting

intheindexarecalculatedus-ingthenumberosharesthatarereelytraded,ratherthanalloutstandingshares.Sharesthatarenotreelytraded,suchastheholdingsocontrollingshareholdersandtheiramilies,companymanagement,andothercompaniethecalculation.Acompanysweightingintheindexistheoat-adjustedmarketvalueothecompanpricemultipliedbythenumberoreelytradedsharesoutstanding)asapercentageothecombined

ketvalueoallcompaniesintheindex.

BlackRocks Equity Index Fund TheCFundisinvestedintheEquityIndexFund.TheCFundhocludedintheS&P500Indexinvirtuallythesameweightsthattheyhaveintheindex.TheperormancFundisevaluatedonthebasisohowcloselyitsreturnsmatchthoseotheS&P500Index.AportionFundassetsisreservedtomeettheneedsodailyclientactivity.Thisliquidityreserveisinvestedincontracts

S&P 500 Index

Major Industry GroupsDecember 31, 2010

Health Care10.9%

InformationTechnology

18.7%

Industrials11.0%

ConsumerDiscretionary

10.6%

En12

Telecom Services 3.1%Utilities 3.3%

ConsumerStaples10.6%

Materials 3.7%


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http://www.frtib.gov/pdf/minutes/MM-2011Nov-Att2.pdfhttp://www.frtib.gov/pdf/minutes/MM-2011Nov-Att1.pdf

DO FED JUDGES HAVE INVESTMENTS IN MBS?-- PAY ATTENTION TO S AND F FUNDS --Federal Government Retirement Funds and FRTIB Minutes Charts

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