Thrift Savings Plan's Stock Funds Take a Hit

Discussion Policy

Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.

Andrew M. Saul, the thrift board's chairman, emphasized that Grossman's appearance was part of a "normal review" and noted that the board has "tremendous confidence" in Barclays's management of the TSP's funds.

Barclays Global Investors is part of Barclays, the 11th-largest bank in the world in terms of assets. Grossman said his division of the British Bank manages about $2 trillion worth of assets, with most of that money linked to index funds that try to mirror the broad performance of stock and bond markets.

The TSP's bond fund, for example, invests in fixed-income securities that track Lehman Brothers' U.S. Aggregate Index, which consists of securities that mature after more than one year. Over the past 12 months, the TSP's bond fund has gained 7.87 percent, outperforming the TSP's stock index funds during that time.

At yesterday's meeting, the thrift board also received an audit report from Deloitte & Touche, which gave the TSP an unqualified opinion, or "clean opinion." That means the TSP's financial statements for 2007 were in accord with generally accepted accounting principles.

Deloitte offered some recommendations for improvements in the technical controls of computer networks and system software, including how participants gain access to their accounts.

In a response, the TSP said it has hired a program manager to develop an updated password policy and standards for implementing new password requirements.

Stephen Barr's e-mail address isbarrs@washpost.com.

< 2