August 6, 2013
BlackRock Institutional Trust Company has managed TSP’s F, C, S, and I Funds ever since it acquired Barclays Global Investors in 2009.
Now that the contracts to manage those funds are coming up for recompete, BlackRock has shown that it is looking to continue to manage the funds. In December, it won a renewed contract to manage the F Fund for up to five years.
Now the TSP is accepting Requests for Proposals (RFPs) to manage the I Fund, with an award of contract expected by the end of the year.
From the language in the announcement – and based on past negative assessments of an expanded I Fund – it does not appear that the I Fund will expand to include countries such as Canada, South Korea, or Taiwan, or other developing countries.
From the announcement:
“The I Fund invests in a stock index fund that fully replicates the Morgan Stanley Capital International EAFE (Europe, Australasia, Far East) Index. The earnings consist of gains (or losses) in the price of stocks, dividend income, and change in the relative value of currencies. As of May 2013, the I Fund held $28.8 billion in assets. The contract will be for a one-year term, with four one-year options. The FRTIB expects to award by contract by the end of 2013.”
Next up, RFPs for the C and S funds. Perhaps next year?