House Oversight and Government Reform Federal Workforce Subcommittee Chairman Danny K. Davis, D-Ill., said the TSP's investment approach makes it harder for the plan to work with minority- and women-owned financial management firms.
"The executive director of the Federal Retirement Thrift Investment Board revealed that there are minority firms with talent in long-term financial management," Davis said. "However, most of those firms gravitate toward the active fund management business, which is not an investment strategy of the TSP. Research by the TSP indicates that there may be only one minority-owned firm that deals with passive management of index funds."
OMG! I plan on writing Danny a letter. If he wants to help women and minority owned financial management firms gain access to the TSP, then perhaps he can help them create low cost index funds.