A new strategy is being introduced which gives better returns than both the Basic and Plus — the Apex. The returns of Apex exceed the Plus by 4% annually – a 10-year annual return of about 23% (the Plus is about 19%; Basic is 12%).
The Apex uses the Plus strategy as a base, but includes a more aggressive maneuver during months when the top allocations fund is better than the next by more than 9% – it allocates 100% to the top fund.
So for example, say the Plus recommends 35% C, 25% S, 15% I, 15% F and 5% G. Because the highest recommendation (C Fund, 35%) is larger than the 2nd highest (S Fund, 25%) by at least 9%, the Apex then recommends 100% allocated to highest fund (C Fund) and none to the others.
If the difference is less than 9% between the highest and the next highest, then the TSP Plus allocations are used.
The data charts will be updated to include the Apex – but another post (comparisons) already shows the Apex performance.
As with the Plus, the recommendation will come on/about the 9th of the month.
Time will tell if the actual performance matches the expected.