The TSP’s governing board has decided to replace the current index used in its international stock I fund in order to make that fund more reflective of stock markets worldwide and further diversify it as an investment.

Since its launch in 2001, the I fund has tracked the MSCI Europe, Australasia, Far East benchmark of large company stocks in about two dozen countries. However, the TSP in recent years has considered expanding that to include smaller stocks and stocks of emerging countries, and previously committed to making such a move.

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The board at its most recent meeting accepted a recommendation by a consultant to switch to linking the I fund to the MSCI All Country World Index, which covers non-U.S. developed markets, smaller companies and emerging markets. Among other things, that means that the index will reflect stocks of Canada, the fourth-largest stock market in the world.

The transition to the new index likely will take a year or more, however.

The board meanwhile agreed with the consultant’s recommendation to keep the current indexes that underlie the large company U.S. stock C fund, the small company stock S fund and the bond F fund; the government securities G fund is operated by the TSP itself in conjunction with the Treasury. The lifecycle L funds reflect a predetermined mix of the other five funds; the TSP recently committed to having funds in five-year increments, rather than 10, starting in 2020.