Hi,

I am confused about the holdings of a few of TC's retirement class mutual funds.  I am specifically interested in the Small Cap Value Index (TRSVX) and the Small Cap Blend Index (TRBIX).  In these cases, M*'s X-ray says that they are holding 19% and 16% (respectively) of their assets in short-term investments.  Not exactly what you expect an index fund to do!

   However, TC provides some info about the holdings, and it is not consistent with M*.  The "fund facts" offered offered on the website say that they are holding 0.7% (TRBIX) and 2.2% (TRSVX) in short-term as of 3/31/2008.  If you dig a little deeper, and examine the actual (unaudited) holdings of the funds in Dec. 2007, they were holding about 5% in short-term, out of 105% (>100% due to overnight repurchasing agreements).

  I don't know whom to believe.  Of course, it could be that they are all consistent, and the funds have moved heavily into short term since the end of March.  Or, there could be some discrepancy  in M*'s (or TC's) reporting.

  If TC did move heavily into short term in the last month, that would signal that these "index funds" are actually actively managed.  If this is the case, I don't want any parts of them.

 Or, perhaps, there is another explanation that eludes me.  That is why I am writing here.  Does anyone have any guess/insight/intelligence/memory/hunch about why these numbers are discrepant?

Thanks!

PaulF