Common stocks lead August TSP earnings
Common stocks in the Thrift Savings Plan made the strongest gains for August, while only international investments -- the leader for yearlong growth -- lost ground.
The C Fund, which tracks Standard & Poor's 500 Index of stocks in the largest domestic companies, gained 1.54 percent last month. That increase brought the C Fund's 12-month total growth to 15.21 percent.
The S Fund, which invests in small- and mid-sized companies by tracking the Dow Jones Wilshire 4500 Index, grew 1.38 percent in August, for a 12-month increase of 16.38 percent.
The fixed-income bonds in the F Fund posted gains for August as well, coming in at 1.23 percent. The fund's 12-month earnings stood at 5.32 percent.
The government securities (G) fund -- which is the most reliable TSP option, with a guaranteed small but steady growth -- earned 0.33 percent last month for a yearlong 4.86 percent gain.
The I Fund was the lone loser for August, dropping 0.71 percent. The fund, made up of international investments, still had the highest 12-month earnings, coming in at 18.79 percent.
Participants in the 401(k)-style federal employee retirement savings plan also can invest in five life cycle funds, made up of a mix of the underlying basic funds. The L funds shift investments from riskier to more conservative blends as participants age. L funds with riskier allocations posted the strongest gains for August.
L 2040, intended for employees with a target retirement date around the year 2040, gained 0.90 percent. The L 2030 Fund earned 0.88 percent; the L 2020 gained 0.80 percent; the L 2010 increased 0.73 percent; and the L Income, designed for those with planned retirements in the very near future, grew 0.61 percent.
The L funds with riskier allocations also earned more over 12 months. L 2040 gained 14.82 percent, L 2030 grew 13.65 percent, L 2020 gained 12.34 percent, L 2010 earned 9.99 percent and L Income made 7.28 percent.
COMMENTS
- Okay. I’ll bite also. Seeing as the C Fund price per share was $16.26 on 31 Jul, $16.38 on 1 Aug, $16.51 on 31 Aug, and finally $16.68 on 4 Sep (reporting gains made the day of 31 Aug). It’s obvious you went from the last day of one month until the last day of the next. As per: 31 Aug / 31 Jul 16.51 / 16.26 = 1.54% Unfortunately this includes the gains from the last day in July and neglects the gains from the last day in August. Personally, I feel that for a more accurate representation of the gains or losses that actually occurred in August, would you not have to take the starting price in August, or that reflected on the first day. So saying, we entered August with the C Fund at $16.38 and then the price starting on the 4th of Sep reflects the gains that occurred on 31 August. Or: 4 Sep / 1 Aug 16.68 / 16.38 = 1.83% gain I do wish I could find data on the various indexes and markets in as concise a manner as shown on the TSP historical page. That would make comparison much easier. If anyone knows of such, please let me know. Tip off Posted September 10, 2007 3:56 PM
- How did the C fund have an increase of 1.54 percent for the month of August when the stock market declined in August? Clark Griffith Posted September 10, 2007 8:10 AM
