TSP investments grow steadily in November

Each of the five basic funds in the Thrift Savings Plan posted solid gains in November.

The 401(k)-style retirement savings plan for federal employees, now worth more than $200 billion, made the biggest strides last month in investments in small- and mid-sized domestic companies. The S Fund, which invests in these companies by tracking the Dow Jones Wilshire 4500 Index, earned 3.54 percent in November for a 12-month total return of 15.61 percent.

International investments represented in the I Fund gained 2.96 percent last month. The fund's 28.2 percent 12-month return remains by far the highest in the TSP.

The C Fund, which tracks Standard & Poor's 500 Index of stocks in the largest domestic companies, grew 1.91 percent last month. The fund -- one of the first created in the TSP -- remains a popular choice with investors. Its 12-month return is 14.25 percent.

Longer-term returns drop precipitously when it comes to the F Fund, which is invested in fixed-income bonds. In November, the F Fund earned 1.08 percent, bringing its year-long growth to 5.96 percent.

Still, the F Fund's long-term growth is higher than that of the ever-reliable but less-than-flashy G Fund. The government securities that make up the G Fund are specially issued for TSP participants to provide a higher return than inflation without any serious risk from market fluctuations. Last month, the G Fund gained 0.43 percent for a 12-month return of 5.04 percent.

A private investment firm hired by the TSP Board recommended in November that the plan stay the same for the time being, so it looks less likely that participants will have any new funds to follow in the near future.

There are the lifecycle, or L, funds, which are blends of the five underlying investment options that automatically grow more conservative as participants age. In November, the L funds aimed at younger and more aggressive investors earned the most.

L 2040, intended for employees with a target retirement date around the year 2040, gained 2.32 percent last month. The L 2030 Fund earned 2.03 percent; the L 2020 gained 1.78 percent; the L 2010 increased 1.34 percent; and the L Income, designed for employees with planned retirements in the very near future, grew 0.79 percent.

Over the past 12 months, the L Funds with riskier allocations also earned more. L 2040 gained 16.54 percent, L 2030 grew 15.04 percent, L 2020 gained 13.65 percent, L 2010 earned 11.11 percent and L Income made 7.55 percent.