Riskier TSP funds post losses for February

The two most reliable funds in the Thrift Savings Plan posted minimal gains in February, while all other funds lost ground.

The G Fund, which is made up of short-term Treasury securities specially issued to provide a higher return than inflation without any serious risk from market fluctuations, grew the most, with gains of 0.24 percent. Its 12-month earnings were 4.66 percent.The F Fund, which is invested in fixed-income bonds, earned 0.16 percent in February. The fund posted the biggest long-term gains in the TSP, earning 7.52 percent in 12 months. The international investments represented in the I Fund experienced a slight drop from the previous month, falling 0.66 percent. It has dropped 0.22 percent in the past 12 months. The S Fund, which invests in small- and mid-sized companies by tracking the Dow Jones Wilshire 4500 Index, dropped 2.05 percent in February. The fund posted losses of 5.85 percent for the year, the largest long-term losses of any fund in the TSP. The C Fund, composed of common stocks on the Standard & Poor's 500 Index of the largest domestic companies, dropped the most in the last month, falling 3.28 percent. Its 12-month losses were 3.59 percent. The TSP also has life-cycle (L) options, which are a blend of the five basic funds that automatically grow more conservative as investors near retirement. All the L funds experienced minor losses in February. L 2040, intended for employees with a target retirement date around the year 2040, dropped 1.80 percent; L 2030 fell 1.51 percent; L 2020 lost 1.25 percent; and L 2010 went down 0.59 percent. The L Income Fund, designed for employees with planned retirements in the very near future, lost 0.22 percent. Two L funds also posted losses for the year. The L 2040 Fund lost 1.11 percent and L 2030 lost 0.37. L 2020 gained 0.57 percent in 12 months, L 2010 earned 2.80 percent and L Income made 3.50 percent.