TSP shows strength in September

After a weak August, Thrift Savings Plan funds rebounded nicely in September.

The S and I funds saw the biggest boosts, gaining 11.47 percent and 9.81 percent, respectively. The S Fund invests in small and midsize companies and tracks the Dow Jones Wilshire 4500 Index; the I Fund invests in overseas companies. Both portfolios posted losses in August. Since January, the S Fund has increased 11.70 percent and the I Fund has inched up 1.24 percent.

The C Fund, which fell 4.51 percent in August, was up 8.92 percent in September. The fund, which invests in common stocks of large companies on the Standard & Poor's 500 Index, has gained 3.89 percent since January.

The F Fund, invested in fixed-income bonds, saw a 0.17 percent bump in September, lower than the 1.28 percent growth posted in August. The government securities (G) fund, the TSP's most stable offering, also earned 0.17 percent in September, a slight decrease from its 0.22 percent gain in August. Since January, the F Fund has grown 8.07 percent, while the G Fund has increased 2.24 percent.

The life-cycle funds, designed to shift investors from a more aggressive portfolio earlier in their careers to more stable investments as they near retirement, all posted gains last month after a dismal August. The L 2040 Fund jumped the most, gaining 7.76 percent, and is up 5.15 percent since January. The L 2030 and L 2020 funds increased 6.77 percent and 5.54 percent in September, respectively. Both the L 2010 and the L Income fund posted 2 percent gains last month, up slightly from their August numbers. The L Income Fund is for people who have reached their target retirement date and are withdrawing money from their TSP accounts monthly.

The L 2010 Fund will close Dec. 31 and all investments will be moved to the L Income Fund. Participants wishing to change their investments can do so on the TSP website.