TSP funds stay in the black for October

By Amelia Gruber

November 1, 2010

All the offerings in the federal employee retirement program grew in October, though not at as fast a clip as the month before.

The S Fund led the pack, with a 4.48 percent gain for October. The fund, which invests in small and midsize companies and tracks the Dow Jones Wilshire 4500 Index, also came in first for the year-to-date, boasting 16.7 percent growth.

The C Fund -- invested in common stocks of large companies on the Standard & Poor's 500 Index -- came in second for October, with a 3.8 percent increase. Its 2010 returns were 7.84 percent.

International stocks maintained their momentum as well, with the I Fund growing 3.63 percent for October and 4.91 percent for the year.

While all three stock-based funds made a strong showing in October, they slowed considerably from the previous month, when the S Fund increased 11.47 percent; the I Fund, 9.81 percent; and the C Fund, 8.92 percent.

Fixed-income bonds and traditionally stable government securities inched forward in October, with 0.36 percent and 0.18 percent returns respectively. The F Fund stood out more for its yearlong performance, with its 8.46 percent returns outpacing the C and I funds' 2010 growth. The G Fund gained 2.42 percent for the year.

The Thrift Savings Plan's life-cycle options -- designed to move investors to less risky portfolios as they get closer to retirement -- all posted at least small gains for October. Employees with longer investment horizons fared better for the month, with increases of 3.16 percent for the L 2040 Fund; 2.78 percent for the L 2030; 2.29 percent for L 2020; and 0.92 percent for both L 2010 and L Income, for people who have reached their target retirement date and are withdrawing money from their accounts.

Younger employees with more aggressive life-cycle portfolios also did better for the year to date, with the L 2040 Fund earning 8.47 percent for 2010, the L 2030 up 7.76 percent, the L 2020 at 6.78 percent, the L 2010 at 4.15 percent, and the L Income at 4.23 percent.


By Amelia Gruber

November 1, 2010

http://www.govexec.com/pay-benefits/2010/11/tsp-funds-stay-in-the-black-for-october/32650/