All but two of the funds in the Thrift Savings Plan continued to drop in July, with the international (I) fund, which invests in European, Asian, and Australian companies, suffering the largest losses.
The I fund fell 3.72 percent in July. Its value has declined 14.11 percent so far in 2008 and 11.64 percent during the last 12 months. The I fund's July losses were smaller than its June decline, when the fund lost 8.15 percent of its value.
In contrast, the government securities (G) fund was the only fund to post gains in July, as it was in June. The fund, which is the TSP's most stable offering, gained 0.40 percent last month. The fund's value has risen 2.20 percent this year and 4.15 percent during the last 12 months.
The remaining three main funds posted small losses. The C fund, which tracks Standard & Poor's 500 Index, fell 0.80 percent in July. The fund is down 12.6 percent since the beginning of 2008, and 10.99 percent in the last year. The S fund, which invests in small- and mid-size U.S. companies and tracks the Dow Jones Wilshire 4500 Index, fell 0.79 percent. That fund is down 8.41 percent for the year and 7.61 percent since July 2007.
The F fund, made up of fixed-income bonds, essentially remained the same at 0.01 percent, after a 0.08 percent loss in June. The F fund and the G fund are the only TSP options that have experienced an increase in value both during 2008 and over the past 12 months. The F fund's value is up 1.25 percent in 2008 and 6.42 percent during the past 12 months.
Four of the five lifecycle funds, which include riskier investments earlier in a participant's career and shift to a more conservative allocation as retirement approaches, continued their losses in July. The L Income fund, designed for participants close to retirement, posted no gain or loss.
The L 2040 fund, which was created for participants who will retire on or around 2040 and has the riskiest allocation, posted the largest losses -- 1.31 percent. The L 2030 fund dipped 1.07 percent, the L 2020 fund dropped 0.82 percent and the L 2010 fund fell 0.23 percent.
All the L funds have lost value in 2008, and only the L income fund has risen in value during the last 12 months, creeping up 1.52 percent. The L 2040 fund is down 9.59 percent this year and 7.41 percent over the last 12 months; the L 2030 fund is down 8.17 percent in 2008 and 5.95 percent during the past year; the L 2020 fund is down 6.60 percent in 2008 and 4.36 percent over the past 12 months; and the L 2010 fund is down 2.81 percent this year and 0.43 during the past year.
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