Retirement Savings Funds Hit a Slump in July

The federal employee retirement savings plan ended July on a down note, with all but one of its funds in the red for the month.

The losses follow a month of solid growth in June. The generally stable government securities (G) offering was the only fund that came out ahead for July, with very modest growth of 0.19 percent. It has gained 1.36 percent for the year so far.

The F Fund – made up of fixed income bonds – ended July with a loss of 0.19 percent, the smallest loss of any of the remaining funds. It was up 4.17 percent for 2014.

Common stocks in the C Fund were 1.37 percent in the red for the month, but up 5.71 percent for the year to date, putting them in the lead for 2014 earnings.

International stocks lost 1.95 percent in July, but were up 3.01 percent for the year. And the S Fund, invested in small and midsize companies, lost the most in July, at 4.38 percent. But it, too, was in the black for the year, at 1.56 percent.

The lifecycle funds – which move investors to less risky portfolios as they near retirement – were all in the red for July as well, with those for younger employees losing the most. The L Income fund, for employees who have retired and started withdrawing funds, lost 0.26 percent. L 2020 was down 0.97 percent; L 2030, 1.34 percent; L 2040, 1.63 percent; and L 2050, 1.86 percent.

Those offerings all remained up for the year to date, however. L Income gained 2.19 percent, L 2020 was up 3.12 percent, L 2030 was up 3.5 percent, L 2040 was up 3.72 percent, and L 2050 earned 3.92 percent.

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