TSP Struggles in June

The Thrift Savings Plan struggled in June mostly due to the financial turmoil Brexit created, but it wasn’t all bad news: Four of its offerings posted positive returns last month.

Fixed income bonds in the F Fund rose 1.80 percent – the biggest return of any TSP offering in June -- while the common stocks in the C Fund gained a modest 0.26 percent. The stable government securities (G) fund inched up 0.15 percent, and the L Income fund, for those who have already started withdrawing money, grew a slight 0.11 percent last month. For the year to date, the F Fund is up 5.5 percent, the C Fund has gained 3.87 percent, and the G Fund is up 0.93 percent.

All the other funds were in the red. The international fund took the biggest hit in June, falling 3.33 percent, and the S Fund invested in small and midsize companies dropped 0.13 percent. The I Fund is down 3.44 percent for the year to date, while the S Fund has gained 2.71 percent since January. With the exception of the L Income fund, the lifecycle funds – which shift to more conservative portfolios as participants’ anticipated retirement dates grow closer – posted negative returns last month. L 2020 decreased 0.12 percent; L 2030, 0.31 percent; L 2040, 0.43 percent; and L 2050, 0.58 percent.

L Income was up 1.46 percent for 2016. L 2020 rose 1.63 percent for the year to date; L 2030, 1.75 percent; L 2040, 1.76 percent; and L 2050, 1.68 percent.

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