TSP Growth Slows in June

International stocks fall for the first time since November 2016.

Most portfolios in the federal employee 401(k)-style retirement savings plan saw a decline in growth in June, but all but two of the funds still increased in value.

The Thrift Savings Plan’s S Fund, comprised of small-cap stocks, saw the greatest improvement last month, growing by 2.33 percent, a strong turnaround from May, when it lost value. The total growth for 2017 in the S Fund is 7.41 percent.

Common stocks in the C Fund grew by 0.62 percent, for a total increase this year of 9.34 percent. And the government securities (G) Fund, the most stable fund available, grew by 0.19 percent, bringing its 2017 total growth to 2.06 percent.

But the I Fund, which is made up of international stocks, in June saw its first decline since November. It dropped 0.18 percent, bringing its 2017 total growth to 14.10 percent. And the fixed income (F) Fund fell 0.09 percent, bringing its growth since January down to 2.48 percent.

The TSP’s lifecycle (L) funds, which shift investments toward more stable portfolios as people get closer to retirement, all saw modest growth last month. The L Income Fund, designed for those who already have begun withdrawing money, grew by 0.26 percent in June. L 2020 increased by 0.35 percent; L 2030, 0.46 percent; L 2040, 0.52 percent; and L 2050, 0.58 percent.

Although growth was slower than in previous months, the L Funds have seen a promising 2017 so far. L Income was up 3.07 percent; L 2020, 4.95 percent; L 2030, 7.01 percent; L 2040, 8.01 percent; and L 2050, 8.93 percent.