TSP Posts Gains as New Funds Come Online

The stock market gave a warm welcome to the new lifecycle funds, now available in five-year increments.

Every portfolio in the federal government’s 401(k)-style retirement savings program ended July in the black, as the funds continue their slow and steady recovery from the stock market volatility earlier this year.

The Thrift Savings Fund’s S Fund led the way, gaining 5.71% in July. But the performance was not enough to bring the fund into the black for 2020, as it still sits at -0.47% so far this year. The common stocks of the C Fund performed nearly as well, increasing 5.64% last month. In 2020, the C Fund has grown 2.31%.

The fixed income (F) fund gained 1.49% in July, putting its 2020 total at 7.66%. And the international stocks of the I Fund grew 2.33%, although it remains 9.01% in the red so far this year. The G Fund, which is made up of government securities, gained 0.06% in July, bringing its gains since January to 0.65%.

All of the lifecycle (L) funds, which shift investments to more stable portfolios as participants get closer to retirement, saw gains last month too. The L Income Fund, which now includes the former L 2020 Fund as that portfolio was retired last month, gained 1.11% last month; L 2030, 2.82%; L 2040, 3.35%; and L 2050, 3.80%.

So far this year, the L Income Fund has gained 0.87%; L 2030, -0.06%; L 2040, -0.41%; and L 2050, -0.78%.

The new L Funds, which are available in five-year increments, all saw positive performance last month, which are also their gains so far this year. The L 2025 Fund increased 2.19%; L 2035, 2.86%; L 2045, 3.32%; L 2055, 4.13%; L 2060, 4.13%; and L 2065, 4.13%.