Only one portfolio in the federal government’s 401(k)-style retirement savings program ended last month in the red.
Nearly all of the portfolios in the federal government’s 401(k)-style retirement savings program posted gains in August, as financial markets continue their recovery from the March crash at the onset of the coronavirus pandemic.
The small- and mid-size businesses of the Thrift Savings Plan’s S Fund led the way, gaining 7.20% last month. So far this year, the S Fund has increased 6.70% in value. The common stocks of the C Fund grew 7.19%, good for a 9.67% increase in 2020.
The international (I) fund gained 5.12% in value, although that portfolio remains 4.35% in the red so far this year.
The fixed income (F) fund was the only portfolio in the TSP to lose value last month, dropping 0.81%. Since January, the F Fund has increased 6.79%.
The G Fund, which is made up of government securities, grew 0.05% in August, bringing its 2020 performance to 0.70%.
All of the TSP’s lifecycle funds, which shift to more stable investments as participants get closer to retirement, posted gains in August. The L Income Fund gained 1.39%; L 2025, 3.17%; L 2030, 3.81%; L 2040, 4.18%; L 2040, 4.56%; L 2045, 4.88%; L 2050, 5.21%; L 2055, 6.41%; L 2060, 6.40%; and L 2065, 6.40%.
So far this year, the L Income Fund has increased 2.27%; L 2030, 3.75%; L 2040, 4.13%; and L 2050, 4.38%. Year-to-date statistics for the TSP’s new lifecycle funds are not yet available, as they only completed their second month of existence.