November yields solid earnings in TSP
All of the funds in the Thrift Savings Plan grew in November, offsetting losses incurred the month before.
The TSP - a 401(k)-style retirement savings program for federal employees - had the largest growth in its S fund, which invests in the stocks of small- and mid-size companies. The S fund gained 4.72 percent in November, followed closely by the C fund, which invests in common stocks and was up 3.75 percent.
The S fund also has overtaken the I fund, which is made up of international stocks, in terms of longer-term performance. Over the past year, the S fund saw a 14.64 percent gain, while the I fund grew by 13.35 percent.
For November, the G fund, which consists of government securities, and the F fund, made up of fixed-income bonds, showed more modest returns of 0.36 percent and 0.38 percent respectively.
All five of the life-cycle (L) funds, which blend the stand-alone funds based on expected retirement dates and automatically becoming more conservative as participants age, were boosted by the robust performance of the underlying funds.
The L funds designed for older participants, such as the L Income and the L 2010, had a smaller increase in November because of their heavier use of the G fund, which is dependable but has less opportunity for growth.
L 2040, designed for young employees planning a retirement date around the year 2040, grew 3.08 percent in November. L 2030 grew 2.80 percent, L 2020 rose 2.42 percent, L 2010 increased 1.89 percent and L Income grew 1.03 percent.
November's gains counteract October's negative returns. The ever-reliable G fund had a 0.36 percent gain, but every other fund lost ground in October. The I fund lost 2.90 percent that month, the S fund lost 2.33 percent, the C fund lost 1.66 percent, and the F fund lost 0.75 percent.
In an exact reverse of November's performance, the 2040 L fund was the least successful of the life-cycle options in October, and L Income was the most. All of the funds had negative returns; the L Income fund just lost the least.
For an index of the performance of the funds that is updated each business day, see the TSP Ticker on the GovExec.com home page.
Rates of return in November and October appear below. Numbers in parentheses are negative.
| G Fund | F Fund | C Fund | S Fund | I Fund | |
|---|---|---|---|---|---|
| November | 0.36% | 0.38% | 3.75% | 4.72% | 2.44% |
| October | 0.36% | (0.75%) | (1.66%) | (2.33%) | (2.90%) |
| Last 12 Months | 4.42% | 2.42% | 8.41% | 14.64% | 13.35% |
| L 2040 | L 2030 | L 2020 | L 2010 | L Income | |
|---|---|---|---|---|---|
| November | 3.08% | 2.80% | 2.42% | 1.89% | 1.03% |
| October | (1.90%) | (1.67%) | (1.34) | (0.93%) | (0.17%) |
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