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The S Fund Led TSP's February Gains
All but one fund posted positive returns last month.
The Thrift Savings Plan rebounded in February, with all but one fund posting positive returns, according to the latest data from the Federal Retirement Thrift Investment Board.
The S Fund, invested in small and midsize companies, had the best month of the 10 funds, increasing 6.05 percent. The international (I) fund gained 5.97 percent, while the C fund, invested in common stocks, saw a 5.75 percent boost in February. The F Fund, invested in fixed incomes bonds, was in the red last month, dropping 0.91 percent after posting positive returns in January.
The typically stable government securities (G) fund rose 0.13 percent last month. All the lifecycle (L) funds rose in February as well. Several funds were in the red in January.
All the funds were in the black over the last 12 months. The C Fund performed the best, increasing 15.60 percent during that time. The S Fund grew 8.50 percent during the last 12 months, while the F Fund rose 5.68 percent and the G Fund increased 2.22 percent during that time. The I Fund is up 0.26 percent since February 2014.
The plan’s lifecycle offerings -- which move participants to a more conservative mix of investments as they near retirement -- all rose in February. L Income, for those who have already started withdrawing money, increased 1.19 percent for the month; L 2020 gained 2.95 percent; L 2030 rose 3.80 percent; L 2040 increased 4.39 percent; and L 2050 gained 4.99 percent. Overall the funds were in the black during the last 12 months. L Income was up 4.16 percent, L 2020 gained 6.35 percent, L 2030 increased 7.42 percent, L 2040 grew 8.13 percent, and L 2050 was up 8.60 percent.
President Obama in December signed into law the bipartisan Smart Savings Act, which changes the default enrollment fund in the Thrift Savings Plan for new hires from the safe but slow-growth G Fund to the more diverse, age-appropriate lifecycle funds. The law only applies to new federal employees who are auto-enrolled in the TSP. It does not affect TSP participants who are currently auto-enrolled. The board has to issue rules on implementation before the changes take effect. That likely will happen in October 2015.
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