TSP funds boast strong gains in January

Every fund in the Thrift Savings Plan grew in January, and those investing in smaller and international companies had especially strong showings.

The S Fund, which invests in the stocks of small- and mid-sized American companies, grew 6.7 percent in the first month of 2006. The fund tracks the Dow Jones Wilshire 4500 Index, and invests in companies such as Amazon.com, Berkshire Hathaway, DIRECTV, Juniper Networks, Kraft Foods, the Liberty Media Corp. and Sirius Satellite Radio.

The I Fund, which invests in international stocks in Europe, Australia and some Asian countries, was close behind, with growth of 6.14 percent. Key companies in that fund include BP, GlaxoSmithKline, HSBC, Novartis, the Royal Bank of Scotland, Royal Dutch Petroleum Co. and Toyota.

The value of both these funds increased more than 20 percent in the past 12 months, from Feb. 1, 2005 to Jan. 31, 2006. The S Fund grew 22 percent and the I Fund gained 22.91 percent, making them by far the two best performers in the group.

The C Fund, which invests in common stocks and tracks Standard & Poor's 500 Index, saw a respectable 2.66 percent increase this month, bringing its 12-month growth to 10.4 percent. The fund invests in the 500 largest American companies, including Bank of America, Citigroup, Exxon Mobil, General Electric, Johnson & Johnson, Microsoft, Pfizer and Wal-Mart.

The government securities (G) fund grew 0.36 percent for a yearlong 4.48 percent growth.

The F Fund, made up of fixed-income bonds, lagged behind the rest, with a modest 0.09 percent gain for 1.91 percent growth in 12 months.

All the life-cycle funds -- which are composed of the five standard funds with a more conservative mix for employees closer to retirement and a riskier blend for younger participants -- gained this month as well.

The L 2040, designed for participants with an expected retirement date of 2040, grew the most, at 3.84 percent. L 2030 increased 3.4 percent, L 2020 gained 2.92 percent, L 2010 grew 2.22 percent and L Income, designed for employees contemplating retirement within the next few years, rose 1.1 percent.