Riskier TSP funds show greatest gains in March

Small and international stocks, two of the riskier and increasingly popular fund options in the Thrift Savings Plan, led the pack in March for earnings, while only fixed-income bonds lost ground.

The S Fund, which invests in the stocks of small- and mid-sized American companies, grew the most at 3.84 percent last month. The fund tracks the Dow Jones Wilshire 4500 Index, which invests in the 4,500 next-largest domestic companies after the 500 tracked by the common stock, or C Fund. March's growth brings the S Fund's 12-month gains to 25.26 percent -- also the highest increase.

The TSP is federal employees' 401(k)-style retirement savings plan. It offers five basic fund options (S, I, C, G and F) and a number of life cycle funds, which represent a mix of the five funds, with the blend growing more conservative as investors age.

International stocks, the second highest earner, grew 3.33 percent in March, for a 12-month total gain of 24.53 percent, also the second highest. The I Fund invests in stocks in Europe, Australia and some countries in Asia.

TSP administrators have reported a jump in I Fund investments over the past year, as plan participants respond to the relatively higher gains that option has posted.

The C Fund, which tracks Standard & Poor's 500 Index, gained 1.29 percent for March. Its 12-month gain is 11.71 percent.

The government securities, or G Fund, which is the most reliable TSP fund with a guaranteed small but steady growth, earned 0.36 percent last month for a yearlong 4.44 percent increase.

The F Fund, the lone loser among the five basic fund options for March, dropped 0.93 percent. Made up of fixed-income bonds, the F Fund's 12-month earnings are still positive, at 2.31 percent.

All of the TSP's life cycle fund options, which automatically adjust as investors near their target retirement date, saw gains this month. The funds designed for younger employees grew the most, because they include larger proportions of investments in the S and I funds.

The L 2040 fund, designed for TSP participants anticipating retirement around the year 2040, grew 1.98 percent in March. The L 2030 Fund gained 1.71 percent; the L 2020 rose 1.56 percent; the L 2010 increased 1.19 percent; and the L Income, designed for employees with planned retirements in the very near future, gained 0.67 percent.

March's performance marked a reversal from February, when the G Fund delivered the largest gains at 0.36 percent and the S and I funds were both in the red. January, however, had the S and I funds out in front, in keeping with their high 12-month performance levels.