TSP funds make small gains in September

The five basic funds making up the Thrift Savings Plan made incremental gains in September.

None lost any ground, but only one gained more than 1 percent. The C Fund, composed of common stocks on the Standard & Poor's 500 Index of the largest domestic companies, earned 2.58 percent last month. That gain brought the C Fund's 12-month earnings to 10.78 percent.

The TSP is a 401(k)-style retirement savings plan for federal employees and some members of the military. At last count, it had $191 billion in its funds.

After the stocks of large domestic companies, the S Fund, which is invested in small- and mid-sized American companies, was the next highest earner. The S Fund gained 0.88 percent in September for a 12-month gain of 8.77 percent.

The F Fund, invested in fixed-income bonds, earned just less, at 0.82 percent. For the year, the F Fund lagged behind other investment options, with the lowest 12-month earnings at 3.68 percent.

The TSP's most popular investment, the G Fund, which is made up short-term Treasury securities specially issued to provide a higher return than inflation without any serious risk from market fluctuations, gained 0.35 percent last month. That brought the fund to a 4.90 percent 12-month total.

And finally, the international stocks that make up the I Fund, and have been the star performer in the TSP, earned the least last month, at 0.15 percent. Still, the I Fund had the highest 12-month earnings by a stretch at 19.23 percent.

TSP participants also can invest in a mix of the five underlying funds, called the life-cycle funds. This option automatically shifts participants' money from riskier to more conservative allocations as they age. These funds, too, made incremental gains, with those geared toward younger, more aggressive investors earning slightly more.

L 2040, intended for employees with a target retirement date around the year 2040, gained 1.41 percent last month. The L 2030 Fund earned 1.33 percent; the L 2020 gained 1.17 percent; the L 2010 increased 1.01 percent; and the L Income, designed for employees with planned retirements in the very near future, grew 0.73 percent.

Over the last 12 months, the L Funds with riskier allocations also earned more. L 2040 gained 11.52 percent, L 2030 grew 10.72 percent, L 2020 gained 10.07 percent, L 2010 earned 8.72 percent and L Income made 6.50 percent.