TSP funds make strong gains in September

The three riskiest funds in the Thrift Savings Plan performed well last month, with international investments posting the largest monthly gain yet this year.

The I Fund, which invests in international stocks, grew 5.36 percent. September's growth brought the fund's 12-month gains to 24.96 percent -- also the highest increase of any fund over that period. This marks a strong reversal from August, when the I Fund was the only one to post losses.

The C Fund, which tracks Standard & Poor's 500 Index, gained 3.76 percent for September, bringing its 12-month increase to 16.53 percent.

The S Fund, which invests in the stocks of small- and mid-sized American companies, grew 2.97 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 C Fund. The S Fund's 12-month gains stood at 18.79 percent.

The fixed-income bonds included in the F Fund grew 0.78 for the month, bringing 12-month earnings to 5.27 percent.

The government securities, or G Fund, which is the most reliable, had minimal gains of 0.41 percent last month for a yearlong 4.93 percent increase.

The TSP's life cycle options, which automatically adjust to a more conservative mix of investments as participants near retirement, also made strong gains last month. Those designed for younger employees earned the most, because they invested more heavily in the I, C and S funds.

The L 2040 fund, designed for participants anticipating retirement around 2040, grew 3.45 percent. The L 2030 Fund gained 3.09 percent; the L 2020 rose 2.68 percent; the L 2010 increased 1.78 percent; and the L Income, designed for employees with retirements in the very near future, gained 1.13 percent.

The L funds with riskier allocations also earned more over 12 months. L 2040 gained 17.14 percent, L 2030 grew 15.63 percent, L 2020 gained 14.02 percent, L 2010 earned 10.82 percent and L Income made 7.71 percent.