TSP funds earn modest gains in 2007

The three riskier funds in the Thrift Savings Plan posted losses for December, though all five basic funds made modest gains for all of 2007.

The government securities (G) fund, which is the most reliable, posted the greatest gains last month out of the five basic investment options, rising 0.41 percent. But the fund's 4.87 percent 12-month return remained the lowest in the TSP.

Fixed-income bonds represented in the plan's F Fund earned 0.25 last month. The fund came in second place out of the five basic options for yearlong growth, rising 7.09 percent.

The S Fund, which invests in small- and mid-sized companies by tracking the Dow Jones Wilshire 4500 Index, fell 0.40 percent. The fund made modest gains in 2007, however, coming in at 5.49 percent.

The C Fund, composed of common stocks on the Standard & Poor's 500 Index of the largest domestic companies, experienced losses of 0.66 percent last month. But the fund's 12-month gains were 5.54 percent.

The international investments represented in the I Fund dipped the most last month, falling 2.25 percent. But the fund's 11.43 percent 12-month return remained by far the highest in the plan.

The TSP also has life-cycle options, a blend of the five basic funds that automatically grows more conservative as investors near retirement.

L 2040, intended for employees with a target retirement date around 2040, dropped 0.82 percent; L 2030 fell 0.63 percent; L 2020 lost 0.54 percent; and L 2010 went down 0.13 percent. The L Income Fund, designed for employees with planned retirements in the very near future, experienced gains of 0.07 percent for the month.

All the L funds posted gains for the year. The L 2040 Fund continued to show the most long-term growth, coming in at 7.36 percent for 2007. L 2030 grew 7.14 percent, L 2020 gained 6.87 percent, L 2010 earned 6.40 percent and L Income made 5.56 percent.