TSP funds continue to slide in February

The Thrift Savings Plan weathered another difficult month in February, with every fund except the government securities option losing ground.

The C Fund, composed of common stocks on the Standard & Poor's 500 Index of the largest domestic companies, took the hardest hit, falling 10.64 percent. The fund posted 12-month losses of 43.29 percent.

The international (I) fund, which invests in European, Asian and Australian companies, was close behind the C Fund in February, falling 10.23 percent. The fund lost 49.91 percent for the year.

The S Fund, which invests in small- and mid-size companies by tracking the Dow Jones Wilshire 4500 Index, dropped 10.22 percent in February. It declined a total of 44.62 percent during the past 12 months.

The F Fund, which invests in fixed-income bonds, reported minimal losses for February, falling 0.39 percent. The fund posted long-term gains, however, earning 2.17 percent in 12 months.

The G Fund -- short-term Treasury securities specially issued to provide a higher return than inflation without any serious risk from market fluctuations -- grew 0.21 percent in February. Its 12-month gain was 3.57 percent.

The TSP also has life-cycle (L) options, which are blends of the five basic funds that automatically grow more conservative as investors near retirement. All five L funds experienced losses for February.

L 2040, intended for employees with a target retirement date around the year 2040, dropped 8.52 percent; L 2030 fell 7.47 percent; L 2020 lost 6.22 percent; and L 2010 tumbled 2.95 percent. The L Income Fund, designed for employees who plan to retire in the very near future, lost 1.98 percent in February.

All the L funds also posted losses during the past year. The L 2040 Fund had the steepest drop, plunging 37.77 percent during 12 months. L 2030 fell 33.3 percent during that time; L 2020 declined 27.94 percent, L 2010 lost 13.13 percent and L Income slid 7.49 percent.