TSP continues to gain ground in May

The Thrift Savings Plan's five basic funds continued to grow steadily in May, helping to offset losses from earlier in the year.

All TSP funds are now showing growth since the beginning of 2009, although many are still reeling from late 2008 losses.

The I Fund, invested in international companies, had another month of double-digit growth in May, increasing by 13.41 percent. It now boasts a 7.77 percent gain since the beginning of 2009, but still is down 36.12 percent over the past 12 months.

The C Fund, made up of common stocks of large companies on the Standard & Poor's 500 Index, gained 5.6 percent in May, and has grown 3.05 percent since the beginning of the year. During the past 12 months, it has lost 32.5 percent.

The S Fund, which is invested in small- and mid-size companies and tracks the Dow Jones Wilshire 4500 Index, cooled off after double-digit gains in April. In May, it grew 3.97 percent, and it is up 7.07 percent since the beginning of the year. The fund is down 33.92 percent for the past 12 months.

The less risky G and F funds continued to make steady but small gains in May. The G Fund, made up of government securities, rose 0.25 percent, and the fixed incomes bonds in the F Fund increased 0.78 percent. Both have gone up since the beginning of the 2009, and they are the only funds that have increased in value during the past 12 months.

The G Fund gained 1.09 percent since the beginning of the year, and 3.37 percent since May 2008. The F Fund earned 1.4 percent since the beginning of the year, and 5.52 percent over the past 12 months.

All life-cycle funds posted gains during May, and are in the black for 2009 -- but they have not been able to make up for losses they sustained in 2008. The L funds have different mixes of investments that grow less risky as participants near retirement.

The L 2040 Fund stayed at the head of the pack for the life-cycle options, rising 6.19 percent. It has gained 5.05 percent since the beginning of 2009, but has lost 26.74 percent since May 2008, putting it at the largest deficit among the L funds. The L 2030 gained 5.45 percent during May, and 4.72 percent for 2009, but has fallen by 23.01 percent over the past 12 months. The L 2020 gained 4.66 percent in May and 4.25 percent so far this year; it lost 18.76 percent since May 2008. The L 2010 increased 2.28 percent in May and 2.58 percent in 2009, and lost 8.28 percent during the past 12 months.

The L Income Fund, designed to be the most conservative for those who will soon retire, gained 1.7 percent in May and 2.34 percent since the beginning of the year. It has lost 3.66 percent since the same time in 2008.