TSP funds flourish in February

After a January slump, all 10 funds in the Thrift Savings Plan rebounded in February.

The S Fund, which invests in small and mid-size companies and tracks the Dow Jones Wilshire 4500 Index, after falling 2.43 percent in January, experienced the biggest gains of all the funds last month, growing 4.89 percent. The fund's value has increased 2.35 percent since the beginning of 2010, and has climbed 67.44 percent during the past 12 months.

The C Fund, invested in common stocks of large companies on the Standard & Poor's 500 Index, rose 3.11 percent in February. It was not enough to compensate for its January losses, however; the fund's value has fallen 0.6 percent during the past two months, though it has increased 53.84 percent during the past year.

Other funds in the plan posted modest gains. The F Fund, which invests in fixed-income bonds, rose 0.38 percent in February; the G -- government securities -- Fund gained 0.24 percent, while the I Fund, which invests in overseas companies, rose 0.06 percent. The F Fund's value is up 1.93 percent in 2010 and 9.4 percent during the past 12 months. The G Fund, the TSP's most stable offering, has increased 0.53 percent during the past 2 months, and 3.12 percent during the past year. The I Fund has decreased 5.11 percent so far in 2010, but has climbed 56.07 percent during the past 12 months.

All the life-cycle funds, designed to shift participants from riskier to more cautious investment portfolios as they approach retirement, grew in February; three of the five funds, however, have lost value so far in 2010.

The L 2040 Fund grew 2.18 percent in February; the L 2030 Fund rose 1.94 percent in that same period; the L 2020 Fund increased 1.61 percent; the L 2010 Fund grew 0.81 percent; and the L Income Fund gained 0.74 percent last month. In 2010 so far, the L 2040 Fund has decreased 0.77 percent; the L 2030 Fund has fallen 0.6 percent; the L 2020 Fund has lost 0.45 percent; the L 2010 Fund edged up 0.23 percent; and the L Income Fund has grown 0.29 percent.

All the life-cycle funds have posted positive returns during the past 12 months. The L 2040 Fund is up 47.08 percent; the L 2030 Fund rose 41 percent; the L 2020 Fund has gained 33.95 percent; the L 2010 Fund has increased 16.67 percent; and the L Income Fund has grown 13.05 percent during that time.