TSP is back in black

The Thrift Savings Plan had a decent August, with every fund posting a positive return that month.

The S Fund, which is invested in small and midsize companies and tracks the Dow Jones Wilshire 4500 Index, saw an increase of 3.57 percent in August, the biggest boost of all the funds and a marked improvement over its 0.62 percent loss in July. The fund is up 13.87 percent during the past 12 months.

International stocks in the I Fund also turned in a solid performance in August, edging up 3.29 percent while the C Fund, invested in common stocks on Standard & Poor’s 500 Index, gained 2.25 percent. During the past year, the C Fund has grown 18.14 percent, but the I Fund has made much slower gains, increasing only 0.36 percent. Still, the I Fund has climbed 7.25 percent since the beginning of 2012.

The government securities (G) fund grew 0.11 percent in August, down slightly from its 0.12 percent increase in July. Fixed income bonds in the F Fund had the weakest performance in August, eking up just 0.07 percent. Since January, the G Fund has increased 1.02 percent, while the F Fund has gained 3.9 percent.

TSP’s five life-cycle funds, designed to move investors to less risky portfolios as they near retirement, also grew in August after positive performances in July. L Income, for employees who have reached their target retirement date and started withdrawing money, rose 0.63 percent last month; L 2020 gained 1.57 percent; L 2030 increased 1.94 percent; L 2040 was up 2.23 percent; and L 2050 climbed 2.51 percent.

The increases for the life-cycle funds in August helped boost the portfolio’s overall performance since January. L Income is up 3.39 percent since the beginning of 2012; L 2020 has increased 7.14 percent; L 2030 has grown 8.58 percent; L 2040 has climbed 9.66 percent; and L 2050 has gained 10.59 percent.

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