TSP Fund Growth Wanes in February

March 7, 2006 (PLANSPONSOR.com) - Growth of the funds in the federal employees' Thrift Savings Plan (TSP) waned in February following their strong gains in January.

Govexec.com reports that the largest gain in February was in the conservative government securities (G) fund, which posted a 0.36% return.   The G fund has posted a gain of 4.46% over the past 12 months.

The S Fund, which invests in the stocks of small- and mid-sized American companies, lost 0.98%, and the international (I) fund lost 0.27%, according to the govexec.com report.    However, for the past 12 months these funds were the biggest earners, with gains of 18.39% and 17.48%, respectively.   In January, the I fund was boosted by participant transfers of $753 million (See  TSP Participants Chase International Returns).

The C Fund, which invests in the stocks of the 500 largest domestic companies increased 0.22% in February, bringing its 12-month growth to 8.4%.   The fixed-income bonds (F) fund, gained 0.28% last month, and 2.78% for the 12 month period.

As a result of the slowed growth of the stand-alone funds, the five lifecycle (L) funds, which are composites of the stand-alone funds, had poor performance in February as well.   The L Income fund, designed for employees expecting to retire in the next few years and most reliant on the G fund, posted the biggest gain at 0.25%. The L 2010 fund showed 0.15% growth, while the L 2020 fund gained 0.07%, the L 2030 fund stayed steady and the L 2040 fund lost 0.07%.   February was the first month since the L funds’ inception last summer that the L 2040 has not been the highest performing fund.