TSP's International Funds Stay Ahead of the Pack

January 5, 2007 (PLANSPONSOR.com) - The international stocks in the federal Thrift Savings Plan (TSP) continued to bring in the most robust earnings of all of the five basic funds in the plan, posting a 3.11% increase for December.

The other four investment options included in the 401(k)-style federal employee retirement savings plan performance showed lesser returns in December, with only one slipping into losses, according to GovExec.com.

The international fund performance was followed by the C fund, which tracks the Standard & Poor 500 Index in large and medium-sized domestic companies. The C fund gained a modest 1.42% last month, making the gain for the year 15.79%.

The fund that tracks mid-sized companies (S Fund) lagged behind the C fund, posting returns of 0.11%, and the G Fund – made up of government securities – earned 0.34% returns.

The F Fund, which invests in bonds, lost 0.54%, but ended up with gains of 4.4% for the year.

Lifecycle Performance

Of the TSP’s five lifecycle funds, the one designed for those workers planning to retire in 2040 performed the best. The earnings for each fund are as follows:

  • The L2040 fund earned 1.31% in December and 16.53% for 2006;
  • The L2030 increased 1.18% in December and 15% for the year;
  • The L2020 earned 1.17% for December and 13.72% for the year;
  • The L2010 earned 0.90% for December and 11.09% for the year;
  • The L Income for employees planning to retire in the near future earned 0.63% and 7.59% for the year.