C Fund on Top for July; I Fund Ahead for the Year

By on August 3, 2015 in Current Events with 0 Comments

After disappointing returns in June, Thrift Savings Plan (TSP) investors may be feeling better about their TSP investments in July.

The I fund had a significant gain with a 2.08% return. The I fund has the biggest gain for the year-to-date with a return of 8.73%. The C fund, the second largest holding for TSP investors, came out on top for the month with a return of 2.10%. It is ahead 3.39% for the year.

The only fund to suffer a loss last month was the S fund with a small downturn of -0.12%. It is still ahead 4.83% for the year and up 11.28% for the past twelve months.

The biggest holding among TSP investors, the G fund, was up 0.19% for the month and it is up 1.15% for the year.

Very conservative investors may want to also consider the L Income fund for their investment dollars. It comes out ahead of the G fund for the month, the year-to-date and also for the past 12 months. It was up 0.55% in June, it us up 1.95% for the year-to-date and up 3.52% for the past twelve months.

Since its inception in 2006, the Income fund has consistently done better than the G fund finishing ahead of the more popular G fund in eight out of the last nine years.

Here are the results for all of the TSP funds for July, the year-to-date and for the past 12 months:

G Fund F Fund C Fund S Fund I Fund
Month 0.19% 0.74% 2.10% -0.12% 2.08%
YTD 1.15% 0.79% 3.39% 4.83% 8.73%
12 Month 2.09% 3.27% 11.29% 11.28% 0.00%
L Income L 2020 L 2030 L 2040 L 2050
Month 0.55% 1.03% 1.22% 1.33% 1.46%
YTD 1.95% 3.29% 3.89% 4.27% 4.73%
12 Month 3.52% 5.23% 6.14% 6.79% 7.20%

So far in 2015, the S&P 500 index has traded in a very narrow range. (The C fund is based on this S&P index.)

After a big jump in February, the index has traded in a range between the highs and lows of only 4.4%. In 2014 and 2013, the range between the closing low and closing high was 20% and 26.8% respectively. 2015 has been an unusually calm year for stock prices.

TSP Statistics for June

In June, TSP investors flocked to the G fund, moving almost $1.7 billion into this fund. The C fund lost about $628 million transferred from this fund. $470 million was transferred from the S fund and another $445 million was transferred from the I fund. $61 million was transferred from the F fund.

As a result of the decline in stock market prices in June, assets under management at the TSP went down $3.68 billion. The FERS participation rate was unchanged at 88.5%.

© 2016 Ralph R. Smith. All rights reserved. This article may not be reproduced without express written consent from Ralph R. Smith.

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About the Author

Ralph Smith has several decades of experience working with federal human resources issues. He has written extensively on a full range of human resources topics in books and newsletters and is a co-founder of two companies and several newsletters on federal human resources.

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