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

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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%.

© 2017 Ralph R. Smith. All rights reserved. This article may not be reproduced without express written consent from Ralph R. Smith.


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. Follow Ralph on Twitter: @RalphSmith47