All six of the newly launched lifecycle L funds—for 2025, 2035, 2045, 2055, 2060 and 2065—debuted in positive territory in July, as each of the TSP’s funds posted gains for the month.
The funds were led by the small company stock S fund and large company stock C fund, up 5.71 and 5.64 percent. The international stock I fund meanwhile gained 2.33 percent, the bond F fund 1.49 percent and the government securities G fund 0.06 percent.
The July returns for the L funds—which meanwhile no longer have a 2020 fund since that has now been merged with the Income fund—were: Income, 1.11; 2025, 2.19; 2030, 2.82; 2035, 2.86; 2040, 3.35; 2045, 3.32; 2050, 3.8; 2055, 4.13; 2060, 4.13; 2065, 4.13. Note: The 2055, 2060 and 2065 funds have almost identical portfolios, with 99 percent total in the three stock-related funds in the same ratios; they differ slightly in how they allocate the other 1 percent between the G and F funds.
Some TSP Investors Have Tried Trading the Pandemic
According to interfund transfer data, TSP investors tried their hand at trading the pandemic. They pulled a ton of money out of the three equity funds in February and March, and put it into the G Fund to the tune of almost $10 billion in February and $15 billion in March. Then, they put a little bit of it back into equities in April.
TSP Accounts Continue Recovery as Some Shift From C to F Fund: Now Over 6 Mil Participants
The TSP in June crossed the 6 million mark in participants while accounts overall continued their recovery from the steep losses of earlier this year. The 6 million total includes more than 3.5 million under FERS, nearly 300,000 under CSRS and the remainder in the uniformed military, according to information presented at this week’s monthly meeting of the governing board.
The TSP, Gold, and the Possibility of a Fiscal Cliff
When the stock market sharply sold off in March, fiscal and monetary policymakers sprung into action. Congress passed somewhere in the ballpark of $2.7 trillion in stimulus, mostly in the form of the CARES Act, while the Federal Reserve initiated quantitative easing to flood the market with liquidity, and to buy many of the Treasury securities that the U.S. government issued to fund its stimulus programs.