Categories: Fedweek

TSP Returns Mixed; G Fund Tapped Again

TSP funds yielded mixed returns in May, with the bond F fund and the international stock I fund posting losses, of 1.78 and 3.12 percent, while the small company stock S fund rose 2.71 percent, the large company stock C fund gained 2.34 percent and the government securities G fund rose 0.12 percent. The lifecycle L fund returns were: Income, 0.19; 2020, 0.33; 2030, 0.43; 2040, 0.51; 2050, 0.53. For year-to-date and last-12-month returns, go to www.fedweek.com. Meanwhile, the Treasury has once again resorted to a financial maneuver it has used many times in the past when the government has hit its debt ceiling, suspending issuance of new securities in the G fund. In such “disinvestment” periods, G fund balances continue to accrue interest, loans and withdrawals are unaffected, and when the ceiling is raised the securities are reconstructed as if nothing had happened. However, the maneuver nonetheless angers many investors since TSP funds are personal money, not government trust funds.

 

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