TSP resets in July after early summer slowdown; board selects new director

After a brief downturn earlier this summer, the Thrift Savings Plan rebounded in July, with all of the funds posting positive returns. All of the TSP funds, with the exception of one outlier, also posted higher returns than they had in June.

The I fund posted the highest monthly return in July, returning to the black at 2.88 percent. This marks the second consecutive month of volatility for the international stocks fund. In June, the I fund had reported one of the biggest losses of all the retirement funds. It remains the strongest performer of 2017 and the past 12 months.

The small-cap stocks S fund was the only fund to post a lower monthly return in July than in June, dipping to 1.11 percent, down from 2.33 percent.

The F fund, the fixed-income index investment fund, reported a modest return of 0.43 percent in July, but stands as the only retirement fund to still have a negative 12-month return at -0.24 percent.

The C fund, which invests in the S&P 500 Index, saw a boost this month, posting a 2.05 percent return for the month. It stands at 11.59 percent for 2017, and 16.06 percent for the past 12 months.

The low-risk G fund remained unchanged a 0.19 percent. It stands at 1.36 percent for 2017, and 2.12 percent for the past 12 months.

All TSP lifecycle funds performed better in July, although some saw greater improvements than others. The L 2050 continued to demonstrate the best return of the bunch at 1.82 percent, more than three times higher than what it posted in June.

Retirement fund announces new director

The TSP’s administrative body, the Federal Retirement Thrift Investment Board, announced Monday that its Acting Executive Director Ravindra Deo will stay on the job as the executive director.

Deo served as the board’s acting executive since May, and had previously served as the board’s acting chief operating officer. He first joined the board in February 2015 as its chief investment officer, and oversaw the re-competition of the agency’s investment consultant contract.

Board Chairman Michael Kennedy said members unanimously chose Deo to head the agency.

“In the end, after evaluating a number of highly capable candidates, the board members believe that Ravi’s exemplary service at the FRTIB and his private sector experience made him the top candidate,” Kennedy said.

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