TSP makes a comeback in June returns

After disappointing returns in May, the Thrift Savings Plan appeared to flip during June. Monthly returns released Monday showed positive performance in all but the G and F funds, a reversal from May.

Nevertheless, all funds still finished in the black. It also precedes more withdrawal options planned to take effect Sept. 15. These would include the option to take monthly, quarterly and annual installment payments; the ability to take unlimited post-separation, partial withdrawals; and the ability to take partial withdrawals and installment payments simultaneously, among others.

While the government securities investment G fund and the fixed income investment F fund were the only funds to show positive returns in May of this year, last month they declined — by 0.02% and 0.51%, respectively.

June’s biggest month-over-month improvement was the small capitalization stock index S fund, which rose from in 6.80% to 13.79%. In second place was the common stock index investment C fund, which finished at 13.40% percent compared to 7.04% in May.

The international stock index I fund also performed positively, finishing at 5.94% in June compared to -4.69% in May, according to Monday’s returns.

TSP, June 2019, graph, chart

All five Lifecycle funds performed in the black last month, according to Monday’s returns. The highest return was the L 2050 fund — 5.52% in June versus -4.67% in May — and the lowest return was the L Income fund — 1.57% versus -0.98% in May.

The L 2020, 2030 and 2040 funds rose month-over-month by 3.46%, 7.47% and 8.93%, respectively.

But TSP participants’ access will change next year if the FRTIB follows through with plans to adjust to five-year Lifecycle fund increments, as it announced last month. The board said the goal is to give participants a more targeted window of time to match their intended retirement date with their asset allocation, Federal News Network reported.

Thrift Savings Plan — June 2019 Returns
Fund June Year-to-Date Last 12 Months
G fund 0.19% 1.28% 2.82%
F fund 1.26% 6.11% 7.96%
C fund 7.04% 18.53% 10.40%
S fund 6.80% 19.48% 2.11%
I fund 5.94% 14.42% 1.53%
L Income 1.57% 4.70% 4.08%
L 2020 2.04% 6.08% 4.30%
L 2030 4.11% 11.03% 5.52%
L 2040 4.87% 12.96% 5.86%
L 2050 5.52% 14.60% 6.07%