TSP shows marginal growth in November returns

Although November growth was small for Thrift Savings Plan’s stock and Lifecycle funds, there was at least one standout.

Pulling ahead of the pack, the small capitalization stock index S fund ended November with the highest monthly returns — 4.54% — the largest month-to-month increase — 2.61% — and the best year-over-year performance from November 2018 — a 2.62% increase.

According to numbers released by the TSP on Monday, the second-best monthly returns for November were in the common stock index investment C fund, which finished at 3.63%.

Next was the L 2050 fund at 2.38%, and then the L 2040 fund at 2.10%. After that came the L 2030 fund with a monthly return of 1.77%, followed by the international stock index I fund with 1.15%.

The L 2020 fund had a monthly return of 0.83%, followed by the L Income fund with 0.71%. And the usually stable government securities investment G fund finished November with a return of 0.14%, while the fixed income investment F fund had the only negative monthly return of -0.05% for November.

TSP returns November 2019, chart

The F fund and  I fund went down from October to November, and the G fund was unchanged. All other funds improved month over month although for the L Income fund the change was marginal — a 0.01% increase.

Compared to November 2018, the G fund and F fund were down while all other funds showed improvement. The L Income and L 2020 funds were tied for lowest year-over-year growth at 0.18%, according to numbers released by the TSP on Monday.

Last month the Federal Retirement Thrift Investment Board voted to move the I fund to a new benchmark despite growing bipartisan congressional opposition. The fund will move to the Morgan Stanley Capital International All Country World Ex-U.S. Investable Market Index (MSCI ACWI Ex-US IMI), which covers 22 developed and 26 emerging markets and consists of large, mid- and small-cap stocks from more than 6,000 companies, including Chinese securities, Federal News Network reported.

The FRTIB first decided back in 2017 it would move the I fund to this emerging markets index, but recent bipartisan congressional opposition had prompted the board to reconsider.

In the end, four out of five board members voted in favor of the move, with only Bill Jasien casting an opposing vote.

Thrift Savings Plan — Nov. 2019 Returns
Fund November Year-to-Date Last 12 Months
G fund 0.14% 2.08% 2.34%
F fund -0.05% 8.76% 10.76%
C fund 3.63% 27.61% 16.09%
S fund 4.54% 25.27% 11.87%
I fund 1.15% 18.63% 12.91%
L Income 0.71% 6.81% 5.40%
L 2020 0.83% 8.44% 6.08%
L 2030 1.77% 15.49% 10.13%
L 2040 2.10% 18.14% 11.52%
L 2050 2.38% 20.41% 12.64%