New TSP Lifecycle funds finish first month in black as downward trend mostly reverses

The six new Thrift Savings Plan Lifecycle funds, which began July 1, finished their first month in the black. In fact, every TSP fund, including the original L funds and all the stock indexes, posted positive returns in July, though none were particularly exceptional.

The international stock index I fund was the only one to post lower returns in July than in June, dropping from 3.44% to 2.33%. Meanwhile, the reliable Treasury securities-backed G fund posted 0.06% returns for the third month in a row.

The common stock index investment C fund showed the most growth among the index funds, rising from 1.99% to 5.64%. The small capitalization stock index S fund posted the highest return for the fourth month in a row at 5.71%, though not much of an increase from June’s 4.00%.

The fixed income investment F fund climbed from 0.63% to 1.49%.

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The Lifecycle funds ranged from 1.11% for the L Income, which absorbed the L 2020 fund last month, to 4.13% for the L 2055, 2060, and 2065 funds.

With the exception of the L Income fund, all of the year-to-date returns for the preexisting L funds remained in the negatives due to a dismal first quarter that they have yet to fully recover from. The index funds’ year-to-date returns are mixed, with G, F and C in the black, while the S and I funds have yet to recover.

Thrift Savings Plan — July2020 Returns
Fund July Year-to-Date Last 12 Months
G fund 0.06% 0.65% 1.42%
F fund 1.49% 7.66% 10.03%
C fund 5.64% 2.31% 11.86%
S fund 5.71% -0.47% 4.88%
I fund 2.33% -9.01% -0.53%
L Income 1.11% 0.87% 3.46%
L 2025 2.19% n/a n/a
L 2030 2.82% -0.06% 5.62%
L 2035 2.86% n/a n/a
L 2040 3.35% -0.41% 6.17%
L 2045 3.32% n/a n/a
L 2050 3.80% -0.78% 6.54%
L 2055 4.13% n/a n/a
L 2060 4.13% n/a n/a
L 2065 4.13% n/a n/a