Aside from a small amount of token resistance offered by the G Fund, other TSP funds ended the month of August with a net loss.
It was the crash in the Chinese stock markets in the latter half of the month that triggered the drop in the U.S. and global markets, with the linked TSP funds haplessly following the slide, and unable to recover lost ground in time before the end of the month.
The crash drove more money into bonds, reflecting the gain in the G fund that is invested into U.S. treasury bonds. The G Fund was up 0.18% for the month, up 1.33% year-to-date, and up 2.07% for the last 12 months. That’s relatively impressive and steady considering the series of global economic crisis that the stock markets have had to weather, but the gains are nothing to write home about.
Even the fixed-income bonds the F Fund is invested in could not save it from the slide, and the F Fund ended August with a 0.11% loss. It’s still up 0.68% for the year to date, and up 2.01% for the last 12 months.
China Stock Crash Drives TSP Funds Into the Red
The C, S and I Funds, tied to the stock markets, ended August deeply in the red thanks to the stock crash in China. The S Fund dropped 5.80% for the month, wiping out the gains it provided to investors earlier this year and in the past 12 months. The S Fund is now down 1.24% for the year to date, and down 0.15% for the past 12 months.
The C Fund dropped 6.03% in August, and is now down 2.84% for the year to date. It’s still holding on to a small 0.55% gain for the past 12 months.
The biggest casualty of the China crash was the I Fund, which is invested in international stocks. The I Fund ended August down 7.36%, and it’s not down 7.23% for the past 12 months. It’s still holding on to a small 0.73% gain for the year to date.
All the L Funds, which are a mix of the other TSP Funds, likewise ended the month of August with a net loss.