Last Month, Thrift Saving Plan TSP funds (S, I, C, F, G) showed a significant decrease in their monthly returns. Even the G Fund, considered as the steady fund of all, could not safeguard itself from the impact of the coronavirus pandemic across the globe.
According to Don Fletcher, reports from the sources, employees actively made more withdrawals last month as compared to the same month, last year, and last months of the running year despite an increase in on-going inter-fund transfers.
From the data, it is reported that participants transferred $21 billion into the government securities investment fund that is the G fund between February 24 and March 17. Surprisingly, this is the smallest month-over-month drop in monthly returns—from 0.13% to 0.11% or -0.02%.
On Wednesday, TSP released exact numbers that showed the largest drop from February month was seen in the small-capitalization stock index S fund. These funds dropped from -8.01% to -21.40% in March, or we can say it showed a difference of -13.39%. The second-largest drop was seen in the international stock index I fund that dropped from -7.74% in February to -13.87% in March or felt a change of -6.13%.
According to Don Fletcher, Likewise, the common stock index investment C fund dropped by 4.16%, from -8.24% in February to -12.40% last month. The fixed-income investment F fund also declined by 2.46% from 1.82% in February to -0.64% in March.
Lifecycle funds hit in March, the largest hit seen in the L 2050, which dropped from -6.39% in February to -11.90% last month—a drop of -5.51%. The L Income fund, on the other hand, dropped by just 1.57% month over month, from -1.52% in February to -3.09% in March.
According to Don Fletcher, Further reports from close sources state that seeing the decline in the current stock market, the Federal Retirement Thrift Investment Board is planning to add a new Lifecycle Fund this summer. These funds will not be in 10-year increments like the existing funds and will be in five-year increments and would have L 2025, L 2035, L 2045, L 2055, L 2060, and L 2065 funds as well.
When checked year over year, the treasury fund, G fund had the smallest drop in March TSP returns, -0.12%, while the S fund dropped more, -20.37%.
