Aside from G, all TSP funds drop for June

Only the government securities investment G fund managed to show improved returns over the last month, while all other stock and bond funds in the Thrift Savings Plan finished below their May performance and in the red. The latest returns released by the TSP today show the G fund finished June at 0.29%, compared to 0.21% in May and 0.12% in June 2021, which also made it the only fund to have positive year-over-year returns.

The biggest monthly drop was in the International Stock Index I fund, which fell from 1.19% in May to -8.21% in June. Although the I fund also dropped in June 2021, year over year it was down by 6.77 percentage points.

The second-biggest monthly drop was in the common stock index C fund, which ended June at -6.55% compared to -1.65% in May. The small cap stock index S fund had a return of -7.95% in June compared to -3.53% in May, and the fixed income index F fund posted returns of -1.94% last month compared to 1.13% in May.

Overall, the TSP was down from a year ago and this year, record inflation has affected many sectors of the economy especially energy and food. The Bureau of Labor Statistics reported that from May 2021 to May 2022, the Consumer Price Index for All Urban Consumers increased 8.6%, which is the largest 12-month increase since the period ending December 1981.

Things are not looking much better in the Lifecycle funds, all of which had declining monthly returns in June. The biggest monthly decrease was in the L 2055, 2060 and 2065 funds which ended at -7.25% in June compared to -0.89% in May. The smallest decline was in the L Income fund, which dropped from 0.04% in May to -1.60% last month.

Aside from the L Income fund, Lifecycle funds have remained in the red since April.