Target Date Investing with the Vantagepoint Milestone Funds
Target date investing allows investors to select a single diversified fund that is designed to meet their investment time horizon. Each Milestone Fund invests in professionally selected funds that are believed to be appropriate for the time remaining until the “target retirement date.”
Each Milestone Fund invests in Vantagepoint Funds with each having a different degree of potential risk and reward. This approach provides built-in diversification among the underlying Vantagepoint Funds and asset classes, which can help reduce risk.
The Benefits.
The Milestone Funds offer a potential solution for investors who are looking for an easier way to make retirement investing decisions.
You decide when you want to retire, choose the Milestone Fund closest to that year, and leave the rest to ICMA-RC’s investment professionals.
One Easy Choice.
The Milestone Funds are designed for investors who expect to retire and/or begin withdrawals around the target year in each fund’s name. For example, the 2020 Milestone Fund has a target date of 2020 and is designed for investors who expect to retire and/or begin withdrawals in or within a few years of 2020.
Adjusting the Asset Allocation Mix.
As you move through the significant milestones in your life, your asset allocation should change along with you. That is why we have incorporated ongoing “aging” and “rebalancing” into the design of the Milestone Funds.
The Milestone Funds are reallocated or “aged” to reflect an increasingly conservative asset mix as each fund approaches its target date. In this way, the overall risk is reduced as the time remaining until withdrawals becomes shorter.
In addition to automatic aging, we also rebalance the Milestone Funds. Automatic rebalancing ensures the Milestone Funds’ allocations remain on track.
For more information on the Milestone Funds consult the current Vantagepoint Funds Prospectus or call our Investor Services staff at 1-800-669-7400.
| Information provided is as of September 30, 2008 | ||||||
|---|---|---|---|---|---|---|
| Fund Name |  Ticker Symbol |  Investment Category |  Star Rating (# in Group)† |  Prospectus Link |  Inception Date | |
| Milestone Funds | ||||||
| Vantagepoint Milestone Retirement Income Fund | VPRRX | Target-Date 2000-2014 |  (178 in Grp.) | 1/3/2005 | ||
| Vantagepoint Milestone 2010 Fund | VPRQX | Target-Date 2000-2014 | (178 in Grp.) | 1/3/2005 | ||
| Vantagepoint Milestone 2015 Fund | VPRPX | Target-Date 2015-2029 |  (170 in Grp.) | 1/3/2005 | ||
| Vantagepoint Milestone 2020 Fund | VPROX | Target-Date 2015-2029 | (170 in Grp.) | 1/3/2005 | ||
| Vantagepoint Milestone 2025 Fund | VPRNX | Target-Date 2015-2029 | (170 in Grp.) | 1/3/2005 | ||
| Vantagepoint Milestone 2030 Fund | VPRMX | Target-Date 2030+ | (237 in Grp.) | 1/3/2005 | ||
| Vantagepoint Milestone 2035 Fund | VPRLX | Target-Date 2030+ | (237 in Grp.) | 1/3/2005 | ||
| Vantagepoint Milestone 2040 Fund | VPRKX | Target-Date 2030+ | (237 in Grp.) | 1/3/2005 | ||
An overall rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating Metrics as of the date stated. The risk-adjusted star rating brings both return and risk together into one evaluation. To determine a fund's star rating for a given period (three, five, or ten years), the fund's Morningstar Risk score is subtracted from its Morningstar Return score. The resulting number is plotted along a bell curve to determine the fund's rating for each time period. If the fund scores in the top 10% of its broad ratings group (domestic stock, international stock, taxable bond, or municipal bond), it receives 5 stars (Highest); if it falls in the next 22.5%, it receives 4 stars (Above Average); a place in the middle 35% earns it 3 stars (Neutral or Average); those in the next 22.5% receive 2 stars (Below Average); and the bottom 10% get 1 star (Lowest). The star ratings are recalculated monthly. Past performance is no guarantee of future results.
Data provided by Morningstar, Inc.®All rights reserved. The information contained herein; (1) is proprietary to Morningstar and/or its affiliates; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely. ICMA-RC does not review the Morningstar data and, for mutual fund performance information, please consult both the current Vantagepoint Funds prospectus or other appropriate prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights and investment objectives, risks and performance information prior to investing any money. Past performance does not guarantee future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC.
Please note: A redemption fee may be assessed when you sell shares in a mutual fund. Regardless, all funds are monitored for frequent trading. Please refer to the Fund’s prospectus for guidance on redemption fee and frequent trading terms. Also, refer to ICMA-RC’s Frequent Trading Policy for more information.