To seek current income and capital appreciation.
Principal Investment Strategies
The Fund invests, under normal circumstances, at least 80% of its net assets in high yield fixed income securities and other instruments that are rated below investment grade. For purposes of this 80% policy, the Fund considers a below investment grade rating to be a rating that is below the four highest grades by Standard & Poor’s, Moody’s Investors Service, Inc., or Fitch Ratings. Below investment grade securities are commonly referred to as “junk bonds.” These investments may include the following:
• U.S. or foreign corporate fixed income securities;
• U.S. or foreign floating rate loans;
• U.S. or foreign mortgage-backed securities;
• U.S. or foreign asset-backed securities;
• Municipal securities;
• Fixed income securities issued or guaranteed by foreign governments or their agencies or instrumentalities, or supranational organizations; and
• U.S. or foreign convertible fixed income securities.
The Fund’s fixed income investments may be of any maturity.
The Fund’s investments in floating rate loans may not exceed 30% of the Fund’s net assets.
The Fund also may invest up to 20% of its net assets in:
• Securities and instruments of any type that are not considered to be below investment grade; and
• Unrated securities and instruments of the types listed above that the Fund’s subadviser(s) determines are below investment grade in quality.
The Fund may invest no more than 50% of its net assets in foreign securities or other foreign instruments. In addition, the Fund may invest no more than 30% of its net assets in securities or other instruments of issuers located in emerging market countries (these investments are also subject to the 50% limit above). The Fund primarily invests in U.S. dollar denominated instruments.
The Fund also may invest up to 20% of its net assets in derivative instruments. The Fund’s subadviser may use forwards, futures, options, swap agreements, and swaptions to manage risk or to obtain or adjust investment exposure. The Fund’s investments in credit default swaps, if any, will be less than 5% of the Fund’s net assets.
The Fund is available for investment only by the Vantagepoint Model Portfolio Funds and Vantagepoint Milestone Funds.
Principal Investment Risks
There is no guarantee that the Fund will achieve its investment objective.
You may lose money by investing in the Fund.
The Fund’s principal investment risks include High Yield Securities Risk, Credit Risk, Interest Rate Risk, Call Risk, Floating Rate Loans Risk, Mortgage-Backed Securities Risk, Asset-Backed Securities Risk, Prepayment and Extension Risk, U.S. Government Agency Securities Risk, Municipal Securities Risk, Foreign Securities Risk, Foreign Government Securities Risk, Emerging Markets Securities Risk, Foreign Currency Risk, Convertible Securities Risk, Derivative Instruments Risk, Liquidity Risk, Multi-Manager Risk.
Please see the Risk Glossary for additional information about the Fund’s risks.
Performance & Expenses
|Fund/Benchmark Name||Qtr||YTD||1-Yr||3-Yr||5-Yr||10-Yr||Since Inception|
|Vantagepoint High Yield T||4.97%||13.08%||10.38%||N/A||N/A||N/A||1.85%|
|Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Bond Indexa,b||5.55%||15.11%||12.74%||5.30%||8.34%||7.80%||N/A|
|Morningstar High Yield Bonda,c||4.70%||11.45%||9.13%||3.76%||7.05%||6.15%||N/A|
Fund past performance, as shown, is no guarantee of how the Fund will perform in the future. The performance shown has been annualized for periods greater than one year. 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. For current performance, visit www.icmarc.org.
Fund performance is shown comparing it to a "benchmark" which may be a (i) broad-based securities market index (ii) a group of mutual funds with similar investment objectives, or (iii) a short term government backed debt obligation such as a U.S. Treasury Bill. An index is not available for direct investment, is unmanaged, and does not reflect the costs of portfolio management or trading. A fund's portfolio may differ from the securities held in an index.
|Total annual fund operating expenses||0.81%|
|Fee waiver and/or expense reimbursement||0.08%|
A contractual expense waiver exists for this fund and will expire on 04-30-2017.
a. Certain information including, but not limited to, benchmark performance or other performance and/or fee information, is provided by Morningstar, Inc., © 2016 All rights reserved. This information: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar and/or its content providers are responsible for any damages or losses arising from any use of information. Morningstar is a registered trademark of Morningstar, Inc.
b. The Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Bond Index is an issuer-constrained version of the Bloomberg Barclays U.S. Corporate High Yield Index that measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. The Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Bond Index limits the exposure of each issuer to 2% of the total market value and redistributes any excess market value index-wide on a pro-rata basis.
c. The Fund’s Morningstar Category Average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on a fund’s historical portfolio holdings.
|Record Date||Ex/Payable Date||Income/Capital Gains Paid Per Share|
|Sep 23, 2016||Sep 23, 2016||$0.120434000|
|Aug 31, 2016||Aug 31, 2016||$0.047685000|
|Jul 29, 2016||Jul 29, 2016||$0.071562000|
|Jun 30, 2016||Jun 30, 2016||$0.039277000|
|May 31, 2016||May 31, 2016||$0.048871000|
|Apr 29, 2016||Apr 29, 2016||$0.040603000|
|Mar 31, 2016||Mar 31, 2016||$0.044531000|
|Feb 29, 2016||Feb 29, 2016||$0.044435000|
|Jan 29, 2016||Jan 29, 2016||$0.037679000|
|Dec 31, 2015||Dec 31, 2015||$0.057700000|
|Nov 30, 2015||Nov 30, 2015||$0.042651000|
|Oct 30, 2015||Oct 30, 2015||$0.041607000|
|Sep 30, 2015||Sep 30, 2015||$0.051181000|
|Aug 31, 2015||Aug 31, 2015||$0.043469000|
|Jul 31, 2015||Jul 31, 2015||$0.043687000|
|Jun 30, 2015||Jun 30, 2015||$0.044115000|
|May 29, 2015||May 29, 2015||$0.042144000|
|Apr 30, 2015||Apr 30, 2015||$0.039151000|
|Fixed Income Stylebox|
|Type of Asset||Percent|
Due to rounding, percentages shown may not add up to 100%.
Due to rounding, percentages shown may not add up to 100%.
|Cash & Equivalents||-7.6%|
Exposure reflects fixed income securities only and will sum to the fixed income exposure of the fund.
Due to rounding, percentages shown may not add up to 100%. Exposure reflects fixed income securities only.
The source for this information is Morningstar, Inc. Copyright © 2016 Morningstar, Inc.® All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar, Inc. is a global investment research firm that is not affiliated with ICMA-RC. ICMA-RC does not independently verify Morningstar data.
Morningstar places funds in certain categories based on the fund's historical portfolio holdings. Placement of a fund in a particular Morningstar category does not mean that the fund will remain in that category or that it will invest primarily in securities consistent with its Morningstar category. A fund's investment strategy and portfolio holdings are governed by its prospectus, guidelines or other governing documents, not its Morningstar category.