Fund Facts  

Inception Date: Oct 11, 2013
CUSIP: 92210F414
Morningstar Category:Target-Date 2040

Documents for Fund or Underlying Fund(s)  

Description

Objective  

High total return consistent with the fund’s current asset allocation.

Principal Investment Strategies  

The Fund invests substantially all of its assets in a single underlying VT III Vantagepoint Fund, which invests in a combination of other VT III Vantagepoint Funds and one or more third party exchange-traded funds (“ETFs”). The underlying fund uses an asset allocation strategy designed for investors who expect to begin making withdrawals from their investment, typically at or after retirement (assumed to occur at age 60), in or around the year stated in the Fund’s name. As time elapses, the underlying fund’s allocation to equity and multi-strategy investments decreases and its allocation to fixed income investments increases such that the asset allocation becomes more conservative over time until it reaches a final constant asset allocation approximately ten years after the year in its name. The underlying fund invests in a combination of equity, fixed income, and multi-strategy investments that its investment adviser believes to be appropriate.

Fixed Income Funds
Fund
VT III Vantagepoint Core Bond Index Fund
VT III Vantagepoint High Yield Fund

Equity Funds
Fund
VT III Vantagepoint Equity Income Fund
VT III Vantagepoint Growth & Income Fund
VT III Vantagepoint Growth Fund
VT III Vantagepoint Select Value Fund
VT III Vantagepoint Mid/Small Company Index Fund
VT III Vantagepoint Aggressive Opportunities Fund
VT III Vantagepoint Discovery Fund
VT III Vantagepoint International Fund
VT III Vantagepoint Emerging Markets Fund
Third Party Emerging Markets ETF

Multi-Strategy Fund
Fund
VT III Vantagepoint Diversifying Strategies Fund


 

Target Date Funds: The VT Vantagepoint Milestone Funds are target date funds. Each invests substantially all of its assets in a single VT III Vantagepoint Milestone Fund (“Milestone Fund”) that shares its name and investment objective. In turn, each underlying Milestone Fund is a “fund of funds” that invests substantially all of its assets in other VT III Vantagepoint Funds and one or more third party ETFs. By investing in this way, each Milestone Fund is exposed to the risks as well as the potential rewards of its underlying funds and of the portfolio holdings and strategies of those funds. The targeted allocation of each underlying Milestone Fund’s assets among underlying funds and the asset classes they represent is determined by ICMA-RC, the investment adviser to the VT III Vantagepoint Funds. Over time, ICMA-RC will adjust the asset allocation of each “dated” Milestone Fund to seek to become more conservative as the year designated in its name approaches and for approximately 10 years beyond the designated year. This is intended to reduce investment risk as investors move toward and into retirement. However, there is no guarantee that this goal will be achieved and investors may lose money investing in the Milestone Funds. Ten years after the date in the Milestone Fund’s name, it will reach its “landing point” and its target asset allocation becomes constant. It is expected that when a Milestone Fund reaches its “landing point” it will merge with the Milestone Retirement Income Fund.

The asset allocation changes that occur over time as depicted in the Glide Path below are referred to as “neutral targets” because they do not reflect decisions that may be made by ICMA-RC to overweight or underweight a particular asset class based on market or operational factors. The neutral targets also do not reflect performance differences between the Fund’s asset allocations that will cause temporary deviations from the neutral targets. The actual asset class allocation of the Fund may vary from the neutral target by as much as five percentage points as a result of ICMA-RC’s allocation decisions, performance differences between asset classes of the Fund, or some combination thereof.

Glide Chart

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 Asset Allocation Risk, Fund of Funds Risk, ETF Risks, Stock Market Risk, Foreign Securities Risk, Emerging Markets Securities Risk, High Yield Securities Risk, Small-Cap Securities Risk, Mid-Cap Securities Risk, Equity Income/Interest Rate Risk, Interest Rate Risk, Credit Risk, Asset-Backed Securities Risk, Convertible Securities Risk, Derivative Instruments Risk, Indexing Risk, Large Investor Risk.
Please see the Risk Glossary for additional information about the Fund’s risks.

 

Performance & Expenses

Standard Performance As of Jun 30, 2017
Fund/Benchmark Name QtrYTD1-Yr3-Yr5-Yr10-YrSince Inception
VT Vantagepoint Milestone 2040   3.59%9.41%16.40%4.86%10.85%5.29%N/A
S&P 500 Indexa,b3.09%9.34%17.90%9.61%14.63%7.18%N/A
Custom Benchmarkc3.27%8.73%16.62%6.75%12.07%6.39%N/A
Morningstar Target-Date 2040b,d3.47%9.23%15.09%4.88%9.50%4.26%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.

Performance information for this class prior to its inception date is hypothetical. It is the performance of the Fund adjusted to reflect the estimated fees and expenses of this class.

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 Expenses
Total Expensese0.77%

 

a. The S&P 500 Index consists of 500 companies representing larger capitalization stocks traded in the U.S.

b. Certain information including, but not limited to, benchmark performance or other performance and/or fee information, is provided by Morningstar, Inc., © 2017 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.

c. The custom benchmark is comprised of the BofA Merrill Lynch 1-3 Year US Corporate & Government Index, Bloomberg Barclays U.S. Aggregate Bond Index, S&P 500 Index, Russell 2000® Index, and MSCI ACWI ex USA Index (Net) in weighted percentages that correspond to the historical target allocations for the asset classes these indexes represent.

d. 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.

e. VantageTrust Funds invest either in collective investment funds or underlying registered funds. Please refer to the underlying fund's disclosure documents for additional information on fund fees and expenses.

Morningstar Information

Morningstar RatingTM   As of Jun 30, 2017
Period Stars Category Size
Overall 4 Stars184
3-Year 2 Stars184
5-Year 4 Stars148
10-Year 4 Stars84

The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange–traded funds, closed–end funds, and separate accounts) with at least a three–year history. Exchange–traded funds and open–ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk–Adjusted Return measure that accounts for variation in a managed product′s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three–, five–, and 10–year (if applicable) Morningstar Rating metrics. The weights are: 100% three–year rating for 36–59 months of total returns, 60% five–year rating⁄40% three–year rating for 60–119 months of total returns, and 50% 10–year rating⁄30% five–year rating⁄20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Morningstar Stylebox As of Jun 30, 2017
Equity Stylebox Fixed Income Stylebox
Large BlendMedium Limited
Allocation of Assets As of May 31, 2017
Type of Asset Percent
Equity82%
Fixed Income25%
Cash/Other-7%

Due to rounding, percentages shown may not add up to 100%.

 
 

Statistics

Portfolio Statistics As of Jun 30, 2017
Statistic3-Year5-Year
Beta0.991.02
Alpha0.000.16
Standard Deviation9.519.01
 
 

Underlying Fund Characteristics

Allocation of Assets As of May 31, 2017
Asset ClassPercent
Domestic Stock58.1%
Foreign Stock23.7%
Domestic Bond17.0%
Foreign Bond3.6%
Preferred0.3%
Convertible4.4%
Cash-7.2%
Other0.2%

Due to rounding, percentages shown may not add up to 100%.

 
Fixed Income Sector As of May 31, 2017
SectorPercent
Corporate15.4%
Government6.0%
Securitized3.8%
Municipal0.0%
Derivative-0.1%
Cash & Equivalents-7.2%

Exposure reflects fixed income securities only and will sum to the fixed income exposure of the fund.

 
Credit Quality As of May 31, 2017
Quality LevelPercent
AAA43.2%
AA6.3%
A15.7%
BBB25.4%
BB4.3%
B3.7%
Below B1.3%
Not Rated0.2%

Due to rounding, percentages shown may not add up to 100%. Exposure reflects fixed income securities only.

 
Top Ten Holdings As of Jun 30, 2017
Holding NamePercent
VT III VANTAGEPOINT EQUITY INCOME FUND19.1%
VT III VANTAGEPOINT INTERNATIONAL FUND18.1%
VT III VANTAGEPOINT GROWTH & INCOME FUND14.3%
VT III VANTAGEPOINT GROWTH FUND13.0%
VT III VANTAGEPOINT DIVERSIFYING STRATEGIES FUND13.0%
VT III VANTAGEPOINT MID/SMALL COMPANY INDEX FUND7.6%
VT III VANTAGEPOINT CORE BOND INDEX FUND7.0%
VANGUARD FTSE EMERGING MARKETS ETF3.0%
VT III VANTAGEPOINT HIGH YIELD FUND1.7%
VT III VANTAGEPOINT SELECT VALUE FUND0.9%
All Holdings As of Jun 30, 2017
Exchange-Traded Funds
Holding NameMarket Value
VANGUARD FTSE EMERGING MARKETS ETF$13,892,408
 
Collective Trusts/Mutual Funds
Holding NameMarket Value
VT III VANTAGEPOINT EQUITY INCOME FUND$89,202,249
VT III VANTAGEPOINT INTERNATIONAL FUND$84,378,367
VT III VANTAGEPOINT GROWTH & INCOME FUND$66,437,027
VT III VANTAGEPOINT GROWTH FUND$60,532,285
VT III VANTAGEPOINT DIVERSIFYING STRATEGIES FUND$60,420,767
VT III VANTAGEPOINT MID/SMALL COMPANY INDEX FUND$35,610,238
VT III VANTAGEPOINT CORE BOND INDEX FUND$32,708,700
VT III VANTAGEPOINT HIGH YIELD FUND$7,802,523
VT III VANTAGEPOINT SELECT VALUE FUND$4,328,572
VT III VANTAGEPOINT DISCOVERY FUND$4,317,507
VT III VANTAGEPOINT AGGRESSIVE OPPORTUNITIES FUND$4,297,867
VT III VANTAGEPOINT EMERGING MARKETS FUND$2,092,292
 
Short-Term/Cash
Holding NameMarket Value
FIDELITY INSTITUTIONAL MONEY MARKET$363,166
BLACKROCK TEMP FUND$149,107
 
Other
Holding NameMarket Value
USD$-214,059
All Holdings As of May 31, 2017
Exchange-Traded Funds
Holding NameMarket Value
VANGUARD FTSE EMERGING MARKETS ETF$15,100,281
 
Collective Trusts/Mutual Funds
Holding NameMarket Value
VT III VANTAGEPOINT EQUITY INCOME FUND$87,884,603
VT III VANTAGEPOINT INTERNATIONAL FUND$84,720,917
VT III VANTAGEPOINT GROWTH & INCOME FUND$65,827,130
VT III VANTAGEPOINT GROWTH FUND$61,657,728
VT III VANTAGEPOINT DIVERSIFYING STRATEGIES FUND$59,278,945
VT III VANTAGEPOINT MID/SMALL COMPANY INDEX FUND$34,890,031
VT III VANTAGEPOINT CORE BOND INDEX FUND$29,796,845
VT III VANTAGEPOINT HIGH YIELD FUND$7,297,525
VT III VANTAGEPOINT AGGRESSIVE OPPORTUNITIES FUND$4,265,817
VT III VANTAGEPOINT SELECT VALUE FUND$4,253,141
VT III VANTAGEPOINT DISCOVERY FUND$4,219,321
 
Short-Term/Cash
Holding NameMarket Value
BLACKROCK TEMP FUND$137,405
FIDELITY INSTITUTIONAL MONEY MARKET$137,405
All Holdings As of Apr 30, 2017
Exchange-Traded Funds
Holding NameMarket Value
VANGUARD FTSE EMERGING MARKETS ETF$14,839,069
 
Collective Trusts/Mutual Funds
Holding NameMarket Value
VT III VANTAGEPOINT EQUITY INCOME FUND$86,858,205
VT III VANTAGEPOINT INTERNATIONAL FUND$83,247,388
VT III VANTAGEPOINT GROWTH & INCOME FUND$64,816,947
VT III VANTAGEPOINT GROWTH FUND$60,376,134
VT III VANTAGEPOINT DIVERSIFYING STRATEGIES FUND$58,367,038
VT III VANTAGEPOINT MID/SMALL COMPANY INDEX FUND$34,606,177
VT III VANTAGEPOINT CORE BOND INDEX FUND$29,095,705
VT III VANTAGEPOINT HIGH YIELD FUND$7,150,607
VT III VANTAGEPOINT DISCOVERY FUND$4,233,673
VT III VANTAGEPOINT AGGRESSIVE OPPORTUNITIES FUND$4,207,010
VT III VANTAGEPOINT SELECT VALUE FUND$4,176,339
 
Short-Term/Cash
Holding NameMarket Value
FIDELITY INSTITUTIONAL MONEY MARKET$154,583
BLACKROCK TEMP FUND$154,574
All Holdings As of Mar 31, 2017
Exchange-Traded Funds
Holding NameMarket Value
VANGUARD FTSE EMERGING MARKETS ETF$14,611,002
 
Collective Trusts/Mutual Funds
Holding NameMarket Value
VT III VANTAGEPOINT EQUITY INCOME FUND$84,856,582
VT III VANTAGEPOINT INTERNATIONAL FUND$81,221,102
VT III VANTAGEPOINT GROWTH & INCOME FUND$63,161,050
VT III VANTAGEPOINT GROWTH FUND$58,495,431
VT III VANTAGEPOINT DIVERSIFYING STRATEGIES FUND$57,524,196
VT III VANTAGEPOINT MID/SMALL COMPANY INDEX FUND$34,019,764
VT III VANTAGEPOINT CORE BOND INDEX FUND$28,715,838
VT III VANTAGEPOINT HIGH YIELD FUND$7,048,770
VT III VANTAGEPOINT DISCOVERY FUND$4,144,218
VT III VANTAGEPOINT AGGRESSIVE OPPORTUNITIES FUND$4,110,136
VT III VANTAGEPOINT SELECT VALUE FUND$4,102,692
 
Short-Term/Cash
Holding NameMarket Value
BLACKROCK TEMP FUND$95,987
FIDELITY INSTITUTIONAL MONEY MARKET$95,987

Footnotes

1.

Please read Making Sound Investment Decisions: A Retirement Investment Guide and the accompanying VantageTrust Fund Fees and Expenses document ("Guide") carefully for a complete summary of all fees, expenses, investment objectives and strategies, and risks before investing. For a current Guide, contact ICMA-RC by calling 800-669-7400 or log into your account at www.icmarc.org.

2.

The Fund is not a complete solution for all of your retirement savings needs. An investment in the Fund includes the risk of loss, including near, at or after the target date of the Fund. There is no guarantee that the Fund will provide adequate income at and through an investor's retirement.

3.

Before investing in the Fund you should carefully consider your investment goals, tolerance for risk, investment time horizon, and personal circumstances. There is no guarantee that the Fund will meet its investment objective and you can lose money.

The source for this information is Morningstar, Inc. Copyright © 2017 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.