Returns for periods greater than one year are annualized.

The performance data quoted represents past performance. Past performance is no guarantee of 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 by calling 800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.

The principal investment strategies of the Vantagepoint Milestone 2035 Fund are to invest in a combination of underlying Vantagepoint Funds using an asset allocation strategy designed for investors expecting to retire around the year 2035. As time elapses, the Fund’s allocation to underlying equity Funds is decreased and the Fund’s allocation to fixed income Funds is increased so that by June 30 of the year 2035, the Fund’s assets will be invested approximately 30% in equity Funds, 60% in fixed income Funds and 10% in asset classes and strategies that have historically exhibited a low correlation to traditional fixed income and equity investments (“multi-strategy Fund”).

The investment strategy is implemented by investing in the following Vantagepoint Funds at target allocations within the percentage ranges indicated as of the date of this prospectus:

Subject to the supervision of the Funds' Board of Directors, VIA may, at its discretion, increase or decrease the target allocations to the underlying Funds within the allocation ranges noted above. To the extent that the target allocations to the underlying Funds are increased or decreased, VIA will do so within the above-stated allocations to fixed income and equity Funds and a multi-strategy Fund. VIA may also use other Vantagepoint Funds from the list of candidate Funds to fulfill the asset class allocations.

The underlying Funds’ fixed income holdings consist mainly of a diversified mix of U.S. Government, U.S. agency, and investment-grade corporate bonds of varying maturities.

The underlying Funds’ equity holdings consist of large-, mid- and small-capitalization U.S. stocks and larger-capitalization stocks of developed countries.

In the multi-strategy Fund category, to seek to enhance the Fund’s diversification, the Diversified Assets Fund seeks to provide exposure to asset classes and strategies that have historically had a low correlation to those of the other Vantagepoint Funds. The Diversified Assets Fund employs global tactical asset allocation strategies and a global bond strategy that seek to provide exposure to U.S. and foreign stock markets, U.S. and foreign bond markets and instruments and currencies. The Diversified Assets Fund uses derivative instruments to seek to achieve desired market exposure, enhance portfolio efficiency, or manage risk.

Vantagepoint Milestone Funds Aging Chart

As time elapses, the Fund’s allocation to equity Funds is decreased and the Fund’s allocation to fixed income Funds is increased. This progression from a more aggressive investment strategy to a more conservative strategy is known as the "aging path." On October 30, 2007 a multi-strategy component was added to the fund. The chart below, developed by Vantagepoint Investment Advisors, LLC ("VIA"), is a visual representation of this aging path and the arrow at the top of the chart indicates approximately the target allocation for the fund at this time.

By approximately June 30 of the year designated in each of the dated Fund’s name, VIA expects to have reduced the Fund’s allocations to approximately 30% equity funds, 60% fixed income funds, and 10% in a multi-strategy fund. For a complete list of the most current target allocations for the component funds that make up this Milestone Fund, please refer to the Components section.

The Vantagepoint Milestone 2035 Fund is subject to all of the general risks of investing in the domestic and international stock markets, derivatives risk and asset allocation risk which is the chance that the selection of the underlying Funds and the allocation of Fund assets to those underlying Funds will cause the Fund to underperform other funds with a similar investment objective. To a lesser extent, the Fund is subject to the risks of changing interest rates which will cause the income and value of shares in the Fund to fluctuate, credit risk which is the possibility that the issuer of a debt security will default, and mortgage-backed and asset-backed securities risk. Derivatives involve costs and can be volatile. In addition derivatives may not perform as expected and this could result in losses that would not otherwise have occurred and losses that are substantially more than the amount invested in the derivative.