Vantagepoint Funds Earn High Marks

October 26, 2007

It’s often easy to overlook or under appreciate those things we see everyday. Similarly, it is easy to overlook just how well the Vantagepoint Funds have performed. Many of our funds have outperformed their peers and garnered high Morningstar star rankings.

Here are some highlights, both recent and long term, to show how the fund’s competitive performance and lower risk compared to their peers are helping ICMA-RC plan participants “Build Retirement Security.” All information is as of September 30, 2007.

A long-term record of outperformance

• Reflecting the quality of the underlying Vantagepoint equity funds, our Model Portfolio All-Equity Growth Fund has outperformed 86 percent of its Morningstar peers for the preceding five years.
• Over 70 percent of the actively managed individual Vantagepoint Funds have earned four or five stars ratings from Morningstar. That’s more than double the 32.5 percent of funds in the industry awarded these high ratings.
• Of the seven actively managed individual Vantagepoint Funds with records of one year or longer, three performed in the top quartile of Morningstar peers for the five year period. Two others scored just below (2 or 3 percentile rankings) the top quartile. In all, five out of seven scored in or near the top quartile for the preceding five years.
• Including the Model Portfolio Funds, VantageTrust PLUS Fund, and actively managed individual Vantagepoint Funds with at least a one year record, 71 percent outperformed peer funds on an asset weighted basis for the five year period.

Across-the-board competitive returns

• Every Vantagepoint Model Portfolio Fund achieved a higher Sharpe Ratio (better risk / return trade off) than its peers for the one-, three-, and five-year periods reported by Morningstar, helping investors earn competitive returns without exposure to excessive amounts of risk.
• Every Milestone Fund achieved a higher Sharpe Ratio (better risk / return trade off) than its peers for the one-year period reported by Morningstar (three-year track records for the Milestone Funds will be available the end of 2007).
• Every actively managed individual Vantagepoint Fund has a lower Annual Report Net Expense Ratio than its peers, with most having a fee of approximately two-thirds of its peers and none having a fee that is even three-fourths of its peers’ fees.

Near-term numbers are strong

• Every Model Portfolio Fund and every Milestone Fund beat its peers for the third quarter.
• Asset Allocation Fund has earned five Morningstar stars overall, four stars for three years, and five stars for five years. It has outperformed 93 percent of its peers for the five year period and 86 percent of its peers for the three year period.
• Model Portfolio Savings Oriented Fund, which because of its conservative portfolio allocation, is the only Model Portfolio Fund with fewer than three stars, outperformed 75 percent of its Morningstar peers for the quarter, thus showing its strength in preserving gains in volatile and negative markets.

Past performance is no guarantee of future results.

Morningstar: For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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 fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. With respect to Large Blend funds, the All-Equity Growth fund received a Morningstar Rating of 4 stars out of 1646 funds and 4 stars out of 1284 funds for the three- and five-year periods, respectively; and the Long-Term Growth fund received a Morningstar Rating of 3 stars out of 1646 funds and 3 stars out of 1284 funds for the three- and five-year periods, respectively. With respect to Moderate Allocation funds, the Traditional Growth fund received a Morningstar Rating of 3 stars out of 891 funds and 3 stars out of 671 funds for the three- and five-year periods, respectively. With respect to Conservative Allocation funds, the Conservative Growth fund received a Morningstar Rating of 4 stars out of 394 funds and 3 stars out of 228 funds for the three- and five-year periods, respectively; and the Savings Oriented fund received a Morningstar Rating of 3 stars out of 394 funds and 2 stars out of 228 funds for the three- and five-year periods, respectively.

Please consult both the current applicable prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights, investment objectives, risks and performance information. Investing in mutual funds and other investment vehicles involves risk, including possible loss of the amount invested. Investors should consider the Fund's investment objectives, risks, charges and expenses before investing or sending money. The prospectus contains this and other information about the investment company. Please read the prospectus carefully before investing. All Vantagepoint Funds invested through 401 or 457 plans are held through VantageTrust. Vantagepoint Funds are distributed by ICMA-RC Services LLC, a wholly owned broker-dealer subsidiary of ICMA-RC and member FINRA/SIPC. For a current prospectus, contact ICMA-RC Services, LLC.

Vantagepoint Model and Milestone Funds: Please be advised that with "Fund of Funds" arrangements, additional underlying fees may apply. Please consult the prospectus for details.

Investing in mutual funds and other investment vehicles involves risk, including possible loss of the amount invested.

To contact ICMA-RC Services, LLC, ICMA-RC, or any of its affiliates call 800-669-7400 (TDD: 800-669-7471) or write to 777 North Capitol Street, NE, Washington, DC 20002-4240. You may also visit us on the Web at www.icmarc.org. Para asistencia en Español llame al 800-669-8216.