Overseas Markets Surge in Third Quarter

Chart of the Week for October 14-October 20, 2005

Foreign markets rallied in the third quarter of this year trouncing domestic returns. The graph shows how $1 invested at the end of 2004 would have grown through September in the various indices. Returns in U.S. dollar terms are helped by exchange rates that currently favor overseas investment. As the graph shows, international markets overall outpaced the U.S. Regionally, Asia performed well with developed countries such as Japan and South Korea posting large gains. Emerging markets were the best performers driven by Eastern Europe and countries such as Argentina and Brazil in Latin America.

* The following indices represent market sectors: U.S. large cap stocks - S&P 500; international stocks - MSCI EAFE; emerging markets stocks - MSCI Emerging Markets. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing. 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 by calling 1-800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240, or by visiting www.icmarc.org. Please consult both the current Vantagepoint Funds 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. Vantagepoint securities are distributed by ICMA-RC Services LLC, a broker dealer affiliate of ICMA-RC, member NASD/SIPC. For a current prospectus, contact ICMA-RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400. AC: 1005-289.