Vantagepoint Funds Outperform in 2nd Quarter
August 1, 2008
Washington, DC – August 1, 2008 -- ICMA-RC’s Vantagepoint Funds1 target-risk Model Portfolio Funds1,4 again outperformed Morningstar category peer medians in the second quarter, with all five funds in the top one-third of peers.
Vantagepoint Funds’ eight target-date Milestone Funds1,4 all outperformed their Morningstar category medians over the same period. In addition, every Model Portfolio Fund and every Milestone Fund performed in the top one-third of their respective peers for the three years ended June 30, 2008.
“In a volatile and difficult market, the Vantagepoint Funds continued to perform largely as anticipated, and the more conservatively managed funds in particular stood out,” said Wayne Wicker, senior vice president and chief investment officer of ICMA-RC.
Highlights of Vantagepoint Funds short-term and longer-term performance2:
- The Equity Income Fund1 continued its record of outperforming Morningstar peer category medians both for the quarter- and year-to-date ended June 30, building on its track record of having outperformed peer medians every calendar year since 2000.
- The International Fund1,3,6 performed in the top quintile (20 percent) of its Morningstar peer category median for the quarter, and in the top quartile for the year ended June 30, while outperforming peers for the three-year period.
- The Low Duration Bond Fund1,5 performed in the top quartile of its Morningstar peer category year-to-date and in the top 5 percent of the peer median over the five year period ended June 30.
| Morningstar Rankings as of June 30, 2008 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Name | Morningstar Category | Category Rank | Category Size | ||||||
| 3 Mo | 1 Yr | 3 Yr | 5 Yr | 3 Mo | 1 Yr | 3 Yr | 5 Yr | ||
| Vantagepoint Low Duration Bond Fund | Short-Term Bond | 30 | 34 | 31 | 5 | 455 | 447 | 381 | 303 |
| Vantagepoint Core Bond Index Fund, Class I | Intermediate-Term Bond | 58 | 16 | 21 | 30 | 1184 | 1126 | 990 | 831 |
| Vantagepoint Core Bond Index Fund, Class II | Intermediate-Term Bond | 61 | 14 | 16 | 22 | 1184 | 1126 | 990 | 831 |
| Vantagepoint Inflation Protected Securities Fund | Inflation-Protected Bond | 60 | 30 | 7 | 95 | 162 | 156 | 119 | 54 |
| Vantagepoint Milestone Retirement Income Fund | Target-Date 2000-2014 | 21 | 10 | 30 | 318 | 289 | 131 | ||
| Vantagepoint Milestone 2010 Fund | Target-Date 2000-2014 | 18 | 29 | 7 | 318 | 289 | 131 | ||
| Vantagepoint Milestone 2015 Fund | Target-Date 2015-2029 | 25 | 9 | 22 | 466 | 366 | 127 | ||
| Vantagepoint Milestone 2020 Fund | Target-Date 2015-2029 | 29 | 23 | 15 | 466 | 366 | 127 | ||
| Vantagepoint Milestone 2025 Fund | Target-Date 2015-2029 | 29 | 37 | 10 | 466 | 366 | 127 | ||
| Vantagepoint Milestone 2030 Fund | Target-Date 2030+ | 44 | 11 | 17 | 682 | 528 | 174 | ||
| Vantagepoint Milestone 2035 Fund | Target-Date 2030+ | 44 | 25 | 14 | 682 | 528 | 174 | ||
| Vantagepoint Milestone 2040 Fund | Target-Date 2030+ | 44 | 31 | 16 | 682 | 528 | 174 | ||
| Vantagepoint Model Portfolio Savings Oriented Fund | Conservative Allocation | 30 | 9 | 28 | 44 | 726 | 637 | 452 | 278 |
| Vantagepoint Model Portfolio Conservative Growth Fund | Conservative Allocation | 33 | 35 | 16 | 23 | 726 | 637 | 452 | 278 |
| Vantagepoint Model Portfolio Traditional Growth Fund | Moderate Allocation | 31 | 30 | 29 | 39 | 1233 | 1133 | 935 | 707 |
| Vantagepoint Model Portfolio Long-Term Growth Fund | Large Blend | 26 | 15 | 21 | 27 | 2237 | 2086 | 1715 | 1325 |
| Vantagepoint Model Portfolio All-Equity Growth Fund | Large Blend | 29 | 37 | 18 | 17 | 2237 | 2086 | 1715 | 1325 |
| Vantagepoint Asset Allocation Fund | Moderate Allocation | 88 | 88 | 54 | 39 | 1233 | 1133 | 935 | 707 |
| Vantagepoint Equity Income Fund | Large Value | 28 | 39 | 32 | 21 | 1511 | 1428 | 1183 | 928 |
| Vantagepoint 500 Stock Index Fund, Class I | Large Blend | 73 | 63 | 59 | 58 | 2237 | 2086 | 1715 | 1325 |
| Vantagepoint 500 Stock Index Fund, Class II | Large Blend | 71 | 60 | 53 | 52 | 2237 | 2086 | 1715 | 1325 |
| Vantagepoint Growth & Income Fund | Large Blend | 40 | 50 | 48 | 56 | 2237 | 2086 | 1715 | 1325 |
| Vantagepoint Broad Market Index Fund, Class I | Large Blend | 48 | 50 | 40 | 30 | 2237 | 2086 | 1715 | 1325 |
| Vantagepoint Broad Market Index Fund, Class II | Large Blend | 49 | 48 | 37 | 27 | 2237 | 2086 | 1715 | 1325 |
| Vantagepoint Growth Fund | Large Growth | 83 | 78 | 54 | 75 | 1894 | 1786 | 1488 | 1215 |
| Vantagepoint Select Value Fund | Mid-Cap Value | 19 | 464 | ||||||
| Vantagepoint Mid/Small Company Index Fund, Class I | Mid-Cap Blend | 53 | 40 | 41 | 33 | 534 | 486 | 410 | 323 |
| Vantagepoint Mid/Small Company Index Fund, Class II | Mid-Cap Blend | 53 | 38 | 38 | 27 | 534 | 486 | 410 | 323 |
| Vantagepoint Aggressive Opportunities Fund | Mid-Cap Growth | 82 | 94 | 75 | 52 | 989 | 949 | 813 | 684 |
| Vantagepoint Discovery Fund | Small Blend | 48 | 695 | ||||||
| Vantagepoint Overseas Equity Index Fund, Class I | Foreign Large Blend | 74 | 61 | 64 | 48 | 847 | 767 | 558 | 449 |
| Vantagepoint Overseas Equity Index Fund, Class II | Foreign Large Blend | 71 | 59 | 60 | 42 | 847 | 767 | 558 | 449 |
| Vantagepoint International Fund | Foreign Large Blend | 20 | 23 | 39 | 56 | 847 | 767 | 558 | 449 |
The percentile rank is based on total return relative to all funds in the same Morningstar category. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100. The top-performing fund in a category will always receive a rank of 1. Past performance is no guarantee of future results.
Behind the Numbers
Following losses in each of the first three months of the year, the S&P 500 Index7 rallied in April, rising 4.87 percent, and continued in positive territory in May with a gain of 1.30 percent. But it ended the second quarter down 2.73 percent as June saw the largest one month loss year-to-date of 8.43 percent. Through the end of the second quarter, the S&P 500 Index is down 11.91 percent for the year.
Non-U.S. stocks, as measured by the MSCI EAFE Index8, largely paralleled the path of the S&P 500, losing 1.93 percent for the second quarter and 10.58 percent year-to-date as of the end of the second quarter.
The U.S. bond market measured by the Lehman Brothers Aggregate Bond Index9 followed the first quarter’s 2.17 percent gain with a loss of 1.02 percent in the second quarter to finish the first half of 2008 with a 1.13 percent return.
1 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, 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 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.
2 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 1-800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240, or by visiting www.icmarc.org.
3 Foreign investments are subject to more risks not associated with domestic investments (I.e. currency, economy and political risks.)
4 Please be advised that with "Fund of Funds" arrangements, additional underlying fees may apply. Please consult the prospectus for details.
5 A rise/fall in the interest rates or credit quality can have a significant impact on bond prices and the NAV (net asset value) of the fund. Funds that invest in bonds can lose their value as interest rates rise and an investor can lose principal.
6 Investors who transfer assets out of these Funds must wait at least 91 days before transferring assets back into the same Funds. The policy affects transfers only. It does not affect regular contributions or disbursements.
7 The S&P 500 Index consists of 500 companies representing larger capitalization stocks traded in the U.S.
8 The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada.
9 The Lehman Brothers Aggregate Bond Index consists of all investment-grade U.S. fixed income securities.