Vantagepoint Milestone Funds “Age” Their Portfolios
June 27, 2007
Vantagepoint’s popular Milestone Funds* are designed to meet the needs of investors who have selected a target date for retiring, and prefer to have portfolio allocation decisions made by investment professionals with that target retirement date in mind. The portfolio for each Milestone Fund is developed to provide appropriate risk levels for investors with a target retirement date that is approximately equal to the date in the name of the fund. For example, the Milestone 2025 Fund may be appropriate for investors who plan to withdraw assets from their retirement accounts within two or three years of 2025.
Consistent with that objective, the portfolio for each Milestone Fund is periodically (typically semiannually) reallocated in small increments among its underlying individual mutual funds. This periodic incremental reallocation process is known as “aging” the funds, and serves to reduce the expected risk level of the funds as the investors’ target retirement date draws closer. This incremental adjustment process helps keep the portfolio focused on investors’ retirement and risk-level goals. The Milestone Retirement Income Fund is designed to provide investors with appropriate risk levels and income earning levels during their retirement years. “aging” is not necessary for the Retirement Income Fund to maintain the targeted level of risk and income appropriate for investors during retirement. Also, aging is not currently appropriate for the 2040 fund. Aging the 2040 Fund portfolio is anticipated to become appropriate as the year 2010 is approached.
Consistent with ICMA-RC’s commitment to building retirement security and the objective of each Milestone Fund, appropriate “aging” was completed for each fund other than the Retirement Income Fund and Milestone 2040 Fund in late June.
*Please be advised that with “Fund of Funds” arrangements, additional underlying fees may apply. Please consult the prospectus for details.
ICMA-RC does not offer specific tax or legal advice. These presentations are offered for investment education purposes only and are not to be construed or relied upon as investment advice. It is recommended that individuals consult with their personal financial advisor prior to implementing any financial or tax strategy. Vantagepoint securities are distributed by ICMA-RC Services LLC, a wholly owned broker-dealer affiliate of ICMA-RC, member FINRA/SIPC. ICMA-RC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400. www.icmarc.org. 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. 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.