Third Quarter Returns Reverse Trend

Chart of the Week for October 7-October 13, 2005

Although the ride was bumpy, capital markets returns in the third quarter reversed prior trends in 2005. All major equity indices posted positive returns, most enough to erase the deficit posted through the end of the second quarter. International markets, in particular, outperformed during the quarter both in local currency and US dollar terms. Bonds, on the other hand, finally succumbed to recent Fed rate hikes, and posted a moderate decline for the quarter — not enough to wipe out gains from the first half of the year.

* The following indices represent market sectors: bonds - Lehman Aggregate; large-cap stocks - S&P 500; small/mid-cap stocks - Russell 2000; international stocks - MSCI EAFE. 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: 1005-276.