Lifestyle Investing with the Vantagepoint Model Portfolio Funds
Lifestyle investing allows participants the opportunity to select one mutual fund that matches their risk tolerance. Each of the Vantagepoint Model Portfolio Funds1 is designed to accommodate a different level of risk tolerance from the very conservative Savings Oriented Model Portfolio Fund to the very aggressive All Equity Model Portfolio Fund.
For the Model Portfolio Funds ICMA-RC uses a “fund of funds” approach. Each fund is a balanced porfolio of underlying Vantagepoint Funds1. The allocation of assets between each of the underlying funds is regularly adjusted, thereby maintaining the risk level of each particular Model Portfolio fund. Your participants can thereby evaluate their risk tolerance, select the appropriate fund, and invest in that fund knowing that the risk level of the fund will be maintained over time. They are an excellent solution for participants who are not comfortable or do not have the time to manage their own self-selected portfolio.
The Benefits Are Clear — One-stop investment solutions provide your participants with an easier way to take advantage of investment strategies like risk-based investing without the need to become an investment expert. As a Plan Sponsor, one-stop solutions help you achieve your goal of providing the best possible retirement benefits to your participants.
A Personal Choice — Each Model Portfolio Fund is designed to meet the needs of investors with different levels of tolerance to risk. Each participant should assess their risk tolerance, evaluate their time horizon and then select the Model Portfolio that best meets their long-term goals.
Set It and Forget It — Once participants have selected a Model Portfolio Fund they can rest easy knowing that the risk profile of the fund will not change over time. Stocks and bonds behave differently over time. In some markets stocks may significantly outperform bonds, and in others the opposite will be true. With the Model Portfolio Funds, participants never need to readjust their mix of assets. The ICMA-RC investment professionals monitor these changes and regularly rebalance the funds. On October 30, 2007, a multi-strategy fund was added to all of the Model Portfolio Funds, except the All-Equity Growth Fund. The multi-strategy fund seeks to offer additional diversification beyond those investments in the fixed income and equity funds.
Would you like to see how we help your participants understand the process of building a portfolio based upon risk tolerance? Check out our Investing Guides in the Planning and Tools Section of ICMA-RC’s Individuals Web site or browse the “Determining Your Investment Portfolio” section of the Charting Your Course (813K PDF) publication.
| Information provided is as of March 31, 2008 | ||||||
|---|---|---|---|---|---|---|
| Fund Name |  Ticker Symbol |  Investment Category |  Star Rating (# in Group)† |  Prospectus Link |  Inception Date | |
| Model Portfolio Funds | ||||||
| Vantagepoint Model Portfolio Savings Oriented Fund | VPSOX | Conservative Allocation |  (452 in Grp.) | 2/9/1995 | ||
| Vantagepoint Model Portfolio Conservative Growth Fund | VPCGX | Conservative Allocation |  (452 in Grp.) | 4/1/1996 | ||
| Vantagepoint Model Portfolio Traditional Growth Fund | VPTGX | Moderate Allocation | (935 in Grp.) | 4/1/1996 | ||
| Vantagepoint Model Portfolio Long-Term Growth Fund | VPLGX | Large Blend | (1715 in Grp.) | 4/1/1996 | ||
| Vantagepoint Model Portfolio All-Equity Growth Fund | VPAGX | Large Blend | (1715 in Grp.) | 10/1/2000 | ||
An overall rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating Metrics as of the date stated. The risk-adjusted star rating brings both return and risk together into one evaluation. To determine a fund's star rating for a given period (three, five, or ten years), the fund's Morningstar Risk score is subtracted from its Morningstar Return score. The resulting number is plotted along a bell curve to determine the fund's rating for each time period. If the fund scores in the top 10% of its broad ratings group (domestic stock, international stock, taxable bond, or municipal bond), it receives 5 stars (Highest); if it falls in the next 22.5%, it receives 4 stars (Above Average); a place in the middle 35% earns it 3 stars (Neutral or Average); those in the next 22.5% receive 2 stars (Below Average); and the bottom 10% get 1 star (Lowest). The star ratings are recalculated monthly. Past performance is no guarantee of future results.
Data provided by Morningstar, Inc.®All rights reserved. The information contained herein; (1) is proprietary to Morningstar and/or its affiliates; (2) may not be copied or distributed; (3) is not warranted to be accurate, complete or timely. ICMA-RC does not review the Morningstar data and, for mutual fund performance information, please consult both the current Vantagepoint Funds prospectus or other appropriate 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. 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.
Please note: A redemption fee may be assessed when you sell shares in a mutual fund. Regardless, all funds are monitored for frequent trading. Please refer to the Fund’s prospectus for guidance on redemption fee and frequent trading terms. Also, refer to ICMA-RC’s Frequent Trading Policy for more information.
Non-performance data provided by Morningstar, Inc.® All rights reserved. The information contained herein; (1) is proprietary to Morningstar and/or its affiliates, (2) may not be copied or distributed, and (3) is not warranted to be accurate, complete or timely.
1Please be advised that with “Fund of Funds” arrangements, additional underlying fees may apply. Please consult the prospectus for details.