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First Quarter Milestone, Model Funds Outperformed Peer Median in Worst Quarterly Market Since 2002
First Quarter Milestone, Model Funds Outperformed Peer Median in Worst Quarterly Market Since 2002
WASHINGTON, May 9 /PRNewswire/ -- ICMA-RC reported today that all eight of
its target-date Vantagepoint Milestone(4) Funds outperformed their Morningstar
peer medians in the first quarter of 2008, and for the one- and three-year
periods ending March 31, 2008, with each ranking among the top third of its
peers for the one-year period. All of the target-risk Vantagepoint Model
Portfolio(4) Funds except All-Equity Growth(4) Fund also outperformed their
peer medians in the first quarter, and all outperformed their peer medians for
the year. The results came as U.S. stocks posted their worst quarterly decline
since 2002, with losses across all reported market capitalization sizes, and
with both growth and value styles losing ground in the quarter.
"Historically, markets have repeatedly cycled through periods of strong
performance, followed by volatile down markets. The past year has been a
difficult market for both equities and at least some sectors of the fixed
income markets," said Wayne Wicker, ICMA-RC's Chief Investment Officer.
"Vantagepoint funds seek to capture gains for investors in bull markets while,
as the performance of the Model Portfolio Funds and Milestone Funds has
reflected, striving to protect those market gains in volatile and down
markets."
In other first quarter 2008 highlights:
-- The All-Equity Growth Fund(4) was ranked slightly below its peer median
for the first quarter 2008, but has beaten its peer median for the
one-, three- and five-year periods. It ranks in the top fifth of its
peer group for three- and five-year periods.
-- The International Fund(3) beat its Morningstar peer median for the
quarter, as well as the one- and three-year periods.
-- The Low Duration Bond and Inflation Protected Securities Funds outpaced
their peer medians for the quarter and the year ended March 31, 2008.
Both funds ranked in top third for these periods.
Morningstar Rank Detail
3 Month 3 Month
Category Category
Name Morningstar Category Rank Size
Vantagepoint Milestone
Retirement Income Target-Date 2000-2014 13 314
Vantagepoint Milestone 2010 Target-Date 2000-2014 32 314
Vantagepoint Milestone 2015 Target-Date 2015-2029 17 432
Vantagepoint Milestone 2020 Target-Date 2015-2029 25 432
Vantagepoint Milestone 2025 Target-Date 2015-2029 46 432
Vantagepoint Milestone 2030 Target-Date 2030+ 9 618
Vantagepoint Milestone 2035 Target-Date 2030+ 28 618
Vantagepoint Milestone 2040 Target-Date 2030+ 35 618
Vantagepoint Savings Oriented Conservative Allocation 13 709
Vantagepoint Conservative Growth Conservative Allocation 44 709
Vantagepoint Traditional Growth Moderate Allocation 24 1,251
Vantagepoint Long-Term Growth Large Blend 9 2,219
Vantagepoint All-Equity Growth Large Blend 57 2,219
Vantagepoint Inflation Protected
Secs Inflation-Protected Bond 31 167
Vantagepoint Low Duration Bond Short-Term Bond 29 471
Vantagepoint International Foreign Large Blend 30 836
Source: Morningstar Direct
Data as of March 31, 2008
1 Year 3 Year 5 Year 1 Year 3 Year 5 Year
Category Category Category Category Category Category
Name Rank Rank Rank Size Size Size
Vantagepoint Milestone
Retirement Income 12 41 286 129 45
Vantagepoint Milestone
2010 20 14 286 129 45
Vantagepoint Milestone
2015 9 27 343 118 31
Vantagepoint Milestone
2020 19 18 343 118 31
Vantagepoint Milestone
2025 30 13 343 118 31
Vantagepoint Milestone
2030 12 20 470 152 42
Vantagepoint Milestone
2035 15 16 470 152 42
Vantagepoint Milestone
2040 21 19 470 152 42
Vantagepoint Savings
Oriented 7 32 59 627 407 265
Vantagepoint
Conservative Growth 29 22 25 627 407 265
Vantagepoint
Traditional Growth 25 32 41 1,145 905 712
Vantagepoint Long-Term
Growth 20 21 34 2,124 1,664 1,314
Vantagepoint All-Equity
Growth 37 19 13 2,124 1,664 1,314
Vantagepoint Inflation
Protected Secs 33 12 95 157 111 56
Vantagepoint Low
Duration Bond 31 35 14 459 383 291
Vantagepoint
International 47 47 51 747 557 459
Source: Morningstar Direct
Data as of March 31, 2008
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
The S&P 500 Index dropped 9.45 percent in the quarter, with all sectors
showing negative performance. The Dow Jones Industrial Average ("Dow") fell
7.00 percent and the NASDAQ dropped 13.88 percent. This was the poorest
quarterly performance for those three market indexes since the third quarter
of 2002 when the market was subject to the dot-com bust, the impact of the
9/11 terror attacks and a recession. In that quarter, the S&P 500 Index and
the Dow dropped almost 18 percent and the NASDAQ lost almost 20 percent.
For the 1st quarter 2008, security markets -- fixed and equity, foreign
and domestic -- reflected the combined effects of the continuing flight to
quality, U.S.-led liquidity constraints, fears of a U.S. recession, and
inflation remaining above Federal Reserve targets.
Fixed income markets responded to declining Treasury rates, a flight to
quality, and inflation risk concerns with returns that varied considerably
between fixed income market sectors. For example, based on Lehman Brothers
indexes, the U.S. Treasury sector gained 4.43 percent for the quarter, while
the High Yield sector lost 3.02 percent in the quarter.
Foreign markets declined for the quarter. Developed markets as represented
by the MSCI EAFE Index dropped 8.82 percent. After years of outperformance,
emerging markets as represented by the MSCI Emerging Market Index
underperformed developed markets and the S&P 500 Index, decreasing 10.92
percent.
ICMA-RC is an independent not-for-profit firm focused on providing
retirement plans and related services for over 800,000 state and local
employees. Our emphasis is on providing the best services, investment options,
tools and educational materials to help public employees build retirement
security. The corporation, established in 1972, offers 457 deferred
compensation and 401 defined contribution plans, as well as an IRA, and other
retirement-related products exclusively to state and local government
employees. For more information visit www.icmarc.org.
1. 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 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.
0408-2143
SOURCE ICMA-RC
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