VT vantagepoint milestone funds

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1 VT vantagepoint milestone funds

2 choose a professionally managed Retirement Portfolio The VT Funds may help simplify your retirement investing decisions by allowing you to select a diversified fund keyed to when you expect to begin taking withdrawals, typically when or after you retire. Choosing the path to retirement security can be made easier with the VT Vantagepoint Funds (VT Funds). 1,2 Selecting the appropriate can be as simple as picking the Fund with the target date closest to when you want to begin making gradual withdrawals, typically when or after you retire. Each of the Vantagepoint Funds has a professionally managed portfolio of other Vantagepoint Funds. The asset mix of each dated Vantagepoint Fund becomes increasingly conservative as it ages to the target date in its name and for 10 years past that date. To help address the various investment risks investors face in retirement, the funds age not just to your retirement year, but into retirement before reaching a constant asset allocation. The constant asset allocation is designed to help protect investors in the later retirement years from both the risk of inflation and the risk of market volatility. Investment professionals oversee each Vantagepoint Fund s asset allocation to seek to maintain the right mix. This brochure describes how the VT Funds might fit in your retirement portfolio, how the underlying funds work, and how you can start investing in a VT Fund. 1 With Fund of Funds arrangements, additional underlying fees apply. Please consult the prospectus of The Vantagepoint Funds for details. 2 The share values of the VT Funds and also the Vantagepoint Funds are not guaranteed at any time, including at or after the target date, which is the date when investors are expected to begin making gradual withdrawals, typically at or after retirement. The Vantagepoint Funds asset allocations change over time, as described in The Vantagepoint Funds prospectus. The VT Funds are not a complete solution for your retirement savings and there is a risk of loss, including near, at, or after the target date. Important Fund Information: Each VT Fund invests all of its assets in a single underlying Vantagepoint Fund having a corresponding name and investment objective. Each underlying Vantagepoint Fund is a fund of funds that invests substantially all of its assets in the Vantagepoint Funds identified in The Vantagepoint Funds prospectus in amounts corresponding to the allocation ranges identified in the prospectus.

3 A Selection of VT Funds VT Funds can help simplify your investment decisions by offering an investment strategy that changes as you move through the significant milestones in your life. Choose from one of the available VT Funds below: Remember, it is still your money. Even if you invest in a VT Fund, you should review your quarterly statements and evaluate your retirement plan investment decisions to ensure that your investment needs and objectives are being met. VT Retirement Income Fund* VT 2010 Fund VT 2015 Fund VT 2020 Fund VT 2025 Fund VT 2030 Fund VT 2035 Fund VT 2040 Fund VT 2045 Fund Choose a Fund closest to your target date. * The VT Vantagepoint Retirement Income Fund maintains a constant asset allocation and is designed for investors who have begun to make gradual withdrawals, are seeking to preserve principal with some opportunity for inflation protection and capital growth, have a low tolerance for price fluctuations, or wish to invest for the shorter term. The VT Retirement Income Fund is not a complete solution for your retirement savings and there is a risk of loss, including near, at, or during retirement. How do I Choose a VT milestone fund? It s easy. Most VT Fund investors pick the Fund with the target date closest to the year they expect to begin making gradual withdrawals, typically at or after retirement. If the year you wish to begin making gradual withdrawals takes place between two VT Funds, selecting the Fund with the earlier date generally would be considered a more conservative investment decision, while choosing the Fund with the later date generally would be considered a more aggressive investment decision. You are always free to move your assets at any time. VT Vantagepoint Funds 1

4 Here s How the Funds Work Each VT Fund invests all of its assets in a single underlying Vantagepoint Fund having a corresponding name and investment objective. Each underlying Vantagepoint Fund is a fund of funds that invests substantially all of its assets in the Vantagepoint Funds identified in The Vantagepoint Funds prospectus in amounts corresponding to the allocation ranges identified in the prospectus. These underlying dated Vantagepoint Funds have ongoing aging incorporated into their design. Here s How Aging Works The dated Vantagepoint The Glide Path All dated Funds follow the same glide path, regardless of target year. 47.0% Equity 25.0% Equity 17.5% Multi-Strategy 20.0% Multi-Strategy 35.5% Fixed Income 55.0% Fixed Income 100% 100% 90% 90% Funds are are designed to age so that 80% 80% 70% 70% each Fund s asset allocation becomes 60% Fixed Income 60% more conservative over time, until the 50% 50% Fund reaches its constant asset allocation 40% 40% Multi-Strategy 10 years past the date in its name. This 30% Target Year 30% aging process seeks to balance investors 20% (Assumed Point of 20% Retirement & Beginning 10% Equity changing exposure over time to the risk of Withdrawals) 10% 0% 0% of inflation, the risk of market volatility, and the risk of outliving their investments. As time elapses, each dated Vantagepoint Years until Target Year Years after Target Year Fund s allocation to equity funds is decreased and its allocation to fixed income funds and a multi-strategy fund is increased. The sequence of asset allocation changes that the dated Vantagepoint Funds are expected to follow over time is known as the glide path. The above glide path chart reflects how the asset allocation of these underlying Vantagepoint Funds changes over time. The Funds glide path is designed to continue aging for ten years past the date in the Fund s name. For example, the 2025 Fund is designed for investors who expect to begin taking a series of withdrawals beginning in or around the year The 2025 Fund will continue to age until about the year In or shortly after the year 2035 the 2025 Fund s target portfolio allocation will become constant and remain at 25 percent equity, 55 percent fixed income, and 20 percent multi-strategy, and the Fund may merge with the Retirement Income Fund at that time. The VT Funds may not be appropriate if you plan to make a single lump-sum withdrawal at retirement. You should also consider your personal financial circumstances, additional sources of retirement income, and tolerance for risk when selecting a VT Fund. 2 VT Vantagepoint Funds

5 Below are the asset allocation ranges for each underlying Vantagepoint Fund The allocation ranges shown are the ranges as of The Vantagepoint Funds prospectus dated January 4, Representative Asset for Vantagepoint Funds n Fixed Income n Equity n Multi-Strategy Retirement Income Fund Low Duration Bond Fund 26% - 36% Core Bond Index Fund (Class I) 4% - 14% Inflation Protected Securities Fund 10% - 20% Equity Income Fund 5% - 15% Growth & Income Fund 5% - 15% International Fund 0% - 10% Diversifying Strategies Fund 15% - 25% 2010 Fund Low Duration Fund 9% - 19% Core Bond Index Fund (Class I) 1% - 11% Inflation Protected Securities Fund 10% - 20% Equity Income Fund 14% - 24% Growth & Income Fund 6% - 16% Growth Fund 3% - 13% Mid/Small Company Index Fund (Class I) 0% - 5% International Fund 5% - 15% Diversifying Strategies Fund 13% - 23% 2015 Fund Low Duration Fund 5% - 15% Core Bond Index Fund (Class I) 6% - 16% Inflation Protected Securities Fund 3% - 13% Equity Income Fund 14% - 24% Growth & Income Fund 6% - 16% Growth Fund 3% - 13% Mid/Small Company Index Fund (Class I) 2% - 12% International Fund 6% - 16% Diversifying Strategies Fund 11% - 21% 2020 Fund Low Duration Fund 1% - 11% Core Bond Index Fund (Class I) 10% - 20% Inflation Protected Securities Fund 0% - 5% Equity Income Fund 17% - 27% Growth & Income Fund 7% - 17% Growth Fund 3% - 13% Mid/Small Company Index Fund (Class I) 4% - 14% International Fund 8% - 18% Diversifying Strategies Fund 10% - 20% 2025 Fund Low Duration Bond Fund 0% - 7% Core Bond Index Fund (Class I) 8% - 18% Equity Income Fund 18% - 28% Growth & Income Fund 8% - 18% Growth Fund 4% - 14% Mid/Small Company Index Fund (Class I) 7% - 17% International Fund 10% - 20% Diversifying Strategies Fund 8% - 18% 2030 Fund Low Duration Bond Fund 0% - 6% Core Bond Index Fund (Class I) 3% - 13% Equity Income Fund 20% - 30% Growth & Income Fund 9% - 19% Growth Fund 6% - 16% Mid/Small Company Index Fund (Class I) 10% - 20% International Fund 11% - 21% Diversifying Strategies Fund 5% - 15% 2035 Fund Low Duration Bond Fund 0% - 5% Core Bond Index Fund (Class I) 0% - 10% Equity Income Fund 21% - 31% Growth & Income Fund 10% - 20% Growth Fund 7% - 17% Mid/Small Company Index Fund (Class I) 14% - 24% International Fund 13% - 23% Diversifying Strategies Fund 0% - 10% 2040 Fund Core Bond Index Fund (Class I) 0% - 10% Equity Income Fund 22% - 32% Growth & Income Fund 11% - 21% Growth Fund 8% - 18% Mid/Small Company Index Fund (Class I) 15% - 25% International Fund 14% - 24% Diversifying Strategies Fund 0% - 5% 2045 Fund Core Bond Index Fund (Class I) 0% - 10% Equity Income Fund 22% - 32% Growth & Income Fund 11% - 21% Growth Fund 8% - 18% Mid/Small Company Index Fund (Class I) 15% - 25% International Fund 14% - 24% Retirement Income Fund 18% 47% 2015 Fund 15% 64% 2025 Fund 81% 35% 21% 10%9% 2035 Fund 95% 5% 2045 Fund 25% 20% 16% 56% 72% 55% 2010 Fund 28% 2020 Fund 13% 15% 2030 Fund 5% 5% 90% 95% 2040 Fund 5% Please note that the representative asset allocation shown here for each Vantagepoint Fund is an illustration of each fund s percentages allocated to fixed income and equity funds and to a multi-strategy fund. The actual percentages will change over time as the dated Vantagepoint Funds undergo the aging process. Please consult The Vantagepoint Funds prospectus for more information about the dated Vantagepoint Funds aging process and the allocation ranges. Not all VT funds may be available in your plan. VT Vantagepoint Funds 3

6 The Benefits of Investing in a VT Fund Investing in a target-date VT Fund offers the following benefits: The underlying Vantagepoint Funds may invest in a combination of equity and fixed income funds and a multi-strategy fund. The VT Funds offer a long-term investment strategy. The Funds seek to help investors accumulate savings throughout their careers and preserve savings in retirement. Each underlying Vantagepoint Fund in which a VT Fund invests is designed to become more conservative as investors progress towards the year in which they begin making gradual withdrawals, typically at or after retirement, and continue to become more conservative for 10 years after the date in its name. How to Invest in a VT Fund Here s how you can get started. 1) Select the VT Fund closest to the year you would like to retire and/or begin making gradual withdrawals. 2) Carefully read The Vantagepoint Funds prospectus for information regarding the underlying fund. 3) New Participants: Complete an Employee Enrollment Form. Existing Participants: Transfer existing account assets and change the allocation of your future contributions to your selected VT Fund in one of these three ways: Log in to Account Access at Call an ICMA-RC Investor Services representative ( ). Call our automated voice response system ( ). 4 VT Vantagepoint Funds

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8 Please read 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. Investors should carefully 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. For a current prospectus, contact ICMA-RC Services, LLC by calling or by writing to 777 North Capitol Street, NE, Washington, DC , or by visiting All Vantagepoint Funds invested through 401 or 457 plans are held through VantageTrust. The Vantagepoint Funds are distributed by ICMA-RC Services LLC, a wholly owned broker-dealer subsidiary of ICMA-RC and member FINRA/SIPC. ICMA Retirement Corporation 777 North Capitol Street, NE Washington, DC Para asistencia en Español llame al BRC