Stable Value

Chart of the Week for May 25 - May 31, 2007

Reserved solely for retirement plans, stable value funds have unique investment, accounting, and regulatory structures that permit achieving intermediate bond market like returns, without variability in the principal value invested. As a result, stable value funds offer the low principal value risk of money market funds, while still achieving the typically higher long-term returns of an intermediate bond fund.

In the graph above, we can see the rolling one-year returns over the last 10 years of stable value funds, represented by the Hueler Stable Value Universe, and bond funds, as measured by the Lehman Brothers Aggregate Bond Index. While the return pattern of the bond index varied over the last 10 years, the stable value index performed more consistently over the same period. The Lehman index returned at most 14.56% over a one year period and at minimum -1.85%. The Hueler index performed in a narrower range over a one year period, returning up to 6.52% but never less than 4.27%.

This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. 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.

Investment information can change rapidly and the changes can be significant particularly in volatile markets. For this reason “as of”’ dates are provided for specific data where applicable. The information should not be considered current after the dates provided.

Please read 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 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. The 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.

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 800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.