Eighty-Three Percent of ICMA-RC's Actively-Managed Vantagepoint Funds Outperformed Morningstar Peers over the Five Years ended December 31, 2012

WASHINGTON, Feb. 12, 2013 /PRNewswire/ -- Eighty-three percent, or 19 of 23, of ICMA-RC's actively-managed, no-load Vantagepoint Funds outperformed their Morningstar peer group medians over the five-year period ended Dec. 31, 2012. Of ICMA-RC's popular target-date Vantagepoint Milestone Funds,¹ six of the eight funds with five years of performance history performed in the top third of their peer group. Peer group rankings are based on total return and performance was negative over some time periods. On a risk-adjusted return basis, 96 percent, or 23 of 24 of them have an Overall Morningstar rating² of three stars or better for the period ended Dec. 31, 2012.

"ICMA-RC's focus on building retirement security for public sector employees and our more than one million participant accounts includes a commitment to outstanding management of the Vantagepoint funds," said Joan McCallen, president and CEO of ICMA-RC. "We are pleased that the funds experienced strong performance in 2012 and urge investors to make the most of their retirement savings opportunities through careful research, planning and investing."

Performance of the actively-managed Vantagepoint Funds in 2012 was enhanced by the funds' below average expense ratios. All of the actively-managed funds had expense ratios at or below the average expense ratios for their Morningstar peer groups.

"Vantagepoint Fund's multi-manager approach combines careful management with low expenses for the benefit of investors," said Wayne Wicker, senior vice president and Chief Investment Officer of ICMA-RC. "The Vantagepoint multi-manager approach was successful in 2012 on both a stand-alone and competitive basis. Longer term, the multi-manager approach has successfully served our clients."

As of Dec. 31, 2012, actively-managed Vantagepoint Funds' performance highlights are as follows:

• Vantagepoint Equity Income, Vantagepoint Growth & Income, Vantagepoint Diversifying Strategies,  and Vantagepoint International funds had four-star overall Morningstar ratings.
• Over five years, 52 percent of the funds performed in the top third of their peer groups.
• Vantagepoint Growth & Income Fund outperformed its Morningstar peer group median over the one- year, three-year, five-year, and ten-year periods.
• Vantagepoint Select Value Fund outperformed its Morningstar peer group median over the one-year, three-year, and five-year periods. This fund does not have ten years of performance yet.
• Vantagepoint International Fund outperformed its Morningstar peer group median over the one-year, three-year, and five-year periods. This fund outperformed 49 percent of its peers over the ten-year period.
• One hundred percent of ICMA-RC's target-date funds, Vantagepoint Milestone Funds, have an Overall Morningstar rating² of three stars or better for the period ended Dec. 31, 2012.
• One hundred percent of ICMA-RC's target-risk funds, Vantagepoint Model Portfolio Funds, have an Overall Morningstar rating² of three stars for the period ended Dec. 31, 2012.

Performance highlights for the Vantagepoint Funds are available at www.icmarc.org/vpprospectus.

Morningstar's peer group rankings for Vantagepoint's¹ actively-managed no-load funds as of Dec. 31, 2012, are as follows:

*Fund does not have enough performance history
The Morningstar percentile ranking is based on Total Return (including the effects of fee waivers) 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.

The performance quoted represents past performance, is no guarantee of future results, and is annualized for periods greater than one year. 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 shown. For current performance, contact ICMA-RC by calling 800-669-7400 or by visiting www.icmarc.org.

Please read the fund's prospectus carefully for a complete summary of all fees, expenses, financial highlights, investment objectives and strategies, risks and performance information. The prospectus contains this and other information about the investment company. Investing involves risk, including possible loss of the amount invested. Investors should carefully consider the information contained in the prospectus before investing. You can obtain a prospectus, statement of additional information and other information about the Vantagepoint Funds online at www.icmarc.org/vpprospectus, by calling 800-669-7400 or emailing [email protected]. The Vantagepoint Funds are distributed by ICMA-RC Services LLC, a wholly owned broker-dealer subsidiary of ICMA-RC and member FINRA/SIPC.

¹ The fund is not a complete solution for all of your retirement savings needs. An investment in the fund includes the risk of loss, including near, at or after the target date of the fund. There is no guarantee that the fund will provide adequate income at and through an investor's retirement. Selecting the fund does not guarantee that you will have adequate savings for retirement.

² For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. For funds with loads, the Morningstar rating on a load-waived basis is provided, when available.  Load-waived ratings do not include any front- or back-end sales loads and are intended for investors that have access to such purchase terms. Funds with loads are waived for plans administered by ICMA-RC.

³ Funds that invest in small and/or mid-sized company stocks typically involve greater risks, particularly in the short-term, than those investing in large, more established companies.

⁴ Foreign investments are subject to more risks not associated with domestic investments (i.e., currency, economy and political risks).

⁵  A rise/fall in the interest rates can have a significant impact on bond prices and the NAV (net asset value) of the fund. Funds that invest in bonds can lose their value as interest rates rise and an investor can lose principal.

About ICMA-RC

Founded in 1972, ICMA-RC is a non-profit independent financial services corporation focused on providing retirement plans and related services for more than a million public sector participant accounts and approximately 9,000 retirement plans. Our mission is to help build retirement security for public employees. We deliver on our mission by focusing on service, quality and value. All of our retirement programs, administrative services and educational tools have been developed specifically for public sector retirement plan administrators and participants. For more information, visit www.icmarc.org. AC: 16794-0213-6305

SOURCE ICMA-RC

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