0001066980 tvf:S000038249Member 2011-12-22 2012-12-21 0001066980 2011-12-22 2012-12-21 0001066980 tvf:S000038249Member tvf:C000117924Member 2011-12-22 2012-12-21 pure iso4217:USD <div style="display:none">~ http://www.icmarc.org/role/ScheduleShareholderFeesVantagepointMilestone2050Fund column period compact * ~</div> <div style="display:none">~ http://www.icmarc.org/role/ScheduleAnnualFundOperatingExpensesVantagepointMilestone2050Fund column period compact * ~</div> 2012-12-21 485BPOS VANTAGEPOINT FUNDS 0001066980 false 2012-12-21 2012-12-21 Vantagepoint Milestone 2050 Fund Investment Objective To offer high total return consistent with the Fund’s current asset allocation. Fund Fees & Expenses The following table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. Shareholder Fees (fees paid directly from your investment) 0 0.001 0.0177 0.0073 0.026 -0.015 0.011 Other expenses are based on estimated amounts for the current fiscal year. Shareholders of the Fund indirectly pay the fees and expenses of the Acquired funds. Acquired fund fees and expenses are based on estimated amounts for the current fiscal year. April 30, 2014 Example This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that the contractual fee waiver and/or expense reimbursement described above expires on April 30, 2014 and therefore is only reflected in the 1 year example. The example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 112 666 Portfolio Turnover The Fund has not commenced operations as of the date of this Prospectus and, therefore, portfolio turnover rate is not applicable to this Fund. Investments, Risks, and Performance Principal Investment Strategies The Fund invests in a combination of other Vantagepoint Funds using an asset allocation strategy designed for investors who expect to begin making gradual withdrawals from the Fund, typically at or after retirement (assumed to occur at age 60), in or around the year 2050. The Fund invests in a combination of equity investments and fixed income investments. As time elapses, the Fund’s allocation to equity investments decreases, the Fund’s allocation to fixed income investments increases, and an allocation is added (and increased) to investments in asset classes and strategies that have historically exhibited a low correlation to traditional fixed income and equity investments (through the Diversifying Strategies Fund, a “multi-strategy” Fund) in a manner that the adviser believes to be appropriate, so that by June 30 of the year 2060 (10 years after the year indicated in the Fund’s name), the Fund’s net assets will be invested approximately 25% in equity Funds, 55% in fixed income Funds, and 20% in the multi-strategy Fund. The Fund’s allocations will change over time. The Fund invests in the following Vantagepoint Funds at target allocations within the current ranges indicated: <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica "> <tr> <td width="50%"></td> <td width="50%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"> Fixed Income Fund:</td> <td nowrap="nowrap" align="right"> Allocation Range:</td> </tr> </table> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica "> <tr> <td width="50%"></td> <td width="50%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"> Core Bond Index Fund (Class I) </td> <td nowrap="nowrap" align="right"> 0% - 10% </td> </tr> </table> <div style="margin-top: 6pt; font-size: 1pt"> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica "> <tr> <td width="50%"></td> <td width="50%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"> Equity Funds:</td> <td nowrap="nowrap" align="right"> Allocation Range:</td> </tr> </table> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica "> <tr> <td width="50%"></td> <td width="50%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"> Equity Income Fund </td> <td nowrap="nowrap" align="right"> 22% - 32% </td> </tr> </table> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica "> <tr> <td width="50%"></td> <td width="50%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"> Growth & Income Fund </td> <td nowrap="nowrap" align="right"> 11% - 21% </td> </tr> </table> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica "> <tr> <td width="50%"></td> <td width="50%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"> Growth Fund </td> <td nowrap="nowrap" align="right"> 8% - 18% </td> </tr> </table> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica "> <tr> <td width="50%"></td> <td width="50%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"> Mid/Small Company Index Fund (Class I) </td> <td nowrap="nowrap" align="right"> 15% - 25% </td> </tr> </table> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica "> <tr> <td width="50%"></td> <td width="50%"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left"> International Fund </td> <td nowrap="nowrap" align="right"> 14% - 24% </td> </tr> </table> Subject to the supervision of the Funds’ Board of Directors, the Fund’s investment adviser may, at its discretion, increase or decrease the target allocations to the underlying Funds. The adviser monitors the Fund’s allocations and will “rebalance” its portfolio as necessary to return the Fund to, or close to, the intended asset allocation. The Fund is designed to “age” so that its asset allocation becomes more conservative over time until it achieves a final constant asset allocation approximately 10 years after the year 2050. This is intended to reduce investment risk as investors move towards and into retirement. The sequence of asset allocation changes that the Fund is expected to follow over time (“glide path”) is illustrated below. <center><img alt="chart" src="g463863w85891a1w8589109.jpg"></img></center> The current asset mix (as of the date of this prospectus) is approximately 95% equity and 5% fixed income. The asset mix will become progressively more conservative so that by the year 2050 (“target year”), the mix will approximate 47% equity, 36% fixed income, and 17% multi-strategy. The asset mix will continue to become more conservative for 10 more years until the equity allocation is reduced to approximately 25%, the fixed income allocation is increased to approximately 55%, and the multi-strategy allocation is increased to approximately 20%. At that time (10 years after 2050), the Fund will reach its “landing point” and its target asset allocation will become constant. After the Fund reaches its final constant target allocations, the Fund’s investment adviser is expected to recommend, and the Fund’s Board of Directors may approve, combining the Fund with the Milestone Retirement Income Fund, which is expected to have approximately the same asset allocation as the Fund at that time. All percentages referred to above are based on the Fund’s net assets. This Fund may be appropriate for you if you plan to begin making gradual withdrawals from the Fund, typically at or after your retirement, in or around the year 2050. Principal Investment Risks There is no guarantee that the Fund will achieve its investment objective. You may lose money by investing in the Fund. 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 (or any of The Vantagepoint Funds) does not guarantee that you will have adequate savings for retirement. Asset Allocation Risk Asset allocation risk is the risk that the selection of the underlying Funds and the allocation of Fund assets among them will cause the Fund to lose money or to underperform other funds with similar investment objectives. In addition, there is the risk that the asset classes favored by the allocations will not perform as expected. The Fund’s investment adviser may alter the Fund’s asset allocation, as well as its Fund-level allocations, for reasons other than the passage of time. Any changes made in the underlying Funds, such as changes in investment objectives or strategies, may affect the Fund’s performance. The amount invested by this Fund in each underlying Fund is exposed to the same risks as that underlying Fund. These risks are summarized below. Stock Market Risk Stock market risk is the possibility that the prices of equity securities overall will experience increased volatility and decline over short or extended periods. Markets tend to move in cycles, with periods of rising prices and periods of falling prices. Foreign Securities Risk Investments in foreign securities may involve the risk of loss due to political, economic, legal, regulatory, and operational uncertainties; differing accounting and financial reporting standards; limited availability of information; currency fluctuations; and higher transaction costs. These risks may be greater with respect to securities of companies located in emerging market countries. Investments in securities of issuers located in emerging market countries tend to be more volatile than investments in securities of issuers located in developed foreign countries. Small-Cap Securities Risk Investments in small-capitalization companies involve greater risk than is customarily associated with investments in larger, more established companies. Equity securities of small-capitalization companies are generally subject to greater price volatility than those of larger companies due to: less certain growth prospects, the lower degree of liquidity in the markets for their securities, and the greater sensitivity of smaller companies to changing economic conditions. Also, small-capitalization companies may have more limited product lines, fewer capital resources and less experienced management than larger companies. Mid-Cap Securities Risk Investments in mid-capitalization companies involve greater risk than is customarily associated with investments in larger, more established companies. Equity securities of mid-capitalization companies generally trade in lower volume and are generally subject to greater and less predictable price changes than the securities of larger companies. Indexing Risk The Fund invests a portion of its assets in underlying Funds that employ index or passively managed strategies that are designed to approximate the investment characteristics and performance of specified indexes. Unlike an actively managed strategy, an index strategy does not rely on a portfolio manager’s decision making with respect to which individual securities may outperform others. Securities in an index strategy may be purchased, held, and sold by such underlying Funds at times when an actively managed portfolio would not do so. In addition, performance of underlying Funds using an index strategy will deviate from the performance of the specified index, which is known as tracking error. Tracking error may be caused by: (i) fees and expenses associated with managing the passive portfolio (whereas the benchmark index has no management fees or transaction expenses); (ii) changes to the index; and (iii) the timing of cash flows into and out of the underlying Funds. Equity Income/Interest Rate Risk A Fund’s distributions to shareholders may decline when interest rates fall or when dividend income from investments in stocks decline. You may lose money by investing in the Fund. Risk/Return Bar Chart and Table The Fund has not been in operation for a full calendar year, therefore no performance information is included. The Fund has not been in operation for a full calendar year, therefore no performance information is included. 2012-12-21 <div style="display:none">~ http://www.icmarc.org/role/ScheduleExpenseExampleVantagepointMilestone2050Fund column period compact * ~</div> Other expenses are based on estimated amounts for the current fiscal year. Shareholders of the Fund indirectly pay the fees and expenses of the Acquired funds. Acquired fund fees and expenses are based on estimated amounts for the current fiscal year. The investment adviser has agreed to waive fees or reimburse expenses (other than extraordinary expenses) until April 30, 2014 to limit the Fund's total annual operating expenses to 1.10%. After such date, this arrangement can be terminated by the investment adviser upon notification to the Fund's Board of Directors.