Vantagepoint Milestone 2040 Fund


The investment objective of the Vantagepoint Milestone 2040 Fund is to offer high total return consistent with the Fund’s current asset allocation.

as of Mar 31, 2008
Ticker Symbol	VPRKX
Documents	Prospectus
Morningstar Category	Target-Date 2030+
Inception Date	January 3, 2005

as of Sep 23, 2008
Gross Expense Ratio		1.23%
Waiver †	–	0.24%
Net Expense Ratio	=	0.99%
† The expense waiver is contractual and will expire on April 30, 2009. Please see the Fund’s fee table in the prospectus for additional information.

as of Mar 31, 2008

Morningstar Category: Target-Date 2030+

Morningstar Rating‡
Stars		Category Size
Overall		152
5-Year	Not Available	Not Available
3-Year		152

Morningstar Styleboxes
Equity Stylebox	Fixed Income Stylebox

Allocation of Assets
Type of Assets	%
Equity	87%
Fixed Income	10%
Cash/Other	3%

‡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. Past performance is no guarantee of future results.

See the Morningstar® Snapshot of this fund

Fund/Benchmark Name	3rd Qtr	YTD	1-Yr	3-Yr	5-Yr	10-Yr	Since Inception
as of Sep 30, 2008
VP Milestone 2040	-11.32%	-19.32%	-21.59%	0.59%	N/A	N/A	1.76%
S&P 500 Index	-8.37%	-19.29%	-21.98%	0.22%	5.17%	3.06%	N/A
MSCI EAFE Index	-20.50%	-28.91%	-30.13%	1.58%	10.16%	5.42%	N/A
Barclays Capital (formerly Lehman Bros.) Aggregate Bond Index	-0.49%	0.63%	3.65%	4.15%	3.78%	5.20%	N/A
Milestone 2040 Custom Benchmark	-10.63%	-21.05%	-23.41%	0.63%	N/A	N/A	N/A
Morningstar Target 2030+	-12.07%	-20.82%	-22.90%	-0.61%	4.93%	3.21%	N/A

See below for the definitions of the benchmarks for the Fund**

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. Para asistencia en Español llame al 1-800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.

Date		Income	Capital Gains		Total
as of Nov 30, 2008
Record	Payable/Ex		Long Term	Short Term
December 26, 2007	December 27, 2007	$0.2182	$0.5447	$0.1593	$0.9222
December 21, 2006	December 22, 2006	$0.1265	$0.0656	$0.0863	$0.2783
December 28, 2005	December 29, 2005	$0.1166	N/A	$0.0179	$0.1345

Statistic	Value

As Of Date: Mar 31, 2008
Total Net Assets ($millions)	$34

Holding Name	Percent
as of Feb 29, 2008
Vantagepoint Equity Income	25.8%
Vantagepoint Mid/Sm Company Index I	18.9%
Vantagepoint International	18.1%
Vantagepoint Growth & Income	14.9%
Vantagepoint Growth	11.9%
Vantagepoint Core Bond Index I	10.4%

View Current Holdings for this Fund.

The investment objective of the Vantagepoint Milestone 2040 Fund is to offer high total return consistent with the Fund’s current asset allocation.

The principal investment strategies of the Vantagepoint Milestone 2040 Fund are to invest in a combination of underlying Vantagepoint Funds using an asset allocation strategy designed for investors expecting to retire around the year 2040. At the Fund’s inception, the Fund allocated approximately 90% of Fund’s assets to equity investments and approximately 10% of the Fund’s assets to fixed income investments. As time elapses, the Fund’s allocation to underlying equity Funds is decreased and the Fund’s allocation to fixed income Funds and multi-strategy Funds that have a low correlation to equity and fixed income Funds is increased so that by June 30 of the year 2040, the Fund’s assets will be invested approximately 30% in equity Funds, 60% in fixed income Funds and 10% in multi-strategy funds.

The investment strategy is implemented by investing in the following Vantagepoint Funds at target allocations within the percentage ranges indicated as of the date of this prospectus:

Component Funds	Allocation Range
Fixed Income Funds
Vantagepoint Core Bond Index Fund	5%–15%
Equity Funds
Vantagepoint Equity Income Fund	21%–31%
Vantagepoint Growth & Income Fund	10%–20%
Vantagepoint Growth Fund	7%–17%
Vantagepoint Mid/Small Company Index Fund	14%–24%
Vantagepoint International Fund	13%–23%

Subject to the supervision of the Board of Directors, VIA may, at its discretion, increase or decrease the target allocations to the underlying Funds within the allocation ranges noted above. To the extent that the target allocations to the underlying Funds are increased or decreased, VIA will do so within the above-stated allocations to fixed income and equity Funds. VIA may also use other Vantagepoint Funds from the list of candidate Funds to fulfill the asset class allocations.

The underlying Funds’ fixed income holdings consist mainly of a diversified mix of U.S. Government, U.S. agency, and investment-grade corporate bonds of varying maturities.

The underlying Funds’ equity holdings consist of large-, mid- and small-capitalization U.S. stocks and larger-capitalization stocks of developed countries.

Vantagepoint Milestone Funds Aging Chart

As time elapses, the Fund’s allocation to equity Funds is decreased and the Fund’s allocation to fixed income Funds is increased. This progression from a more aggressive investment strategy to a more conservative strategy is known as the "aging path." On October 30, 2007 a multi-strategy component was added to the fund. The chart below, developed by Vantagepoint Investment Advisors, LLC ("VIA"), is a visual representation of this aging path and the arrow at the top of the chart indicates approximately the target allocation for the fund at this time.

By approximately June 30 of the year designated in each of the dated Fund’s name, VIA expects to have reduced the Fund’s allocations to approximately 30% equity funds, 60% fixed income funds, and 10% in a multi-strategy fund. For a complete list of the most current target allocations for the component funds that make up this Milestone Fund, please refer to the Component Fund section below.

The Vantagepoint Milestone 2040 Fund is subject to all of the general risks of investing in the domestic and international stock markets and asset allocation risk which is the chance that the selection of the underlying Funds and the allocation of Fund assets to those underlying Funds will cause the Fund to underperform other funds with a similar investment objective. To a lesser extent, the Fund is subject to the risks of changing interest rates which will cause the income and value of shares in the Fund to fluctuate, credit risk which is the possibility that the issuer of a debt security will default, and mortgage-backed and asset-backed securities risk.

Please see Risks of Investing in the Funds for additional information.

The Fund’s investment adviser is Vantagepoint Investment Advisers, LLC (“VIA”) and invests in certain other Vantagepoint Funds rather than investing directly in a portfolio of securities. The underlying funds are listed below.

Changes to the Underlying Funds

Any changes made in the underlying Funds, such as changes in investment objectives, may affect the performance of the Milestone Funds that invest in the underlying Funds. VIA may alter the Fund-level allocation of a Milestone Fund at its discretion under the supervision of the Board of Directors.

VIA will alter the underlying Fund allocations of the dated Milestone Funds as time elapses towards the target year designated in the Fund’s name. VIA can make changes by increasing or reducing the allocation to an underlying Fund, by removing underlying Funds, or by adding new underlying Funds from the candidate list. Additionally, VIA may also make discretionary changes to the underlying Fund allocations for reasons other than the passage of time. Reasons for discretionary changes to underlying Fund allocations include changes to the underlying Funds, such as a change in investment objective or investment strategy and VIA’s assessments of market conditions and relative valuation.

VIA monitors the performance and underlying Fund allocation of each Milestone Fund. From time to time, it will be necessary to transfer assets from one underlying Fund to another in order to rebalance Fund asset allocations.

as of Jun 30, 2008

Vantagepoint Core Bond Index Fund
Investment Objective:	The investment objective of the Vantagepoint Core Bond Index Fund is to offer current income by approximating the performance of the Lehman Brothers Aggregate Bond Index.
Target Allocation:	10.00%

Vantagepoint Equity Income Fund
Investment Objective:	The investment objective of the Vantagepoint Equity Income Fund is to offer long-term capital growth with consistency derived from dividend yield.
Target Allocation:	26.00%

Vantagepoint Growth & Income Fund
Investment Objective:	The investment objective of the Vantagepoint Growth & Income Fund is to offer long-term capital growth and current income.
Target Allocation:	15.00%

Vantagepoint Growth Fund
Investment Objective:	The investment objective of the Vantagepoint Growth Fund is to offer long-term capital growth.
Target Allocation:	12.00%

Vantagepoint Mid/Small Company Index Fund
Investment Objective:	The investment objective of the Vantagepoint Mid/Small Company Index Fund is to offer long-term capital growth by approximating the performance of the Dow Jones Wilshire 4500 Completion Index.
Target Allocation:	19.00%

Vantagepoint International Fund
Investment Objective:	The investment objective of the Vantagepoint International Fund is to offer long-term capital growth and diversification by country.
Target Allocation:	18.00%

See note(s) FOFF, BKDLR

FOFF: Please be advised that with “Fund of Funds” arrangements, additional underlying fees may apply. Please consult the prospectus for details.

BKDLR: 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.

CNTCT: To contact ICMA-RC Services, LLC, ICMA-RC, or any of its affiliates call 800-669-7400 (TDD: 800-669-7471) or write to 777 North Capitol Street, NE, Washington, DC 20002-4240. You may also visit us on the Web at www.icmarc.org.. Para asistencia en Español llame al 800-669-8216.

**Fund Benchmarks

Indexes are not available for direct investment, are unmanaged, and do not reflect the costs of portfolio management or trading. A fund's portfolio may differ significantly from the securities held in the indexes.

S&P 500 Index: The S&P 500 Index, consists of 500 companies representing larger capitalization stocks traded in the U.S.

MSCI EAFE Index: The MSCI EAFE Index, is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada.

Barclays Capital (formerly Lehman Bros.) Aggregate Bond Index: The Barclays Capital (formerly Lehman Bros.) Aggregate Bond Index, consists of all investment-grade U.S. fixed income securities.

Milestone 2040 Custom Benchmark: The custom benchmark is composed of market indexes that reflect the general performance of the primary asset classes in which the Fund invests, in weighted percentages that correspond to the historical target allocation to those asset classes for the Fund. Those asset class benchmarks are the S&P 500 Index and the MSCI EAFE Index. Should the target allocations for the Fund between those asset classes change, the percentage allocations to the corresponding indexes will also change when calculating the custom benchmark.

Morningstar Target 2030+: The Morningstar Target 2030+ Average is an equal-weighted average of all Target 2030+ funds, as identified by Morningstar, Inc.