In This Market Active Management Can Add Value to Value Investing

Chart of the Week for August 24-30, 2001

Shunned during the dot.com frenzy, value investing is again in favor as investors have adopted an anti-growth bias. The S&P/BARRA Value Index’s superior performance compared to the broader S&P 500 Index is evidence of this trend. Active management also provides an opportunity to add value over a benchmark. Through diligent research and careful stock selection, active fund managers may find stocks with greater potential than those held in an index. For example, through superior stock selection, the Vantagepoint Equity Income Fund has outperformed its benchmark, the S&P/BARRA Value Index, as well as the broader S&P 500 Index. Accordingly it was recently recognized by The Wall Street Journal as one of the ten best performing Equity Income Funds over the past year (August 24, 2001; page C16).

* 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. Past performance does not guarantee 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, or by visiting www.icmarc.org. Please consult both the current Vantagepoint Funds prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights and investment objectives, risks and performance information prior to investing any money. Vantagepoint securities are distributed by ICMA-RC Services LLC, a broker dealer affiliate of ICMA-RC, member NASD/SIPC. For a current prospectus, contact ICMA-RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400.