The Vantagepoint Market Perspective: Reopenings, Protests, and the Markets

The protests, riots, and curfews that have evolved during the past week in multiple cities — along with the underlying issues that prompted them — have been tragic on many levels. However, while the situation is clearly very serious, so far, the financial markets seem to be looking ahead to the prospects for an economic restart and recovery later this year and into 2021 and 2022.

The Vantagepoint Market Perspective: Trust, but Verify

Back in the Cold War days of the 1980s, as President Ronald Reagan was negotiating with the Soviet Union, he adopted and popularized an old Russian proverb: trust, but verify. The former president’s signature phrase increasingly comes to mind as we monitor the latest COVID-19 news and the market’s reaction to it.

The Vantagepoint Market Perspective: COVID-19 and the Great Outdoors

Across the nation, when it comes to decisions about how to navigate the COVID-19 pandemic, the choices for government officials in recent months have been stark: Close down your state or city and strangle your economy and businesses in an effort to save lives or open it up and potentially put your citizens — particularly the elderly — at risk.

First Quarter Equity Market Overview and Outlook

On March 12, 2020, the bull market’s 11-year run came to an end. Its plodding ascent earned the distinction of being the longest in history. In contrast, the bear market that took hold has resembled a fleeting mad dash.

First Quarter Fixed Income Market Overview and Outlook

Fixed income markets responded to the quarter’s events by taking participants on a roller coaster ride. In aggregate, U.S. Treasury yields adopted a risk-off posture, shifting downward by at least 100 basis points at every spot on the yield curve.

Expertise

Our investment process combines the demonstrated market expertise from our award-winning subadvisers with the disciplined due diligence and oversight of our in-house fund managers.

Extensive Investment Offerings

Our fund lineup incorporates diversification of ideas, strategies, and asset classes, including equity, fixed income, target-date, target-risk, and stable value investment options.

Retirement Focus

With a long-term perspective toward retirement planning, our funds offer a disciplined asset allocation process with competitive performance and pricing.

Our process is powered by

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Managers

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Average Manager tenure2

Data as of 3/31/2020

Multi-Manager Skill

Our team of professionals conducts independent selection and oversight of third-party institutional investment managers. These professionals have access to award-winning institutional managers with demonstrated expertise across all asset classes.

Diversification

Our team brings together a broad and diverse set of ideas, styles, and strategies for competitive performance in all market conditions. We work with a portfolio of complementary investment managers with distinct investment styles to provide attractive risk-adjusted returns.

Disciplined, Proven Process

Our process is marked by continuous manager research and due diligence, thoughtful portfolio construction and asset allocation, and risk management and manager oversight. We have a history of systemized due diligence designed to decrease operational risks.

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Our Multi-Managed Funds

We believe that in addition to traditional investment approaches such as diversification, asset allocation, and a long-term perspective, a multi-manager approach and investment style serve investors who are working to build retirement security.

In a multi-managed approach, managers with different but complementary investing approaches are selected and integrated within a single fund in proportions that are expected to optimize return relative to risk. We believe this not only increases diversification but also may improve the consistency of returns over time by eliminating reliance on the results of a single manager.

Disclaimer

This website is for institutional use only and is not intended for individual investors or the general public.

The information contained on this website is for informational purposes only and is not intended as a solicitation nor does it constitute investment, tax or legal advice. Reference to any fund or asset class on this site is not a recommendation to buy, sell, or hold that fund or asset class. Neither ICMA Retirement Corporation (ICMA-RC) nor its subsidiaries are responsible for any investment action taken as a result of the information on this website or interpretation of such information.

Investors should carefully consider their own investment goals, risk tolerance and liquidity needs before making an investment decision. Investing involves risk, including possible loss of the amount invested. The Funds’ offering and disclosure documents include a complete summary of all fees, expenses, financial highlights, investment objectives and strategies, and risks, and should be carefully reviewed before investing.

Past performance is no guarantee of future results. Investment return 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.

When Funds are marketed to institutional clients by our Defined Contribution Investment Only (DCIO) team, the Funds are offered by ICMA-RC Services, LLC (RC Services), an SEC registered broker-dealer and FINRA member firm. RC Services is a wholly-owned subsidiary of ICMA-RC and is an affiliate of VantageTrust Company, LLC and Vantagepoint Investment Advisers, LLC. View more information about RC Services: FINRA’s BrokerCheck.

1 Vantagepoint Funds invest in a single VT III Vantagepoint Fund (VT III Funds). Vantagepoint Funds and VT III Funds are collective investment trust funds (CITs) established and maintained by VantageTrust Company, LLC (VTC), a wholly owned subsidiary of ICMA-RC, a New Hampshire non-depository trust company, and the sole trustee of these CITs. Eligible retirement plans may invest in the Vantagepoint Funds, which are funds of VantageTrust. ICMA-RC’s wholly-owned subsidiary, Vantagepoint Investment Advisers, LLC (VIA), provides investment advisory and management services to VTC with respect to the Vantagepoint Funds and VT III Funds. The Vantagepoint Funds and certain VT III Funds invest in other funds managed and administered by ICMA-RC or VIA. ICMA-RC and VIA receive asset-based fees from such underlying funds in addition to the asset-based fees it received from the Vantagepoint and VT III Funds. Please see VIA’s Form ADV, available at www.adviserinfo.sec.gov, for more information.

2 Each Vantagepoint Fund invests in a VT III Vantagepoint Fund that has the same investment objective and strategies. Prior to October 2016, each Vantagepoint Fund invested in a registered Vantagepoint Fund mutual fund that had the same investment objective and strategies. In October 2016, the Vantagepoint Fund mutual funds were liquidated and the assets were transferred to the VT III Vantagepoint Funds. In the event that a subadviser to the VT III Vantagepoint Funds was also a subadviser to the Vantagepoint Fund that preceded it, the average subadviser tenure with the VT III Vantagepoint Funds is calculated using both time periods.