ICMA-RC

Investment Philosophy

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.

ICMA Retirement Corporation
(“ICMA-RC”)

Plan Administrator and Investment Adviser

ICMA-RC Services, LLC

Broker-Dealer Wholly Owned Subsidiary of ICMA-RC

Vantagepoint Investment Advisers, LLC

Investment Adviser to Vantagepoint Funds & Wholly Owned Subsidiary of
ICMA-RC

Vantagepoint Transfer Agents, LLC

Wholly Owned Subsidiary of ICMA-RC

VantageTrust Company, LLC

Trustee to Vantagepoint Funds & Investment Advisory Client of Vantagepoint Investment Advisers, Wholly Owned Subsidiary of ICMA-RC

Vantagepoint Funds1

Objective and Strategy

Our investment strategy is designed to leverage people, process, and perspectives to help investors realize retirement security.

Team of Professionals

Disciplined Process

Independent Thought

Objective

Blend experienced investment managers to achieve the investment objective.

Risk & Return Characteristics

Risk & Return Characteristics

Principal Investment Strategy

Principal Investment Strategy

Asset Class

Asset Class

Management Style

Management Style

INVESTMENT OBJECTIVE

INVESTMENT OBJECTIVE

Our process is powered by

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Managers

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Mandates

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Funds

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Average manager tenure2

Data as of 12/31/2018

Expertise

Our team of investment professionals conduct 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.

Investment Management

Subadviser Research & Due Diligence

  • Investment style and process
  • Quantitative screening and analysis
  • Qualitative analysis
  • In-house and on-site visit

Risk Management & Subadviser Oversight

  • Correlation
  • Relative performance
  • Evaluate strengths
  • Negotiate fees

Portfolio Construction & Asset Allocation

  • Continuous internal review
  • Adherence to investment style
  • Formal quarterly reviews
  • Periodic rebalancing
  • Termination/Replacement
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Capital Market Assumptions as of 12/31/20183

  • Assumptions are forward-looking with a 7- to-10 year timeframe.
  • Comprehensive, including the following asset classes: U.S. Large Cap Equity, U.S. Mid Cap Equity, U.S. Small Cap Equity, International Equity, Emerging Markets Equity, Stable Value, U.S. Short Duration Government/Credit Bonds, U.S. Aggregate Bonds, U.S. TIPS, and U.S. High Yield Bonds
  • Uses both qualitative and quantitative analysis.
  • Focuses on economic and fundamental building blocks that drive asset class returns.
  • Assumptions are based on current and potential market and economic conditions using historical experience as a guide.
Asset Class
Expected Return Expected Volatility
Equities
U.S. Large-Cap Equity 5.9% 14.0%
U.S. Mid-Cap Equity 7.4% 15.7%
U.S. Small-Cap Equity 6.9% 18.4%
International Equity 6.8% 16.3%
Emerging-Markets Equity 8.3% 20.3%
Fixed Income
Stable Value 3.1% 0.6%
U.S. Short Duration Government/Credit Bonds 3.1% 1.8%
U.S. Aggregate Bonds 3.1% 4.0%
U.S. TIPS 2.8% 5.9%
U.S. High Yield Bonds 4.5% 8.4%