Mutual Fund Assets Continue to Build

Chart of the Week for November 19-25, 1999

According to the Investment Company Institute, mutual fund assets held in retirement plans totaled $1.86 trillion at the end of 1998, representing about one-third of all mutual fund assets. Of the 82.8 million Americans who own mutual funds, one half of these shareholder cite employer-sponsored retirement plans as their primary method for purchasing mutual funds.

Net cash flows into stock funds rose in September to $9.3 billion versus inflows of $8.9 billion in August. Aggressive growth and world equity funds benefited most from this increase. Year-to-date through September, cash flow to stock funds is about 12.7 percent below the first nine months of 1998.

Many investors and fund managers watch net cash flows as an indicator of where the market and economy may be headed. Cash flows out of money market funds typically are reinvested into the stock market. As the chart below illustrates, a pattern between the cash flows of money market funds can influence the performance of the S&P 500.

* 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.