Money Market Fund Alternative

Chart of the Week for July 3-10, 2003

Participants investing in stable value funds generally earn higher returns than money market funds. Like money market funds, stable value funds seek to provide safety of principal and interest. The returns are comparable to intermediate bonds, with less risk or volatility. However, liquidity is close to a money market fund.

As the chart shows, adjusting for fees, stable value funds have had average yields higher than average money market fund yields for most of the periods shown. By design stable value funds have not declined in yield as much as money market funds have over the past two years.

* This illustration was compiled from information provided by various sources not affiliated with the ICMA-RC. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any securities. This information is intended for educational purposes only and is not to be construed or relied upon as investment advice. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended here and should understand that statements regarding future prospects may not be realized. Past performance is not necessarily indicative of future performance. Vantagepoint securities are distributed by ICMA-RC Services LLC, a broker dealer affiliate of ICMA-RC, member NASD/SIPC. ICMA-RC Services LLC, 777 North Capitol Street NE, Washington, DC 20002-4240. 1-800-669-7400.