According to a press release, beginning in 2010, each dated Milestone Fund extended its “glide path” (i.e. the path the Fund’s asset allocation follows over time) for 10 years past the year in the fund’s name. For example, Milestone 2010 now reaches its “landing point” (i.e. the point at which its asset allocation becomes constant) in 2020. As a result of this change, the funds’ portfolios have been reallocated and the asset allocations will now age more slowly over time, according to the announcement.
When a Milestone Fund reaches its landing point – 10 years after the date in its name – it has a lower percentage of its assets in underlying equity and fixed income funds and a higher percentage in a multi-strategy fund than would have been the case prior to these changes. The Milestone Retirement Income Fund revised its portfolio allocation in January 2010 and does not change its portfolio over time, according to the firm.
The Milestone Funds are target-date funds that invest in underlying Vantagepoint Funds as “funds of funds,” and the dated funds are offered in five-year intervals beginning with the Milestone 2010 Fund.
All Vantagepoint Funds invested through ICMA-RC 401 or 457 plans are held through VantageTrust.
“Most retirees need to protect themselves against inflation as well as preserve their capital through long retirement periods,” said Wayne Wicker, senior vice president and chief investment officer of ICMA-RC. “The glide path of the dated Milestone Funds was developed not only to retirement but into retirement for an additional 10 years, and may help protect against inflation as well as preserve capital.”
ICMA-RC is an independent not-for-profit corporation focused on providing retirement plans and related services for more than 900,000 public employees in more than 8,000 retirement plans.
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