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(f) any other plan, trust, or other entity that is an eligible investor in a group trust under <br />Revenue Ruling 81 -100. <br />VI. THE VANTAGETRUST II FUNDS <br />Following is an overview of each category of Funds of the Trust that the Trust Company has <br />established. Please refer to each individual Fund Fact Sheet or Investment Options Sheet for <br />additional information about the Fund and class, including performance, objectives, investment <br />strategies, expenses and restrictions. See Appendix A for a list of the current VantageTrust II <br />Funds. <br />A. VantageTrust II Model Portfolio Funds Overview <br />The VantageTrust II Model Portfolio Funds ( "VT II Model Portfolio Funds ") are target risk <br />funds. This means that each of the Model Portfolio Funds is a fund of funds that invests <br />in certain of The Vantagepoint Funds and may also invest in third party exchange- traded <br />funds ( "underlying funds ") rather than investing directly in a portfolio of securities. <br />Each VT II Model Portfolio Fund has a different degree of potential risk and reward and <br />is diversified among the underlying funds in differing allocations. By investing in this <br />way, each VT II Model Portfolio Fund is exposed to the risks as well as the potential <br />rewards of its underlying funds and the portfolio holdings and strategies of those funds. <br />Asset Allocation: The targeted allocation of each VT II Model Portfolio Fund among the <br />underlying funds and the asset classes they represent is established by ICMA -RC as the <br />investment adviser to the Trust Company. <br />Rebalancing: If one component of a particular VT II Model Portfolio Fund outperforms <br />another component over any given time period, the VT II Model Portfolio Fund will <br />become "out of balance." For example, if the equity component of a VT II Model <br />Portfolio Fund outperforms the fixed income portion, the amount of the equity portion <br />may increase beyond its intended allocation. A significant change in the allocation can <br />affect both the level of risk and the potential for gain or loss. ICMA -RC, as investment <br />adviser, monitors the performance and underlying fund allocations of each VT II Model <br />Portfolio Fund on a regular basis. When a fund becomes out of balance, ICMA -RC will <br />transfer assets between underlying funds in order to rebalance a VT II Model Portfolio <br />Fund. <br />Changes to the Underlying Funds: Any changes in the underlying funds, such as changes <br />in investment objectives or strategies, may affect the performance of the VT II Model <br />Portfolio Funds. ICMA -RC may alter the asset class allocations or underlying fund -level <br />allocations of a VT II Model Portfolio Fund at its discretion. <br />VantageTrust II Funds <br />Disclosure Memorandum <br />2016.01.13 - 6 - <br />