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ICMA -RC recommends that a Fund invest in a Vantagepoint Fund, a potential conflict of interest <br />exists because either ICMA -RC or one of its affiliates receives compensation in the form of <br />advisory fees, transfer agent, shareholder servicing, or other administrative fees based on the <br />assets invested in the Vantagepoint Fund. Similarly, when ICMA -RC recommends that a Fund <br />invests in a third -party mutual fund, a potential conflict of interest exists because ICMA -RC or <br />its affiliate, ICMA -RC Services, LLC receives payments from third -party mutual fund families or <br />their service providers in the form of 12b -1 fees, service fees, compensation for sub - accounting <br />and other services provided by ICMA -RC Services and /or ICMA -RC based on assets in the <br />underlying third -party mutual fund. <br />All of these payments from other parties are expressly disclosed to and acknowledged by the <br />Trust Company in its investment management agreement with ICMA -RC. <br />XI. UNIT ACCOUNTING FOR FUNDS <br />The beneficial interest in a class of a Fund is represented by units. Plans purchase units in the <br />Fund for the benefit of their participants and beneficiaries. These units represent a proportional <br />ownership interest in each Fund in which the Plan is invested. The worth of a unit is known as <br />its Unit Value. The daily Unit Value is determined at the close of each business day by adding <br />the value of all of a Fund's investments, plus cash and other assets, deducting liabilities, and <br />then dividing the result by the number of outstanding units in the Fund as of the end of the <br />prior day and rounding the results to the nearest cent. The Unit Value of a Model Portfolio <br />Fund is calculated based upon the net asset value of the underlying funds in which it invests. <br />The value of an investment in a Fund equals the number of units held multiplied by the current <br />day's Unit Value. Because Unit Values and investment returns will fluctuate, a transfer or <br />disbursement will normally result in the receipt of more or less than the original cost of an <br />investment. <br />Fees and expenses charged by ICMA -RC are deducted before the Unit Value is calculated. The <br />Unit Value takes into account the net asset value of the underlying mutual funds in the Model <br />Portfolio Funds and any applicable fees and expenses charged by ICMA -RC. <br />XII. SHARE CLASSES <br />All Funds may be made available through different classes and sub - classes. These classes and <br />sub - classes may have different fee structures for the services provided, including but not <br />limited to, advisory, administration, record keeping and participant education services. The <br />Trust Company may divide a Fund or its share class into different sub -share classes that reflect a <br />different combination of fees or a lower fee structure that the Trust Company may then make <br />available to certain Plans. Plans may qualify for a class or sub -class based upon a number of <br />factors that reflect savings from economies of scale or other cost savings with respect to <br />services provided. These include, but are not limited to: the asset size, average account <br />balance, the type and scope of services provided, or other features of the Plan. <br />Vantage-Frust 11 Funds <br />Disclosure Memorandum <br />2016.01.13 15- <br />