Prepared for Utah Higher Education Assistance Authority
Prepared for: Utah Higher Education Assistance Authority
Background and methodology
Background
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The Investment Strategy Group (ISG) and the Education Savings (ES) have developed an alternative Target Enrollment Portfolio
glide path for education savings goals (college, trade school, and K-12)
This Target Enrollment Portfolio glide path would be an optional replacement to the three currently recommended risk tracks for
the age-based portfolio
Vanguard is a nondiscretionary advisor to the 529 state sponsors; as such, we have guardrails for sponsors choosing variation
from our recommended portfolio(s)
Methodology
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Target Enrollment Portfolio glide path is derived from the Vanguard Life-Cycle Investing Model (VLCM)
VLCM considers aggregate investor risk tolerance, investor utility, and loss aversion
Portfolios are developed for two-year cohorts (Target Enrollment 2022/2023 Portfolio, Target Enrollment 2024/2025 Portfolio, etc.)
Sub-asset allocation changes incrementally on a quarterly basis
For institutional use only. Not for distribution to retail investors. 15View entire presentation