Prepared for Utah Higher Education Assistance Authority
Prepared for: Utah Higher Education Assistance Authority
Benefits and considerations
Benefits
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Single portfolio glide path viewed as simpler because of fewer decisions and inputs for the investor (e.g., target-date funds)
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Target Enrollment Portfolio glide path results in improved objective-based metrics relative to existing glide paths
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Target Enrollment Portfolios' progressive, smoother structure increasingly favored by the industry and Morningstar
Can be a potential option for K-12 investors
Considerations
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Step-down from 100% equity begins in year 3 (all current portfolios begin step-down at year 5)
Target Enrollment Portfolio glide path has equity allocation at the end of the investment horizon (age 18) in line with industry average
and the current aggressive portfolio glide path*
Short-term TIPS (Treasury Inflation-Protected Securities) allocation is 0% throughout the entire portfolio glide path; current moderate
and conservative portfolios have short-term TIPS in the final years of the portfolio glide path*
*Age-based assets across all plans are invested in aggressive (51%), moderate (43%), and conservative (6%) portfolios.
Sources: Vanguard and ISG.
For institutional use only. Not for distribution to retail investors. 17View entire presentation