Investment Objective
The Enrollment Portfolios seek to achieve capital appreciation, income, and preservation of capital as appropriate for proximity to its applicable target date. The target date, included in the name of the option, is the year which corresponds to the potential enrollment year of the Beneficiary. The objective of this option becomes more focused on capital preservation and income as it approaches its target date.
Investment Strategy
The option allocates its assets to underlying funds consisting of Mutual Funds, ETFs and a cash equivalent component. The cash equivalent component consists of a Funding Agreement managed by New York Life. The options seek to provide a diversified allocation to broad asset classes, including domestic and international stocks and bonds, real estate, and capital preservation. The underlying funds represent different investment objectives and strategies. The allocations to the asset classes and the underlying funds are expected to change, reducing exposure to stocks and increasing exposure to fixed income and cash equivalents, until the Beneficiaries’ enrollment year. The underlying funds in this option will rebalance on an ongoing basis if they drift from their target allocations. The options will de-risk the asset class allocations on a semi-annual basis, until reaching the College Portfolio, which will retain a static allocation unless otherwise indicated.Investment Risks
An investment in the portfolio could lose money over short or long periods of time. The Fund is subject to the following risks, which could affect the Fund’s performance:
sActive management (T), Asset Concentration Risk (V), Call Risk (V), Concentration Risk (S), Consumer Related Companies (T), Country/Regional Risk (V), Credit Risk (C)(S)(V), Credit Default Risk (N), Credit Ratings Risk (C), Currency Risk (C)(V), Currency Risk and Currency Hedging Risk (V), Cybersecurity Breaches (T), Cybersecurity Risks (D), Derivatives Risk (C)(S)(V), Equity Market Risk (D), Equity Risk (S), Equity Securities Risk (B), Equity Wash or Liquidity Risk (N), Extension Risk (V), Foreign Investing (T), Foreign Securities and Currencies Risk (D), Foreign Securities Risk (B)(C), Fund of Funds Risk (S), Growth Investing (T), High Yield Security Risk (C), Holding Period Risk (NYL), Income Risk (C)(V), Index Fund Risk (B), Index-Related Risk (B), Index Sampling Risk (V), Industry Concentration Risk (V), Inflation-Protected Security Risk (S), Information Technology Sector (T), Interest Rate Risk (C)(S)(V), Investing in Emerging Markets (A), Investing in Growth Oriented Markets (A), Investing Outside the United State (A), Investment Style Risk (S)(V), Issuer Risks (A)(C), Large-Cap Company Risk (S),Large-Cap Stocks (T), Leverage Risk (C), LIBOR Risk (C), Liquidity Risk (C)(S)(V), Management (A), Manager Risk (V), Market Capitalization Risk (S), Market Conditions (T)(A), Market Risk (C)(S), Market Risk and Selection Risk (B), Maturity Risk (C), Money Market Fund Risk (S), Mortgage and Asset-Backed Security Risk (C), Non-Diversification Risk (V), Operational Risk (D), Passive Investment Risk (B), Portfolio Turnover Risk (C), Pre-Payment Risk (V), Redemption Risk (C), Sampling Index Tracking Risk (S), Sector Exposure (T), Securities Lending Risk (C)(D)(S), Small Company Risk (D), Stock Investing (T), Stock Market Risk (V), Termination Risk (N), Tracking Error Risk (S), U.S. Government Securities and Government-Sponsored Enterprises Risk (C), U.S. Treasury Obligations Risk (C), and Valuation Risk (C). These risks are discussed under Investment Risks, per the disclosure booklet
A = American Funds, B = BlackRock, C = Carillon Reams, D = Dimensional Fund Advisors, N = New York Life, S = Schwab, T = T. Rowe Price, and V = Vanguard
