Investment Objective
The Portfolio seeks to provide competitive yields and limited volatility with a guarantee of principal and accumulated interest.
Investment Strategy
The Portfolio invests substantially all of its assets in the New York Life Guaranteed Interest Account (GIA). The GIA is a stable value investment option with a guarantee of principal and accumulated interest provided by New York Life. Contributions to the GIA are invested in a funding agreement issued by New York Life (Funding Agreement). Contributions to the Funding Agreement are currently invested in a broadly diversified fixed income portfolio within New York Life's general account. The investments in the general account are intended to provide a stable crediting rate consistent with preservation of principal. The general account is invested primarily in a conservative array of securities and cash-equivalent investments in accordance with the investment restrictions of New York insurance law.
The primary objective of the general account is to ensure that New York Life can meet its obligations to policyholders and contract holders. Subject to the investment risks described in Appendix A – Explanation of Investment Risks as supplemented below, the Funding Agreement provides a guarantee of principal and accumulated interest to the Authority. These guarantees are made to the Authority in its capacity as Trustee through the Funding Agreement and are backed by the claims-paying ability of New York Life. The GIA is not a registered mutual fund or collective investment trust. The Portfolio is not guaranteed by the State, the Authority, the Program Manager, the FDIC, the Federal government or any other party.
Interest Crediting Rate:
Crediting rates are subject to change on January 1 and July 1 of each year and will be fixed for each semi-annual period, unless the Funding Agreement is terminated. Crediting rates will never be below 1%. Interest applied to your Account will depend on the semi-annual crediting rates provided by the GIA and any applicable Fees charged by the Plan. For example, although the crediting rate will not be below 1%, because we charge a Program Management Fee, the interest posted to your account may be lower than 1%.
Investment Risks
Credit Default Risk, Equity Wash or Liquidity Risk, Holding Period Risk, Termination Risk. These risks are discussed under New York Life Investment Risks, per the disclosure booklet.
