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Interest Accumulation Portfolio

Overview

Unit Price as of 05/08/2025 $14.69
Change $0.00 0.00%
Yield as of 05/08/2025 3.57%
Expense Ratio as of 05/08/2025 0.12%
Inception Date 11/14/2003

* Thirty day advertised yield net of expenses calculated daily.

Investment Objective

The Portfolio seeks income consistent with the preservation of principal.

Investment Strategy

The Portfolio invests 100% of its assets in Vanguard® Short-Term Reserves Account, through which the Portfolio indirectly owns funding agreements issued by one or more insurance companies, synthetic investment contracts, as well as shares of Vanguard Federal Money Market Fund. Funding agreements are interest-bearing contracts that are structured to preserve principal and accumulate interest earnings over the life of the investment. These agreements generally pay interest at a fixed rate and have fixed maturity dates that normally range from 2 to 5 years. Investments in new funding agreements are based upon available liquidity in the Portfolio and the competitiveness of the interest rates offered by eligible high-quality issuers and depend on market conditions and trends. Under New York State law, the Trust may invest only in those funding agreements issued by life insurance companies whose general obligations are assigned the highest or second highest rating by two nationally recognized rating services, or by one such rating service in the event that only one such rating service assigns a rating to such obligations, subject to a $350 million limit per issuer. The minimum amount of a funding agreement is usually about $15 million.

After a funding agreement is purchased, additional cash contributions will be used to purchase shares of the Federal Money Market Fund until there is enough cash to purchase another funding agreement. There is a limited universe of high-quality insurance companies and other issuers that issue investments eligible for purchase by the Short-Term Reserves Account. Within this constraint, Vanguard seeks to diversify among eligible issuers and investments. If necessary, the Short-Term Reserves Account may invest all, or a large portion, of its assets in Vanguard Federal Money Market Fund to limit its exposure to any single issuer or to meet normal liquidity needs.

The Federal Money Market Fund invests in high-quality, short-term money market instruments issued by the U.S. government and its agencies and instrumentalities. Although these securities are high-quality, most of the securities held by the Fund are neither guaranteed by the U.S. Treasury nor supported by the full faith and credit of the U.S. government. The Federal Money Market Fund maintains a dollar-weighted average maturity of 60 days or less and a dollar-weighted average life of 120 days or less.

The Short-Term Reserves Account has a longer average maturity than money market funds, which should result in higher yields when interest rates are stable or declining. However, because only a portion of the Short-Term Reserves Account's investment matures each year, its yield will change more slowly than that of a money market fund. As a result, when interest rates are rising, the Portfolio's yield may fall below money market funds' yields for an extended time period.

Investment Risks

The Portfolio primarily is subject to income risk. In addition, the Portfolio has low levels of credit risk, manager risk, and derivatives risk.

Funding agreements are backed by the financial strength of the insurance companies that issue the contracts. Every effort is made to select high-quality insurance companies. However, the Portfolio may lose value if an insurance company is unable to make interest or principal payments when due.

Average Annual Returns - Updated Monthly as of 04/30/2025

Name 1 year 3 year 5 year 10 year Since Inception 11/14/2003
Name Interest Accumulation Portfolio 1 year 3.60% 3 year 2.86% 5 year 2.37% 10 year 1.96% Since Inception 11/14/2003 1.81%
Name Inst'l Money Market Fund Avg.** 1 year 4.42% 3 year 4.13% 5 year 2.48% 10 year 1.78% Since Inception 11/14/2003 1.60%

**Derived from data provided by Lipper Inc.

Annual Investment Returns

Year Ended Interest Accumulation Portfolio
Year Ended 2024 Interest Accumulation Portfolio 3.57%
Year Ended 2023 Interest Accumulation Portfolio 2.71%
Year Ended 2022 Interest Accumulation Portfolio 1.56%
Year Ended 2021 Interest Accumulation Portfolio 1.51%
Year Ended 2020 Interest Accumulation Portfolio 2.08%

Historical Prices

05/08/2025 $14.69
05/07/2025 $14.69
05/06/2025 $14.69
05/05/2025 $14.69
05/02/2025 $14.68

Search for more historical price information

Index performance is provided as a benchmark but is not illustrative of any particular investment. An investment cannot be made in an index.

The performance data shown represents past performance. Past performance - especially short-term past performance - is not a guarantee of future results. Investment returns and principal value will fluctuate, so that investors' units, when sold, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data cited. For performance data current to the most recent quarter-end click here.

Interest Accumulation Portfolio invests in Vanguard Short-Term Reserves Account, which, in turn, invests in Vanguard Federal Money Market Fund. Vanguard Short-Term Reserves Account could lose money by investing in Vanguard Federal Money Market Fund. Although the fund seeks to preserve the value of your investment at $1 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any government agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.

Investment returns are not guaranteed, and you could lose money by investing in the Direct Plan.

For more information about New York's 529 College Savings Program Direct Plan, download a Disclosure Booklet and Tuition Savings Agreement or request one by calling 877-NYSAVES (877-697-2837). This document includes investment objectives, risks, charges, expenses, and other information. You should read and consider them carefully before investing.

Before you invest, consider whether your or the beneficiary's home state offers any state tax or other benefits that are only available for investments in that state's 529 plan. Other state benefits may include financial aid, scholarship funds, and protection from creditors.

The Comptroller of the State of New York and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering the Direct Plan.

Ascensus Broker Dealer Services, Inc., serves as Program Manager and, in connection with its affiliates, provides recordkeeping and administrative support services and is responsible for day-to-day operations of the Direct Plan. The Vanguard Group, Inc., serves as the Investment Manager. Vanguard Marketing Corporation markets, distributes, and underwrites the Direct Plan.

No guarantee: None of the State of New York, its agencies, the Federal Deposit Insurance Corporation (FDIC), The Vanguard Group, Inc., Ascensus Broker Dealer Services, Inc., nor any of their applicable affiliates insures accounts or guarantees the principal deposited therein or any investment returns on any account or investment portfolio.