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Balanced Income Portfolio*

Overview

Unit Price as of 07/26/2023 $10.85
Change $0.00 0.00%
Expense Ratio as of 07/26/2023 0.12%
Inception Date 09/22/2017

Investment Objective

The Portfolio seeks to provide current income.

Investment Strategy

The Portfolio invests in three Vanguard bond index funds and one Vanguard short-term reserves account, resulting in an allocation of 35% of its assets to investment-grade U.S. bonds, 15% of its assets to investment-grade non-U.S. bonds, and 50% of its assets in short-term investments. The percentages of the Portfolio's assets allocated to each Underlying Fund are:

Vanguard Total Bond Market II Index Fund 23%
Vanguard Total International Bond Index Fund 15%
Vanguard Short-Term Inflation-Protected Securities Index Fund 12%
Vanguard Short-Term Reserves Account 50%

Through its investment in Vanguard Total Bond Market II Index Fund, the Portfolio indirectly invests in a broadly diversified collection of securities that, in the aggregate, approximates the Bloomberg Barclays U.S. Aggregate Float Adjusted Index in terms of key risk factors and other characteristics. The Index represents a wide spectrum of public, investment-grade, taxable fixed income securities in the United States—including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities—all with maturities of more than 1 year. The fund maintains a dollar-weighted average maturity consistent with that of the Index, which generally ranges between 5 and 10 years.

Through its investment in Vanguard Total International Bond Index Fund, the Portfolio indirectly invests in government, government agency, corporate, and securitized non-U.S. investment-grade fixed income investments, all issued in currencies other than the U.S. dollar and with maturities of more than one year. To minimize the currency risk associated with investments in bonds denominated in currencies other than the U.S. dollar, the Fund will attempt to hedge its currency exposures.

Through its investment in Vanguard Short-Term Inflation-Protected Securities Index Fund, the Portfolio indirectly invests in inflation-protected public obligations issued by the U.S. Treasury with remaining maturities of less than 5 years. The Fund maintains a dollar-weighted average maturity consistent with that of the target index, which generally does not exceed 3 years.

Through its investment in Vanguard Short-Term Reserves Account, the Portfolio indirectly invests in 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. The investments pay interest at a fixed minimum rate and have fixed maturity dates that normally range from 2 to 5 years. Vanguard Federal Money Market Fund invests in high-quality, short-term money market instruments issued by the U.S. government and its agencies and instrumentalities. For more information about Vanguard Short-Term Reserves Account, please see the Interest Accumulation Portfolio.

Investment Risks

Because it invests mainly in bond fund holdings, the Portfolio primarily is subject to low to moderate levels of interest rate risk, income risk, call risk, prepayment risk, extension risk and income fluctuation risk. The Portfolio also has low to moderate levels of credit risk, index sampling risk, currency hedging risk, nondiversification risk, liquidity risk, and derivatives risk.

Average Annual Returns - Updated Monthly as of 06/30/2023

Name 1 year 3 year 5 year 10 year Since Inception 09/22/2017
Name Balanced Income Portfolio* 1 year 0.93% 3 year -0.34% 5 year 1.49% 10 year — Since Inception 09/22/2017 1.39%
Name Balanced Income Composite Index** 1 year 1.74% 3 year -0.50% 5 year 1.34% 10 year — Since Inception 09/22/2017 1.24%

**Consists of four unmanaged benchmarks, Bloomberg Barclays U.S. Aggregate Float Adjusted Index (23%), Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index (USD Hedged) (15%), Bloomberg Barclays U.S. 0-5 Year TIPS Index (12%), and the Average Institutional Money Market Fund (50%).

Annual Investment Returns

Year Ended Balanced Income Portfolio*
Year Ended 2022 Balanced Income Portfolio* -4.66%
Year Ended 2021 Balanced Income Portfolio* 0.63%
Year Ended 2020 Balanced Income Portfolio* 3.94%
Year Ended 2019 Balanced Income Portfolio* 4.92%
Year Ended 2018 Balanced Income Portfolio* 1.29%

Historical Prices

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* Not available as an Individual Portfolio.

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.

Balanced Income 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.