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Commencement Portfolio

Overview

Unit Price as of 06/14/2024 $10.85
Change $0.00 0.00%
Expense Ratio as of 06/14/2024 0.53%
Inception Date 09/16/2022

Investment Objective

The Portfolio seeks to provide capital appreciation and current income consistent with its current asset allocation.

Investment Strategy

The Commencement Portfolio is the portfolio that all Target Enrollment Portfolios are expected to assume within 4 years after their designated enrollment year. Any money that remains in the Target Enrollment Portfolio you’re invested in would transfer into the Commencement Portfolio, where it can continue to grow tax-free at a static asset allocation. The Commencement Portfolio is also the portfolio that many conservative investors may choose to invest in because it aligns with a low-risk preference, while including a small allocation to equities as a hedge against inflation. The underlying funds are:

Vanguard Total Stock Market Index Fund, Vanguard Total International Stock Index Fund, Vanguard Total Bond Market II Index Fund, Vanguard Total International Bond Index Fund, and Vanguard Short-Term Reserves Account.

The fund’s indirect stock holdings are a diversified mix of U.S. and foreign large-, mid-, and small-capitalization stocks. The fund’s indirect bond holdings are a diversified mix of short-, intermediate-, and long-term U.S. government, U.S. agency, and investment-grade U.S. corporate bonds; mortgage-backed and asset-backed securities; and government, agency, corporate, and securitized investment-grade foreign bonds issued in currencies other than the U.S. dollar (but hedged by Vanguard to minimize currency exposures).

Through its investment in Vanguard Institutional Total Stock Market Index Fund, the Portfolio indirectly invests in primarily large-capitalization U.S. stocks and, to a lesser extent, mid-,small-, and micro-capitalization U.S. stocks. The Fund holds a broadly diversified collection of securities that, in the aggregate, approximates the total market capitalization of all the U.S. common stocks regularly traded on the New York Stock Exchange and Nasdaq.

Through its investment in Vanguard Total International Stock Index Fund, the Portfolio indirectly invests in international stocks.

Through its investment in Vanguard Total Bond Market II Index Fund, the Portfolio also 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 measures 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 also 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 1 year. To minimize currency risk associated with investment in bonds denominated in currencies other than the U.S. dollar, the Fund will attempt to hedge its foreign currency exposure.

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 (SICs), and shares of Vanguard Federal Money Market Fund. Funding agreements and SICs are interest-bearing contracts that are structured to preserve principal and accumulate interest earnings over the life of the investment. Funding agreements generally pay interest at a fixed interest rate and have fixed maturity dates that normally range from 2 to 5 years. SICs pay a variable interest rate and have an average duration range between 2 and 5 years. The Federal Money Market Fund invests primarily in high-quality, short-term money market instruments issued by the U.S. government and its agencies and instrumentalities.

Note:
Vanguard Short-Term Reserves Account’s investments in Vanguard Federal Money Market Fund are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Federal Money Market Fund seeks to preserve the value of the investment at $1 per share, it cannot guarantee that it will do so. It is possible that Vanguard Short-Term Reserves Account may lose money by investing in the Fund. The Vanguard Group, Inc., has no legal obligation to provide financial support to the Fund, and there should be no expectation that the sponsor will provide financial support to the Fund at any time.

Investment Risks

The Portfolio is subject to the risks of the underlying bond funds, which include interest rate risk, credit risk, income risk, call risk, prepayment risk, extension risk, income fluctuation risk, country/regional risk, currency hedging risk, nondiversification risk, manager risk, index sampling risk, and derivatives risk. The Portfolio is subject to the risks of the underlying stock funds, which include stock market risk, country/regional risk, currency risk, and emerging markets risk.

Average Annual Returns - Updated Monthly as of 05/31/2024

Name 1 year 3 year 5 year 10 year Since Inception 09/16/2022
Name Commencement Portfolio 1 year 4.97% 3 year 5 year 10 year Since Inception 09/16/2022 4.50%
Name Vanguard Commencement Composite**(Benchmark) 1 year 5.29% 3 year 5 year 10 year Since Inception 09/16/2022 4.60%

**Consists of the CRSP US Total Market Index, the FTSE Global All Cap ex US Index, the Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Bond Index, the Bloomberg Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index Hedged, FTSE 3-Month Treasury Bill Index and Ryan Labs 3 year GIC Index. The Spliced Bloomberg Barclays U.S. Aggregate Float Adjusted Index consists of the Barclays U.S. Aggregate Bond Index through December 31, 2009; the Barclays U.S. Aggregate Float Adjusted Index from January 1, 2010 through September 29, 2016; and the Bloomberg Barclays U.S. Aggregate Float Adjusted Index thereafter.

Annual Investment Returns

Year Ended Commencement Portfolio
Year Ended 2023 Commencement Portfolio 6.08%
Year Ended 2022 *** Commencement Portfolio 0.30%
Year Ended 2021 Commencement Portfolio
Year Ended 2020 Commencement Portfolio
Year Ended 2019 Commencement Portfolio

*** Since inception on 09/16/2022

Historical Prices

06/14/2024 $10.85
06/13/2024 $10.85
06/12/2024 $10.84
06/11/2024 $10.81
06/10/2024 $10.81

Search for more historical price information

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For more information about the Arkansas Brighter Future Direct Plan, call 1.800.587.7301 or click here to obtain a Program Description and Participation Agreement, which includes investment objectives, risks, charges, expenses and other information; read and consider it carefully before making an investment or sending money.

Please Note: Before you invest, consider whether your or the beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state's qualified tuition program. You should also consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state's 529 college savings plan(s), or any other 529 plan, to learn more about those plans' features, benefits, and limitations. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

The Arkansas Brighter Future Direct Plan is a college tuition savings program sponsored by the State of Arkansas and administered by the Arkansas Section 529 Plan Review Committee ("Committee"). Ascensus Broker Dealer Services, LLC, the Program Manager, and its affiliates have overall responsibility for the day-to-day operations, including investment advisory services, recordkeeping, administrative services and marketing of the Arkansas Brighter Future Direct Plan. The Vanguard Group, Inc., serves as Investment Manager for the plan. The Arkansas Brighter Future Direct Plan's Portfolios invest in: (i) mutual funds; or (ii) an FDIC-insured omnibus savings account held in trust by the Committee at Sallie Mae Bank. Except for the Savings Portfolio, investments in the Arkansas Brighter Future Direct Plan are not insured by the FDIC. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.

Investment returns will vary depending upon the performance of the Arkansas Brighter Future Direct Plan Portfolios you choose. Except to the extent of FDIC insurance available for the Savings Portfolio, you could lose all or a portion of your money by investing in the Arkansas Brighter Future Direct Plan, depending on market conditions. Account Owners assume all investment risks as well as responsibility for any federal and state tax consequences.

Not FDIC-Insured (except for the Savings Portfolio). No Bank, State or Federal Guarantee. May Lose Value.