Target Portfolios

Bright Start features six different Target Portfolios that remain constant over time, allowing account owners to select a fixed-asset allocation.

The Target Portfolios allow you to choose among portfolios ranging from conservative to aggressive. Each Target Portfolio has a different investment strategy and risk level.

The Equity Portfolio is generally more aggressive and invests in equity-focused investment funds. For a moderate investor, the Balanced Portfolio offers a balanced approach with equity and fixed income investments. While the more conservative Fixed Income Portfolio invests in bond and cash equivalent type investments. The Target Portfolios do not change automatically as your beneficiary gets older.

Both passively and actively managed options are available.

Index Investment Options

Vanguard Funds

Our Index Investment Strategy utilizes Vanguard funds that adjust based on your beneficiary's age and your investment style. With the index approach the portfolios utilize exclusively passive or index investing.

Click on the individual portfolios to see underlying investment information including:

  • Fact Sheet
  • Prospectus
  • Annual Report

Stocks

Bonds

Cash

Index Equity Portfolio
286Index Equity Portfolio
Index Balanced Portfolio
288Index Balanced Portfolio
Index Fixed Income Portfolio
289Index Fixed Income Portfolio

Multi-Firm Investment Options

Multi-Firm Strategy

Our Multi-Firm Strategy utilizes multiple fund families, including T. Rowe Price, Vanguard, DFA, Dodge & Cox, and others. With the multi-firm approach the portfolios utilize active management along with passive or index investing.

Click on the individual portfolios to see underlying investment information including:

  • Fact Sheet
  • Prospectus
  • Annual Report

Stocks

Bonds

Cash

Multi-Firm Equity Portfolio
290Multi-Firm Equity Portfolio
Multi-Firm Balanced Portfolio
291Multi-Firm Balanced Portfolio
Multi-Firm Fixed Income Portfolio
292Multi-Firm Fixed Income Portfolio

A word about risk: Keep in mind that you can lose money by investing in a portfolio. Each of the Age-Based, Target, and Individual Fund Portfolios involves investment risks, which are described in the Program Disclosure Statement and should be considered before investing. For example, international investing, especially in emerging markets, has additional risks such as currency fluctuation, economic and political risks, and market volatility. Investing in small, medium, and international companies may increase the risk of fluctuations in the value of your investment and involves greater risks than investing in more established companies. Portfolios that invest in specific industries or sectors, such as real estate, have industry concentration risk. As an example, the portfolios that invest in real estate may perform poorly during a downturn in the real estate industry.

Portfolios that invest in bonds are subject to risks such as interest rate risk, credit risk, and inflation risk. In particular, as interest rates rise, the prices of bonds will generally fall, which can impact performance. It is important to note that the value of your account will fluctuate with market conditions. When you withdraw funds, you may have more or less than your actual investment. For more information on the portfolios and the underlying funds in which they invest, see the Program Disclosure Statement.