6 Target Portfolios
These diversified investment portfolios provide a set asset allocation of equity (stock), fixed income (bond), and money market investments. Your investment professional will help you assess your risk comfort level to choose from six portfolio options ranging from aggressive to conservative. Your portfolio will be rebalanced on an ongoing basis to maintain the targeted asset allocation. And unlike the age-based portfolios, they do not adjust their asset allocation based on the age of the beneficiary.
The most aggressive target portfolio (Fund 100) is composed primarily of equity mutual funds (58% domestic equity and 35% international equity with the remaining 7% in real asset funds). The most conservative portfolio (Fixed Income Fund) is composed of 50% fixed income and 50% money market mutual funds.
Click on “Read More” for information about each portfolio’s objectives, asset allocation, fees, and performance.
Fund 100 is the most aggressive of the target portfolios and seeks maximum capital appreciation by investing 100% of its net assets in a broad range of domestic equity, international equity, and real asset investment funds. This strategy is only appropriate for investors who have longer time horizons, who are comfortable with an increased level of risk while seeking higher longer-term returns, or who use this investment option as part of an overall college savings strategy that includes less aggressive investments.
Target Fund 100
Fund 80 is an aggressive target portfolio which seeks a high level of capital appreciation and some income by investing approximately 80% of its net assets in a broad range of domestic equity, international equity, and real asset investment funds with the remaining 20% invested in fixed income investment funds.
Target Fund 80
Fund 60 is a moderately aggressive target portfolio, which seeks capital appreciation and income by investing approximately 60% of its net assets in a broad range of domestic equity, international equity, and real asset investment funds with the remaining 40% invested in fixed income investment funds.
Target Fund 60
Fund 40 is a more conservative target portfolio, which seeks moderate income and capital appreciation by investing approximately 40% of its net assets in a broad range of domestic equity, international equity, and real asset investment funds with the remaining 60% invested in fixed income investment funds.
Target Fund 40
Fund 20 is an income-oriented target portfolio which seeks income and some capital appreciation by investing approximately 20% of its net assets in a broad range of domestic equity and international equity funds, 10% of its net assets in money market mutual funds, and 70% of its net assets in fixed income funds.
Target Fund 20
Fixed IncomeMoney Market
Fixed Income Fund
The Fixed Income Fund is the most conservative of the target portfolios and seeks to preserve principal with less volatility than an all-bond portfolio while providing modest current income by investing approximately 50% of its net assets in money market investment funds and 50% in fixed income investment funds.
Target Fixed Income Fund
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 which should be considered before investing. International investments involve risks such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging markets. Small and midsize companies may increase the risk of fluctuations in the value of your investment. Portfolios that invest in bonds are subject to risks such as interest rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds will fall. The value of your account will fluctuate with market conditions. When you withdraw funds, you may have more or less than your total contributions to the account. For more risk information on the portfolios and the underlying funds in which they invest, see the Program Disclosure Statement.