Edvest College Savings Plan

Stable Principal Investment Portfolios

If you have a short investment time horizon or your objective is capital preservation, the Stable Principal Investment Portfolios may be right for you.

Maybe you’ve been saving for a while and your account has been steadily growing - but the college years are just around the corner. You’re happy with what you’ve got and you don’t want any surprises. It’s no longer about getting big returns, it’s about making sure what you’ve got is safe. Perhaps you just want to make sure the contributions to your account are protected.

Either way, you might want to consider the Stable Principal Investment Portfolios, which may safeguard your money with relatively little risk.

Changing Your Investments

Once you invest in a particular investment portfolio, you can transfer contributions and any earnings to another investment portfolio up to twice per calendar year or upon a transfer of funds to an Edvest account for a different beneficiary. However, transfers (including when there is a change of Beneficiary) from the Principal Plus Interest Portfolio to the Cash Equivalents and Bank CD Portfolio are not permitted. If this restriction changes, you will be notified of any such change.

Periodically Review Your Investments

It’s a good idea to periodically re-evaluate your investment strategy as your goals, investment time horizon, and personal situation change — for example, annually at tax time, on a yearly basis if your income changes, or upon the birth of another child.


How the Stable Principal Investment Portfolios Work

This investment seeks to preserve capital and provide a stable return. You may want to consider it if you have a short investment time horizon and are looking for a conservative investment with a low level of risk.

Stable Principal Investment Portfolios
(Risk Level – Conservative)
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CASH EQUIVALENTS AND BANK CD PORTFOLIO

(Risk Level — Conservative)

Investment Objective. This Investment Portfolio seeks income consistent with the preservation of principal.

Investment Strategy. This Investment Portfolio seeks to achieve its objective by investing in assets that include money market instruments, including shares of money market mutual funds, or other short-term investments, as well as in CDs, with a maturity not to exceed 24 months, insured by the FDIC and issued by banks with a main, home, or branch office located in Wisconsin (“Eligible Banks”). Interest rates payable on the underlying CDs will be set by the issuing Eligible Banks based on current market conditions and are not uniform. Money market instruments are not guaranteed or insured by the FDIC.

Contributions to the Cash Equivalents and Bank CD Portfolio are deposited in an account and invested in money market instruments until they are periodically transferred to a deposit broker for the purchase of CDs. Upon maturity, CD assets will be reinvested in new CDs with a maturity not to exceed 24 months.

The Cash Equivalents and Bank CD Portfolio may invest, without limitation, in money market instruments, including shares of money market mutual funds, or other short-term investments.

 100.00%Money market instruments, including shares of money market mutual funds, Bank CDs or other short-term investments
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PRINCIPAL PLUS INTEREST

(Risk Level — Conservative)

Investment Objective. This Investment Portfolio seeks to preserve capital and provide a stable return.

Investment Strategy. The assets in this Investment Portfolio are allocated to a funding agreement issued by TIAA-CREF Life, which is an affiliate of TFI, to the Wisconsin College Savings Program Trust as the policyholder on behalf of the Plan. The funding agreement provides a minimum guaranteed rate of return on the amounts allocated to it by the Investment Portfolio. The minimum effective annual interest rate will be neither less than 1% nor greater than 3% at any time. The guarantee is made by the insurance company to the policyholder, not to Account Owners. In addition to the guaranteed rate of interest to the policyholder, the funding agreement allows for the possibility that additional interest may be credited as declared periodically by TIAA-CREF Life.

Transfers (including when there is a change of Beneficiary) from the Principal Plus Interest Portfolio to the Cash Equivalents and Bank CD Portfolio are not permitted. If this restriction changes, you will be notified of any such change.

Accumulations (including contributions and earnings) under the Funding Agreement for the Principal Plus Interest Investment Portfolio will be credited to Edvest with an effective annual interest rate of 2.00%, and are guaranteed to earn this rate through December 31, 2020, subject to the claims-paying ability of TIAA-CREF Life.



100.00%Funding Agreement
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Stable Principal Investment Portfolios

(Risk Level – Conservative)

Stable Principal Investment Portfolios
INVESTMENT PORTFOLIO NAME ALLOCATION INVESTMENT PORTFOLIO OBJECTIVE
CASH EQUIVALENTS AND BANK CD
PORTFOLIO
(Risk Level — Conservative)

Investment Objective. This Investment Portfolio seeks income consistent with the preservation of principal.

Investment Strategy. This Investment Portfolio seeks to achieve its objective by investing in assets that include money market instruments, including shares of money market mutual funds, or other short-term investments, as well as in CDs, with a maturity not to exceed 24 months, insured by the FDIC and issued by banks with a main, home, or branch office located in Wisconsin (“Eligible Banks”). Interest rates payable on the underlying CDs will be set by the issuing Eligible Banks based on current market conditions and are not uniform. Money market instruments are not guaranteed or insured by the FDIC.

Contributions to the Cash Equivalents and Bank CD Portfolio are deposited in an account and invested in money market instruments until they are periodically transferred to a deposit broker for the purchase of CDs. Upon maturity, CD assets will be reinvested in new CDs with a maturity not to exceed 24 months.

The Cash Equivalents and Bank CD Portfolio’s allocation to CDs may change when the Portfolio experiences a significant increase in cash inflows or redemption requests, for short-term defensive purposes, or due to a lack of investment opportunity to invest in CDs which meet the Portfolio’s investment criteria. This change may be for extended periods if there is an extended need for liquidity in the Portfolio or an extended lack of investment opportunity.

The Cash Equivalents and Bank CD Portfolio may invest, without limitation, in money market instruments, including shares of money market mutual funds, or other short-term investments.

100.00%Money market instruments, including shares of money market mutual funds, Bank CDs or other short-term investments
Read More X
PRINCIPAL
PLUS
INTEREST
(Risk Level — Conservative)

Investment Objective. This Investment Portfolio seeks to preserve capital and provide a stable return.

Investment Strategy. The assets in this Investment Portfolio are allocated to a funding agreement issued by TIAA-CREF Life, which is an affiliate of TFI, to the Wisconsin College Savings Program Trust as the policyholder on behalf of the Plan. The funding agreement provides a minimum guaranteed rate of return on the amounts allocated to it by the Investment Portfolio. The minimum effective annual interest rate will be neither less than 1% nor greater than 3% at any time. The guarantee is made by the insurance company to the policyholder, not to Account Owners. In addition to the guaranteed rate of interest to the policyholder, the funding agreement allows for the possibility that additional interest may be credited as declared periodically by TIAA-CREF Life.

Transfers (including when there is a change of Beneficiary) from the Principal Plus Interest Portfolio to the Cash Equivalents and Bank CD Portfolio are not permitted. If this restriction changes, you will be notified of any such change.

Accumulations (including contributions and earnings) under the Funding Agreement for the Principal Plus Interest Investment Portfolio will be credited to Edvest with an effective annual interest rate of 2.00%, and are guaranteed to earn this rate through December 31, 2020, subject to the claims-paying ability of TIAA-CREF Life.

100.00%Funding Agreement
Read More X

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