Investment Options

Each family has unique college savings goals, which is why we offer three different investment approaches comprised of 14 different portfolios. Each portfolio includes a variety of funds, which can help diversify your investment and lower your risk. Diversification cannot assure a profit or protect against loss in a declining market.

The UA College Savings Plan investment options were designed with individual family's needs in mind, so you can choose what's best for your situation and goals.

Our eight Enrollment-Based Portfolios* include a mix of stock and bond mutual funds. They start out more aggressively—when your child is younger—with a heavy concentration in stock funds. As your child approaches college age, they shift into higher percentages of lower-risk bond funds with the goal of protecting what you've earned.

Enrollment Based Portfolios* are periodically adjusted to become more conservative as the child gets closer to the year he or she expects to start attending college.

 

All portfolios are professionally managed by T. Rowe Price, feature low fees, and can be used at nearly any college in the country.

*The principal value of the Enrollment Based Portfolios is not guaranteed at any time, including at or after the target enrollment date, which is the approximate date when the child enters college. The portfolios invest in a broad range of underlying mutual funds that include stocks, bonds, and short-term investments and are subject to the risks of different areas of the market. The portfolios emphasize potential capital appreciation during the early phases of asset accumulation, balance the need for appreciation with the need for income as matriculation approaches, and focus more on income and principal stability while the child is in college. While moving assets into bond and money market funds can help lower investment risks, there is no guarantee against loss. The portfolios maintain a substantial allocation to equities both prior to and after the target enrollment date, which can result in greater volatility.

The neutral asset allocations depicted for the Enrollment Based Portfolios are as of the fourth quarter 2018. Asset allocations for each portfolio will vary and may be higher or lower than this example. Please refer to the Plan Disclosure Document for portfolio asset allocation details. For the most current allocations, please call 1-800-478-0003 to speak with a customer service representative.

Static Portfolios invest in a predetermined mix of stocks and bonds so that regardless of the beneficiary's age, the target asset allocations are designed to remain fixed throughout the life of the account. The portfolio's investment in many underlying funds means they will be exposed to the risks of many areas of the market. In general, a higher percentage of stock funds can result in greater risk and greater potential return. With this option, you have the flexibility to move your assets to a more conservative or aggressive portfolio. It is important to note there are limits on the number of times you can change investments each year.

All portfolios are professionally managed by T. Rowe Price, feature low fees, and can be used at nearly any college in the country.



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Total Equity Market Index Portfolio

This portfolio invests exclusively in the T. Rowe Price Total Equity Market Index Fund. The Total Equity Market Index Fund is a passively managed fund that seeks to closely track its benchmark, the S&P Total Market Index. The fund is passively managed so it generally does not reallocate its holdings based on changes in market conditions or outlook. As a result, its expenses are typically lower than the expenses of an actively managed fund. The fund seeks to match the performance of the entire U.S. stock market as represented by the S&P Total Market Index but does not attempt to fully replicate the index by holding each of those stocks. Index investing can provide a convenient and relatively low-cost way to approximate the performance of a particular market, but it may not offer the flexibility to shift assets toward stocks or sectors that are rising or away from stocks or sectors that are declining.

Total Equity Market Index 100%

Equity Portfolio

Emphasizing long-term capital appreciation, this all equity portfolio invests in a broad range of funds focused on domestic equity markets, with some exposure to international equity markets. It is designed for Account Holders who want a broadly diversified portfolio of primarily actively managed mutual funds that does not become more conservative over time. Because this portfolio invests in many underlying funds, it will have partial exposure to the risks of different areas of the market. This strategy is based on the understanding that the volatility associated with equity markets can be accompanied by the greatest potential for long-term capital appreciation.

Equity Index 500 30.70%
Blue Chip Growth 10.24%
Value 10.24%
International Value Equity 8.08%
International Stock 8.08%
Overseas Stock 8.08%
Small-Cap Stock 7.32%
Real Assets 5.00%
Emerging Markets Stock 4.28%
Mid-Cap Growth 3.99%
Mid-Cap Value 3.99%

Fixed Income Portfolio

This portfolio's primary objective is to seek a high level of current income with moderate price fluctuations by investing exclusively in the T. Rowe Price Spectrum Income Fund, which invests in a diversified group of other T. Rowe Price mutual funds. Most of these funds invest principally in U.S. fixed income securities; some in foreign bonds; one in money market securities; and one in common stocks of established, dividend-paying companies. The portfolio is subject to interest rate risk, credit risk, asset allocation risk, liquidity risk, international investing risk, emerging markets risk, and dividend-paying stock risk.The strategy is based on a lower risk investment approach that seeks to conserve principal and generate a reasonable level of return while minimizing the risks associated with equity markets.

Spectrum Income 100%

Balanced Portfolio

This moderately aggressive portfolio focuses on a mix of approximately 60% of its holdings invested in equity markets, including some exposure to international stocks, while seeking diversification through approximately 40% of its holdings allocated to fixed income. This strategy is based on accepting the risks associated with stocks, which have the potential to provide high returns, and seeking to balance the effects of volatility through diversification in fixed income securities.

Spectrum Income 40.00%
Equity Index 500 18.43%
Blue Chip Growth 6.14%
Value 6.14%
International Value Equity 4.85%
International Stock 4.85%
Overseas Stock 4.85%
Small-Cap Stock 4.39%
Real Assets 3.00%
Emerging Markets Stock 2.57%
Mid-Cap Growth 2.39%
Mid-Cap Value 2.39%

Money Market Portfolio

This portfolio invests exclusively in the T. Rowe Price U.S. Treasury Money Fund, which is a money market fund managed to provide a stable share price of $1.00 by investing in short-term, high-quality securities backed by the U.S. government and repurchase agreements thereon. This Portfolio is designed for Account Holders who are conservative investors or have a Beneficiary nearing college enrollment.

You could lose money by investing in the Money Market Portfolio. Although the money market fund in which your investment option invests ("the underlying fund") seeks to preserve its value at $1.00 per share, the underlying fund cannot guarantee it will do so. An investment in this investment option is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The underlying fund's sponsor has no legal obligation to provide financial support to the underlying fund, and you should not expect that the sponsor will provide financial support to the underlying fund at any time.

U.S. Treasury Money 100%
Prices Performance

 



† The neutral asset allocations depicted for these portfolios are for the fourth quarter 2018. Actual asset allocations for each portfolio will vary and may be higher or lower than this example. Please refer to the Plan Disclosure Document for portfolio asset allocation details. For more current target allocations, please call 1-800-478-0003 and speak with a customer service representative.

Our ACT Portfolio is a balanced portfolio with a mix of approximately 40% stock funds and 60% fixed-income funds. Like all of our portfolios, it is professionally managed by T. Rowe Price and features very low fees. This portfolio is an option if you seek a balanced, low-cost approach to investing.

Our ACT Portfolio offers our Tuition-Value Guarantee*, which allows you to purchase UA tuition credits now for future use. Your portfolio contributions are tracked and reported to you in both their monetary and corresponding UA tuition credit values. With this guarantee, you do not need to face the uncertainty of predicting future UA tuition, and it ensures your child's tuition costs will be covered regardless of future tuition increases. If your child attends a school other than UA , you can still take advantage of the full monetary value of your account.

Since our ACT Portfolio locks in the current tuition value at the University of Alaska, it can be a good choice if you believe your child may attend the University of Alaska. However, this investment option can be used to save for virtually any college in the country if you choose.

ALLOCATION RANGES

FUNDS RANGES

 

Equity Index 500 and/or Extended Equity Market Index Fund

 

35%-45%

 

U.S. Bond Enhanced Index Fund

 

15%-65%

 

Limited Duration Inflation Focused Bond Fund

 

0%-40%

 

U.S. Treasury Money Fund

 

0%-10%

 

You could lose money by investing in the Money Market Portfolio. Although the money market fund in which your investment option invests ("the underlying fund") seeks to preserve its value at $1.00 per share, the underlying fund cannot guarantee it will do so. An investment in this investment option is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The underlying fund's sponsor has no legal obligation to provide financial support to the underlying fund, and you should not expect that the sponsor will provide financial support to the underlying fund at any time.

The asset allocation for this portfolio is based on the target ranges above and may be higher or lower than this example. For the most current target allocation, please call 1-800-478-0003 to speak with a customer service representative.

*The guarantee ensures that your earnings will match or surpass the rate of tuition increases at UA. The guarantee begins July 1 following the date of your contribution and applies to distributions used to pay tuition at the University of Alaska. Remember that while the ACT Portfolio guarantees that your earnings will keep pace with tuition increases at UA when used to pay for tuition at UA, it does not guarantee the value of your account if you use the money elsewhere or for another purpose besides tuition. Investment results are based on market performance. If used for education expenses elsewhere, the full market value of the ACT Portfolio account is available.

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