Selecting an investment portfolio may seem overwhelming for some. However, the Texas College Savings Plan offers a number of investment options and strategies that you can tailor to align with your risk tolerance, time horizon and financial situation.
The Plan offers a wide range of portfolios with underlying investments managed by T. Rowe Price, Artisan, Vanguard, DFA, Dodge and Cox and Dreyfus. Additionally, you can choose to follow an index investment strategy, a blended investment strategy, or a combination of both.
Should your goals or needs change, you have the flexibility to rebalance your account or allocate future contributions to different portfolios. Under current federal regulations, account owners are allowed to change the allocation of existing assets twice per calendar year or whenever you name a new beneficiary.
Your account is placed in one of six portfolios based on the beneficiary’s age and your choice of a blended strategy (active and index investments) or an index strategy (index investments). The Age-based portfolios automatically adjust over time, becoming more conservative as the beneficiary ages.
Hover over a pie chart below for details. The center of the chart shows asset allocations.
0-6 YEARS PORTFOLIO
Seeks long-term growth by investing primarily in equity investments. A percentage of assets are invested in fixed income investments to provide some protection from equity volatility.
7-9 Years Portfolio
Seeks growth by investing in an allocation weighted toward equity investments versus fixed income investments.
10-11 Years Portfolio
Seeks moderate growth by investing in a balanced asset allocation slightly weighted toward equity investments over fixed income investments.
12-14 Years Portfolio
Seeks moderate growth by investing in a balanced asset allocation weighted equally between equity and fixed income investments.
15-17 Years Portfolio
Seeks conservative growth by investing in a combination of equity, fixed income and money market investments weighted toward fixed income.
Ages 18 Years and Over Portfolio
Seeks preservation of capital with minimal growth by investing primarily in fixed income and money market investments to maintain stability.
The investment option’s performance reflects changes in asset allocations over time relating to the age of beneficiaries whose assets are invested in that investment option and assets invested in applicable Portfolios on behalf of particular beneficiaries are automatically transferred to another Portfolio when beneficiaries reach a specified age, and may not remain invested in the referenced Portfolio for a portion of the period reported in the performance chart.
You may choose to invest in any one, or any combination of the portfolios below. While the Static Portfolios allow for more control over your account, it will be up to you to choose a new portfolio, or portfolios, should your needs or goals change.
Hover over a pie chart below for details. The center of the chart shows asset allocations.
100% EQUITY PORTFOLIO
Seeks long-term growth by investing solely in equity investments.
Balanced Portfolio
Seeks moderate growth by investing in a balanced allocation weighted toward equity investments and fixed income investments.
100% Vanguard Total Bond Market Index Institutional Plus
Seeks to closely track the total return of the Barclays Capital U.S. Aggregate Index by investing in domestic fixed income and money market instruments.
Inflation-Protected Bond Portfolio
100% DFA Inflation-Protected Securities I
Seeks to provide investors inflation protection and income consistent with investments in inflation-indexed securities.
Each underlying investment has its own risks. For example, the prices of small-cap stocks are generally more volatile than large company stocks. There are special risks inherent to international investing, including currency, political, social and economic risks. Investments in growth stocks may be more volatile than other securities. With value investing, if the marketplace does not recognize that a security is undervalued, the expected price increase may not occur. Fixed income investing entails credit and interest risks. When interest rates rise, bond prices generally fall, and the underlying Fund’s share price can fall. Diversification does not guarantee a profit or protect against loss.
1You could lose money by investing in this investment option. 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.
Derivative instruments, securities whose values depend on the performance of an underlying security or asset, may entail potentially higher volatility and risk of loss compared to traditional stock or bond investments.
The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.
1. Performance data for each portfolio are based on the total return of a hypothetical account, including reinvestment of dividends and distributions, net of the Texas College Savings Plan program and administration fees.
2. Expense ratios for each of the portfolios include underlying investment expenses and plan fees.
3. If applicable, the “Net Expense Ratio” for the Portfolios takes into account a voluntary expense limitation on the underlying investment without which performance would have been less. These undertakings may be modified or terminated at any time. Please see the Plan Description for more detailed information regarding any applicable expense limitations or waivers.
4. The Plan Manager and the Board have agreed to voluntarily waive the Program Management Fee and Administrative Fee, respectively (but, in each case, not below zero) and/or reimburse expenses to the extent necessarily to assist the U.S. Government Money Market Portfolio in attempting to maintain at least a 0.00% return. There is no guarantee that the U.S. Government Money Market Portfolio will maintain this return. This undertaking may be amended or withdrawn at any time.
5. You could lose money by investing in the money market investment option. 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.
* These “year to date” returns are cumulative, are not annualized, and do not reflect sales charges (no matter which sort option is selected). These returns would be lower if sales charges were taken into consideration. Short-term returns may not be indicative of longer term performance, which should also be considered when making investment decisions.
The performance data quoted represents past performance, which does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.
1. Performance data for each portfolio are based on the total return of a hypothetical account, including reinvestment of dividends and distributions, net of the Texas College Savings Plan program and administration fees.
2. Since inception returns of less than 12 months are cumulative returns. Since inception of greater than 12 months are annualized returns based upon a true day count and a 365-day/year calculation.
3. Expense ratios for each of the portfolios include underlying investment expenses and plan fees.
4. If applicable, the “Net Expense Ratio” for the Portfolios takes into account a voluntary expense limitation on the underlying investment without which performance would have been less. These undertakings may be modified or terminated at any time. Please see the Plan Description for more detailed information regarding any applicable expense limitations or waivers.
5. The Plan Manager and the Board have agreed to voluntarily waive the Program Management Fee and Administrative Fee, respectively (but, in each case, not below zero) and/or reimburse expenses to the extent necessarily to assist the U.S. Government Money Market Portfolio in attempting to maintain at least a 0.00% return. There is no guarantee that the U.S. Government Money Market Portfolio will maintain this return. This undertaking may be amended or withdrawn at any time.
6. You could lose money by investing in the money market investment option. 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.
Locate historical prices for any of our portfolios for the period of your choice — a specific date or weeks or months. To search for a specific day's price, only a beginning date is needed.
1. The Plan Manager and the Board have agreed to voluntarily waive the Program Management Fee and Administrative Fee, respectively (but, in each case, not below zero) and/or reimburse expenses to the extent necessarily to assist the U.S. Government Money Market Portfolio in attempting to maintain at least a 0.00% return. There is no guarantee that the U.S. Government Money Market Portfolio will maintain this return. This undertaking may be amended or withdrawn at any time.
2. You could lose money by investing in the money market investment option. 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.
