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Capital Preservation Option

100.00%NexBank High Yield Savings

Objective

The Capital Preservation Option seeks income consistent with the preservation of principal.

Strategy

The option invests 100% of its assets in the NexBank High-Yield Savings Account (HYSA). The HYSA is held in an omnibus savings account insured by the FDIC, which is held in trust by KHEAA at NexBank. Investments in the Capital Preservation Option earn a varying rate of interest. Interest on the HYSA will be compounded daily based on the actual number of days in a year (typically, 365/365 and 366/366 in leap years) and will be credited to the HYSA on a monthly basis. The interest rate is expressed as an Annual Percentage Yield (APY). The HYSA APY will be reviewed by NexBank on a periodic basis and may be recalculated as needed at any time. Investments in the Capital Preservation Option are pooled into the FDIC-insured omnibus savings account held in trust KHEAA at NexBank.

FDIC Insurance

Except for the Capital Preservation Option, investments in KY Saves 529 are not insured by the FDIC. FDIC insurance is provided for the Capital Preservation Option only, which invest in an FDIC-insured omnibus savings account held in trust by KHEAA at NexBank. Contributions to and earnings on the investments in the Capital Preservation Option are insured by the FDIC on a pass-through basis to each Account Owner up to the maximum amount set by federal law – currently $250,000. The amount of FDIC insurance provided to an Account Owner is based on the total of: (a) the value of an Account Owner’s investment in the Capital Preservation Option; and (b) the value of all other accounts held by the Account Owner at NexBank, as determined by NexBank and FDIC regulations. Neither KHEAA, the Commonwealth of Kentucky, nor the Program Manager or its affiliates are responsible for determining how an Account Owner’s investment in the Capital Preservation Option will be aggregated with other accounts held by the Account Owner at NexBank for purposes of the FDIC insurance.

No Other Guarantees

There is no other insurance and there are no other guarantees for the Capital Preservation Option. Therefore, like all of the options, neither your contributions into the Capital Preservation Option nor any investment return earned on your contributions are guaranteed by KHEAA, the Commonwealth of Kentucky, or the Program Manager or its affiliates. In addition, the Capital Preservation Option does not provide a guarantee of any level of performance or return.

Risks

To the extent that FDIC insurance applies, the option is primarily subject to income risk. Income Risk is the risk that the return of the underlying FDIC-insured HYSA will vary from week to week because of changing interest rates and that the return of the HYSA will decline because of falling interest rates.

Total Annual Asset-Based Fee

The Total Annual Asset-Based Fee is 0.20% as of February 25, 2019.

Historical Prices

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For more information about the Kentucky Educational Savings Plan Trust (KY Saves 529), call 877-598-7878 or visit www.kysaves.com to obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other important information. Read and consider it carefully before investing.

Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. You also may wish to contact directly your home state’s 529 college savings plan(s), or any other 529 plan, to learn more about those plans’ features, benefits, and limitations. You should also consult your financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision.

KY Saves 529 is administered by the Kentucky Higher Education Assistance Authority. Ascensus College Savings Recordkeeping Services, LLC, is the Program Manager. The Program Manager and its affiliates have overall responsibility for the program’s day-to-day operations, including investment advisory services, recordkeeping, and administrative services.

Investment returns will vary depending upon the performance of the Investment Options you choose. Except to the extent of FDIC insurance available for the Capital Preservation Option, depending on market conditions, you could lose all or a portion of your money by investing in KY Saves 529. Account Owners assume all investment risks as well as responsibility for any federal and state tax consequences.

Ugift is a registered service mark of Ascensus Broker Dealer Services, LLC.

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