Capital Preservation Option
Do you value safety over risk?
The Capital Preservation Option1 has an interest rate that changes semi-annually and seeks income consistent with the preservation of principal. The current APY rate of this portfolio can be found on the Price and Performance Page, located here.
Note: The Guaranteed Option2 was closed to new contributions after February 22, 2019.
1The Capital Preservation Option invests all of its assets in a Funding Agreement, “Funding Agreement”, issued by the Principal Life Insurance Company. The Funding Agreement is a separate account contract between the Principal Life Insurance Company and the Kentucky Higher Education Assistance Authority. The annualized yield will be fixed for six month periods, updating semi-annually.
2In February 2023, or earlier depending on certain conditions, any remaining assets in the Guaranteed Option will automatically move to the Capital Preservation Option or a similar investment available at that time. You may also exchange or withdraw money from the Guaranteed Option at any time. Remember, under federal law, you’re allowed to make two exchanges per calendar year.
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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. 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.
INVESTMENTS ARE NOT FDIC INSURED, MAY LOSE VALUE AND ARE NOT BANK GUARANTEED.