Kentucky Education Savings Plan Trust

Age-Based Investment Options

This is the simple, all-in-one investment option, which changes from a growth strategy when your child is young to hold strategy as their college years approach.

You don’t need to be a savvy investor to participate in the Kentucky Education Savings Plan Trust (KESPT). It’s not about choosing ‘the right’ investment, it’s about choosing the investment that’s right for you. For many people, an Age-Based Investment Option can be that choice. Because it automatically shifts from aggressive-to-conservative investments as your child ages, you maximize the opportunities of your investment horizon without needing to manually rebalance your investment options each year.


How Age-Based Investment Options Work

The Managed Allocation Option seeks to match the investment objective and level of risk to the investment horizon by factoring in the child’s current age and the number of years before they turn 18. Depending on this age, contributions to these Investment Options will be placed in various age bands, each of which has a different investment objective and investment strategy.

As discussed in more detail below, the age bands for younger Beneficiaries seek a favorable long-term return by primarily investing in mutual funds that primarily invest in equity and real estate securities, which may have greater potential for returns than debt securities, but which also have greater risk than debt securities. As a Beneficiary nears college age, the age bands invest less in mutual funds that invest in equity and real estate securities and more in mutual funds that invest in debt securities and in other investments that seek to preserve principal.

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Managed Allocation Option
(Risk level shifts from aggressive to conservative as the Beneficiary ages)
Managed Allocation Option
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0‑4 YEARS

The investments in this age-band seek long-term growth by investing primarily in equity mutual funds. A percentage of assets are invested in fixed income mutual funds to help provide some protection from equity volatility.

 43.70%Equities
 29.20%Int'l Equities
 8.10%Real Estate
 19.00%Bonds
 0.00%Funding Agreement
+ X

5‑8 YEARS

The investments in this age-band seek long-term growth by investing primarily in equity mutual funds. A percentage of assets are invested in fixed income mutual funds to help provide some protection from equity volatility.

 37.80%Equities
 25.20%Int'l Equities
 7.00%Real Estate
 30.00%Bonds
 0.00%Funding Agreement
+ X

9‑10 YEARS

The investments in this age-band seek growth by investing in an allocation weighted toward equity mutual funds verses fixed income and money market mutual funds.

 32.40%Equities
 21.60%Int'l Equities
 6.00%Real Estate
 40.00%Bonds
 0.00%Funding Agreement
+ X

11‑12 YEARS

The investments in this age-band seek moderate growth by investing in a more balanced asset allocation between equity mutual funds and fixed income mutual funds.

 27.00%Equities
 18.00%Int'l Equities
 5.00%Real Estate
 50.00%Bonds
 0.00%Funding Agreement
+ X

13‑14 YEARS

The investments in this age-band seek conservative growth by investing in an asset allocation weighted toward fixed income mutual funds versus equity mutual funds.

 22.70%Equities
 15.10%Int'l Equities
 4.20%Real Estate
 53.00%Bonds
 5.00%Funding Agreement
+ X

15 YEARS

The investments in this age-band seek conservative growth by investing in an asset allocation weighted toward fixed income mutual funds versus equity mutual funds.

 19.50%Equities
 12.90%Int'l Equities
 3.60%Real Estate
 54.00%Bonds
 10.00%Funding Agreement
+ X

16 YEARS

The investments in this age-band seek conservative growth by investing in an asset allocation weighted toward fixed income mutual funds versus equity mutual funds.

 16.70%Equities
 11.20%Int'l Equities
 3.10%Real Estate
 49.00%Bonds
 20.00%Funding Agreement
+ X

17 YEARS

The investments in this age-band seek conservative growth by investing in an asset allocation weighted toward fixed income mutual funds versus equity mutual funds.

 14.10%Equities
 9.30%Int'l Equities
 2.60%Real Estate
 44.00%Bonds
 30.00%Funding Agreement
+ X

18+ YEARS

The investments in this age-band seek conservative growth by investing in an asset allocation weighted toward fixed income mutual funds versus equity mutual funds.

 10.80%Equities
 7.20%Int'l Equities
 2.00%Real Estate
 30.00%Bonds
 50.00%Funding Agreement
+ X

Managed Allocation Option

(Risk level shifts from aggressive to conservative as the Beneficiary ages)

Age-Based Investment Options
BENEFICIARY'S AGE ALLOCATION INVESTMENT OBJECTIVE
0‑4 YEARS
The investments in this age-band seek long-term growth by investing primarily in equity mutual funds. A percentage of assets are invested in fixed income mutual funds to help provide some protection from equity volatility.

 43.70%Equities
 29.20%Int'l Equities
 8.10%Real Estate
 19.00%Bonds
 0.00%Funding Agreement
Read More X

View Underlying Mutual Funds

5‑8 YEARS
The investments in this age-band seek long-term growth by investing primarily in equity mutual funds. A percentage of assets are invested in fixed income mutual funds to help provide some protection from equity volatility.

 37.80%Equities
 25.20%Int'l Equities
 7.00%Real Estate
 30.00%Bonds
 0.00%Funding Agreement
Read More X

View Underlying Mutual Funds

9‑10 YEARS
The investments in this age-band seek growth by investing in an allocation weighted toward equity mutual funds verses fixed income and money market mutual funds.

 32.40%Equities
 21.60%Int'l Equities
 6.00%Real Estate
 40.00%Bonds
 0.00%Funding Agreement
Read More X

View Underlying Mutual Funds

11‑12 YEARS
The investments in this age-band seek moderate growth by investing in a more balanced asset allocation between equity mutual funds and fixed income mutual funds.

 27.00%Equities
 18.00%Int'l Equities
 5.00%Real Estate
 50.00%Bonds
 0.00%Funding Agreement
Read More X

View Underlying Mutual Funds

13‑14 YEARS
The investments in this age-band seek conservative growth by investing in an asset allocation weighted toward fixed income mutual funds versus equity mutual funds.

 22.70%Equities
 15.10%Int'l Equities
 4.20%Real Estate
 53.00%Bonds
 5.00%Funding Agreement
Read More X

View Underlying Mutual Funds

15 YEARS
The investments in this age-band seek conservative growth by investing in an asset allocation weighted toward fixed income mutual funds versus equity mutual funds.

 19.50%Equities
 12.90%Int'l Equities
 3.60%Real Estate
 54.00%Bonds
 10.00%Funding Agreement
Read More X

View Underlying Mutual Funds

16 YEARS
The investments in this age-band seek conservative growth by investing in an asset allocation weighted toward fixed income mutual funds versus equity mutual funds.

 16.70%Equities
 11.20%Int'l Equities
 3.10%Real Estate
 49.00%Bonds
 20.00%Funding Agreement
Read More X

View Underlying Mutual Funds

17 YEARS
The investments in this age-band seek conservative growth by investing in an asset allocation weighted toward fixed income mutual funds versus equity mutual funds.

 14.10%Equities
 9.30%Int'l Equities
 2.60%Real Estate
 44.00%Bonds
 30.00%Funding Agreement
Read More X

View Underlying Mutual Funds

18+ YEARS
The investments in this age-band seek conservative growth by investing in an asset allocation weighted toward fixed income mutual funds versus equity mutual funds.

 10.80%Equities
 7.20%Int'l Equities
 2.00%Real Estate
 30.00%Bonds
 50.00%Funding Agreement
Read More X

View Underlying Mutual Funds

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