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Investment Options

We've added a new Age-Based Strategy to most of the plans we manage. The Multi-Firm Age-Based Strategy provides you with access to portfolios that invest in funds offered by several different companies. These funds are selected from Fidelity's fund network platform representing a broad range of underlying fund managers.

With the addition of the Multi-Firm Strategy our programs offer options for every type of investor. To simplify the choice, and determine what is best for you, ask yourself two questions:

  • Do I want Fidelity to manage my asset allocation for me?
    If yes, then consider our Age-Based Portfolios. These are professionally managed to automatically become more conservative as the beneficiary nears college age.
  • Do I want to build my own customized asset allocation?
    If yes, then consider choosing the Custom Strategy, which allows you to select from a number of portfolios to create a plan that you design to meet your specific investment needs.

The information below gives more information about these options:

Age-Based Portfolios

Our Age-Based portfolios are managed to the beneficiary's approximate birth year with the asset allocation automatically becoming more conservative as the beneficiary nears college age. As the graphic below shows, these portfolios take a more aggressive approach during the early years of saving for college to take advantage of potential growth opportunities, while investing to preserve capital as the need to pay for qualified higher education expenses approaches.

Chart depicting Asset Allocations for Age-Based Portfolios as of December 31, 2011. The target asset allocation mix changes from more aggressive to more conservative as the child nears college age. Portfolio 2030 is for children born between 2011 to 2013. It allocates 12% of assets to Bonds and 88% of assets to equities. Portfolio 2027 is for children born between 2008 to 2010. It allocates 13% of assets to Bonds and 87% of assets to equities. Portfolio 2024 is for children born between 2005 to 2007. It allocates 19% of assets to bonds and 81% of assets to equities. Portfolio 2021 is for children born between 2002 to 2004. It allocates 2% of assets to short-term investments, 28% of assets to bonds and 70% of assets to equities. Portfolio 2018 is for children born between 1999 to 2001. It allocates 8% of assets to short-term investments, 36% of assets to bonds, and 56% of assets to equities. Portfolio 2015 is for children born between 1996 to 1998. It allocates 16% of assets to short-term investments, 41% of assets to bonds, and 43% of assets to equities. Portfolio 2012 is for children born between 1993 to 1995. It allocates 30% of assets to short-term investments, 41% of assets to bonds, and 29% of assets to equities. The College Portfolio is for students born in 1989 or earlier. It allocates 40% of assets to short-term investments, 40% of assets to bonds, and 20% of assets to equities.

Fidelity offers three types of Age-Based Portfolios:

  • Age-Based Strategy (Fidelity Funds) are designed to generate returns that attempt to beat a major market index over the long term. These portfolios invest solely in Fidelity funds that are managed by dedicated portfolio managers who are making investment decisions backed by Fidelity's proprietary investment research.
  • Age-Based Strategy (Fidelity Index Funds) are designed to generate returns that closely mirror the performance of a major market index over the long term. These portfolios invest solely in Fidelity Index funds, and are able to keep transaction costs and other expenses low because they are passively managed. This means that the securities currently held in the respective index determine your investments.
  • Age-Based Strategy (Multi-Firm Funds) like our Fidelity Fund Portfolios are designed to generate returns that attempt to beat a major market index over the long term and are managed by dedicated portfolio managers at Fidelity. These provide an opportunity to diversify your funds across multiple fund companies.

As the chart below shows, the beneficiary's birth year will help determine which age-based portfolio you'll invest in.

Which portfolio will I be invested in?

If your child was born in: Portfolio Invested in:
2011-2013 Portfolio 2030 (Fidelity Funds)
Portfolio 2030 (Fidelity Index)
Portfolio 2030 (Multi-Firm)
2008-2010 Portfolio 2027 (Fidelity Funds)
Portfolio 2027(Fidelity Index)
Portfolio 2027(Multi-Firm)
2005-2007 Portfolio 2024(Fidelity Funds)
Portfolio 2024 (Fidelity Index)
Portfolio 2024(Multi-Firm)
2002-2004 Portfolio 2021 (Fidelity Funds)
Portfolio 2021 (Fidelity Index)
Portfolio 2021 (Multi-Firm)
1999-2001 Portfolio 2018 (Fidelity Funds)
Portfolio 2018 (Fidelity Index)
Portfolio 2018 (Multi-Firm)
1996-1998 Portfolio 2015 (Fidelity Funds)
Portfolio 2015 (Fidelity Index)
Portfolio 2015 (Multi-Firm)
1993-1995 Portfolio 2012(Fidelity Funds)
Portfolio 2012 (Fidelity Index)
Portfolio 2012 (Multi-Firm)
1992 and Earlier College Portfolio (Fidelity Funds)
College Portfolio (Fidelity Index)
College Portfolio (Multi-Firm)

This chart assumes the child will begin attending college at approximately 18 years of age.

Custom Strategy

For investors who prefer to manage their own asset allocations, our Custom Strategy provides the flexibility you'll need to build your own customized approach to college saving and investing.

When you pursue a Custom Strategy, you're able to draw on four different types of portfolios.

  • Static Portfolios invest in several different funds managed by Fidelity and have an asset mix that doesn't change over time. You may choose between portfolios invested in Fidelity funds or Fidelity index funds. In Fidelity Funds portfolios, research and investment decisions are handled by Fidelity fund managers, Fidelity Index portfolios seek to mirror the performance of an index by investing in some or all of the securities contained in that index. This helps reduce management fees.
  • Individual Fund Portfolios invest in a single Fidelity fund or Fidelity Index fund. Options include a mix of equity, fixed income and money market funds.
  • Age-Based Portfolios are managed according to the approximate year the beneficiary is projected to enter college. Management and investment options are described in greater detail above.
  • The Bank Deposit Portfolio1 seeks preservation of principal and is designed for beneficiaries of any age. This portfolio is composed exclusively of a deposit in a FDIC insured interest-bearing account.*
Portfolios Portfolios
(Fidelity Index Funds)
Static Portfolios 100% Equity 100% Equity (Index)
70% Equity 70% Equity (Index)
Conservative Conservative (Index)
Individual Fund Portfolios Money Market Portfolio
(Cash Reserves)		 Spartan 500 Index
Total Market Index
International Index
Intermediate Treasury Index
Age-Based Portfolios Fidelity Funds Fidelity Index Funds
Multi-Firm
Portfolio
Bank Deposit Portfolio FDIC-insured interest-bearing account
  1. Although the underlying deposits are eligible for FDIC insurance, subject to applicable federal deposit insurance limits, the Units of the Bank Deposit Portfolio are not insured or guaranteed by the FDIC or any other government agency. You are responsible for monitoring the total amount of your assets on deposit at the depository bank, including amounts held directly at the depository bank. All such deposits held in the same ownership capacity at the depository bank are subject to aggregation and to the current FDIC insurance coverage limitation of $250,000. Please see a 529 fact kit for more details.

*Bank Deposit Portfolio is not an eligible investment selection for Trust Account Registrations.

The asset allocation strategy you choose for any Custom Strategy should be based on your investment objectives, risk tolerance, time horizon and other factors you determine to be important. Different asset allocations offer different balances between risk and potential returns. Generally, the greater the stock allocation, the greater the potential for long-term returns and the greater the risk of volatility, especially over the short term. Conversely, the greater the allocation to bonds and/or short-term investments, the lower the potential for high long-term returns but the lower the short-term risks.

The UNIQUE College Investing Plan, U.Fund® College Investing Plan, Delaware College Investment Plan and the Fidelity Arizona College Savings Plan are offered by the State of New Hampshire, MEFA, the State of Delaware and the Arizona Commission for Postsecondary Education, respectively, and managed by Fidelity Investments. If you or the designated beneficiary is not a New Hampshire, Massachusetts, Delaware or Arizona resident, you may want to consider, before investing, whether your state or the designated beneficiary's home state offers its residents a plan with alternate state tax advantages or other benefits.

Units of the Portfolios are municipal securities and may be subject to market volatility and fluctuation.

Please carefully consider each College Savings Plan's investment objectives, risks, charges and expenses before investing. For this and other information, call or write to Fidelity or visit fidelity.com for a free Fact Kit for Plans managed by Fidelity. Read it carefully before you invest or send money.

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