Investment
Options
Prospectus
The
Mississippi Affordable College Savings Program has three investment options
to choose from:
Managed
Allocation Option1
The right investment strategy for college expenses can be a complex matter for
many families. That's why the Managed Allocation Option is the core investment
option for the Mississippi College Savings Program. Investing in the Managed
Allocation Option follows the time-tested method of using the number of years
an investor has for saving to determine the appropriate investment allocation.
Although there is no guarantee that the investment objectives will be met, the
option is designed to achieve returns that exceed tuition inflation while
preserving principal.
Investment portfolios based on your beneficiary's age combine equity, real estate,
fixed income, and money market mutual funds offered by the TIAA-CREF Institutional
Mutual Funds. Younger beneficiaries will have a higher exposure to equity and real
estate investments which will decrease significantly as they approach the age of
eighteen, as the following pie charts illustrate.
The pie charts above illustrate the current allocation of contributions for each Age
Band among the equity, real estate, fixed income and money market asset classes. For
the current specific asset allocation percentages applicable to each Age Band among
the pertinent TIAA-CREF Institutional Mutual Funds, see addendum I of the Program
Disclosure Booklet.
100%
Equity Option
The 100% Equity Option provides a blend of domestic and international
securities mutual funds which, depending on performance, may produce above-average
returns over the long term. Given the higher volatility of this option,
the risk of loss is greater, particularly over a shorter investment horizon.
Before investing in the 100% Equity Option, you should ask yourself whether
you can afford to supplement your savings if your investment fails to
keep pace with tuition inflation. The 100% Equity Option may be appropriate
for people who can tolerate greater risk and volatility for at least a
portion of their college investment in exchange for potentially higher
returns over time.
Guaranteed Option
This option provides additional safety and security that people may want for a portion of their college investment. Contributions to the Guaranteed Option will be invested in a funding agreement issued by TIAA-CREF Life Insurance Company that guarantees the Mississippi Affordable College Savings Trust Fund (the "Trust") (but not to the account owner or beneficiary)-both principal and a minimum annual rate of return of 3%, plus the opportunity for additional returns beyond the minimum rate.
Effective October 1, 2007, accumulations under the Funding Agreement for the Guaranteed Option as of September 30, 2007 will be credited to the Mississippi Affordable College Savings Trust Fund with an effective annual interest rate of 3.65%, and are guaranteed to earn this rate through September 30, 2008 subject to the claims-paying ability of TIAA-CREF Life Insurance Company. The Trust will be credited with an effective annual interest rate of 3.65% on contributions received and earnings on such contributions under the Funding Agreement for the Guaranteed Option from October 1, 2007 until further notice and are guaranteed to earn this rate through September 30, 2008, subject to the claims-paying ability of TIAA-CREF Life Insurance Company. Teachers Personal Investors Services, Inc. and TIAA-CREF Individual & Institutional Services, LLC, distribute securities products.
These choices vary in their investment strategy and degree of risk, allowing you to select an option or combination of options that best fits your needs and investment philosophy. For a description of these investment options, please refer to the Investment Option page and the Program Disclosure booklet.
