Ohio's 529 Plan: Capital Preservation Investment Option

Explore This Lower-Risk College Savings Plan

Capital preservation options are lower-risk investments that may appeal to risk-averse investors, parents with children near college age, or those with children currently enrolled in college. This portfolio adheres to an exchange restriction so that an account owner cannot transfer assets in an account directly from the Interest Accumulation Portfolio to an investment option that is considered a competing investment option.

Capital Preservation Option Investment Objectives Asset Category Underlying Investments Investment Style/ Characteristics
Vanguard Interest Accumulation Portfolio Show Details Seeks to provide current income while preserving capital by investing all of its assets in a Short-Term Reserves Account.  Principal-Protected Portfolios Invests in funding agreements issued by high credit quality insurance companies and the Vanguard Federal Money Market Fund, which invests in U.S. government securities. Invests in the Vanguard Short-Term Reserves Account, which holds fixed-rate funding agreements issued by several highly rated insurance companies, and shares of Vanguard Federal Money Market Fund. Show Details

Vanguard Interest Accumulation Option (Cash/Short-Term Investments) - Investment Strategy

Vanguard Interest Accumulation Portfolio is structured to protect principal by investing in funding agreements purchased from insurance companies that are: 1) deemed to be financially sound based on Vanguard's analysis, 2) highly rated by major credit-rating agencies (e.g., Standard and Poor's and Moody's), and 3) approved by Vanguard Fiduciary Trust Company. The cash management strategy for the Portfolio is to minimize the cash position invested in Vanguard Federal Money Market Fund while accommodating the daily liquidity needs of the Portfolio and reducing underwriting risk and transaction charges.

Restrictions: An account owner cannot transfer assets in an account directly from Interest Accumulation Portfolio to an investment option that is considered a competing investment option. Thus, reallocations from the Interest Accumulation Portfolio cannot be directly reallocated to the:

  • Vanguard Short-Term Inflation-Protected Bond Index Option (TIPS)
  • Fifth Third 529 Savings Account Option
  • Fifth Third 529 CD Option

An account owner can first direct the transfer to an investment option, other than a competing investment option, for at least 90 days. After 90 days, the account owner may then instruct Ohio’s 529 Plan to transfer the applicable amount to the Vanguard Short-Term Inflation-Protected Bond Index Option, Fifth Third 529 Certificate of Deposit or the Fifth Third 529 Savings Account, or any other competing investment option. Account owners should note that moving allocations from the Interest Accumulation Portfolio to a noncompeting investment option for at least 90 days, and then to the desired competing investment option, will each count toward the limited number of times an account owner is permitted to direct changes in investment options for an account within a calendar year.

Go Into Detail
CollegeAdvantage Offering Statement And Participation Agreement 

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