Direct 529 Plan Changes To Be Implemented Sept. 8-9
College Advantage will be adjusting some of the investment options offered in the Direct 529 Plan per one of the investment manager’s, Vanguard, recommendations. These changes were approved by the Ohio Tuition Trust Authority (OTTA) Board and will be implemented as of Sept. 8-9, 2016. The following changes will be made for you automatically.
The current Vanguard Prime Money Market Option will be closed. In its place, a new Vanguard Federal Money Market Option will be launched, and will be named Vanguard Money Market Option. This exchange will be performed to be in compliance with the new Securities and Exchanges Commission (SEC) rules. This investment option exchange is non-taxable and will not count toward your twice-per-calendar year limit on exchanges because it is initiated by CollegeAdvantage.
Vanguard Federal Money Market Fund will replace the Vanguard Prime Money Market Fund in the Vanguard Income Portfolio; in the Advantage Age-Based Portfolio (AABP) for Age Band 6-9, 10-12, 13-16, and 17+; and Vanguard Conservative Age-Based Portfolio for Age Band 19+. The underlying fund changes do not result in an actual exchange for your CollegeAdvantage account. The replacement of the Vanguard Prime Money Market Option for the Vanguard Money Market Option is simply one of the investment options within portfolio.
Additionally, the OTTA Board approved Vanguard’s recommended changes to its ready-made age-based and ready-made risk-based offerings. The changes include increasing allocations to a portion of the international component of its equity and bond allocations. All of the changes to the CollegeAdvantage Direct Plan Investment Options will occur automatically. This change will remove the home country bias in the Vanguard Ready-Made Risk Based and Vanguard Ready-Made Age-Based Portfolios. The affected portfolios are Vanguard Aggressive Growth Index Portfolio, Vanguard Growth Index Portfolio, Vanguard Moderate Growth Index Portfolio, Vanguard Conservative Growth Index Portfolio, and Vanguard Income Portfolio. Remember, these investment option exchanges are non-taxable and will not count toward your twice-per-calendar year limit on exchanges because they are initiated by CollegeAdvantage.
A new Offering Statement detailing these adjustments will be available online on Sept. 8. Additionally, the new Offering Statement will also be mailed to all current CollegeAdvantage Direct Plan account owners during in September.
If you have any additional questions after you have read the Offering Statement, please call our Customer Service Department at 1-800-AFFORD-IT (233-6734) or visit us.
Posted on August 22, 2016