- The Portfolio invests in Underlying Funds that invest primarily in equity investments in order to seek long-term growth.
- The Portfolio is subject to greater market risk and volatility than the other Age-Based and Asset Allocation Portfolios.
- The Portfolio has a strategic allocation of approximately 57% U.S. equity securities, 6.5% real estate securities, 31.5% international equity securities and 5% fixed income securities.
- The Portfolio may be more suitable for investors with a higher risk tolerance.
Fees and Investment Minimums
The expense ratio is an estimate of the asset-based expenses for the Portfolio and includes estimated underlying fund expenses, the program management fee and any applicable distribution and service fee. Please see the expense tables in the Disclosure Booklet for more information.
Total return assumes reinvestment of income.
The MSCI World Index (net of foreign withholding taxes) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The performance of the index does not reflect the deduction of expenses associated with a fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of the fund expenses, including sales charges if applicable. Total return figures assume the reinvestment of dividends. The dividend is reinvested after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. An individual cannot invest directly in an index.
The Barclays U.S. Aggregate Index is an unmanaged index that represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. The performance of the index does not reflect the deduction of expenses associated with a fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of the fund expenses, including sales charges if applicable. An individual cannot invest directly in an index.
The Aggressive Portfolio Broad Benchmark is a composite benchmark of unmanaged indexes that corresponds to the Portfolio's model allocation and consists of the MSCI World Index (net of foreign withholding taxes) (95%) and Barclays U.S. Aggregate Index (5%).
The BofA Merrill Lynch 3-Month U.S. Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. Each month the index is rebalanced and the issue selected is the outstanding Treasury Bill that matures closest to, but not beyond 3 months from the rebalancing date. The performance of the index does not reflect the deduction of expenses associated with a fund, such as investment management fees. By contrast, the performance of the Fund reflects the deduction of the fund expenses, including sales charges if applicable. An individual cannot invest directly in an index.
Total return assumes reinvestment of dividends and capital gains distributions from the Underlying Funds and reflects the deduction of any sales charges, where applicable. Performance may reflect the waiver of a portion of the Underlying Fund's advisory or administrative fees for certain periods since the inception date. If fees had not been waived, performance would have been less favorable.
©2016, American Bankers Association, CUSIP Database provided by the Standard & Poor's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc. All rights reserved.
Certain Underlying Funds invest in equity securities (such as stocks) that are more volatile and carry more risks than some other forms of investment. The price of equity securities may rise or fall because of economic or political changes or changes in a company's financial condition, sometimes rapidly or unpredictably. These price movements may result from factors affecting individual companies, sectors or industries selected for the Underlying Fund's portfolio or the securities market as a whole, such as changes in economic or political conditions. When the value of the Underlying Fund's securities goes down, the Portfolio's investment in the Underlying Fund decreases in value.
Some of the Underlying Funds invest more or less of their assets in securities of smaller cap companies (small and mid cap companies) which may be riskier, more volatile and vulnerable to economic, market and industry changes than securities of larger, more established companies. As a result, share price changes of the Underlying Funds may be more sudden or erratic than the prices of other equity securities, especially over the short term.
Underlying Funds that invest in foreign currencies and foreign issuers are subject to additional risks, including political and economic risks, greater volatility, civil conflicts and war, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, expropriation and nationalization risks, and less stringent investor protection and disclosure standards of foreign markets. These risks are magnified in countries in "emerging markets."
The Underlying Funds may use derivatives. Derivatives may be riskier than other investments because they may be more sensitive to changes in economic and market conditions and could result in losses that significantly exceed the original investment. Many derivatives create leverage thereby causing the Portfolio or Underlying Fund to be more volatile than it would be if it had not used derivatives. Derivatives also expose the Portfolio and Underlying Funds to counterparty risk (the risk that the derivative counterparty will not fulfill its contractual obligation), including credit risk of the derivative counterparty.
Certain Underlying Funds are highly concentrated in real estate securities including REITs. These securities are subject to the same risks as direct investments in real estate and mortgages, and their value will depend on the value of the underlying real estate interests. These risks include default, prepayments, changes in value resulting from changes in interest rates and demand for real and rental property, and the management skill and creditworthiness of REIT issuers. The Underlying Funds will indirectly bear their proportionate share of expenses, including management fees, paid by each REIT in which they invest in addition to the expenses of the Underlying Funds.
The Underlying Funds and Portfolios could experience a loss and their liquidity may be negatively impacted when selling securities to meet redemption requests by shareholders. The risk of loss increases if the redemption requests are unusually large or frequent or occur in times of overall market turmoil or declining prices. Similarly, large purchases of an Underlying Fund or Portfolio shares may adversely affect an Underlying Fund's or Portfolio's performance to the extent that an Underlying Fund or Portfolio is delayed in investing new cash and is required to maintain a larger cash position than it ordinarily would.
The Underlying Funds advised by SSgA FM will seek to replicate Index returns regardless of the current or projected performance of the Index or of the actual securities comprising the Index. As a result, the Underlying Fund's performance may be less favorable than that of a portfolio managed using an active investment strategy. The structure and composition of the Index will affect the performance, volatility, and risk of the Index and, consequently, the performance, volatility, and risk of the Underlying Fund. The Underlying Fund's performance may not match that of the Index.
The Portfolios invest in Underlying Funds so the Portfolio's investment performance and risks are directly related to the performance and risks of the Underlying Funds. The Accounts will indirectly bear the expenses charged by the Underlying Funds. JPMorgan provides services to and receives fees from the Underlying Funds advised by JPMIM and with JPMIM as Investment Manager, a majority of the assets in the Advisor Plan will generally be invested in Underlying Funds advised by JPMIM. The Portfolios' investments in the Underlying Funds benefit JPMorgan, and it is through these fees that JPMIM and JPMDS receive their only compensation with respect to the Advisor Plan. In addition, in selecting the actively managed Underlying Funds, JPMIM limits its selection to Funds in the JPMorgan family of mutual funds. JPMIM does not consider or canvas the universe of unaffiliated investment companies available, even though there may be unaffiliated investment companies that may be more appropriate for the Portfolios that have superior returns. As a result, the Portfolios' investments in an Underlying Fund can result in a conflict of interest between the Investment Manager and plan participants.
To the extent that the Underlying Funds are ETFs, a Portfolio will be exposed to the risks inherent in certain ETF investments, such as passive strategy/index risk, index tracking risk, trading issues and fluctuation of net asset value and share premiums and discounts.
Economies and financial markets throughout the world are becoming increasingly interconnected, which increases the likelihood that events or conditions in one country or region will adversely impact markets or issuers in other countries or regions. Securities in an Underlying Fund's portfolio may underperform securities in comparison to general financial markets, a particular financial market or other asset classes, due to a number of factors, including inflation, interest rates, global demand for particular products or resources, natural disasters or events, terrorism, regulatory events and government controls.
|NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE|
Before you invest, consider whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.
The Comptroller of the State of New York and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering the Advisor-Guided Plan. Neither the State of New York nor its agencies insures accounts or guarantees the principal deposited therein or any investment returns on any amount or investment portfolio.
Ascensus Broker Dealer Services, Inc. and Ascensus Investment Advisors, LLC serve as Program Manager and Recordkeeping and Servicing Agent, respectively, and are responsible for day-to-day operations, including effecting transactions. J.P. Morgan Investment Management Inc. serves as the Investment Manager. J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase& Co. JPMorgan Distribution Services, Inc. markets and distributes the Advisor-Guided Plan. JPMorgan Distribution Services, Inc. is a member of FINRA/SIPC.
New York’s 529 College Savings Program includes two separate 529 plans. The Advisor-Guided Plan is sold exclusively through financial advisors who have entered into Advisor-Guided Plan selling agreements with JPMorgan Distribution Services, Inc. You may also participate in the Direct Plan, which is sold directly by the Program and offers lower fees. However, the investment options available under the Advisor-Guided Plan are not available under the Direct Plan. The fees and expenses of the Advisor-Guided Plan include compensation to the financial advisor. Be sure to understand the options available before making an investment decision.
For more information about New York's 529 Advisor-Guided College Savings Program, you may contact your financial advisor or obtain an Advisor-Guided Plan Disclosure Booklet and Tuition Savings Agreement at www.ny529advisor.com or by calling 1-800-774-2108. This document includes investment objectives, risks, charges, expenses, and other information. You should read and consider it carefully before investing.
The Program Administrators, the Program Manager and JPMorgan Distribution Services, Inc., and their respective affiliates do not provide legal or tax advice. This information is provided for general educational purposes only. This is not to be considered legal or tax advice. Investors should consult with their legal or tax advisors for personalized assistance, including information regarding any specific state law requirements.