Conservative Allocation Option

Overview

Unit value as of  
Day change
Total annual asset-based fees  
Inception date   6/12/2020

Investment objective

This Investment Option seeks to provide moderate long-term total return mainly through current income.


Investment strategy

To varying degrees, each of these Investment Options invests in certain funds that mainly invest in equity securities, including:

  • U.S. equity securities across all capitalization ranges;
  • Foreign equity securities of large- and mid-capitalization companies, including the securities of issuers located in developed countries and emerging-market countries; and
  • Stocks of U.S. companies across all capitalization ranges within the real estate sector, including equity real estate investment trusts (commonly known as “REITs”).

Also, to varying degrees, each of these Investment Options invests in certain funds that mainly invest in debt securities, including:

  • A wide spectrum of public, investment-grade, taxable, fixed-income securities in the U.S., including government, corporate and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities;
  • A diversified group of high-yielding, higher-risk corporate bonds (commonly known as “junk bonds”) with medium- and lower-range credit quality ratings; and
  • Publicly issued U.S. Treasury Inflation-Protected Securities (commonly known as “TIPS”).

Funds that mainly invest in equity securities may have greater potential for returns than funds that mainly invest in debt securities, but may also have greater risk of loss than funds that mainly invest in debt securities. The Aggressive Allocation Option allocates more assets to funds that mainly invest in equity securities (including real estate securities) than the Moderate Allocation Option, and the Moderate Allocation Option allocates more assets to funds that mainly invest in equity securities (including real estate securities) than the Conservative Allocation Option. The Conservative Allocation Option allocates more assets to funds that mainly invest in debt securities than the Moderate Allocation Option, and the Moderate Allocation Option allocates more assets to funds that mainly invest in debt securities than the Aggressive Allocation Option. In addition to its investments in funds, the Conservative Allocation Option also invests in a funding agreement. See Guaranteed Investment Option in the Program Description for details about the funding agreement.


Risk level

Conservative

Moderate

Aggressive

Learn more about how risk potential could affect your investment by completing our Risk Tolerance Questionnaire.


Historical performance

Average annual total returns as of 5/31/2024

Category Conservative Allocation Option Benchmark
Year to date 2.11% 2.33%
1 year 8.32% 9.15%
3 years 1.12% 1.35%
5 years
10 years
Since inception 3.79% 3.97%

Average annual total returns as of 3/31/2024

Category Conservative Allocation Option Benchmark
Year to date 2.11% 2.34%
1 year 8.22% 9.07%
3 years 1.94% 2.20%
5 years
10 years
Since inception 3.96% 4.15%

The performance data quoted represent past performance and are net of all fees and expenses. Past performance is not a guarantee of future results. Your returns and the principal value of your account will fluctuate, so your investment may be worth more or less than the original value when you withdraw your money. Current performance may be lower or higher than the performance quoted above. Investors cannot invest directly in a benchmark.

All performance figures in the table, with the exception of the performance figures in the year-to-date column, represent the average annual compound rate of the total return. All figures in the year-to-date column represent cumulative, nonannualized returns.

Asset allocation

  • 18.00% U.S. Equity
  • 9.00% International Equity
  • 3.00% Real Estate
  • 50.00% Fixed Income
  • 20.00% Capital Preservation

Underlying funds

Ticker Underlying fund Allocation
TIEIX Nuveen Equity Index Fund 18.00%
TCIEX Nuveen International Equity Index Fund 7.20%
TEQLX Nuveen Emerging Markets Equity Index Fund 1.80%
VGSNX Vanguard Real Estate Index Fund 3.00%
VBMPX Vanguard Total Bond Market Index 35.00%
VWEAX Vanguard High-Yield Corporate Fund 5.00%
SCHP Schwab US TIPS ETF™ 4.00%
STIP iShares 0-5 Year TIPS Bond ETF 6.00%
N/A TIAA-CREF Life Funding Agreement 20.00%

The above table lists the underlying investments in which this investment option invests and the percentage of the investment option’s assets allocated to each of its investments. Please keep in mind that if you invest in this investment option, you will own this investment option; you will not own shares in any of the above mutual funds. For more information on investment options, fees and expenses, including cost examples, please read the Program Description.

529 Investment Lead

Jeremy Thiessen

Jeremy Thiessen

Head of Investment Strategies

To learn more about the Michigan Education Savings Program, its investment objectives, risks, charges and expenses please see the Program Description at MIsaves.com. Read it carefully. Investments in the Program are neither insured nor guaranteed and there is the risk of investment loss. Check with your home state to learn if it offers tax or other benefits such as financial aid, scholarship funds or protection from creditors for investing in its own 529 plan.

The material contained on this website is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or investment strategy and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor or suggest any specific course of action. Investment decisions should be based on an investor’s objectives and circumstances.

TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, is the distributor and underwriter for the Michigan Education Savings Program.