Michigan Education Savings Program (MESP)

Multi-Fund Investment Options

Want investment options with more choices when it comes to diversity and risk? If so, Multi-Fund investments are worth a closer look.

Some investors want added control over their investment option’s diversification and investment strategy. If you’re one of those people, the Multi-Fund Investment Options available through the Michigan Education Savings Program (MESP) might be the investment type for you.

With the Multi-Fund investment options, you can select from a range of investment types suitable for a variety of risk profiles and asset allocation blends. Choices may include options such as international investments, which are investments made entirely outside the US and balanced funds, which try to provide a mix of both safety and modest returns.

Most investment options also include index and actively managed choices. Index funds are designed to track a benchmark index. Active management, by contrast, is managed by a person using research, forecasts, and their own experience to make investment decisions.

No matter which option(s) you choose, it’s important to note that once you’ve selected an investment, the funds will remain there until you select another.

Changing Your Investments

Once you invest in a particular investment option, you can transfer contributions and any earnings to another investment option only twice per calendar year or upon a transfer of funds to a MESP account for a different beneficiary.

Periodically Review Your Investments

It’s a good idea to periodically re-evaluate your investment strategy as your goals, investment horizon, and personal situation change — for example, annually at tax time, on a yearly basis if your income changes, or upon the birth of another child.


How Multi-Fund Investment Options Work

These investment options seek to provide options for people who prefer to select an investment option for its asset allocation. Each multi-fund investment option has a different investment objective and investment strategy.

The allocations to the underlying mutual funds in the multi-fund investment options do not change automatically as the beneficiary ages as they do in the age-based options. Investments will remain in the multi-fund investment options until the account owner instructs the Plan to move them to another investment option. The Board may change the asset allocations and underlying mutual funds for these investment options (as well as for the other investment options) at any time.

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Multi-Fund Investment Options
Multi-Fund Investment Options
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INTERNATIONAL EQUITY INDEX OPTION

(Risk Level — Aggressive)

Investment Objective. This Investment Option seeks to provide a favorable long-term total return, mainly through capital appreciation.
Investment Strategy. Each of the mutual funds in which this Investment Option invests is considered an ’index fund,” meaning that it attempts to track a benchmark index.

  80.00%International Equities
  20.00%Emerging Markets Equities
+ X

GLOBAL EQUITY INDEX OPTION

(Risk Level — Aggressive)

Investment Objective. This Investment Option seeks to provide a favorable long-term total return, mainly through capital appreciation.
Investment Strategy. Each of the mutual funds in which this Investment Option invests is considered an ’index fund,” meaning that it attempts to track a benchmark index.

  70.00%Equities
  25.00%International Equities
    5.00%Emerging Markets Equities
+ X

BALANCED OPTION

Investment Objective. This Investment Option seeks to provide a favorable long-term total return by investing in a balanced mix of mutual funds that invest primarily in equity securities and mutual funds that invest primarily in debt securities.
Investment Strategy. This Investment Option invests in multiple mutual funds. 84% of the Investment Option’s assets are invested in mutual funds that are considered ’index funds,” meaning that they intend to track a benchmark index. The remaining 16% of the Investment Option’s assets are invested in mutual funds that are actively managed.

  54.00%Equities
    6.00%REIT
  32.00%Fixed Income
    8.00%Inflation-Linked Bonds
+ X

100% FIXED-INCOME OPTION

(Risk Level — Moderate)

Investment Objective. This Investment Option seeks to provide a moderate long-term rate of return primarily through current income.
Investment Strategy. This investment Option invests 75% of its assets in an ’index fund,” meaning that the fund attempts to track a benchmark index, and the remaining 25% of its assets in a mutual fund that is actively managed.

  80.00%Bonds
  20.00%Inflation-Linked Bonds
+ X

Multi-Fund Investment Options


Multi-Fund Investment Options
PORTFOLIO NAME ALLOCATION PORTFOLIO OBJECTIVE
INTERNATIONAL
EQUITY
INDEX
OPTION
(Risk Level — Aggressive)

Investment Objective. This Investment Option seeks to provide a favorable long-term total return, mainly through capital appreciation.
Investment Strategy. Each of the mutual funds in which this Investment Option invests is considered an ’index fund,” meaning that it attempts to track a benchmark index.

  80.00%International Equities
  20.00%Emerging Markets Equities
Read More X

View Underlying Mutual Funds

GLOBAL
EQUITY
INDEX
OPTION
(Risk Level — Aggressive)

Investment Objective. This Investment Option seeks to provide a favorable long-term total return, mainly through capital appreciation.
Investment Strategy. Each of the mutual funds in which this Investment Option invests is considered an ’index fund,” meaning that it attempts to track a benchmark index.

  70.00%Equities
  25.00%International Equities
    5.00%Emerging Markets Equities
Read More X

View Underlying Mutual Funds

BALANCED
OPTION
Investment Objective. This Investment Option seeks to provide a favorable long-term total return by investing in a balanced mix of mutual funds that invest primarily in equity securities and mutual funds that invest primarily in debt securities.
Investment Strategy. This Investment Option invests in multiple mutual funds. 84% of the Investment Option’s assets are invested in mutual funds that are considered ’index funds,” meaning that they intend to track a benchmark index. The remaining 16% of the Investment Option’s assets are invested in mutual funds that are actively managed.

  54.00%Equities
    6.00%REIT
  32.00%Fixed Income
    8.00%Inflation-Linked Bonds
Read More X

View Underlying Mutual Funds

100%
FIXED-INCOME
OPTION
(Risk Level — Moderate)

Investment Objective. This Investment Option seeks to provide a moderate long-term rate of return primarily through current income.
Investment Strategy. This investment Option invests 75% of its assets in an ’index fund,” meaning that the fund attempts to track a benchmark index, and the remaining 25% of its assets in a mutual fund that is actively managed.

  80.00%Bonds
  20.00%Inflation-Linked Bonds
Read More X

View Underlying Mutual Funds

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