The Static Investment Portfolios invest their assets in diversified portfolios of underlying Allianz, PIMCO and TIAA-CREF mutual funds. These portfolios can be selected as either an all in one static investment solution, blended together to allow financial advisors to assist in constructing an appropriate, distinct investment glide path based upon the investors unique goals and risk tolerance or as a supplement to an investors overall portfolio allocation. 

Capital Appreciation Portfolio

The more aggressive of the two portfolios is invested in a broad range of global assets; primarily equity, fixed-income, commodities, real estate and alternative investments. The objective of this portfolio is capital appreciation. It is ideal for college-savers who are seeking to actively accumulate wealth, which makes it the logical choice for most investors during the earlier stages of the college-savings plan.

An investment in the Capital Appreciation Portfolio involves certain risks. In an environment where interest rates may trend upward, rising rates will negatively impact most bond funds, and fixed income securities held by a fund are likely to decrease in value. Bond funds and individual bonds with a longer duration (a measure of the expected life of a security) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities with shorter durations. Investing in non-U.S. securities entails additional risks, including political and economic risk and the risk of currency fluctuations; these risks may be enhanced in emerging markets. Investments in smaller companies may be more volatile than investments in larger companies. Certain underlying funds have derivative exposure. Use of derivative instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, management risk and the risk that a fund could not close out a position when it would be most advantageous to do so. Portfolios investing in derivatives could lose more than the principal amount invested in these instruments.

Capital Preservation Portfolio

More conservative in its approach, this portfolio is primarily invested in global fixed-income assets. Its objective is to limit declines in principal value and to provide real (after-inflation) returns. This portfolio is ideal both for those who are able to “front load” college savings plans at the onset with a significant amount of assets and for those whose children are nearing college age and wish to avoid the negative effects of a sudden market decline and the decrease in accumulated wealth that would likely ensue.