Connecticut Higher Education Trust (CHET)

Investing in the Managed Allocation Option follows the method of using the number of years an investor has for saving to determine the appropriate investment allocation. The Managed Allocation Option is the core investment for the Connecticut Higher Education Trust. Although there is no guarantee that the investment objectives will be met, this option offers the opportunity to invest aggressively when the beneficiary is young, and over time, more conservatively, thus creating a balanced approach. Aged-based investment portfolios combine equity, real estate, fixed income, and money market mutual funds offered by the TIAA-CREF Institutional Mutual Funds. Younger beneficiaries will have a higher exposure to equities and real estate investments which will decrease significantly as they approach college age.

The High Equity Option provides a blend of domestic and international securities mutual funds, which may provide greater investment return opportunities over the long-term when compared to an investment option with lower exposure to equities. Given the higher volatility of this option, the risk of loss can be greater over a shorter investment horizon.

Your contributions to the Principal Plus Interest Option will be allocated to a vehicle that guarantees CHET both principal and a minimum annual interest rate of 3%, plus the opportunity for additional returns. The guarantee of a minimum rate of interest is made to CHET by TIAA-CREF Life Insurance Company, but is not made directly to the account owner or beneficiary. This investment option provides stability that people may want for a portion of their college investment.

The Program allocates your contributions under this Investment Option among a combination of equity Mutual Funds in accordance with the investment policy adopted by the Trustee, after receiving guidelines recommended by the Program Manager. The investment objective of this Investment Option is to provide the opportunity for long-term capital growth while avoiding the uncertainty associated with actively managed portfolios. However, the value of your Account will fluctuate based on the performance of the Mutual Funds underlying this Investment Option. The percentage of contributions that will be allocated to each of the Mutual Funds may be changed at any time by the Trustee.

The Program allocates your contributions under this Investment Option between the TIAA-CREF Institutional Bond Fund and the TIAA-CREF Institutional Inflation-Linked Bond Fund in accordance with the investment policy adopted by the Trustee. The investment objective of the 100% Fixed-Income Option is to provide the opportunity for favorable long-term total returns through current income, while maintaining the goals of preserving capital and providing a degree of protection from inflation. The percentage of your contributions that will be allocated to each Fund may be changed by the Trustee at any time.