IVY INVESTED 529 PLAN OVERVIEW
The Ivy InvestEdSM 529 Plan is a tax-advantaged 529 education savings plan designed to help prepare for future education goals (both higher education and K-12).
It offers two types of investment options: 10 InvestEd Portfolios comprised of underlying mutual funds and 19 Individual Fund Portfolios from Ivy Funds.
529 plans are offered by states, state agencies or educational institutions and are authorized by Section 529 of the Internal Revenue Code. The Ivy InvestEd 529 Plan is part of AZ529, Arizona’s Education Savings Plan, and is offered to Arizona residents as well as to residents of other states.
This website is designed to describe many of the features, benefits and risks of investing in the Ivy InvestEd 529 Plan.
Summary of plan enhancements
(As of Sept. 1, 2020)
- The number of InvestEd Portfolios (age-based and static options) has increased from 6 to 10.
- The InvestEd Portfolios have been renamed based on the equity allocation percentage in each portfolio. Each portfolio has a step down in 10% equity allocation increments.
- Two passively managed iShares Exchange-Traded Funds (ETFs) have been added as underlying investment options within the InvestEd Portfolios.*
- Three actively managed Ivy Funds have been added as underlying investment options within the InvestEd Portfolios.
- Ivy Distributors, Inc. (IDI) became the program manager of the Ivy InvestEd 529 Plan and the principal underwriter of the InvestEd Portfolios on Sept. 1, 2020. IDI assumed these duties from Waddell & Reed, Inc., which has served as program manager and principal underwriter since the inception of the plan.
*iShares® is a registered trademark of BlackRock (BlackRock, Inc. and its subsidiaries). Neither BlackRock nor the iShares® Funds make any representations regarding the advisability of investing in the InvestEd Portfolios.
Performance and low cost
Ivy INVESTED 529 Plan rankings by Savingforcollege.com
(As of December 31, 2020 — Performance rankings among national advisor-sold plans including maximum sales charge)
OUT OF 26 PLANS
OUT OF 25 PLANS
||OUT OF 22 PLANS
10-Year: #8 out of 18 plans. Savingforcollege.com helps individuals and financial advisors understand how to meet the challenge of paying for higher education. It tracks the universe of 529 plans and ranks those plans each quarter.1
Our plan offers
- Competitive pricing: The InvestEd Portfolios are competitively priced when compared with other advisor-sold plans. The total annual asset based fee for the InvestEd Portfolios range from 0.79 to 0.91%, with an average of 0.85%. The average advisor-sold total annual asset based fee is 0.89%.2
- Diversification: Includes a wide range of underlying funds within the InvestEd Portfolios as well as Individual Fund Portfolios offering both actively and passively managed funds.3
Significant Event On December 2, 2020, Waddell & Reed Financial, Inc. (“WDR”), the parent company of Ivy Investment Management Company, the investment adviser of the Ivy Funds, and Macquarie Management Holdings, Inc., the U.S. holding company for Macquarie Group Limited’s U.S. asset management business (“Macquarie”), announced that they had entered into an agreement whereby Macquarie would acquire the investment management business of WDR (the “Transaction”). The Transaction closed on April 30, 2021. The InvestEd Portfolios and the Ivy Funds, as part of Delaware Funds by Macquarie, are now managed by Delaware Management Company, and Delaware Distributors, L.P. is now the distributor of the Ivy Funds and the InvestEd Portfolios. Ivy Distributors, Inc. remains the program manager and distributor to the Ivy InvestEdSM 529 Plan, which is part of AZ529, Arizona’s Education Savings Plan. Ivy Distributors, Inc. is one of multiple financial institutions eligible to offer investments under AZ529.
¹Source: Savingforcollege.com Plan Composite Rankings — Each quarter Savingforcollege.com analyzes the investment performance figures for thousands of 529 portfolios and ranks the 529 savings plans from
best to worst. This analysis describes the movement among plan rankings during the one-, three-, five- and 10-year periods. Savingforcollege.com, 12/31/2020. Rankings include maximum sales load.
The Savingforcollege.com Plan Composite Rankings are derived using the plan’s relevant portfolio performance in seven unique asset allocation categories. The asset allocation categories used are 100%
Equity, 80% Equity, 60% Equity, 40% Equity, 20% Equity, 100% Fixed Income, and 100% Short-term. The plan composite ranking is determined by the average of its performance score in the seven categories. Plans
sold directly to consumers are ranked separately. See savingforcollege.com for more information about its methodology.
²Source: Morningstar “2019 529 College Savings Plan Landscape, Grading on a Curve.” Includes weighted average operating expense ratio, program management fee, state administration fee, and distribution fee. Fees and expenses are subject to change at any time. Please see most recent Ivy InvestEd 529 Plan Program Overview for additional information.
³Diversification does not ensure a profit or protect against loss in a declining market.
Risk factors: Past performance is not a guarantee of future results. An investment in the Ivy InvestEd 529 Plan is subject to risk. Your investment return and principal value will fluctuate, and your investment, when redeemed, may be worth more or less than your original cost.
The Ivy InvestEd 529 Plan is offered by Ivy Distributors, Inc. as part of AZ529, Arizona’s Education Savings Plan. Ivy Distributors, Inc. is one of multiple financial institutions eligible to offer investments under AZ529.
Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the Ivy InvestEd 529 Plan. This and other information is found in the InvestEd Portfolios prospectus, and the Ivy Funds prospectus, the Ivy InvestEd 529 Plan Program Overview, and the Ivy InvestEd 529 Plan Account Application. All of these items are available from these links or from a financial professional. Please read the prospectus carefully before investing.
Before investing, non-residents or taxpayers of states other than Arizona should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors than those offered under the Ivy InvestEdSM 529 Plan. Please consult your tax professional regarding your personal tax situation.
Accounts are not insured by the State of Arizona, AZ529, Arizona’s Education Savings Plan, the Arizona State Treasurer’s Office or any other governmental entity, Ivy Distributors, Inc., or any affiliated or related party, and neither the principal deposited nor any investment return is guaranteed by any of the above referenced parties. The Arizona State Treasurer’s Office is the Administrator of AZ529, Arizona’s Education Savings Plan.
The information provided may include references to concepts that have legal, accounting and tax implications. It is not to be construed as legal, accounting or tax advice, and is provided as general information to assist in the understanding the issues discussed. Ivy Distributors, Inc., nor their associates offer tax, legal, or accounting advice. You may want to consult with your accountant or tax professional to discuss your personal situation. Investment decisions should always be made based on an investor's specific financial needs, objectives, goals, time horizon and risk tolerance.