Connecticut Higher Education Trust (CHET) Connecticut State Treasurer

Fees & Expenses

The information below describes the fees and expenses that you would pay if you contribute to a particular investment option in the Connecticut Higher Education Trust (CHET). These fees are indirectly paid out of the assets of your account and are made up of a Direct Plan Manager Fee, Underlying Mutual Fund Expenses, and an Administrative Fee. Except for the fees listed below, there are currently no other fees, charges or penalties imposed by or payable to the Plan in connection with opening or maintaining an account.


Age-Based Investment Options

Conservative Managed Allocation Option

Fees and Expenses
Investment Options Direct Plan Manager Fee(1)(2) Administrative Fee(1)(3) Estimated Underlying Mutual Fund Expenses Total Annual Asset-Based Fees(5)
Age Band 0‑4 0.12% 0.01% 0.23% 0.36%
Age Band 5‑8 0.12% 0.01% 0.23% 0.36%
Age Band 9‑10 0.12% 0.01% 0.24% 0.37%
Age Band 11‑12 0.12% 0.01% 0.26% 0.39%
Age Band 13‑14 0.12% 0.01% 0.27% 0.40%
Age Band 15 0.12% 0.01% 0.23% 0.36%
Age Band 16 0.12% 0.01% 0.17% 0.30%
Age Band 17 0.12% 0.01% 0.15% 0.28%
Age Band 18+ 0.12% 0.01% 0.07% 0.20%

Moderate Managed Allocation Option

Fees and Expenses
Investment Options Direct Plan Manager Fee(1)(2) Administrative Fee(1)(3) Estimated Underlying Mutual Fund Expenses Total Annual Asset-Based Fees(5)
Age Band 0‑4 0.12% 0.01% 0.19% 0.32%
Age Band 5‑8 0.12% 0.01% 0.20% 0.33%
Age Band 9‑10 0.12% 0.01% 0.24% 0.37%
Age Band 11‑12 0.12% 0.01% 0.24% 0.37%
Age Band 13‑14 0.12% 0.01% 0.23% 0.36%
Age Band 15 0.12% 0.01% 0.23% 0.36%
Age Band 16 0.12% 0.01% 0.23% 0.36%
Age Band 17 0.12% 0.01% 0.21% 0.34%
Age Band 18+ 0.12% 0.01% 0.17% 0.30%

Aggressive Managed Allocation Option

Fees and Expenses
Investment Options Direct Plan Manager Fee(1)(2) Administrative Fee(1)(3) Estimated Underlying Mutual Fund Expenses Total Annual Asset-Based Fees(5)
Age Band 0‑4 0.12% 0.01% 0.15% 0.28%
Age Band 5‑8 0.12% 0.01% 0.16% 0.29%
Age Band 9‑10 0.12% 0.01% 0.17% 0.30%
Age Band 11‑12 0.12% 0.01% 0.18% 0.31%
Age Band 13‑14 0.12% 0.01% 0.20% 0.33%
Age Band 15 0.12% 0.01% 0.22% 0.35%
Age Band 16 0.12% 0.01% 0.19% 0.32%
Age Band 17 0.12% 0.01% 0.14% 0.27%
Age Band 18+ 0.12% 0.01% 0.16% 0.29%
Guaranteed Investment Option
Fees and Expenses
Investment Option Direct Plan Manager Fee(1)(2) Estimated Underlying Fund Expenses Administrative Fee(1)(3) Total Annual Asset-Based Fees(5)
Principal Plus Interest(7) None None None None
Multi-Fund Investment Options
Fees and Expenses
Investment Option Direct Plan Manager Fee(1)(2) Administrative Fee(1)(3) Estimated Underlying Fund Expenses Total Annual Asset-Based Fees(5)
Global Equity Index Option 0.12% 0.01% 0.08% 0.21%
Active Global Equity Option 0.12% 0.01% 0.67% 0.80%
High Equity Balanced Option 0.12% 0.01% 0.16% 0.29%
Active Fixed-Income Option 0.12% 0.01% 0.48% 0.61%
Single-Fund Investment Options
Fees and Expenses
Investment Option Direct Plan Manager Fee(1)(2) Administrative Fee(1)(3) Estimated Underlying Fund Expenses Total Annual Asset-Based Fees(5)
Global Tactical Asset Allocation Option 0.12% 0.01% 0.99% 1.12%
International Equity Index Option 0.12% 0.01% 0.06% 0.19%
Index Fixed-Income Option 0.12% 0.01% 0.12% 0.25%
Money Market(6) 0.12% 0.01% 0.14% 0.27%
Social Choice 0.12% 0.01% 0.19% 0.32%
U.S. Equity Index Option 0.12% 0.01% 0.05% 0.18%

(1) Although the Direct Plan Manager Fee and the Administrative Fee are deducted from an Investment Option, not from your Account, each Account in the Investment Option indirectly bears its pro rata share of the Direct Plan Manager Fee and the Administrative Fee as these fees reduce the Investment Option’s return.

(2) Each Investment Option (with the exception of the Principal Plus Interest Option) pays the Direct Plan Manager a fee at an annual rate of 0.12% (12 basis points) of the average daily net assets of the Investment Option. The Direct Plan Manager fee is subject to further reductions if total assets in the Direct Plan reach certain levels.

(3) For its services administering the Direct Plan, each Investment Option (with the exception of the Principal Plus Interest Option) pays to the Trustee an Administrative Fee at an annual rate of 0.01% of the average daily net assets of the Investment Option.

(4) The percentages set forth in this column are based on the expense ratios of the mutual funds in which an Investment Option invests. The amounts are calculated using the expense ratio reported in each mutual fund’s most recent prospectus available prior to the printing of this Supplement weighted according to the Investment Option’s allocation among the mutual funds in which it invests. Although these expenses are not deducted from an Investment Option’s assets, each Investment Option (other than the Principal Plus Interest Option) indirectly bears its pro rata share of the expenses of the mutual funds in which it invests as these expenses reduce such mutual fund’s return.

(5) These figures represent the estimated weighted annual expense ratios of the mutual funds in which the Investment Options invest plus the Administrative Fee and the fee paid to the Direct Plan Manager.

(6) Effective August 1, 2011, the Direct Plan Manager and the Trustee have agreed to voluntarily waive the Money Market Option’s Direct Plan Manager Fee and Administrative Fee, respectively, in an attempt to maintain at least a 0.00% return for this Investment Option. The Direct Plan Manager and the Trustee may discontinue the waiver at any time without notice. Please note that after the waivers, the net return for the Money Market Option may still be negative.

(7) The Principal Plus Interest Option does not pay a Direct Plan Manager Fee or Administrative Fee. TIAA-CREF Life Insurance Company (“TIAA-CREF Life”), the issuer of the funding agreement in which this Investment Option invests and an affiliate of TFI, makes payments to TFI, as Plan Manager. This payment, among many other factors, is considered by the issuer when determining the interest rate(s) credited under the funding agreement.

The example in the following table is intended to help you compare the cost of investing in the different Investment Options over various periods of time. This hypothetical example assumes that:

  • You invest $10,000 in an Investment Option for the time periods shown below.
  • Your investment has a 5% compounded return each year.
  • You withdraw your entire investment from the Investment Option at the end of the specified periods for Qualified Higher Education Expenses.
  • Total Annual Asset-Based Fees remain the same as those shown in the Fee Table above.

Although your actual costs may be higher or lower, based on the above assumptions your costs would be:

Investment Cost Example
Investment Options Approximate Cost of $10,000 Investment
  1 Year 3 Years 5 Years 10 Years
Conservative Managed Allocation Option
Age Band 0‑4 $37 $116 $202 $456
Age Band 5‑8 $37 $116 $202 $456
Age Band 9‑10 $38 $119 $208 $469
Age Band 11‑12 $40 $126 $219 $494
Age Band 13‑14 $41 $129 $225 $506
Age Band 15 $37 $116 $202 $456
Age Band 16 $31 $97 $169 $381
Age Band 17 $29 $90 $158 $356
Age Band 18+ $21 $64 $113 $255
Moderate Managed Allocation Option
Age Band 0‑4 $33 $103 $180 $406
Age Band 5‑8 $34 $106 $186 $419
Age Band 9‑10 $38 $119 $208 $469
Age Band 11‑12 $38 $119 $208 $469
Age Band 13‑14 $37 $116 $202 $456
Age Band 15 $37 $116 $202 $456
Age Band 16 $37 $116 $202 $456
Age Band 17 $35 $109 $191 $431
Age Band 18+ $31 $97 $169 $381
Aggressive Managed Allocation Option
Age Band 0‑4 $29 $90 $158 $356
Age Band 5‑8 $30 $93 $163 $369
Age Band 9‑10 $31 $97 $169 $381
Age Band 11‑12 $32 $100 $174 $394
Age Band 13‑14 $34 $106 $186 $419
Age Band 15 $36 $113 $197 $444
Age Band 16 $33 $103 $180 $406
Age Band 17 $28 $87 $152 $344
Age Band 18+ $30 $93 $163 $369
Guaranteed Investment Option
Principal Plus Interest $0 $0 $0 $0
Multi-Fund Investment Options
Global Equity Index Option $22 $68 $118 $268
Active Global Equity Option $82 $256 $446 $993
High Equity Balanced Option $30 $93 $163 $369
Active Fixed-Income Option $63 $196 $341 $764
Single Fund Investment Options
Global Tactical Asset Allocation Option $115 $358 $620 $1,369
Index Fixed-Income Option $26 $81 $141 $318
International Equity Index Option $19 $61 $107 $243
Money Market $28 $87 $152 $344
Social Choice $33 $103 $180 $406
U.S. Equity Index Option $18 $58 $102 $230