• No results found

ADVISOR PROGRAM PORTFOLIO CONSTRUCTION

N/A
N/A
Protected

Academic year: 2021

Share "ADVISOR PROGRAM PORTFOLIO CONSTRUCTION"

Copied!
6
0
0

Loading.... (view fulltext now)

Full text

(1)

Age-based option

Your financial advisor can help you select an age-based target allocation track

— Conservative, Moderate or Aggressive — that fits your college-planning needs.

Your investments will be placed in a portfolio within the track you choose, based

on your beneficiary’s age and your personal risk tolerance.

As the beneficiary gets closer to college age, the track will automatically reallocate

a percentage of your assets out of equity funds (which have more stocks) into

more conservative funds, such as bonds and money market funds. This means

that when it’s time for college, and your beneficiary is ready to begin withdrawing

funds for school, a larger proportion of your funds will be in more conservative,

lower risk investments.

ADVISOR PROGRAM

PORTFOLIO CONSTRUCTION

With a wide range of investment

options, the Future Scholar 529 Plan

allows you and your financial advisor

to design a program to suit your

college-saving needs. You can choose

from three investment options, each

with a variety of portfolios.

■ ■

Age-based option

■ ■

Single-fund option

■ ■

Target-allocation option

Age of

beneficiary younger5 and 6–8 9–11 12–15 16–17 Over 18

Conservative

Moderate Growth 529 Portfolio

Moderate

529 Portfolio Moderately Conservative 529 Portfolio

Conservative

529 Portfolio College 529 Portfolio College 529 Portfolio

Moderate

Growth 529

Portfolio Moderate Growth 529 Portfolio

Moderate

529 Portfolio Moderately Conservative 529 Portfolio

Conservative

529 Portfolio College 529 Portfolio

Aggressive

Aggressive Growth 529 Portfolio

Growth 529

Portfolio Moderate Growth 529 Portfolio

Moderate

529 Portfolio Moderately Conservative 529 Portfolio Conservative 529 Portfolio 62.5 34.5 3 62.5 34.5 3 62.5 34.5 3 82.7 14.5 2.8 93 6.5 0.5 44.8 51.8 3.5 31.5 50.5 18 44.8 51.8 3.5 45 39 16 31.5 50.5 18 44.8 51.8 3.5 50 50 45 39 16 31.5 50.5 18 50 50 50 50 45 39 16

The Future Scholar 529 Plan is sponsored by the state of South Carolina.

■ Equities ■ Fixed income ■ Cash ■ Other

The principal value of the fund(s) is not guaranteed at any time.

FUTURE SCHOLAR

529 COLLEGE SAVINGS PLAN

(2)

1 An investment in a money market fund is not insured or guaranteed. Although money market funds seek to preserve the value of investments at $1 per share, it is

possible for the fund to lose money.

2 Although the issuer seeks to preserve the value of the investment at a fixed share price, it is possible to lose money by investing in this portfolio. 3 Formerly known as the Future Scholar Conservative Portfolio.

4 All contributions to the portfolio will be invested in shares of Columbia Money Market Fund, although the portfolio will continue to hold the funding agreement

in which prior contributions were invested.

Single-fund portfolios

Underlying funds

Equity

Columbia Dividend Income 529 Portfolio

Columbia Dividend Income

MFS Value 529 Portfolio

MFS Value

Columbia Contrarian Core 529 Portfolio

Columbia Contrarian Core

iShares Russell 1000 ETF 529 Portfolio

iShares Russell 1000 ETF

Columbia Select Large Cap Growth 529 Portfolio

Columbia Select Large Cap Growth

Columbia Marsico Growth 529 Portfolio

Columbia Marsico Growth

Nuveen Winslow Large Cap Growth 529 Portfolio

Nuveen Winslow Large Cap Growth

American Century Mid Cap Value 529 Portfolio

American Century Mid Cap Value

Columbia Acorn 529 Portfolio

Columbia Acorn

iShares Russell 2000 ETF 529 Portfolio

iShares Russell 2000 ETF

iShares Russell 3000 ETF 529 Portfolio

iShares Russell 3000 ETF

FA Small Cap 529 Portfolio

Fidelity Advisor Small Cap

DFA International Core Equity 529 Portfolio

DFA International Core Equity

Fixed income

FA Strategic Income 529 Portfolio

Fidelity Advisor Strategic Income

Columbia Income Opportunities 529 Portfolio

Columbia Income Opportunities

Columbia Intermediate Bond 529 Portfolio

Columbia Intermediate Bond

JPMorgan Core Bond 529 Portfolio

JPMorgan Core Bond

iShares TIPS Bond ETF 529 Portfolio

iShares TIPS Bond ETF

Templeton Global Bond 529 Portfolio

Templeton Global Bond

Columbia U.S. Government Mortgage 529 Portfolio

Columbia U.S. Government Mortgage

Columbia Short Term Bond 529 Portfolio

Columbia Short Term Bond

Cash and cash equivalents

Columbia Legacy Capital Preservation 529 Portfolio

2,3

Columbia Money Market

1,4

Columbia Bank Deposit 529 Portfolio

Branch Banking and Trust (BBT)

FDIC-insured interest bearing account

Single-fund option

(3)

PORTFOLIO CONSTRUCTION ADVISOR PROGRAM

Target-allocation option

You can also choose among seven target-allocation portfolios ranging from aggressive to more conservative, allowing you to

choose a strategy best suited to your investment needs. Unlike the age-based portfolios that shift over time, your investment

in a target-allocation portfolio will remain constant unless you decide to change it.

Aggressive Growth 529 Portfolio

93% Equities

6.5% Fixed income and cash

0.5% Other

Growth 529 Portfolio

82.7% Equities

14.5% Fixed income and cash

2.8% Other

Moderate Growth 529 Portfolio

62.5% Equities

34.5% Fixed income and cash

3% Other

■■Domestic equity total (%) 70 Columbia Large Value Quantitative 8 Columbia Contrarian Core 17.5 Columbia Large Cap Index 14.5 Columbia Select Large Cap Growth 4.5 iShares Russell 1000 Growth Index 3.5 Columbia Mid Cap Index 14 Columbia Small Cap Index 8

■ International equity total (%) 23 Columbia Pacific/Asia 4.3 Columbia European Equity 6.5 iShares MSCI EAFE ETF 6.1 iShares MSCI EAFE Hedged ETF 6.1

■ Fixed-income total (%) 6.5 Columbia Intermediate Bond 2.5 Columbia Income Opportunities 2 Columbia Emerging Markets Bond 2

■ Other total (%) 0.5 Columbia Convertible Securities 0.5

■■Domestic equity total (%) 64 Columbia Large Value Quantitative 7.5 Columbia Contrarian Core 17 Columbia Large Cap Index 14 Columbia Select Large Cap Growth 4.5 iShares Russell 1000 Growth Index 3 Columbia Mid Cap Index 12 Columbia Small Cap Index 6

■ International equity total (%) 18.7 Columbia Pacific/Asia 3.5 Columbia European Equity 5.2 iShares MSCI EAFE ETF 5 iShares MSCI EAFE Hedged ETF 5

■ Fixed-income total (%) 14.5 Columbia Intermediate Bond 7 Columbia Corporate Income 3 Columbia Income Opportunities 3 Columbia Emerging Markets Bond 1.5

■ Other total (%) 2.8 Columbia Convertible Securities 2.8

■■Domestic equity total (%) 48 Columbia Large Value Quantitative 4 Columbia Contrarian Core 14 Columbia Large Cap Index 11 Columbia Select Large Cap Growth 3 iShares Russell 1000 Growth Index 1 Columbia Mid Cap Index 10 Columbia Small Cap Index 5

■ International equity total (%) 14.5 Columbia Pacific/Asia 2.6 Columbia European Equity 3.9 iShares MSCI EAFE ETF 4 iShares MSCI EAFE Hedged ETF 4

■ Fixed-income total (%) 34.5 Columbia Intermediate Bond 8 Columbia Corporate Income 7 Columbia Income Opportunities 4 Columbia U.S. Government Mortgage 6 Columbia Emerging Markets Bond 1.5 Columbia U.S. Treasury Index Fund 6

iShares TIPS Bond 2

■ Other total (%) 3

Columbia Convertible Securities 3

(4)

Moderately Conservative 529 Portfolio

31.5% Equities

68.5% Fixed income and cash

Conservative 529 Portfolio

16% Equities

84% Fixed income and cash

Moderate 529 Portfolio

51.8% Equities

48.2% Fixed income and cash

■■Domestic equity total (%) 15 Columbia Large Value Quantitative 0.5 Columbia Contrarian Core 8 Columbia Large Cap Index 4 iShares Russell 1000 Growth Index 0.5 Columbia Mid Cap Index 2

■ International equity total (%) 1 iShares MSCI EAFE ETF 0.5 iShares MSCI EAFE Hedged ETF 0.5

■ Fixed-income total (%) 45 Columbia Intermediate Bond 10 Columbia Corporate Income 12 Columbia U.S. Government Mortgage 12 Columbia Short Term Bond 3 Columbia U.S. Treasury Index 7

iShares TIPS Bond 1

■ Cash and cash equivalents total (%) 39 CMG Ultra Short Term Bond 35 Columbia Money Market1 4 ■■Domestic equity total (%) 41

Columbia Large Value Quantitative 4 Columbia Contrarian Core 12 Columbia Large Cap Index 9 Columbia Select Large Cap Growth 2 iShares Russell 1000 Growth Index 2 Columbia Mid Cap Index 8 Columbia Small Cap Index 4

■ International equity total (%) 10.8 Columbia Pacific/Asia 2 Columbia European Equity 2.9 iShares MSCI EAFE ETF 2.9 iShares MSCI EAFE Hedged ETF 2.9

■ Fixed-income total (%) 44.7 Columbia Intermediate Bond 9.7 Columbia Corporate Income 10 Columbia Income Opportunities 3.5 Columbia U.S. Government Mortgage 10 Columbia Short Term Bond 2 Columbia Emerging Markets Bond 1.5 Columbia U.S. Treasury Index 7

iShares TIPS Bond 1

■ Cash and cash equivalents total (%) 3.5 CMG Ultra Short Term Bond 3.5

■■Domestic equity total (%) 25 Columbia Large Value Quantitative 1 Columbia Contrarian Core 10 Columbia Large Cap Index 6 iShares Russell 1000 Growth Index 1 Columbia Mid Cap Index 4 Columbia Small Cap Index 3

■ International equity total (%) 6.5 Columbia Pacific/Asia 1.1 Columbia European Equity 1.6 iShares MSCI EAFE ETF 1.9 iShares MSCI EAFE Hedged ETF 1.9

■ Fixed-income total (%) 50.5 Columbia Intermediate Bond 9 Columbia Corporate Income 15 Columbia Income Opportunities 3 Columbia U.S. Government Mortgage 10 Columbia Short Term Bond 3 Columbia Emerging Markets Bond 1.5 Columbia U.S. Treasury Index 8

iShares TIPS Bond 1

■ Cash and cash equivalents total (%) 18 CMG Ultra Short Term Bond 18

■ Domestic equity ■ International equity ■ Fixed income ■ Other ■ Cash

(5)

College 529 Portfolio

100% Fixed income and cash

■ Fixed-income total (%) 50 Columbia Intermediate Bond 15 Columbia Corporate Income 9 Columbia U.S. Government Mortgage 6 Columbia Short Term Bond 5 Columbia U.S. Treasury Index Fund 14

iShares TIPS Bond 1

■ Cash and cash equivalents total (%) 50 CMG Ultra Short Term Bond 40 Columbia Money Market1 10

■ Fixed income ■ Cash

The percentage allocations shown are target allocations as of June 2015. These target allocations and the actual percentage allocations to each underlying fund and asset class are subject to change at any time. In addition, the underlying funds included in the Asset Allocation Portfolios may change. For the target allocation ranges to individual asset classes, please see the Program Description.

Note: For complete information on asset allocation ranges, permissible investment strategies and special risks that may be associated with the underlying mutual funds, please see the Program Description. Although money contributed to the accounts will be invested in portfolios that hold mutual funds (among

other types of investments), none of the Trust, the Advisor Plan or any of the Advisor Plan’s investment portfolios is a mutual fund, and an investment in the Program is not an investment in shares of any mutual fund. See the Program Description for more information about the securities issued through the Program.

1 An investment in a money market fund is not insured or guaranteed. Although money market funds seek to preserve the value of investments at $1 per share, it is possible for the fund to lose money.

Asset allocation does not assure a profit or protect against loss.

Investment risks

The section below summarizes some of the risks involved with investing in the program portfolios and is not intended to be a complete list of the investment risks. For a complete list of investment risks, please see the Program Description. An investment in these portfolios may offer the potential for long-term growth but also involves certain risks.

Equity securities are subject to stock market fluctuations that occur in response to economic and business developments.

Stocks of small- and mid-cap companies pose special risks, including possible liquidity and greater price volatility than stocks of larger, more established companies.

International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in financial standards and other risks associated with future political and economic developments.

Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments, and yields and share price fluctuations due to changes in interest rates.

Investments in high-yield bonds (sometimes referred to as “junk bonds”) offer the potential for high current income and attractive total return but involve certain risks. Changes in economic conditions or other circumstances may adversely affect a junk bond issuer’s ability to make principal and interest payments.

There are special risks associated with an investment in real estate, including credit risk, interest rate fluctuations and the impact of varied economic conditions.

(6)

PORTFOLIO CONSTRUCTION ADVISOR PROGRAM

CT-FSA/244389 N (07/15) 5702/1227709 Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.

Columbia funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC. Columbia Management Investment Distributors, Inc., 225 Franklin Street, Boston, MA 02110-2804

© 2015 Columbia Management Investment Advisers, LLC. All rights reserved.

* In U.S. dollars as of March 31, 2015. Source: Ameriprise Q1 Earnings Release. Includes all assets managed by entities in the Columbia and Threadneedle groups of companies. Contact us for more current data.

** Source: ICI as of March 31, 2015 for Columbia Management Investment Advisers, LLC. *** Source: Investment Association as of March 2015 for Threadneedle Asset Management Limited.

To find out more, call

800.446.4008

or visit

columbiathreadneedle.com/us

blog.columbiathreadneedleus.com

Please consider the investment objectives, risks, charges and expenses carefully before investing in the Future Scholar

529 Plan. Contact your financial advisor or visit columbiathreadneedle.com/us for a Program Description, which contains

this and other important information. Read it carefully before investing. You should also consider, before investing,

whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits that are only

available for investments in such state’s qualified tuition program. Columbia Management Investment Distributors, Inc.,

distributor and underwriter.

The Advisor Plan is sold exclusively through financial advisors, while the Direct Plan is sold directly by the Program. Participation in the Direct Plan is limited to eligible investors, as described in the Program Description. The Direct Plan offers a more limited selection of investment choices than the Advisor Plan, and the fees and expenses are lower. Please refer to the Program Description for more information.

Columbia Management Investment Distributors, Inc., member FINRA, is the distributor and underwriter for the Future Scholar 529 Plan Financial Advisor Program. The Office of State Treasurer of South Carolina (the State Treasurer) administers the Program and has selected Columbia Management Investment Advisers, LLC and Columbia Management Investment Distributors, Inc. (Columbia Management) as Program Manager. Columbia Management and its affiliates are responsible for providing certain administrative, record keeping and investment services, and for the marketing of the Program. Columbia Management is not affiliated with the State Treasurer.

About Columbia Threadneedle Investments

Columbia Threadneedle Investments is a leading global asset management group that provides a broad range of actively managed

investment strategies and solutions for individual, institutional and corporate clients around the world.

References

Related documents