Investment Products
 

Investment Strategies

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YEARS TO ENROLLMENT PORTFOLIOS
  Portfolio Strategy: Higher Education 529 Fund tailors investments according to the beneficiary’s expected number of years to enrollment, while considering risk tolerance by choosing from up to three risk categories—aggressive, moderate or conservative—for each time horizon. The longer the time horizon until enrollment, the more aggressive the portfolio options, as the funds may potentially have more time to ride out market fluctuations.

Style: The Aggressive option invests in Van Kampen mutual funds that invest primarily in domestic and international equities. It also invests in bonds. This option generally has the highest investment risk of the Years to Enrollment Portfolios, but it may also have greater potential to earn higher returns. The Moderate option invests in Van Kampen mutual funds that invest primarily in domestic equities and international equities and bonds, but it also invests in cash. This option generally has a lower investment risk than the Aggressive Portfolio. The Conservative option invests in Van Kampen mutual funds that invest primarily in bonds and cash, but also invests in domestic and international equities. This option generally offers less investment risk than the Aggressive or Moderate Portfolios, but it may have potentially lower returns.
   
FIXED PORTFOLIO
  Portfolio Strategy: A Fixed Portfolio allows you to select an asset allocation that does not change based upon the beneficiary’s years to enrollment. One hundred percent of your investment is placed into the asset class you choose—equities, bonds or short-term income (U.S. short-term government bonds and money market instruments).

Style: The Equity Portfolio invests in Van Kampen mutual funds that invest primarily in domestic and international equities. This option has a higher investment risk than the other Fixed Portfolios, but it also has the potential to earn higher returns. The Bond Portfolio invests in Van Kampen mutual funds that invest primarily in bonds. This option may help to preserve principal and manage risk. The Short Term Income Portfolio invests half of its assets in Van Kampen mutual funds that invest primarily in bonds issued or guaranteed by the U.S. government. These are generally considered to be the most conservative bonds because they are backed by the full faith and credit of the U.S. government, and are used to seek high current return as well as relative safety of your investment over time. The portfolio invests the other half of its assets in a mutual fund that invests only in money market instruments, which are typically considered to be relatively low in risk, as the fund seeks to preserve the value of your investment over time.

   
INDIVIDUAL FUND PORTFOLIOS
  Individual Fund Portfolios allow you to customize an asset-allocation strategy specifically for you or your student. Select from stock, bond, and global funds to help you diversify your investment. The assets of each Individual Fund Portfolio are invested entirely in a single underlying mutual fund, and each follows its respective objective and portfolio strategy.

Customize Your Investment With:

Stock and Bond Portfolios Equity and Income Portfolio
Stock Portfolios Capital Growth Portfolio
Comstock Portfolio
Mid Cap Growth Portfolio
Small Cap Growth Portfolio
Small Cap Value Portfolio
Global and International Portfolios Global Franchise Portfolio
International Growth Portfolio
Bond Portfolios Core Plus Fixed Income Portfolio
Government Securities Portfolio
Index Portfolios S&P 500 Equity Index Portfolio
U.S. Bond Market Index Portfolio

Each 529 Program Portfolio is subject to the risks of the underlying fund(s) in which it invests. The exact degree and nature of these risks will vary depending on the specific underlying
fund(s) in which a 529 Program Portfolio invests. In general, an investment in an “aggressive” portfolio entails more risk than an investment in a “conservative” or “moderate” portfolio. For more risk information about the 529 Program Portfolios and the underlying funds in which they invest, see the Program Disclosure Statement.

An investment in the money market fund that may be represented in the Cash portion above is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the money market fund seeks to maintain a net asset value of $1.00 per share, it is possible to lose money by investing in the fund.




 

    
           
   
 
 
   
 


An investor should consider the investment objectives, risks, charges, expenses and tax consequences associated with the Program before investing. All of this information is contained in the Program Disclosure Statement. Please read it carefully before investing. For a copy, call 866.529.ACCT (2228) or visit www.treasury.alabama.gov.

If you or your beneficiary are not Alabama residents, consider whether your home state or the home state of your designated beneficiary offers a Qualified Tuition Program that provides state-tax or other benefits only available through your home state’s Qualified Tuition Program.

The Program is offered by the State of Alabama and is designed to be a Qualified Tuition Program under Section 529 of the Internal Revenue Code. The FDIC, the State of Alabama, the Treasurer of the State of Alabama, the Board of Trustees of the Program Trust Fund or any other federal or state governmental agencies do not insure or guarantee accounts and investments under the Program. Van Kampen Funds, Inc. is the underwriter for the Program. The Program is also offered through independent distributors that have selling agreements with Van Kampen Funds Inc., which serves as an independent distributor for the Program.

Van Kampen and the State of Alabama’s Treasurer’s office do not render tax or legal advice. This material was not intended or written for—and cannot be used by—any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. Please consult your tax advisor regarding your individual situation.