3 age-based options

These intuitive portfolios simplify the investment process by doing the work for you. Investments in the age-based portfolios are based on the age of the beneficiary. Younger beneficiaries will have more money invested in stocks. (Stocks historically have provided additional potential for growth, but they are also more volatile.) As the beneficiary gets older, the assets will automatically shift to portfolios with reduced stock exposure and increased bonds and money market investments.

Start with the beneficiary’s age and factor in your college savings objectives to select one of the following three options.

The aggressive option places investments in mutual funds focused heavily on stocks in the early years. Stocks have the potential for the highest returns, but they also carry the most risk. They can be ideal for long-term investing because their values can potentially ride out market highs and lows. College savings for a newborn are initially invested in 100% stocks. At age 10, the portfolio has begun to shift and is invested in 80% stocks and 20% bonds. As the beneficiary nears college age, the portfolio is invested in 40% stocks and 60% bonds.

The moderate option invests in mutual funds more balanced between stocks and bonds. This allocation between stocks, bonds, and cash has more moderate return potential than the aggressive option, but it also carries less risk. College savings for a newborn child are initially invested in 80% stocks and 20% bonds. At age 10, the portfolio has begun to shift and is invested in 60% stocks and 40% bonds. As the beneficiary nears college age, the portfolio is invested in 20% stocks, 70% bonds, and 10% cash equivalents.

The conservative option is the least risky of the age-based portfolios, but it also has the lowest return potential. This asset allocation model offers mutual funds that concentrate primarily in bonds and cash with a lower allocation to stocks in comparison to the other two age-based options. College savings for a newborn child are initially invested in 60% stocks and 40% bonds. At age 10, the portfolio has begun to shift and is invested in 40% stocks and 60% bonds. As the beneficiary nears college age, the portfolio is invested in 50% bonds and 50% cash equivalents.

View the following pie charts to see how the age-based portfolios change over time as the beneficiary nears college. The labels (Fund 100, Fund 80, etc.) show how the aggressive, moderate, and conservative options relate to one another as well as how these age-based portfolios compare with the target portfolios. Click on a pie chart for information about the portfolio’s objectives, asset allocation, and performance.

Legend


FUND 100	FUND 80	FUND 60	FUND 40	FUND 20
FUND 80	FUND 60	FUND 40	FUND 20	FIXED INCOME
FUND 60	FUND 40	FUND 20	FIXED INCOME	MONEY MARKET

Risk Considerations

You can lose money by investing in a portfolio. Each of the Age-Based, Target, and Individual Fund Portfolios involves investment risks, which are described in the Program Disclosure Statement and which you should consider before investing. International investments involve risks such as currency fluctuations, economic instability, and political developments. Additional risks may be associated with emerging markets. Small and midsize companies may increase the risk of fluctuations in the value of your investment. Portfolios that invest in bonds are subject to risks such as interest rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds will fall. The value of your account will fluctuate with market conditions. When you withdraw funds, you may have more or less than your total contributions to the account. For more risk information on the portfolios and the underlying funds in which they invest, see the Program Disclosure Statement.

The CollegeCounts 529 Fund is a qualified tuition program under Section 529 of the Internal Revenue Code that is sponsored by the State of Alabama and administered by the Board of Trustees of the ACES Trust Fund (the “Trust” and plan issuer). Union Bank & Trust Company serves as Program Manager. Accounts and investments under the CollegeCounts 529 Fund are not insured or guaranteed by the FDIC, the State of Alabama, the State Treasurer of Alabama, the Board, the Trust, the Program, Union Bank & Trust Company, or any other entity.

Before investing, you should consider the investment objectives, risks, fees, expenses, and tax consequences associated with the Program. All of this information is contained in the Program Disclosure Statement. Please read it carefully before investing.

If you or your beneficiary is not an Alabama resident, consider whether your home state or the home state of your designated beneficiary offers a qualified tuition program that provides a state tax deduction or other benefits to residents who invest in that program.

Not FDIC Insured. No Bank Guarantee.May Lose Value.