CO

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P Invest in What’s NextSave for Your Child’s Future

2

CollegeCounts 529The CollegeCounts 529 Fund is a tax-advantaged 529 college savings plan that offers a number

of quality fund families, investment options, and tax benefits. Opening an account is a great first

step as you start planning and imagining what your child or grandchild’s future may look like.

The sooner you start—the better.

Get started today with CollegeCounts. Together with your financial advisor, you can design a

529 plan catered to your goals and budget.

Earnings PotentialMost of us have been in the job market for some time and understand the premium placed on a

college degree. Higher education provides a career edge and boosts earning potential. Average

weekly earnings for college-educated individuals can add up to more than $1M in additional income

over a working career.

MEDIAN WEEKLY EARNINGS OF FULL-TIME WORKERS (AGE 25-PLUS)

$1,500

$1,250

$1,000

$750

$500

$250

$0

LESS THAN A HIGH SCHOOL DIPLOMA

HIGH SCHOOLGRADUATE

SOME COLLEGE OR ASSOCIATE’S DEGREE

BACHELOR’SDEGREE

ADVANCEDDEGREE

$554

$726$825

$1,187

$1,512

Source: Bureau of Labor Statistics, U.S. Department of Labor, News Release (2nd Quarter 2018 Averages - July 17, 2018).

APRIL 2019

Time Marches OnAs your loved ones grow, the amount you contribute each year can also grow. Making ongoing

contributions offers consistent yet flexible savings opportunities based on your schedule and budget.

Signing up for automatic monthly investments is a simple way to set dollars aside for college.*

And once you do, remember to consider increasing your monthly contributions each year.

ASSUMED ANNUAL RETURN AT 5%

Illustration assumes an initial lump sum investment of $2,500 and subsequent monthly contributions of $50, $100, $250, and $500 for 5, 10, 15, and 18 years at a hypothetical 5% rate of return compounded monthly. This chart is for illustrative purposes and does not represent the return of any specific investment option and does not reflect the impact of fees or expenses. Investment returns in a college savings plan will vary and may be higher or lower than in this example.

*Making automatic monthly contributions does not ensure a profit or protect against loss during varying market conditions.

$50

$100

$250

$500MO

NTH

LY C

ON

TRIB

UTI

ON

5 YEARS INVESTED10 YEARS INVESTED

15 YEARS INVESTED18 YEARS INVESTED

$6,623

$10,037

$20,281

$37,353$82,082

$139,486$181,466

$43,100 $72,385 $93,802

$19,710 $32,125 $41,203

$11,914$18,704

$23,670

The DetailsAnyone can open an account—parents, grandparents, relatives, or friends. Starting a 529 account can help

your loved one focus on the task at hand, defining their dreams and going after them. But that’s not the only

benefit saving with CollegeCounts offers college-seekers and their families.

Tax AdvantagesTAX-DEFERRED GROWTHAny dividends, interest, or capital gains that are received in your account are not taxed while in the plan.

TAX-FREE WITHDRAWALSQualified withdrawals are exempt from federal income tax when used for qualified higher education expenses.1

If you withdraw money for reasons other than qualified higher education expenses, the earnings portion

may be subject to federal income tax and a 10% federal penalty tax as well as state income taxes.

TAX DEDUCTIONSAlabama taxpayers can deduct CollegeCounts contributions from their Alabama taxable income up to:2

$5,000 single filers

$10,000 married, filing jointly when both spouses contribute

Broad Choice of Colleges and Spending OptionsCollegeCounts savings can be used nationwide and at select schools abroad. All public and private

postsecondary educational institutions that participate in the U.S. Department of Education’s Federal Student

Aid programs are eligible, including colleges, universities, trade schools, and graduate programs.

Withdrawals can be used for the child’s qualified higher education expenses, including:

Tuition and fees

Books, supplies, and equipment required for enrollment

Room and board, if enrolled at least half-time

A computer and certain equipment and software

Plan Fees and ExpensesCollegeCounts has a $12 annual account maintenance fee. The account fee is waived for accounts with an

Alabama account owner or beneficiary. The plan also has three fee structures available that you should

review with your financial advisor. Each have different sales charges, program and servicing fees, and

underlying mutual fund expenses. Carefully read and review this booklet as well as the accompanying

Program Disclosure Statement, which includes details on the fees and other important plan information.

4

Contribution FlexibilityThe CollegeCounts 529 Fund lets you save your way with no minimum or ongoing contribution

requirements and a high maximum contribution limit with a variety of savings options:

Out-of-State Rollovers. Roll over an out-of-state 529 plan to CollegeCounts. Your financial advisor can help you

determine if the rollover benefits are in your best interest.

Automatic Investment Plan. Set up automatic monthly contributions to help build funds with less hassle.

CollegeCounts GiftED. Evite others to contribute on birthdays, graduations, holidays, and other special occasions.

CollegeCounts 529 Rewards Visa® Card. Earn 1.529% rewards on everyday purchases and have those rewards automatically

deposited into your CollegeCounts account.3

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6

Investment Options & Opportunities

CollegeCounts has an expanded menu of investment options and provides you with well-respected fund managers.

Age-based options automatically change with the child’s age. CollegeCounts offers three

age-based options: aggressive, moderate, and conservative.

Target portfolios offer six static options that keep a set asset allocation.

Individual fund portfolios provide 25 options to customize your portfolio.

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All portfolios benefit from the investment oversight of Wilshire Associates, a leading global investment

consulting firm that provides CollegeCounts with portfolio design, due diligence,

and ongoing monitoring services.

3 Age-Based OptionsThese portfolios are professionally designed to cater to the beneficiary’s current age and the investors’ risk-tolerance level. The portfolios invest primarily in stock and growth-oriented investments in the early years and gradually get more conservative in bond and money market investments as college approaches.

AGGR

ESSI

VE

0–2 YEARS 3–5 YEARSBENEFICIARY AGE

6–8 YEARS 9–10 YEARS

MOD

ERAT

ECO

NSE

RVAT

IVE

5%

40% 36%

19%

5%

40% 36%

19%

5%20%

49%

26%

5%20%

49%

26%

5%20%

49%

26%

7%

57%36%

U.S. EQUITY INTERNATIONAL EQUITY REAL ASSETS FIXED INCOME MONEY MARKET

8

6%

54%30%

10%

6%

54%30%

10%

50%32%

15%

3%

7%

30%

23%

40%

7%

30%

23%

40%

7%

30%

23%

40%

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BENEFICIARY AGE11–12 YEARS 13–14 YEARS 15–16 YEARS 17–18 YEARS 19+ YEARS

4%2%

71%

9% 14%

4%

60%

25%

11%

5%

40% 36%

19%

50%50%

50%32%

15%

3%

50%32%

15%

3%

70% 2%

19%

9%

8%2%

67%

23%

8%2%

67%

23%

STA RT P R E PA R I N G TO DAY FO R A B R I G H T E R F U T U R E .

4%

60%

25%

11%

4%

60%

25%

11%

70% 2%

19%

9%

70% 2%

19%

9%

4%2%

71%

9% 14%

4%2%

71%

9% 14%

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6 Target PortfoliosTarget Portfolios Investment Objective & Strategy

FUND 100 Seeks to provide long-term capital appreciation by investing in

a broad range of funds focused on U.S. and international stocks.

FUND 80

Seeks to provide growth by investing 80% in equity investments and

20% in fixed income investments.

FUND 60 Seeks to provide moderate growth by investing 60% in equity

investments and 40% in fixed income investments.

FUND 40 Seeks to provide moderate growth and current income by investing

40% in equity investments and 60% in fixed income investments.

FUND 20 Seeks to provide current income and low-to-moderate capital

appreciation by investing 20% in equity investments and 80%

in fixed income and money market investments.

FIXED INCOME FUND Seeks to provide current income by investing 50% in fixed income

investments and 50% in money market investments.

7%

57%36%

5%

40% 36%

19%

5%20%

49%

26%

50%50%

U.S. EQUITY INTERNATIONAL EQUITY REAL ASSETS FIXED INCOME MONEY MARKET

4%2%

71%

9% 14%

4%

60%

25%

11%

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25 Individual Fund PortfoliosThe individual fund portfolios represent multiple asset classes and range from lower risk/lower return to

higher risk/higher return investment options. Working with your investment professional, you can design

a strategy that best fits your risk tolerance and time horizon.

Money Market State Street U.S. Government Money Market

529 Portfolio*

Fixed Income PIMCO Short-Term 529 Portfolio

Northern Funds Bond Index 529 Portfolio

Fidelity Advisor Investment Grade Bond

529 Portfolio

MainStay MacKay Total Return Bond

529 Portfolio

American Century Short Duration Inflation

Protection Bond 529 Portfolio

BlackRock Inflation Protected Bond 529 Portfolio

Touchstone High Yield 529 Portfolio

Templeton International Bond 529 Portfolio

Balanced T. Rowe Price Balanced 529 Portfolio

Real Estate DFA Real Estate Securities 529 Portfolio

Principal Global Real Estate Securities

529 Portfolio

Domestic (U.S.) EquityLarge-Cap DFA U.S. Large Cap Value 529 Portfolio

Northern Funds Stock Index Fund 529 Portfolio

American Century Equity Growth 529 Portfolio

T. Rowe Price Large-Cap Growth 529 Portfolio

Mid-Cap Northern Funds Mid Cap Index 529 Portfolio

Small-Cap William Blair Small Cap Value 529 Portfolio

Northern Funds Small Cap Index 529 Portfolio

T. Rowe Price QM U.S. Small Cap Growth Equity

529 Portfolio

International Equity Northern Funds International Equity Index

529 Portfolio

Neuberger Berman International Select

529 Portfolio

DFA International Small Company 529 Portfolio

Vanguard Emerging Markets Select Stock 529

Portfolio

Commodities Credit Suisse Commodity Return Strategy

529 Portfolio

*You could lose money by investing in this investment option. Although the money market fund in which your investment option invests (the “underlying fund”) seeks to preserve its value at $1.00 per share, the underlying fund cannot guarantee it will do so. An investment in this investment option is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The underlying fund’s sponsor has no legal obligation to provide financial support to the underlying fund, and you should not expect that the sponsor will provide financial support to the underlying fund at any time.

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A Word About RiskYou 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 should be considered before investing. For example, international investing, especially in

emerging markets, has additional risks such as currency fluctuation, economic and political risks,

and market volatility. Investing in small, medium, and international companies may increase the

risk of fluctuations in the value of your investment and involves greater risks than investing in more

established companies. The portfolios that invest in specific industries or sectors, such as real estate,

have industry concentration risk. As an example, the portfolios that invest in real estate may perform

poorly during a downturn in the real estate industry.

Portfolios that invest in bonds are subject to risks such as interest rate risk, credit risk, and inflation risk.

In particular, as interest rates rise, the prices of bonds will generally fall, which can impact performance.

It is important to note that the value of your account will fluctuate with market conditions. When you

withdraw funds, you may have more or less than your actual investment. For more information about the

portfolios and the underlying funds in which they invest, see the Program Disclosure Statement.

Compare for YourselfHere’s how CollegeCounts stacks up against other options:

a The combined maximum account balance limit for the CollegeCounts 529 Fund and all other Section 529 programs established and maintained by the State of Alabama for a particular beneficiary cannot exceed $475,000. Although account balances can grow beyond that amount, no additional contributions can be made once the balance reaches $475,000.

b Individuals who file an Alabama state income tax return are eligible to deduct, for Alabama state income tax purposes, up to $5,000 per tax year ($10,000 for married taxpayers filing jointly, if both actually contribute) for total combined contribu tions to the Plan and other State of Alabama 529 programs. The contributions made to such qualifying plans are deductible on the tax return of the contributing taxpayer for the tax year in which the contributions are made. In the event of a Nonqualified Withdrawal from the Plan, for Alabama state income tax purposes, an amount must be added back to the income of the contributing taxpayer in an amount of the Nonqualified Withdrawal plus ten percent (10%) of such amount withdrawn. Such amount will be added back to the income of the contributing taxpayer in the tax year that the Nonqualified Withdrawal was distributed. Please consult with your tax professional.

c Contributions can be made for a beneficiary from birth to age 18. The account may remain open until the beneficiary reaches age 30, with certain limitations.

d Custodianship typically terminates when a minor reaches age 18 or 21.e ESA eligibility phases out at $95,000–$110,000 adjusted gross income ($190,000–$220,000 for joint filers). Please check with your tax advisor for details and information regarding your specific situation.

KEY FACTORS COLLEGECOUNTS 529 FUND

COVERDELL EDUCATION SAVINGS ACCOUNT (ESA) UGMA/UTMA

CONTRIBUTION LIMIT $475,000 maximum account balance

$2,000 per beneficiary per year None

ALABAMA STATE INCOME TAX-DEDUCTIBLE CONTRIBUTIONS

Yes(up to $10,000) No No

CHANGE OF BENEFICIARY ALLOWED Yes Yes No

AGE RESTRICTIONS FOR CONTRIBUTIONS None Before age 18 N/A

AGE RESTRICTIONS FOR WITHDRAWALS None Before age 30 N/A

INCOME RESTRICTIONS None Yes None

a

c d

dc

e

b

APRIL 2019

Quick Q & AWho can open an account?An account can be established by an individual,

a UGMA/UTMA custodian, certain legal entities,

or a trust. There are no income or residency

requirements.

How do I open an account?Your investment professional can guide you

through the steps to get enrolled.

Who can be a beneficiary?Anyone, including yourself, can be named as

a beneficiary. There are no age, income, or

residency limitations. Each account can have one

designated beneficiary.

Who can make contributions?Parents, grandparents, other relatives—anyone,

really—can contribute to a CollegeCounts 529

Fund account on behalf of the beneficiary.

How are contributions made?The plan is very flexible. You can contribute by:

Sending a check.

Establishing an automatic investment plan.

Rolling over funds from another 529 plan.

Inviting family and friends to make a

contribution to your account through

CollegeCounts GiftED.

Establishing payroll contributions at work

(check with employer for availability).

Transferring reward dollars earned with a

CollegeCounts 529 Rewards Visa® Card.

Can I transfer assets from another 529 plan?Yes. You can complete a rollover form to

transfer assets from another 529 plan and gain

the benefits of the Alabama state income tax

deduction. A same-beneficiary rollover/transfer

is allowed once in a 12-month period. Additional

transfers are allowed but require a change of

beneficiary. For additional information, see our

online Tax Q&A. Check with your investment

professional for further assistance with rollovers.

Does the beneficiary have to attend a school in Alabama?No. Many beneficiaries will attend Alabama

schools; however, funds may be used at eligible

schools nationwide and some foreign schools too.

What are qualified higher education expenses?Qualified higher education expenses include

tuition, fees, books, supplies, and equipment

required for enrollment or attendance; certain

room and board expenses incurred by students

who are enrolled at least half-time; the purchase

of computer or peripheral equipment, computer

software, or internet access and related services,

if used primarily by the beneficiary during any of

the years the beneficiary is enrolled at an eligible

educational institution; and certain expenses

for special needs services needed by a special

needs beneficiary.

14

NOT FDIC INSURED / NO BANK GUARANTEE / MAY LOSE VALUE

The CollegeCounts 529 Fund Advisor Plan is a qualified tuition program under Section 529 of the Internal Revenue Code that is offered 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 and Northern Trust Securities, Inc., acts as Distributor. Accounts and investments under the CollegeCounts 529 Fund Advisor Plan are not insured or guaranteed by the FDIC, the State of Alabama, the State of Alabama Treasurer, the Board, the Trust, the Program, Union Bank & Trust Company, Northern Trust Securities, Inc., or any other entity. Investment returns are not guaranteed, and you could lose money by investing in the plan.

An investor should consider the investment objectives, risks, and charges and expenses associated with municipal fund securities before investing. This, and other important information, is contained in the fund prospectuses and the CollegeCounts 529 Fund Advisor Plan Program Disclosure Statement (issuer’s official statement), which can be obtained from a financial professional and on CollegeCounts529advisor.com and should be read carefully before investing. You can lose money by investing in a portfolio. Each of the portfolios involves investment risks, which are described in the Program Disclosure Statement.

An investor should consider, before investing, whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan. Investors should consult a tax advisor.1Qualified higher education expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance; certain room and board expenses incurred by students who are enrolled at least half-time; the purchase of computer or peripheral equipment, computer software, or internet access and related services, if used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution; and certain expenses for special needs services needed by a special needs beneficiary.2Individuals who file an Alabama state income tax return are eligible to deduct for Alabama state income tax purposes up to $5,000 per tax year ($10,000 for married taxpayers filing jointly if both actually contribute) for total combined contribu tions to the Plan and other State of Alabama 529 programs. The contributions made to such qualifying plans are deductible on the tax return of the contributing taxpayer for the tax year in which the contributions are made. In the event of a Nonqualified Withdrawal from the Plan, for Alabama state income tax purposes, an amount must be added back to the income of the contributing taxpayer in an amount of the Nonqualified Withdrawal plus ten (10%) percent of such amount withdrawn. Such amount will be added back to the income of the contributing taxpayer in the tax year that the Nonqualified Withdrawal was distributed. Please consult with your tax professional.3Subject to credit approval. Full details appear in the Rewards Program Terms and Conditions new card customers receive with their card. All terms, including reward points, fees, and APRs for new transactions, may be subject to change. The CollegeCounts 529 Rewards Visa® Card is issued by Union Bank & Trust Company pursuant to a license from Visa® U.S.A. Net purchases are defined as the dollar value of goods and services purchased with a card beginning with the first day of the billing cycle that includes the cardholder’s enrollment date minus any credits, returns, or other adjustments as reflected on the monthly billing statement.

APRIL 2019

OFFERED BY THE STATE OF ALABAMADISTRIBUTOR PROGRAM MANAGER

UBT 529 SERVICES, A DIVISION OF

Start Saving TodayTeam up with your financial advisor to map out the best CollegeCounts 529 plan for your college-bound family members today!

APRIL 2019