FUTURE SCHOLAR 529 COLLEGE SAVINGS PLAN ADVISOR PROGRAM PORTFOLIO CONSTRUCTION Age-based option Your financial advisor can help you select an age-based target allocation track, 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. 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 of beneficiary 5 and younger 6 8 9 11 12 15 16 17 Over 18 4.5 62.5.5 44.8 51.8 ly 18 1.5.5 9 16 45 College 529 College 529 Age-based option Single-fund option Target-allocation option 14.5 2.8 82.7 4.5 62.5.5 44.8 51.8 ly 18 1.5.5 9 16 45 College 529 Aggressive Aggressive 6.5 0.5 9 14.5 2.8 82.7 4.5 62.5.5 44.8 51.8 ly 18 1.5.5 9 16 45 n Equities n Fixed income n Cash n Other The principal value of the fund(s) is not guaranteed at any time. The Future Scholar 529 Plan is sponsored by the state of South Carolina.
Single-fund option This option lets you and your financial advisor build a customized portfolio by selecting from a variety of funds, ranging from conservative bonds to aggressive equities. Single-fund portfolios Underlying funds Equity Columbia Dividend Income Columbia Dividend Income MFS Value MFS Value Columbia Contrarian Core Columbia Contrarian Core ishares Russell 1000 ETF ishares Russell 1000 ETF Columbia Select Large Cap Growth Columbia Select Large Cap Growth Columbia Marsico Growth Columbia Marsico Growth Nuveen Winslow Large Cap Growth Nuveen Winslow Large Cap Growth American Century Mid Cap Value American Century Mid Cap Value Columbia Acorn Columbia Acorn ishares Russell 2000 ETF ishares Russell 2000 ETF ishares Russell 000 ETF ishares Russell 000 ETF FA Small Cap Fidelity Advisor Small Cap DFA International Core Equity DFA International Core Equity Fixed income FA Strategic Income Fidelity Advisor Strategic Income Columbia Income Opportunities Columbia Income Opportunities Columbia Intermediate Bond Columbia Intermediate Bond JPMorgan Core Bond JPMorgan Core Bond ishares TIPS Bond ETF ishares TIPS Bond ETF Templeton Global Bond Templeton Global Bond Columbia U.S. Government Mortgage Columbia U.S. Government Mortgage Columbia Short Term Bond Columbia Short Term Bond Cash and cash equivalents Columbia Legacy Capital Preservation 2, Columbia Money Market 1,4 Columbia Bank Deposit Branch Banking and Trust (BBT) FDIC-insured interest bearing account 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. Formerly known as the Future Scholar. 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.
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 9% Equities 6.5% Fixed income and cash 0.5% Other Growth 82.7% Equities 14.5% Fixed income and cash 2.8% Other Growth 62.5% Equities 4.5% Fixed income and cash % Other n 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.5 Columbia Mid Cap Index 14 Columbia Small Cap Index 8 n International equity total (%) 2 Columbia Pacific/Asia 4. Columbia European Equity 6.5 ishares MSCI EAFE ETF 6.1 ishares MSCI EAFE Hedged ETF 6.1 n Fixed-income total (%) 6.5 Columbia Intermediate Bond 2.5 Columbia Income Opportunities 2 Columbia Emerging Markets Bond 2 n Other total (%) 0.5 Columbia Convertible Securities 0.5 n 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 Columbia Mid Cap Index 12 Columbia Small Cap Index 6 n International equity total (%) 18.7 Columbia Pacific/Asia.5 Columbia European Equity 5.2 ishares MSCI EAFE ETF 5 ishares MSCI EAFE Hedged ETF 5 n Fixed-income total (%) 14.5 Columbia Intermediate Bond 7 Columbia Corporate Income Columbia Income Opportunities n Other total (%) 2.8 Columbia Convertible Securities 2.8 n Domestic equity total (%) 48 Columbia Large Value Quantitative 4 Columbia Contrarian Core 14 Columbia Large Cap Index 11 Columbia Select Large Cap Growth ishares Russell 1000 Growth Index 1 Columbia Mid Cap Index 10 Columbia Small Cap Index 5 n International equity total (%) 14.5 Columbia Pacific/Asia 2.6 Columbia European Equity.9 ishares MSCI EAFE ETF 4 ishares MSCI EAFE Hedged ETF 4 n Fixed-income total (%) 4.5 Columbia Intermediate Bond 8 Columbia Corporate Income 7 Columbia Income Opportunities 4 Columbia U.S. Government Mortgage 6 Columbia U.S. Treasury Index Fund 6 ishares TIPS Bond 2 n Other total (%) Columbia Convertible Securities n Domestic equity n International equity n Fixed income n Other n Cash
51.8% Equities 48.2% Fixed income and cash ly 1.5% Equities 68.5% Fixed income and cash 16% Equities 84% Fixed income and cash n 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 n 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 n Fixed-income total (%) 44.7 Columbia Intermediate Bond 9.7 Columbia Corporate Income 10 Columbia Income Opportunities.5 Columbia U.S. Government Mortgage 10 Columbia Short Term Bond 2 Columbia U.S. Treasury Index 7 n Cash and cash equivalents total (%).5 CMG Ultra Short Term Bond.5 n 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 n 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 n Fixed-income total (%).5 Columbia Intermediate Bond 9 Columbia Corporate Income 15 Columbia Income Opportunities Columbia U.S. Government Mortgage 10 Columbia Short Term Bond Columbia U.S. Treasury Index 8 n Cash and cash equivalents total (%) 18 CMG Ultra Short Term Bond 18 n 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 n International equity total (%) 1 ishares MSCI EAFE ETF 0.5 ishares MSCI EAFE Hedged ETF 0.5 n Fixed-income total (%) 45 Columbia Intermediate Bond 10 Columbia Corporate Income 12 Columbia U.S. Government Mortgage 12 Columbia Short Term Bond Columbia U.S. Treasury Index 7 n Cash and cash equivalents total (%) 9 CMG Ultra Short Term Bond 5 Columbia Money Market 1 4 n Domestic equity n International equity n Fixed income n Other n Cash
College 100% Fixed income and cash n Fixed-income total (%) 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 n Cash and cash equivalents total (%) CMG Ultra Short Term Bond 40 Columbia Money Market 1 10 n Fixed income n 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 s 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. The ETF shares made available through the plan are listed for trading on an exchange and can be bought and sold on the secondary market at market prices. Although it is expected that the market price of an ETF share typically will approximate its net asset value (NAV), there may be times when the market price and the NAV vary significantly. Thus, the plan may pay more or less than NAV when it buys ETF shares on the secondary market and may receive more or less than NAV when it sells those shares.
PORTFOLIO CONSTRUCTION ADVISOR PROGRAM 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. With more than 2,000 people, including over 4 investment professionals based in North America, Europe and Asia, we manage $6 billion* of assets across developed and emerging market equities, fixed income, asset allocation solutions and alternatives. We are the 12th largest manager of long-term mutual fund assets in the U.S.** and the 5th largest manager of retail funds in the U.K.*** Our priority is the investment success of our clients. We aim to deliver the investment outcomes they expect through an investment approach that is team-based, performance-driven and risk-aware. Our culture is dynamic and interactive. By sharing our insights across asset classes and geographies, we generate richer perspectives on global, regional and local investment landscapes. The ability to exchange and debate investment ideas in a collaborative environment enriches our teams investment processes. More importantly, it results in better informed investment decisions for our clients. 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. * In U.S. dollars as of March 1, 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 1, 2015 for Columbia Management Investment Advisers, LLC. *** Source: Investment Association as of March 2015 for Threadneedle Asset Management Limited. 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. CT-FSA/24489 N (07/15) 5702/1227709