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Zach Conine State Treasurer
STATE OF NEVADA
OFFICE OF THE STATE TREASURER
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PUBLIC MEETING
AGENDA
MEETING OF THE BOARD OF TRUSTEES OF THE
COLLEGE SAVINGS PLANS OF NEVADA
Thursday September 17, 2020 at 10:00 a.m.
Locations:
Pursuant to the Governor’s Emergency Directive 006, as extended, there will not be a physical location
for this meeting. The public is welcome to participate by joining the Zoom Meeting at the following link
or phone number and entering the password when prompted.
Zoom Meeting Link: https://zoom.us/j/94749106869
Zoom Meeting Dial-in: 669-900-9128 | Webinar ID: 947 4910 6869
Please email [email protected] for Zoom Meeting password.
Agenda Items:
1. Roll Call.
2. Public Comment.
Comments from the public are invited at this time. Pursuant to NRS 241.020(2)(d)(7), the Board
intends to limit to 3 minutes the time for an individual to speak and may impose reasonable
restrictions on place or manner for such comment. No restriction will be imposed based on
viewpoint. Comment will only be received on matters relevant to the Board’s jurisdiction. The
Board may discuss but is precluded from acting on items raised during Public Comment that are
not on the agenda.
Consent Agenda
Consent Agenda - All matters in this sub-category are considered by the Board of Trustees to be
routine and may be acted upon in one motion. Most agenda items are phrased for a positive
action. However, the Board of Trustees may take other actions, such as hold, table, amend, etc.
3. For possible action to approve: the minutes of the College Savings Board of Trustees meeting
of June 26, 2020.
4. For possible action to approve: the Ascensus program manager’s report encompassing results
for Vanguard, USAA, SSgA Upromise, and Wealthfront 529 plans for the quarter ended June 30,
2020.
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5. For possible action to approve: the Putnam 529 for America program manager’s report for the
quarter ended June 30, 2020.
6. For possible action to approve: the Nevada Prepaid Tuition Program activity report for the
quarter ended March 31, 2020.
7. For possible action to approve: the Nevada Prepaid Tuition Program activity report for the
quarter ended June 30, 2020.
Discussion Agenda
8. For discussion: Annual marketing update and overview
a. State Treasurer’s Office / Kirvin Doak
b. 529 Partners
a. Putnam 529 for America
b. SSGA Upromise
c. Vanguard 529 College Savings Plan
d. Wealthfront 529 Plan
9. For discussion and possible action: Nevada Prepaid Tuition Investment
Monitoring Report prepared by Meketa Investment Group Inc for the quarter ending
June 30, 2020.
10. For discussion and possible action: Nevada 529 College Savings Plans Investment Monitoring
Report prepared by Meketa Investment Group Inc for the quarter ending June 30, 2020.
11. For discussion and possible action: Nevada Prepaid Tuition 2021 contract prices, open
enrollment dates and fee schedule.
12. For discussion and possible action: Nevada Prepaid Tuition 2021 Master Agreement
amendments.
13. For discussion: Update by Victory Capital Management 1-year acquisition of the USAA 529 Plan
a. Update on transition in conjunction with Ascensus
b. Investment Overview
c. Marketing Overview
14. Public Comment.
Comments from the public are invited at this time. Pursuant to NRS 241.020(2)(d)(7), the Board
intends to limit to 3 minutes the time for an individual to speak and may impose reasonable
restrictions on place or manner for such comment. No restriction will be imposed based on
viewpoint. Comment will only be received on matters relevant to the Board’s jurisdiction. The
Board may discuss but is precluded from acting on items raised during Public Comment that are
not on the agenda.
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15. ADJOURNMENT.
Notes:
Items may be taken out of order; items may be combined for consideration by the public body; and
items may be pulled or removed from the agenda at any time.
Prior to the commencement and conclusion of a quasi-judicial proceeding that may affect the due
process rights of an individual, the Board may refuse to consider public comment. See NRS
233B.126.
The Nevada College Savings Board of Trustees is pleased to make reasonable accommodations
for persons with physical disabilities. Please call (775) 684-7109 if assistance is needed.
Kirsten Van Ry may be contacted at [email protected] to obtain copies of supporting
materials.
Pursuant to the Governor’s Emergency Directive 006, as extended, this agenda has been posted
electronically at the following locations: Nevada Treasurer and the Nevada Public Notice.
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THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 3 September 17, 2020
Item: The Minutes of the College Savings Board of Trustees meeting of June 26, 2020. Summary: The minutes of the June 26, 2020 Board meeting have been prepared and are complete for review and approval. Fiscal Impact: None by this action. Recommendation:
To approve, as stated or amended (if applicable), the minutes of the June 26, 2020, College Savings Board of Trustees meeting.
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THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
MINUTES OF BOARD MEETING
June 26, 2020 =================================================================
The meeting was held by video conference from the Nevada Capitol Building, 101 N. Carson Street, Carson City, Nevada to the Grant Sawyer Building, 555 East Washington Avenue, Suite 5100, Las Vegas, Nevada. Other attendees participated by conference call. Board members present: Chairman– Treasurer Zach Conine – Carson City Andrew Clinger – Carson City Tiffany Greenameyer – Catherine Bartlett representing Tiffany Greenameyer Jeff Haag – Carson City Andrew Martin – Las Vegas Others present: Tara Hagan, Chief Deputy Treasurer Kirsten Van Ry, Senior Deputy Treasurer Tya Mathis-Coleman, Deputy – College Savings Ian Carr, Attorney General Eric White, Meketa Investment Group Christy Erickson, Vanguard Tom Hewitt, Ascensus Judy Minsk, Putnam Investments Joy Slabaugh, Vanguard Scott Donaldson, Vanguard Brittany Resendes, SSGA Nathaniel Gandy, Wealthfront
1. Roll Call Chairman Treasurer Conine called the meeting to order at 1:00 pm, and determined a quorum
was present.
2. Public Comment The Governor Guinn family submitted a letter of recommendation regarding Agenda Item #12
for the Board’s consideration. The letter is attached to these meeting minutes.
Consent Agenda
3. For possible action to approve: the minutes of the College Savings Board of Trustees meeting of February 24, 2020.
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4. For possible action to approve: the Ascensus program manager’s report encompassing results for Vanguard, USAA, SSgA Upromise, and Wealthfront 529 plans for the quarter ended December 31, 2019
5. For possible action to approve: the Ascensus program manager’s report encompassing results for Vanguard, USAA, SSgA Upromise, and Wealthfront 529 plans for the quarter ended March 31, 2020.
6. For possible action to approve: the Putnam 529 for America program manager’s report for the quarter ended December 31, 2019.
7. For possible action to approve: the Putnam 529 for America program manager’s report for the quarter ended March 31, 2020.
8. For possible action to approve: the Nevada Prepaid Tuition Program activity report for the quarter ended December 31, 2019.
9. For possible action to approve: the Nevada Prepaid Tuition Investment Monitoring Report prepared by Meketa Investment Group for the quarter ended December 31, 2019.
10. For possible action to approve: the Nevada 529 College Savings Plans Investment Monitoring Report prepared by Meketa Investment Group for the quarter ended December 31, 2019.
Member Clinger motioned to approve Agenda Items 3 – 10. Member Martin seconded the motion. Motion passed unanimously.
Discussion Agenda
11. For discussion: Governor Guinn Memorial Scholarship Program overview.
Kirsten Van Ry presented the Kenny C. Guinn Memorial Millennium Scholarship Program overview which includes scholarships for two (2) qualified applicants from northern Nevada and two (2) from southern Nevada. She noted the program was created during the 2011 session of Legislature following the death of Governor Guinn in July of 2010. The scholarships are funded from private gifts and donations made in honor of the late Governor Guinn. Staff reviews all applications for eligibility and the Board must award the scholarships to the winners annually.
No comments or questions from Board members
12. For discussion and possible action: 2020 Kenny C. Guinn Memorial Millennium Scholarship applications and selection of 4 recipients to receive the scholarship.
Treasurer Conine thanked all eight (8) applicants for submitting the scholarship packet and their commitment to serve the students in our state. He noted the scholarship is to help future teachers and now is the time for more educators in the state of Nevada and anything we can do to retain educators is a good first step. He stated all the applicants are great which made the choice difficult and expressed desire to give each applicant a scholarship.
Treasurer Conine noted that after much deliberation and input from the Guinn family, he noted the recommendation is to award the two northern Nevada scholarships as follows: i) Geraet Rauh
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whose passion for his community and his dedication to helping others was inspiring, and ii) Noah Walls whose commitment to serving our underserved communities and closing the achievement gap stood out.
Treasurer Conine asked if Board members wanted to add any other applicants for consideration. Treasurer Conine asked for a motion to award the two Kenny C. Guinn Memorial Millennium Scholarship Applications for Northern Nevada to Geraet Rauh and Noah Walls.
Motion from Member Clinger and Seconded by Member Martin and Haag. Motion passed unanimously. Treasurer Conine noted that after much deliberation and input from the Guinn family, he noted the recommendation is to award the two southern Nevada individuals the scholarships as follows: i) Courtney Dickinson whose commitment to teaching Nevada’s next generation had her taking high school courses on the subject ii) Kumi Chua whose essay spoke volumes to her character as she hopes to engage students not only on an academic level, but on a human level, recognizing the importance of creating a space where students can feel safe and free to be themselves. Treasurer Conine asked if Board members wanted to add any other applicants for consideration. Treasurer Conine asked for a motion to award the two Kenny C. Guinn Memorial Millennium Scholarship Applications for southern Nevada to Courtney Dickinson and Kumi Chua. Motion from Member Clinger and Seconded by Member Martin and Haag. Motion passed unanimously.
13. For discussion: Program Manager updates on COVID-19 impacts to business operations
Ascensus College Savings Tom Hewitt with Ascensus College Savings provided an overview of both Ascensus’s response to the COVID-19 pandemic and the four investment firm partners. The overview included customer call center impact, changes in participant behavior, impact to participant contributions or distributions, impact to business continuity and investment practices, and post-pandemic timeline for return to ‘normal’ operations, including the continuation of remote work for certain Ascensus staff. Putnam 529 for America Judy Minsk with Putnam Investments provided an overview of the firm’s response to the COVID-19 pandemic which included its impact on business continuity, impact to trading operations, communication and outreach to advisers, and post-pandemic timeline for return to ‘normal’ operations.
Treasurer Conine thanked the presenters for the information and asked if any board members had questions. He stated we all know the world is drastically different than it was six months ago, and we very much appreciate the peace of mind knowing that our partners are doing all they can to adapt to these challenging times and ensure minimal disruption to plan participants.
This item was presented as information only and no motion is required.
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14. For discussion and possible action: Nevada Prepaid Tuition Investment Monitoring Report prepared by Meketa Investment Group Inc for the quarter ending March 31, 2020. Eric White, the Meketa representative noted that overall the portfolio performed as expected, stating both the fixed income and covered calls managers posted solid returns during the difficult quarter. He stated on page 303 of the larger report, the Chicago Equity Partners fixed income manager produced a strong 6.7% rate of return outperforming its benchmark. The covered calls call manager strongly outperformed its benchmark as well. The passive US equity portfolio performed exactly in line with the market; falling just shy of 14% which outperformed the benchmark. Mr. White noted the good news is the second calendar quarter has been forming up to be a very strong market. The US equity market will likely be up greater than 15% with both fixed income and covered calls also positive. Member Andrew Martin questioned the performance to date in the second quarter versus the first and wondered where the portfolio stands currently. Mr. White noted the second quarter should be very strong and should offset the majority of the losses in the first quarter. He noted the data as of today has the stock market up about 18% in the second quarter and down 5% year-to-date. He stated that the first quarter, as a result of the pandemic has given us the worst economic environment we have seen in our lifetime but the market seems to have shrugged it off, noting the market has recovered almost all its losses from the first quarter.
Treasurer Conine stated as of March 31 the portfolio was down a little under $50 million in assets which is about a sixth of total trust fund assets but has recovered about two-thirds of that as of June 15. He noted that to the point of Mr. White this helps give us some context of where the market snapbacks have come from.
Motion from Member Martin and second from Member Clinger. Motion passed unanimously.
15. For discussion and possible action: Nevada 529 College Savings Plans Investment Monitoring Report prepared by Meketa Investment Group Inc for the quarter ending March 31, 2020.
Eric White with Meketa presented the investment monitoring report for quarter ended March 31, 2020. He noted that as stated in the previous agenda item the losses in the market in the first calendar quarter have been nearly restored during the second quarter. Due to this, he noted there is not a need to review with any detail the underlying performance of the funds in the first quarter report or the performance of the age or risk-based portfolios. He noted the majority of this agenda item will be spent on the watch list status memo.
Mr. White recommended removal of several funds from the watch list despite the overall poor market performance during the quarter. He stated the recommendation is to remove seven (7) of the funds. He started with the four (4) funds from the USAA plan. He stated the funds were
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placed on watch for organizational issues due to the acquisition of the plan by Victory in June 2019. All funds have had positive performances for nine months and seen little disruption in the management of the portfolios. The individual funds are the Income Stock Fund, Small Cap Stock Fund, Merging Market Fund, and the International Fund. Mr. White recommended the Vanguard Windsor and Vanguard US Growth funds be removed from watch status. The funds were also placed on watch due to organizational issues and both have performed well within expectations. Finally, he noted the International Government Inflation Protective Bond EFT in the SSGA plan is also being recommended for removal from watch. He noted the primary reason for the fund to be on watch was related to data issues coming from different providers. He noted staff was able to work with SSGA to clean up those data feeds and with that corrected, the fund no longer qualifies for watch status. Mr. White noted the list does have one fund to be placed on the watch list which is the GAA All Equity Fund with Putnam. He noted the fund has had choppy performance over the past ~18 months which has negatively affected it is short and mid-term performance, therefore, he is recommending it be placed on watch.
Motion from Member Haag and second from Member Martin. Motion passed unanimously.
16. For discussion and possible action: on investment changes for the Vanguard 529 plan, including modifications to the glidepath and pricing.
Vanguard representatives presented the recommended modifications to the Vanguard 529 glidepath. The enhancements include the use an enrollment-based (progressive) glidepath methodology and compressing the three (3) current risk-oriented glidepaths to a single progressive glidepath. Vanguard’s current glidepath is a risk-based stepped methodology which ‘steps’ beneficiaries out of equities and into fixed income and cash regardless of the market environment. As noted in Vanguard’s presentation, the smoothed glidepath does mitigate risk for participants especially during times of high volatility or downward market pressures. Vanguard’s recommendation to move to a single glidepath for all participants improves the plan’s simplicity and ease of enrollment. Eric White with Meketa presented an independent analysis of the glidepath and opined on the mapping of the existing Vanguard participants into the new glidepath. Mr. White noted Meketa’s overall support of the proposed Vanguard changes and noted the firm is strongly in favor of moving to an enrollment-based glidepath methodology. Mr. White did review the firm’s issues with compressing the current three risk-oriented glidepaths (conservative, moderate, and aggressive). He noted the concern is in increasing participants’ risk exposure unilaterally after participants have previously self-identified their preferred risk exposure. He noted the firm recommends that if the Board is not comfortable with altering participant designated risk-return profiles that the Board direct Vanguard to explore alternative mapping methodologies, especially for participants who have self-identified as conservative. Vanguard representatives presented the pricing reduction recommendations to the Board. The reductions noted a streamlining of the program management fee across all underlying fund options and the decrease in fees as assets under management increased.
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Treasurer Conine noted appreciation in Vanguard’s willingness to work with staff to codify the additional price breakpoint in the contract, as this had not been done in prior years. He noted that this request in fee reduction was precipitate in part due to the downgrade of the Vanguard plan by Morningstar from a gold rated plan to sliver. Morningstar noted in its report that the Vanguard plan remains below average that the plan has not kept pace with the price reductions in plans across the county. He asked Vanguard representatives if they believed this price reduction was enough to return the plan to gold status with Morningstar. Vanguard representatives noted that it is difficult to predict the actions of Morningstar and stated that the formula for rating the plans is not transparent, making it impossible to know the weight plan fees carry in the rating system. It was noted that the consistently priced program management fees should be viewed positively by Morningstar while simplifying the plan for participants. Member Andrew Clinger moved to improve and accept Vanguards glidepath modifications and direct staff to work with Vanguard to map the current conservative participants consistent with their equity allocation rather than the corresponding age point on the new glidepath and create participant communications which clearly outline both the changes of risk and available alternative investment options contingent upon approval by Meketa and staff. Treasurer Conine asked for any discussion on the motion. Member Andrew Martin noted his continued discomfort with the percentage of foreign investments in the program and agreed with Meketa regarding concerns with increasing the risk to persons who had previously chosen fewer equities, including foreign equites. He noted he would like to hear from the Treasurer and staff on its opinions regarding this recommended change in the glidepath. Treasurer Conine noted he is comfortable with the changes being recommended and noted Vanguard’s willingness to work with his staff to better align the existing participants with their current asset allocation. Tara Hagan noted staff has been working with Vanguard representatives to map the conservative group consistent with their current equity allocations and is confident the two groups can come to an agreeable resolution. She noted that Vanguard has been more than willing to have discussions to ensure staff and Meketa have input in the process and participant communication to ensure clarity for existing participants, in both the change and their options, should they not want to be mapped to the new glidepath.
Motion from Member Clinger and Second from Member Haag. Motion passed unanimously.
17. Public Comment There was no public comment in Carson City, Las Vegas or on the telephone. Member Clinger motioned to adjourn at 3:02pm. Member Martin seconded the motion. Motion passed unanimously.
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THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 4 September 17, 2020
Item: Ascensus program manager’s report encompassing results for Vanguard, USAA, SSgA Upromise, and Wealthfront 529 plans for the quarter ended June 30, 2020. Summary: Thomas Hewitt, Vice President, Relationship Management with Ascensus College Savings, will be available to answer questions. Fiscal Impact: None by this action. Recommendation:
To accept and approve the Ascensus College Savings Program Manager Report for the quarter ending June 30, 2020.
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College Savings Plans of Nevada
Board of Trustees Meeting
September 17, 2020
Program Management Report
FY 4th - CY 2nd Quarter Ended June 30th , 2020
CONFIDENTIAL 13
College Savings Plans of Nevada
Board of Trustees Meeting
September, 2020
Table of ContentsPages
All Plan Executive Summary 3
All Plan Highlights 4
SSGA Upromise 529 Plan- SLA 6
Marketing Activity SSGA Upromise 529 Plan 10
SSGA Upromise 529 Plan- RIA 21
The Vanguard® 529 College Savings Plan 24
Victory Capital/USAA 529 College Savings Plan 29
Wealthfront College Savings Plan® 33
2
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 14
Executive Summary
SSGA Upromise 529 Plan
• At the end of the second quarter 2020, assets in the SSGA Upromise 529 Plan totaled $1.5 B, which was flat
year-over-year from Q2 2019. 584 new funded accounts was down from 651 for the same period last year.
Total Funded Accounts were down 4% compared to the same time last year. There were a total of 5,209
unique account holders (NV residents) at the end of the quarter. Average account size for the plan is
$12,190 with NV average account assets at $7,727.
Vanguard 529® College Savings Plan
• Second Quarter 2020 assets in the Vanguard 529 College Savings Plan totaled just over $22.7 B, which was
a 9.9 % increase over 2Q 2019. Total Funded Accounts are 464,115 with 7,619 NV resident accounts. There
were a total of 4,440 unique NV account holders at the end of the quarter. Average account size for the plan
is $48,873 with NV average account assets at $34,310.
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COLLEGE SAVINGS PLANS OF NEVADAExecutive Summary
FY 4th – CY 2nd Quarter Ended June 30, 2020
USAA ® 529 College Savings Plan
• Second quarter assets in the USAA 529 College Savings Plan totaled over $4.3 B, which was a 3.6%
increase over 2Q 2019. Total Funded Accounts are 303,932 with 3,786 NV resident accounts. Average
account size for the plan is $14,029 with NV average account assets at $111,895.
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
Wealthfront College Savings Plan
• Second Quarter 2020 assets in the Wealthfront 529 College Savings Plan totaled $284 million. Total Funded
Accounts are 16,878 with 161 NV resident accounts. Average account size for the plan is $16,824 with NV
average account assets at $11,120.
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Highlights This Period
4
Second Quarter 2020 First Quarter 2019 Second Quarter 2019
SSGA Upromise
529
The Vanguard 529 College Savings Plan
USAA 529 College Savings
Plan
WealthfrontCollege Savings
Program
TotalSSGA
Upromise 529
The Vanguard
529 College Savings Plan
USAA College Savings Plan
WealthfrontCollege Savings
Program
TotalSSGA
Upromise 529
The Vanguard 529 College Savings Plan
USAA 529 College
Savings Plan
WealthfrontCollege Savings
Program
Total
AUM (Millions)$1,482.97 $22,682.93 $4,263.94 $283.97 $28,713.80 $1,368.15 $19,768.51 $3,816.83 $236.35 $25,189.83 $1,488.13 $20,428.51 $4,125.09 $213.40 $26,255.14
Active Accounts 138,227 479,641 315,479 20,070 953,417 137,519 468,510 309,051 19,457 934,537 134,995 426,520 291,083 16,649 869,247
Funded Accounts121,651 464,115 303,932 16,878 906,576 122,529 456,005 304,914 16,492 899,940 127,101 426,532 299,013 14,256 866,902
NV Account Owners (Unique)5,209 4,440 2,205 106 11,960 5,150 4,332 2,204 103 11,789 4,994 3,990 2,139 95 11,218.
Account Owners 85,217 265,301 179,278 11,797 541,593 85,884 260,921 180,006 11,597 538,408 89,234 244,775 177,667 10,306 521,982
New Funded Accounts584 9,986 6,071 544 17,185 643 14,215 6,750 984 22,592 651 10,213 5,567 766 17,197
Average Account Assets$12,190.35 $48,873.50 $14,029.26 $16,824.82 $31,672.80 $11,165.91 $43,351.51 $12,517.72 $14,331.24 $27,990.57 $11,708.25 $47,894.44 $13,795.68 $14,969.37 $30,286.16
NV Funded Accounts9,155 7,619 3,786 161 20,721 9,043 7,416 3,786 155 20,400 8,576 6,817 3,641 136 19,170
NV Average Account Assets$7,727.22 $34,310.43 $11,895.06 $11,120.24 $18,289.60 $7,082.71 $30,513.27 $10,642.09 $9,670.69 $16,280.65 $7,551.34 $34,326.51 $11,726.10 $8,384.69 $17,871.63
NV AUM (Millions)$70.74 $261.41 $45.03 $1.79 $378.98 $64.05 $226.29 $40.29 $1.50 $332.13 $64.76 $234.00 $42.69 $1.14 $342.60
COLLEGE SAVINGS PLANS OF NEVADAHighlights This Period
FY 4th – CY 2nd Quarter Ended June 30, 2020
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 16
Highlights This Period
5
Second Quarter 2020 First Quarter 2020 Second Quarter 2019
SSGA Upromise
529
The Vanguard 529 College Savings Plan
USAA 529 College Savings
Plan
WealthfrontCollege Savings
Program
TotalSSGA
Upromise 529
The Vanguard
529 College Savings Plan
USAA College Savings Plan
WealthfrontCollege Savings
Program
TotalSSGA
Upromise 529
The Vanguard 529 College Savings Plan
USAA 529 College
Savings Plan
WealthfrontCollege Savings
Program
Total
Inflow (Millions)
Contribution $24.76 $391.88 $110.60 $14.82 $542.07 $31.50 $725.04 $145.99 $24.81 $927.34 $28.46 $432.63 $117.58 $16.97 $595.64
Plan Transfer In $0.01 $16.85 $0.22 $0.46 $17.54 $4.67 $0.24 $0.36 $5.27 $0.08 $3.38 $0.07 $0.69 $4.21
Rollover In $1.53 $34.39 $1.89 $0.53 $38.33 $0.33 $49.15 $2.74 $0.84 $53.06 $0.18 $48.07 $3.11 $0.41 $51.77
Gross Contributions $26.30 $443.12 $112.71 $15.81 $597.94 $31.83 $778.86 $148.97 $26.02 $985.67 $28.71 $484.08 $120.75 $18.07 $651.62
Outflow (Millions)
Fee ($0.47) ($0.01) ($0.04) ($0.13) ($0.65) ($0.54) ($0.02) ($0.07) ($0.14) ($0.76) ($0.52) ($0.01) ($0.04) ($0.10) ($0.67)
Plan Transfer Out ($0.54) ($0.08) ($16.74) ($17.36) ($1.11) ($0.28) ($3.87) ($5.25) ($0.68) ($0.38) ($3.01) ($0.02) ($4.09)
Rollover Out ($2.51) ($26.75) ($64.05) ($93.31) ($3.74) ($30.57) ($16.11) ($0.00) ($50.41) ($3.46) ($27.36) ($9.83) ($0.59) ($41.24)
Withdrawal ($14.26) ($89.09) ($37.32) ($4.00) ($144.67) ($30.78) ($205.21) ($62.52) ($3.96) ($302.46) ($20.26) ($100.67) ($37.64) ($1.09) ($159.66)
Gross Distributions ($17.78) ($115.93) ($118.16) ($4.12) ($255.99) ($36.16) ($236.07) ($82.56) ($4.09) ($358.88) ($24.92) ($128.42) ($50.52) ($1.79) ($205.65)
Total Net Contributions(Millions)
$8.52 $327.19 ($5.45) $11.69 $341.95 ($4.33) $542.78 $66.41 $21.93 $626.79 $3.79 $355.66 $70.24 $16.27 $445.96
Rollovers In (Thousands)
Plan Transfer In $11.24 $16,853.46 $216.71 $458.55 $17,539.97 $4,669.51 $241.31 $361.04 $5,271.86 $75.20 $3,377.59 $66.30 $691.58 $4,210.66
Rollover In $1,525.30 $34,385.88 $1,891.59 $532.23 $38,334.99 $331.27 $49,151.50 $2,736.56 $844.17 $53,063.49 $176.05 $48,073.55 $3,105.53 $411.77 $51,766.90
Gross Rollovers In $1,536.54 $51,239.34 $2,108.30 $990.78 $55,874.96 $331.27 $53,821.01 $2,977.87 $1,205.21 $58,335.35 $251.25 $51,451.14 $3,171.83 $1,103.34 $55,977.56
Rollovers Out (Thousands)
Plan Transfer Out ($535.46) ($78.41) ($16,741.58) ($17,355.44) ($1,108.76) ($277.30) ($3,867.04) ($5,253.10) ($677.52) ($378.00) ($3,014.16) ($19.92) ($4,089.60)
Rollover Out ($2,507.21) ($26,752.48) ($64,054.32) ($93,314.01) ($3,738.03) ($30,565.87) ($16,105.30) ($0.51) ($50,409.71) ($3,464.80) ($27,358.82) ($9,829.77) ($586.69) ($41,240.08)
Gross Rollovers Out ($3,042.66) ($26,830.89) ($80,795.89)($110,669.4
5)($4,846.78) ($30,843.17) ($19,972.34) ($0.51) ($55,662.80) ($4,142.32) ($27,736.83) ($12,843.93) ($606.61) ($45,329.69)
Net Rollovers (Thousands) ($1,506.12) $24,408.44 ($78,687.59) $990.78 ($54,794.49) ($4,515.52) $22,977.84 ($16,994.47) $1,204.70 $2,672.55 ($3,891.07) $23,714.31 ($9,672.10) $496.74 $10,647.88
COLLEGE SAVINGS PLANS OF NEVADAHighlights This Period
FY 4th – CY 2nd Quarter Ended June 30, 2020
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 17
SSGA Upromise 529 Plan
Service Levels
6CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 18
7
Service Level SSgA Upromise 529 Actual 4/30/2020
SSgA Upromise 529 Actual 5/31/2020
SSgA Upromise 529 Actual 6/30/2020Agreement
TRANSACTIONS
Financial sub deposits (same day) 98.00% 100% 100% 100%
Financial sub deposits (accuracy) 98.00% 100% 100% 100%
New account set up (same day) 98.00% 100% 100% 100%
New account set up (accuracy) 97.00% 100% 100% 100%
Withdrawal (same day) 98.00% 100% 100% 100%
Withdrawal (accuracy) 98.00% N/A 100% N/A
Non-financial maintenance (3 day) 98.00% 100% 100% 100%
Non-financial maintenance (accuracy) 98.00% 100% 100% 100%
Financial correspondence (2 day) 98.00% 100% 100% 100%
Non-financial correspondence (7 day) 98.00% 100% 100% 100%
As of trading (accuracy) 98.00% 95% 100% 100%
CORRESPONDENCE
Average answer time 30 seconds or less :16 :29 :13
Average abandonment rate 5% or less .25% 1:30% .14%
Phone inquiries responded to Within 30 seconds 1,202 (90.02%) 1,232 (87.01%) 1,416 (95.13%)
Email processed Within 2 business days 96% 96% 98%
Meet licensing requirements
INFORMATION DELIVERY
Marketing kits delivered Within 3 business days Yes Yes Yes
Annual statements, quarterly statements and confirms
Delivered within industry guidelines Yes Yes Yes
COLLEGE SAVINGS PLANS OF NEVADASSgA Upromise 529 Plan Client Service Metrics
2nd Quarter Ended June 30, 2020
19
8
COLLEGE SAVINGS PLANS OF NEVADASSgA Upromise 529 Plan Client Service Metrics
2nd Quarter Ended June 30, 2020
Client Service Metrics – Missed SLA Explanation
SSgA – As of trading accuracy (SLA 98% / Actual SLA 95%) (April)
➢ 20 backdates reviewed with one (1) error identified
• Withdrawal was not overnighted – U383194644
20
9
Marketing Activity
Table of Contents
▪ Section I: SSGA Upromise 529 Plan
▪ Section II: Vanguard 529® College Savings Plan
▪ Section III: Victory Capital/USAA 529 College Savings Plan®
▪ Section IV: Wealthfront College Savings Plan
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 21
Section I
SSGA Upromise 529 Plan
Marketing Activity
10CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 22
Search Engine Marketing
2
April 1 – June 30, 2020
Metrics:
• Impressions = 8,931
• Clicks = 882
• CTR = 9.86%
• Search Impression Share = 73.65%
• Spend/Click = $5.98
• Total Conversions = 4
SSGA Upromise 529 PlanMarketing Plan Detail
FY 4th – CY 2nd Quarter Ended June 30, 2020
23
Savingforcollege.com
2
April 1 – June 30, 2020
April May June Total/Avg.
Enroll Now Paid Clicks 77 77 77 231
Enroll Now Free Clicks 18 25 26 69
Spend/Click $10.50 $9.78 $9.68 $9.99
Spend/Conversion $199.43 $332.38 $997.15 $509.65
Total Conversion 5 3 1 9
SSGA Upromise 529 PlanMarketing Plan Detail
FY 4th – CY 2nd Quarter Ended June 30, 2020
24
Web Traffic Volume: April – June, 2019 vs. 2020
2
SSGA Upromise 529 PlanMarketing Plan Detail
FY 4th – CY 2nd Quarter Ended June 30, 2020
25
Web Traffic Location (US): April – June 2020
3
“not set” represents web traffic that is not trackable via Google Analytics location identification
SSGA Upromise 529 PlanMarketing Plan Detail
FY 4th – CY 2nd Quarter Ended June 30, 2020
State Users New Users SessionsBounce
Rate
Pages/
Session
Avg.
Session
Duration
Create
Account
Online
(not set) 16,159 16,212 16,237 57.61% 1.49 00:01 0
California 6,385 5,672 10,982 19.04% 16.02 03:56 58
North Carolina 4,436 4,278 5,740 49.63% 7.56 01:35 12
Texas 4,328 3,790 7,748 17.48% 16.11 03:58 41
Nevada 3,883 3,452 7,086 20.89% 15.96 04:15 106
Florida 3,821 3,352 6,508 17.07% 16.77 04:08 28
New Jersey 3,676 3,161 6,991 13.79% 16.44 03:51 24
Pennsylvania 2,528 2,174 4,822 14.29% 16.10 03:47 10
Massachusetts 2,407 2,089 4,606 13.40% 16.58 03:48 18
Virginia 2,350 2,059 3,687 21.81% 15.78 03:54 16
TOTAL 72,761 67,132 113,166 25.96% 13.24 03:08 494
26
Web Traffic Location (Nevada): April – June 2020
4
Google Analytics is unable to dig deeper into zip code territories within the Las Vegas area
SSGA Upromise 529 PlanMarketing Plan Detail
FY 4th – CY 2nd Quarter Ended June 30, 2020
City Users New Users SessionsBounce
Rate
Pages/
Session
Avg.
Session
Duration
Create
Account
Online
Las Vegas 2,569 2,300 4,910 21.10% 15.39 04:09 71
Reno 698 601 1,160 19.14% 16.87 04:28 17
Carson City 193 168 293 26.96% 18.39 04:11 5
Sparks 176 149 273 18.32% 18.71 04:59 5
Elko 37 31 53 33.96% 13.25 03:17 2
Gardnerville
Ranchos27 23 42 19.05% 16.26 05:36 1
Winnemucca 25 24 40 27.50% 16.40 03:14 1
Gardnerville 20 16 35 28.57% 10.00 02:10 0
Pahrump 20 19 26 19.23% 24.04 05:09 0
Incline Village 18 14 38 10.53% 12.95 03:09 0
TOTAL 3,883 3,452 7,086 20.89% 15.96 04:15 106
27
Top Source/Medium: April – June 2020
5
SSGA Upromise 529 PlanMarketing Plan Detail
FY 4th – CY 2nd Quarter Ended June 30, 2020
Source/Medium Users New Users Sessions Pages/
Session
Average Session
Duration
Account
Conversions
Direct/None 44,878 41,165 68,920 11.99 02:41 174
Google/Organic 11,587 9,474 20,659 19.76 04:53 127
Google/CPC 9,051 9,007 10.065 1.71 00:34 3
NV Account Owner/Email 2,927 2,579 4,005 18.95 04:26 21
Upromise.com/referral 2,725 2,544 3,335 13.62 04:06 76
Bing/organic 1,488 1,087 2,628 21.30 05:12 13
Yahoo/organic 515 388 917 23.19 05:46 6
Nevadatreasurer.gov/
referral314 264 398 11.61 04:41 12
NV Account Owner/Email 264 193 368 21.76 05:24 1
Nevadas529.com/online 214 99 474 18.82 05:56 19
TOTAL 73,592 67,864 114,473 13.23 03:09 498
28
All Campaigns: April – June 2020
6
Campaign Name Users New
Users
Sessions Pages/
Session
Average Session
Duration
Account
Conversions
529 Day Email (5/29) 2,927 2,579 4,005 18.95 04:26 21
Paid Search/SEM 739 674 955 4.39 01:41 2
Nevadas529.com Traffic 211 97 469 18.86 05:58 19
Refund Recontribution Email
(6/20)180 146 244 20.89 05:01 1
SFC.com “Enroll Now” Button 157 132 233 10.79 04:45 9
2019 Payroll Direct Deposit AO
Email59 20 117 20.93 04:41 0
2019 Year End AO Email 57 22 119 22.41 06:23 1
2019 November Withdrawal AO
Email52 26 76 21.39 06:00 0
Sage Website “Learn More” Button 45 31 61 8.10 04:24 0
2019 November Ugift Holiday AO
Email24 7 45 16.51 04:34 1
TOTAL 4,495 3.797 6,508 16.73 04:16 56
SSGA Upromise 529 PlanMarketing Plan Detail
FY 4th – CY 2nd Quarter Ended June 30, 2020
29
Onboarding Emails: April – June 2020
11
Version Delivered
Count
Open Rate Clickthrough
Rate
Click to Open
Rate
Summary (National) 431 56.81% (+35.81%) 5.90% (+4.4%) 10.38% (+6.38%)
Summary (Nevada) 147 68.95% (+47.95%) 16.82% (+15.32%) 24.21% (+20.21%)
AIP 201 47.22% (+26.22%) 2.31% (+0.81%) 4.92% (+0.92%)
Ugift 27,010 25.63% (+4.63%) 1.02% (-0.48%) 4.05% (+0.05%)
E-delivery 57 38.13% (+17.135%) 3.51% (+2.01%) 8.33% (+4.33%)
SSGA Upromise 529 PlanMarketing Plan Detail
FY 4th – CY 2nd Quarter Ended June 30, 2020
30
Prospect Enrollment – Total
15
Campaign Name Campaign
Prospects
April
Enrollment
May
Enrollment
June
Enrollment
Total Enrollments*
(Lifetime)
SSGA September 2019 529 Contest 212 0 0 4 158
SSGA September 2018 529 Contest 303 0 0 1 189
SSGA May 2019 529 Contest 153 0 0 4 --
SSGA May 2018 529 Contest 228 0 0 3 181
SSGA May 2017 529 Giveaway905 0 0 2 466
SSGA September 2017 529 Giveaway349 1 0 0 219
SSGA September 2016 529 College Savings Month
Contest798 0 2 0 259
Field Rep Activity: Fam Fest 6/1/2019 -- 0 1 0 --
Field Rep Activity: Women$Reno -- 1 0 0 --
Field Rep Activity: Reedom ES Kinder 7/13/2017 -- 2 0 0 --
Field Rep Activity: Fam Fest 6/3/2017 -- 1 0 0 --
Field Rep Activity: Mexican Consulate 11/22/2019 -- 0 0 2 --
Field Rep Activity: TRPA 10/30/2018 -- 0 0 1 --
Field Rep Activity: Konami -- 0 0 1 --
Mostsweeps 2/25/2020 -- 1 0 0 --
*Each beneficiary within a single account is counted as a separate enrollment.
SSGA Upromise 529 PlanMarketing Plan Detail
FY 4th – CY 2nd Quarter Ended June 30, 2020
31
10
Email Metrics Explained
SSGA Upromise 529 PlanMarketing Plan Detail
FY 4th – CY 2nd Quarter Ended June 30, 2020
32
SSGA Upromise 529 Plan
RIA Marketing & Distribution Initiatives
21CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 33
Direct Marketing continues to be the main avenue to engage with Advisors via email communications
• A direct marketing email deployed in May on 5/29 day to an audience of 16,000 RIAs and IBDs highlighting
client-ready resources that advisors can easily share to educate clients on the importance of opening a
529 account
• The email promoted a series of popular material that is frequently downloaded from the advisor site
including a 529 Frequently Asked Questions piece, a brochure focused on Dispelling Myths of 529 plans
as well as an infographic explaining the Tax Law benefits and new ways 529 plans can be utilized
• This email outperformed the 2019 averages across all viewership and engagement metrics with an
open rate of 24.28% and viewer engagement rate of 6.5%
Paid Search generated 2,660,096 impressions across Search and Google Display Network
• Paid search saw it’s highest performing quarter in terms of impressions
• Download tracking implemented in October ‘19 continues to prove successful in
capturing document downloads from the advisor site, with 904 downloads in Q2
which is up 11.33% from Q1
• Google Display Network (GDN) ads were introduced in Q1, linking engagers to material
on the advisor site and producing an impressive number of downloads
• GDN proved most successful in terms of impressions with 2,488,883 total impressions,
equaling 94% of the combined impressions from Search and GDN
• Quarter over quarter, the top keyword continues to be “+529 +plan” concluding that this
search term specifically leads to the highest visitor conversion rate
Source: State Street Global Advisors, EMI, Ascensus College Savings. As of June 2020.
2991322.2.1.AM.INST
SSGA Upromise 529 Plan — RIA Marketing & Distribution Initiatives —
Q2 2020 RIA Marketing Highlights
34
Important Disclosures
For use with Ascensus College Savings only.
Investing involves risk including the risk of loss of principal.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does
not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or
completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
Standard & Poor’s, S&P and SPDR are registered trademarks of Standard & Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark
Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation.
State Street Corporation’s financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of
such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or
interruptions of any index.
The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to
the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.
For more information about the SSGA Upromise 529 Plan (“the Plan”) download the Plan Description and Participation Agreement or request one by calling 1-800-587-7305.
Investment objectives, risks, charges, expenses, and other important information are included in the Plan Description; read and consider it carefully before investing.
Ascensus Broker Dealer Services, LLC. (“ABD”) is distributor of the Plan.
Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds,
and protection from creditors that are only available for investments in that state’s qualified tuition program. You should also consult your financial, tax, or other advisor to
learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529
college savings plan(s), or any other 529 plan, to learn more about those plans’ features, benefits, and limitations. Keep in mind that state-based benefits should be one of
many appropriately weighted factors to be considered when making an investment decision.
Web: www.ssga.com www.ssga.upromise529.com
©2020 State Street Corporation - All Rights Reserved
Tracking Number: 2991322.2.1.AM.INST
Expiration Date: November 30, 2020
2991322.2.1.AM.INST35
Section II
Vanguard 529 ® College Savings Plan
Marketing Activity
24CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 36
Grow the total number of accounts in the VG 529 Plan through:
• Raising awareness as the plan of choice for Nevada residents, Vanguard retail clients, and
education savers nationwide
• Increasing the number of new marketing-attributed accounts
• Deepening engagement and driving positive outcomes for existing 529 plan clients
THE VANGUARD® 529 COLLEGE SAVINGS PLAN FY 4th / CY 2nd Quarter Marketing Activity
Marketing & Communications
Q2 2020 CAMPAIGN RESULTS
• Advertising
• Client engagement
➢ Recontribution campaign
➢ Highlighter email
➢ 3 Articles
• Social media
• 5/29 Day
➢ Blog
➢ eNewsletter promotion
➢ Social media promotion
Q3 2020 EFFORTS IN FLIGHT
GO
AL
S
• Marketing planning
• Advertising
➢ Search
➢ Remarketing
➢ Site direct
➢ Experimentation
• Social media
• Content calendar
37
Campaign details
Goal
Acquire new marketing-attributed accounts
Target Audience
• Prospects searching for college savings related content
• Users who have visited college savings content on
Vanguard.com
• Parents 29 to 49 with children under age 10
• Grandparents of young children
Channels
• Paid search
• Remarketing
• Site direct
Timing
Q2 rounded out the Vanguard 529 fiscal year for 2019/2020. Advertising
ran as a test during graduation season, back-to-school, in our proven
timeframe of Q4, and experimentally in Q1 2020.
THE VANGUARD® 529 COLLEGE SAVINGS PLAN FY 4th / CY 2nd Quarter Marketing Activity
AdvertisingPaid search, Remarketing, & Site direct
Final campaign results & key learnings
4,552 – New accounts that were 529 ad-exposed
$1.085 MM – Client generated value
915 – Incremental 529 new accounts
$1,042 – Cost per acquisition
$217K – Incremental client generated value
38
THE VANGUARD® 529 COLLEGE SAVINGS PLAN FY 4th / CY 2nd Quarter Marketing Activity
Client EngagementMarket volatility
Campaign details & results
Goal
Deepen engagement with existing account owners and reassure them during
uncertain economic times.
Channel
Email & web articles
Timing & Description
March introduced investor uncertainty as COVID-19 spread broadly, market
turbulence ramped up, and shelter-in-place instructions were rolled out. We
aimed to remain a calming and consistent presence in investor lives by providing
touchpoints proactively in areas where clients may be looking for guidance.
In addition to new articles elevated to the web, we added FAQ to address how
clients could best self-provision contributions, withdrawals, and other account
maintenance without having to wait on the phone during potentially elevated wait
times.
Beyond market turbulence, with shelter-in-place, students were sent home from
college and many investors were receiving refund checks. The email sent
outlined instructions for recontributing eligible dollars back into the Vanguard 529.
Campaign pieces
• Recontribution email (April)
• Highlighter email (May)
• 3 New articles
Results
Recontribution email:
✓ Open rate: 49%
✓ Click to open rate: 1%
Article engagement:
✓ 5171 visits to "sleep well no matter the market"
✓ 1569 visits to "3 guidelines"
✓ 681 visits to "college investing age by age" linked in position 4
✓ 366 visits to "you asked, we're answering"
39
THE VANGUARD® 529 COLLEGE SAVINGS PLAN FY 4th / CY 2nd Quarter Marketing Activity
Social MediaTwitter, Facebook, Instagram & LinkedIn
Average
Engagement
Total
Impressions
Average
Clicks
1.6% 182K 1190
Average
Engagement
Total
Impressions
2.5% 53K 95
Average
Clicks
Average
Engagement
Total
Impressions
Average
Clicks
2.5% 134K 382
Average
Engagement
Total
Impressions
1.8% 60K 103
Average
Clicks
40
THE VANGUARD® 529 COLLEGE SAVINGS PLAN FY 4th / CY 2nd Quarter Marketing Activity
5/29 DayBlog, eITV, Social Media
Campaign details & results
Goal
Provide relatable, educational content to guide investors away from taking short-term action as a result of
market volatility that could affect likelihood of reaching their education savings goals long-term.
Channel
Blog, email, social media
Traffic drivers
The blog elevated just before 5/29 day, with traffic being driven by social media and Vanguard’s email
newsletter “In The Vanguard”.
Results
Blog
✓ 6,448 page visits and over 5,940 unique visitors
✓ Average dwell time: 3 minutes, 35 seconds
In The Vanguard E-Newsletter
✓ Of all visits to blog page, 4,228 (66%) came from eITV newsletter
Social Media
✓ 1.71% engagement rate, 41 reactions, 3 shares, 7 comments, 102 link clicks
✓ Data not available (data aggregator issue?)
✓ 1.08% engagement rate, 49 likes, 11 replies, 13 retweets, 629 link clicks
✓ 2.32% engagement rate, 242 likes, 3 comments
41
Section III
Victory Capital
USAA 529 College Savings Plan®
Marketing Activity
30CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 42
USAA Q2 Metrics
COLLEGE SAVINGS PLANS OF NEVADA
Q2 2020
USAA Marketing Activities
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
31
April 2020 Results
Email Opens Open Rate
Clicks Click Rate
529 74k 19.9% 1.1k 0.31%
529 Nevada
0.1k 51.4% 5 2.34%
May 2020 Results
Email Opens Open Rate
Clicks Click Rate
529 96k 22.1 1.5 0.34
529 Nevada
39 26.9% 3 2.07
June 2020 Results
Email Opens Open Rate
Clicks Click Rate
529 438k 15.2% 2k 0.4%
529 Nevada
27 18.5% 5 3.4%
Summary:
➢ The 529 Nevada emails continue to have
higher click rates overall
➢ Messages encouraged automatic
investment plans across new accounts and
periodic reviews to increase contribution
amounts.
43
Victory Capital Q2 Metrics
COLLEGE SAVINGS PLANS OF NEVADA
Q2 2020
USAA Marketing Activities
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
32
May 2020 Results
Email Delivered Open Rate Click Rate
529 Day –General Audience
131,656 28.3% 0.3%
529 Day _ AIP
100,253 51% 0.8%
529 Day –No AIP
71,584 33.8% 0.8%
Social Media Performance: ➢ Both 529 Day tweets were the highest performing tweets in May on Twitter➢ The 529 Day video tweet had a 9.9% engagement rate and our donation announcement had
a 4.7% engagement rate➢ The 529 Day post on LinkedIn was our third highest performing post in the month of May with
an 8.18% engagement rate and 544 video views.➢ Our engagement rates far exceed financial services industry standard of 0.66% according to Rival IQ.
44
2H2020 529 Objectives & Tactics
COLLEGE SAVINGS PLANS OF NEVADA
Q2 2020
Serve the educational needs of the military community
Objectives➢ Ongoing support for Nevada residence➢ Raise awareness of Victory Capital to include a focus on 529 and Distinguished Valor
Matching Program➢ Introduce partnership with Military Child Education Coalition (MCEC)
Tactics
➢ Finalize new 529 pages for Victory Capital website scheduled to launch later this year
➢ Back to School Campaign to drive awareness
➢ Launched social B2C channel to drive awareness and lead gen for 529
➢ Provide college planning guidance
➢ Continue Paid Media to expand outside specific targets
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
33
45
COLLEGE SAVINGS PLANS OF NEVADA
Q2 2020
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
34
New Digital Page: USAA 529 College Savings Plan Homepage
46
COLLEGE SAVINGS PLANS OF NEVADA
Q2 2020
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
35
New Digital Page: USAA 529 Distinguished Valor Matching Grant Program
47
Disclosures
Consider the investment objectives, risks, charges and expenses of the USAA 529 College Savings Plan
(Plan) carefully before investing. Call 800-235-8396 to request a Plan Description and Participation
Agreement containing this and other information about the Plan from Victory Capital Advisers, Inc.
Underwriter and Distributor. Read it carefully before investing. You should compare the USAA Plan with
any 529 Plan offered by your home state or your beneficiary’s home state and consider, before investing,
any state tax or other state benefits such as financial aid, scholarship funds, and protection from
creditors that are only available for investments in the home state’s plan.
Victory Capital means Victory Capital Management Inc., the investment manager of the USAA Mutual Funds. USAA
Mutual Funds are distributed by Victory Capital Advisers, Inc., a broker dealer registered with FINRA and an affiliate
of Victory Capital. Victory Capital and its affiliates are not affiliated with United Services Automobile Association or
its affiliates. USAA and the USAA logo are registered trademarks and the USAA Mutual Funds logo is a trademark
of United Services Automobile Association and are being used by Victory Capital and its affiliates under license.
Interests in the USAA 529 College Savings Plan™ (Plan) are municipal fund securities issued by the Nevada
College Savings Trust Fund (Trust). The value of an investment in the Plan will vary with market conditions. The
Plan is administered by the Nevada State Treasurer, Zach Conine. Victory Capital Management Inc. provides
investment management services, and Victory Capital Advisers, Inc. markets and distributes the Plan. Ascensus
Broker Dealer Services, Inc. serves as the Program Manager as well as effects account owner transactions in the
Plan. Interests in the
Plan are not guaranteed by the Trust, the Plan, the state of Nevada, the Board or any other governmental entities,
or any USAA, Victory or Ascensus entities and you could lose money.
COLLEGE SAVINGS PLANS OF NEVADA
Q2 2020
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
36
48
Section IV
Wealthfront College Savings Plan®
Marketing Activity
37CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 49
38
Wealthfront College Savings Landing Page
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
COLLEGE SAVINGS PLANS OF NEVADA
Highlights This Period
FY 4th - CY 2nd Quarter Ended June 30, 2020
% New Sessions 41.88%
Bounce Rate 62.72%
Pages / Session 2.30
Avg. Session Duration 00:02:29
50
39
Wealthfront College Savings Email Conversion
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
COLLEGE SAVINGS PLANS OF NEVADA
Highlights This Period
FY 4th - CY 2nd Quarter Ended June 30, 2020
Open Rate 70.83%
Click Rate 11.11%
Unsub Rate 0%
51
Distributed by Wealthfront Brokerage LLC
Check out the background of Wealthfront Brokerage LLC on FINRA's BrokerCheck.
Wealthfront's College Planning Service
Path is a planning model that allows Clients to explore
projections of various possible financial outcomes based on
data from your linked external financial accounts, a variety of
other inputs, your tolerance for risk and your current
investments. College Planning enhances the features of Path
and provides for additional planning functionality using
additional inputs and assumptions.
Wealthfront Advisers LLC is an SEC-registered investment
advisor providing financial advisory and planning services to
investors who become clients pursuant to a written agreement,
which you can read here. Path's financial planning models are
designed to assist Clients in preparing for their financial future
and allows them to personalize assumptions for their portfolios.
Important Wealthfront 529 College Savings Plan
Disclosures
The Wealthfront 529 College Savings Plan ("the Plan") is
sponsored by the State of Nevada, acting through the Board of
Trustees of the College Savings Plans of Nevada, and
administered by the State Treasurer's Office. Ascensus Broker
Dealer Services, Inc. serves as Program Manager.
Anyone may invest in the Plan and use the proceeds to pay for
qualified higher education expenses of a beneficiary at an
eligible educational institution. If you withdraw money for
something other than qualified higher education expenses, you
will owe federal income tax and may face a 10% federal tax
penalty on your earnings.
Important Wealthfront 529 College Savings Plan
Disclosures, continued
Before investing in a 529 plan, consider whether your state's
plan or that of your beneficiary offers state tax and other
benefits not available through the Plan. Nevada residents who
open a Wealthfront 529 College Savings Plan account will have
their first $25,000 managed for free.
All investing involves risk, including the possible loss of money
you invest. Past performance does not guarantee future
performance. Consider the investment objectives, risks,
charges, and expenses of any 529 plan before investing. Please
review the Plan Description and Participation Agreement
carefully before investing. Request one by calling us at (844)
995-8437 or emailing [email protected]. Your
investment is not insured or guaranteed by the State of Nevada,
the Board, Plan or any state official, the FDIC or any other
federal agency, the Program Manager or Wealthfront.
Wealthfront Brokerage LLC, member FINRA / SIPC, is a wholly-
owned subsidiary of Wealthfront Corporation and serves as
distributor and underwriter of the Plan. Neither Wealthfront
Brokerage LLC or Wealthfront Advisers provide tax advice, and
investors are encouraged to consult with their personal tax
advisor.
.
Administered by
Nevada State Treasurer
52
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 5 September 17, 2020
Item: Putnam 529 for America program manager’s report for the quarter ended June 30, 2020 Summary: Judy Minsk, Director Investment Strategies, with Putnam Investments, will be available to answer questions. Fiscal Impact: None by this action. Recommendation:
To accept and approve the Putnam 529 for America program manager’s report for the quarter ended June 30, 2020.
53
For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
College Savings Plans of NevadaBoard of Trustees Meeting
Putnam 529 for AmericaSM
Quarterly Report
April 1 – June 30, 2020
FY 2020 Q4
54
PUTNAM INVESTMENTS | 2For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for America Commentary as of 6/30/20 (FY 2020 Q4)
Plan update
• Putnam 529 for America plan assets grew to $434M, up 10.43% vs. prior quarter.
• Gross contributions were -28% vs. the previous quarter and -6.4% year over year.
• Net contributions were up 76% vs. prior quarter.
• Total distributions were down 40% vs. prior quarter—understandable since the previous quarter is
when tuition payments are typically due.
• NV assets were up 13% vs. the previous quarter, and a number of funded accounts were flat.
– NV sales are in top 10 nationwide for the quarter.
May 529 Awareness campaign
• Visits and the number of users to 529 are up year over year.
• Social is a significant driver of traffic in 2020.
55
PUTNAM INVESTMENTS | 3For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for America Highlights as of 6/30/20 (FY 2020 Q4)
Accounts defined as a unique owner/beneficiary combination.Average account balance defined as total assets divided by the number of unique owner/beneficiary combinations.Dollars in millions except average account balances.
Highlights this period 2nd quarter 2020 1st quarter 2020 % change QvQ 2nd quarter 2019 % change y/y
Assets under management $434,325,653 $393,289,533 10.43% $446,210,368 -2.66%
Total funded accounts 19,168 19,225 -0.30% 19,751 -2.95%
Total # unique customers 10,978 11,028 -0.45% 11,324 -3.06%
New accounts 165 205 -19.51% 205 -19.51%
Average customer balance $22,659 $20,457 10.76% $22,592 0.30%
Nevada total assets $11,957,979 $10,553,130 13.31% $11,638,884 2.74%
Nevada funded accounts 600 591 1.52% 574 4.53%
Nevada average customer balance $19,930 $17,856 11.61% $20,277 -1.71%
New Nevada accounts 7 10 -30.00% 15 -53.33%
Total gross contributions $5,675,877 $7,845,301 -27.65% $6,063,232 -6.39%
Total distributions $6,270,218 $10,358,665 -39.47% $7,216,819 -13.12%
Net contributions ($594,341) ($2,513,364) 76.35% ($1,153,587) 48.48%
Rollovers in $383,728 $220,125 74.32% $567,070 -32.33%
Rollovers out $2,567,165 $2,540,028 1.07% $2,402,879 6.84%
Net rollovers ($2,183,437) ($2,319,903) 5.88% ($1,835,809) -18.94%
% of funded accounts with
systematic investments 29.60% 30.10% -1.66% 30.00% -1.33%
56
PUTNAM INVESTMENTS | 4For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for AmericaAssets by investment category as of 6/30/20 (FY 2020 Q4)
Excludes seed transactions.
52%
19%
25%
4%
Age-based
Goal-based
Individual fund options
Absolute return options
Category 6/30/20 assets Percentage of grand total
Age-based $225,219,320 51.85%
Goal-based $84,848,916 19.54%
Individual fund options $106,608,712 24.55%
Absolute return options $17,648,705 4.06%
Grand total $434,325,653 100.00%
57
PUTNAM INVESTMENTS | 5For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for AmericaAssets by investment option as of 6/30/20 (FY 2020 Q4)
Category Fund 6/30/20 assets
Percentage of
grand total
Age-based Total $225,219,320 51.85%
Age-based $225,219,320 51.85%
Goal-based Total $84,848,916 19.54%
Goal-based balanced $29,826,840 6.87%
Goal-based growth $29,237,254 6.73%
Goal-based aggressive growth $25,784,822 5.94%
Individual fund options Total $106,608,712 24.55%
Federated U.S. Gov. Securities 2–5 years $1,432,310 0.33%
MFS Institutional International Equity $8,648,173 1.99%
Principal MidCap Blend $16,985,406 3.91%
Putnam 529 State Street S&P 500 Index $12,130,497 2.79%
Putnam Equity Income $17,278,375 3.98%
Putnam Government Money Market $17,226,047 3.97%
Putnam Growth Opportunities $20,024,871 4.61%
Putnam High Yield $2,891,136 0.67%
Putnam Income $7,069,650 1.63%
Putnam Small Cap Value $2,922,248 0.67%
Absolute return Total $17,648,705 4.06%
Fixed Income Absolute Return $6,995,951 1.61%
Multi-Asset Absolute Return $10,652,754 2.45%
Grand total $434,325,653 100.00%
58
PUTNAM INVESTMENTS | 6For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for America Contributions by type as of 6/30/20 (FY 2020 Q4)
Sales
(calendar
year)
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4, 2019 Q1 2020 Q2 2020
NV sales $206,942 $296,233 $748,626 $656,735 $163,878 $205,986 $347,738 $581,346 $202,558 $389,142 $239,679 $277,800 $294,565
National
sales7,489,856 8,211,979 9,251,393 10,049,947 $7,772,511 $7,200,116 $7,794,521 $6,867,191 $5,860,673 $5,729,197 $8,098,168 $7,567,501 $5,381,312
Gross 7,696,797 8,508,212 10,000,018 10,706,682 $7,936,389 $7,406,102 $8,142,260 $7,448,536 $6,063,232 $6,118,339 $8,337,847 $7,845,301 $5,675,877
NV net 63,660 161,734 437,411 566,424 $25,358 ($150,577) $191,770 $322,783 ($47,037) ($123,668) $78,638 $149,610 $158,149
National net (1,354,421) (5,962,656) (1,641,834) 919,284 $631,822 ($13,691,838) ($6,645,408) ($3,245,535) ($1,106,550) ($13,346,522) ($3,884,298) ($2,662,974) ($752,490)
Net (1,290,761) (5,800,922) (1,204,423) 1,485,709 $657,180 ($13,842,415) ($6,453,637) ($2,922,752) ($1,153,587) ($13,470,190) ($3,805,661) ($2,513,364) ($594,341)
New or
existing
account
contributions
3,975,155 5,098,928 6,564,740 6,597,424 $4,748,751 $4,093,605 $4,881,391 $4,255,555 $2,894,538 $3,284,971 $5,159,239 $5,090,860 $2,859,288
Total
rollovers 1,077,539 802,812 825,226 1,522,691 $543,921 $700,637 $610,986 $603,265 $567,070 $237,112 $605,573 $220,125 $383,728
Systematic
investments2,644,103 2,606,472 2,610,053 2,586,567 $2,643,717 $2,611,860 $2,649,883 $2,589,716 $2,601,623 $2,596,256 $2,573,035 $2,534,316 $2,432,861
Systematics
as % of sales34.35% 30.63% 26.10% 24.15% 33.31% 35.26% 32.54% 34.76% 42.90% 42.43% 30.85% 32.30% 42.86%
Total
rollovers38 45 27 41 25 26 21 14 16 29 22 20 26
59
PUTNAM INVESTMENTS | 7For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
100,000
5,100,000
10,100,000
15,100,000
20,100,000
25,100,000
Putnam 529 for America Distributions by category as of 6/30/20 (FY 2020 Q4)
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1, 2019 Q2 2019 Q3 2019 Q4, 2019 Q1 2020 Q2, 2020
Qualified
distributions$3,686,651 $11,849,127 $7,940,078 $5,913,138 $3,896,259 $13,471,450 $8,309,589 $7,201,368 $4,245,969 $15,119,271 $9,572,718 $6,889,545 $3,066,534
Rollovers
out$4,144,638 $1,528,609 $2,790,724 $2,452,367 $2,905,730 $6,097,679 $4,676,985 $2,294,650 $2,402,879 $3,681,333 $1,794,074 $2,540,028 $2,567,165
Non-qualified
distributions$773,139 $629,419 $439,464 $636,187 $375,282 $1,463,045 $1,247,154 $633,574 $564,360 $629,137 $730,801 $780,959 $631,271
In-plan
transfers$383,130 $301,980 $34,176 $219,281 $101,939 $216,343 $362,168 $241,696 $3,611 $158,788 $45,915 $148,133 $5,248
Total
distributions$8,987,559 $14,309,134 $11,204,442 $9,220,973 $7,279,209 $21,248,517 $14,595,897 $10,371,288 $7,216,819 $19,588,529 $12,143,508 $10,358,665 $6,270,218
($)
60
PUTNAM INVESTMENTS | 8For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
CA
MAWA
PA
MN
Putnam 529 for America Sales by state as of 6/30/20 (FY 2020 Q4)
Top-selling states FY 2020 Q4 State
FY 2020 Q4 sales
CA $966,107
MA $630,637
WA $602,673
PA $477,466
MN $441,262
MO $341,485
NV $294,565
TX $262,572
NJ $259,587
FL $176,489
61
PUTNAM INVESTMENTS | 9For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for AmericaClient services metrics as of 6/30/20 (FY 2020 Q4)
CRITERIA SERVICE LEVEL
Transactions
• 96% of all financial and non-financial transactions
processed error free
98.8%
Telephone service
• 80% of calls answered within 20 seconds
91.2%
Mail service
• Transaction confirmations
– 99% of confirmations and checks mailed within 2
business days of any transaction
100%
• Quarterly statements
– 97% of customers receive quarterly statements within
5 business days of the end of each quarter
100%
62
PUTNAM INVESTMENTS | 10For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for AmericaWeb usage by customers as of 6/30/20 (FY 2020 Q4)
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Q2
2020
Visits 4,697 4,011 4,254 4,679 5,494 4,076 4,405 3978 4,986 4241 4253 4,677 6147 5,715
Visitors 1,062 867 978 1,035 1,222 997 991 956 1,186 952 980 997 1271 1,026
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
63
PUTNAM INVESTMENTS | 11For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Seasonal campaign – May Awareness
• Banners on advisor and shareholder websites
• Wealth Management Center Resources and
cross promotion of blogs
• Social campaigns run on Facebook setup with
placements across their site and on Instagram,
which is owned by Facebook and a part of their
platform
• Objective: To get as many people who see our
ad to click through and view our landing page
• Two ad sets:
• Investors target: Targeted parents with
interests in college savings plans
• Advisor target: Targeted those with jobs
titles akin to financial advisor or financial
analyst or those employed by key firms
• Number of visits to the 529 pages were again
significantly higher than average
64
PUTNAM INVESTMENTS | 12For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Marketing and brand awareness As of 6/30/20
65
PUTNAM INVESTMENTS | 13For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Performance commentary: Funds on watch status
Fund Assets as of 6/30/20 Percentage of plan
Putnam Small Cap Value Fund $2,922,248 0.67%
Putnam 529 GAA All Equity Portfolio $33,700,641 Underlying portfolio for age and goal-based options
Putnam 529 GAA Growth Portfolio $53,827,945 Underlying portfolio for age and goal-based options
Putnam 529 GAA Balanced Portfolio $86,869,932 Underlying portfolio for age and goal-based options
Putnam 529 GAA Conservative Portfolio $45,970,285 Underlying portfolio for age and goal-based options
66
PUTNAM INVESTMENTS | 14For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam Small Cap Value Fund
• During the second quarter of 2020, the Putnam 529 Small Cap Value portfolio outperformed the Russell 2000
Value Index, 27.03% vs. 18.91%, respectively. The portfolio outperformed as the market rebounded from the
lows in March. In the trailing 1-year period, the fund underperformed the index -19.01% vs. -17.48%.
• The outperformance in the quarter was driven by strength in both security selection and allocation among
sectors. Stock selection within financials and industrials sectors led performance but was partially offset by
unfavorable stock selection within health care. Sector allocation effects were positive due to an overweight
positioning within consumer discretionary and underweights to both financials and utilities.
• Within the financials sector, regional banks rebounded after they were oversold in March. Within industrials,
outperformance was favorable selection withing construction materials.
• Overall strong performance was partially offset by weak stock selection within the health care sector and an
underweight to the biotechnology industry.
• Coming into the period, the portfolio had an underweight to regional banks, and after the industry rebounded,
we further reduced our exposure in favor of industries with better fundamentals.
67
PUTNAM INVESTMENTS | 15For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam Asset Allocation Conservative Portfolio
• For the three-month period ending 6/30/20, the Putnam 529 GAA Conservative portfolio was up 8.03% (net),
performing in line with its custom blended benchmark, which added 8.05%.
• Overall, our asset allocation decisions detracted slightly. The funds were slightly underweight equity risk
entering the period, having benefited significantly in Q1 from defensive positioning. This underweight was a
small detractor early in Q2 as equity markets rebounded sharply off late-March lows.
• In fixed income, the funds were slightly underweight rate risk and slightly overweight credit risk, though neither
of these dynamic asset allocation positions had a significant impact on quarterly performance.
• Security selection within equities was positive in Q2. We saw strength in both U.S. large cap and international
developed equity market selection.
• Fixed income selection, specifically a strategy focused on structured mortgage credit, was also additive, having
now made back a large portion of the weakness experienced during the first quarter.
• We remain slightly underweight equity risk. The market rally from the bottom in March had been fast and
furious but appears to have slowed down considerably. The equity team feels that current levels serve as an
upside barrier and are positioned accordingly.
• We have increased the credit recommendation from neutral to slightly overweight. Credit market plumbing
continues to improve. Spreads have tightened, yields have fallen, and the Fed continues to stand as a
backstop to spread widening with the purchase of investment-grade corporates.
68
PUTNAM INVESTMENTS | 16For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam Asset Allocation Balanced Portfolio
• For the three-month period ending 6/30/20, the Putnam 529 GAA Balanced portfolio was up 12.39% (net),
slightly trailing its custom blended benchmark, which added 13.01%.
• Overall, our asset allocation decisions detracted slightly. The funds were slightly underweight equity risk
entering the period, having benefited significantly in Q1 from defensive positioning. This underweight was a
small detractor early in Q2 as equity markets rebounded sharply off late-March lows.
• In fixed income, the funds were slightly underweight rate risk and slightly overweight credit risk, though neither
of these dynamic asset allocation positions had a significant impact on quarterly performance.
• Security selection within equities was positive in Q2. We saw strength in both U.S. large cap and international
developed equity market selection.
• Fixed income selection, specifically a strategy focused on structured mortgage credit, was also additive, having
now made back a large portion of the weakness experienced during the first quarter.
• We remain slightly underweight equity risk. The market rally from the bottom in March had been fast and
furious but appears to have slowed down considerably. The equity team feels that current levels serve as an
upside barrier and are positioned accordingly.
• We have increased the credit recommendation from neutral to slightly overweight. Credit market plumbing
continues to improve. Spreads have tightened, yields have fallen, and the Fed continues to stand as a
backstop to spread widening with the purchase of investment-grade corporates.
69
PUTNAM INVESTMENTS | 17For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam Asset Allocation Growth Portfolio
• For the three-month period ending 6/30/20, the Putnam 529 GAA Growth portfolio was up 15.65% (net),
slightly trailing its custom blended benchmark, which added 16.29%.
• Overall, our asset allocation decisions detracted slightly. The funds were slightly underweight equity risk
entering the period, having benefited significantly in Q1 from defensive positioning. This underweight was a
small detractor early in Q2 as equity markets rebounded sharply off late-March lows.
• In fixed income, the funds were slightly underweight rate risk and slightly overweight credit risk, though neither
of these dynamic asset allocation positions had a significant impact on quarterly performance.
• Security selection within equities was positive in Q2. We saw strength in both U.S. large cap and international
developed equity market selection.
• We continued to see strong performance from emerging market equity selection.
• Fixed income selection, specifically a strategy focused on structured mortgage credit, was also additive, having
now made back a large portion of the weakness experienced during the first quarter.
• We remain slightly underweight equity risk. The market rally from the bottom in March had been fast and
furious but appears to have slowed down considerably. The equity team feels that current levels serve as an
upside barrier and are positioned accordingly.
• We have increased the credit recommendation from neutral to slightly overweight. Credit market plumbing
continues to improve. Spreads have tightened, yields have fallen, and the Fed continues to stand as a
backstop to spread widening with the purchase of investment-grade corporates.
70
PUTNAM INVESTMENTS | 18For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam Asset Allocation All Equity Portfolio
• For the three-month period ending 6/30/20, the Putnam 529 GAA All Equity portfolio was up 19.77% (net),
outperforming its custom blended benchmark, which added 19.26%.
• As an all-equity portfolio, there was little contribution from asset allocation positioning.
• Security selection was positive in Q2. We saw particular strength in international developed equity market
selection.
• We continued to see strong performance from emerging market equity selection.
• Portfolio allocations remain close to benchmark weight, and we expect benchmark-relative performance will
continue to be driven by security selection.
71
PUTNAM INVESTMENTS | 19For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for AmericaPerformance as of 6/30/20
Periods of less than one year are not annualized, but cumulative.
3 MONTHS 1 YEAR 3 YEARS 5 YEARS SINCE INCEPTION
PORTFOLIOS
INCEPTION
DATE
BEFORE
SALES
CHARGE
AFTER
SALES
CHARGE
BEFORE
SALES
CHARGE
AFTER
SALES
CHARGE
BEFORE
SALES
CHARGE
AFTER
SALES
CHARGE
BEFORE
SALES
CHARGE
AFTER
SALES
CHARGE
BEFORE
SALES
CHARGE
AFTER
SALES
CHARGE
TOTAL
EXPENSE
RATIO
AGE-BASED PORTFOLIOS
Putnam 529 Age-Based Graduate 10/1/2010 1.10 -4.71 1.36 -4.47 1.53 -0.46 1.07 -0.12 1.81 1.19 0.96
Putnam 529 Age-Based Graduate Index — 1.26 — 2.53 — 2.48 — 1.90 — 2.37 — —
Putnam 529 Age-Based 1999 10/1/2010 1.13 -4.68 1.33 -4.49 1.87 -0.13 1.73 0.53 4.39 3.76 1.00
Putnam 529 Age-Based 1999 Index — 1.26 — 2.62 — 2.86 — 2.66 — 4.92 — —
Putnam 529 Age-Based 2000 10/1/2010 1.67 -4.18 1.54 -4.30 2.15 0.15 2.06 0.86 4.85 4.22 1.03
Putnam 529 Age-Based 2000 Index — 1.77 — 2.89 — 3.23 — 3.08 — 5.42 — —
Putnam 529 Age-Based 2001 10/1/2010 2.41 -3.48 1.78 -4.07 2.53 0.53 2.46 1.25 5.34 4.70 1.04
Putnam 529 Age-Based 2001 Index — 2.55 — 3.37 — 3.73 — 3.59 — 5.94 — —
Putnam 529 Age-Based 2002 10/1/2010 3.22 -2.72 2.00 -3.86 2.87 0.86 2.86 1.65 5.79 5.15 1.07
Putnam 529 Age-Based 2002 Index — 3.45 — 3.84 — 4.22 — 4.11 — 6.46 — —
Putnam 529 Age-Based 2003 10/1/2010 4.10 -1.88 2.10 -3.77 3.21 1.19 3.27 2.06 6.23 5.59 1.08
Putnam 529 Age-Based 2003 Index — 4.43 — 4.21 — 4.71 — 4.65 — 6.96 — —
Putnam 529 Age-Based 2004 10/1/2010 5.11 -0.94 2.24 -3.64 3.59 1.56 3.70 2.48 6.65 6.01 1.09
Putnam 529 Age-Based 2004 Index — 5.52 — 4.58 — 5.24 — 5.19 — 7.44 — —
Putnam 529 Age-Based 2005 10/1/2010 6.26 0.15 2.33 -3.56 3.96 1.93 4.11 2.88 7.01 6.37 1.10
Putnam 529 Age-Based 2005 Index — 6.71 — 4.95 — 5.78 — 5.73 — 7.89 — —
Putnam 529 Age-Based 2006 10/1/2010 7.55 1.36 2.41 -3.48 4.31 2.27 4.49 3.26 7.34 6.69 1.11
Putnam 529 Age-Based 2006 Index — 8.06 — 5.27 — 6.30 — 6.23 — 8.30 — —
Putnam 529 Age-Based 2007 10/1/2010 8.87 2.61 2.41 -3.48 4.58 2.53 4.72 3.49 7.58 6.93 1.12
Putnam 529 Age-Based 2007 Index — 9.45 — 5.55 — 6.77 — 6.62 — 8.63 — —
Putnam 529 Age-Based 2008 10/1/2010 10.15 3.82 2.27 -3.61 4.71 2.66 4.88 3.64 7.76 7.11 1.13
Putnam 529 Age-Based 2008 Index — 10.86 — 5.73 — 7.07 — 6.90 — 8.89 — —
Putnam 529 Age-Based 2009 10/1/2010 11.46 5.06 2.09 -3.78 4.75 2.70 4.97 3.73 7.91 7.26 1.13
Putnam 529 Age-Based 2009 Index — 12.20 — 5.64 — 7.21 — 7.06 — 9.07 — —
Putnam 529 Age-Based 2010 10/1/2010 12.30 5.84 1.97 -3.90 4.86 2.81 5.10 3.86 8.05 7.40 1.13
Putnam 529 Age-Based 2010 Index — 13.11 — 5.63 — 7.37 — 7.24 — 9.24 — —
72
PUTNAM INVESTMENTS | 20For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for AmericaPerformance as of 6/30/20
Periods of less than one year are not annualized, but cumulative.
3 MONTHS 1 YEAR 3 YEARS 5 YEARS SINCE INCEPTION
PORTFOLIOSINCEPTION
DATE
BEFORE SALES
CHARGE
AFTER SALES
CHARGE
BEFORE SALES
CHARGE
AFTERSALES
CHARGE
BEFORE SALES
CHARGE
AFTERSALES
CHARGE
BEFORE SALES
CHARGE
AFTERSALES
CHARGE
BEFORE SALES
CHARGE
AFTERSALES
CHARGE
TOTAL EXPENSE
RATIO
AGE-BASED PORTFOLIOS
Putnam 529 Age-Based 2011 1/3/2011 13.04 6.54 1.78 -4.07 4.91 2.86 5.18 3.94 7.58 6.91 1.14
Putnam 529 Age-Based 2011 Index — 13.84 — 5.47 — 7.46 — 7.38 — 8.71 — —
Putnam 529 Age-Based 2012 1/3/2012 13.74 7.20 1.65 -4.20 4.94 2.89 5.26 4.02 9.09 8.33 1.14
Putnam 529 Age-Based 2012 Index — 14.56 — 5.33 — 7.52 — 7.49 — 10.06 — —
Putnam 529 Age-Based 2013 1/2/2013 14.37 7.79 1.45 -4.39 4.91 2.86 5.29 4.05 8.34 7.48 1.14
Putnam 529 Age-Based 2013 Index — 15.21 — 5.09 — 7.53 — 9.46 — 9.46 — —
Putnam 529 Age-Based 2014 1/2/2014 14.98 8.37 1.25 -4.57 4.87 2.82 5.29 4.05 5.97 5.01 1.15
Putnam 529 Age-Based 2014 Index — 15.85 — 4.90 — 7.54 — 7.60 — 7.41 — —
Putnam 529 Age-Based 2015 1/2/2015 15.52 8.88 1.06 -4.75 4.81 2.76 5.28 4.04 5.35 4.22 1.15
Putnam 529 Age-Based 2015 Index — 16.40 — 4.67 — 7.52 — 7.63 — 7.38 — —
Putnam 529 Age-Based 2016 1/4/2016 16.07 9.40 1.06 -4.75 4.82 2.77 — — 6.65 5.25 1.15
Putnam 529 Age-Based 2016 Index — 16.84 — 4.53 — 7.52 — — — 9.28 — —
Putnam 529 Age-Based 2017 1/3/2017 16.53 9.83 0.97 -4.83 4.81 2.76 — — 6.53 4.75 1.16
Putnam 529 Age-Based 2017 Index — 17.20 — 4.43 — 7.53 — — — 9.14 — —
Putnam 529 Age-Based 2018 1/2/2018 16.95 10.22 0.97 -4.84 — — — — 1.66 -0.72 1.16
Putnam 529 Age-Based 2018 Index — 17.50 — 4.36 — — — — — 5.11 — —
Putnam 529 Age-Based 2019 1/2/2019 17.11 10.37 0.88 -4.92 — — — — 9.77 8.39 1.16
Putnam 529 Age-Based 2019 Index — 17.73 — 4.31 — — — — — 13.40 — —
Putnam 529 Age-Based 2020 1/2/2020 17.39 10.64 — — — — — — -10.27 -4.80 1.16
Putnam 529 Age-Based 2020 Index — 17.88 — — — — — — — -3.91 — —
GOAL-BASED PORTFOLIOS
Balanced 10/1/2010 12.78 6.29 1.97 -3.89 4.57 2.53 4.82 3.59 7.19 6.55 1.12
Balanced Index — 13.64 — 5.69 — 7.14 — 6.95 — 8.29 — —
Growth 10/1/2010 17.44 10.69 0.88 -4.92 4.79 2.75 5.29 4.05 8.34 7.68 1.16
Growth Index — 18.00 — 4.31 — 7.53 — 7.70 — 9.68 — —
Aggressive Growth 10/1/2010 20.91 13.96 0.52 -5.26 4.93 2.88 5.45 4.21 9.13 8.46 1.18
Aggressive Growth Index — 20.47 — 3.71 — 7.83 — 8.14 — 10.52 — —
73
PUTNAM INVESTMENTS | 21For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for AmericaPerformance as of 6/30/20
Periods of less than one year are not annualized, but cumulative.
3 MONTHS 1 YEAR 3 YEARS 5 YEARS SINCE INCEPTION
PORTFOLIOS
INCEPTION
DATE
BEFORE
SALES
CHARGE
AFTER
SALES
CHARGE
BEFORE
SALES
CHARGE
AFTER
SALES
CHARGE
BEFORE
SALES
CHARGE
AFTER
SALES
CHARGE
BEFORE
SALES
CHARGE
AFTER
SALES
CHARGE
BEFORE
SALES
CHARGE
AFTER
SALES
CHARGE
TOTAL
EXPENSE
RATIO
INDIVIDUAL OPTIONS
Putnam Equity Income Fund 10/1/2010 17.36 10.61 -2.02 -7.65 5.21 3.16 6.01 4.76 10.40 9.73 1.06
Russell 1000 Value Index — 14.29 — -8.84 — 1.82 — 4.64 — 9.54 — —
Putnam Small Cap Value Fund 9/12/2014 27.03 19.73 -19.21 -23.85 -7.46 -9.27 -1.08 -2.25 0.02 -1.00 1.35
Russell 2000 Value Index — 18.91 — -17.48 — -4.35 — 1.26 — 1.81 — —
MFS Institutional International Equity Fund 10/1/2010 14.58 7.99 -1.07 -6.76 4.21 2.17 4.38 3.15 5.93 5.29 1.10
MSCI EAFE Index (ND) — 14.88 — -5.13 — 0.81 — 2.05 — 4.19 — —
Putnam Growth Opportunities Fund 7/5/2016 28.27 20.89 25.10 17.91 21.51 19.13 — — 22.27 20.47 1.04
Russell 1000 Growth Index — 27.84 — 23.28 — 18.99 — — — 19.46 — —
Principal MidCap Fund 10/1/2010 24.64 17.47 3.80 -2.17 11.63 9.45 10.66 9.35 14.15 13.46 1.07
Russell Mid Cap Index — 24.61 — -2.24 — 5.79 — 6.76 — 11.22 — —
SSGA S&P 500 Index 6/27/2012 20.47 13.54 7.26 1.09 10.20 8.05 10.18 8.89 12.84 12.01 0.55
S&P 500 Index — 20.54 — 7.51 — 10.73 — 10.73 — 13.46 — —
Putnam High Yield 4/21/2017 9.60 5.21 -1.36 -5.31 2.32 0.93 — — 2.59 1.29 1.18
JPMorgan Developed High Yield Index — 9.69 — -2.02 — 2.69 — — — 3.06 — —
Putnam Income Fund 10/1/2010 4.18 0.01 6.78 2.50 5.47 4.04 3.86 3.01 4.23 3.79 1.02
BBG Barclays U.S. Aggregate Bond Index — 2.90 — 8.74 — 5.32 — 4.30 — 3.67 — —
Federated U.S. Government Securities Fund 10/1/2010 0.45 -3.57 5.94 1.71 3.09 1.70 1.92 1.09 1.20 0.77 0.98
ICE BofA 3–5 Year Treasury Index — 0.53 — 7.11 — 4.10 — 3.01 — 2.43 — —
Putnam Government Money Market Fund 8/18/2016 0.00 0.00 0.84 0.84 0.95 0.95 — — 0.73 0.73 0.68
Lipper U.S. Government Money Market
Funds Average— 0.02 — 0.93 — 1.09 — — — 0.87 — —
Fixed Income Absolute Return Fund 10/1/2010 4.52 3.48 0.08 -0.92 2.29 1.95 2.24 2.03 1.91 1.80 0.84
ICE BofA U.S. Treasury Bill Index — 0.02 — 1.71 — 1.80 — 1.22 — 0.68 —
Multi-Asset Absolute Return Fund 10/1/2010 -1.46 -7.13 -8.66 -13.91 -2.13 -4.04 -0.54 -1.71 2.00 1.38 1.16
ICE BofA U.S. Treasury Bill Index — 0.02 — 1.71 — 1.80 — 1.22 — 0.68 — —
74
PUTNAM INVESTMENTS | 22For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for AmericaUnderlying performance as of 6/30/20
Periods of less than one year are not annualized, but cumulative.
QUARTER
YEAR
TO DATE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
SINCE
INCEPTION
Putnam GAA All Equity Portfolio (9/29/2010) 21.08 -5.85 0.87 5.33 5.87 — 9.61
Putnam Equity Blended Index 20.47 -5.34 3.71 7.83 8.14 — 10.53
Lipper Multi-Cap Core Funds average 21.10 -5.78 2.90 7.18 7.30 — 10.65
Putnam GAA Growth Portfolio (9/29/2010) 16.44 -4.26 1.32 5.13 5.63 — 8.54
Putnam Growth Blended Benchmark 17.19 -3.45 4.50 7.41 7.55 — 9.40
Lipper Mixed-Asset Target Allocation Growth Funds average 15.02 -4.01 2.29 5.24 5.41 — 7.50
Putnam GAA Balanced Portfolio (9/29/2010) 12.99 -2.32 2.48 5.12 5.39 — 7.93
Putnam Balanced Blended Benchmark 13.83 -0.68 6.23 7.45 7.22 — 8.60
Lipper Mixed-Asset Target Allocation Moderate Funds average 12.04 -3.24 2.04 4.37 4.62 — 6.24
Putnam GAA Conservative Portfolio (9/29/2010) 8.03 0.75 4.36 4.68 4.58 — 5.89
Putnam Conservative Blended Benchmark 8.46 2.58 7.46 6.47 5.88 — 6.27
Lipper Mixed-Asset Target Allocation Consv. Funds average 9.36 -1.28 2.48 3.69 3.80 — 4.79
Federated US Government Sec Fund: 2–5 Years Instl (2/18/1983) 0.59 5.54 6.42 3.52 2.33 1.72 5.55
ICE BofA 3–5 Year Treasury Index 0.53 5.92 7.11 4.10 3.01 2.62 —
Lipper Short-Intermediate U.S. Government Funds average 1.06 3.59 4.44 2.59 1.75 1.51 5.55
Putnam Small Cap Value Y (4/13/1999) 27.21 -24.39 -19.03 -7.20 -0.75 7.50 7.48
Russell 2000 Value Index 18.91 -23.50 -17.48 -4.35 1.26 7.82 7.81
Lipper Small-Cap Value Funds average 22.57 -23.56 -17.83 -5.38 -0.33 7.09 7.97
Principal MidCap Fund Instl (3/1/2001) 24.86 -4.95 4.21 12.07 11.11 15.40 10.94
Russell Mid Cap Index 24.61 -9.13 -2.24 5.79 6.76 12.35 8.62
Lipper Multi-Cap Growth Funds average 29.73 9.90 17.46 16.00 12.26 14.82 7.58
SSgA: SS S&P 500 Index;N (12/30/1992) 20.58 -2.87 7.63 10.63 10.62 13.84 9.38
S&P 500 Index 20.54 -3.08 7.51 10.73 10.73 13.99 9.53
Lipper S&P 500 Index Funds average 20.42 -3.25 7.05 10.26 10.21 13.40 9.26
Putnam Equity Income Fund Y (6/15/1977) 17.54 -12.02 -1.68 5.61 6.42 12.00 10.00
Russell 1000 Value Index 14.29 -16.26 -8.84 1.82 4.64 10.41 —
Lipper Equity Income Funds average 15.43 -12.87 -5.32 3.34 5.47 9.98 10.22
75
PUTNAM INVESTMENTS | 23For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for AmericaUnderlying performance as of 6/30/20
Periods of less than one year are not annualized, but cumulative.
QUARTER
YEAR
TO DATE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
SINCE
INCEPTION
Putnam Growth Opportunities Fund Y (10/2/1995) 28.50 14.46 25.64 22.05 17.37 17.84 9.39
Russell 1000 Growth Index 27.84 9.81 23.28 18.99 15.89 17.23 9.49
Lipper Large-Cap Growth Funds average 27.78 10.05 20.82 17.91 14.32 15.87 6.48
Putnam Income Fund Y (11/1/1954) 4.30 3.41 7.15 5.87 4.27 4.80 7.51
Bloomberg Barclays U.S. Aggregate Bond Index 2.90 6.14 8.74 5.32 4.30 3.82 —
Lipper Core Bond Funds average 4.95 5.40 7.82 4.82 3.98 3.81 —
Putnam High Yield Fund:Y (3/25/1986) 9.64 -4.28 -0.64 2.83 3.81 5.91 7.17
JPMorgan Developed High Yield Index 9.69 -5.87 -2.02 2.69 4.49 6.74 —
Lipper High Yield Funds average 8.86 -5.05 -1.65 2.24 3.48 5.53 6.88
Putnam Govt Money Market A (4/14/2016) 0.00 0.21 0.93 1.13 — — 0.82
Lipper U.S. Government Money Market Funds 0.02 0.23 0.93 1.09 — — 0.79
MFS Instl International Equity Fund (1/30/1996) 14.70 -8.11 -0.73 4.58 4.77 7.87 7.50
MSCI EAFE Index (ND) 14.88 -11.34 -5.13 0.81 2.05 5.73 4.29
Lipper International Large-Cap Growth average 19.03 -4.56 3.19 4.63 4.00 6.39 6.14
Putnam Fixed Income Absolute Return Fund Y (12/23/2008) 4.68 -3.26 0.48 2.69 2.63 2.31 2.79
ICE BofA U.S. Treasury Bill Index 0.02 0.67 1.71 1.80 1.22 0.66 0.61
Putnam Multi-Asset Absolute Return Fund Y (12/23/2008) -1.21 -6.53 -8.15 -1.72 -0.13 2.56 3.37
ICE BofA U.S. Treasury Bill Index 0.02 0.67 1.71 1.80 1.22 0.66 0.61
76
PUTNAM INVESTMENTS | 24For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Printed on 8/10/2020
Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Frank Russell Company.
ICE Data Indices, LLC (ICE BofA), used with permission. ICE BofA permits use of the ICE BofA indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofA indices or any data included in, related to, or derived therefrom; assumes no liability in connection with the use of the foregoing; and does not sponsor, endorse, or recommend Putnam Investments, or any of its products or services.
FOR USE WITH THE COLLEGE SAVINGS PLANS OF NEVADA BOARD OF TRUSTEES. NOT FOR PUBLIC DISTRIBUTION.
Putnam Retail Management putnam.com
77
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 6 September 17, 2020
Item: The Nevada Prepaid Tuition Program activity report for the quarter ended March 31, 2020. Summary: STO Staff will be available to answer questions. Fiscal Impact: None by this action. Recommendation:
To accept and approve the Nevada Prepaid Tuition Program activity report for the quarter ended March 31, 2020.
78
QUARTERLY REPORT AS OF MARCH 31, 2020
79
Summary of Nevada Prepaid Tuition3rd Quarter FY 20 Activity
Contracts Paid in Full
157
Funded Status
154.6%
Contracts Depleted
105
Contributions
$ 4,235,764
Tuition Payments
$2,360,676
Contracts Sold
288
Market Value of Assets
$275,966,395
Active Contracts 12,251
80
3rd Quarter FY 20Contributions vs. Tuition Payments
•Contributions decreased 9.24% compared to same quarter FY 19. This is attributable to a decrease in enrollment and older contracts paying off their accounts.
•Tuition payments decreased by 0.67% compared to same quarter FY 19. This is mostly attributable to invoice timing.
•Tuition Payments were made to 221 different institutions
81
Funded Status by Fiscal YearAs of June 30, 2019 the funded status was 154.6%, the highest since inception.
82
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 7 September 17, 2020
Item: The Nevada Prepaid Tuition Program activity report for the quarter ended June 30, 2020. Summary: STO Staff will be available to answer questions. Fiscal Impact: None by this action. Recommendation:
To accept and approve the Nevada Prepaid Tuition Program activity report for the quarter ended June 30, 2020.
83
QUARTERLY REPORT AS OF JUNE 30, 2020
84
Summary of Nevada Prepaid Tuition4th Quarter FY 20 Activity
Contracts Paid in Full
335
New Graduating Students
711
Contracts Depleted
124
Contributions
$4,092,794
Tuition Payments
$3,001,215
Contracts Sold
100
85
4th Quarter FY 20Contributions vs. Tuition Payments
•Contributions decreased 25.25% 4th quarter FY 20 compared to same quarter FY 19. This is mainly attributable to the decrease in enrollment and the deferment of payments due to Covid-19.
•Tuition Payments increased by 3.35% 4th quarter FY 20 compared to same quarter FY 19. This is mostly attributable to the increase in tuition rates.
86
Summary of Nevada Prepaid TuitionAs of June 30, 2020
Contributions
$13,835,204
Tuition Payments
$11,999,639
Market Value of Assets
$312,216,023
Active Accounts
12,172
Total students depleted contracts
since inception: 3,861
Tuition benefits paid since inception: $109,093,083
Contracts sold since inception: 22,239
Funded status:(June 30, 2019)
154.6%
87
FY 20 Enrollment Plan and Payment Options
§ Similar to the previous two fiscal years, the Lump Sum payment option(40.84%) and 4-year tuition plan(65.65%) continued to be the most favorable amongst participants in fiscal year 2020.
§ Enrollment was extended through 5/15/20 and despite the effects of the Covid-19 pandemic, 193 or 36.8% of the FY 20 enrollments were received from March 1st to the end of the fiscal year.
88
Contract Status As of June 30, 2020
• 364 students depleted their benefits during FY 20.
• 524 new contracts were added during the fiscal year.
•4.2% increase in number of students using their benefits from prior fiscal year.
89
FY 20 Total Tuition Payments• Total Tuition payments of $11,999,639
were made in FY 20.
• FY 20 Tuition payments increased by 5.57% from the prior fiscal year.
• Of the total tuition payments, UNR remains the school with the largest distribution amount (40.95% or 4,914,030) during FY 20.
• Tuition benefits were paid to 321 different institutions during FY 20.
90
Funded Status by Fiscal YearAs of June 30, 2019 the funded status was 154.6%, the highest since inception. The FY 2020 funded status will be available for next quarterly report
91
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 8 September 17, 2020
Item: Annual Marketing update and overview Summary: STO and 529 Partners will provide the Board with an annual marketing update. Fiscal Impact: None by this action. Recommendation:
N/A this agenda item is presented as informational only.
92
Helping Nevadans Navigate:
Planning, Saving, and Paying
for Higher EducationPowered by the Nevada State Treasurer’s Office
93
Background
Goals include but not limited to:
Rebrand of the College Savings Division
1. Create new logo/brand
2. Redo Website (new domain NVigate.gov)
3. Update collateral
4. Manage Social Media platforms (twitter, Facebook and Instagram)
Kirvin Doak (KDC) hired in late 2019
94
April 2020
Social Media
• The STO online community grew by 259 new followers (83
on Twitter,15 on Facebook,161 on Instagram)
or increased by 6.9% over March.
• The STO online community is now comprised on
3,971 users.
• In April, there was a 48.3% increase in incoming messages.
This includes Twitter direct messages, Facebook messages
and Instagram comments.
• Overall, content received 2,714 engagements
and 48.5k impressions. 95
Group Stats by Profile/Page
Profile/Page
Impressions
Total Fan / per Engagements
Fans / Follower Messages Message per Message Link
Followers Increase Sent Impressions Sent Engagements Sent Clicks
Nevada S…
@NVTreasurer 518 19.1% 33 35.3k 1,070.3 1,662 50.4 352
nev…asurer
Business Page 3,211 0.4% 29 9,630 332.1 474 16.3 30
Nevada Tr…
nevadastatetr… 242 199% 28 3,539 126.4 578 20.6 -
April 2020
96
May 2020
Social Media
• The STO online community grew by 199 new followers (84 on Twitter, 47 on Facebook, 68
on Instagram) or increased by 5.1% over April.
• The STO online community is now comprised on 4,172 users.
• In May, content received 7,688 total engagements (an increase of 174% over April)
and 162,177 impressions (increase of over 219% over April)
• In May, there was a 5.3% increase in incoming messages over the month prior. This
includes Twitter direct messages, Facebook messages and Instagram comments.
97
May 2020
Profile
Audience
Net Audience
Growth
Published
Posts
Impressions
Engagements
Engagement Rate
(per Impression)
Reporting Period 4,172 199 142 162,177 7,688 17.5%
May 1, 2020 – May 31, 2020 5.1% 29.4% 44.9% 219% 174% 31.2%
Compare to 3,971 282 98 50,769 2,801 25.4%
Apr 1, 2020 – Apr 30, 2020
Nevada State Trea… 602 84 55 49,219 1,557 3.2%
Nevada Treasurer 310 68 44 6,275 572 9.1%
nevadastatetreas… 3,260 47 43 106,683 5,559 5.2%
98
June 2020
Social Media
• The STO online social media community is comprised of 4,372 total users. The fan base
increased by 4.8% from May to June.
• In June, content received 23,085 total engagements, which is an increase of 200%.
Please note, we saw this drastic increase because of the unclaimed property ads and
boosted contest posts. Since we're not boosting posts this month, there's a likely chance
we'll see these numbers drop in the coming months.
• There were 846,133 total impressions last month, which is a increase of 421%. This large
jump is also due to the social media ads that were running.
99
June 2020
Profile
Audience
Net Audience
Growth
Published
Posts
Impressions Engagements
Engagement Rate
(per Impression)
Reporting Period 4,372 198 126 846,133 23,085 2.7%
Jun 1, 2020 – Jun 30, 2020 4.8% 0.5% 12.5% 421% 200% 42.4%
Compare to 4,172 199 144 162,413 7,695 4.7%
May 1, 2020 – May 31, 2020
Nevada State Trea… 655 53 43 37,034 1,312 3.5%
Nevada Treasurer 424 114 44 9,203 506 5.5%
nevadastatetreas… 3,293 31 39 799,896 21,267 2.7%
100
Virtual EventsHosted by the College Savings Division
• NSHE Presidents
• NSHE Chancellor
• Southern Nevada Principals
• Northern Nevada Principals
• K-12 Teachers
• Little Learned (Kinder/1st graders)
• 2020 College Graduates
• Governor Guinn Millennium Scholarship
• College Kick Start
• How to Plan, Save and Pay for Post Secondary Education
• Silver State Matching Grant
LIVE Panel Discussions Weekly Webinars
101
What’s Next…
September 2020
• National College Savings Month
• Launch NVigate.gov
LIVE Events
• September 10, 2020: Financial Aid panel discussion with NSHE representatives
• September 25, 2020: 529 Panel: The Basic Guide to 529 Plans
102
Contact Us
Tya Mathis-ColemanDeputy Treasurer, College Savings Division
103
Thank you
104
For use with the Board of Trustees of the College Savings Plans of Nevada only.
Not for public distribution. 323159 9/20
Not FDIC
Insured
May Lose
Value
No Bank
Guarantee
Putnam 529 for AmericaMarketing Plan FY 2021
September 2020
105
2For use with the Board of Trustees of the College Savings Plans of Nevada only.
Not for public distribution. 323159 9/20
Omnichannel approach across social, search, web, email, and print
JUL AUG SEP NOV DEC JAN FEB MAR APR MAY JUN JUL
SOCIAL
SEO/SEM
WEB/MOBILE
CONTENT
PROMOTION/
DISTRIBUTION
Back to School Tax SeasonYear-end planning
& gift giving
529 Awareness
Print pieces updated on a
quarterly and annual basis.
106
3For use with the Board of Trustees of the College Savings Plans of Nevada only.
Not for public distribution. 323159 9/20
Responding to the “new normal”
Adapted imagery and messaging to address
current situation
Wealth Management Center Resources and
cross promotion of blogs
Paid Facebook campaign:
– Two ad sets within the campaign, one
targeting investors and the other
targeting advisors.
– Investors target: Targeted parents with
interests in college savings plans
– Advisor target: Targeted those with jobs
titles akin to financial advisor or financial
analyst or those employed by key firms
– Objective: To get as many people who
see our ad to click through and view our
landing page.
107
4For use with the Board of Trustees of the College Savings Plans of Nevada only.
Not for public distribution. 323159 9/20
Visuals and messaging targeting investors and advisors to address current situation
108
5For use with the Board of Trustees of the College Savings Plans of Nevada only.
Not for public distribution. 323159 9/20
Web stats — increased traffic to 529 content
• Visits and the number of users to 529 are up YOY.
• Social “529” campaign contributed to spike in May.
Content breakdown (YTD):
Shareholder versus Advisor:
• 94% of content views on Shareholder site, 6% on
advisor
Overview/Education versus Product:
• 88% views to 529 overview/educational pages,
12% views to product pages
Sources of traffic (YTD):Social and search (paid & organic) are the primary
drivers of traffic to 529 content.
109
6For use with the Board of Trustees of the College Savings Plans of Nevada only.
Not for public distribution. 323159 9/20
FY 2021 Campaign overview and timeline
AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL
Paid search support, industry campaign, internal trainings/role plays
TAX SEASON
• Tax Season Webcast; 529
advisors will be invited
• Updated banners on advisor and
shareholder sites
• Wealth management content
distributed through Hearsay
• Dedicated follow-up email to
advisors with available tax season
resources
• Follow-up calls/regional webinar
BACK TO SCHOOL/
COLLEGE SAVINGS MONTH
• Targeted advisor email campaign
• Paid search ads to highlight
themes
• Outlook email to drive sales and
awareness
• Banners on advisor and
shareholder sites
• Targeted social media support for
Bill Cass/Wealth management
content (Facebook)
• New video content; promotion of
4-year college action plan
529 AWARENESS (5/29 Day)
• Targeted advisor emails throughout
the month of May to drive 529
awareness
• Updated paid search ads to
promote 529 content
• Outlook email for RC use
• Updated banners
on advisor and shareholder sites
• Paid social media support
YEAR-END PLANNING
AND GIFT GIVING
• Wealth management call with
firm experts
• Targeted advisor email
campaign
• Updated banners on advisor
and shareholder sites
• Wealth management content
distributed through Hearsay
• Follow-up calls/regional
webinar
110
7For use with the Board of Trustees of the College Savings Plans of Nevada only.
Not for public distribution. 323159 9/20
Putnam Retail Management
putnam.com
All funds involve risk, including the loss of principal.
FOR ONE-ON-ONE USE WITH THE NEVADA STATE TREASURER’S OFFICE ONLY. NOT FOR PUBLIC DISTRIBUTION.
For informational purposes only. Not an investment recommendation.
Putnam 529 for America is sponsored by the State of Nevada, acting through the Trustees of the College Savings Plans of Nevada and the
Nevada State Treasurer’s Office. Anyone may invest in the plan and use the proceeds to attend school in any state. Before investing,
consider whether the state plan of your client or that of your client’s beneficiary offers state tax and other benefits not available
through Putnam 529 for America. If your clients withdraw money for something other than qualified higher education expenses, they will owe
federal income tax and may face a 10% federal tax penalty on earnings. Consult a tax advisor.
You should carefully consider the investment objectives, risks, charges, and expenses of the plan before investing. For an offering statement
containing this and other information about Putnam 529 for America, call Putnam’s dedicated 529 hotline at 1-877-711-1890. You should read
the offering statement carefully before investing. Putnam Retail Management, principal underwriter and distributor. Putnam Investment
Management, investment manager.
111
112
CONFIDENTIAL ©2019 SSGA Upromise 529
2020 – 2021 Marketing PlanSeptember 17, 2020
113
2CONFIDENTIAL ©2019 SSGA Upromise 529
2020-2021 GOALS
1) Increase awareness of the SSGA Upromise 529 plan
2) Identify and grow account ownership for parents and relatives
3) Increase engagement for existing 529 plan clients and prospects
114
3CONFIDENTIAL ©2019 SSGA Upromise 529
TARGET AUDIENCE
1) Millennials• HH’s with children in our target beneficiary age range
• According to the Pew Research Center, 39% have a bachelors degree or higher
2) Baby Boomers• Program testing has showed that baby boomers are more involved in planning for the future of their grandchildren -
specifically for the SSGA Upromise plan
18%
18 - 24
25 - 34
35 - 44
45 - 54
55 - 64
65+
9.06%
33.89%
11.41%
18.12%
13.76%
13.76%
Age-Based Digital Campaign Insights
11.41%
Gender-Based Digital Campaign Insights
Female
Male
38.94%33.89%
61.06%
115
4CONFIDENTIAL ©2019 SSGA Upromise 529
STRATEGY: PROSPECTS
Referral Campaign• Incentivize AO’s to act as plan champions
Search Engine Marketing (SEM)• Continued keyword refinement to capture prospects at the top, middle and bottom of the conversion
funnel
Digital Advertising• Create targeted advertising to meet audiences based on their browsing activity and interests
Incentivized Enrollment Campaign• Target parents and grandparents via direct mail and digital channels to increase younger bene
enrollments
Email• Overhaul traditional cadence and design of the current prospect email series based on data discovery
116
5CONFIDENTIAL ©2019 SSGA Upromise 529
STRATEGY: ACCOUNT OWNERS
• Updated platform will deliver the right experience to the right customer
• Tigger-based journeys to drive engagement and funding behaviors
CMS Integration
• Personalized web experience to encourage desired behaviors on public and
secure pages
Mobile App
• Meeting account owners where they are
• Making desired behaviors easy
117
SA-1701
FY 2021
State Street Global Advisors
Marketing PlanJuly 1, 2020 - June 30, 2021
August 31, 2020
118
Table of Contents
• FY 2020 Executive Summary
• FY 2020 Measurement Against Goals
• FY 2020 Marketing Highlights
• FY 2021 Marketing Plan
• Appendix A: Reporting
• Appendix B: Important Disclosures
119
Objective Build dedicated presence with RIAs and IBDs in Nevada and nationally.
Target Audience Registered Investment Advisors (RIAs) and Independent Broker Dealers (IBDs).
• Registered Investment Advisors (RIAs) advise high-net-worth individuals (investors with more than $1 million in
investable assets) on investments and manage their portfolios
• Independent Broker Dealers (IBDs) are specialized financial services companies that trade securities for their
own account or on behalf of their customers
Opportunities Drive engagement with current RIA & IBD contacts and prospects with consistent communication,
visibility and outreach with an accessible and clear call to action.
Overcome misconceptions of 529s with RIAs and IBDs and arm sales with tools to help communicate 529 wealth
management strategy benefits that complement college funding strategies.
Goals Increase number of accounts sold annually and increase assets within existing accounts. Expand the
number of RIAs and IBDs selling the 529 Upromise Plan to clients.
FY 2020 Executive Summary
120
Generated more impressions
through paid search activity:
276,400 → 3,061,834
Maintained website engagement:
34,630 → 33,001
advisors page views
Increased engagement
through direct marketing
email initiatives:
2.16%→ 2.21%
FY 2020 Measurement Against Goals
Maintained number of advisors and
new accounts:
135 → 134 advisors
20 → 20 new accounts
121
Digital Advertisement highest engagement rate was observed in September 2019 due to optimizations and general on-site
traffic trends
• Impressions in July totaled 488,057 where Kiplinger.com pushed the most impressions, but InvestmentNews.com drove
the most engagement
• We saw an increase in activity during the month of August with 842,152 impressions and similar insights as July with
Kiplinger driving the most impressions while Investment News drove higher engagement rate
• September demonstrated the highest activity rate with 1,230,274 impressions. This activity rate aligns with the 2019-20
Best Colleges Rankings traffic released at the end of August and can be attributed to optimization efforts
Paid search program generated 125,986 impressions which is up 164% from Q4 2019
• Paid search saw it’s highest performing quarter in terms of impressions
• Shift in spend allocation targeted to keywords for “back to school” at the end of
August/beginning of September attributed to positive increase in overall impressions
• Top keyword was “+529 +plan”
Social Media promotions through Tweets and LinkedIn Posts during Q1
• Impressions for Twitter during Q1 totaled 511,192, which is up notably from Q4 due to
significant pushes towards sponsored posts. Posts included a combination of organic and
promoted tweets. Engagers were directed to the resources located on the advisor site.
• Impressions for LinkedIn during Q1 totaled 16,089, which included a combination of
organic and promoted posts targeting RIAs and IBDs. The posts promoted the 529 Best
Practices Infographic and the 2017 Tax Law Infographic; linking to those specific
resources on the advisor site.
SSGA Upromise 529 Plan — RIA Marketing & Distribution Initiatives —
(Q1 FY 2020: July 2019 – September 2019) RIA Marketing Highlights
Source: State Street Global Advisors, EMI, Ascensus College Savings. As of September 2019.
122
Digital Advertisement’s highest engagement rate was observed in December 2019 due to optimizations and general on-
site traffic trends
• October demonstrated the highest activity rate of the quarter with 1,103,851 impressions, where
InvestmentNews.com pushed the most impressions and drove the most engagement
• Although we saw a decrease in activity during the month of November in terms of impressions, an engagement rate
of 1.44% was observed which is inline with industry benchmarks— InvestmentNews.com observed a positive
engagement rate of 4.12%
Paid search program generated 123,529 impressions which is up 15.07% from Q1 2019
• Download tracking implemented in October proved successful in tracking document
downloads from the advisor site. There were 803 downloads in Q2
• Visitors to the website in November increased by 69%
• Top keyword continues to be “+529 +plan”
Social Media promotions through Twitter and LinkedIn Posts during Q2
• Impressions for Twitter during Q2 totaled 760,941, which is up 48.9% from Q1.
• Posts included a combination of organic and promoted tweets. The posts promoted the 529 Best
Practices Infographic and the 2017 Tax Law Infographic; engagers were directed to the resources
located on the advisor site.
• Impressions for LinkedIn during Q2 totaled 108,982 which is up notably from Q1 due to
significant pushes towards sponsored posts, which included a combination of organic and
promoted posts targeting RIAs and IBDs. The posts included a combination of
static and animated promotions of the 2017 Tax Law Infographic.
SSGA Upromise 529 Plan — RIA Marketing & Distribution Initiatives —
(Q2 FY 2020: October 2019 – December 2019) RIA Marketing Highlights
Source: State Street Global Advisors, EMI, Ascensus College Savings. As of December 2019.
123
Direct Marketing continues to be the main avenue to engage with Advisors
• A direct marketing email deployed in February to an audience of 11,000 RIAs and IBDs highlighting an
infographic that addresses clients “Frequently Asked Questions”
• The email also promoted a piece on Dispelling Myths of 529 plans as well as Tax and Estate Plan
benefits
• This email outperformed the 2019 average as well as All-Time Averages across all viewership and
engagement metrics with an open rate of 25.18% and engagement rate of 11.26%
Paid search program generated 140,090 impressions which is up 13.4% from Q3 2019
• Downloads from the advisor site totaled 812 in Q3
• Google Display Network ads were published in March, linking engagers to material
on the advisor site and assisting in the positive number of downloads
• Top keyword for the quarter was “+529 +plan”
Social Media promotions through LinkedIn Posts during Q3
• Impressions for LinkedIn during Q3 totaled 78,395
• The posts included a combination of static and animated (GIF) promotions of the
2017 Tax Law Infographic, both organic and sponsored to boost promotion, to a targeted
audience of RIAs and IBDs
SSGA Upromise 529 Plan — RIA Marketing & Distribution Initiatives —
(Q3 FY 2020: January 2020 – March 2020) RIA Marketing Highlights
Source: State Street Global Advisors, EMI, Ascensus College Savings. As of March 2020.
124
529 Day direct marketing exceeds engagement targets
• A direct marketing email deployed in May on 5/29 day to an audience of 16,000 RIAs and IBDs highlighting
client-ready resources that advisors can easily share to educate clients on the importance of opening a
529 account
• The email promoted a series of popular material that is frequently downloaded from the advisor site
including a 529 Frequently Asked Questions piece, a brochure focused on Dispelling Myths of 529 plans
as well as an infographic explaining the Tax Law benefits and new ways 529 plans can be utilized
• This email outperformed the 2019 averages across all viewership and engagement metrics with an
open rate of 24.28% (target 20%) and viewer engagement rate of 6.5% (target 2.5%)
Paid Search generated 2,660,096 impressions across Search and Google Display Network
• Paid search saw it’s highest performing quarter in terms of impressions
• In Q4 there were 904 downloads, which is up 11.33% from Q3
• GDN proved successful in terms of impressions with 2,488,883 total impressions,
equaling 94% of the combined impressions from Search and GDN
• Quarter over quarter, the top keyword continues to be “+529 +plan” concluding that this
search term specifically leads to the highest visitor conversion rate
SSGA Upromise 529 Plan — RIA Marketing & Distribution Initiatives —
(Q4 FY 2020: April 2020 – June 2020) RIA Marketing Highlights
Source: State Street Global Advisors, EMI, Ascensus College Savings. As of June 2020.
125
FY 2021 Marketing Plan126
Campaign Details
Audience • Registered Investment Advisors (RIAs) advise high-net-worth individuals (investors with more than $1 million in
investable assets) on investments and manage their portfolios
• Independent Broker Dealers (IBDs) are specialized financial services companies that trade securities for their
own account or on behalf of their customers
Upromise 529
Account Goals
• Increase number of accounts sold annually and increase assets within existing accounts
• Expand the number of RIAs and IBDs selling the Upromise 529 Plan to clients
Marketing
Objectives
• Ensure Upromise 529 Plan information and collateral is kept up to date, is easy to understand and readily
accessible to Advisors
• Create quarterly direct marketing communications to promote 529 collateral and campaigns including 529 Day
and the Future of Education series
• Execute marketing tactics to expand our reach to target the broader RIA and IBD audience leveraging paid
search and social media
Opportunities • Use geo-targeting to build dedicated presence with Nevada RIAs and IBDs
• Leverage Discovery Database for lead generation opportunities
• Capitalize on changes to the education landscape and how 529 Plans can be leveraged accordingly
• Overcome common misconceptions of 529 Plans
• Communicate any and all 529-related legislation and plan changes
Measurement 1. Increase engagement generated through direct marketing efforts – measured by open and click through rates
2. Increase website engagement to advisor resources, track views and number of downloads via paid search,
social media or direct marketing
3. Utilize social media as a tool to reach more advisors to promote 529 resources. Leverage segmentation tactics
to target LinkedIn users based on specific attributes such as job title or location
4. Identify lead gen opportunities to increase traffic to the Advisor website to help increase the number of advisor
sold accounts
FY 2021 Marketing PlanCampaign Overview
127
FY 2021 Marketing PlanOngoing initiatives that help maximize our exposure and extend our brand reach
July 2020 to June 2021
Google Paid Search program consisting of plan specific keywords and ad groups driving clicks,
impressions and downloads to the advisor site.
Content Ensure advisors are equipped with the most up-to-date 529 Plan information and
collateral to address client’s needs. This includes website updates on both
ssga.upromise529.com and ssga.com/etfs
Social Media program aimed at spreading awareness and maximizing our reach
via the Twitter and LinkedIn platforms.
Opportunity Continue to leverage engagement-based Twitter and LinkedIn
campaigns (consisting of LinkedIn posts, tweets, poll tweets and poll follow-
up tweets). Leverage segmentation tactics to target LinkedIn users based on
specific attributes such as job title or location
Opportunity Build on the success of leveraging Google Display Network (GDN) ads which
significantly increased number of downloads and impressions in 2020. Utilize geo-targeting to
focus on specific geographic areas.
Opportunity Continue to actively promote new and updated content via Direct
Marketing efforts.
128
FY 2021 Marketing PlanDedicated programs to deliver customized relevant information to RIAs and IBDs
Q2 FY 2021(October-December, 2020)
Q1 FY 2021(July-September, 2020)
Q3 FY 2021(January-March, 2021)
Q4 FY 2021(April-June, 2021)
Launch Part 1 of the Future of
Education Campaign with a
Direct Marketing Email
promoting the new article.
Social Media & Paid Search -
Leverage the Street Global
Advisors page to promote
current 529 content around
back to school time and
promote the Future
of Education
campaign.
Refresh content for collateral
expiring in August and
September located on both the
ssga.upromise529.com and
ssga.com/etfs websites.
Launch Part 2 of the Future
of Education Campaign Series
with a Direct Marketing
Email promoting the second
article. Social Media -
Continued promotion of the
Future of Education Article
series via LinkedIn and
Twitter. Paid Search -
Review and update text ads
based on recommendation
from SME and Merkle.
Refresh
content on
“Client FAQ:
A Brief Guide
to 529 Plans”
to debunk
myths as
advisors have
college saving
discussions with their clients
whose children are applying for
college.
Social Media - Leverage the
State Street Global Advisors
page to increase promotion of
current 529 content around
529 Day and high school
graduation time.
Paid Search - Increase
budget around 529 Day to
promote SSGA Upromise
web resources for advisors
and utilize geo-targeting.
Direct Marketing Email -
Deploy email on 529 Day
promoting
resources
advisors can
utilize with
clients.
Refresh
content
“Dispelling 529
College
Savings Plan
Myths” to
address some
of the most
common
misunderstandings toward college
savings plans to help clients
distinguish fact from fiction.
Paid Search- Update GDN ads
with highlights from recent
529 campaigns and collateral.
Launch Part 3 of the Future
of Education Campaign
Series with a Direct
Marketing Email promoting
the final article. Social Media
& Paid Search - Continued
promotion of Future of
Education Article series.
129
Appendix A: Reporting130
FY 2020 Social Media Reporting
Q2 FY 2020(October-December, 2019)
Q1 FY 2020(July-September, 2019)
Impressions Engagements ER% Clicks CTR%Video
Views
Organic 1,118 17 1.52% 12 1.07% 0
Promoted 107,864 637 0.59% 339 0.31% 28,758
Total 108,982 654 351 28,758
Impressions Engagements ER% Clicks CTR%Video
Views
Organic 29,367 151 0.60% 68 0.32% 721
Promoted 731,574 12,864 0.51% 1,970 0.23% 96,686
Total 760,941 13,015 2,038 97,407
Impressions Engagements ER% Clicks CTR%
Promoted 16,089 321 2.00% 197 1.22%
Total 16,089 321 197
Impressions Engagements ER% Clicks CTR %
Organic 21,033 342 1.63% 220 1.05%
Promoted 490,159 10,694 2.18% 1,378 0.28%
Total 511,192 11,036 1,598
Q3 FY 2020(January-March, 2020)
Impressions Engagements ER% Clicks CTR%
Organic 3,728 42 1.13% 35 0.94%
Promoted 74,667 639 0.86% 584 0.78%
Total 78,395 681 619
Source: State Street Global Advisors. As of June 2020.
Note: Social Media (LinkedIn and Twitter) was not actively promoted in Q4 FY
2020. Twitter was not promoted in Q3 FY 2020.131
FY 2020 Paid Search Reporting
Top Keywords
+529 +plan
+529 +account
+529 +college +plan
529 plan
+college +savings +plan
+college +savings
+account
529 college savings plan
+529 +college +savings
+plan
+529 +college +fund
college savings plan
Clicks Impressions Click Thru Rate Cost Per Click Cost Downloads
Total FY 2020Average FY 2020 17,770 3,061,834 2.01% $ 5.13 $ 76,856.64 2523
132
Appendix B: Disclosures133
Important Disclosures
For more information about the SSGA Upromise 529 Plan (“the Plan”)
download the Plan Description and Participation Agreement or request one by
calling 1-800-587-7305. Investment objectives, risks, charges, expenses, and
other important information are included in the Plan Description; read and
consider it carefully before investing. Ascensus Broker Dealer Services, LLC.
(“ABD”) is distributor of the Plan.
Please Note: Before you invest, consider whether your client’s state or your
client’s beneficiary’s home state offers any state tax or other state benefits
such as financial aid, scholarship funds, and protection from creditors that
are only available for investments in that state’s qualified tuition program.
The SSGA Upromise 529 Plan (the “Plan”) is administered by the Board of Trustees
of the College Savings Plans of Nevada (the “Board”). Ascensus Broker Dealer
Services, LLC. (ABD) serves as the Program Manager. ABD has overall
responsibility for the day-to-day operations, including distribution of the Plan and
provision of certain marketing services. State Street Global Advisors (SSGA) serves
as Investment Manager for the Plan except for the Savings Portfolio, which is
managed by Sallie Mae Bank, and also provides or arranges for certain marketing
services for the Plan. The Plan’s Portfolios are either (i) powered by SPDR® ETFs—
meaning the underlying funds offered for investment options are exchange-traded
funds (“ETFs”), and where applicable, mutual funds offered or managed by SSGA
Funds Management, Inc.; or (ii) a Federal Deposit Insurance Corporation (FDIC)
insured omnibus savings account held in trust by the Board at Sallie Mae Bank.
Except for the Savings Portfolio, investments in the Plan are not insured by the
FDIC. Units of the Portfolios are municipal securities and the value of units will vary
with market conditions.
Standard & Poor’s®, S&P® and SPDR® are registered trademarks of Standard &
Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow
Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been
licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain
purposes by State Street Corporation. State Street Corporation’s financial products
are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their
respective affiliates and third party licensors and none of such parties make any
representation regarding the advisability of investing in such product(s) nor do they
have any liability in relation thereto, including for any errors, omissions, or
interruptions of any index.
Investing involves risk including the risk of loss of principal. Investment returns will
vary depending upon the performance of the Portfolios you choose. Except to the
extent of FDIC insurance available for the Savings Portfolio, you could lose all or a
portion of your money by investing in the Plan, depending on market conditions.
Account Owners assume all investment risks as well as responsibility for any federal
and state tax consequences.
© 2020 State Street Corporation. All Rights Reserved.
2060726.9.2.AM.RTL Exp. September 30, 2021
134
The Vanguard 529 Plan
Marketing Plan
July 2020 – June 2021 135
CONTENTS
2020/2021 Marketing goals ………………………………………….3
Target audience ………………………………………….4
Marketing strategies ………………………………………….5
Execution ………………………………………….6
Appendix
Plan growth & demographics
2019/2020 Year-in-review
………………………………………….7
2136
College saving is the #2 goal behind saving for retirement. We aim to overcome the top 2 barriers to entry cited through research* as:
1. Lack of knowledge2. Managing competing financial priorities
1) Awareness
Raise awareness as the premiere plan of choice for Nevadans, Vanguard Retail clients, and education savers nationwide
2) Growth
Acquire new accounts through multi-channel marketing and advertising campaigns
3) Engagement
Increase engagement for existing 529 plan clients and prospects
2020/2021 MARKETING GOALS
Increase the total number of accounts in the VG 529 Plan, as measured by:
IT’S ABOUT PRIORITIES
3* Vanguard primary research, fall 2019
137
25% Of the U.S. population is made up of Millennials.
1/4 Of Millennials are parents, today.
1/3Of older Millennials have earned a 4-year college degree, making them the best educated group of young adults in U.S. history.
#1 Of any generation, in terms of spending power.
PEWResearch.org, 2020
How America Saves for College 2016, SallieMae
How America Saves for College 2018, SallieMae
Millennial Parents
TARGET AUDIENCE
While Millennial parents are the primary target audience, secondary audiences must be considered throughout content creation and tactical execution. These secondary audiences include grandparents, Generation X parents, and Baby Boomer parents.
4138
Bring the brand
to life
• Introduce the
Vanguard brand
• What makes us
different?
• Showcase mission
alignment
• Become a trusted
brand
• Position Vanguard
as an information
resource, trusted
brand, and
motivator of
positive savings
behaviors
Be relevant
& relatable
• Help manage life’s
competing priorities
and financial
demands
• Provide content
that fits with
Millennial’s
lifestyles
• Acknowledge
differentiation
between Millennial
parenting and
previous
generations
(e.g., breaking
gender stereotypes
& maintaining a
sense of self)
Educate
& differentiate
• Address 529 basics
clearly and
concisely
• What’s a 529?
• 529’s vs. other
savings vehicles
• Selecting a 529 and
underlying
investments
• The VG 529 plan
• Information you’ll
need ready
Be present
• Create touchpoints
throughout the
decision making
journey, known to
last 6 months or
less
• Make an early,
frequent, and
lasting impression
through channels
where the decision
making journey
begins
• Lean into
data-based triggers
Experiment
& engage
• Find opportunities
to utilize
user-generated
content
• Offer ways for
investors to
provide
suggestions,
input, & feedback
• Encourage and
reinforce positive
savings behaviors
AWARENESS GROWTH ENGAGEMENT
MARKETING STRATEGY
5139
* All tactics include Nevada residents
EXECUTION
Strategy Tactics
Bring the brand to life
Broaden affinity for the Vanguard brand and lean into alignment of
the product with the broader offering
• Creation of a brand within a brand
Creative refresh
• Evolve clients into promoters
• Employ real-time feedback channels to evaluate impact of messaging
Be present
Establish a consistent presence across channels targeted at
milestones throughout the decision-making journey
• Paid/organic social media
Facebook, Twitter, LinkedIn, Instagram
• Paid advertising in proven channels
Search, site direct, remarketing
• Email (pure prospecting & trigger-based)
• Public site refresh
Be relevant & relatable
Create upper funnel, differentiated content across varied
formats that Millennials enjoy consuming
• Landing page
• Webcast/streaming
• Videos/audio
• Static content, gifs, animation
• Banner ads
• Long-form content (articles, blogs, listicles)
• Refresh of public site content
• Vanguard blog
Educate & differentiate
Provide digestible and actionable content that positions Vanguard
as a trusted source of education saving information
• Promotion of plan enhancements
• Time-of-year messaging
Tax season, graduation, back to school, year-end, 529 day
• Promotion of tools
• Account owner nudges
Experiment & engage
Experiment with new tactics to evaluate effectiveness
of larger rollout efforts
• Paid advertising in newer channels
YouTube, OTT, Spotify, influencer/affiliate, pregnancy apps
• Direct mail & email prospecting
• User-generated content
• Client engagement nudges
VisitorsProspects PromotersLeads Client
6140
APPENDIX
Plan growth & demographics
2019/2020 Year-in-review7
141
PLAN GROWTH & DEMOGRAPHICS
2017 2018 2019
Va
ng
uard
52
9 P
lan
Total AUM $17 Billion $17.4 Billion $22.1 Billion
Contributions $1.6 Billion $1.9 Billion $1.98 Billion
Plan Growth
Gross New Accounts 51,723 56,078 51,796
Average Contribution $1,569 $1,691 $1,502
Average Withdrawal ($12,677) ($13,640) ($13,226)
Average Account Balance $80,880 $73,667 $85,797
Beneficiary Demographics
0-6 Years 30% 31% 30%
7-12 Years 31% 29% 29%
13-18 Years 26% 26% 26%
19+ Years 13% 13% 15%
2017 2018 2019
Neva
da
Res
ide
nts
Total AUM $194 Million $199 Million $255.5 Million
Contributions $17 Million $23.8 Million $22.1 Million
Plan Growth
Gross New Accounts 901 1,020 999
Average Contribution $599 $689 $570
Average Withdrawal ($5,224) ($6,237) ($5,681)
Average Account Balance $34,430 $30,861 $35,724
Beneficiary Demographics
0-6 Years 0.52% 0.53% 0.54%
7-12 Years 0.46% 0.47% 0.46%
13-18 Years 0.36% 0.37% 0.38%
19+ Years 0.18% 0.20% 0.21%
8142
Data is through April 30th, 2020
2019/2020 MARKETING YEAR-IN-REVIEW
Overall Growth Awareness Engagement
14,972 – New VG 529
accounts attributable to
overall Retail advertising
4,030 – New VG 529
accounts attributable to 529
specific advertising
3,366 – Gross new accounts
from email prospecting
15 of 17 – Counties in Nevada
with a VG 529
50 – States in the U.S. that have
VG 529 accounts
3,366 – Gross new accounts
from email prospecting
24 – New accounts driven by
social media, even though this
is an awareness tactic over
growth.
$793K – Promised assets via
social media
4.8% – Facebook average
engagement rate
3.1% – Twitter average
engagement rate
127% – ROI on paid
advertising investment
4,030 – New VG 529
accounts attributable to 529
specific advertising
3,366 – Gross new accounts
from email prospecting
2.14% – of ad-attributable
accounts were in NV
5 – A/O engagement email
campaigns
32 - 54% – Range of open
rates*
37% – Average open rate
.65 - 3.8% – Range of click
rates
1.57% – Average click rate
Q1 & Q4 communications
continue to see the highest
open and click rates
* Average open rate for finance industry is 40%, according to HubSpot9
143
Wealthfront 529
For Wealthfront Corporation and its subsidiaries use only. Not for outside distribution.
Administered by
Nevada State Treasurer
144
Why We Exist
145
Future Vision for Wealthfront: Self Driving MoneyTM
146
529 Marketing Update
147
Our Target Market: Millennials Who Save
● Households in their 30s
looking for the best way to
put their money to work
● 85% of our clients are
under 45 and fall into two
categories; “savvy
advocate” and
“responsible delegator”
● Looking for a one stop
shop for all of their
financial needs
148
Current & Historical Marketing - Nationally Targeted
● Over the past year, we’ve
focused our Google search
advertising on brand search
● We saw a seasonal boost in
January and steady
increases throughout the
year
● We’ve maintained a high and
steady click around 25%
ClicksClick Thru Rate 149
Marketing Initiatives - Lifecycle
We have continued to invest in lifecycle marketing for 529
accounts and college planning.
● Added more information around 529s in our normal
onboarding series
● New account opening nudge email to clients who have
not opened their 529 accounts
○ Open rate: 33.3%
○ Click rate: 4.9%
● Content-oriented dynamic welcome email to new free
planning clients that focuses on 529 college savings
○ Open rate: 72.5%
○ Click rate: 5.1%
150
Marketing Initiatives - Seasonal Campaigns
In 2018, we launched two seasonal campaigns on college planning and
Wealthfront 529s
Back to School Campaign
- We launched a seasonal client campaign in August 2018 to clients
consisting of a targeted email campaign, blog posts, and social
shares.
End of Year Campaign
- The end of the year is an effective time to reach clients who are
thinking about the practical financial to-dos they need to complete by
year-end.
- We incorporated gifting advice and funding a Wealthfront 529 into
the year-end checklist as well as the email communications
151
Marketing Initiatives - Content
Continued to incorporate the 529 and college planning
education in our financial guides and blog
- IPO & Equity Guide
- Guide to Financial Health
- Wealthfront Blog Posts (example)
152
Facebook/Instagram ads for 529/college planning in 2020 Q3
153
Exploring opportunities to merchandise 529 to new cash clients
● Exploring new client lifecycle moments to
merchandise 529. Examples include:
○ If a new client creates a college goal,
we will send them an email about 529
○ If a client pays off their student loans,
merchandise a 529 for their future kid
● Incorporate product moments at those
times in addition to client outreach (similar
to the screen on the right)
154
Wealthfront's College Planning Service
Path is a planning model that allows Clients to explore projections of various possible
financial outcomes based on data from your linked external financial accounts, a
variety of other inputs, your tolerance for risk and your current investments. College
Planning enhances the features of Path and provides for additional planning
functionality using additional inputs and assumptions.
Wealthfront Advisers LLC is an SEC-registered investment advisor providing financial
advisory and planning services to investors who become clients pursuant to a written
agreement, which you can read here. Path's financial planning models are designed
to assist Clients in preparing for their financial future and allows them to personalize
assumptions for their portfolios.
Important Wealthfront 529 College Savings Plan Disclosures
The Wealthfront 529 College Savings Plan ("the Plan") is sponsored by the State of
Nevada, acting through the Board of Trustees of the College Savings Plans of
Nevada, and administered by the State Treasurer's Office. Ascensus Broker Dealer
Services, Inc. serves as Program Manager.
Anyone may invest in the Plan and use the proceeds to pay for qualified higher
education expenses of a beneficiary at an eligible educational institution. If you
withdraw money for something other than qualified higher education expenses, you
will owe federal income tax and may face a 10% federal tax penalty on your earnings.
Important Wealthfront 529 College Savings Plan Disclosures, continued
Before investing in a 529 plan, consider whether your state's plan or that of your
beneficiary offers state tax and other benefits not available through the Plan. Nevada
residents who open a Wealthfront 529 College Savings Plan account will have their
first $25,000 managed for free.
All investing involves risk, including the possible loss of money you invest. Past
performance does not guarantee future performance. Consider the investment
objectives, risks, charges, and expenses of any 529 plan before investing. Please
review the Plan Description and Participation Agreement carefully before investing.
Request one by calling us at (844) 995-8437 or emailing [email protected].
Your investment is not insured or guaranteed by the State of Nevada, the Board, Plan
or any state official, the FDIC or any other federal agency, the Program Manager or
Wealthfront.
Wealthfront Brokerage LLC, member FINRA / SIPC, is a wholly-owned subsidiary of
Wealthfront Corporation and serves as distributor and underwriter of the Plan. Neither
Wealthfront Brokerage LLC or Wealthfront Advisers provide tax advice, and investors
are encouraged to consult with their personal tax advisor.
Distributed by Wealthfront Brokerage LLC
Check out the background of Wealthfront Brokerage LLC on FINRA's BrokerCheck.
Administered by
Nevada State Treasurer
155
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 9
September 17, 2020 Item: Prepaid Summary and Quarterly Performance
Report for the Nevada Prepaid Tuition Program for the period ended June 30, 2020
Summary: In October 2011, the Board approved the Amended Investment Policy Statement and Comprehensive Investment Plan for the Nevada Higher Education Prepaid Tuition Trust Fund outlining the criteria for investment monitoring and analysis, including the establishment of a “Watch List” process. In October of 2014, the Board approved a contract with Pension Consulting Alliance, now known as Meketa Investment Group Inc. (Meketa), to perform investment review services of the Nevada Prepaid Tuition/Higher Education Trust Fund. These services include an independent quarterly review of investment performance and fund monitoring of each underlying fund or separate account. Attached is Meketa’s report for the quarter ending June 30, 2020. Eric White, with Meketa Investment Group Inc. will be available to answer questions. Fiscal Impact: None by this action. Staff recommended motion:
Move to approve the Nevada Higher Education Trust Fund quarterly review of investment performance by Meketa Investment Group Inc. for the quarter ending June 30, 2020.
156
BOSTON CHICAGO LONDON MIAMI NEW YORK PORTLAND SAN DIEGO MEKETA.COM
2Q 2020 Nevada Prepaid
Tuition Plan Quarterly Report
Nevada 529 College Savings Programs
September 17, 2020
157
Nevada Prepaid Tuition Plan
Nevada Prepaid Total Portfolio | As of June 30, 2020
Introduction
The Nevada Prepaid Tuition Plan Portfolio had an aggregate value of $308.7 million as of June 30, 2020. During the latest quarter, the Total Portfolio increased
in value by $35.3 million, and over the past 1-year period the Total Portfolio increased in value by $15.6 million.
Global GDP experienced a historic decline of (4.9%) in the second quarter of 2020 due to the COVID-19 pandemic and the severe economic restrictions to control
the spread. Global central banks took aggressive policy actions as signs of economic deterioration emerged due to the restrictions put in place, with measures
that included cutting of policy rates, deploying emergency stimulus through expanded quantitative easing, liquidity programs to support funding markets,
targeting refinancing operations, and forward guidance commitments to keep monetary policy accommodative until the pandemic is thoroughly under control.
The US labor picture improved over the quarter, as the economy slowly reopened, but unemployment levels remain historic, as the US unemployment rate was
11.1% at the end of the June 2020. US Small Cap Equity led the market in the second quarter with a 25.4% return, as the consumer discretionary and energy sectors
exhibited strong rebounds from the first quarter fallout.
Asset Allocation Trends
With respect to policy targets, the Total Portfolio ended the latest quarter overweight Large Cap Equity and underweight Fixed Income, Small Cap Equity, Mid Cap
Equity and Covered Calls. All asset class weights remain within their policy target ranges.
Recent Investment Performance
The Total Portfolio outperformed its policy benchmark over the most recent quarter by 18 basis points, net of fees. The portfolio returned 4.3% after fees over the
1-year period, outperforming its benchmark by 1.3%. The portfolio also outperformed over the 3-year and 5-year periods by 23 and 7 basis points, respectively.
Recent Investment Performance
Quarter 1 Year 3 Year 5 Year
Total Portfolio (Gross of Fees)3 12.97 4.47 6.57 7.07
Total Portfolio (Net of Fees)2 12.92 4.27 6.45 6.89
Policy Benchmark1 12.74 2.95 6.22 6.82
Excess Return (Net) 0.18 1.32 0.23 0.07
Public DB $250M-$1B Peer Median 12.49 3.14 5.84 5.78
1 Policy Benchmark consists of 39% S&P 500 Index, 30% BBgBarc US Aggregate A+ Bond Index, 20% CBOE BXM Index, 7% S&P Midcap 400 Index, 4% S&P Smallcap 600 Index as of 9/30/2014. Prior to
9/30/2014 Policy Benchmark consisted of 45% S&P 500 Index, 43% BBgBarc US Aggregate A+ Bond Index, 8% S&P Midcap 400 Index, 4% S&P Small cap 600 Index. 2 Total fees for the Chicago Equity Partners Fixed Income Portfolio approximately 17 bps annually. 3 Total Gross of Fees amounts estimated using following manager fee schedule: Vanguard LCE = 4 bps, Vanguard MCE & SCE = 8 bps, Glenmede = 64 bps, CEP = 17 bps.
Page 2 of 7
158
Nevada Prepaid Total Portfolio
Performance and Market Values | As of June 30, 2020
Market Value 3 Mo 1 Yr 3 Yrs 5 Yrs 7 Yrs_
Nevada Prepaid Total Portfolio 308,724,298 12.9 4.3 6.4 6.9 7.8
Nevada Prepaid Custom Benchmark 12.7 2.9 6.2 6.8 7.7
InvMetrics Public DB $250mm-$1B Net Median 12.5 3.1 5.8 5.8 6.8
Summary of Cash Flows Second Quarter One Year
_
Beginning MarketValue
$273,427,561 $293,084,511
Net Cash Flow -$225,211 $2,596,013
Net Investment Change $35,521,948 $13,043,774
Ending Market Value $308,724,298 $308,724,298_
Public Equity 160,630,740 21.1 4.2 8.8 9.5 11.3
Vanguard - Large Cap Equity 130,779,234 20.5 7.5 10.7 10.7 12.1
S&P 500 20.5 7.5 10.7 10.7 12.1
Vanguard - Mid Cap Equity 20,190,460 24.0 -6.8 2.3 5.2 8.0
S&P 400 MidCap 24.1 -6.7 2.4 5.2 8.0
Vanguard - Small Cap Equity 9,661,046 22.1 -11.2 0.6 4.5 7.6
S&P 600 SmallCap 21.9 -11.3 0.6 4.5 7.6
Fixed Income Composite 89,293,677 0.7 9.3 5.1 3.8 3.4
Mesirow 89,293,677 0.7 9.3 5.1 3.8 3.4
BBgBarc US Aggregate A+ TR 1.7 8.8 5.2 4.1 3.7
Covered Calls 58,799,881 12.9 -2.3 2.1 3.9 --
Glenmede Secured Options 58,799,881 12.9 -2.3 2.1 3.9 --
CBOE S&P 500 BuyWrite USD 9.1 -10.3 -0.2 3.0 --XXXXX
1
2
Policy Benchmark consists of 39% S&P 500 Index, 30% BBgBarc US Aggregate A+ Bond Index, 20% CBOE BXM Index, 7% S&P Midcap 400 Index, 4% S&P Smallcap 600 Index as of 9/30/2014. Priorto 9/30/2014 Policy Benchmark consisted of 45% S&P 500 Index, 43% BBgBarc US Aggregate A+ Bond Index, 8% S&P Midcap 400 Index, 4% S&P Small cap 600 Index.
Mesirow replaced Chicago Equity Partners as of 06/01/2020. Total fees for Mesirow Fixed Income Portfolio approximately 17 bps annually.
1
2
Page 3 of 7
159
Nevada Prepaid Total Portfolio
Actual v. Target Allocation | As of June 30, 2020
Asset Allocation vs. TargetCurrent Current Policy Difference Policy Range Within Range
_
Small Cap Equity $9,661,046 3.1% 4.0% -0.9% 1.0% - 7.0% Yes
Mid Cap Equity $20,190,460 6.5% 7.0% -0.5% 2.0% - 12.0% Yes
Large Cap Equity $130,779,234 42.4% 39.0% 3.4% 34.0% - 44.0% Yes
Fixed Income $89,293,677 28.9% 30.0% -1.1% 25.0% - 35.0% Yes
Covered Calls $58,799,881 19.0% 20.0% -1.0% 15.0% - 25.0% Yes
Total $308,724,298 100.0% 100.0%XXXXX
Difference between Policy and Current Allocation
With respect to policy targets, the Total Portfolio ended the latest quarter underweight Fixed Income and overweight Equities. Within Domestic Equity, Smallcap and Mid cap were underweight their target allocation, while Large cap equity was overweight its target allocation. Fixed Income is currently 1.1% below its30% target while the Covered Calls asset class was underweight its 20% target allocation.
1
1
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160
Nevada Prepaid Total Portfolio
Risk/Return Analysis | As of June 30, 2020
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161
Nevada Prepaid Total Portfolio
Manager Performance - Net of Fees | As of June 30, 2020
Market Value($)
QTD(%)
Rank1 Yr(%)
Rank3 Yrs
(%)Rank
5 Yrs(%)
Rank_
Vanguard - Large Cap Equity 130,779,234 20.5 45 7.5 23 10.7 20 10.7 12
S&P 500 20.5 46 7.5 22 10.7 18 10.7 11
Excess Return 0.0 0.0 0.0 0.0
Vanguard - Mid Cap Equity 20,190,460 24.0 40 -6.8 49 2.3 50 5.2 22
S&P 400 MidCap 24.1 40 -6.7 49 2.4 48 5.2 21
Excess Return -0.1 -0.1 -0.1 0.0
Vanguard - Small Cap Equity 9,661,046 22.1 57 -11.2 47 0.6 37 4.5 18
S&P 600 SmallCap 21.9 61 -11.3 48 0.6 37 4.5 18
Excess Return 0.2 0.1 0.0 0.0
Mesirow 89,293,677 0.7 99 9.3 16 5.1 52 3.8 78
BBgBarc US Aggregate A+ TR 1.7 97 8.8 32 5.2 48 4.1 64
Excess Return -1.0 0.5 -0.1 -0.3
Glenmede Secured Options 58,799,881 12.9 28 -2.3 61 2.1 47 2.6 49
CBOE S&P 500 BuyWrite USD 9.1 65 -10.3 97 -0.2 77 3.0 44
Excess Return 3.8 8.0 2.3 -0.4 XXXXX
Peer group percentile rankings calculated using Morningstar peer groups.
Vanguard: The three passive Vanguard equity funds all performed roughly in-line with their benchmarks. This performance is withinexpectations for passive mandates.
Glenmede: The Plan’s Covered Calls manager returned 12.9% during the most recent quarter, outperforming its benchmark by 3.8% andranking in the 28th percentile of its peer group. Over the 1- and 3-year periods, the Covered Calls manager outperformed the benchmark by8.0% and 2.3% respectively.
Mesirow replaced Chicago Equity Partners on 06/01/2020. The combined performance of the two fixed income managers underperformedits benchmark, the BBgBarc US Aggregate A or Better index, over the quarter with a 0.7% return which ranked in the 99th percentile of itspeer group.
Page 6 of 7
162
Disclaimer
WE HAVE PREPARED THIS REPORT (THIS “REPORT”) FOR THE SOLE BENEFIT OF THE INTENDED RECIPIENT (THE “RECIPIENT”).
SIGNIFICANT EVENTS MAY OCCUR (OR HAVE OCCURRED) AFTER THE DATE OF THIS REPORT AND THAT IT IS NOT OUR FUNCTION OR
RESPONSIBILITY TO UPDATE THIS REPORT. ANY OPINIONS OR RECOMMENDATIONS PRESENTED HEREIN REPRESENT OUR GOOD FAITH VIEWS
AS OF THE DATE OF THIS REPORT AND ARE SUBJECT TO CHANGE AT ANY TIME. ALL INVESTMENTS INVOLVE RISK. THERE CAN BE NO
GUARANTEE THAT THE STRATEGIES, TACTICS, AND METHODS DISCUSSED HERE WILL BE SUCCESSFUL.
INFORMATION USED TO PREPARE THIS REPORT WAS OBTAINED FROM INVESTMENT MANAGERS, CUSTODIANS, AND OTHER EXTERNAL
SOURCES. WHILE WE HAVE EXERCISED REASONABLE CARE IN PREPARING THIS REPORT, WE CANNOT GUARANTEE THE ACCURACY OF ALL
SOURCE INFORMATION CONTAINED HEREIN.
CERTAIN INFORMATION CONTAINED IN THIS REPORT MAY CONSTITUTE “FORWARD - LOOKING STATEMENTS,” WHICH CAN BE IDENTIFIED BY THE
USE OF TERMINOLOGY SUCH AS “MAY,” “WILL,” “SHOULD,” “EXPECT,” “AIM”, “ANTICIPATE,” “TARGET,” “PROJECT,” “ESTIMATE,” “INTEND,”
“CONTINUE” OR “BELIEVE,” OR THE NEGATIVES THEREOF OR OTHER VARIATIONS THEREON OR COMPARABLE TERMINOLOGY. ANY
FORWARD-LOOKING STATEMENTS, FORECASTS, PROJECTIONS, VALUATIONS, OR RESULTS IN THIS PRESENTATION ARE BASED UPON CURRENT
ASSUMPTIONS. CHANGES TO ANY ASSUMPTIONS MAY HAVE A MATERIAL IMPACT ON FORWARD - LOOKING STATEMENTS, FORECASTS,
PROJECTIONS, VALUATIONS, OR RESULTS. ACTUAL RESULTS MAY THEREFORE BE MATERIALLY DIFFERENT FROM ANY FORECASTS,
PROJECTIONS, VALUATIONS, OR RESULTS IN THIS PRESENTATION.
PERFORMANCE DATA CONTAINED HEREIN REPRESENT PAST PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
Page 7 of 7
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THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 10
September 17, 2020
Item: Meketa Investment Group Inc. Investment Monitoring Report for 529 Plans for the period ended June 30, 2020
Summary: In December of 2010 the Board hired Pension Consulting Alliance (PCA), now known as Meketa Investment Group Inc. (Meketa), to perform investment review services of the Nevada College Savings Plans. These services include an independent quarterly review of investment performance and fund monitoring of each underlying fund or portfolio within each of the college savings plans. In May of 2011, the Board adopted the 2011 Comprehensive Investment Policies for College Savings outlining the criteria for investment monitoring and analysis, including the establishment of a “Watch List” process. Attached is the quarterly report for the quarter ending June 30, 2020. In their report and memorandum regarding funds on “Watch” status, Meketa Investment Group Inc. is recommending the following changes to “Watch” status Removal from Watch Status
• None Initial Placement on Watch Status
• None Eric White with Meketa Investment Group will present the materials to the Board. Fiscal Impact: None by this action.
164
Staff recommended motion.
Move to approve and accept the Nevada 529 College Savings Plans Investment Monitoring Report prepared by Meketa Investment Group Inc. for the quarter ending June 30, 2020.
165
MEMORANDUM
BOSTON CHICAGO LONDON MIAMI NEW YORK PORTLAND SAN DIEGO
411 NW Park Avenue
Suite 401
Portland, OR 97209
503.226.1050
Meketa.com
TO: Nevada College Savings Plans
FROM: Eric White, CFA; Kay Ceserani; Stephanie Sorg;
Meketa Investment Group
DATE: September 17, 2020
RE: Review of Portfolios Qualifying for “Watch” Status
Summary
Meketa has conducted a review of the underlying funds in the Nevada College Savings Plans for the
period ending June 30, 2020.
Currently, three funds from the USAA Program remain on “Watch” status, and no additional funds
qualify for “Watch” status. These funds are listed below.
• USAA Growth
• USAA Value
• USAA Growth & Income
Currently, four funds from the Putnam 529 for America Program remains on “Watch” status, and no
additional funds qualify for “Watch” status. These funds are listed below.
• Putnam Small Cap Value
• GAA All Equity
• GAA Growth
• GAA Balanced
• GAA Conservative
The Vanguard 529 Program does not have any funds that qualify for “Watch” status, or are currently
on “Watch” status.
The SSgA Upromise 529 College Savings Plan does not have any funds that qualify for “Watch” status,
or are currently on “Watch” status.
The Wealthfront 529 College Savings Plan does not have any funds that qualify for “Watch” status, or
are currently on “Watch” status.
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September 17, 2020
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USAA 529 Plan
Summary of “Watch” Status
Criteria Utilized for Watch Status
Portfolios On Watch Short-term Medium-term Organization
USAA Growth Yes ---
USAA Value Yes ---
USAA Growth & Income Yes ---
Indicates eligible for Watch status as a result of performance
--- Indicates not eligible for Watch status as a result of performance
Performance of Funds Currently on “Watch” Status
Funds on Watch Status
Board
Action Date
Watch Status
Start Date
No. Months
Since Watch
Began
Excess
Return
Since
Watch
USAA Growth 12/13/2018 10/1/2018 21 -0.9%
USAA Value 12/13/2018 10/1/2018 21 -4.0%
USAA Growth & Income 3/21/2019 1/1/2019 18 -2.4%
Funds Currently on “Watch”
USAA Growth (2Q Combined Status Report – Page 39)
Since being placed on “Watch” status 21 months ago, the USAA Growth fund has underperformed its
benchmark, the Russell 1000 Growth index, by (90) basis points and ranked in the 51st percentile of its
Lipper US Large Cap Growth peer group. Over the most recent quarter, the fund matched its
benchmark and ranked in the 47th percentile of its Lipper Large Cap Growth Equity peer group. Strong
stock selection within the information technology and consumer staples contributed the most to relative
performance, while selection within consumer discretionary detracted. On an allocation basis, the fund’s
underweights to real estate and consumer staples added to relative returns.
Despite a strong recent quarter, poor performance over the second half of 2019 caused the USAA
Growth fund to see its short-term performance dip into the Caution range during the previous quarter.
Combining recent poor performance with a difficult 2017 and 2018 means the fund currently qualifies
for “Watch” status due to short-term and medium-term performance. The fund was previously kept on
“Watch” status due to the manager overhaul by Victory; however, as it has now been nine months since
Victory’s takeover, Meketa no longer has any organizational concerns with the fund. Therefore, Meketa
recommends that the USAA Growth fund remain on “Watch” status due to short-term and medium-term
performance struggles.
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September 17, 2020
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USAA Value (2Q Combined Status Report – Page 47)
Since being placed on “Watch” status 21 months ago, the USAA Value fund has underperformed its
Russell 3000 Value benchmark by (4.0%), ranking the fund in the 81st percentile of its Lipper US Large
Cap Value peer group. Over the most recent quarter, the fund has matched the benchmark return and
ranked in the 64th percentile of its peer group. Positive absolute performance during the quarter was
mostly due to stock selection within communication services and utilities, in conjunction with an
underweight allocation to consumer staples.
Despite a strong recent quarter, poor relative performance over the second half of 2019 and first half
of 2020 caused the USAA Value fund to see its short-term performance dip into the Caution range
during the previous six months. Combining recent poor performance with a difficult 2017 and 2018
means the fund currently qualifies for “Watch” status due to short-term and medium-term
performance. The fund was originally kept on “Watch” status due to organizational issues related to
Victory Capitals shakeup of the fund’s sub-advisors. The fund was previously kept on “Watch” status
due to the manager overhaul by Victory; however, as it has now been nine months since Victory’s
takeover, Meketa no longer has any organizational concerns with the fund. Therefore, Meketa
recommends that the USAA Value fund remain on “Watch” status due to short-term and medium-term
performance struggles.
USAA Growth & Income (2Q Combined Status Report – Page 43)
Since being placed on “Watch” status 18 months ago, the USAA Growth & Income fund has
underperformed its Russell 3000 benchmark by (2.4%), placing the fund in the 84th percentile of its
Lipper US Large Cap Core peer group. Over the most recent quarter, the fund underperformed its
benchmark by 30 basis points and ranked in the 23rd percentile of its peer group. The fund’s slight
underperformance during the quarter was mostly due to stock selection within consumer discretionary
and industry sectors, along with an overweight allocation to utilities and consumer staples.
The USAA Growth & Income fund continues to be heavily affected by poor performance that took place
before the recent management changes under Victory Capital undertaken in mid-2019. Prior to the
changes the fund had underperformed over six straight quarters. However, despite outperforming in
1Q 2020, since Victory’s takeover performance has continued to struggle as the last two quarters of
2019 both saw underperformance of (2.0%) or more. The fund continues to qualify for “Watch” status
due to both short-term and medium-term performance. Therefore, Meketa recommends that the USAA
Growth & Income fund remain on “Watch” status due to performance reasons.
168
September 17, 2020
Page 4 of 7
Putnam 529 for America Plan
Summary of “Watch” Status
Criteria Utilized for Watch Status
Portfolios On Watch Short-term Medium-term Organization
Putnam Small Cap Value Yes --- ---
GAA Growth Yes ---
GAA Balanced Yes ---
GAA Conservative Yes ---
GAA All Equity Yes --- ---
Indicates eligible for Watch status as a result of performance
--- Indicates not eligible for Watch status as a result of performance
Performance of Funds Currently on “Watch” Status
Funds on Watch Status
Board Action
Date
Watch Status
Start Date
No. Months
Since Watch
Began
Excess
Return Since
Watch
Putnam Small Cap Value 6/20/2019 1/1/2019 18 0.2%
GAA Growth 12/18/2019 10/1/2019 9 -2.3%
GAA Balanced 12/18/2019 10/1/2019 9 -3.0%
GAA Conservative 12/18/2019 10/1/2019 9 -2.5%
GAA All Equity 6/25/2020 1/1/2020 3 0.6%
Funds Currently on “Watch”
Putnam Small Cap Value (2Q Combined Status Report – Page 56)
Since being placed on “Watch” status 18 months ago, the Putnam Small Cap Value fund has
outperformed its Russell 2000 Value benchmark by 20 basis points, placing the fund in the 63rd
percentile of its Lipper US Small Cap Value Equity peer group. Over most recent quarter, the fund
outperformed its benchmark by 8.3% and ranked in the 16th percentile of its peer group. Stock selection
was the most positive within cyclical sectors with financials and industrials leading the way. Sector
allocations also contributed to positive relative results as the strategy benefited from an overweight to
consumer discretionary and underweights to financials and utilities.
Past results continue to drag on the fund’s medium-term performance (including a difficult 2018) which
remains in the Caution range. The fund continues to qualify for “Watch” status due to its medium-term
performance. Therefore, Meketa recommends that the Putnam Small Cap Value fund remain on “Watch”
status and continue be closely monitored over the coming periods.
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September 17, 2020
Page 5 of 7
Putnam GAA Growth (2Q Combined Status Report – Page 53)
Since being placed on “Watch” status nine months ago, the Putnam GAA Growth fund has
underperformed its custom benchmark by (2.3%). Over the most recent quarter, the Growth fund
underperformed by (76) basis points. The recent quarter’s underperformance was due to the overlay
strategy allocation, in conjunction with manager selection in High Yield Fixed Income sleeve. The High
Yield sleeve underperformed the JPMorgan Developed High Yield Index by (6.9%).
The GAA Growth fund has continued to struggle as its short-term performance has now been in the
Caution range for 12 consecutive months. Recent poor performance has also affected the fund’s
medium-term performance as it has now been in the Caution range for eight months. Therefore,
Meketa recommends that the Putnam GAA Growth fund remain on “Watch” status and be closely
monitored over the coming periods.
Putnam GAA Balanced (2Q Combined Status Report – Page 54)
Since being placed on “Watch” status nine months ago, the Putnam GAA Balanced fund has
underperformed its custom benchmark by (3.0%). Over the most recent quarter, the Balanced fund
underperformed by (84) basis points. The recent quarter’s underperformance was due to the overlay
strategy allocation, poor stock selection within the High Yield sleeve, and an underweight allocation to
the US Small Cap Core Equity and International Equity sleeves. The fund’s High Yield sleeve (4.6% of
portfolio) trailed its benchmark by (690) basis points.
The GAA Balanced fund has seen its performance steady decline over the past 18-month period as its
short-term performance has now been in the Caution range for 15 consecutive months. Recent poor
performance has also affected the fund’s medium-term performance as it has now been in the Caution
range for eight months. Therefore, Meketa recommends that the Putnam GAA Balanced fund remain
on “Watch” status and be closely monitored over the coming periods.
Putnam GAA Conservative (2Q Combined Status Report – Page 55)
Since being placed on “Watch” status nine months ago, the Putnam GAA Conservative portfolio has
underperformed its custom benchmark by (2.5%). Over the most recent quarter, the Conservative fund
underperformed by (43) basis points. The recent quarter’s underperformance was due to the overlay
strategy allocation, in conjunction with manager selection in High Yield Fixed Income sleeve. The High
Yield sleeve (4.6% of the portfolio) underperformed the JPMorgan Developed High Yield Index by (7.1%).
The GAA Conservative fund has continued to struggle as its short-term performance has now been in
the Caution range for 15 consecutive months. Recent poor performance has also affected the fund’s
medium-term performance as it has now been in the Caution range for seven months. Therefore,
Meketa recommends that the Putnam GAA Conservative fund remain on “Watch” status and be closely
monitored over the coming periods.
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September 17, 2020
Page 6 of 7
Putnam GAA All Equity (2Q Combined Status Report – Page 52)
Over the most recent 12-month period, the fund underperformed its custom benchmark by (2.8%) but
outperformed over the most recent quarter by 60 basis points. All four of the fund’s sleeves exhibited
positive absolute and relative results in the second quarter. The All Equity portfolio’s outperformance
was mostly due to stock selection in its Emerging Markets Equity sleeve as it outpaced its custom index
by 6.9%. The fund’s International Equity sleeve was also a large contributor to relative results as it
outperformed its custom index by 74 basis points. The fund’s Small Cap Core sleeve (5.6% of the
portfolio) had positive stock selection in the second quarter and outperformed its custom benchmark
by 35 basis points.
Much like the other GAA funds, the Putnam GAA All Equity fund has seen a long deterioration in
performance and first qualified for “Watch” status in January 2020. Although short-term performance
actually trended upward over the most recent six months, the fund continues to qualify for “Watch”
status due to medium-term performance. Therefore, Meketa recommends the GAA All Equity portfolio
remain on “Watch” status and be closely monitored over the coming periods.
Vanguard 529 Plan
No Funds qualify for “Watch” or are currently on “Watch.”
SSgA Upromise 529 College Savings Plan
No Funds qualify for “Watch” or are currently on “Watch.”
Wealthfront 529 Plan
No Funds qualify for “Watch” or are currently on “Watch.”
APPROVED FOR WATCH STATUS:
_______________________________
Zach Conine, State Treasurer
171
September 17, 2020
Page 7 of 7
Disclosures
WE HAVE PREPARED THIS REPORT (THIS “REPORT”) FOR THE SOLE BENEFIT OF THE INTENDED RECIPIENT (THE “RECIPIENT”).
SIGNIFICANT EVENTS MAY OCCUR (OR HAVE OCCURRED) AFTER THE DATE OF THIS REPORT AND THAT IT IS NOT OUR
FUNCTION OR RESPONSIBILITY TO UPDATE THIS REPORT. ANY OPINIONS OR RECOMMENDATIONS PRESENTED HEREIN
REPRESENT OUR GOOD FAITH VIEWS AS OF THE DATE OF THIS REPORT AND ARE SUBJECT TO CHANGE AT ANY TIME. ALL
INVESTMENTS INVOLVE RISK. THERE CAN BE NO GUARANTEE THAT THE STRATEGIES, TACTICS, AND METHODS DISCUSSED
HERE WILL BE SUCCESSFUL.
INFORMATION USED TO PREPARE THIS REPORT WAS OBTAINED FROM INVESTMENT MANAGERS, CUSTODIANS, AND OTHER
EXTERNAL SOURCES. WHILE WE HAVE EXERCISED REASONABLE CARE IN PREPARING THIS REPORT, WE CANNOT
GUARANTEE THE ACCURACY OF ALL SOURCE INFORMATION CONTAINED HEREIN.
CERTAIN INFORMATION CONTAINED IN THIS REPORT MAY CONSTITUTE “FORWARD - LOOKING STATEMENTS,” WHICH CAN
BE IDENTIFIED BY THE USE OF TERMINOLOGY SUCH AS “MAY,” “WILL,” “SHOULD,” “EXPECT,” “AIM”, “ANTICIPATE,” “TARGET,”
“PROJECT,” “ESTIMATE,” “INTEND,” “CONTINUE” OR “BELIEVE,” OR THE NEGATIVES THEREOF OR OTHER VARIATIONS
THEREON OR COMPARABLE TERMINOLOGY. ANY FORWARD - LOOKING STATEMENTS, FORECASTS, PROJECTIONS,
VALUATIONS, OR RESULTS IN THIS PRESENTATION ARE BASED UPON CURRENT ASSUMPTIONS. CHANGES TO ANY
ASSUMPTIONS MAY HAVE A MATERIAL IMPACT ON FORWARD LOOKING STATEMENTS, FORECASTS, PROJECTIONS,
VALUATIONS, OR RESULTS. ACTUAL RESULTS MAY THEREFORE BE MATERIALLY DIFFERENT FROM ANY FORECASTS,
PROJECTIONS, VALUATIONS, OR RESULTS IN THIS PRESENTATION.
PERFORMANCE DATA CONTAINED HEREIN REPRESENT PAST PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS.
172
BOSTON CHICAGO LONDON MIAMI NEW YORK PORTLAND SAN DIEGO MEKETA.COM
Nevada College Savings Programs
September 17, 2020
2Q 2020 Investment Performance Status Report
173
MEKETA INVESTMENT GROUP
1. Summary of Fund Performance and Watch Status
2. Age-Based Risk/Return Analysis
3. Enrollment Date Risk/Return Analysis
Nevada College Savings Programs
Agenda
Page 2 of 28
174
Summary of Fund Performance andWatch Status
Page 3 of 28
175
MEKETA INVESTMENT GROUP
ProgramTotal
Funds^Positive Acceptable Caution Watch**
Vanguard 529 Plan
Number of Funds 15 13 1 1 --
Percentage 100% 86% 7% 7% 0%
Fund Status 2 2 -- -- --
Fund Status -- -- -- -- --
US Equity Funds 8 8 -- -- --
Intl Equity Funds 1 -- -- 1 --
Fixed Income Funds 5 4 1 -- --
Other Funds* 1 1 -- -- --
SSgA Upromise 529 Plan
Number of Funds 15 14 -- 1 --
Percentage 100% 93% 0% 7% 0%
Fund Status 1 -- -- -- --
Fund Status -- -- -- -- --
US Equity Funds 4 4 -- -- --
Intl Equity Funds 4 4 -- -- --
Fixed Income Funds 6 5 -- 1 --
Other Funds* 2 2 -- -- --
Vanguard 529 Program
• 93% of funds in the Vanguard Programhave either a Positive or Acceptable status
• Fund status changes:
– Two funds improved during the quarter
– No funds deteriorated during the quarter
SSgA Upromise 529 Program
• 93% of funds in the SSgA UpromiseProgram have either a Positive orAcceptable status
• Fund status changes:
– 1 fund improved during the quarter
– No funds deteriorated during the quarter
^Money Market funds not included*Includes Balanced, Commodities, REITs, and MLPs**Reflects funds currently on “Watch” status and new funds qualifying for “Watch” status
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Page 4 of 28
176
MEKETA INVESTMENT GROUP
ProgramTotal
Funds^Positive Acceptable Caution Watch**
USAA 529 Plan
Number of Funds 11 2 3 3 3
Percentage 100% 19% 27% 27% 27%
Fund Status 4 4 -- -- --
Fund Status 3 -- -- 3 --
US Equity Funds 5 2 -- -- 3
Intl Equity Funds 2 -- 2 -- --
Fixed Income Funds 4 -- 1 3 --
Other Funds* -- -- -- -- --
Putnam 529 for America
Number of Funds 16 7 0 4 5
Percentage 100% 44% 0% 25% 31%
Fund Status -- -- -- -- --
Fund Status 3 -- -- 2 1
US Equity Funds 5 4 -- -- 1
Intl Equity Funds 1 1 -- -- --
Fixed Income Funds 4 2 -- 2 --
Other Funds* 6 -- -- 2 4
USAA 529 Program
• 46% of funds in the USAA Program haveeither a Positive or Acceptable status
• Fund status changes:
– 4 funds improved during the quarter
– 3 funds deteriorated during the quarter
Putnam 529 Program
• 44% of funds in the Putnam Program haveeither a Positive or Acceptable status
• Fund status changes:
– No funds improved during the quarter
– 3 funds deteriorated during thequarter
^Money Market fund and NY Life Insurance not included*Includes Balanced, AR, Commodities, REITs, and MLPs**Reflects funds currently on “Watch” status and new funds qualifying for “Watch” status
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Page 5 of 28
177
MEKETA INVESTMENT GROUP
ProgramTotal
Funds^Positive Acceptable Caution Watch**
Wealthfront 529 Plan
Number of Funds 9 8 -- 1 --
Percentage 100% 89% 0% 11% 0%
Fund Status -- -- -- -- --
Fund Status -- -- -- -- --
US Equity Funds 2 2 -- -- --
Intl Equity Funds 2 1 -- 1 --
Fixed Income Funds 4 4 -- -- --
Other Funds* 1 1 -- -- --
Wealthfront 529 Program
• 89% of funds in the WealthfrontProgram have either a Positive orAcceptable status
• Fund status changes:
– No funds improved during thequarter
– No funds deteriorated during thequarter
^Money Market fund and NY Life Insurance not included*Includes Balanced, Commodities, REITs, and MLPs**Reflects funds currently on “Watch” status and new funds qualifying for “Watch” status
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Page 6 of 28
178
MEKETA INVESTMENT GROUP
Current status is based on evaluation results fromshort-term (rolling 12-months), medium-term (rolling36-month) analysis.
According to the Investment Status Schedule, theportfolio’s overall “Current Status” equals the loweststatus as achieved by one or more of the criteria duringthe quarter (see page Appendix for details).
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Vanguard 529 Plan: Summary of Fund Performance Status
PortfoliosPrior Quarter
StatusCurrent Quarter
Status
Passively Managed Funds
Vanguard 500 Index Fund Positive Positive
Vanguard Ttl Stock Mkt Indx Fund Positive Positive
Vanguard Value Index Fund Positive Positive
Vanguard Growth Index Fund Positive Positive
Vanguard Mid-Cap Index Fund Positive Positive
Vanguard Small Cap Index Fund Positive Positive
Vanguard Ttl Intl Stock Index Fund* Caution Caution
Vanguard Total Bond Market Fund Positive Positive
Vanguard Ttl Bond Market II Fund Positive Positive
Vanguard Ttl Intl Bond Market Fund Positive Positive
Actively Managed Funds
Vanguard US Growth Fund** On Watch Positive
Vanguard Windsor Fund On Watch Positive
Vanguard STAR Fund Positive Positive
Vanguard Infl-Prot Securities Fund Acceptable Acceptable
Vanguard High Yield Bond Fund Positive Positive
* Fund has been excluded from Watch status but remains below watch criteria** Vanguard Morgan Growth fund merged into the Vanguard US Growth fund to start 2Q 2019
Page 7 of 28
179
MEKETA INVESTMENT GROUP
Funds identified as “Currently on Watch” are those whoseWatch status has been approved by the State Treasurer’sOffice.
Funds identified as “Qualifying for Watch” have notnecessarily been approved as being on Watch by the StateTreasurer’s Office, but qualify for Watch according to theapproved Monitoring Criteria (see Appendix for details).
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Vanguard 529 Plan: Summary of Watch Status
PortfoliosCurrently on
Watch?Qualifies for
Watch?
Passively Managed Funds
Vanguard 500 Index Fund NO NO
Vanguard Ttl Stock Mkt Indx Fund NO NO
Vanguard Value Index Fund NO NO
Vanguard Growth Index Fund NO NO
Vanguard Mid-Cap Index Fund NO NO
Vanguard Small Cap Index Fund NO NO
Vanguard Ttl Intl Stock Index Fund* NOShort-Term
Medium-Term
Vanguard Total Bond Market Fund NO NO
Vanguard Ttl Bond Market II Fund NO NO
Vanguard Ttl Intl Bond Market Fund NO NO
Actively Managed Funds
Vanguard US Growth Fund** NO NO
Vanguard Windsor Fund NO NO
Vanguard STAR Fund NO NO
Vanguard Infl-Prot Securities Fund NO NO
Vanguard High Yield Bond Fund NO NO
* Fund has been excluded from Watch status but remains below watch criteria** Vanguard Morgan Growth fund merged into the Vanguard US Growth fund to start 2Q 2019
Page 8 of 28
180
MEKETA INVESTMENT GROUP
Current status is based on evaluation results from short-term (rolling 12-months), medium-term (rolling 36-month)analysis.
According to the Investment Status Schedule, the portfolio’soverall “Current Status” equals the lowest status asachieved by one or more of the criteria during the quarter(see page Appendix for details).
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
SSgA Upromise 529 Plan: Summary of Fund Performance Status
PortfoliosPrior Quarter
StatusCurrent Quarter
Status
Passively Managed Funds
SPDR S&P 500 ETF Trust Positive Positive
SPDR S&P Mid-Cap 400 ETF Trust Positive Positive
SPDR S&P 600 Small Cap ETF Positive Positive
SPDR Dow Jones REIT ETF Positive Positive
SPDR Dow Jones International Real Estate ETF Positive Positive
SPDR S&P Port Developed World ex-US ETF Positive Positive
SPDR S&P International Small-Cap ETF Positive Positive
SPDR Portfolio Emerging Markets ETF Positive Positive
SPDR S&P Emerging Markets Small-Cap ETF Positive Positive
SPDR Portfolio Aggregate Bond ETF Positive Positive
SPDR Blmbg Barclays TIPS ETF Positive Positive
SPDR FTSE Intl Govt Infl-Protected Bond ETF On Watch Caution
SPDR Blmbg Barclays High Yield Bond ETF Positive Positive
SPDR Portfolio ST Corporate Bond ETF Positive Positive
SPDR Blmbg Barclays 1-3 Month T-Bill ETF Positive Positive
Page 9 of 28
181
MEKETA INVESTMENT GROUP
Funds identified as “Currently on Watch” are those whoseWatch status has been approved by the State Treasurer’sOffice.
Funds identified as “Qualifying for Watch” have notnecessarily been approved as being on Watch by theState Treasurer’s Office, but qualify for Watch accordingto the approved Monitoring Criteria (see Appendix for
details).
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
SSgA Upromise 529 Plan: Summary of Watch Status
PortfoliosCurrently on
Watch?Qualifies for
Watch?
Passively Managed Funds
SPDR S&P 500 ETF Trust NO NO
SPDR S&P Mid-Cap 400 ETF Trust NO NO
SPDR S&P 600 Small Cap ETF NO NO
SPDR Dow Jones REIT ETF NO NO
SPDR Dow Jones International Real Estate ETF NO NO
SPDR S&P Port Developed World ex-US ETF NO NO
SPDR S&P International Small-Cap ETF NO NO
SPDR Portfolio Emerging Markets ETF NO NO
SPDR S&P Emerging Markets Small-Cap ETF NO NO
SPDR Portfolio Aggregate Bond ETF NO NO
SPDR Blmbg Barclays TIPS ETF NO NO
SPDR FTSE Intl Govt Infl-Protected Bond ETF NO Short-Term
SPDR Blmbg Barclays High Yield Bond ETF NO NO
SPDR Portfolio ST Corporate Bond ETF NO NO
SPDR Blmbg Barclays 1-3 Month T-Bill ETF NO NO
Page 10 of 28
182
MEKETA INVESTMENT GROUP
Current status is based on evaluation results fromshort-term (rolling 12-months), medium-term (rolling 36-month) analysis.
According to the Investment Status Schedule, theportfolio’s overall “Current Status” equals the lowest statusas achieved by one or more of the criteria during thequarter (see page Appendix for details.)
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
USAA 529 Plan: Summary of Fund Performance Status
PortfoliosPrior Quarter
StatusCurrent Quarter
Status
USAA Growth Fund On Watch On Watch
USAA Growth & Income Fund On Watch On Watch
USAA Value Fund On Watch On Watch
USAA Income Stock Fund On Watch Positive
USAA Small Cap Stock Fund On Watch Positive
USAA International Fund On Watch Acceptable
USAA Emerging Markets Fund On Watch Acceptable
USAA Income Fund Positive Caution
USAA Intermediate-Term Bond Positive Caution
USAA High Income Fund Acceptable Acceptable
USAA Short-Term Bond Fund Positive Caution
Page 11 of 28
183
MEKETA INVESTMENT GROUP
Funds identified as “Currently on Watch” are those whoseWatch status has been approved by the State Treasurer’sOffice.
Funds identified as “Qualifying for Watch” have notnecessarily been approved as being on Watch by theState Treasurer’s Office, but qualify for Watch accordingto the approved Monitoring Criteria (see Appendix fordetails).
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
USAA 529 Plan: Summary of Watch Status
PortfoliosCurrently On
Watch?Qualifies for
Watch?
USAA Growth Fund YESShort-Term
Medium-Term
USAA Growth & Income Fund YESShort-Term
Medium-Term
USAA Value Fund YESShort-Term
Medium-Term
USAA Income Stock Fund NO NO
USAA Small Cap Stock Fund NO NO
USAA International Fund NO NO
USAA Emerging Markets Fund NO NO
USAA Income Fund NO NO
USAA Intermediate-Term Bond Fund NO NO
USAA High Income Fund NO NO
USAA Short-Term Bond Fund NO NO
Page 12 of 28
184
MEKETA INVESTMENT GROUP
Current status is based on evaluation results fromshort-term (rolling 12-months), medium-term (rolling36-month) analysis.
According to the Investment Status Schedule, theportfolio’s overall “Current Status” equals the loweststatus as achieved by one or more of the criteria duringthe quarter (see page Appendix for details.)
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Putnam 529 for America Plan: Summary Of Fund Performance Status
PortfoliosPrior Quarter
StatusCurrent Quarter
Status
Portfolios for Age/Goal Based
GAA All Equity Caution On Watch
GAA Growth On Watch On Watch
GAA Balanced On Watch On Watch
GAA Conservative On Watch On Watch
Individual Fund Options
SPDR S&P 500 ETF Trust Positive Positive
Putnam Equity Income Positive Positive
Principal Mid Cap Positive Positive
Putnam Growth Opportunities Positive Positive
Putnam Small Cap Value On Watch On Watch
MFS Inst. International Equity Positive Positive
Putnam Income Positive Caution
Federated Hermes Short-Int. Gvt Fund* Caution Caution
Putnam High Yield Positive Positive
Putnam Short Duration Bond Positive Positive
Absolute Return Funds
Putnam Fixed Income Absolute Return Positive Caution
Putnam Multi-Asset Absolute Return* Caution Caution
* Fund has been excluded from Watch status but remains below watch criteria
Page 13 of 28
185
MEKETA INVESTMENT GROUP
PortfoliosCurrently on
Watch?Qualifies for
Watch?
Portfolios for Age/Goal Based
GAA All Equity YES Medium-Term
GAA Growth YESShort-Term
Medium-Term
GAA Balanced YESShort-Term
Medium-Term
GAA Conservative YESShort-Term
Medium-Term
Individual Fund Options
SPDR S&P 500 ETF NO NO
Putnam Equity Income Fund NO NO
Principal MidCap Blend Fund NO NO
Putnam Growth Opportunities Fund NO NO
Putnam Small Cap Value Fund YES Medium-Term
MFS Inst. International Equity Fund NO NO
Putnam Income Fund NO NO
Federated Hermes Short-Int. Gvt Fund* NO Medium-Term
Putnam High Yield Fund NO NO
Putnam Short Duration Bond Fund NO NO
Individual Fund Options
Putnam Fixed Income Absolute Return NO NO
Putnam Multi-Asset Absolute Return* NOShort-Term
Medium-Term
Funds identified as “Currently on Watch” are those whoseWatch status has been approved by the State Treasurer’sOffice.
Funds identified as “Qualifying for Watch” have notnecessarily been approved as being on Watch by theState Treasurer’s Office, but qualify for Watch accordingto the approved Monitoring Criteria (see Appendix fordetails).
Putnam 529 for America Plan: Summary of Watch Status
* Fund has been removed from Watch status but remains below watch criteria
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Page 14 of 28
186
MEKETA INVESTMENT GROUP
Wealthfront 529 Plan: Summary of Fund Performance Status
PortfoliosPrior Quarter
StatusCurrent Quarter
Status
Passively Managed Funds
Vanguard Total Stock Market ETF Positive Positive
Vanguard Dividend Appreciation ETF Positive Positive
Vanguard FTSE Developed Markets ETF* Caution Caution
Vanguard FTSE Emerging Markets ETF Positive Positive
Vanguard REIT ETF Positive Positive
iShares iBoxx $ Invst. Grade Corp. Bond ETF Positive Positive
iShares JP Morgan USD Em. Mkt. Bond ETF Positive Positive
Vanguard Short Treasury Bond ETF Positive Positive
Vanguard Short-Term Infl-Prot Securities ETF Positive Positive
Current status is based on evaluation results from short-term (rolling 12-months), medium-term (rolling 36-month) analysis.
According to the Investment Status Schedule, the portfolio’s overall “Current Status” equals the lowest status as achieved by one or more of the criteria during the quarter (see page Appendix for details).
* Fund has been excluded from Watch status but remains below watch criteria
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Page 15 of 28
187
MEKETA INVESTMENT GROUP
Wealthfront 529 Plan: Summary Of Watch Status
PortfoliosCurrently on
Watch?Qualifies for
Watch?
Passively Managed Funds
Vanguard Total Stock Market ETF NO No
Vanguard Dividend Appreciation ETF NO NO
Vanguard FTSE Developed Markets ETF* NOShort-Term
Medium-Term
Vanguard FTSE Emerging Markets ETF NO NO
Vanguard REIT ETF NO NO
iShares iBoxx $ Invst. Grade Corp. Bond ETF NO NO
iShares JP Morgan USD Em. Mkt. Bond ETF NO NO
Vanguard Short Treasury Bond ETF NO NO
Vanguard Short-Term Infl-Prot Securities ETF NO NO
Funds identified s “Currently on Watch” are those whoseWatch status has been approved by the State Treasurer’sOffice.
Funds identified as “Qualifying for Watch” have notnecessarily been approved as being on Watch by theState Treasurer’s Office, but qualify for Watch accordingto the approved Monitoring Criteria (see Appendix fordetails).
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
* Fund has been excluded from Watch status but remains below watch criteria
Page 16 of 28
188
Age-Based Risk/Return Analysis
Page 17 of 28
189
MEKETA INVESTMENT GROUP
Source: MorningStar
Age 0-4 1-year (as of June 30, 2020)
Age 5-61-year (as of June 30, 2020)
Direct-Sold Programs
Vanguard Agg 0-2 & 3-4
Vanguard Con 0-2
Vanguard Mod 0-2
Vanguard Mod 3-4
USAA 0-2
Vanguard Con 3-4
USAA 3-4
0-4 Direct Median
-50.0
-40.0
-30.0
-20.0
-10.0
0.0
10.0
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0
Re
turn
(%
)
Standard Deviation (%)
Vanguard Con 5-6
USAA 5-6
Vanguard Agg 5-6
Vanguard Mod 5-6
5-6 Direct Median
-40.0
-35.0
-30.0
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0
Re
turn
(%
)
Standard Deviation (%)
Nevada College Savings Programs
Age-Based Risk/Return Analysis
Page 18 of 28
190
MEKETA INVESTMENT GROUP
Age 7-81-year (as of June 30, 2020)
Age 9-101-year (as of June 30, 2020)
USAA 7-8Vanguard Mod 7-8
7-8 Direct Median
Vanguard Con 7-8 Vanguard Agg 7-8
-40.0
-35.0
-30.0
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0
Re
turn
(%
)
Standard Deviation (%)
Vanguard Agg 9-10
Vanguard Con 9-10
Vanguard Mod 9-10
9-10 Direct Median
USAA 9-11
-30.0
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0
Re
t urn
(%
)
Standard Deviation (%)
Nevada College Savings Programs
Age-Based Risk/Return Analysis
Direct-Sold Programs
Source: MorningStar
Page 19 of 28
191
MEKETA INVESTMENT GROUP
Age 11-121-year (as of June 30, 2020)
Age 13-141-year (as of June 30,, 2020)
Vanguard Agg 11-12
Vanguard Con 11-12
Vanguard Mod 11-12 11-12 Direct Median
USAA 12-13
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
0.0 5.0 10.0 15.0 20.0 25.0 30.0
Re
turn
(%
)
Standard Deviation (%)
Vanguard Agg 13-14
Vanguard Con 13-14
Vanguard Mod 13-14
13-14 Direct Median
USAA 14-15
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0
Re
t urn
(%
)
Standard Deviation (%)
Nevada College Savings Programs
Age-Based Risk/Return Analysis
Direct-Sold Programs
Source: MorningStar
Page 20 of 28
192
MEKETA INVESTMENT GROUP
Age 15-161-year (as of June 30, 2020)
Age 17-181-year (as of June 30, 2020)
Vanguard Agg 15
Vanguard Agg 16
Vanguard Con 15 & 16 15-16 Direct MedianUSAA 16-17
Vanguard Mod 15
Vanguard Mod 16
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0
Re
turn
(%
)
Standard Deviation (%)
Vanguard Agg 17
Vanguard Agg 18
Vanguard Con 17 & 18
17-18 Direct Median
Vanguard Mod 17 & 18
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0
Re
turn
(%
)
Standard Deviation (%)
Nevada College Savings Programs
Age-Based Risk/Return Analysis
Direct-Sold Programs
Source: MorningStar
Page 21 of 28
193
MEKETA INVESTMENT GROUP
Age 19+1-year (as of June 30, 2020)
Vanguard Agg 19+
Vanguard Con 19+
Vanguard Mod 19+
19+ Direct Median
USAA 18+
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0
Re
turn
(%
)
Standard Deviation (%)
Nevada College Savings Programs
Age-Based Risk/Return Analysis
Direct-Sold Programs
Source: MorningStar
Page 22 of 28
194
Enrollment Date Risk/Return Analysis
Page 23 of 28
195
MEKETA INVESTMENT GROUP
Year 20361-year (as of June 30, 2020)
Year 20331-year (as of June 30, 2020)
SSgA 2036
Putnam 2017
Putnam 2018
2036 Direct Median
2036 Advisor Median
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 23.0 24.0
Re
turn
(%
)
Standard Deviation (%)
SSgA 2033Putnam 2016
2033 Direct Median
Putnam 2015
Putnam 2014
2033 Advisor Median
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0
Re
turn
(%
)
Standard Deviation (%)
Nevada College Savings Programs
Enrollment Date Risk/Return Analysis
Direct & Advisor-Sold Programs
Source: MorningStar
Page 24 of 28
196
MEKETA INVESTMENT GROUP
Year 20301-year (as of June 30, 2020)
Year 20271-year (as of June 30, 2020)
Putnam 2011Putnam 2012
Putnam 2013
2030 Direct Median
SSgA 2030
2030 Advisor Median
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0
Re
turn
(%
)
Standard Deviation (%)
Putnam 2008
Putnam 2009
Putnam 2010
2027 Direct Median
SSgA 2027
2027 Advisor Median
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0
Re
turn
(%
)
Standard Deviation (%)
Nevada College Savings Programs
Enrollment Date Risk/Return Analysis
Direct & Advisor-Sold Programs
Source: MorningStar
Page 25 of 28
197
MEKETA INVESTMENT GROUP
Year 20241-year (as of June 30, 2020)
Year 20211-year (as of June 30, 2020)
Putnam 2005 Putnam 2006
Putnam 2007
2024 Direct MedianSSgA 2024 2024 Advisor Median
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0
Re
turn
(%
)
Standard Deviation (%)
Putnam 2002Putnam 2003
Putnam 2004
2021 Direct Median
SSgA 2021 (College)
2021 Advisor Median
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0
Re
turn
(%
)
Standard Deviation (%)
Nevada College Savings Programs
Enrollment Date Risk/Return Analysis
Direct & Advisor-Sold Programs
Source: MorningStar
Page 26 of 28
198
MEKETA INVESTMENT GROUP
Year 20181-year (as of June 30, 2020)
College1-year (as of June 30, 2020)
Putnam 1999
Putnam 2000Putnam 2001
2018 Direct Median
2018 Advisor Median
0.0
1.0
2.0
3.0
4.0
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Re
turn
(%
)
Standard Deviation (%)
Putnam College
College Direct Median
SSgA College
College Advisor Median
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0
Re
turn
(%
)
Standard Deviation (%)
Nevada College Savings Programs
Enrollment Date Risk/Return Analysis
Direct & Advisor-Sold Programs
Source: MorningStar
Page 27 of 28
199
MEKETA INVESTMENT GROUP
WE HAVE PREPARED THIS REPORT (THIS “REPORT”) FOR THE SOLE BENEFIT OF THE INTENDED RECIPIENT (THE “RECIPIENT”).
SIGNIFICANT EVENTS MAY OCCUR (OR HAVE OCCURRED) AFTER THE DATE OF THIS REPORT AND THAT IT IS NOT OUR FUNCTION ORRESPONSIBILITY TO UPDATE THIS REPORT. ANY OPINIONS OR RECOMMENDATIONS PRESENTED HEREIN REPRESENT OUR GOODFAITH VIEWS AS OF THE DATE OF THIS REPORT AND ARE SUBJECT TO CHANGE AT ANY TIME. ALL INVESTMENTS INVOLVE RISK.THERE CAN BE NO GUARANTEE THAT THE STRATEGIES, TACTICS, AND METHODS DISCUSSED HERE WILL BE SUCCESSFUL.
INFORMATION USED TO PREPARE THIS REPORT WAS OBTAINED FROM INVESTMENT MANAGERS, CUSTODIANS, AND OTHER EXTERNALSOURCES. WHILE WE HAVE EXERCISED REASONABLE CARE IN PREPARING THIS REPORT, WE CANNOT GUARANTEE THE ACCURACY OFALL SOURCE INFORMATION CONTAINED HEREIN.
CERTAIN INFORMATION CONTAINED IN THIS REPORT MAY CONSTITUTE “FORWARD - LOOKING STATEMENTS,” WHICH CAN BEIDENTIFIED BY THE USE OF TERMINOLOGY SUCH AS “MAY,” “WILL,” “SHOULD,” “EXPECT,” “AIM”, “ANTICIPATE,” “TARGET,” “PROJECT,”“ESTIMATE,” “INTEND,” “CONTINUE” OR “BELIEVE,” OR THE NEGATIVES THEREOF OR OTHER VARIATIONS THEREON OR COMPARABLETERMINOLOGY. ANY FORWARD - LOOKING STATEMENTS, FORECASTS, PROJECTIONS, VALUATIONS, OR RESULTS IN THISPRESENTATION ARE BASED UPON CURRENT ASSUMPTIONS. CHANGES TO ANY ASSUMPTIONS MAY HAVE A MATERIAL IMPACT ONFORWARD LOOKING STATEMENTS, FORECASTS, PROJECTIONS, VALUATIONS, OR RESULTS. ACTUAL RESULTS MAY THEREFORE BEMATERIALLY DIFFERENT FROM ANY FORECASTS, PROJECTIONS, VALUATIONS, OR RESULTS IN THIS PRESENTATION.
PERFORMANCE DATA CONTAINED HEREIN REPRESENT PAST PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURERESULTS.
Nevada College Savings Programs
Disclosures
Page 28 of 28
200
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 11 September 17, 2020
Item: Nevada Prepaid Tuition 2021 contract prices, open enrollment dates, and fee schedule Summary: Under NAC 353B.200 the Board shall establish future contract prices, program open enrollment dates and certain program fees annually. Therefore, staff is recommending Board review and approval of the following items: a. Contract Pricing – Request approval of the attached 2021 contract prices. b. Open Enrollment – Staff is proposing open enrollment dates for 2021 to be November 1, 2020 through April 30, 2021. These dates are consistent with the program open enrollment dates observed in the past. c. Program Fees – Staff is not recommending any changes to existing program fees. Fiscal Impact: None by this action. Recommendation:
To accept and approve the proposed Nevada Prepaid Tuition 2021 contract prices, open enrollment dates, and fee schedule.
201
Nevada Prepaid Tuition Program 2021 Fee Chart Enrollment Fee $100 Fee charged for application processing and administration of contracts
Dishonored Payment Fee $25 Payments returned by a financial institution unpaid
Late Payment for Monthly Contract Payments $15 Assessed on monthly payments not received within the 15 day grace period
Delinquency Fee Rate 6.25% Assessed on any unpaid delinquent balance over 90 days
Late Payment Fee - Lump Sum Purchase $15 the first month
Additional 1% of balance including outstanding fees for each
additional 30 day period
Termination Fee $100 Fee charged for cancellation of a contract (involuntary and voluntary)
Fraud Penalty $250 Penalty for submitting fraudulent information on an Open Enrollment Form
Payment Option Change Fee $20 Fee charged for change in payment option (i.e., monthly to extended monthly, etc.)
Change of Tuition Plan Fee $20 Fee charged for changing the type of Prepaid Tuition plan originally purchased.
Change of Purchaser Fee $20 Fee charged to change the Purchaser on a Prepaid Tuition contract (waived due to death)
Change of Beneficiary Fee $20 Fee charged for a transfer of benefits to another qualified beneficiary (waived
if requested change is due to beneficiary death, disability or receipt of full scholarship)
Document Replacement Fee $7 Fee charged for Coupon Book, Welcome Pack, or Student Handbook replacement
Private/Out-of-State School Processing Fee $25
Fee charged to establish third-party billing at an institution for a qualified
beneficiary to a private and/or out-of-state school
Interest on Refund 0%
Interest on Monthly Payment Option 6.25% Rate of interest charged to contracts purchased in 2021 enrollment, paid in monthly installments
Early Pay-Off Discount 6.25% Rate of discount given when paying off the balance of a Prepaid Tuition monthly
installment contract with a lump sum payment
202
Nevada Prepaid Tuition Program Pricing Report for 2021 Open Enrollment Year
203
September 1, 2020 Board of Trustees of the College Savings Plans of Nevada Office of the State Treasurer 101 N. Carson Street, Suite 4 Carson City, Nevada 89701 Attention: Ms. Tara R. Hagan, Chief Deputy Treasurer Re: Nevada Prepaid Tuition Program Pricing Report for the 2021 Open Enrollment Year Dear Trustees: Gabriel, Roeder, Smith & Company (“GRS”) has performed the pricing for the Nevada Prepaid Tuition Program (“the Program”) for fiscal year 2021. The purpose of this report is to set the Program’s pricing for future contracts for the 2021 open enrollment year. This report presents:
• A calculation of the future pricing for new contracts in the Nevada Prepaid Tuition Program during the 2021 open enrollment year.
This report was prepared at the request of the State Treasurer’s Staff and is intended for use by the Program’s Board. This report may be provided to parties other than the Program’s Board only in its entirety. This report should not be relied on for any purpose other than the purpose described above. GRS is not responsible for unauthorized use of this report. The pricing results set forth in this report are based upon data and other information furnished by the Program, concerning plan benefits, Board’s funding policy, and current tuition and enrollment information of Nevada Colleges and Universities. We checked for internal reasonability and year-to-year consistency, but did not audit the data. We are not responsible for the accuracy or completeness of the information provided by the Program. There are currently no Actuarial Standards of Practice that specifically refer to prepaid tuition plans. We have followed the guidance from the Actuarial Standards of Practice on pensions due to its similar nature.
204
Board of Trustees of the College Savings Plans of Nevada September 1, 2020 Page 2
The major actuarial assumptions used in this analysis were adopted by and are the responsibility of the Program and the Program’s Board. GRS preformed a detailed experience study covering the Program’s non-economic experience from July 1, 2012 through June 30, 2017. Updated assumptions were adopted by the Board in conjunction with the study. Economic assumptions are reviewed annually. The latest review is contained in our letter dated June 18, 2020. We understand the Program has adopted the proposed assumptions from that letter for use in the 2021 open enrollment pricing and June 30, 2020 actuarial valuation report. We believe these assumptions are within a reasonable range and are in compliance with actuarial standards regarding pension calculations.
Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Program experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; and changes in Program provisions or applicable law.
We believe that the actuarial methods used in this report are reasonable and appropriate for the purpose for which they have been used. In addition, because it is not possible or practical to consider every possible contingency, we may use summary information, estimates or simplifications of calculations to facilitate the modeling of future events. We may also exclude factors or data that are deemed to be immaterial.
This report is not a recommendation to anyone to participate in the Nevada Prepaid Tuition Program. GRS makes no representations or warranties to any person participating in or considering participation in the Program.
To the best of our knowledge, the information contained in this report is accurate and fairly presents the actuarial pricing of the Nevada Prepaid Tuition Program contracts for the 2021 open enrollment year based on the Board’s funding policy and administrative rules.
James R. Sparks is a Member of the American Academy of Actuaries (MAAA) and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein.
The signing individuals are independent of the program sponsor.
Respectfully submitted, Kenneth G. Alberts James R. Sparks, ASA, MAAA
KGA/JRS:sc
205
Nevada Prepaid Tuition Program
Table of Contents
Page Section A Pricing
Four-Year Senior University ................................................................................................ A-1 Two-Year Senior University ................................................................................................. A-2 One-Year Senior University ................................................................................................. A-3 Two-Year Community College and Two-Year Senior University ......................................... A-4 Two-Year Community College ............................................................................................. A-5
Section B Methods and Assumptions
Adopted Pricing Assumptions ............................................................................................. B-1
206
SECTION A
PRICING
207
Nevada Prepaid Tuition Program A-1
2021 Open Enrollment Year – Four-Year University Cost
2020/2021 Tuition per credit hour 242.25$
2020/2021 Tuition for 30 credit hours 7,267.50$
Investment Return Assumption 5.25%
Explicit Margin 0.00%
Average Total Margin 7.52%
Year
Tuition
Increase
Projected
Tuition per
Credit Hour
Spot-Rate
Interest
Rates^
Discounted
Tuition*
Raw Cost
for 120
Credit
Hours
2020/2021
Proposed
Price
Estimated
Margin
2019/2020
Price
Year to
Year
Increase
0 242.25$
1 2.80% 249.03
2 2.80% 256.01
3 2.50% 262.41
4 4.00% 272.90 5.25% 217.71$
5 4.00% 283.82 5.25% 215.13
6 4.00% 295.17 5.25% 212.57
7 4.00% 306.98 5.25% 210.05
8 4.00% 319.26 5.25% 207.55 9th Grade 25,468$ 25,587$ 0.47% 25,587$ 0.0%
9 4.00% 332.03 5.25% 205.09 8th Grade 25,165 25,526 1.43% 25,526 0.0%
10 4.00% 345.31 5.25% 202.65 7th Grade 24,866 25,465 2.41% 25,465 0.0%
11 4.00% 359.12 5.25% 200.25 6th Grade 24,571 25,405 3.39% 25,405 0.0%
12 4.00% 373.49 5.25% 197.87 5th Grade 24,279 25,344 4.39% 25,344 0.0%
13 4.00% 388.43 5.25% 195.52 4th Grade 23,991 25,284 5.39% 25,284 0.0%
14 4.00% 403.96 5.25% 193.20 3rd Grade 23,706 25,224 6.40% 25,224 0.0%
15 4.00% 420.12 5.25% 190.90 2nd Grade 23,424 25,164 7.43% 25,164 0.0%
16 4.00% 436.93 5.25% 188.63 1st Grade 23,146 25,104 8.46% 25,104 0.0%
17 4.00% 454.40 5.25% 186.39 Kindergarten 22,871 25,044 9.50% 25,044 0.0%
18 4.00% 472.58 5.25% 184.18 Age 4 22,600 24,984 10.55% 24,984 0.0%
19 4.00% 491.48 5.25% 181.99 Age 3 22,331 24,925 11.62% 24,925 0.0%
20 4.00% 511.14 5.25% 179.83 Age 2 22,066 24,865 12.68% 24,865 0.0%
21 4.00% 531.59 5.25% 177.70 Age 1 21,804 24,806 13.77% 24,806 0.0%
22 4.00% 552.85 5.25% 175.58 Newborn 21,545 24,747 14.86% 24,747 0.0%
23 4.00% 574.96 5.25% 173.50
* Discounting assumes half the tuition is payable 2.5 months after the valuation date and half is payable 7.5 months after the valuation date.
^ If the Spot-Rate Interest Rates are less than the Investment Return Assumption, an implicit margin is created.
Pricing includes utilization of credits assumption.
The 2019/2020 Price is a floor for the 2020/2021 Proposed Price.
Grade/Age at
Purchase
4-Year Purchase Costs
208
Nevada Prepaid Tuition Program A-2
2021 Open Enrollment Year – Two-Year University Cost
2020/2021 Tuition per credit hour 242.25$
2020/2021 Tuition for 30 credit hours 7,267.50$
Investment Return Assumption 5.25%
Explicit Margin 0.00%
Average Total Margin 7.11%
Year
Tuition
Increase
Projected
Tuition per
Credit Hour
Spot-Rate
Interest
Rates^
Discounted
Tuition*
Raw Cost
for 60
Credit
Hours
2020/2021
Proposed
Price
Estimated
Margin
2019/2020
Price
Year to
Year
Increase
0 242.25$
1 2.80% 249.03
2 2.80% 256.01
3 2.50% 262.41
4 4.00% 272.90 5.25% 217.71$
5 4.00% 283.82 5.25% 215.13
6 4.00% 295.17 5.25% 212.57
7 4.00% 306.98 5.25% 210.05
8 4.00% 319.26 5.25% 207.55 9th Grade 12,794$ 12,806$ 0.09% 12,806$ 0.0%
9 4.00% 332.03 5.25% 205.09 8th Grade 12,643 12,775 1.04% 12,775 0.0%
10 4.00% 345.31 5.25% 202.65 7th Grade 12,492 12,745 2.03% 12,745 0.0%
11 4.00% 359.12 5.25% 200.25 6th Grade 12,344 12,714 3.00% 12,714 0.0%
12 4.00% 373.49 5.25% 197.87 5th Grade 12,197 12,684 3.99% 12,684 0.0%
13 4.00% 388.43 5.25% 195.52 4th Grade 12,053 12,654 4.99% 12,654 0.0%
14 4.00% 403.96 5.25% 193.20 3rd Grade 11,909 12,624 6.00% 12,624 0.0%
15 4.00% 420.12 5.25% 190.90 2nd Grade 11,768 12,594 7.02% 12,594 0.0%
16 4.00% 436.93 5.25% 188.63 1st Grade 11,628 12,564 8.05% 12,564 0.0%
17 4.00% 454.40 5.25% 186.39 Kindergarten 11,490 12,534 9.09% 12,534 0.0%
18 4.00% 472.58 5.25% 184.18 Age 4 11,354 12,504 10.13% 12,504 0.0%
19 4.00% 491.48 5.25% 181.99 Age 3 11,219 12,474 11.19% 12,474 0.0%
20 4.00% 511.14 5.25% 179.83 Age 2 11,086 12,445 12.26% 12,445 0.0%
21 4.00% 531.59 5.25% 177.70 Age 1 10,954 12,415 13.34% 12,415 0.0%
22 4.00% 552.85 5.25% 175.58 Newborn 10,824 12,385 14.42% 12,385 0.0%
23 4.00% 574.96 5.25% 173.50
* Discounting assumes half the tuition is payable 2.5 months after the valuation date and half is payable 7.5 months after the valuation date.
^ If the Spot-Rate Interest Rates are less than the Investment Return Assumption, an implicit margin is created.
Pricing includes utilization of credits assumption.
The 2019/2020 Price is a floor for the 2020/2021 Proposed Price.
Grade/Age at
Purchase
2-Year Purchase Costs
209
Nevada Prepaid Tuition Program A-3
2021 Open Enrollment Year – One-Year University Cost
2020/2021 Tuition per credit hour 242.25$
2020/2021 Tuition for 30 credit hours 7,267.50$
Investment Return Assumption 5.25%
Explicit Margin 0.00%
Average Total Margin 5.49%
Year
Tuition
Increase
Projected
Tuition per
Credit Hour
Spot-Rate
Interest
Rates^
Discounted
Tuition*
Raw Cost
for 30
Credit
Hours
2020/2021
Proposed
Price
Estimated
Margin
2019/2020
Price
Year to
Year
Increase
0 242.25$
1 2.80% 249.03
2 2.80% 256.01
3 2.50% 262.41
4 4.00% 272.90 5.25% 217.71$
5 4.00% 283.82 5.25% 215.13
6 4.00% 295.17 5.25% 212.57
7 4.00% 306.98 5.25% 210.05
8 4.00% 319.26 5.25% 207.55 9th Grade 6,531$ 6,531$ 0.00% 6,430$ 1.6%
9 4.00% 332.03 5.25% 205.09 8th Grade 6,454 6,454 0.00% 6,414 0.6%
10 4.00% 345.31 5.25% 202.65 7th Grade 6,377 6,399 0.34% 6,399 0.0%
11 4.00% 359.12 5.25% 200.25 6th Grade 6,301 6,384 1.32% 6,384 0.0%
12 4.00% 373.49 5.25% 197.87 5th Grade 6,227 6,369 2.28% 6,369 0.0%
13 4.00% 388.43 5.25% 195.52 4th Grade 6,153 6,353 3.25% 6,353 0.0%
14 4.00% 403.96 5.25% 193.20 3rd Grade 6,080 6,338 4.24% 6,338 0.0%
15 4.00% 420.12 5.25% 190.90 2nd Grade 6,007 6,323 5.26% 6,323 0.0%
16 4.00% 436.93 5.25% 188.63 1st Grade 5,936 6,308 6.27% 6,308 0.0%
17 4.00% 454.40 5.25% 186.39 Kindergarten 5,866 6,293 7.28% 6,293 0.0%
18 4.00% 472.58 5.25% 184.18 Age 4 5,796 6,278 8.32% 6,278 0.0%
19 4.00% 491.48 5.25% 181.99 Age 3 5,727 6,263 9.36% 6,263 0.0%
20 4.00% 511.14 5.25% 179.83 Age 2 5,659 6,248 10.41% 6,248 0.0%
21 4.00% 531.59 5.25% 177.70 Age 1 5,592 6,233 11.46% 6,233 0.0%
22 4.00% 552.85 5.25% 175.58 Newborn 5,525 6,219 12.56% 6,219 0.0%
23 4.00% 574.96 5.25% 173.50
* Discounting assumes half the tuition is payable 2.5 months after the valuation date and half is payable 7.5 months after the valuation date.
^ If the Spot-Rate Interest Rates are less than the Investment Return Assumption, an implicit margin is created.
Pricing includes utilization of credits assumption.
The 2019/2020 Price is a floor for the 2020/2021 Proposed Price.
Grade/Age at
Purchase
1-Year Purchase Costs
210
Nevada Prepaid Tuition Program A-4
2021 Open Enrollment Year – Two-Year University and Two-Year Community College Cost
2020/2021 CC. Tuition per credit hour 106.75$
2020/2021 Univ. Tuition per credit hours 242.25$
Investment Return Assumption 5.25%
Explicit Margin 0.00%
Average Total Margin 7.41%
Year 2-Year CC.
4-Year
Univ.
Projected CC
Tuition per
Credit Hour
Projected Univ.
Tuition per
Credit Hour
Spot-Rate
Interest
Rates^
Discounted
CC Tuition*
Discounted
Univ.
Tuition*
Grade/Age at
Purchase
Raw Cost for
120 Credit
Hours
2020/2021
Proposed
Price
Estimated
Margin
2019/2020
Price
Year to
Year
Increase
0 106.75$ 242.25$
1 2.80% 2.80% 109.74 249.03
2 2.80% 2.80% 112.81 256.01
3 2.50% 2.50% 115.63 262.41
4 3.50% 4.00% 119.68 272.90 5.25% 95.48$ 217.71$
5 3.50% 4.00% 123.87 283.82 5.25% 93.89 215.13
6 3.50% 4.00% 128.20 295.17 5.25% 92.33 212.57
7 3.50% 4.00% 132.69 306.98 5.25% 90.79 210.05
8 3.50% 4.00% 137.33 319.26 5.25% 89.28 207.55 9th Grade 18,131$ 18,284$ 0.84% 18,284$ 0.0%
9 3.50% 4.00% 142.14 332.03 5.25% 87.80 205.09 8th Grade 17,889 18,201 1.74% 18,201 0.0%
10 3.50% 4.00% 147.12 345.31 5.25% 86.34 202.65 7th Grade 17,650 18,118 2.65% 18,118 0.0%
11 3.50% 4.00% 152.27 359.12 5.25% 84.90 200.25 6th Grade 17,415 18,036 3.57% 18,036 0.0%
12 3.50% 4.00% 157.59 373.49 5.25% 83.49 197.87 5th Grade 17,182 17,955 4.50% 17,955 0.0%
13 3.50% 4.00% 163.11 388.43 5.25% 82.10 195.52 4th Grade 16,953 17,874 5.43% 17,874 0.0%
14 3.50% 4.00% 168.82 403.96 5.25% 80.74 193.20 3rd Grade 16,727 17,794 6.38% 17,794 0.0%
15 3.50% 4.00% 174.73 420.12 5.25% 79.40 190.90 2nd Grade 16,504 17,714 7.33% 17,714 0.0%
16 3.50% 4.00% 180.84 436.93 5.25% 78.08 188.63 1st Grade 16,284 17,635 8.30% 17,635 0.0%
17 3.50% 4.00% 187.17 454.40 5.25% 76.78 186.39 Kindergarten 16,068 17,556 9.26% 17,556 0.0%
18 3.50% 4.00% 193.72 472.58 5.25% 75.50 184.18 Age 4 15,854 17,478 10.24% 17,478 0.0%
19 3.50% 4.00% 200.50 491.48 5.25% 74.25 181.99 Age 3 15,643 17,400 11.23% 17,400 0.0%
20 3.50% 4.00% 207.52 511.14 5.25% 73.01 179.83 Age 2 15,435 17,323 12.23% 17,323 0.0%
21 3.50% 4.00% 214.79 531.59 5.25% 71.80 177.70 Age 1 15,230 17,247 13.24% 17,247 0.0%
22 3.50% 4.00% 222.30 552.85 5.25% 70.60 175.58 Newborn 15,027 17,171 14.27% 17,171 0.0%
23 3.50% 4.00% 230.08 574.96 5.25% 69.43 173.50
* Discounting assumes half the tuition is payable 2.5 months after the valuation date and half is payable 7.5 months after the valuation date.
^ If the Spot-Rate Interest Rates are less than the Investment Return Assumption, an implicit margin is created.
Pricing includes utilization of credits assumption.
The 2019/2020 Price is a floor for the 2020/2021 Proposed Price.
4-Year Purchase Costs (2 Years University & 2 Years Community College)Tuition Increase
211
Nevada Prepaid Tuition Program A-5
2021 Open Enrollment Year – Two-Year Community College Cost
2020/2021 Tuition per credit hour 106.75$
2020/2021 Tuition for 30 credit hours 3,202.50$
Investment Return Assumption 5.25%
Explicit Margin 0.00%
Average Total Margin 4.03%
Year
Tuition
Increase
Projected
Tuition per
Credit Hour
Spot-Rate
Interest
Rates^
Discounted
Tuition*
Raw Cost
for 60
Credit
Hours
2020/2021
Proposed
Price
Estimated
Margin
2019/2020
Price
Year to
Year
Increase
0 106.75$
1 2.80% 109.74
2 2.80% 112.81
3 2.50% 115.63
4 3.50% 119.68 5.25% 95.48$
5 3.50% 123.87 5.25% 93.89
6 3.50% 128.20 5.25% 92.33
7 3.50% 132.69 5.25% 90.79
8 3.50% 137.33 5.25% 89.28 9th Grade 5,565$ 5,565$ 0.00% 5,496$ 1.3%
9 3.50% 142.14 5.25% 87.80 8th Grade 5,473 5,473 0.00% 5,444 0.5%
10 3.50% 147.12 5.25% 86.34 7th Grade 5,382 5,392 0.19% 5,392 0.0%
11 3.50% 152.27 5.25% 84.90 6th Grade 5,292 5,340 0.91% 5,340 0.0%
12 3.50% 157.59 5.25% 83.49 5th Grade 5,204 5,290 1.65% 5,290 0.0%
13 3.50% 163.11 5.25% 82.10 4th Grade 5,118 5,239 2.36% 5,239 0.0%
14 3.50% 168.82 5.25% 80.74 3rd Grade 5,032 5,189 3.12% 5,189 0.0%
15 3.50% 174.73 5.25% 79.40 2nd Grade 4,949 5,140 3.86% 5,140 0.0%
16 3.50% 180.84 5.25% 78.08 1st Grade 4,867 5,091 4.60% 5,091 0.0%
17 3.50% 187.17 5.25% 76.78 Kindergarten 4,786 5,042 5.35% 5,042 0.0%
18 3.50% 193.72 5.25% 75.50 Age 4 4,706 4,994 6.12% 4,994 0.0%
19 3.50% 200.50 5.25% 74.25 Age 3 4,628 4,947 6.89% 4,947 0.0%
20 3.50% 207.52 5.25% 73.01 Age 2 4,551 4,900 7.67% 4,900 0.0%
21 3.50% 214.79 5.25% 71.80 Age 1 4,475 4,853 8.45% 4,853 0.0%
22 3.50% 222.30 5.25% 70.60 Newborn 4,401 4,807 9.23% 4,807 0.0%
23 3.50% 230.08 5.25% 69.43
* Discounting assumes half the tuition is payable 2.5 months after the valuation date and half is payable 7.5 months after the valuation date.
^ If the Spot-Rate Interest Rates are less than the Investment Return Assumption, an implicit margin is created.
Pricing includes utilization of credits assumption.
The 2019/2020 Price is a floor for the 2020/2021 Proposed Price.
2-Year Purchase Costs
Grade/Age at
Purchase
212
SECTION B
METHODS AND ASSUMPTIONS
213
Nevada Prepaid Tuition Program B-1
Nevada Prepaid Tuition Program June 30, 2020 Pricing Assumptions (2021 Open Enrollment Year)
Economic Assumptions
Price Inflation (Implicit Assumption):
2.00%
Assumed Rate of Investment Return, Net of Investment Fees:
5.25%
Interest Rate for Payment Plans: 6.25%
Assumed Rate of Tuition Increases:
o Short-Term See Table Below
Rate of Tuition Increases 2021-22 2022-23 2023-24
4-Year Colleges 2.80% 2.80% 2.50%
2-Year Colleges 2.80% 2.80% 2.50%
o Long-Term 3.50% (2-year colleges)/4.00% (4-year colleges) for each subsequent school year.
The rates above for 2021-22 and 2022-23 are based on the 2018 HEPI Index. The rate above for 2023-24 is based on the 2019 HEPI Index.
Annual Tuition 2019/20 2020/21
4-Year Colleges $6,990.00 $7,267.50
2-Year Colleges $3,082.50 $3,202.50
Matriculation/Credit Utilization
Utilization of Credits*: Benefit payments are based on the following schedule in accordance with the type of Contract and the expected Payout Year.
Type of First Second Third Fourth Fifth Sixth
Contract Year Year Year Year Year Year
4-Year University Contracts (post-2010) 20% 20% 20% 15% 15% 10%
2-Year CC plus 2-Year Univ Contracts (post-2010) 18% 18% 18% 18% 14% 14%
2-Year University Contracts 25% 25% 20% 15% 10% 5%
2-Year Community College Contracts 30% 25% 15% 10% 10% 10%
1-Year University Contracts 100%
* Pricing is modeled assuming two payments per year (one in mid-September, one in mid-February).
214
Nevada Prepaid Tuition Program B-2
Nevada Prepaid Tuition Program June 30, 2020 Pricing Assumptions (2021 Open Enrollment Year)
Refund Rates
For pricing, it is assumed 100% of beneficiaries will matriculate in their expected matriculation year and will utilize 100% of their purchased credits.
Other Assumptions
Election of Program Changes: None.
Election of Change of Beneficiary: None.
Contract Terms: No changes in contract terms are assumed, once initiated.
Timing of Tuition Payments: Two payments per year (one in the fall, one in the winter) for beneficiaries have matriculated.
Pricing Methodology
Based on the current tuition rate increased to assumed year of payment (using tuition increase assumption) and discounted to payment date based on the net investment return assumption.
Implicit Risk Premium
An implicit risk premium is created by using discount rates from a yield curve with spot rates that are on average lower than the assumed rate of investment return. Based on the most recent valuation results and funding guidelines, no implicit risk premium was included in this year’s pricing.
Explicit Risk Premium
An explicit risk premium is created when pricing is increased by a specific percentage for risk. Based on the most recent valuation results and funding guidelines, no explicit risk premium was included in this year’s pricing.
215
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 12 September 17, 2020
Item: Nevada Prepaid Tuition 2021 Master Agreement amendments. Summary: NRS 353B.100 requires the Board to establish a prepaid tuition contract in accordance with the Nevada Revised Statutes. This document referred to as the “Master Agreement,” delineates the rules and policies for the Nevada Prepaid Tuition Plan (“Plan”), which is adopted by the Board and meets the federal 529 requirements for disclosure of the program. Fiscal Impact: Approximately $350 for printing costs. Recommendation:
To accept and approve the 2021 Nevada Prepaid Tuition Master Agreement and direct the Treasurer’s Office to administer all contracts within the provisions set forth in this Master Agreement.
216
1
Chapter III:
2020 2021 Master
Agreement
Before you purchase a Nevada Prepaid Tuition
Contract, please carefully read the Master
Agreement, which explains the rules of the
Program. When you sign an Enrollment form, you
are agreeing to the terms of the Master Agreement.
1. DEFINITIONS
Definitions. Terms used in this Master Agreement
and the Enrollment form for purchase of a Contract
have the following meaning:
A. "529 Plan" A qualified prepaid tuition program
or college savings plan within the definition of IRS
Section 529 of the Code.
B. "Academic Year" Undergraduate school year
beginning the first Semester, term, or quarter after
July 15th of any year.
C. "Basic Registration Fee" The charge for the
basic per Credit Hour of course work as established
by the Nevada Board of Regents excluding all
other fees or charges.
D. "Beneficiary" or "Qualified Beneficiary"
The child designated in the Program Contract
Enrollment form to receive the Educational
Benefits of the Program.
E. "Benefit Use Year" The year of Matriculation
to college, which the Beneficiary may begin
drawing on Educational Benefits in the form of
Credit Hours from the Contract.
F. "Board" The Board of Trustees of the College
Savings Plans of Nevada.
G. "Cancellation of Contract" A voluntary
request from the Purchaser to terminate the
Contract and request a refund.
H. "Clock Hours" College level credit course
benefit requested to be converted to Credit Hours
for payment to an Eligible Educational Institution
that charges tuition based on hours spent in class
time rather than Semester Credit Hours. Clock
Hours are converted based on the Free Application
for Federal Student Aid (FASFA) guidelines for the
current academic year.
I. "Code" Internal Revenue Code of 1986, as
amended.
J. "Community College" An Eligible Educational
Institution which grants a two-year degree.
K. "Contract" A Program Contract accepted by
the Program Office, including the Master
Agreement, the Program Description, the
Enrollment Form, and the Plan and payment option
selected by the Purchaser.
L. "Contract Benefits" In-State Credit Hours
purchased for use by the Beneficiary.
M. "Credit Hours" Semester Credit Hours
established by the Nevada Board of Regents. Credit
hours paid for by the Program are intended for
undergraduate studies, and in some instances the
undergraduate benefit may be applied toward
graduate-level work once a Beneficiary attains an
undergraduate degree if he/she has credit hours left
in the Prepaid Tuition Contract when he/she
graduates from college and uses the remaining
credit hours prior to the original Contract
Expiration Date.
N. "Custodian" Person who is designated with the
rights of the Purchaser on a Contract where the
Purchaser is a minor or the Contract was acquired
by way of UGMA or UTMA and the Custodian is
required to act under the terms of the UGMA or
UTMA. The Custodian is responsible for
performing all duties of the Purchaser.
O. "Disabled" or "Disability" Limitation of
individual’s physical or mental abilities resulting
from an injury or disease which renders the
individual incapable of participating in the Program
as either a Purchaser or Beneficiary.
P. "Distribution" Payment by the Program to the
Beneficiary's Eligible Educational Institution
toward Credit Hours, as authorized by the Contract
Purchaser.
Q. "Down-payment" Minimum down payment of
$1,000.00 toward the total purchase price of a 5 217
2
year monthly, 10 year monthly, or extended
monthly payment plan Contract at the time of
enrollment.
R. "Eligible Educational Institution" Includes
accredited postsecondary educational institutions
offering credit towards an associate’s degree, a
bachelor’s degree, professional degree, or another
recognized postsecondary credential, and certain
postsecondary vocational and proprietary
institutions. The institution must be recognized by
the U.S. Department of Education as eligible to
participate in federal student financial aid
programs. See www.fafsa.ed.gov for additional
information.
S. “Expiration Date” The date in which contract
benefits conclude and can no longer be paid. The
beneficiary has six (6) years from the expected high
school graduation date to use the Contract benefits.
Extensions are only allowed per Nevada
Administrative Code outlined in NAC 353B.210.
T. "Family Member" Member of the family as
set forth in IRS Code Section 529(e)(2) which
includes a son or daughter, or a descendant of
either; a stepson or stepdaughter or a descendant of
either; a brother, sister, stepbrother, or stepsister;
the father or mother, or an ancestor of either; a
stepfather or stepmother; a son or daughter of a
brother or sister; a brother or sister of the father or
mother; a son-in-law, daughter-in-law, father-in-
law, mother-in-law, brother-in-law, or sister-in-
law; the spouse of the Beneficiary or the spouse of
any individual listed above; and a first cousin. A
legally adopted child or foster child is also treated
as a Family Member, as is a brother or sister by
half-blood.
U. "Fiscal Year" Time period from July 1st to
June 30th (inclusive) of the next calendar year.
V. "Gift Contribution" Contribution or payment
by a Person who is not the original Contract
Purchaser in connection with an established
Contract.
W. "Giftor" An individual authorized by the
Purchaser to make a Gift Contribution(s) to the
Contract.
X. “Graduate-Level” Post baccalaureate
coursework taken by the Beneficiary in order to
obtain a master’s, professional, or doctorate degree.
Y. "Guardian" An adult authorized to make
decisions on a Contract owned by a minor who
becomes the Purchaser due to death of the original
Purchaser or other legal action without a designated
Purchaser Legal Successor.
Z. "Investment Manager(s)" The Investment
Manager(s) is/are selected by the Board and
administer Program assets in accordance with the
guidelines and objectives contained in the
Program’s Investment Policy. The detailed
investment policy is located onat the website maintained by the Office of the State
Treasurer.www.NVPrepaid.gov.
AA. "Lump Sum Payment" Payment in full for
the Plan at the time of enrollment in the Program
with the Contract accepted by the Program
administrator.
BB. "Mandatory Fee" Any fee, other than
charges for Credit Hours, which a public
educational institution requires all students to pay
as a condition of enrollment in such institution,
including but not limited to class specific fees,
health fees, or technology fees. These examples are
not all inclusive. Mandatory Fees are not covered
by the Program as Educational Benefits. Credit
Hours are the only payments made on behalf of
Beneficiaries in the Program.
CC. “Matching Contribution” Contribution or
payment by an employer as directed by the
employee to match their contribution to an open,
active, “in payment status” Contract for a
designated beneficiary.
DD. "Matriculation" The year that a Beneficiary
is anticipated to commence attendance at a
postsecondary educational institution, generally
concurrent with the high school graduation year.
EE. "Monthly Purchase" Monthly installment
payment option chosen by the Purchaser, with the
Monthly Purchase Amount to be remitted on or
before the 15th day of each month.
FF. "Monthly Purchase Amount" Monthly
dollar amount specified by the Program for
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payment by the Purchaser on a Monthly Purchase
Contract by the 15th day of each month.
GG. "Newborn" A child under one year old at the
time of enrollment.
HH. "Non-qualified Refund" All voluntary
refunds (that are not Qualified Refunds), caused by
Terminations and cancellations are subject to
Termination Fee and penalties payable by the
Purchaser, and shall also include refunds due to the
actuarial unsoundness of the Program as described
in Section 10.B, for which Termination Fee will not
be applicable. A Non-qualified Refund may also
have adverse tax consequences.
II. "Open Enrollment" Period of time designated
by the Board annually to accept new Contracts.
JJ. "Person" An individual who is a citizen of or
legal alien resident of the United States, or a
partnership, trust, association, corporation, or
governmental subdivision existing under the laws
of the United States or any state of the United
States.
KK. "Plan" Type of Program Contract purchased
under Section 3 of the Master Agreement.
LL. "Program" The Nevada Prepaid Tuition
Program.
MM. "Program Administrator" The State
Treasurer of the State of Nevada, or designee.
NN. "Program Fees" The Fees as noted in the
Program Fee Chart as well as the Master
Agreement Section 8.P.
OO. "Purchaser" Person specified in the Contract
who is responsible for payments under the
Contract. If the Purchaser is a natural Person, he or
she must be 18 years of age or older, or have a
trustee, or a designated Custodian of a minor under
the UTMA, or be represented by a court appointed
or approved conservator or Guardian. The
Purchaser also must satisfy applicable residency
requirements.
PP. "Purchaser Legal Successor" Person
designated by the Purchaser on the Contract to have
full ownership rights for the Contract in case of the
death or Disability of the Purchaser.
QQ. "Quarterly Payments" Payments requested
to be converted to Semester Credit Hours from an
Eligible Educational Institution that charges based
on a quarter year system.
RR. "Qualified Refund" A refund made because
the beneficiary (1) received a full scholarship, (2)
attended a service academy, or (3) became
deceased or disabled.
SS. "Resident" Individual who is domiciled in the
State of Nevada and meets the definition of US
Citizen as defined in the Nevada Revised Statutes
(NRS) 10.155. Includes military personnel who
reside out-of-state, but list Nevada as their home of
record in their military files.
TT. "Rollover" Contribution from a Qualified or
Non-qualified Refund transferred to a qualified 529
Plan which shall include a contribution from a
Coverdell Education Savings Account, and/or
Savings Bonds, for the same Beneficiary or a new
Beneficiary.
UU. "UGMA/UTMA" Uniform Gifts to Minors
Act/Uniform Transfers to Minor Act.
VV. "Semester" The fall or spring term of the
Academic Year of 15 to 18 weeks, or the summer
Semester equivalent, as defined by the Nevada
Board of Regents.
WW. "State" State of Nevada.
XX. "Standard Bachelor Degree" Consists of
120 Semester Credit Hours achieving a defined
course of study at an accredited Eligible Education
Institution granting undergraduate degrees.
YY. "Termination" Discontinuation of the
Beneficiaries right to receive Educational Benefits
at an Eligible Educational Institution under the
Contract.
ZZ. "Termination Fee" Fee charged for a Non-
qualified cancellation refund of Contract.
AAA. "Total Contract Price" means the
cumulative amount of all Monthly Purchase
Amounts owed under a Monthly Purchase Plan, or
the Total Contract Price set forth in a Lump Sum
Contract.
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BBB. "Trust Fund" Nevada Higher Education
Prepaid Tuition Trust Fund, which owns Program
assets and from which all Program Educational
Benefits are paid.
CCC. "Tuition Charge" The charge assessed
against students who are not residents of Nevada
and which is in addition to the Basic Registration
Fees or other fees assessed against students who are
residents of the State of Nevada. (See, NRS
396.540 (1) (c)).
DDD. "University" An Eligible Educational
Institution which grants a four-year standard
bachelor's degree. In the context of this document,
any institution which includes "college" in its name
and is otherwise eligible for this Program will be
described as a "University", as long as it also grants
a standard bachelor's degree.
EEE. "Weighted Average Tuition (WAT)" The
average tuition rate calculated based on the cost per
credit hour and the number of attendees at each of
Nevada’s public colleges and universities. The
rates for the public community colleges and public
universities will be calculated separately.
2. PROGRAM OBLIGATIONS
A. General Provisions: The Program agrees to
pay the Basic Registration Fee of Credit Hours
from the assets in the Trust Fund for the level of
Credit Hours purchased in a Contract. University
Credit Hours and Community College Credit Hours
are priced and disbursed at different amounts and
will determine the Total Contract Price and
Educational Benefit disbursed under a Contract.
Educational Benefits may be used at any Eligible
Educational Institution, but only at the level
purchased and up to the maximum number of
Credit Hours purchased.
B. Standard Bachelor’s Degree: A Standard
Bachelor’s Degree usually consists of 120 Semester
Credit Hours (or, on average, 30 credit hours each
year). The student Beneficiary may require more
credit hours than purchased in order to graduate for
various reasons such as dropping, failing, or
repeating classes; taking non-transferable classes at
another Eligible Educational Institution; or
changing majors. The Program will not pay for any
additional Credit Hours.
C. Limit of Benefits: The Program will stop
providing Contract Benefits under this Contract
when the Program has paid the total Credit Hours
purchased, regardless of the number of Credit
Hours the Beneficiary has accumulated toward
graduation.
D. Basic Registration Fee-Credit Hour
Payments Only: The Program will only pay
Educational Benefits, as defined by the Contract
and provide Qualified and Non-qualified Refunds
under the Contract from the assets of the Trust
Fund. The ability of the Program to pay Contract
Benefits and provide Qualified and Non-qualified
Refunds under the Contract is not guaranteed by the
State of Nevada.
E. Contract Benefits Disbursed at Community
College and University Level: The Educational
Benefits disbursed at both the Community College
and University level will be established by the
Board and based on the cost or Weighted Average
Tuition Cost of Credit Hours established for
Nevada Universities and Community Colleges set
by the Nevada Board of Regents. The rate will be
the rate paid to both in-state and out-of-state
Eligible Educational Institutions unless the out-of-
state institution charges less than the in-state credit
hour rate, in which case the Program will pay the
lower rate. The Program agrees to pay the cost of
Credit Hours from the assets of the Trust Fund.
Out-of-state and private or independent Eligible
Educational Institutions may charge tuition fees in
excess of the Contract Benefits. If the Beneficiary
chooses to attend one of these institutions,
Colleges, or Universities, the Beneficiary is
financially liable to pay the difference between the
Program Contract Benefits disbursement amount
and the actual costs. If the Basic Registration Fee is
less than the rate of Contract Benefits paid under
the Contract during that year, the Purchaser may
have an overpayment at the termination of the
Contract and an overpayment reimbursement may
be made by the Program.
F. Contract Requirements: Before the Contract
Benefits can be utilized, all outstanding balances
and Program Fees must be paid in full. A Contract
is considered paid in full when the Total Contract
Price owed and all outstanding fees are paid to the
Program. The Contract must have been purchased
at least three years prior to the Benefit Use Year and
a valid Social Security Number or Tax Payer
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Identification Number must be on file for the
Beneficiary prior to any benefits being paid.
3. PLAN OPTIONS
A. Four Year University Contract, 120
University Level Credit Hours: The Program will
pay for 120 Credit Hours at the Beneficiary's
Eligible Educational Institution.
B. Two Year University Contract, 60
University Level Credit Hours: The Program will
pay for 60 Credit Hours at the Beneficiary's Eligible
Educational Institution.
C. One Year University Contract, 30 University
Level Credit Hours: The Program will pay for 30
Credit Hours at the Beneficiary's Eligible
Educational Institution.
D. Two Year Community College Contract, 60
Community College Level Credit Hours: The
Program will pay for 60 Credit Hours at the
Beneficiary's Eligible Educational Institution.
E. Combination, Two Years of Community
College Level (60) Credit Hours and Two Years
of University Level (60) Credit Hours: The
Program will pay for 60 Credit Hours at the
Beneficiary's Eligible Educational Institution at the
Community College level first. The Program will
then pay for 60 Credit Hours at the University level
after the Community College hours have been
exhausted. The Basic Registration Fee for Credit
Hours at both the Community College and the
University levels will be established by the Nevada
Board of Regents for Nevada domiciled
Community College and four-year Universities and
will be paid to the Beneficiary's Eligible
Educational Institution. As noted above,
Community College credits must be used first,
before University credit hours. All remaining
provisions of the University and Community
College Contracts will apply to the combination
two-year Community College Contract and two-
year University Contract.
Note: The Basic Registration Fees for Credit Hours
established by the Nevada Board of Regents for
Nevada-domiciled four-year Universities and two-
year Community Colleges will be paid to both in-
state and out-of-state Eligible Educational
Institutions. In the event that the Nevada System of
Higher Education Board of Regents adopts varying
tuition rates at Nevada colleges and universities, a
Weighted Average Tuition Model may be used for
Credit Hour payments.
4. ENROLLMENT
A. Submitting an Open Enrollment Form: The
Open Enrollment Form and Enrollment Fee must
be completed and submitted to the Program
according to the Open Enrollment form instructions
and may be accepted only during Open Enrollment
periods designated by the Board. A separate Open
Enrollment form is required for each Beneficiary.
The Open Enrollment form must be completed
online by midnight on the last day of Open
Enrollment or postmarked by the last day of the
Open Enrollment period in order to be processed.
The Board at its sole discretion may extend the
Open Enrollment period.
B. Contract Acceptance: The Program has no
obligation to the Purchaser unless and until it
accepts the Contract. The Program will accept the
Contract only after it receives a fully completed
Open Enrollment form from a qualified Purchaser
and payment of the Enrollment Fee is received in
the form of a personal check, credit card, electronic
withdrawal, cash, cashier's check, certified check,
or money order payable to the Program.
C. Purchaser Qualifications: A qualified
purchaser must (1) satisfy the Nevada residency
requirement: either be a resident of the State of
Nevada, hold a degree or certificate from a Nevada-
domiciled University or Community College or
designate a Beneficiary who is a resident of the
State of Nevada, (2) provide a valid Social Security
Number or Taxpayer Identification Number, and
(3) be 18 years of age or older or have a designated
Custodian under UTMA who may name a minor as
the Purchaser; or be a trust with the authority to
enter into the Contract on behalf of the Beneficiary,
or be a court-appointed conservator or Guardian.
D. Beneficiary Qualifications: The Beneficiary
must have a valid Social Security Number or
Taxpayer Identification Number and must not have
completed the ninth grade of school and not
reached the age of 18 at the time of Contract
acceptance. The Beneficiary must be a resident of
the State of Nevada at the time of enrollment in the
Program, and/or the Purchaser must be a resident of
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the State of Nevada and/or hold a degree or
certificate from a Nevada-domiciled University or
Community College.
E. Enrollment Form Acceptance or Rejection:
A Contract is not established until the Program
sends a written or electronic confirmation of
acceptance of the Open Enrollment form and initial
payment (either Lump Sum or the initial Monthly
Payment) is processed. If an Open Enrollment form
is not accepted based on criteria established by the
Program Administrator, the Enrollment Fee will be
forfeited by the potential enrollee, but an amount
equal to any lump sum or down-payment made will
be returned to the Purchaser. The Purchaser must
have a valid Social Security number (or a Taxpayer
Identification Number) and provide accurate and
full information on the Open Enrollment form or
the enrollment will be rejected. The Program
Administrator will accept more than one Open
Enrollment form, up to a maximum of four
Contracts for a single Beneficiary, as long as the
total Credit Hours of the combined Contracts do
not exceed 120 Semester Credit Hours at any level.
F. Payment and Participation Schedule: A
payment and participation schedule will be
forwarded in writing or electronically to the
Purchaser of an accepted Contract within 60 days
of the close of Open Enrollment and first payments
are due by May 15 of the Open Enrollment year. If
the Purchaser does not receive this schedule by that
time, the Purchaser should immediately notify the
Program.
G. Newborn Enrollment: A Contract for a
Newborn child may be accepted by the Program
without a Social Security Number. However, the
purchaser must supply the Beneficiary’s Social
Security Number or Taxpayer Identification
Number within 60 days of Contract acceptance.
H. Ownership: The Purchaser will hold
ownership rights to the Contract, and only the
Purchaser may exercise rights under the Contract,
unless the Purchaser's rights are transferred to the
Purchaser's Legal Successor, or to the Beneficiary.
Any person making a Gift contribution will not
have any title to or rights under the Contract. If the
Program is unable to locate either the Purchaser or
the Beneficiary within the term of the Contract, the
Program will treat the Contract payments received
as unclaimed property and they shall be transferred
to the State Treasurer in accordance with NRS
120A.
I. Automatic Transfer of Ownership: The
Beneficiary designated in the Contract will
automatically assume the Purchaser's rights and
responsibilities under the title to the Contract in the
event that the Purchaser dies, becomes legally
incompetent, or cannot be located by the Program
and the Purchaser has not designated a living
Purchaser's Legal Successor to assume control of
the Contract. In such event, the Program, without
further notice, consent, authorization or otherwise,
shall act at the specific direction of the Beneficiary,
if not a minor. If the Beneficiary is a minor, the
Contract shall not distribute Educational Benefits
unless and until the Program in its sole judgment
receives acceptable documentation that a legal
Guardian may act on behalf of the Beneficiary, and
the Program will adhere to the directives of such
Guardian. A Change of Purchaser Form, acceptable
documents and Program Fee must be submitted to
the Program Office.
J. Voluntary Transfer of Ownership: The
Purchaser may transfer ownership rights under the
Contract to another Person to act as the Purchaser
if such a transfer is not prohibited by state or federal
law or regulation, and is specifically approved by
the new Purchaser and completed in full on a
Change of Purchaser form provided by the
Program. The new Purchaser must agree to the
transfer by signing the Change of Purchaser form,
submitting the required fee, and shall be subject to
all the terms of the Contract and any outstanding
and unpaid balance and Program Fees on the
Contract. The signature of the current Purchaser
must be notarized.
5. CONTRACT PURCHASER
A. Only One Contract Purchaser Allowed: The
Purchaser must meet the following qualifications
(as applicable):
1. A Purchaser must provide a valid Social
Security Number or a Taxpayer Identification
Number.
2. A Purchaser under the age of 18 must have
an adult sign the Open Enrollment form and
certify that this adult will serve as the Guardian
or Custodian of the Contract.
3. In case of a legal entity purchasing a
Contract, a legally authorized representative of
the entity must sign the Open Enrollment form.
This authorized representative is an individual
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designated by a partnership, corporation, trust,
estate, association, or organization to control a
Contract, however the entity itself and not the
representative, will be the Purchaser of the
Contract. The authorized representative must
sign all forms. The entity must notify the
Program in a timely manner if the authorized
representative changes by submitting a
completed Change of Purchaser from provided
by the Program.
4. The Purchaser must meet the qualifications
of a Purchaser as defined In Section 4.C of this
Agreement.
5. Notices: All notices from the Program will
be directed only to the Contract Purchaser,
unless otherwise requested in writing by the
Purchaser.
6. Address Change: The Purchaser shall keep
their address up to date by changing it online,
or by notifying the Program in writing of any
change of address of the Purchaser,
Beneficiary, or the Purchaser's Legal
Successor. The Program is not responsible for
non-delivered mail regardless of any change of
address and any/all Master Agreement updates
still apply.
B. Using Funds from UGMA/UTMA Accounts:
Custodians for minors under UGMA/UTMA may
purchase a Contract using funds from an UGMA/
UTMA account subject to all state laws and rules
governing such accounts.
1. When proceeds from UGMA/UTMA
accounts are used to purchase a Contract, the
Beneficiary must be shown as the Purchaser
and a Custodian must be designated and
provide required documentation to the Program
and the Custodian will be considered the
Purchaser by the Program for all transactions
and documentation.
2. The Beneficiary will obtain ownership
control of the Contract and all rights of the
Purchaser upon reaching the age of majority.
No Change of Purchaser fee will be charged for
transfer of the Contract at the time of majority.
3. Any and all contributions toward the
purchase of the Contract will be considered to
be UGMA/ UTMA funds and become an asset
of the Beneficiary. Custodians should consider
carefully whether future contributions to a
Contract initially purchased with
UGMA/UTMA proceeds would be appropriate
or whether non-UGMA/UTMA funds in the
future should be used to purchase a new
Contract for a particular Beneficiary.
4. The Program will not be liable for any
consequences related to a Custodian’s improper
use, transfer, or characterization of UGMA/
UTMA-related activity, or other custodial
funds.
C. Rollovers: The Purchaser must indicate if the
purchase of a Contract is funded by a Rollover
contribution from a Coverdell Education Savings
Account, or another IRS Section 529 plan for the
same Beneficiary or for a new Beneficiary who
qualified as a Family Member of the previous
Beneficiary. If it is a Rollover contribution, the
Purchaser must provide documentation acceptable
to the Program showing the earnings portion of the
contribution. To the extent such documentation is
not provided, the Program will treat the entire
amount of the Rollover proceeds as earnings.
Acceptable documentation includes:
1. Statement issued by the 529 Plan showing
the earnings, less the portion of the Purchaser's
withdrawal.
2. Coverdell Education Savings Account
(ESA) statement or documentation issued by
the account custodian that shows the basis and
earnings.
3. Such other documents determined by the
Program Administrator in its sole judgment to
be acceptable and in accordance with current
and future guidance issued by the IRS.
Rollovers will be applied to a Lump Sum
Payment on the Contract unless the Purchaser
specifies otherwise. The distribution must be
reinvested in the Contract within 60 days of the
withdrawal date to avoid adverse tax
consequences on the part of the Purchaser.
D. Power of Attorney: The Program will accept a
notarized Power of Attorney acting on behalf of a
Purchaser (with acceptable documentation). The
Program may request additional documentation if
the Power of Attorney is drawn in another State
and/or the 529 legal counsel requests it. It is the
Purchaser's responsibility to notify the program if
and when the Power of Attorney ends.
6. BENEFICIARY
A. Designation: An individual designated as a
Beneficiary must meet the qualifications of a
Beneficiary and have a valid Social Security
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Number or Taxpayer Identification Number. The
Beneficiary need not be related to the Purchaser.
B. Change of Beneficiary Without Benefit
Usage: For any reason prior to the Benefit Use
Year designated in the Contract and if the Contract
is not in default, has not been Terminated, and no
Educational Benefits have been distributed on
behalf of the current Beneficiary, the Purchaser
may submit a Change of Beneficiary form to
designate a new Beneficiary who must qualify as
a Family Member of the previously designated
Beneficiary. The Purchaser must submit the
required Program Fee and a completed Change of
Beneficiary form including the name, date of birth,
Social Security Number or Taxpayer Identification
Number, and date of Benefit Use Year for the new
Beneficiary before the Program may consider
amending the Contract. The Contract may be
amended by the Program if the age of the proposed
new Beneficiary is less than the age of the existing
qualified Beneficiary or no more than three years
older; or the Purchaser pays any additional sum the
Program determines in its sole judgment to be
necessary, as a result of the change, to ensure the
actuarial soundness of the Trust Fund. A Change of
Beneficiary form must be notarized.
C. Change of Beneficiary with Benefit Usage:
For any reason, prior to the Benefit Expiration
date, and if the Contract has not been
Terminated, the Purchaser may submit a Change
of Beneficiary form to designate a new Beneficiary
who must qualify as a Family Member of the
previously designated Beneficiary. The Purchaser
must submit the required Program Fee and a
completed Change of Beneficiary form including
the name, date of birth, Social Security Number or
Taxpayer Identification Number, and date of
Benefit Use Year for the new Beneficiary before
the Program may consider amending the Contract.
The Change of Beneficiary will not be amended if
the Benefit Use Year exceeds the Benefit Use
Expiration Date of the original beneficiary or if the
transfer results in the new beneficiary exceeding
the statutory limit of 120 credit hour limit per
Beneficiary on all Contracts issued by Program.
Contracts will not be extended past the original
Beneficiary Expiration Date for the new
beneficiary.
D. Transfer to a Family Member Due to Death/
Disability of the Beneficiary: If the Beneficiary
dies or becomes Disabled all Contract
Educational Benefits may be transferred with the
Program's written approval and in accordance with
Section 529 to a Family Member of the
Beneficiary, or a nonprofit organization 501(c)(3),
at the organization’s direction to be used as a
scholarship to a designated individual of the
501(c)(3) choosing provided the original expiration
date of the Contract is adhered to on any Contracts
that have been partially used by the decedent. The
transfer shall be subject to (1) payment of any
outstanding Program fees (if any), and (2) payment
to the Program of the amount necessary in its
sole judgment to reimburse the Program for any
additional expense or loss of funds associated with
the transfer to an older Beneficiary, if applicable. If
a Contract is transferred to an older Beneficiary
who was ineligible for a Contract when the
Contract was purchased, the transfer may not be
approved by the Program. A Change of Beneficiary
form must be completed and documentation
acceptable to the Program of death or Disability
submitted. The Program Administrator may waive
the Change of Beneficiary fee.
E. Total Credit Hours: A Beneficiary may not
accumulate Contracts that exceed 120 Credit Hours
in the Program.
F. Maximum Contribution limit – An account
owner may continue to make contributions to both
the Nevada Prepaid Tuition Program and other
Nevada College Savings Plans for the same
Beneficiary so long as the aggregate balance of all
Section 529 plans sponsored by the State of Nevada
does not exceed the maximum contribution limit,
which is currently $500,000. The Board is required
to set the maximum allowable contribution limit for
all accounts for a Beneficiary. The Board expects
to evaluate the maximum allowable contribution
limit annually but reserves the right to make
adjustments more or less frequently. It is possible
that federal law might impose different limits on
maximum allowable contributions in the future.
G. Designation of Benefit Use Year: The
Purchaser must designate a Benefit Use Year for
the Beneficiary of a Contract. The year must
coincide with the Beneficiary's Matriculation. The
Purchaser may submit a Deferment of Benefit
Request form to the Program on behalf of the
Beneficiary during any year the Program would
disburse Educational Benefits on the Contract, but
the Program must distribute all benefits within 6
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years of the Benefit Use Year, except as provided
by the Contract.
7. PURCHASING OPTIONS
A. Annual Enrollment Period: The Board will
publish an annual Open Enrollment period for each
fiscal year. Open Enrollment forms to purchase a
Lump Sum, Five Year, Ten Year, or an extended
Monthly Installment payment plan may be
submitted only during the Open Enrollment period.
The Purchaser must indicate on the Open
Enrollment form the option selected for payment.
B. Lump Sum Contracts: The Purchaser may
choose to purchase a Contract in one Lump Sum
payment at the time of enrollment.
1. Insufficient Payment: If the Purchaser
who has chosen a Lump Sum Contract pays less
than the total Program Contract amount plus the
one-time Enrollment Fee, the Program will
notify the Purchaser. If the Program does not
receive instructions and payment (if applicable)
from the Purchaser within 90 business days of
the date notice is sent, the Program shall
Terminate the Contract. If the Program sends a
notice, the Purchaser shall advise the Program
by mail that he/she will do one of the following:
▪ Enclose payment in full, including any
specified Program Fees;
▪ Inform the Program to apply the amount
submitted and convert the unpaid
balance (if any) to a Monthly Purchase
option;
▪ Inform the Program to convert the
Contract to a different Plan Option (see
Section 3) which is equal to or less than
the lump sum paid; or
▪ Withdraw the Open Enrollment
Application.
2. Lump Sum Late Fees: If the Program does
not receive payment within 15 days of the due
date, a Late Fee for Lump Sum Purchase will be
applied (see Program Fee Chart). Forty-five
days after the due date, a penalty of 1 percent
of the total amount due, including the
amount of all outstanding fees and penalties
imposed pursuant to the Contract, will be
imposed for each period of 30 days or portion
thereof that passes until:
▪ The total amount due is paid; or
▪ The Contract is terminated at the
discretion of the Program
Administrator, whichever occurs first.
The Program will then return to the purchaser
the amount paid by the purchaser (without
interest), less the enrollment fee, any
outstanding fees, and a termination fee (see
Program Fee Chart).
C. Monthly Payment Purchase Options: A
Purchaser may choose one of three Monthly
Purchase options: make monthly payments over a
60-month time frame (five years); make monthly
payments over a 120-month time frame (ten years);
or make monthly payments from the time of
enrollment in the Program until the Beneficiary
graduates from high school.
1. Down Payment on Monthly Purchase
Plans: If any Monthly Payment options are
selected, the Purchaser may choose to apply an
up-front $1,000 or greater Down Payment
amount to reduce the total cost of the Contract
balance and Monthly Payments.
2. Interest on Balance: The Purchaser must
pay any outstanding balance, calculated
Program Fees, and interest included in the Total
Contract Price by submitting Monthly Purchase
Amounts to the Program. Monthly Purchase
Amounts include an interest component,
(currently 6.25% interest). The total cumulative
amount paid under a Monthly Payment option
over the Contract's life will be more than if paid
by Lump Sum. The Purchaser may submit
additional Monthly Purchase Amounts early
without penalty, but will still be obligated to the
Total Contract Price, unless Purchaser submits
an Early Payoff Request (see Section 8.E).
8. PAYMENTS
A. Methods of Payment: Payments for Contracts,
including any Program Fees must be made in
United States currency, using any of the payment
methods permitted by the Program, which may
include the following:
1. Cashier’s or personal check.
2. Money order.
3. Cash, limit not to exceed $500.
4. Automated Withdrawal authorization.
Purchasers selecting this method must complete
the Automated Withdrawal Authorization Form
provided by the Program, along with a voided
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check for verification of routing and bank
account numbers.
5. Payroll deduction. Purchasers selecting this
method must be employed by an organization
that offers payroll deduction for the Program
and must complete a Payroll Deduction
Authorization Form provided by or acceptable
to the Program. It is the employee’s
responsibility to monitor their Contract
payments and stop payroll deduction once their
Contract is paid in full.
6. Employer Matching Contribution. A
matching contribution made by an employer for
an employee who makes contributions to a
qualified Beneficiary. The employee must
provide proof of Contract payment(s) to their
employer. A matching contribution is accepted
when the employer submits to the Program the
name of the employee and the corresponding
Contract number. Certain limitations may
apply. See NRS 353B.310.
7. E-check. Online automated payment option
via the Program's website using your checking
or savings bank account.
8. Credit Card for the payment of enrollment
fee, optional down payment, and/or lump sum
accepted at the time of enrollment only. Visa,
Master Card, and Discover are accepted.
Although there is currently no extra charge
for the use of a credit card, the Program
reserves the right to impose a transaction fee
for future credit card payments. To reduce
the cost of fees, the Program encourages you
to use e-check.
B. Wire Transfers: The Program does not accept
payments via wire transfers.
C. Fees: The Purchaser will be responsible for any
fees charged by a bank or entity that may be
applicable to the payment method selected,
including fees assessed on returned or dishonored
payments.
D. Acceptance of Payments: Upon acceptance of
a Monthly Purchase Amount or Lump Sum
Payment, the Program will record payment in the
Purchaser's account based on policies established
by the Program Administrator.
E. Early Payoff: A Purchaser under a Monthly
Purchase option who makes a Lump Sum payment
to complete the Total Contract Price before the
final Monthly Purchase Amount is due will receive
an Early Payoff Discount (currently 6.25%) on the
unpaid remaining balance at the rate set annually by
the Board (see Program Fee Chart). In order for the
Early Payoff Discount to be applied by the
Program, the Contract may not be delinquent or
converted to a different Plan Option (see Section
11) to bring the Contract current on payments, and
all Program Fees must be paid in full.
F. Late Payments: If a Monthly Purchase
Amount is not paid by the 15th day of the month
due, the Purchaser is granted a 15-day grace period.
After the grace period (month-end), the Program
will accept the payment only if it is accompanied
by a Late Fee for Monthly Purchase (see Program
Fees). Additional late fees apply for each month the
payment is late (see Program Fee Chart). Any
amount owing that is 90 days past due will also be
subject to a Delinquency Fee (see Program Fee
Chart) not to exceed 8% applied to the delinquent
balance. The Delinquency Fee will be applied at 90
days past due and assessed until overdue payments
are received by the Program or the Contract is
Terminated. When a Contract is 180 days past due
the Program will inform the Purchaser of pending
cancellation and will Terminate the Contract in 45
days from the date of pending cancellation notice,
if no payment or appeal is received (see Section
10).
G. Overpayments by Purchaser or Gift
Contributions: If a Contract is paid-in-full and the
Program receives additional payments toward the
Contract, the Program will notify the purchaser and
return the overpayment to the Purchaser. No
Program Fees will apply to overpayments.
H. Overpayments of Employer Matching
Contributions: If Employer matching
contributions are received, in excess of the amount
owed on a Contract, the matching contribution will
be returned to the employer. The employer is
responsible for notifying the employee on whose
behalf the match was not made, as well as updating
tax credit records with the Nevada Department of
Taxation.
I. Prepayments: The Purchaser may prepay or
allow Gift contributions toward any amount due
under the Monthly Purchase option, including the
remaining balance of a Contract. The Program will
automatically apply prepayments in the following
order of priority: (1) to any outstanding Program
Fees; (2) to future Monthly Purchase Amounts in
chronological order by due date. A prepayment will
not result in a reduction in the cumulative Monthly
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Purchase Amounts due under the Contract,
including the interest component thereof. A
Purchaser may prepay the remaining balance on a
Contract in full as a Lump Sum payment (see
Section 8.E).
J. Default: The Purchaser must remit payments
pursuant to a Contract on the dates and in the
amounts set forth in the schedule for payment and
participation provided to the Purchaser in the
Contract. If the Purchaser: (a) fails to remit a
payment as required pursuant to a Contract within
30 days after the date the payment is due, the
purchaser shall be deemed in Default; (b) does not
make the required first payment for a new Contract
within 90 days after the date the payment is due, the
Program will Terminate the Contract; or (c) does
not make all past due payments (including relevant
Program Fees required pursuant to a Contract)
within 180 days after the date the Purchaser is
deemed to be in Default pursuant to this section, the
Program will inform the Purchaser of pending
cancellation and will Terminate the Contract in 45
days from the date of pending cancellation notice,
if no payment or appeal is received. The Program
will provide the Purchaser, after deducting the total
amount of any Program Fees and penalties imposed
pursuant to the Contract, a Non-qualified Refund of
the balance of the amount paid by the purchaser
pursuant to the Contract under the terms and
conditions established by the Program
Administrator.
K. Dishonored Payments: If a check, automated
withdrawal, or other payment by a Purchaser is not
honored or not paid in full by the applicable bank
or other entity (including stop payments), the
payment will be treated as a dishonored payment
and subject to a Dishonored Payment Fee (see
Program Fee Chart). If the dishonored payment
represents the initial payment, the Program may
choose not to accept the Contract. If the Contract
was previously accepted, the Program will cancel
the Contract. If the dishonored payment is a
Monthly Purchase option payment, the amounts
relating to the dishonored payment and applicable
Program Fees will remain due and subject to Late
Payment conditions (see Section 8.F).
L. Gifts: A Purchaser may authorize individuals
to make Gift Contributions toward a Contract. Gifts
will only be accepted when accompanied by a
signed Giftor Form provided by the Program. The
Gift Contribution may be applied to the current or
future Monthly Purchase payments of the Contract,
subject to the Total Contract Price. If a Gift
Contribution results in an overpayment that
exceeds the Total Contract Price, the overpayment
will be refunded to the Purchaser (see Section 8.G).
All Gift Contributions will be used to meet Contract
obligations and will be owned by, and subject to
direction solely by, the Purchaser of the Contract,
not by the Person making the Gift Contribution.
Gift Contributions may be received at any time.
M. Suspended Contract: A Purchaser may
request the monthly payments in a Monthly
Purchase option be suspended for a maximum 90-
day period without being subject to Termination
once during the term of the Contract. The Program
may approve the suspension request and will
charge a Late Fee for Monthly Purchase.
Reinstatement of the Contract will require the
payment of all past due payments, any applicable
Program Fees accrued during the 90-day period or
the Contract will be considered in default.
Contracts may only be suspended once during the
term of the Contract and a Contract may not be
suspended within one year of the stated
Matriculation of the Beneficiary.
N. Term of Payments: The term of a Monthly
Purchase option must end before the Academic
Year the Beneficiary is projected to Matriculate.
O. Due Date of Monthly Payments: Monthly
payments of a Monthly Purchase option are due on
or before the 15th day of the month in which the
obligation is due.
P. Program Fees: Fees currently assessed by the
Board:
Enrollment Fee $100
Document Replacement Fee
(coupon book, welcome pack,
or student handbook)
$7
Late Fee for Lump Sum Plans $15 for 1st
month
(then1% per
month
thereafter of
the
outstanding
balance for
additional
months
Late Fee for Monthly Plans $15 per month
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Delinquency Fee on any
payments over 90 days past due
6.25% per
annum
(applied to
overdue
amount)
Private or Out-of-state School
Fee
$25
Payment Option Change Fee $20
Plan Conversion Fee $20
Change of Purchaser Fee $20
Dishonored Payment Fee $25
Change of Beneficiary Fee $20
Termination or Cancellation Fee $100
Fraud Penalty $250
Interest on Monthly Payment
Option
6.25%
Early Pay-off Discount 6.25%
Interest on Refunds 0%
The Board in its sole discretion may change
existing Program Fees or impose future
administrative fees without notice.
9. DISTRIBUTION OF BENEFITS
A. Distribution of Contract Benefits: Contract
Benefits distributed from a Contract are payments
made only for the Registration Fees (a.k.a. in-state
tuition) for Semester based Credit Hours as
determined in a manner prescribed by the Board
and have no monetary value to the Purchaser.
Additional fees, surcharges, Mandatory Fees,
tuition charges or additional costs charged by an
Eligible Educational Institution including, but not
limited to room or board, supplies, or any
application, entrance, parking, technology, athletic,
studio, fees or fines are not eligible for payment
under the Program or distribution under any
Contract. Distribution to Eligible Educational
Institutions requested in any form other than
Semester Credit Hours (including Quarterly
Payment and Clock Hour calculations) will be
converted by the Program using a formula
prescribed by the Board with guidelines from the
Free Application for Federal Student Aid
(“FAFSA”) for the current Academic Year.
B. Notification of Intent to Enroll: A Beneficiary
who intends to begin using Contract Benefits at the
start of an Academic Year must notify the Program
by returning the Intent to Enroll Form signed by
both the Purchaser and the Beneficiary 60 days
prior to the start of the Academic Year.
C. Payment to Eligible Educational
Institutions: Any distribution of Contract Benefits
by the Program on behalf of a Beneficiary will be
paid directly to the Eligible Educational Institution
to which the Beneficiary has submitted an Intent to
Enroll Form.
D. Conditions of Payments to Eligible
Educational Institutions: A distribution of
Contract Benefits will be made only after the
Program determines:
1. The chosen institution is an Eligible
Educational Institution.
2. The requested Contract Benefits
distribution has been converted to Credit Hours,
if the request is from an institution based on
Quarterly Payments or Clock Hours.
3. The Program has established third-party
billing for each out-of-state and private Eligible
Educational Institution in order to distribute
Contract Benefits to the chosen institution and
the required Private or Out-of-State Processing
Fee has been paid (See Program Fee Chart). If
the Eligible Educational Institution will not
accept third-party billing from the Program, the
Beneficiary must submit a Request for Tuition
Payment to an Eligible Private or Out-of-State
Institution Form to the Program along with
proof of enrollment in the form of a letter,
transcript, or enrollment certificate including
the Semester Credit Hours Contract Benefits
requested to be distributed from the Eligible
Educational Institution acceptable to the
Program and the Program will then issue
payment directly to the Eligible Educational
Institution. The Beneficiary is responsible for
any reimbursement from the Eligible
Educational Institution for any direct payments
made to the Eligible Educational Institution.
4. Should a Prepaid Tuition Contract have
Credit Hours remaining after a qualified
beneficiary has graduated with an
undergraduate degree, those Credit Hours may
be applied toward tuition for graduate-level
studies at an Eligible Educational Institution at
the undergraduate rate provided the remaining
Credit Hours are used prior to the original
Contract Expiration Date. Payments authorized
toward graduate-level work may not exceed the
amount that would have been paid towards
undergraduate credit hours and may not exceed
the usage time limit of the original Contract.
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Beneficiaries must submit their request for
graduate tuition payment on the Graduate
School Provision form provided by the
Program and may be asked to provide proof of
undergraduate degree attainment.
E. Deferment of Benefits: A Beneficiary who
does not intend to begin using Contract Benefits
during the stated Benefit Use Year must submit a
Deferment of Benefits Form signed by the
Purchaser which indicates reason for deferment.
All Deferment of Benefits forms must be submitted
at least 60 days prior to the start of an Academic
Year.
F. Reinstatement of Contract Benefits:
Requests to reinstate the use of deferred Contract
Benefits should be submitted on an Intent to Enroll
Form at least 60 days prior to the start of the
academic Semester in which the Beneficiary will
commence use of Contract Benefits.
G. Term of Contract Benefit Use: Distributions
will not be made more than two years before the
date of the specified Benefit Use Year unless the
Beneficiary is a senior in High School and enrolls
in an Eligible Educational Institution before that
date and provides proper documentation of
enrollment acceptable to the Program, and an Intent
to Enroll Form to the Program. Commencement of
distributions will not be made later than six years
from the original Benefit Use Year excluding any
period during which the Beneficiary was (1) on
active duty in the Armed Services of the United
States; or (2) actively serving or participating in a
charitable, religious, or public service assignment
or mission after the expected date of Matriculation.
Documentation evidencing the acceptable service
must be provided to the Program Administrator for
extension of the term of the Contract. In addition,
if Beneficiary has not applied for and received an
extension of benefit usage as outlined in (1) or (2)
above, the Contract benefits may not be used past 6
years post high school graduation.
H. Forfeiture of Contract: The Program may
Terminate the Contract if there is no activity on the
Contract in the 6 years after the Beneficiary
graduates from High School and no notification of
intended usage or request for extension to the term
of the Contract has been received by the Program.
Written notification of the forfeiture of Contract
will be sent by the Program to the Purchaser,
Beneficiary, and any Purchaser’s Legal Successor.
Parties will have 60 days to respond from the date
of the mailing. Failure to respond within the time
given will result in the rights to distribution of
Contract Benefits being forfeited and the
Contract Terminated. The balance of payments
made, minus any Program Fees will be refunded to
the Purchaser.
I. Tax Implications: The Program is not
responsible for any taxes imposed as a result of (1)
the Contract, (2) any contributions made to the
Contract, or (3) Contract Benefit distributions made
from the Contract. Purchaser and Beneficiaries are
urged to consult their own tax advisor.
10. TERMINATION AND REFUNDS
A. General Rules: All Terminations, Qualified,
and Non-qualified Refunds will be made in
accordance with State law, Program policies and
rules, and IRS Code Section 529, including:
1. Qualified Refunds will be made by the
Program only for the amount held in the
Program for a minimum of three years or such
shorter time period as may be imposed by state
or federal laws, regulations or policies or
approved by the Program Administrator. This
three-year time limit does not apply to Non-
qualified Refunds.
2. The Program may charge Program Fees
which may include penalties in connection with
a Qualified or Non-qualified Refund (see
Program Fee Chart). The Program will deduct
all such Program Fees prior to a Qualified or
Non-qualified Refund being issued.
3. At the direction of the Purchaser, the
Program will make Qualified or Non-qualified
Refunds to the purchaser, or transfer remaining
balances to another Nevada Prepaid Tuition
Contract or an alternate 529 Plan account.
4. The Board will set an annual rate of interest
on Qualified and Non-qualifed Refunds (see
Program Fee Chart).
5. The Board will provide a Qualified or Non-
qualified Refund only after deducting Contract
Benefit payments the Trust Fund made on
behalf of the Beneficiary. A Qualified or Non-
qualified Refund amount shall not exceed the
total amount paid by the Purchaser pursuant to
the Contract, with the interest on the adjusted
amount (Qualified Refunds only) in accordance
with the applicable rates established by the
Board in the year in which the request is made.
(see Program Fee Chart). A Non-qualified
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Refund amount shall not exceed the total
amount paid by the Purchaser.
6. Qualified and Non-qualified Refunds and
Termination disbursements will be made as
soon as practicable following the end of the
calendar month of the request to a Purchaser
who has agreed to accept in full satisfaction
a Qualified Refund, Non-qualified Refund, or
Termination claim. The amount will not exceed
the total amount paid by the Purchaser pursuant
to the Contract as of the last business day of the
calendar month.
7. Qualified and Non-qualified Refund
amounts may be set by the Board at a rate lower
than 100% of the Total Contract Price if the
Board, in its sole judgment, determines that any
such refunds would jeopardize the actuarial
soundness of the Fund. If the Board institutes
such a policy, a purchaser will have the option
to (1) accept an amount determined by the
Board, which may be less than the cumulative
Monthly Purchase Amount or Lump Sum paid
by the Purchaser pursuant to the Contract; or (2)
choose to wait until the market value of the
Trust Fund is sufficient, in the sole judgment of
the Board to provide a Qualified or Non-
qualified Refund equal to 100% of the
cumulative Monthly Purchase Amount/Lump
Sum made by the Purchaser. No representation
is made regarding the timing when the market
value of the Trust Fund will achieve a level of
adequacy to provide 100% refund values.
8. Qualified and Non-qualified Refund and
Termination requests must be submitted on the
Refund Request Form provided by the
Program, be notarized, and a Program Fee will
be assessed for Non-qualified Refunds (see
Program Fee Chart).
B. Termination:
1. Voluntary Termination by Purchaser:
The Contract may be terminated upon written
request, on the prescribed Refund Request
Form, to the Program by the Purchaser (or, in
the case of death or Disability of the Purchaser,
the Purchaser’s Legal Successor or estate
appointee with acceptable documentation
provided to the Program). A Termination Fee
will be charged (see Program Fee Chart). Once
a Contract is requested to be terminated and
action has been taken to terminate the Contract,
it may not be reinstated for any reason.
2. Death or Disability: Upon submittal of a
Refund Request Form and acceptable
documentation of the death or Disability, the
Program will issue a Qualified Refund of the
cumulative Monthly Purchase Amount or
Lump Sum paid into the Contract, less any
Program fees and contract benefits distributed
on the Beneficiary’s behalf. Interest will be
applied to the balance in accordance with the
applicable rates established by the Board in the
year in which the refund request is made (see
Program Fee Chart). Under conditions
established in Section 6.C, a new qualifying
Beneficiary may be named in substitution of a
Qualified refund.
3. Scholarship: Qualified Refunds for full
scholarships that make the Contract Benefits of
a Prepaid Tuition Contract unusable for
undergraduate studies must be requested in
writing. Documentation must be provided by
the educational institution or authority issuing
the scholarship and the documentation must be
acceptable to the Program Administrator. If
acceptable documentation is provided within
the required timeframe and approved by the
Program Administrator, the Program will
amend the Contract to change the identity of the
Beneficiary of the Contract under the
conditions provided in Section 6.B or 6.C, or
the Purchaser may choose to terminate the
Contract pursuant to Section 10.B and receive a
Qualified Refund. The Program may waive
Program Cancellation Fees. The Beneficiary
may also contact the Prepaid Tuition Program
office for detailed information on program rules
of using undergraduate program hours for
graduate level coursework before the Contract
is cancelled.
4. Non-payment: The Program will terminate
the Contract and no Qualified or Non-qualified
Refund will be issued if the Purchaser fails to
make the necessary payments and the
outstanding Program Fees exceed the Monthly
Purchase payments and Program Fees already
paid.
5. Forfeiture or Term: The Contract will be
terminated if the Contract Benefits are forfeited
because the term of Contract Benefit use has
expired or the age of the Beneficiary now
exceeds the Program maximum (see Section
9.G). The Program will pay the Purchaser a
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Non-qualified Refund to the extent the Lump
Sum or cumulative Monthly Purchase amount
paid into the Contract exceeds cumulative
Contract Benefits paid out (if any) under the
Contract. A Termination Fee will apply.
6. Fraud: The Program will terminate the
Contract and issue a Non-qualified Refund to
the Purchaser made up of the Lump Sum or
cumulative Monthly Purchase amount paid by
the Purchaser, less a Termination Fee, Fraud
Penalty and any cumulative Education Benefits
paid out, if any of the following have been
fraudulently stated on an enrollment form or
otherwise:
a. The age of the Beneficiary;
b. The grade of the Beneficiary;
c. The Academic Year in which the
Beneficiary (stated benefit use year)
is to receive Educational Benefits
under the Contract;
d. The Social Security Number or
Taxpayer Identification Number of
the Purchaser or Beneficiary is
invalid;
e. The residency of the Purchaser, or
the Purchaser’s academic
background, at the time the Open
Enrollment Form is submitted to the
Program; or
f. Other matters as determined by the
Program Administrator.
7. Actuarial Unsoundness: An actuarial
valuation study of the Program shall be made
annually by a certified actuary. If this actuary
determines that the Program does not have
sufficient funds to ensure the actuarial
soundness of the Program and the Board
reasonably determines there will be an
insufficient number of new Contracts in the
future with reasonably predictable terms to
ensure the actuarial soundness of the Program,
the Program may provide Qualified and Non-
qualified Refunds at a reduced rate, may pay
Educational Benefits at a reduced rate, or may
Terminate all Contracts and prorate the assets
of Program among the existing Contracts. If
the Trust Fund is liquidated, the amount to be
returned is uncertain and could be less than the
Purchaser’s contributions. Upon termination of
the Program pursuant to this subsection, the
Program may stop providing Contract Benefits
from the Program and will pay Non-qualified
Refunds determined as follows:
a. The Program will calculate the
Contract’s “asset value”, which is the
Lump Sum or cumulative Monthly
Purchase Amount paid by the
Purchaser, less any Contract Benefits or
Qualified or Non-qualified Refunds
paid by the Program, less any Program
Fees due and payable to the Program; or
b. A percentage of the amount of the total
Trust Fund assets after liquidating all of
the Trust Fund investments. The
percentage is determined by dividing
the asset value of a given Contract by
the asset value of all Program Contracts
combined. This Non-qualified Refund
shall be applied, at the option of each
Purchaser, either toward the purposes of
this Contract on behalf of the
Beneficiary or paid to the Purchaser. 8. Cancellation by the Program for Failure
to Provide Information: The Program may
cancel a Contract immediately and charge a
Termination Fee, if:
a. The Purchaser fails to provide within 90
days of a written request from the Board any
reasonable information relating to a
Contract.
b. The Purchaser fails to provide a valid
Social Security Number or Taxpayer
Identification Number for the Beneficiary
within six months after the date a Contract
is accepted.
c. The initial payment in either a Lump
Sum or Monthly Purchase option is
dishonored.
d. The Purchaser fails to comply with the
terms of the Contract (other than failure to
make a Monthly Purchase Amount payment
by the monthly due date) and does not
correct such failure within the time period
provided in this Master Agreement.
9. Three Day Cancellation: The Purchaser
may cancel his/her Open Enrollment
application within three business days after the
Program receives the Open Enrollment Form.
The Program will return all payments to the
Purchaser, including the Enrollment Fee. No
Termination Fee will be charged.
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C. Qualified and Non-qualified Refunds: The
Program will calculate the amount of any Qualified
or Non-qualified Refund pursuant to the terms of
this Master Agreement. The Qualified or Non-
qualified Refund amount paid is based on the Lump
Sum or Monthly Purchase Amount paid by the
Purchaser on the Contract to date less any Program
Fees due and payable, and any Educational Benefits
already paid on behalf of the Beneficiary:
1. Non-Qualified Refund Due to
Bankruptcy: If a Non-qualified Refund is
requested by the Purchaser due to bankruptcy,
the Purchaser must provide the Program with a
copy of the bankruptcy filing. The Contract will
be valued as provided in Section 10.B.7 and the
value will be equal to the calculated asset value
of that provision.
2. Rollover of Qualified and Non-qualified
Refund: The Purchaser may choose to have
any Qualified or Non-qualified Refund
administered as a rollover to a qualified 529
Plan. Rollovers between 529 Plans for the same
Beneficiary or a new Beneficiary must provide
acceptable documentation as detailed in Section
5.C. The Qualified or Non-qualified Refund
must be re-invested within 60 days and the
Beneficiary of the accepting plan must be an
eligible Family Member. Rollover requests
must be submitted on a completed Rollover
Request Form provided by the Program.
Requests that do not meet these requirements
will be considered under Section 10.B
Terminations.
3. Tax Implications: The Program shall not
be responsible for any state or federal taxes
imposed on the Purchaser, the Beneficiary, or
otherwise in connection with any Qualified or
Non-qualified Refund, including the 10 percent
penalty tax payable to the IRS in connection
with a Non-qualified Refund. The Program
sends a tax document to recipients of Qualified
and Non-qualified Refunds and any
distributions made during the calendar year as
required by the IRS. The tax document details
the gross distribution, gain (or loss), and the
basis of all distributions.
D. Appeals: Appeals of Cancellation,
Terminations, and Qualified and Non-qualified
Refunds must be made in writing to the Program
Administrator by a Purchaser within 30 days of a
notice by the Program to cancel or Terminate a
Contract. Appeals of cancellations, Terminations,
assessment of Program Fees and special petitions
for conversions and waivers will be decided by the
Program Administrator. An aggrieved party may
appeal the decision of the Program Administrator
to the Board by the filing of a written request within
30 days of the notice of denial of appeal by the
Program. The Board will conduct a review of the
merits of the appeal and render final decision at the
Board’s next regularly scheduled meeting.
11. CONTRACT AMENDMENT AND
CONVERSION
A. Contract Amendments and Plan
Conversion: The Purchaser may request the
conversion of a Contract either for method of
payment or for selection of Plan. The Purchaser
must submit the request on a Contract Conversion
Form and all required Program Fees and any
additional sum the Program determines in its sole
judgment to be necessary as a result of the
conversion or amendment in the interest of
maintaining the Actuarial Soundness of the Trust
Fund. The Contract in question must meet the
following criteria:
1. No Contract Benefits have been disbursed
pursuant to the Contract;
2. The Purchaser is not in default on the
Contract;
3. The Contract has not otherwise been
Terminated; and
4. The Plan requested must have been
available for the Open Enrollment year the
Contract was purchased.
B. Fees and Costs: Amendments to the method of
payment (Section 7) and conversion from one
Credit Hour Plan (Section 3) to another will likely
have Contract price implications to the Purchaser.
The Program will determine the change in Total
Contract Price, change in monthly payments
(where applicable), the proposed
amendment/conversion will impose, and provide
new Contract documents to the Purchaser detailing
the changes prior to the due date of the first new
payment. The Purchaser may choose to pay any
difference in plan cost either in a Lump Sum or
through an amendment in the remaining Monthly
Purchase Amount payments. Applicable Program
Fees and interest will apply.
C. Non-qualified Refunds Due to Conversion:
Any Non-qualified Refund amount due to
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conversion to a lower cost Plan will be made by the
Program as soon as practicable following the end of
the calendar month.
12. OPERATION OF THE FUND
A. Higher Education Prepaid Tuition Trust
Fund: Amounts received from Contracts under the
Nevada Prepaid Tuition Program are commingled
and held by the Board of Trustees of the College
Savings Plans of Nevada and/or invested in the
Higher Education Prepaid Tuition Trust Fund. The
Trust Fund consists of payments received pursuant
to a Contract; any bequest, endowment, or grant
funds from the federal government; and any other
public or private sources of money. The Program
will not separately invest amounts paid under an
individual Contract, but will maintain records
showing the Purchaser; the Beneficiary; the
amounts paid; the type of Plan purchased; and any
distributions of Contract Benefits, Program Fees
(already paid, as well as due and payable), and
Qualified and Non-qualified Refunds (to date or
pending) in connection with the Contract.
B. Program Administrator: As the
Administrator of the Program and Trust Fund, the
State Treasurer’s Office maintains the financial
records and any associated accounts of the Trust
Fund.
C. Investment and Use: The Program is
permitted to invest amounts paid under the
Contracts in accordance with State law and any
Investment Policies of the Board. The current
Investment Policy can be found online at
www.NVPrepaid.gov, under “More Info/
Enrollment”.on the website maintained by the
Office of the State Treasurer.
D. Investment Not Subject to Direction:
Contract Purchasers and Beneficiaries may not
direct the investment of amounts paid to or
otherwise held by the Program in connection with
any Contract.
E. Use: The Program may apply amounts received
under the Contracts on a commingled basis to pay
for or reimburse the State Treasurer’s Office for
administrative expenses in connection with the
Program.
F. Reserve: As part of the Contract pricing, the
Program will accumulate amounts as a stabilization
reserve available to pay immediate obligations of
the Program if the Program does not otherwise have
revenues at any particular point in time sufficient to
pay such obligations.
G. Annual Analysis: In accordance with State
law, the Program undertakes an annual valuation
study using a certified actuary to determine the
actuarial soundness of the Program and conducts an
annual audit using a certified public accounting
firm. The results of the actuarial valuation are used
to determine the price of future Contracts and
stabilization reserve embedded in the Contract
pricing. The reports are available to the public at:
on the website maintained by the Office of the State
Treasurer.www.NVPrepaid.gov, under “More Info
/ Enrollment”, or upon request.
H. Fund Termination: If the Board determines
(in its sole judgment) that the Program is not
financially viable, or for any other reason
determines that the Program shall be terminated,
the Board will cease to accept any further Contracts
and notify all current Contract Purchasers of the
plan for final disbursements (as a Non-qualified
Refund to the Purchaser or the Beneficiary) from
the Trust Fund as outlined in Section 10.B.7.
I. No State Guarantee: The Nevada Prepaid
Tuition Program is not guaranteed by the State
of Nevada and is not an obligation of the
taxpayers of the State. The Contract is not an
obligation of the State of Nevada and neither the
full faith and credit nor taxing power of the
State is pledged directly or indirectly or
contingently, morally or otherwise, to the
payment of Contract Benefits or a Qualified or
Non-qualified Refund from the Contract. The
Board cannot directly or indirectly or
contingently obligate, morally or otherwise, the
State to levy or pledge any form of taxation
whatsoever, or to make any appropriation for
the payment of the Contract or Qualified or
Non-qualified Refund.
13. MASTER AGREEMENT AMENDMENTS
A. Changes in Contract Prices: Prices are based
in large part on actuarial assumptions established
on an annual basis and such prices may be changed
in the future annually by the Board, at its sole
discretion.
B. Entire Agreement: This Master Agreement is
considered a part of all Contracts and represents the
entire understanding of the parties.
233
18
C. Invalid Provisions: If any portion of this
Master Agreement or Contract shall be found to be
invalid or unenforceable by any court, that portion
shall be severed from this Master Agreement and/or
Contract and the remainder will remain in full
force.
D. Captions: The captions in this Master
Agreement and any Contracts are for convenience
only and in no way limit the intent of any provision
of this Master Agreement or any Contracts.
E. Amendment to Contracts and Master
Agreement: The Board reserves the right to amend
any Contract to the extent required by law, or to the
extent necessary or desirable in order to preserve
favorable tax treatment under federal and state law,
or for reasons in the interest of the Purchaser and
the Program to make technical corrections. The
Board may in future years unilaterally amend this
Master Agreement or individual Contracts if
necessary to make reasonable changes including,
but not limited to, administrative procedures,
Program Fees (as listed in Section 8. P.), and
methods of calculation of Contract prices. Any such
changes shall be implemented across all Contracts
affected by the amendment. Purchasers choosing
not to be bound by any such Contract changes may
elect to terminate the Contract and receive a Non-
qualified Refund, which may include Program Fees
imposed by the Board. Master Agreements are
published on the Nevada Prepaid Tuition webpage
site at on the website maintained by the Office of
the State Treasurer.www.NVPrepaid.gov.
F.E. 14. GENERAL TERMS
A. Judgment or Attachment: It is the intent of
the parties that the right to Contract Benefits or
Qualified and Non-qualified Refunds shall not be
subject to any attachment, garnishment, seizure, or
attachment by creditors of the Purchaser or
Beneficiary.
B. Tax Considerations: The Contract is offered
pursuant to Nevada Revised Statutes (“NRS”)
353B and the Nevada Administrative Code
(“NAC”) 353B promulgated under these statutes.
The Contract is intended to qualify for the tax
benefits described and required in IRS Code
Section 529. The Program is not liable for the effect
of any state or federal taxes on any transactions or
activity in conjunction with the Contract. Potential
Purchasers are strongly advised to consult their
own tax advisor.
C. Arbitration: Any controversy or claim arising
out of or relating to a Program Contract and this
Master Agreement, or breach, Termination, or
questions relating to the validity thereof, shall be
settled by arbitration administered by the American
Arbitration Association (“AAA”) in accordance
with its Commercial Arbitration Rules. Judgment
on any award rendered by the arbitrator may be
entered in any court having jurisdiction thereof.
D. Attorney Fees: Except as otherwise provided
by law or the Contract and this Master Agreement,
the rights and remedies of the parties shall not be
exclusive and are in addition to any other rights and
remedies provided by law or equity, including,
without limitation, actual damages, and the
prevailing party’s reasonable attorneys’ fees and
costs. It is specifically agreed that reasonable
attorneys’ fees shall be not more than $425 per
hour.
E. Liability Limitations: The State and the Board
will not waive and intends to assert available NRS
Chapter 41 liability limitations in all cases.
Contract liability of both parties shall not be subject
to punitive damages. Damages for any breach shall
never exceed the amount of accrued financial
obligations to either party under this Contract at the
time of breach.
F. Prevention of Performance of Contract:
Neither the State nor the Board nor the Program
Administrator shall be deemed to be in violation of
any Contract or this Master Agreement if prevented
from performing any of their obligations hereunder
due to strikes, failure of public transportation, civil
or military authority, act of public enemy,
accidents, fires, explosions, or acts of God,
including, without limitation, earthquakes, floods,
winds, or storms. In such an event, the intervening
cause must not be through the fault of the party
asserting such an excuse, and the excused party is
obligated to promptly perform in accordance with
the terms of the Contract after the intervening cause
ceases.
G. Failure to Declare Breach: Failure to declare
a breach or the actual waiver of any particular
breach of any Contract or its material or non-
material terms by either party shall not operate as a
waiver by such party of any of its rights or remedies
as to any other breach.
H. Sale of Contract: A Contract may not be sold
for any reason. A Contract may not be used as
security for any loan.
234
19
I. Impact on Financial Aid: The Program cannot
determine and makes no representation as to what
effect, if any, a Contract may have on the current or
future state, federal, institutional, or private
financial aid eligibility of any student Beneficiary.
J. Student Eligibility: Purchase of a Contract or
participation in the Program, including being
named as a Beneficiary under a Contract, does not
constitute a guarantee or a promise by the Program
or the State that a Beneficiary will be admitted to
any or a particular Eligible Educational Institution,
or be allowed to continue to attend an Eligible
Educational Institution after having been admitted,
or will graduate from an Eligible Educational
Institution.
K. Nevada Law: The Contract is to be interpreted
under the laws of the State of Nevada. All parties
consent to the jurisdiction of Nevada’s district
courts for enforcement of the Contract and this
Master Agreement. The provisions of NRS 353B
and NAC 353B, as amended from time to time, are
incorporated into and govern the interpretation and
performance of this Master Agreement and
individual Contracts.
L. Notices to Program: Notices to the Program
must be sent by mail to:
Nevada Prepaid Tuition
Office of the State Treasurer
555 East Washington Avenue, Suite 5200
Las Vegas, NV 89101
M. Records: Records for the Program shall be
subject to the public disclosure laws of the State.
Individual Contract records shall be subject to the
privacy policy of the Board.
N. Forms: Electronic forms and signatures may be
accepted at the discretion of the Program
Administrator. All forms are available on on the
website maintained by the Office of the State
Treasurer.the Nevada State Treasurer’s website
www.NVPrepaid.gov or by contacting the Nevada
Prepaid Tuition Office:
Nevada Prepaid Tuition
Office of the State Treasurer
555 E. Washington Avenue, Suite 5200
Las Vegas, NV 89101
Phone (888)477-2667(toll free) or
(702) 486-2025
Fax (702) 486-3246
235
20
Type of Fee
Non-refundable Enrollment Fee
Amount
$100
Document Replacement Fee (for example, a payment coupon book)
$ 7
Late Fee for Lump Sum Plans $ 15 for 1st
month (plus 1% per
month of outstanding balance for
additional months)
Late Fee for Monthly Plans
$ 15 per month
Delinquency Fee on any payments over 90 days past due
6.25% per annum
(applied to overdue amount) Out-of-State School Processing Fee $ 25
Payment Option Change Fee $ 20
Plan Conversion Fee $ 20
Change of Purchaser Fee $ 20
Dishonored Payment Fee $ 25
Change of Beneficiary Fee $ 20
Contract Termination Fee $100
Fraud Penalty $250
Interest on Monthly Payment Option 6.25%
Early Pay-off Discount 6.25%
Interest on Refunds 0%
Program Fee Chart
NOTE: The Board, in its sole discretion, may change existing Program Fees or impose
future administrative fees without notice. Program Fees are always published in the
Program’s Master Agreement located on the website maintained by the Office of the
State Treasurer.our website at: www.NVprepaid.gov.
236
237
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 13
September 17, 2020
Item: Board will receive an update by Victory Capital
Management following the one-year acquisition of the USAA 529 Plan; the topics covered will include:
• Update on transition in conjunction with Ascensus
• Marketing Overview • Investment Overview
Summary: CEO Dave Brown and other Victory Capital Management staff will provide the Board with an update on the USAA 529 plan following the acquisition over one-year ago. The presentation will focus on the transitional services and digital update, and updates on plan metrics, marketing, investments. Fiscal Impact: None This is an information item only and no action is required.
238
USAA 529 College Savings Plan® Update
College Savings Board of Trustees
September 17, 2020
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Agenda
2Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
Victory Capital Overview & Firm Update
Transition Services & Digital Update
529 Plan & Marketing Update
Q2 2020 Investment Update
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U.S. Equity
Global/Non U.S. Equity
Solutions
Fixed Income
Money Market
$35.6B
1All data as of June 30, 2020. Allocations listed above may not add up due to rounding. For more information, please refer to the firm’s latest quarter-end press
release at https://ir.vcm.com/news/news-details/2020/Victory-Capital-Reports-June-2020-Assets-Under-Management/default.aspx.
Victory Capital
Overview of Victory Capital
TOTAL
AUM:
$129.1B1
$3.7B
$49.1B
$11.1B$29.3B
3
We have built our firm to deliver for our clients:
➢ Our next-generation business model, which
combines boutique investment qualities with
the benefits of a fully integrated, centralized
operating platform, enables our investment
professionals to fully focus on client portfolios
➢ We manage $129.1B in assets, and are well-
positioned to reinvest in cutting-edge services
and systems while remaining highly attentive
to each client
➢ Our investment professionals and employees
invest personally in our strategies, as well as
in our firm, which ensures that our interests
are aligned with those of our clients
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
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Our Integrated Model
USAA and the USAA logo are registered trademarks of United Services Automobile Association and are being used by Victory Capital and its affiliates under license.
4
As of June 30, 2020
in assets undermanagement
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Victory Capital Update
5
Commitments to Corporate Social Responsibility (CSR) and Environmental, Social &
Governance (ESG) Considerations
• We recognize the importance of ESG issues in investment, risk management, and due diligence
processes and are a signatory of the UN-supported Principles for Responsible Investment (PRI).
• Early in 2020, we hired a Director of Responsible Investing to establish a robust ESG framework
across Victory Capital’s investment franchises and solutions platform and to lead our CSR efforts.
• CEO Dave Brown joined more than 1,000 CEOs pledging to take action to advance diversity and
inclusion in the workplace through the CEO Action for Diversity & Inclusion™ coalition.
• Victory Capital has a formal Diversity, Inclusion, Cohesion & Engagement (DICE) Committee.
COVID-19
• In these unprecedented times, our priority remains to serve our clients and investors, including our
USAA Mutual Funds® and USAA 529 College Savings Plan® members and the military community.
• We are also focused on ensuring the health, safety, and well-being our of employees.
Technology Investment
• Enhanced user experience through our new digital platform to be launched later this year.
• Transition to new IVR system
• Provides an intuitive interface for the user
• Ability to deploy resources in response to unexpected call volumes by skillset
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Transition Services & Digital Update
6
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USAA® Asset Management Company
Acquisition Integration Update
7
Closing
Integration
Growth
Transitioned to VCM platform
Reopened Contact Center
Synergies Accelerated
Fulfilled
Service Levels
Enhance
Technology
Accelerate Direct
Marketing CampaignGenesys
Call System
Digital Platform
(Second half of 2020)
Gained Outside
Shelf Space
Pre-Closing
Preparations to Separate Business
Synergies Accomplished
September
2020
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USAA® Asset Management Company
Acquisition Integration Update
8
• 79,500 new account (mutual fund & 529) registrations since July 2019 close
• ~30% increase in 1H 2020 vs 2H 2019
• ~28% of new mutual fund accounts electing Automatic Investment Plans (AIPs)
• 50%+ of new USAA 529 College Savings Plans® include Automatic Investment
Plans
• Exclusive provider of USAA 529 College Savings Plan®
• Since close of acquisition and YTD 2020
➢ USAA 529 College Savings Plan® AUM is net flow positive
➢ Net new USAA 529 College Savings Plan® accounts are up
• ~90% of applications completed exclusively online
• Ramping up marketing initiatives
• Multi-channel 2H 2020 media campaign
➢ Marketing in military-focused geographies
• Paid Media
All data as of June 30, 2020.
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Overall Project Milestones Remaining
9
Q4: Website Go Live
Pre-registration email distributed
Continued User Acceptance Testing
Ascensus Requirement Clarification/Design
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Welcome and Navigation Support
10Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
Screenshots for illustrative purposes only, subject to change.
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Enhanced User Experience
11
• Designed specifically to serve the needs of 529 account holders
• Built to support investing needs
College Savings Calculator &
PlanningResources
• Easy access to help & support
• Personalized member dashboard
Enhanced User
Experience
• Educational resources and content to help investors prepare for the future
• Members can attain a better understanding of financial concepts
Financial Readiness
Commitment
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Dashboard/Home Page
12Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
For illustrative purposes only, not indicative of any actual product, client or account.
Nothing on this page should be constructed as a recommendation of any
investment, investment product or strategy
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Access to Advice & Support
13
The “help” question button is present on every page and makes it easy to
chat, see phone wait times, or enable co-browsing with a representative.
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
Screenshots for illustrative purposes only, subject to change.
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New Digital Page: 529 Savings Plan Homepage
14Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
Screenshots for illustrative purposes only, subject to change.
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New Digital Page: 529 Savings Plan Advantages
15Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
Screenshots for illustrative purposes only, subject to change.
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New Digital Page: USAA® 529 Distinguished Valor
Matching Grant Program
16Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
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College Savings Tool
17Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
For illustrative purposes only, not indicative of any actual product, client or account.
Nothing on this page should be constructed as a recommendation of any
investment, investment product or strategy
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529 Plan Mobile App Functionality & Milestones
18
Much of the functionality in the new digital experience will be available in
the mobile app. Some of those functions include:
➢ Sign up and open a new account
➢ Manage accounts
➢ Recover online ID
➢ Access resources and tools
➢ View account balances
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529 Plan & Marketing Update
19
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USAA 529 College Savings Plan® –
Results as of June 30, 2020
20
July 1, 2019 June 30, 2020
529 AUM $4.1B $4.3B
Funded Accounts 299,013 303,932
New Accounts N/A 27,422
Ugift Contributions N/A $14.8M
Summary:
➢ Net accounts, AUM and net outflow are all positive YTD.
➢ Withdrawals are lower YoY.
➢ Withdrawals by beneficiary age indicate members are using assets
for education vs early withdrawal.
➢ 50%+ of new USAA 529 College Savings Plans include Automatic
Investment Plans
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USAA 529 College Savings Plan® – Overall Growth
21
➢ Total overall plan AUM
has grown from
$670M in 2009 to
$4.5B as of June 30,
2020
➢ Average YOY overall
growth is 21%
➢ Total funded accounts
has grown from
92,741 in 2009 to
303,932 as of June
30, 2020Total AUM
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USAA 529 College Savings Plan® – Nevada Growth
22
➢ Total Nevada AUM
has grown from $7M
to $47M
➢ Average YOY overall
growth is 21%,
consistent with overall
plan growth
➢ Total funded accounts
has grown from 926 in
2009 to 3,786 as of
June 30, 2020
$7.1M$9.9M
$11.7M
$14.8M
$19.6M
$23.4M$25.7M
$30.3M
$37.1M$37.9M
$42.6M
$46.9M
Total AUM
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2H2020 529 Marketing Objectives & Tactics
23
Serve the educational needs of the military community
Objectives
• Continue to drive awareness of the USAA 529 College Savings Plan® in Nevada and nationally.
• Communicate Victory Capital’s value proposition for members with a focus on the 529 plan and Distinguished Valor Matching Grant Program.
• Support financial readiness for the military community
Tactics
• Launch new paid media campaign
• Focus on member awareness to drive traffic to 529 pages in partnership with USAA®
• Create back to school and holiday gifting campaign focused on supporting higher education
• Generate awareness of 529 through social B2C Channels
• Provide college planning guidance
• Deliver enhanced digital user experience through new web platform scheduled to launch later this year
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Financial Readiness
24
➢ Victory Capital made a donation on 529 Day (May
29th) to MCEC to support the military community
and drive engagement among 529 plan holders
➢ Exploring opportunities to partner with MCEC to
support financial readiness
A key component of our financial readiness program
will be the development of a series of compelling
video case studies. These will feature members of
the military community sharing their financially based
journeys, from transitioning from active military duty
to civilian life to tackling major financial goals.
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25
Paid Media Plan
Goal: strategically build awareness of USAA Mutual
Funds® and the USAA 529 College Savings Plan® among
members and the military community.
➢ Target markets include San Antonio, San Diego,
Virginia Beach
➢ Mixed media includes radio, social, digital (PPC)
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USAA® Q2 Email Metrics
26
USAA Marketing Activities
April 2020 Results
Email Opens Open
Rate
Clicks Click
Rate
529 74k 19.9% 1.1k 0.31%
529
Nevada
0.1k 51.4% 5 2.34%
May 2020 Results
Email Opens Open
Rate
Clicks Click
Rate
529 96k 22.1 1.5 0.34
529
Nevada
39 26.9% 3 2.07
June 2020 Results
Email Opens Open
Rate
Clicks Click
Rate
529 438k 15.2% 2k 0.4%
529
Nevada
27 18.5% 5 3.4%
Summary:
➢ Targeted message to the right audience
at the right time continues to drive high
open rates for Nevada emails.
➢ Messages encouraged automatic
investment plans across new accounts
and periodic reviews to increase
contribution amounts.
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Victory Capital Q2 Email Metrics
27
Victory Capital Marketing Activities
May 2020 Results
Email Delivered Open
Rate
Click
Rate
529 Day –
General
Audience
131,656 28.3% 0.3%
529 Day _
AIP
100,253 51% 0.8%
529 Day –
No AIP
71,584 33.8% 0.8%
Summary:
➢ Successful subject lines led to above
industry standard open rates for 529
emails.
➢ Optimize strong open rates to drive
increased click rates.
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Victory Capital Social Media
28
Social Media Results
for 529 Day
Platform Engagement
Rate
post
4.7%
video
9.9%
LinkedIn 8.18%
Summary:
➢ Cross promotion with Military Child Education
Coalition led to a strong social media
presence.
➢ Video across multiple platforms drives high
engagement.
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2020 Marketing Themes
29
Q3 • Back to
School Campaign
Q4 • Gift of
Education
• Planning ahead
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Q2 2020 Investment Plan
30
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Portfolio Performance as of June 30, 2020
Portfolio performance information represents past performance and is no guarantee of future results. Updated Portfolio performance information is available online at
www.usaa. com/529 or by calling 800-292-8825. For more information, including performance information, on the underlying USAA mutual funds in which the Portfolios invest,
please visit www.usaa. com/529 or call USAA and obtain a free prospectus, annual, or semiannual report for any USAA mutual fund used in connection with the Plan. Since
the Plan’s inception date, the Underlying Funds have changed and may change in the future. The Portfolios reflect the performance of Underlying Funds that are no longer
included in the Portfolios. Prior to March 27, 2015, the Moderately Aggressive Portfolio and the Moderate Portfolio had different names and operated under different investment
objectives and strategies.
(10.00)
-
10.00
20.00
30.00
1 Mo 3 Mo YTD 1 Yr 3 Yr 5 Yr 10 Yr S.I.
Total Returns for the Periods Ended June 30, 2020(Returns longer than 1-yr are annualized)
Very Aggressive Aggressive Growth Growth Moderately Aggressive ModerateModerately Conservative Conservative Very Conservative In College Preservation of Capital
• Areas of positive improvement within Multi-Manager funds:
• Growth Fund has provided strong rebound YTD
• Income Stock and Small Cap Funds have had a strong year in
their respective categories
• Fixed Income Funds continue to perform very well over long term
Portfolio Inception Date
Very Aggressive 3/27/2015
Aggressive Growth 6/3/2002
Growth 6/3/2002
Moderately Aggressive 6/3/2002
Moderate 6/3/2002
Moderately Conservative 3/27/2015
Conservative 6/3/2002
Very Conservative 3/27/2015
In College 6/3/2002
Preservation 9/1/2009
31
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Portfolio Asset Values
Plan Portfolio
Prior Total Net
Assets as of 12/31/19 ($ Millions)
Total Net Assets
as of 6/30/20 ($ Millions)
Change in Net
Assets as of 6/30/20 ($ Millions)
% Change in
Net Assets as of
6/30/20
Very Aggressive 185.1 174.4 (10.7) (6%)
Aggressive Growth 574.9 513.3 (61.6) (11%)
Growth 534.1 483.4 (50.7) (9%)
Moderately Aggressive 580.0 536.0 (44.0) (8%)
Moderate 757.7 737.2 (20.5) (3%)
Moderately Conservative 420.2 403.4 (16.8) (4%)
Conservative 520.0 523.4 3.4 1%
Very Conservative 362.6 377.9 15.3 4%
In College 359.7 410.3 50.6 14%
Preservation of Capital 62.8 101.6 38.8 62%
Source: NAV data obtained from BNY
Areas of focus and enhancement:
• Over the next year, introduce ETFs and Victory Funds into program to help diversify investment
exposure as well as reduce portfolio expenses.
• ETF considerations may include passive/rules-based equity ETFs and active fixed income
• Evaluate enhancing income and diversification potential with use of an alternative income fund
32
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Disclosures
Consider the investment objectives, risks, and charges and expenses of the USAA Mutual Funds® and/or USAA 529 College
Savings Plan® (Plan) carefully before investing. To obtain a prospectus or summary prospectus, containing this and other
important information for the USAA Mutual Funds visit www.usaa.com/propsectus. Call 800-235-8396 to request a Plan Description
and Participation Agreement containing this and other important information about the Plan from Victory Capital Services, Inc.,
Underwriter and Distributer. Read it carefully before investing. You should compare this Plan with any 529 Plan offered by your
home state or your beneficiary's home state and consider, before investing, any state tax or other state benefits such as financial
aid, scholarship funds, and protection from creditors that are only available for investment in the home state's plan.
Victory Capital means Victory Capital Management Inc., the investment adviser of the USAA Mutual Funds® and the USAA 529 College
Savings Plan® (Plan). The USAA Mutual Funds® are distributed by Victory Capital Services, Inc., member FINRA, an affiliate of Victory
Capital. The Plan is underwritten and distributed by Victory Capital Services, Inc. Victory Capital and its affiliates are not affiliated with United
Services Automobile Association or its affiliates. USAA and the USAA logos are registered trademarks and the USAA Mutual Funds®, USAA
Investments, and the Plan logos are trademarks of United Services Automobile Association and are being used by Victory Capital and its
affiliates under license.
Interests in the USAA 529 College Savings Plan® (Plan) are municipal fund securities issued by the Nevada College Savings Trust Fund
(Trust). The value of an investment in the Plan will vary with market conditions. The Plan is administered by the Nevada State Treasurer,
Zach Conine. Victory Capital Management Inc. (Victory Capital) provides investment management services, and Victory Capital Services, Inc.
markets and distributes the Plan. Ascensus Broker Dealer Services, Inc. serves as the Program Manager as well as effects account owner
transactions in the Plan. Interests in the Plan are not guaranteed by the Trust, the Plan, the state of Nevada, the Board or any other
governmental entities, or any USAA, Victory Capital or Ascensus entities and you could lose money.
The Average Annual Total Returns presented on p.31 are net of Annual Asset-Based Plan Fees, but do not take into account the Annual
USAA Minimum-balance Fee. All Plan accounts are subject to a Program Management Fee of 0.13%. Some Plan accounts also may be
assessed a $10 Annual USAA Minimum-Balance Fee, unless the Account Owner or the designated beneficiary is a Nevada resident, in which
case, the USAA Minimum balance Fee is waived for such Plan account.
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Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc. 20200915-1329026
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