Diversified Bond Investment Portfolio. The Portfolio emphasizes maximum total return (income plus capital appreciation) through two or more core bond funds. This Investment Portfolio has a lower level of risk than the Diversified Equity Investment Portfolio, but is expected to offer lower potential returns.
PIMCO Real Return Fund Investment Objective and Principal Strategies. This Fund's investment objective is to maximize real return, consistent with the preservation of real capital and prudent investment management. The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in inflation-indexed bonds of varying maturities issued by the U.S. and non-U.S. governments, their agencies or instrumentalities, and corporations. The Fund invests primarily in investment grade debt securities, but may invest up to 10% of its assets in high yield securities ("junk bonds") rated B or higher by Moody's or S&P, or, if unrated, determined by the Fund to be of comparable quality. The Fund may also invest up to 30% of its assets in securities denominated in foreign currencies, and may invest beyond this limit in U.S. dollar-denominated securities of foreign issuers. The Fund will normally hedge at least 75% of its exposure to foreign currency to reduce the risk of loss due to fluctuations in currency exchange rates. The Fund is non-diversified, which means that it may concentrate its assets in a smaller number of issuers than a diversified fund. The Fund may invest all of its assets in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities. The Fund may lend its portfolio securities to brokers, dealers and other financial institutions to earn income.
Principal Risks. Among the principal risks of investing in the Fund, which could adversely affect its net asset value, yield and total return, are interest rate risk, credit risk, market risk, issuer risk, derivatives risk, liquidity risk, issuer non-diversification risk, foreign investment risk, currency risk, leveraging risk, management risk, and mortgage risk. Please see the section "Underlying Fund Risks" following the Underlying Fund Descriptions in the Plan Disclosure Statement for a description of these and other risks of investing in the Fund.
PIMCO Diversified Income Fund Investment Objective and Principle Strategy. The Fund seeks to achieve its investment objective by investing under normal circumstances at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. The average portfolio duration of this Fund normally varies from three to eight years, based on PIMCO's forecast for interest rates. The Fund may invest in a diversified pool of corporate fixed income securities of varying maturities. The Fund may invest all of its assets in high yield securities ("junk bonds") subject to a maximum of 10% of its total assets in securities rated below B by Moody's, or equivalently rated by S&P or Fitch, or, if unrated, determined by PIMCO to be of comparable quality. In addition, the Fund may invest, without limitation, in fixed income securities that are economically tied to emerging market countries. The Fund may invest, without limitation, in securities denominated in foreign currencies and in U.S. dollar-denominated securities of foreign issuers. The Fund may invest all of its assets in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities. The Fund may, without limitation, seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls).
Principal Risks. The principal risks of investing in the Fund, which could adversely affect its net asset value, yield and total return, are, interest rate risk, credit risk, high yield risk, market risk, issuer risk, liquidity risk, derivatives risk, mortgage-related and other asset-backed risk, foreign (non-U.S.) investment risk, emerging markets risk, currency risk, leveraging risk, management risk, short sale risk.
PIMCO Foreign Bond Fund Investment Objective and Principal Strategies. This Fund's investment objective is to maximize total return, consistent with the preservation of capital and prudent investment management. The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in fixed income instruments of issuers located outside of the U.S., representing at least three foreign countries, which may be represented by futures contracts (including related options) with respect to such securities, and options on such securities. Such securities normally are denominated in major foreign currencies or baskets of foreign currencies (such as the euro).The Fund will normally hedge at least 75% of its exposure to foreign currency to reduce the risk of loss due to fluctuations in currency exchange rates. The Fund selects its foreign country and currency compositions based on an evaluation of various factors, including, but not limited to relative interest rates, exchange rates, monetary and fiscal policies, trade and current account balances. The average portfolio duration of this Fund normally varies within a three- to seven-year time frame. The Fund invests primarily in investment grade debt securities, but may invest up to 10% of its assets in high yield securities ("junk bonds") rated B or higher by Moody's or S&P, or, if unrated, determined by the Fund to be of comparable quality. The Fund is non-diversified, which means that it may concentrate its assets in a smaller number of issuers than a diversified fund. The Fund may invest all of its assets in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities. The Fund may also lend its portfolio securities to brokers, dealers and other financial institutions to earn income.
Principal Risks. Among the principal risks of investing in the Fund, which could adversely affect its net asset value, yield and total return, are interest rate risk, credit risk, market risk, issuer risk, foreign investment risk, currency risk, issuer non-diversification risk, liquidity risk, mortgage risk, derivatives risk, leveraging risk, and management risk. Please see the section "Underlying Fund Risks" following the Underlying Fund Descriptions in the Plan Disclosure Statement for a description of these and other risks of investing in the Fund.
PIMCO Total Return Fund Investment Objective and Principal Strategies. This Fund's investment objective is to maximize total return, consistent with the preservation of capital and prudent investment management. The Fund seeks to achieve its investment objective by investing under normal circumstances at least 65% of its assets in a diversified portfolio of fixed income instruments of varying maturities. The average portfolio duration of this Fund normally varies within a three- to six-year time frame based on the Fund's forecast of interest rates. The Fund invests primarily in investment grade debt securities, but may invest up to 10% of its assets in high yield securities ("junk bonds") rated B or higher by Moody's or S&P, or, if unrated, determined by the Fund to be of comparable quality. The Fund may invest up to 30% of its assets in securities denominated in foreign currencies, and may invest beyond this limit in U.S. dollar-denominated securities of foreign issuers. The Fund will normally hedge at least 75% of its exposure to foreign currency to reduce the risk of loss due to fluctuations in currency exchange rates. The Fund may invest all of its assets in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities. The Fund may lend its portfolio securities to brokers, dealers and other financial institutions to earn income.
Principal Risks. Among the principal risks of investing in the Fund, which could adversely affect its
net asset value, yield and total return, are interest rate risk, credit risk, market risk, issuer risk, derivatives
risk, liquidity risk, mortgage risk, foreign investment risk, currency risk, leveraging risk, and management
risk. Please see the section "Underlying Fund Risks" following the Underlying Fund Descriptions in the Plan Disclosure Statement for a description of these and other risks of investing in the Fund.
1. Certain Portfolios are not available to those who invest directly. Only South Dakota residents and Account Owners who designate a South Dakota resident as Beneficiary can invest directly in the CollegeAccess 529 Plan. Residents of states other than South Dakota can invest in the CollegeAccess 529 Plan only through a Financial Advisor. Additional fees apply for investments made through a Financial Advisor. See the Plan Disclosure Statement for details.
Certain of the investment management firms that manage underlying mutual Funds in the Program — Nicholas-Applegate, Oppenheimer Capital, Pacific Investment Management Company (PIMCO) and RCM — are affiliated with the Program Manager, Allianz Global Investors Distributors, LLC.
NOTICE: CollegeAccess 529 Plan accounts are not
insured by any state, and neither the principal deposited nor any
investment return is guaranteed by any state. Furthermore, the accounts
are not insured, nor the principal or any investment return guaranteed,
by the federal government or any federal agency.
Before investing, investors should consider whether their state of residency — or their intended Designated Beneficiary's state of residency — offers any benefit, such as a state tax deduction, or any other benefits that are only available for investments in that state's 529 savings program.
CollegeAccess 529 Plan is a Section 529 college savings plan
sponsored by the State of South Dakota, and managed and distributed by Allianz Global Investors Distributors LLC,
1345 Avenue of the Americas, New York, NY 10105-4800, 1-866-529-7462.
