The Select Fund (individual-fund) Investment Portfolios enable you to tailor your account to suit your personal investment needs. You may allocate contributions to any one or more of these Investment Portfolios.1
PIMCO All Asset Fund Investment Objective and Principal Investment 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 substantially all of its assets in Institutional Class shares of other PIMCO Funds of the Pacific Investment Management Series. The Fund invests its assets in shares of these PIMCO Funds and does not invest directly in stocks or bonds of other issuers. The Fund may invest in any or all of these PIMCO Funds, but will not normally invest in every fund at any particular time. The Fund's investment in a particular PIMCO Fund normally will not exceed 50% of its total assets. The Fund is a "fund of funds," which is a term used to describe mutual funds that pursue their investment objective by investing in other mutual funds. In addition to the PIMCO Funds of the Pacific Investment Management Series, the Fund may invest in additional PIMCO Funds created in the future.
Principal Risks. The principal risks presented by an investment in the Fund include market risk, issuer risk, selection risk, small cap and medium cap companies risk, liquidity risk, derivatives risk, foreign investment risk, emerging markets risk, currency risk, focused investment risk and issuer non-diversification risk, leveraging risk, management risk, credit risk, interest rate risk, high yield risk, mortgage risk, commodity risk, real estate risk, and underlying fund 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 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.
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 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.
