· 2020. 9. 17. · zach conine state treasurer state of nevada office of the state treasurer 1...

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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https://zoom.us/j/94749106869

mailto:[email protected]

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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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http://www.nevadatreasurer.gov/CollegeSavings/Board/Meetings/2019/2019_Meetings/

https://notice.nv.gov/

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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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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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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

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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

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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


Program

TotalSSGA

Upromise 529


USAA 529 College

Savings Plan


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




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Second Quarter 2020 First Quarter 2020 Second Quarter 2019

SSGA Upromise

529


USAA 529 College Savings

Plan


Program

TotalSSGA

Upromise 529

The Vanguard

529 College Savings Plan

USAA College Savings Plan


Program

TotalSSGA

Upromise 529


USAA 529 College

Savings Plan


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




Service Levels

6CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 18

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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


Section I


Marketing Activity


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


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



24

Web Traffic Volume: April – June, 2019 vs. 2020

2



25

Web Traffic Location (US): April – June 2020

3

“not set” represents web traffic that is not trackable via Google Analytics location identification



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



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



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



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%)



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.



31

10

Email Metrics Explained



32


RIA Marketing & Distribution Initiatives


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

http://www.ssga.com/

http://www.ssga.upromise529.com/

Section II

Vanguard 529 ® College Savings Plan

Marketing Activity


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.


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


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


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


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

Facebook

✓ 1.71% engagement rate, 41 reactions, 3 shares, 7 comments, 102 link clicks

LinkedIn

✓ Data not available (data aggregator issue?)

Twitter

✓ 1.08% engagement rate, 49 likes, 11 replies, 13 retweets, 629 link clicks

Instagram

✓ 2.32% engagement rate, 242 likes, 3 comments

41

Section III

Victory Capital

USAA 529 College Savings Plan®

Marketing Activity


USAA Q2 Metrics


Q2 2020

USAA Marketing Activities


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


Clicks Click Rate

529 96k 22.1 1.5 0.34

529 Nevada

39 26.9% 3 2.07

June 2020 Results


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


Q2 2020



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


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


33

45


Q2 2020


34

New Digital Page: USAA 529 College Savings Plan Homepage

46


Q2 2020


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.


Q2 2020


36

48

Section IV

Wealthfront College Savings Plan®

Marketing Activity


38

Wealthfront College Savings Landing Page




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




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

https://brokercheck.finra.org/firm/summary/153407

https://www.wealthfront.com/faq/115000082363

https://www.wealthfront.com/static/documents/client-agreements/WEALTHFRONT-BROKERAGE-TAXABLE-CLIENT-ACCOUNT-AGREEMENT.pdf

https://www.wealthfront.com/static/documents/college_savings_plan_description.pdf

http://www.finra.org/

http://www.sipc.org/

1



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 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 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 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 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


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


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 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 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


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


Marketing and brand awareness As of 6/30/20

65


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 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 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 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%.
















69


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%.








• We continued to see strong performance from emerging market equity selection.









70


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 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 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 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 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 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 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 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 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 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 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 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


72





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 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 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 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 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 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





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 529 for AmericaUnderlying performance as of 6/30/20


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 529 for AmericaUnderlying performance as of 6/30/20


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


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



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



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



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

[email protected]

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.


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

EMAIL

PRINT

CONTENT

PROMOTION/

DISTRIBUTION

Back to School Tax SeasonYear-end planning

& gift giving

529 Awareness

Print pieces updated on a

quarterly and annual basis.

106



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



Visuals and messaging targeting investors and advisors to address current situation

108



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



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



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

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


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


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


STRATEGY: ACCOUNT OWNERS

Email

• 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


• 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.


(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.


(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


(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


• 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


(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

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjk8oD7vOzZAhUo9IMKHR53Aw8QjRwIBg&url=https://www.leverinteractive.com/services/search-engine-marketing/&psig=AOvVaw0XZR8F7TWrn_rS9vjK53YZ&ust=1521139620105417

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

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjAwq66w-zZAhUM0YMKHf0PC9wQjRwIBg&url=https://www.iconfinder.com/icons/317725/linkedin_social_icon&psig=AOvVaw3nS2tbRpubLmDnpNlHH_9b&ust=1521141390463277

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

LinkedIn

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

Twitter

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

LinkedIn

Twitter

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

LinkedIn

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



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



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


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

https://blog.wealthfront.com/equity-ipo-guide/managing-windfall/#college

https://blog.wealthfront.com/financial-health-savings/#accounts

https://blog.wealthfront.com/financial-health-savings/#accounts

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


155

https://www.wealthfront.com/faq/115000082363

https://www.wealthfront.com/static/documents/client-agreements%2FWEALTHFRONT-BROKERAGE-TAXABLE-CLIENT-ACCOUNT-AGREEMENT.pdf

https://www.wealthfront.com/static/documents/college_savings_plan_description.pdf

http://www.finra.org/

http://www.sipc.org/

https://brokercheck.finra.org/firm/summary/153407


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


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

Page 4 of 7

160


Risk/Return Analysis | As of June 30, 2020

Page 5 of 7

161


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

163


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

Page 2 of 7

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.

167

September 17, 2020

Page 3 of 7

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.

169

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


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


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.

170

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


Wealthfront 529 Plan


APPROVED FOR WATCH STATUS:

_______________________________

Zach Conine, State Treasurer

171

September 17, 2020

Page 7 of 7

Disclosures


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


Agenda

Page 2 of 28

174

Summary of Fund Performance andWatch Status

Page 3 of 28

175


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 -- -- -- -- --


Intl Equity Funds 4 4 -- -- --

Fixed Income Funds 6 5 -- 1 --


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


– 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


Summary of Fund Performance and Watch Status

Page 4 of 28

176


ProgramTotal


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


– 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


– 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



Page 5 of 28

177


ProgramTotal


Wealthfront 529 Plan

Number of Funds 9 8 -- 1 --

Percentage 100% 89% 0% 11% 0%

Fund Status -- -- -- -- --

Fund Status -- -- -- -- --


Intl Equity Funds 2 1 -- 1 --

Fixed Income Funds 4 4 -- -- --


Wealthfront 529 Program

• 89% of funds in the WealthfrontProgram have either a Positive orAcceptable status


– 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



Page 6 of 28

178


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).



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


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).



Vanguard 529 Plan: Summary of Watch Status

PortfoliosCurrently on

Watch?Qualifies for

Watch?


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


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).



SSgA Upromise 529 Plan: Summary of Fund Performance Status



Status


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



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).



SSgA Upromise 529 Plan: Summary of Watch Status


Watch?Qualifies for

Watch?


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


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.)



USAA 529 Plan: Summary of Fund Performance Status



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



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).



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


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.)



Putnam 529 for America Plan: Summary Of Fund Performance Status



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



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


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


Putnam Fixed Income Absolute Return NO NO

Putnam Multi-Asset Absolute Return* NOShort-Term

Medium-Term



Putnam 529 for America Plan: Summary of Watch Status

* Fund has been removed from Watch status but remains below watch criteria



Page 14 of 28

186


Wealthfront 529 Plan: Summary of Fund Performance Status



Status


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).




Page 15 of 28

187


Wealthfront 529 Plan: Summary Of Watch Status


Watch?Qualifies for

Watch?


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.





Page 16 of 28

188

Age-Based Risk/Return Analysis

Page 17 of 28

189


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

(%

)




Page 18 of 28

190




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

(%

)


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

(%

)





Source: MorningStar

Page 19 of 28

191



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

(%

)


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

(%

)





Source: MorningStar

Page 20 of 28

192




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

(%

)


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

(%

)





Source: MorningStar

Page 21 of 28

193


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

(%

)





Source: MorningStar

Page 22 of 28

194

Enrollment Date Risk/Return Analysis

Page 23 of 28

195


Year 20361-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

(%

)


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

(%

)




Direct & Advisor-Sold Programs

Source: MorningStar

Page 24 of 28

196




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

(%

)


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

(%

)





Source: MorningStar

Page 25 of 28

197




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

(%

)



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

(%

)





Source: MorningStar

Page 26 of 28

198



College1-year (as of June 30, 2020)

Putnam 1999


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

(%

)


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

(%

)





Source: MorningStar

Page 27 of 28

199



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.


Disclosures

Page 28 of 28

200

1



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


2021 Open Enrollment Year – Two-Year University Cost






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





Grade/Age at

Purchase


209


2021 Open Enrollment Year – One-Year University Cost






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





Grade/Age at

Purchase


210


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$




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





4-Year Purchase Costs (2 Years University & 2 Years Community College)Tuition Increase

211


2021 Open Enrollment Year – Two-Year Community College Cost






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






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.

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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.

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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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3

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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5

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


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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7

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


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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15

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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16

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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17

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.

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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.

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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

[email protected]

Phone (888)477-2667(toll free) or

(702) 486-2025

Fax (702) 486-3246

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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.

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1


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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239

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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241

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

• Email

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


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


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.



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New Digital Page: 529 Savings Plan Homepage



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New Digital Page: 529 Savings Plan Advantages



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New Digital Page: USAA® 529 Distinguished Valor

Matching Grant Program


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College Savings Tool


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

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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

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➢ 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

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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

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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

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Social Media Results

for 529 Day

Platform Engagement

Rate

Twitter

post

4.7%

Twitter

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

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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

Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc. 20200915-1329026

269

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

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270

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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http://www.usaa.com/propsectus

· 2020. 9. 17. · zach conine state treasurer state of nevada office of the state treasurer 1...

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