Zach Conine State Treasurer STATE OF NEVADA OFFICE OF THE STATE TREASURER 1 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. 1
271
Embed
· 2020. 9. 17. · Zach Conine State Treasurer STATE OF NEVADA OFFICE OF THE STATE TREASURER 1 PUBLIC MEETING AGENDA MEETING OF THE BOARD OF …
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Zach Conine State Treasurer
STATE OF NEVADA
OFFICE OF THE STATE TREASURER
1
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.
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.
4
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
MINUTES OF BOARD MEETING
June 26, 2020 =================================================================
The meeting was held by video conference from the Nevada Capitol Building, 101 N. Carson Street, Carson City, Nevada to the Grant Sawyer Building, 555 East Washington Avenue, Suite 5100, Las Vegas, Nevada. Other attendees participated by conference call. Board members present: Chairman– Treasurer Zach Conine – Carson City Andrew Clinger – Carson City Tiffany Greenameyer – Catherine Bartlett representing Tiffany Greenameyer Jeff Haag – Carson City Andrew Martin – Las Vegas Others present: Tara Hagan, Chief Deputy Treasurer Kirsten Van Ry, Senior Deputy Treasurer Tya Mathis-Coleman, Deputy – College Savings Ian Carr, Attorney General Eric White, Meketa Investment Group Christy Erickson, Vanguard Tom Hewitt, Ascensus Judy Minsk, Putnam Investments Joy Slabaugh, Vanguard Scott Donaldson, Vanguard Brittany Resendes, SSGA Nathaniel Gandy, Wealthfront
1. Roll Call Chairman Treasurer Conine called the meeting to order at 1:00 pm, and determined a quorum
was present.
2. Public Comment The Governor Guinn family submitted a letter of recommendation regarding Agenda Item #12
for the Board’s consideration. The letter is attached to these meeting minutes.
Consent Agenda
3. For possible action to approve: the minutes of the College Savings Board of Trustees meeting of February 24, 2020.
5
2
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
6
3
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.
7
4
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
8
5
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.
9
6
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.
10
7
11
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 4 September 17, 2020
Item: Ascensus program manager’s report encompassing results for Vanguard, USAA, SSgA Upromise, and Wealthfront 529 plans for the quarter ended June 30, 2020. Summary: Thomas Hewitt, Vice President, Relationship Management with Ascensus College Savings, will be available to answer questions. Fiscal Impact: None by this action. Recommendation:
To accept and approve the Ascensus College Savings Program Manager Report for the quarter ending June 30, 2020.
12
College Savings Plans of Nevada
Board of Trustees Meeting
September 17, 2020
Program Management Report
FY 4th - CY 2nd Quarter Ended June 30th , 2020
CONFIDENTIAL 13
College Savings Plans of Nevada
Board of Trustees Meeting
September, 2020
Table of ContentsPages
All Plan Executive Summary 3
All Plan Highlights 4
SSGA Upromise 529 Plan- SLA 6
Marketing Activity SSGA Upromise 529 Plan 10
SSGA Upromise 529 Plan- RIA 21
The Vanguard® 529 College Savings Plan 24
Victory Capital/USAA 529 College Savings Plan 29
Wealthfront College Savings Plan® 33
2
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 14
Executive Summary
SSGA Upromise 529 Plan
• At the end of the second quarter 2020, assets in the SSGA Upromise 529 Plan totaled $1.5 B, which was flat
year-over-year from Q2 2019. 584 new funded accounts was down from 651 for the same period last year.
Total Funded Accounts were down 4% compared to the same time last year. There were a total of 5,209
unique account holders (NV residents) at the end of the quarter. Average account size for the plan is
$12,190 with NV average account assets at $7,727.
Vanguard 529® College Savings Plan
• Second Quarter 2020 assets in the Vanguard 529 College Savings Plan totaled just over $22.7 B, which was
a 9.9 % increase over 2Q 2019. Total Funded Accounts are 464,115 with 7,619 NV resident accounts. There
were a total of 4,440 unique NV account holders at the end of the quarter. Average account size for the plan
is $48,873 with NV average account assets at $34,310.
3
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.
15
Highlights This Period
4
Second Quarter 2020 First Quarter 2019 Second Quarter 2019
*Each beneficiary within a single account is counted as a separate enrollment.
SSGA Upromise 529 PlanMarketing Plan Detail
FY 4th – CY 2nd Quarter Ended June 30, 2020
31
10
Email Metrics Explained
SSGA Upromise 529 PlanMarketing Plan Detail
FY 4th – CY 2nd Quarter Ended June 30, 2020
32
SSGA Upromise 529 Plan
RIA Marketing & Distribution Initiatives
21CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 33
Direct Marketing continues to be the main avenue to engage with Advisors via email communications
• A direct marketing email deployed in May on 5/29 day to an audience of 16,000 RIAs and IBDs highlighting
client-ready resources that advisors can easily share to educate clients on the importance of opening a
529 account
• The email promoted a series of popular material that is frequently downloaded from the advisor site
including a 529 Frequently Asked Questions piece, a brochure focused on Dispelling Myths of 529 plans
as well as an infographic explaining the Tax Law benefits and new ways 529 plans can be utilized
• This email outperformed the 2019 averages across all viewership and engagement metrics with an
open rate of 24.28% and viewer engagement rate of 6.5%
Paid Search generated 2,660,096 impressions across Search and Google Display Network
• Paid search saw it’s highest performing quarter in terms of impressions
• Download tracking implemented in October ‘19 continues to prove successful in
capturing document downloads from the advisor site, with 904 downloads in Q2
which is up 11.33% from Q1
• Google Display Network (GDN) ads were introduced in Q1, linking engagers to material
on the advisor site and producing an impressive number of downloads
• GDN proved most successful in terms of impressions with 2,488,883 total impressions,
equaling 94% of the combined impressions from Search and GDN
• Quarter over quarter, the top keyword continues to be “+529 +plan” concluding that this
search term specifically leads to the highest visitor conversion rate
Source: State Street Global Advisors, EMI, Ascensus College Savings. As of June 2020.
2991322.2.1.AM.INST
SSGA Upromise 529 Plan — RIA Marketing & Distribution Initiatives —
Q2 2020 RIA Marketing Highlights
34
Important Disclosures
For use with Ascensus College Savings only.
Investing involves risk including the risk of loss of principal.
The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent.
The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does
not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or
completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
Standard & Poor’s, S&P and SPDR are registered trademarks of Standard & Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark
Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation.
State Street Corporation’s financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of
such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or
interruptions of any index.
The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to
the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.
For more information about the SSGA Upromise 529 Plan (“the Plan”) download the Plan Description and Participation Agreement or request one by calling 1-800-587-7305.
Investment objectives, risks, charges, expenses, and other important information are included in the Plan Description; read and consider it carefully before investing.
Ascensus Broker Dealer Services, LLC. (“ABD”) is distributor of the Plan.
Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds,
and protection from creditors that are only available for investments in that state’s qualified tuition program. You should also consult your financial, tax, or other advisor to
learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. You also may wish to contact directly your home state’s 529
college savings plan(s), or any other 529 plan, to learn more about those plans’ features, benefits, and limitations. Keep in mind that state-based benefits should be one of
many appropriately weighted factors to be considered when making an investment decision.
30CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 42
USAA Q2 Metrics
COLLEGE SAVINGS PLANS OF NEVADA
Q2 2020
USAA Marketing Activities
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
31
April 2020 Results
Email Opens Open Rate
Clicks Click Rate
529 74k 19.9% 1.1k 0.31%
529 Nevada
0.1k 51.4% 5 2.34%
May 2020 Results
Email Opens Open Rate
Clicks Click Rate
529 96k 22.1 1.5 0.34
529 Nevada
39 26.9% 3 2.07
June 2020 Results
Email Opens Open Rate
Clicks Click Rate
529 438k 15.2% 2k 0.4%
529 Nevada
27 18.5% 5 3.4%
Summary:
➢ The 529 Nevada emails continue to have
higher click rates overall
➢ Messages encouraged automatic
investment plans across new accounts and
periodic reviews to increase contribution
amounts.
43
Victory Capital Q2 Metrics
COLLEGE SAVINGS PLANS OF NEVADA
Q2 2020
USAA Marketing Activities
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
32
May 2020 Results
Email Delivered Open Rate Click Rate
529 Day –General Audience
131,656 28.3% 0.3%
529 Day _ AIP
100,253 51% 0.8%
529 Day –No AIP
71,584 33.8% 0.8%
Social Media Performance: ➢ Both 529 Day tweets were the highest performing tweets in May on Twitter➢ The 529 Day video tweet had a 9.9% engagement rate and our donation announcement had
a 4.7% engagement rate➢ The 529 Day post on LinkedIn was our third highest performing post in the month of May with
an 8.18% engagement rate and 544 video views.➢ Our engagement rates far exceed financial services industry standard of 0.66% according to Rival IQ.
44
2H2020 529 Objectives & Tactics
COLLEGE SAVINGS PLANS OF NEVADA
Q2 2020
Serve the educational needs of the military community
Objectives➢ Ongoing support for Nevada residence➢ Raise awareness of Victory Capital to include a focus on 529 and Distinguished Valor
Matching Program➢ Introduce partnership with Military Child Education Coalition (MCEC)
Tactics
➢ Finalize new 529 pages for Victory Capital website scheduled to launch later this year
➢ Back to School Campaign to drive awareness
➢ Launched social B2C channel to drive awareness and lead gen for 529
➢ Provide college planning guidance
➢ Continue Paid Media to expand outside specific targets
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
33
45
COLLEGE SAVINGS PLANS OF NEVADA
Q2 2020
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
34
New Digital Page: USAA 529 College Savings Plan Homepage
46
COLLEGE SAVINGS PLANS OF NEVADA
Q2 2020
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
35
New Digital Page: USAA 529 Distinguished Valor Matching Grant Program
47
Disclosures
Consider the investment objectives, risks, charges and expenses of the USAA 529 College Savings Plan
(Plan) carefully before investing. Call 800-235-8396 to request a Plan Description and Participation
Agreement containing this and other information about the Plan from Victory Capital Advisers, Inc.
Underwriter and Distributor. Read it carefully before investing. You should compare the USAA Plan with
any 529 Plan offered by your home state or your beneficiary’s home state and consider, before investing,
any state tax or other state benefits such as financial aid, scholarship funds, and protection from
creditors that are only available for investments in the home state’s plan.
Victory Capital means Victory Capital Management Inc., the investment manager of the USAA Mutual Funds. USAA
Mutual Funds are distributed by Victory Capital Advisers, Inc., a broker dealer registered with FINRA and an affiliate
of Victory Capital. Victory Capital and its affiliates are not affiliated with United Services Automobile Association or
its affiliates. USAA and the USAA logo are registered trademarks and the USAA Mutual Funds logo is a trademark
of United Services Automobile Association and are being used by Victory Capital and its affiliates under license.
Interests in the USAA 529 College Savings Plan™ (Plan) are municipal fund securities issued by the Nevada
College Savings Trust Fund (Trust). The value of an investment in the Plan will vary with market conditions. The
Plan is administered by the Nevada State Treasurer, Zach Conine. Victory Capital Management Inc. provides
investment management services, and Victory Capital Advisers, Inc. markets and distributes the Plan. Ascensus
Broker Dealer Services, Inc. serves as the Program Manager as well as effects account owner transactions in the
Plan. Interests in the
Plan are not guaranteed by the Trust, the Plan, the state of Nevada, the Board or any other governmental entities,
or any USAA, Victory or Ascensus entities and you could lose money.
COLLEGE SAVINGS PLANS OF NEVADA
Q2 2020
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
36
48
Section IV
Wealthfront College Savings Plan®
Marketing Activity
37CONFIDENTIAL : For institutional investor use only- Not for distribution to the public 49
38
Wealthfront College Savings Landing Page
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
COLLEGE SAVINGS PLANS OF NEVADA
Highlights This Period
FY 4th - CY 2nd Quarter Ended June 30, 2020
% New Sessions 41.88%
Bounce Rate 62.72%
Pages / Session 2.30
Avg. Session Duration 00:02:29
50
39
Wealthfront College Savings Email Conversion
CONFIDENTIAL : For institutional investor use only- Not for distribution to the public
COLLEGE SAVINGS PLANS OF NEVADA
Highlights This Period
FY 4th - CY 2nd Quarter Ended June 30, 2020
Open Rate 70.83%
Click Rate 11.11%
Unsub Rate 0%
51
Distributed by Wealthfront Brokerage LLC
Check out the background of Wealthfront Brokerage LLC on FINRA's BrokerCheck.
Wealthfront's College Planning Service
Path is a planning model that allows Clients to explore
projections of various possible financial outcomes based on
data from your linked external financial accounts, a variety of
other inputs, your tolerance for risk and your current
investments. College Planning enhances the features of Path
and provides for additional planning functionality using
additional inputs and assumptions.
Wealthfront Advisers LLC is an SEC-registered investment
advisor providing financial advisory and planning services to
investors who become clients pursuant to a written agreement,
which you can read here. Path's financial planning models are
designed to assist Clients in preparing for their financial future
and allows them to personalize assumptions for their portfolios.
Important Wealthfront 529 College Savings Plan
Disclosures
The Wealthfront 529 College Savings Plan ("the Plan") is
sponsored by the State of Nevada, acting through the Board of
Trustees of the College Savings Plans of Nevada, and
administered by the State Treasurer's Office. Ascensus Broker
Dealer Services, Inc. serves as Program Manager.
Anyone may invest in the Plan and use the proceeds to pay for
qualified higher education expenses of a beneficiary at an
eligible educational institution. If you withdraw money for
something other than qualified higher education expenses, you
will owe federal income tax and may face a 10% federal tax
penalty on your earnings.
Important Wealthfront 529 College Savings Plan
Disclosures, continued
Before investing in a 529 plan, consider whether your state's
plan or that of your beneficiary offers state tax and other
benefits not available through the Plan. Nevada residents who
open a Wealthfront 529 College Savings Plan account will have
their first $25,000 managed for free.
All investing involves risk, including the possible loss of money
you invest. Past performance does not guarantee future
performance. Consider the investment objectives, risks,
charges, and expenses of any 529 plan before investing. Please
review the Plan Description and Participation Agreement
carefully before investing. Request one by calling us at (844)
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 5 September 17, 2020
Item: Putnam 529 for America program manager’s report for the quarter ended June 30, 2020 Summary: Judy Minsk, Director Investment Strategies, with Putnam Investments, will be available to answer questions. Fiscal Impact: None by this action. Recommendation:
To accept and approve the Putnam 529 for America program manager’s report for the quarter ended June 30, 2020.
53
For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
College Savings Plans of NevadaBoard of Trustees Meeting
Putnam 529 for AmericaSM
Quarterly Report
April 1 – June 30, 2020
FY 2020 Q4
54
PUTNAM INVESTMENTS | 2For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for America Commentary as of 6/30/20 (FY 2020 Q4)
Plan update
• Putnam 529 for America plan assets grew to $434M, up 10.43% vs. prior quarter.
• Gross contributions were -28% vs. the previous quarter and -6.4% year over year.
• Net contributions were up 76% vs. prior quarter.
• Total distributions were down 40% vs. prior quarter—understandable since the previous quarter is
when tuition payments are typically due.
• NV assets were up 13% vs. the previous quarter, and a number of funded accounts were flat.
– NV sales are in top 10 nationwide for the quarter.
May 529 Awareness campaign
• Visits and the number of users to 529 are up year over year.
• Social is a significant driver of traffic in 2020.
55
PUTNAM INVESTMENTS | 3For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Putnam 529 for America Highlights as of 6/30/20 (FY 2020 Q4)
Accounts defined as a unique owner/beneficiary combination.Average account balance defined as total assets divided by the number of unique owner/beneficiary combinations.Dollars in millions except average account balances.
Highlights this period 2nd quarter 2020 1st quarter 2020 % change QvQ 2nd quarter 2019 % change y/y
Assets under management $434,325,653 $393,289,533 10.43% $446,210,368 -2.66%
Total funded accounts 19,168 19,225 -0.30% 19,751 -2.95%
Total # unique customers 10,978 11,028 -0.45% 11,324 -3.06%
New accounts 165 205 -19.51% 205 -19.51%
Average customer balance $22,659 $20,457 10.76% $22,592 0.30%
Nevada total assets $11,957,979 $10,553,130 13.31% $11,638,884 2.74%
Nevada funded accounts 600 591 1.52% 574 4.53%
Nevada average customer balance $19,930 $17,856 11.61% $20,277 -1.71%
New Nevada accounts 7 10 -30.00% 15 -53.33%
Total gross contributions $5,675,877 $7,845,301 -27.65% $6,063,232 -6.39%
Total distributions $6,270,218 $10,358,665 -39.47% $7,216,819 -13.12%
Net contributions ($594,341) ($2,513,364) 76.35% ($1,153,587) 48.48%
Rollovers in $383,728 $220,125 74.32% $567,070 -32.33%
Rollovers out $2,567,165 $2,540,028 1.07% $2,402,879 6.84%
Net rollovers ($2,183,437) ($2,319,903) 5.88% ($1,835,809) -18.94%
Lipper International Large-Cap Growth average 19.03 -4.56 3.19 4.63 4.00 6.39 6.14
Putnam Fixed Income Absolute Return Fund Y (12/23/2008) 4.68 -3.26 0.48 2.69 2.63 2.31 2.79
ICE BofA U.S. Treasury Bill Index 0.02 0.67 1.71 1.80 1.22 0.66 0.61
Putnam Multi-Asset Absolute Return Fund Y (12/23/2008) -1.21 -6.53 -8.15 -1.72 -0.13 2.56 3.37
ICE BofA U.S. Treasury Bill Index 0.02 0.67 1.71 1.80 1.22 0.66 0.61
76
PUTNAM INVESTMENTS | 24For use with the College Savings Plans of Nevada Board of Trustees. Not for public distribution.322168 8/20
Printed on 8/10/2020
Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Frank Russell Company.
ICE Data Indices, LLC (ICE BofA), used with permission. ICE BofA permits use of the ICE BofA indices and related data on an “as is” basis; makes no warranties regarding same; does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofA indices or any data included in, related to, or derived therefrom; assumes no liability in connection with the use of the foregoing; and does not sponsor, endorse, or recommend Putnam Investments, or any of its products or services.
FOR USE WITH THE COLLEGE SAVINGS PLANS OF NEVADA BOARD OF TRUSTEES. NOT FOR PUBLIC DISTRIBUTION.
Putnam Retail Management putnam.com
77
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 6 September 17, 2020
Item: The Nevada Prepaid Tuition Program activity report for the quarter ended March 31, 2020. Summary: STO Staff will be available to answer questions. Fiscal Impact: None by this action. Recommendation:
To accept and approve the Nevada Prepaid Tuition Program activity report for the quarter ended March 31, 2020.
78
QUARTERLY REPORT AS OF MARCH 31, 2020
79
Summary of Nevada Prepaid Tuition3rd Quarter FY 20 Activity
Contracts Paid in Full
157
Funded Status
154.6%
Contracts Depleted
105
Contributions
$ 4,235,764
Tuition Payments
$2,360,676
Contracts Sold
288
Market Value of Assets
$275,966,395
Active Contracts 12,251
80
3rd Quarter FY 20Contributions vs. Tuition Payments
•Contributions decreased 9.24% compared to same quarter FY 19. This is attributable to a decrease in enrollment and older contracts paying off their accounts.
•Tuition payments decreased by 0.67% compared to same quarter FY 19. This is mostly attributable to invoice timing.
•Tuition Payments were made to 221 different institutions
81
Funded Status by Fiscal YearAs of June 30, 2019 the funded status was 154.6%, the highest since inception.
82
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 7 September 17, 2020
Item: The Nevada Prepaid Tuition Program activity report for the quarter ended June 30, 2020. Summary: STO Staff will be available to answer questions. Fiscal Impact: None by this action. Recommendation:
To accept and approve the Nevada Prepaid Tuition Program activity report for the quarter ended June 30, 2020.
83
QUARTERLY REPORT AS OF JUNE 30, 2020
84
Summary of Nevada Prepaid Tuition4th Quarter FY 20 Activity
Contracts Paid in Full
335
New Graduating Students
711
Contracts Depleted
124
Contributions
$4,092,794
Tuition Payments
$3,001,215
Contracts Sold
100
85
4th Quarter FY 20Contributions vs. Tuition Payments
•Contributions decreased 25.25% 4th quarter FY 20 compared to same quarter FY 19. This is mainly attributable to the decrease in enrollment and the deferment of payments due to Covid-19.
•Tuition Payments increased by 3.35% 4th quarter FY 20 compared to same quarter FY 19. This is mostly attributable to the increase in tuition rates.
86
Summary of Nevada Prepaid TuitionAs of June 30, 2020
Contributions
$13,835,204
Tuition Payments
$11,999,639
Market Value of Assets
$312,216,023
Active Accounts
12,172
Total students depleted contracts
since inception: 3,861
Tuition benefits paid since inception: $109,093,083
Contracts sold since inception: 22,239
Funded status:(June 30, 2019)
154.6%
87
FY 20 Enrollment Plan and Payment Options
§ Similar to the previous two fiscal years, the Lump Sum payment option(40.84%) and 4-year tuition plan(65.65%) continued to be the most favorable amongst participants in fiscal year 2020.
§ Enrollment was extended through 5/15/20 and despite the effects of the Covid-19 pandemic, 193 or 36.8% of the FY 20 enrollments were received from March 1st to the end of the fiscal year.
88
Contract Status As of June 30, 2020
• 364 students depleted their benefits during FY 20.
• 524 new contracts were added during the fiscal year.
•4.2% increase in number of students using their benefits from prior fiscal year.
89
FY 20 Total Tuition Payments• Total Tuition payments of $11,999,639
were made in FY 20.
• FY 20 Tuition payments increased by 5.57% from the prior fiscal year.
• Of the total tuition payments, UNR remains the school with the largest distribution amount (40.95% or 4,914,030) during FY 20.
• Tuition benefits were paid to 321 different institutions during FY 20.
90
Funded Status by Fiscal YearAs of June 30, 2019 the funded status was 154.6%, the highest since inception. The FY 2020 funded status will be available for next quarterly report
91
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 8 September 17, 2020
Item: Annual Marketing update and overview Summary: STO and 529 Partners will provide the Board with an annual marketing update. Fiscal Impact: None by this action. Recommendation:
N/A this agenda item is presented as informational only.
92
Helping Nevadans Navigate:
Planning, Saving, and Paying
for Higher EducationPowered by the Nevada State Treasurer’s Office
93
Background
Goals include but not limited to:
Rebrand of the College Savings Division
1. Create new logo/brand
2. Redo Website (new domain NVigate.gov)
3. Update collateral
4. Manage Social Media platforms (twitter, Facebook and Instagram)
Kirvin Doak (KDC) hired in late 2019
94
April 2020
Social Media
• The STO online community grew by 259 new followers (83
on Twitter,15 on Facebook,161 on Instagram)
or increased by 6.9% over March.
• The STO online community is now comprised on
3,971 users.
• In April, there was a 48.3% increase in incoming messages.
This includes Twitter direct messages, Facebook messages
and Instagram comments.
• Overall, content received 2,714 engagements
and 48.5k impressions. 95
Group Stats by Profile/Page
Profile/Page
Impressions
Total Fan / per Engagements
Fans / Follower Messages Message per Message Link
Followers Increase Sent Impressions Sent Engagements Sent Clicks
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
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 9
September 17, 2020 Item: Prepaid Summary and Quarterly Performance
Report for the Nevada Prepaid Tuition Program for the period ended June 30, 2020
Summary: In October 2011, the Board approved the Amended Investment Policy Statement and Comprehensive Investment Plan for the Nevada Higher Education Prepaid Tuition Trust Fund outlining the criteria for investment monitoring and analysis, including the establishment of a “Watch List” process. In October of 2014, the Board approved a contract with Pension Consulting Alliance, now known as Meketa Investment Group Inc. (Meketa), to perform investment review services of the Nevada Prepaid Tuition/Higher Education Trust Fund. These services include an independent quarterly review of investment performance and fund monitoring of each underlying fund or separate account. Attached is Meketa’s report for the quarter ending June 30, 2020. Eric White, with Meketa Investment Group Inc. will be available to answer questions. Fiscal Impact: None by this action. Staff recommended motion:
Move to approve the Nevada Higher Education Trust Fund quarterly review of investment performance by Meketa Investment Group Inc. for the quarter ending June 30, 2020.
156
BOSTON CHICAGO LONDON MIAMI NEW YORK PORTLAND SAN DIEGO MEKETA.COM
2Q 2020 Nevada Prepaid
Tuition Plan Quarterly Report
Nevada 529 College Savings Programs
September 17, 2020
157
Nevada Prepaid Tuition Plan
Nevada Prepaid Total Portfolio | As of June 30, 2020
Introduction
The Nevada Prepaid Tuition Plan Portfolio had an aggregate value of $308.7 million as of June 30, 2020. During the latest quarter, the Total Portfolio increased
in value by $35.3 million, and over the past 1-year period the Total Portfolio increased in value by $15.6 million.
Global GDP experienced a historic decline of (4.9%) in the second quarter of 2020 due to the COVID-19 pandemic and the severe economic restrictions to control
the spread. Global central banks took aggressive policy actions as signs of economic deterioration emerged due to the restrictions put in place, with measures
that included cutting of policy rates, deploying emergency stimulus through expanded quantitative easing, liquidity programs to support funding markets,
targeting refinancing operations, and forward guidance commitments to keep monetary policy accommodative until the pandemic is thoroughly under control.
The US labor picture improved over the quarter, as the economy slowly reopened, but unemployment levels remain historic, as the US unemployment rate was
11.1% at the end of the June 2020. US Small Cap Equity led the market in the second quarter with a 25.4% return, as the consumer discretionary and energy sectors
exhibited strong rebounds from the first quarter fallout.
Asset Allocation Trends
With respect to policy targets, the Total Portfolio ended the latest quarter overweight Large Cap Equity and underweight Fixed Income, Small Cap Equity, Mid Cap
Equity and Covered Calls. All asset class weights remain within their policy target ranges.
Recent Investment Performance
The Total Portfolio outperformed its policy benchmark over the most recent quarter by 18 basis points, net of fees. The portfolio returned 4.3% after fees over the
1-year period, outperforming its benchmark by 1.3%. The portfolio also outperformed over the 3-year and 5-year periods by 23 and 7 basis points, respectively.
Recent Investment Performance
Quarter 1 Year 3 Year 5 Year
Total Portfolio (Gross of Fees)3 12.97 4.47 6.57 7.07
Total Portfolio (Net of Fees)2 12.92 4.27 6.45 6.89
Policy Benchmark1 12.74 2.95 6.22 6.82
Excess Return (Net) 0.18 1.32 0.23 0.07
Public DB $250M-$1B Peer Median 12.49 3.14 5.84 5.78
1 Policy Benchmark consists of 39% S&P 500 Index, 30% BBgBarc US Aggregate A+ Bond Index, 20% CBOE BXM Index, 7% S&P Midcap 400 Index, 4% S&P Smallcap 600 Index as of 9/30/2014. Prior to
9/30/2014 Policy Benchmark consisted of 45% S&P 500 Index, 43% BBgBarc US Aggregate A+ Bond Index, 8% S&P Midcap 400 Index, 4% S&P Small cap 600 Index. 2 Total fees for the Chicago Equity Partners Fixed Income Portfolio approximately 17 bps annually. 3 Total Gross of Fees amounts estimated using following manager fee schedule: Vanguard LCE = 4 bps, Vanguard MCE & SCE = 8 bps, Glenmede = 64 bps, CEP = 17 bps.
Page 2 of 7
158
Nevada Prepaid Total Portfolio
Performance and Market Values | As of June 30, 2020
Market Value 3 Mo 1 Yr 3 Yrs 5 Yrs 7 Yrs_
Nevada Prepaid Total Portfolio 308,724,298 12.9 4.3 6.4 6.9 7.8
With respect to policy targets, the Total Portfolio ended the latest quarter underweight Fixed Income and overweight Equities. Within Domestic Equity, Smallcap and Mid cap were underweight their target allocation, while Large cap equity was overweight its target allocation. Fixed Income is currently 1.1% below its30% target while the Covered Calls asset class was underweight its 20% target allocation.
1
1
Page 4 of 7
160
Nevada Prepaid Total Portfolio
Risk/Return Analysis | As of June 30, 2020
Page 5 of 7
161
Nevada Prepaid Total Portfolio
Manager Performance - Net of Fees | As of June 30, 2020
Market Value($)
QTD(%)
Rank1 Yr(%)
Rank3 Yrs
(%)Rank
5 Yrs(%)
Rank_
Vanguard - Large Cap Equity 130,779,234 20.5 45 7.5 23 10.7 20 10.7 12
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
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 10
September 17, 2020
Item: Meketa Investment Group Inc. Investment Monitoring Report for 529 Plans for the period ended June 30, 2020
Summary: In December of 2010 the Board hired Pension Consulting Alliance (PCA), now known as Meketa Investment Group Inc. (Meketa), to perform investment review services of the Nevada College Savings Plans. These services include an independent quarterly review of investment performance and fund monitoring of each underlying fund or portfolio within each of the college savings plans. In May of 2011, the Board adopted the 2011 Comprehensive Investment Policies for College Savings outlining the criteria for investment monitoring and analysis, including the establishment of a “Watch List” process. Attached is the quarterly report for the quarter ending June 30, 2020. In their report and memorandum regarding funds on “Watch” status, Meketa Investment Group Inc. is recommending the following changes to “Watch” status Removal from Watch Status
• None Initial Placement on Watch Status
• None Eric White with Meketa Investment Group will present the materials to the Board. Fiscal Impact: None by this action.
164
Staff recommended motion.
Move to approve and accept the Nevada 529 College Savings Plans Investment Monitoring Report prepared by Meketa Investment Group Inc. for the quarter ending June 30, 2020.
165
MEMORANDUM
BOSTON CHICAGO LONDON MIAMI NEW YORK PORTLAND SAN DIEGO
411 NW Park Avenue
Suite 401
Portland, OR 97209
503.226.1050
Meketa.com
TO: Nevada College Savings Plans
FROM: Eric White, CFA; Kay Ceserani; Stephanie Sorg;
Meketa Investment Group
DATE: September 17, 2020
RE: Review of Portfolios Qualifying for “Watch” Status
Summary
Meketa has conducted a review of the underlying funds in the Nevada College Savings Plans for the
period ending June 30, 2020.
Currently, three funds from the USAA Program remain on “Watch” status, and no additional funds
qualify for “Watch” status. These funds are listed below.
• USAA Growth
• USAA Value
• USAA Growth & Income
Currently, four funds from the Putnam 529 for America Program remains on “Watch” status, and no
additional funds qualify for “Watch” status. These funds are listed below.
• Putnam Small Cap Value
• GAA All Equity
• GAA Growth
• GAA Balanced
• GAA Conservative
The Vanguard 529 Program does not have any funds that qualify for “Watch” status, or are currently
on “Watch” status.
The SSgA Upromise 529 College Savings Plan does not have any funds that qualify for “Watch” status,
or are currently on “Watch” status.
The Wealthfront 529 College Savings Plan does not have any funds that qualify for “Watch” status, or
are currently on “Watch” status.
166
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
underperformed by (84) basis points. The recent quarter’s underperformance was due to the overlay
strategy allocation, poor stock selection within the High Yield sleeve, and an underweight allocation to
the US Small Cap Core Equity and International Equity sleeves. The fund’s High Yield sleeve (4.6% of
portfolio) trailed its benchmark by (690) basis points.
The GAA Balanced fund has seen its performance steady decline over the past 18-month period as its
short-term performance has now been in the Caution range for 15 consecutive months. Recent poor
performance has also affected the fund’s medium-term performance as it has now been in the Caution
range for eight months. Therefore, Meketa recommends that the Putnam GAA Balanced fund remain
on “Watch” status and be closely monitored over the coming periods.
Putnam GAA Conservative (2Q Combined Status Report – Page 55)
Since being placed on “Watch” status nine months ago, the Putnam GAA Conservative portfolio has
underperformed its custom benchmark by (2.5%). Over the most recent quarter, the Conservative fund
underperformed by (43) basis points. The recent quarter’s underperformance was due to the overlay
strategy allocation, in conjunction with manager selection in High Yield Fixed Income sleeve. The High
Yield sleeve (4.6% of the portfolio) underperformed the JPMorgan Developed High Yield Index by (7.1%).
The GAA Conservative fund has continued to struggle as its short-term performance has now been in
the Caution range for 15 consecutive months. Recent poor performance has also affected the fund’s
medium-term performance as it has now been in the Caution range for seven months. Therefore,
Meketa recommends that the Putnam GAA Conservative fund remain on “Watch” status and be closely
monitored over the coming periods.
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
No Funds qualify for “Watch” or are currently on “Watch.”
Wealthfront 529 Plan
No Funds qualify for “Watch” or are currently on “Watch.”
APPROVED FOR WATCH STATUS:
_______________________________
Zach Conine, State Treasurer
171
September 17, 2020
Page 7 of 7
Disclosures
WE HAVE PREPARED THIS REPORT (THIS “REPORT”) FOR THE SOLE BENEFIT OF THE INTENDED RECIPIENT (THE “RECIPIENT”).
SIGNIFICANT EVENTS MAY OCCUR (OR HAVE OCCURRED) AFTER THE DATE OF THIS REPORT AND THAT IT IS NOT OUR
FUNCTION OR RESPONSIBILITY TO UPDATE THIS REPORT. ANY OPINIONS OR RECOMMENDATIONS PRESENTED HEREIN
REPRESENT OUR GOOD FAITH VIEWS AS OF THE DATE OF THIS REPORT AND ARE SUBJECT TO CHANGE AT ANY TIME. ALL
INVESTMENTS INVOLVE RISK. THERE CAN BE NO GUARANTEE THAT THE STRATEGIES, TACTICS, AND METHODS DISCUSSED
HERE WILL BE SUCCESSFUL.
INFORMATION USED TO PREPARE THIS REPORT WAS OBTAINED FROM INVESTMENT MANAGERS, CUSTODIANS, AND OTHER
EXTERNAL SOURCES. WHILE WE HAVE EXERCISED REASONABLE CARE IN PREPARING THIS REPORT, WE CANNOT
GUARANTEE THE ACCURACY OF ALL SOURCE INFORMATION CONTAINED HEREIN.
CERTAIN INFORMATION CONTAINED IN THIS REPORT MAY CONSTITUTE “FORWARD - LOOKING STATEMENTS,” WHICH CAN
BE IDENTIFIED BY THE USE OF TERMINOLOGY SUCH AS “MAY,” “WILL,” “SHOULD,” “EXPECT,” “AIM”, “ANTICIPATE,” “TARGET,”
“PROJECT,” “ESTIMATE,” “INTEND,” “CONTINUE” OR “BELIEVE,” OR THE NEGATIVES THEREOF OR OTHER VARIATIONS
THEREON OR COMPARABLE TERMINOLOGY. ANY FORWARD - LOOKING STATEMENTS, FORECASTS, PROJECTIONS,
VALUATIONS, OR RESULTS IN THIS PRESENTATION ARE BASED UPON CURRENT ASSUMPTIONS. CHANGES TO ANY
ASSUMPTIONS MAY HAVE A MATERIAL IMPACT ON FORWARD LOOKING STATEMENTS, FORECASTS, PROJECTIONS,
VALUATIONS, OR RESULTS. ACTUAL RESULTS MAY THEREFORE BE MATERIALLY DIFFERENT FROM ANY FORECASTS,
PROJECTIONS, VALUATIONS, OR RESULTS IN THIS PRESENTATION.
PERFORMANCE DATA CONTAINED HEREIN REPRESENT PAST PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF
FUTURE RESULTS.
172
BOSTON CHICAGO LONDON MIAMI NEW YORK PORTLAND SAN DIEGO MEKETA.COM
Nevada College Savings Programs
September 17, 2020
2Q 2020 Investment Performance Status Report
173
MEKETA INVESTMENT GROUP
1. Summary of Fund Performance and Watch Status
2. Age-Based Risk/Return Analysis
3. Enrollment Date Risk/Return Analysis
Nevada College Savings Programs
Agenda
Page 2 of 28
174
Summary of Fund Performance andWatch Status
Page 3 of 28
175
MEKETA INVESTMENT GROUP
ProgramTotal
Funds^Positive Acceptable Caution Watch**
Vanguard 529 Plan
Number of Funds 15 13 1 1 --
Percentage 100% 86% 7% 7% 0%
Fund Status 2 2 -- -- --
Fund Status -- -- -- -- --
US Equity Funds 8 8 -- -- --
Intl Equity Funds 1 -- -- 1 --
Fixed Income Funds 5 4 1 -- --
Other Funds* 1 1 -- -- --
SSgA Upromise 529 Plan
Number of Funds 15 14 -- 1 --
Percentage 100% 93% 0% 7% 0%
Fund Status 1 -- -- -- --
Fund Status -- -- -- -- --
US Equity Funds 4 4 -- -- --
Intl Equity Funds 4 4 -- -- --
Fixed Income Funds 6 5 -- 1 --
Other Funds* 2 2 -- -- --
Vanguard 529 Program
• 93% of funds in the Vanguard Programhave either a Positive or Acceptable status
• Fund status changes:
– Two funds improved during the quarter
– No funds deteriorated during the quarter
SSgA Upromise 529 Program
• 93% of funds in the SSgA UpromiseProgram have either a Positive orAcceptable status
• Fund status changes:
– 1 fund improved during the quarter
– No funds deteriorated during the quarter
^Money Market funds not included*Includes Balanced, Commodities, REITs, and MLPs**Reflects funds currently on “Watch” status and new funds qualifying for “Watch” status
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Page 4 of 28
176
MEKETA INVESTMENT GROUP
ProgramTotal
Funds^Positive Acceptable Caution Watch**
USAA 529 Plan
Number of Funds 11 2 3 3 3
Percentage 100% 19% 27% 27% 27%
Fund Status 4 4 -- -- --
Fund Status 3 -- -- 3 --
US Equity Funds 5 2 -- -- 3
Intl Equity Funds 2 -- 2 -- --
Fixed Income Funds 4 -- 1 3 --
Other Funds* -- -- -- -- --
Putnam 529 for America
Number of Funds 16 7 0 4 5
Percentage 100% 44% 0% 25% 31%
Fund Status -- -- -- -- --
Fund Status 3 -- -- 2 1
US Equity Funds 5 4 -- -- 1
Intl Equity Funds 1 1 -- -- --
Fixed Income Funds 4 2 -- 2 --
Other Funds* 6 -- -- 2 4
USAA 529 Program
• 46% of funds in the USAA Program haveeither a Positive or Acceptable status
• Fund status changes:
– 4 funds improved during the quarter
– 3 funds deteriorated during the quarter
Putnam 529 Program
• 44% of funds in the Putnam Program haveeither a Positive or Acceptable status
• Fund status changes:
– No funds improved during the quarter
– 3 funds deteriorated during thequarter
^Money Market fund and NY Life Insurance not included*Includes Balanced, AR, Commodities, REITs, and MLPs**Reflects funds currently on “Watch” status and new funds qualifying for “Watch” status
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Page 5 of 28
177
MEKETA INVESTMENT GROUP
ProgramTotal
Funds^Positive Acceptable Caution Watch**
Wealthfront 529 Plan
Number of Funds 9 8 -- 1 --
Percentage 100% 89% 0% 11% 0%
Fund Status -- -- -- -- --
Fund Status -- -- -- -- --
US Equity Funds 2 2 -- -- --
Intl Equity Funds 2 1 -- 1 --
Fixed Income Funds 4 4 -- -- --
Other Funds* 1 1 -- -- --
Wealthfront 529 Program
• 89% of funds in the WealthfrontProgram have either a Positive orAcceptable status
• Fund status changes:
– No funds improved during thequarter
– No funds deteriorated during thequarter
^Money Market fund and NY Life Insurance not included*Includes Balanced, Commodities, REITs, and MLPs**Reflects funds currently on “Watch” status and new funds qualifying for “Watch” status
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Page 6 of 28
178
MEKETA INVESTMENT GROUP
Current status is based on evaluation results fromshort-term (rolling 12-months), medium-term (rolling36-month) analysis.
According to the Investment Status Schedule, theportfolio’s overall “Current Status” equals the loweststatus as achieved by one or more of the criteria duringthe quarter (see page Appendix for details).
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Vanguard 529 Plan: Summary of Fund Performance Status
PortfoliosPrior Quarter
StatusCurrent Quarter
Status
Passively Managed Funds
Vanguard 500 Index Fund Positive Positive
Vanguard Ttl Stock Mkt Indx Fund Positive Positive
Vanguard Value Index Fund Positive Positive
Vanguard Growth Index Fund Positive Positive
Vanguard Mid-Cap Index Fund Positive Positive
Vanguard Small Cap Index Fund Positive Positive
Vanguard Ttl Intl Stock Index Fund* Caution Caution
Vanguard Total Bond Market Fund Positive Positive
Vanguard Ttl Bond Market II Fund Positive Positive
Vanguard Ttl Intl Bond Market Fund Positive Positive
Actively Managed Funds
Vanguard US Growth Fund** On Watch Positive
Vanguard Windsor Fund On Watch Positive
Vanguard STAR Fund Positive Positive
Vanguard Infl-Prot Securities Fund Acceptable Acceptable
Vanguard High Yield Bond Fund Positive Positive
* Fund has been excluded from Watch status but remains below watch criteria** Vanguard Morgan Growth fund merged into the Vanguard US Growth fund to start 2Q 2019
Page 7 of 28
179
MEKETA INVESTMENT GROUP
Funds identified as “Currently on Watch” are those whoseWatch status has been approved by the State Treasurer’sOffice.
Funds identified as “Qualifying for Watch” have notnecessarily been approved as being on Watch by the StateTreasurer’s Office, but qualify for Watch according to theapproved Monitoring Criteria (see Appendix for details).
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Vanguard 529 Plan: Summary of Watch Status
PortfoliosCurrently on
Watch?Qualifies for
Watch?
Passively Managed Funds
Vanguard 500 Index Fund NO NO
Vanguard Ttl Stock Mkt Indx Fund NO NO
Vanguard Value Index Fund NO NO
Vanguard Growth Index Fund NO NO
Vanguard Mid-Cap Index Fund NO NO
Vanguard Small Cap Index Fund NO NO
Vanguard Ttl Intl Stock Index Fund* NOShort-Term
Medium-Term
Vanguard Total Bond Market Fund NO NO
Vanguard Ttl Bond Market II Fund NO NO
Vanguard Ttl Intl Bond Market Fund NO NO
Actively Managed Funds
Vanguard US Growth Fund** NO NO
Vanguard Windsor Fund NO NO
Vanguard STAR Fund NO NO
Vanguard Infl-Prot Securities Fund NO NO
Vanguard High Yield Bond Fund NO NO
* Fund has been excluded from Watch status but remains below watch criteria** Vanguard Morgan Growth fund merged into the Vanguard US Growth fund to start 2Q 2019
Page 8 of 28
180
MEKETA INVESTMENT GROUP
Current status is based on evaluation results from short-term (rolling 12-months), medium-term (rolling 36-month)analysis.
According to the Investment Status Schedule, the portfolio’soverall “Current Status” equals the lowest status asachieved by one or more of the criteria during the quarter(see page Appendix for details).
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
SSgA Upromise 529 Plan: Summary of Fund Performance Status
PortfoliosPrior Quarter
StatusCurrent Quarter
Status
Passively Managed Funds
SPDR S&P 500 ETF Trust Positive Positive
SPDR S&P Mid-Cap 400 ETF Trust Positive Positive
SPDR S&P 600 Small Cap ETF Positive Positive
SPDR Dow Jones REIT ETF Positive Positive
SPDR Dow Jones International Real Estate ETF Positive Positive
SPDR S&P Port Developed World ex-US ETF Positive Positive
SPDR S&P International Small-Cap ETF Positive Positive
Funds identified as “Currently on Watch” are those whoseWatch status has been approved by the State Treasurer’sOffice.
Funds identified as “Qualifying for Watch” have notnecessarily been approved as being on Watch by theState Treasurer’s Office, but qualify for Watch accordingto the approved Monitoring Criteria (see Appendix for
details).
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
SSgA Upromise 529 Plan: Summary of Watch Status
PortfoliosCurrently on
Watch?Qualifies for
Watch?
Passively Managed Funds
SPDR S&P 500 ETF Trust NO NO
SPDR S&P Mid-Cap 400 ETF Trust NO NO
SPDR S&P 600 Small Cap ETF NO NO
SPDR Dow Jones REIT ETF NO NO
SPDR Dow Jones International Real Estate ETF NO NO
SPDR S&P Port Developed World ex-US ETF NO NO
SPDR S&P International Small-Cap ETF NO NO
SPDR Portfolio Emerging Markets ETF NO NO
SPDR S&P Emerging Markets Small-Cap ETF NO NO
SPDR Portfolio Aggregate Bond ETF NO NO
SPDR Blmbg Barclays TIPS ETF NO NO
SPDR FTSE Intl Govt Infl-Protected Bond ETF NO Short-Term
SPDR Blmbg Barclays High Yield Bond ETF NO NO
SPDR Portfolio ST Corporate Bond ETF NO NO
SPDR Blmbg Barclays 1-3 Month T-Bill ETF NO NO
Page 10 of 28
182
MEKETA INVESTMENT GROUP
Current status is based on evaluation results fromshort-term (rolling 12-months), medium-term (rolling 36-month) analysis.
According to the Investment Status Schedule, theportfolio’s overall “Current Status” equals the lowest statusas achieved by one or more of the criteria during thequarter (see page Appendix for details.)
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
USAA 529 Plan: Summary of Fund Performance Status
PortfoliosPrior Quarter
StatusCurrent Quarter
Status
USAA Growth Fund On Watch On Watch
USAA Growth & Income Fund On Watch On Watch
USAA Value Fund On Watch On Watch
USAA Income Stock Fund On Watch Positive
USAA Small Cap Stock Fund On Watch Positive
USAA International Fund On Watch Acceptable
USAA Emerging Markets Fund On Watch Acceptable
USAA Income Fund Positive Caution
USAA Intermediate-Term Bond Positive Caution
USAA High Income Fund Acceptable Acceptable
USAA Short-Term Bond Fund Positive Caution
Page 11 of 28
183
MEKETA INVESTMENT GROUP
Funds identified as “Currently on Watch” are those whoseWatch status has been approved by the State Treasurer’sOffice.
Funds identified as “Qualifying for Watch” have notnecessarily been approved as being on Watch by theState Treasurer’s Office, but qualify for Watch accordingto the approved Monitoring Criteria (see Appendix fordetails).
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
USAA 529 Plan: Summary of Watch Status
PortfoliosCurrently On
Watch?Qualifies for
Watch?
USAA Growth Fund YESShort-Term
Medium-Term
USAA Growth & Income Fund YESShort-Term
Medium-Term
USAA Value Fund YESShort-Term
Medium-Term
USAA Income Stock Fund NO NO
USAA Small Cap Stock Fund NO NO
USAA International Fund NO NO
USAA Emerging Markets Fund NO NO
USAA Income Fund NO NO
USAA Intermediate-Term Bond Fund NO NO
USAA High Income Fund NO NO
USAA Short-Term Bond Fund NO NO
Page 12 of 28
184
MEKETA INVESTMENT GROUP
Current status is based on evaluation results fromshort-term (rolling 12-months), medium-term (rolling36-month) analysis.
According to the Investment Status Schedule, theportfolio’s overall “Current Status” equals the loweststatus as achieved by one or more of the criteria duringthe quarter (see page Appendix for details.)
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Putnam 529 for America Plan: Summary Of Fund Performance Status
* Fund has been excluded from Watch status but remains below watch criteria
Page 13 of 28
185
MEKETA INVESTMENT GROUP
PortfoliosCurrently on
Watch?Qualifies for
Watch?
Portfolios for Age/Goal Based
GAA All Equity YES Medium-Term
GAA Growth YESShort-Term
Medium-Term
GAA Balanced YESShort-Term
Medium-Term
GAA Conservative YESShort-Term
Medium-Term
Individual Fund Options
SPDR S&P 500 ETF NO NO
Putnam Equity Income Fund NO NO
Principal MidCap Blend Fund NO NO
Putnam Growth Opportunities Fund NO NO
Putnam Small Cap Value Fund YES Medium-Term
MFS Inst. International Equity Fund NO NO
Putnam Income Fund NO NO
Federated Hermes Short-Int. Gvt Fund* NO Medium-Term
Putnam High Yield Fund NO NO
Putnam Short Duration Bond Fund NO NO
Individual Fund Options
Putnam Fixed Income Absolute Return NO NO
Putnam Multi-Asset Absolute Return* NOShort-Term
Medium-Term
Funds identified as “Currently on Watch” are those whoseWatch status has been approved by the State Treasurer’sOffice.
Funds identified as “Qualifying for Watch” have notnecessarily been approved as being on Watch by theState Treasurer’s Office, but qualify for Watch accordingto the approved Monitoring Criteria (see Appendix fordetails).
Putnam 529 for America Plan: Summary of Watch Status
* Fund has been removed from Watch status but remains below watch criteria
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Page 14 of 28
186
MEKETA INVESTMENT GROUP
Wealthfront 529 Plan: Summary of Fund Performance Status
Current status is based on evaluation results from short-term (rolling 12-months), medium-term (rolling 36-month) analysis.
According to the Investment Status Schedule, the portfolio’s overall “Current Status” equals the lowest status as achieved by one or more of the criteria during the quarter (see page Appendix for details).
* Fund has been excluded from Watch status but remains below watch criteria
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
Page 15 of 28
187
MEKETA INVESTMENT GROUP
Wealthfront 529 Plan: Summary Of Watch Status
PortfoliosCurrently on
Watch?Qualifies for
Watch?
Passively Managed Funds
Vanguard Total Stock Market ETF NO No
Vanguard Dividend Appreciation ETF NO NO
Vanguard FTSE Developed Markets ETF* NOShort-Term
Medium-Term
Vanguard FTSE Emerging Markets ETF NO NO
Vanguard REIT ETF NO NO
iShares iBoxx $ Invst. Grade Corp. Bond ETF NO NO
iShares JP Morgan USD Em. Mkt. Bond ETF NO NO
Vanguard Short Treasury Bond ETF NO NO
Vanguard Short-Term Infl-Prot Securities ETF NO NO
Funds identified s “Currently on Watch” are those whoseWatch status has been approved by the State Treasurer’sOffice.
Funds identified as “Qualifying for Watch” have notnecessarily been approved as being on Watch by theState Treasurer’s Office, but qualify for Watch accordingto the approved Monitoring Criteria (see Appendix fordetails).
Nevada College Savings Programs
Summary of Fund Performance and Watch Status
* Fund has been excluded from Watch status but remains below watch criteria
WE HAVE PREPARED THIS REPORT (THIS “REPORT”) FOR THE SOLE BENEFIT OF THE INTENDED RECIPIENT (THE “RECIPIENT”).
SIGNIFICANT EVENTS MAY OCCUR (OR HAVE OCCURRED) AFTER THE DATE OF THIS REPORT AND THAT IT IS NOT OUR FUNCTION ORRESPONSIBILITY TO UPDATE THIS REPORT. ANY OPINIONS OR RECOMMENDATIONS PRESENTED HEREIN REPRESENT OUR GOODFAITH VIEWS AS OF THE DATE OF THIS REPORT AND ARE SUBJECT TO CHANGE AT ANY TIME. ALL INVESTMENTS INVOLVE RISK.THERE CAN BE NO GUARANTEE THAT THE STRATEGIES, TACTICS, AND METHODS DISCUSSED HERE WILL BE SUCCESSFUL.
INFORMATION USED TO PREPARE THIS REPORT WAS OBTAINED FROM INVESTMENT MANAGERS, CUSTODIANS, AND OTHER EXTERNALSOURCES. WHILE WE HAVE EXERCISED REASONABLE CARE IN PREPARING THIS REPORT, WE CANNOT GUARANTEE THE ACCURACY OFALL SOURCE INFORMATION CONTAINED HEREIN.
CERTAIN INFORMATION CONTAINED IN THIS REPORT MAY CONSTITUTE “FORWARD - LOOKING STATEMENTS,” WHICH CAN BEIDENTIFIED BY THE USE OF TERMINOLOGY SUCH AS “MAY,” “WILL,” “SHOULD,” “EXPECT,” “AIM”, “ANTICIPATE,” “TARGET,” “PROJECT,”“ESTIMATE,” “INTEND,” “CONTINUE” OR “BELIEVE,” OR THE NEGATIVES THEREOF OR OTHER VARIATIONS THEREON OR COMPARABLETERMINOLOGY. ANY FORWARD - LOOKING STATEMENTS, FORECASTS, PROJECTIONS, VALUATIONS, OR RESULTS IN THISPRESENTATION ARE BASED UPON CURRENT ASSUMPTIONS. CHANGES TO ANY ASSUMPTIONS MAY HAVE A MATERIAL IMPACT ONFORWARD LOOKING STATEMENTS, FORECASTS, PROJECTIONS, VALUATIONS, OR RESULTS. ACTUAL RESULTS MAY THEREFORE BEMATERIALLY DIFFERENT FROM ANY FORECASTS, PROJECTIONS, VALUATIONS, OR RESULTS IN THIS PRESENTATION.
PERFORMANCE DATA CONTAINED HEREIN REPRESENT PAST PERFORMANCE. PAST PERFORMANCE IS NO GUARANTEE OF FUTURERESULTS.
Nevada College Savings Programs
Disclosures
Page 28 of 28
200
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 11 September 17, 2020
Item: Nevada Prepaid Tuition 2021 contract prices, open enrollment dates, and fee schedule Summary: Under NAC 353B.200 the Board shall establish future contract prices, program open enrollment dates and certain program fees annually. Therefore, staff is recommending Board review and approval of the following items: a. Contract Pricing – Request approval of the attached 2021 contract prices. b. Open Enrollment – Staff is proposing open enrollment dates for 2021 to be November 1, 2020 through April 30, 2021. These dates are consistent with the program open enrollment dates observed in the past. c. Program Fees – Staff is not recommending any changes to existing program fees. Fiscal Impact: None by this action. Recommendation:
To accept and approve the proposed Nevada Prepaid Tuition 2021 contract prices, open enrollment dates, and fee schedule.
201
Nevada Prepaid Tuition Program 2021 Fee Chart Enrollment Fee $100 Fee charged for application processing and administration of contracts
Dishonored Payment Fee $25 Payments returned by a financial institution unpaid
Late Payment for Monthly Contract Payments $15 Assessed on monthly payments not received within the 15 day grace period
Delinquency Fee Rate 6.25% Assessed on any unpaid delinquent balance over 90 days
Late Payment Fee - Lump Sum Purchase $15 the first month
Additional 1% of balance including outstanding fees for each
additional 30 day period
Termination Fee $100 Fee charged for cancellation of a contract (involuntary and voluntary)
Fraud Penalty $250 Penalty for submitting fraudulent information on an Open Enrollment Form
Payment Option Change Fee $20 Fee charged for change in payment option (i.e., monthly to extended monthly, etc.)
Change of Tuition Plan Fee $20 Fee charged for changing the type of Prepaid Tuition plan originally purchased.
Change of Purchaser Fee $20 Fee charged to change the Purchaser on a Prepaid Tuition contract (waived due to death)
Change of Beneficiary Fee $20 Fee charged for a transfer of benefits to another qualified beneficiary (waived
if requested change is due to beneficiary death, disability or receipt of full scholarship)
Document Replacement Fee $7 Fee charged for Coupon Book, Welcome Pack, or Student Handbook replacement
Private/Out-of-State School Processing Fee $25
Fee charged to establish third-party billing at an institution for a qualified
beneficiary to a private and/or out-of-state school
Interest on Refund 0%
Interest on Monthly Payment Option 6.25% Rate of interest charged to contracts purchased in 2021 enrollment, paid in monthly installments
Early Pay-Off Discount 6.25% Rate of discount given when paying off the balance of a Prepaid Tuition monthly
installment contract with a lump sum payment
202
Nevada Prepaid Tuition Program Pricing Report for 2021 Open Enrollment Year
203
September 1, 2020 Board of Trustees of the College Savings Plans of Nevada Office of the State Treasurer 101 N. Carson Street, Suite 4 Carson City, Nevada 89701 Attention: Ms. Tara R. Hagan, Chief Deputy Treasurer Re: Nevada Prepaid Tuition Program Pricing Report for the 2021 Open Enrollment Year Dear Trustees: Gabriel, Roeder, Smith & Company (“GRS”) has performed the pricing for the Nevada Prepaid Tuition Program (“the Program”) for fiscal year 2021. The purpose of this report is to set the Program’s pricing for future contracts for the 2021 open enrollment year. This report presents:
• A calculation of the future pricing for new contracts in the Nevada Prepaid Tuition Program during the 2021 open enrollment year.
This report was prepared at the request of the State Treasurer’s Staff and is intended for use by the Program’s Board. This report may be provided to parties other than the Program’s Board only in its entirety. This report should not be relied on for any purpose other than the purpose described above. GRS is not responsible for unauthorized use of this report. The pricing results set forth in this report are based upon data and other information furnished by the Program, concerning plan benefits, Board’s funding policy, and current tuition and enrollment information of Nevada Colleges and Universities. We checked for internal reasonability and year-to-year consistency, but did not audit the data. We are not responsible for the accuracy or completeness of the information provided by the Program. There are currently no Actuarial Standards of Practice that specifically refer to prepaid tuition plans. We have followed the guidance from the Actuarial Standards of Practice on pensions due to its similar nature.
204
Board of Trustees of the College Savings Plans of Nevada September 1, 2020 Page 2
The major actuarial assumptions used in this analysis were adopted by and are the responsibility of the Program and the Program’s Board. GRS preformed a detailed experience study covering the Program’s non-economic experience from July 1, 2012 through June 30, 2017. Updated assumptions were adopted by the Board in conjunction with the study. Economic assumptions are reviewed annually. The latest review is contained in our letter dated June 18, 2020. We understand the Program has adopted the proposed assumptions from that letter for use in the 2021 open enrollment pricing and June 30, 2020 actuarial valuation report. We believe these assumptions are within a reasonable range and are in compliance with actuarial standards regarding pension calculations.
Future actuarial measurements may differ significantly from the current measurements presented in this report due to such factors as the following: Program experience differing from that anticipated by the economic or demographic assumptions; changes in economic or demographic assumptions; and changes in Program provisions or applicable law.
We believe that the actuarial methods used in this report are reasonable and appropriate for the purpose for which they have been used. In addition, because it is not possible or practical to consider every possible contingency, we may use summary information, estimates or simplifications of calculations to facilitate the modeling of future events. We may also exclude factors or data that are deemed to be immaterial.
This report is not a recommendation to anyone to participate in the Nevada Prepaid Tuition Program. GRS makes no representations or warranties to any person participating in or considering participation in the Program.
To the best of our knowledge, the information contained in this report is accurate and fairly presents the actuarial pricing of the Nevada Prepaid Tuition Program contracts for the 2021 open enrollment year based on the Board’s funding policy and administrative rules.
James R. Sparks is a Member of the American Academy of Actuaries (MAAA) and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained herein.
The signing individuals are independent of the program sponsor.
Respectfully submitted, Kenneth G. Alberts James R. Sparks, ASA, MAAA
KGA/JRS:sc
205
Nevada Prepaid Tuition Program
Table of Contents
Page Section A Pricing
Four-Year Senior University ................................................................................................ A-1 Two-Year Senior University ................................................................................................. A-2 One-Year Senior University ................................................................................................. A-3 Two-Year Community College and Two-Year Senior University ......................................... A-4 Two-Year Community College ............................................................................................. A-5
* Discounting assumes half the tuition is payable 2.5 months after the valuation date and half is payable 7.5 months after the valuation date.
^ If the Spot-Rate Interest Rates are less than the Investment Return Assumption, an implicit margin is created.
Pricing includes utilization of credits assumption.
The 2019/2020 Price is a floor for the 2020/2021 Proposed Price.
2-Year Purchase Costs
Grade/Age at
Purchase
212
SECTION B
METHODS AND ASSUMPTIONS
213
Nevada Prepaid Tuition Program B-1
Nevada Prepaid Tuition Program June 30, 2020 Pricing Assumptions (2021 Open Enrollment Year)
Economic Assumptions
Price Inflation (Implicit Assumption):
2.00%
Assumed Rate of Investment Return, Net of Investment Fees:
5.25%
Interest Rate for Payment Plans: 6.25%
Assumed Rate of Tuition Increases:
o Short-Term See Table Below
Rate of Tuition Increases 2021-22 2022-23 2023-24
4-Year Colleges 2.80% 2.80% 2.50%
2-Year Colleges 2.80% 2.80% 2.50%
o Long-Term 3.50% (2-year colleges)/4.00% (4-year colleges) for each subsequent school year.
The rates above for 2021-22 and 2022-23 are based on the 2018 HEPI Index. The rate above for 2023-24 is based on the 2019 HEPI Index.
Annual Tuition 2019/20 2020/21
4-Year Colleges $6,990.00 $7,267.50
2-Year Colleges $3,082.50 $3,202.50
Matriculation/Credit Utilization
Utilization of Credits*: Benefit payments are based on the following schedule in accordance with the type of Contract and the expected Payout Year.
Type of First Second Third Fourth Fifth Sixth
Contract Year Year Year Year Year Year
4-Year University Contracts (post-2010) 20% 20% 20% 15% 15% 10%
2-Year CC plus 2-Year Univ Contracts (post-2010) 18% 18% 18% 18% 14% 14%
2-Year University Contracts 25% 25% 20% 15% 10% 5%
2-Year Community College Contracts 30% 25% 15% 10% 10% 10%
1-Year University Contracts 100%
* Pricing is modeled assuming two payments per year (one in mid-September, one in mid-February).
214
Nevada Prepaid Tuition Program B-2
Nevada Prepaid Tuition Program June 30, 2020 Pricing Assumptions (2021 Open Enrollment Year)
Refund Rates
For pricing, it is assumed 100% of beneficiaries will matriculate in their expected matriculation year and will utilize 100% of their purchased credits.
Other Assumptions
Election of Program Changes: None.
Election of Change of Beneficiary: None.
Contract Terms: No changes in contract terms are assumed, once initiated.
Timing of Tuition Payments: Two payments per year (one in the fall, one in the winter) for beneficiaries have matriculated.
Pricing Methodology
Based on the current tuition rate increased to assumed year of payment (using tuition increase assumption) and discounted to payment date based on the net investment return assumption.
Implicit Risk Premium
An implicit risk premium is created by using discount rates from a yield curve with spot rates that are on average lower than the assumed rate of investment return. Based on the most recent valuation results and funding guidelines, no implicit risk premium was included in this year’s pricing.
Explicit Risk Premium
An explicit risk premium is created when pricing is increased by a specific percentage for risk. Based on the most recent valuation results and funding guidelines, no explicit risk premium was included in this year’s pricing.
215
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 12 September 17, 2020
Item: Nevada Prepaid Tuition 2021 Master Agreement amendments. Summary: NRS 353B.100 requires the Board to establish a prepaid tuition contract in accordance with the Nevada Revised Statutes. This document referred to as the “Master Agreement,” delineates the rules and policies for the Nevada Prepaid Tuition Plan (“Plan”), which is adopted by the Board and meets the federal 529 requirements for disclosure of the program. Fiscal Impact: Approximately $350 for printing costs. Recommendation:
To accept and approve the 2021 Nevada Prepaid Tuition Master Agreement and direct the Treasurer’s Office to administer all contracts within the provisions set forth in this Master Agreement.
216
1
Chapter III:
2020 2021 Master
Agreement
Before you purchase a Nevada Prepaid Tuition
Contract, please carefully read the Master
Agreement, which explains the rules of the
Program. When you sign an Enrollment form, you
are agreeing to the terms of the Master Agreement.
1. DEFINITIONS
Definitions. Terms used in this Master Agreement
and the Enrollment form for purchase of a Contract
have the following meaning:
A. "529 Plan" A qualified prepaid tuition program
or college savings plan within the definition of IRS
Section 529 of the Code.
B. "Academic Year" Undergraduate school year
beginning the first Semester, term, or quarter after
July 15th of any year.
C. "Basic Registration Fee" The charge for the
basic per Credit Hour of course work as established
by the Nevada Board of Regents excluding all
other fees or charges.
D. "Beneficiary" or "Qualified Beneficiary"
The child designated in the Program Contract
Enrollment form to receive the Educational
Benefits of the Program.
E. "Benefit Use Year" The year of Matriculation
to college, which the Beneficiary may begin
drawing on Educational Benefits in the form of
Credit Hours from the Contract.
F. "Board" The Board of Trustees of the College
Savings Plans of Nevada.
G. "Cancellation of Contract" A voluntary
request from the Purchaser to terminate the
Contract and request a refund.
H. "Clock Hours" College level credit course
benefit requested to be converted to Credit Hours
for payment to an Eligible Educational Institution
that charges tuition based on hours spent in class
time rather than Semester Credit Hours. Clock
Hours are converted based on the Free Application
for Federal Student Aid (FASFA) guidelines for the
current academic year.
I. "Code" Internal Revenue Code of 1986, as
amended.
J. "Community College" An Eligible Educational
Institution which grants a two-year degree.
K. "Contract" A Program Contract accepted by
the Program Office, including the Master
Agreement, the Program Description, the
Enrollment Form, and the Plan and payment option
selected by the Purchaser.
L. "Contract Benefits" In-State Credit Hours
purchased for use by the Beneficiary.
M. "Credit Hours" Semester Credit Hours
established by the Nevada Board of Regents. Credit
hours paid for by the Program are intended for
undergraduate studies, and in some instances the
undergraduate benefit may be applied toward
graduate-level work once a Beneficiary attains an
undergraduate degree if he/she has credit hours left
in the Prepaid Tuition Contract when he/she
graduates from college and uses the remaining
credit hours prior to the original Contract
Expiration Date.
N. "Custodian" Person who is designated with the
rights of the Purchaser on a Contract where the
Purchaser is a minor or the Contract was acquired
by way of UGMA or UTMA and the Custodian is
required to act under the terms of the UGMA or
UTMA. The Custodian is responsible for
performing all duties of the Purchaser.
O. "Disabled" or "Disability" Limitation of
individual’s physical or mental abilities resulting
from an injury or disease which renders the
individual incapable of participating in the Program
as either a Purchaser or Beneficiary.
P. "Distribution" Payment by the Program to the
Beneficiary's Eligible Educational Institution
toward Credit Hours, as authorized by the Contract
Purchaser.
Q. "Down-payment" Minimum down payment of
$1,000.00 toward the total purchase price of a 5 217
2
year monthly, 10 year monthly, or extended
monthly payment plan Contract at the time of
enrollment.
R. "Eligible Educational Institution" Includes
accredited postsecondary educational institutions
offering credit towards an associate’s degree, a
bachelor’s degree, professional degree, or another
recognized postsecondary credential, and certain
postsecondary vocational and proprietary
institutions. The institution must be recognized by
the U.S. Department of Education as eligible to
participate in federal student financial aid
programs. See www.fafsa.ed.gov for additional
information.
S. “Expiration Date” The date in which contract
benefits conclude and can no longer be paid. The
beneficiary has six (6) years from the expected high
school graduation date to use the Contract benefits.
Extensions are only allowed per Nevada
Administrative Code outlined in NAC 353B.210.
T. "Family Member" Member of the family as
set forth in IRS Code Section 529(e)(2) which
includes a son or daughter, or a descendant of
either; a stepson or stepdaughter or a descendant of
either; a brother, sister, stepbrother, or stepsister;
the father or mother, or an ancestor of either; a
stepfather or stepmother; a son or daughter of a
brother or sister; a brother or sister of the father or
mother; a son-in-law, daughter-in-law, father-in-
law, mother-in-law, brother-in-law, or sister-in-
law; the spouse of the Beneficiary or the spouse of
any individual listed above; and a first cousin. A
legally adopted child or foster child is also treated
as a Family Member, as is a brother or sister by
half-blood.
U. "Fiscal Year" Time period from July 1st to
June 30th (inclusive) of the next calendar year.
V. "Gift Contribution" Contribution or payment
by a Person who is not the original Contract
Purchaser in connection with an established
Contract.
W. "Giftor" An individual authorized by the
Purchaser to make a Gift Contribution(s) to the
Contract.
X. “Graduate-Level” Post baccalaureate
coursework taken by the Beneficiary in order to
obtain a master’s, professional, or doctorate degree.
Y. "Guardian" An adult authorized to make
decisions on a Contract owned by a minor who
becomes the Purchaser due to death of the original
Purchaser or other legal action without a designated
Purchaser Legal Successor.
Z. "Investment Manager(s)" The Investment
Manager(s) is/are selected by the Board and
administer Program assets in accordance with the
guidelines and objectives contained in the
Program’s Investment Policy. The detailed
investment policy is located onat the website maintained by the Office of the State
Treasurer.www.NVPrepaid.gov.
AA. "Lump Sum Payment" Payment in full for
the Plan at the time of enrollment in the Program
with the Contract accepted by the Program
administrator.
BB. "Mandatory Fee" Any fee, other than
charges for Credit Hours, which a public
educational institution requires all students to pay
as a condition of enrollment in such institution,
including but not limited to class specific fees,
health fees, or technology fees. These examples are
Document Replacement Fee (for example, a payment coupon book)
$ 7
Late Fee for Lump Sum Plans $ 15 for 1st
month (plus 1% per
month of outstanding balance for
additional months)
Late Fee for Monthly Plans
$ 15 per month
Delinquency Fee on any payments over 90 days past due
6.25% per annum
(applied to overdue amount) Out-of-State School Processing Fee $ 25
Payment Option Change Fee $ 20
Plan Conversion Fee $ 20
Change of Purchaser Fee $ 20
Dishonored Payment Fee $ 25
Change of Beneficiary Fee $ 20
Contract Termination Fee $100
Fraud Penalty $250
Interest on Monthly Payment Option 6.25%
Early Pay-off Discount 6.25%
Interest on Refunds 0%
Program Fee Chart
NOTE: The Board, in its sole discretion, may change existing Program Fees or impose
future administrative fees without notice. Program Fees are always published in the
Program’s Master Agreement located on the website maintained by the Office of the
State Treasurer.our website at: www.NVprepaid.gov.
236
237
1
THE BOARD OF TRUSTEES OF THE COLLEGE SAVINGS PLANS OF NEVADA
Agenda Item 13
September 17, 2020
Item: Board will receive an update by Victory Capital
Management following the one-year acquisition of the USAA 529 Plan; the topics covered will include:
• Update on transition in conjunction with Ascensus
• Marketing Overview • Investment Overview
Summary: CEO Dave Brown and other Victory Capital Management staff will provide the Board with an update on the USAA 529 plan following the acquisition over one-year ago. The presentation will focus on the transitional services and digital update, and updates on plan metrics, marketing, investments. Fiscal Impact: None This is an information item only and no action is required.
238
USAA 529 College Savings Plan® Update
College Savings Board of Trustees
September 17, 2020
20200915-1329026
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
20200915-1329026
240
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.
20200915-1329026
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
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
242
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
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
243
Transition Services & Digital Update
6
20200915-1329026
244
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
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
245
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.
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
246
Overall Project Milestones Remaining
9
Q4: Website Go Live
Pre-registration email distributed
Continued User Acceptance Testing
Ascensus Requirement Clarification/Design
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
247
Welcome and Navigation Support
10Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
Screenshots for illustrative purposes only, subject to change.
20200915-1329026
248
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
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
249
Dashboard/Home Page
12Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
For illustrative purposes only, not indicative of any actual product, client or account.
Nothing on this page should be constructed as a recommendation of any
investment, investment product or strategy
20200915-1329026
250
Access to Advice & Support
13
The “help” question button is present on every page and makes it easy to
chat, see phone wait times, or enable co-browsing with a representative.
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
Screenshots for illustrative purposes only, subject to change.
20200915-1329026
251
New Digital Page: 529 Savings Plan Homepage
14Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
Screenshots for illustrative purposes only, subject to change.
20200915-1329026
252
New Digital Page: 529 Savings Plan Advantages
15Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
Screenshots for illustrative purposes only, subject to change.
20200915-1329026
253
New Digital Page: USAA® 529 Distinguished Valor
Matching Grant Program
16Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
254
College Savings Tool
17Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
For illustrative purposes only, not indicative of any actual product, client or account.
Nothing on this page should be constructed as a recommendation of any
investment, investment product or strategy
20200915-1329026
255
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
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
256
529 Plan & Marketing Update
19
20200915-1329026
257
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
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
258
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
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
259
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
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
260
2H2020 529 Marketing Objectives & Tactics
23
Serve the educational needs of the military community
Objectives
• Continue to drive awareness of the USAA 529 College Savings Plan® in Nevada and nationally.
• Communicate Victory Capital’s value proposition for members with a focus on the 529 plan and Distinguished Valor Matching Grant Program.
• Support financial readiness for the military community
Tactics
• Launch new paid media campaign
• Focus on member awareness to drive traffic to 529 pages in partnership with USAA®
• Create back to school and holiday gifting campaign focused on supporting higher education
• Generate awareness of 529 through social B2C Channels
• Provide college planning guidance
• Deliver enhanced digital user experience through new web platform scheduled to launch later this year
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
261
Financial Readiness
24
➢ Victory Capital made a donation on 529 Day (May
29th) to MCEC to support the military community
and drive engagement among 529 plan holders
➢ Exploring opportunities to partner with MCEC to
support financial readiness
A key component of our financial readiness program
will be the development of a series of compelling
video case studies. These will feature members of
the military community sharing their financially based
journeys, from transitioning from active military duty
to civilian life to tackling major financial goals.
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
262
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)
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
263
USAA® Q2 Email Metrics
26
USAA Marketing Activities
April 2020 Results
Email Opens Open
Rate
Clicks Click
Rate
529 74k 19.9% 1.1k 0.31%
529
Nevada
0.1k 51.4% 5 2.34%
May 2020 Results
Email Opens Open
Rate
Clicks Click
Rate
529 96k 22.1 1.5 0.34
529
Nevada
39 26.9% 3 2.07
June 2020 Results
Email Opens Open
Rate
Clicks Click
Rate
529 438k 15.2% 2k 0.4%
529
Nevada
27 18.5% 5 3.4%
Summary:
➢ Targeted message to the right audience
at the right time continues to drive high
open rates for Nevada emails.
➢ Messages encouraged automatic
investment plans across new accounts
and periodic reviews to increase
contribution amounts.
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
264
Victory Capital Q2 Email Metrics
27
Victory Capital Marketing Activities
May 2020 Results
Email Delivered Open
Rate
Click
Rate
529 Day –
General
Audience
131,656 28.3% 0.3%
529 Day _
AIP
100,253 51% 0.8%
529 Day –
No AIP
71,584 33.8% 0.8%
Summary:
➢ Successful subject lines led to above
industry standard open rates for 529
emails.
➢ Optimize strong open rates to drive
increased click rates.
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
265
Victory Capital Social Media
28
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.
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
266
2020 Marketing Themes
29
Q3 • Back to
School Campaign
Q4 • Gift of
Education
• Planning ahead
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc.
20200915-1329026
267
Q2 2020 Investment Plan
30
20200915-1329026
268
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
32
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc. 20200915-1329026
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.
33
Victory Capital Presentation to Nevada College Savings Plans Board regarding the 529 Plan offered by Victory Capital Services, Inc. 20200915-1329026