Michigan 529 Advisor Plan

Fees & Expenses

The information below describes the fees and expenses that you would pay if you contribute to a particular investment portfolio in the Michigan 529 Advisor Plan. These fees are indirectly paid out of the assets of your account. Except for the fees listed below, there are currently no other fees, charges or penalties imposed by or payable to the Plan in connection with opening or maintaining an account.


View Fees & Expenses Options

Class A Units:

Age-Based Investment Portfolios
Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees(5) Maximum Initial Sales Charge(4)
Age Band 0‑4 0.49% 0.32% 0.25% 0.00% 0.05% 1.11% 4.25%
Age Band 5‑8 0.48% 0.32% 0.25% 0.00% 0.05% 1.10% 4.25%
Age Band 9‑10 0.46% 0.32% 0.25% 0.00% 0.05% 1.08% 4.25%
Age Band 11‑12 0.41% 0.32% 0.25% 0.00% 0.05% 1.03% 4.25%
Age Band 13‑14 0.38% 0.32% 0.25% 0.00% 0.05% 1.00% 4.25%
Age Band 15 0.32% 0.32% 0.25% 0.00% 0.05% 0.94% 4.25%
Age Band 16 0.28% 0.32% 0.25% 0.00% 0.05% 0.90% 4.25%
Age Band 17 0.22% 0.32% 0.25% 0.00% 0.05% 0.84% 4.25%
Age Band 18+ 0.17% 0.32% 0.25% 0.00% 0.05% 0.79% 4.25%
Target Risk Investment Portfolios
Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees(5) Maximum Initial Sales Charge(4)
Capital Appreciation Portfolio 0.49% 0.32% 0.25% 0.00% 0.05% 1.11% 4.25%
Conservative Allocation Portfolio 0.17% 0.32% 0.25% 0.00% 0.05% 0.79% 4.25%
Multi-Fund Investment Portfolio
Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees(5) Maximum Initial Sales Charge(4)
Nuveen Alternative Income Portfolio 0.67% 0.32% 0.25% 0.00% 0.05% 1.29% 4.25%

 

Individual Fund Investment Portfolios

Domestic Equity Portfolios

Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees(5) Maximum Initial Sales Charge(4)
TIAA Large Cap U.S. Equity Index Portfolio 0.05% 0.32% 0.25% 0.00% 0.05% 0.67% 4.25%
Santa Barbara Dividend Growth Portfolio 0.66% 0.32% 0.25% 0.00% 0.05% 1.28% 4.25%
TIAA Large Cap Value Portfolio 0.41% 0.32% 0.25% 0.00% 0.05% 1.03% 4.25%
Harbor Capital Appreciation Portfolio 0.57% 0.32% 0.25% 0.00% 0.05% 1.19% 4.25%
Ariel Portfolio 0.72% 0.32% 0.25% 0.00% 0.05% 1.34% 4.25%
TIAA U.S. Small Cap Portfolio 0.42% 0.32% 0.25% 0.00% 0.05% 1.04% 4.25%

Global / International Equity Portfolios

Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees(5) Maximum Initial Sales Charge(4)
Harding Loevner Global Equity Portfolio  0.92% 0.32% 0.25% 0.00% 0.05% 1.54% 4.25%
Oakmark International Portfolio 0.81% 0.32% 0.25% 0.00% 0.05% 1.43% 4.25%
DFA Emerging Markets Portfolio 0.53% 0.32% 0.25% 0.00% 0.05% 1.15% 4.25%

Fixed Income Portfolios

Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees(5) Maximum Initial Sales Charge(4)
Metwest Total Return Bond Portfolio 0.38% 0.32% 0.25% 0.00% 0.05% 1.00% 4.25%
Nuveen Strategic Income Portfolio 0.50% 0.32% 0.25% 0.00% 0.05% 1.12% 4.25%
Nuveen Inflation-Linked Portfolio 0.34% 0.32% 0.25% 0.00% 0.05% 0.96% 4.25%

Social Choice Portfolios

Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees(5) Maximum Initial Sales Charge(4)
TIAA Social Choice Equity Portfolio 0.19% 0.32% 0.25% 0.00% 0.05% 0.81% 4.25%
TIAA Social Choice Bond Portfolio 0.40% 0.32% 0.25% 0.00% 0.05% 1.02% 4.25%

 

Real Assets Portfolio

Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees(5) Maximum Initial Sales Charge(4)
Nuveen Real Asset Income Portfolio 0.19% 0.32% 0.25% 0.00% 0.05% 0.81% 4.25%

Short Term / Cash Portfolio

Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees(5) Maximum Initial Sales Charge(4)
Principal Plus Interest Portfolio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

 

(1) Although the Program Manager Fee and the State Administrative Fee are deducted from an Investment Portfolio, not from your Account, each Account in the Investment Portfolio indirectly bears its pro rata share of the Program Manager Fee and the State Administrative Fee, as these fees reduce the Investment Portfolio’s return.

(2) Each Investment Portfolio (with the exception of the Principal Plus Interest Option) pays the Program Manager a fee at an annual rate of 0.32% (32 basis points) of the average daily net assets of the Investment Portfolio.

(3) Each Investment Portfolio (with the exception of the Principal Plus Interest Option) pays to the Michigan Department of Treasury a State Administrative Fee at an annual rate of 0.05% (5 basis points) of the average daily net assets of the Investment Portfolio. The State Administrative Fee is used to maintain or enhance Michigan’s qualified tuition programs.

(4) The percentages set forth in this column are based on the expense ratios of the mutual funds in which an Investment Portfolio invests. The amounts are calculated using the expense ratio reported in each mutual fund's most recent prospectus available prior to the date of this Disclosure Booklet and weighted according to the Investment Portfolio’s allocation among the mutual funds in which it invests. Although these expenses are not deducted from an Investment Portfolio’s assets, each Investment Portfolio (other than the Principal Plus Interest Portfolio, which does not invest in mutual funds) indirectly bears its pro rata share of the expenses of the mutual funds in which it invests, as these expenses reduce such mutual fund's return.

(5) These figures represent the estimated weighted annual expense ratios of the mutual funds in which an Investment Portfolio invests plus Program Manager Fee and the State Administrative Fee.

Class C Units:

Age-Based Investment Portfolios
Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees(5) CDSC(4)
Age Band 0‑4 0.49% 0.32% 0.25% 0.75% 0.05% 1.86% 1.00%
Age Band 5‑8 0.48% 0.32% 0.25% 0.75% 0.05% 1.85% 1.00%
Age Band 9‑10 0.46% 0.32% 0.25% 0.75% 0.05% 1.83% 1.00%
Age Band 11‑12 0.41% 0.32% 0.25% 0.75% 0.05% 1.78% 1.00%
Age Band 13‑14 0.38% 0.32% 0.25% 0.75% 0.05% 1.75% 1.00%
Age Band 15 0.32% 0.32% 0.25% 0.75% 0.05% 1.69% 1.00%
Age Band 16 0.28% 0.32% 0.25% 0.75% 0.05% 1.65% 1.00%
Age Band 17 0.22% 0.32% 0.25% 0.75% 0.05% 1.59% 1.00%
Age Band 18+ 0.17% 0.32% 0.25% 0.75% 0.05% 1.54% 1.00%
Target Risk Investment Portfolios
Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees CDSC(4)
Capital Appreciation Portfolio 0.49% 0.32% 0.25% 0.75% 0.05% 1.86% 1.00%
Conservative Allocation Portfolio 0.17% 0.32% 0.25% 0.75% 0.05% 1.54% 1.00%
Multi-Fund Investment Portfolio
Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees CDSC(4)
Nuveen Alternative Income Portfolio 0.67% 0.32% 0.25% 0.40% 0.05% 1.69% 1.00%

 

Individual Fund Investment Portfolios

Domestic Equity Portfolios

Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees CDSC(4)
TIAA Large Cap U.S. Equity Index Portfolio 0.05% 0.32% 0.25% 0.40% 0.05% 1.07% 1.00%
Santa Barbara Dividend Growth Portfolio 0.66% 0.32% 0.25% 0.40% 0.05% 1.68% 1.00%
TIAA Large Cap Value Portfolio 0.41% 0.32% 0.25% 0.40% 0.05% 1.43% 1.00%
Harbor Capital Appreciation Portfolio 0.57% 0.32% 0.25% 0.40% 0.05% 1.59% 1.00%
Ariel Portfolio 0.72% 0.32% 0.25% 0.40% 0.05% 1.74% 1.00%
TIAA U.S. Small Cap Portfolio 0.42% 0.32% 0.25% 0.40% 0.05% 1.44% 1.00%

Global / International Equity Portfolios

Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees CDSC(4)
Harding Loevner Global Equity Portfolio  0.92% 0.32% 0.25% 0.40% 0.05% 1.94% 1.00%
Oakmark International Portfolio 0.81% 0.32% 0.25% 0.40% 0.05% 1.83% 1.00%
DFA Emerging Markets Portfolio 0.53% 0.32% 0.25% 0.40% 0.05% 1.55% 1.00%

Fixed Income Portfolios

Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees CDSC(4)
Metwest Total Return Bond Portfolio 0.38% 0.32% 0.25% 0.40% 0.05% 1.40% 1.00%
Nuveen Strategic Income Portfolio 0.50% 0.32% 0.25% 0.40% 0.05% 1.52% 1.00%
Nuveen Inflation-Linked Portfolio 0.34% 0.32% 0.25% 0.40% 0.05% 1.36% 1.00%

Social Choice Portfolios

Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees CDSC(4)
TIAA Social Choice Equity Portfolio 0.19% 0.32% 0.25% 0.40% 0.05% 1.21% 1.00%
TIAA Social Choice Bond Portfolio 0.40% 0.32% 0.25% 0.40% 0.05% 1.42% 1.00%

 

Real Assets Portfolio

Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees CDSC(4)
Nuveen Real Asset Income Portfolio 0.83% 0.32% 0.25% 0.40% 0.05% 1.85% 1.00%

Short Term / Cash Portfolio

Fees and Expenses
  Annual Asset-Based Fees and Expenses Sales Charges
Investment Portfolio Estimated Underlying Fund Expenses(1) Program Management Fee(2)(3) Service Fee Distribution Fee State Admin Fee(3) Total Annual Asset-Based Fees CDSC(4)
Principal Plus Interest Portfolio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

 

(1) Estimated Underlying Fund Expenses are based on information reported in the most recent prospectuses for the Underlying Funds that were available prior to the printing of this Disclosure Booklet, as it may be supplemented from time to time. The estimated Underlying Fund Expenses for each age-band of the Age-Based Investment Portfolio, each Target Risk Portfolio and the Multi-Fund Portfolio reflect the weighted average of the estimated Underlying Fund Expenses for each Underlying Fund in which the Investment Portfolios invest based on their respective target asset allocations.

(2) The Principal Plus Interest Portfolio does not pay a Program Management Fee. TIAA-CREF Life Insurance Company, the issuer of the Funding Agreement in which this Investment Portfolio invests and an affiliate of TFI, makes payments to TFI, as Program Manager. This payment, among many other factors, is considered by the issuer when determining the interest rates credited under the Funding Agreement.

(3) Although the Program Management Fee and the State Administrative Fee are deducted from an Investment Portfolio, not from your Account, each Account with Units in the Investment Portfolio indirectly bears its pro rata share of the Program Management Fee and the State Administrative Fee as these fees reduce the Investment Portfolio’s return. The State Administrative Fee is paid directly to the State to administer and maintain the State’s qualified tuition programs.

(4) Class C Units that are redeemed to satisfy a withdrawal or Rollover within 6 months of purchase are subject to the CDSC. See “FEES, EXPENSES AND SALES CHARGES — Sales Charges” in the Disclosure Booklet for additional information.

The following examples are intended to help you compare the cost of investing in Class A or Class C Units of the various Investment Portfolios with the costs of investing in other Section 529 plans.

The Examples assume: (1) you invest $10,000 in the noted class of Units in the noted Investment Portfolio for the time periods indicated; (2) your investment has a 5% return each year; (3) the Investment Portfolio’s operating expenses remain the same (including the operating expenses of the Underlying Fund(s)); (4) all Units redeemed, if any as noted, are used to pay Qualified Higher Education Expenses (the table does not consider the impact of any potential state or federal taxes on the redemption); (5) you pay the applicable maximum Initial Sales Charge on Class A Units and any CDSC applicable to Units invested for the applicable periods in Class C Units; and (6) for the Class C Units Example, the Class C Units converted to Class A Units at the end of sixth year and were thereafter subject to the costs associated with Class A Units.

Although your actual costs may be higher or lower, the Examples show what your costs would be based on these assumptions.


Class A Units

Regardless of whether you do or do not redeem your Units at the end of each Period

Investment Cost Example
  Year 1* Year 3 Year 5 Year 10
Age-Based Investment Portfolio
Age Band 0‑4 $534 $765 $1,013 $1,725
Age Band 5‑8 $533 $762 $1,008 $1,714
Age Band 9‑10 $531 $756 $998 $1,691
Age Band 11‑12 $526 $740 $972 $1,636
Age Band 13‑14 $523 $731 $956 $1,602
Age Band 15 $517 $713 $925 $1,535
Age Band 16 $513 $701 $904 $1,489
Age Band 17 $507 $683 $873 $1,421
Age Band 18+ $503 $667 $847 $1,364
Target Risk Portfolios
Capital Appreciation Portfolio $534 $765 $1,013 $1,725
Conservative Allocation Portfolio $503 $667 $847 $1,364
Multi-Fund Investment Portfolio
Nuveen Alternate Income Portfolio $552 $819 $1,106 $1,923
Individual Fund Portfolios
TIAA Large Cap U.S. Equity Index Portfolio $491 $631 $783 $1,226
Santa Barbara Dividend Growth Portfolio $551 $816 $1,101 $1,912
TIAA Large Cap Value Portfolio $526 $740 $972 $1,636
Harbor Capital Appreciation Portfolio $542 $789 $1,055 $1,813
Ariel Portfolio $557 $834 $1,132 $1,977
TIAA U.S. Small Cap Portfolio $527 $743 $977 $1,647
Harding Loevner Global Equity Portfolio $576 $894 $1,234 $2,192
Oakmark International Portfolio $565 $861 $1,178 $2,074
DFA Emerging Markets Portfolio $538 $777 $1,034 $1,769
Metwest Total Return Bond Portfolio $523 $731 $956 $1,602
Nuveen Strategic Income Portfolio $535 $768 $1,019 $1,736
Nuveen Inflation-Linked Portfolio $519 $719 $935 $1,557
TIAA Social Choice Equity Portfolio $504 $674 $857 $1,387
TIAA Social Choice Bond Portfolio $525 $737 $967 $1,624
Nuveen Real Asset Income Portfolio $567 $867 $1,188 $2,096
Principal Plus Interest Portfolio $0 $0 $0 $0

* Assumes that the maximum Initial Sales Charge of 4.25% was paid for the Class A Units, with the exception of Class A Units in the Principal Plus Interest Portfolio, which are not subject to an Initial Sales Charge.

Class A

Class A Units (with certain exceptions) are subject to an Initial Sales Charge at the time of purchase. The amount of the Initial Sales Charge generally depends on the dollar amount of the contribution. When an Account Owner purchases Class A Units, the applicable Initial Sales Charge is deducted from the dollar amount of the contribution. As such, the Account Owner will receive fewer Units than if no Initial Sales Charge applied.

While there is no initial sale charge when an Account Owner purchases Class A Units in the Principal Plus Interest Portfolio, if Class A Units in the Principal Plus Interest Portfolio are subsequently exchanged for Class A Units in another Investment Portfolio, the exchange will be subject to an Initial Sales Charge. However, any such exchange would not be subject to an Initial Sales Charge if the Account Owner previously paid an Initial Sales Charge attributable to the Class A Units being exchanged.

The following table lists the Initial Sales Charges applicable to Class A Units. See “Reduction of Class A Units Initial Sales Charge” below to determine whether a reduced Initial Sales Charge would be applied to your contribution, and for details regarding circumstances under which the Initial Sales Charge may be waived.


Reduction of Class A Units Initial Sales Charge
Dollar Amount of Contribution Initial Sales Charge
Less than $50,000 4.25%
At least $50,000 but less than $100,000 4.00%
At least $100,000 but less than $250,000 3.50%
At least $250,000 but less than $500,000 2.50%
At least $500,000 but less than $1,000,000 2.00%
$1,000,000 and over 0.00%

(1) Under the Maximum Contribution Limit in effect as of the date of this Disclosure Booklet, contributions will not be accepted to the extent that the proposed contribution, together with the aggregate account balance of all accounts across all qualified tuition programs sponsored by the State (including the Advisor Plan, the Direct Program and the MET Prepaid Program) for the same Designated Beneficiary (regardless of account owner) would exceed $500,000.

(2) If an Account Owner makes a contribution of $1,000,000 or more to purchase Class A Units, the Class A Units will be subject to a CDSC of 1.00% if they are redeemed within 6 months of purchase to satisfy a withdrawal. The CDSC is paid on either the purchase price of the redeemed Units or the redemption proceeds, whichever is less, and the charge is deducted from the redemption proceeds.


Class C

Class C Units are not subject to an Initial Sales Charge; however, Class C Units are subject to a CDSC if they are redeemed to satisfy a withdrawal or Rollover within 6 months of the date of purchase. A CDSC will also apply to redemptions of Class C Units in connection with transfers from the Advisor Plan to the Direct Program or the MET Prepaid Program within 6 months of purchase.

The CDSC applicable to Class C Units is 1.00% of either the purchase price of the redeemed Units or the redemption proceeds, whichever is less, and the charge is deducted from the redemption proceeds. When an Account Owner redeems Class C Units subject to a CDSC, the Program Manager will first redeem any Units that are not subject to a CDSC, and then redeem Units that the Account Owner has held for the longest period of time, unless the Account Owner specifies that Units be redeemed in a different order. The CDSC holding period is calculated on a monthly basis and begins on the first day of the month in which the purchase of Class C Units was made.

There is no CDSC when an Account Owner redeems Class C Units from the Principal Plus Interest Portfolio. However, if the Account Owner purchases Class C Units of an Investment Portfolio (other than the Principal Plus Portfolio) and later exchanges those Units for Class C Units of the Principal Plus Interest Portfolio, and then subsequently redeems the Units of the Principal Plus Interest Portfolio within 6 months of the original purchase, a CDSC will apply. Similarly, if an Account Owner purchases Class C Units of the Principal Plus Interest Portfolio, and then exchanges such Units for Class C Units of another Investment Portfolio, the acquired Units will be subject to a CDSC for 6 months from the time of the exchange.

The following table lists the CDSCs applicable to Class C Units.


CDSCs applicable to Class C Units
Investment Portfolio for Class C Units Being Redeemed for Withdrawal Within 6 Months of Purchase Contingent Deferred Sales Charge (CDSC)
All Investment Portfolios (except the Principal Plus Interest Portfolio) 1.00%
Principal Plus Interest Portfolio 0.00%

The redemption of Class C Units in connection with any of the following withdrawals is not subject to a CDSC:

  • Withdrawals paid to the Designated Beneficiary of the Account (or to the estate of the Designated Beneficiary) on or after the death of the Designated Beneficiary, if the withdrawal is made within one year of death.
  • Withdrawals attributable to the Designated Beneficiary’s permanent disability (as evidenced by a determination by the federal Social Security Administration), if the withdrawal is made within one year of disability.
  • Withdrawals made on account of a scholarship received by the Designated Beneficiary to the extent the amount withdrawn does not exceed the scholarship.
  • Amounts that are the subject of a transfer or Rollover from one Account to another Account in the Advisor Plan, if such Units were not subject to a CDSC at the time of transfer/Rollover.
  • Withdrawals made on account of the Designated Beneficiary’s attendance at certain military academies to the extent the amount withdrawn does not exceed the costs of qualifying expenses attributable to such attendance.
  • Units which are purchased with the proceeds of withdrawals that are subsequently reinvested in an amount equal to all or a portion of the withdrawn amount in Class C Units of the same Investment Portfolio or any other Investment Portfolio, provided that such reinvestment is made within one year of the withdrawal. This CDSC waiver only applies if the Advisor Plan is notified that a contribution qualifies at the time the contribution is made, and will be granted upon confirmation that a CDSC was previously paid.

Automatic Conversion of Class C Units into Class A Units

On or about September 11, 2017, Class C Units will automatically convert to Class A Units after the close of business on the last business day of the first full calendar month after the Class C Units have been owned for six years. As such, Class C Units purchased on or prior to then will convert into Class A Units on or about October 31, 2023. Immediately following conversion, converted Units are subject to the fee structures applicable to Class A Units. No CDSCs are imposed when Class C Units convert to Class A Units.


REDUCTION OF CLASS A UNITS INITIAL SALES CHARGE

Rights of Accumulation
Account Owners who have already invested in Class A or Class C Units in the Advisor Plan and are making additional contributions for Class A Units in the Advisor Plan may qualify for a discount on the Initial Sales Charge otherwise applicable to the purchase of Class A Units. Such Account Owners may add the contribution to the current aggregate Net Unit Value of their Units in the Advisor Plan, and compute the Initial Sales Charge based on the resulting sum. The Account Owner may also include the aggregate Net Unit Value of the Units that are then currently held by the Account Owner in all other Accounts in the Advisor Plan, not only the Account to which the contribution is being credited. For example, if an Account has Class C Units worth $70,000 at the time of an additional contribution by the Account Owner, and the Account Owner makes an additional contribution for Class A Units worth $70,000, the Initial Sales Charge for the $70,000 contribution would be at the rate applicable to a single contribution worth $140,000 (i.e., 3.50% of the amount purchased), instead of at the rate applicable to a single contribution worth $70,000 (i.e., 4.00% of the amount purchased).

Letter of Intent
An Account Owner may also obtain a reduction in the Initial Sales Charge on contributions for Class A Units by means of a Letter of Intent (“LOI”) expressing an intention to contribute at least $50,000 to an Account or Accounts (for either Class A or Class C Units, or both) within a period of 13 months, which begins on the date of the first contribution on or following the date the LOI is submitted. Each contribution made during the 13-month period will be subject to the Initial Sales Charge at the rate applicable to the aggregate amount of contributions undertaken in the LOI to be made during such period.

An LOI is not a binding obligation to contribute the full amount indicated. The minimum initial investment under an LOI is 5% of the aggregate amount to be contributed under the LOI. Class A Units obtained with the first 5% of the aggregate amount will be held in escrow (while kept in the name of the applicable Account) to secure payment of the higher Initial Sales Charge applicable to the Units actually obtained in the event the full intended amount is not contributed before the LOI expires. If the full amount is not contributed, a sufficient amount of the escrowed Class A Units will be redeemed, and the Account correspondingly debited, to pay the additional Initial Sales Charge applicable to the amount actually contributed, if necessary. When the full amount has been contributed, the escrow will be released. Escrowed Units are not eligible for either Qualified or Non-Qualified Withdrawals during the period the LOI remains in effect unless the Account Owner terminates the LOI.

An Account Owner may take advantage of the LOI option by completing the relevant portion of the Account Application, or by completing and submitting the appropriate Advisor Plan form.

Reinstatement Privilege
If all or a part of an Account Owner’s Class A Units in the Advisor Plan are redeemed in connection with a withdrawal or transfer, and the Account Owner purchased the Class A Units subject to an Initial Sales Charge or paid a CDSC on their redemption, the Account Owner may reinvest an amount equal to all or a portion of the redemption proceeds in Class A Units of the same Investment Portfolio or any other Investment Portfolio at the Net Unit Value, without the imposition of an Initial Sales Charge, next determined after receipt in good order of the contribution, provided that such reinvestment is made within one year of the withdrawal or transfer. This Reinstatement Privilege only applies if the Advisor Plan is notified that a contribution qualifies for a reduced Initial Sales Charge at the time the contribution is made. The Initial Sales Charge waiver will be granted upon confirmation that an Initial Sales Charge or CDSC was previously paid. The State or Program Manager may amend, suspend or cease offering this Reinstatement Privilege at any time as to Units redeemed after the date of such amendment, suspension or cessation. Reinstated Units for which a CDSC has already been paid will not be subject to a CDSC.

Waiver of Class A Initial Sales Charge
The Distributor will waive the Initial Sales Charge on purchases of Class A Units for an Account Owner:

(i) who is a current or retired employee or director of the Program Manager or the Distributor or their affiliates, or who is an immediate family member of any such person (immediate family members include spouses or domestic partners, parents, children, grandparents, grandchildren, parents-in-law, sons-in-law and daughters-in-law, siblings, a sibling’s spouse and a spouse’s siblings);

(ii) who, for at least the last 90 days, has been an employee of a Selling Institution, or who is an immediate family member of any such person;

(iii) who utilizes a Financial Advisor that charges a periodic or asset-based fee for the Financial Advisor’s services;

(iv) who makes contributions through an employer payroll contribution plan as approved by the Distributor; or

(v) who makes aggregate contributions of at least $1,000,000 (to multiple Accounts given the Maximum Contribution Limit per Account is currently $500,000 per Designated Beneficiary), in which case the Class A Units will be subject to a CDSC of 1.00% if they are redeemed within 6 months of purchase to satisfy a withdrawal.

Notwithstanding the foregoing, the Distributor may waive the application of the Initial Sales Charge for purchases of Class A Units in other circumstances in its discretion.