CollegeBoundfund® Updates >
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Valuable Enhancement for Incoming Rollovers Annual Report Newsletter to be included with clients’ 1st Quarter Statements CollegeBoundfund will launch an NAV rollover policy effective April 30, 2012 What does this mean?  Beginning April 30, distributors of CollegeBoundfund may elect to waive initial sales charges on incoming rollovers from any 529 program  Clients of participating distributors will have the sales load on their rollover waived (and thus, invest at net asset value)—regardless of the program or share class from which the incoming rollover was made  Participating distributors will be given an upfront payment of 50 bps with a trail of 25 bps beginning in the 13th month  Advisors will simply check a box in an “Advisor Use Only” section on the CollegeBoundfund application and Incoming Transfer/Rollover form electing to waive the initial sales charges on incoming rollovers How is this being communicated?  Existing clients will be informed by way of a Supplement (see attached Rhode Island and National program Supplements)to the CollegeBoundfund Program Description included with their 1Q 2012 account statement  Advisors will be informed on March 30, 2012 via email Are there any exceptions/important considerations?  All distributors must use the new CollegeBoundfund application and Incoming Transfer/Rollover form  Beginning April 30, advisors should disregard their existing supply of applications and Incoming Transfer/Rollover forms  New applications and Incoming Transfer/ Rollover forms will be disseminated on or after April 30 and made available on www.collegeboundfund.com  Rollovers from one 529 plan to another are permitted only once during a twelve month period Supplement to the CollegeBoundfund Program Descriptions To reflect the new incoming rollover policy, we have supplemented the CollegeBoundfund Program Descriptions for Rhode Island and Non‐Rhode Island investors. The Supplement will be available on www.collegeboundfund.com as of March 30, 2012, and copies will be mailed to all CollegeBoundfund investors along with 1Q 2012 statements dated March 31, 2012. For more information or to get answers to other questions about CollegeBoundfund, please visit our web site at www.collegeboundfund.com or call 1.888.324.5057. CollegeBoundfund’s Annual Report Newsletter (see attached Rhode Island and National program Newsletters) will also be included with clients' 1st quarter statements. Investors should consider the investment objectives, risks, charges and expenses of CollegeBoundfund carefully before investing. For a copy of the Program Description, which contains this and other information, visit our website at www.collegeboundfund.com, or call your financial representative or AllianceBernstein Investments at (888) 324‐5057. Please read the Program Description carefully before investing. If your clients are not Rhode Island residents or if they have taxable income in another state, please note that depending on the laws of their own or their beneficiary’s home state, favorable state tax treatment or other benefits offered by such home state for investing in 529 college savings plans may be available only for investments in the home state’s 529 plan. Any state‐
based benefit offered with respect to this plan should be one of many appropriately weighted factors to be considered before making an investment decision. Your clients should consult a financial, tax or other advisor to learn more about how state‐based benefits (including any limitations) would apply to their specific circumstances. They may also wish to contact their home state or another state’s 529 plan to learn more about its features, benefits and limitations before investing. Statements in this material concerning taxation are not offered as individual tax advice. The investments in CollegeBoundfund are not guaranteed by the State of Rhode Island, the Rhode Island Higher Education Assistance Authority (established and implemented CollegeBoundfund and makes rules and regulations governing the program), the Rhode Island State Investment Commission (oversees the investments of the assets of CollegeBoundfund), the Federal Deposit Insurance Corporation (FDIC), or any instrumentality thereof. CollegeBoundfund is managed by AllianceBernstein L.P. and distributed by AllianceBernstein Investments, Inc., member FINRA. Alliance Bernstein® and the AB logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P. © 2012 AllianceBernstein L.P. 12-0726
For Financial Advisor use only. Not for inspection by, distribution or quotation to the general public.
For Financial Advisor use only. Not for inspection by, distribution or quotation to the general public.