NextGen Client Direct Series
NextGen Client Direct Series was designed to offer choice and flexibility with investment portfolios ranging from 100% equity to 100% fixed income, as well as a Principal Plus Portfolio. In addition, NextGen offers you the ability to select investments offered by several different fund families in the same account, for additional diversification.
These portfolios are designed to take into account the number of years until your beneficiary attends college. BlackRock offers convenient, professionally managed, balanced portfolios that are more aggressive when your child is young and are automatically reallocated to be more conservative as your child nears college age.
iShare ETFs are similar to mutual funds, but are passively managed and tied to an index. They are traded throughout the day (unlike mutual funds that are priced once per day at close of business). Click here to learn more.
Generally, diversified portfolios hold investments in many types of funds and/or securities. For example, investments may span different sectors (such as bio-tech or utilities) and/or geographic regions (such as Asia or Europe).
• BlackRock 100% Equity Portfolio
• Franklin Templeton Balanced
Portfolio
• iShares Diversified Equity
Portfolio
• iShares Diversified Fixed
Income Portfolio
• MFS Fixed Income Portfolio
A single fund portfolio is invested in one single underlying fund, and is a static investment.
The Principal Plus Portfolio may invest in one or more guaranteed investment contracts issued by one or more insurance companies, may make deposits in an interest-bearing FDIC-insured bank account (the "Bank Deposit Account")1 at Bank of America, N.A. (the “Bank”), and to the extent approved by FAME, may invest in corporate fixed-income investments and/or similar instruments.
The NextGen Savings Portfolio is comprised exclusively of deposits in the interest-bearing FDIC-insured Bank Deposit Account at the Bank1
Other Investment Choices
Select Series: an advisor-sold program, through Merrill Lynch Financial Advisors and Maine Distribution Agents. It offers even more investment options as well as the professional assistance of a financial advisor. Click here to learn more.
NextGen investors do not have any direct ownership interest in the underlying
funds. Click here to see
the NextGen Client Direct Series Program Description and Supplements
for details.
Please remember there is always the potential of losing money when you invest in securities.
Asset allocation and diversification do not assure against loss in declining markets.
1 The portion of the underlying deposits in the Bank Deposit Account that is attributable to the Units held by a Participant in the NextGen Savings Portfolio or the Principal Plus Portfolio is (a) eligible for FDIC insurance coverage of up to $250,000 per Participant (calculated on a basis which aggregates that portion of the underlying deposits attributable to the Units held by the Participant in the NextGen Savings Portfolio or the Principal Plus Portfolio with all FDIC-insured assets held by the Participant at the Bank) and (b) for purposes of FDIC insurance coverage only, considered to be held in the same ownership capacity as a Participant’s other single ownership accounts held at the Bank. However, neither Units of the NextGen Savings Portfolio nor the Principal Plus Portfolio are insured or guaranteed by the FDIC or any other agency of state or federal government, FAME, the Bank or the Program Manager, nor does a Participant have a direct beneficial interest or the rights of an owner in the underlying deposits in the Bank Deposit Account. Participants are responsible for monitoring the aggregated value of the portion of the underlying deposits of the NextGen Savings Portfolio or the Principal Plus Portfolio attributable to the Units of such Portfolios held by a Participant plus their other deposits held directly with the Bank, for purposes of the $250,000 FDIC insurance coverage limit. The percentage of the Principal Plus Portfolio that is invested in the Bank Deposit Account as of the end of each month will be posted on www.nextgenplan.com/performance.html within ten business days of month-end. Deposits held in different ownership capacities, as provided in the FDIC rules, are insured separately. UGMA/UTMA Accounts are generally treated as assets of the Designated Beneficiary, and other types of trust Accounts may be treated as assets of the trustee, for purposes of the FDIC limit. Custodians of UGMA/UTMA Accounts and trustees of trust Accounts should consider how these assets will be treated for purposes of the FDIC limit. For more information, please visit www.fdic.gov.
Related Items:
Call NextGen at
1-877-4-NEXTGEN
(1-877-463-9843).
Maine residents can call
1-800-228-3734.
