Pacific Life Funds 529 Plan (MT) was recently awarded a 4-Cap rating from Savingforcollege.com, a frequently quoted college savings resource.
The ratings — ranging from 1-Cap (least attractive) to 5-Caps (most attractive) — are based on the overall usefulness of a state’s 529 plan including the plan’s requirements and investment options. Preferred 529 plans have limited restrictions, make it easy to contribute and withdraw assets for college, and put the account owner in control. In addition, a state must offer investment options with well designed strategies, strong ratings and low fees and expenses. A 4-Cap rating indicates:
“An excellent program with many benefits for the participant and positive investment attributes.”
The 4-Cap rating for Pacific Life Funds 529 Plan (MT) was attributed to recent changes made to Pacific Life Funds Portfolio Optimization Funds:
- The five Portfolio Optimization Funds reached their three-year anniversary on 12/31/06 and are now rated by Morningstar.
- According to Savingforcollege.com research, the three-year performance of each of the five Portfolio Optimization Funds ranked in the top third in their respective categories (i.e., 100%, 80%, 60%, 40% and 20% equity portfolios) when compared to all funds available in 529 plans.
- Net expense ratios for Class A shares were lowered in the Pacific Life Funds 529 Plan (MT).
“The market for College Savings Plans continues to grow and receive great interest as families look for investment opportunities to pay for their children’s education needs in future years,” said Kathleen McWard CFP®, vice president of Marketing, Pacific Life’s Annuities and Mutual Funds Division. “Portfolio Optimization Funds offer a target risk approach with five fund-of-funds ranging from conservative to aggressive, providing investors with the optimal mix of risk and return. This disciplined approach provides diversification among up to 11 asset class styles, 12 money managers and 16 individual mutual funds with exposure to between 800 and 1,100 distinct securities. We are proud that our 529 plan has earned a 4-Cap rating for its positive investment attributes and the benefits it delivers to families saving for college.”
Founded in 1868, Pacific Life provides insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans.1 Pacific Life counts more than half of the 50 largest U.S. companies as clients2 and is a member of the Insurance Marketplace Standards Association (IMSA), whose membership promotes high ethical standards for the sale of individual life insurance and annuities.
1 Product features and availability vary by state.
2 Data compiled by Pacific Life using the FORTUNE 500® list as of April 2007.
For more information about Pacific Life Funds 529 plan, call (800) 722-2333 or visit www.PacificLife.com.
On a periodic basis, Savingforcollege.com individually rates 529 plans. As of 12/31/06, the three-year performance of the following Portfolio Optimization Funds was compared to that of other funds in their respective categories. Portfolio Optimization Fund Conservative ranked 45th compared to 132 funds holding 20% in equities; Moderate-Conservative ranked 44th out of 132 funds holding 40% in equities; Moderate ranked 24th out of 144 funds holding 60% in equities; Moderate-Aggressive ranked 53rd out of 163 funds holding 80% in equities and Aggressive ranked 37th out of 163 funds holding 100% in equities. Performance comparison is based on Class A shares at Net Asset Value (NAV) and does not take into account front-end sales loads. Additional information regarding cap ratings can be found at www.Savingforcollege.com.
The Pacific Life Funds 529 College Savings Plan (MT) is approved and issued by the state of Montana and offered through the Montana Family Education Savings Program (MFESP).
You should carefully consider the risks, charges, and limitations of a 529 College Savings Plan, as well as the investment objectives, risks, charges, and expenses of the underlying investment options. This and other information are available in the Pacific Life Funds 529 College Savings Plan (MT) Plan Description Handbook and the Pacific Life Funds prospectus available from your registered representative or by calling (800)722-2333. Read the plan description handbook and the prospectus carefully before investing. Neither the program nor the principal nor the return of the Pacific Life Funds 529 Plan (MT) is guaranteed or insured by the state of Montana, Pacific Life Funds, Pacific Life, or College Savings Bank. For residents of states other than Montana, their state may offer state income tax benefits not available through an investment in the Pacific Life Funds 529 Plan (MT).
Withdrawals for expenses other than qualified higher-education expenses are subject to income tax and an additional 10% federal tax on earnings. Montana residents have the option of purchasing a Pacific Life Funds 529 Plan (MT) at Net Asset Value. Neither the state of Montana, Pacific Life Funds, Pacific Life, College Savings Bank nor their representatives give tax or legal advice. You should consult your tax adviser and attorney regarding your specific situation.
Share values will fluctuate and, when redeemed, may be worth more or less than the original cost.
Pacific Life Funds are distributed by Pacific Select Distributors, Inc. (member NASD & SIPC), a subsidiary of Pacific Life Insurance Company, and are available through licensed third party broker/dealers. Pacific Life Funds 529 College Savings Plan (MT) is underwritten and distributed by Pacific Select Distributors, Inc. (member NASD & SIPC, registered with the MSRB), a subsidiary of Pacific Life Insurance Company and are available through licensed third party broker/dealers. Pacific Life Funds 529 College Savings Plan (MT) may only be sold through broker/dealers that are registered with the MSRB.
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