Van Kampen Alabama 529 Fund Named Among Leading Performers
March 26, 2008
Savingsforcollege.com, a leading consumer resource for 529 Plans, ranked both the Van Kampen Alabama 529 Fund direct sold and advisor sold plans among the leading performing college savings plans in the United States.
As of 12/31/07, the Program ranked third and sixth among direct sold
plans and fifth and ninth among advisor sold plans for one- and
three-year performance, respectively.1 The survey analyzed a subset of portfolios from each 529 savings plan, selecting portfolios based on their mix of stocks, bonds, and money-market funds, allowing for an apples-to-apples comparison in seven different asset-allocation categories.2
The rankings released on March 19, 2008 and are appearing in local and national media such as the Birmingham News and Money.com. For full reports, showing one and three-year performance for all direct-sold 529 plans, visit http://www.savingforcollege.com/top529s. Rankings for advisor-sold 529 plans are available through a subscription. Rankings are updated each quarter.
To open an account, or to obtain a copy of the Van Kampen Alabama 529 Fund Program Disclosure Statement, call 866.529.ACCT (2228) or visit vankampen.com today.
1 For the one- and three-year periods, Savingsforcollege.com ranked direct sold plans out of 49 and 40 plans for the one- and three-year periods, respectively, and advisor sold plans out of 31 and 27 plans for the one- and three-year periods, respectively.
2 Step one: We select specific portfolios from each 529 plan that can be compared on an apples-to-apples basis to portfolios in other 529 plans based on their allocation among stocks, bonds, and short-term instruments (money market and guaranteed investments). We've set up seven different asset-allocation categories ranging from 100% equity to 100% short-term.
Step two: Within each of the seven categories, we compare historical performance of the selected portfolios and assign each plan a percentile ranking between 1 (best) and 100 (worst). Separate rankings are developed for 1-year, 3-year, and 5-year performance.
Step three: We take the average of each 529 plan's percentile rankings in the seven asset-allocation categories to produce a combined or "composite" percentile ranking. We then produce reports showing how the 529 plans rank against each other in their composite percentile rankings. Note: we currently produce these composite rankings for 1-year and 3-year performance. There are not yet enough 529 plans with a 5-year performance history to make a 5-year ranking report meaningful.
An investor should consider the investment objectives, risks, charges and expenses associated with the Program before investing. All of this information, including risk factors and possible tax consequences, is contained in the Program Disclosure Statement. Please read it carefully before investing. For a copy, call 866.529.ACCT (2228) or visit Alabama529.com.
If you and your beneficiary are not Alabama residents, consider whether your home state or the home state of your designated beneficiary offers a qualified tuition program that provides state-tax or other benefits that are available only for investments in your home state’s qualified tuition program.
The Program is offered by the State of Alabama and is designed to be a Qualified Tuition Program under Section 529 of the Internal Revenue Code. The FDIC, the State of Alabama, the Treasurer of the State of Alabama, the Board of Trustees of the Program Trust Fund or any other federal or state governmental agency do not insure or guarantee accounts and investments under the Program. Van Kampen Funds Inc. is the underwriter for the Program. The Program is also offered through independent distributors that have entered into selling agreements with
Van Kampen Funds Inc., which serves as an independent distributor for the Program.
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