Varied options. Low fees.
The TNStars College Savings 529 Program offers an age-based track and individual investment options including both domestic and international equities, balanced fund options, fixed income options, and an FDIC insured option. The underlying funds for each of the options are from a range of Fund Companies including Vanguard, DFA, Primecap and First Tennessee Bank. The program offers the products at a competitive fee of 35 basis points.
For more information about the investment options, refer to the Disclosure Brochure .
|TN Stars Annual Asset-Based Fees|
|Investment Option||Estimated Underlying Mutual Fund Expenses1||Administrative Fee2||Total Annual Asset-Based Fees3|
|Aged Based Option|
|TN DFA Large Cap Value Fund||0.27%||0.08%||0.35%|
|TN Vanguard 500 Index Institutional Shares||0.04%||0.31%||0.35%|
|TN DFA Small Cap Fund||0.37%||0.00%||0.35%|
|TN PRIMECAP Odyssey Aggressive Growth Fund||0.64%4||0.00%||0.35%|
|TN Vanguard Mid-Cap||0.36%4||0.00%||0.35%|
|TN DFA Large Cap International Portfolio Institutional Class||0.23%||0.12%||0.35%|
|TN DFA Inflation-Protected Securities Portfolio Institutional Class||0.12%||0.23%||0.35%|
|TN Vanguard Total Bond Market Institutional Shares||0.04%||0.31%||0.35%|
|TN Vanguard Intermediate-Term Investment-Grade Fund Admiral Shares||0.10%||0.25%||0.35%|
|TN Vanguard Intermediate-Term Treasury Admiral Shares||0.10%||0.25%||0.35%|
|TN Vanguard Wellington Admiral Shares||0.16%||0.19%||0.35%|
|TN Vanguard Life Strategy Conservative Growth Fund||0.13%||0.22%||0.35%|
|TN Vanguard Life Strategy Income Fund||0.12%||0.23%||0.35%|
|First TN Interest Bearing Account Option||None||None||None|
The above table shows the fees charged by for the underlying mutual funds and the amount charged by the Program. The Program, at its sole discretion, will establish Program fees as it deems appropriate. The Program’s fees include two elements: the estimated underlying mutual fund expense and the fee charged by the Program for administration of the Program.
￼(1) Estimated Underlying Mutual Fund Expenses -‐ Each mutual fund company charges an expense ratio for each of the underlying investment options.
(2) Administrative Fee -‐ the Program charges a fee for the administrative costs associated with the Program.
(3) Total Annual Asset-‐Based Fees -‐ This is the total fee charged to each Account. The fee will be assessed monthly.
(4) For fiscal year 2017-2018 (July 1, 2017- June 30, 2018), the Program will subsidize the cost of administration and, for the three investment options for which the underlying mutual fund expense is over the 0.35% Total Annual Asset Based fee, the Program will subsidize the difference between the underlying mutual fund expense and the total annual asset based fee charged to the Account. The Purchaser will not bear any fees and expenses for any fund in which you choose to invest above the .35% total annual asset based fee. For the fiscal year of 2017-2018, the Program will bear the cost of the fees and expenses in excess of the total annual asset based fees and/or underlying expense ratio through a subsidy paid through a state appropriation to the Program. The Board or the Program, in their sole discretion, reserve the right to change the total annual asset based fees and reserve the right to place restrictions on the subsidy, including, but not limited to the right to restrict the subsidy to Tennessee Residents. There is no guarantee of future appropriations or that the Program will continue to subsidize the fees and expenses through an appropriation or otherwise in future fiscal years. If the Program discontinues the subsidy, restricts the subsidy, or changes the fees charged under the program, the Account may bear all fees and expenses associated with the options that you have selected. The fees and expenses could be greater than the .35% total annual asset based fees charged during fiscal year 2017-2018.
For more information about the Program, refer to the Disclosure Brochure.