Bright Start Advisor Fact Sheet

I L L I N O I S ’ 5 2 9 C O L L E G E S AV I N G S P L A N
For Institutional Use Only | Not for Use with Retail Investors
Benefits
Why “529” plans?
n
The Bright Start® Difference
Federal tax-free growth and tax-free withdrawals as
n
long as money is used for qualified expenses.1
nLow minimum initial investment of only $25.
n
Control
n
Ability
over account assets.
nAbility to contribute via automatic investment
plans (AIPs), payroll deduction or the Automated
Clearing House (ACH) system.
to change beneficiaries without penalty to
another qualified family member.2
n
nA wide range of investments, representing
Special gift and estate tax treatment allows contribu-
different asset classes and investing styles.
tions of $70,000 ($140,000 for a married couple) in
one lump sum per beneficiary free of federal gift taxes.3
nFlexibility
to choose from any accredited college in the
U.S., plus some institutions abroad.
n
OppenheimerFunds, Inc. and its affiliates, and
American Century Investments.®
certain creditors’ claims at the state and federal
level. Please refer to the Program Disclosure
Statement for details.
Pricing Structure
n
Special
state tax considerations for Illinois
residents—combined contributions to Illinois
529 plans4 are deductible from Illinois state tax
income, up to $10,000 ($20,000 if married and
filing jointly) per year, including the contribution
(not earnings) portion of rollovers from other
state 529 plans.5
Class A
sales charges with breakpoints:
Front-end Breakpoints
Sales Charge
Less than $250,000
3.50%
$250,000–$499,000 2.50%
$500,000–$999,000 2.00%
$1 million and greater60.00%
nExperienced investment management by
nPurchases into a 529 plan may be protected from
Easy eligibility—no income or residency restrictions.
n Front-end
High maximum contribution limit of $400,000.
Broker-Dealer
Re-allowance
3.00%
2.00%
1.60%
1.00%
nAccess to lower fee Class I Institutional Shares
for select Oppenheimer funds.
n 0.25% immediate trailing commission to broker-dealer.
7
n Total
plan fees range between 0.32% and 1.00%.8
Class C
n Broker-dealer
will receive a 0.50% upfront commission
on new contributions and a 0.50% trailing commission
starting with month 13.
n Total
plan fees range between 0.32% and 1.25%.8
Pricing for G and H shares previously purchased though Citigroup Global Market Inc.’s Smith Barney division broker-dealer is as follows: G Shares—
broker-dealer will receive a 0.75% upfront commission on new contributions and a 0.25% trailing commission starting with month 13; H Shares—brokerdealer will receive a 0.50% upfront commission on new deposits only with no trailing commission. For additional information, consult the Program
Disclosure Statement.
I L L I N O I S ’ 5 2 9 C O L L E G E S AV I N G S P L A N
For Institutional Use Only | Not for Use with Retail Investors
Two Investment Options
Advisor Age Based Portfolios*
Accounts are placed in one of six portfolios—based on the beneficiary’s age—and automatically adjust over time.
Portfolios are more aggressive for younger beneficiaries, but grow more conservative as the beneficiary grows older.
2% 2%
5%
6%
5%
5%
25%
13%
4.5%
10%
10%
16%
10.5%
15%
21%
10%
12%
15%
4%
10%
12%
10%
16%
18%
5%
5%
8.5%
7.5%
3.5%
3.5%
7%
3%
Age Based 0 – 6 Years Portfolio
Age Based 7– 9 Years Portfolio
Age Based 10 –11 Years Portfolio
Seeks long-term growth by investing
primarily in equity investments. A
percentage of assets are invested in
fixed income investments to help provide
some protection from equity volatility.
Seeks growth by investing in an allocation
weighted toward equity investments
versus fixed income investments.
Seeks moderate growth by investing in a
balanced asset allocation slightly weighted
toward equity investments over fixed
income investments.
20%
10%
15%
8.5%
10%
22%
9%
5%
5%
3.5%
4.5%
8.5%
5%
5.5%
15%
7%
2.5%
3% 2% 2% 1%
1.5%
0.5%
15%
1.5%
10%
8%
15%
1.5%
20%
5%
45%
10%
3%
Age Based 12–14 Years Portfolio
Age Based 15 –17 Years Portfolio
Age Based 18+ Years Portfolio
Seeks moderate growth by investing in
a balanced asset allocation weighted
equally between equity investments and
fixed income investments.
Seeks conservative growth by investing in
an asset allocation weighted toward fixed
income and money market investments
over equity investments.
Seeks preservation of capital with
minimal growth by investing primarily
in fixed income and money market
investments to help maintain stability.
A Portfolio may invest its assets in mutual funds; have its assets managed in a separate account by OFI Private Investments Inc.
for the benefit of the Bright Start Trust; or a combination of the two. Each underlying investment has its own risks. For example, the
prices of small-cap stocks are generally more volatile than large company stocks. There are special risks inherent to international
investing, including currency, political, social and economic risks. Investments in growth stocks may be more volatile than other
securities. With value investing, if the marketplace does not recognize that a security is undervalued, the expected price increase
may not occur. Fixed income investing entails credit and interest rate risks. When interest rates rise, bond prices generally fall, and
the underlying fund’s or account’s value can fall. Diversification does not guarantee a profit or protect against loss.
I L L I N O I S ’ 5 2 9 C O L L E G E S AV I N G S P L A N
For Institutional Use Only | Not for Use with Retail Investors
Advisor Choice Based Portfolios
*
Each of these accounts seeks to maintain a stable asset allocation based on its stated objectives. However, this also
means clients may need to choose a new portfolio should their financial goals change. Account holders may change
portfolios once per calendar year or when they change the beneficiary.
6%
14%
10%
25%
4.5%
9%
5%
19.5%
35%
5%
15%
19.5%
30%
9%
10%
11.5%
15%
15%
10%
10%
10%
7%
2%
3%
Equity Portfolio
Balanced Portfolio
Fixed Income Portfolio
Seeks long-term capital appreciation
by investing all of its assets in equity
investments.
Seeks moderate growth by investing in
a balanced asset allocation weighted
between equity investments and fixed
income and money market investments.
Seeks current income by investing
primarily in investment-grade bonds
and U.S. Government securities.
5%
100%
95%
■
Conservative Fixed Income Portfolio
Money Market Portfolio
Seeks total return by investing primarily
in short-term government securities.
Seeks preservation of capital by investing
all of its assets in a money market
mutual fund.
U.S. EQUITY
■
■
■
■
■
OFIPI Rising Dividends Strategy
OFIPI Value Strategy
OFIPI Capital Appreciation Strategy
O
FIPI Main Street Mid Cap Strategy
O
FIPI Main Street Small Cap Strategy
■ NON-U.S. EQUITY
International
■ Oppenheimer
Growth Fund
■ Oppenheimer Developing
Markets Fund
■ FIXED INCOME
■A
merican Century Diversified
Bond Fund
■ Oppenheimer International Bond Fund
■O
ppenheimer Senior Floating Rate Fund
■O
FIPI Enhanced Short Term Gov’t
■ MONEY MARKET
■O
ppenheimer Institutional
Government Money Market
Portfolio**
Index Strategy
Many of the portfolios described may have the same name and investment objectives as other investment vehicles which are managed by
OppenheimerFunds, Inc., its affiliates or other investment managers. However, these portfolios have different expenses than the investment
vehicles and performance may vary.
* The actual mix of assets in portfolios that invest in more than one underlying investment will vary over time due to market
performance and will be rebalanced at least quarterly to help maintain the portfolio’s target asset allocation. None of the portfolios
are designed to provide any particular total return over any particular time period or investment time horizon. Account owners own
interests in a portfolio; they do not have a direct beneficial interest in the separate accounts, mutual funds or other instruments held
by that portfolio, and therefore, do not have the rights of a shareholder or owner of those investments.
** You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund,
and you should not expect that the sponsor will provide financial support to the Fund at any time. In connection with new rules
governing money market funds that will be fully implemented in October 2016, effective September 28, 2016, Oppenheimer Money
Market Fund changed its name to Oppenheimer Government Money Market Fund, and made changes to its investment strategies
that will enable it to operate as a government money market fund. See the Fund’s prospectus for more information.
I L L I N O I S ’ 5 2 9 C O L L E G E S AV I N G S P L A N
For Institutional Use Only | Not for Use with Retail Investors
Find Prospecting Tools
Visit our plan website at brightstartadvisor.com and click
on the “Financial Advisor Materials” box on the home page
for links to prospecting tools and enrollment applications.9
Manage Client Accounts Online
You can access your clients’ Bright Start account details
including transaction histories, statements and confirms
at dstvision.com, choose “OFIPI-managed 529 Plans.”9
oppenheimerfunds.com
We
Can
Help
L I T E R A T U R E R E Q U E S T S O N LY
1.800.255.2755
FINANCIAL ADVISORS
1.800.255.2750
529 CUSTOMER TEAM
1.800.858.9819
1 Qualified expenses include tuition, fees, books, supplies and room and board.
2 There may be gift or generation-skipping tax consequences depending on who the new beneficiary is. See the Program Disclosure
Statement for more information.
3 Special gift tax treatment for single lump sum: Elect to contribute up to $70,000 (up to $140,000 if married and filing jointly) per
beneficiary free of gift taxes in one lump sum. If the account owner utilizes the special five-year lump sum exclusion and dies within five
years of the funding date, the portion of the contribution allocable to the years remaining in the five-year period (beginning with the year
after the account owner’s death) would be included in the account owner’s estate for federal estate tax purposes. Clients should consult
their tax advisors.
4 Illinois College Savings Plans are currently made up of the Bright Start College Savings Program, Bright Directions College Savings Program
and CollegeIllinois!
5 Based on informal guidance from the Illinois Department of Revenue that is not binding on the Department.
6 A contingent deferred sales charge (CDSC) of 1.00% (but not more than the concession paid to the dealer) applies if units are redeemed
within 18 months after the end of the month in which purchased.
7 Service fees/trails on Class A units listed are generally paid on a quarterly basis.
8 Each account bears certain ongoing fees (including the program management fee, state administrative fee and annual asset-based sales
charge) which are charged against the assets of the portfolios, to provide for the costs associated with the distribution, the servicing and
administration of the account.
9 Not all products, materials or services may be available at all participating firms. Please check with your home office.
The Bright Start® College Savings Program is administered by the State Treasurer of the State of Illinois and distributed by
OppenheimerFunds Distributor, Inc. OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., is the program
manager of the Plan. Some states offer favorable tax treatment to their residents only if they invest in the state’s own plan.
Investors should consider before investing whether their or their designated beneficiary’s home state offers any state tax
or other benefits that are only available for investments in such state’s qualified tuition program and should consult their
tax advisor. These securities are neither FDIC insured nor guaranteed and may lose value.
Before investing in the Plan, investors should carefully consider the investment objectives, risks, charges and expenses
associated with municipal fund securities. The Program Disclosure Statement and Participation Agreement contain this
and other information about the Plan, and may be obtained by visiting brightstartadvisor.com or calling 1.877.43.BRIGHT
(1.877.432.7444). Investors should read these documents carefully before investing.
For Institutional Use Only. This material has been prepared by OppenheimerFunds Distributor, Inc. for institutional investors only. It has not been filed with
FINRA, may not be reproduced and may not be shown to, quoted to or used with retail investors.
The Bright Start® College Savings Program is distributed by OppenheimerFunds Distributor, Inc. Member FINRA, SIPC
225 Liberty Street, New York, NY 10281-1008
© 2016 OppenheimerFunds Distributor, Inc. All rights reserved.
IL0000.005.0916 September 21, 2016