Fees and Expenses
The following table describes the fees and expenses that you pay if you open and contribute to a particular investment option in the Mississippi Affordable College Savings (MACS) Program. These fees are indirectly paid out of the assets of your account. Except for the fees listed below, there are currently no other fees, charges or penalties imposed by or payable to the Plan in connection with opening or maintaining an account. The Board reserves the right to change the current fees, or to impose new or additional fees, expenses, charges or penalties in the future.
| Annual Asset-Based Fees | ||||||
|---|---|---|---|---|---|---|
| Investment Option | Direct Plan Manager Fee(1)(2) | Estimated Underlying Mutual Fund Expenses (3) | State Fee | Total Annual Asset-Based Fees(4) | ||
| Managed Allocation Option | ||||||
| Age Band 0-4 Years | 0.50% | 0.15% | None | 0.65% | ||
| Age Band 5-8 Years | 0.50% | 0.15% | None | 0.65% | ||
| Age Band 9-10 Years | 0.50% | 0.15% | None | 0.65% | ||
| Age Band 11-12 Years | 0.50% | 0.16% | None | 0.66% | ||
| Age Band 13-14 Years | 0.50% | 0.16% | None | 0.66% | ||
| Age Band 15 Years | 0.50% | 0.16% | None | 0.66% | ||
| Age Band 16 Years | 0.50% | 0.18% | None | 0.68% | ||
| Age Band 17 Years | 0.50% | 0.21% | None | 0.71% | ||
| Age Band 18 Years and over | 0.50% | 0.22% | None | 0.72% | ||
| Diversified Equity Option | ||||||
| 0.50% | 0.22% | None | 0.72% | |||
| Fixed Income Option | ||||||
| 0.50% | 0.19% | None | 0.69% | |||
| Guaranteed Option(5) | ||||||
| None | None | None | None | |||
(1) The Direct Plan Manager Fee is the only fee deducted from Direct Plan assets. Although the Direct Plan Manager Fee is not deducted from your Account, when you invest in the Direct Plan you indirectly bear a pro rata portion of the Direct Plan Manager Fee because, when this fee is deducted from Direct Plan assets, the value of the Units is reduced.
(2) For its services as Direct Plan Manager, each Investment Option (with the exception of the Guaranteed Option) pays the Direct Plan Manager Fee to TFI at an annual rate of 0.50% (50 basis points) of the average daily net assets of the Investment Option. This 0.50% Direct Plan Manager Fee applies on total assets in the Direct Plan up to $250 million. The Direct Plan Manager Fee will be reduced to 0.45% (45 basis points) if and when total assets in the Direct Plan become equal to or greater than $250 million for a period of at least 90 consecutive days. The Direct Plan Manager Fee will revert to 0.50%, however, if and when total assets in the Direct Plan decrease to below $250 million for a period of at least 90 consecutive days. The Direct Plan Manager Fee is subject to further reductions if total assets in the Direct Plan reach certain levels.
(3) For each Investment Option (other than the Guarante'd Option), the figure in this column is based on a weighted average of the expenses of each Underlying Fund's expense ratio as reported in the Underlying Fund's most recent prospectus available prior to the date of this Disclosure Booklet, in accordance with the Investment Option's allocation among its Underlying Funds. Each Investment Option (other than the Guaranteed Option) indirectly bears its pro rata portion of the Underlying Funds' expenses because, when such expenses are deducted from an Underlying Fund’s assets, the value of the Underlying Fund's shares is reduced.
(4) The Total Annual Asset-Based Fees equal the Estimated Underlying Fund Expenses plus the Direct Plan Manager Fee. You should refer to the Investment Cost Example below for the total assumed investment cost over 1-, 3-, 5- and 10-year periods.
(5) The Guaranteed Option does not pay a Direct Plan Manager Fee. TIAA-CREF Life Insurance Company ("TIAA-CREF Life"), the issuer of the Funding Agreement underlying this Investment Option, makes payments to TFI. TIAA-CREF Life takes this payment, along with many other factors, into consideration when determining the interest rate(s) credited to the Funding Agreement.
Investment Cost Example
The example in the following table is intended to help you compare the cost of investing in the different Investment Options over various periods of time. This example assumes that:
- You invest $10,000 in an Investment Option for the time periods shown below.
- Your investment has a 5% compounded return each year, except for the Guaranteed Option.
- You withdraw the assets from the Investment Option at the end of the specified periods for Qualified Higher Education Expenses.
- Total annual asset-based fees remain the same as those shown in the Fee Table above.
- The example does not consider the impact of any potential state or federal taxes on the withdrawal.
Although your actual costs may be higher or lower, based on the above assumptions, your costs would be:
| Investment Cost Example | ||||
|---|---|---|---|---|
| Investment Option | Approximate Cost of $10,000 Investment |
|||
| One Year | Three Years | Five Years | Ten Years | |
| Managed Allocation Option | ||||
| Age Band 0-4 Years | $67 | $209 | $363 | $812 |
| Age Band 5-8 Years | $67 | $209 | $363 | $812 |
| Age Band 9-10 Years | $67 | $209 | $363 | $812 |
| Age Band 11-12 Years | $68 | $212 | $369 | $825 |
| Age Band 13-14 Years | $68 | $212 | $369 | $825 |
| Age Band 15 Years | $68 | $212 | $369 | $825 |
| Age Band 16 Years | $70 | $218 | $380 | $849 |
| Age Band 17 Years | $73 | $228 | $396 | $885 |
| Age Band 18 Years and over | $74 | $231 | $402 | $897 |
| Diversified Equity Option | ||||
| $74 | $231 | $402 | $897 | |
| Fixed Income Option | ||||
| $71 | $221 | $385 | $861 | |
| Guaranteed Option | ||||
| $0 | $0 | $0 | $0 | |
The table below indicates that there are no additional fees and expenses deducted from each Account/paid directly by the Participant.
| Additional Fees | ||||
|---|---|---|---|---|
| Percent | Dollars | |||
| Application Fee | 0% | $0 | ||
| Cancellation Fee | 0% | $0 | ||
| Change in Beneficiary | 0% | $0 | ||
| Change in Investment Options | 0% | $0 | ||
| Other Charges as Applicable | 0% | $0 | ||
