Alabama State Treasury Department

Key discussions during the meeting included quarterly reports for the Alabama ABLE Savings Plan, covering performance metrics from Vestwell, including asset levels, account totals, and rollover contributions, and a marketing report from Copperwing. Decision items involved the approval of Amendment 3 to the Vestwell Contract to terminate the Oregon Board's involvement and reallocate fees to Alabama ABLE. The Board also unanimously approved the implementation of a Statement of Investment Policy developed by Callan. For the CollegeCounts 529 program, quarterly reports detailed the 2026 budget, 2025 fiscal year-end budget, and a cash flow statement showing a balance of $19,166,766 as of September 30, 2025, along with updates on portal enhancements and investment performance reviews from Union Bank and Trust and Wilshire Associates. Decision items for CollegeCounts included the approval of Watch List recommendations, the selection of American Century Avantis Small Cap Value Fund as the replacement for the Northern Trust Small Cap Value Fund in the Advisor Plan, and the approval of Northern Lights Distributors as the new Distributor for the Advisor Plan, effective in the first quarter of 2026.

The agenda for the meeting includes the approval of the November 19, 2025 Board Meeting Minutes and the November 19, 2025 Investment Committee Meeting Minutes. Key discussion topics involve quarterly reports for the Alabama ABLE Savings Plan, including reports from Vestwell, Investment Report & Plan Activities, and Copperwing. For the CollegeCounts 529 program, quarterly reports cover the Program and Marketing Report, the Union Bank & Trust Plan Overview & Statistics, Wilshire Investment Performance, and the Callan Consultant's Report. Decision items for CollegeCounts include the Approval of Watch List Recommendations and discussion regarding the Program Management Agreement Amendment. Informational items listed are the Forbes 529 Ratings, CollegeCounts Annual Audit, the FY 2025 Annual Report, and the Statement of Economic Interests due date.

The Board of Directors meeting covered quarterly reports and other business. The Program Report detailed tuition payments, benefits disbursed totaling $2.5 million for 696 students in the preceding quarter, and noted 3,622 active accounts. The Regions Investment Report provided a financial market update, outlining returns for the quarter where the consolidated portfolio achieved a 1.08% rate of return. The annual actuary report indicated an asset value of $190,918,218 as of September 30, 2025, with a funded ratio of 338.5%. Additionally, the projected 2026 Board meeting dates were presented for informational purposes.

The primary discussion involved the U. S. Small Cap Value Equity Fund Search, specifically reviewing seven potential replacement funds for the underperforming Northern Trust Small Cap Value Fund. The review considered fund history, performance, and fees. Following the review, the Committee recommended the American Century Avantis Small Cap Value Fund as the preferred replacement for submission to the full Board.

This document presents the 2015 Asset Allocation and Spending Study for the Alabama Trust Fund, analyzing its investment and spending policies. The study evaluates the appropriate asset allocation to achieve the dual objectives of maintaining or increasing real spending and growing the inflation-protected value of the Fund over various projection periods, extending up to 2035. Key areas of focus include capital market assumptions, efficient asset mix alternatives, and a detailed analysis of the Fund's spending policy, including the potential for incorporating alternative asset classes like hedge funds.