Utah Educational Savings Plan

Customized Age-Based

The Customized Age-Based allocation must be established as an account’s investment option online at uesp.org. To calculate fees for your particular Customized Age-Based investment option, click here to access the Customized Investment Option Fee Calculators.

Investment Option Characteristics

Money invested in this investment option is automatically reallocated to a new, customized underlying investment allocation when the beneficiary’s age qualifies for the next of seven possible age brackets. The investment allocations for each age bracket are determined and customized by the account owner/agent among the available underlying investments:

Carefully evaluate each of the underlying investments before selecting a Customized Age-Based investment option because each underlying investment represents different investment objectives, styles, risk/return characteristics, fees, and expenses. If you have questions regarding how your particular financial situation and investment goals fit with your customized asset allocation, you should consult your own financial advisor before you choose to invest in the Customized Age-Based investment option.

Underlying Investments in the Customized Age-Based Investment Option

  • Global Equity
  • DFA Global Equity Portfolio
  • DFA Global Allocation 60/40 Portfolio
  • DFA Global Allocation 25/75 Portfolio
  •  
  • Domestic Equity
  • VG Institutional Total Stock Market Index Fund
  • VG Institutional Index Fund
  • VG Value Index Fund
  • DFA U.S. Large Cap Value Portfolio
  • VG Growth Index Fund
  • VG Mid-Cap Index Fund
  • VG Small-Cap Index Fund
  • VG Small-Cap Value Index Fund*
  • DFA U.S. Small Cap Value Portfolio*
  • VG Small-Cap Growth Index Fund*
  • DFA Real Estate Securities Portfolio*
  •  
 
  • International Equity
  • VG Total International Stock Index Fund
  • VG Developed Markets Index Fund
  • DFA International Value Portfolio*
  • VG International Growth Fund*
  • VG Emerging Markets Stock Index Fund*
  •  
  • Domestic Fixed Income
  • VG Total Bond Market Index Fund
  • VG Short-Term Investment-Grade Fund
  • VG Short-Term Bond Index Fund
  • DFA One-Year Fixed Income Portfolio
  • VG Short-Term Inflation-Protected Securities Index Fund
  •  
  • International Fixed Income
  • VG Total International Bond Index Fund
  •  
  • Cash Equivalent
  • FDIC-insured accounts

The following funds were closed to new investments as an underlying investment in the Customized Age-Based and Customized Static investment options beginning on July 25, 2011:

  • Vanguard International Value Fund*
  • Public Treasurers’ Investment Fund

*An investment allocation to this fund may not exceed 25 percent in the account. For the Customized Age-Based investment option, this cap applies to the allocation for each age bracket.

Minimums and Maximums

  • At least 1 percent of the contributions must be allocated to each underlying investment selected, using whole percentages only. However, not all underlying funds offered by UESP need to be included in the Customized Age-Based allocation. The combined totals of the underlying investments selected for each age bracket must equal 100 percent.
  • An investment allocation to funds noted with an * in the above table may not exceed 25 percent in an account. For the Customized Age-Based investment option, this cap applies to the allocation for each age bracket.
  • Regardless of the age of the beneficiary when the Customized Age-Based allocation is established, the account owner/agent must include asset allocations for all age brackets, including age brackets that would apply to younger beneficiaries.

Future Contributions

All future contributions will be invested in the Customized Age-Based allocation that an account owner/agent initially selects unless and until an account owner/agent instructs UESP to change the investment option.

Allocations and Investment Option Changes

Changing the allocation of the underlying funds in an account invested in a Customized Age-Based investment option after the initial allocation is finalized, even if the beneficiary is older or younger than the age bracket in which he or she falls, is considered an investment option change. Please note that:

  • The investment option for the same beneficiary may only be changed twice per calendar year
  • Only one investment option may be selected per UESP account
  • An account owner/agent may only own one account with a Customized Age-Based investment option per beneficiary.

The money in each account will be rebalanced annually on the beneficiary’s birthday (or next available business day) to the targeted asset allocation for a particular age bracket within an investment option and when reallocated to a new age bracket based on the beneficiary’s age.

Careful Evaluation

An account owner/agent who invests in a customized investment option takes full responsibility to design their own customized account asset allocation from the underlying investments offered by UESP. An account owner/agent should carefully evaluate each of the underlying investments as well as the investment time horizon before investing in a customized investment option because each underlying investment represents different investment objectives, styles, risk/return characteristics, fees, and expenses. Carefully consider the risks associated with each underlying investment before selecting a customized investment option and making a customized account asset allocation.

Before investing in a customized investment option, an account owner/agent should consult with their own financial advisor to determine how such an investment option will complement their particular financial situation and investment goals. An account owner/agent should also note that the expected life of an account in UESP may be shorter than accounts established for other savings purposes, such as retirement. If their investment allocation has a significant weighting in equity funds, an account owner/agent may want to consider changing their account to a more conservative investment option or changing their asset allocation as the beneficiary approaches college enrollment.

Asset Fee Structure Table

The combination of underlying investments established by the account owner/agent in the Customized Age-Based investment option will also determine the fees and expenses for the account. To calculate fees for your particular Customized Age-Based investment option, click here to access the Customized Investment Option Fee Calculators.

Customized Age-Based3, 4, 5 Fees
Estimated Underlying Fund Expense Ratios1 (A) 0.000%-0.403%
UESP Administrative Asset Fee2 (B) 0.200%
Total Annual Asset-Based Fees (A+B) 0.200%-0.603%

1. UESP will reallocate the money to the Age 19+ or College Enrolled age bracket for accounts with an age-based investment option, including the Customized Age-Based investment option, when the beneficiary turns age 19 or a qualified withdrawal is processed at the account owner/agent’s request, whichever comes first.

2. The minimum and maximum expenses and fees for the customized investment options are shown as a range reflecting the lowest and highest possible costs, assuming the entire investment option is invested in the least or most expensive underlying investment. Because the underlying fund expense ratio varies, the fees will depend upon the underlying investment allocation chosen by the account owner/agent. The maximum expense ratio of 0.400% is reached if an account invested in a customized investment option includes a 25 percent allocation (the maximum allowed) of each of UESP's four most expensive underlying funds. There are no underlying investment expense ratios assessed on the FDIC-insured accounts. The underlying investment expense ratio for the Public Treasurers' Investment Fund is 0.005 percent, which UESP pays in full. UESP reserves the right to discontinue or limit paying the underlying investment expense ratio on the Public Treasurers' Investment Fund after giving notice to affected account owners. Certain accounts opened prior to the date of this Program Description could have a maximum fee of 0.633 percent. Total annual asset-based fees for a customized investment option can be calculated by using UESP's Customized Age-Based or Customized Static Fee Calculators at uesp.org/CustomizedInvestmentOptionCalculators.

3. The total operating expense ratios for the DFA Global Equity Portfolio, DFA Global Allocation 60/40 Portfolio, DFA Global Allocation 25/75 Portfolio, and the DFA Real Estate Securities Portfolio reflect a fee waiver pursuant to a Fee Waiver Agreement in effect through February 28, 2016. The total operating expense ratio may increase if the Fee Waiver Agreement is not extended beyond February 28, 2016.

4. The estimated expenses per age bracket or investment option represent the weighted averages of the expense ratios of the applicable underlying mutual funds in which each investment option is invested. The expense ratios for the individual mutual funds are shown in the Program Description. The operating expense ratios of the mutual funds are charged against the investments in the funds on a daily basis. There are no underlying investment expense ratios assessed on the FDIC-insured accounts. The underlying investment expense ratio for the Public Treasurers' Investment Fund is 0.005 percent, which UESP pays in full. UESP reserves the right to discontinue or limit paying the underlying investment expense ratio on the Public Treasurers' Investment Fund after giving notice to affected account owners.

The underlying fund expense ratios apply to the Vanguard and Dimensional funds included as underlying investments in UESP.

5. The UESP Administrative Asset Fee is 0.140 to 0.200 percent annually, charged as described in the Fee Structure section of the Program Description (0.0117 to 0.0167 percent per month). The Administrative Asset Fee is waived for all accounts invested in the Public Treasurers’ Investment Fund that are owned by Utah residents.