Customized Age-Based

Select an Investment Option

Option Characteristics

Customized Age-Based accounts may only be established online.

The investment allocations for each of the seven age brackets are customized by the account owner/agent. The money invested is automatically reallocated as the beneficiary changes age brackets. The allocations may consist of any combination of the following underlying investments:

Vanguard Total Stock Market Index Fund
Vanguard Institutional Index Fund
Vanguard Mid-Cap Index Fund
Vanguard Small-Cap Index Fund
Vanguard Total International Stock Index Fund

Vanguard Developed Markets Index Fund
Vanguard Total Bond Market Index Fund
Vanguard Short-Term Investment Grade Fund
FDIC-Insured Savings Account

Not all underlying funds need to be included in the allocation, but at least 1 percent of contributions must be allocated to each underlying investment you select, using whole percentages only. The assets in the account and fund reallocations to successive age brackets will be rebalanced annually on the beneficiary’s birthday (or next available business day).

Allocations for the pre-set age brackets, even if the beneficiary is older than an age bracket, must be selected when the Customized Age-Based investment option is initially established. Changing the allocation of the underlying funds in any age bracket within a Customized Age-Based account after the initial allocation is finalized is considered an investment option change. Changing the investment option on an existing UESP account to or from the Customized Age-Based investment option is also considered an investment option change, which can only occur once per calendar year.

As with all UESP investment options:

the investment option for the same beneficiary may only be changed once per calendar year;
only one investment option may be selected per UESP account; and
you may only own one Customized Age-Based account per beneficiary.

The combination of underlying investments established by the account owner/agent in this investment option will 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 Age-Based Annual Asset-Based Fee Calculator.

You take full responsibility for designing your own customized account asset allocation. Before selecting a customized investment option and making a customized account asset allocation, please do the following:

Carefully evaluate each of the underlying investments, including their investment objectives, styles, risk/return characteristics, fees, and expenses.
Consider the investment time horizon.
Consult with your own financial adviser to determine how such an investment option will complement your particular financial situation and investment goals.

Fees

Effective March 1, 2012

CUSTOMIZED AGE-BASED	FEES
Estimated Underlying Fund Expense Ratios1 (A)	0.000%-0.100%
UESP Administrative Asset Fee2 (B)	0.200%
Total Annual Asset-Based Fees (A+B)	0.200%-0.300%

1. The estimated expenses per age bracket or investment option represent the weighted averages of the expense ratios of the applicable Vanguard 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 Vanguard mutual funds are charged against the investments in the funds on a daily basis. There are no expense ratios for the FDIC-Insured Savings or the Public Treasurers' Invesment Fund investment options.

The Vanguard operating expense ratios apply to the Vanguard funds included as underlying investments in UESP and are net of any “Acquired Fund Fees and Expenses” otherwise applicable to each Vanguard fund.

2. The UESP Administrative Asset Fee is 0.15% to 0.20% annually, charged monthly on the last business day of each calendar month (0.0125% to 0.0167% per month).

The UESP Administrative Maintenance Fee is up to $15 annually, charged monthly on the last business day of each calendar month (up to $1.25 per month on account balances of $5,000 or more). This fee is waived for Utah resident account owners. It is also waived for non-Utah residents who choose to view their quarterly account statements online rather than receive them in the mail.

Read the Program Description for more information and consider all risks, objectives, charges, and expenses before investing.

Account owners/agents who invest in the Customized Age-Based option take full responsibility to design their own customized account asset allocation from the nine available underlying investments. They should carefully consider the risks associated with each underlying investment before selecting the Customized Age-Based option and making a customized account asset allocation.

Account owners/agents should carefully evaluate each of the underlying investments before investing in the Customized Age-Based option because each underlying investment represents different investment objectives, styles, risk/return characteristics, fees, and expenses. The combination of underlying investments selected in the Customized Age-Based option will also determine the fees and expenses for the account.

If account owners/agents have questions regarding how their particular financial situation and investment goals fit with their customized allocation, they should consult with their own financial advisers before choosing to invest in the Customized Age-Based investment option.

Account owners/agents 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 stocks, account owners/agents may want to consider changing their account to a more conservative option or changing their asset allocation as the beneficiary approaches college enrollment.