Utah Educational Savings Plan

Public Treasurers' Investment Fund

Investment Option Characteristics

Money in this investment option is allocated to the Public Treasurers’ Investment Fund (PTIF).

The Public Treasurers’ Investment Fund invests to maintain safety of principal, liquidity, and a competitive return on short-term investments. Securities in the fund include certificates of deposit, money market securities, commercial paper, short-term corporate notes, obligations of the U.S. Treasury, and certain agencies of the U.S. government.

These securities are issued by top-rated, highly credit-worthy corporations and government agencies.

Asset Fee Structure Table

Effective June 21, 2013
Public Treasurers' Investment Fund Utah Resident Fees Non-Utah Resident Fees
Estimated Underlying Fund Expense Ratios1 (A) 0.000% 0.000%
UESP Administrative Asset Fee2 (B) 0.000% 0.160%
Total Annual Asset-Based Fees (A+B) 0.000% 0.160%

1. 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. The underlying fund expense ratios apply to the Vanguard and Dimensional funds included as underlying investments in UESP. There is no expense ratio for the Public Treasurers’ Investment Fund or the FDIC-insured accounts.

2. 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.

 
 

Important Legal Notice

You should read the Program Description and consider all investment objectives, risks, charges, and expenses before investing. The Program Description is available for download on the web or a hard copy can be mailed to you by requesting it online here.

FDIC Insurance. Except for the underlying investment specified below, investments in UESP are not insured by the Federal Deposit Insurance Corporation (FDIC). FDIC insurance, up to applicable limits, is provided for the FDIC-insured accounts held in trust by UESP at Sallie Mae Bank and U.S. Bank National Association (U.S. Bank) (collectively Banks). Contributions to and earnings on the FDIC-insured accounts are allocated between the Banks according to the following percentages: Sallie Mae Bank (90 percent) and U.S. Bank (10 percent). Money in the FDIC-insured accounts is insured by the FDIC on a pass-through basis to each account owner at each Bank up to the maximum amount set by federal law, which is $250,000. The amount of FDIC insurance provided to an account owner is based on the total of (1) the value of an account owner’s investment in the FDIC-insured account at each Bank plus (2) the value of other accounts held (if any) at each Bank, as determined by the Banks and by FDIC regulations.

No Other Insurance and No Guarantees. Investments in UESP are neither insured nor guaranteed by the State of Utah, UESP, the Utah State Board of Regents, the Utah Higher Education Assistance Authority, other state agencies, federal government agencies (except to the extent noted above regarding FDIC insurance), or any employees or directors of any such entities. Units in UESP have not been registered with the United States Securities and Exchange Commission or with any state securities commission.

Account Value. The value of your UESP account may vary depending on market conditions and the performance of the UESP investment option you select. It could be more or less than the amount you contribute; in short, your investment could lose value. However, subject to the application of the rules and regulations of the Banks and the FDIC to each account owner, money in the FDIC-insured accounts will retain its value, whether in the FDIC-Insured investment option or when allocated to portions of another investment option that have the FDIC-insured accounts included as an underlying investment.

Non-Utah Taxpayers and Residents. You should determine whether the state in which you or your beneficiary pay taxes or live offers a 529 plan that provides state tax or other benefits not otherwise available to you by investing in UESP. You should consider such state tax treatment and benefits, if any, before investing in UESP.

No compensation for financial advisers. UESP does not pay commissions, loads, or sales charges to financial advisers.