Fees & Expenses

There are three parts to the total Utah Educational Savings Plan (UESP) fee structure: Vanguard Fund Operating Expense Ratios, a UESP Administrative Asset Fee, and a UESP Administrative Maintenance Fee. UESP does not charge an enrollment fee.

UESP Administrative Fees
UESP accounts are charged a two-part administrative fee, consisting of an Administrative Asset Fee and an Administrative Maintenance Fee. UESP fees are assessed on an account's balance on the last business day of each month and appear on the quarterly account statement. 

The UESP Administrative Asset Fee is 0.22% annually. It is assessed monthly on all account assets at the rate of 0.0183% (0.22 percent divided by 12). This fee is waived for all Utah resident account owners who are invested in Option 1: Public Treasurer's Investment Fund.

The UESP Administrative Maintenance Fee is a maximum of $15 annually. If the account balance at the end of each month is at least $5,000, your account will be charged $1.25 for that month. If the account balance at the end of the month is less than $5,000, the fee will be 0.025% of the account balance for that month. This fee is waived for all Utah resident account owners. 

Vanguard Operating Expenses
The Vanguard Group® applies fees against the assets invested in each of the Vanguard mutual funds for operating expenses. Vanguard expense ratios do not appear on UESP account statements because the fees are deducted from the performance of the applicable underlying fund and because you do not own shares of the underlying Vanguard mutual funds. The performance and market values of your UESP account are net of any Vanguard expense ratios. The structure and combination of Vanguard funds used in the UESP options sets the weighted underlying expense ratio of any UESP option (except Option 1 and Option 11, which do not utilize Vanguard funds) in a range from 0.025% to 0.13%. The total range of asset fees on any UESP option, including the UESP Administrative Asset Fee, is 0.22% to 0.35%.

Vanguard Operating Expense Ratios: 
Vanguard Institutional Total Bond Market Index Fund1 0.05%
Vanguard Institutional Index Fund2 0.025%
Vanguard Mid-Cap Index Fund3 0.09%
Vanguard Small-Cap Index Fund4 0.09%
Vanguard International Growth5 0.35%
Vanguard International Value Fund6 0.47%
Vanguard Total Stock Market Index Fund7 0.06%
Vanguard Institutional Developed Markets Index Fund8 0.13%

1. Vanguard Fund prospectus dated April 24, 2009
2. Vanguard Fund prospectus dated April 24, 2009
3. Vanguard Fund prospectus dated April 29, 2009
4. Vanguard Fund prospectus dated April 29, 2009
5. Vanguard Fund Prospectus dated December 29, 2008
6. Vanguard Fund Prospectus dated February 20, 2009
7. Vanguard Fund prospectus dated April 29, 2009
8. Vanguard Fund prospectus dated February 27, 2009

© 2009 Utah State Board of Regents, all rights reserved.
The terms Utah Educational Savings Plan and UESP are registered service marks.

Investors 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 from this Web site.

FDIC Insurance. Except for the underlying investment specified below, investments in UESP are not insured by the Federal Deposit Insurance Corporation (FDIC). FDIC insurance is provided for the FDIC-insured savings account held in trust by UESP at Zions First National Bank (Bank). Funds in the savings account are insured by the FDIC on a pass-through basis to each account owner up to the maximum amount set by federal law—currently $250,000 through December 31, 2013, and $100,000 thereafter. 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 UESP’s FDIC-insured savings account plus (2) the value of other accounts held (if any) at the Bank, as determined by the Bank and by FDIC regulations.

No Other Insurance and No Guarantees. Investments in UESP are not 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 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 Bank and FDIC rules and regulations to each account owner, funds in UESP’s FDIC-insured savings account will retain their value, whether in Option 11 or when allocated to portions of Options 2, 7, 8, and 9.

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.

 

Utah Educational Savings Plan Fee Structure.

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