AGE-BASED OPTIONS

Age-based options are among the easiest of all CollegeAdvantage investment options. The asset allocation is done for you and adjusts automatically as your child gets older.

Great for:

CollegeAdvantage offers a choice of four age-based options:

1. Advantage Age-Based Option
2. Vanguard Conservative Age-Based Option
3. Vanguard Moderate Age-Based Option
4. Vanguard Aggressive Age-Based Option

FOUR
AGE-BASED OPTIONS

ADVANTAGE

VANGUARD

UNDERLYING PORTFOLIOS

U.S. Equity Portfolio

International Equity Portfolio

Diversified Fixed-Income Portfolio

Short-Term Fixed-Income Portfolio

Vanguard Prime Money Market Option

Vanguard Income Portfolio

Vanguard Conservative Growth Index Portfolio

Vanguard Moderate Growth Index Portfolio

Vanguard Growth Index Portfolio

Vanguard Aggressive Growth Index Portfolio

UNDERLYING INVESTMENTS OF THE PORTFOLIOS

Vanguard

• Prime Money Market Option
• Inflation-Protected Bond Option
• Income Portfolio
• 500 Index Option
• Windsor II Option
• Morgan Growth Option
• Extended Market Index Option
• Developed Markets International Stock Index Option

PIMCO

• Total Return Option
• High Yield Option

GE Asset Management

• Institutional International Equity Option

OppenheimerFunds

• Main Street Small & Mid-Cap Option

Vanguard

• Prime Money Market Option
• Inflation-Protected Securities Option
• Total Bond Market II Index Fund
• Total Stock Market Index Fund
• Developed Markets Index Fund

TIMING OF ASSET ALLOCATION CHANGE

• Age 6
• Age 10
• Age 13
• Age 17

• Age 6
• Age 11
• Age 16
• Age 19

ADVANTAGE AGE-BASED OPTION

The Advantage Age-Based Option invests in four distinct asset class portfolios made up of CollegeAdvantage stock and bond options to build this custom age-based solution.

Each portfolio combines actively managed and passively managed investment options to reduce fees and relative risk.

 Funds within the portfolios are managed by leading financial institutions such as:

• Vanguard
• PIMCO
• OppenheimerFunds
• GE Asset Management

Asset allocation is based on the age of your beneficiary and shifts toward more conservative options as your child approaches college age.

AGE OF BENEFICIARY

ADVANTAGE PORTFOLIOS TARGET ASSET ALLOCATION

5 or Younger

60% U.S. Equity Portfolio

30% International Equity Portfolio

10% Diversified Fixed-Income Portfolio

6 through 9

55% U.S. Equity Portfolio

30% International Equity Portfolio

15% Diversified Fixed-Income Portfolio

10 through 12

50% U.S. Equity Portfolio

25% International Equity Portfolio

25% Diversified Fixed-Income Portfolio

13 through 16

20% U.S. Equity Portfolio

20% International Equity Portfolio

60% Diversified Fixed-Income Portfolio

17 or older

5% U.S. Equity Portfolio

5% International Equity Portfolio

38% Diversified Fixed-Income Portfolio

52% Short-Term Fixed-Income Portfolio

U.S. Stocks

International Stocks

Bonds

Short-Term Investments

ASSET ALLOCATION OF THE ADVANTAGE AGE-BASED OPTION

The asset allocation mix illustrated above is the target mix as of April 1, 2010 of the Advantage Age-Based Option. The asset allocation of each underlying Portfolio will be actively managed by CollegeAdvantage, and CollegeAdvantage may adjust the weighting in the investment options within each Portfolio, or change the investment option mix within the respective Portfolios within a predetermined range.

As such, the target asset allocation mix, as well as the weightings of the underlying investment options, are expected to change over time. The option will be actively monitored to ensure the appropriateness of each investment option.