Kentucky Education Savings Plan Trust

Fees & Expenses

The information below describes the fees and expenses that you would pay if you contribute to a particular investment option in the Kentucky Education Savings Plan Trust (KESPT). These fees are indirectly paid out of the assets of your account. Except for the fees listed below, there are currently no other fees, charges or penalties imposed by or payable to the Plan in connection with opening or maintaining an account.


Age-Based Investment Options
Fees and Expenses
Investment Option Estimated Underlying Mutual Fund Expenses(3) Program Manager Fee(1)(2) State Fee Total Annual Asset-Based Fees(4)
Age Band 0‑4 0.12% 0.48% None 0.60%
Age Band 5-8 0.13% 0.47% None 0.60%
Age Band 9-10 0.14% 0.46% None 0.60%
Age Band 11-12 0.15% 0.45% None 0.60%
Age Band 13-14 0.15% 0.45% None 0.60%
Age Band 15 0.15% 0.45% None 0.60%
Age Band 16 0.13% 0.47% None 0.60%
Age Band 17 0.11% 0.49% None 0.60%
Age Band 18+ 0.08% 0.52% None 0.60%
Guaranteed Investment Option
Fees and Expenses
Investment Option Estimated Underlying Mutual Fund Expenses(3) Program Manager Fee(1)(2) State Fee Total Annual Asset-Based Fees(4)
Guaranteed Option(5) None None None None

 

Multi-Fund Investment Options
Fees and Expenses
Investment Option Estimated Underlying Mutual Fund Expenses(3) Program Manager Fee(1)(2) State Fee Total Annual Asset-Based Fees(4)
Active Equity Option 0.50% 0.41% None 0.91%
Equity Index Option 0.07% 0.47% None 0.54%
Balanced Option 0.26% 0.47% None 0.73%
Fixed Income Option 0.16% 0.47% None 0.63%

 

(1) Although the Program Manager fee is deducted from an Investment Option, not from your Account, each Account in the Investment Option indirectly bears its pro rata share of the Program Manager fee as this fee reduces the Investment Option’s return.

(2) Each Investment Option (with the exception of the Guaranteed Option) pays the Program Manager an annualized fee equal to a stated percentage of the average daily net assets held by that Investment Option. However, for the Managed Allocation Option and the Active Equity Option, the percentages listed in this column may fluctuate because such Investment Options are subject to a fixed Total Annual Asset-Based Fee amount. Thus, generally, if the underlying investment expenses increase, then the Program Manager fee decreases with respect to the Managed Allocation Option and the Active Equity Option.

(3) The percentages set forth in this column are based on the expense ratios of the mutual funds in which an Investment Option invests. The percentages are calculated using the expense ratio reported in each mutual fund’s most recent prospectus available prior to the date of this Disclosure Booklet and weighted according to the Investment Option’s allocation among the mutual funds in which it invests. Although these expenses are not deducted from an Investment Option’s assets, each Investment Option (other than the Guaranteed Option, which does not invest in mutual funds) indirectly bears its pro rata share of the expenses of the mutual funds in which it invests as these expenses reduce such mutual fund’s return.

(4) These figures represent the estimated weighted annual expense ratios of the mutual funds in which an Investment Option invests plus the fees paid to the Program Manager.

(5) The Guaranteed Option does not pay a Program Manager fee. TIAA-CREF Life Insurance Company (“TIAA-CREF Life”), the issuer of the funding agreement in which this Investment Option invests and an affiliate of TFI, makes payments to the Program Manager. This payment, among many other factors, is considered by the issuer when determining the interest rate credited under the funding agreement with KHEAA.

The example in the following table is intended to help you compare the cost of investing in the different Investment Options over various periods of time. This example assumes that:

  • You invest $10,000 in an investment portfolio for the time periods shown below.
  • Your investment has a 5% compounded return each year.
  • You withdraw your entire investment from the Investment Portfolio at the end of the specified periods for Qualified Higher Education Expenses.
  • Total annual asset-based fees remain the same as shown in the Fee Table above.

Although your actual costs may be higher or lower, based on the above assumptions your costs would be:

Investment Cost Example
Investment Option Approximate Cost of $10,000 Investment
  1 Year 3 Years 5 Years 10 Years
Age Band 0‑4 $62 $193 $336 $752
Age Band 5-8 $62 $193 $336 $752
Age Band 9-10 $62 $193 $336 $752
Age Band 11‑12 $62 $193 $336 $752
Age Band 13-14 $62 $193 $336 $752
Age Band 15 $62 $193 $336 $752
Age Band 16 $62 $193 $336 $752
Age Band 17 $62 $193 $336 $752
Age Band 18+ $62 $193 $336 $752
Guaranteed Investment Option
Guaranteed Option $0 $0 $0 $0
Multi-Fund Investment Options
Active Equity Option $93 $291 $506 $1,123
Equity Index Option $55 $174 $302 $678
Balanced Option $75 $234 $407 $909
Fixed Income Option $65 $202 $352 $788