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Important changes coming to

CollegeInvest Direct Portfolio College Savings PlanWe’re making some changes to your plan. Effective March 23, 2018, the

plan will have redesigned age-based options. These changes are automatic

and won’t count as one of your two annual exchanges. You don’t need to

do anything. You’ll receive an updated Plan Disclosure Statement in March;

however, here’s a preview of what you can expect.

Stock Bond Money market

Aggressive option

AggressiveGrowth Portfolio100% Stock

Growth Portfolio75% Stock25% Bond

ModerateGrowth Portfolio50% Stock50% Bond

ConservativeGrowth Portfolio25% Stock75% Bond

Income Portfolio75% Bond25% Moneymarket

Conservative option





Money Market Portfolio100% Money market

Age of beneficiary:0–5 years

Moderate option






6–10 years 11–15 years 16–18 years 19 years and up

These charts compare the current age-based program with the newly redesigned program. You can see how adding six broadly diversi�ed, low-cost Vanguard index funds as underlying investments helps the age-based options to more gradually reduce your exposure as your bene�ciary nears college age.

Current age-based options

Highlights of the changes

Smoothing the glide pathsYour plan is redesigning the glide paths of the plan’s three age-based options to allow for a smoother transition from more aggressive to more conservative investments over time.

Our age-based options, which invest in a broadly diversified combination of low-cost Vanguard index funds, will more gradually reduce an account owner’s stock exposure as the beneficiary nears college age. This means the age-based options that currently step down their stock exposure in 25% increments will change to 12.5% increments after March 23.

This “smoothing” effect will help protect an account from declines in the stock market while still allowing it to benefit when the market goes up. In other words, the changes will provide account owners with the opportunity to increase their returns without significantly increasing their risk.

These charts compare the current age-based program with the newly redesigned program.

Redesigned age-based options

2 3

Stock Bond Money market

Note: The new portfolios are only available for purchase as part of an age-based option and can’t be purchased individually.

Aggressive option

AggressiveGrowth Portfolio100% Stock

87.5% Stock12.5% BondPortfolio

87.5% Stock12.5% BondPortfoilo

GrowthPortfolio75% Stock25% Bond

62.5% Stock37.5% BondPortfoilo

Conservative option

62.5% Stock 37.5% Bond Portfolio




Age of beneficiary:0–4 years

Moderate option

87.5% Stock12.5% Bond Portfolio



Moderate Growth Portfolio50% Stock50% Bond


5–6 years 7–8 years 9–10 years 11–12 years





Income Portfolio75% Bond25% Money market

50% Bond50% Money Market Portfolio

25% Bond75% Money Market Portfolio

Money MarketPortfolio100% Money market

13–14 years





15–16 years 17-18 years 19 years and up

New portfolio

Moderate Growth Portfolio 50% Stock50% Bond

4

Transaction freezeAfter 2 p.m., Mountain time on March 22, through 6 a.m., Mountain time on March 26, you won’t be able to access your accounts, either online or by phone, while the program changes are being implemented. For specific details on what will happen and when, you can refer to “Transition dates and action items” on page 6.

How changes to stock exposure may affect your accountIf you’re not invested in one of our age-based options, these changes won’t affect your account. However, if you do invest in one of these options, you should consider the age of your beneficiary and review the charts on the previous page to see if your investments will change.

After March 23, account owners who are invested in an age-based option may end up with more, less, or the same amount of stock exposure. See the example to the right for a possible scenario of how your account’s stock exposure could change once these changes are in effect.

While a stock exposure increase or decrease of 12.5% may not seem substantial, we want to make sure you’re aware of the changes and that you have the opportunity to consider your risk tolerance prior to March 23.

Your investments after the transitionIf you’re invested in one of the age-based options after the close of business on March 22, your account balance will automatically transition to the new investment option(s), if applicable. In addition, your contribution allocations will be updated and your future contributions will be invested according to the new allocations.

You can change the allocation instructions for new contributions at any time with no annual restrictions. If you have an automatic contribution scheduled for March 24, 25, or 26, your account will be credited on March 26 with a trade date of March 26.

If you haven’t used your two allowable exchanges for 2018, you can use one to change your investments before 2 p.m., Mountain time, on March 22 or after 6 a.m., Mountain time, on March 26 or later.

What these changes mean for you

Age-based options with their underlying investments

*Portfolio can only be purchased as part of an age-based option.

Scenario:

Beneficiary is 6 years old and you’re invested in the Aggressive age-based option.

Current investment

New investment

Underlying investments

Port

folio

s

Agg

ress

ive

G

row

th P

ortf

olio

87.5

% S

tock

12

.5%

Bon

d Po

rtfo

lio*

Gro

wth

Por

tfol

io

62.5

% S

tock

37

.5%

Bon

d Po

rtfo

lio*

Mod

erat

e

Gro

wth

Por

tfol

io

37.5

% S

tock

62

.5%

Bon

d Po

rtfo

lio*

Cons

erva

tive

G

row

th P

ortf

olio

12.5

% S

tock

87

.5%

Bon

d Po

rtfo

lio*

Inco

me

Port

folio

50%

Bon

d 5

0% M

oney

M

arke

t Por

tfol

io*

25%

Bon

d 75

% M

oney

M

arke

t Por

tfol

io*

Mon

ey M

arke

t Por

tfol

io

Vanguard Institutional Total Stock Market Index Fund

70% 61.25% 52.5% 43.75% 35% 26.25% 17.5% 8.75% 0% 0% 0% 0%

Vanguard Total International Stock Index Fund

30% 26.25% 22.5% 18.75% 15% 11.25% 7.5% 3.75% 0% 0% 0% 0%

Vanguard Total Bond Market II Index Fund

0% 10% 20% 30% 40% 50% 60% 70% 42% 28% 14% 0%

Vanguard Total International Bond Index Fund

0% 2.5% 5% 7.5% 10% 12.5% 15% 17.5% 15% 10% 5% 0%

Vanguard Short-Term Inflation-Protected Securities Index Fund

0% 0% 0% 0% 0% 0% 0% 0% 18% 12% 6% 0%

Vanguard Federal Money Market Fund

0% 0% 0% 0% 0% 0% 0% 0% 25% 50% 75% 100%

12.5% increase in stock exposure

5

87.5% Stock 12.5% Bond Portfolio

Growth Portfolio 75% Stock 25% Bond

6 7

MARCH 2018

We’re here to help

If you have any questions about these changes, CollegeInvest can help.

Please call one of our education savings specialists at 800-997-4295

Monday through Friday from 6 a.m. to 7 p.m., Mountain time or email

at [email protected].

Transition dates and action items

March 22Requests for transactions and account changes will be processed as usual until 2 p.m., Mountain time, on Thursday, March 22. Requests received in good order after 2 p.m., Mountain time, through 2 p.m., Mountain time, on Friday, March 23, will be processed on Monday, March 26, using net asset values from Monday, March 26.

Important: To ensure these changes are successfully implemented, there will be a blackout period covering both phone and online access and transactions. Beginning at 2 p.m., Mountain time, on Thursday, March 22, you won’t be able to access your account online. We’ll make online account access available by 6 a.m., Mountain time, on Monday, March 26. During that entire time, no transactions or account changes can be initiated or requested, either online or by phone. Transactions made by phone will resume at 6 a.m., Mountain time, on Monday, March 26.

March 23–25Account assets are transferred from existing portfolios to new portfolios, as applicable.

March 26Recurring contributions (automatic investments) scheduled for March 24, 25, or 26 will be processed using net asset values of Monday, March 26. Requests for transactions or account changes that are received by mail after 2 p.m., Mountain time, on Thursday, March 22, through 2 p.m., Mountain time, on Friday, March 23, will be processed with the new allocations using net asset values as of Monday, March 26.

22 23 2425 26

© Copyright 2018 CollegeInvest. All rights reserved.CO52930D 022018

Important DisclosuresFor more information about the CollegeInvest Direct Portfolio College Savings Plan, visit collegeinvest.org to obtain a Plan Disclosure Statement and Participation Agreement. Investment objectives, risks, charges, expenses, and other important information are included in these documents; read and consider them carefully before investing. Administered and issued by CollegeInvest. Vanguard Marketing Corporation, Distributor and Underwriter.

If you are not a Colorado taxpayer, consider before investing whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program. Other state benefits may include financial aid, scholarship funds, and protection from creditors.

In the CollegeInvest Direct Portfolio College Savings Plan, the Income Portfolio’s and the Money Market Portfolio’s investment in Vanguard Federal Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of the investment at $1 per share, it is possible that the portfolios may lose money by investing in the fund. Investments in the CollegeInvest Direct Portfolio College Savings Plan are also not guaranteed by the State of Colorado or any other governmental entity, The Vanguard Group, Inc. or Ascensus College Savings, and may lose value including the principal amount invested.

CollegeInvest is the issuer of plan securities and is the trustee of the plans in accordance with Colorado law. CollegeInvest also oversees the Managers’ activities and provides certain administrative services, such as marketing, audit, and financial statements, in connection with the plans.

Ascensus Broker Dealer Services, Inc. and Ascensus College Savings Recordkeeping Services, LLC serve as Plan Manager for the CollegeInvest Direct Portfolio College Savings Plan and have overall responsibility for the day-to-day operations. The Vanguard Group, Inc. also serves as Plan Manager and Investment Manager for the CollegeInvest Direct Portfolio College Savings Plan, and Vanguard Marketing Corporation, an affiliate of The Vanguard Group, Inc., assists CollegeInvest with marketing and distributing the Direct Portfolio College Savings Plan. The Direct Portfolio College Savings Plan’s portfolios, although they invest in Vanguard mutual funds, are not mutual funds and you could lose money by investing in the plan.

This material may be used in conjunction with the offering of units of CollegeInvest Direct Portfolio College Savings Plan portfolios only if preceded or accompanied by the current Plan Disclosure Statement and Participation Agreement. CollegeInvest and the CollegeInvest logo are registered trademarks of CollegeInvest. CollegeInvest Direct Portfolio College Savings Plan is a registered service mark of CollegeInvest. Ascensus and the Ascensus logo are registered trademarks of Ascensus, Inc.

U NI ON

CONSTITUTION

AND

A Division of Department of Higher Education

Mailing addressCollegeInvest Direct Portfolio College Savings Plan P.O. Box 219931Kansas City, MO 64121-9931

For overnight delivery onlyCollegeInvest Direct Portfolio College Savings Plan 920 Main Street, Suite 900Kansas City, MO 64105-2017

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