About Portfolios, Investments, and Performance

• How do I choose my investments?¹
• Can I change how my account is invested?
• Can I pick the investments for my account?
• Who are the portfolio managers?

How do I choose my investments?

Fidelity offers a wide range of investment options for the savings in your 529 Plan account.

To help determine what may be best for you, you should ask yourself two questions:

• Do I want a portfolio that automatically becomes more conservatively invested as my child nears college age?
• Or do I want to choose my own investments?¹

Fidelity offers three Age-Based Investment options that adjust their asset allocations automatically, becoming more conservative as the beneficiary nears college age. These options provide access to Fidelity Funds, and Fidelity Index Funds, as well as portfolios that invest in funds managed by several different companies, including Fidelity.

Age-Based Strategy (Fidelity Funds) - designed to generate returns that attempt to beat a major market index over the long term. These portfolios invest solely in Fidelity funds that are managed by dedicated portfolio managers who are making investment decisions backed by Fidelity's proprietary investment research.

Age-Based Strategy (Fidelity Index Funds) are designed to generate returns that closely mirror the performance of a major market index over the long term. These portfolios invest solely in Fidelity Index funds, and are able to keep transaction costs and other expenses low because they are passively managed. This means that the securities currently held in the respective index determine your investments.

Age-Based Strategy (Multi-Firm Funds) - like our Fidelity Fund Portfolios, these are designed to generate returns that attempt to beat a major market index over the long term and are managed by dedicated portfolio managers at Fidelity. These provide an opportunity to diversify your funds across multiple fund companies. Investment decisions are backed by Fidelity's proprietary investment research.

Custom Strategy: If you want to build your own strategy, choose from a range of investment portfolios offered by Fidelity. This option provides you with access to a mix of equity, fixed income, money market, and Bank Deposit Portfolio, as well as our Age-Based portfolios.

If you want a portfolio that automatically reallocates as your child approaches college age, we offer an Age-Based Strategy, which features investment portfolios that correspond with a beneficiary's year of birth.

Within the custom strategy is also the Bank Deposit Portfolio*, which is comprised exclusively of a deposit into an FDIC-Insured interest-bearing account. This portfolio offers investors the protection of FDIC insurance eligibility while providing all the benefits of savings in a dedicated, tax-advantaged 529 plan account.

See Investment Options for more information.

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Can I change how my account is invested?

Yes. New deposits can be made into any of the Portfolios available in the Fidelity managed 529 Plans. Many customers establish standing instructions, for example making all contributions to the same portfolios each period, to avoid providing new instructions with every deposit.

You may reallocate previously invested monies (contributions and earnings) once each calendar year and upon a change in the Beneficiary. See Portfolios & Performance for more information.

Use the 529 Plan Investment Instructions Form (PDF) . This page will open in a popup window. to change instructions on current and future investments.

Can I pick the investments for my account?

You choose the Portfolio(s), but not the individual funds. The IRS does not allow a Participant to have direct or indirect control over the investments in a 529 account. The 529 Portfolios are invested in a combination of mutual funds. To see a list of the underlying mutual funds that make up each Portfolio, download or request an Enrollment Kit.

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Who are the portfolio managers?

Mr. Sharpe is a portfolio manager in the Global Asset Allocation Group of Fidelity Management & Research Company (FMRCo), the investment advisor for Fidelity's family of mutual funds. Mr. Sharpe currently co-manages Fidelity Freedom Funds, Fidelity Advisor Freedom Funds, VIP: Freedom Funds and the IRS Code 529 tax advantaged College Savings Plans for the states of New Hampshire, Massachusetts, Delaware, Arizona (each one since 2005). He also co-manages the Fidelity Four-In-One Index Fund, Fidelity Series Broad Market Opportunities Fund, Fidelity Strategic Income Fund, Fidelity Advisor Strategic Income Fund, VIP: Strategic Income Fund, Fidelity Strategic Dividend & Income Fund, Fidelity Advisor Strategic Dividend & Income Fund, as well as Fidelity Strategic Real Return Fund, Fidelity Advisor Strategic Real Return Fund, Fidelity Stock Selector All Cap Fund and Fidelity Dynamic Capital Appreciation Fund.

Mr. Sharpe joined Fidelity in 2002 as an asset allocation director in the Structured Investment Group of FMRCo. Prior to joining Fidelity, Mr. Sharpe was an investment policy officer in the Investment Strategy Group with John Hancock Financial Services, Inc. in Boston.

A Fellow of the Society of Actuaries and Chartered Financial Analyst charterholder, Mr. Sharpe is a member of the American Academy of Actuaries and member of the CFA Institute.

Mr. Dierdorf is a portfolio manager in the Asset Allocation Group of Fidelity Management & Research Company (FMRCo), the investment advisor for Fidelity's family of mutual funds. Mr. Dierdorf currently co-manages the Fidelity Dynamic Strategies Fund, Fidelity Four-In-One Index Fund, Fidelity Income Replacement Funds, Fidelity's 529 College Savings Plans and Fidelity Freedom Index Funds.

Previously with Fidelity, Mr. Dierdorf was co-manager for the Fidelity ClearPath portfolios, lifecycle funds designed for Canadian investors, until May 2008. He began managing Fidelity's 529 College Savings Plans in October 2007 and Fidelity Dynamic Strategies Fund since its inception in November 2007. He assumed responsibility for Fidelity Four-In-One Index in January 2009 and both the Fidelity Freedom Index Funds and Fidelity Income Replacement Funds in June 2009.

Prior to joining Fidelity in 2004, Mr. Dierdorf held various actuarial and investment positions at CIGNA.

Mr. Dierdorf is a Chartered Financial Analyst charterholder, a Fellow of the Society of Actuaries and a member of the American Academy of Actuaries.