This is a fairly conservative portfolio with a mix of approximately 40% stock funds and 60% fixed-income funds. Like all of the portfolios, it's professionally managed by T. Rowe Price and features very low fees. This portfolio can be a good choice if you are looking for a balanced low-cost approach to investing.

This portfolio can also be a good choice if you believe that your child may attend the University of Alaska; however, it can still be used at virtually any college in the country.

In fact, the ACT Portfolio locks in the current tuition value at the University of Alaska. This feature is called the UA Tuition-Value Guarantee*, and it allows you to purchase UA tuition credits now for use in the future. Your contributions to the portfolio are tracked and reported to you in both their monetary and corresponding UA tuition credit values. This guarantee removes the uncertainty of predicting future UA tuition and ensures that your child's tuition costs will be covered regardless of future tuition increases. If your child attends a school other than UA, you can still redeem the account's full monetary value. Only the ACT Portfolio offers the Tuition-Value Guarantee.

ACT Portfolio

ACT PORTFOLIO TARGET ALLOCATIONS RANGES
Equity Index 500 and/or Extended Equity Market Index 35 to 45%
U.S. Bond Index 15 to 65%
Short-Term Bond and/or Summit Cash Reserves 0 to 40%

An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

The target asset allocation depicted for the ACT Portfolio is as of fourth quarter 2008. The asset allocation for this portfolio is based on the target ranges below and may be higher or lower than this example. For the most current target allocation, please call 1-800-478-0003 to speak with a customer service representative.

*The guarantee ensures that your earnings will match or surpass the rate of tuition increases at UA. The guarantee begins July 1 following the date of your contribution and applies to distributions used to pay tuition at the University of Alaska. Remember that while the ACT Portfolio guarantees that your earnings will keep pace with tuition increases at UA when used to pay for tuition at UA, it does not guarantee the value of your account if you use the money elsewhere or for another purpose besides tuition. Investment results are based on market performance. If used for education expenses elsewhere, the full market value of the ACT Portfolio account is available.

If you are not an Alaska resident, you should compare this Plan with any 529 college savings plan offered by your home state or your beneficiary's home state and consider, before investing, any state tax or other benefits that are only available for investments in the home state's plan. You can call 1-866-277-1005 or visit the forms section of our site to request a Plan Disclosure Document, which includes investment objectives, risks, fees, charges and expenses, and other information that you should read and consider carefully before investing. T. Rowe Price Investment Services, Inc., Distributor/Underwriter.