457(b) FICA Alternative Investments

The Investment Advisory Committee (Committee) was established by ESC Region 10 to oversee the administration investments of the assets and administration of the Region 10 Teacher/Employee Recruitment and Retention Program, 457(b) FICA Alternative Plan and 457 Cooperative and Master Plan (the “Plans”).

The Committee is comprised of ten members who are all superintendents or senior administrators in participating school districts. They are appointed by the Executive Director of ESC Region 10. The Committee has implemented the services of a professional investment advisor, TCG Advisors, LP (TCG) to advise it regarding the investment of the Plan’s assets.

TCG is registered directly with the Securities and Exchange. TCG is different from many other investment companies offering these types of plans in school districts. This is because on the ESC Region 10 Plans TCG does not accept any commissions or other compensation from any mutual fund company, insurance company or other investment company. TCG is paid a fee by the Plans. This is beneficial to both the Committee and the Plans’ participants because TCG is not influenced by the type of commission an investment pays nor is TCG confined to one family of funds. In fact, TCG has a universe of over 23,000 mutual funds from which to research and choose. TCG works with the Investment Advisory Committee to narrow down this field based on fund performance, volatility and expense as well as what fits into the Plans’ overall strategy.

TCG also advises the Committee to buy and hold individual high quality bonds to enhance the stability and safety of the investments and to lower the cost of investing. Two of the Plans now have substantial bond portfolios as part of their investments.

In consideration of the demographics of the Plans’ participants, the Plans’ cash flow, and the financial status, the Committee has adopted an overall investment objective for the Plan’s assets of long-term capital appreciation. Long-term is defined as a 7-10 year period. The Committee monitors the Plans’ performance on a quarterly and annual basis and makes changes in the investments based on TCG’s recommendations. Everyone involved in the Plans has only one investment goal: do what is right for the Plans’ participants.

For more information, please view the Investment Policy Statement.