New Investment Lineup
New investment lineups effective May 1, 2019
The University System of Georgia’s investment advisory committee partnered with CAPTRUST, an independent investment advisory firm, to build new investment lineups for the ORP, 403(b) and 457(b) plans with Fidelity, TIAA and VALIC. The investment advisory committee will work with CAPTRUST to monitor the performance of the investment options. In addition, a self-directed brokerage account will be available outside of the core investment lineups. You may view each provider’s new lineups in the Guide to New Investments located to the right.
The new investment lineups offer you several benefits:
- Simplified menu and tiers. New tiers to help you make investment choices.
- Diversification. The lineup provides an array of investments across multiple asset classes.
- Fee transparency. You will have a clear picture of fees and expenses for the options you choose. Many investments have lower fees.
- Self-directed brokerage account. This option will be available in all three plans from all three providers and will offer access to thousands of additional investments for experienced investors. Investment options available in the brokerage account vary by provider. Additional brokerage account fees apply.
The University System of Georgia’s new investment options will be arranged in a tiered structure, offering a variety of investments from several fund families. You can create a tailored retirement strategy by investing in options from any of the tiers.
Tier 1: Allocation Tier
The Allocation Tier includes options that offer a diversified investment within a single fund. Many options in this tier are age-based target-date funds. Selecting a target- date fund may be a good choice if you prefer a hands-off approach to managing your retirement savings. Each of these investments creates a diversified portfolio within one fund, based on your expected retirement year. The “target date” indicates when you may plan to begin making withdrawals, and the fund’s investments become more conservative as the target date approaches. After the target date, the fund may be merged into a fund designed for investors already in retirement.
Tier 2: Passively Managed/Index Fund Options
As a part of the core lineup, passively managed funds are offered for participants who would like to construct and manage their own investment portfolios to meet their specific objectives. Passive management is designed to provide consistency of returns relative to a benchmark, at relatively low cost.
Tier 3: Actively Managed Fund Options
As another part of the core lineup, actively managed funds are also offered for participants who would like to construct and manage their own investment portfolios to meet their specific objectives. Active strategies are designed to have the potential to generate above-market returns.
Tier 4: Self-Directed Brokerage Services
For experienced investors seeking maximum flexibility, the USG Retirement Program offers a self-directed brokerage option that allows you to select from a wide array of mutual funds, individual stocks and ETFs for employee contributions. Investors may use this feature to add diversification above and beyond the core offerings. However, please note that some investments offered through the self- directed brokerage window may have additional fees and expenses, and annual administrative fees may also apply. Please check with your provider prior to investing. It is your responsibility to determine if this option is appropriate for your goals. You are responsible for monitoring these investments over time and adjusting your portfolio when necessary.
Please note: USG does not monitor investments offered through the brokerage option.