Fiduciary Focus – Collective Investment Trusts Capturing Assets and Attention

Blaine F. Aikin, AIFA®, CFA®, CFP®, AIF®, Executive Chairman of fi360
John Faustino, Chief Product and Strategy Officer

July 26, 2016

Collective Investment Trusts (CITs) have been capturing lots of attention and assets lately. CITs offer retirement plan fiduciaries an attractive, generally lower-cost, alternative to mutual funds. Assets invested in these vehicles have grown from about $900 billion in 2008 to over $1.5 trillion at the end of 2014, according to Pension & Investments data.

CITs have also caught the attention of regulators and litigators. At the end of last year (12/29/15), Schlichter, Bogard, and Denton filed a class action suit in the case of Bell, et al. versus Anthem Inc., alleging in part that lower-cost CITs should have been selected for Anthem’s 401k plan instead of “identical” higher-cost mutual funds.

Plan fiduciaries and investment fiduciary advisors need to be well versed in CITs and how to evaluate them. This webinar will cover what CITs are, similarities to and differences from other pooled investments, how to analyze them, and trends relating to CITs that will be important for investment fiduciaries to follow.