Once primarily associated with passively managed investment strategies, interest in collective investment trusts, or CITs, is said to be increasing – and for a variety of reasons.
Among the reasons typically cited: a greater interest in customized solutions and a wave of excessive fee litigation targeting the use of more expensive alternatives. But have we reached that “tipping point” for CIT adoption? And has that showed up among your clients and prospects?
Data from the Investment Company Institute shows that assets held in CITs by 401(k) plans with 100 participants or more increased from 6% in 2000 to 17% in 2015. In addition, data by Cerulli Associates shows that assets in CITs rose nearly 12% from the previous year to $2.8 trillion at year-end 2016. Cerulli notes that 49% of 401(k) plan sponsors with $100 million to $250 million in 401(k) plan assets were considering an investment vehicle change during the 2017 plan year.
You can respond to this week’s NAPA Net reader poll at https://www.research.net/r/ZTL6S36.
And we’ll wrap it all up for you on Friday.
p.s. don’t forget to register for the NAPA 401(k) SUMMIT. Nashville, Tennessee, April 15-17.
