By Betsy Warrick
Senior Vice President, Invesco Trust Company
Collective investment trusts (CITs) — pooled investment funds designed exclusively for qualified retirement plans — have been garnering a lot of attention and assets in recent years. They account for $2.4 trillion (or 16%) of the $15 trillion invested in 401(k)s and pension plans, up from $1.3 trillion (12.7% of the total) in 2009, according to the Investment Company Institute and Cerulli Associates.1
One of the reasons I believe CITs are becoming more popular these days is the enhanced understanding plan fiduciaries and other decision-makers have about the investment vehicles. Such advisors, I believe, need to be well-versed in CITs to be able to objectively weigh their benefits and considerations. A lack of familiarity isn’t a good reason to ignore these investment vehicles, which may be appropriate for many plans.
To help with the information-gathering process, read top questions from clients and prospects about CITs.
1 Source: The Wall Street Journal, “Some Funds in Your 401(k) Aren’t Really Mutual Funds After All,” Sept. 25, 2015
Invesco Distributors, Inc. 08/16