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Why CITs Might Be Right for Your Clients

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Why CITs Might Be Right for Your Clients

(New York)

Most advisors will be familiar with CITs, or collective investment trusts, but outside of wealth management, they are little discussed. Therefore, it may be interesting to learn that the industry has been growing strongly and is approaching $3 tn. A lot of the growth has been through 401(k) sponsors adding CITs to their menus. However, the products may have benefits for many, as they essentially use a mutual fund structure, but have significantly lower fees and distribution costs because they are not subject to SEC rules. According to one money manager, "CITs have always been an option for the retirement market, but once a manager sees that they can offer a CIT cost-effectively, it's a no-brainer".

FINSUM : This seems like a poorly understood, but potentially value option for many.

  • CITs
  • collective investment trusts
  • mutual funds
  • SEC
  • wealth management

    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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