Knowledge (XXG)

Collective trust fund

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Although they have been available for decades, early versions of collective trusts provided investors with little access to underlying holdings data and were valued infrequently, typically only once per quarter. As a result, collective trusts were quickly overshadowed by mutual funds, which provide
100:. However, when collective trusts are composed of IRA assets or so-called “Keogh plans,” or marketed to the public, some or all of these securities law exclusions and exemptions may not be available; in these situations, registration under one or more federal securities laws could be required. 141:. In addition to equity strategies, collective trusts also pursue a wide range of fixed income strategies, including actively managed strategies, passive strategies and others. Fixed income collective trust funds typically invest primarily in various types of debt instruments, such as 55:
CITs have existed since 1927. Their size in assets and importance in the retirement and pension fields have grown significantly in recent years. Estimated assets in collective trusts as of the end of 2016 exceeded $ 1.4 trillion. In many ways, CITs are similar to
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strategies). In addition, in recent years collective trusts have pursued their investment strategies by employing more innovative investment techniques, such as investing in other investment vehicles or using more innovative investment instruments, such as
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and greater transparency. However, given the later focus on retirement plan fees and full disclosure, and in light of technological advances, collective trusts have gained market share in the defined benefit and defined contribution markets.
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administered by a bank or trust company that combines assets for multiple investors who meet specific requirements set forth in the fund’s declaration of trust. Typically, a collective trust pools assets from corporate and governmental
173:, low operating costs, ease and speed of establishment, pricing and fee flexibility, diversification and access to investment talent. Disadvantages include less transparency than traditional 368: 45: 41: 298: 97: 49: 85: 68:
market, as of 2016 growing to over $ 1.5 trillion in assets and comprising over 20% of defined contribution plan assets.
178: 92:. In addition, transactions involving interests in collective trusts generally do not require an entity to register as a 363: 146: 142: 76:
Collective trusts are often used in connection with defined benefit plans and, when they can be valued daily, with
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and stock bonus plans, and charitable and other tax-exempt trusts. While operating in many respects similar to a
89: 113: 44:, but rather is established under Title 12, Section 9.18(a)(2) of the Code of Federal Regulations of the 138: 328: 61: 177:, difficulty tracking performance, less oversight of management, and an inability to rollover to an 105: 88:, and interests in these funds are generally exempt from registration under Section 3(a)(2) of the 170: 81: 353: 358: 117: 294: 150: 158: 29: 234:
U.S. Defined Contribution Distribution 2017: Re-Evaluating the Use of CITs in DC Plans
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Among the advantages of collective trusts versus other investment vehicles are:
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Getting Ahead of the CIT Boom: Aligning Capabilities to Capture DC Market Share
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as well. Collective trusts generally are excluded from the definition of an “
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loans, and different types of derivatives based on these instruments.
65: 329:"Why Your 401(K) is Switching to Collective Investment Funds (Cifs)" 299:"Reforming Pensions While Retaining Shareholder Voice" 247:
Use of CITs in DC plans booming, rises 68% since 2008,
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or model-driven) or actively managed (e.g., pursuing
60:, and thus, have become especially important in the 124:spectrum. These strategies may be passive (e.g., 249:Pensions and Investments (Feb. 22, 2016); SEI, 40:, a collective trust is not regulated by the 8: 282:Collective Trusts and Other Commingled Funds 199:Collective Trusts and Other Commingled Funds 112:Collective trusts pursue a wide variety of 262:15 U.S. Code §§80a-3(c)(11) and 77c(a)(2). 104:investor friendly features such as daily 46:Office of the Comptroller of the Currency 190: 42:U.S. Securities and Exchange Commission 284:, §4:02 (Law Journal Press, 2015 ed.). 201:, §1:02 (Law Journal Press, 2015 ed.). 369:Retirement plans in the United States 219:Coalition of Collective Trust Funds, 7: 14: 84:” under Section 3(c)(11) of the 98:Securities Exchange Act of 1934 50:U.S. Department of the Treasury 153:, sovereign government bonds, 86:Investment Company Act of 1940 1: 179:Individual Retirement Account 48:(OCC), a division within the 303:Boston University Law Review 221:Collective Investment Trusts 21:Collective Investment Trusts 96:under Section 15(a) of the 385: 78:defined contribution plans 271:15 U.S. Code §78c(a)(12). 210:12 C.F.R. §9.18(a)(2). 90:Securities Act of 1933 17:Collective trust funds 139:exchange-traded funds 114:investment strategies 232:Cerulli Associates, 62:defined contribution 364:Financial services 171:economies of scale 82:investment company 376: 349:Wills and trusts 333: 332: 325: 319: 318: 316: 314: 295:Webber, David H. 291: 285: 280:Lemke and Lins, 278: 272: 269: 263: 260: 254: 253:(Apr. 16, 2012). 243: 237: 230: 224: 217: 211: 208: 202: 197:Lemke and Lins, 195: 384: 383: 379: 378: 377: 375: 374: 373: 339: 338: 337: 336: 327: 326: 322: 312: 310: 293: 292: 288: 279: 275: 270: 266: 261: 257: 244: 240: 231: 227: 218: 214: 209: 205: 196: 192: 187: 167: 151:corporate bonds 74: 12: 11: 5: 382: 380: 372: 371: 366: 361: 356: 351: 341: 340: 335: 334: 320: 286: 273: 264: 255: 238: 225: 212: 203: 189: 188: 186: 183: 166: 163: 147:Treasury bills 143:Treasury bonds 73: 70: 30:profit sharing 13: 10: 9: 6: 4: 3: 2: 381: 370: 367: 365: 362: 360: 357: 355: 352: 350: 347: 346: 344: 330: 324: 321: 308: 304: 300: 296: 290: 287: 283: 277: 274: 268: 265: 259: 256: 252: 248: 242: 239: 235: 229: 226: 222: 216: 213: 207: 204: 200: 194: 191: 184: 182: 180: 176: 172: 165:Pros and cons 164: 162: 160: 156: 152: 148: 144: 140: 135: 131: 127: 123: 119: 115: 110: 107: 101: 99: 95: 94:broker-dealer 91: 87: 83: 79: 71: 69: 67: 63: 59: 53: 51: 47: 43: 39: 35: 31: 26: 23:(CITs) are a 22: 18: 323: 311:. Retrieved 306: 302: 289: 281: 276: 267: 258: 250: 246: 241: 233: 228: 220: 215: 206: 198: 193: 175:mutual funds 168: 122:fixed income 111: 102: 75: 58:mutual funds 54: 20: 16: 15: 313:18 November 116:across the 38:mutual fund 25:legal trust 343:Categories 185:References 106:valuations 159:unsecured 354:Pensions 297:(2019). 245:Steyer, 72:Overview 359:Banking 236:(2017). 223:(2015). 155:secured 126:indexed 34:pension 309:: 1018 130:growth 118:equity 66:401(k) 134:value 315:2019 157:and 120:and 132:or 19:or 345:: 307:99 305:. 301:. 181:. 149:, 145:, 52:. 32:, 331:. 317:. 64:/

Index

legal trust
profit sharing
pension
mutual fund
U.S. Securities and Exchange Commission
Office of the Comptroller of the Currency
U.S. Department of the Treasury
mutual funds
defined contribution
401(k)
defined contribution plans
investment company
Investment Company Act of 1940
Securities Act of 1933
broker-dealer
Securities Exchange Act of 1934
valuations
investment strategies
equity
fixed income
indexed
growth
value
exchange-traded funds
Treasury bonds
Treasury bills
corporate bonds
secured
unsecured
economies of scale

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