Plan Sponsors Ask…

Question: Our committee is considering adding a collective investment trust (CIT) to our plan investment menu. Is there any data available showing uptake of CITs by small or midsized plans?

Answer: Demand for CITs continues to increase among small and midsize plans, according to a recent report from Sway Research. Defined contribution investment only firms surveyed by Sway estimate that 22% of current CIT sales are generated from plans with less than $50 million in assets, with another 23% coming from plans holding between $50 million and $100 million in assets.

The survey notes that sponsors of these smaller plans are primarily interested in the CITs because they want to take advantage of lower fees and cost savings relative to mutual funds (due to their less burdensome reporting and administrative requirements). For more information on CITs, you can review this FAQ from Putnam Investments (click here to review CIT FAQ’s).


Consider TRA's 3(16) Fiduciary Services & Plan Administration

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