Mutual Funds Face Some Competition
Reported by PLANADVISER Staff
Among ISS BrightScope’s NEXUS consortium members, mutual funds make up about 30% more assets and gross inflows than do collective investment trusts. The graph demonstrates that aggregate advantage for mutual funds, displaying quarterly gross inflows for them as well as for CITs since the beginning of 2020.
The more fragmented nature of the adviser-sold market represented by NEXUS has helped mutual funds hold on as a default choice, as CIT providers must seek out a larger number of plans to account for the same level of assets.