Investment Product and Service Launches
Nationwide announces new suite of in-plan annuities; SC Ventures and Northern Trust to launch Zodia Custody; Wilmington Trust and Neuberger Berman collaborate on CIT distribution; and more.
No Decision to Come in Lawsuit Over Mismanagement of TDFs
The lawsuit against Principal Global Investors and related entities was abandoned.
Future Trends in CIT Product Development
Although collective investment trusts hold a fraction of the total assets in retirement plans, with ongoing changes in the broader intermediary landscape, they appear to be poised for continued growth.
Quest Diagnostics Faces Additional ERISA Litigation
The medical testing company is already facing scrutiny for its use of actively managed investments within its retirement plan; it is now the subject of a broader excessive fee lawsuit.
Another Lawsuit Challenges Use of Untested CITs in 401(k) Plan
A similar lawsuit was filed in May against an investment manager and a different plan sponsor.
Estee Lauder Faces 401(k) Plan Excessive Fee Lawsuit
The lawsuit argues that while the TDFs in the plan are CITs, they are private label CITs with much higher expense ratios than the typical CITs offered by JPMorgan.
Consider How CITs Can Fit Into Your Practice
As CIT Market Expands, More Get Coveted Tickers
Collective investment trusts are becoming more transparent; case in point, Hand Benefits & Trust Co. has gone live with more than 30 CIT tickers on the Nasdaq Fund Network.
CIT Expertise Puts Advisers in the Driver’s Seat
Knowledge about and connections to the collective investment trust marketplace can be a key selling point for retirement plan advisers in 2020 and beyond—especially when serving small and mid-sized clients.
CITs Fit Well With Best Interest Service
Among the attractive but less-often-discussed features of collective investment trusts is the fact that the sponsoring trustee—a bank or trust company—must commit to acting in the best interest of unit holders.
Legislation Would Allow 403(b)s to Invest in CITs
The bill introduced to Congress is designed to ensure public sector and nonprofit retirement plans have the same access to low-cost investments as for-profit retirement plans do.
Investment Product and Service Launches
AssetMark Financial Holding moves to institutional share classes; AssetMark adds solutions to investing platform; iShares expands ESG initiatives; and more.
Investment Product and Service Launches
FIDx and Transamerica partner to provide annuities; Fidelity adds customized models to AMP solution; J.P Morgan improves TDF analysis tool; and more.
Investment Product and Service Launches
Mesirow Financial presents third mutual fund and managed account program, and MSCI builds indexes to track long-term megatrends.
Advocacy Efforts for CITs Allowed in 403(b)s Underway
“We’ve heard the need for these investment options in 403(b) plans from advisers, consultants and plan sponsors for decades,” says Bruce Corcoran, managing vice president/head of 403(b) Business at ICMA-RC.
Nasdaq and Wilmington Trust to Provide Tickers for CITs
The two entities look to encourage CIT adoption among investors, a move that they say has stalled due to low awareness of the funds.
Investment Product and Service Launches
Morningstar releases goals-based planning solution; Schwab adds account conversion feature to portfolios solution; and AssetMark to offer Savos personal portfolios.
Education Among Advisers About CITs Is Needed: Cerulli
While they have grown at a compound annual growth rate of 7.25% a year in the past five years, if advisers were better educated about them and if the transparency issue could be addressed, that growth could rise significantly, according to the research firm.
Sponsors Seek Low-Cost TDFs
Index Funds Nearly Universal in Large 401(k) Plans
A BrightScope/ICI study also found collective investment trusts (CITs) accounted for a larger share of assets in larger plans than smaller plans.