Governance
CIT governance is shaped by a triad of influences. State and federal banking laws, federal securities laws, and ERISA all inform the requirements of administering and maintaining CITs using prudent oversight.
Fee Flexibility
In general, CITs have lower administrative, marketing, and distribution costs versus mutual funds with similar strategies.
Tax Advantage
CITs are tax-exempt. As a result, the trustee generally is able to make investment decisions without tax considerations.
Fiduciary Responsibilities
By selecting a CIT, the plan sponsor is relieved from fiduciary responsibility for the day-to-day investment management decisions made on behalf of the CIT and remains responsible only for prudently overseeing and monitoring the CIT and its trustee.
Here are two questions
We encourage plan sponsors and their team to consider these questions as you explore various vehicle choices for defined contribution plans:
01
How can you optimize to better fulfill the investment needs of your participants?
02
What impact would the potential for lower fees and enhanced flexibility have on your participant’s long-term investment goals?
"As interest in CITs continues to surge in employer-sponsored retirement plans, we see a prime opportunity to streamline the use of these investment vehicles and to provide greater access to them for plan sponsors, advisors, recordkeepers and participants."
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- Rob Barnett; President & Chief Executive Officer
Additional Articles and Insights
Great Gray is a leader in the collective investment trust (CIT) market with over $188.4 billion in fund assets. These assets are spread across funds that are overseen by 82 sub-advisors. Additionally, Great Gray maintains trading agreements with 37 trading platforms that provide access to 200+ recordkeepers (as of June 30, 2024).
Taking the Lead
The Future of CIT Onboarding is Here
Being an industry leader in CITs means always thinking of ways to make managing qualified plans easier and more convenient for you – and the client accounts you manage. Our new approach to participation agreements will balance modern-day innovation with a streamlined approach so you can access everything you need in one location.
Learn how to start streamlining your approach to participation agreements with boardingpass™