8 Myths of Collective Investment Trusts

8 Myths of Collective Investment Trusts

BenefitsPro has published an article written by Marlene Satter covering the 8 Myths of Collective Investment Trusts (CITs).  The 8 myths are:

Myth 1: CITs are exactly like mutual funds.

Myth 2: CITs have a lower level of regulatory oversight than mutual funds.

Myth 3: Undocumented CITs lead to uninformed decisions.

Myth 4: High account minimums put them out of reach for all but large plan sponsors.  (Most CITs, including the Endowment Multi Asset ETF allocation (CUSIP 26923F105) have very small minimums).

Myth 5: Very few plans can use CITs.

Myth 6: Without daily trading, CITs aren’t appropriate for DC plans. CITs ARE traded daily.  (The Endowment Multi Asset ETF Allocation has a daily calculated NAV.)

Myth 7:  Not enough asset classes. (The Endowment Multi-Asset CIT bases its allocation on the Endowment Index^TM calculated by Nasdaq OMX®, which tracks a portfolio based upon the average asset allocation of over 800 university endowment funds. There are 19 ETFs within the Endowment Index^TM, representing 20 asset classes, making the Endowment CIT a globally diversified, multi-asset class asset allocated portfolio.)

Myth 8: No data.  Vendors such as Morningstar maintain data on CITs (The Morningstar database includes information on the Endowment Multi Asset ETF Allocation CIT).

You can read the entire article on the BenefitsPro website.