Use of Liquid Alts in Defined Contribution Plans is on the Rise
ETF Model SolutionTM’s Collective Investment Fund was mentioned today in an article on DailyAlts.com.
“Last week, the Alta Trust Company and ETF Model SolutionsTM announced the launch of the Endowment CIF (Collective Investment Fund), which is designed to emulate the strategies of endowments, pension funds, and defined benefit plans. But instead of investing in illiquid alternatives like limited partnerships and private placements, the Endowment CIF will use alternative ETFs and mutual funds to obtain its alternative allocations.
Collective Investment Funds (CIFs) are pooled investment vehicles that are only available to qualified investment plans, but they’re otherwise similar to open-ended mutual funds. ETF Model SolutionsTM says the Endowment CIF offers reduced portfolio volatility due to its inclusion of alternatives, which have little correlation to the stock and bond markets. The fund is designed to have roughly 40% of its assets allocated to global stocks, 20% to global bonds, and 40% to liquid alternatives.
The Alta Trust Company, which sponsors the Endowment CIF, has selling agreements with most retirement-plan platforms, which means that most advisors will be able to offer their clients exposure to the Endowment CIF through existing platform relationships.”
To read the full article click here.
