As with many areas of finance and investment, Environmental, Social, and Governance (ESG) consideration have increasingly made their presence known in the world of loan issuance. According to BloombergNEF, more than US$1.6 trillion in sustainable debt instruments were issued in 2021. Nearly one-third of this activity occurred in loans rather than bonds.
Interest in collective investment trusts (CITs) as plan investment options is steadily accelerating. As part of this growing attention, CIT governance practices, and the policies and procedures banks and trust companies use to govern their CIT offerings, are emerging as factors that may warrant consideration by plan fiduciaries when making plan investment option decisions.
Interest in Collective Investment Trusts (CITs) continues to accelerate in the retirement plan market. When plan fiduciaries are constructing a plan investment menu there are several factors that should be considered. Examining things such as investment eligibility, availability of information, fiduciary considerations and ongoing monitoring and oversight are just a few of these factors.