Collective Investment Trusts (CITs) are gaining traction and eligible investors are combining these assets into a single investment portfolio, or fund. These tax-exempt, pooled investment vehicles are typically sponsored and maintained by a bank or trust company acting as trustee. Often, they are used to pursue a set of stated investment objectives and strategies.
In recent years, CITs have seen tremendous growth and are becoming a bigger part of the retirement puzzle.
In response to advisor concern that the lack of transparency in CITs caused them to be a barrier to utilization, Wilmington Trust proudly partnered with Nasdaq Fund Network in 2019 marking the very first time investors could access information on these low-cost investment vehicles via a standardized ticker.
On June 25, 2020, Wilmington Trust’s Head of Retirement Distribution and Product Leader of Collective Investment Trusts Rob Barnett was joined by Nasdaq Fund Network’s managing director Devin McCarthy and global markets reporter Jill Malandrino to discuss what constitutes a CIT, the barriers to transparency, and how that transparency is impacting the industry.
For more information about Wilmington Trust’s partnership with Nasdaq, read the full press release.
Wilmington Trust, N.A. Collective Investment Funds (“CIT Funds or “the Funds”) are bank collective investment funds; they are not mutual funds. The Funds and units therein are exempt from registration under the Securities Act of 1933, as amended, and the Investment Company Act of 1940 as amended. Participation in the Funds is limited primarily to ERISA-qualified defined contribution plans and certain state or local government plans. Wilmington Trust, N.A. serves as the Trustee of the Wilmington Trust Collective Investment Trust and maintains ultimate fiduciary authority over the management of, and investments made in, the portfolio. Investors should consider the investment policy, objectives, risks, charges and expenses of any pooled investment company carefully before investing.
The Funds are not available to Keogh plans, IRAs and health and welfare plans. The Additional Fund Information and Principal Risk Definitions contains this and other information about a Collective Investment Trust Fund and is available at https://www.wilmingtontrust.com/repositories/wtc_sitecontent/pdf/principal_risk_definitions.pdf. This document should be read carefully before investing. Ask for a copy by contacting Wilmington Trust, N.A. at 866.427.6885 or firstname.lastname@example.org.
Investments in the Funds are not insured by the FDIC or any other government agency, are not deposits of or other obligations of or guaranteed by Wilmington Trust, or any other bank or governmental agency, and are subject to risks, including possible loss of the principal amount invested.