Collective Investment Trusts (CITS)

 

The Potentially Lower-Cost Retirement Investment

Collective investment trusts (CITs) are pooled retirement investment vehicles maintained by a bank or trust company. They are only available through certain retirement plans. CITs can offer performance and benefits similar to mutual funds, but typically at lower costs.

As a result, CITs can mean sizable retirement plan savings, making them a potentially attractive option for plan sponsors and plan participants.

$2 Trillion and Counting

Many plan sponsors are choosing CITs to meet their ERISA-dictated fiduciary and legal obligations to offer low-cost investment options to plan participants. Today, more than $2 trillion in retirement savings are invested in CITs, in both defined benefit and defined contribution plans.*

Making the Choice

Plan sponsors and their financial advisors are exploring CITs subadvised by investment managers who also manage well-established mutual funds. Please contact your Legg Mason representative for more information about CITs.

 

* Source: http://www.alpsinc.com/insights/launching-a-collective-investment-trust

 

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