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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All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s webpage for specific details regarding investment objective, risks associated with hedge funds, alternative investments and other risks, performance and other important information. Review this information carefully before you make any investment decision.