Global Fund Services
Grow. Manage. Adapt.
In the unpredictable and fast-evolving asset management industry, you require dynamic, customizable solutions to support your investment strategies. From market insights to assistance with regulatory change and cost-control, Northern Trust helps our clients build, grow, adapt, and thrive.
Collective Investment Trusts
Efficiency and flexibility make CITs a natural fund solution for retirement plans.
Collective investment trusts (CITs) are a cost-effective, versatile and competitive alternative to mutual funds for defined contribution (DC) plans. CITs are a tax-exempt, pooled investment vehicle that are held by a bank or trust company and not offered to retail investors. CITs allow plan sponsors to offer investment strategies with a broader, more diverse range of asset types, including derivatives, bank debt, and exchange-traded funds (ETFs), which are more restricted in mutual funds. From an operational perspective, the CIT as a vehicle is an efficient way for plan sponsors to access investment strategies and the managers that they prefer to have in their plan lineups.
A Full Service Offering
Managers that choose CITs for their retirement fund investors will need a servicing partner who understands the importance of the vehicle, has the depth and expertise to service it, and possesses the operational strength and technology to support the complexity of a diverse group of investment strategies. At Northern Trust, we have a deep understanding of this vehicle. With a strong history of supporting CIT structures, a tailored approach to service, local and global capabilities, and advanced technology platforms, we help our clients streamline their operations, improve efficiency, and adapt to reach their goals.
CIT POISED TO SHINE ACROSS THE DC STAGE
Watch the video and read the full Q&A interview
Want to learn more about the benefits of CITs? Northern Trust expert, Ryan Dargis, sat down with Pensions & Investments for an in-depth discussion on why plan sponsors are increasingly turning to CITs as a lower cost, more flexible and efficient alternative to traditional mutual funds in DC plans. Watch the video interview and read the written Q&A to learn more.
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