Jeb Bowlus of Great Gray Trust makes the case that Collective Investment Trusts (CITs) are well-regulated and confer retirement investor protections not present in their SEC-registered mutual fund counterparts. Jeb Bowlus is deputy general counsel at Great Gray Trust Company, LLC.
While both mutual funds and CITs are extensively regulated to protect investors, CITs offer unique advantages for retirement plans. Their exemption from SEC regulations and their tax-exempt status result in a more cost-effective and flexible investment option for retirement plan participant. Coupled with ERISA’s fiduciary protections, CITs must follow a longstanding and comprehensive legal structure designed to protect plan participants and maximize their risk-adjusted financial returns. All of which make CITs increasingly attractive when selecting retirement plan investment options.
Read the full article in PlanAdviser to learn more.