Why CITs
Collective Investment Trust Funds vs. Mutual Funds
A side-by- side comparison: CIT vs. Mutual Fund
CIT
- No
- Yes
- Typically no
- Yes
- Yes
- Yes
- Yes
- Yes
- More flexible
- No
Middle
- Initial deposit minimums
- Available to IRC 401(a) qualified retirement plans
- Distribution of dividends
- Trust, audit, and custody included
- Participant materials available
- Daily valued with daily liquidity
- NSCC tradable
- Transparent, institutional fee structure
- Recordkeeper pass‐through arrangements
- Redemption or CDSC fees
Mutual Fund
- May Apply
- Yes
- Exposure to retail flows
- Yes
- Yes
- Yes
- Yes
- Yes
- Less flexibility in pass‐through costs / fee structure
- Redemption and/or CDSC fees may apply
Characteristics in Common:
Available to IRC 401(a) qualified retirement plans | Yes |
Trust, audit, and custody included | Yes |
Participant materials available | Yes |
Daily valued with daily liquidity | Yes |
NSCC tradable | Yes |
Transparent, institutional fee structure | Yes |
Differenciators:
Initial deposit minimums:CITs | No |
Mutual Fund | May apply |
CITs | Typically no |
Mutual Fund | Exposure to retail flows |
CITs | More flexible |
Mutual Fund | Less flexibility in pass-through costs / fee structure |
What kind of entities or plans may use a CIT?
Eligible
Not Eligible
Featured CITs
SMART Funds®
A Unique Target Date Fund (TDF) Index Aimed at Fiduciaries
SMART Funds® is the first and only index focused on TDF prudence and performance expectations. It’s the ideal solution for fiduciaries who want to make prudent decisions. SMART Funds® delivers:
- Low fees
- Broad diversification at long dates away from the target date
- Rigorous risk controls near the target date
- A 2020 Top Performer with a continuous record of proven success going back to 1998
The SMART Design
SMART Funds® follows the patented Safe Landing Glide Path® (patent 8352349) that seeks to preserve the purchasing power of accumulated assets at the target date and asset growth during accumulation.
The SMART Funds® Index is investable as a collective investment fund for eligible qualified retirement plans through the NSCC Fund/SERV. It’s a proven performer with a live track record beginning in 2014 with back-testing to 1998. Learn more (link to fact sheets).
Consider How CITs Can Fit Into Your Practice
Jensen Quality Growth Collective Investment Fund
The Jensen Quality Growth Strategy is built on a commitment to investing in quality businesses that can weather all economic climates. It aims to provide attractive returns while mitigating downside risk. The In partnership with HB&T, Jensen offers qualified institutional investors the Jensen flagship Quality Growth Strategy with the lower shareholder servicing costs associated with a CIF.
Of the fewer than 250 companies that have met the initial threshold for inclusion in the Jensen Quality Universe, approximately 25 to 30 companies make the final cut for participation in the Jensen Quality Growth Fund. Jensen believes these quality businesses to be successful, well-managed companies that are attractively valued and positioned for long-term leadership in their industries.
Jensen Philosophy
A consistent, sustainable investment process is vital to weathering all economic climates. The strength of the Jensen investment philosophy is based on an unwavering commitment to investing in quality businesses. Jensen believes these quality companies possess sustainable competitive advantages, creating value as profitable businesses that can, over time, provide attractive returns with less risk than the overall market.
The Jensen Quality Growth CIF launched on February 1, 2019, and is accessible to eligible retirement plans through most recordkeeping platforms. Learn more here
SMART Funds® Today R2
SMART Funds®
A Unique Target Date Fund (TDF) Index Aimed at Fiduciaries
SMART Funds® is the first and only index focused on TDF prudence and performance expectations. It’s the ideal solution for fiduciaries who want to make prudent decisions. SMART Funds® delivers:
- Low fees
- Broad diversification at long dates away from the target date
- Rigorous risk controls near the target date
- A 2020 Top Performer with a continuous record of proven success going back to 1998
The SMART Design
SMART Funds® follows the patented Safe Landing Glide Path® (patent 8352349) that seeks to preserve the purchasing power of accumulated assets at the target date and asset growth during accumulation.
The SMART Funds® Index is investable as a collective investment fund for eligible qualified retirement plans through the NSCC Fund/SERV. It’s a proven performer with a live track record beginning in 2014 with back-testing to 1998. Learn more (link to fact sheets).
Check out available CITs
Talk to our experts about the details of these arrangements to determine proper eligibility.
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