BOSTON -- The key drivers behind the increased use of collective investment trusts are the focus of a new report from Aite Group LLC.
CITs pool assets from retirement plans participants into a single portfolio. Sometimes referred to as commingled funds by institutional investors and pension plans, CITs have developed rapidly over the past five years, according to Aite's Collective Investment Trust Market Overview report. Demand from institutional investors seeking customizable and lower cost alternatives to retail mutual funds has contributed to the recent CIT growth trend especially after the 2006 passage of the Pension Protection Act.
Aite reported that in the last year larger, billion-dollar-plus plans as well as smaller, $100 million plans have turned to CITs seeking to cater to smaller pension plans largely ignored by larger plans.
"The collective investment trust's attractiveness is driven by two key factors: low cost and ease of use," said Phillip Silitschanu, senior analyst with Aite Group and author of the report. "The primary driver for the inherently low cost for collective investment trust is the less rigorous regulatory burdens placed upon the investment managers and trustee. In order to attain the lowest possible cost, however, all parties involved need to seek out the trustee offering the lowest servicing cost."
OBS Financial Hires Vice President
WHITEHOUSE, Ohio -- Mike Natyshak has been hired as the vice president of qualified pensions at OBS Financial Services Inc.
Natyshak's 18-year career experience includes account vice president at CUNA Mutual Group where he was responsible for sales, consulting and servicing of benefit programs, including defined benefit pension and defined contribution pension plans, executive benefits solutions and investment advisory solutions for credit unions.
The $1.9 billion Texans Credit Union bought OBS Financial Services in 2007. The registered investment advisory and asset management firm serves community banks and trust firms nationwide.
