Demand for Collective Investment Trusts Increases, Aite Finds
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.