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Collective Investment Trusts

Collective investment trusts (CITs) are tax-exempt, pooled investment funds that are only available to 401(k) defined contribution (DC) and other ERISA-qualified plans. A cost-effective and flexible alternative to mutual funds, CITs can help plan sponsors act in the best interest of their participants. CITs have captured a growing share of DC plan assets in the past decade. Through CITs, plan sponsors can access institutional-quality investment strategies that are maintained by a bank or trust company and are held to ERISA fiduciary standards.

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Benefits of CITs

Lower costs

  • Generally lower administration, marketing, and distribution costs
  • May offer flexible pricing

Efficient operations & marketing

  • Can be quickly set up and easy to maintain
  • No minimum investment requirements for any size plan
  • Detailed investment fact sheets

Flexible and stable

  • Can adjust products as demand changes
  • Institutional guidelines may allow flexibility in implementing strategies
  • Not generally subject to volatility as CITs are only offered to qualified retirement plans, which tend to be consistent long‐term investors
  • Do not rely on investment income limitations to maintain tax‐exempt status.

Vontobel CIT Strategies

 

Vontobel International Equity Trust

Invests across both developed and emerging markets outside the US

We can establish CITs for all of our strategies. To inquire about availability of CITs, contact Matt McMenamy.

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Matthew McMenamy

Head of North America Institutional Client Group

The Vontobel Collective Investment Trust (the “Trust”) is a series of collective investment funds for investment by tax qualified pension and profit sharing plans, related trusts, and governmental plans as more fully described in the Declaration of Trust. SEI Trust Company (the “Trustee”) serves as the Trustee of the Fund and maintains ultimate fiduciary authority over the management of, and investments made in, the Funds. The Trustee is a trust company organized under the laws of the Commonwealth of Pennsylvania and wholly owned subsidiary of SEI Investments Company (SEI). The Trust is managed by the Trustee based on the investment advice of Vontobel Asset Management Inc, the investment adviser to the trusts.

As bank collective trusts, the Fund and units therein are exempt from registration under the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended. Each Fund is a commingled investment vehicle, and as such, the values of the underlying investments will rise and fall according to market activity; it is possible to lose money by investing in the Funds. For further information, qualified plan participants should consult their plan sponsors.