Collective Investment Trusts are pooled investment products that offer a lower cost alternative to mutual funds to expand your services into the defined contribution and defined benefit arena. Compared to mutual funds, Collective Investment Trusts also have fewer regulatory and infrastructure requirements—for example, they are governed by state law rather than requiring SEC registration. Ultimus supports many CIT Funds by providing a complete turnkey solution for investment managers that includes:
- Trusteeship (via a partner trust company)
- Administration
- Accounting
- Custody (via a partner trust company)
- Transfer Agency
Adviser Benefits
- Multiple accounts combined and managed under a defined investment strategy similar to a mutual fund
- Fewer regulatory requirements than mutual funds
- Trustee services provided through a partner dedicated to CITs
- Enhanced fee customization relative to mutual funds
- Infrastructure for mutual funds supporting your CITs
- Distribution support provided which is generally not offered by other CIT administrators
Investor Benefits
The streamlined nature of a CIT plus its economies of scale means your investors may enjoy:
- Lower expenses from the pooling of assets
- Lower underlying CIT fund expenses compared to mutual funds
- Access to investment management firms that may not offer their strategies in a mutual fund
Contact us to learn more or click here to read about our services for registered funds, including collective investment trusts.