'Collective trusts' are unfamiliar, opaque—and worth a second look

[SumDay]

Why 'Collective Trusts' Are Worth Considering - WSJ.com

A collective investment trust is created or administered by a bank or trust company. Like a mutual fund, it assembles assets from a number of sources. For instance, the Manning & Napier Pro-Mix Extended Term CIT, a target-risk trust for investors with a time horizon of seven to 20 years, had 57.3% of its $8.8 billion in assets under management in stocks, 40% in bonds and 2.7% in cash at the end of the third quarter.

Never heard of these! Learn something new every single day....

 

[Texas Proud]

Why 'Collective Trusts' Are Worth Considering - WSJ.com



Never heard of these! Learn something new every single day....

IIRC, you can only invest in them if you have a trust at that bank.... I guess I will read the story to find out...

OK, read the article and they were talking about in a retirement plan... but that means it has to be sponsored in that plan... Fidelity and Vanguard probably are not going to be adding in CITs...


How I remember them is that if you set up a trust at a bank... usually your trust did not have enough money to invest in individual stocks... so the bank had a common trust that you would invest and you would then get the diversification you needed... these were used long before mutual funds exploded in popularity...

I would bet that buying ETFs are cheaper than CITs... and also easier to follow....