Collective funds, or collective trust funds (CTFs) as they sometimes are called, have long been the Rodney Dangerfields of the 401(k) investment menu. If they have not exactly been struggling to gain the "respect" of plan sponsors, they certainly have had to overcome a series of misperceptions and dated assumptions about their capabilities and suitability.
Collective funds are not exactly new; the first collective investment fund was offered in 1927, a year before the first mutual fund was marketed to the public. In 1955, the Federal Reserve authorized banks to pool funds from pension, profit-sharing, and stock bonus plans (the IRS subsequently ruled that such funds could be tax exempt). In fact, until the 1980s, collective funds were a common retirement plan investment vehicle.
Collective funds now offer the same trading flexibility as mutual funds and, with an increased scrutiny on fees and fee disclosures, they can offer retirement plans a truly cost-effective alternative.
June 22, 2010
AllianceBernstein Launches Multimanager Target-Date Solution
AllianceBernstein Launches Multimanager Target-Date Solution June 22, 2010 (PLANSPONSOR.com) - AllianceBernstein has launched a Multimanager Retirement Strategies (MRS) target-date solution. Nevin E. Adams editors@plansponsor.com According to a press release, the offering “combines the strength of
March 22, 2010
Northern Trust Offers New Collective Trust Investment Products
Northern Trust Offers New Collective Trust Investment Products March 22, 1010 (PLANSPONSOR.com) - Northern Trust has launched a new investment fund platform that will consist of a series of collective funds sub-advised by investment managers retained and overseen by Northern Trust. Rebecca Moore editors@plansp
December 02, 2009
First Mercantile Names Regional Sales Director for Southeast
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November 10, 2009
Guardian Adds CIFs in Plan Management
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