Investment management solutions provider Spouting Rock Financial Partners has launched a separate retirement division—a specialized provider of collective investment trusts—operating under the brand Collective Retirement Solutions LLC, it announced Thursday.
The venture will operate as an affiliate of Spouting Rock Financial Partners, offering a “comprehensive suite” of CITs with different investment strategies implemented by selected managers, some of whom are a part of the affiliated Spouting Rock Asset Management platform, the company’s press released stated.
“Collective Retirement Solutions represents a new chapter in our journey to redefine and elevate retirement investment possibilities,” Bill Higgins, managing partner at Collective Retirement Solutions, said in the release. “With a strong commitment to our clients’ success, CRS will continuously strive to deliver tailored Collective Investment Trusts that align with their unique goals and objectives.”
The retirement solutions division previously operated under the parent company as Spring Rock Retirement Solutions.
The launch of CRS will enable it to be positioned as a specialized leader providing CITs to clients, according to the company. Representatives for Spouting Rock declined comment beyond the press release.
For retirement plan sponsors, CITs cost less than mutual funds. CITs and mutual funds are both pooled investment vehicles. Like mutual funds, CITs adhere to stated investment objectives and strategies. CITs are Employee Retirement Income Security Act plan asset vehicles that are not subject to the prospectus, financial reporting requirements and expense rules of the Investment Company Act of 1940.
CITs are available exclusively to those enrolled in qualified retirement plans and other classes of eligible investors.
The use of CITs has surpassed the use of mutual funds in 401(k) plans with more than $1 billion in assets, according to data from BrightScope, part of ISS Market Intelligence, which, like PLANSPONSOR, is owned by Institutional Shareholder Services Inc.