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.
May 22, 2013
What’s in a Name?
What’s in a Name?
Running the Fund
Judy Ward
When to consider moving to white-labeled collective trusts
What’s in a name? Answering that question has led some
401(k) sponsors to shift from brand-name mutual funds to “white-labeled”
collective trusts. White-labeling refers to the generic l
March 26, 2013
Wilmington Trust to Offer BlackRock Collective Funds
Wilmington Trust to Offer BlackRock Collective Funds
March 26, 2013 (PLANSPONSOR.com) - As part of a new partnership, Wilmington Trust will offer a suite of collective investment funds managed by BlackRock Institutional Trust Company.
Rebecca Moore
editors@plansponsor.com
The funds combine i
March 04, 2013
U.S. Bancorp Names Business Development Officer
U.S. Bancorp Names Business Development Officer
March 4, 2013 (PLANSPONSOR.com) – U.S. Bancorp Fund Services expanded its exchange-traded fund (ETF) administration and unit investment trusts (UIT) division support services with the addition of Mike Castino.
PLANSPONSOR staff
editors@plansponsor.com
Feb 21, 2013
Firms Launch Collective Trusts for DC Clients
Firms Launch Collective Trusts for DC Clients
February 21, 2013 (PLANSPONSOR.com) – Clear Sailing Investment Group (CSIG) and Hand Benefits & Trust, a BPAS Company, launched collective trust funds for Clear Sailing’s retirement plan clients.
PLANSPONSOR staff
editors@plansponsor.com