What’s old is new. Collective investment trusts (CITs) are once again popular for their low fees and increased diversification, especially in the increasing litigious 401k environment.
And now Denver-based Strategies Capital Management, sub-advisor to the TD Ameritrade Strategic Target Funds, announced that it’s making the funds available to qualified retirement plan advisors.
The suite of six Target Date Funds and five Target Risk Funds provide retirement plan participants with access to Collective Investment Funds (CIFs), a non-fund family specific investment structure that has grown in popularity. Industrywide, CIFs have captured nearly $2 trillion in assets under management as of May 2016, according to Morningstar.
The benefits they point to include:
- Enhanced diversification from a dynamic core and satellite allocation, with access to 12 distinct asset classes
- A focus on low cost, non-proprietary, ETFs and other fund managers
- Broad asset class and factor and limited manager exposure
- High absolute and risk-adjusted returns
- Weighted average expense ratios of 0.20 percent or less for underlying investments
“We are excited to give retirement plan advisors access to the Strategic Target Funds,” David Halseth, founder and Chief Investment Officer of Strategies Capital Management, said in a statement. “Our approach translates into broader diversification, best-in-class asset management, low fees, all resulting in 2016 top decile performance with reduced risk.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
