Collective investment trusts (CIT), the scrawny younger sibling to brawny, older mutual funds, continues to gain industry weight.
Brinker Capital joined forced with The Guardian to launch a CIT qualified default investment alternative (QDIA).
Brinker says it’s Destinations CIT features five professionally-managed, risk-based portfolios, offering investment strategies ranging from conservative to aggressive, that blend of mutual funds and ETFs. Each portfolio utilizes a multi-asset class approach and targets a specific investment objective.
“For 20 years, diversification, innovation, and active management served as the basis for our investment products, and the new CIT allows us to bring our proven investment products to qualified retirement plans through a large and prestigious partner such as Guardian,” Roddy Marino, EVP of national accounts and distribution at Brinker Capital, said in a statement. “This partnership is particularly special because it launches during another important milestone for Brinker Capital—our 10-year anniversary of Retirement Plan Services.”
Brinker Capital’s Destinations CIT will be available through two Guardian retirement plans: The Guardian Choice and The Guardian Advantage.
“Guardian is committed to helping our clients reach their long-term financial goals by offering a variety of investment options to address their diverse needs,” said Douglas Dubitsky, vice president at Guardian Retirement Solutions. “This new offering represents each organization’s strong commitment to provide multiple managed account QDIA options to the small plan market space and help participants reach their long-term investment goals.”
The Brinker Capital Destinations CIT model portfolios that serve as QDIA options are:
- The Conservative Fund seeks to provide current income and some growth potential with a low level of volatility.
- The Moderately Conservative Fund seeks to provide current income and the opportunity for long-term growth of capital with a moderate level of volatility.
- The Moderate Fund seeks to provide long-term growth of capital and current income while maintaining a moderate level of volatility.
- The Moderately Aggressive Fund seeks long-term capital appreciation and a modest level of current income while maintaining a high level of volatility.
- The Aggressive Fund seeks to maximize long-term capital appreciation and will maintain a high level of volatility.
Brinker Capital acts as a 3(38) investment manager under ERISA guidelines and provides actively managed strategies as one of the plan’s QDIA.