Cerulli's survey of target-date managers shows that 70 percent now offer a CIT version of target-date mutual funds, with 26 percent of managers not requiring a minimum asset investment. (Photo: Getty)
Plan sponsors are moving 401(k) assets from traditional mutual funds to collective investment trusts at a record clip, according to analysis by Cerulli Associates.
Assets in CITs now account for a quarter of the $5.5 trillion 401(k) market. Historically, CITs have represented about 20 percent of the 401(k) market.
The considerable gain in market share has been paced by the adoption of target-date funds in CIT form, as more sponsors are moving from traditional mutual funds to CITs in an attempt to bring investment management fees down.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
