In preparation for an ESOP transaction, and/or as part of general fiduciary hygiene, participant-directed ERISA assets should be scrutinized to identify enterprise risk. As fee-related lawsuits against retirement plan sponsors surge and move down the market, there has been an increased focus on lowering costs. Collective investment trusts (CITs) are becoming more popular in the defined contribution retirement arena because they are generally less expensive than mutual funds. On average, collectives range between 10 and 20 basis points less expensive than mutual funds. And, due to the compounding nature of these investments, per-participant cost savings can be measurable and significant.
Learning Objectives:
Gain an understanding of fiduciary best practices and industry trends as it relates to ERISA-based retirement plan investment vehicles
Recognize the structural and regulatory oversight differences between mutual funds and collective investment trusts
Learn how to make informed and prudent decisions as fiduciaries when considering the utilization of collective investment vehicles
