Do Plan Sponsors Want CITs— Why Target-Date Portfolios May be the CIT Sweet Spot

Francis LLC's Edward McIlveen, CFA unpacks what today's conversations look like between consultants and plan sponsors, including where the biggest interest tends to come from (with target-date portfolios leading the way). We also break down what makes CIT due diligence different, what paperwork and agreement reviews are typically required, and the key underwriting questions that must be answered to satisfy the ERISA duty of prudence.

Jeffrey Snyder, Broadcast Retirement network

Ed, it's always great to see you. Thanks for joining us again this morning.

Jeffrey Snyder, Broadcast Retirement network

Well, I don't know if, you know, I read a lot of the trade publications. I see a lot on social media. There's a lot, a big, I would say a hard press for collective investment trusts.

I don't know if you see that as well. But I want to start off by asking, are you seeing clients, meaning plan sponsors, take a greater interest in these types of investment vehicles?

For sure. There's a lot of ways that these kinds of investment vehicles can help streamline certain things when it comes to just thinking about expenses. What it does do, though, is a plan sponsor provides a reduction in exp

Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/plan-sponsors-want-cits-why-143000874.html)