How Is a CIT Structured?

A CIT is organized as a trust, and investors own units in that trust. While investment management responsibilities are handled by an advisor or sub-advisor, the trust is overseen by a bank or trust company. Among other services, the trust provides transfer agency services, compliance support, administration and accounting.

Generally, only qualified employer plans, or vehicles holding the assets of such plans, can utilize CITs as an investment vehicle1. Unlike open-ended mutual funds, CITs are exempt from registration with the Securities and Exchange Commission (SEC), however, they are subject to oversight and regulations of the US Office of the Comptroller of the Currency (OCC) or a state banking regulator.

advantages of CITs

        

        

The following is a list of the CITs available from New York Life Investments.

SEI Trust Company as trustee

  • Winslow Large Cap Growth CIT
  • MacKay Shields High Yield Bond CIT
  • MacKay Shields Core Plus Bond CIT
  • MacKay Shields Unconstrained Bond CIT
  • MacKay Shields Convertible CIT
  • Epoch Global Equity Shareholder Yield CIT

 

Wellington Trust Company as trustee

  • Wellington Trust Company, National Association Multiple Collective Investment Funds Trust II, Growth Portfolio
  • Wellington Trust Company, National Association Multiple Collective Investment Funds Trust II, Value Portfolio
  • Wellington Trust Company, National Association Multiple Collective Investment Funds Trust, International Research Equity Portfolio

        

     

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To find out more about CIT solutions available   through New York Life Investments, including   information regarding the onboarding process,   contact a New York Life Investments   representative today.

Retirement Specialists: 1-877-742-6951

Financial Advisors: 1-888-474-7725

     

FOR INSTITUTIONAL PLAN SPONSOR AND REGISTERED REP USE ONLY –
NOT FOR DISTRIBUTION TO PLAN PARTICIPANTS OR THE GENERAL PUBLIC

Investing involves risk, including possible loss of principal.

1. Generally, corporate and governmental defined contribution and defined benefit plans, including 401(k) plans, certain church plans, and other collective investment trusts and insurance company separate accounts who limit their investors to the same investors as the collective investment trust are eligible to invest in the trust.  If there are any questions regarding investor eligibility, please contact New York Life Investments and/or SEI Trust Company and Wellington Trust Company, as trustee of the trust.

2. Lower expenses—Generally CITs carry expense ratios that can be less than those on open-ended mutual funds employing a similar investment strategy. CIT expense ratios are generally less because they have lower operating costs (e.g., board, legal, sub-transfer agent fees, revenue sharing). As plans have sought to offer participants lower-cost options, they have increasingly moved to these less costly investment vehicles.

3. Flexible pricing—Generally the banking requirement provide greater flexibility on pricing (subject to ERISA’s requirements regarding reasonable compensation) that is generally not available to open-ended mutual funds. In some cases, this allows, within the correct parameters, for differing fees, such as a founders’ fee class, an AUM-based share class, or a consultant-based share class. Flexible pricing allows DCIO firms to provide custom offerings that may best meet the needs of their clients. CITs also generally have more leeway to invest in illiquid alternatives.

CITs overseen by SEI Trust Company come under the jurisdiction of the Department of Banking and Securities of the Commonwealth of Pennsylvania where SEI Trust Company is domiciled.  CITs overseen by Wellington Trust Company come under the jurisdiction of the Office of the Comptroller of the Currency (OCC) as Wellington Trust Company is a federally chartered trust company. 

Neither New York Life nor its agents or affiliates provide tax, legal, investment, or accounting advice. Plan sponsors, investment committees and registered representatives should advise their clients to speak to their own tax, legal, investment advisor, or accounting professional regarding their specific situation. The information contained herein is general in nature and is provided solely for educational and informational purposes.

SEI is not affiliated with New York Life or any of its affiliates.  Wellington Trust Company is not affiliated with New York Life or any of its affiliates.  MacKay Shields LLC is an affiliate of the New York Life Insurance Company.

Neither the Wellington Trust Company nor SEI CITs are guaranteed by either Wellington Trust Company or SEI or their respective affiliates. The CITs are not insured by the FDIC or the Federal Reserve Bank, nor guaranteed by any government agency.