Collective Investment Funds

Since the 1930’s Collective Investment Funds (CIFs) were the most common investment alternative for qualified retirement plans. With the advent and popularity of 401k plans in the early 1980’s most plan sponsors began to offer mutual funds. The reason for the change from Collective Investment Funds to mutual funds was because mutual funds were valued daily, as opposed to annually or quarterly for most CIFs. Mutual funds could provide funds that would work efficiently on the modern daily valuation recordkeeping platforms. Participants in 401k plans were able to transfer funds and see their account balances every day.

Today mutual funds have their own problematic issues in qualified retirement plans including short- term redemption fees, inappropriate share classes, higher asset management fees and marketing expenses such as 12 b-1 fees. The truth is that some mutual funds set up their own CIFs to offer in the qualified plan space because of their great advantages.

At Alta Trust Company we establish and administer Collective Investment Funds and provide daily valuations (NAVs). This ability allows us to partner with successful money managers to feature their unique investment strategies for all kinds of qualified plans and market them throughout the US. If you are an investment manager, consider some of the advantages of setting up your own Collective Investment Funds.

  • Very low set up costs
  • Daily valuations (NAV)
  • Omnibus trading platform
  • Leverage Alta Trust’s access to the major recordkeeping and custodial platforms
  • Opportunity to feature your unique investment strategies to a national audience