Alta Trust

Collective Investment Funds

In past years collective investment funds 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 and could provide funds that would work efficiently on the modern daily valuation recordkeeping platforms. Participants in 401k plans could then transfer funds without waiting for long settlement periods.

Today mutual funds have their own problematic issues in qualified retirement plans including short-term redemption fees, inappropriate share classes, high asset management fees and marketing expenses such as 12 b-1 fees.

At Alta Trust Company we can 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. We have been able to overcome many of the negative issues surrounding mutual funds. If you are an investment manager, consider some of the advantages of setting up a collective investment fund.

• Reasonable establishment costs
• Daily valuation process (NAV)
• Brokerage trading platform
• Access to multiple recordkeeping platforms
• Opportunity to feature your unique investment strategies