SEI has signed ten new collective investment trust managers over the past eight months.
According to Cerulli Associates, CITs represented about USD733bn in employer-sponsored retirement plans, including defined benefit and defined contribution plan assets as of 30 June 2009.
SEI has specialised in the CIT market for more than 15 years, but has experienced even stronger growth as the adoption of CITs in the retirement space becomes more prevalent. Public policy and litigation has increased the scrutiny of retirement plan costs and fees, pushing plan sponsors toward lower-cost solutions such as CITs. Technology enhancements have also played a role in increasing the appeal of CITs.
The new managers SEI has signed include Hansberger Global Investors, Montag & Caldwell, and Pioneer Investments.
"As investment managers expand their product lineup and consider launching Collective Investment Trusts, they are looking for a strategic partner who not only understands the operational and regulatory subtleties of CITs, but also can integrate with the operational environment for their other investment products," says John Alshefski, senior vice president, SEI’s investment manager services division. "We offer managers a comprehensive solution that allows them to quickly get into the CIT market and take advantage of the new opportunities in the retirement space without the pain and expense of upgrading operating capabilities."