Institutional > Collective Investment Trusts
Benefit Trust Collective Investment Trusts
Benefit Trust sponsors and serves as discretionary trustee of Collective Investment Trusts (CITs) which have been created under the Investors Master Trust for Employee Benefit Trusts that were established nearly 30 years ago. Benefit Trust employs third party managers to provide investment management services for all the CITs. As Trustee, Benefit Trust provides the active fiduciary oversight, custody, portfolio accounting and transfer agent services for the CITs which are traded via the NSCC.
Master Trust Sponsor & Fiduciary Activities
Benefit Trust provides the following services for the collective investment trusts for which we sponsor and serve as trustee:
  • Serve as Trustee of the trust and assume fiduciary responsibility for the trust/funds activities
  • Maintain the declaration of trust in accordance with governing regulations
  • Amend the declaration of trust to add, merge, or remove funds
  • Create share classes with shareholder servicing revenue where appropriate
  • Prepare an investment policy statement for each new fund and provide amendments should an investment objective be changed or modified
  • Provide the necessary investment authorization agreements (participation or joinder agreements)
  • Generate fund fact pages for each fund
  • Maintain memberships in the NSCC to support an open architecture environment for trust fund distribution
  • Enter into the necessary NSCC FundSERV & Networking agreements with trading partners who will be submitting trust fund admission or withdrawal trades
  • Enter into required agreements with recordkeepers to ensure a conduit exists for providing CIT information, reports, and notices to participating plans
  • File required governmental reports for the trust
  • Prepare and distribute annual audited financial statements for each fund
  • Conduct due diligence, select and hire investment advisors for each fund
  • Monitor and approve advisor activities on an ongoing basis
  • Ensure that investments are in compliance with the fund's investment policy statement
  • Examine and approve plans participating in the CITs prior to the initial admission into the trust funds
  • Provide 408(b)(2) and 404(a)(5) disclosure materials for distribution to financial intermediaries and plan sponsors
  • Establish each fund in Morningstar
Custody and Valuation Activities
  • Maintain custody of trust assets
  • Settle underlying trades for the funds
  • Calculate and provide periodic investment performance for each fund
  • If applicable maintain models for "fund of funds" and generate the trades for the underlying mutual funds, separate accounts, or CITs
  • Monitor and maintain the glide path methodology for the target date fund series
  • Provide investment advisors with daily cash and security position reports and/or provide on-line inquiry into the custody/valuation accounting system
  • Obtain CUSIP numbers for each fund/share class
  • Manage the process of adding the CUSIPs to the NSCC and arranging for trade settlement
  • As transfer agent, maintain the official books of record for the trust funds including a record of participating plans
  • Settle transaction activity for units of the trust funds
  • Manage the revenue collection for the underlying mutual funds and credit revenue to the appropriate trust fund
  • Reconcile cash and underlying position holdings daily
  • Determine the NAV of each fund daily
  • Communicate trust fund unit activity and daily NAVs to the NSCC and other interested parties
  • Provide investment performance reporting and compare to the appropriate benchmark for each fund
  • Educate recordkeepers regarding the issues and procedures unique to collective investment funds to ensure that proper handling and reporting requirements are achieved
  • Calculate, accrue, and remit shareholder servicing revenue to the recordkeepers or trading platforms for trust fund share classes that have a shareholder servicing revenue feature