In the context of the article, this type of trust you linked has got to be the special case of all special cases.
Since that trust is tracking the S&P 500, it has to be literally equivalent to its VOO ETF counterpart. If it ever rebalanced in a way that no longer tracked the S&P, or even mysteriously changed disclosure in some way, investors would dump it the next day (for an index fund that is literally the same except for expense ratio and disclosure rules).
Moreover, everything in that trust is quite obviously publicly traded companies. The article is about retail access to private markets.
There’s a really good video of how retirement accounts have become wall street’s favorite piggy bank to borrow from. TLDR; the money rewards bad behavior because governments are too scared to let people’s retirement accounts collapse.
If entrepreneurship is the solution to society's ills why don't entrepreneurs solve societal problems? (note this criticism is equally effective when pointed at non-profits)
> The worry is that vital investor protections are being sacrificed in pursuit of lower costs and lesser oversight. Those concerns are likely to grow as CITs look set to become the go-to vehicle to add more private market exposure to retirement plans. The Trump administration is laying the groundwork for 401(k) investors to get easier access to assets that don't trade regularly, like real estate and private equity.
> In addition, Congress is proposing a path to let CITs gobble up even more of America’s retirement savings. A current move by US lawmakers to allow the pots of public school and nonprofit employees into the trusts has been described by one member of Congress as “the single largest deregulatory action we have seen in years.”
This is corruption in action. Corrupt leaders are quietly attempting to make a profit off of citizens' retirement plans, with no plan to protect those citizens once the market inevitably implodes.
> Fixed income collective trust funds typically invest primarily in various types of debt instruments, such as treasury bonds, treasury bills, corporate bonds, sovereign government bonds, secured and unsecured loans, and different types of derivatives based on these instruments.
Here’s a trust that has 250 billion, but reports prices and does many other things the article says isn’t required: https://workplace.vanguard.com/investments/product-details/f...
Not opaque and it has lower fees than the retail S&P 500 funds.
Since that trust is tracking the S&P 500, it has to be literally equivalent to its VOO ETF counterpart. If it ever rebalanced in a way that no longer tracked the S&P, or even mysteriously changed disclosure in some way, investors would dump it the next day (for an index fund that is literally the same except for expense ratio and disclosure rules).
Moreover, everything in that trust is quite obviously publicly traded companies. The article is about retail access to private markets.
tldr; this ain't that.
https://youtu.be/aRLxcx79OvE
am I super biased or fully drank the Kool aid if I believe entrepreneurs are the solution to many of society's ills?
> In addition, Congress is proposing a path to let CITs gobble up even more of America’s retirement savings. A current move by US lawmakers to allow the pots of public school and nonprofit employees into the trusts has been described by one member of Congress as “the single largest deregulatory action we have seen in years.”
This is corruption in action. Corrupt leaders are quietly attempting to make a profit off of citizens' retirement plans, with no plan to protect those citizens once the market inevitably implodes.
There were some issues with that in The Great Recession: https://en.wikipedia.org/wiki/2008_financial_crisis.
> Disadvantages include less transparency than traditional mutual funds, difficulty tracking performance, and less oversight of management.
So less verifiable.
That's just what you want to see related to money that millions depend on for retirement. /s
https://en.wikipedia.org/wiki/Collective_trust_fund