SOURCE: American Century Investments

investments, investment management, financial advisor services, asset management, institutional

October 02, 2009 10:30 ET

American Century Investments Launches Collective Trust Program

KANSAS CITY, MO--(Marketwire - October 2, 2009) - In order to meet growing demand in the defined contribution market, American Century Investments today launches a new collective investment trust (CIT) program. A broad suite of 12 active investment strategies comprise the program.

Plan sponsors and consultants seek greater flexibility in the types of vehicles offered in defined contribution plans, according to Drew Billingsley, vice president, Institutional Product Strategy for American Century Investments. "CITs offer many of the same benefits as mutual funds, but at a lower cost due to fewer regulatory requirements," Billingsley said.

CITs are enjoying increased popularity, particularly in the larger-case defined contribution market, said Barry Mayhew, senior vice president of National Accounts at American Century Investments. "We also know there is greater demand for active strategies in a commingled vehicle, so we're pleased to offer such a wide variety," Mayhew said.

Also known as commingled or collective funds, collective investment trusts are tax-exempt, pooled investment vehicles designed exclusively for qualified plans, including 401(k) plans, as well as for certain types of government plans. CITs are subject to banking regulations, rather than the Investment Company Act of 1940, which regulates mutual funds.

American Century Investments will now offer the following CIT strategies:

  • Large Cap Growth Equity
  • Value Yield Equity
  • Large Cap Value Equity
  • Large Cap Core Equity
  • Mid Cap Value Equity
  • Mid Cap Growth Equity
  • International Growth Equity
  • Global Growth Equity
  • Core Fixed Income
  • Inflation-Adjusted Bond
  • International Fixed Income
  • U.S. Real Estate Securities

About American Century Investments

American Century Investments is a leading privately held investment management firm, committed to delivering superior investment performance and building long-term client relationships since 1958. Serving investment professionals, institutions, corporations and individual investors, American Century Investments offers a variety of actively managed investment disciplines through an array of products including mutual funds, institutional separate accounts, commingled trusts and sub-advisory accounts. The company's 1,300 employees serve clients from offices in New York; London; Hong Kong; Mountain View, Calif. and Kansas City, Mo. James E. Stowers Jr. founded the company and serves as co-chairman of the board. Jonathan S. Thomas is president and chief executive officer and Enrique Chang is chief investment officer. Through its ownership structure, more than 40 percent of American Century Investments' profits support research to help find cures for genetically-based diseases including cancer, diabetes and dementia. For more information, visit www.americancentury.com.

Contact Information

  • Contact:
    Laura Kouri
    (816) 340-4710
    (816) 340-7033 (Media Line)