PLANADVISER - January/February 2019 - 21

A Demonstration of
Commitment and Experience
Interview with Terry Burns
FINANCIAL professionals are seeking more efficient ways
to provide retirement plan participants with high quality and
low-cost investment options. One possible way to do this is by
using Collective Investment Trusts, or CITs. Growing in popularity,
CITs are no longer a retirement planning tool available
only to mega plans. They have been around since the 1970s and
OneAmerica® has offered CITs in our retirement plan platform
since the early 1990's. Terry Burns, assistant vice president,
products and investments at OneAmerica, Retirement Services,
discusses how OneAmerica is working to support retirement
plan advisors, plan sponsors and participants in this endeavor.
PLANADVISER: Describe the OneAmerica experience with
CITs?
Terry Burns: OneAmerica has
long been a thought
leader
and advocate for the consideration of CITs in 401(k) plans of all
sizes. The uptick in recent usage of CITs shows us that fiduciaries
are becoming more open to them as an investment option
due to their low overhead costs and composition that often
mirrors that of a traditional mutual fund. We've built a simple
online portal for our group annuity plan clients to close the
information gap by making it easier for plan fiduciaries to access
information on CITs.
PA: What's included on the CIT portal?
Burns: Our portal serves as a centralized hub for quick and easy
access to important fund documents. This new site will give plan
sponsors access to fund companies' offering documents, including
participation agreements, offering statements, and declarations
of trust. There are 225 CITs on the portal and that number will
continue to grow. The information on the portal is available to
anyone who is interested in learning more.
PA: Why does the retirement industry take a liking to these
products?
Burns: CITs are attractive because the overhead associated with
compliance and regulation isn't as time-consuming as traditional
mutual funds, therefore making them a cost-effective option
for plans. CITs have evolved over time and many of them are
clones of traditional mutual funds-offering the same investment
management team, investment composition and similar returns.
Typically, you get the same investment management at a lower
cost compared to a mutual fund.
PA: Why did OneAmerica create a portal for CITs?
Burns: By eliminating the burden of conducting independent
research, the CIT portal is just another example of how our
growing company is evolving to meet the ever-changing needs of
our clients. The launch of the portal is also our way of reinforcing
to the industry our longstanding support of CITs as a viable
option for retirement plans of all sizes, not just larger ones. If
only one person finds the portal useful, it is worth the effort
and because it is digital, we're being environmentally sensitive.
While we will mail CIT paperwork when requested, making the
information electronically accessible lowers our overall costs and
as we continue to look for ways to be easy to do business with,
every penny counts.
PA: Who put this together?
Burns: It was a truly collaborative effort. OneAmerica provides
award-winning administrative and participant services in support
of nearly 12,000 plans with over $63 billion in retirement assets
under administration. A nationwide network of regional sales directors
work with a diverse mix of advisors and advisor firms covering
a range of organizations with plan-participant assets. Broadridge is a
global provider of investor communications, technology-driven solutions,
as well as data and analytics to the financial services industry.
PA: How do I find out more?
Burns: Visit OneAmerica.com/CIThub or for questions, please
contact our Retirement Services Internal Sales Desk at 1-866313-7355,
or contact your OneAmerica representative. n
OneAmerica®
is the marketing name for the companies of OneAmerica.
Broadridge is not an affiliate of any OneAmerica company.
Products issued and underwritten by American United Life Insurance Company® (AUL), a OneAmerica company.
Administrative and recordkeeping services provided by McCready and Keene, Inc. or OneAmerica Retirement Services
LLC, companies of OneAmerica which are not broker/dealers or investment advisors. Provided content is for overview
and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary,
or investment advice. Investing involves risk including potential loss of principal.
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PLANADVISER - January/February 2019

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