Collective Investment Trusts Advised by Alger

Alger has been managing growth equities for 60 years with a disciplined, time-tested, research driven investment philosophy. The Alger investment philosophy has withstood the test of time, including bull and bear markets and economic cycles. Today, Alger advises the following colle​ctive funds offered by SEI Trust Company:

Understanding the Appeal of CITs​​
Collective investment trusts, or CITs, are rapidly growing in popularity as retirement plan investment vehicles due to their lower fees, liquidity and daily pricing. The products were expected to represent 25% of defined contribution assets as of the end of 2020, up from 14% in 2013, according to the Retirement Le​adership Forum (RLF) and SEI​​i.  We believe the growth in popularity of CITs could continue in the foreseeable future due to the products’ many attractive characteristics. 

Similarities to Mutual Funds
CITs have many of the same features as mutual funds, including the following: 

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  • CITs pool retirement plan investors’ assets, providing economy-of-scale savings, with professional portfolio management and operations costs spread out across a large number of retirement plan participants.
  • The products can be traded on a daily basis among retirement plan participants. 
  • Many CITS now have ticker symbols allowing for daily pricing information to be easily obtained. 
  • Certain CIT managers provide factsheets with portfolio characteristics, such as performance, top portfolio holdings, sector allocations and risk data.  

Lower Fee Structures
CITs are regulated by the Office of the Comptroller of the Currency or by state banking entities and are exempt from SEC regulations, the Securities Act of 1933 and the Investment Company Act of 1940. CITs managed by Alger and offered by SEI, for example, are regulated by the Pennsylvania Department of Banking and Securities. Because they are subject to a different regulatory framework than mutual funds, they have a lower cost structure, a feature typically enjoyed by institutional investors.

Not Just for Large Plans
The ​products have become available—and attractive—to plan sponsors of all sizes with 54% of CIT providers experiencing an increase in demand in the $10 million to $50 million​ spaceiii.

Learn More
Would you like​​​ additional information about CITs? SEI provides a number of resources including white papers and webinars. 

Link to SEIC  
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An Accomplished Partner for Retirement Plan​s
Alger’s expertise extends beyond portfolio management. Our firm offers a deep collection of thought leadership covering important topics for plan sponsors and retirement plan advisors. The content is available at alger.com/retirement​.
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To learn more about Alger investments, retirement thought leadership, or CITs please contact us at retirement@alger.com​.

Partnering with SEI
The Alger Collective Trusts are trusts for the collective investment of assets of participating tax qualified pension and profit sharing plans and related trusts, and governmental plans as more fully described in the Declaration of Trust. The Alger Capital Appreciation Series CIT, Alger Focus Equity Series CIT, and Alger Weatherbie Specialized Growth Series CIT are managed by SEI Trust Company, the Trustee, based on the investment advice of Fred Alger Management, LLC, the investment adviser to the trusts. Fred Alger Management, LLC has retained Weatherbie Capital, LLC (the “Sub Investment Adviser") to act as the sub investment adviser to the Alger Weatherbie Specialized Growth Series CIT. As bank collective trusts, they are exempt from registration as investment companies. 


i. RLF Analysis of PLANSPONSOR’s 2014 and 2018 DCIO survey data.
ii. Ticker symbols are used for informational purposes and not for trading purposes 
iii. RLF, 2019 DCIO Survey.

SEI Trust Company (the “Trustee”) serves as the Trustee of the Trust and maintains ultimate fiduciary authority over the management of, and the investments made, in the Trust. The Trust is part of a Collective Investment Trust operated by the Trustee and is n​ot a mutual fund. The Trustee is a trust company organized under the laws of the Commonwealth of Pennsylvania and a wholly owned subsidiary of SEI Investments Company.

The Alger Collective Trust (the “Trust”) is a trust for the collective investment of assets of participating tax qualified pension and profit sharing plans and related trusts, and governmental plans as more fully described in the Declaration of Trust. The Trust is managed by SEI Trust Company , the trustee, based on the investment advice of Fred Alger Management, LLC, the investment adviser to the trust. As a bank collective trust, the CITs are exempt from registration as an investment company.

These views are not meant to provide investment advice and should not be considered a recommendation.  Investing in the stock market involves risks, including the potential loss of principal. This document contains a general, high level summary of certain considerations applicable to CITs, and does not purport to be a complete description of all the considerations applicable to CITs. There should be no anticipation that this summary has been, or will be, updated for any developments in the law or interpretation. Tax and ERISA matters are very complicated encourage retirement plan sponsors to consult their own advisors regarding these matters, including applicable federal, state, local and foreign laws and the effect of any possible changes in the law.
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