Commingled Trust Fund
You wouldn’t want your trust fund to be commingled with anything bad, but rest assured that all the funds in a commingled trust fund belong to you. They simply come from a variety of sources, such as retirement plans and other assets, and are managed by a trust company or bank.
There can be many advantages to investing in a commingled trust fund. All the assets, such as stocks and bonds, can be managed with the same investment strategy, and they are less expensive than mutual funds that work in a similar way. They also aren’t going to incur large marketing expenses or charge higher fees because they are appealing to a smaller audience. However, you can’t just pick up the phone and sign up for a commingled trust fund. They are limited to investors in certain 401(k) and other retirement plans.
You can rest easy knowing that the fund management is overseen by state banking authorities or the U.S. Office of the Comptroller. However, unlike mutual funds, they are not regulated by the Securities and Exchange Commission (SEC), so they have fewer reporting requirements. While on one hand this saves the trust fund money, which can be passed onto investors, it also makes it more difficult to look up their past performance to evaluate risk. So if you do have access to a commingled trust fund for your retirement plan, be sure to compare it to a mutual fund with not just returns...but the fees they charge.
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Finance: What is an Omnibus Account?110 Views
Finance a la shmoop. What is an omnibus account?
Herbi just eats leaves, Carni just eats meat, Omni well it's pretty much [Different buses eating stuff]
everything. So yeah an omnibus as in bus-i-ness or business account services is
a bunch of investors who've all pitched in or wired in their capital to become a
percentage owner of that omnibus account. Why would people do this? Scale, volume,
discounts size, heft. When you have a lot of money in an account basic things like [Lots of money in a suitcase]
audit and legal fees and brokerage services and the fees with them and
other one-off costs get amortized across a lot of people in dollars invested [Definition of Amortization]
rather than being laid entirely or solely on one investor where they can
then be a meaningful percentage of the total and with an omnibus account you [Bus labelled Omni eating leaves]
also get anonymity since it's a broker dealing in street name with the account [Anonymity stamp]
interfacing with the street well investors can live if they want in the
lovely dark shadows of Erewhon. Omnibus accounts are sort of like your own [Full moon in a dark sky]
custom mutual fund without the whole nav, net asset value stamp requirements at
the end of each trading day and all the other regulations and filings and legal
crap needed for publicly offered securities it's like having a fully [Book labelled my very own omnibus account]
gassed up bus with a working GPS and Waze system you can drive anywhere you [Guy sat on a bus]
want on the investing landscape you don't have to tell anyone outside of
your own partners about it, and it works great as long as you all want to eat the
same kind of financial cooking.. [Omni asking Carni if he is going to finish his food]
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