Matrix Trust Company, a subsidiary of Broadridge Financial Solutions, Inc. (NYSE:BR), today announced the launch of a series of new index collective investment trusts (CITs), powered by Northern Trust Investments, Inc.

The new CITs will invest in Northern Trust’s Aggregate Bond Index, S&P 500 Index and ACWI Ex-US Index collective investment trusts, to offer clients low-cost beta exposure. The CITs were created by Matrix Trust and built upon Matrix Trust’s existing offerings managed by sub-advisors.

“The launch of the new index CITs is an exciting next step in our continued effort to provide low-cost CITs to retirement plans and advisors for standalone beta exposure and building blocks within other model portfolios and target date funds,” said Toby Cromwell, head of CIT Funds Product Management, Broadridge’s Matrix Trust Company. “This solution will allow investment advisors, plan sponsors, and record keepers to optimize their selection of investment vehicles with an affordable and efficient tool that has the flexibility to be leveraged with plans of all sizes.”

The index CITs will be offered to ERISA plans of all sizes and will be available to any of Matrix Trust’s current National Securities Clearing Corporation platforms, along with the ability to use the CITs as building blocks for market exposure in existing CITs where Matrix Trust is the trustee. The index CITs have expense ratios of 2 bps, 4 bps, and 6 bps for the large cap index, bond index, and non-US index funds, respectively.

“We are pleased to partner with Matrix Trust on the launch of this new offering and are excited by the capabilities of this investment option for clients,” said Bob Parise, Head of North America Distribution at Northern Trust. “The new index CITs offer greater flexibility and accessibility for the retirement industry, opening the door for continued enhancements in the CIT sector.”

The launch of the new CITs represents a continued effort by Matrix Trust to build its discretionary trustee capabilities in the CIT marketplace to launch funds under the trusteeship of Matrix Trust Company. Matrix Trust expanded its collective investment trust business in 2019 by acquiring TD Ameritrade Trust Company’s CIT business as part of its strategy to add additional capabilities for Matrix Trust customers and launch more funds with potential sub-advisors in the future.