By: Dr K C Gupta, YBB Personal Finance

Mini Feature CITs – COLLECTIVE INVESTMENT TRUSTS

CONTRARIAN INDICATORS

AAII Bull-Bear Spread +11.6% (above average)
CNN Fear & Greed Index 66 (greed)
NYSE %Above 50-dMA 60.57% (positive)
SP500 %Above 50-dMA 52.80% (positive)

ICI Fund Allocations (Cumulative), 2/28/26
OEFs & ETFs: Stocks 61.70%, Hybrids 4.02%, Bonds 17.45%, M-Mkt 16.43%

INTEREST RATES

CME FedWatch
Cycle peak 5.25-5.50%
Current 3.50-3.75%
FOMC 4/29/26+ hold
FOMC 6/17/26+ hold

Treasury

T-Bills 3-mo yield 3.69%, 1-yr 3.67%; T-Notes 2-yr 3.78%, 5-yr 3.92%, 10-yr 4.31%; T-Bonds 30-yr 4.91%;
TIPS/Real yields 5-yr 1.31%, 10-yr 1.89%, 30-yr 2.65%
FRNs Index 3.643%

Bank Rates www.depositaccounts.com/



Stable-Value (SV) Rates, 4/1/26
TIAA Traditional Annuity (Accumulation) Rates
Restricted RC 5.00%, RA 4.75%
Flexible RCP 4.25%, SRA 4.00%, IRA-101110+ 3.45%
TIAA MYGA 4.00% (3-yr), 4.20% (5-yr), 4.30% (7-yr) (NEW)
TSP G Fund 4.375% (previous 4.000%)

India Fear & Greed MMI 63.18 (greed)
Weekly ETFs: INDA -3.32%, INDY -3.63%, EPI -3.21%, INDH -2.89%, SPY +0.54%

The data above are as of Sunday preceding the publication date.

ENERGY

Indian BARC has been researching thorium for nuclear power for years, but commercial breakthrough recently came from US Clean Core Thorium Energy (CCTE; Founder & CEP Mehul SHAH). It has designed thorium-based fuel, Advanced Nuclear Energy for Enriched Life (ANEEL), with 85% thorium & 15% enriched uranium, that is undergoing testing at the US DOE Idaho National Laboratory. Ironically, CCTE, with the approval of US DOE, will license this thorium technology to India under the new 2025 SHANTI Bill 2025 that has opened up some aspects of nuclear power to private companies.
Dr Anil KAKODKAR, the former Indian AEC Chairmen, the former BARC Head & the recipient of national Padma Vibhushan on 1/26/2009, is on the Advisory Board of private CCTE. People are asking questions – did BARC miss the commercial opportunity?

Fast breeder reactors (FBRs) provide a bridging technology between the current pressurized heavy-water (uranium) reactors (PHWRs) & future thorium reactors. India has abundant thorium. Recent successful FBR tests in India represented significant progress on this. Only Russia & India have this operational technology now.
US abandoned this technology because it had ample uranium supplies & plutonium that’s used for FBRs can also be used for nuclear energy & nuclear bombs, so that’s an additional risk for global nuclear proliferation. US Argonne National Lab (ANL) & Idaho National Lab (INL) were developing fast-breeder technology, & still have limited related R&D, but after the loss of primary federal funding, they moved into other areas to justify their existence.

SPECIAL TOPIC – CITs – COLLECTIVE INVESTMENT TRUSTS

Collective investment trusts (CITs) are unlisted, lower-cost funds that are loosely regulated by OCC (federal banking regulator) or states (state-chartered banks), not by SEC (securities regulator). So, their disclosure requirements are less stringent – but retirement plans have fiduciary duty in selecting them. Many firms’ CITs are clones or cousins of their listed mutual funds/ OEFs. The CITs are available only in workplace retirement plans.

CITs don’t have tickers that you could look up for quotes. However, daily NAVs can be found at CIT sponsor or company HR sites. If you use portfolio software, you will have to use tickers for comparable listed funds (OEFs, ETFs).

TDFs (target-date funds) with glide-path allocations exploded after they were allowed as default options in retirement plans. These can be TDF-OEFs (listed) or TDF-CITs (unlisted). Assets of TDF-CITs overtook those of TDF-OEFs in 06/2024.

For years, CITs were obscure, sleepy vehicles. But some recent changes in allowable options within retirement plans have put limelight on CITs.

SECURE 1.0 & 2.0 allowed LIFETIME INCOME under the framework of TDFs. Because SEC doesn’t allow it in listed funds (OEFs, ETFs), fund firms & insurance & annuity companies have developed TDF-CITs to satisfy regulations & consumer demand.

For several years, DOL didn’t allow ALTERNATIVES in retirement plans, but that was changed in 2025 through presidential executive orders (EOs). Alternatives include real estate, private-equity/ credit, gold, cryptos. SEC severely limits alternatives within listed funds (OEFs, ETFs), so the fund firms & specialized investment firms developed TDF-CITs that include alternatives.

So, suddenly, TDF-CITs aren’t sleepy anymore. These newer features lead to higher cost (ER) & riskier CITs. And all this with lax regulation by banking regulator OCC or states. BlackRock, Fidelity, Transamerica, TIAA, Vanguard, etc offer such TDF-CITs.

The strongest complaints about these TDF-CITs are from smaller firms that handle only listed funds. SEC may also review the entire situation & allow some of these newer options under listed funds (OEFs, ETFs). Plan participants should be aware of these changes.

For more information, see https://ybbpersonalfinance.proboards.com/