Jevon, As pointed out earlier commingled funds are typically used in employee benefit plans but they can also be used by tax free organizations. They can only be formed by a trust company or trust department of a bank. If they are valued daily they look and work much like a mutual fund. They typically have a single investment objective. The advantage is that they usually have a lower expenses associated with them. As mentioned they are regulated by to Office of the Currency (OCC), FDIC or the Federal Reserve and not the SEC. Commingled funds can also hold mutual funds instead of stock and bonds. To some extent this negates the cost advantage but it makes operations such as re-balancing more efficient and may provide other advantages to the provider such as being able to change the asset mix for such things as target date funds.
Jevon - a commingled trust fund (CTF) is very similar to the more commonly known open-end mutual fund. The funds are available only through retirement plans. These funds are structured like mutual funds in which the investor owns share of the fund rather than the underlying stocks or bonds. The key difference is regulatory - CTFs are not regulated by the SEC and are exempt for the registration requirements pertaining to "traditional" mutual funds. Instead they are regulated by the Office of the Comptroller of the Currency. More information can be found at this site - http://www.invesconationaltrust.com/portal/site/intc/collectiveTrusts.
Definition of 'Commingled Trust Fund'
Investment assets that are combined together under a common investment management strategy. Commingled trust funds represent a pool of assets that are jointly managed by the same entity. These funds can be from several sources, such as trusts, retirement plans and individuals as long as each meets the minimum purchase requirements.
I hope that helps,
David Niggel www.keywealthpartners.com