In June 2008, SKBA Capital Management LLC launched a daily valued collective investment trust in its flagship ValuePlus equity strategy, which focuses on dividend-paying companies. The initial capital for the fund came from employee contributions.
On Dec. 2, 2013, SKBA completed the conversion of this CIT into a mutual fund format, the Baywood SKBA ValuePlus Fund, with two share classes, institutional and investor.
The case for starting a CIT seems clear, given the low-cost structure. Not so clear is why a money manager would convert a CIT into a mutual fund.
SKBA made the decision to convert to a mutual fund for several reasons.