Common Trust Fund

What Does Common Trust Fund Mean?

A common trust fund is a pool of assets managed by a single entity for investment purposes. The fiduciary responsible for managing the fund is often a financial institution, such as the trust department of a bank.

Insuranceopedia Explains Common Trust Fund

A common trust fund is regulated by the state unless it is federally chartered, in which case it is overseen by both state and federal authorities. Federally chartered funds are designated by the acronym “N.A.,” which stands for “National Association.”

The primary goal of a common trust fund is to generate income from the pooled assets. Only individuals with trust accounts are eligible to contribute their assets to a common trust fund.