Very interesting posts concerning use of CTF’s…our firm ($1.0 bil. trust company affiliated with privately owned community bank) has successfully used CTF’s for years…as you have highlighted, they are extremely efficient, flexible vehicles…one interesting way we use them are municipal bond funds that carry stated maturity dates…in addition to inherent liquidity and diversification advantages, these “bullet” muni CTF funds also offer investors the protection of maturing at par which may become increasingly important as we anticipate the eventual rise in rates associated with an inflationary environment…open end fixed income funds can languish under water for long periods in such environments.

One concern we’ve had over the years with CTF’s is the prohibition against advertising and marketing of the funds…do you have any thoughts on this?

Mark Kennedy