Launching a Collective Investment Trust Capture Your Share of the 401(k) Market

CIT Growth Has Been Steady Since 2012

Collective Investment Trust (CIT) - Asset Growth
Source: Morningstar

Operating Structure Can Vary for CITs

Collective Investment Trust (CIT) - Operating Structure
Sources: DST Research, Analytics, and Consulting LLC, Global Trust Company

A Comparative Description of CITs

Feature/Characteristic Collective Investment Trust
Mutual Fund
Exchange-Traded Fund
Type of Investment Vehicle Pooled
Held at bank or trust co.
Exclusive to certain DC plans - not available to individual investors
Held by asset
management company
Held by authorized participant
Sales Channel Institutional only Institutional and retail Institutional and retail
Marketing Materials Fact sheet; performance data
No advertising allowed
Prospectus & various literature Prospectus & various literature 
Trading & Valuation Most can trade via NSCC
Majority valued daily
NSCC trading
Daily valuation
Exchanged trading
Intra-day valuation
Share/Unit Classes Multiple   Multiple 
Fee Structure Negotiated with plan sponsor
Set by asset manager 
Set by asset manager 
Oversight & Regulation Office of the comptroller of
currency (OCC), IRS & DOL
Fund trustee subject to ERISA standards  
SEC and Investment
Company Act of ‘40
Manager not held to ERISA standards 
SEC and Investment
Company Act of ‘40
Manager not held to ERISA standards  
Governing Documents Declaration of trust and OCC
asset mgt. Handbook 
Prospectus and
additional filings 
Prospectus and
additional filings 
Financial Reporting Auditing financial statements
Form 5500 optional, but usually filed by trustee 
Annual report
Form 5500 required
Annual report
Form 5500 required 
Launching Party Must come from plan sponsor to a bank or trust company
Asset management company  Fund or trust
Portability Must be liquidated to rollover  Possible to rollover seamlessly  Seamless rollover
Management Cost & Pricing Flexibility Commonly lower compliance, administrative, advertising, and marketing costs allows plan level pricing and flexibility and may vary in assessing operating and management expenses  Increased regulatory scrutiny on costs and fees. Higher fees due to compliance, administration, advertising and marketing. Pricing breaks cannot be done at the plan level  Generally lower expense ratio than similar actively managed mutual funds 

Sources: Coalition of Collective Investment Trust, Manning & Napier, T. Rowe Price, AllianceBernstein

A Comprehensive Solution for CITs

Let us work with your firm to capitalize on a growing segment of the retirement market by launching and servicing CITs.

A Full-Service Solution to Support Your CIT Initiative Allowing You to:

  • Quickly launch CITs to capitalize on market opportunities
  • Leverage a turn-key infrastructure which can adapt as your needs evolve
  • Structure multiple fee arrangements
  • Offer comprehensive performance and fund-level reporting
  • Establish recordkeeping relationships via the NSCC for trading ease
  • Support strategic marketing and analytical needs with established distribution services

Services Included in our CIT solution

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