A collective investment trust (CIT) is an institutional-only investment structure that is exclusively available to certain types of tax-exempt retirement plans. CITs are sponsored by banks or trust companies (e.g., Matrix Trust Company) that act as trustee and are responsible for the CIT’s management. The structure of each CIT allows for the combination of assets from different retirement plan accounts into a single fund with a specific investment strategy or objective, thereby leveraging the benefits of economies of scale. CITs may invest in a wide range of active or passive vehicles, including equities, fixed income, mutual funds, exchange traded funds (ETFs), and other CITs.
We offer a range of services for investment managers and registered investment advisers who are looking at CITs as an option to increase their presence in the qualified retirement plan ecosystem.
See if Matrix Trust Company CIT Offerings and Services are right for you.
CITs have many distinguishing characteristics. They are:
Uniquely institutional, since only tax-exempt retirement plans are allowed to invest
Flexible because they are able to leverage a broad scope of investment types
Often associated with lower operational expenses compared to mutual funds
Free of proprietary product requirements
Free of redemption fees
- Bank/trust company maintained, pooled funds that are an investment option available to participants in tax qualified, employer sponsored retirement plans
- Institutional-only investment vehicles created specifically for qualified retirement plans, including defined contribution plans
- Similar to mutual funds in that they are composed of pooled assets invested with a specific philosophy or strategy
- Valued daily
- Subject to applicable state banking, DOL (Department of Labor) regulations, and reporting requirements
CITs are not:
- Mutual funds registered under the Investment Company Act of 1940, as amended, each of which have a prospectus
- Securities required to be registered under the Securities Act of 1933, as amended, or the applicable securities laws of any state
- Traded on an exchange or “over the counter”