The collective investment trust (CIT) is no longer the retirement industry’s best-kept secret. CITs are pooled, tax-exempt investment vehicles sponsored and administered by a bank or trust company that also acts as the trustee. CITs comingle assets from eligible investors into one private investment portfolio with a specific strategy. Currently, CITs are available for defined contribution (DC) and defined benefit (DB) plans, excluding most 403(b), 457(b) and 457(f) plans. They are not currently permissible investment vehicles for individual retirement accounts (IRAs). Today, much of the exciting growth and potential for greater CIT implementation is occurring in the DC market.

CITs are heavily regulated. Although they are not registered under the Securities Act of 1933 or the Investment Company Act of 1940, they are overseen by the Office of the Comptroller of the Currency or state banking regulators. Additionally, the sponsoring trustee of a CIT, a bank or trust company, is committed to acting in the best interest of unit holders because it is bound by the fiduciary standard under the Employee Retirement Income Security Act of 1974 (ERISA).

Learn more about the advantages of considering CITs as investment vehicles in defined benefit and defined contribution plans, what a CIT is (and what it isn’t), the benefits of CITs, the factors that are driving their adoption, and myths surrounding CITs. 

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This material is for educational purposes only and is not intended as an offer, recommendation or solicitation for the sale of any financial product or service or as a determination that any investment strategy is suitable for a specific investor. There is no assurance that any investment strategy will be successful. The information in this material has been obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Opinions, estimates and projections constitute the judgment of Wilmington Trust and are subject to change without notice.

There is no assurance that any investment strategy will be successful. Investing involves risk and you may incur a profit or a loss.

Wilmington Trust, N.A. Collective Investment Funds (“WTNA Funds”) are bank collective investment funds; they are not mutual funds. Wilmington Trust, N.A. serves as the Trustee of the Wilmington Trust Collective Investment Trust and maintains ultimate fiduciary authority over the management of, and investments made in, the WTNA Funds. The WTNA Funds and units therein are exempt from registration under the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended. Investments in the WTNA Funds are not deposits or obligations of or guaranteed by Wilmington Trust, and are not insured by the FDIC, the Federal Reserve, or any other governmental agency. The WTNA Funds are commingled investment vehicles, and as such, the values of the underlying investments will rise and fall according to market activity; it is possible to lose money by investing in the WTNA Funds.  Participation in Collective Investment Trust Funds is limited primarily to qualified retirement plans and certain state or local government plans and is not available to IRAs, health and welfare plans, and certain Keogh plans. Collective Investment Trust Funds may be suitable investments for participants seeking to construct a well-diversified retirement savings program. Investors should consider the investment objectives, risks, charges and expenses of any pooled investment company carefully before investing. The Additional Fund Information and Principal Risk Definitions (PRD) contains this and other information about a Collective Investment Trust Fund and is available at https://www3.wilmingtontrust.com/content/dam/wtb-web/pdfs/2021AddtlFundInformationBooklet.pdf or ask for a copy by contacting Wilmington Trust, N.A. at (866) 427-6885.