Corporate & Institutional
Collective Investment Trusts (CITs)
A valuable option for retirement plan advisors looking to pursue a more holistic strategy, CITs pool assets from qualified investors into a single investment portfolio or fund.
CITs are gaining market share as stakeholders become more cognizant of the potential benefits they can provide.
Fee flexibility: In general, CITs have lower administrative, marketing, and distribution costs versus mutual funds with similar strategies.
Tax advantage: CITs are tax-exempt. As a result, the trustee generally is able to make investment decisions without tax considerations.
Fiduciary responsibilities: By selecting a CIT, the plan sponsor is relieved from fiduciary responsibility for the day-to-day investment management decisions made on behalf of the CIT and remains responsible only for prudently overseeing and monitoring the CIT and its trustee.
Governance: CIT governance is shaped by a triad of influences. State and federal banking laws, federal securities laws, and ERISA all inform the requirements of administering and maintaining CITs using prudent oversight.
What are CITs?
CITs are tax-exempt, pooled investment vehicles sponsored and maintained by a trustee bank or trust company.
Breaking down the myths and realities of CITs
In this paper, we discuss what CITs are, review their benefits and then consider the factors driving their adoption.
Additional Articles and Insights
Wilmington Trust, N.A. is a leader in the collective investment trust market with over $116.6 billion in collective investment fund assets and maintains trading agreements with 49 platforms that access more than 200 record-keepers.
TAKING THE LEAD
The Future of CIT Onboarding Is Here
Being an industry leader in CITs means always thinking of ways to make managing qualified plans easier and more convenient for you—and the client accounts you manage. Our new approach to participation agreements will balance modern-day innovation with a streamlined approach so you can access everything you need in one location.
Learn how to start streamlining your approach to participation agreements with boardingpass™
Collective Investment Funds (“WTNA Funds”) are bank collective investment funds; they are not mutual funds. WTNA Funds and units therein are exempt from registration under the Investment Company Act of 1940 and the Securities Act of 1933, respectively. Investments in 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. 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 Funds is limited primarily to qualified retirement plans and certain state or local government plans. Collective Investment Trust Funds may also 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 fund carefully before investing.