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Collective Investment Trust (CIT) Strategies

Overview

We offer a broad range of DC investment strategies that plan sponsors can use in tailoring their plans to the needs of their participants. Our strategies are available in a variety of pricing models in a wide suite of vehicles and structures, including Collective Investment Trusts (CITs) offered through Wilmington Trust, N.A.1

What are CITs?

CITs in general are tax-exempt, pooled investment vehicles sponsored and maintained by a bank or trust company that also serves as the trustee. CITs combine assets from eligible investors into a single investment portfolio (or “fund”) with a specific investment strategy. By commingling, or pooling, assets, sponsors of CITs may take advantage of certain benefits:

  • Designed for use within defined contribution plans.
  • Can provide multi-manager capabilities, bringing institutional-style capabilities to a larger audience.
  • Managed to comply with ERISA fiduciary standards and guidance from the Office of the Comptroller of the Currency (OCC). CITs are also subject to other government regulators, including the Department of Labor (DOL), and the Internal Revenue Service (IRS).

Unlike a mutual fund, a CIT investment vehicle is not registered under the Investment Company Act of 1940, a prospectus is not available and shares are not publicly traded or listed on exchanges. Mutual funds are regulated by the SEC, whereas CITs are commingled accounts offered through banks or trust companies, and are regulated by the Office of the Comptroller of the Currency. Investments in the CIT are not insured by the FDIC or any other government agency, are not deposits of or other obligations of or guaranteed by any bank or entity.

MIRRORED & WHITE-LABELED STRATEGIES

Our most popular investment strategies are available using two different options. Mirrored strategies leverage an existing mutual fund and white-labeled strategies allow the product name to be customized for a client.

CUSTOM SOLUTIONS

As the name implies, customized solutions are meant to address the unique needs of a plan with a tailored strategy. Using an innovative and cost-effective approach, they can deliver a number of benefits including broader diversification across multiple managers, enhanced alpha opportunities and sophisticated risk management, all combined within a single, easy-to-use offering.

Fund of Funds

For illustrative purposes only.

Schedule An Appointment

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ADDITIONAL RESOURCES

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Flyer: What are Collective Investment Trusts (CITs)?

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Whitepaper: Six Reasons You Should Consider Using CITs

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Whitepaper: Why Every Advisor Should Consider CITs for Their DC Plan Clients