Page 38 - DCAC November 2023 Files

Collective Investment Trusts

What are they?

CITs are pooled institutional investment vehicles that are intended for use by qualified

retirement, pension, profit sharing, or other tax-qualified and government plans that are

exempt from federal income tax. The investment returns of the trust will replicate those of
other vehicles (mutual funds) of the same strategy, gross of fees.

Who governs them?

CITs are sponsored by bank or trust companies and are regulated at the federal or state
levels by the Office of the Comptroller of the Currency (OCC) or by state banking entities.

Unlike mutual funds, they are exempt from SEC regulation and are not subject to the

Securities Act of 1933 or the Investment Company Act of 1940.

In what markets are they available?

CITs are institutional products sold only to plan sponsors and/or plan fiduciaries. Generally,
CITs may not hold assets of 403(b) plans, individual retirement accounts (IRAs), or health
savings accounts.

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