Page 19 - DCAC Nov 2025 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.

© 2025 Innovest Portfolio Solutions, LLC 3