CITs go mainstream

Within a short, five-year time period, collective investment trusts (CITs) have shifted from a niche product for the large market to a mainstay across the DC business. CITs are now being offered in virtually all asset classes, including target date funds, small cap, mid-cap, large-cap equity, fixed income, and international. In fact, CIT assets in target date funds appear poised to surpass those in mutual funds in the next two years, and possibly for all asset classes in the next decade.

This paper will take a deep look into the recent growth trends of CITs and the factors that made them possible. We’ll also examine current industry developments that will help ensure this growth extends well into the future. Ultimately, we believe CITs will move even more into the mainstream in the coming years to become the primary investment vehicle used in most defined contribution plans.