Collective Investment Trusts (CITs)
What are CITs?
Collective Investment Trusts (CITs) pooled investment funds, similar to mutual funds, but they are tax exempt and only available to certain qualified retirement plans like 401(k)s. CITs combine assets from multiple investors to invest in a diversified portfolio, managed by an investment manager who is overseen and monitored by a trustee. They often have lower fees than mutual funds, making them a cost-effective option for retirement savings.
Why are CITs relevant now?
$5.6 trillion
45.7%
Why consider CITs in a retirement plan?
CITs offer many potential benefits for your employer clients and their employees, including:
- Pricing flexibility and structural cost advantages
- A range of cost-effective investment options
- Greater tax efficiency than mutual funds
- Adjustable fee structures based on invested assets
- The fiduciary oversight of a sponsoring trustee, such as a bank or trust company
What are the differences between CITs and mutual funds?
| Collective Investment Trusts (CITs) | Mutual Funds | |
|---|---|---|
Availability | Only to certain retirement plans (e.g., 401(k)s) | Available to the general public |
Regulation | Regulated by the Office of the Comptroller of the Currency (OCC), State Banking Regulator, and Department of Labor (DOL) | Regulated by the Securities and Exchange Commission (SEC) |
ERISA Fiduciary Standards | Yes | No |
Fees | Generally lower fees and may be negotiable | Typically higher fees |
Transparency | Less frequent reporting | Regular, detailed reporting |
Investment Strategy | Similar to mutual funds, but often more flexible | Diverse strategies, but more standardized |
Liquidity | Less liquid, may have restrictions on withdrawals | Highly liquid, easy to buy and sell |
Tax Efficiency | Generally more tax-efficient | Can be less tax-efficient |
Which retirement plans can use CITs?
CITs are available for defined contribution (DC) and defined benefit (DB) plans, excluding most 403(b), 457(b), and 457(f) plans. They are not currently allowed for individual retirement accounts (IRAs).
Who oversees CITs?
Various government agencies oversee CITs. The Office of the Comptroller of the Currency and/or state banking regulators serve as the primary oversight for CITs. The sponsoring trustee of a CIT – a bank or trust company – is bound by the fiduciary standard under the Employee Retirement Income Security Act of 1974 (ERISA) and must act in participants’ best interest.
CITs Available
*When choosing to view a factsheet below, you will be redirected to an external website.
Equity
U.S Equity
| Asset class | Style | Strategy name | Class I | Class II |
|---|---|---|---|---|
| U.S. Equity | All cap core | Transamerica Prospr 1500 CIT2 | View | N/A |
| U.S. Equity | Large growth | Transamerica Large Cap Growth CIT1 | View | View |
| U.S. Equity | Large core | Transamerica Prospr 500 CIT2 | View | N/A |
| U.S. Equity | Large value | Transamerica Large Cap Value CIT1 | View | View |
| U.S. Equity | Mid cap growth | Transamerica Mid Cap Growth CIT1 | View | View |
| U.S. Equity | Small growth | Transamerica Small Cap Growth CIT1 | View | View |
| U.S. Equity | Small value | Transamerica Small Cap Value CIT1 | View | N/A |
Target date fund series2,4
Transamerica RetireOnTrack with American Funds series
| RetireOnTrack® 2010 Fund | Factsheet |
| RetireOnTrack® 2015 Fund | Factsheet |
| RetireOnTrack® 2020 Fund | Factsheet |
| RetireOnTrack® 2025 Fund | Factsheet |
| RetireOnTrack® 2030 Fund | Factsheet |
| RetireOnTrack® 2035 Fund | Factsheet |
| RetireOnTrack® 2040 Fund | Factsheet |
| RetireOnTrack® 2045 Fund | Factsheet |
| RetireOnTrack® 2050 Fund | Factsheet |
| RetireOnTrack® 2055 Fund | Factsheet |
| RetireOnTrack® 2060 Fund | Factsheet |
| RetireOnTrack® 2065 Fund | Factsheet |
Transamerica FutureFocus with American Century TDF series
| FutureFocus℠ Income Fund | Factsheet |
| FutureFocus℠ 2025 Fund | Factsheet |
| FutureFocus℠ 2030 Fund | Factsheet |
| FutureFocus℠ 2035 Fund | Factsheet |
| FutureFocus℠ 2040 Fund | Factsheet |
| FutureFocus℠ 2045 Fund | Factsheet |
| FutureFocus℠ 2050 Fund | Factsheet |
| FutureFocus℠ 2055 Fund | Factsheet |
| FutureFocus℠ 2060 Fund | Factsheet |
| FutureFocus℠ 2065 Fund | Factsheet |
Target risk series
Transamerica Horizon Series3
| Risk target | Strategy name | |
|---|---|---|
| Conservative | Short Horizon Allocation | Factsheets to come Q4 |
| Moderate cons. | Short/Intermediate Horizon Allocation |
|
| Moderate | Intermediate Horizon Allocation |
|
| Moderate agg. | Inter/Long Horizon Allocation |
|
| Agressive | Long Horizon Allocation |
|
Important information
CITs are for institutional use only. There is no assurance that any investment strategy will be successful. Investing involves risk and you may incur a profit or a loss.
1 Great Gray Trust Company, LLC Collective Investment Funds (“Great Gray Funds”) are bank collective investment funds; they are not mutual funds. Great Gray Trust Company, LLC serves as the Trustee of the Great Gray Funds and maintains ultimate fiduciary authority over the management of, and investments made in, the Great Gray Funds. Great Gray Funds and their units are exempt from registration under the Investment Company Act of 1940 and the Securities Act of 1933, respectively.
The Additional Fund Information and Principal Risk Definitions (PRD) contains this and other information about a Collective Investment Trust Fund and is available at www.greatgray.com/principalriskdefinitions or ask for a copy by contacting Great Gray Trust Company, LLC at (866) 427-6885.
Great Gray and Great Gray Trust Company are service marks used in connection with various fiduciary and non-fiduciary services offered by Great Gray Trust Company, LLC.
2 These collective trusts ("Funds") are offered through the Transamerica Retirement Solutions Collective Trust (the "Trust"), which is sponsored by Transamerica Trust Company ("TTC") (formerly, Massachusetts Fidelity Trust Company, (“MFTC”), an Iowa-domiciled trust company, and serves as the Trustee of the Trust. The Funds may also invest in underlying funds managed by TTC or an affiliate, and from which TTC and/or an affiliate receives revenue. The Funds are not mutual funds and are exempt from registration under the Securities Act of 1933, as amended ("1933 Act"), and the Investment Company Act of 1940, as amended ("1940 Act"). Therefore, a prospectus is not available. The Funds are offered through Disclosure Memoranda, which includes a description of the Funds' principal investment objectives, strategies, fees and expenses and risk. Investors in a Fund should carefully review the Disclosure Memorandum before making an investment.
3 These collective trust funds are offered through the Transamerica Asset Management Collective Trust ("TAM CT"), which is sponsored/trusteed by TTC. Transamerica Asset Management, Inc. ("TAM") serves as investment adviser to the funds in the TAM CT. The TAM CT Horizon Funds invest in a mix of collective trust funds managed by TAM, Aegon USA Investment Management LLC and by unaffiliated sponsors of index-based collective trust and the Stable Value Option. The Funds are not mutual funds and are exempt from registration under the 1933 Act and the 1940 Act. Therefore, a prospectus is not available for the Horizon Funds. The Horizon Funds are offered through Disclosure Memoranda, which includes a description of the Funds' principal investment objectives, strategies, fees and expenses and risk. Investors in a Fund should carefully review the Disclosure Memorandum before making an investment.
4 The Funds may invest a portion of assets in a Transamerica Life Insurance Company ("TLIC") general account stable value option. The allocation to the stable value option will increase with each glidepath date through expected retirement age. Transamerica earns income indirectly by including the stable value option in the Fund.
Investments in the Collective Investment Funds are not bank deposits or obligations of and are not insured or guaranteed by Great Gray Trust Company, LLC, Transamerica Trust Company or affiliates, any bank, the FDIC, the Federal Reserve, or any other governmental agency. These 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 these Funds.
Participation in Collective Investment Trust Funds is limited primarily to qualified retirement plans and certain state or local government plans and is not available to IRAs, health, and welfare plans and, in certain cases, Keogh (H.R. 10) plans. Collective Investment Trust Funds may be suitable investments for plan fiduciaries 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.
Transamerica Asset Management, Inc. (TAM) is an SEC registered investment adviser for the collective investment funds (“CITs”) and for which Great Gray Trust Company, LLC is trustee and maintains ultimate fiduciary authority over. TAM provides asset management, fund administration and shareholder services for institutional and retail clients. TAM is an indirect wholly owned subsidiary of Aegon Ltd., an international life insurance, pension, and asset management company. TAM, TTC, TLIC and Transamerica Retirement Solutions are all affiliated companies.