Collective Investment Trusts

Offering the potential for lower expenses and greater fee flexibility.

Collective Investment Trusts (CITs) could offer your plan sponsor clients an attractive alternative to mutual funds.

Lower Expenses

Lower Costs

Institutional-only availability and different reporting requirements can result in lower compliance, administrative, advertising, and marketing costs than other vehicles with a similar investment strategy.

Reduced Cash
Flow Volatility

Cash Flow

CITs generally keep low cash balances, and inflows are typically predictable due to periodic contributions. These factors can help reduce cash flow volatility, allowing the portfolio to be managed more efficiently while staying fully invested.

Greater Fee Flexibility

Percentage

Fees and expenses can vary depending on the retirement plan. A CIT can charge reduced fees for plans with a certain level of assets in the portfolio.

A CIT may be a good investment solution for certain tax-qualified and governmental retirement plans that are seeking characteristics not available with a mutual fund while avoiding the operational responsibilities and costs associated with a separately managed account. However, your plan sponsor clients should be aware that adding CIT investments may present certain transparency, portability, and regulatory challenges. In addition, the plan participants should carefully read materials supplied to them before investing.

 

For general information on Collective Investment Trusts, read our Considerations for Plan Sponsors article.


 

Offering a Wide Range of CIT Solutions

Target Date

We offer a variety of Target Date Solutions to meet the different needs of your clients. Each portfolio can follow one of two goal-driven glide paths.

  • The Retirement Glide Path focuses on helping to support lifetime income throughout retirement.
  • The Target Glide Path focuses on lowering balance variability around retirement.


For either glide path, you and your clients can choose between fully active portfolios or strategically managed blends of active and passive underlying holdings.

Equity

We have a long-standing and strong history of investing in both U.S. and international equities. Our strategic investing approach is supported by a comprehensive research team that spans the globe. And many of our equity mutual fund strategies are also available as CITs.

Fixed Income

Fixed income strategies play an important role in retirement plans, and we offer an array of domestic and global fixed income CITs to help meet your clients' needs.

Beyond traditional fixed income strategies, we are also one of the leading providers of Stable Value strategies, specifically designed for retirement plans.

  • Contact us

T. Rowe Price collective trust funds (Trusts) are not mutual funds. They are collective trust funds established by T. Rowe Price Trust Company under Maryland banking law, and their units are exempt from registration under the Securities Act of 1933. Investments in the Trusts are not deposits or obligations of, or guaranteed by, the U.S. government or its agencies or T. Rowe Price Trust Company and are subject to investment risks, including possible loss of principal. The Trusts are available only to certain types of retirement plans.

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