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CIT 101: Debunking Common Misconceptions About Collective Investment Trusts

CIT 101: Debunking Common Misconceptions About Collective Investment Trusts

Did you know that the first Collective Investment Trust (CIT) was launched in 1927? Although CITs have nearly 100 years of history, they’ve only recently started to grow in the retirement industry.

Within the retirement industry, CITs have accelerated in popularity despite being around for almost a century. Because they were only available in the past to larger plans and had higher minimums, many participants in small and mid-size plans were not able to invest in such funds. However, these limitations are long gone due to changes in the industry as trustees have helped to expand CIT distribution. There is continuous innovation and fiduciary governance by trustees who oversee CITs. The trustee, as the fiduciary, holds the ultimate responsibility to help ensure CITs meet or exceed regulatory standards imposed on retirement plan investments to protect plan participants.

Great Gray unveils the truth about CITs in our latest infographic.

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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.

Investments in the Great Gray Funds are not bank deposits or obligations of and are not insured or guaranteed by Great Gray Trust Company, LLC, any bank, the FDIC, the Federal Reserve, or any other governmental agency. The Great Gray Funds 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 the Great Gray 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. 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/cit-fund-info/principal-risk-definitions/ or ask for a free 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.