The CIT Adoption Curve: What Advisors Need to Know

Collective Investment Trusts (CITs) have transformed defined contribution plans, evolving from a niche solution into a core component of modern plan design.

Our latest infographic, The CIT Revolution, highlights the trends, growth drivers, and opportunities shaping this rapidly expanding market. In 2025 alone, total CIT assets rose 13%, with target-date CITs seeing year-over-year growth of 25%. Today, CITs account for nearly half of the target-date fund market, reflecting a shift as plan sponsors pursue efficiency, flexibility, and robust investor protections.

At the same time, collective investment trusts (CITs) are no longer just for mega-sized plans. Thanks to declining or eliminated investment minimums, CITs are now accessible to small and mid-sized plans, bringing institutional pricing to a broader swath of American workers. In conjunction, education remains critical—72% of plan sponsors report being only somewhat knowledgeable about CITs, underlining the value advisors provide in guiding plan design decisions.

Beyond scale and adoption, CITs offer tangible fiduciary benefits. More than 75% of CIT providers cite lower costs and fees as a key advantage over mutual funds, while maintaining the structural and regulatory protections necessary for retirement plans. And as the industry explores prudent private market exposure through CIT target-date fund (TDF) glidepaths, the potential to enhance participant outcomes continues to grow.

Whether you are an advisor, asset manager, or plan sponsor, understanding the evolution of CITs is essential to staying ahead. Our infographic brings together the latest data, insights, and market context to help you navigate this dynamic landscape and identify where CITs can provide real value in defined contribution plans.

The transition to CITs isn’t just about changing investment vehicles or participant behaviors. It’s about changing how we think about institutional investing.

CITs in Target Date Funds are more than just a cost-saving tool—they represent a strategic upgrade for defined-contribution lineups. If you haven’t begun discussing CIT TDFs with your plan sponsors, you’re behind the curve and may be doing your clients a disservice. CIT TDFs deliver lower fees, broader asset-class access, and enhanced diversification.

Download the infographic today and gain a clear view of the CIT market, growth trends, and the opportunities shaping retirement plan innovation.

All statistics included within can be found in the Cerulli 2025 US Defined Contribution Distribution Report. For specific citation information, please reference the infographic.

Key Comparisons between CITs and Mutual Funds: CITs are tax-qualified investments primarily restricted to the retirement market so investors tend to have a longer-term horizon and the trustee can make investment decisions without tax considerations. Mutual funds are not subject to these investor limits or investment horizons, and must distribute substantially all of their taxable net gains and income to investors. CIT expense structures can be customized to investor channels. Mutual funds generally have less fee flexibility. CITs tend to have lower administrative, marketing and distribution costs than mutual funds due to the differences in how they can be sold and to whom. CITs are maintained by a bank as trustee and are subject to federal or state banking regulation and ERISA fiduciary standards. Mutual funds are managed by registered investment advisers and are subject to extensive SEC regulation and public disclosure and reporting requirements. Both CITs and mutual funds are generally priced and traded daily, subject to annual financial audits, and benefit from their pooled structure that aggregates investor funds and can provide greater diversification than individual accounts.