Collective investment trusts

More and more financial professionals are tapping collective investment trusts (CITs) for their unique cost-effective attributes and their ability to allow certain qualified retirement plans to pool assets into a single portfolio. In fact, CITs are witnessing industry-shifting adoption rates – with 84% of plan sponsors¹offering CITs as part of their investment options. CITs are also now the most popular target-date vehicle.^*

At Natixis Investment Managers, our distinct multi-affiliate structure of active investment managers – along with a dedicated team of defined contribution specialists – connects you to some of the most respected asset managers in the business for a broad range of CIT options. Whether you are searching for equity or fixed income strategies, our active managers have CIT options that may fit your plan goals.

CIT growth*

Collective investment trust growth: assets exceed $4.60T. 91% of investment managers cite cost as a key factor in offering CITs.

*Callan Institute’s 2023 Defined Contribution Trends Survey

Potential benefits of CITs

CITs are considered a lower-cost alternative to mutual funds in defined contribution plans, including 401(k) plans, and other qualified retirement plans. Here’s what you can gain from CITs.

Cost efficiency

Typically incur lower marketing, distribution and legal expenses compared to mutual funds. Additionally, CITs offer the potential for negotiated fee arrangements and the ability to reinvest tax-deferred earnings.

Diversification

Offer access to a diversified investment portfolio. This, coupled with the potential for lower fees relative to a similar mutual fund, may help minimize risk and potentially improve returns.

Flexibility

Provide a variety of investment options, including fixed income and equity. This makes it easy for financial professionals to choose the investment strategy that best suits a client’s goals.

CITs vs. mutual funds: Key differences

While CITs and mutual funds have some of the same attributes,
there are key differences between the investment vehicles to consider.

CIT vs mutual fund for retirement. Collective investment trusts have cost-effective attributes over other investment vehicles.

Our active investment managers’ CIT offerings

Our affiliated investment managers are among the world’s most respected active investment firms. From investment firms with 90 years’ experience in navigating changing markets to leading experts in fixed income, equities, and multi-asset portfolios, they bring diverse views to a wide range of asset classes and investment styles.

Fixed income

Investment manager: Loomis, Sayles & Company

Strategies: Core, Core Plus, Global, High Yield, Investment Grade, Multisector Full Discretion

Equity

Investment managers: AEW; Harris | Oakmark; Loomis, Sayles & Company; Mirova; Vaughan Nelson

Strategies: Equity and Income, Global, International, Large-Cap, Mid-Cap, Small-Cap, Small-Mid Cap, REITs

Frequently asked questions

A collective investment trust (CIT) is a tax-exempt, pooled investment vehicle maintained by a bank or trust company for certain ERISA-qualified retirement plan clients; not available to the general public. Overseen by banking regulators, including the Office of the Comptroller of Currency (OCC).

CITs are only available to certain Defined Contribution (DC) and Defined Benefits (DB) Plans, including qualified 401 (k), 401 (a) and 457(b) government plans. CITs are not available to 403(b) plans, 457(f) government plans, IRAs, and endowment plans.

CITs are popular due to their typically lower pricing than mutual funds, driven by fewer regulatory filings, their ability to provide custom pricing to certain plans based on how much assets they invest, and their ability to offer relationship pricing.

The US retirement market (DC, DB and IRA) is approximately $40T. Of this, about $22T is in DC and DB. Of that, there’s nearly $5T in CITs. Source: ICI and FUSE, 2024

There are 23 CITs currently available via our portfolio of investment asset managers, including AEW, Harris | Oakmark, Loomis Sayles, Mirova-US, and Vaughan Nelson.

The biggest trend is the potential move of 403 (b) assets from mutual funds to CITs. As of early 2025, CITs aren’t permitted in 403 (b) plans. US Congress must make changes to the Secure 2.0 Act to allow for this, but if they do, this will open up 403 (b)s to using CITs.

Natixis affiliates offer several CITs that utilize the same investment strategy as an existing mutual fund. For those current mutual fund investors who happen to be 403(b) plans, the CIT vehicle may be an available option to consider for those that wish to transition their assets, if eligible.

Let's connect

Reach out to your Natixis Retirement specialist to learn more.

William Slimbaugh, AIF^®
Managing Director

william.slimbaugh@natixis.com

(617) 794-3031

Dan Schatz
Managing Regional Director

dan.schatz@natixis.com

(617) 378-2577

Matthew Beaulieu
Managing Regional Director

matthew.beaulieu@natixis.com

(916) 834-3397

Luke Tetrault
Investment Consultant

luke.tetrault@natixis.com

(617) 449-2620

Byron Welch
Investment Consultant

byron.welch@natixis.com

(617) 449-2715

¹Callan Institute’s 2023 Defined Contribution Trends Survey

The information provided does not constitute investment advice, and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon.

There can be no assurance that any investment will achieve its stated investment objective. All investing involves risk, including the risk of loss of principal. There are risks associated with equity, fixed income, and alternative investments. Diversification does not guarantee a profit or protect against a loss.

Collective investment trusts (CITs) are pooled investment vehicles that are maintained by a bank or trust company. CITs are generally available only to certain qualified retirement plans and are not publicly traded. CITs are exempt from registration under federal securities laws and exempt from registration under the Investment Company Act of 1940. CITs are subject to federal and state banking regulations. Mutual funds are pooled investment vehicles regulated by the Securities and Exchange Commission (SEC). They are publicly traded and typically offered to both retail and institutional investors. Investments in either a mutual fund or CIT are not insured by the FDIC, and are not deposits, obligations or, or endorsed or guaranteed in any way by any bank.

Natixis Investment Managers’ distribution and service groups include Natixis Distribution, LLC.

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CIT growth*

Potential benefits of CITs

Cost efficiency

Diversification

Flexibility

CITs vs. mutual funds: Key differences

Our active investment managers’ CIT offerings

Fixed income

Equity

Frequently asked questions

What is a CIT?

Who qualifies for using CITs?

Why are CITs increasingly becoming popular?

What is the size of the CIT opportunity?

What CITs are available from Natixis’ affiliated asset managers?

What’s an important trend to watch in the CIT space?

Let's connect