Which characterization of Collective Investment Trusts is true?

• A. Offered to individual investors
• B. Subject to ERISA and require full disclosure
• C. Offered ONLY to benefit plans and are ERISA-subject but not subject to disclosure requirements
• D. Not subject to ERISA regulation

Answer: (C)

Collective Investment Trusts pool assets for employee benefit plans and are typically offered only to benefit plans, not to individual investors. Because they invest plan assets, they operate under ERISA with fiduciary standards guiding how the funds are managed. However, they do not have to meet the same public disclosure requirements that retail mutual funds face under the Investment Company Act. Instead, disclosures are provided through the plan sponsor and governed by ERISA considerations. This combination—offered only to benefit plans, ERISA-subject, and not subject to the full mutual fund disclosure regime—best matches the described characterization.