---
title: The Hidden Rise and Risk of Collective Investment Trusts
url: https://www.ml-quant.com/papers/ssrn/4594657/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4594657
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4594657
featured: 2023-10-12
citations: unknown
topic: Portfolio & Allocation
---


# The Hidden Rise and Risk of Collective Investment Trusts

The article highlights the growing popularity of collective investment trusts (CITs), an investment vehicle replacing mutual funds in employer-sponsored retirement plans.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4594657
- Identifier: SSRN 4594657
- Released: 2023-09-19
- First featured: Quant Letter No. 20 (2023-10-12): https://www.ml-quant.com/issues/2023-10-12/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Portfolio & Allocation

## Related

- [Remeasuring Scale in Active Management](https://www.ml-quant.com/papers/ssrn/4599484/): The study suggests that previous research significantly overestimates the diminishing returns of mutual funds when considering additional institutional assets managed under the same strategy.
- [Talk vs. Walk: Lessons from Silent Sustainable Investing of Mutual Funds](https://www.ml-quant.com/papers/ssrn/4602285/): Talk vs. Walk: The study finds that investors favor internal ESG labels over external sustainability ratings, significantly influencing fund flows, but high sustainability rating funds don't necessarily rebrand as ESG funds due to regulatory pressure and limited benefits.
- [Political Connections, Corruption, and Investment Decisions of Chinese Mutual Funds](https://www.ml-quant.com/papers/ssrn/4586940/): A study finds a direct correlation between Chinese mutual funds' political ties and their investment choices, with these influences decreasing after the 2012 anti-corruption campaign, implying such campaigns can improve market fairness.
- [Ensembling Arimax Model in Algorithmic Investment Strategies on Commodities Market](https://www.ml-quant.com/papers/ssrn/4577441/): ARIMAX/ARIMAX-Garch models are ineffective for making buy or sell decisions for selected commodity baskets, as per a study on four Invesco ETF funds.
- [Active ETFs Cloned from Mutual Funds: Competing for Investor Flows](https://www.ml-quant.com/papers/ssrn/4653702/): The research indicates that less transparent active ETFs do not affect mutual fund investor flows, instead, the reputation of the cloned mutual funds helps the new ETFs attract more flows.
- [Quantifying Outlierness of Funds from their Categories using Supervised Similarity](https://www.ml-quant.com/papers/arxiv/2308.06882/): The study uses machine learning to measure the impact of mutual fund miscategorization, revealing a significant link between outlier measures of funds and their future returns.