[6] In addition, transactions involving interests in collective trusts generally do not require an entity to register as a broker-dealer under Section 15(a) of the Securities Exchange Act of 1934.
Although they have been available for decades, early versions of collective trusts provided investors with little access to underlying holdings data and were valued infrequently, typically only once per quarter.
Consequently, mutual funds, offering investor-friendly features like daily valuations and greater transparency, quickly overshadowed collective trusts.
Collective trusts pursue a wide variety of investment strategies across the equity and fixed income spectrum.
Disadvantages include less transparency than traditional mutual funds, difficulty tracking performance, less oversight of management, and an inability to rollover to an Individual Retirement Account.