Trump Plans to Expand Private-Market Investments in Retirement Accounts

Executive Order for Expanding Access to Private-Market Investments

President Donald Trump is reportedly on the verge of signing an executive order aimed at expanding access to private-market investments within retirement accounts.

Order Details

According to insiders cited in a Wall Street Journal report, the order should instruct the Labor Department and the Securities and Exchange Commission to establish regulatory guidance. This guidance will advise employers and plan administrators on incorporating private assets into 401(k) retirement plans.

Private-Market Investments

Private-market investments, also known as private assets, encompass private equity, venture capital, real estate, and hedge funds, which are not publicly traded.

Private Assets Characteristics

Private assets are generally associated with higher risks and potentially greater returns in comparison to traditional investments such as stocks and bonds traded on public markets.

Anticipating Executive Order

In anticipation of Trump’s executive order, firms like Apollo Global Management and State Street have launched a target-date fund containing a private-markets component. Additionally, Blue Owl Capital announced its plan this week to collaborate with Voya on 401(k) investment products featuring private markets.

To stay updated on this and other financial news, get Fox Business on the go.

Read More US Economic News