U.S. President Donald Trump is expected to sign an executive order in the coming days designed to help make private-market investments more available to U.S. retirement plans, the Wall Street Journal reported on July 15, citing people familiar with the matter.
The Trump order would instruct the U.S. Labor Department and the Securities and Exchange Commission to provide guidance to employers and plan administrators on including investments like private assets in 401(k) plans, according to the WSJ report.
The White House declined to comment on the report.
Bryan Corbett, president and CEO of MFA, a trade association that represents alternative asset management options such as private credit and hedge funds, hailed the expected order.
"Expanding access to alternative investments in 401(k) retirement plans will provide more Americans with the diversification and investment options needed to build wealth and save for successful retirement," he said in a statement.
Private-market investments, often referred to as private assets, include private equity, venture capital, real estate and hedge funds. These assets are not traded on public exchanges and are typically characterized by higher risk and potentially higher returns compared to traditional public-market investments like stocks and bonds.
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