The Managed Fund Association (MFA), a global trade group representing hedge funds and private credit investors, has called for clear rules around the inclusion of private assets in United States 401(k) retirement plans.
The MFA voiced support for President Donald Trump’s executive order aimed at allowing retirement savers to diversify into private equity, credit, cryptocurrency, and real estate, noting that appropriate safeguards must be in place to protect investors.
MFA’s membership includes major global investors such as Bridgewater, Blackstone, and Apollo, which could stand to benefit from the new policy.
Advocates argue that alternative assets may deliver stronger returns, particularly for younger savers, while critics highlight the higher risks, greater fees, and reduced transparency compared with traditional equities.
The group outlined principles, noting that access to “a flexible and wide range of investment options” is beneficial for savers at all stages of their careers, provided that protections are maintained.
MFA also stressed that investment fees should be evaluated relative to expected returns, and warned against forcing plan sponsors to include or exclude specific asset types.
In addition, MFA urged policymakers to address “overzealous litigation” that has discouraged plan managers from offering alternative assets, suggesting that legal reform is essential to expanding options safely.
The Securities and Exchange Commission is exploring ways to facilitate these investments while safeguarding everyday savers from fraud and bad actors, according to SEC chief Paul Atkins.
