Overview

• The executive order is under final White House review and expected to be signed this week, instructing regulators to expand retirement plan options.
• The order calls for new rules to integrate private equity, venture capital and other illiquid alternatives into employer-sponsored 401(k) plans.
• Major fund managers such as Apollo Global Management, State Street and Blue Owl Capital are already developing target-date funds with private-market allocations ahead of regulatory changes.
• Consumer advocates and experts warn that illiquid investments carry higher fees, opaque valuations and could expose plan sponsors to lawsuits over underperformance.
• Trump is also reportedly planning a separate executive order to allow cryptocurrencies in 401(k) menus, expanding the universe of retirement investment options.