In a move aimed at boosting retirement savings for millions of Americans, President Donald Trump has signed an executive order expanding access to alternative assets for participants in employer-sponsored defined-contribution plans. The order aims to alleviate regulatory burdens and litigation risks that have hindered the adoption of alternative investments in 401(k) plans.
The new policy recognizes that alternative assets, such as private equity, real estate, and commodities, can offer competitive returns and diversification opportunities, similar to those found in public pension plans and institutional investors. The order seeks to encourage the proliferation of investment strategies that allocate a portion of retirement plan participants’ interests to these asset classes.
Under the new policy, fiduciaries of 401(k) and other defined-contribution retirement plans must carefully vet and consider alternative assets, including investment managers’ capabilities and experiences. The order also aims to clarify the Department of Labor’s position on alternative assets and provide guidance for fiduciaries on how to balance potential higher expenses with the objectives of seeking greater long-term net returns and diversification.
The policy change is expected to benefit millions of Americans who participate in employer-sponsored defined-contribution plans, many of whom lack access to investment opportunities that can help them achieve a dignified retirement. The order is part of Trump’s broader efforts to simplify regulatory frameworks and promote economic growth.
Key provisions of the executive order include:
* A 180-day deadline for the Department of Labor to reexamine its past and present guidance on fiduciaries’ duties under ERISA
* A requirement that the Secretary of Labor seek to clarify the department’s position on alternative assets and the fiduciary process associated with offering asset allocation funds containing investments in alternative assets
* Proposals for rules, regulations, or guidance to clarify fiduciaries’ duties under ERISA when deciding whether to make available to plan participants an asset allocation fund that includes investments in alternative assets
Source: https://www.whitehouse.gov/presidential-actions/2025/08/democratizing-access-to-alternative-assets-for-401k-investors