US Asset Managers Back 401k Alternative Assets Plan
The U.S. fund management industry has expressed support for a Department of Labor proposal to allow private credit and cryptocurrencies in retirement accounts. While proponents argue this provides necessary diversification for a 14.2 trillion dollar market, critics warn about high fees and liquidity risks for individual savers.
The United States Department of Labor is reviewing a proposal to allow $14.2 trillion in retirement assets to invest in private credit and cryptocurrencies. More than 33,000 comment letters were submitted by the time the review window closed on Monday evening. The rule could shift a portion of the 401(k) market into higher-yield, higher-risk alternative investment vehicles.
