Displaying items by tag: alts

President Donald Trump has signed an executive order that could reshape 401(k) investing by allowing retirement savers broader access to private equity, cryptocurrency, real estate, and other alternative assets. 

Proponents argue the change could improve diversification and expand opportunities, particularly as more companies remain private, while critics warn of higher risks, limited transparency, and steep fees compared to traditional mutual funds and ETFs. The order directs the Department of Labor and SEC to review guidance and consider rules that would make these investments more accessible within 180 days, potentially encouraging more employers to offer them. 

Supporters in the asset management industry see this as a democratization of private markets, but fiduciary advocates caution that inexperienced investors could suffer devastating losses without strict safeguards. Experts recommend limits—such as capping exposure to 5%–10% of a portfolio—and robust investor education to mitigate risks. 

Finsum: Even if changes take months to materialize, the move signals a major shift in U.S. retirement policy, one that could expand investment menus while also amplifying the stakes for 401(k) participants.

Despite political pushback and policy rollbacks, most large U.S. companies have maintained or even increased their sustainability investments in 2025, according to a survey by EcoVadis. 

Nearly half of executives said spending remains steady, while about a third reported higher investments paired with reduced public promotion — a trend dubbed “greenhushing.” The findings suggest that firms increasingly view supply chain sustainability as a strategic advantage, with many citing its role in attracting customers and maintaining operational stability. 

Only a small share have cut back, underscoring a belief among corporate leaders that sustainability supports long-term growth, even if it’s less publicly advertised. Concerns remain over regulatory rollbacks, with nearly half of C-suite leaders warning they could increase supply chain disruptions. 

Finsum: The data points to a quieter but still committed corporate approach to sustainability in the face of shifting political and regulatory landscapes.

KKR and Capital Group have announced plans to launch a hybrid investment fund, Capital Group KKR U.S. Equity+, giving investors access to both private and public equities. Slated for early 2026 pending regulatory approval, the interval fund will allocate 60% to publicly traded stocks and the remainder to private companies, with low investment minimums to increase accessibility. 

As private firms remain off public markets longer, the new fund aims to meet rising demand for diversified exposure and the potential outsized returns from private markets. Interval funds like this offer limited liquidity, allowing redemptions only during set periods, balancing investor access with long-term investing goals. 

The partnership builds on an earlier collaboration between KKR and Capital Group, which launched blended credit funds in April that have already attracted $100 million in assets. 

Finsum: With this new venture, investors can their stake in the growing trend of democratizing alternative investments for a broader investor base.

Goldman Sachs Asset Management has introduced the GS Private Credit CIT, a collective investment trust designed to bring private credit strategies into defined contribution retirement plans. The fund will invest in North American and European direct lending and private placements, while maintaining a liquidity sleeve to meet daily portfolio needs. 

It has already been selected for inclusion in the Panorix Target Date Series by Great Gray Trust Company, which aims to offer institutional-quality investment strategies to retirement savers. Panorix will feature a custom glidepath from BlackRock, liquidity management from Wilshire, and a mix of public and private asset exposure including the GS Private Credit CIT. 

This launch leverages Goldman’s $142 billion private credit platform and global underwriting capabilities to give retirement savers access to tools traditionally reserved for institutional investors. 

Finsum: As public markets grow more concentrated, CITs can provide diversification and growth potential through private credit exposure.

At the ETFs Summit hosted by S&P Dow Jones and the Mexican Stock Exchange, industry leaders predicted that active ETFs will continue growing rapidly, drawing market share not only from mutual funds but increasingly from structured notes. Structured notes—once prized for their customization—are losing ground as active ETFs replicate similar strategies with added liquidity, transparency, and without the counterparty risk inherent in notes. 

Retrocession fees no longer necessary, ETFs provide institutional-class access with real-time pricing, something structured notes cannot offer. While structured notes often come with hidden complexities and limited tradability, active ETFs deliver the same exposure with the ease of public market trading and daily liquidity. 

This shift is part of a larger industry trend: of 600 ETFs launched last year, 400 were actively managed, signaling innovation is now happening more through ETFs than through complex structured products. 

Finsum: As ETFs expand their reach across asset classes, including private credit and crypto, their dominance over less liquid, opaque vehicles like structured notes seems increasingly likely.