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Rekenthaler Report

Private-Equity Funds in 401(k) Plans?

The idea is being floated, but seems unnecessary.

John Rekenthaler

Jul 9, 2019

Mentioned: Berkshire Hathaway Inc (BRK.A)

A Modest Proposal
Jay Clayton, chairman of the Securities and Exchange Commission, believes that defined-contribution plans should consider private-equity funds.

In an April interview, he criticized the long-standing requirement that only “accredited investors”--meaning those who are relatively wealthy--may own private-equity funds. Said Clayton, “The retirement money in the defined-contribution plan doesn’t have the same investment opportunities that a defined-benefit plan has, even though they’re both retirement dollars.”

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John Rekenthaler does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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