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Rekenthaler Report

Private-Equity Funds in 401(k) Plans?

The idea is being floated, but seems unnecessary.

Mentioned:

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.”

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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