MFA Advocates for Alternative Investment Access in 401(k) Plans

The Managed Funds Association (MFA) has released five principles aimed at expanding access to alternative investments within 401(k) retirement plans. The guidelines respond to an executive order from former President Donald Trump, seeking to diversify investment options for retirement savers while addressing regulatory uncertainties for plan sponsors.

"Retirement savers are best served by having access to a broad range of investment options that meet their long-term horizons," said Bryan Corbett, MFA President and CEO. The principles emphasize flexibility, fiduciary clarity, and the potential benefits of alternatives—including enhanced returns, reduced volatility, and portfolio diversification.

Policymakers are encouraged to balance innovation with investor protections as they consider integrating alternative strategies into defined contribution plans. The MFA's framework serves as a roadmap for this evolving landscape.