MFA Drops Game-Changing Guidelines for Alternative Assets in 401(k) Plans
Wall Street's gatekeepers just rewrote the retirement rulebook—and your 401(k) will never be the same.
Breaking Down the New Framework
The Managed Funds Association unleashed its long-awaited principles for alternative investment access in retirement accounts. No more waiting for pension funds to have all the fun—main street investors get their shot at the big leagues.
Why This Changes Everything
For decades, 401(k) plans stuck to vanilla stocks and bonds. Now? Private equity, hedge funds, and real estate join the party. The MFA's guidelines tear down the velvet ropes separating retail investors from institutional-grade strategies.
The Fine Print That Matters
Fiduciary requirements get sharper. Disclosure standards tighten. Liquidity mechanisms get real-world stress tests. Because nothing says 'retirement security' like explaining waterfall distributions during your lunch break.
Wall Street Meets Main Street—Finally
This isn't just paperwork—it's permission. Permission for plan sponsors to think beyond index funds. For advisors to recommend something riskier than target-date funds. For workers to actually understand what 'alternative' means beyond the marketing brochures.
The cynical take? It took Wall Street's trade group to make retirement investing interesting again—because clearly, decades of 2% bond returns weren't cutting it.
The five principles support investor choice and regulatory clarity as policymakers consider expanding access to alternatives.
MFA published a set of 401(k) principles in response to President Donald Trump’s Executive Order seeking to expand access to alternative assets in defined contribution retirement plans. The five principles are designed to support the expansion of investment options for retirement savers, reduce regulatory uncertainty for plan sponsors, and promote better investment outcomes for 401(k) account holders.
“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. “These principles offer a roadmap to help policymakers empower fiduciaries and reduce legal uncertainty to improve retirement security for America’s workers.”
Fiduciaries may choose to include alternative strategies for a variety of reasons, which can include enhancing returns, reducing volatility, and diversifying portfolios. MFA’s principles seek to help policymakers strike the right balance between fostering innovation in defined contribution plans and preserving safeguards that protect investors.
MFA’s five principles are:
Source: MFA
