On August 7, 2025, President Trump signed an Executive Order (Order) stating that participants in defined contribution plans should have access to alternative assets for the potential of better returns and diversification when planning for retirement.
- The Order does not change current law but directs the Department of Labor (DOL) and other agencies to reexamine existing guidance in connection with making available to participants an asset allocation fund that includes investments in alternative assets.
- Alternative assets, defined in the Order, include private market investments, interests in real estate, investments in commodities, infrastructure development, and lifetime income strategies including longevity risk-sharing pools.
- The Order also directs the DOL to:
- Clarify the fiduciary process associated with offering asset allocation funds containing investments in alternative assets.
- Prioritize actions that may curb ERISA litigation, which the Order states has constrained plan fiduciaries from offering such investment opportunities.
The Order gives the DOL 180 days from the date of the Order to reexamine guidance and clarify the fiduciary process related to investments in alternative assets. We will keep you informed when new guidance is issued.