ICI Viewpoints

At ICI Summit, Hassett Details New Trump Executive Order Expanding Retirement Saving

Dinesh Khanna — Fri, 01 May 2026 13:53:08 +0000

At ICI Summit, Hassett Details New Trump Executive Order Expanding Retirement Saving Dinesh Khanna May 1, 2026

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Authors:

Fri, 05/01/2026 - 09:53

ICI President & CEO Eric J. Pan in a fireside chat with National Economic Council Director Kevin Hassett at the 2026 ICI Leadership Summit.

President Trump’s National Economic Council Director, Kevin Hassett, used a keynote appearance at the Investment Company Institute’s Leadership Summit on Friday to lay out the administration’s agenda for expanding access to long-term saving and investing, including a new executive order that aims to give tens of millions of American workers without access to a workplace retirement plan an individual retirement account.

"Every American worker should have access to the same kind of retirement savings opportunities federal employees enjoy through the Thrift Savings Plan," Hassett said, describing the Thursday order's core ambition. It directs the Treasury Department to build TrumpIRA.gov, a federal platform set to launch in January that will help workers compare low-cost IRAs by cost, quality, and investment options.

Hassett's remarks came during a fireside chat with ICI President and CEO Eric Pan before an audience of asset management executives, independent directors, and policy leaders gathered at ICI’s flagship conference in Washington, D.C.

Pan welcomed the announcement and used the conversation to underscore ICI's view that the most durable path forward for building widespread retirement security is to rely on the strength of the existing voluntary system, which has channeled more than $30 trillion into Americans' futures and reaches 70% of U.S. households. Hassett agreed the private sector is central to the effort, noting the order is designed to leverage the asset management industry's expertise in delivering low-cost, well-regulated investment products.

Hassett praised the industry and ICI’s role in advocating for the interests of individual investors served by asset managers. “You’ve got really one of the most legendary organizations in America,” Hassett said. “If you think about organizations that have had a positive effect on Americans, this has to be right near the top of the list.”

You’ve got really one of the most legendary organizations in America. If you think about organizations that have had a positive effect on Americans, this has to be right near the top of the list.

Kevin Hassett

Director, National Economic Council

The conversation turned to Trump Accounts, the program creating tax-advantaged investment accounts for American children. Hassett described implementation as a top Administration priority and made the long-run economic case for giving every child a stake in U.S. capital markets, suggesting the accounts could meaningfully broaden household participation in markets over 10- and 20-year horizons.

On private markets, Hassett underscored the Administration's view that broader access is essential to giving retirement savers the same opportunities long available to institutional investors. He cited the Department of Labor's recent proposal to expand 401(k) access as a critical step.

He noted that the rising costs of being a publicly traded company have driven a growing share of American businesses into private ownership—meaning that investors limited to public-only portfolios miss exposure to a meaningful slice of the U.S. economy. Pan noted that ICI's members consider the rule's asset-neutral approach essential and have flagged the importance of insulating plan sponsors that follow the safe harbor from speculative litigation that could drive up costs and eliminate choices for individual investors.

Across each of these initiatives—the Trump IRA, Trump Accounts, and expanded 401(k) access—Hassett returned to the common theme that broad participation in capital markets is the most powerful long-run tool for building household wealth and reinforcing American economic stability and social cohesion.

“As important as the wealth building is the way it gives us hope for the future and a better understanding of how economies work,” Hassett said. “If every American has capital, it should lead to every American being a capitalist.”

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Where the Industry Meets the Moment: What’s Ahead at ICI’s 2026 Leadership Summit

Dinesh Khanna — Fri, 24 Apr 2026 21:34:47 +0000

Where the Industry Meets the Moment: What’s Ahead at ICI’s 2026 Leadership Summit Dinesh Khanna April 24, 2026

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Authors:

Chris Matthews

Tue, 04/28/2026 - 17:34

Asset management leaders are operating in an environment where business strategy is increasingly shaped by public policy. Firms are weighing product opportunities, tax and regulatory changes, and the practical implications of new technology, all against a backdrop of trade tensions, inflation concerns, and geopolitical risk. The result is a broader and more demanding set of leadership questions than the industry has faced in years.

ICI’s 2026 Leadership Summit, convening April 29 through May 1 in Washington, DC, brings together CEOs, COOs, heads of distribution, chief product and marketing officers, senior strategists and communicators, legal and compliance leaders, and independent directors for three days at that intersection. The program is built for the people making consequential calls across these dimensions simultaneously.

Washington Up Close

The Summit’s location is deliberate. This year’s program reaches well beyond fund regulation into the broader economic policy landscape shaping business decisions across the economy.

Kevin Hassett, Director of the National Economic Council, will join ICI President and CEO Eric Pan for a conversation on the administration’s economic agenda and the outlook for fiscal, trade, and monetary policy. Senator Ted Cruz will address the legislative environment in Washington, including policy priorities that bear directly on capital formation, investor access, and the industry’s long-term growth.

CFTC Chairman Michael Selig will sit down with Pan for a timely discussion of the regulatory landscape for derivatives, digital assets, and market innovation. With the agency also drawing attention for matters beyond the traditional fund space, the conversation promises to offer a broader view of how one key regulator is approaching a fast-moving policy environment.

What Senior Leaders Are Facing

Many of the Summit’s conversations are really about what leadership looks like at a moment when firms are being pulled in several directions at once. A panel of recently appointed CEOs and leaders—from Allspring, Artisan Partners, Northern Trust Asset Management, and Global X—will speak to the realities of stepping into the top job during a period of rapid change. A separate session bringing together leading investment officers will look at the global economy, investment opportunities, and the geopolitical backdrop shaping markets.

Private markets are one of the clearest examples of why this moment feels so consequential. As firms push further into private credit and other private assets, the opportunity is obvious—but so are the hard questions around valuation, liquidity, product structure, and the policy push to expand access through 401(k) plans and other channels. That is why the discussion among leaders from Schwab Asset Management, PIMCO, Carlyle, and Nomura Asset Management should be one of the most closely watched conversations on the program.

The same goes for technology and product development. Sessions on AI, tokenization, and innovation will focus less on buzzwords than on the practical questions firms are now confronting: where new technology is changing workflows and decision-making, how quickly adoption is happening, and how firms are building products with lasting strategic value.

The program also draws in voices from beyond asset management. Summit Chair Jenny Johnson of Franklin Templeton will open the conference and moderate a fireside chat with Mary Barra, Chair and CEO of General Motors, on leading a large, established company through technological change. The Summit will also mark the approaching 250th anniversary of American independence with a luncheon conversation on the ideas that shaped the nation’s founding and their continuing relevance for business and public life. A Thursday evening reception at the Milken Center for Advancing the American Dream, steps from the White House, further underscores the Summit’s Washington setting.

Where Leadership and Policy Meet

The Leadership Summit reflects ICI’s role in Washington. The conference sits at the intersection of industry strategy, public policy, and market oversight, and its setting provides added weight. The presence of senior policymakers, regulators, economic officials, and business leaders on the program speaks to the range of conversations taking place and to the relationships that help bring those perspectives together.

That is part of what gives the Summit its particular standing on the conference calendar. It offers more than a series of speakers or panels. It creates a setting in which senior leaders can engage directly with the people shaping the environment in which they operate, while also hearing how peers across the industry are thinking about the same pressures and opportunities. The result is a gathering with a different kind of gravity—shaped as much by who is in the room as by what is on the agenda.

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ICI Viewpoints

How Regulated Funds Value Private Credit: A New Resource from ICI

Dinesh Khanna — Fri, 17 Apr 2026 21:07:20 +0000

How Regulated Funds Value Private Credit: A New Resource from ICI Dinesh Khanna April 17, 2026

Public

Authors:

Jason Nagler

Michael Spratt

Mon, 04/20/2026 - 08:40

Private credit is one of the fastest-growing segments of today’s capital markets. These loans—made by funds and other investors—were once the domain of large institutions, but regulated funds are increasingly making them available to everyday investors. With that growth come important questions about how funds determine what these assets are worth.

ICI’s new white paper, Valuation Governance Considerations for Private Credit Assets in Regulated Funds, explains how the fund valuation process works, what governance structures support it, and how funds tailor their approach to different portfolios and fund structures. Though markets, tools, and methodologies are always evolving, this paper is a comprehensive description of where the industry stands today and points toward where it’s headed. It’s designed to be a resource for ICI members, regulators, policymakers, and anyone seeking to understand how regulated funds value private credit.

The paper was developed through ICI’s Security Valuation Operations Committee’s Private Credit Working Group, whose members shared substantive feedback and practical experience from their own valuation programs. Outside experts—including valuation specialists, accounting firms, and a law firm—provided technical and legal review. The result distills how the industry approaches this work. It is a resource that only an organization with ICI’s convening power and industry-wide reputation could produce.

Why This Matters Now

While business development companies (BDCs) have invested in private credit for decades, other regulated fund types—interval funds, tender offer funds, and listed closed-end funds—have expanded into the space. At the same time, policymakers are exploring ways to give 401(k) investors access to private market assets, which could significantly broaden the investor base for funds that hold private credit. The Department of Labor’s recent proposal identifies valuation as one of six factors that a plan fiduciary must consider in evaluating a designated investment alternative.

How Valuation Works

Quality valuation involves more than assessing (potentially infrequent) trade data for a given investment—regulated funds use a range of tools and information sources. Most homeowners have a good sense of what their home is worth, even if it hasn’t been on the market in years. They track comparable sales, they know the condition of the property, they follow local trends. Funds adopt a similar approach to private credit—analyzing borrower financials, market conditions, and comparable transactions to arrive at a fair value. Unlike your typical homeowner, however, regulated funds value assets through a disciplined process, governed by regulatory requirements and oversight.

Here’s what that looks like in practice. Consider an interval fund that holds a loan to a mid-market company. At origination, the fund’s investment adviser prices the loan by projecting the borrower’s expected payments and assessing the risk that those payments don’t arrive as planned. At the next scheduled review, the borrower’s financials are in line with expectations and market conditions for similar loans haven’t changed meaningfully, so the valuation holds. Some time later, the borrower reports a revenue shortfall, triggering a violation of a loan covenant. The fund’s valuation team flags the development and reviews updated financials, and they might consult with the fund’s third-party pricing agent. The loan is marked down, the adjustment is documented and escalated through the fund’s valuation committee, and this is captured in board reporting. Fund investors then transact at a lower price that reflects updated information about the loan’s value.

Checks and Oversight

Fund governance contributes to the rigor of this process. The SEC’s valuation rule imposes specific valuation requirements on regulated funds and contemplates that the fund’s investment adviser will perform the day-to-day valuation work, subject to continued board oversight. Valuations are also subject to independent annual audits, and the SEC regularly examines funds and can take enforcement action when appropriate.

Between formal valuations, funds track market-wide signals—interest rates, credit spreads, changes in performance of similar loans, etc.—alongside borrower-specific developments such as financial performance, covenant compliance, and other material events. These inputs feed an ongoing monitoring process: does the current valuation still hold or does the fair value need to change?

Different fund types calibrate this work differently. An interval fund with a large private credit position and frequent investor activity may update valuations monthly, with ongoing daily monitoring. A listed BDC on a quarterly reporting cycle may follow that schedule while monitoring closely throughout the period. A diversified mutual fund with a small private credit allocation can scale its oversight to reflect the limited impact of that allocation on overall NAV. The framework is the same; what differs is how funds apply it.

A Continuing Commitment

Beyond these core areas, the paper examines benchmarking tools, the role of third-party valuation providers, back-testing practices, and how evolving market infrastructure—better data, growing secondary market activity, and advances in generative AI—is shaping valuation practices going forward. It goes beyond high-level principles to specifically address how regulated funds value private credit.

While valuation involves judgment, it is performed within a structured framework designed to promote consistency, transparency, and accountability. As private credit markets continue to grow and more investors gain access to private assets through regulated funds, maintaining robust and well-governed valuation practices will remain essential. ICI will continue to lead and support industry efforts to promote investor confidence in these markets.

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ICI Viewpoints

ICI Tax Day Event Highlights Bipartisan Effort to End “Phantom” Taxes on Middle Class Investors

Dinesh Khanna — Wed, 15 Apr 2026 23:04:30 +0000

ICI Tax Day Event Highlights Bipartisan Effort to End “Phantom” Taxes on Middle Class Investors Dinesh Khanna April 15, 2026

Public

Authors:

Chris Matthews

Wed, 04/15/2026 - 19:04

Millions of Americans are filing their taxes today feeling like they're being punished for doing the right thing: saving and investing for the long term. That was the message at a Tax Day event hosted by the Investment Company Institute, where bipartisan lawmakers and industry leaders made the case that an outdated provision of the tax code is an affordability problem for middle-class investors, and that Congress has a chance to fix it.

"You feel like you're being punished for putting money away," said Representative Beth Van Duyne (R-TX), one of the lead sponsors of the GROWTH Act, bipartisan legislation that would end the annual taxation of reinvested mutual fund capital gain distributions. The bill, which has 44 Republican and 33 Democratic co-sponsors in the House, would allow investors to defer those taxes until they actually sell their shares—the same treatment the tax code already gives to holders of individual stocks, real estate, and other long-term investments.

Congresswoman Terri Sewell (D-AL) and Congresswoman Beth Van Duyne (R-TX) on a panel discussion with ICI’s Tom Quaadman

ICI President and CEO Eric Pan opened the event by laying out the scope of the problem. Under current law, mutual funds must distribute realized capital gains to shareholders each year, and those distributions are taxable—even when investors automatically reinvest them and never see a dollar of proceeds. The result is a "phantom tax" that penalizes patient, long-term investing. Pan noted that roughly 40 million Americans hold about $7 trillion in mutual fund assets in taxable accounts, and that ICI research shows a typical investor with a $10,000 stake in an actively managed US equity mutual fund could see up to $1,300 more in returns over a decade simply by allowing reinvested gains to compound without the annual tax hit.

Van Duyne, a member of the House Ways and Means Committee, said the issue resonates powerfully at home. She recounted a roundtable with a retired couple in Frisco, Texas, who had no income and couldn't understand why the tax code would force them to sell holdings just to cover a bill on gains they never realized. She said she is hopeful the GROWTH Act will be included in the next major tax legislation moving through Congress.

ICI President and CEO Eric Pan provides opening remarks at the Tax Day event hosted by the Investment Company Institute

Representative Terri Sewell (D-AL), the bill's lead Democratic co-sponsor and a fellow Ways and Means member, emphasized that the legislation is about expanding opportunity. "The aspiration of everyone is to get into the middle class, and I think that our bill would help to incentivize that," she said.

An industry panel reinforced the affordability argument. Grover Norquist of Americans for Tax Reform expressed confidence in the bill's prospects, calling it "such an obvious good idea that it sells itself.”

Bob Meeder, president and CEO of Meeder Investment Management, said that in 43 years in the business, he had never come to Washington to advocate for legislation. But after decades of watching the capital gains distribution rules hurt the middle-class investors his firm serves, the GROWTH Act brought him to Capitol Hill.

ICI’s Chief of Government Affairs and Public Policy Tom Quaadman moderates a panel discussion

The GROWTH Act does not eliminate the capital gains tax. It simply delays collection until the investor actually sells, making it revenue-neutral over time. With growing interest in the legislation from members of both parties, the event's message was clear: Congress has an opportunity to deliver meaningful relief to middle-class savers—and Tax Day is a good day to start.

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Open Markets or Closed Doors: Europe’s Securitisation Choice

Dinesh Khanna — Fri, 10 Apr 2026 13:58:42 +0000

Open Markets or Closed Doors: Europe’s Securitisation Choice Dinesh Khanna April 10, 2026

Public

Authors:

Claudia Grau

Eva Mykolenko

Fri, 04/10/2026 - 09:58

Securitisation has become a revealing test of Europe’s capital markets ambitions. Both the EU and the UK are revisiting their securitisation frameworks in the name of growth, competitiveness, and better‑functioning markets. That focus is well placed: a healthy securitisation market is a critical mechanism for freeing up bank balance sheets, supporting lending, and mobilising long‑term capital.

Reform should reopen the door for UK and EU institutional investors that have been effectively locked out of global securitisation markets for years. But direction matters. The UK and EU are now pursuing markedly different paths—one moving decisively to widen investor access and reconnect with global markets, the other hesitating at the threshold.

The UK is proposing a more open, outward-facing model that offers broader investor access, including for non-UK securitisations, and aligns with the global norm. The EU’s proposal, while constructive in some respects, remains notably more restrictive with respect to non-EU securitisations. This is not a technical difference. It is a strategic one. It will determine whether securitisation helps Europe build globally competitive capital markets or leaves Europe shut out of the opportunities these investments can offer.

Where the approaches diverge

Securitisation markets, which depend heavily on robust investor participation, deepen when investors participate at scale. This participation depends on three conditions: access to a sufficiently broad pool of assets, the ability to assess risk without disproportionate cost or operational burden, and a framework that allows capital to move across jurisdictions with ease. It is across these three conditions that the EU and UK proposals diverge most clearly.

Investor due diligence

Due diligence rules are there to ensure investors understand what they are buying. However, existing EU and UK rules have constrained investors’ ability to participate in securitisations, particularly in global markets. The UK’s proposal simplifies the framework for both UK and non-UK securitisations, giving investors broader access to global opportunities. The EU’s proposed reforms, in contrast, focus mainly on EU securitisations and leave many of the obstacles for non-EU securitisations in place, continuing to restrict EU investors’ access to global market opportunities.

The EU framework also places a much heavier burden on investors by expecting them to verify that other parties in the transaction have met the EU’s regulatory requirements. If EU investors fail to act as "compliance gatekeepers” they face sanctions. The UK does not impose this burden, recognizing that investors already undertake rigorous due diligence as part of their own risk management. By effectively outsourcing compliance to investors, the EU proposal risks discouraging broader investor participation rather than enabling it. The result is likely to be less liquid, efficient, and ultimately a less resilient EU securitisation market.

Risk retention

Risk retention rules dictate whether investors can participate in securitisations originated outside their jurisdiction on workable terms. Rather than retain a rigid five percent originator retention requirement for investment in non-UK securitisations, the UK is prepared to allow investors to demonstrate the originator’s alignment of interest in other ways.

The EU, by contrast, proposes to maintain a more rigid risk retention framework with limited flexibility for non-EU securitisations.

Disclosures

Disclosure rules determine how readily investors can assess risk and allocate capital. The UK is moving toward a more flexible, principles-based approach. The EU’s proposal introduces some streamlining but retains an excessively prescriptive regime that is operational burdensome, particularly for non-EU securitisations.

The issue is not whether investors receive information. It is whether the form and volume of that information enables or deters participation.

Taken together, these elements determine how attractive and accessible the market is for investors. Whether the EU’s securitisation market ultimately deepens or remains stalled will depend on whether the proposed approach translates into participation at scale.

Why this matters

Securitisation markets compete for capital, with investors allocating across jurisdictions based on relative accessibility, clarity, and opportunity. Where a framework restricts access, capital will move elsewhere.

For the EU, securitisation reform is tied directly to the credibility of the Savings and Investments Union (SIU). If securitisation is to support lending, mobilise capital, and strengthen European capital markets, the framework must reflect how investors actually allocate capital in practice.

The EU’s reform effort is important and welcome. It reflects a recognition that the current framework has not delivered the depth or dynamism Europe needs. But recognition alone is not enough. The outcome will depend on how the reforms are calibrated.

Openness to the global securitisation market is a critical factor in determining whether a domestic market can attract sustained investor participation and build scale over time.

The road ahead

The UK has taken a clear step toward a more open and globally competitive framework. The EU still has the opportunity to do the same. But, on its current path, the EU’s securitisation reforms are likely to fall short of their objectives and to constrain rather than strengthen market development. The result will not just be underperformance, but a persistent and widening competitive disadvantage.

If securitisation is to play a meaningful role in the EU’s capital markets, the regulatory framework must recognise that investor access across jurisdictions is essential to building scale, liquidity, and resilience. The approach must support and encourage investor participation, not dampen it through unnecessary complexity and higher costs.

Global capital will not wait for the EU to open the door. It will move to markets that are more accessible, less burdensome, and more workable for investors. Hesitation carries a clear cost: investment will flow elsewhere, competitiveness will erode, and potential will go unrealised. For a policy initiative as ambitious as the SIU, Europe must pair that ambition with a framework capable of delivering deeper, more mature and liquid securitisation markets.

The choices made today will determine whether Europe opens the door to growth and competitiveness in the years ahead or leaves the door closed.

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ICI Global

ICI Viewpoints

Updating What “Small” Means in Today’s Asset Management Industry

Dinesh Khanna — Wed, 08 Apr 2026 13:52:03 +0000

Updating What “Small” Means in Today’s Asset Management Industry Dinesh Khanna April 8, 2026

Public

Authors:

Amy McDonald

Kelly O'Donnell

Wed, 04/08/2026 - 09:52

In 1982, the asset management industry landscape looked very different. ETFs didn’t exist, most work was done without modern technology, and most people would be lucky to have a beeper, much less a smartphone. While much has changed in the decades since, the SEC’s narrow definitions for small entities have remained virtually unchanged.

Today, those definitions capture less than 1% of funds and less than 3% of advisers. The SEC is required to consider the impact of its rules on small entities, and the current definitions of what “small” means no longer reflect today’s asset management landscape or the diversity of fund complexes and advisers operating within it. The SEC’s recent rule proposal to modernize the definitions of small funds and small advisers is a large and welcome step forward.

Comparing the SEC’s Current Rules With the Proposed Rules

	SEC’s Current Small Entity Definition	SEC’s Proposed Small Entity Definition
Small Fund Complex Threshold	$50 million AUM	$10 billion AUM
Small Adviser Threshold	$25 million AUM	$1 billion AUM
Automatic Threshold Adjustments	None	Ten-year automatic adjustments to the rules’ asset-based thresholds

The proposal would significantly expand the number of funds and advisers that are considered small and would allow the SEC to better analyze future rule proposals’ impacts on small entities. The number of eligible funds and advisers would increase by roughly 200-fold. More importantly, the benefits to these entities in future rulemakings—which could include additional compliance time and tailored or flexible compliance requirements—would be meaningful.

What This Means for Smaller Funds

Compared to larger complexes, smaller fund complexes and advisers tend to operate with more streamlined staffing and technology resources, which can affect both scale and bargaining position with third-party service providers.

As a result, compliance costs often take up a much larger share of their assets. The difference in scale is stark: the average size of an actively managed equity fund at small complexes is about $333 million, compared with an average of about $3.4 billion at larger firms, allowing larger complexes to spread fixed costs across a much broader base.

The Pressures Facing Smaller Funds

Fixed compliance costs spread across fewer assets, leading to higher expense ratios and pressure on net returns

Structural scale advantages that favor larger complexes

A cumulative wave of regulatory requirements that adds to ongoing costs and may not be properly calibrated for the risks such regulations look to mitigate

The result: smaller funds are disproportionately affected, competition narrows, and industry diversity declines.

Protecting a competitive environment where small businesses can compete fairly isn’t a new idea. Congress made it clear in the Regulatory Flexibility Act that regulators should consider how rules affect smaller entities and avoid placing disproportionate burdens on them. It reflects a common-sense reality: a fixed cost that barely registers for a large entity can be a meaningful expense for a smaller one—like asking a national chain and a neighborhood shop to absorb the same costs.

Protecting Competition and Investor Choice

Small entities play an important role in the broader asset management ecosystem. They contribute to competition, innovation, and investor choice—often offering specialized strategies and serving niche markets that larger firms may overlook.

They also play a meaningful role in local communities, supporting jobs, economic development, and investor engagement. In many cases, smaller firms provide more direct access to portfolio managers and senior leadership, fostering closer relationships with investors.

When regulatory burdens fall disproportionately on these firms, the impact goes beyond individual businesses. It can reduce competition, limit investor choice, and narrow the diversity of the asset management landscape.

Designing a Framework That Evolves with the Industry

We look forward to the proposal’s prompt adoption, and its tangible impacts on future rulemakings. By tailoring rule provisions where appropriate and extending compliance dates when it makes sense, the SEC can ensure small funds and advisers are not disproportionately harmed by compliance burdens and can remain competitive within the asset management landscape.

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ICI Viewpoints

Modernizing CIT Operations to Support the Next Phase of Growth

Dinesh Khanna — Mon, 06 Apr 2026 16:33:30 +0000

Modernizing CIT Operations to Support the Next Phase of Growth Dinesh Khanna April 6, 2026

Public

Authors:

John Randall

Tue, 04/07/2026 - 07:18

Collective investment trusts (CITs) have seen rapid growth in recent years, driven by increasing demand from 401(k) and other retirement plan sponsors, advisors, and institutional investors seeking additional cost-efficient and flexible investment structures. That growth has delivered clear benefits for plans and their participants, but it has also placed new strains on operational frameworks that were not designed to support today’s scale or complexity of CIT offerings.

Assets of Large 401(k) Plans Are Increasingly Held in Collective Investment Trusts
Percentage of assets in large 401(k) plans*

* Large 401(k) plans are those that filed Form 5500 Schedule H (typically plans with 100 participants or more).
Note: Assets exclude Direct Filing Entity assets that are reinvested in collective investment trusts. Data prior to 2023 come from the Form 5500 Research data sets released by the Department of Labor. Data for 2023 are preliminary, based on Department of Labor Form 5500 latest data sets.
Source: Investment Company Institute calculations of Department of Labor Form 5500 data. 2025 Investment Company Fact Book, available at https://www.icifactbook.org/pdf/2025-factbook.pdf.

To help address the challenge of modernizing CIT operations, members of ICI’s Bank Trust and Retirement Advisory Committee and Broker Dealer Advisory Committee released An Overview of Operating Collective Investment Trusts at Scale, a white paper that identifies core operational constraints, outlines practical modernization strategies, and offers a framework for implementing operational change across the CIT ecosystem.

Scaling Operations to Match Demand

While CIT adoption has grown rapidly, the operational infrastructure supporting CITs is still evolving. Many operational processes rely on legacy workflows and manual coordination across service providers, creating opportunities for modernization as volumes scale. Rather than reflecting resistance to innovation, we understand that these challenges often stem from structural inertia—CIT systems and processes were originally designed for a much different market environment than exists today or in the future.

ICI’s recently launched CIT resource hub provides a single place for operational, policy, and legal information and resources for our CIT members and committees, including the CIT Advisory Committee and the CIT Administrative Subcommittee.

Automation as a Foundation for Scalable Operations

CITs should consider adopting an operational model centered on automation and relying more heavily on automated processing services. Using mutual funds as an example, the paper suggests a path forward for CITs and provides concrete steps that providers, intermediaries, trustees, and others in the CIT industry can consider taking to modernize existing operational structures.

From Advocacy to Operational Support

The need to modernize CIT operations is becoming even more urgent as policymakers consider further expanding access to these products. Lawmakers are currently considering an ICI-backed bill that would give retirement savers working in the nonprofit, education, and health care sectors access to the same broader range of investment options currently enjoyed by 401(k) plan investors.

The Retirement Fairness for Charities and Educational Institutions Act, which passed the House of Representatives in December 2025 as a provision of the INVEST Act, would allow 403(b) retirement plans to utilize CITs as plan investment options. More than 10 million Americans have 403(b) plans, with $1.5 trillion held in 403(b) plans at the end of Q3 2025.

If enacted, this legislation would further increase demand for CITs—heightening the importance of operational models that can scale efficiently and reliably.

From advocating for greater CIT access across retirement plans to identifying modernization strategies and supporting their implementation, ICI is focused on helping members ensure that CITs can meet rising demand while maintaining the high standards plan sponsors and participants expect.

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ICI Viewpoints

How Funds Help Build the American Dream

Dinesh Khanna — Wed, 01 Apr 2026 15:10:28 +0000

How Funds Help Build the American Dream Dinesh Khanna April 1, 2026

Public

Authors:

Sarah Holden

Jason Seligman

Thu, 04/09/2026 - 08:00

For many savers, a workplace retirement plan isn’t just helpful—it’s the reason saving happens at all. ICI’s latest national survey on Americans’ views of 401(k) and other defined contribution (DC) plans shows just how central these plans are to household financial security. As the nation marks its 250th anniversary, ICI is reflecting on what it means to be invested in America, and this survey is a reminder that the systems most vital to Americans’ financial security aren’t always the most front of mind. By making retirement saving routine and investing accessible, workplace plans help promote the American Dream and give families a pathway from work to long-term opportunity and financial stability.

Workplace Retirement Plans Matter

47% of workplace retirement account owners say they probably would not save for retirement without a plan at work.
92% say payroll deduction makes it easier to save.
83% agree their DC plan offers a good lineup of investment options.

Making it easier to save

Nearly half of DC plan account owners said they probably would not save for retirement without a workplace plan. That number is even higher for people in lower-income households. Automatic contributions through payroll deductions are key to making consistent saving possible.

DC plans also change the way people think about planning for the future. More than 9 in 10 DC account owners surveyed said their plan helps them think about the long term, not just their current needs, and 92% said payroll deduction makes saving easier.

A pathway to opportunity and financial security

For millions of people, workplace plans offer a first experience with long-term investing, helping workers develop confidence in managing their finances over time. DC account owners appreciate the lineup of investment options offered in their plans and benefit from the educational materials provided.

Regular contributions also help workers deal with market volatility. More than 8 in 10 DC account owners agreed that knowing they save from every paycheck makes them less worried about short-term investment performance. By investing their contributions in funds, Americans gain a diversified ownership stake in the economy—and a way to participate in its long-term growth.

Americans want to protect what works

The survey results indicate broad public support for preserving DC plans. A strong majority, 87%, oppose eliminating the tax advantages of DC accounts, and large majorities oppose reducing contribution limits. Respondents also value individual control. More than 9 in 10 agree that retirees should be able to make their own decisions about managing retirement assets and income. And about 8 in 10 oppose proposals to invest all retirement accounts through an option selected by a government-appointed board.

Americans want to preserve workplace retirement plans

87% of Americans oppose eliminating the tax advantages of DC accounts.
77% are confident that 401(k) and other employer-sponsored retirement plan accounts can help people meet their retirement goals.

This strong support is not limited to people who already have retirement accounts. Even among individuals whose households do not currently own a DC plan account or an individual retirement account (IRA), large majorities oppose eliminating (or reducing) the tax advantages. This breadth of support suggests sustained public confidence in a system that helps workers build long-term financial security.

Survey Methodology

ICI research staff designed the survey, and NORC at the University of Chicago administered the survey using the AmeriSpeak® probability-based panel. The national survey, conducted in November and December 2025, covered a total sample of 2,175 individuals aged 18 or older in the United States. Survey results are weighted to be representative of the total population of Americans aged 18 or older. The overall margin of sampling error for the 2025 sample is ± 2.1 percentage points at the 95% confidence level. Read more at “American Views on Defined Contribution Plan Saving, 2025.”

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A Practical Step Toward Expanding Access to Private Markets Through Regulated Funds

Dinesh Khanna — Tue, 31 Mar 2026 19:06:41 +0000

A Practical Step Toward Expanding Access to Private Markets Through Regulated Funds Dinesh Khanna March 31, 2026

Public

Authors:

Kevin Ercoline

Wed, 04/01/2026 - 07:30

Policymakers across Washington are focused on expanding access to private markets—particularly for retirement savers. The August 2025 Executive Order encouraging broader access to private market investments for 401(k) investors reflects a growing recognition that capital markets have evolved and that long-term investors should be able to participate more fully in that evolution.

The Department of Labor took an important step this week, proposing a rule to give retirement plan sponsors a clearer process for including private market assets in their plan lineups. But that addresses which investments plans can offer. The Securities and Exchange Commission (SEC) has a distinct and equally important role: expanding the way regulated funds can access private markets in the first place. A practical starting point is expanding principles-based co-investment relief to open-end funds.

Finishing What Was Started

A co-investment is a negotiated transaction in which a regulated fund makes a private investment in a company alongside an affiliated private fund managed by the same firm. Done properly, it can help regulated funds access larger or more bespoke opportunities on stronger terms, at better prices, or both, than they otherwise would receive if they were to negotiate these transactions alone—all while existing guardrails ensure retail investors receive equal treatment.

In other words, co-investment relief helps expand investor choice and diversification opportunities to private market assets within the regulated fund framework.

In April 2025, the SEC approved a modernized, principles-based framework for closed-end funds and business development companies (BDCs) that co-invest alongside affiliated private funds in negotiated transactions. That framework recognizes that regulated funds can benefit from participating in larger, more complex private market transactions—provided that strong investor protections are in place.

Notably, open-end funds were included in early versions of the co-investment application but were removed before final approval. In a recent letter, ICI urged the SEC to correct that omission and allow open-end funds to participate under the same conditions that apply to closed-end funds and BDCs as there is no persuasive policy case for excluding open-end funds from this framework.

Investor Protections Remain Intact

Some have expressed concern that allowing open-end funds to co-invest in private transactions could increase the risk that they might not be able to satisfy redemption requests. But liquidity in open-end funds is already governed by the SEC’s Liquidity Risk Management Rule, which limits illiquid investments and requires funds to have robust risk-management programs, overseen by a fund’s board, including its independent directors.

Expanding co-investment relief to open-end funds would not alter those requirements. Open-end funds would remain subject to the same liquidity thresholds and oversight processes that apply today. The change would simply allow them to invest alongside affiliates in negotiated private transactions—on the same terms, at the same price, and in the same class of securities.

Far from weakening safeguards, such relief would help ensure that retail fund investors receive equal treatment and are not disadvantaged in favor of private-funds.

How Open-End Fund Co-Investment Would Work

An adviser managing both a private fund and an open-end fund could allocate a negotiated private market investment across both funds. Here’s how:

The adviser sources a private market opportunity and allocates a portion to each fund under pre-established policies designed to ensure fairness.
Both funds invest in the same securities, at the same time, at the same price, and on the same terms.
The open-end fund remains subject to all existing regulatory requirements—including SEC limits on illiquid holdings, board oversight, valuation standards, and fiduciary duties.

Why this matters for individual investors:

Open-end funds are the primary regulated funds that most Americans utilize for retirement and are often the building blocks of target date funds, which nearly seven in ten 401(k) participants hold.
Unlike closed-end funds or BDCs, open-end funds offer daily liquidity at net asset value and are broadly accessible through standard retirement plans and brokerage platforms.
Including them in the co-investment framework would help extend private market access to everyday retirement savers.

Why This Matters for Retirement Savers

If policymakers are serious about expanding private market access in defined contribution plans, open-end funds must be part of the solution.

Open-end mutual funds remain a primary building block for target date funds and other core retirement offerings, particularly across much of the defined contribution marketplace. Without including open-end funds in the co-investment framework, retail investors’ access to private market opportunities will remain constrained.

Private markets now represent a multi-trillion-dollar segment of global capital and continue to expand as companies stay private longer and leverage alternative funding sources. For long-term investors, including retirement savers, access to these markets can enhance diversification and broaden the opportunity set within professionally managed portfolios.

An Efficient Path Forward

The SEC has already approved a principles-based co-investment framework for closed-end funds and BDCs that many sponsors now operate under. The SEC could build upon this framework by allowing firms that have received principles-based co-investment relief to include affiliated open-end funds under standardized exemptive or no-action relief. This would provide clarity and consistency across the industry without requiring firms to request and obtain individualized amendments.

ICI has recommended that the SEC take this structural approach in expanding co-investment relief to open-end funds. Doing so would streamline implementation, reduce unnecessary procedural burdens, promote administrative efficiency, and allow the agency to focus its resources where they are most needed.

Aligning Policy With Market Reality

Capital markets have shifted meaningfully over the past two decades. Companies are staying private longer, and private markets are playing a larger role in financing economic growth. At the same time, retirement savers continue to rely primarily on regulated funds for diversified, professionally managed market exposure.

Expanding principles-based co-investment relief to open-end funds would not weaken investor protections or alter liquidity standards. It would simply allow open-end funds to participate in negotiated transactions on equal footing with affiliated private funds—consistent with safeguards the SEC has already deemed appropriate for other regulated funds.

If the goal is to broaden access to private markets responsibly, this expanded relief does so in a thoughtful and pragmatic way.

The SEC has an opportunity to take a measured step that enhances diversification, supports capital formation, and aligns regulation with the realities of today’s markets—all while preserving the strong investor protections at the core of the agency’s mission.

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Key Takeaways From ICI's 2026 Investment Management Conference

Dinesh Khanna — Tue, 31 Mar 2026 16:32:39 +0000

Key Takeaways From ICI's 2026 Investment Management Conference Dinesh Khanna March 31, 2026

Public

Authors:

Kevin Coroneos

Tue, 03/31/2026 - 14:32

ICI General Counsel Paul Cellupica and Brian Daly, Director of the SEC’s Division of Investment Management, during a fireside chat at ICI’s Investment Management Conference

The 2026 Investment Management Conference (IMC) drew more than 1,000 legal and compliance professionals to Palm Desert for three days of thoughtful discussions on policy, innovation, and industry evolution.

The big themes running through many of the 2026 IMC panels and speeches were serving investors, adapting to technology, and the importance of the relationship between the industry and its regulators. These themes reflect ICI policy priorities described in our Reimagining the 1940 Act white paper, which was unveiled at last year's IMC.

Transitioning to E-Delivery

As ICI General Counsel Paul Cellupica noted in his welcoming remarks, ICI is committed to moving investing fully into the 21st century so investors can make the most of new technology such as AI. This includes bringing investor communications into the 21^st century by making e-delivery the default communication method. Director of the SEC’s Division of Investment Management Brian Daly and SEC Commissioner Hester Peirce drove home the SEC’s broad support of e-delivery during their respective panels.

Peirce noted in her fireside chat with ICI President & CEO Eric Pan: "A wholehearted embrace of e-delivery would be a better way to steward investor money and respond to the preferences of, particularly, a post-COVID investor population...We all realize that just making either e-delivery the default with an option for paper or just making it the straight default is something that should happen.”

SEC Commissioner Hester Peirce and ICI President and CEO Eric Pan during a fireside chat at ICI’s Investment Management Conference

Reforming the Fund Proxy System

During Please Stop Calling Me: The Case for Fund Proxy Reform, a panel on the increasing costs and inefficiencies of the fund proxy system, ICI Associate General Counsel Amy McDonald shared how difficult it is for funds to obtain sufficient shareholder votes on important decisions that require a quorum. Drawing on data from a recent survey ICI conducted of more than 60 member firms, the panelists discussed how the problems with the fund proxy system are getting worse over time.

SEC Commissioner Hester Peirce acknowledged in her remarks the need to modernize the fund proxy system. She cited ICI’s survey findings that fund proxy campaigns since 2020 have cost between $675 million and $1.14 billion, telling the audience the SEC needs industry and investor input to solve the problem.

Driving ETF Innovations

The SEC has approved 48 ETF share class applications since November. As firms are preparing for implementation, the IMC panel Eying the Future: ETFs in 2026 and Beyond looked to the future, examining how ETF growth is influencing firm strategy, operational considerations, and investor adoption. Firms are weighing new opportunities alongside the complexities and operational challenges that come with a rapidly evolving ETF landscape.

ICI strongly advocated for this modernized regulatory framework for ETFs—and the SEC’s Division of Investment Management Director, Brian Daly, noted that the industry is overdue for such modernization. During a fireside chat with ICI General Counsel Paul Cellupica, he welcomed more ideas to modernize the investor experience, observing: “If there is something that could improve outcomes for retail investors that could rationalize, modernize, do any of these good things we came here to do, we want to know about it.”

ICI’s Tom Quaadman moderates the Capitol Insights: Navigating Today’s Advocacy Climate panel alongside Dimensional Fund Advisors’ Catherine Newell, T. Rowe Price’s Bob Grohowski, and Edward Jones Investments’ Andy Blocker

Looking Ahead

Thank you to everyone who joined us in Palm Desert. Session recordings will be available soon on the attendee hub for all IMC attendees.

Next on ICI's conference calendar is Leadership Summit, taking place in Washington, DC, from April 29 to May 1—a must-attend event for industry leaders and executives seeking to shape the future of asset management. National Economic Council Director Kevin Hassett and CFTC Chairman Michael Selig will headline the event.

And don’t forget to save the date for the 2027 Investment Management Conference, taking place March 14 to 17, 2027, in San Diego!

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ICI Viewpoints

ICI Viewpoints

At ICI Summit, Hassett Details New Trump Executive Order Expanding Retirement Saving

ICI President & CEO Eric J. Pan in a fireside chat with National Economic Council Director Kevin Hassett at the 2026 ICI Leadership Summit.

Where the Industry Meets the Moment: What’s Ahead at ICI’s 2026 Leadership Summit

Washington Up Close

What Senior Leaders Are Facing

Where Leadership and Policy Meet

How Regulated Funds Value Private Credit: A New Resource from ICI

Why This Matters Now

How Valuation Works

Checks and Oversight

A Continuing Commitment

ICI Tax Day Event Highlights Bipartisan Effort to End “Phantom” Taxes on Middle Class Investors

Congresswoman Terri Sewell (D-AL) and Congresswoman Beth Van Duyne (R-TX) on a panel discussion with ICI’s Tom Quaadman

ICI President and CEO Eric Pan provides opening remarks at the Tax Day event hosted by the Investment Company Institute

ICI’s Chief of Government Affairs and Public Policy Tom Quaadman moderates a panel discussion

Open Markets or Closed Doors: Europe’s Securitisation Choice

Where the approaches diverge

Investor due diligence

Risk retention

Disclosures

Why this matters

The road ahead

Updating What “Small” Means in Today’s Asset Management Industry

Comparing the SEC’s Current Rules With the Proposed Rules

What This Means for Smaller Funds

The Pressures Facing Smaller Funds

Protecting Competition and Investor Choice

Designing a Framework That Evolves with the Industry

Modernizing CIT Operations to Support the Next Phase of Growth

Assets of Large 401(k) Plans Are Increasingly Held in Collective Investment Trusts Percentage of assets in large 401(k) plans*

Scaling Operations to Match Demand

Automation as a Foundation for Scalable Operations

From Advocacy to Operational Support

How Funds Help Build the American Dream

Workplace Retirement Plans Matter

Making it easier to save

A pathway to opportunity and financial security

Americans want to protect what works

Americans want to preserve workplace retirement plans

Survey Methodology

A Practical Step Toward Expanding Access to Private Markets Through Regulated Funds

Finishing What Was Started

Investor Protections Remain Intact

How Open-End Fund Co-Investment Would Work

Why this matters for individual investors:

Why This Matters for Retirement Savers

An Efficient Path Forward

Aligning Policy With Market Reality

Key Takeaways From ICI's 2026 Investment Management Conference

ICI General Counsel Paul Cellupica and Brian Daly, Director of the SEC’s Division of Investment Management, during a fireside chat at ICI’s Investment Management Conference

Transitioning to E-Delivery

SEC Commissioner Hester Peirce and ICI President and CEO Eric Pan during a fireside chat at ICI’s Investment Management Conference

Reforming the Fund Proxy System

Driving ETF Innovations

ICI’s Tom Quaadman moderates the Capitol Insights: Navigating Today’s Advocacy Climate panel alongside Dimensional Fund Advisors’ Catherine Newell, T. Rowe Price’s Bob Grohowski, and Edward Jones Investments’ Andy Blocker

Looking Ahead

Assets of Large 401(k) Plans Are Increasingly Held in Collective Investment Trusts
Percentage of assets in large 401(k) plans*