Private Fund Access

SEC Proposes New Rules Allowing Individual Investors to Buy Private Funds

The Securities and Exchange Commission has proposed new rules to allow individual investors to buy private funds. Private equity funds are sitting on trillions of dollars in companies they haven't been able to sell for years. Major alternative-fund sponsors' stocks have dropped 12% to 36% this year, and 2-year Treasurys have recently offered yields of almost 5%. The September jobs report showed that the labor market is still in low-hire, low-fire mode, with companies not adding many people nor laying off workers. However, the September figure indicates a slow trend more than a break in the economy, according to Ken Mahoney of Mahoney Asset Management. The head of ETFs and SMAs at Capital Group explains why actively managed exchange-traded funds are gaining share over passive ETFs in model portfolios.

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