Asset managers gain as US opens up $10.1 trillion 401(k) market to private funds

Shares of U.S. asset managers climb after Labor Department releases new guidelines on including private assets in 401(k) plans

Blackstone BX.N, KKR KKR.N, Apollo Global APO.N and Carlyle CG.O up between 1% and 2.6%

The new guidelines would make it easier for 401(k) plan administrators to allocate a portion of the assets into private investments

Traditionally, 401(k) portfolios have mostly been concentrated in stocks and bonds, which are more liquid and more transparent than private investments

A 401(k) plan is a U.S. retirement account, sponsored by employers, that lets workers invest a portion of their paycheck into their retirement nest eggs

The new rules could open a vast pool of retirement savings to investment managers, as 401(k) administrators seek greater exposure to private assets

According to data from the Investment Company Institute, Americans held $10.1 trillion in their 401(k) plans as of December 31