Can "onerous disclosure" actually protect 401(k) participants from alternative investment losses?
In Episode 4 of the Private Markets Series, Angelo Calvello, host of Institutional Edge, interviews Gerald Alain Chen-Young, Chief Investment Officer of the National Public Pension Funds Association and Principal at GCY Associates LLC. They examine President Trump's August 2025 executive order expanding 401(k) access to alternative assets including private equity, venture capital, hedge funds, private credit, real estate, and digital currencies. Gerald identifies five critical risks: complete capital loss, extended illiquidity, zero government protection, complex valuations, and layered fees. He discusses both benefits and challenges, emphasizing that plan sponsors must provide clear risk disclosure and robust participant education to meet fiduciary standards.
Gerald Alain Chen-Young serves as Chief Investment Officer of the National Public Pension Funds Association and Principal of GCY Associates LLC, an independent global institutional advisory firm. Previously, he was VP and Chief Investment Officer at UNCF (2002-2016), managing three portfolios totaling approximately $1 billion at their peak. Gerald holds postgraduate degrees in Economics from the London School of Economics and York University, and in Law from the University of Miami and Washington College of Law. He won Institutional Investor's "Investor Intelligence Awards, Thought Leadership" (2016) and was twice nominated to the ai-CIO Power 100 CIOs global list.
In This Episode:
(00:00) Bitcoin volatility and pension implications
(02:19) Introduction – Gerald Alain Chen-Young and democratization overview
(03:39) Principles of democratization and retail investor suitability concerns
(09:48) Threshold requirements and onerous disclosure standards needed
(14:12) Five major risks for DC participants investing alternatives
(19:12) Regulatory complexity and crypto classification challenges ahead
(27:36) Operational readiness and record keeper accountability questions
(35:17) Worst investment pitches and closing thoughts
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Dr. Angelo Calvello is a serial innovator and co-founder of multiple investment firms, including Rosetta Analytics and Blue Diamond Asset Management. He leverages his extensive professional network and reputation for authentic thought leadership to curate conversations with genuinely innovative allocators.
As the "Dissident" columnist for Institutional Investor and former "Doctor Is In" columnist for Chief Investment Officer (winner of the 2016 Jesse H. Neal Award), Calvello has become a leading voice challenging conventional investment wisdom.
Beyond his professional pursuits, Calvello serves as Chairman of the Maryland State Retirement and Pension System's Climate Advisory Panel, Chairman of the Board of Outreach with Lacrosse an...
Chapters
- (00:00:00) - The Institutional Edge: When Crypto Is Too Volatile for Pension
- (00:01:07) - Private Market: The Future of Alternative Investments in 401(
- (00:02:37) - Democrats Push to Open Alternative Investments to 401(K) Investors
- (00:12:33) - Private Investing vs Public Asset Returns
- (00:14:04) - Private Equity Investments Under a DC Plan
- (00:19:32) - Pension Advisors on Crypto
- (00:24:24) - CFTC, SEC, OCC on Crypto
- (00:26:00) - 401(k) and defined-contribution plans
- (00:26:57) - Fiduciary Accountability for Crypto Investment
- (00:34:41) - A Taxi Driver's Suitability
- (00:35:26) - The Worst Investment Pitch Ever Heard
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