Fund Trade Group Reported $800M in Potential Savings
The Investment Company Institute proposed shifts that could cut costs for shareholders and improve access to diverse assets.
Updated on Oct. 13, 2026 in Investing
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The Investment Company Institute released its 2026 Annual Report, highlighting a proposal to transition to default electronic delivery of shareholder communications. This shift is projected to save funds and their investors between $589 million and $797 million annually.
Why it matters
The report advocates for closing the access gap between institutional investors and 401(k) participants regarding private equity assets. It also criticizes the current proxy system, which saw campaign costs reach $1.1 billion between 2020 and 2025.
The Investment Company Institute represents over $60 trillion in assets, with total ETF net assets surpassing $13 trillion in 2025. The report highlights that state and local pension plans allocated 23 percent of assets to private equity in 2024, up from 8 percent in 2001.
The players
Investment Company Institute
A Washington-based trade association representing firms that manage trillions in fund assets.
Securities and Exchange Commission
The federal agency responsible for market regulation and granting exemptive relief to investment firms.
The details
The Investment Company Institute models suggest that providing everyday investors with similar access to private markets as institutional pension funds could increase median account balances by 12 percent. Additionally, the proposal to make electronic delivery the default aims to lower administrative friction and ongoing fund expenses. These changes accompany recent SEC actions, including granting exemptive relief for ETF share classes to member firms beginning in November 2025.
Timeline
2001: State and local pension private equity holdings were 8 percent.
2020-2025: Total fund proxy campaign costs reached $1.1 billion.
2024: Institutional private equity holdings rose to 23 percent.
November 2025: SEC began issuing exemptive relief for ETF share classes.
December 2025: The INVEST Act passed the House of Representatives.
Money Landscape
The Investment Company Institute report outlines a path for modernizing 401(k) access as the INVEST Act moves through the federal legislative process. This follows a broader trend of shifting institutional private equity allocations from 8 percent in 2001 to 23 percent in 2024.
Shareholders may see lower administrative costs if the electronic delivery proposal for communications is finalized. Discuss your 401(k) asset allocation and the role of private assets in your long-term retirement planning with a qualified financial professional.
The takeaway
Industry advocacy is pushing to lower fund costs by reducing paper-based administrative friction and increasing private market access. Check your annual fund statements for disclosures on proxy costs and administrative fees to understand how these industry-wide expenses impact your personal account.
What happens next
The INVEST Act is currently awaiting action in the United States Senate.
Further reading
For more on how shifts in fund regulations impact your portfolio, visit Investing.
More information
Review the full ICI 2026 Annual Report on the organization's official website.
Source note: This article includes information reported by InvestmentNews.
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