Bill Overview
Title: Increasing Investor Opportunities Act
Description: This bill allows a closed-end fund—a portfolio of pooled assets with a limited number of shares traded on an exchange—to increase their investments in private investment funds.
Sponsors: Sen. Daines, Steve [R-MT]
Target Audience
Population: Individual and Institutional investors in closed-end funds
Estimated Size: 12000000
- The bill concerns closed-end funds, which are investments primarily made by individual and institutional investors.
- There are numerous closed-end funds globally, suggesting a large number of people indirectly affected via pension funds, mutual funds, retirement funds, etc.
- The impact of the bill itself is specific to its provisions allowing increased investments in private investment funds, which may influence investment returns, risks, and strategies accessible to investors.
Reasoning
- The policy primarily impacts investors who have an interest in closed-end funds. Given that a significant number of Americans are involved in the stock market through retirement savings and other investments, the policy's effects may extend broadly but variably.
- The direct impact will likely be more significant on those who actively manage portfolios involving closed-end funds and private investments. For this subset, the policy could mean enhanced opportunities for diversification and potentially increased returns.
- It's important to consider that not all investors may experience positive effects; some may perceive increased risk due to greater exposure to private investments.
- Additionally, general economic knowledge and interest level among the populace about such policies may influence perceived and actual wellbeing changes.
- Given the limited budget for the policy, significant financial changes might only occur for a small segment of these investors.
Simulated Interviews
Financial Advisor (New York City, NY)
Age: 35 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy could open new avenues for my clients to diversify their portfolios, potentially leading to better investment outcomes.
- However, it also brings additional risks with increased exposure to private funds, which I would need to carefully manage and communicate to my clients.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
School Teacher (Chicago, IL)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- I rely on my retirement fund for long-term security. I hope any changes in investment strategies won't jeopardize it.
- I don't have in-depth knowledge of how these funds work but trust the system to keep my investments safe.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Software Engineer (San Francisco, CA)
Age: 28 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- I see this as a potential upswing for my tech investments if private tech funds become more accessible.
- That said, the venture world can be unpredictable, so it's a mixed bag of excitement and caution.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired (Miami, FL)
Age: 65 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I'm concerned about how changes might affect my fixed income investments, as I depend on them.
- While the potential for higher returns sounds good, risk is something I'm less comfortable with at this stage of life.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 5 | 6 |
| Year 20 | 5 | 6 |
Entrepreneur (Seattle, WA)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- This could be beneficial for the tech investment space, allowing more of the type of aggressive growth funds I favor.
- However, my personal strategy is already quite high-risk, so this mostly complements what I'm already doing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Freelance Graphic Designer (Los Angeles, CA)
Age: 30 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- I'm cautiously optimistic; diversification is good but I'm not deeply informed about the impacts this will have on my savings.
- I hope my funds' managers will make the right calls with new investment opportunities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Civil Engineer (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- If these investment opportunities enhance returns without adding too much risk, it could really help optimize future savings.
- I plan to keep a close eye on how the funds manage these new opportunities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Nurse (Boston, MA)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- As retirement approaches, I'm concerned about stability more than the potential for high returns.
- This policy might be more relevant to younger investors or those more directly involved in fund management.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Artist (Denver, CO)
Age: 38 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- I’m not really invested in markets, so this aspect of investment doesn't impact me directly.
- I prefer to focus on non-financial investments in the arts sector for now.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Business Consultant (Phoenix, AZ)
Age: 55 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- The policy provides an intriguing opportunity for those with a high-risk appetite like myself.
- More ways to navigate the financial landscape creatively could be good for business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $10000000 (Low: $7000000, High: $15000000)
Year 2: $10000000 (Low: $7000000, High: $15000000)
Year 3: $10000000 (Low: $7000000, High: $15000000)
Year 5: $12000000 (Low: $8000000, High: $16000000)
Year 10: $15000000 (Low: $10000000, High: $20000000)
Year 100: $50000000 (Low: $30000000, High: $70000000)
Key Considerations
- Impact on market dynamics and investor opportunities.
- Administrative costs associated with regulatory compliance.
- Potential for increased investment in domestic private funds and subsequent economic benefits.