10.2.6.d: Note on the Plan Asset Regulation and VCOCs

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Abstract

In organizing an investment partnership, the sponsors are compelled to take into account the identity of certain types of investors, principally pension funds and offshore entities. A dramatic, at least in relative terms, rise in investment partnership investing is largely traceable to the infusion of pension assets, as the managers of tax exempt funds have discovered the attractiveness of investment capital returns. However, that growth has not been facilitated by the erratic performance of the Department of Labor in wrestling with the issue of whether the managers of the investment capital pools the general partner or partners should be deemed managers of "plan assets" under the Employee Retirement Income Security Act of 1974 (ERISA.