Investments that are held "in trust" on behalf of a pension plan's beneficiaries cause the fiduciary duties and responsibilities of pension plan sponsors to "carry over" to managers of these real estate investment funds.

Question

Quizplus · Accepted Answer

When investments are held in trust for the beneficiaries of a pension plan, the fiduciary duties and responsibilities of the pension plan sponsors are transferred to the managers of the investment funds. This means that the managers are also held responsible for acting in the best interests of the beneficiaries and managing the investments prudently.

Investments That Are Held "In Trust" on Behalf of a Pension