Alec Sauchik


ETIs, economically targeted investments, pension funds, exclusive benefit rule


This Note first presents the socioeconomic theory underlying the concept of ETIs and outlines the scope of trustees' fiduciary obligations to plan participants when making investments in residential real estate. It also analyzes relevant case law pertaining to fiduciary duties of pension fund trustees. Next, it compares two conflicting views on the legality of economically targeted investments. Finally, it argues that although the legal framework applicable to the fiduciary obligations of pension fund trustees is inadequate to fully address all challenges to the legality of ETIs, pension fund investments in low-to-moderate income residential real estate can be reconciled with the duties of plan fiduciaries to plan participants and their beneficiaries. It examines several potential strategies aimed at popularizing targeted pension investments in low and moderate income residential real estate. This Note concludes that targeted investments in low and moderate income residential real estate are a valid social objective that pension funds can and should cautiously pursue.



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.