b'Proposed Legislation In 2022, there was proposed legislation at the federal level that would require every fund of funds to provide audited financial reports from each company the fund of funds invested in. Who will even want your money if that rule goes into effect? No-one, as most private securities offerings are not required to provide audited financials and they arent going to spend tens of thousands of dollars and hundreds of hours of time to do it just for you and your investors.Its impossible to know if this legislation will pass, or if it will get revived at some point in the future, but its something you need to be aware of. If such a rule became law, it could cause the company your fund of funds invested in to recapitalize and kick you and your investors out, and your fund of funds would essentially be out of business. Caution Regarding Retirement Fund Investors TheEmploymentRetirementSecurityActof1974(ERISA), DepartmentofLaborRegulationsstatethat,unlessexempt,whena retirementplan(whetherself-directedornot)ownstwenty-fivepercent (25%) or more of the total value of the interests sold in a company, the interests may be deemed a plan asset. Once deemed plan assets, the issuer becomes subject to ERISA fiduciary rules, and additional regulation and reporting requirementswhich is not something you want to trigger. The very nature of a fund of funds is that it will invest in securities in others offerings, and it will not directly own the real estate. Thus, the interests in a fund of funds are NOT exempt from constituting a plan asset 145'