Plan Investment in entity causing entity's underlying assets to become plan assets

[Guest sheTexasHammer]

Under the plan asset rules there are certain plan investments in entities cause the entity's underlying assets to become plan assets. If it were the case that the plan asset regulations caused the underlying assets of the entity in which the plan had invested to become plan assets and the entity had many subsidiaries, would the assets of the subsidiaries (1st tier, 2nd tier, 3rd tier, etc...) also become plan assets? I cannot find any interpretation of the phrase "underlying assets of the entity." It seems that assets would include all property-including interests in other entities (like subsidiaries). But it seems ridiculous that the plan asset rules could pull the property of many subsidiaries in a huge chain of companies into an investing plan's assets.

Any help?