Assessing and Enhancing Pension Fund Investment Strategies

You are an investment consultant working with a mid-sized corporate pension fund. The fund's investment strategy has become increasingly focused on achieving a balance between risk and return while maintaining liquidity. The board is concerned about the fund's long-term performance and has asked you to evaluate the current investment strategy, considering key factors such as asset allocation, liability matching, and risk management.

Discuss how you would assess the pension fund’s current investment strategy, identifying potential strengths and weaknesses. In addition, recommend adjustments or changes to enhance the fund's performance and better align with its long-term objectives.