Cash Flow Matching Strategy in Fixed Income Portfolio Management

A fixed income portfolio manager is designing an investment strategy to meet a set of known future liabilities for a pension fund. The focus of the strategy is to ensure that cash inflows from fixed income securities adequately match the cash outflows required to meet these liabilities. This method of managing fixed income investments aims to minimize the risk of asset-liability mismatch.

The manager is considering three different approaches to ensure cash flow matching with respect to the liabilities scheduled in the next five years. Given this context, which approach most accurately represents a cash flow matching strategy?