Cash Flow Matching Strategy for Pension Fund

As a fixed income portfolio manager, you are tasked with managing a portfolio that needs to meet specific future cash flow obligations. Your client is a pension fund that has to make annual benefit payments of $1 million at the end of each year for the next five years. Describe the cash flow matching strategy you would implement to ensure that these obligations are met. Include in your discussion the types of securities you would select, the importance of aligning cash flows, and any considerations related to interest rates and liquidity.