Evaluating Pension Fund Asset Allocation

As a portfolio manager for a large pension fund, you are tasked with assessing the fund's current asset allocation strategy to ensure it meets the future liabilities of its beneficiaries. The fund has a long-term investment horizon with a focus on achieving stable returns while managing risk. Considering the current market conditions, discuss how you would evaluate the suitability of the existing asset allocation, the importance of liability-driven investing (LDI) in pension funds, and propose any adjustments or strategies to enhance the fund's performance and risk profile.