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CFA Level 3
Portfolio Management and Wealth Planning

Key Factors Influencing Pension Fund Investment Strategy

Very Easy Institutional Portfolio Mgmt Pension Funds

Imagine you are a portfolio manager responsible for managing a pension fund for a large corporation. The pension fund has specific investment objectives including providing retirement benefits to employees while managing risk within the portfolio. In this context, explain the key factors that influence the investment strategy of a pension fund, including the importance of liability matching and asset allocation. Be sure to discuss how these factors might change based on the demographics of the plan participants.

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