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Level III
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Asset Allocation
Asset Allocation
Medium
A sovereign wealth fund with a perpetual time horizon and no near-term liquidity needs is determining its strategic asset allocation. Which approach is most appropriate for this investor?
A
An asset-only approach focused on maximizing the risk-return tradeoff, given the lack of defined liabilities and long horizon
B
A liability-driven approach matching assets to future pension obligations
C
A goals-based approach segmenting wealth into safety, market, and aspirational buckets
D
A 60/40 stock-bond allocation following the institutional benchmark
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Tags
#asset-allocation
#sovereign-wealth-fund
#asset-only
#strategic-allocation
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