If pension fund investment decisions are made with the objective of generating cash flows at the same time as planned outflow payments, the fund follows a ____ strategy. When comparing matched funding and projective funding, ____ is more flexible for portfolio managers.
A)matched funding; matched funding
B)projective funding; matched funding
C)projective funding; projective funding
D)matched funding; projective funding

Question

Quizplus · Accepted Answer

Matched funding strategy involves aligning investment cash flows with planned outflow payments, offering predictability but less flexibility. Projective funding allows for more flexibility in investment decisions, making it a more adaptable approach for portfolio managers.

If Pension Fund Investment Decisions Are Made with the Objective