benefit2具体是指什么？

问题如下：

William Azarov is a portfolio manager for Westcome Investments, an asset management firm. Azarov is preparing for meetings with two of Westcome’s clients and obtains the help of Jason Boulder, a junior analyst. The first meeting is with Maglav Inc., a rapidly growing US-based technology firm with a young workforce and high employee turnover. Azarov directs Boulder to review the details of Maglav’s defined benefit (DB) pension plan. The plan is overfunded and has assets under management of $25 million.

Maglav outsources the management of the pension plan entirely to Westcome Investments. The fee structure requires Maglav to compensate Westcome with a high base fee regardless of performance. Boulder tells Azarov that outsourcing offers small institutional investors, such as Maglav’s pension plan, the following three benefits:

Ÿ Benefit 1: Regulatory requirements are reduced.

Ÿ Benefit 2: Conflicts of interest are eliminated from principal–agent issues.

Ÿ Benefit3: Investors have access to a wider range of investment strategies through scale benefits.

Which of the benefits of outsourcing the management of the pension plan suggested by Boulder is correct?

选项：

A.

Benefit 1

B.

Benefit 2

C.

Benefit 3

解释：

C is correct. Scale (asset size) is a defining characteristic for institutional investors since it affects key aspects of the investment process.

Maglav’s pension plan is small, with $25 million in assets under management. Smaller institutions may be unable to access certain investments that have a high minimum investment, such as private equity and real estate assets. These smaller institutions may also have difficulty in hiring skilled investment professionals.

As a result, small institutional investors, such as Maglav’s pension plan, are more likely to outsource all or most of the investment operations to external asset managers or investment consultants.