NO.PZ202212280100002002
问题如下：
ii. Identify one advantage in Thurlow’s situation of the ALM approach compared to the AO approach. (2008 Q4)
选项：
解释：
Asset Liability Management (ALM) is preferred because:
1. ALM reduces risk by explicitly considering the liability exposures of the pension plan.
2. The Asset Only approach can result in inefficient investment policies that may expose the plan to excessive and unrewarded risk relative to liabilities.
3. ALM approaches typically result in an optimal portfolio with a higher fixed income allocation.
due to the below-average risk tolerance of the pension plan, alm approach will be more focused on the legal liabilities comparing to the ao approach.
