不是很懂

问题如下：

During the meeting, the IC indicates that it is interested in investing in private real estate. Gension recommends a real estate investment managed by an experienced team with a proven track record. The investment will require multiple capital calls over the next few years. The IC proceeds to commit to the new real estate investment and seeks advice on liquidity planning related to the future capital calls.

With respect to liquidity planning relating to the plan’s new real estate investment, Gension should recommend that the fund set aside appropriate funds and invest them in:

选项：

A.

100% REITs.

B.

100% cash equivalents

C.

80% cash equivalents and 20% REITs

解释：

A is correct. REITs are most appropriate for funds committed to private real estate investments since they will have the most similar return and risk characteristics and will help maintain the strategic asset allocation of the plan. Although cash equivalents have less volatility over a short-term horizon, they are less likely to meet the plan’s long-term return objectives.

B is incorrect because the opportunity cost of being out of the markets over the next few years during the capital call period makes cash equivalents an inappropriate investment. Although cash equivalents have lower volatility, which is often desirable over a short-term period, they will not help the plan meet its long-term return objectives.

C is incorrect because, although REITs will have the return and risk characteristics most similar to private real estate, a 20% allocation is not large enough to achieve the plan’s long-term return objectives. The 80% allocation to cash equivalents will greatly affect the return, making the plan less likely to meet the long-term return objectives.