NO.PZ2023010409000017
问题如下：
The People’s Fund is a pension
reserve fund established by the government of Wigitania by setting aside
current government surpluses. Its objective is to meet future unfunded social security
payments caused by an aging population. The following is an extract from the
People’s Fund IPS.
Effective from 2030, the government will have the
ability to withdraw assets to meet pension and social security liabilities
falling due each year. Actuarial projections estimate annual payouts to be
about 5% of the total fund value at that time. Given this level of cash flow,
the Fund is expected to maintain most of its asset base for the foreseeable
future. As such, 2030 does not represent an ‘end date’ for measurement
purposes. A long-term investment horizon remains appropriate at present.
However, the appropriate timeframe, risk tolerance, portfolio construction and
liquidity profile may change.
What factors does the Board need to consider when reviewing the Fund’s investment horizon?
选项：
解释：
The Board should consider two separate phases when reviewing the Fund’s investment horizon and investment policy: an accumulation phase and a decumulation phase.
The accumulation phase lasts until 2030 and allows the Fund to invest with little to no liquidity needs and little concern for interim volatility.
The decumulation phase starts after 2030, when the government expects to withdraw about 5% of the assets on an annual basis. The investment horizon, liquidity needs, and risk tolerance will need to be modified during the decumulation phase, which will affect the investment policy.
In the accumulation phase, the liquidity needs of the fund is low with higher risk tolerance. So the fund can hold a significant position in relatively illiquid assets.
In the decumulation phase, the liquidity needs of the fund is high with lower risk tolerance. So the fund can hold a significant position in relatively liquid assets.
