NO.PZ202301040900001001
问题如下：
(1) Identify the current investment approach (i.e., model) utilized for Whatsit’s existing pension plan. Justify your response and identify one advantage and one disadvantage for this approach.
选项：
解释：
Whatsit uses the Norway model.
Justification:
Client utilizes low-cost passive investments.
A 60/40 asset allocation
Advantages (any one of these is acceptable):
Easy to understand
Low costs
Transparent investments
Low risk of poor manager selection
Disadvantage:
Inability to capture returns over markets, that is, limited value-added potential
1、norway model
2、This model allocate large traditional securities such as the equity and fixed income.and it is passive investments and allowing low tracking error. Also the existing asset allocation of the plan is 60% domestic equity and 40% investment-grade fixed income in mainly low-cost passive investments.
3、The advantage of this model is that it has a low cost.
The disadvantage of this model is that it has a low return potential.