You are a prospective fund manager to a life insurance company. You propose to manage its assets utilising a liability-driven strategy. Which of the following actions would your strategy involve? A) Aligning the coupon payments and maturities from your proposed portfolio of fixed income securities with the company’s anticipated claim payments. B) Aligning the dividends and capital appreciation of your proposed portfolio of equities with the company’s anticipated claim payments. C) Managing the sector-spread of your proposed portfolio to capitalise on the margins offered by different governments and other institutions’ fixed income securities. D) Managing the sector-spread of your proposed portfolio to benefit from a positive sloping yield curve.
You are a prospective fund manager to a life insurance company. You propose to manage its assets utilising a liability-driven strategy. Which of the following actions would your strategy involve?
A) Aligning the coupon payments and maturities from your proposed portfolio of fixed income securities with the company’s anticipated claim payments.
B) Aligning the dividends and capital appreciation of your proposed portfolio of equities with the company’s anticipated claim payments.
C) Managing the sector-spread of your proposed portfolio to capitalise on the
margins offered by different governments and other institutions’ fixed income securities.
D) Managing the sector-spread of your proposed portfolio to benefit from a
positive sloping yield curve.
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