Pension Plan Low risk investment ( asset only and lIability driven approaches)

[Guilherme_neves]

I have the following doubt:

what is a low risk investment for a pension plan:

i) from an asset only perspective

ii) from liability driven perspective

another question on an asset only approach a target return is defined and the liability risks are not taken into account?

thanks in advance.

[S2000magician]

@Guilherme\_neves

I have the following doubt:

what is a low risk investment for a pension plan:

i) from an asset only perspective

When it has a low correlation of returns with the other assets.

@Guilherme\_neves

ii) from liability driven perspective

When it has a high correlation of returns with the liabilities.

@Guilherme\_neves

another question on an asset only approach a target return is defined and the liability risks are not taken into account?

That is correct.

@Guilherme\_neves

thanks in advance.

You’re welcome in arrears.