Choosing Investment Strategy

Question 1

Factors for investment strategy

Answer 1

The overall aim
Nature of liabilities
Term of liabilities
Currency of liabilities
Uncertainty of liabilities in amount and timing
Level of uncertainty in the liabilities
Need for diversification
Tax
Expenses
Staturory restrictions
Statutory valuation and solvency requirements
Existing asset portfolio
Risk appetite
Size of assets
Accounting rules
Expected long-term returns from assets
Strategy followed by other companies
Regulations