Imagine you are the manager of a pension fund that invests large amounts of money in companies, most of which are listed on the London Stock Exchange.
Returns on your investments provide the funds to pay the pension beneficiaries.
State the proportions of fixed interest securities (i.e. debentures, preference shares, etc.) and ordinary shares you would choose with a view to minimising the risk to funds and maximising returns.State briefly the reasons for your investment strategy.
State a source from which you would get information on which tobase your investment strategy.
State a possible consequence of other fund managers thinking in asimilar vein to yourself.