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This is a huge topic in itself. It is impossible to answer without sitting down with the client. Modern Portfolio Theory would argue against a 1/n-style diversification, with the CFA calling it a behavioural finance bias. The CFA answer would be: You want to develop an IPS with the client. What are their risk/return objectives? Also look at: time horizon, ...


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In this case it is important to differentiate between a liability-driven investment strategy (LDI) and a (the classical) benchmark-driven investment strategy. The first one is what you need in this case. LDI was first established by Martin Leibowitz in 1986 ("Liability returns: A new perspective on asset allocation"). So googling that might help you ...



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