You are being interviewed for a job as a portfolio manager at an investment counseling partnership. As part of the interview, you are asked to demonstrate your ability to develop investment portfolio policy statements for the clients listed below:

a. A pension fund that is described as a mature defined benefit plan, with the workforce having an average age of 54, no unfunded pension liabilities, and wage cost increases forecast at 5% annually.

b. A university endowment fund that is described as conservative, with investment returns being utilized along with gifts and donations received to meet current expenses, the spending rate is 5% per year, and inflation in costs is expected at 3% annually.

c. A life insurance company that is described as specializing in annuities; policy premium rates are based on a minimum annual accumulation rate of 7% in the first year of the policy and a 4% minimum annual accumulation rate in the next five years.

List and discuss separately for each client described above the objectives and constraints that will determine the portfolio policy you would recommend for that client.