. Duane Rogers, as chief investment officer (CIO) for the Summit PLC defined-benefit pension scheme, has developed an economic forecast for presentation to the plans board of trustees. Rogers projects that U.K. inflation will be substantially higher over the next three years than the boards current forecast. (3 Marks) Rogers recommends that the board immediately take the following actions based on his forecast: Revise the pension schemes investment policy statement to account for a change in the U.K. inflation forecast. Reallocate pension assets from domestic (U.K.) to international equities because he also expects inflation in the U.K. to be higher than in other countries. Initiate a program to protect the pension schemes financial strength from the effects of U.K. inflation by indexing benefits paid by the scheme.

State whether each recommended action is correct or incorrect. Justify each of your responses with one reason