You are an investment analyst for De Caul$$s Investments Inc. $,$ an independent financial consulting firm. Your latest assignment is to provide an independent assessment of RBL $.$ RBL is a Caribbean based company that manufactures building products and provides services for the construction and engineering sectors$.$ The company has several divisions which operate as separate entities. The case study analysis consists of four core sections, and you will have to either conduct research or perform calculations. The assessment must be completed within five days, because a meeting has been scheduled with the client to discuss your findings.

The company$$s pension plan is managed by Castle Fund Managers, a leading provider of pension services. It is a defined contribution plan, where the employees$$ contributions are matched by the employer. Each employee had to choose one of the following investment options for their individual plans:

a$.$ Preferred Accumulator $($PA$)$: Short$-$term focus

b$.$ Balanced Accumulator $($BA$)$: Medium$-$term focus

c$.$ Select Accumulator $($SA$)$: Long$-$term focus

However, there has been some concern raised over how the pension fund is being managed. Some employees are upset that Castle Fund Managers uses a diversified asset allocation strategy for its investment. Required: Prepare a short report which explains:

a$.$ The importance of strategic asset allocation,

b$.$ Three $(3)$ benefits of using this approach,

c$.$ Three $(3)$ factors that could affect how assets are allocated.