former

Paraguay Wrote:
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> One is to match liabilities in a very efficient
> and extremely precise manner. The other is to
> match assets in a less than efficient manner. I
> guess I don't see the similarity.

Future cash payments for children's college tuition
vs.
Future cash payments for policy holder's annuity payouts

Both are future liabilities for which you could create a separate portfolio of conservative fixed income assets with matched durations. CFA says one approach is a behavioral bias and the other is a institutional best practice.

That's the similarity and the contradiction.