Can someone explain what the exhibit 2 in reading 18 trying to convey?

CFA Level III Portfolio Management
#1

I am confused about last column, as there are no punctuation marks…

for example

(1) for individual its recommanding " AO most common ALM"

(2) for Pension plans (defined benefit) its recommanding " ALM AO"

How to interpret those recommandatins?

does number 1 mean that Asset Only is most common but ALM is also used?

and number 2 means that ALM is used for majority of portfolio and AO used at small scale? (for example surplus)

#2

I read it as such:

Individual - majority use AO (the manage their liabilities with an AO approach)

DB Pensions AO or ALM are common approaches

I agree, the way the information is presented is far from clear. However, its safe to assume that the vast majority of individual investors are guided by an AO approach, but that there is a mix of both AO and ALM in DB pensions.

#3

Thanks.

#4

If you look at pension plans and foundations, One use ALM AO and other use AO ALM. Does the sequence mean anything?

#5

^^ Thank you… nicely explained.