CFA 2010 AM 3B

My question is regarding Bii. Why would you sell equities and have a portfolio with all nominal bonds? The plan is closed to new participants and a high ratio of inactives, but it’s not completely inactive and you need something to mimick wage growth right? A portfolio of 100% nominal bonds would have nothing to mimick the liability of real wage growth even if it’s a small %

frozen plan - so no wage growth.

When I plan is frozen no new benefits or obligation are accured within the plan. This means that new wage increase is not going to happen in this plan, but in another plan.

thanks, i don’t know why i was getting confused on what frozen actually meant