Pension funds moving to scenario-driven and dynamic portfolio construction approach
Pension funds are adapting their portfolio construction approaches as uncertainty becomes more structural, return dispersion widens, and traditional anchors for asset allocation weaken, according to a report from BlackRock. Its 2026 Institutional Investment Direction report, which analysed pension schemes in the UK, US, and Euro area, highlighted a move away from relying on a single base case and towards a more scenario-driven and dynamic approach to portfolio construction. Pension investors were rethinking what they invest in and how portfolios are implemented as outcomes...
